Sysmex Corporation · TSE:6869
Sysmex — FY2011 Earnings Presentation
45 slides from Sysmex's earnings presentation, May 11, 2011
Slide 1: Business Results for the Fiscal Year Ended March 31, 2011 (FY2011)
Business Results for the Fiscal Year Ended March 31, 2011 (FY2011) Financial Results and Mid-Term Management Plan Sysmex Corporation Hisashi Ietsugu, President and CEO May 11, 2011
Slide 2: Contents
Contents Chapter 1 Financial Results for the Fiscal Year Ended March 31, 2011 Chapter 2 Review of Previous Mid-Term Management Plan (Announced in May 2009) Chapter 3 Mid-Term Management Plan (April 1, 2011 – March 31, 2014) Chapter 4 Consolidated Earnings Forecast for the Fiscal Year Ending March 31
Slide 3: Chapter 1 Financial Results for the Fiscal Year Ended March 31, 2011
Chapter 1 Financial Results for the Fiscal Year Ended March 31, 2011
Slide 4: Financial Results
Net sales and income reached Financial Results historic highs, despite significant yen appreciation. (Billions of yen) (Billions of yen) 150 Income 25 Net Sales FY2011 FY2011 FY2010 YoY (Previous 124.6 Actual Ratio Forecast* Ratio Actual Ratio period = 125 116.1 100%) 110.7 111.8 18.2 20 101.0 Net S
Slide 5: Breakdown of Net Sales and Operating Income
Breakdown of Net Sales and Operating Income (Billions of yen) Net Sales Operating Income Gross margin increased as a Note: FX impact excluded from regional sales below result of an improvement in AP FX impact the ratio of cost of sales SG&A increase China 0.5 Increase in subsidiary in Spain Gross pr
Slide 6: Breakdown of Assets and Liabilities/Equity
Breakdown of Assets and Liabilities/Equity (Billions of yen) Assets Liabilities/Equity Fixed assets Current assets Equity Intangible Up ¥0.2 billion fixed Up ¥7.0 billion assets Retained Others Others Others earnings Liabilities 0.2 0.4 - 1.2 2.3 Tangible - 0.3 Up ¥2.2 billion Cash fixed 1.5 assets
Slide 7: Consolidated Cash Flows
Consolidated Cash Flows (Billions of yen) 25 21.2 18.1 15 13.1 4.4 5.1 5 0.7 - 0.2 △(5) 5 - 3.4 - 6.6 - 8.9 - 10.0 △(15) 15 - 13.5 △(25) 25 Cash flow from Cash flow from Cah flow from Increase/decreaseinin cash Increase/decrease operating activities investing activities financing activities andcash
Slide 8: Topics (1)
Topics (1) Great East Japan Earthquake struck The Group’s product supply and support networks were unaffected Enhanced lineup of clinical chemistry products for China and other Asian markets Signed sales agreements with JEOL and Furuno involving automated clinical chemistry analyzers Developed fully
Slide 9: Topics (2)
Topics (2) Began expanding reagent production facility in Jinan to meet rapidly growing demand in China Scheduled to commence operation in May 2012, ensuring a stable reagent supply Established subsidiary in the Philippines and commenced direct sales and support in the Manila metro area (operations
Slide 10: Net Sales by Geographic Region
Net Sales by Geographic Region Net Sales by Geographic Region (Billions of yen) (Sales to Customers) YoY FY2011 FY2010 (Previous period = 100%) Ratio Ratio (Yen) (Local currency) Net Sales 124.6 100.0% 116.1 100.0% 107.3% — Americas 25.4 20.4% 23.4 20.2% 108.7% 117.7% Europe 35.2 28.3% 36.4 31.4% 96
Slide 11: Geographic Segment Information: Americas
Geographic Segment Information: Americas (Billions of yen) Net Operating 30 Sales (Billions of yen) Income 4.5 YoY (Previous FY2011 FY2010 period = 100%) 25.4 23.3 23.4 3.2 20 19.1 20.8 2.7 3.0 Net Sales 25.4 23.4 108.7% 1.7 Operating Income 3.2 2.7 117.0% 10 0.9 1.5 Note: On a local currency basis:
Slide 12: Geographic Segment Information: Europe
Geographic Segment Information: Europe (Billions of yen) 45 Net (Billions of yen) Operating 12 Income Sales 39.1 YoY (Previous 35.3 36.4 35.2 FY2011 FY2010 period = 100%) 31.5 30 8 Net Sales 35.2 36.4 96.8% 5.1 5.3 3.5 4.6 4.5 Operating Income 4.5 5.3 85.8% 15 4 Note: On a local currency basis: net
Slide 13: Geographic Segment Information: China
Geographic Segment Information: China 20 Net Operating 5 (Billions of yen) Sales Income (Billions of yen) YoY (Previous 15.0 4 FY2011 FY2010 period = 100%) 15 11.8 ※ * 2.4 3 Net Sales 15.0 11.8 127.4% 10.1 10 6.8 8.1 2.7 2 Operating Income 2.4 2.7 87.6% 1.3 5 0.7 0.8 Note: On a local currency basis:
Slide 14: Geographic Segment Information: AP
Geographic Segment Information: AP 8 Net Operating 1.5 (Billions of yen) Sales Income (Billions of yen) YoY (Previous 7.1 FY2011 FY2010 period = 100%) 6 5.8 5.3 5.0 0.8 1.0 4.0 ※* 0.7 Net Sales 7.1 5.8 121.6% 4 0.6 0.5 Operating Income 0.7 0.8 83.0% 0.5 0.3 2 Note: On a local currency basis: net sal
Slide 15: Geographic Segment Information: Japan
Geographic Segment Information: Japan (Including South Korea, (Billions of yen) (Billions of yen) Taiwan, IDEXX and Operating YoY (Previous Net FY2011 FY2010 Sales other countries) Income period = 100%) Net Sales 75.7 66.4 114.0% 69.0 75.7 66.8 66.4 Sales to Customers 41.7 38.5 108.1% 64.9 Japan 38.
Slide 16: Projected Dividend
Projected Dividend Forecast corresponds to 9th consecutive year of dividend increases Note: Expected dividend is ¥4 higher than initial year-end dividend forecast of ¥28 Interim Year-End Dividend Ratio Total Dividend Dividend (Consolidated) FY2011, Ended March 31, 2011 (Forecast) ¥28 ¥32 ¥60 27.0% F
Slide 17: Chapter 2 Review of Previous Mid-Term Management Plan
Chapter 2 Review of Previous Mid-Term Management Plan (Announced in May 2009)
Slide 18: Review of Previous Plan (Announced in May 2009)
Review of Previous Plan (Announced in May 2009) Despite significant yen appreciation, essentially reached the plan’s operating income target one year ahead of schedule, in the fiscal year ended March 31, 2011 Achieved increase in profitability as, in addition to the impact of higher sales, the cost
Slide 19: Review of Previous Plan: Hematology Growth
Review of Previous Plan (Announced in May 2009) 1. Sustain growth in the hematology field *1 IHN: Integrated healthcare network Achieve further growth in advanced countries *2 VISN: U.S. Veterans Integrated Service Network United States: Increase penetration into large commercial labs, IHNs*1 and th
Slide 20: Review of Previous Plan: Non-Hematology Fields
Review of Previous Plan (Announced in May 2009) 2. Accelerate growth of non-hematology fields in in-vitro diagnostics ■ Previous Plan Targets, Actual Reinforce activities as a comprehensive supplier in Results and Simulation Japan and other parts of Asia Sales in Non- Immunology: Rise in sales due t
Slide 21: Review of Previous Plan: R&D and Corporate Structure
Review of Previous Plan (Announced in May 2009) 4. Strengthen R&D Accelerate product development Opened reagent development center in China (Wuxi) and are working toward reagent development Improved flow of products from research to development Completed development of new flagship model, the XN-Ser
Slide 22: Chapter 3 Mid-Term Management Plan (April 2011 – March 2014)
Chapter 3 Mid-Term Management Plan (April 1, 2011 – March 31, 2014)
Slide 23: Macro Environment
Macro Environment Economy Society Rapid growth in emerging markets Growing social unrest Economic growth, supported by huge populations Growing anti-government sentiment in the Middle (and rates of growth) and abundant natural East and North Africa resources Social infrastructure being built up in l
Slide 24: Healthcare and the IVD Market
Healthcare and the IVD Market Expanding Healthcare Markets Healthcare markets growing at rapid pace in emerging markets: Expanding healthcare infrastructures, population growth and rising standards of living In advanced countries, healthcare market growth stable: Graying populations, increasing prev
Slide 25: Overview of Long-Term Management Targets
Overview of Long-Term Management Targets Long-Term Management Vision: “A Unique & Global Healthcare Testing Company” Long-Term Management Targets Positioning Financial target Undisputed global leader in hematology ・Net sales: ¥500 billion or more Leading company in the Asian IVD market Leading co
Slide 26: Core Strategies
Core Strategies Secure an undisputed leadership position Leading As an industry frontrunner, provide products that offer new Hematology value and high levels of usability Leading in Establish uniqueness as a comprehensive IVD supplier Introduce products and services that meet emerging market Emergin
Slide 27: Medium- and Long-Term Management Targets
Medium- and Long-Term Management Targets ■Long-Term Management Target ・Net Sales: ¥500 billion or more ■Mid-Term Management Targets (FY2014) ・Net Sales: ¥175.0 billion ・Operating Income: ¥26.5 billion ■ Now (FY2011) ・Operating Margin: 15.1% ・Net Sales: ¥124.6 billion ・ROE: 13.8% ・Operating Income: ¥
Slide 28: Approaches to Mid-Term Management Targets
Approaches to Mid-Term Management Targets ■ Destination-Specific (Billions of yen) (Billions of yen) 3.9 200 Opeating 60 Growth in Asia and other 4.8 Net Sales Income emerging markets 16.9 Three-year CAGR 175.0 12.5 (net sales) 12.0% 50 175.0 160 155.0 11.9 138.0 124.6 40 124.6 120 26.5 30 FY2011 Am
Slide 29: Key Objectives and Action Plans (1)-1
Mid-Term Management Plan: Key Objectives and Action Plans (1)-1 1. Accelerate growth in Asia and other emerging markets Growth in Core Businesses Achieve high level of stable growth in hematology field Multiparameter Promote system sales to high-end segment and global market development automated he
Slide 30: Key Objectives and Action Plans (1)-2
Mid-Term Management Plan: Key Objectives and Action Plans (1)-2 1. Accelerate growth in Asia and other emerging markets Initiatives as a Comprehensive Supplier Strengthen base in Asia in clinical chemistry and immunology Promote introduction of clinical chemistry analyzers by leveraging alliances wi
Slide 31: Key Objectives and Action Plans (1)-3
Mid-Term Management Plan: Key Objectives and Action Plans (1)-3 1. Accelerate growth in Asia and other emerging markets Take advantage of new growth opportunities presented by the expansion of healthcare infrastructures Strengthen manufacturing structures Expand Ono, Jinan, Singapore and other facto
Slide 32: Key Objectives and Action Plans (2)-1
Mid-Term Management Plan: Key Objectives and Action Plans (2)-1 2. Establish undisputed leadership position and increase profitability in hematology Roll out flagship XN Series on a global scale Employs modular concept, enabling response to diverse needs Use of concentrated reagents reduces changing
Slide 33: Key Objectives and Action Plans (2)-2
Mid-Term Management Plan: Key Objectives and Action Plans (2)-2 2. Establish undisputed leadership position and increase profitability in hematology Expand market with XS-500i (five-type analyzer) tailored to emerging market needs Develop rapidly growing volume zone, centering Compact hematology ana
Slide 34: Key Objectives and Action Plans (3)
Mid-Term Management Plan: Key Objectives and Action Plans (3) 3. Accelerate growth in non-hematology fields and lay the foundations for future expansion Take market share from competitors by introducing new hemostasis products Promote improved diagnostic efficiency with UX-2000 integrated urine chem
Slide 35: Key Objectives and Action Plans (4)
Mid-Term Management Plan: Key Objectives and Action Plans (4) 4. Promote commercialization of the life Science business Expand regions where introduced and application of Target Sales in the Life Science Field (Billions of yen) OSNA to other types of cancer Increase number of regions where OSNA (bre
Slide 36: Key Objectives and Action Plans (5)
Mid-Term Management Plan: Key Objectives and Action Plans (5) 5. Proactively leverage M&A and alliance opportunities to expand our portfolio of businesses and accelerate beyond the limits of organic growth Leverage M&A and alliance opportunities to accelerate beyond the limits of organic growth Unco
Slide 37: Chapter 4 Consolidated Earnings Forecast for FY Ending March 2012
Chapter 4 Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2012
Slide 38: Consolidated Earnings Forecast
Consolidated Earnings Forecast Consolidated Earnings Forecast for the Year Ending March 31, 2012 Net Sales: ¥138.0 billion Operating Income: ¥20.5 billion Ordinary Income: ¥20.7 billion Net Income: ¥13.0 billion Operating Margin: 14.9% Ordinary Margin: 15.0% Net Income Margin: 9.4% Planned Capital E
Slide 39: Financial Targets: Sales and Operating Income by Region
Financial Targets: Sales and Operating Income by Region Net Sales Operating Income (Billions of yen) Americas Net Sales Europe Operating Income Japan 35 5 45 12 39.1 39.5 30 28.2 36.4 35.2 4 35.3 100 Net Sales Operating Income 21 25.4 25 20.8 23.3 23.4 2.7 3.2 * 2.7 30 8 20 3 85.4 5.3 5.5 5.1 4.6 4.
Slide 40: Dividend Policy and Dividend Forecast
Dividend Policy and Dividend Forecast To To continue continue growing growing at at aa high high and and steady steady rate, rate, Sysmex Sysmex must must strike strike an an appropriate appropriate balance balance between between investing investing aggressively aggressively andand returning return
Slide 41: Appendix: Mid-Term Management Targets
Appendix Mid-Term Management Targets
Slide 42: Mid-Term Management Targets
補足資料 Mid-Term Management Targets (Billions of yen) Consolidated Profits FY2012 FY2013 FY2014 and Losses YoY YoY (Previous period = 100) (Previous period = 100) Japan 39.5 41.0 103.8% 42.5 103.7% Overseas 98.5 114.0 115.7% 132.5 116.2% Net Sales 138.0 155.0 112.3% 175.0 112.9% Operating Income 20.5 2
Slide 43: Mid-Term Management Targets by Business
補足資料 Mid-Term Management Targets (Billions of yen) Net Sales by FY2013 FY2014 Business FY2012 YoY YoY (Previous period = 100) (Previous period = 100) Hematology 85.0 94.6 111.4% 106.0 111.9% Hemostasis 17.8 20.4 114.4% 23.0 112.6% Immunology 3.0 3.4 113.0% 4.7 138.8% Clinical Chemistry 3.8 4.4 116.4
Slide 44: Mid-Term Targets: Sales and Operating Income by Geographic Region
Mid-Term Management Targets Sales and Operating Income by Geographic Region (Billions of yen) (Net (Operating Sales) Income) (Net (Operating Europe Sales) Americas Income) 50 47.9 10 Japan 39.5 43.5 (Net Sales) [Includes South Korea, (Operating Income) 40 37.1 10 40 8 Taiwan and IDEXX] 32.3 32 8 120
Slide 45: Sysmex Corporation Contact
Chapter 3 Sysmex Corporation <Contact> IR & Corporate Communication Dept. Phone: +81-78-265-0500 Email: info@sysmex.co.jp URL: