Terumo Corporation · TSE:4543

Terumo — Q3 FY2015 Earnings Presentation

23 slides from Terumo's earnings presentation, Feb 4, 2016

  1. Slide 1: Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2016

    Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2016 (FY2015) Terumo Corporation Senior Executive Officer, Investor Relations, Corporate Communication Dept. Kazuaki Kitabatake February 4, 2016

  2. Slide 2: Overview: Highly profitable product in C&V Drives Substantial Growth in Profit

    Overview: Highly profitable product in C&V Droves Substantial Growth in Profit (billion yen) FY14 FY15 YoY% YoY% Q3YTD Q3YTD (Excl. FX) Net Sales 363.2 396.0 +9% +5% Gross Profit 190.7 (52.5%) 214.6 (54.2%) +13% +9% SG&A Expenses 116.9 (32.1%) 127.2 (32.1%) +9% +4% R&D Expenses 20.9 ( 5.8%) 23.3 ( 5

  3. Slide 3: Extraordinary Gains & Losses, Income Taxes

    Extraordinary Gains & Losses, Income Taxes (Billion yen) FY14 FY15 Q3YTD Q3YTD Non-operating income FX FY14 +8.1 5.8 -3.1 FY15 -2.4 and loss Ordinary Income 58.7 61.0 YoY%: +4% FY14 Cost for restructuring -6.4 Extraordinary -6.4 +4.3 FY15 Gains & Losses Gain through the sales of fixed asset (Q2) +4.

  4. Slide 4: Operating Income Variance Analysis

    Operating Income Variance Analysis 1.0 (billion yen) 7.8 Increase 4.2 of R&D G/P SG&A 2.5 4.5 improve- Increase Business ment by due to sales Price 0.9 mix cost force FX Improve- reduction, expansion erosion 64.1 11.5 ment etc in US Inter- ventional Systems and Neuro- 52.9 G/P vascular increment div

  5. Slide 5: Operating Income Variance Analysis

    Operating Income Variance Analysis Cardiac & General Blood Vascular Hospital Management (billion yen) 2.0 1.9 0.5 1.9 8.6 1.2 2.4 G/P Increase in Decrease Increment operating Others Increase in 22.2 investment G/P in operating expenses Increase 64.1 expenses in for sales Increment goodwill expansion

  6. Slide 6: FY15 Q3YTD: Impact of FX

    FY15 Q3YTD: Impact of FX Average exchange rate in Q3YTD FY14 FY15 US$ 107 yen 122 yen (+ 15 yen) Depreciated by 14% EUR 140 yen 134 yen (- 6 yen) Appreciated by 4% CNY 17.3 yen 19.3 yen (+ 2 yen) Depreciated by 12% (Billion yen) Sales Operating Income Impact on goodwill amortization and others US$ +

  7. Slide 7: Net Sales by Region

    Net Sales by Region FY15 Q3YTD Outside FY14 Q3YTD ( ) Excluding FX (billion yen) of Japan 76.4 255.6 Europe +14% (+7%) 78.4 -3% (+1%) 108.7 35% Americas 90.9 Consolidated +20% (+6%) 26.0 +9% (+5%) China 65% 16.9 Japan +53% (+37%) 140.4 44.4 +1% Asia & Others 38.0 +17% (+9%)  Japan: Cardiac & Vascul

  8. Slide 8: Net Sales by Business Segment

    Net Sales by Business Segment FY15 Q3YTD (billion yen) FY14 Q3YTD ( ) Excluding FX Blood 193.2 Cardiac & Vascular Management 165.9 +16% (+10%) 20% Cardiac & Vascular 122.8 General Hospital 49% 122.5 +0% (-1%) General Hospital 80.0 31% Blood Management +7% (+3%) 74.8  Cardiac & Vascular: Performance

  9. Slide 9: Cardiac & Vascular: Strong Overseas Interventional Systems and Neurovascular, Japan Grew Substantially

    In Addition to Strong Overseas Interventional Systems Cardiac & Vascular: and Neurovascular Business, Japan Grew Substantially (Billion yen) FY14 FY15 YoY% YoY% (Excl. FX) Q3YTD Q3YTD Sales 165.9 193.2 +16% +10% Business Profit (%) 34.2 (21%) 47.8 (25%) +40% +26% <Sales>  Increase in sales for over

  10. Slide 10: General Hospital: Profitability Back on Recovery Track

    General Hospital: Profitability Back on Recovery Track (Billion yen) FY14 FY15 YoY% YoY% (Excl. FX) Q3YTD Q3YTD Sales 122.5 122.8 +0% - 1% Business Profit (%) 16.5 (13%) 18.2 (15%) +11% +12% <Sales>  Japan: Peritoneal dialysate and pain control drugs business continuously expand the sales + 1.7 BJP

  11. Slide 11: Blood Management: Emerging Countries and Therapeutic Apheresis Drive Growth

    Businesses in Emerging Countries and Blood Management: Therapeutic Apheresis Continuously Drives Growth (Billion yen) FY14 FY15 YoY% YoY% (Excl. FX) Q3YTD Q3YTD Sales 74.8 80.0 +7% +3% Business Profit (%) 14.2 (19%) 14.3 (18%) +1% +8% <Sales>  Continue to grow therapeutic apheresis and cell process

  12. Slide 12: Q3 Topics

    Q3 Topics  Revised upward interim dividend and year-end dividend forecast for FY15 (Nov 5)  Enacted “TERUMO Corporate Governance Guideline” (Nov5)  Received FY2015 Good Design Award for three products (Oct 8) Corporate IV cath needle Needleless system Aspiration catheter “Surflo V3” “SurPlug AD s

  13. Slide 13: New Product Pipeline for FY2015

    New Product Pipeline for FY2015 Business Product Region Launch Business Product Region Launch Approved Disposable centrifugal pump DES in Q2 CV JP FY15Q4 ◎◎★ JP (for PCPS) (Ultimaster) Launch in Coronary Oct 1 Automated blood Blood EU, component processing ★ JP FY16 Management system New aspiration

  14. Slide 14: Revision of FY15 Guidance

    Revision of FY15 Guidance  Revised FY15 guidance upward to reflect strong Q3 (Billion yen) Net Sales Operating Income Ordinary Income Net Income Previous Forecast (Sep) 525.0 76.0 73.0 48.5 Revised Forecast 525.0 80.0 75.0 50.0 Change in Amount - +4.0 +2.0 +1.5  Ordinary and net income could chang

  15. Slide 15: 50 BJPY Stock Repurchase Program

    50 BJPY Stock Repurchase Program (Feb 5, 2016 – Mar 31)  Purpose: improve capital efficiency  A part of agile capitalization strategy in line with TERUMO Corporate Governance Guideline  Direction in capitalization strategy  Prioritize growth strategy as ever  Aggressively implement technologica

  16. Slide 16: Reference

    Reference ~TERUMO 16/23

  17. Slide 17: FY15 Q3YTD Net Sales and Growth by Region

    FY15 Q3YTD Net Sales and Growth by Region (Billion yen) Business Outside of Japan Japan G. Total Segment Subtotal Europe Americas China Asia Cardiac & 37.8 (+5%) 155.5(+12%) 49.6 (+4%) 67.1(+11%) 20.5(+41%) 18.3(+12%) 193.2(+10%) Vascular Out of C&V Interventional 29.0 (+5%) 122.8(+15%) 39.7(+4%) 49

  18. Slide 18: Operating Expenses

    Operating Expenses (Billion yen) FY14 FY15 YoY% YoY YoY% Q3YTD Q3YTD (Excl. FX) Salaries & Wages 52.1 57.5 +5.4 +10% +5% Sales Promotion 11.6 12.6 +1.0 +9% +5% Logistical Costs 8.2 8.3 +0.1 +1% -0% Depreciation & 18.4 21.0 +2.6 +14% +4% Amortization Others 26.6 27.8 +1.2 +5% +1% SG&A Expenses Total

  19. Slide 19: Quarterly Results

    Quarterly Results (Billion yen) FY14 Q3 Q4 FY15 Q1 Q2 Q3 (Oct-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) Net Sales 129.9 126.3 128.7 130.5 136.8 Gross Profit 67.8 (52.2%) 65.4 (51.7%) 69.0 (53.7%) 70.4 (53.9%) 75.3 (55.0%) SG&A Expenses 40.5 (31.2%) 42.4 (33.5%) 41.7 (32.5%) 42.7 (32.7%) 42.9 (31.

  20. Slide 20: CAPEX, R&D Expenses

    CAPEX, R&D Expenses (Billion yen) FY2015 FY15 Q3YTD Progress to Guidance Result Guidance CAPEX 29.0 21.3 73% Depreciation & Amortization * 45.0 33.2 74% R&D Expenses 35.0 23.3 67% Depreciation & Amortization: Including intangibles CAPEX: Acquisition basis <Downward revision in FY15 CAPEX guidance to

  21. Slide 21: Cash Flow

    Cash Flow Operating CF Investing and Financing CF (Billion yen) +51.6 -44.8 34.4 33.2 Depreci- Corpo- 12.5 ation & rate tax Amorti- and Increase zation 21.3 others in working 10.8 capital 11.0 and CAPEX Sale of 65.3 others Acqui- 13.2 invest- sition of ment own securities shares Dividend 10.1 Others

  22. Slide 22: Foreign Exchange Sensitivity

    Foreign Exchange Sensitivity (Billion yen) US$ EUR Net Sales 1.8 0.7 Operating Income 0.1 0.2  For US$, sales expansion in U.S. drove higher FX sensitivity at sales. However, the increase in overseas production ratio since acquisition of CaridianBCT resulted in less impact of yen depreciation again

  23. Slide 23: IR Contact

    IR Contact Terumo Corporation Corporate Communication (IR) Dept. E-mail: kouhou_terumo01@terumo.co.jp Among the information that Terumo discloses, the forward-looking statements including financial projections are based upon our assumptions using information available to us at the time and are not i

Terumo — Q3 FY2015 Earnings Presentation on 6ix