Terumo Corporation · TSE:4543
Terumo — Q3 FYE March 2010 Earnings Presentation
23 slides from Terumo's earnings presentation, Jan 28, 2010
Slide 1: Third Quarter Financial Results for the Fiscal Year Ending March 31, 2010
Third Quarter Financial Results for the Fiscal Year Ending March 31, 2010 Terumo Corporation January 28, 2010 1
Slide 2: Financial Results
Financial Results (Unit: Billion yen) Q3 YTD Q3 YTD YoY FYE Mar. 2009 FYE Mar. 2010 Net Sales 231.5 238.9 3% Gross Profit 123.4(53.3%) 126.1(52.8%) 2% SG&A Expenses 77.9(33.6%) 76.1(31.9%) -2% Operating Income 45.5(19.7%) 50.0(20.9%) 10% Ordinary Income 42.7(18.5%) 50.4(21.1%) 18% Net Income 28.7(12
Slide 3: Sales (by Region)
Sales (by Region ) (Unit: Billion yen) +7% Japan/Outside of Japan Outside of Japan, Total Q3 YTD Q3 YTD Mar. 2009 Mar. 2010 -1% Total (+11%) ( ) : local currency +3% Outside of Japan, Ratio basis (+9%) 46% → 44% 133.1 124.2 -3% -0% -0% (+10%) (+10%) (+13%) 42.9 41.4 42.1 42.1 22.4 22.3 Asia and Japa
Slide 4: Sales (by Product Group)
Sales ( by Product Group) (Unit: Billion yen) Mar. 2009 Mar. 2010 +1% Q3 YTD Q3 YTD (+4%) +5% (+14%) ( ) : local currency basis -2% 101.2 (+6%) 113.0 114.7 96.2 +28% 18.2 17.9 (+30%) 4.0 5.1 General Cardiac & Blood Consumer Hospital Vascular Transfusion Health care 4
Slide 5: Gross Margin Change Factors
Gross Margin Change Factors Factors in the increase year-on- Factors in the decrease year-on- year: + 1.5 pt year: -2.0 pt Volume Others Cost Reduction +0.3 Shift to highly +0.6 - 1.1 profitable products Impact of currency +0.6 - 0.5 - 0.9 FYE Mar. 2009 FYE Mar. 2010 → Q3YTD 53.3% Q3YTD 52.8% 1US$ 1
Slide 6: SG&A, R&D Expenses
SG&A, R&D Expenses (Unit: Billion yen) Q3YTD Q3YTD Change YoY FYE Mar. 2009 FYE Mar. 2010 Salaries & wages 28.4 28.5 +0.1 0% Sales promotion 8.2 8.0 -0.2 -2% Logistical costs 7.0 6.7 -0.3 -4% 77.9 76.1 Depreciation & 3.9 3.8 -0.1 -3% amortization Others 18.2 16.5 -1.7 -10% SG&A Sub Total 65.8 63.4 -
Slide 7: Forecast for this Fiscal Year is on Hold
Forecast for this Fiscal Year is on Hold (Unit: Billion yen) FYE/Mar.2010 FYE/Mar.2010 Q3YTD Result Forecast Net Sales 238.9 315.0 Operating Income 50.0(20.9%) 63.0(20.0%) Ordinary Income 50.4(21.1%) 61.0(19.4%) Net Income 31.9(13.3%) 40.0(12.7%) Average exchange rate 1US＄ 94 yen 92 yen 1EUR 133 yen
Slide 8: Topics
Topics ・Business expansion in growing fields ‐ Nutritious food market ‐ Cerebral aneurysm treatment ・Other topics 8
Slide 9: Nutritious Food is a Prospective Growing Market
Japan Nutritious Food is a Prospective Growing Market (Unit: Billion yen) CAGR A positive sales growth 23% 5.3 2.3 The market will continue to FYE Mar. 2005 FYE Mar. 2009 grow and gather attention Shifting from the pharmaceutical nutrients to nutritious food due to the drug cost reduction CAGR 0.8%
Slide 10: The Paradigm Shift of the Nutritional Management
Japan The Paradigm Shift of the Nutritional Management Progresses Towards an Early Recovery and Hospital Discharge Surgical Abrosia Gradual recovery operation Active administration of nutrients Towards Surgical Early Early the hospital chronic operation recovery discharge phase New market Market exp
Slide 11: The Medical Practitioners and Patients are Waiting for Better Products
Japan The Medical Practitioners and Patients are Waiting for Better Products Tube and Bottle feeding Bags are reused Preparation is complicated It can cause the risk of back flow and infection Oral administration It doesn’t taste good. Can’t drink this much… 11
Slide 12: Promoting the Product Development in order to Improve the Healthcare Economy
Japan Promoting the Product Development in order to Improve the Healthcare Economy Ready-for-use Simple & convenient -Practice improvement -Infection prevention -Medical accidents Prevents prevention the back flow -Improve the QOL Jelly type A thickened type Appetizing, Small volume can drink it all
Slide 13: The Coil Treatment of Cerebral Aneurysm Grows
Global The Coil Treatment of Cerebral Aneurysm Grows (Unit: Billion yen ) We expanded rapidly CAGR 33% after entering the business 7.1 ※ Entered the market following the acquisition of 3.0 MicroVension (U.S.) in 2006 Sales: 2005 FYE Mar. 2009 (before the acquisition) The market is growing ・Stent (Co
Slide 14: Faster Development for Expanding the Business Further
Global Faster Development for Expanding the Business Further Japan December 2009 Launched: “HydroCoil” January 8, 2010 Launch Planned for this Q4 C1 (the additional Guidewire for charge for the new the cerebral vessel function) approved Guiding catheter “Traxess” for the cerebral vessel Improving th
Slide 15: Newly Launched Oxygen Concentrator for Home Oxygen Therapy with a Safety Mechanism
Japan Newly Launched “Oxygen concentrator for home oxygen therapy” with a Safety Mechanism The first ever launch in the world Equipped with the detection system for prevention against fire Oxygen concentrator for home oxygen therapy “O2 Green IBUKI 5SP” 15
Slide 16: The Production Expansion in Ashitaka & Fujinomiya Factories
Japan The Production Expansion in Ashitaka & Fujinomiya Factories New building of Ashitaka factory A rendering of the new building of Fujinomiya factory January 20, 2010: Completed January 2010: Construction began Spring 2012 : Ready for operation 16
Slide 17: Reference
Reference 17
Slide 18: Financial Results for the Three Months
Financial Results for the Three Months (Unit: Billion yen) Rate of Q3 /FYE Mar. 2009 Q3 /FYE Mar. 2010 change Net Sales 74.5 80.8 8% Gross Profit 39.2(52.6%) 42.8(52.9%) 9% SG&A Expenses 25.1(33.7%) 25.4(31.3%) 1% Operating Income 14.1(18.9%) 17.4(21.6%) 24% Ordinary Income 9.9(13.3%) 18.1(22.4%) 83
Slide 19: Income for the Third Quarter: To the Forecast for the year
Income for the Third Quarter FYE Mar. 2010: To the Forecast for the year （Unit: Billion yen） Forecast for the Year Q3 YTD Progress rates Impact of the currency +1.6 Net Sales 315.0 238.9 76% （Push up progress rate by a little less than 1 %） Operating Income 63.0 (20.0%) 50.0 (20.9%) 79% +0.5 （Push u
Slide 20: Income for the Third Quarter: To the Forecast for the 2nd Half
Income for the Third Quarter FYE Mar. 2010: To the Forecast for the 2nd Half （Unit: Billion yen） Forecast Q3 for the 2nd Half (Three months) Progress rates Impact of the currency +1.6 Net Sales 156.9 80.8 51% （Push up progress rate by 1 %） Operating Income 30.4 (19.4%) 17.4 (21.6%) 57% +0.5 （Push up
Slide 21: Gross Margin, SG&A Expenses Rates Both Contribute to Operating Margin Recovery
Gross Margin, SG&A Expenses Rates Both Contribute to Operating Margin Recovery Gross Margin (%) +1.1 52.6 48.8 53.6 51.8 52.9 SG&A Rate -0.6 33.7 36.8 32.3 31.9 31.3 Operating Margin +1.7 18.9 12.0 21.3 19.9 21.6 Q3 Q4 Q1 Q2 Q3 21 FYE Mar. 2009 FYE Mar.2010
Slide 22: Changes of Quarterly Average Exchange Rates
Changes of Quarterly Average Exchange Rates (The Strong Yen Keeps against the US$ YoY ) ¥ 180 EUR (FYE Mar. 2009) 160 140 EUR (FYE Mar. 2010) 120 US$ (FYE Mar. 2009) 100 US$ (FYE Mar. 2010) 80 Q1 Q2 Q3 Q4 22
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, forecasts of financial performance on future projections contain potential risks and uncertainty since these are forecasts on projections made by Terumo