"Financial Results for the First Half of FYE 3/2022"(969.4 KB)

Financial Results for the First Half of Fiscal Year Ending March 31, 2022 (FY2021)

November 4, 2021

Naoki Muto

Chief Accounting and Financial Officer

Terumo Corporation

Safe Harbor for 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 performance. Accordingly, it should be noted that actual results may differ from those forecasts or projections due to various factors. Factors affecting to actual results include, but are not limited to, changes in economic conditions surrounding Terumo, fluctuations of foreign exchange rates, and state of competition.

The market share information in this presentation is partly derived from our own independent research.

Information about products (including products currently in development) which is included in this material is not intended to constitute an advertisement or medical advice.

Terumo Corporation

Investor Relations Dept.

E-mail: [e-mail]

©TERUMO CORPORATION

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Highlights

FY21 Q2/Q2 YTD results

Revenue: Highest-ever quarterly and half-year revenue. Steady recovery in demand for Cardiac & Vascular and the revenue increased in the other two companies as well

Adjusted Operating Profit: Highest-ever Q2 and half-year adjusted operating profit. Although there were some negative factors as expected, the revenue increased in all companies. Expenses utilized as planned in Q2

FY21 guidance

The current guidance is reiterated. The annual dividend forecast per share increased by 2 JPY to 32 JPY

Continuous recovery in healthcare demand, including the number of procedures anticipated. Although some risks remain such as supply chain interruption, increase in the cost of raw materials, shipping and freight, we aim to achieve the current guidance by expense control

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P&L Results

Revenue: Highest-ever quarterly and half-year revenue. Steady recovery in demand for Cardiac & Vascular, especially for TIS. Despite the negative impact on Cardiac & Vascular from the COVID-19 resurgence mainly in US and EU in Q2, the revenue increased in all companies

Adjusted Operating Profit: Highest-ever Q2 and half year adjusted operating profit. The negative impacts of volume-based procurement (VBP) in China and lowered production level were as expected and the profit increased in all companies. In accordance with eased movement restrictions due to the spread of vaccines mainly in US and EU, expenses utilized as planned in Q2

	100 M JPY	FY20 Q2 YTD	FY21 Q2 YTD	YoY%	YoY% (FXN)		FY20 Q2	FY21 Q2	YoY%
	Revenue	2,833	3,446	22%	17%	1,520	1,729	14%
	Gross Profit	1,505	1,862	24%	18%	816	920	13%
	(Gross Profit%)	(53.1%)	(54.0%)			(53.7%)	(53.2%)
	SG&A Expenses	859	955	11%	7%	458	490	7%
	(SG&A Expenses%)	(30.3%)	(27.7%)			(30.2%)	(28.4%)
	R&D Expenses	231	247	7%	4%	119	130	9%
	(R&D Expenses%)	(8.2%)	(7.2%)			(7.8%)	(7.5%)
	Other Income and Expenses	4	-2	-	-	-1	-3	-
	Operating Profit	418	659	57%	47%	238	296	25%
	(Operating Profit%)	(14.8%)	(19.1%)			(15.6%)	(17.1%)
	Adjusted Operating Profit	513	741	45%	36%	296	339	15%
	(Adjusted Operating Profit%)	(18.1%)	(21.5%)			(19.5%)	(19.6%)
	Profit before Tax	407	653	61%		228	293	28%
	(Profit before Tax%)	(14.4%)	(18.9%)			(15.0%)	(16.9%)
	Profit for the Year	318	500	57%		178	221	24%
	(Profit for the Year%)	(11.2%)	(14.5%)			(11.7%)	(12.8%)
	Average Exchange Rate(USD/EUR)	107JPY/121JPY	110JPY/131JPY				106JPY/124JPY	110JPY/130JPY
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Adjusted Operating Profit Variance Analysis (Q2 YTD)

(100 M JPY)

	Gross
	margin
		Price
		-20				FX
		JP NHI	SG&A		R&D
		-1		MDR	Others
				0
				IT
		Production
G/P		0
	Adjustment
increment

by sales increase

FY20	FY20	FY21	FY21
Q2 YTD	Q2 YTD	Q2 YTD	Q2 YTD
OP	Adj. OP	Adj. OP	OP
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G/P increment by sales increase:

The revenue increased in all companies compared with FY20 Q2 YTD impacted by COVID-19

Gross margin:

Positive impact of product mix improvement from sales increase of Cardiac & Vascular, especially of TIS

Price:

Decline mainly due to VBP in China for TIS products

SG&A:

Large increase compared with FY20 Q2 YTD in which expense usage was slow due to COVID-19

FX:

Positive impact from flow mainly by EUR and CNY. Small impact from stock