Terumo Corporation · TSE:4543
Terumo — Investor Presentation (December 2016)
13 slides from Terumo's investor presentation, Dec 12, 2016
Slide 1: Corporate Strategy
2 Toshihiko Osada Corporate General Manager, Strategic Planning Department Strategy © Terumo Corporation Dec 12, 2016
Slide 2: Outlook: Medtech Industry
Outlook: Medtech Industry Global medtech market: Forecast to grow at a CAGR of 5-6% for the next 10 years, with market size of 60 trillion JPY Market Size 2016 % to market Expected Environment changes (Trillion Yen) 2025 at 2025 Growth % • Increase in demand, 16 24 40% 4.9% focus on efficiency • Tig
Slide 3: Healthcare Reform
Healthcare Reform Environment Change Healthcare Reform Increased healthcare demand • Aging society • Quantify value • Chronic diseases Volume • Improve efficiency in Financial pressure to value hospital management • Control of healthcare expenditure, increased price pressure • Emphasis on value and
Slide 4: Turn to Industry Consolidation as a Growth Opportunity
Turn to Industry Consolidation as a Growth Opportunity Global Trend Growth Opportunities Concentrated, oligopolized Greater opportunities in the mega-markets medium-scale segments Mega-competitors focused on Provide comprehensive therapeutic products bundling treatment process solutions Divestiture
Slide 5: Terumo Strategy: Win in Selected Strategic Markets
Terumo Strategy: Win in Selected Strategic Markets Offer specialized and superior products • Technologies to develop cutting-edge products Competitive • Create and expand “Must Have” Advantage Interventional access products and devices for pharma companies Select growing segments and segments wher
Slide 6: Terumo Strategy: Offer Comprehensive Value in Japan
Terumo Strategy: Offer Comprehensive Value in Japan Deliver a diversified product portfolio • Collaborative effort of engineering, production and sales Competitive • Wide range of access to Japan’s healthcare needs Advantage • Established distribution network Strategy Leverage leading position and p
Slide 7: Terumo Strategy: Accelerate Innovation
Terumo Strategy: Accelerate Innovation Collaborative effort between in-house engineering and open Innovation • Globally spread innovation centers Competitive • Wide range of core technologies such as coating and Advantage microfabrication • Shift to the new way of engineering (Biodesign, etc.) Contr
Slide 8: Mid- to Long-term Growth Strategy
Mid- to Long-term Growth Strategy Offer Win in Selected Accelerate Comprehensive Strategic Market Innovation Value in Japan Select growing segments Leverage the leading Contribute to future of and segments where position and pursue healthcare with Terumo owns a growth opportunities significant socia
Slide 9: Growth by Transforming Portfolio and Globalizing
Growth by Transforming Portfolio and Globalizing Business Sales Breakdown Plan FX rate: USD=105 JPU, EUR=115 JPY 7% Blood Management 20% 18% 36% Cardiac and Vascular 49% 55% 57% 31% General Hospital 27% Regional Sales Breakdown Japan 40% 36% 30% 60% 64% Outside Japan 70% FY05 FY15 FY21 © Terumo Corp
Slide 10: Achieve Profitable and Sustainable Growth
Achieve Profitable and Sustainable Growth Management Indicators for the next 5 years Plan FX rate: USD=105 JPY, EUR=115 JPY Growth Profitability Efficiency Faster revenue growth Faster profit* growth Maintain than market growth than revenue growth ROE 10%+*** High single-digit Double-digit Growth Gr
Slide 11: Cash Allocation
Cash Allocation CAPEX 200 - 250 B JPY Accumulated Operating Cash Flow (FY17-21) Dividend 100- 150 B JPY 500 - 600 B JPY M&As and shareholder returns Financial arrangement 200+ B JPY © Terumo Corporation Dec 12, 2016 10/10
Slide 12: © Terumo Corporation
~“TERUMO © Terumo Corporation
Slide 13: Disclaimer
Disclaimer The information that Terumo discloses and the forward-looking statements including financial projections are based upon our assumptions using information available to us at the time and are not intended to be guarantees of future events or performance. Accordingly, it should be noted that