Takeda Pharmaceutical Co. Ltd. · TSE:4502

Takeda Pharmaceutical — Q2 2020 Earnings Presentation

64 slides from Takeda Pharmaceutical's earnings presentation, Oct 29, 2020

  1. Slide 1: FY2021 Q2 Earnings Announcement

    Better health for people, Brighter future for the world. October 28, 2021 FY2021 Q2 EARNINGS ANNOUNCEMENT

  2. 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”) regarding this presentation. This presentation (i

  3. Slide 3: Agenda

    01. Introduction Christophe Weber President & CEO 02. R&D Engine Andy Plump AGENDA President, R&D 03. Financial Strength Costa Saroukos Chief Financial Officer 04. Q&A Session

  4. Slide 4: Conviction in Our Strategy: Accelerating Topline & Pipeline

    CONVICTION IN OUR STRATEGY: ACCELERATING TOPLINE & PIPELINE Acceleration of topline growth driven by 14 Global Brands • H1 underlying revenue growth +6.8%1; reported revenue growth +12.8% • 14 Global Brands underlying revenue growth +11.4% with further acceleration expected in H2; now represent 42%

  5. Slide 5: Progress with Vaccine Partnerships to Combat COVID-19

    PROGRESS WITH VACCINE PARTNERSHIPS TO COMBAT COVID-19 Vaccine Mechanism Current status • Partnership with Novavax in Japan for the development, manufacturing (250 million doses/year) and commercialization of their COVID-19 vaccine candidate for the pandemic and beyond at our Novavax' COVID-19 Recomb

  6. Slide 6: First and Only Approved Oral Therapy to Target EGFR Exon20 Insertion+ NSCLC

    FIRST AND ONLY APPROVED ORAL THERAPY TO TARGET EGFR EXON20 INSERTION+ NSCLC NSCLC Exon20 Insertion Mutation EXKIVITY Profile Launch Execution Market • EGFR Exon20 insertion mutations are • FDA granted accelerated approval in • First patient treated within one diagnosed in ~2K Non-Small Cell Lung Sep

  7. Slide 7: Agenda

    01. Introduction Christophe Weber President & CEO 02. R&D Engine Andy Plump AGENDA President, R&D 03. Financial Strength Costa Saroukos Chief Financial Officer 04. Q&A Session

  8. Slide 8: Updates to Our Pipeline Since Q1 Announcement

    UPDATES TO OUR PIPELINE SINCE Q1 ANNOUNCEMENT WAVE 1 PIPELINE • EXKIVITY (mobocertinib): Approved by FDA, first oral specifically designed for EGFR Exon20+ NSCLC • Maribavir: FDA Advisory Committee unanimously recommends use for post-transplant recipients with CMV1 infection and disease refractory t

  9. Slide 9: Our Pipeline Is Starting to Deliver Value

    OUR PIPELINE IS STARTING TO DELIVER VALUE WAVE 11 CLINICAL-STAGE NMEs WAVE 22 POTENTIAL APPROVAL FY21 FY22 FY23 FY24 FY25 and Beyond •• EXKIVITY3 EXKIVITY3 TAK-007 subasumstat3 TAK-676 TAK-252 TAK-102 2L NSCLC with EGFR 1L NSCLC with EGFR CD19+ hematologic Multiple cancers Solid tumors Solid tumors

  10. Slide 10: Update on Oral Orexin Agonist TAK-994

    UPDATE ON ORAL OREXIN AGONIST TAK-994 TAK-994 has shown transformative efficacy in NT1 patients (with >30 min MWT) • FDA and Chinese regulatory authority granted Breakthrough Therapy Designations and EMA granted PRIME Designation for NT1 Safety Signal for TAK-994 in Ph2 • A liver safety signal emerg

  11. Slide 11: Takeda's Leadership Position in the Orexin Agonist Field

    TAKEDA’S LEADERSHIP POSITION IN THE OREXIN AGONIST FIELD Pioneering the Orexin Field with a Multi-Asset Franchise of Clinical and Pre-clinical Programs TAK-861, Long-acting oral orexin agonist • Distinct profile to TAK-994 • Fast Track designation granted by FDA July 2021 for NT1 • Ph1 started in he

  12. Slide 12: Maribavir: Redefining Post-Transplant CMV Treatment

    MARIBAVIR: REDEFINING POST-TRANSPLANT CMV TREATMENT Oral viral protein kinase inhibitor for CMV Disease • CMV is the most common post-transplant viral Maribavir Ph3 SOLSTICE trial in R/R CMV Background infection (>25% of transplants)1 demonstrated: • CMV infection may result in higher rates of • Sup

  13. Slide 13: GammaDelta Expands Ability to Target Solid Tumors with Our Cell Therapy Portfolio

    GAMMADELTA EXPANDS ABILITY TO TARGET SOLID TUMORS WITH OUR CELL THERAPY PORTFOLIO Cold-to-Hot Redirected Immunity Dendritic Cell • Allogenic NK cells naturally TAK-981 TAK-007 attack tumor cells SUMOylation NK cells • Arming with a CAR further Inhibitor Macrophage NK Cell enhances anti-tumor activit

  14. Slide 14: Our Pipeline Continues to Advance

    OUR PIPELINE CONTINUES TO ADVANCE MOA TAU /BU EXPECTED EVENT1 FY21 COMMENTS Eohilia Muco‐adherent topical In active discussions with the FDA. Potential Gastroenterology US NDA approval for Eosinophilic Esophagitis TBD TAK-721 corticosteroid approval subject to outcome of discussions Study started, f

  15. Slide 15: Agenda

    01. Introduction Christophe Weber President & CEO 02. R&D Engine Andy Plump AGENDA President, R&D 03. Financial Strength Costa Saroukos Chief Financial Officer 04. Q&A Session

  16. Slide 16: Acceleration of Topline Growth: H1 Underlying Revenue Growth +6.8%

    ACCELERATION OF TOPLINE GROWTH: H1 UNDERLYING REVENUE GROWTH +6.8%1 DRIVEN BY 14 GLOBAL BRANDS • Confirming full-year FY2021 guidance of “mid-single digit” underlying revenue and underlying Core Operating Profit growth2 • Share buyback of up to JPY 100B underscores confidence in business strategy &

  17. Slide 17: FY2021 H1 Financial Results (Summary)

    STRONG TOPLINE GROWTH IN H1, WITH CORE OPERATING PROFIT REFLECTING INCREASED R&D INVESTMENT AND DIVESTITURES FY2021 H1 (APR-SEP) FINANCIAL RESULTS (SUMMARY) (BN YEN) REPORTED CORE1 UNDERLYING2 FY2021 H1 VS. PRIOR YEAR FY2021 H1 VS. PRIOR YEAR REVENUE 1,794.4 +12.8% 1,661.4 +4.4% +6.8% OPERATING PROF

  18. Slide 18: Underlying Revenue Momentum Driven by 14 Global Brands

    UNDERLYING REVENUE MOMENTUM DRIVEN BY 14 GLOBAL BRANDS; REPORTED REVENUE BENEFITTING FROM SALE OF DIABETES PORTFOLIO FY2021 H1 REVENUE VS PRIOR YEAR +12.8% (BN JPY) 1,794.4 +4.4% 133.0 1,661.4 +6.8pp -6.3pp +3.9pp 1,590.8 FY2020 H1 Business momentum Divestitures2 FX FY2021 H1 Sale of Japan FY2021 H1

  19. Slide 19: Underlying Revenue Growth Supported by Key Business Areas

    UNDERLYING REVENUE GROWTH +6.8%1 SUPPORTED BY 5 KEY BUSINESS AREAS WITH STRONG GROWTH OF PDT, GI, ONCOLOGY & NEUROSCIENCE FY2021 H1 REVENUE2 RARE DISEASES PLASMA-DERIVED OTHER % of Sales: 18% THERAPIES (PDT) % of Sales: 14% GI Growth: -2% ONCOLOGY NEUROSCIENCE Growth: +10% % of Sales: 26% RARE METAB

  20. Slide 20: Plasma-Derived Therapies: On Track to Revenue Targets

    PLASMA-DERIVED THERAPIES: ON TRACK TO REVENUE TARGETS & CONSISTENTLY SURPASSING PRE-PANDEMIC DONATION VOLUMES PLASMA DONATION VOLUMES On track to full-year double digit growth forecast • PDT Immunology H1 underlying revenue growth +11.1%; on track to full-year double digit growth forecast FY19 • Imm

  21. Slide 21: 14 Global Brands +11.4% Underlying Growth

    14 GLOBAL BRANDS +11.4% UNDERLYING GROWTH, REPRESENTING 42% OF FY2021 H1 CORE REVENUE1 14 GLOBAL BRANDS FY2021 H1 TOTAL: JPY 692.2B (US$6.2B2) +JPY 96.3B (US$ 864M2) VS PRIOR YEAR versus PY versus PY FY2021 H1 REVENUE (BN JPY) (MM USD) (underlying) FY2021 H1 REVENUE (BN JPY) (MM USD) (underlying) 25

  22. Slide 22: Growth Momentum of 14 Global Brands Expected to Continue

    GROWTH MOMENTUM OF 14 GLOBAL BRANDS EXPECTED TO CONTINUE 14 GLOBAL BRANDS GROWTH RATE & PERCENTAGE OF REVENUE 1 +14~16% FY2021 H1 underlying revenue growth of +11.4%; acceleration expected in H2 FY2020 • Q2 underlying growth (+16.1%) accelerated from Q1 (+6.8%) FY2021 • 14 Global Brands H1 underlyin

  23. Slide 23: Core Operating Profit Reflects R&D Investment & Divestiture Impact

    CORE OPERATING PROFIT REFLECTS INCREASE IN R&D INVESTMENT & DIVESTITURE IMPACT; ON TRACK TO FULL YEAR FORECAST OF JPY 930B FY2021 H1 CORE OPERATING PROFIT 1 (BN JPY) 930.0 -4.3% 507.6 485.7 FY2020 H1 Underlying business Increased R&D Divestitures2 FX FY2021 H1 FY2021 Full Year Core Operating (excl.

  24. Slide 24: Reported Operating Profit Reflects Declining PPA & Integration Costs

    REPORTED OPERATING PROFIT REFLECTS DECLINING PPA & INTEGRATION COSTS, ALSO GAIN ON SALE OF JAPAN DIABETES PORTFOLIO BRIDGE FROM H1 REPORTED TO CORE OPERATING PROFIT 1 (BN JPY) 46.6 1.5 -131.4 485.7 204.1 346.0 18.9 FY2021 H1 Unwinding of Amortization Impairment Other Gain on sale of Japan FY2021 H1

  25. Slide 25: FY2021 H1 Cashflow Reflects Significant Debt Pre-Payment

    FY2021 H1 CASHFLOW REFLECTS SIGNIFICANT DEBT PRE-PAYMENT (BN JPY) Free Cash Flow1 315.6 9.0 Total liquidity of JPY 1.12T (USD 10.1B)2 85.8 including JPY 700B from undrawn 7.6 7.6 committed line of credit 32. and excluding pass-through deposit 400.0 441.1 966.2 Includes cash received for sale of 76.3

  26. Slide 26: Net Debt/Adjusted EBITDA at 3.1x

    NET DEBT/ADJUSTED EBITDA AT 3.1x CHANGE IN NET DEBT Excludes restricted pass-through (BN JPY) deposit of JPY 183.1B Free Cash Flow 1 315.6 3,429.4 3,449.3 143.4 50.5 400.0 141.6 7.6 85.8 9.0 2021 Operating Divestments Capex Pass-through Half-year Net interest Other5 2021 March 31st cash flow / Other

  27. Slide 27: Well Positioned Maturity Profile

    WELL POSITIONED MATURITY PROFILE FACILITATES COMFORTABLE PAYMENT OF DIVIDENDS OVER TIME MATURITY LADDER AS OF 30 SEPTEMBER 2021 (AS ADJUSTED)1 1,000 $1.7B JBIC Loan Re-financed in October 2021 800 Called for Prepayment (To be paid in Dec 2021) BILLION JPY 600 PAID IN FY21 PAID IN FY21 PRIOR TO FY21

  28. Slide 28: Confirming Full-Year FY2021 Guidance

    CONFIRMING FULL-YEAR FY2021 GUIDANCE OF “MID-SINGLE DIGIT” UNDERLYING REVENUE AND UNDERLYING CORE OPERATING PROFIT GROWTH FY2021 FY2021 UNDERLYING2 (BN YEN) ORIGINAL FORECAST CURRENT FORECAST (MANAGEMENT GUIDANCE) (MAY 2021) (OCT 2021) (UNCHANGED FROM MAY 2021) REPORTED REVENUE 3,370.0 3,370.0 Mid-s

  29. Slide 29: Capital Allocation to Maximize Value for Patients & Shareholders

    CAPITAL ALLOCATION TO MAXIMIZE VALUE FOR PATIENTS & SHAREHOLDERS  Takeda is delivering on its financial commitments and has a strong cash flow outlook driven by revenue growth and strong margins. Guided by our values and commitment to patients, people and the planet, we will allocate capital to max

  30. Slide 30: Acceleration of Topline Growth: Summary and Outlook

    ACCELERATION OF TOPLINE GROWTH: H1 UNDERLYING REVENUE GROWTH +6.8%1 DRIVEN BY 14 GLOBAL BRANDS FY2021 H1 (APR-SEP) FY2021 AND BEYOND • Confirming full year FY2021 guidance of “mid-single digit” underlying revenue growth driven by strength of 14 Global Brands TOPLINE Underlying Revenue growth +6.8%1

  31. Slide 31: Q&A Session

    Q&A SESSION Christophe Weber Andy Plump Costa Saroukos Masato Iwasaki Ramona Sequeira Julie Kim President & Chief President, Research & Chief Financial Officer Japan General Affairs President, U.S. Business President, Plasma-Derived Executive Officer Development Unit & Global Portfolio Therapies Bus

  32. Slide 32: Appendix

    APPENDIX

  33. Slide 33: Takeda's Disclosure Metrics

    TAKEDA’S DISCLOSURE METRICS “REPORTED” “CORE” “UNDERLYING” Financial results recorded and From Reported Results, adjust for: From Core Results, further adjust for: prepared in accordance with 1. Amortization and impairment 1. Impact of foreign exchange International Financial Reporting expenses for

  34. Slide 34: Definition of Core and Underlying Growth

    DEFINITION OF CORE AND UNDERLYING GROWTH Takeda uses the concept of Underlying Growth for internal planning and performance Core Revenue represents revenue adjusted to exclude significant items unrelated to evaluation purposes. Takeda’s core operations. Underlying Growth compares two periods (fiscal

  35. Slide 35: Definition of Free Cash Flow

    DEFINITION OF FREE CASH FLOW We present Free Cash Flow because we believe that this measure is useful to investors as similar measures of liquidity are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. Free Cash Flow is als

  36. Slide 36: Definition of EBITDA/Adjusted EBITDA and Net Debt

    DEFINITION OF EBITDA/ADJUSTED EBITDA AND NET DEBT EBITDA and Adjusted EBITDA We present EBITDA and Adjusted EBITDA because we believe that these measures are useful to investors as they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies

  37. Slide 37: Growth of GI Franchise Spearheaded by Entyvio

    G A ST R OENT ER OL OG Y ( G I) GROWTH OF GI FRANCHISE SPEARHEADED BY ENTYVIO • Entyvio has a gut-selective mechanism of action, and continues to capture patient share GI PORTFOLIO in IBD supported by its differentiated efficacy and safety profile (including H2H superiority, real FY 2021 H 1 R E V E

  38. Slide 38: Rare Diseases Revenue in Line with Plan; Strong Outlook for Takhzyro

    R A R E D ISEA SES RARE DISEASES REVENUE IN LINE WITH PLAN; STRONG OUTLOOK FOR TAKHZYRO DRIVEN BY UNIQUE EFFICACY PROFILE RARE METABOLIC HEREDITARY ANGIOEDEMA RARE HEMATOLOGY FY 2021 H 1 R E V E N UE FY 2021 H 1 R E V E N UE FY 2021 H 1 R E V E N UE (BN JPY) (BN JPY) -2% (BN JPY) -5% 100 +2% 80 150

  39. Slide 39: PDT Portfolio on Track to Full-Year Double Digit Growth Forecast

    P L A SM A - D ER IVED T H ER A P IES PDT PORTFOLIO ON TRACK TO FULL-YEAR DOUBLE DIGIT GROWTH FORECAST PDT IMMUNOLOGY PORFOLIO FY 2021 H 1 R E V E N UE (BN JPY) • Immunoglobulin products underlying growth +8% in H1, with +11% quarter-on-quarter phasing impact balanced in Q2; we remain 250 confident

  40. Slide 40: Strong Oncology Portfolio Continues to Expand Indications

    O NC OL OG Y STRONG ONCOLOGY PORTFOLIO CONTINUES TO EXPAND INDICATIONS ONCOLOGY PORTFOLIO FY 2021 H 1 R E V E N UE • Received Accelerated Approval from the U.S. FDA in September 2021 for the treatment of patients with locally advanced or metastatic NSCLC with EGFR Exon20 insertion (BN JPY) mutations

  41. Slide 41: Vyvanse Rebounding from COVID-19 Impact in Prior Year

    N EU R OSC IENC E VYVANSE REBOUNDING FROM COVID-19 IMPACT IN PRIOR YEAR N EURO SCIENCE P O RTFOL IO FY 2021 H 1 R E V E N UE • Vyvanse strong growth reflects continued investment in the growing adult space driving re-acceleration to above pre-COVID expectations in FY2021 as a first-line (BN JPY) tre

  42. Slide 42: FY2021 H1 Reported Results

    FY2021 H1 REPORTED RESULTS FY2020 FY2021 (BN JPY) vs. PY H1 H1 Revenue 1,590.8 1,794.4 +203.6 +12.8 % Cost of sales -487.7 -517.1 -29.3 -6.0 % Gross Profit 1,103.1 1,277.4 +174.3 +15.8 % Margin 69.3 % 71.2 % +1.8 pp SG&A expenses -418.6 -431.9 -13.2 -3.2 % R&D expenses -225.0 -254.1 -29.1 -12.9 % Am

  43. Slide 43: FY2021 Q2 (Jul-Sep) Reported Results

    FY2021 Q2 (Jul-Sep) REPORTED RESULTS FY2020 FY2021 (BN JPY) Q2 Q2 vs. PY (Jul-Sep) (Jul-Sep) Revenue 788.9 844.8 +55.9 +7.1 % Cost of sales -249.6 -275.8 -26.2 -10.5 % Gross Profit 539.3 569.0 +29.7 +5.5 % Margin 68.4 % 67.4 % -1.0 pp SG&A expenses -216.3 -212.0 +4.2 +2.0 % R&D expenses -118.2 -131.

  44. Slide 44: FY2021 H1 Core Results

    FY2021 H1 CORE RESULTS1 FY2020 FY2021 (BN JPY) vs. PY H1 H1 Revenue 1,590.8 1,661.4 +4.4 % Gross Margin 72.3% 70.3% -2.1 pp Operating expenses -642.8 -681.5 -6.0 % % of Revenue 40.4% 41.0% -0.6 pp Core Operating profit 507.6 485.7 -4.3 % Margin 31.9% 29.2% -2.7 pp Core tax rate 22.5% 21.9% +0.6 pp C

  45. Slide 45: FY2021 Q2 (Jul-Sep) Core Results

    FY2021 Q2 (Jul-Sep) CORE RESULTS1 FY2020 FY2021 (BN JPY) Q2 Q2 vs. PY (Jul-Sep) (Jul-Sep) Revenue 788.9 844.8 +7.1 % Gross Margin 71.0% 68.5% -2.5 pp Operating expenses -333.3 -341.7 -2.5 % % of Revenue 42.2% 40.5% +1.8 pp Core Operating profit 226.7 236.8 +4.4 % Margin 28.7% 28.0% -0.7 pp Core tax

  46. Slide 46: Reconciliation from Reported Revenue to Core/Underlying Revenue FY2021 H1

    RECONCILIATION FROM REPORTED REVENUE TO CORE/UNDERLYING REVENUE FY2021 H1 VERSUS PRIOR YEAR FY2020 FY2021 (BN JPY) vs. PY H1 H1 Reported Revenue 1,590.8 1,794.4 +203.6 + 12.8% Sale of Japan diabetes portfolio2 — -133.0 -133.0 -8.4pp Core Revenue 1,590.8 1,661.4 +70.6 + 4.4% FX effects1 -3.9pp Divest

  47. Slide 47: Reconciliation from Reported Revenue to Core/Underlying Revenue FY2021 Q2

    RECONCILIATION FROM REPORTED REVENUE TO CORE/UNDERLYING REVENUE FY2021 Q2 (Jul-Sep) VERSUS PRIOR YEAR FY2020 FY2021 (BN JPY) Q2 Q2 vs. PY (Jul-Sep) (Jul-Sep) Reported Revenue 788.9 844.8 +55.9 + 7.1% Sale of Japan diabetes portfolio2 Core Revenue 788.9 844.8 +55.9 + 7.1% FX effects1 -4.0pp Divestitu

  48. Slide 48: Reconciliation from Reported to Core/Underlying Core FY2021 H1

    RECONCILIATION FROM REPORTED TO CORE/UNDERLYING CORE FY2021 H1 CORE TO REPORTED TO CORE ADJUSTMENTS UNDERLYING CORE ADJ. (BN JPY) REPORTED Amortization of Other CORE Impairment of Sale of Japan Irish operating intangible intangible diabetes Tax Others FX Divestitures income/ UNDERLYING assets assets

  49. Slide 49: Reconciliation from Reported to Core/Underlying Core FY2021 Q2

    RECONCILIATION FROM REPORTED TO CORE/UNDERLYING CORE FY2021 Q2 (Jul-Sep) CORE TO REPORTED TO CORE ADJUSTMENTS UNDERLYING CORE ADJ. (BN JPY) REPORTED Amortization of Other CORE Impairment of Sale of Japan Irish operating intangible intangible diabetes Tax Others FX Divestitures income/ UNDERLYING ass

  50. Slide 50: Reconciliation from Reported to Core/Underlying Core FY2020 H1

    RECONCILIATION FROM REPORTED TO CORE/UNDERLYING CORE FY2020 H1 CORE TO REPORTED TO CORE ADJUSTMENTS UNDERLYING CORE ADJ. (BN JPY) REPORTED Other CORE Amortization of Impairment of TEVA JV related operating intangible intangible accounting Others FX Divestitures UNDERLYING income/ assets assets adjus

  51. Slide 51: Reconciliation from Reported to Core/Underlying Core FY2020 Q2

    RECONCILIATION FROM REPORTED TO CORE/UNDERLYING CORE FY2020 Q2 (Jul-Sep) CORE TO REPORTED TO CORE ADJUSTMENTS UNDERLYING CORE ADJ. (BN JPY) REPORTED Other CORE Amortization of Impairment of TEVA JV related operating intangible intangible accounting Others FX Divestitures UNDERLYING income/ assets as

  52. Slide 52: Free Cash Flow

    FREE CASH FLOW FY2020 FY2021 (BN JPY) vs. PY H1 H1 Net profit 86.6 183.7 +97.1 +112.2% Depreciation, amortization and impairment loss 288.8 285.1 -3.8 Decrease (increase) in trade working capital -24.9 -89.2 -64.3 Income taxes paid -103.8 -78.7 +25.1 Tax refunds and interest on tax refunds received

  53. Slide 53: Net Debt/Adjusted EBITDA

    NET DEBT/ADJUSTED EBITDA NET DEBT/ADJUSTED EBITDA RATIO NET INCREASE (DECREASE) IN CASH FY2020 FY2021 FY2021 (BN JPY) vs. PY (BN JPY) H1 H1 H1 Net cash from operating activities 392.0 400.0 +8.0 +2.0 % Acquisition of PP&E -50.5 -60.6 Cash and cash equivalents1 424.8 Proceeds from sales of PP&E 38.5

  54. Slide 54: Net Profit to Adjusted EBITDA Bridge FY2021 H1

    NET PROFIT TO ADJUSTED EBITDA BRIDGE FY2021 H1 VERSUS PRIOR YEAR FY2020 FY2021 (BN JPY) vs. PY H1 H1 Net profit 86.6 183.7 +97.1 +112.2% Income tax expenses 39.0 100.7 Depreciation and amortization 280.5 283.6 Interest expense, net 68.2 58.9 EBITDA 474.3 627.0 +152.7 +32.2% Impairment losses 8.3 1.5

  55. Slide 55: Net Profit to Adjusted EBITDA LTM Bridge

    NET PROFIT TO ADJUSTED EBITDA LTM BRIDGE FY2020 FY2021 FY2020 FY2021 (BN JPY) Full Year H1 LTM1 H1 H1 (Apr-Mar) (Oct-Sep) Net profit 376.2 86.6 183.7 473.3 Income tax expenses -9.9 39.0 100.7 51.8 Depreciation and amortization 559.7 280.5 283.6 562.7 Interest expense, net 129.0 68.2 58.9 119.8 EBITD

  56. Slide 56: FY2021 Detailed Forecast

    FY2021 DETAILED FORECAST FY2021 FY2021 Original Revised vs. Original (BN JPY) Variances Forecast Forecast Forecast (May 11, 2021) (Oct 28, 2021) Revenue 3,370.0 3,370.0 Cost of sales N/D1 N/D1 R&D expenses -522.0 -522.0 Amortization of intangible assets -406.0 -406.0 Impairment of intangible assets

  57. Slide 57: FY2021 Core Operating Profit Adjustment Items & Cash Flow Forecast

    FY2021 CORE OPERATING PROFIT ADJUSTMENT ITEMS & CASH FLOW FORECAST VERSUS ACTUALS CORE OPERATING PROFIT ADJUSTMENT ITEMS FY2021 FY2021 (BN JPY) Forecast H1 (October 28, 2021) Amortization of intangible assets 204.1 406.0 Of which Shire-acquisition related 166.3 328.0 Impairment of intangible assets

  58. Slide 58: Reconciliation from Reported to Core Operating Profit – FY2021 Forecast

    RECONCILIATION FROM REPORTED OPERATING PROFIT TO CORE OPERATING PROFIT – FY2021 FORECAST REPORTED TO CORE ADJUSTMENTS Other Sale of (BN JPY) REPORTED Amortization of Impairment of CORE operating Japan intangible intangible Others income/ diabetes assets assets expenses portfolio Revenue 3,370.0 -133

  59. Slide 59: FX Rates and FY2021 Currency Sensitivity

    FX RATES AND FY2021 CURRENCY SENSITIVITY Impact of 1% depreciation of yen from April 2021 to March 2022 Average Exchange Rates vs. JPY (100 million JPY) based on FY2021 forecast Core FY2020 FY2021 FY2021 Operating Revenue Net Profit Operating Actual Actual Assumption Profit (IFRS) (IFRS) Profit (Apr

  60. Slide 60: Maximizing the Value of Our Global and Regional Brands

    MAXIMIZING THE VALUE OF OUR GLOBAL AND REGIONAL BRANDS PHASE 1 & 2 PHASE 3 FILED NINLARO® ICLUSIG® CABOMETYX® Proteasome inhibitor BCR-ABL inhibitor VEGFR/RTK inhibitor ALUNBRIG® ADCETRIS® FL Ph+ ALL (US) mCRPC combo ALK inhibitor Seagen Maint. ND MM post- 1L & 2L ALK+NSCLC (CN) CD30 ADC SCT (US, EU

  61. Slide 61: Continued Global and Regional Brand Expansion in FY2021

    CONTINUED GLOBAL AND REGIONAL BRAND EXPANSION IN FY2021 COMPOUND EXPECTED EVENT1 FY21 Comments ADCETRIS Approval decision for CTCL in China H1 Approval decision in JP for maintenance therapy in patients with newly diagnosed Multiple NINLARO H1 Myeloma not treated with stem cell transplant ONCOLOGY S

  62. Slide 62: R&D Engine Driving Wave 1 Approvals and Expansion of Global and Regional Brands

    R&D ENGINE DRIVING WAVE 1 APPROVALS AND EXPANSION OF GLOBAL AND REGIONAL BRANDS EXKIVITY mobocertinib 2L NSCLC EXON 20; US EXKIVITY mobocertinib 2L NSCLC EXON 20; EU, CN TAK-755 cTTP TAK-9943 Narcolepsy T1 Milestone: Potential approval EXKIVITY 1L NSCLC EXON 20 TAK-007 Hematological malignancies mar

  63. Slide 63: Glossary of Abbreviations

    GLOSSARY OF ABBREVIATIONS CRPS complex regional pain syndrome IH idiopathic hypersomnia OSA obstructive sleep apnea Regional Abbreviations: CN: China; EU: Europe; JP: Japan; US: United States of America CTCL cutaneous T-cell lymphoma IND investigational new drug PARP poly (ADP-ribose) polymerase cTT

  64. Slide 64: Takeda Investor Relations

    Takeda Investor Relations: takeda.ir.contact@takeda.com © 2021 Takeda Pharmaceutical Company Limited. All rights reserved

Takeda Pharmaceutical Company — Q2 2020 Earnings Presentation on 6ix