Terumo Corporation · TSE:4543

Terumo — Q1 FY2017 Earnings Presentation

20 slides from Terumo's earnings presentation, Aug 3, 2017

  1. Slide 1: Financial Results for the First Quarter of Fiscal Year Ending March 31, 2018 (FY2017)

    Financial Results for the First Quarter of Fiscal Year Ending March 31, 2018 (FY2017) Terumo Corporation Managing Executive Officer, ff Investor Relations, Corporate Communication Dept. Kazuaki Kitabatake August 3, 3 2017

  2. Slide 2: Overseas Double Digit Sales Growth Drove Overall Growth Both in Sales and Profit

    Overseas Double Digit Sales Growth Drove Overall Growth Both in Sales and Profit (billion yen) FY16 Q1 FY17 Q1 YoY% YoY% (FXN) Net Sales 124.5 124 5 139.3 139 3 +12% +11% Gross Profit 69.2 (55.6%) 78.3 (56.2%) +13% +15% SG&A expenses 39.7 (31.9%) 46.4 (33.3%) +17% +15% R&D Expenses 8.1 ( 6.5%) 8.5 (

  3. Slide 3: Operating Income Variance Analysis

    Operating Income Variance Analysis (billion yen) 1.3 Impact of M&As made in FY16 3.1 Price / excl. amortization +1.4 O/P erosion i 3.5 Amortization* ‐ 2.6 Gross margin *Figures above is tentative improve‐ since PPA is still in process. ment by Increase of 0.3 cost SG&A Increase reduction, (Increase

  4. Slide 4: Net Sales by Region

    Net Sales by Region FY17 Q1 FY16 Q1 Net Sales Year‐on‐Year Sales Comparison 100% = 139.3BJPY billion yen YoY% Comments ( ) FXN Good momentum in Cardiac and Vascular 44.9 Company alleviated the negative growth in ‐1% General Hospital Company. However overall 32% Japan 45.5 sales ended up being slight

  5. Slide 5: Net Sales by Business Segment

    Net Sales by Business Segment FY17 Q1 FY16 Q1 Net Sales Year‐on‐Year Sales Comparison 100% = 139.3BJPY billion yen YoY% Comments ( ) FXN A ggreat start for the acquired q products, p , +24% as well as solid organic growth made Cardiac 79.1 (+22%) all businesses achieve double digit 57% and growth. 6

  6. Slide 6: Cardiac and Vascular: All Businesses Made Double Digit Growth

    Cardiac and : All Businesses Made Double Digit Growth, Achieving Vascular Increase Both in Sales and Profit (billion yen) FY16 Q1 FY17 Q1 YoY% Major Topics Impact ( ) FXN 79.1 Impact of FX +1.1 63 7 63.7 TIS: Continuous good momentum in access +24% devices +1.3 Sales (+22%) Neurovascular: Hydrogel y

  7. Slide 7: General Hospital: Continuous Improving Trend in Profitability

    General Hospital : Continuous Improving Trend in Profitability (billion yen) FY16 Q1 FY17 Q1 YoY% Major Topics Impact ( ) FXN Impact of FX +0.2 General hospital products: Inventory adjustment at distributors, as well as ‐4% conservative buying of pumps ‐ 0.6 38.4 36.9 Pharmaceutical and nutrition: E

  8. Slide 8: Blood Management: Returned to Growth Trajectory

    Blood : Returned to Growth Trajectory w/ Continuous Management Improving Trend in Profitability (billion yen) FY16 Q1 FY17 Q1 YoY% Major Topics Impact ( ) FXN Impact of FX +0.2 22.4 23.3 +4% Sales (+3%) Blood center business: Made double digit ggrowth in Asia and Latin Americas +0.6 Therapeutic Aphe

  9. Slide 9: Major Topics in FY17 Q1

    Major Topics in FY17 Q1 New management team is in place to accelerate the Corporate execution of Mid‐to Long‐term Growth Strategy Announced the completion of Acquisition of Bolton Medical for TAA and AAA stent grafts (Apr) Established “TIS Mastery Center” at Ashitaka factory Business to further p

  10. Slide 10: New Products Pipeline in FY17

    New Products Pipeline in FY17 Category Products Region Category Products Region Heart lung machine Coronary PTCA balloon US ◎ Launched (Re launch) (Re‐launch) CV JP, US & Stent (TRI) ★ Next generation of oxygenator ◎ Global EU JP,, US & PTA balloon b ll (TRI) ★ General V i l infusion Vertical i f i

  11. Slide 11: Reference

    Reference “FERUMO 11/19

  12. Slide 12: FY17 Q1 Net Sales and Growth by Region

    FY17 Q1 Net Sales and Growth by Region (billion yen) Business Outside of Japan Japan p G. Total S Segmentt Subtotal Europe Americas China Asia Cardiac and 13.5 65.6 20.1 29.1 8.5 7.9 79.1 Vascular (+5%) (+27%) (+20%) (+32%) (+26%) (+27%) (+22%) Out of C&V 10.3 53.3 16.1 22.6 7.9 6.7 63.5 Interventio

  13. Slide 13: Operating Expenses

    Operating Expenses ( (billion yen)) FY16 Q1 FY17 Q1 YoY YoY% YoY% (FXN) Salaries & Wages 17.9 20.3 +2.4 +13% +12% Sales Promotion 3.8 4.1 +0.3 +7% +7% Logistical Costs 2.8 3.0 +0.2 +7% +7% Depreciation & 62 6.2 91 9.1 +2.9 29 +48% 48% +45% 45% Amortization Others 9.0 9.9 +0.9 +9% +8% SG&A Expenses T

  14. Slide 14: Quarterly Results

    Quarterly Results ( (billion yen)) FY16 Q1 Q2 Q3 Q4 FY17 Q1 ((Apr‐Jun) p ) ((Jul‐Sep) p) ((Oct‐Dec)) ((Jan‐Mar)) ((Apr‐Jun) p ) Net Sales 124.5 120.6 129.3 139.8 139.3 G Gross P Profit fit 69 2 69.2 65 8 65.8 68 7 68.7 74 3 74.3 78 3 78.3 (55.6%) (54.6%) (53.2%) (53.2%) (56.2%) SG&A Expenses 39.7 39

  15. Slide 15: CAPEX and R&D Expenses

    CAPEX and R&D Expenses (billion yen) Amortization  Expand investment in 56.0 of Intangibles production capacity aand d Goodwill Good 45 4 45.4 46 5 46.5 and space as well as 44 7 44.7 41.4 40.7 39.1 IT infrastructure in 31.5 FY17 28.5 17 7 17.7 20 2 20.2 20 8 20.8 CAPEX 13.8  Amortization of 8.9 7

  16. Slide 16: Cash Flow

    Cash Flow Operating CF Investment and Finance CF (billion yen) +15.6 +3.1 8.1 13.8 Corporate Finance Tax Depreci‐ 13.5 ation and 77 7.7 amorti‐ 0.2 zation Increase of Repayment Dividends Others 23.4 8.9 for short‐ working capital term debt 139 9 139.9 CAPEX Income 124.1 before 105.4 tax 120.0 Cash a

  17. Slide 17: FY17 Foreign Exchange Sensitivity

    FY17 Foreign Exchange Sensitivity (billion yen) USD EUR CNY Excl. Incl. Amortization Amortization Net Sales 1.6 1.6 0.8 1.8 Operating Income 0.0 ‐0.2 0.5 0.9 <Reference> Impact of +/‐10% fluctuation North Latin EMEA Asia America America EUR Others CNY Others Operating p g ‐1.8 18 08 0.8 56 5.6 10 1.

  18. Slide 18: (Reference) IFRS Basis

    (Reference) IFRS Basis  Adopting International Financial Reporting Standards (IFRS) from the year‐ end financial announcement for FY17  Schedule for disclosure FY17 Q1‐Q3 : Japanese GAAP FY17 yyear‐end financial announcement : IFRS Reference Japanese GAAP IFRS (billion yen) Impact FY17 Q1 FY17 Q1

  19. Slide 19: 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

  20. Slide 20: © Terumo Corporation

    ~“TERUMO © Terumo Corporation

Terumo — Q1 FY2017 Earnings Presentation on 6ix