Terumo Corporation · TSE:4543
Terumo — H1 FYE Mar 2009 Earnings Presentation
25 slides from Terumo's earnings presentation, Oct 30, 2008
Slide 1: Half Year Financial Results for FYE/Mar 2009
Half Year Financial Results for FYE/Mar 2009 Terumo Corporation 30, October 2008 -1-
Slide 2: Sales Increasing But Operating Income decreased
Sales Increasing But Operating Income decreased (Unit: Billion yen) Q2 FYE/Mar. 2008 Q2 FYE/Mar. 2009 Rate of change Net Sales 150.8 157.0 4% Gross profit (%) 82.8 (54.9%) 84.3 (53.7%) 2% S.G.A Expenses (%) 49.3 (32.7%) 52.8 (33.7%) 7% Operating Income (%) 33.5 (22.2%) 31.5 (20.0%) -6% Ordinary Inco
Slide 3: Net Sales (by Region)
Net Sales (by Region) Double-digit growth continuing, excluding impact of foreign exchange (Unit: Billion yen) + 2% Outside Japan total Half Half + 1.8 FYE Mar. FYE Mar. +6% 2008 2009 (+ 14% excluding impact of foreign exchange) Ratio of sales outside Japan to total sales 47%Æ48% +13% 0% +6% 79.5 81
Slide 4: Net Sales (by Product Group)
Net Sales (by Product Group) (Unit: Billion yen) +1% +8% Half Half (+2%) (+14%) FYE Mar. FYE Mar. 2008 2009 +0.4 +5.0 +10% -14% (+14%) (-14%) 75.2 66.6 74.8 61.6 +1.1 12.6 11.5 ‐0.4 3.0 2.6 General Cardiac & Blood Consumer Hospital Vascular transfusion Healthcare -4-
Slide 5: S.G.A Expenses
S.G.A Expenses (Unit: Billion yen) +3.5 S.G.A Expenses ratio 1.0 point increase 52.8 49.3 Half FYE Half FYE Change % Mar. 2008 Mar. 2009 Personal 18.3 19.5 +1.2 6.8% 32.7% 33.7% Logistics 4.4 4.7 +0.3 6.5% Sales and Advertising 4.8 5.2 +0.4 8.2% R&D 7.8 8 +0.2 2.6% Depreciation Goodwill 0.6 1 +0.4 6
Slide 6: The Impact of Uncommon Factors
The Impact of Uncommon Factors (Unit: Billion yen) Sales Operating Profit Foreign Exchange Hepaflush Foreign Exchange Revised NHI price Hepaflush +10 % Revised NHI price - 9.2 +10 % Changing the accounting & tax system -5.5 157.0 150.8 33.5 31.5 Half Half Half Half FYE Mar. 2008 FYE Mar. 2009 FYE Ma
Slide 7: With Changing Assumed Exchange Rate
With Changing Assumed Exchange Rate (Unit: Billion yen) FYE/Mar 2009 FYE/Mar. 2009 FYE/Mar. 2009 Q2 Results Revised Fcst. Original Fcst. Net Sales 157.0 310.0 318.0 Operating Income (%) 31.5 (20.0%) 62.0 (20.0%) 68.0 (21.4%) Ordinary Income (%) 32.8 (20.9%) 61.0 (20.9%) 68.0 (21.4%) Net Income 23.0
Slide 8: Topics
Topics ◆Review of The 1st Half ◆Future Market Trends and Strategies -8-
Slide 9: Review of The 1st Half
nnn | | Pl || Review of The 1° Half
Slide 10: Japan Business Expanding Stably
Japan Business Expanding Stably ◆Market growth is in extremely low, but ◆Our business continuously growing even after NHI price revisions (Unit: Billion yen) 900 Sales CAGR 3.5% 800 JP Healthcare expenditure CAGR 1.5% 700 First half Second half 600 FYE/Mar.2006 FYE/Mar.2007 FYE/Mar.2008 FYE/Mar.2009
Slide 11: Interventional Business Showing Strong Growth in WW
Interventional Business Showing Strong Growth in WW (Million dollar) (Million Euro) 140 CAGR 43% (incl. US direct sales 90 CAGR 17% 120 and MV acquisition) 100 60 80 Number of cases CAGR 33% （PCI） 60 Number of cases 30 CAGR 3.3% （PCI） 40 CAGR -2.8% 20 0 0 FYE/Mar.2006 FYE/Mar.2009 FYE/Mar.2006 FYE/M
Slide 12: New Member of Group "Clinical Supply"
New Member of Group “Clinical Supply” ◆Already Started to strengthen sales force in Japan ◆International marketing of its products to start in next fiscal year ◆Integration synergy in both development and production "Sniper" Catheters for angiography Micro catheters -12-
Slide 13: Future Market Trends and Strategies
Future Market Trends and Strategies -13-
Slide 14: Things Taking Place, Now…
Things Taking Place, Now… Drastic economic changes Aging of society in progress Growth in Tightening of regulations Increasing life style diseases for medical safety healthcare expenditure Globally expanding business opportunities with the keyword “Healthcare Economic Efficiency” -14-
Slide 15: Japanese Government Expects Medical Devices To Improve Healthcare Economy
Strategy 1 Japanese Government Expects Medical Devices To Improve Healthcare Economy ◆In Sep, MHLW announced "New Vision of Medical Devices & Medical Technology Industry" ◆The new vision to provide incentive towards product development improving economic efficiency in healthcare. -15-
Slide 16: New Product Launch for Better Healthcare Economy
New Product Launch for Better Healthcare Economy ◆New IV system, “EXFREE” ‐A brand new connection method is developed, contributing to safety improvements in IV solutions ◆ A new pre-filled syringe: “AtvagoReverse” ‐Integrating syringes with two drugs (neostigmine + atropine) contributing to safety
Slide 17: Catheterization with "TRI," Outstanding Healthcare Economy
Strategy 2 Catheterization with “TRI,” Outstanding Healthcare Economy ◆ More minimally invasive ‐Approaching cardiovascular system from a wrist artery ◆ Easy hemostasis ‐Drastically shorter time needed than conventional methods (via femoral artery) ◆ Enabling patients to walk back home ‐Patients can
Slide 18: Terumo = TRI, Global Expansion Through Unique Strategies
Terumo = TRI , Global Expansion Through Unique Strategies ◆A comprehensive range of products from access to hemostasis ◆ From Japan to the world: Together with the spread and penetration of this procedure TRI Penetration rate Japan : 45% Europe: 25% America : 5% or below Asia: 25% ※As of March 2008
Slide 19: Expanding Interventional Product Lineup
Strategy 3 Expanding Interventional Product Lineup ◆Neuro intervention ‐ Coils for cerebral aneurysms treatment + Guidewires -- Launched in Q2 + Catheters -- Plan to be launched in 2nd half HydroSoft （ Coils for cerebral aneurysms treatment ） ◆Peripheral MISAGO (stent for femoral artery) AZUR (coil
Slide 20: Improving Production Capability and Profitability (1)
Strategy 4 Improving Production Capability and Profitability (1) Interventional Products ◆Construction of a new building at Ashitaka Plant started ◆Production capability to increase in America and Europe Terumo Medical CO. (U.S.A) A rendering of the new Terumo Europe N.V. (Belgium) building, Ashitak
Slide 21: Improving Production Capability and Profitability (2)
Improving Production Capability and Profitability (2) Increase in Production Capability in Asia ◆Vietnamese plant: started operation in May ◆Capacity expansion also planned in China and India Changchun Terumo Medical Products CO.,LTD Terumo Penpol LTD. Terumo Vietnam CO.,LTD -21-
Slide 22: Value-added Approach & Pursuit of Operational Efficiency
Strategy 5 Value-added Approach & Pursuit of Operational Efficiency ◆Terumo Medical Pranex Training for medical professionals in Terumo Medical Pranex ◆EB (electron beam) sterilization system - Contributing to shortening lead time and reducing inventories ◆Thoroughly efficient use of general overhea
Slide 23: Development of Globally Important New Products Making Steady Progress
Strategy 6 Development of Globally Important New Products Making Steady Progress ◆DuraHeart ‐Clinical tests started in America (July) and in Japan (October) in succession ‐Sales steady in Europe ◆Nobori Duraheart ‐ Enrollment in Japan completed （ Left Ventricular Assist System ） ‐ Sales steady in Eu
Slide 24: Summary
Summary ◆Global economy in confusion, but business opportunities increasing ◆Keyword is “Healthcare Economic Efficiency”; Terumo’s strategy = Needs of the age ◆Phoenix2010 in progress toward better and increased profitability <Topic> Own shares acquisition is just resolved during the board of direct
Slide 25: IR Contact
IR Contact TERUMO Corporation Corporate Communication (IR) Dept. E-mail: kouhou_terumo01@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 t