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

February 9, 2023

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

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Highlights

Revenue

Highest-ever as a three-month result

All regions including China grew year on year even when excluding FX

Operating Profit

Exceed 30% growth year on year and much more growth quarter on quarter Assertive in pricing with expanding segments and regions

Portfolio rationalization (nutrition business) as well as Q2

Revision of FY22 guidance

Reflect FX impact to sales (Q4 guidance rate; USD 130JPY/Euro 140JPY) Downward profit due to macro environment impact and progress of new driver

©TERUMO CORPORATION

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P&L Results

Revenue: Highest-ever quarterly and Q3 YTD revenue

Operating profit in Q3 stand alone increased significantly both YoY and QoQ, including profit from sale of the nutrition business that was part of HCS in TMCS

100M JPY

FY 21 Q3 YTD

FY 22 Q3 YTD

Change

Change

excluding FX

impact

Revenue

5,235

6,180

18%

6%

Gross Profit

2,788

3,183

14%

3%

（%）

(53.3%)

(51.5%)

SG&A Expenses

1,463

1,785

22%

9%

（%）

(27.9%)

(28.9%)

R&D Expenses

375

456

22%

8%

（%）

(7.2%)

(7.4%)

Other Income and Expenses

-6

-7

-

-

Operating Profit

945

935

-1%

-6%

（%）

(18.0%)

(15.1%)

Adjusted Operating Profit

1,072

1,096

2%

-6%

（%）

(20.5%)

(17.7%)

Profit before Tax

930

921

-1%

（%）

(17.8%)

(14.9%)

Profit for the Year

717

702

-2%

（%）

(13.7%)

(11.4%)

Average exchange rate (USD/EUR)

111JPY/131JPY

136JPY/141JPY

FY21 Q3

FY22 Q3

Change

1,788

2,147

20%

926

1,114

20%

(51.8%)

(51.9%)

507

615

21%

(28.4%)

(28.6%)

128

159

24%

(7.2%)

(7.4%)

-5

35

-

286

375

31%

(16.0%)

(17.5%)

330

392

19%

(18.5%)

(18.2%)

278

375

35%

(15.5%)

(17.5%)

217

299

38%

(12.1%)

(13.9%)

114JPY/130JPY

142JPY/144JPY

©TERUMO CORPORATION

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Operating Profit Variance Analysis (Q3)

(100M JPY)

Pricing

Gross

+10

FX

G/P

margin

Reimbur-

SG&A

R&D

increment

sement

by

price, etc.

sales

-8

increase

G/P increment by sales increase:

375

Because of demand recovery and new products

Gross margin:

Continuous macro environment impact

Price:

Price increase doubled compared to Q2

SG&A, R&D increase:

Enhanced SG&A control

FX:

Appreciating yen at end of Q3

FY21 Q3

FY21 Q3

FY22 Q3

FY22 Q3

Operating

Adjusted

Adjusted Operating

Profit

Operating

Operating

Profit

Profit

Profit

©TERUMO CORPORATION

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Terumo Corporation published this content on 09 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 February 2023 06:22:06 UTC.