Takeda Pharmaceutical Co. Ltd. · TSE:4502
Takeda Pharmaceutical — Shareholder Meeting (December 2018)
22 slides from Takeda Pharmaceutical's shareholder meeting presentation, Dec 5, 2018
Slide 1: Creating a Values based, R&D driven Global Biopharmaceutical Leader
Creating a Values based, R&D driven Global Biopharmaceutical Leader December 5, 2018 Christophe Weber President & CEO Takeda Pharmaceutical Company Limited
Slide 2: Important Notice
Important Notice For the purposes of this notice, “presentation” means this document, any oral presentation, any question and answer session and any written or oral material discussed or distributed by Takeda Pharmaceutical Company Limited (“Takeda”) during the presentation. This presentation (inclu
Slide 3: Vision
VISION Our mission is to strive towards Better Health and a Brighter Future 2025 for people worldwide through leading innovation in medicine We serve the needs of our patients, wherever they are. We earn the trust of society and customers through Takeda-ism. We are recognized as best in class becaus
Slide 4: Values-based
Values-based Our long history since 1781 has shaped the values that are fundamental to the success of Takeda in the long term VALUES Integrity Fairness Honesty Perseverance We take action and make decisions by focusing on our four priorities, in order of: 1 2 3 4 Putting the patient Building trust R
Slide 5: Takeda has created a unique R&D engine
R&D-driven Takeda has created a unique R&D engine THERAPEUTIC AREA FOCUS Oncology, Gastroenterology, Neuroscience plus Vaccines PARTNERSHIPS & CAPABILITIES TRANSFORM OUR CULTURE R&D TRANSFORMATION KEY IMPERATIVES • Agile and lean • Dynamic and sustainable research and early development engine • Tran
Slide 6: Focused and lean footprint freeing up resources for pipeline development
R&D-driven With a very focused and lean footprint freeing up resources for pipeline development B O STON, M A S HO N A N , JA PA N SA N D I EGO, CA R&D Center Neuroscience Research, Specialized drug Oncology, GI Research T-CiRA, iPark discovery technologies, GI and Neuroscience 5
Slide 7: Resulting in a dynamic and re-invigorated pipeline
R&D-driven Resulting in a dynamic and re-invigorated pipeline 31 pipeline assets progressed since the start of FY2016 46% of pipeline is partnered 83% of pipeline with global development plans/rights 37% of pipeline has orphan drug designation Pipeline as of October 31, 2018. Please refer to glossar
Slide 8: Shire acquisition will enhance Takeda R&D engine
R&D-driven Shire acquisition will enhance Takeda R&D engine with an initial R&D budget greater than 400 Bn yen GASTRO ONCOLOGY VACCINE ENTEROLOGY TA TA PLASMA DERIVED NEUROSCIENCE RARE DISEASES THERAPIES TA TA 4 TA 3 (Therapeutic Areas) +2 1 7 Note: The greater than 400 billion JPY initial R&D budge
Slide 9: With the potential to deliver more value in the future
R&D-driven With the potential to deliver more value in the future Takeda Shire Orphan Drug Designation PHASE 1 PHASE 2 PHASE 3/FILED APPROVED* TAK-573 XMT-1522 relugolix NINLARO® ADCETRIS® ICLUSIG® Teva Mersana Therapeutics sapanisertib TAK-659 Myovant pevonedistat Proteasome inhibitor MM R/R (EM),
Slide 10: Strategic fit
Strategic fit Accelerates Takeda transformation with a more distinctive focus on key therapy areas RARE DISEASES PLASMA OTHERS ONCOLOGY GI NEUROSCIENCE LYSOSOMAL DERIVED (example of STORAGE HAE2 HEMATOLOGY THERAPIES key products) DISORDERS TAKEDA KEY PRODUCTS Magnyl Ebrantil Xefo ~75% ...etc. Total
Slide 11: Global scale
Global scale Create an attractive geographic footprint with leading positions in Japan and the U.S. COMBINED Historical Pro-Forma ROW 33% U.S. 48% REVENUE ¥3,431bn / $30.6bn JAPAN 19% Source: Shire plc Annual Report 2017 and management information, Takeda Consolidated Financial statements for the Fi
Slide 12: Transaction will be significantly EPS accretive and generate strong cash flow
Financial strength Transaction will be significantly EPS accretive and generate strong cash flow • The recurring pre-tax cost synergies for • Low risk of impairments to combined the combined group are expected to goodwill (¥4,000 bn to ¥4,400 bn) and reach a run-rate of at least ¥153bn / intangible
Slide 13: Committed to investment grade with a target net debt to EBITDA ratio of 2.0x
Financing Committed to investment grade with a target net debt to EBITDA ratio of 2.0x or less in the medium term Net Debt Build Up (bn¹) Illustrative Net Debt / EBITDA Ratio ~¥5,452bn Standalone pro forma4 ¥3,385bn ~$48.0bn 4.8X Illustrative divestment case5 De-leveraging process accelerated by sel
Slide 14: Financing supported by leading global financial institutions
Financing Financing supported by leading global financial institutions Bridge Total Permanent Financing Balance Sheet Cash EUR/USD $1.1bn Bonds Term Loan $14.1bn $7.5bn $30.85bn JPY Hybrid1 $4.5bn JBIC loan $3.7bn Bridge Term Loan JPY Hybrid EUR/USD Bonds JBIC loan 8 May 2018 June 2018 Oct 2018 Nov
Slide 15: Board of Directors for Best-in-Class Governance
Governance Board of Directors for Best-in-Class Governance CC Compensation INTERNAL Committee DIRECTORS NC Nomination Committee NC Independent Christophe Weber Masato Iwasaki Andrew Plump External Director Representative Director, Director, Director, Chief Medical President & CEO JPBU President & Sc
Slide 16: Board and Executive Team involved early in the acquisition
Governance Takeda board (BOD) and Takeda Executive Team (TET) have been fully involved early in the acquisition with many reviews starting in 2017 MAR MAY 22 7 BOD・TET involved BOD decision Final agreement to pursue the deal approved by BOD 2017 2018 SEP OCT NOV DEC JAN FEB MAR APR MAY Evaluation fo
Slide 17: Acquisition approved by the board after extensive reviews with risk assessment
Governance The acquisition has been approved by the board after multiple extensive reviews with detailed risk assessment MAJOR RISKS MITIGATION • Remain investment grade credit rated Financial Market Risks • Denominate the debt with competitive aggregate Examples: interest rate with the right curren
Slide 18: Integration planning is well underway
Integration Integration planning is well underway Creating our new operating model to leverage Takeda and Shire know-how PRINCIPLES Patient-centric Agile & Simple Lean & Focused ▪ Developing more innovative ▪ Continuing to be LOC*-centric ▪ Focusing on six business drivers medicines through a leadin
Slide 19: Global, diverse and experienced new Takeda Executive Team (Post-closing)
Integration Global, diverse and experienced new Takeda Executive Team (Post-closing) CHRISTOPHE COSTA HARUHIKO HIRATE YOSHIHIRO PADMA MILANO FURUTA MWANA LUGOGO WEBER SAROUKOS Corporate NAKAGAWA THIRUVENGADAM Corporate Strategy Global Ethics & President & CEO Global Finance Communication & Global Le
Slide 20: Appointment of three new independent external directors
Governance Reinforce the diversity and strength of the board with appointment of three new independent external directors CC Compensation INTERNAL Committee DIRECTORS NC Nomination NC Committee Christophe Weber Masato Iwasaki Andrew Plump Representative Director, Director, Director, Chief Medical In
Slide 21: Shire acquisition will accelerate Takeda's transformational journey
The acquisition of Shire will enable Takeda to significantly accelerate its transformational journey to become a values-based, R&D driven global biopharmaceutical leader headquartered in Japan 20
Slide 22: Glossary of Abbreviations
Glossary of Abbreviations AD Alzheimer’s disease ESCC esophageal squamous-cell carcinoma NF new formulation ADC antibody drug conjugate FL front line NK natural killer ADHD attention deficit hyperactivity disorder FLT-3 FMS-like tyrosine kinase 3 NME new molecular entity ALK anaplastic lymphoma kina
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