Terumo : "Financial Results for the Third Quarter of FYE 3/2022"(1.0 MB)

Financial Results for the Third Quarter of Fiscal Year Ending March 31, 2022 (FY2021)

February 9, 2022

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]

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Highlights

FY21 Q3/Q3 YTD results

Revenue: Highest-ever quarterly and Q3 YTD revenue. Continued recovery of demand in Cardiac & Vascular, steady performance in other companies

Adjusted Operating Profit: Over 20% profit increase in Q3 YTD, despite the negative effects anticipated at the beginning of the fiscal year, as well as effects of cost inflation and lower production level

Upward revision of FY21 guidance

Added 12.0 B JPY to revenue. No change in profits

Temporary decline in number of procedures and other healthcare demand is anticipated in Q4 due to COVID-19 resurgence. Also, despite some expected cost increase due to inflation and lower production level, we aim to achieve the guidance by expense control

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P&L Results

Revenue: Highest-ever quarterly and Q3 YTD revenue. Cardiac & Vascular demand recovery continued, especially in TIS. In Q3, despite normalized demand of thermometers and infection prevention products, disposable products demand further recovered and performance remained steady overall

Adjusted Operating Profit: Despite the negative impacts of production level adjustment and volume-based procurement (VBP) in China, as well as cost inflation and lower production level, product mix improvement and positive FX impact contributed to 21% YTD growth

	100 M JPY	FY20 Q3 YTD	FY21 Q3 YTD	YoY%	YoY% (FXN)		FY20 Q3	FY21 Q3	YoY%
	Revenue	4,486	5,235	17%	12%	1,653	1,788	8%
	Gross Profit	2,413	2,788	16%	10%	908	926	2%
(%)	(53.8%)	(53.3%)			(54.9%)	(51.8%)
	SG&A Expenses	1,307	1,463	12%	8%	447	507	13%
(%)	(29.1%)	(27.9%)			(27.1%)	(28.4%)
	R&D Expenses	359	375	4%	1%	128	128	0%
(%)	(8.0%)	(7.2%)			(7.7%)	(7.2%)
	Other Income and Expenses	6	-6	-	-	2	-5	-
	Operating Profit	753	945	25%	17%	334	286	-15%
(%)	(16.8%)	(18.0%)			(20.2%)	(16.0%)
	Adjusted Operating Profit	885	1,072	21%	13%	372	330	-11%
(%)	(19.7%)	(20.5%)			(22.5%)	(18.5%)
	Profit before Tax	749	930	24%		343	278	-19%
(%)	(16.7%)	(17.8%)			(20.7%)	(15.5%)
	Profit for the Year	586	717	22%		268	217	-19%
(%)	(13.1%)	(13.7%)			(16.2%)	(12.1%)
	Average Exchange Rate(USD/EUR)	106JPY/122JPY	111JPY/131JPY				105JPY/125JPY	114JPY/130JPY
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Adjusted Operating Profit Variance Analysis (Q3 YTD)

(100 M JPY)

Gross

margin

	Price
	-27
	JP NHI
	-2	SG&A				FX
				R&D
	Production	MDR		Others
G/P	Adjustment
-2

increment	IT
by sales
-2
increase

FY20	FY20	FY21	FY21
Q3 YTD	Q3 YTD	Q3 YTD	Q3 YTD
OP	Adj. OP	Adj. OP	OP
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G/P increment by sales increase:

The revenue increased in all companies, particularly Cardiac & Vascular, compared with FY20 Q3 YTD impacted by COVID-19

Gross margin:

Negative effects of cost inflation (freight, raw material, and labor cost), and lower production level, were exceeded by positive impact of product mix improvement from sales increase in Cardiac & Vascular, especially TIS

Price:

Decline mainly due to VBP in China for TIS products

SG&A:

Large increase compared with FY20 Q3 YTD in which expense usage was slow due to COVID-19

FX:

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