Takeda Pharmaceutical Co. Ltd. · TSE:4502
Takeda Pharmaceutical — Q2 2019 Earnings Presentation
18 slides from Takeda Pharmaceutical's earnings presentation, Oct 31, 2019
Slide 1: FY2019 Q2 Earnings Announcement
A COMPETITIVE, VALUES-BASED, R&D-DRIVEN, GLOBAL BIOPHARMACEUTICAL LEADER FY2019 Q2 Earnings Announcement October 31st, 2019
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”) in connection herewith. This presentation (includ
Slide 3: A Competitive, Values-Based, R&D-Driven, Global Biopharmaceutical Leader
A COMPETITIVE, VALUES-BASED, R&D-DRIVEN, GLOBAL BIOPHARMACEUTICAL LEADER JPY 1.660T Boston Area (USD 15.2B) 1 Global Hub Listed on the New York Stock Tokyo Exchange FY2019 H1 Takeda Global HQ (NYSE: TAK) REPORTED Listed on the REVENUE Tokyo Stock Exchange (TSE: 4502) Research sites Manufacturing sit
Slide 4: Takeda Is Delivering on Its Strategic Priorities
TAKEDA IS DELIVERING ON ITS STRATEGIC PRIORITIES Integration progressing on track while maintaining strong business momentum Solid H1 financial performance driven by 14 global brands, synergies and OPEX Raising full-year profit and margin guidance R&D engine delivering pipeline to support long-term
Slide 5: FY2019 Q2 Key Take-Aways
FY2019 Q2 KEY TAKE-AWAYS • 14 global brands’ underlying growth +21%, driving strong performance across the business BUSINESS • Steady execution of divestitures to optimize portfolio and accelerate de-leveraging; AREA FOCUS announced agreement to divest a portfolio of select OTC and non-core assets i
Slide 6: 5 Key Business Areas Represent ~79% of FY2019 H1 Revenue
5 KEY BUSINESS AREAS REPRESENT ~79% OF FY2019 H1 REVENUE RARE DISEASES P L A S M A - D E R IV E D % of Sales: 20% T H E R A P IE S (P D T ) OTHERS Growth: -11% % of Sales: 21% GI ONCOLOGY NEUROSCIENCE Growth: -8% % of Sales: 21% RARE HEMATOLOGY HEREDITARY ANGIOEDEMA PDT IMMUNOLOGY % of Sales: 13% %
Slide 7: Global Brands Driving Takeda's Strong Performance
14 GLOBAL BRANDS DRIVING TAKEDA’S STRONG PERFORMANCE FY2019 H1 REVENUE FY2019 H1 REVENUE versus PY GLOBAL versus PY GLOBAL (as reported) (BN JPY) (MM USD) (underlying) BRAND (BN JPY) (MM USD) (underlying) BRAND 168.4 1,544 +33.9% IMMUNOGLOBULIN 146.5 1,343 +3.0% 35.0 321 +28.3% -2.2% PDT IMMUNOLOGY
Slide 8: Raising Full-Year Guidance After Solid H1 Performance
RAISING FULL-YEAR GUIDANCE AFTER SOLID H1 PERFORMANCE Raising full-year profit and margin guidance with strong business momentum more than offsetting significant FX impact and NATPARA recall H1 Underlying Core Operating Profit1 margin 32.2%2 driven by cost synergies, OPEX discipline, and improved pr
Slide 9: Delivered Strong Margins and Cash Flow in H1
DELIVERED STRONG MARGINS AND CASH FLOW IN H1 FY2019 H1 FINANCIAL RESULTS (SUMMARY) (BN YEN) REPORTED CORE2 UNDERLYING FY2019 H1 VS. PRIOR YEAR FY2019 H1 VS. PRIOR YEAR REVENUE 1,660.2 +88.5% 1,660.2 +88.5% -0.2% 1 (YoY pro-forma) OPERATING PROFIT 50.3 -70.7% 541.6 +155.5% Margin 3.0% -16.5pp 32.6% +
Slide 10: Cost Synergies & OPEX Efficiencies Driving Margins Towards Target
COST SYNERGIES & OPEX EFFICIENCIES DRIVING MARGINS TOWARDS TARGET UNDERLYING CORE OPERATING PROFIT 1 MARGIN EVOLUTION 2 Mid +10pp 30% 32.2% Mid-to-High 20% 27.5 8.6 22% 1.5 17% COST SYNERGIES AND OPEX EFFICIENCIES 13% FY16 FY17 FY18 Gross margin OPEX margin FY19 H1 FY19 Mid-term Guidance Guidance (J
Slide 11: Abundant Cash Flow Enabled JPY 584.5B of Debt Pay Down in H1
ABUNDANT CASH FLOW ENABLED JPY 584.5B OF DEBT PAY DOWN IN H1 Free cash flow 676.9 (BN JPY) includes JPY 153.1B 76.4 of debt pre-payment 412.2 584.5 341.1 702.1 140.8 Includes 375.5bn yen 53.9 56.2 543.5 from XIIDRA divestiture proceeds Mar 31st Operating Divestments Capex Debt Half-year Net interest
Slide 12: Rapid De-Leveraging from 4.7x to 3.9x Net Debt/Adjusted EBITDA
RAPID DE-LEVERAGING FROM 4.7x TO 3.9x NET DEBT/ADJUSTED EBITDA1 -681.8 (BN JPY) 5,048.9 341.1 412.2 53.9 140.8 250.0 4,367.1 76.4 50.4 Free cash flow 676.9 March 31st Operating Divestments Capex Half-year Net interest Hybrid2 Other3 September (beginning cash flow / Sale of dividend paid 30th net deb
Slide 13: Raising Full-Year Core Operating Profit Forecast to JPY 930.0B
RAISING FULL-YEAR CORE OPERATING PROFIT FORECAST TO JPY 930.0 B (BN JPY) FY2019 Reported Revenue Forecast FY2019 Core Operating Profit1 Forecast2 3,300.0 3,260.0 930.0 910.0 Previous FX NATPARA Business Revised Previous FX NATPARA Business Revised Forecast Momentum Forecast Forecast Momentum, Foreca
Slide 14: FY2019 Revised Reported Forecast
FY2019 REVISED REPORTED FORECAST FY2019 FY2019 FY2018 Previous Revised vs. Previous (BN YEN) vs. PY Actual Forecast Forecast Forecast (July 31, 2019) (October 31, 2019) Revenue 2,097.2 3,300.0 3,260.0 +1,162.8 +55.4% -40.0 -1.2% Operating profit 205.0 -166.0 -110.0 -315.0 - +56.0 +33.7% Net profit 1
Slide 15: Upgrading FY2019 Management Guidance for Margin and Profit
UPGRADING FY2019 MANAGEMENT GUIDANCE FOR MARGIN AND PROFIT Raising full-year profit and margin guidance with business momentum expected to more than offset NATPARA recall MANAGEMENT GUIDANCE FY2019 MANAGEMENT GUIDANCE (July 31, 2019) H1 RESULTS (October 31, 2019) UNDERLYING REVENUE GROWTH1 Flat to s
Slide 16: Takeda Is Delivering on Its Strategic Priorities
TAKEDA IS DELIVERING ON ITS STRATEGIC PRIORITIES Integration progressing on track while maintaining strong business momentum Solid H1 financial performance driven by 14 global brands, synergies and OPEX Raising full-year profit and margin guidance R&D engine delivering pipeline to support long-term
Slide 17: A Global, Values-Based, R&D-Driven Biopharmaceuticals Leader
A Global, Values-Based, R&D-Driven Biopharmaceuticals Leader 16
Slide 18: Q&A Session
Q&A SESSION Christophe Weber Andrew Plump Costa Saroukos Masato Iwasaki President & Chief President, Research & Chief Financial Officer President, Japan Pharma Executive Officer Development Business Unit 01. 02. 03. 04. 05. 06. Introduction Business R&D Financial Closing Q&A Area Focus Engine Streng
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