Core Viewpoint - Terumo, a Japanese medtech company, emphasizes the importance of quality in medical devices, particularly in vascular access, highlighting its guidewire as a gold standard in the industry [2][3][4]. Group 1: Company Overview - Terumo is represented by CEO Hikaru Samejima at the JPMorgan Healthcare Conference, marking a significant opportunity for the company to present its vision and innovations [2]. - The company has a long-standing history, with its guidewire being used in the largest number of procedures over the past 40 years, underscoring its reliability and impact on patient recovery [3]. Group 2: Product Significance - The guidewire, while appearing as a simple product, plays a crucial role in medical procedures, significantly influencing patient outcomes [3]. - Terumo's commitment to quality ensures that its medical devices are reliable and effective in daily medical settings, which is essential for patient safety [4].

Terumo (OTCPK:TRUM.Y) FY Conference January 12, 2026 08:15 PM ET Company ParticipantsJin Hagimoto - CFOHikaru Samejima - CEOConference Call ParticipantsNone - AnalystOperatorGood evening. Thank you for joining us. I'm Naoki Sato from J.P. Morgan. Welcome to J.P. Morgan Healthcare Conference, Terumo's presentation. Again, it's my pleasure to be introducing Terumo. From the company, we have CEO Hikaru Samejima for the presentation, and after that, we'll have a Q&A session. With that, I will pass on to Mr. Sam ...

Financial Data and Key Metrics Changes - The company reported a $10 million pull forward in revenue for Q2, which was a result of shifts in customer demand [4][6] - Sales beat expectations by $2 million, and guidance for CRM and N was raised from low to mid-single digits to mid-single digits [4][8] - The backlog at the end of Q2 was approximately $700 million, consistent with the previous quarter [6][7] Business Line Data and Key Metrics Changes - Cardiac Rhythm Management (CRM) growth was guided to mid-single digits, reflecting a tightening of previous guidance [8][11] - CMV (Cardiac and Vascular) segment growth was approximately 14% in Q1 and normalized to 14% in Q2, with expectations of slower growth in the second half [9][10] - The company anticipates mid-teens growth for CMV this year, indicating a strong year-over-year performance [11] Market Data and Key Metrics Changes - The renal denervation (RDN) market is currently small, estimated at less than $100 million globally, with potential growth to $200 million to $250 million next year [18][19] - The company has good visibility into customer demand, with a rolling 12-month forecast provided by customers [12][13] Company Strategy and Development Direction - The company is focusing on expanding its capabilities in coatings through recent acquisitions, which are expected to enhance customer relationships and upselling opportunities [38][39] - The strategic focus remains on four growth markets: electrophysiology, structural heart, neurovascular, and neuromodulation, which are considered dynamic and attractive [45][51] Management's Comments on Operating Environment and Future Outlook - Management noted no significant changes in demand from customers amid macro volatility [16] - The company is optimistic about returning to pre-COVID gross margins of 31% and operating margins of 18.8% through continuous improvement and operational efficiency [60][61] Other Important Information - The company has no immediate plans for significant capacity expansions but has recently expanded two facilities in Ireland [48] - Pricing is expected to be neutral on average, with 70% of the business under contract [49] Q&A Session Summary Question: What is the thought process behind the guidance? - Management explained that the guidance remains unchanged due to good visibility into order patterns and a consistent backlog [6][8] Question: What are the components driving deceleration in CMV? - Management indicated that variability in product launches and timing of demand are influencing the growth rates [10][11] Question: How is the company addressing capacity for new products? - Management confirmed that they have long-term visibility into customer demand and plan capacity years in advance to avoid constraints [21][22] Question: What is the outlook for the RDN market? - Management sees potential in the RDN market but acknowledges it is currently a small part of the business [18][19] Question: How does the company view the pricing environment? - Management expects pricing to be neutral on average, with opportunities for adjustments in the non-contracted portion of the business [49] Question: What is the company's approach to M&A? - Management emphasized that M&A is strategic, focusing on capabilities that fill gaps, with a responsible approach to valuations [63][64]

Financial Data and Key Metrics Changes - The company reported a $10 million pull forward in revenue for Q2, which was a result of shifts in customer demand profiles [4][5] - The sales beat by $2 million, and the guidance for CRM and N was raised from low to mid-single digits to mid-single digits for the full year [4][5] - The backlog at the end of Q2 remained stable at approximately $700 million, providing good visibility for the next two quarters [5][6] Business Line Data and Key Metrics Changes - Cardiac Rhythm Management (CRM) growth was guided to mid-single digits, with a notable deceleration in CMV growth expected in the second half of the year [7][10] - CMV grew about 14% in Q1 and normalized for pull forward, also grew about 14% in Q2, implying a guidance of 7% for the second half [8][10] - The company expects mid-teens growth for CMV this year, indicating a strong year-over-year performance [10] Market Data and Key Metrics Changes - The renal denervation (RDN) market is currently small, estimated at less than $100 million globally, with potential growth to $200 million to $250 million next year [14][15] - The company sees opportunities in the tricuspid and mitral markets, which are part of the structural heart focus [34][35] Company Strategy and Development Direction - The company is focused on maintaining good visibility into customer demand and has a long-range planning process to ensure capacity meets future growth [18][40] - Recent acquisitions in coatings capabilities are expected to enhance customer relationships and create upselling opportunities [28][29] - The company aims to return to pre-COVID gross margins of 31% and operating margins of 18.8% through continuous improvement and operational efficiency [39][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying strength of the markets they operate in, particularly in electrophysiology, structural heart, neurovascular, and neuromodulation [32] - The pricing environment is expected to be neutral on average, with 70% of the business under contract [33] Other Important Information - The company has a strong pipeline for M&A, with valuations trending lower than in previous years, and continues to seek strategic acquisitions [42][43] - The company is not currently planning any significant capacity expansions but has made recent expansions in Ireland [33] Q&A Session Summary Question: What is the outlook for cardiac rhythm management growth? - The guidance assumes 8% growth in the second half versus 2% in the first half, with new products and customer demand contributing to this acceleration [19] Question: How does the company view the renal denervation market? - The RDN market is seen as having potential tailwinds, with expectations of significant growth in the coming years [14][15] Question: What is the company's strategy regarding M&A? - The company is focused on strategic acquisitions that fill capability gaps and has a responsible approach to valuations [42][43]