Sysmex Corporation · TSE:6869
Sysmex — H1 FY2005 Earnings Presentation
44 slides from Sysmex's earnings presentation, November 2005
Slide 1: Half Year 2005 Business Results
Half Year 2005 Business Results
Slide 2: Operating Results
Operating Results Michiaki Ishida Executive Officer Vice President of Administration
Slide 3: Consolidated interim statement of accounts as of March 2006
Consolidated interim statement of accounts as of March 2006
Slide 4: Financial Highlights (Consolidated)
Financial Highlights (Consolidated) Increased Sales (six terms in a low) , Over １０ percentage growth (four terms in a low), And record-high Income (Sales) (Income) 50 6.0 （in billions of JPY） 5.4 +3.6％ 5.2 +14.6％ 41.6 5.0 40 36.2 +15.3％ 4.9 30.7 4.0 4.3 +20.1％ 30 27.4 2.8 2.6 3.6 3.0 20.0 20 3.0 1.5
Slide 5: Net Sales (Consolidated)
Net Sales (Consolidated) ¾Overseas Sales up 19.4% , composition ratio to 60% （in billions of JPY） 45 41.6 40 36.2 35 30.7 30 27.4 +19.4% 24.9 (60%) Total 20.9 25 20.0 15.8 (58%) 20 (51%) 13.1 (48%) 15 10.4 16.6 +8.1% (52%) 15.3 (40%) 10 14.9 (42%) 14.2 (49%) 5 9.5 (52%) (48%) 0 (Sales) Half FY2001 H
Slide 6: Breakdown of Net Sales
Breakdown of Net Sales ¾Increased sales especially by Japan, Europe, China （in billions JPY） FX impact AP 0.36 China 0.54 1.53 Europe 1.32 41.6 Americas Japan 0.29 1.24 36.2 Half Half FY2004 FY2005 ※FX impact excluded from regional sales below 5
Slide 7: Breakdown of Ordinary Income
Breakdown of Ordinary Income （in billions JPY） Gross margin on increased Increased operating sales Income by FX impact △0.05 △2.33 +2.87 +0.17 △0.47 Decreased non-operating loss Gross Margin decreased due to 0.1% Exchange gain ¥30 million 5.28 5.47 cost of good increase (previous year ¥72 million) H
Slide 8: Performance of SG&A, R&D investment
Performance of SG&A, R&D investment ¾Increased R&D Investment, Improved SG&A Ratio (deducted R&D Investment) (in billions of JPY) (％) 45 55 41.6 51.8 40 50.6 49.3 36.2 35 50 30.7 46.2 30 27.4 46.2 45 25 42.7 20.0 41.9 40.3 19.2 20 16.7 40 13.8 15.1 15 10.3 38.1 10 36.9 35 5 2.9 3.8 1.8 2.3 2.7 0 30
Slide 9: Regional Segment Information [Japan]
Regional Segment Information [Japan] （in billions of JPY） (Income) (Sales) 30 27.9 4.0 Total 25.5 23.2 10.6 9.6 2.8 3.0 7.5 (in billions of JPY) 20 2.9 4.0 3.8 J A 2.0 3.0 P 2.0 3.0 2.7 A 10 N 17.2 2.0 15.6 15.9 1.0 1.0 0 0.0 0.0 Half Half Half Half FY2003 Half FY2004 Half FY2005 FY2003 FY2004 FY200
Slide 10: Regional Segment Information [Overseas]
Regional Segment Information [Overseas] (Income) (Sales) (Income) (Sales) A 10 0.6 15 2.0 （in billions of JPY） E （in billions of JPY） m u 1.5 e 5 6.6 6.9 0.3 10 r 0.8 1.3 1.0 r （※） 0.03 12.5 3.1 o 5 9.3 11.0 i 0 0.0 p c -0.28 -0.10 e 0 0.0 a -5 Half FY2003 Half FY2004 Half FY2005 -0.3 Half FY2003 Ha
Slide 11: Remark: Affected by the closing date change
Remark ：Affected by the closing date change Purpose of the Change ：To release the appropriate information about Sysmex group and improve in quality of the information ¾The difference is 0.6 billion of JPY, 1.7% of Sales at the same period the previous year, compared the same period to the same month
Slide 12: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) Total （in billions of JPY） Total Total 81.45 77.66 77.66 21.93 23.44 20.70 0.80 0.82 50.92 0.81 50.06 53.50 58.68 53.4 56.14 26.74 27.59 27.94 Asset Liability Asset Liability Asset Liability Equity Equity Equity 2004.9 2005.3 2005.9 Fixed Assets Current Assets Equity Min
Slide 13: Consolidated Cash Flow
Consolidated Cash Flow （in billions of JPY） 14.2 15 13.8 11.9 10 5.6 5 4.3 4.2 0 △0.57 △0.63 △1.3 △1.6 △1.3 △3.6 △5 Operating CF Investment CF Financing CF Cash and Cash Equivalent at the end of year Half FY2003 Half FY2004 Half FY2005 12
Slide 14: Consolidated Earnings Forecast for Fiscal Year Ended Mar. 31, 2006
Consolidated Earnings Forecast for Fiscal Year Ended Mar. 31, 2006
Slide 15: FY 2005 Consolidated Earnings Forecast
FY 2005 Consolidated Earnings Forecast (Sales) (Income) 100 15 （in billions of JPY） 86.0 +11.8％ 76.9 12.5 80 11.0 +11.4％ 65.9 9.8 +17.5％ 10.7 10 60 57.2 9.1 47.5 6.6 +13.4％7.5 40 5.3 6.5 4.0 5.6 5.7 5 5.2 20 3.4 3.1 3.1 2.5 1.3 0 0 Half FY2001 Half FY2002 Half FY2003 Half FY2004 Half FY2005 Sales Op
Slide 16: Geographic Segment Information [Japan]
Geographic Segment Information [Japan] (Sales) （in billions of JPY） (Income) 57.8 60 8 Total 53.4 48.5 21.5 50 18.9 15.5 6 40 5.6 5.7 J 5.3 a 30 4 p 36.3 a 34.5 20 n 33.0 2 10 0 0 Half FY2003 Half FY2004 Half FY2005 Outside Sales Inside Sales Operating Income 15
Slide 17: Geographic Segment Information [Overseas]
Geographic Segment Information [Overseas] (Sales) (Income) (Sales) (Income) A 20 1.0 30 4 m （in billions of JPY） 16.2 E （in billions of JPY） 24.1 13.5 21.2 e 15 0.5 u 17.5 3 0.60 20 3.0 r 10 9.1 0.0 r 2 0.19 i o 10 2.2 c 5 -0.5 p 1.3 1 a 0 △0.60 -1.0 e 0 0 s Half FY2003 Half FY2004 Half FY2005 Half
Slide 18: Projected Dividend for the Fiscal Year 2005
Projected Dividend or the Fiscal Year 2005 Interim Year-end Total dividend dividend FY2005 ¥２０ ¥１０（※） ¥３０ FY2004 ¥1５ ¥２５ ¥４０ Note: Sysmex is planning to split its common shares 2 for 1 effective November 18, 2005 based on the resolution at the board of directors’ meeting held on August 23, 2005. Sin
Slide 19: Future Opportunities
Future Opportunities Hisashi Ietsugu President and CEO
Slide 20: Contents
Contents 1. Market Scenarios 2．Topics of the First Half 3．Mid-term Plan 4．Future Efforts 5．Efforts in R&D Forward-Looking This material contains forward-looking statements about Sysmex Corporation and its group companies (the Sysmex Group). These forward-looking statements are based on current judgm
Slide 21: Market Scenarios
Susmex Market Scenarios DOI
Slide 22: Changes in the healthcare market
Changes in the healthcare market Market Healthcare policies Emerging economies of the BRIC Announcement of the reform draft proposal of Group(Brazil, Russia, India & China) the Medical Care System (Japan) EU expansion (Eastern Europe) Consideration of the Total Medical Expenditure Aging of
Slide 23: Topics of the First Half of the Fiscal Year
Topics of the First Half of the Fiscal Year
Slide 24: Topics of the First Half of FY 2005 (1)
Topics of the First Half of FY 2005 (1) R&D Restructuring the R&D framework and enhancing the R&D management →Establishing a R&D Planning function →Integrating the reagent development operations of International Reagents Corporation into the Company, establishing a Reagent Development Developmen
Slide 25: Topics of the First Half of the FY 2005 (2)
Topics of the First Half of the FY 2005 (2) Business Base Launching the enhancement of the reagent production capacity of Europe / Americas Reagent Production Factories (Europe / Americas) Establishing the SYSMEX POLSKA Sp.z oo, oo, and starting to expand the marketing service networks in East
Slide 26: High-performance/compact automated hematology analyzer (under development)
High-performance/compact automated hematology analyzer (under development) Concept of Product Development Achieve both high performance and downsizing by following the measurement principles of the XE series designed for large hospital use Enrich portfolio in the markets for small and mid-size h
Slide 27: Opening of the Solution Center
Opening of the Solution Center Showroom Customers Solution Seminars proposal for users Services and Marketing Logistics support Model Laboratory Information Solution Division Scientific support Delivery Customer support Consolidating and expanding the solution functions Call Center "Solution-Oriente
Slide 28: Mid-term Plan
Mid-term Plan ＜Announced in May 2005＞ (from FY 2005 to 2007)
Slide 29: Strategies/Targets for FY2010
Strategies/Targets for FY2010 Fundamental strategies Global Niche No.1 Focus on Focus on Life Science Asia Long-term Vision: A Unique & Global Healthcare Testing Company Targets for FY2010 Positioning No.1 solutions provider in the diagnostics field Innovative company in the life science fie
Slide 30: Targets for FY2007 and key issues
Targets for FY2007 and key issues Targets for FY2007 ¾ Net Sales: 110.0 billion ¾ Operating Income: ¥15.7 billion ¾ Ordinary Income: ¥16.0 billion ¾ Ratio of Ordinary Income to Net Sales: 14.5% ¾ ROE: 13.0% Key issues Exchange rate：US$1 = ¥105, €1 = ¥135 Sustainable sales and profit growth in the di
Slide 31: Future Efforts
Susmex Future Efforts
Slide 32: Regional Efforts [Americas]
Regional Efforts［Americas］ Progress in the First Half ¾ First achievements in supplying the Veterans Administration Hospital Hospital groups (2 groups) ▪ Network of the Veterans Administration Hospital (22 groups / 169 hospitals / 532 clinics) ¾ Achievements in sales to 10 IHN groups ¾ Achievements
Slide 33: Qualitative Change in Efforts Made in the U.S.
Qualitative Change in Efforts Made in the U.S. Enhancing Enhancing the the Direct Direct Sales Sales Service Service Framework Framework Restructuring of logistics Customers Transfer of operations of placing orders to our company from a distributor in the hematology field Marketing Services and
Slide 34: Regional Efforts [Europe]
Regional Efforts [Europe] Progress in the First Half ¾ Expanding the ICS business through distributors ¾ Monitoring when psychotropics administration with Poch- Poch-100i ¾ Brisk sales in Eastern Europe and Africa ¾ Supply hematology systems/reagents and maintenance services to the Greater Glasgow H
Slide 35: Regional Efforts [China]
Regional Efforts [China] Progress in the First Half ¾ Extension of the functionality of hematology analyzers is well under under way ¾ Robust sales of compact hematology analyzers because of increasing increasing in major bid items ¾ Sales activities as a comprehensive supplier New Sysmex Shanghai o
Slide 36: Regional Efforts [AP]
Regional Efforts [AP] Progress in the First Half ¾ Brisk sales of hematology analyzers and coagulation systems ▪ Actively promoting sales in regional scientific seminars and exhibitions ¾ Enter clinical chemistry and immunochemistry markets ¾ Promoting solution-oriented business ▪ Receiving orders f
Slide 37: Regional Efforts [Japan]
Regional Efforts [Japan] Operating Environment Progress in the First Half Announcement of the reform draft proposal of ¾ Solution- Solution-oriented business in conjunction with CNA Co., Ltd. the Medical Care System Considering the Total Medical Expenditure ¾ Receiving orders for the hematology
Slide 38: Efforts in R&D
Susmex Efforts in R&D
Slide 39: Firming up the R&D Structure
Firming up the R&D Structure Restructure the R&D framework Reorganize the Product Flow Central Research R&D Planning Laboratories Instrument R&D Development Planning Production function Research Reagent Reagent Instrument Development Development Development function function Intellectual Property In
Slide 40: From Screening to Disease Management
From Screening to Disease Management Screening Confirmed Diagnostics Recurrence prevention "Create High-value Tests" Based on Disease Management Cell Counting Technology One- One-Step Nucleic Acid Cell Cycle Profiling Immunochromatography (FCM) Amplification Technology (C2P) Technology Technology (O
Slide 41: Concept of Cancer Management
Concept of Cancer Management Screening Recurrence Prevention Selection of the Types of Treatment Monitoring of Metastasis Other Anti- Anti- Hematogenous Cancer Rare Cells Recurrence Metastasis Agents Prediction (digestive organ, Lymph Node Metastasis lung...) / Dissemination (digestive organ, Taxane
Slide 42: Progress in the Life Science Field
Progress in the Life Science Field Research Clinical Trial Application/ Introduction Listing Approval into the Market (Clinical Study) (Clinical Trial) Rapid lymph-node metastasis Japan: clinical trial under way detection Breast Colon cancer cancer Europe: clinical trial under way U.S.: in prepara
Slide 43: END
Challenging the Frontiers of Healthcare Testing SYSMEX CORPORATION END
Slide 44: Forward-Looking Statements
Forward-Looking Statements This material contains forward-looking statements about Sysmex Corporation and its group companies (the Sysmex Group). These forward-looking statements are based on current judgments and assumptions of the Sysmex Group in light of the information currently available to it,