"Roadmap to FY16" and Beyond
Terumo Corporation
President and CEO
Yutaro Shintaku
May 10,10 2016

FY15: Achieved Record‐high Profits Net Sales

525 0 BJPY
525.0

 Operating Income(Excl. Amortization)

101.9 BJPY

 Operating Income

81.7 BJPY Ordinary Income

73.1 BJPY

 Net Income

50.7 BJPY© Terumo Corporation

Marked arecord highof both sales
andd profit
fit

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Achieved Target of "Roadmap to FY16" a Year Ahead of Schedule
Operating margin excluding amortization

Actual results "Roadmap to FY16"
20%*
20%

20%
19%

18%
18%18%

17%

17%

17%
16%
15%
FY13

FY14

Assumed exchange rate when starting"Roadmap to FY16"
USD=100JPY, EUR=140JPY
FY15© Terumo Corporation

FY16 Target
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FY13‐15: Performance Improvement by Business Segment
 Cardiac and Vascular: Drove the group's growth and increase in profit
 General Hospital: Toward steady recovery through downsizing low profit
business
 Blood Management: Minimized the impact of price declines
Sales (billion yen)

Business Profit
25%

300

25%

21%

20%

20%
16%

200
100

CAGR
11%

15%

14%

13%

10%
CAGR
‐1%

5%
CAGR6%FY13 FY15
Cardiac and Vascular

General Hospital

0%Blood Management© Terumo Corporation

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FY13‐15: Continuous Growth in Overseas Business Expand business in highly profitable and growing markets: US and China
 Infrastructure development in growing market: India Downsizes low profit business in Europe and Latin America: Rises resistance to FX
fluctuations
Sales(billion yen)

140

CAGR
15%

120
100

CAGR
18%

80
60
4020

FY13CAGR29%

FY15USChina© Terumo CorporationIndia
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Environmental Changes
Macro‐economyy
Healthcareenvironment Prolonged slow growth FX fluctuation, financial risk
 Expansion in medical beneficiaries, increase in demand due toaging society Required higher medical efficiency
 Healthcare integration and oligopolization mainly in US

Competitivestructure Needs in support
pp to hospital'sp
bundled ppurchase offerand cost management
 Consolidation among top‐tier companies

New growthh strategy isi required.
i d© Terumo Corporation

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Continuing Large‐scaled Consolidation in Med‐tech Market2014
Company

2016
Company

Sales (BUSD)

Sales (BUSD)

1

126.8

2

226.63315 5
15.5

44

15.3

55

11 6
11.6

66

10.5

7788

7.7

997.1

10107.1

1111121213

9.0

4.9
Terumo47
4.7

Terumo© Terumo Corporation

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Discussion Points of New Growth Strategy
 "Sustainable and Profitable Growth" is always grass roots.
• Expandspglobalgpresence
pin priority
py areas In Japan, maintain the company's top level position firmly• Respond the increase in healthcare demands driven by aging society• Translate the group's broad business portfolio into growth opportunities

 R&D, M&A• Continuously strengthen internal development capability• Focus on acquisition of early stage technologies
pthe opportunities
ppof large‐scalegacquisitionq• Continuouslyy explore

Plans to announce mid‐to‐long term growth strategy in Dec.
© Terumo Corporation

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IR Contact
Terumo Corporation
Corporate Communication (IR) Dept.
E‐mail: kouhou_terumo01@terumo.co.jp
Among the information that Terumo discloses, the forward‐looking statements including
financial projections are based upon our assumptions using information available to us at thetime 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 tovarious factors. Factors affecting to actual results include, but are not limited to, changes in
economic
i conditions
di isurrounding
di TTerumo, flfluctuations
ioff foreignf i exchange
hrates, andd stateof competition.
The market share information in this presentation is partly derived from our own
independent research.

© Terumo Corporation

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