Takeda Pharmaceutical Co. Ltd. · TSE:4502
Takeda Pharmaceutical — Q3 2024 Earnings Presentation
49 slides from Takeda Pharmaceutical's earnings presentation, Jan 30, 2025
Slide 1: Committed to Growth & Shareholder Returns
TSE: 4502 Committed to Growth & Shareholder Returns FY2024 Q3 Earnings Announcement January 30th, 2025
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
Slide 3: Continued Positive Momentum in Portfolio & Pipeline
Continued Positive Momentum in Portfolio & Pipeline Strong Momentum of Driving Efficiencies to Progress in Late-Stage Growth & Launch Products Improve Margins Innovative Pipeline • Total Q3 YTD Revenue of JPY 3,528.2B • Core Operating Profit margin 28.5%3 • Elritercept license agreement adds (USD 22
Slide 4: Q3 YTD Results Driven by Growth & Launch Products
FY2024 Q3 YTD Results Driven by Growth & Launch Products, Continued VYVANSE Demand, and OPEX Efficiencies FY2024 Q3 YTD (APR -DEC) FINANCIAL RESULTS (SUMMARY) (BN YEN, except EPS) REPORTED CORE1 ACTUAL % ACTUAL % CER2 % CHANGE FY2024 Q3 YTD FY2023 Q3 YTD CHANGE FY2024 Q3 YTD FY2023 Q3 YTD CHANGE REV
Slide 5: Strong Momentum of Growth & Launch Products +14.6% at CER
Strong Momentum of Growth & Launch Products +14.6% at CER Balanced Portfolio Across 6 Key Business Areas PLASMA-DERIVED GI RARE DISEASES THERAPIES (PDT) ONCOLOGY VACCINES NEUROSCIENCE % of Sales: 29% % of Sales: 16% % of Sales: 22% % of Sales: 12% % of Sales: 1% % of Sales: 13% Growth at CER: +6% Gr
Slide 6: Q3 YTD Revenue: Growth & Launch Products More Than Offset LOE
FY2024 Q3 YTD Revenue: Growth & Launch Products More Than Offset Loss of Exclusivity Impact FY2024 Q3 YTD REVENUE VS PRIOR YEAR (BN JPY) +9.8% 3,528.2 +4.5% at CER 171.9 3,212.9 Includes VYVANSE, AZILVA & ADDERALL XR Growth of +14.6% at CER FY2023 Q3 YTD Growth & Launch LOE impacted Other products F
Slide 7: Q3 YTD Core Operating Profit Bridge
FY2024 Q3 YTD Core Operating Profit: Growth & Launch Products More Than Offset LOE Impact, with OPEX Benefitting from Efficiency Program FY2024 Q3 YTD CORE OPERATING PROFIT VS PRIOR YEAR (BN JPY) +16.3% +10.1% at CER 1,006.3 53.4 865.6 Gross Profit Impact FY24 Q3 Cost of Goods includes JPY 29.9B adj
Slide 8: Q3 YTD Reported Operating Profit Bridge
FY2024 Q3 YTD Reported Operating Profit: Increase Reflects Growth in Core Operating Profit and Lower Impairment Compared to Prior Year FY2024 Q3 YTD REPORTED OPERATING PROFIT VS PRIOR YEAR (BN JPY) +86.3% 417.5 23.0 Restructuring costs (JPY 107.4B) & accrual for TAK-611 & TAK-609 post-trial access (
Slide 9: Raising Full-Year Outlook and Announcing Share Buyback up to JPY 100.0B
Raising Full-Year Outlook: Expecting Revenue, Core O.P. & Margin Growth and Announcing Share Buyback up to JPY 100.0B CORE CHANGE AT CER (MANAGEMENT GUIDANCE) PREVIOUS GUIDANCE (OCT 2024) REVISED GUIDANCE (JAN 2025) REVENUE Flat to slightly increasing Low-single digit % increase CORE OPERATING PROFI
Slide 10: Forecast Upgrade Driven by Product Momentum
FY2024 Forecast Upgrade Driven by Product Momentum, Slower Than Anticipated VYVANSE Generic Erosion in the U.S., & OPEX Savings FY2024 REVENUE FORECAST (JAN VS OCT) FY2024 CORE OPERATING PROFIT FORECAST (JAN VS OCT) (BN JPY) 4,590.0 1,150.0 Includes reduction in R&D 4,480.0 1,050.0 expense due to po
Slide 11: Q&A Session
Q&A SESSION CHRISTOPHE WEBER Representative Director; President & CEO MILANO FURUTA Director; Chief Financial Officer ANDY PLUMP Director; President, Research & Development
Slide 12: Appendix
APPENDIX
Slide 13: ENTYVIO Growth Driven by ENTYVIO Pen Globally
G A ST RO E N TE RO LO GY (G I) ENTYVIO Growth Driven by ENTYVIO Pen Globally GI PORTFOLIO FY2024 Q3 YTD Revenue JPY 699.0B (+6.6% growth) FY 2 0 2 4 Q3 Y T D R E V E N U E • ENTYVIO growth in the U.S. negatively impacted by strong Q3 in prior year as a result of shipment timing, and a (BN JPY) gros
Slide 14: Sustained TAKHZYRO Momentum; LIVTENCITY Strong Market Penetration
R A R E D ISE A SES Sustained TAKHZYRO Momentum with Double-Digit Growth and >6,000 patients treated; LIVTENCITY Strong Market Penetration in the U.S. & Rapid Geo Expansion RARE DISEASES PORTFOLIO FY2024 Q3 YTD Revenue JPY 168.0B (+16.4% growth) FY 2 0 2 4 Q3 Y T D R E V E N U E • 7 years in the mar
Slide 15: PDT Portfolio Continues to Deliver Outstanding Growth
PLA SMA - D ERIVED T H ER A PIES PDT Portfolio Continues to Deliver Outstanding Growth Fueled By Sales of Immunoglobulin Products PDT PORTFOLIO Immunoglobulin Albumin FY 2 0 2 4 Q 3 Y T D R E V E N U E FY24 Q3 YTD Revenue JPY 576.0B (+11.9% growth) FY24 Q3 YTD Revenue JPY 101.3B (+2.2% growth) (BN J
Slide 16: Steady Growth Across Key Brands in Oncology Marketed Portfolio
O N C O LO G Y Steady Growth Across Key Brands in Oncology Marketed Portfolio ONCOLOGY PORTFOLIO FY 2 0 2 4 Q3 Y T D R E V E N U E FY2024 Q3 YTD Revenue JPY 36.1B (Newly Launched) (BN JPY) • Launch has exceeded internal expectations, led by strong uptake in the U.S.; Strong initial launch in Japan a
Slide 17: QDENGA Demand Exceeding Expectations
V A C C IN E S QDENGA Demand Exceeding Expectations; >10m Doses Sold Since Launch VACCINES PORTFOLIO FY 2 0 2 4 Q3 Y T D R E V E N U E FY2024 Q3 YTD Revenue JPY 30.0B (+397% growth) (BN JPY) • Strong global demand: now available in 27 countries, including 19 European countries with travel +65% recom
Slide 18: VYVANSE U.S. Loss of Exclusivity Impact
N E UR O SC IE N CE VYVANSE U.S. Loss of Exclusivity Impact from August 2023 NEUROSCIENCE PORTFOLIO FY2024 Q3 YTD Revenue JPY 287.6B (-13.5% change) FY 2 0 2 4 Q3 Y T D R E V E N U E (BN JPY) • U.S. revenue declined -19.8% at CER in Q3 Vyvanse U.S. Weekly Volume (million units)2 YTD, impacted by Los
Slide 19: Late-Stage Pipeline Programs Have Potential to Generate Significant Value
Developing Life Transforming Medicines for Rare and More Prevalent Diseases: Late-Stage Pipeline Programs have the Potential to Generate Significant Value FY24 FY25 FY26 FY27 - 29 Psoriasis Psoriasis Head-to-Head vs. deucravacitinib Start Target Filing zasocitinib Psoriatic Arthritis Psoriatic Arthr
Slide 20: Impactful Pipeline Milestones for Early to Mid-Stage Programs
Impactful Pipeline Milestones for Early to Mid-Stage Programs Advance Science and Address Unmet Patient Needs FY24 FY25 Celiac Disease TAK-227 Phase 2b GASTROINTESTINAL AND INFLAMMATION TAK-007 Autoimmune Diseases (CAR-NK Platform) Proof-of-Mechanism NT2/IH NEUROSCIENCE TAK-360 Phase 2 Start ONCOLOG
Slide 21: Important Near-Term LCM Expansions
Important Near-Term LCM Expansions Represent Significant Growth Opportunities FY24 FY25 GASTROINTESTINAL maralixibat ENTYVIO AND INFLAMMATION Filed ALGS, PFIC (Japan) Target Filing Crohn’s/UC Peds (US, EU) ADCETRIS ONCOLOGY Filed FL HL BrECADD (EU)1 HYQVIA Filed CIDP, MMN (Japan) Glovenin-I 10% Targ
Slide 22: Potential NME Approvals and Indication Expansions in FY24
Potential NME Approvals and Indication Expansions in FY24 ENTYVIO SC Crohn’s disease U.S. approval QDENGA Dengue vaccine Additional endemic countries1 ADZYNMA cTTP EU approval KEY POTENTIAL EU approval FRUZAQLA mCRC REGULATORY JP approval APPROVALS LIVTENCITY Refractory post-transplant CMV infection
Slide 23: Consolidated Development Pipeline by Phase
Consolidated Development Pipeline by Phase PHASE 1 (5 NMEs) PHASE 2 (10 NMEs + 2 LCM) TAK-004 TAK-007 zasocitinib zasocitinib TAK-101 zamaglutenase Nausea & Vomiting Autoimmune Disease1 Crohn’s Disease Ulcerative Colitis Celiac Disease Celiac Disease GASTROINTESTINAL AND INFLAMMATION TAK-227 ADZYNMA
Slide 24: Consolidated Development Pipeline by Phase
Consolidated Development Pipeline by Phase PHASE 3 (6 NMEs + 11 LCMs) FILED (2 NME + 11 LCMs) zasocitinib zasocitinib mezagitamab mezagitamab ADZYNMA® maralixibat maralixibat Psoriasis Psoriatic Arthritis1 ITP1 IgAN1 cTTP (EU) ALGS (JP) PFIC (JP) GASTROINTESTINAL AND INFLAMMATION fazirsiran ENTYVIO®
Slide 25: Advancing Zasocitinib (TAK-279) In Parallel Across Multiple Indications
Advancing Zasocitinib (TAK-279) In Parallel Across Multiple Indications Phase 2 Start Phase 2b Readout Phase 3 Target Filing Ph2b March 2023 Ph3 Start FY23 FY26 Psoriasis Head-to-Head Start FY25 Psoriatic Arthritis Ph2b September 2023 Ph3 Start FY24 FY28/29 Crohn’s Disease Ph2b March 2024 Zasocitini
Slide 26: Continuing Evidence Generation and Indication Expansion
Continuing Evidence Generation and Indication Expansion PHASE 3 PHASE 3b / 4 PUBLISHED APPROVED ENTYVIO® IV ENTYVIO® IV (VERDICT) ENTYVIO® IV (VARSITY) ENTYVIO® IV Pediatric (Global) (Global)3,4 ENT vs. ada1 (Global) Ulcerative colitis ENTYVIO® IV (EXIGEM) ENTYVIO® SC ENT + tof (US/Can)3 (US, EU, JP
Slide 27: Glossary of Abbreviations
Glossary of Abbreviations Regional Abbreviations: CN: China; EU: Europe; JP: Japan; U.S.: United States of America AA anemia-associated FY fiscal year NME new molecular entity AATD α1-antitrypsin deficiency GI gastrointestinal NMPA (China’s) National Medical Products Administration AATD LD α1-antitr
Slide 28: Financial Appendix
Exhibit 99.1 FINANCIAL APPENDIX Definition of Non-IFRS Measures Definition and Explanation of Non-IFRS Measures and U.S. Dollar Convenience Translations A-1 Reconciliations and Other Financial Information FY2024 Q3 YTD Reported Results with CER % Change A-4 FY2024 Q3 (Oct-Dec) Reported Results with
Slide 29: Definition and Explanation of Non-IFRS Measures
Definition and Explanation of Non-IFRS Measures and U.S. Dollar Convenience Translations Core Financial Measures Takeda’s Core Financial Measures, particularly Core Revenue, Core Operating Profit, Core Net Profit for the Year attributable to owners of the Company and Core EPS, exclude revenue from d
Slide 30: Free Cash Flow and Adjusted Free Cash Flow
Free Cash Flow and Adjusted Free Cash Flow Takeda defines Free Cash Flow as cash flows from operating activities less acquisition of property, plant and equipment (“PP&E”). Takeda defines Adjusted Free Cash Flow as cash flows from operating activities, subtracting payments for acquisition of PP&E, i
Slide 31: Net Debt and Adjusted Net Debt
Net Debt and Adjusted Net Debt Takeda defines Net Debt as the book value of bonds and loans on consolidated statements of financial position adjusted only for cash and cash equivalents, and Adjusted Net Debt first by calculating the sum of the current and non-current portions of bonds and loans as s
Slide 32: FY2024 Q3 YTD Reported Results with CER % Change
FY2024 Q3 YTD Reported Results with CER % Change vs. PY (Million USD, except EPS) FY2023 FY2024 AER CER (Billion JPY, except EPS) FY2024 Q3 YTD Q3 YTD Q3 YTD Convenience Amount of Change % CHANGE % CHANGE USD Translation Revenue 3,212.9 3,528.2 315.3 9.8% 4.5% 22,419 Cost of sales (1,044.2) (1,198.1
Slide 33: FY2024 Q3 (Oct-Dec) Reported Results with CER % Change
FY2024 Q3 (Oct-Dec) Reported Results with CER % Change vs. PY (Million USD, except EPS) FY2023 Q3 FY2024 Q3 AER CER (Billion JPY, except EPS) FY2024 Q3 (Oct-Dec) (Oct-Dec) (Oct-Dec) Convenience Amount of Change % CHANGE % CHANGE USD Translation Revenue 1,111.2 1,144.1 32.9 3.0% 3.4% 7,270 Cost of sa
Slide 34: FY2024 Q3 YTD Core Results with CER % Change
FY2024 Q3 YTD Core Results with CER % Change vs. PY (Million USD, except EPS) FY2023 FY2024 AER CER (Billion JPY, except EPS) FY2024 Q3 YTD Q3 YTD Q3 YTD Convenience Amount of Change % CHANGE % CHANGE USD Translation Revenue 3,212.9 3,528.2 315.3 9.8% 4.5% 22,419 Cost of sales (1,044.2) (1,198.3) (1
Slide 35: FY2024 Q3 (Oct-Dec) Core Results with CER % Change
FY2024 Q3 (Oct-Dec) Core Results with CER % Change vs. PY (Million USD, except EPS) FY2023 Q3 FY2024 Q3 AER CER (Billion JPY, except EPS) FY2024 Q3 (Oct-Dec) (Oct-Dec) (Oct-Dec) Convenience Amount of Change % CHANGE % CHANGE USD Translation Revenue 1,111.2 1,144.1 32.9 3.0% 3.4% 7,270 Cost of sales
Slide 36: FY2024 Q3 YTD Reconciliation from Reported to Core
FY2024 Q3 YTD Reconciliation from Reported to Core REPORTED TO CORE ADJUSTMENTS (Billion JPY, except EPS and number of shares) REPORTED Amortization of Impairment of Other CORE Teva JV related intangible intangible operating income/ Others adjustment*2 assets assets expenses Revenue 3,528.2 3,528.2
Slide 37: FY2024 Q3 (Oct-Dec) Reconciliation from Reported to Core
FY2024 Q3 (Oct-Dec) Reconciliation from Reported to Core REPORTED TO CORE ADJUSTMENTS (Billion JPY, except EPS and number of shares) REPORTED Amortization of Impairment of Other CORE Teva JV related intangible intangible operating income/ Others adjustment*2 assets assets expenses Revenue 1,144.1 1,
Slide 38: FY2023 Q3 YTD Reconciliation from Reported to Core
FY2023 Q3 YTD Reconciliation from Reported to Core REPORTED TO CORE ADJUSTMENTS (Billion JPY, except EPS and number of shares) REPORTED Amortization of Impairment of Other CORE intangible intangible operating income/ Others assets assets expenses Revenue 3,212.9 3,212.9 Cost of sales (1,044.2) (0.1)
Slide 39: FY2023 Q3 (Oct-Dec) Reconciliation from Reported to Core
FY2023 Q3 (Oct-Dec) Reconciliation from Reported to Core REPORTED TO CORE ADJUSTMENTS (Billion JPY, except EPS and number of shares) REPORTED Amortization of Impairment of Other CORE intangible intangible operating income/ Others assets assets expenses Revenue 1,111.2 1,111.2 Cost of sales (379.5) 0
Slide 40: FY2024 Q3 YTD Adjusted Free Cash Flow
FY2024 Q3 YTD Adjusted Free Cash Flow (Million USD) FY2023 FY2024 FY2024 Q3 YTD (Billion JPY) vs. PY Q3 YTD Q3 YTD Convenience USD Translation Net profit 147.2 211.2 64.0 43.5 % 1,342 Depreciation, amortization and impairment losses 675.5 609.9 (65.7) 3,875 Decrease (increase) in trade working capit
Slide 41: FY2024 Q3 YTD Adjusted Net Debt to Adjusted EBITDA
FY2024 Q3 YTD Adjusted Net Debt to Adjusted EBITDA NET DEBT/ADJUSTED EBITDA RATIO NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS FY2024 FY2023 FY2024 (Billion JPY) Q3 YTD (Billion JPY) vs. PY Q3 YTD Q3 YTD Book value of bonds and loans on consolidated statements of Net cash from operating acti
Slide 42: FY2023 Adjusted Net Debt to Adjusted EBITDA
FY2023 Adjusted Net Debt to Adjusted EBITDA NET DEBT/ADJUSTED EBITDA RATIO NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (Billion JPY) FY2023 (Billion JPY) FY2022 FY2023 vs. PY Book value of bonds and loans on consolidated statements of Net cash from operating activities (Operating Cash Flow)
Slide 43: FY2024 Q3 YTD Net Profit to Adjusted EBITDA Bridge
FY2024 Q3 YTD Net Profit to Adjusted EBITDA Bridge FY2023 FY2024 (Billion JPY) vs. PY Q3 YTD Q3 YTD Net profit 147.2 211.2 64.0 43.5 % Income tax expenses (benefit) (46.9) 71.1 Depreciation and amortization 541.3 571.6 Interest expense, net 82.0 87.8 EBITDA 723.6 941.8 218.2 30.2 % Impairment losses
Slide 44: FY2024 Q3 YTD Net Profit to Adjusted EBITDA LTM Bridge
FY2024 Q3 YTD Net Profit to Adjusted EBITDA LTM Bridge FY2023 FY2023 FY2024 FY2024 (Billion JPY) Full Year Q3 YTD Q3 YTD Q3 LTM*1 (Apr - Mar) (Apr - Dec) (Apr - Dec) (Jan - Dec) Net profit 144.2 147.2 211.2 208.2 Income tax expenses (benefit) (91.4) (46.9) 71.1 26.6 Depreciation and amortization 728
Slide 45: Q3 YTD CAPEX, Depreciation and Amortization and Impairment Losses
FY2024 Q3 YTD CAPEX, Depreciation and Amortization and Impairment Losses FY2023 FY2024 Revised Forecast (Billion JPY) vs. PY Q3 YTD Q3 YTD (January 30, 2025) Capital expenditures*1 416.4 255.1 (161.3) (38.7)% 380.0 - 420.0 Tangible assets 130.9 152.0 21.1 16.1 % Intangible assets 285.5 103.1 (182.4)
Slide 46: Full Year Detailed Forecast
FY2024 Full Year Detailed Forecast Previous Forecast Revised Forecast vs. Previous (BN JPY) (October 31, 2024) (January 30, 2025) Forecast Variances Revenue 4,480.0 4,590.0 110.0 2.5 % Business momentum including Vyvanse, plus FX benefit Cost of sales (1,555.0) (1,585.0) (30.0) (1.9)% Reflects reven
Slide 47: Full Year Reconciliation from Reported Operating Profit to Core Forecast
FY2024 Full Year Reconciliation from Reported Operating Profit to Core Operating Profit Forecast REPORTED TO CORE ADJUSTMENTS Other operating (Billion JPY) REPORTED Amortization of Impairment of CORE income (expenses) intangible intangible and other assets assets adjustments Revenue 4,590.0 4,590.0
Slide 48: Full Year FX Rates Assumptions and Currency Sensitivity
FY2024 Full Year FX Rates Assumptions and Currency Sensitivity vs. Forecast Average Exchange Rates vs. JPY Impact of depreciation of yen from January 2025 to March 2025 (100 million JPY) Core FY2023 Q3 FY2024 Q3 FY2024 Full Year FY2024 Q4 Operating Revenue Net Profit Operating Actual Actual Assumpti
Slide 49: Takeda Investor Relations
Takeda Investor Relations: takeda.ir.contact@takeda.com © 2025 Takeda Pharmaceutical Company Limited. All rights reserved.
Takeda Pharmaceutical Company — Q3 2024 Earnings Presentation on 6ix