Olympus Corp. · TSE:7733
Olympus — Olympus Corp Ord — Q1 2024 Earnings Presentation
23 slides from Olympus's earnings presentation, Aug 9, 2023
Slide 1: Consolidated Financial Results for the 1st Quarter and Full-year Forecasts for Fiscal 2024
Consolidated Financial Results for the 1st Quarter and Full-year Forecasts for Fiscal 2024 Olympus Corporation | Executive Officer and CFO, Chikashi Takeda | August 9, 2023
Slide 2: Disclaimer
Disclaimer This material contains forward-looking statements that reflect management’s current views, plans, and expectations based on information available at the time of preparation. These forward-looking statements are not guarantees of future performance and involve known and unknown risks, un
Slide 3: Highlights
Highlights – 1Q Consolidated Financial Results Revenue growth was mainly driven by China, which recovered from Shanghai lockdown and other factors, and APAC, which grew in all segments. By product, EVIS X1, etc. contributed. Profit decreased due to investments for sustainable growth and strengthenin
Slide 4: Consolidated Financial Results and Business Review for the 1Q of Fiscal 2024
Consolidated Financial Results and 01 Business Review for the 1Q of Fiscal 2024 (FY Ending March 31, 2024)
Slide 5: 1Q of Fiscal 2024 (1) Consolidated Financial Results
1Q of Fiscal 2024 (1) Consolidated Financial Results 1 Revenue: 8% consolidated growth (up 4% after FX adjustment). Record high for Medical business in 1Q. High-single-digit growth for both ESD and TSD 2 Adjusted operating profit: Decreased due to an increase in personnel expenses for future growth
Slide 6: 1Q of Fiscal 2024 (2) Endoscopic Solutions Division (ESD)
1Q of Fiscal 2024 (2) Endoscopic Solutions Division (ESD) FY2023 FY2024 35%* 55%* (Billions of yen) 1Q 1Q Revenue 116.9 127.1 ¥127.1 Operating profit Other income and expenses 24.8 -1.2 22.2 -3.4 billion Adjusted operating profit 26.0 25.6 Revenue Operating margin (After FX adjustment) 21.3% 17.4% (
Slide 7: 1Q of Fiscal 2024 (3) Therapeutic Solutions Division (TSD)
1Q of Fiscal 2024 (3) Therapeutic Solutions Division (TSD) FY2023 FY2024 20%* 30%* (Billions of yen) 1Q 1Q Revenue 72.4 77.2 ¥77.2 Operating profit Other income and expenses 13.4 -0.2 9.7 -1.9 billion Adjusted operating profit 13.6 11.6 Revenue 15%* Operating margin (After FX adjustment) 18.5% 12.5%
Slide 8: Statement of Financial Position
Statement of Financial Position Balance sheet increased by approx. ¥105.7 billion in real terms, excluding FX impact of approx. ¥74.3 billion, due mainly to an increase in cash and retained earnings from transfer of Evident Assets held for sale and liabilities directly associated with assets held fo
Slide 9: Consolidated Cash Flows
Consolidated Cash Flows FCF: Despite a decrease in operating CF due mainly to corporate tax payment related to gain on transfer of Evident, FCF increased significantly due to receipt of consideration for transfer of Evident. Adjusted FCF was minus ¥10.3 billion yen Financing CF: Minus ¥25.9 billion
Slide 10: Forecasts for Fiscal 2024
02 Forecasts for Fiscal 2024
Slide 11: Fiscal 2024 Consolidated Forecasts
Fiscal 2024 Consolidated Forecasts Initial forecasts remain unchanged 1 Revenue: Expected to achieve ¥914 billion, up 4% YoY (up 5% after FX adjustment) 2 Adjusted Operating profit: Expected to achieve ¥182 billion, up 3% YoY (up 6% after FX adjustment), with an adjusted operating profit margin of a
Slide 12: Fiscal 2024 Forecasts by Business Segment
Fiscal 2024 Forecasts by Business Segment Initial forecasts remain unchanged 1 Medical: Revenue expected to reach a record high. Launch of EVIS X1 in the U.S. is scheduled for middle of FY2024 2 Discontinued Operation: Expected to achieve a significant profit increase due to a gain on transfer (Bill
Slide 13: Management View
Management View Steady progress made in corrective actions for FDA findings, while engaging in a constructive dialogue with FDA Launched a company-wide quality transformation program Initial forecasts remain unchanged as we still aim at achieving the budget and have taken appropriate actions, despit
Slide 14: OLYMPUS
OLYMPUS
Slide 15: Appendix
OLYMPUS —— Appendix
Slide 16: Changes in Reporting Structure
Changes in Reporting Structure With completion of divestiture of Scientific Solutions Business (Evident) in FY2024 1Q, it is disclosed as a discontinued operation from FY2023 2Q to FY2024 (based on IFRS) FY2022 Apr. 2022 - Mar. 2024 ESD ESD TSD Continuing TSD Operations SSD Others Others Discontinue
Slide 17: 1Q of Fiscal 2024 Factors that Affected Consolidated Operating Profit
1Q of Fiscal 2024 Factors that Affected Consolidated Operating Profit 1Q (Apr. to Jun.) (Billions of yen) Change in Other Change in cost of sales -20.5 sales -2.1 +4.6 Change in Foreign exchange Impact of Sales increased, effects of elimination SG&A foreign centered on ESD of unrealized profit, ex
Slide 18: 1Q of Fiscal 2024 Results by Segment
1Q of Fiscal 2024 Results by Segment 1Q (Apr. to Jun.) (Billions of yen) FY2023 FY2024 YoY After FX adjustment Revenue 116.9 127.1 +9% +5% ESD Operating profit 24.8 22.2 -11% -24% Revenue 72.4 77.2 +7% +2% TSD Operating profit 13.4 9.7 -28% -37% Revenue 3.0 3.4 +13% +9% Others Operating profit(loss)
Slide 19: Factors that Affected Consolidated Cash Flows
Factors that Affected Consolidated Cash Flows FCF +373.9（Adjusted FCF* -10.3） Operating CF -53.1 Investing CF +427.0 Corporate tax payments -83.5 Payment of Others in Financing CF Impact of corporate tax on Investing CF -25.9 foreign income for FY2023 Scheduled Receipt of +38.2 exchange consider
Slide 20: Key Product Catalysts: Endoscopic Solutions Division (As of Aug. 9, 2023)
Key Product Catalysts: Endoscopic Solutions Division (As of Aug. 9, 2023) ESD Key priorities for FY2024 Accelerate EVIS X1 sales growth in Europe, Japan and Asia Pacific Aim to launch EVIS X1 in the US in middle of FY2024 and prepare for launch in China Launch next generation EUS system in Eur
Slide 21: Key Product Catalysts: Therapeutic Solutions Division (As of Aug. 9, 2023)
Key Product Catalysts: Therapeutic Solutions Division (As of Aug. 9, 2023) TSD Key priorities for FY2024 GI EndoTherapy Expand clinically differentiated product offerings in key areas of focus: ERCP, ESD, Luminal Patency and Hemostasis devices Urology Expand leadership in BPH through iTind marke
Slide 22: Expenditures, etc.
Expenditures, etc. 1Q Results and Forecasts (Billions of yen) FY2023 1Q FY2024 1Q FY2024 (Forecasts) (Billions of yen) FY2023 FY2024 83.0 R&D expenditures* (a) 17.0 15.4 Capitalization of R&D 68.0 expenditures (b) 1.7 2.7 62.0 R&D expenses in P/L (a-b) 15.3 12.7 (Billions of yen) FY2023 FY2024 Amort
Slide 23: Foreign Exchange and Sensitivity
Foreign Exchange and Sensitivity As a general rule, we use average value for latest month as exchange rates for full-year forecasts Foreign exchange rate (Yen) FY2023 1Q FY2024 1Q FY2024 Forecasts Yen/U.S. dollar 129.57 137.37 132 Yen/Euro 138.12 149.47 144 Yen/CNY 19.58 19.56 19 Forex sensitivity (