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

Financial Results for the 2nd Quarter (First Half) of Fiscal Year Ending March 31, 2023 (FY2022)

November 10, 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.

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FY22 Q2 Results Highlights

Revenue

First time exceeding 200 billion yen; highest-ever revenue

Number of procedures and healthcare demand recovered, all regions outside Japan grew year-on-year even when excluding FX

Plasma Donation System "Rika" sales began

Operating Profit

Despite cost increases due to inflation, gross profit grew year-on-year in double digits

Portfolio alignment (A part of Cell Therapy Technologies in TBCT)

Adjusted operating profit bounced back to increase year-on-year

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P&L Results

Revenue was 400 billion yen, gross profit exceeded 200 billion yen for highest-ever result

Operating profit includes 3.5 billion yen loss from sale of autologous cell preparation business In adjusted operating profit, Q2 standalone returned to year-on-year increase

	100M JPY	FY 21	FY 22	Change vs.	Change
	Q2 YTD	Q2 YTD	FY21 Q2	excluding FX
		impact
	Revenue	3,446	4,033	17%	5%
	Gross Profit	1,862	2,070	11%	2%
	（%）	(54.0%)	(51.3%)
	SG&A Expenses	955	1,171	23%	9%
	（%）	(27.7%)	(29.0%)
	R&D Expenses	247	297	20%	8%
	（%）	(7.2%)	(7.4%)
	Other Income and	-2	-42	-	-
	Expenses
	Operating Profit	659	560	-15%	-16%
	（%）	(19.1%)	(13.9%)
	Adjusted Operating Profit	741	704	-5%	-10%
	（%）	(21.5%)	(17.5%)
	Profit before Tax	653	546	-16%
	（%）	(18.9%)	(13.5%)
	Profit for the Year	500	403	-19%
	（%）	(14.5%)	(10.0%)
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FY21	FY22	Change vs.
Q2	Q2	FY21 Q2
1,729	2,060	19%
920	1,054	15%
(53.2%)	(51.1%)
490	605	23%
(28.4%)	(29.4%)
130	157	20%
(7.5%)	(7.6%)
-3	-37	-
296	255	-14%
(17.1%)	(12.4%)
339	345	2%
(19.6%)	(16.8%)
293	250	-15%
(16.9%)	(12.1%)
221	179	-19%
(12.8%)	(8.7%)

Operating profit variance analysis (Q2)

	by incrementG/P increasesales	margin:Gross	reimbursement	increase, Price	increase: SG&A	increasespend R&D
	revisionprice
			+5
			-7
FY21 Q2	FY21 Q2
Operating	Adjusted
Profit	Operating
	Profit

FX
impact
255

FY22 Q2	FY22 Q2
Adjusted	Operating
Operating	Profit
Profit

(100M JPY)

G/P increment by sales increase:

Stability increase same amt. as Q1 Gross margin:

Inflation impact increases, but mix steadily improving, impact was similar as Q1

Price:

Price increase impact more than Q1

SG&A, R&D increase:

Within plan; control while spending as necessary in 2nd half

FX:

Yen depreciation more than Q1

©TERUMO CORPORATION

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