Slide 1: Financial Results for the Second Quarter of Fiscal Year Ending March 31, 2025 (FY2024)
Financial Results for the Second Quarter of Fiscal Year Ending March 31, 2025 (FY2024) November 7, 2024 Jin Hagimoto Chief Financial Officer Terumo Corporation
Slide 2: Forward-Looking Statements and Use of Document
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 events or performanc
Slide 3: Highlights
Highlights Revenue Highest ever result for the first half Demand continued across all companies, which together with foreign exchange contributed to company-wide growth of +15% Profit Operating profit, adjusted operating profit, and profit for the period all reached record highs for the first half G
Slide 4: P&L, FCF
P&L, FCF Revenue: Global demand remained strong, even when including one-time factors. Driven by TIS and blood center business Operating Profit: Improved profit margins through increased sales, pricing measures, and appropriate cost control Change 100M JPY FY23 Q2 YTD FY24 Q2 YTD Change excluding FY
Slide 5: OP Variance Analysis (Q2): Continued demand and foreign exchange effects contributed
OP Variance Analysis (Q2): Continued demand and foreign exchange effects contributed (100M JPY) G/P increment by sales increase: Driven by TIS and the blood center business Price Gross +36 Gross margin: margin FX Mitigation of inflationary and cost reduction Reimbur- SG&A sement increase effects G/P
Slide 6: OP Variance Analysis (Q2 YTD): Contribution from pricing measures and strong sales
OP Variance Analysis (Q2 YTD): Contribution from pricing measures and strong sales (100M JPY) G/P increment by sales increase: Price +60 Driven by C&V, mainly TIS FX Reimbur- Gross margin: Gross sement SG&A margin increase Mitigation of inflationary and cost reduction price R&D increase effects +14
Slide 7: Revenue by Region: Steady progress in all regions, led by US and Europe
Revenue by Region: Steady progress in all regions, led by US and Europe C&V: Cardiac and Vascular, TMCS: Medical Care Solutions, TBCT: Blood and Cell Technologies, TIS: Interventional Systems, Neuro: Neurovascular, CV: Cardiovascular, HCS: Hospital Care Solutions, LCS: Life Care Solutions, PS: Pharm
Slide 8: C&V: Both sales and profits exceeded planned figures, driven by US and Europe
C&V: Both sales and profits exceeded planned figures, driven by US and Europe (C&V: Cardiac and Vascular, TIS: Interventional Systems, Neuro: Neurovascular, CV: Cardiovascular) （100M JPY） Q2YTD Q2YTD Q2 Comments YoY ( ) FX Neutral 3,063 TIS : Double-digit growth globally. Driven by the +248 2,657 re
Slide 9: TMCS: Revenues and profits increased due to strong sales and pricing measures
Revenues and profits increased due to strong sales including one-time TMCS: factors and the effects of pricing measures (TMCS: Medical Care Solutions) （100M JPY） Q2YTD Q2YTD Q2 Comments YoY ( ) FX Neutral 1,043 HCS : In Japan, sales increased due to the effects +65 Hospital Care of the pricing measu
Slide 10: TBCT: Revenues and profits increased due to strong performance by the blood center business
TBCT: Revenues and profits increased due to strong performance by the blood center business (TBCT: Blood and Cell Technologies) （100M JPY） Q2YTD Q2YTD Q2 Comments YoY ( ) FX Neutral Blood Center : Strong sales of apheresis collection +113 Solutions systems and whole blood collection-related 980 prod
Slide 11: Free Cash Flow: 62.1 B JPY (YoY +44.6 B JPY)
Free Cash Flow：62.1 B JPY（YoY +44.6 B JPY） (100M JPY) 261 418 0 Income taxes, etc. Working capital 412 Depreciation gains and and losses 23 amortization * CAPEX 851 1,009 Others 621 175 FY24 Operating (Ref) FCF FY23 Q2 Q2 YTD CF FCF Profit before Tax YoY +187 +51 -34 +270 +473 -85 +58 +446 * Constru
Slide 12: Upward revision of FY24 guidance due to strong performance and FX effects
Upward revision of FY24 guidance due to strong performance and FX effects ( ) FX Neutral FY23 results FY24 Previous FY24 revised forecast Revision Change 100M JPY (A) guidance (B) (C) (C)-(B) (C)÷(A) Revenue 9,219 9,800 10,100 +300 +10% (+8%) Operating Profit (%) 1,401 (15.2%) 1,650 (16.8%) 1,720 (1
Slide 13: Key points of the upward revision of adjusted operating profit
Key points of the upward revision of adjusted operating profit Upward revision of 15 B JPY due to strong overseas performance and more efficient production operations in addition to FX effects (100M JPY) Increase in Gross SG&A and G/P increment margin R&D expenses by sales increase FX Amortization o
Slide 14: Reference
Reference ©TERUMO CORPORATION 14
Slide 15: P&L (QoQ)
P&L (QoQ) (100M JPY) FY23 Q2 Q3 Q4 FY24 Q1 Q2 (Jul-Sep) (Oct-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep) Revenue 2,286 2,391 2,389 2,582 2,505 Gross Profit 1,185 (51.8%) 1,266 (52.9%) 1,243 (52.0%) 1,376 (53.3%) 1,395 (55.7%) SG&A Expenses 664 (29.0%) 707 (29.6%) 737 (30.9%) 748 (29.0%) 732 (29.2%) R&D Expen
Slide 16: SG&A (QoQ)
SG&A (QoQ) (100M JPY) FY23 Q2 Q3 Q4 FY24 Q1 Q2 (Jul-Sep) (Oct-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep) Salaries & Wages 349 371 373 398 384 Sales Promotion 44 54 54 52 47 Logistics Costs 46 49 51 51 59 Depreciation and Amortization 61 65 66 70 68 Others 164 168 192 178 175 SG&A Expenses Total 664 707 737
Slide 17: SG&A (YoY)
SG&A (YoY) (100M JPY) YoY% FY23 Q2 FY24 Q2 YoY YoY％ excluding FY23 Q2 FY24 Q2 YoY YoY％ YTD YTD FX impact Salaries & Wages 685 782 97 14% 7% 349 384 35 10% Sales Promotion 93 99 6 6% 1% 44 47 3 7% Logistics Costs 94 109 16 17% 11% 46 59 13 28% Depreciation and 119 137 18 15% 9% 61 68 6 11% Amortizati
Slide 18: Adjusted Operating Profit: Adjustments
Adjusted Operating Profit: Adjustments (100M JPY) FY23 Q2 YTD FY24 Q2 YTD FY23 Q2 FY24 Q2 Adjusted Operating Profit 756 1,040 411 529 Adjustment 1. Amortization of -97 -109 -50 -53 acquired intangible assets Adjustment 2. Non-recurring profit or loss 6 -54 8 ｰ45 Operating Profit 665 877 368 431 <Gen
Slide 19: CAPEX, Depreciation and Amortization, R&D Expenses
CAPEX, Depreciation and Amortization, R&D Expenses (100M JPY) FY24Q2 FY24 FY21 FY22 FY23 YTD Guidance CAPEX 692 758 784 412 930 Depreciation and Amortization 532 635 702 382 770 Amortization of 161 188 200 105 200 acquired intangible assets Others 371 447 502 277 570 CAPEX = Construction in progress
Slide 20: Cash Flow (Q2 YTD)
Cash Flow (Q2 YTD) Operating CF Investing & Financing CF +1,009 -1,109 (100M JPY) 261 *** 418 0 Debt Repayment Income taxes, etc. 412 Issuance of Working Bonds, Proceeds Depreciation capital ** from 851 and gains and CAPEX borrowings 22 amortization losses 163 1,549 Share 161 Profit before buy-backs
Slide 21: Cash Flow (Q2)
Cash Flow (Q2) Operating CF Investing & Financing CF +652 -652 (100M JPY) 79 127 208 264 Income taxes, etc. Working capital ** Depreciation CAPEX 200 22 395 gains and and losses amortization *** 165 Debt Share Repayment buy-backs Profit before Others tax 1,949 1,949 *Cash at the end * Aligned with p
Slide 22: Foreign Exchange Sensitivity
Foreign Exchange Sensitivity Annual impact of 1 JPY depreciation (Flow) (100M JPY) USD EUR CNY Revenue 25 11 39 Adjusted Operating Profit 1 5 23 Impact of 1 JPY depreciation (Stock) USD EUR CNY Adjusted Operating Profit -2.5 -0.6 -2.0 ©TERUMO CORPORATION 22
Slide 23: Terumo
~“TERUMO