The New Mid-Term Plan (FY2013 FY2016)

Transcription

1 The New Mid-Term Plan (FY2013 FY2016) Sustainable & Profitable Growth Terumo Corporation Executive Officer Strategy Planning Department Shouji Hatano Terumo Corporation

2 Market Dynamics Slower market growth, tighter regulations in the key regions Developed Market (2-4%):Slower growth and constraints on rising healthcare cost Emerging Market (10-14%):Sustaining fast growth but growing downward pressures on prices US: Tightened FDA Quality System Regulation (QSR) and its inspections China: Unique regulation and standards, distribution reform, and domestic preferential policies Markets in which we compete still have growth opportunities Broadened application of vascular intervention Spread use of therapeutic apheresis Growing demand for safety devices to prevent medical malpractices and hospital acquired infections 2/31

3 Continue to Focus on Our Core Competencies Our core competencies Unique business model: diversified product portfolio comprised of base products and innovative high-end products Unique internal technologies + ability to incorporate external technologies The New Mid-Term Plan: Sustainable & Profitable growth Expand sales of flagship Base products Take advantages of the growing demand in China/India/Brazil (with the intervention access devices) Win market shares by launching new products (i.e. infusion system & blood component collection system) Accelerate the growth of High-End products Launch new products in Neuro and Peripheral intervention product lines Fasten R&D process by utilizing in-house as well as external technologies 3/31

4 Building upon the Unique Business Model High-End: Innovation, High Growth/High Profitability, Short lifecycle CASH BRAND IMAGE/TECHNOLOGY Base: Continuous Improvement, Stable growth/high Profitability, Long lifecycle 25% 75% +18% CAGR +6% CAGR High-End (GP: >60%) Base (GP:50%) 33% 67% Cardiac & Vascular Blood Managem ent General Hospital H B H B H B Cardiovascular Neurovascular Peripheral Intervention Access Devices(Guidewire) Automated Blood Component Processing Therapeutic Apheresis Automated Blood Component Collection Blood Bags Prefilled Syringes Prefillable Syringes Infusion System Intervention Therapeutic Devices FY12 4/31 FY16

5 Sustained Growth & Return to OP Margin 20% (BJPY) Net Sales Operating Profit % CAGR +16% CAGR (BJPY) * *64.2 *76.3 * * % 19.6% 19.6% 16.6% 18.5% FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FX: US$/EUR = 95/123 FX: US$/EUR = 95/123 *Excl. amortization of goodwill and intangibles with related to the acquisition of CaridianBCT 5/31

6 The Mid-Term Plan Financial Targets BJPY FY12 (US/EUR=83/107) FY16 (US/EUR=95/123) CAGR (FY12-FY16) CAGR w/o FX Net Sales % +8% Operating Profit *Excl. Amortization (% of Sales) 66.8 (16.6%) (20.7%) +16% +13% Operating Profit (% of Sales) 53.2 (13.2%) (18.1%) +19% +16% *Excl. amortization of goodwill and intangibles with related to the acquisition of CaridianBCT 6/31

7 Sales by Segment: Expanding C&V and BM General Hospital FY12 Cardiac & Vascular Sales by Segment General Hospital FY16 Cardiac & Vascular % BJPY 42% 32% BJPY 48% 19% 20% Blood Management 74.7 Blood Management BJPY, FY12:US$/EUR=83/107,FY16:US$/EUR=95/123 7/31

8 Sales by Segment: Achieving Profitable Growth 25% Cardiac & Vascular Blood Management OP Margin % 20% 15% General Hospital Sales Growth (FY12-16) OP Margin% (FY16) Sales Growth (FY08-12) OP Margin% (FY12) 8/31 10% 0% 5% 10% 15% Sales Growth (FY12-16 CAGR) (Note) Without FX impact, OP Margin% before D&A

9 Sales by Region: Expanding Sales Outside of Japan FY12 Asia/Other Sales by Region China +22% CAGR FY16 Asia/Other +10% CAGR China Americas 22% 4% 9% BJPY 46% Japan 25% 7% 9% BJPY 39% Japan +5% CAGR Europe 19% Americas +13% CAGR Europe +12% CAGR 20% 54% 61% BJPY, FY12:US$/EUR=83/107,FY16:US$/EUR=95/123 9/31

10 The Mid-Term Plan Key Strategies Expand market share of the base products and launch the high-end products on time R&D: Focus resources into the key product areas Production: Drive down manufacturing cost via intensive CAPEX in Asia Finance: Balance improvement on financial position & growth investments 10/31

11 C&V: Key Strategies High-end Deliver full Peripheral intervention product lines Misago +PTA Balloon(co-development) + Drug Coated Balloon(DCB) Deliver full Neurovascular intervention product lines Leverage Microvention s R&D capability Secure presence and improve profitability of coronary intervention Launch new Drug Eluting Stent (DES) Enter the U.S. therapeutic intervention devices market Base Launch Balloon catheters (Coronary, Peripheral) and stent (Peripheral) Further expand intervention access devices Leverage high product competitiveness and TRI penetration Restructure sales force and channel in the emerging markets 11/31

12 C&V: Enter the Highly Growing Areas and Offer TRI solution Access/TRI Coronary Neuro Broadening Portfolio Peripheral Ablation 12/31

13 C&V: Full-line in Peripheral Intervention Peripheral Stent (Above the knee/sfa) PTA Balloon Catheter (Above knee) (Below knee) Drug Coated Balloon Catheter Applying unique coating technique FY13 FY14 FY13 FY15 FY15 FY14 FY16 ( Launched in FY08) FY16 FY14 13/31

14 C&V: Full-line in Neurovascular Intervention Flow-diverting Stent Coil Assist Stent Occlusion Balloon Catheter FY13 FY15 FY16 FY13 FY14 FY15 ( Launched in FY12) FY13 ( Launched in FY12) 14/31

15 C&V: Expand Presence in Coronary Intervention New Drug Eluting Stent (Fully developed in-house) FY14 FY16 New PTCA Balloon Catheter FY13 FY14 PTCA Balloon Catheter for US FY15 15/31

16 C&V: Expand into New Field of Intervention Renal Sympathetic Denervation System (RSD) Asia& South America FY13 FY14 FY15 RSD for TRI technique Asia& South America FY13 FY14 FY15 Liver Cancer Ablation System FY13 16/31

17 Blood Management: Key Strategies High-end Develop market with the automated blood component processing system Saves time/labor/space and increases output/consistency/quality Provides viable solution to the existing processing methods worldwide Expand therapeutic apheresis system Base Promote upgrades from COBE Spectra to the industry s next generation, Optia Expand treatment options by delivering multiple protocols for Optia Capture the rising demand of automated blood component collection Developed Markets: growing demand for higher efficiency & turnover rate due to scarce platelet supply Emerging Markets: healthcare system catch-up accelerate introduction of not only whole blood but also blood component collection 17/31

18 Blood Management: Transfusion & Therapy Transfusion Whole Blood Blood Component Collection Collection Processing Pathogen Reduction Improved output and efficiency Trima Expand in the emerging markets TACSI / Reveos Improved safety Mirasol Data Management System: Vista & TOMEs Upgrade to the new system Plasma Exchange Therapy Cell Therapy Therapy Replace plasma which causes diseases (eg. treatment of autoimmune disease) Collecting specific cells from blood to use for cell therapy Optia Increase adoption of established as well as develop new uses Take advantage of newly established therapy 18/31

19 General Hospital: Key Strategies High-end Develop Drug & Device business worldwide Base Japan: expand pre-filled syringe portfolio via partnership with local pharmaceuticals Global: commence supply of PLAJEX to global pharmaceuticals Create value by combining needle technologies, making PLAJEX suitable for various drug properties and self-injectors Introduce the first ever injectable acetaminophen in Japan Increase market share in Japan by introducing lines of new products in infusion system Launch new smart infusion pump, needle-less system, and IV catheter to provide safety solution to the entire infusion process Leverage the leadership position with the infusion pump to expand sales of the new product lines Offer total supports for better infusion management (training, consulting etc) 19/31

20 General Hospital: Key Strategies Development Japan Expand pre-filled syringe portfolio via partnership w/ pharmaceuticals Outside of Japan Supply pre-fillable syringes to global pharmaceuticals Value creation by combining needle technologies suitable to certain drug properties & self-injection Evolution Intradermal injection needle for increased vaccine efficacy Tapered needle enabling high-viscosity drugs to be injected w/ smaller resistance Prefillable syringe *Only product prototype the final product may appear differently from the image Nanopass technology 20/31

21 Strategies in the Key Emerging Markets China Distribution reform / shift to direct marketing Expand AngioCare RSD worldwide Production: sustain cost competitiveness through process automation India Establish local subsidiary Recruit local top manager & enhance sales force Expand intervention business Brazil Switch to direct sales with intervention Enter peripheral intervention market, spread use of TRI Seek possibilities of local production 21/31

22 R&D: Reinforcement and Focused Investments Reinforce the project management capability Take advantages of global R&D network and strategic alliances Focus resources onto the intervention product lines Other General Hospital 13% Blood Management FY12 % of sales: 6.7% 22% 17% 27.1 BJPY 28% 20% R&D Expense by Segment FY16 % of sales: 7.2% Intervention CV Other General Hospital 8% Blood Management 19% 17% CV 42.0 BJPY 10% 45% Intervention 22/31

23 Production: Drive Down Cost via Intensive CAPEX in Asia Intensive CAPEX in Asia to establish the Production Centre Increased capacity/production transfer Philippines Vietnam (intervention products transferred from Japan) New factory in Vietnam for Blood Management Expected outcome of cost reduction initiatives Improved gross profit margin%: > 3 points in FY2016 Absorb majority of the JP reimbursement cuts and price erosion Accelerate production transfer Production outside of Japan: 40% (FY12) more than 50% (FY16) Production in Japan will focus on supplying core raw materials New Yamaguchi factory (also as part of the BCP) 23/31

24 Finance: Improvement on Financial Position & Growth Investments Improve asset turnover: ROE >12% in the mid-long term Stable return to shareholders: Payout ratio 30% in the mid-long term Balance out growth investments, improve financial position and return to shareholders Dividend :50.0BJPY Payout Ratio 30% Debt Repayment App BJPY FY13-16 accumulated cash allocation Operating CF BJPY Growth Investments App BJPY FY13-16 CAPEX & depreciation The gap b/w CAPEX & depreciation will be smaller in FY16 (BJPY) CAPEX Depreciation FY12 FY14 FY16 FX: FY16:US$/EUR=95/123 24/31

25 Beyond the Mid-Term Plan Cardiac & Vascular Peripheral: further broaden product lines (Misago DES) Neuro: enter ischemic stroke market (Blood Clot Retriever) Coronary: expand presence (Bioabsorbable Stent, Intravascular Imaging System) Blood Management Expand pathogen reduction system (Mirasol) worldwide Introduce data management system (Vista/TOMEs) Data management solution to provide better efficiencies and quality of the entire blood management process ( vein-to-vein ) General Hospital Expand prefillable syringes worldwide Improve cost competitiveness of the transfusion business 25/31

26 26/31 APPENDIX

27 Product Development Pipeline: C&V - 1 Segment Product FY13 FY14 FY15 FY16 Balloon (above the knee) Stent (above the knee/sfa) Peripheral Balloon (below the knee) Stent (below the knee) Drug Coated Balloon Drug Eluting Stent after FY17 Coil Assist Stent Neuro Flow-diverting Stent Occlusion Balloon 27/31

28 Product Development Pipeline: C&V - 2 Segment Product FY13 FY14 FY15 FY16 New DES (Developed in house) New PTCA Balloon Catheter Coronary OFDI (Intravascular imaging system) Downsized introducer sheath for TRI PTCA balloon catheter for US Market Bioabsorbable stent after FY17 Ablation Renal sympathetic denervation system (RSD) RSD for TRI technique Asia Asia Latin America Latin America 28/31

29 Product Development Pipeline: Blood Management Segment Product FY13 FY14 FY15 FY16 Blood Management Automated blood component processing system (PRP method) Automated blood component processing system (BC method) Automated blood component collection system (plasma application) Data management system (TACSI application) Therapeutic apheresis system (Bone marrow stem cell application) Therapeutic apheresis system (Bone marrow stem cell and polymorphonuclear leukocyte application) 29/31

30 Product Development Pipeline: General Hospital Segment Product FY13 FY14 FY15 FY16 Pre-fillable syringe (PLAJEX) Global D&D Injectable Acetaminophen Infusion System Prefilled syringe (Intradermal needle) Needleless system Safety IV catheter Smart pump (infusion & syringe pump) Asia Asia 30/31

31 IR Contact Terumo Corporation Corporate Communication (IR) Dept. 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 on 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. 31/31