Terumo Corporation · TSE:4543
Terumo — Q1 FYE March 2011 Earnings Presentation
23 slides from Terumo's earnings presentation, Aug 5, 2010
Slide 1: Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2011
Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2011 August 5, 2010 TERUMO Corporation 1
Slide 2: Financial Results (Consolidated)
Financial Results (Consolidated) (Unit: Billion yen) Q1 Q1 Mar. 2010 Mar. 2011 YoY Net Sales 77.5 81.2 5% Gross Profit 41.6 (53.6%) 42.3 (52.1%) 2% SG&A Expenses 25.1 (32.3%) 26.4 (32.5%) 5% Operating Income 16.5 (21.3%) 15.9 (19.6%) -3% Ordinary Income 16.9 (21.9%) 12.6 (15.5%) -26% Net Income 10.8
Slide 3: Net Sales (By Region)
Net Sales (By Region) (Unit: Billion yen) Consolidated:+5%(+8%) Q1 Q1 Mar. 2010 Mar. 2011 ( ): Local currency basis Japan Outside of Japan -1% +12% (+20%) 2.8 Europe +4% 13.5 (+17%) 14.0 1.8 13.0 42.8 42.5 Americas +14% 14.8 38.7 (+20%) 34.6 0.9 Asia & +22% 8.2 Others (+24%) 10.0 0.2 Outside of Japa
Slide 4: Net Sales (By Business Segment)
Net Sales (By Business Segment) (Unit: Billion yen) +2% +10% Q1 Q1 (+3%) (+16%) Mar. 2010 Mar. 2011 ( ): Local currency basis 0.4 2.1 +15% (+20%) 0.3 36.6 37.3 36.6 33.4 ‐57% 5.7 6.5 (-57%) 1.9 0.8 General Cardiac & Blood Consumer Hospital Vascular Transfusion Healthcare 4
Slide 5: Gross Profit Rate Variance Analysis
Gross Profit Rate Variance Analysis 55% 0.4 Reimbursement price decline 0.1 1.0 54% 0.5 Volume Cost cut Increase 1.2 53% Shift to higher 0.6 Price profitable products decline 0.7 Foreign 52% exchange 53.6% Others 51% 52.1% 50% Q1 Q1 Average exchange rate Q1Mar. 2010 Q1Mar. 2011 Mar. 2010 1US$: 97yen
Slide 6: SG&A Expenses
SG&A Expenses (Unit: Billion yen) Q1 Mar. 2010 Q1 Mar. 2011 Changes YoY% Salaries & Wages 9.5 9.8 +0.3 2% Sales Promotion 2.6 2.6 +0.0 2% Logistical Costs 2.1 2.3 +0.2 9% Depreciation & 1.3 1.1 ‐0.2 -15% Amortization Others 5.7 5.7 +0.0 1% General Administrative Total 21.2 (27.2%) 21.5 (26.5%) +0.3
Slide 7: Q1 Mar. 2011 Summary
Q1 Mar. 2011 Summary Sales Operating Income ・ ・ Progress Rate 100% Progress Rate 100% ・ ・ 49% 50% ・ ・ 24% 24% Mar. 2011 Mar. 2011 Mar. 2011 Mar. 2011 Mar. 2011 Mar. 2011 Q1 1st Half （Forecast） Q1 1st Half （Forecast） （Forecast） （Forecast） （Billion yen） 333.0 （Billion yen） 65.2 164.0 32.6 81.2 15.9 Ma
Slide 8: Toward the Achievement of Annual Targets
Toward the Achievement of Annual Targets –Maintaining growth in overseas sales –Expanding high value added products –Active execution of R&D investment in line with plan 8
Slide 9: Key Strategies for This Fiscal Year
Key Strategies for This Fiscal Year (1) Interventional systems that benefit the health economics (2) Explore the growing opportunity in the Japanese chronic care market 9
Slide 10: TRI Spreading Globally
(1) Interventional systems that benefit the health economics TRI Spreading Globally Sales Salestrend trendof ofTRI- TRI- 76（$ Mil.） 33keys keysfor forTRI TRIexpansion expansion related relatedproducts products 1.1.Product Productimprovement improvement Americas ->Thin ->Thinand andpliable pliable CA
Slide 11: Reimbursement
(1) Interventional systems that benefit the health economics Drastic Changes in the US, the Largest Market Demand for efficient and US healthcare reform economical healthcare services [Inpatient reimbursement price declined] Reimbursement Reduce hospitals’ load by ＋ ambulatory surgery Past Current T
Slide 12: Continuous Launch of TRI-Related Products
(1) Interventional systems that benefit the health economics Continuous Launch of TRI-Related Products Homeostasis band TRI guidewire New PTCA Share guidewire 72% Introducer sheath Introducer sheath for TRI （Launched in Europe） Share Balloon catheter For US market 54% Launched Launchedproducts produ
Slide 13: Disseminate through Academic Societies
(1) Interventional systems that benefit the health economics Disseminate through Academic Societies Offer a workshop in an academic society Higher interest from doctors Many doctors made presentations at the TCT2009 TRI session 13
Slide 14: Promotional Activities Taking Advantage of the Website
(1) Interventional systems that benefit the health economics Promotional Activities Taking Advantage of the Website Apr. 2010- 14
Slide 15: Further Sophistication of the Chronic Phase Medical Treatment
(2) Explore the growing opportunity in the Japanese chronic care market Further Sophistication of the Chronic Phase Medical Treatment A. A. Choric Choric hospital hospital B. medical center C. city hospital coordination Nursing home Clinic Clinic Home healthcare Medical services given in chronic pha
Slide 16: Challenges of Chronic Phase Hospital
(2) Explore the growing opportunity in the Japanese chronic care market Challenges of Chronic Phase Hospital ■Skill ■Skillof ofnurses nurses::Many Manyreturn-to-work return-to-worknurses, nurses,experience experiencebased basedpractice practice and andsupervision supervisionofofjunior juniornurses n
Slide 17: Problem-solving Terumo products
(2) Explore the growing opportunity in the Japanese chronic care market Problem-solving Terumo products Calorie-dense liquid meal（semi- Nutrition Patients’ Patients’QOL QOL solid）, Nutritious Food Prevention Preventionofof Double-bag solution, Infusion set complications complications I.V. Soluti
Slide 18: Reference
Reference 18 [ORI
Slide 19: Income for Q1 FYE Mar. 2011: To the Forecast for the Year
Income for the Q1 of the FYE Mar. 2011: To the Forecast for the Year (Unit: Billion yen) Impact of Foreign Forecast for the Year Ｑ1Results Progress rates Exchange +0.5 Net Sales 333.0 81.2 24% (Raise progress rate by 0.2%) Operating Income 65.2 (19.6%) 15.9 (19.6%) 24% +0.3 Billion yen (Raise progre
Slide 20: Income for Q1 FYE Mar. 2011: To the Forecast for the 1st Half
Income for the Q1 of the FYE Mar. 2011: To the Forecast for the 1st Half (Unit: Billion yen) Impact of Foreign Forecast for the 1H Ｑ1Results Progress rates Exchange +0.5 Net Sales 164.0 81.2 50% (Raise progress rate by 0.3%) Operating Income 32.6 (19.9%) 15.9 (19.6%) 49% +0.3 Billion yen (Raise prog
Slide 21: Gross Profit, SG&A, Operating Income Rates
Gross Profit, SG&A, Operating Income Rates Gross Profit (%) 53.7 52.7 52.6 52.1 50.7 SG&A 35.2 33.7 32.5 32.1 33.1 Operating Income 20.6 20.0 19.5 19.6 15.5 1H 2H 1H 2H Q1 Mar. 2009 Mar. 2010 Mar. 2011 21
Slide 22: Changes of Quarterly Average Exchange Rates
Changes of Quarterly Average Exchange Rates ¥ 180 EUR (Mar. 2009) 160 EUR (Mar. 2010) 140 EUR (Mar. 2011) 120 US$ (Mar. 2009) 100 US$ (Mar. 2010) US$ (Mar. 2011) 80 Q1 Q2 Q3 Q4 22
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, forecasts of financial performance on future projections contain potential risks and uncertainty since these are forecasts on projections made by Terumo