Terumo Corporation · TSE:4543
Terumo — Investor Presentation (December 2016)
25 slides from Terumo's investor presentation, Dec 12, 2016
Slide 1: Cardiac and Vascular Company
3 Cardiac and Shinjiro Sato President, Vascular Cardiac and Vascular Company Company © Terumo Corporation
Slide 2: Business Overview: Cardiac and Vascular Company
Business Overview: Cardiac and Vascular Company FY14 to 15 FY15 Sales Growth Major Products 177 B JPY 15% • DES TIS • PTCA Balloon • Access Devices Cardiac 26 B JPY 26% • Coil Neurovascular • Flow Diverter and • Aspiration Catheter Vascular Company 42 B JPY 7% • Oxygenator CV • Heart Lung Machine (C
Slide 3: Mid- to Long-term Vision
Mid- to Long-term Vision Recognized globally as a “Top brand” among cardiac and vascular companies Be within the top three players in each market where we participate Gain world-class trust from customers for overall quality (in product, supply, and service) © Terumo Corporation Dec 12, 2016 2/2
Slide 4: Market Dynamics and Opportunities
Market Dynamics and Opportunities Market Environment: 環境変化 Headwind 成長機会 Business Opportunities Slowing demand in US as a new frontier for C&V developed markets Market Price pressure Strong demand in emerging markets Evidence-driven Improved treatment efficacy by devices with high quality and usabil
Slide 5: Mid- to Long-term Growth Strategy: C&V Company
Mid- to Long-term Growth Strategy: C&V Company Key initiatives to execute the strategy Evolve a balanced “Advanced and Platform” model Further develop global frontiers Market dynamics Recognized globally as a and C&V’s strengths Leverage synergies across four businesses “Top brand” among cardiac and
Slide 6: Competitive Advantage #1: Evolve Advanced and Platform
Competitive Advantage #1 Evolve “Advanced and Platform” Uniquely positioned with a differentiated portfolio (achieving a balance between therapeutic and platform products) Therapeutic Coil and Stent Devices Stent Graft Advanced devices, embolics, etc. Embolic DES DCB beads Advanced (Therapeutic) TRI
Slide 7: Competitive Advantage #2: Evolve Advanced and Platform
Competitive Advantage #2 Evolve “Advanced and Platform” Our focus: Provide a vertically integrated solution for vascular intervention Value Products Vascular Intervention, Enables effective and Coil Advanced Stent (Therapeutic) Interventional cost-efficient therapy Oncology Embolic Beads Pretreat le
Slide 8: Optimize Portfolio
Optimize Portfolio Evolve “Advanced and Platform” Achieve balanced growth in the Advanced and Platform products portfolio DES: Selective expansion Peripheral: Comprehensive and life cycle management products offering and leverage TRI approach Advanced Comprehensive Expand Interventional neur
Slide 9: Strategic Expansion of DES
Strategic Expansion of DES Evolve “Advanced and Platform” Product pipeline Improving “Ultimaster Tansei” deliverability Metal Advancing Ultimaster: Next metallic DES DES Renewing stent design Optimizing complex lesion treatment Next generation DES Bio- Concurrent development while assessing market t
Slide 10: Expand Peripheral and IO businesses
Expand Peripheral and IO businesses Evolve “Advanced and Platform” Peripheral Interventional Oncology (IO) Expand the product offering Expand further comprehensive offerings • Offer products from access to stent • Offer access and therapeutic devices • Develop a variety of therapeutic devices • Offe
Slide 11: Offer Full Range of Neurovascular Products
Offer Full Range of Neurovascular Products Evolve “Advanced and Platform” Total Neurovascular Company: Expand non-coil and stroke devices Flow Diverter Advanced Coils Stent New Aneurysm Balloon Coil Embolization Device Carotid Stent Clot Retriever Stroke Devices Aspiration Catheter © Terumo Corporat
Slide 12: Prioritize Investment: Further develop the global frontiers
Prioritize Investment Further develop the global frontiers Significant growth opportunities in large markets such as US, China, and emerging markets Enter and expand therapeutic product offerings in peripheral and neurovascular markets US Extend access product line and get further TRI approach p
Slide 13: Create Synergies across Four Businesses
Create Synergies across Four Businesses Leverage synergies across four businesses 1) Share best practices, 2) Utilize technologies and sales channels, 3) Optimize R&D and production, 4) Collaborate on projects in adjacent markets Core technologies Opportunities to leverage synergies Plastic molding
Slide 14: Leverage Our Technologies and Channels for Less Invasive Treatments
Leverage Our Technologies and Channels to Gain Opportunities That Arise from Expanding Less Invasive Treatments Leverage synergies across four businesses Expand application of vascular intervention Less invasive LAA Cardiology PTCA TAA CABG Cardiovascular RDN TAVR MCS Valvuloplasty Inter- TMVR Ablat
Slide 15: Accelerate Innovation Globally (TIS)
Accelerate Innovation Globally (TIS) Gain a competitive edge through innovation Faster development, closer to the market, by the organization with the core technology TCSC Interventional Oncology, Microcatheter Platform and Stent DES, Peripheral Stents Ashitaka Platform Products CA-IS (New markets)
Slide 16: Upcoming Innovative Products
Upcoming Innovative Products Gain a competitive edge through innovation Expected to achieve first-to-market in the US Aneurysm Embolization Device Frozen Elephant Trunk Device New oxygenator WEB Thoraflex Hybrid NX (MicroVention) (Vascutek) (CV) New aneurysm embolization A hybrid device combining a
Slide 17: Optimize R&D and Production Site
Optimize R&D and Production Site Strengthen operational capability and infrastructure Define roles for each factory as R&D driven, mass production, and category focused to achieve stable supply and cost competitiveness California R&D and production for Neurovascular Ashitaka R&D for peripheral inter
Slide 18: Establish the Platform to Accelerate the Growth
Establish the Platform to Accelerate the Growth Strengthen operational capability and infrastructure Pursue strategic Strengthen Organizational investment Capabilities R&D: 130+ B JPY Strengthen HQ • Invest in intervention products • Strengthen a TIS global HQ function development in US • Develop cl
Slide 19: Establish World Class Quality
Establish World Class Quality Strengthen operational capability and infrastructure • Quality of Products • Quality of QMS Product • Quality for patients • Usability for customers • Stability in supply Establish Supply • Size Variation • Speed to launch new products Quality Brand • Clinical support S
Slide 20: Product Pipeline
Product Pipeline Long Term Pipeline Mid-term Long-term New products contributing to FY17 to FY19 Beyond growth beyond FY20 2020 • New Ultimaster • Next generation DES • New PTCA Balloon • New imaging system TIS • PTCA Balloon for US market • New closure device • Radioembolic beads • Renal denervatio
Slide 21: Sales and Operating Income Targets toward FY21
Sales and Operating Income Targets toward FY21 Sales Operating Income* Revenue growth to lead Profit growth faster than Terumo group revenue growth Near double-digit Double digits growth growth Maintain 25%+ adjusted operating margin* Plan FX rate: USD=105 JPY, EUR=115 JPY *Adjusted operating income
Slide 22: Growth Drivers
Growth Drivers Neurovascular, Peripheral and IO lead the growth, and CV and Vascular improve their profitability FY15 Growth rate Revenue (FY15-21) Neurovascular TIS- Peripheral, IO Vascular TIS- Cardiology CV TIS- Access © Terumo Corporation Dec 12, 2016 21/22
Slide 23: Beyond FY21: Mastery in Intervention
Beyond FY21 Mastery in Integrated solution Stroke Diversify （Leveraging TRI） Heart Failure Artery-to-Vein therapeutic Intervention AF technologies Expand US Mastery in Achieve dominant Establish multi- infrastructure Global presence in site R&D and Globalization and product emerging markets producti
Slide 24: © Terumo Corporation
~“TERUMO © Terumo Corporation
Slide 25: 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