Terumo Corporation · TSE:4543
Terumo — Q3 FYE Mar 2009 Earnings Presentation
23 slides from Terumo's earnings presentation, Jan 29, 2009
Slide 1: 3rd Quarter Financial Results for FYE/Mar 2009
3rd Quarter Financial Results for FYE/Mar 2009 Terumo Corporation 29, January 2009 -1-
Slide 2: Financial Results
Financial Results (Unit: Billion yen) Rate of Q3 Total FYE/Mar. 2008 Q3 Total FYE/Mar. 2009 change Net Sales 231.4 231.5 0% Gross profit (%) 127.5 (55.1%) 123.4 (53.3%) -3% S.G.A Expenses (%) 75.1 (32.4%) 77.9 (33.6%) 4% Operating Income (%) 52.4 (22.7%) 45.5 (19.7%) -13% Ordinary Income (%) 52.9 (2
Slide 3: Net Sales (by Region)
Net Sales (by Region) Double-digit growth continuing, excluding impact of foreign exchange (Unit: Billion yen) + 1% Outside Japan total Q3 Total Q3 Total +1.0 -1% FYE Mar. FYE Mar. 2008 2009 (+ 12% excluding impact of foreign exchange) Ratio of sales outside Japan to total sales 47%Æ46% 123.2 124.2
Slide 4: Net Sales (by Product Group)
Net Sales (by Product Group) Cardiac & Vascular and Blood transfusion products enjoyed growth (Unit: Billion yen) -2% +3% Q3 Total Q3 Total (0%) ( + 12 % ) FYE Mar. 2008 FYE Mar. 2009 ‐ 2.4 () :Excluding the impact of + 2.4 foreign exchange +5% - 15 % ( + 12 % ) ( - 14 %) 113.1 96.2 + 0.8 115.5 93.8
Slide 5: S.G.A Expenses
S.G.A Expenses Strengthening sales, management and development, with an increase in depreciation of goodwill (Unit: Billion yen) + 2.8 S.G.A Expenses ratio 1.2 point increase 75.1 77.9 Q3 Total FYE Q3 Total FYE % Mar.2008 Mar.2009 Change 32.4 33.6 Personal 27.5 28.4 +0.9 3.4% % % Logistics 6.8 7.0 +
Slide 6: Q3 Total Net Sales & Operating Income Trends
Q3 Total Net Sales & Operating Income Trends (Unit: Billion yen) [Net Sales] [Operating Income] Foreign Exchange Half Year -9.2 +７％ Hepaflush Revised NHI price Q3 -9.4 Foreign Exchange Half Year -18.6 Hepaflush - 5.5 Revised NHI price Changing the accounting & Q3 tax system -5.3 231.5 -10.8 231.4 52
Slide 7: Forecast
Forecast (Unit: Billion yen) FYE/Mar 2009 FYE/Mar. 2009 FYE/Mar. 2009 Q3 Total Results Revised Fcst. Original Fcst. Net Sales 231.5 300.0 310.0 Operating Income (%) 45.5 (19.7%) 53.0 (17.7%) 62.0 (20.0%) Ordinary Income (%) 42.7 (18.5%) 48.5 (16.2%) 61.0 (19.7%) Net Income 28.7 32.5 40.0 1 US$ 103 y
Slide 8: Annual sales/operating income trends
Annual sales/operating income trends (Unit: Billion yen) [Net Sales] [Operating Income] Foreign Exchange Q3 Total +６％ Hepaflush - 18.6 Revised NHI price Q4 Foreign Exchange Q3 Total - 9.6 Hepaflush -10.8 - 28.2 Revised NHI price Changing the accounting & Q4 tax system - 6.9 - 17.7 306.4 300.0 66.9 5
Slide 9: Quarterly Changes
Quarterly Changes (Unit: Billion yen) FYE Mar. 2008 FYE Mar. 2009 100 80.6 74.9 77.8 79.2 74.5 68.5 80 60 40 18.9 14.5 16.2 15.2 14.1 20 7.5 0 Forecast Q3 Q4 Q1 Q2 Q3 Q4 Net Sales Operating Income -9-
Slide 10: Topics: Impact of the financial and economic crisis and our future response
Topics ◆Impact of the financial and economic crisis and our future response -10-
Slide 11: Overall Impact on Healthcare Market
Overall Impact on Healthcare Market ◆Private hospitals, distributors, insurance companies, and other businesses are ailing. ◆Higher unemployment rate → Increasing number of uninsured persons, especially in the U.S. ◆Temporary suspension of large-scale investments to construct and expand medical inst
Slide 12: Outside of Japan: Some Impact on Sales
Outside of Japan : Some Impact on Sales ・Postponement of purchase of infusion pumps ・Suspension of purchase and other ME equipment of large ME equipment Transfusion ・Inventory reduction at B2B companies General hospital Cardiac & Vascular -12-
Slide 13: Japan: Impact is Still Limited
Japan : Impact is Still Limited Consumer Healthcare ・Suspension of purchases Transfusion of ME equipment Cardiac & Vascular ・Group purchase General Hospital ・Networking Consolidations and grouping of hospitals to strengthen their financial will be accelerated, potentially having impact on our busine
Slide 14: Accelerating Projects for A Stronger Corporate Constitution
Accelerating Projects for A Stronger Corporate Constitution ◆Improvement of gross profit margins ・Review of investments ・Direct marketing ・Increase of production outside of Japan and local procurement ・Decrease the number of product items ・Continuous sales price increase ◆ More efficient S.G.A. cont
Slide 15: Healthcare Demand Still Strong and Unchanged
Healthcare Demand Still Strong and Unchanged ◆Stronger need for improved economic efficiency ◆Maintaining basic structure of growth strategy Minimally Invasive Infection Control Safety Healthcare Economy Better Efficiency -15-
Slide 16: Economic Effect on Minimally Invasive Therapy
Economic Effect on Minimally Invasive Therapy Hospital Hospital Cost reduction Medical device Patients Cost reduction stays Conventional stays per patient per year /treatment treatment per year (days) (days) (%) (billion yen) Coronary artery PTCA catheter 5 bypass graft 30 2,266,000 yen 86,000 194.8
Slide 17: Economic Effects by Infection Control
Economic Effects by Infection Control ◆About 1.1 billion yen excess medical costs spent at big hospitals in Japan (1,000 beds) due to the complications of infections. Among them, 30% can be prevented through reinforcement of countermeasures. Excess costs Number of cases Excess costs per case per yea
Slide 18: Strategic Initiative: Product Lineup Expansion in 3Q
Strategic Initiative : Product Lineup Expansion in 3Q ◆ Improved lineup of minimally invasive therapy products ‐ PTCA balloon catheter, "Hiryu": sales areas expanded to Europe and Asia ‐ Improved lineup of delivery systems for neuro intervention coils ◆Expansion of products contributing to safety an
Slide 19: Summary
Summary ◆Considering the economic crisis as an opportunity, strengthen company constitution ◆Planning next fiscal year while grasping market trends •Needs for the healthcare economy getting stronger •Further promoting the basic strategies of the mid-term plan -19-
Slide 20: Reference
Reference -20-
Slide 21: Third Quarter Operating income trend
Third Quarter Operating income trend (Unit: Billion yen) Half Year Q3 Q3 Total • Foreign Exchange - 1.2 - 3.2 - 4.4 • Revised NHI price - 2.0 - 1.2 - 3.2 • Hepaflush - 1.3 - 0.4 - 1.7 • Changing the accounting System - 1.0 - 0.5 - 1.5 • Total - 5.5 - 5.3 - 10.8 • Other Factor + 3.5 + 0.4 + 3.9 • Dif
Slide 22: Annual operating income trend
Annual operating income trend (Unit: Billion yen) Q3 Total Q4 Annual • Foreign Exchange - 4.4 - 2.8 - 7.2 • Revised NHI Price - 3.2 - 1.5 - 4.7 • Hepaflush - 1.7 - 0.3 - 2.0 • Output cut of production - - 1.8 - 1.8 • Changing the accounting System - 1.5 - 0.5 - 2.0 • Total - 10.8 - 6.9 - 17.7 • Othe
Slide 23: 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