Terumo Corporation · TSE:4543
Terumo — Q1 FY2014 Earnings Presentation
23 slides from Terumo's earnings presentation, Aug 6, 2014
Slide 1: Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2015
Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2015 (FY2014) Terumo Corporation August 6, 2014
Slide 2: Highlights in Q1
Highlights in Q1 Secured increase both in sales and profit while absorbing reimbursement price cut in Japan Corporate Increased operating income by 21%. Even without FX, increased at double digit Expanded overseas sales centering on interventional systems despite Cardiac & declined domestic sa
Slide 3: Increase in Sales and Profit: Operating Income Up by 21%
Increase in Sales and Profit: Operating Income Up by 21% (Billion yen) YoY% Q1 FY2013 Q1 FY2014 YoY% (Excl. FX) Net Sales 111.1 114.9 +3% +1% Gross Profit 57.0 (51.3%) 60.7 (52.8%) +7% +2% SG&A Expenses 36.1 (32.4%) 37.9 (33.0%) +5% R&D Expenses 7.6 (6.9%) 6.7 (5.8%) -12% Operating Income 13.3 (12.0
Slide 4: Operating Income Variance Analysis
Operating Income Variance Analysis (Billion yen) 0.3 SG&A 2.0 1.4 and R&D Plant productivity JP reimbursement -1.2 1.9 and cost Price erosion -0.8 down JP G/P reimbursement 1.2 increment and price FX by sales erosion 16.1 increase 13.3 Q1 Q1 FY2013 FY2014 2014/8/6 ©Terumo Corporation 4/23
Slide 5: Net Sales by Region
Net Sales by Region (Billion yen) Consolidated: +3% (+1%) Q1 Q1 FY2013 FY2014 ( ) Excluding Foreign Exchange Japan Outside of Japan -5% +9% Europe +14% 26.0 (+5%) (+5%) 22.9 Americas +7% 28.4 (+4%) 26.5 43.4 -3% 5.2 38% China 1,890 (-5%) 5.3 71.5 62% Asia & +11% 11.9 Others (+10%) 10.7 2014/8/6 ©Ter
Slide 6: Net Sales by Business Segment
Net Sales by Business Segment (Billion yen) +9% -4% Q1 Q1 (+5%) (-4%) FY2013 FY2014 ( ) Excluding Foreign Exchange +4% (+1%) 50.1 54.5 39.4 38.0 21.5 22.4 Cardiac & General Blood Vascular Hospital Management 2014/8/6 ©Terumo Corporation 6/23
Slide 7: Operating Profit by Business Segment
Operating Profit by Business Segment (Billion yen) YoY% Q1 FY2013 Q1 FY2014 YoY% (Excl. FX) Cardiac & 9.3 (19%) 11.4 (21%) +23% +8% Vascular Segment General 4.8 (12%) 4.6 (12%) -4% -2% O/P Hospital Blood 4.1 (19%) 4.2 (19%) +3% +1% Management Others* -0.8 0.0 - - Operating Income 17.3 (16%) 20.2 (18
Slide 8: Cardiac & Vascular: Increase in Sales and Profit
Cardiac & Vascular: Increase in Sales and Profit (Billion yen) YoY% Q1 FY2013 Q1 FY2014 YoY% (Excl. FX) Sales 50.1 54.5 +9% +5% Segment O/P 9.3 11.4 +23% +8% (%) (19%) (21%) Increase in overseas sales of Interventional Systems +2.8 BJPY Neurovascular Intervention: new products (stent and balloon
Slide 9: General Hospital: Maintained Profitability Despite Declined Sales
General Hospital: Maintained Profitability Despite Declined Sales (Billion yen) YoY% Q1 FY2013 Q1 FY2014 YoY% (Excl. FX) Sales 39.4 38.0 -4% -4% Segment O/P 4.8 4.6 -4% -2% (%) (12%) (12%) Recoil reduction in demand following the consumption tax increase in Japan (pump, glucose monitoring, etc.) -
Slide 10: Blood Management: Sustained Increase in Sales and Profit
Blood Management : Sustained Increase in Sales and Profit (Billion yen) YoY% Q1 FY2013 Q1 FY2014 YoY% (Excl. FX) Sales 21.5 22.4 +4% +1% Segment O/P 4.1 4.2 +3% +1% (%) (19%) (19%) Market price erosion -0.2 BJPY Delay in order receipt from a domestic customer, due to its IT system change -0.2 BJ
Slide 11: Progress in Q1 New Product Pipeline
Progress in Q1 New Product Pipeline Business Product Region New DES (Ultimaster) New DES EU Coronary (developed in house) (as planned) Central Central implantable JP implantable Peripheral venous access system (as planned) venous access system (DewX S type) Renal sympathetic Asia & Latin A denervati
Slide 12: New Product Pipeline from Q2 to Q4
New Product Pipeline from Q2 to Q4 Business Product Region Balloon (above the knee) US Peripheral Balloon (below the knee) JP, EU Stent (below the knee) EU Coil assist stent US Neuro Carotid stent EU Coil assist stent Coronary New PTCA balloon EU (LVIS) Automated blood component collection system (p
Slide 13: Reference
Reference @TERUMO
Slide 14: Q1 Net Sales and Growth by Region
Q1 Net Sales and Growth by Region (Billion yen) Outside Business Japan of Japan Asia & G. Total Segment Europe Americas China Total Others Cardiac & 11.8 42.8 16.4 17.4 4.2 4.8 54.5 Vascular (-3%) (7%) (6%) (9%) (-4%) (14%) (5%) Out of C&V 9.1 31.7 12.9 11.2 3.9 3.7 40.8 Interventional Systems* (-4%
Slide 15: SG&A Expenses
SG&A Expenses (Billion yen) Q1 FY2013 Q1 FY2014 YoY YoY% Salaries & Wages 15.4 16.9 +1.5 +10% Sales Promotion 3.7 3.7 +0.0 +1% Logistical Costs 2.7 2.7 +0.0 +1% Depreciation & Amortization 5.3 5.9 +0.6 +11% Others 9.0 8.7 -0.3 -3% General Administrative Total 36.1 (32.4%) 37.9 (33.0%) +1.8 +5% R&D E
Slide 16: SG&A Expenses
SG&A Expenses (Billion yen) Q1 FY2013* Q1 FY2014 YoY YoY% General Administrative 37.1 37.9 +0.8 +2% Total R&D Expenses 7.8 6.7 -1.1 -14% SG&A Expenses 44.8 44.6 -0.3 -1% Total * Value adjusted by excluding FX impact 2014/8/6 ©Terumo Corporation 16/23
Slide 17: Quarterly Results
Quarterly Results (Billion yen) Q1 FY13 Q2 Q3 Q4 Q1 FY14 (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Mar) (Apr-Jun) Net Sales 111.1 114.9 119.2 122.1 114.9 Gross 57.0 60.1 61.5 63.3 60.7 Profit (51.3%) (52.3%) (51.6%) (51.9%) (52.8%) SG&A 43.7 43.0 43.7 46.3 44.6 Expenses (39.3%) (37.4%) (36.7%) (37.9%) (38.
Slide 18: Profit Ratio, SG&A Expenses Ratio
Profit Ratio, SG&A Expenses Ratio (%) 52.3 51.9 52.8 Gross 51.3 51.6 Margin SG&A 39.3 37.9 38.8 Expenses 37.4 36.7 Ratio 14.9 14.9 14.0 14.0 12.0 Operating Margin Q1 Q2 Q3 Q4 Q1 FY13 FY14 2014/8/6 ©Terumo Corporation 18/23
Slide 19: CAPEX, R&D Expenses
CAPEX, R&D Expenses (Billion yen) FY2014 Q1 Progress to Guidance Result guidance CAPEX 42.0 9.2 22% Depreciation & Amortization 41.0 9.7 24% R&D Expenses 31.0 6.7 22% Depreciation & Amortization: Including intangibles CAPEX: Acquisition basis 2014/8/6 ©Terumo Corporation 19/23
Slide 20: Cash Flow
Cash Flow Large impact of corporate tax payment in Q1 Operating CF Investing and Financing CF (Billion yen) -0.5 -10.1 9.7 Depreci- 18.7 ation & Amorti- 13.8 zation Corpo- rate tax 5.3 and Increase Income others 9.2 in 5.5 before working 6.8 tax capital Dividend 2.2 CAPEX Debt Others and finance 95.
Slide 21: Foreign Exchange Sensitivity
Foreign Exchange Sensitivity (Billion yen/year) USD EUR Net Sales 1.8 0.7 Operating Income 0.3 0.4 2014/8/6 ©Terumo Corporation 21/23
Slide 22: Quarterly Average Exchange Rates Trend
Quarterly Average Exchange Rates Trend JPY 140 140 EUR (FY2014) 141 137 131 EUR (FY2013) 129 120 102 USD (FY2014) 100 103 99 99 100 USD (FY2013) 80 Ｑ１ Ｑ２ Ｑ３ Ｑ４ 2014/8/6 ©Terumo Corporation 22/23
Slide 23: IR Contact
IR Contact Terumo Corporation Corporate Communication (IR) Dept. E-mail: kouhou_terumo01@terumo.co.jp Among the information that Terumo discloses, the forward-looking statements including financial projections are based upon our assumptions using information available to us at the time and are not i