Terumo Corporation · TSE:4543
Terumo — Q3 FY2021 Earnings Presentation
25 slides from Terumo's earnings presentation, Feb 9, 2022
Slide 1: Financial Results for the Third Quarter of Fiscal Year Ending March 31, 2022 (FY2021)
Financial Results for the Third Quarter of Fiscal Year Ending March 31, 2022 (FY2021) February 9, 2022 Naoki Muto Chief Accounting and Financial Officer Terumo Corporation
Slide 2: Safe Harbor for Forward-Looking Statements and Use of Document
Safe Harbor for Forward-Looking Statements and Use of Document 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 intended to be guarantees of future even
Slide 3: Highlights
Highlights FY21 Q3/Q3 YTD results Revenue: Highest-ever quarterly and Q3 YTD revenue. Continued recovery of demand in Cardiac & Vascular, steady performance in other companies Adjusted Operating Profit: Over 20% profit increase in Q3 YTD, despite the negative effects anticipated at the beginning of
Slide 4: P&L Results
P&L Results Revenue: Highest-ever quarterly and Q3 YTD revenue. Cardiac & Vascular demand recovery continued, especially in TIS. In Q3, despite normalized demand of thermometers and infection prevention products, disposable products demand further recovered and performance remained steady overall Ad
Slide 5: Adjusted Operating Profit Variance Analysis (Q3 YTD)
Adjusted Operating Profit Variance Analysis (Q3 YTD) (100 M JPY) G/P increment by sales increase: The revenue increased in all companies, Gross particularly Cardiac & Vascular, compared margin with FY20 Q3 YTD impacted by COVID-19 Price -27 Gross margin: JP NHI Negative effects of cost inflation (fr
Slide 6: Adjusted Operating Profit Variance Analysis (Q3)
Adjusted Operating Profit Variance Analysis (Q3) (100 M JPY) G/P increment by sales increase: Improved recovery level from COVID-19 and sales increase driven by Cardiac & Vascular Gross margin: Gross Decrease due to effects of cost inflation margin (freight, raw material, and labor cost), Price and
Slide 7: Revenue by Region
Revenue by Region FY21 FY21 Q3 YTD Comments (C&V: Cardiac & Vascular, Revenue (100 M JPY) Q3 YTD YoY% GH: General Hospital, TBCT: Blood & Cell Technologies) Regional Q3 YTD Q3 () FXN Continued strength in GH driven by Alliance and General hospital breakdown FY19 1,478 519 products. Continued growth
Slide 8: C&V: Continued recovery of number of procedures in US and EU, and of sales
Continued recovery of number of procedures in US and EU, and of sales growth in all businesses. C&V: Negative effects on Q3 profit were mitigated by strong sales and positive FX impact (100 M JPY) Q3 YTD Q3 YTD Q3 Comments Rev. YoY () FXN TIS: Continued recovery outside Japan, centered in US and EU.
Slide 9: GH: Pumps and disposables drove General hospital products
Pumps and disposables drove General hospital products. Although multiple negative factors GH: impacted profit, secured guidance level margin in YTD (100 M JPY) Q3 YTD Q3 YTD Q3 Comments Rev. YoY () FXN General hospital products: Demand recovery in disposables in Asia 1,387 and Japan, and COVID-19 pu
Slide 10: TBCT: Continued demand recovery of whole blood collection
Continued demand recovery of whole blood collection. Although negative impacts TBCT: on profit grew in Q3, profitability improvement continued in YTD (100 M JPY) Q3 YTD Q3 YTD Q3 Comments Rev. YoY () FXN 902 Blood center solutions: Continued recovery of whole blood collection 787 810 in US and EU. C
Slide 11: Upward Revision of FY21 Guidance
Upward Revision of FY21 Guidance (100 M JPY) Change in Original Guidance Revised Guidance amount Revenue 6,850 6,970 +120 Operating Profit 1,200 1,200 - (%) (17.5%) (17.2%) Adjusted Operating Profit 1,370 1,370 - (%) (20.0%) (19.7%) Profit for the Year 920 920 - Exchange Rate (USD/EUR) 108 JPY/129 J
Slide 12: Major Topics
Major Topics • Announced five-year growth strategy “GS26” Corporate • Established “Terumo Group Sustainability Policy” and revised the Sustainability Priorities Drug-eluting coronary stent “Ultimaster Nagomi” • Launched drug-eluting coronary stent "Ultimaster Nagomi" in Japan Cardiac & • Received th
Slide 13: Reference
Reference ©TERUMO CORPORATION 13 / 24
Slide 14: FY21 New Product Pipeline
FY21 New Product Pipeline Category Products Region Launch Category Products Region Launch Coronary Drug-eluting stent JP Launched Infusion pump JP General Biodegradable drug-eluting EU hospital Small size syringe pump JP Launched microsphere products Oncology Peripheral embolization coil JP Launched
Slide 15: Revenue by Segment and Region
Revenue by Segment and Region 2021年度 第3四半期 セグメント別売上収益 Revenue by Segment for the Third Quarter of FY2021 （百万円 / millions of yen) Q3 YTD Q3 YTD FY2020 FY2021 アジア他 アジア他 日本 海外 欧州 米州 中国 合計 日本 海外 欧州 米州 中国 合計 構成比 Asia and %YoY %YoY %YoY %YoY %YoY Asia and %YoY %YoY JPN Overseas Europe Americas China WW JP
Slide 16: Quarterly Trend of Revenue and Operating Profit
Quarterly Trend of Revenue and Operating Profit Revenue: Increase by +8% YoY. Against FY19 Q3, +10% growth overall, driven by C&V increased by +10% with positive impact of FX such as EUR Operating Profit: Although the negative GP impact from cost inflation and lower production level in addition to V
Slide 17: P&L (Quarterly Results)
P&L (Quarterly Results) (100 M JPY) FY20 Q3 Q4 FY21 Q1 Q2 Q3 (Oct-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) Revenue 1,653 1,652 1,717 1,729 1,788 Gross Profit 908 (54.9%) 854 (51.7%) 943 (54.9%) 920 (53.2%) 926 (51.8%) SG&A Expenses 447 (27.1%) 488 (29.5%) 465 (27.1%) 490 (28.4%) 507 (28.4%) R&D
Slide 18: Operating Expenses (Quarterly Results)
Operating Expenses (Quarterly Results) (100 M JPY) FY20 Q3 Q4 FY21 Q1 Q2 Q3 (Oct-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) Salaries & Wages 231 240 249 249 255 Sales Promotion 35 43 30 40 44 Logistical Costs 38 37 38 39 39 Depreciation & Amortization 47 49 48 50 51 Others 97 119 99 112 118 SG&A E
Slide 19: Operating Expenses (YTD and Quarterly Results)
Operating Expenses (YTD and Quarterly Results) (100 M JPY) FY20 Q3 FY21 Q3 YoY% YoY YoY% FY20 Q3 FY21 Q3 YoY YoY% YTD YTD (FXN) Salaries & Wages 687 753 66 10% 5% 231 255 24 10% Sales Promotion 86 114 29 34% 30% 35 44 10 28% Logistical Costs 106 117 10 9% 6% 38 39 2 4% Depreciation & Amortization 14
Slide 20: Adjusted Operating Profit: Adjustments
Adjusted Operating Profit: Adjustments (100 M JPY) FY20 Q3 YTD FY21 Q3 YTD FY20 Q3 FY21 Q3 Operating Profit 753 945 334 286 Adjustment 1. Amortization of acquired intangible assets 108 118 37 39 Adjustment 2. Non-recurring profit or loss 24 9 1 5 Adjusted Operating Profit 885 1,072 372 330 <General
Slide 21: CAPEX, Depreciation and R&D Expenses
CAPEX, Depreciation and R&D Expenses (100 M JPY) FY21 Q3 FY21 FY18 FY19 FY20 YTD Guidance CAPEX 608 895 772 492 770 Depreciation 440 477 484 390 530 Amortization of acquired intangible assets 146 157 150 108 155 Others 294 320 334 282 375 CAPEX = C.i.P. record basis, lease depreciation (IFRS16) is n
Slide 22: Cash Flows (Q3 YTD)
Cash Flows (Q3 YTD) (100 M JPY) Operating CF Investing & Financing CF +984 -942 275 433 Income 105 Depreciation taxes Working and capital 492 amortization 930 CAPEX 108 Debt 234 repayment Dividends 109 & Profit redemption Others before tax of bonds 2,049 2,008 Cash at CAPEX = C.i.P. record basis Cas
Slide 23: Cash Flows (Q3)
Cash Flows (Q3) (100 M JPY) Operating CF Investing & Financing CF +316 -296 107 4 149 Income Working 168 Depreciation 3 taxes capital 278 and amortization CAPEX Debt 121 5 repayment Profit Dividends Others before tax 2,049 2,029 Cash at CAPEX = C.i.P. record basis Cash at the end of Cash at the end
Slide 24: Foreign Exchange Sensitivity
Foreign Exchange Sensitivity Annual impact of 1 JPY depreciation (100 M JPY) USD EUR CNY Revenue 17 8 35 Adjusted Operating Profit 0 5 15 <Reference> Impact when JPY is depreciated by 10% North Latin EMEA Asia America America EUR Others CNY Others Adjusted Operating Profit -1 10 65 13 23 36 ©TERUMO
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