TERUMO CORPORATION
1st Quarter Financial Results for FYE/ Mar.2008
1
Sales and Profits Enjoyed
Double-digit Growth
Q1 FYE/Mar. 2007
(Unit: Billion yen)
Q1 FYE/Mar. 2008
Rate of change
Net Sales
64.3
75.5
Gross Profit (%)
35.9 (55.7%)
41.5 (55.0%) 15.7%
S.G.A Expenses (%)
22.4 (34.8%)
24.5 (32.5%)
Operating Income (%)
13.5 (20.9%)
17.0 (22.5%) 26.2%
Ordinary Income (%)
13.5 (20.9%)
18.6 (24.6%) 38.2%
Net Income (%)
Average
Exchange rate
8.0
US$
EUR
115 yen
144 yen
13.1
121 yen
163 yen
17.3%
9.4%
63.4%
5.5% yen depreciation
13.2% yen depreciation
2
Net Sales (by Region)
(Unit: Billion yen)
75.5
+11.1
7.6
+1.9
14.5
+2.7
Asia & Others 34.0% (24.1%)
14.3
+2.8
Americas
23.2% (17.6%)
Europe
24.3% (11.0%)
64.3
5.6
11.8
Growth Rate
Growth rate
17.3% (13.1%)
11.5
35.4
39.1
+3.7
Outside Japan
Japan
Q1 FYE/Mar. 2007
Q1 FYE/Mar. 2008
Outside Japan sales ratio (%)
45%
→
48%
25.8% (16.3%)
10.5%
Excluding impact of
foreign exchange
3
Net Sales (by Product Group)
(Unit: Billion yen)
64.3
11.3
14.9
75.5
12.1
+11.1
+0.8
19.1
+4.2
7.5
+0.7
6.9
31.2
Q1 FYE/Mar. 2007
36.7
+5.5
Q1 FYE/Mar. 2008
Consolidated total: 17.3% growth
CV and vascular grafts
(G/R: 7.0%)
Interventional products
(G/R: 27.8%)
Home health care products
(G/R: 9.6%)
General hospital products
(G/R: 17.8%)
4
Details of S.G.A Expenses
(Unit: Billion yen)
(% in change)
24.5
+2.1
3.8
-
2.3
2.1
+0.1
+0.2
22.4
3.8
2.2
1.9
7.8
6.7
Q1 FYE/Mar. 2007
8.8
7.4
+1.0
+0.8
R&D
(+0.5%)
Sales promotion and
advertising (+4.2%)
Logistics
(+11.6%)
Personnel (+12.9%)
Others
(+11.5%)
Q1 FYE/Mar. 2008
S.G.A Expenses rate
34.8%
32.5%
▲2.3pt
5
Topics
6
Terumo’s Activities
in European Market
7
WW Medical Device Market
Europe is the second largest market following America
＜Market scale＞
Europe： US$ 63B
China 7% Asia 2%
Japan 9%
Americas
Europe
34%
47%
*Global market in 2005: US$185B
Reference：Datamonitor (2006); Espicon (2005)
8
Sales in the European Market
Billion yen
50
CAGR 16.8%
45
40
35
30
CAGR 8.9%
25
20
15
10
Mar. 2000 Mar. 2001 Mar. 2002 Mar. 2003 Mar. 2004 Mar. 2005 Mar. 2006 Mar. 2007
9
Sales in the European Market
Europe
Asia &
Middle east
Asia &
Middle east
12％
Europe
17％
Americas
Japan
Japan
Sales in FYE Mar. 2000
Americas
Sales in FYE Mar. 2007
10
Sales by Business in the Last 5 Years
Billion yen
◆ Cardiovascular business has grown drastically
◆ General hospital products have shown steady sales
50
Cardiovascular
products
40
General hospital
products
30
20
CAGR 16.8%
10
FYE Mar. 2003
– FYE Mar.2007
0
Mar. 2003 Mar. 2004 Mar. 2005 Mar. 2006 Mar. 2007
11
Broad Product Line-up in Europe
Interventional
cardiology
Angiographic catheter
○
PTCA balloon
○
Bare stent
○
Drug Eluting Stent
Neuro Intervention
Cerebral aneurysm coil
Peripheral
Intervention
Stent for peripheral vessels
Cardiac ･ Vascular
Surgery
○
Stent graft
○
Artificial vessel
(with built-in valve)
○
Left ventricular assist system
○：On sale
：To be sold this fiscal year
12
Expanding to New Domains
Peripheral stent
Artificial vessel with
built-in valve
MISAGO
BioValsalva
◆ Especially useful for thighs and armpits
◆First-in-the-world
vascular grafts with built
in biological valve
‐ To be launched in Sep. 2007
‐ FYE Mar. 2008: 400M yen
(estimated)
13
B2B business in Europe
Sales
FYE Mar. 2007: 800M yen
K-pack Needles
（Packaged kits for pharmaceutical companies)
FYE Mar. 2008: 1,100M yen (estimated)
14
Sales Bases and Their Covering Area
東欧・ロシア
East Europe, Russia
and surrounding
countries
その周辺国
EU
area
ＥＵ圏
Scandianvia
East Europe and Russia
UK
Benelux
Germany
France
Spain
Italy
Turkey
15
Growth Driven by East Europe,
Russia, Turkey, etc.
Billion yen
45
East Europe,
Russia & Turkey
40
35
CAGR 20%
30
25
EU
20
CAGR 13%
15
10
Total
5
0
CAGR 14%
Mar. 2003
Mar. 2004
Mar. 2005
* Excluding sales by Vascutek
Mar. 2006
Mar. 2007
16
Other Topics
17
Business Collaboration and Mutual
Investment with KIRIN
Overview
◆Strengthen of joint R&D of prefilled syringes
◆Investigation of R&D of projects integrating the liposome (TERUMO) and
Drug (KIRIN) technology
◆Investigation of joint projects regarding treatment of chronic kidney disease
◆Terumo and the Kirin Group mutually acquire stocks equivalent to 10 billion yen
18
Prefilled syringes
Market in Japan
（Unit: Million syringes）
160
120
80
Terumo entered
the market
40
0
Mar. 20 0 0 Mar. 2 0 0 1 Mar. 2 0 0 2 Mar. 2 0 0 3 Mar. 2 0 0 4 Mar. 2 0 0 5 Mar. 2 0 0 6 Mar. 20 07
（Shipped syringe basis: From IMS data）
©2007 IMS Japan
Source： ＩＭＳ ＪＰＭ April 1999 to March 2007
All rights reserved
19
Prefilled syringes
Terumo’s Sales in Japan
（Unit: Billion yen）
14
12.9 billion yen
(estimated)
Contrast media,
“Magnescope”
12
Anticoagulant drug,
“Hepaflush”
10
8
6
Medical emergency
drugs
4
2
0
Mar.
2001
Mar.
2002
Mar.
2003
Mar.
2004
Mar.
2005
Mar.
2006
Mar.
2007
Mar.
2008
20
Prefilled syringes
Future Direction of Business
Shifting to highly added-value business
New business
◆ Increasing sales of
“MINOFIT”
◆ Increasing contrast
◆Higher value-added drugs
- Antibody drugs, vaccines,
anticancer agents, etc.
◆Higher value-added devices
- Improved safety and operability
- Optimization of each drug
agent share
◆Expansion and promotion of
partnerships
Current
products
21
Left Ventricular Assist System,
“DuraHeart”
• Europe
– First shipment in July, sales planned
to start in Q2
• America
– Clinical trial application planned within
this fiscal year
• Japan
– Selected as an early approval item
22
Drug Eluting Stent “Nobori”
• Europe
– Applied for CE Mark
• Japan
– Clinical trial started on July 4
• Asia
– First shipment in July,
first sales commenced
23
Summary
•
Good start with double-digit growth in both sales and
profits
•
Uncertainty including effects of foreign exchange
persisting, allowing for no optimism
•
No revision of projected business results at this time
24
IR Contact
TERUMO Corporation
Corporate Communication (IR) Dept.
E-mail: [email protected]
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.
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