Terumo Corporation · TSE:4543
Terumo — FY2007 Earnings Presentation
25 slides from Terumo's earnings presentation, 2007
Slide 1: Financial Results for FYE/Mar.2007 & Business Plan for FYE/Mar.2008
Financial Results for FYE/ Mar.2007 & Business Plan for FYE/Mar.2008 Terumo Corporation 1
Slide 2: Sales and profits enjoyed double-digit growth
Sales and profits enjoyed double-digit growth (Unit: billion yen) FYE/Mar. 2006 FYE/Mar. 2007 Rate of change Net Sales 247.0 276.4 11.9% Gross Profit (%) 135.7 (54.9%) 153.3 (55.5%) 13.0% S.G.A Expenses (%) 87.4 (35.4%) 94.9 (34.3%) 8.5% Operating Income (%) 48.3 (19.5%) 58.5 (21.2%) 21.1% Ordinary
Slide 3: Net Sales (by Product group)
Net Sales (by Product group) (Unit: billion yen) +29.4 Consolidated total: 11.9% growth 276.4 247.0 CV and vascular grafts 45.5 (Growth rate: 14.5%) +5.8 39.7 Interventional products 64.0 +14.7 (Growth rate: 30.0%) 49.2 28.8 +0.5 Home health care products 28.2 (Growth rate: 1.9%) General hospital pr
Slide 4: Net Sales (by Region)
Net Sales (by Region) (Unit: billion yen) 276.4 +29.4 Consolidated Net Sales 247.0 Growth rate 11.9% (9.5%) 22.9 +3.4 19.5 52.7 +14.1 Asia & Others 17.5% (11.7%) 38.6 39.6 48.4 +8.8 Americas 36.6% (33.3%) Europe 22.2% (13.3%) 149.4 152.5 +3.1 Outside Japan 26.9% (20.9%) Japan 2.1% FYE/Mar.2006 FYE/M
Slide 5: Details of S.G.A Expenses
Details of S.G.A Expenses (Unit: billion yen) 94.9 +7.5 (Fluctuation rate) 87.4 R&D (-6.8%) 16.8 -1.2 (+1.1*) (Actual +6.6%) 18.0 Sales promotion and (15.7*) 10.2 +1.2 advertising (+12.8%) 9.1 8.0 +0.6 Logistics (+7.6%) 7.4 31.8 +3.9 Personnel (+14.0%) 27.9 Others (+12.3%) 25 28 +3.1 FYE/Mar. 2006 F
Slide 6: Toward Achieving the Goals of the Mid-term Plan, STePUP2007
Toward Achieving the Goals of the Mid-term Plan, STePUP2007 6
Slide 7: Cardiac & Vascular products driving growth, with general hospital products sales steady
Cardiac & Vascular products driving growth, with general hospital products sales steady (Unit: billion yen) General Hospital 300 Step UP 2007 70 Cardic & Vascular Home health care 250 Operating income 60 200 150 50 100 40 50 0 30 FYE/Mar.2005 FYE/Mar.2006 FYE/Mar.2007 FYE/Mar.2008 7 (Forecast)
Slide 8: Outside Japan business greatly expanded while Japan sales showed growth
Outside Japan business greatly expanded while Japan sales showed growth despite unfavorable conditions (Unit: billion yen) Step UP 2007 180 160 140 120 100 Outside Japan 80 Japan 60 40 20 0 FYE/Mar.2005 FYE/Mar.2006 FYE/Mar.2007 FYE/Mar.2008 8 (Forecast)
Slide 9: Growing products: I.V. solution sets
Growing products 1) I.V. solution sets ◆I.V. solution sets for risk management increased sales (Unit: billion yen) 15 12.5 10 7.5 I.V. solution sales transition 5 2.5 0 FYE/Mar.2004 FYE/Mar.2005 FYE/Mar.2006 FYE/Mar.2007 9 Ordinary Risk management
Slide 10: Growing products: Pre-filled syringes
Growing products 2) Pre-filled syringes ◆Sales of Pre-filled syringes in Japan (Unit: billion yen) ◆Penetration of prefilled products 10 2% (1998) 25 →15% (2005) 20 5 15 10 5 0 0 US Japan FYE/Mar.2005 FYE/Mar.2006 FYE/Mar.2007 FYE/Mar.2008 （Terumo estimates） （Forecast） 10
Slide 11: Generic I.V. solution "Soldem" enjoying growth
Generic I.V. solution "Soldem" enjoying growth (Unit:Ten thousand bottles) 2,500 55% 2,000 50% 45% 1,500 40% 1,000 35% 500 30% 0 25% FYE/Mar.2002 FYE/Mar.2003 FYE/Mar.2004 FYE/Mar.2005 FYE/Mar.2006 FYE/Mar.2007 （IMS data） Quantity Share in Japan 11
Slide 12: Overseas sales by region
Overseas sales by region (Unit: billion yen) Step UP 2007 140 Europe 120 100 Americas 80 Asia & Others 60 40 CAGR 19.6% (FYE/Mar.2005 to FYE/Mar.2007) 20 0 FYE/Mar.2005 FYE/Mar.2006 FYE/Mar.2007 FYE/Mar.2008 (Forecast) 12
Slide 13: European market
European market ◆Continuous high sales growth in interventional products ◆Presence of vascular grafts (of Vascutek) playing a critical role 60 (Unit: billion yen) 50 General hospital Interventinal 40 Cardiovascular Vascular grafts 30 Others 20 CAGR 18.0% (FYE/Mar.2005 to 10 FYE/Mar.2007) 0 FYE/Mar.2
Slide 14: Interventional business in Europe
Interventional business in Europe ◆Grown in all product groups 20 (Unit: billion yen) 15 Angiographic catheters 10 PTCA/Stent Others 5 0 FYE/Mar.2005 FYE/Mar.2006 FYE/Mar.2007 14
Slide 15: Vascutek Strategy
Vascutek Strategy Stent graft (Anaconda) ■Minimally invasive therapy ◆Vascutek's sales transition in the surgical domain (Unit: billion yen) 10 Vascular grafts (BioValsalva) 5 9.6 ■Composite of biological valve and synthetic vascular graft 5 ※Introducing the technology from Kohler Chemie 0 (Kohler's
Slide 16: US market
US market ◆Drastic growth of intervention product sales (M&A+shift to direct sales) ◆Planning business growth in cardiac surgery domain 60 (Unit: billion yen) 50 General hospital Interventional 40 Cadiovascular Vascular grafts 30 Others 20 CAGR 21.4% 10 (FYE/Mar.2005 to FYE/Mar.2007) 0 FYE/Mar.2005
Slide 17: Launching PTCA guidewire, "Runthrough NS"
Launching PTCA guidewire, “Runthrough NS” ◆Taking advantage of No.1 position in guide wire for angiographies in the US Sales & share of PTCA guidewire in Japan (Unit: million yen) sales/share of “Runthrough NS” 30% 1,500 25% Sales Share 20% 1,000 15% *Japanese market: 10% 6.2 billion yen 500 (Terumo
Slide 18: New products in cardiopulmonary systems
New products in cardiopulmonary systems ◆Endoscopic Vein Harvesting system, "VirtuoSaph" ‐Jointly developed with Olympus and launched in the US in 2005 ‐Sales in the US: about 900 million yen in FYE/Mar. 2007 ⇒ Expected sales of 2.3 billion yen in FYE/Mar. 2008 "VirtuoSaph" Scar from conventional Sc
Slide 19: Asian market
Asian market ◆Business properties similar to those of Japan ◆Market expanding thanks to improving medical standards 25 General hospital (Unit: billion yen) Interventinal Cardiovascular systems 20 Vascular grafts Others 15 10 CAGR 19.1% (FYE/Mar. 2005 to FYE /Mar. 2007) 5 0 FYE/Mar.2005 FYE/Mar.2006
Slide 20: Expanding the supply of general hospital medical devices
Expanding the supply of general hospital medical devices ◆Buildings of plant in Vietnam to be completed in May ‐Production facilities to be move into the plant after completion of building construction ‐ Mainly produces highly functional products contributing to medical safety 20
Slide 21: Left Ventricular Assist System "DuraHeart"
Left Ventricular Assist System ® "DuraHeart " Approved CE mark February 2007 ◆ Europe - Launch scheduled in the first half of this fiscal year - To be marketed by Vascutek Ltd. ◆ Japan - The Ministry of Health, Labour and Welfare studying early approval ◆ US - Application for clinical tests schedule
Slide 22: Drug Eluting Stent "Nobori"
Drug Eluting Stent ® "Nobori " ◆ Europe - Applied for the CE mark and awaiting the results - Sales in Europe and Asia to be started after CE marked ◆ Japan - In the process of preparing for clinical tests Drug Eluting Stent ® "Nobori " 22
Slide 23: Striving to achieve the double-digit profit growth in FYE/Mar. 2008
Striving to achieve the double-digit profit growth in FYE/Mar. 2008 (Unit: billion yen) Increase FYE/Mar. 2007 FYE/Mar. 2008 (forecast) rate Net Sales 276.4 300.0 9% Operating Income (%) 58.5 (21.2%) 64.0 (21.3%) 10% (13%) Ordinary Income (%) 58.0 (21.0%) 64.0 (21.3%) 10% (13%) Net Income (%) 37.2 4
Slide 24: Striving to achieve the double-digit profit growth in FYE/Mar. 2008
Striving to achieve the double-digit profit growth in FYE/Mar. 2008 (Unit: billion yen) Increase FYE/Mar. 2007 FYE/Mar. 2008 (forecast) rate Net Sales 276.4 300.0 9% Operating Income (%) 58.5 (21.2%) 64.0 (21.3%) 10% (13%) Ordinary Income (%) 58.0 (21.0%) 64.0 (21.3%) 10% (13%) Net Income (%) 37.2 4
Slide 25: IR Contact
IR Contact TERUMO Corporation Corporate Communication (IR) Dept. E-mail: CCD@terumo.co.jp This document contains forward-looking statements that reflect management’s current views with respect to certain future events and financial performance. Actual results may differ materially from those project