Terumo Corporation · TSE:4543
Terumo — Q1 FYE/Mar 2010 Earnings Presentation
25 slides from Terumo's earnings presentation, Jul 30, 2009
Slide 1: 1st Quarter Financial Results for FYE/Mar 2010
1st Quarter Financial Results for FYE/Mar 2010 Terumo Corporation July 30, 2009 1
Slide 2: Financial Results
Financial Results (Unit: Billion yen) Q1 FYE/Mar. 2009 Q1 FYE/Mar. 2010 Rate of change Net Sales 77.8 77.5 0% Gross profit 42.2(54.3%) 41.6(53.6%) -2% SG&A Expenses 26.0(33.4%) 25.1(32.3%) -4% Operating Income 16.2(20.9%) 16.5(21.3%) 1% Ordinary Income 18.9(24.2%) 16.9(21.9%) -10% Net Income 14.0(18
Slide 3: Sales (by Region)
Sales (by Region ) (Unit: Billion yen) Outside of Japan Total Japan/Outside Mar. 2009 Mar. 2010 of Japan Total -8% Q1 Q1 ( + 7 %) 0% ( ) : local currency Ratio of outside of Japan +7 % (+ 7%) 49 % → 45 % basis 42.8 - 16 % -2% 39.9 -5% ( + 5%) ( + 6%) （+ 11%） 16.0 13.4 13.9 13.7 7.9 7.5 Asia and Japa
Slide 4: Sales (by Product Group)
Sales ( by Product Group） (Unit: Billion yen) Mar. 2009 Mar. 2010 -1% Q1 Q1 ( + 2%) +1% ( + 12%) ( ) : local currency basis -9% 37.2 ( 0 %) 33.1 33.3 36.6 + 54 % ( + 58%) 6.2 5.7 1.9 1.2 General Cardiac & Blood Consumer Hospital Vascular Transfusion Health-care 4
Slide 5: Gross Profit (%)
Gross Profit (%) Cost Cut and Others Shift to Highly Profitable Products + 0.3 Price Down Impact of Currency - 0.1 + 0.7 - 1.6 - 0.7 ｐｔ FYE/Mar. 2009 Q1：54.3% Æ FYE/Mar. 2010 Q1 ：53.6% 5
Slide 6: SG&A Expenses
SG&A Expenses (Unit: Billion yen) SG&A. expense ratio to sales improved by 1.1pt Japan: 26.0 25.1 -R&D was reinforced -A growth of retirement benefit expense was offset by a reduction of expense 33.4 32.3 ％ ％ Outside of Japan： -Reduced across the Group, and improved due to a favorable impact of fore
Slide 7: Forecast for the 1st Half Revised Upward
Forecast : Forecast for the 1st Half Revised Upward (Billion yen) FYE/Mar.2010 FYE/Mar. 2010 1st Half Year FYE/Mar.2010 Q1 Results Forecast Forecast Net Sales 77.5 154.0 315.0 Operating Income 16.5(21.3%) 28.0(18.2%) 56.0(17.8%) Ordinary Income 16.9(21.9%) 28.0(18.2%) 56.0(17.8%) Net Income 10.8(14.
Slide 8: Topics
Topics •Performance trend update •Growth potential of interventional systems business •Others 8
Slide 9: Impact Limited Despite Slow Sales of Large Equipment
Performance Trends Impact Limited Despite Slow Sales of Large Equipment Overseas sales of large-sized equipment for cardiac surgery (billion yen) 3 2 1 Large-sized equipment for cardiac surgery: Heart-lung machine 0 “Sarns Advanced Perfusion System 1” Q1 Q1 9 FYE Mar. 2009 FYE Mar. 2010
Slide 10: Big Buyer China Robust Among Emerging Markets
Performance Trends Big Buyer China Robust Among Emerging Markets (US$ Mil.) 20 15 10 5 China Latin America Eastern Europe / Russia 0 Q1 Q1 FYE Mar. 2009 FYE Mar. 2010 10
Slide 11: Interventional Systems Business: Unique Growth Potential
Interventional Systems Business Unique Growth Potential Driving Entire Business Expansion New Field • Coils for neuro vascularl aneurysm treatment High-Value-Added Medical Devices • PTCA balloon catheters • Stents 3 Basic Items • Drug-eluting stents, etc. (requisites for interventional procedure) •
Slide 12: "3 Basic Items" That Always Grow
“3 Basic Items” That Always Grow Competitive quality that induces demand shifts to Terumo products • Growth on market expansion • Growth on field diversification Heart Neuro Peripheral High-value-added medical devices 3 basic items 12
Slide 13: Extending Portfolio of Guide Wire Products
Extending Portfolio of Guide Wire Products Further into new fields Neuro-vascular micro wires Peripheral-vessels guide wires PTCA guide wires Global brand of Radifocus Guidewire 13
Slide 14: Sales Growing on Products Offering Healthcare Economy Benefit
Sales Growing on Products Offering Healthcare Economy Benefit PTCA balloon catheter product lineup and sales volume (Japan) No. of units (Thousand) Number used per case 1.24 130 (Based on surveys by Terumo) 1.21 1.18 1.12 Tazuna : New products that emphasize healthcare economy benefit 90 Hiryu Launc
Slide 15: New Field Becoming New Growth Pillar
New Field Becoming New Growth Pillar Sales of coils for use in treating neuro aneurysms 8.4 billion yen CAGR 29% Acquisition of MicroVention, Inc. 3.0 billion yen FYE Mar. 2006 FYE Mar. 2010 (Forecast) 15
Slide 16: Coil Market Set to Continue Expanding
Coil Market Set to Continue Expanding Trends in the neuro aneurysm treatment market No. of cases worldwide (Thousand) 100 80 Coil treatment 60 40 20 Surgery (clips) 0 2004 2006 2008 2010 16 (Based on surveys by Terumo)
Slide 17: Pursuing Synergies Since The Acquisition
Pursuing Synergies Since The Acquisition Trend in neuro aneurysm treatment [Treatment coils] MicroVention technology ・Barecoil ＋ ・Hydrocoil ・HydroSoft [Access devices] Terumo technology ・3 basic items ・Micro wire ・Guiding catheter Coils for abdominal peripheral arteries 17
Slide 18: Other Topics 1) U.S.
Other Topics 1) U.S. Sales recording continuous growth (U.S.$ Mil.) since the start of direct sales 200 CAGR 14% 150 +71% 100 Start of 50 direct sales 0 FYE Mar. FYE Mar. FYE Mar. FYE Mar. FYE Mar. 2006 2007 2009 2009 2010 (Forecast) 18 (Sales of catheter products in the U.S. market)
Slide 19: Other Topics 2) Thailand
Other Topics 2) Thailand Leveraging the Terumo brand to offer a full lineup of products # Hospitals: pursuing a safety strategy # Entry into the diabetes treatment business # The no.1 presence in interventional systems (Terumo share:40% Exclude DES) Consumer Health-care Blood Transfusion 1% CAGR 24%
Slide 20: Summary
Summary # The strong yen has been a big problem, but we are gradually overcoming it. # We have had some success in boosting our profitability. # We have made a smooth start in achieving our goal of increasing revenues and profits. 20
Slide 21: Reference
Reference 21
Slide 22: Factor of Change of Sales and Operating Profit
Factor of Change of Sales and Operating Profit [Sales] Q1 Mar.2009: 77.8 bln yen Æ Q1 Mar. 2010: 77.5 bln yen - 0.3 bln yen Increase of amount Impact of currency ＋5.5 - 5.6 Price down - 0.2 [Operating Income] Q1 Mar.2010: 16.2 bln yen Æ Q1 Mar. 2010: 16.5 bln yen ＋3 bln yen Increase of amount / Impr
Slide 23: Reference
Reference (Unit: millions of yen) Mar. 2009 Mar. 2010 Mar. 2010 1st Quarter 1st Quarter Forecast R&D Expense 3,772 3,922 19,000 Depreciation Expense 4,641 4,481 21,000 Investment in Plant and Equipment 3,235 5,157 23,000 Free Cash Flow -10,237 493 Shareholder's Equity Per Share (Yen) 72.27 56.94 197
Slide 24: "Tazuna," New PTCA Balloon Catheter Suitable for TRI Launched
“Tazuna,” New PTCA Balloon Catheter Suitable for TRI Launched Requisites for penetration of TRI procedures Device Development * What’s TRI… To minimize in diameter and improve in In TRI (Transradial Coronary Intervention), a smooth accessibility balloon catheter is inserted from a micro wrist Safety
Slide 25: 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