Terumo Corporation · TSE:4543
Terumo — 1H FYE/Mar. 2010 Earnings Presentation
26 slides from Terumo's earnings presentation, Oct 29, 2009
Slide 1: 1st Half Financial Results for FYE/Mar. 2010
1st Half Financial Results for FYE/Mar. 2010 Terumo Corporation October 29, 2009 1
Slide 2: Financial Results
Financial Results (Unit: Billion yen) Rate of 1H FYE/Mar. 2009 1H FYE/Mar. 2010 change Net Sales 157.0 158.1 1% Gross profit 84.3(53.7%) 83.3(52.7%) -1% SG&A Expenses 52.8(33.7%) 50.7(32.1%) -4% Operating Income 31.5(20.0%) 32.6(20.6%) 4% Ordinary Income 32.8(20.9%) 32.2(20.4%) -2% Net Income 23.0(1
Slide 3: Sales (by Region)
Sales (by Region ) (Unit: Billion yen) Japan/Outside Outside of Japan Total Mar. 2009 Mar. 2010 1H 1H -7% of Japan Total (+9%) ( ) : local currency 1% Ratio of outside of Japan basis +8% (+8%) 48% → 45% 87.8 81.3 -12% -3% -7% (+9%) (+8%) (+10%) 30.7 27.2 28.9 28.1 16.0 14.9 Asia and Japan Europe Ame
Slide 4: Sales (by Product Group)
Sales ( by Product Group) (Unit: Billion yen) Mar. 2009 Mar. 2010 0% 1H 1H (+4%) +1% (+13%) ( ) : local currency basis -6% 67.4 (+3%) 75.2 75.2 66.6 +41% 12.6 (+44%) 11.8 3.7 2.6 General Cardiac & Blood Consumer Hospital Vascular Transfusion Health-care 4
Slide 5: Gross Profit and SG&A Expenses Rate Contributed to Recovery of Operating Income Rate
Both the Gross Profit and SG&A Expenses Rate Contributed to a Recovery of the Operating Income Rate 55.0 Growth profit rate (%) 53.7 -3.0 +2.0 52.7 50.7 45.0 35.2 33.7 35.0 +1.5 -3.1 32.1 SG&A expenses rate 25.0 20.0 20.6 -4.5 15.5 +5.1 Operating income rate 15.0 1H FYE/Mar. 2009 2H 1H FYE/Mar. 2010
Slide 6: Gross Profit Rate Improved
Gross Profit Rate Improved (%) Impact of Currency Cost down, cost improved and others +0.2 +1.3 Shift to highly profitable products +2.0 +0.5 2H FYE/Mar.2009 50.7% → 1H FYE/Mar.2010 52.7% Average exchange rate US＄ 95yen 96yen EUR 124yen 133yen 6
Slide 7: SG&A Expense Rate Improved
SG&A Expense Rate Improved (%) Salaries and wages - 0.1 R&D Expense - 1.1 Freight and other delivery cost - 0.3 SP and others ‐3.1 - 1.6 Impact of currency + 0.0 2H FYE/Mar. 2009 35.2% → 1H FYE/Mar. 2010 32.1% 7
Slide 8: Operating Income Rate Recovered to the Order of 20%
Operating Income Rate Recovered to the Order of 20% (%) 25 22.2 21.5 20.6 20.0 20 15.5 15 FYE/Mar. 2008 FYE/Mar. 2009 FYE/Mar. 2010 1H 2H 1H 2H 1H 8
Slide 9: Global Healthcare Reforms and Growth Strategies - Other Topics
- Global Healthcare Reforms and Growth Strategies - Other Topics 9
Slide 10: Global Healthcare Reforms
Global Global Healthcare Reforms China -Economic development and rising income levels -Government investment of a total of 120 billion dollars US -Reforms toward a universal health -Getting serious about solving the insurance plan started issue of more than 45 million uninsured people -Healthcare re
Slide 11: Growing Opportunities
Global Growing Opportunities - China and other emerging markets expanding - US market changing, with focus shifting to the healthcare economy - Japan examining aggressive measures in fields such as emergency medical service and etc. A wide variety of growth drivers from all regions and fields Promot
Slide 12: Strengthening Business Structures in China and Emerging Countries
Strengthening Business Structures Global in China and Emerging Countries China: A dedicated Beijin corporate executive posted in Beijin Chengdu Shanghai - Strengthen strategy function Guangzhou Hong Kong ◆October 2009 Strengthened import and sales functions of Brazilian subsidiary South America： Con
Slide 13: Supporting the Improvement of the Medical Infrastructure
Global Supporting the Improvement of the medical infrastructure Philippines Russia Nurse training Live Demonstration South Africa Terumo Medical Pranex TRI seminar Brazil TRI symposium 13 Simulator training
Slide 14: Establishing a Holding Company
US Establishing a Holding Company The number of subsidiaries increased due to mainly M&As. Building a foundation for further development through integrated management. 2006 Micro Vention acquired 2006 Direct sales of Interventional systems started 2003 Terumo Heart established 1999 Operations purcha
Slide 15: Changes - Business Opportunities
US Changes - Business Opportunities Interventional treatment through radial artery (wrist) attracted attention Improving Product Lineup Ultimate interventional system technology enabling one-day treatment Releasing new product suitable for “TRI” Guiding Catheter Devices suitable for “TRI” (Launched
Slide 16: Further Expanding Business Domains
Japan Further Expanding Business Domains An entry into the pain relief market for patients of cancer Announced partnerships with Teikoku Seiyaku (August) and Takeda Pharmaceutical (September) 23.4 Extremely small amount of narcotics use in Japan 13 Use per population 9.6 (when Japan = 1) 8 6.4 5.5 1
Slide 17: Strategies in This Business
Japan Strategies in This Business -Comprehensive lineup Co-medical education of narcotics formulations and training -Diverse administration routes Infusion Practical training of WHO treatment method of narcotics formulations Oral Injection Pulmonary Seminars for certified nurses for cancer pain, cer
Slide 18: Consumer Health-care Business Enjoying Sales
Consumer Health-care Business Japan Enjoying Sales Accelerated development cycles Digital blood pressure monitors Digital blood pressure monitor Digital thermometer ear type Increasing demand for thermometers as anti-swine Flu measures 18
Slide 19: New Syringes for Exclusive Use with Vaccines Developed
New Syringes for Exclusive Use Japan with Vaccines Developed Reducing residue Effectively use vaccines Thin needle Less pain “FN Syringes” No need for needle replacement Non-removable needles Increasing efficiency in the medical frontline October 19 Launched 19
Slide 20: Toward Increased Production and Improved Production Efficiency
Toward Increased Production and Improved Production Efficiency New Ashitaka factory buildings Began operation in October Vietnam Factory Expanding production 20
Slide 21: Forecast for the Year Revised Upward
Forecast for the Year Revised Upward (Unit: Billion yen) FYE/Mar.2010 FYE/Mar.2010 FYE/Mar. 2010 Previous 1H Result Forecast Forecast Net Sales 158.1 315.0 315.0 Operating Income 32.6(20.6%) 63.0(20.0%) 56.0（17.8%） Ordinary Income 32.2(20.4%) 61.0(19.4%) 56.0（17.8%） Net Income 20.8(13.1%) 40.0(12.7%
Slide 22: Reference
Reference 22
Slide 23: Gross Margin(%)
Gross Margin(%) Cost down Others Shift to highly + 0.6 - 0.8 profitable products Impact of currency + 0.7 - 1.5 - １.0 1H FYE/Mar. 2009 :53.7% → 1H FYE/Mar. 2010 :52.7% Average exchange rate US$ 106 yen 96 yen EUR 163 yen 133 yen 23
Slide 24: SG&A Expenses(%)
SG&A Expenses(%) Salaries and wages Freight and - 0.3 R&D Expenses other delivery cost + 0.0 - 0.3 SP and others - 1.6 - 1.2 Impact of currency + 0.2 1H FYE/Mar. 2009 :33.7% → 1H FYE/Mar. 2010 :32.1% 24
Slide 25: Reference
Reference Reference (Unit: millions of yen) Mar. 2009 Mar. 2010 Mar. 2010 1st Half 1st Half Forecast Research and Development 7,983 8,199 17,500 Depreciation and Amortization 9,515 9,459 21,000 Investment in Plant and Equipment 9,767 9,822 23,000 Free Cash Flow 1,307 15,948 Net Income per Share (yen
Slide 26: IR Contact
IR Contact TERUMO Corporation Corporate Communication (IR) Dept. E-mail: kouhou_terumo01@terumo.co.jp Among the information that Terumo discloses, forecasts of financial performance on future projections contain potential risks and uncertainty since these are forecasts on projections made by Terumo