Terumo : Financial Results for the First Quarter of FYE 3/2023 (PDF 1.06 MB)

Financial Results for the First Quarter of Fiscal Year Ending March 31, 2023 (FY2022)

August 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. 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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FY22 Q1 Results Highlights

Revenue

Positive year-on-year growth for all three companies, highest-ever quarterly revenue

Recovery in healthcare demand including number of procedures in addition to FX (yen depreciation) contribution, resulting in double-digit growth in all regions outside of Japan

Positive growth in all regions, even when excluding FX impact

Operating profit

Gross profit amount grew 8% due to revenue increase, even market conditions (inflation) caused a rise in costs

Sales promotion and R&D activities resumed emerging from COVID-19 pandemic, with the comparable period having still been affected by COVID-19

Operating profit amount decreased 16%, but grew broadly quarter-on-quarter

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P&L Results

Revenue: Recovery in healthcare demand including number of procedures, return to growth trend. Positive FX (yen depreciation) impact, highest-ever quarterly revenue

Operating profit: Gross profit increased, even market conditions (inflation) caused a rise in costs. Meanwhile, activities resumed as planned amid emergence from COVID-19, resulting in 16% OP decreased.

100M JPY	FY21 Q1	FY22 Q1	YoY%	YoY% (FXN)
Revenue	1,717	1,973	15%	5%
Gross profit	943	1,016	8%	2%
（%）	(54.9%)	(51.5%)
SG&A Expenses	465	566	22%	10%
（%）	(27.1%)	(28.7%)
R&D Expenses	117	141	20%	11%
（%）	(6.8%)	(7.1%)
Other Income and Expenses	1	-6	-	-
Operating Profit	362	304	-16%	-14%
（%）	(21.1%)	(15.4%)
Adjusted Operating Profit	402	359	-11%	-11%
（%）	(23.4%)	(18.2%)
Profit before Tax	360	297	-18%
（%）	(21.0%)	(15.0%)
Profit for the Year	279	224	-20%
（%）	(16.2%)	(11.4%)
Average exchange rate (USD/EUR)	110JPY/132JPY	130JPY/138JPY

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Operating Profit Variance Analysis

(100M JPY)

G/P	Gross	Price
increment margin	+2
by sales
	JP NHI	SG&A	FX
increase
		Price		R&D
		-7

FY21 Q1	FY21 Q1	FY22 Q1	FY22 Q1
Operating	Adjusted	Adjusted	Operating
Profit	Operating	Operating	Profit
	Profit	Profit

G/P increment by sales increase:

Sales increase due to demand recovery and growth, new products launched

Gross margin:

Impact of inflation, etc. exceeded positive factors such as mix improvement

Price:

Reimbursement price revision impact (in Japan) partially mitigated by price increase

SG&A, R&D:

Resumption of business activities (gradual in COVID-19-affected previous year)

FX:

Flow exceeded stock

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