Terumo Corporation · TSE:4543
Terumo — H1 FY2017 Earnings Presentation
19 slides from Terumo's earnings presentation, Nov 9, 2017
Slide 1: Financial Results for the First Half of Fiscal Year Ending March 31, 2018 (FY2017)
Financial Results for the First Half of Fiscal Year Ending March 31, 2018 (FY2017) Terumo Corporation Managing Executive Officer, ff Investor Relations, Corporate Communication Dept. Kazuaki Kitabatake November 9 9, 2017
Slide 2: Achieved Highest-ever Sales and Profits
Achieved Highest‐ever Sales and Profits (billion yen) 1H FY16 1H FY17 YoY% YoY% (FXN) Nett SSales N l 245.1 245 1 284.6 284 6 +16% 16% +12% 12% Gross Profit 135.0 (55.1%) 159.7 (56.1%) +18% +15% SG&A expenses 79.3 (32.4%) 93.8 (33.0%) +18% +14% R&D Expenses 16.3 ( 6.6%) 18.0 ( 6.3%) +11% +8% Operati
Slide 3: Operating Income Variance Analysis
Operating Income Variance Analysis (billion yen) 2.6 Impact of M&As made in FY16 54 5.4 O/P excl. amortization +3.9 Price Amortization* ‐ 4.6 erosion 6.3 *Figures above are tentative Gross margin improve‐ since PPA is still in process. ment Increase of 1.2 17.3 SG&A Increase (Increase of of R&D 4.6
Slide 4: Net Sales by Region
Net Sales by Region 1H FY17 1H FY16 Net Sales Year‐on‐Year Sales Comparison 100% = 284.6BJPY billion yen YoY% Comments ( ) FXN Achieved growth since sales in Cardiac and 92.5 Vascular Company offset the negative Japan +1% growth in General Hospital Company and 33% 91.8 Blood Management Company 55.3
Slide 5: Net Sales by Business Segment
Net Sales by Business Segment 1H FY17 1H FY16 Net Sales Year‐on‐Year Sales Comparison 100% = 284.6BJPY billion yen YoY% Comments ( ) FXN Products acquired in FY16 maintained good momentum. Organic business Cardiac 157.6 remained strong as well, and all +30% businesses achieved double digit growth 56
Slide 6: Cardiac and Vascular: Significant Increase Both in Sales and Profit
Cardiac and Vascular: Significant Increase Both in Sales and Profit (billion yen) 1H FY16 1H FY17 YoY% Major Topics Impact ( ) FXN 157.6 Impact of FX +7.4 121 5 121.5 TIS: Access and cardiology products outside JP +30% drove the growth +5.8 Sales (+24%) Neurovascular: Hydrogel coils and suction cath
Slide 7: General Hospital: Significant Profitability Improvement
General Hospital: Significant Profitability Improvement (billion yen) 1H FY16 1H FY17 YoY% Major Topics Impact ( ) FXN Impact of FX +1.0 78 2 78.2 77 7 77.7 General hospital products: Downsizing low ‐1% (‐2%) profit businesses outside Japan ‐0.8 Sales (Pumps in Japan showed signs of modest recovery)
Slide 8: Blood Management: Continuous Trend in Sales Growth and Profitability Improvement
Blood Management: Continuous Trend in Sales Growth and Profitability Improvement (billion yen) 1H FY16 1H FY17 YoY% Major Topics Impact ( ) FXN Impact of FX (strong dollar and weak Euro) +2.4 49.2 +9% 45.2 Sales Blood center business: Made double digit (+4%) ggrowth in emerging g g markets +0.5 Ther
Slide 9: Major Topics in Q2
Major Topics in Q2 IVUS system Won “FY2017 Good Design Award” “VISICUBE” Blood pressure monitor “AltaView” ELEMANO 2 Corporate CSR activities: ti iti M Monetary t and dddaily il goods d ddonations ti ffor relief li f off hurricanes in US and downpour in Kyushu, JP. Provided funds to art and cultur
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: Q4 ◎ Launched (Re launch) (Re‐launch) CV JP, US & JP&EU: Stent (TRI) ★ Next generation of oxygenator ◎ EU: Q4 FY18 JP,, US & JP: PTA balloon b ll (TRI) ★ General V i l infusio
Slide 11: Reference
Reference “FERUMO 11/19
Slide 12: 1H FY17 Net Sales and Growth by Region
1H FY17 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 26.4 131.2 39.6 58.7 16.7 16.1 157.6 Vascular (+8%) (+28%) (+23%) (+32%) (+25%) (+28%) (+24%) Out of C&V Interventional 20.2 106.4 31.8 45.6 15.6
Slide 13: Operating Expenses
Operating Expenses ( (billion yen)) 1H FY16 1H FY17 YoY YoY% YoY% (FXN) Salaries & Wages 35.8 41.4 +5.6 +16% +11% Sales Promotion 7.5 8.0 +0.5 +7% +3% Logistical Costs 5.5 6.1 +0.6 +11% +9% Depreciation & 12 3 12.3 18 4 18.4 +6.1 61 +50% 50% +43% 43% Amortization Others 18.2 19.9 +1.7 +9% +6% SG&A E
Slide 14: Quarterly Results
Quarterly Results ( (billion yen)) FY16 Q2 Q3 Q4 FY17 Q1 Q2 ((Jul‐Sep) p) ((Oct‐Dec)) ((Jan‐Mar)) ((Apr‐Jun) p ) ((Jul‐Sep) p) Net Sales 120.6 129.3 139.8 139.3 145.3 G Gross P Profit fit 65 8 65.8 68 7 68.7 74 3 74.3 78 3 78.3 81 4 81.4 (54.6%) (53.2%) (53.2%) (56.2%) (56.1%) SG&A Expenses 39.6 41.
Slide 15: CAPEX and R&D Expenses
CAPEX and R&D Expenses (billion yen) Expand investment in Amortization 56.0 production capacity of Intangibles aand d Goodwill Good 44 7 44.7 45 4 45.4 46 5 46.5 and space p as well as 41.4 40.7 IT infrastructure in 39.1 31.5 FY17 27.8 28.5 20 2 20.2 20 8 20.8 17.7 19.0 Amortization of CAPEX 14.
Slide 16: Cash Flow
Cash Flow Operating CF Investment and Finance CF (billion yen) +47.0 ‐6.1 10.3 27.8 Corporate 18.0 Finance Tax 7.7 Repayment 0.7 Depreci‐ Increase of for short‐ 19.0 ation and working term debt Dividends Others amorti‐ capital CAPEX 47.5 zation 146.3 139.9 Income before 120.0 105.4 tax Cash at end o
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.
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 1H FY17 1H FY17
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