TERUMO CORPORATION. Financial Results for FYE/Mar April 30 th, 2008

Transcription

1 TERUMO CORPORATION Financial Results for FYE/Mar.2008 April 30 th,

2 I. Financial Results for FYE/Mar.2008 II. Review of STeP UP (FY05-07) III. New mid-term business plan (FY08-10) 2

3 3 Financial Results for FYE/Mar.2008

4 Sales and profits enjoyed double-digit growth (Unit: billion yen) FYE/Mar.2007 FYE/Mar.2008 Rate of change Net Sales % Gross Profit (%) 153.3(55.5%) 168.2(54.9%) 10% S.G.A Expenses (%) 94.9(34.3%) 101.3(33.1%) 7% Operating Income (%) 58.5(21.2%) 66.9(21.8%) 15% Ordinary Income (%) 58.0(21.0%) 64.2(21.0%) 11% Net Income % Average exchange rate $ 117 yen 114 yen 2.2% yen appreciation EUR 150 yen 162 yen 7.7% yen depreciation 4

5 FYE/Mar.2008 Financial situation (Unit: billion yen) Net Sales +10.8% Operating Income Operating Income Rate Net Income +14.5% +16.5% % % FYE/Mar FYE/Mar FYE/Mar FYE/Mar FYE/Mar FYE/Mar

6 +6.5% Net Sales (by Region) Outside Japan total +16.1% (+13.2% excluding impact of foreign exchange) (Unit: billion yen) FYE/Mar. FYE/Mar Outside Japan rate 45% 47% % (+10.1%) +11.5% (+13.7%) +24.0% (+18.8%) Japan Europe Americas Asia 6

7 Net Sales (by Product group) (Unit: billion yen) +9.2% FYE/Mar 2007 FYE/Mar % +4.9% +6.6% General hospital products Interventional products CV and vascular grafts Home health care products

8 8 Ⅱ. Review of STeP UP (FY05-07)

9 Achieved double-digit sales growth (Unit: billion yen) % per annum CAGR Consolidated 10% Japan 4% Outside Japan 18% Mar.2005 Mar.2006 Mar.2007 Mar.2008

10 Operating Income also achieved double-digit growth (Unit: billion yen) 75 12% per annum Mar.2005 Mar.2006 Mar.2007 Mar.2008

11 11

12 Achieved all-time sales growth speed 2 years 500 billion 100 billion yen growth in 12 years 5 years 200 billion 3 years billion Mar billion Mid-term target Mar 2011 Mar

13 Sales to reach 400 billion yen in FYE/Mar % % per annum 400 billion yen Negative impact Foreign exchange NHI price revisions 0 Mar.2008 Mar.2009 Mar.2010 Mar $ = euro =

14 Operating income to reach 85 billion yen in FYE/Mar % per annum 85 billion yen % Negative impact Foreign exchange NHI price revisions 0 Mar.2008 Mar.2009 Mar.2010 Mar $ = euro =

15 To become Terumo with a sense of presence in the world. 3 strategies Reorganization of internal companies Challenge toward innovation Promote globalization 15

16 Reorganization of internal companies Cardiac & Vascular Cardiac & Vascular General Hospital General Hospital Blood Transfusion Home Health Care Consumer Health Care 16

17 Toward sales outside Japan exceeding 50% of total sales (Unit: billion yen) 400 Outside Japan rate 51% CAGR Mar.2007 Mar.2008 Mar.2009 Mar.2010 Mar.2011 FY07 FY08 FY09 FY10 Asia 11% Americas 9% Europe 16% Japan 6% 17

18 Strategies of Cardiac & Vascular company Apply existing core technologies to new domains Continuous introduction of new products Increase production capacity for growth Aggressive expansion of business in emerging countries Aiming to be No.3 in the global market 18

19 Applying core technologies to new domains Micro- Guidewire Micro-Catheter Guiding-Cathter Brain Existing core technologies Access devices Devices for diagnosis Devices for treatment Stent Misago Micro-Wire Heart Peripheral Liver Kidney Lower extremities Peripheral coil AZUR 19

20 Target share : Double-digit in PCI market Guiding Catheter Market : 25 billion PTCA Balloon 84 billion yen FYE/Mar,08 7% FYE/Mar,11 10% FYE/Mar,08 7% FYE/Mar,11 11% PTCA-GuideWire 34 billion yen IVUS 25 billion yen FYE/Mar,08 9% FYE/Mar,11 20% FYE/Mar,08 6% FYE/Mar,11 12% 20 Market size in Mar, 08 (Terumo data)

21 General Hospital company strategies Integration of Drugs and Devices Expansion of B2B business on a global level Enhancement and improvement of existing products for better safety Aiming to be No.3 in the global market 21

22 Blood Transfusion company strategies Business expansion in the two segments. Whole blood collection FY07 FY12 Market size 100 billion yen 130 Terumo share 16% 27 Aphaeresis collection Market size 90 billion yen 110 Terumo share 3% 10 (TACSI) Automatic centrifugal separation system (TACURA) New aphaeresis system 22

23 Blood Transfusion company strategies Opportunities for further growth - Cell therapy and NRC (Neo Red Cell) Aiming to be No.1 in the global market in the long-term 23

24 Consumer Healthcare company strategies Business with general consumers Brand image Preventive medical-care Marketing outside Japan 24

25 Capital investment of 70 billion yen (FY08-10) Expansion of production capacity centering on interventional products Plants in Europe and America Increasing local production of catheters Vietnam Plant Responding to increasing demand for medical equipment and interventional products Operation start: 1Q of 2008 New Ashitaka factory Responding to increasing demand for interventional products Construction start: September 2008 Operation start: Mid 2009 (planned) Target markets: Entire world 25

26 R&D 57 billion yen (FY08-10) Clinical trials of new products Nobori in Japan DuraHeart in Japan and the U.S. Anaconda in the U.S. 26 Products under development NRC, Nanocapsules Next-generation DES

27 FY08: Increasing sales and profits by reducing such negative impact of foreign exchange and NHI price revisions (Unit: billion yen) FYE/Mar.08 FYE/Mar.09 Growth Sales % Operating Profit % R&D expenses % Capital Investment % 27

28 28 Reference

29 Interventional products PTCA Balloon Hiryu is No.1 Share in Japan Contributing to medical economic improvement Supports a variety of needs with a single unit, completing treatment with a small number of catheters Others Jun, 07 Terumo 19% Others Mar,08 Terumo 26% Target in Mar, 11 Share 35% in Japan BSX BSX Next target Europe and Asia Goodman Goodman 29 share (Terumo data)

30 Interventional products Ultrasound diagnostic system in Japan High-resolution ultrasound diagnostic system with superior trackability toward the target lesion. Expanding market due to DES problem. FYE/Mar. 11 Global 40 billion yen Sales target FYE/Mar.09 : 3 billion yen FYE/Mar.11 : 5 Developing product OFDI 30 Catheter ''ViewIT'' Monitor ''VISIWAVE''

31 Blood Transfusion products Growing Market : 300 billion Billion yen 3, , , , ,400 億円 成分採血 Aphaeresi ME フィルター商品 Filter フィルター付き Bag with filter 血液バッグ Bag w/o filter 1,500 億円 ,900 億円 230 2,450 億円 300 3,000 億円 Aphaeresis collection CAGR:5% 1, , Whole blood collection CAGR: 6% 年 年 年 年 年 Market size in Mar, 08 (Terumo data)

32 Blood Transfusion products TACSI :Terumo Automated Centrifuge & Separator Integration TACSI Current procedures Centrifuge + Separation New TACSI Collaboration with Andreas Hettich. 32 Machine Bag The automation of the blood component production eliminates the most sensitive manual steps in the blood component process. Often these steps affect the quality of the components produced and lead to possible product losses. Furthermore the automation not only reduces the manual operations, but considerably simplifies the processes and limit the equipments required for this process. It shall prove itself to be very cost-effective. 3/24

33 IR Contact TERUMO Corporation Corporate Communication (IR) Dept. This document contains forward-looking statements that reflect management s current views with respect to certain future events and financial performance. Actual results may differ materially from those projected or implied in the forward-looking statements and from historical trends. Furthermore, certain forward-looking statements are based upon assumptions of future events that may not prove to be accurate. Factors that could cause actual results to differ materially from those projected or implied in any forward-looking statements include, but are not limited to, changes in overall economic conditions, fluctuations of foreign exchange rates, and intensifying price competition in the markets for our products. 33