Takeda Pharmaceutical Co. Ltd. · TSE:4502
Takeda Pharmaceutical — Q3 FY2020 Earnings Presentation
72 slides from Takeda Pharmaceutical's earnings presentation, Feb 4, 2021
Slide 1: FY2020 Q3 Earnings Announcement
BETTER HEALTH FOR PEOPLE, BRIGHTER FUTURE FOR THE WORLD FY2020 Q3 Earnings Announcement February 4, 2021
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: Agenda
01. Introduction Christophe Weber President & CEO 02. R&D Engine Andrew Plump AGENDA President, R&D 03. Financial Strength Costa Saroukos Chief Financial Officer 04. Q&A Session
Slide 4: Introduction
INTRODUCTION Christophe Weber President & Chief Executive Officer 01. 02. 03. 04. Introduction R&D Financial Q&A Engine Strength Session
Slide 5: Executing Strategy to Deliver Long-Term Value
EXECUTING STRATEGY TO DELIVER LONG-TERM VALUE FY2020 Q3 YTD results demonstrate continued resilience of Takeda’s portfolio EXECUTING STRATEGY AS R&D progress with submission of TAK-721, the first of 7 potential NME filings in next 12 months ONE TAKEDA Confirming full-year management guidance w
Slide 6: FY20 Q3 Results Demonstrate Continued Resilience of Portfolio
FY20 Q3 RESULTS DEMONSTRATE CONTINUED RESILIENCE OF PORTFOLIO Resilient YTD performance driven by +15% underlying revenue growth of 14 Global Brands • Underlying Revenue growth +1.1%1 with strong momentum of ENTYVIO, TAKHZYRO, and IG portfolio • Reported Revenue JPY 2,427.5B (~USD 23.5B)2 declined -
Slide 7: Progress Across Multi-Pronged Approach to Fight COVID-19
PROGRESS ACROSS MULTI-PRONGED APPROACH TO FIGHT COVID-19 Approach Candidate Mechanism Current status Recombinant s-protein • Partnership with Novavax for the manufacturing technology transfer, development, TAK-019 vaccine candidate against (in-license from SARS-CoV-2 adjuvanted and commercialization
Slide 8: R&D Engine
R&D ENGINE Andrew Plump President, Research & Development 01. 02. 03. 04. Introduction R&D Financial Q&A Engine Strength Session
Slide 9: Takeda's R&D Engine With Potential to Deliver Life-Transforming Medicines
TAKEDA’S R&D ENGINE WITH POTENTIAL TO DELIVER A SERIES OF LIFE-TRANSFORMING MEDICINES 12 WAVE 1 pipeline assets with potential approval by FY2024 • 12 NMEs with best-in-class / first-in-class potential in areas of high unmet need • 10 target orphan patient populations; 6 have Breakthrough and/or Fas
Slide 10: Momentum in Our Dynamic Pipeline Based on Emerging Data
MOMENTUM IN OUR DYNAMIC PIPELINE BASED ON EMERGING DATA WAVE 11 WAVE 22 CLINICAL-STAGE NMEs TARGET APPROVAL FY20 FY21 FY22 FY23 FY24 FY25/26 FY27 AND BEYOND •• mobocertinib • pevonedistat mobocertinib pevonedistat TAK-981 TAK-605 TAK-252 TAK-102 2L NSCLC with EGFR HR-MDS 1L NSCLC with EGFR Unfit AML
Slide 11: Continue to Drive Against Our Key Deliverables in FY2020
CONTINUE TO DRIVE AGAINST OUR KEY DELIVERABLES IN FY2020 MOA TAU /BU EXPECTED EVENT 1 FY20 COMMENTS Proof-of-concept data in Lennox-Gastaut syndrome for ELEKTRA study H1 soticlestat CH24H inhibitor Neuroscience Proof-of-concept data in Dravet syndrome for ELEKTRA H1 (TAK-935) Proof-of-concept data i
Slide 12: Select Pipeline Events for Approved Therapies Expected in FY2020
SELECT PIPELINE EVENTS FOR APPROVED THERAPIES EXPECTED IN FY2020 COMPOUND EXPECTED EVENT 1 FY20 Comments ICLUSIG Submission in US of OPTIC data for CP-CML H1 Approval obtained from FDA in Dec 2020 Approval decision in US for 1L ALK+ NSCLC H1 ALUNBRIG ONCOLOGY Submission in US and EU for 2L post 2nd
Slide 13: All Wave 1 Medicines Have Near-Term Pivotal Milestones
ALL WAVE 1 MEDICINES HAVE NEAR-TERM PIVOTAL MILESTONES EXPECTED DEVELOPMENT STAGE PROGRAM INDICATION NEXT MILESTONE TIMING TAK-721 Eosinophilic esophagitis Approval Q4FY201 Regulatory TAK-003 Prevention of dengue fever Submission Q4FY20 Milestones TAK-609 Hunter syndrome CNS Submission Q4FY20 moboce
Slide 14: Mobocertinib: Key Takeaways from WCLC
MOBOCERTINIB: KEY TAKEAWAYS FROM WCLC1 • Mobocertinib is a first-in-class oral TKI specifically designed to selectively target EGFR Exon20 insertions in patients with mNSCLC, who currently have no approved targeted options available. • In previously treated patients with EGFR Exon20 insertions, curr
Slide 15: Maribavir Superior in Treatment of Resistant or Refractory CMV Infection
MARIBAVIR SUPERIOR IN THE TREATMENT OF RESISTANT OR REFRACTORY CMV1 INFECTION FOLLOWING STEM CELL AND ORGAN TRANSPLANT • Maribavir is a first-in-class oral UL97 kinase inhibitor. Other existing CMV1 therapies target UL54. • No approved options for Resistant or Refractory CMV. • Maribavir has shown s
Slide 16: Financial Strength
FINANCIAL STRENGTH Costa Saroukos Chief Financial Officer 01. 02. 03. 04. Introduction R&D Financial Q&A Engine Strength Session
Slide 17: Acceleration of Growth in Q3 Confirms Confidence in Full-Year Guidance
ACCELERATION OF GROWTH IN Q3 CONFIRMS CONFIDENCE IN FULL-YEAR MANAGEMENT GUIDANCE Underlying Revenue growth +1.1%1 driven by 14 Global Brands; Reported revenue -3.6% RESILIENT Underlying Core Operating Profit margin 32.1%2 driven by synergies and OPEX efficiencies FY20 Q3 YTD Reported Operatin
Slide 18: Q3 Reported Operating Profit Growth +121% Reflecting Lower PPA & Integration Costs
Q3 REPORTED OPERATING PROFIT GROWTH +121% REFLECTING LOWER PPA & INTEGRATION COSTS; STRONG MARGINS & CASHFLOW DEMONSTRATE TAKEDA’S FINANCIAL RESILIENCE FY2020 Q3 YTD FINANCIAL RESULTS (SUMMARY) (BN YEN) REPORTED CORE*1 UNDERLYING*2 FY2020 Q3 YTD VS. PRIOR YEAR FY2020 Q3 YTD VS. PRIOR YEAR REVENUE 2,
Slide 19: Reported Revenue and Core Operating Profit Impacted by FX Headwinds
REPORTED REVENUE AND CORE OPERATING PROFIT IMPACTED BY FX HEADWINDS Reported Revenue vs FY2019 Q3 YTD Core Operating Profit vs FY2019 Q3 YTD1 (BN JPY) -3.6% -1.5% 2,519.5 +1.1pp -1.5pp -3.2pp 792.2 2,427.5 780.6 FY2019 Business Divestitures FX FY2020 FY2019 Business Divestitures FX FY2020 Q3 YTD mom
Slide 20: Underlying Revenue Growth Driven by Key Business Areas
UNDERLYING REVENUE GROWTH +1.1%1 DRIVEN BY 5 KEY BUSINESS AREAS +4%, REPRESENTING ~82% OF FY2020 Q3 YTD REVENUE RARE DISEASES PLASMA-DERIVED % of Sales: 18% THERAPIES (PDT) OTHER Growth: -3% % of Sales: 18% GI ONCOLOGY NEUROSCIENCE Growth: -13% % of Sales: 24% RARE METABOLIC RARE HEMATOLOGY HEREDITA
Slide 21: Exceptional Growth of GI Franchise Spearheaded by ENTYVIO
G A ST R OENT ER OL OG Y ( G I) EXCEPTIONAL GROWTH OF GI FRANCHISE SPEARHEADED BY GUT-SELECTIVE ENTYVIO® GI P O RTFOL IO EX P A N D IN G P A T IEN T SH A R E IN T H E U .S., EU A N D JA P A N FY2020 Q3 YTD, UNDERLYING REVENUE GROWTH The only gut-selective IBD therapy, ENTYVIO provides early control,
Slide 22: Hereditary Angioedema Portfolio Posts Double Digit Underlying Growth
R A R E D ISEA SES HEREDITARY ANGIOEDEMA (HAE) PORTFOLIO POSTS DOUBLE DIGIT UNDERLYING GROWTH DRIVEN BY CONTINUED EXCELLENT PERFORMANCE FROM TAKHZYRO® TAKHZYRO IS EXPANDING THE HEREDITARY ANGIOEDEMA PROPHYLAXIS MARKET HEREDITARY ANGIOEDEMA FY 2020 Q 3 Y T D, UN DE R L Y I NG R E V E N UE G R O W T H
Slide 23: Rare Metabolic Sustained Growth Except NATPARA; Rare Hematology
R A R E D ISEA SES RARE METABOLIC SUSTAINED GROWTH EXCEPT FOR NATPARA® U.S. RECALL; RARE HEMATOLOGY COMPETITIVE LANDSCAPE IN LINE WITH EXPECTATIONS RARE METABOLIC RARE HEMATOLOGY FY 2020 Q 3 Y T D, UN DE R L Y I NG R E V E N UE G R O W T H FY 2020 Q 3 Y T D, UN DE R L Y I NG R E V E N UE G R O W T H
Slide 24: PDT Growth Driven by Gammagard Liquid, Cuvitru & HyQvia
P L A SM A - D ER IVED T H ER A P IES PDT GROWTH DRIVEN BY GAMMAGARD LIQUID, CUVITRU & HYQVIA PDT IMMUNOLOGY PORTFOLIO FY 2020 Q 3 Y T D, UN DE R L Y I NG R E V E N UE G R O W T H Immunoglobulin products underlying growth (+14%) driven by strong (BN JPY) demand for Gammagard Liquid in the U.S. as
Slide 25: Strong Oncology Portfolio Continues to Expand Indications
O NC OL OG Y STRONG ONCOLOGY PORTFOLIO CONTINUES TO EXPAND INDICATIONS ONCOLOGY PORTFOLIO FY2020 Q3 YTD, UNDERLYING REVENUE GROWTH ENT ER ED INT O D IA G NOST IC A G R EEM ENT Takeda and Foundation Medicine announced a collaboration (BN JPY) agreement to develop companion diagnostics for ALUNBRIG
Slide 26: Neuroscience Portfolio Experiencing Some Impact from COVID-19
N EU R OSC IENC E NEUROSCIENCE PORTFOLIO EXPERIENCING SOME IMPACT FROM COVID-19; NEW PATIENT STARTS RECOVERING BUT NOT YET BACK TO PRE-COVID LEVELS COVID-19 related stay-at-home restrictions NEUROSCIENCE PORTFOLIO significantly reduced patient visits, subsequent FY2020 Q3 YTD, UNDERLYING REVENUE G
Slide 27: Global Brands Underlying Revenue Growth of +15.4%
14 GLOBAL BRANDS UNDERLYING REVENUE GROWTH OF +15.4% FY2020 Q3 YTD REVENUE FY2020 Q3 YTD REVENUE versus PY GLOBAL versus PY GLOBAL (BN JPY) (MM USD) (underlying) BRAND (BN JPY) (MM USD) (underlying) BRAND 319.3 3,094 +24.0% IMMUNOGLOBULIN 248.0 2,404 +13.7% 64.1 622 +15.3% +17.5% PDT IMMUNOLOGY 50.1
Slide 28: Core Operating Profit Adjusts for Non-Cash Purchase Accounting Expenses
CORE OPERATING PROFIT ADJUSTS FOR ITEMS INCLUDING NON-CASH PURCHASE ACCOUNTING EXPENSES AND OTHER ACQUISITION-RELATED COSTS BRIDGE FROM FY2020 Q3 YTD REPORTED TO CORE OPERATING PROFIT 1 (BN JPY) 780.6 307.6 -13.8 58.5 Other 68.4 Shire related purchase accounting 239.2 358.7 69.6 Reported Unwinding o
Slide 29: Strong Q3 YTD Underlying Core Earnings Margin of 32.1%
STRONG Q3 YTD UNDERLYING CORE EARNINGS MARGIN OF 32.1%; ON TRACK TO FULL-YEAR AND MID-TERM MARGIN TARGETS UNDERLYING CORE OPERATING PROFIT MARGIN EVOLUTION1 Mid Low 30s% 32.1% 30s% 28.9% 22% FY2018 FY2019 Gross Margin, FY2020 FY2020 Target within fiscal Cost synergies & Q3 YTD Guidance years 2021-20
Slide 30: Q3 YTD Operating Cash Flow Comfortably Covered Dividend, Debt Repayment & Interest
Q3 YTD OPERATING CASH FLOW COMFORTABLY COVERED FULL YEAR DIVIDEND, DEBT REPAYMENT & INTEREST (BN JPY) Free cash flow1 717.5 Total liquidity of ~JPY 1.3T (~USD 12.8B)2 including JPY 700B from undrawn committed line of credit 124.5 232.0 209.6 274.7 610.0 83.4 637.6 169.8 617.6 2020 Operating Divestme
Slide 31: Net Debt/Adjusted EBITDA at 3.6x Even After Full-Year Dividend
NET DEBT/ADJUSTED EBITDA AT 3.6x EVEN AFTER FULL-YEAR DIVIDEND CHANGE IN NET DEBT (BN JPY) Free cash flow1 717.5 4,234.0 3,946.5 610.0 71.9 83.4 274.7 232.0 124.5 2020 Operating Divestments Capex Full-year Net interest Other3 2020 April 1st cash flow / Net sale of dividend paid December 31st (beginn
Slide 32: Exceeded $10B Non-Core Asset Divestitures Target
EXCEEDED $10B NON-CORE ASSET DIVESTITURES TARGET & INCREMENTAL TARGET FOR REAL ESTATE & MARKETABLE SECURITIES NON-CORE ASSET DIVESTITURES SALE OF REAL ESTATE (ANNOUNCED SINCE JANUARY 2019) DEAL CLOSED & MARKETABLE SECURITIES1 XIIDRA up to $5.3B JUN ‘19 (IN FY2020) NEMEA $200M MAR ‘20 CASH RECEIVED R
Slide 33: Abundant Cashflow Pays Down Debt; Call Most of FY2021 Maturities
ABUNDANT CASHFLOW PAYS DOWN FY2020 DEBT AND ENABLES US TO CALL MOST OF FY2021 DEBT MATURITIES MATURITY LADDER AS OF DECEMBER 2020 (AS ADJUSTED)1,2 1,000 All of FY20 and most of FY21 debt maturities already paid-off 800 or called (2) BILLION JPY 600 400 HYBRID PAID-OFF CALLED 200 - ‖ ‖ FY 20 FY 21 FY
Slide 34: Confirming Full-Year Management Guidance; Reported EPS Upgrade
CONFIRMING FULL-YEAR MANAGEMENT GUIDANCE REPORTED EPS UPGRADE ON MORE FAVORABLE TAX RATE ASSUMPTION FY2020 FY2020 PREVIOUS UPDATED UNDERLYING2 (BN YEN) FORECAST FORECAST CHANGE MANAGEMENT GUIDANCE (October 2020) (February 2021) REVENUE 3,200.0 3,200.0 - Low-single-digit growth REPORTED OPERATING PRO
Slide 35: Strong Margins & Cashflow Reinforce Confidence to Meet Financial Targets
STRONG MARGINS & CASHFLOW REINFORCE CONFIDENCE TO MEET FINANCIAL TARGETS FY2020 Q3 YTD ACTUAL FY2020 OUTLOOK FINANCIAL TARGET UNDERLYING ACCELERATING REVENUE GROWTH 1 +1.1% LOW-SINGLE-DIGIT IN MID-TERM UNDERLYING 32.1% LOW-30s% MID-30s% CORE OP MARGIN 2 (WITHIN FY2021-2023) FREE CASH FLOW 3 JPY 717.
Slide 36: Upcoming Investor Events
UPCOMING INVESTOR EVENTS GROWTH & EMERGING MARKETS MARCH 11TH, 2021, THURSDAY STRATEGIC UPDATE CALL (6:30 A.M. EST / 8:30 P.M. JST) WAVE 1 PIPELINE APRIL 6TH, 2021, TUESDAY MARKET OPPORTUNITY CALL (PART 2) (TIME TO BE CONFIRMED) FY2020 Q4 EARNINGS MAY 11TH, 2021, TUESDAY CONFERENCE CALL (TIME TO BE
Slide 37: Closing Remarks
CLOSING REMARKS Christophe Weber President & Chief Executive Officer
Slide 38: Q&A Session
Q&A SESSION Christophe Weber Andrew Plump Costa Saroukos Masato Iwasaki Ramona Sequeira Julie Kim President & Chief President, Research & Chief Financial Officer President, Japan Pharma President, U.S. Business President, Plasma-Derived Executive Officer Development Business Unit Unit & Global Portf
Slide 39: Appendix
APPENDIX n
Slide 40: 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
Slide 41: 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 Operating Profit represents net profit adjusted to exclude income tax expenses, evaluation purposes. the share of profit or loss of investments accounted for using the equ
Slide 42: 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
Slide 43: 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
Slide 44: FY2020 Q3 YTD Reported Results
FY2020 Q3 YTD REPORTED RESULTS (BN JPY) FY2019 FY2020 vs. PY Q3 YTD Q3 YTD Revenue 2,519.5 2,427.5 -91.9 -3.6% Cost of sales -841.6 -740.9 +100.7 +12.0% Gross Profit 1,677.9 1,686.7 +8.8 +0.5% Margin 66.6% 69.5% +2.9pp SG&A expenses -711.7 -641.3 +70.4 +9.9% R&D expenses -353.1 -342.5 +10.5 +3.0% Am
Slide 45: FY2020 Q3 (Oct-Dec) Reported Results
FY2020 Q3 (Oct-Dec) REPORTED RESULTS FY2019 FY2020 (BN JPY) Q3 Q3 vs. PY (Oct-Dec) (Oct-Dec) Revenue 859.3 836.8 -22.6 -2.6% Cost of sales -279.6 -253.1 +26.4 +9.5% Gross Profit 579.7 583.6 +3.9 +0.7% Margin 67.5% 69.7% +2.3pp SG&A expenses -249.2 -222.6 +26.6 +10.7% R&D expenses -122.7 -117.6 +5.1
Slide 46: FY2020 Q3 YTD Core Results
FY2020 Q3 YTD CORE RESULTS FY2019 FY2020 (BN JPY) Q3 YTD vs. PY Q3 YTD Revenue 2,519.5 2,427.5 -3.6% Gross Margin 73.3% 72.5% -0.8pp Operating expenses -1,054.7 -979.9 +7.1% % of Revenue 41.9% 40.4% -1.5pp Core Operating profit1 792.2 780.6 -1.5% Margin 31.4% 32.2% +0.7pp Core tax rate -19.8% -24.1%
Slide 47: FY2020 Q3 (Oct-Dec) Core Results
FY2020 Q3 (Oct-Dec) CORE RESULTS FY2019 FY2020 (BN JPY) Q3 Q3 vs. PY (Oct-Dec) (Oct-Dec) Revenue 859.3 836.8 -2.6% Gross Margin 72.3% 72.9% +0.6pp Operating expenses -370.6 -337.1 +9.0% % of Revenue 43.1% 40.3% -2.8pp Core Operating profit1 250.5 273.1 +9.0% Margin 29.2% 32.6% +3.5pp Core tax rate -
Slide 48: Reconciliation from Reported Revenue to Underlying Revenue Q3 YTD
RECONCILIATION FROM REPORTED REVENUE TO UNDERLYING REVENUE FY2020 Q3 YTD vs. PY (BN JPY) FY2019 FY2020 vs. PY Q3 YTD Q3 YTD Revenue 2,519.5 2,427.5 -91.9 -3.6% Fx effects*1 +3.2pp Divestitures*2 +1.5pp XIIDRA +0.4pp Regional portofolio +1.0pp TACHOSIL +0.1pp Others +0.2pp Underlying Revenue Growth +
Slide 49: Reconciliation from Reported Revenue to Underlying Revenue Q3
RECONCILIATION FROM REPORTED REVENUE TO UNDERLYING REVENUE FY2020 Q3 (Oct-Dec) vs. PY FY2019 FY2020 (BN JPY) Q3 Q3 vs. PY (Oct-Dec) (Oct-Dec) Revenue 859.3 836.8 -22.6 -2.6% Fx effects*1 +3.4pp Divestitures*2 +1.4pp Regional portofolio +1.2pp TACHOSIL +0.0pp Others +0.1pp Underlying Revenue Growth +
Slide 50: Reconciliation Reported to Core/Underlying Core FY2020 Q3 YTD
RECONCILIATION FROM REPORTED TO CORE/UNDERLYING CORE FY2020 Q3 YTD REPORTED TO CORE ADJUSTMENTS CORE TO UNDERLYING CORE ADJ. (BN JPY) REPORTED Amortization & Other Shire Teva JV CORE UNDERLYING impairment of operating Shire purchase related Swiss Tax GROWTH integration Reform Others FX Divestitures
Slide 51: Reconciliation Reported to Core/Underlying Core FY2020 Q3
RECONCILIATION FROM REPORTED TO CORE/UNDERLYING CORE FY2020 Q3 (Oct-Dec) REPORTED TO CORE ADJUSTMENTS CORE TO UNDERLYING CORE ADJ. (BN JPY) REPORTED Amortization & Other Shire Teva JV CORE UNDERLYING impairment of operating Shire purchase related Swiss Tax GROWTH integration Reform Others FX Divesti
Slide 52: Reconciliation Reported to Core/Underlying Core FY2019 Q3 YTD
RECONCILIATION FROM REPORTED TO CORE/UNDERLYING CORE FY2019 Q3 YTD REPORTED TO CORE ADJUSTMENTS CORE TO UNDERLYING CORE ADJ. (BN JPY) REPORTED Amortization & Other Shire Shire Teva JV CORE UNDERLYING impairment of operating acquisition purchase related Swiss Tax CORE intangible income/ related accou
Slide 53: Reconciliation Reported to Core/Underlying Core FY2019 Q3
RECONCILIATION FROM REPORTED TO CORE/UNDERLYING CORE FY2019 Q3 (Oct-Dec) REPORTED TO CORE ADJUSTMENTS CORE TO UNDERLYING CORE ADJ. (BN JPY) REPORTED Amortization & Other Shire Teva JV CORE UNDERLYING impairment of operating Shire purchase related Swiss Tax CORE integration Reform Others FX Divestitu
Slide 54: Reconciliation Reported to Core/Underlying Core FY2019 Full Year
RECONCILIATION FROM REPORTED TO CORE/UNDERLYING CORE FY2019 FULL YEAR REPORTED TO CORE ADJUSTMENTS CORE TO UNDERLYING CORE ADJ. (BN JPY) REPORTED Amortization & Other Shire Shire Teva JV CORE UNDERLYING impairment of operating acquisition purchase Swiss Tax related CORE intangible income/ related Re
Slide 55: Reconciliation from Reported to Core FY2018 Full Year
RECONCILIATION FROM REPORTED TO CORE FY2018 FULL YEAR REPORTED TO CORE ADJUSTMENTS Amortization & Shire Shire*1 Teva JV Gains on (BN JPY) REPORTED*1 impairment of Other acquisition purchase related Sales of CORE operating income/ Others intangible expense related accounting accounting Securities & a
Slide 56: Free Cash Flow
FREE CASH FLOW FY2019 FY2020 (BN JPY) Q3 YTD Q3 YTD vs. PY Net profit 42.7 179.0 +136.3 +319.0 % Depreciation, amortization and impairment loss 472.9 430.4 -42.5 Decrease (increase) in trade working capital -15.4 -48.9 -33.6 Income taxes paid -203.2 -146.3 +56.9 Other 187.3 195.8 +8.5 Net cash from
Slide 57: Net Debt/Adjusted EBITDA
NET DEBT/ADJUSTED EBITDA NET DEBT/ADJUSTED EBITDA RATIO NET INCREASE (DECREASE) IN CASH (BN JPY) FY2020 FY2019 FY2020 Q3 YTD (BN JPY) vs. PY Q3 YTD Q3 YTD Cash and cash equivalents*1 602.9 Net cash from operating activities 484.3 610.0 +125.7 +25.9% Acquisition of PP&E -89.8 -75.0 Book value debt on
Slide 58: FY2020 Q3 YTD Net Profit to Adjusted EBITDA Bridge
FY2020 Q3 YTD NET PROFIT TO ADJUSTED EBITDA BRIDGE (BN JPY) FY2019 FY2020 vs. PY Q3 YTD Q3 YTD Net profit 42.7 179.0 +136.3 +319.0% Income tax expenses 13.3 56.3 Depreciation and amortization 437.9 420.3 Interest expense, net 104.8 99.7 EBITDA 598.7 755.3 +156.6 +26.2% Impairment losses 35.0 10.1 Ot
Slide 59: FY2020 Q3 LTM Net Profit to Adjusted EBITDA Bridge
FY2020 Q3 LTM NET PROFIT TO ADJUSTED EBITDA BRIDGE (BN JPY) FY2019 FY2020 FY2020 Q4 (Jan-Mar) Q3 YTD LTM*1 Net profit 1.6 179.0 180.6 Income tax expenses -118.3 56.3 -62.0 Depreciation and amortization 145.7 420.3 566.0 Interest expense, net 33.0 99.7 132.7 EBITDA 62.0 755.3 817.3 Impairment losses
Slide 60: FY2020 Revised Forecast (Detail)
FY2020 REVISED FORECAST (DETAIL) FY2020 FY2020 (BN JPY) Previous Revised vs. Previous Variances Forecast Forecast Forecast (October 29, 2020) (February 4, 2021) Revenue 3,200.0 3,200.0 — — Cost of sales N/D1 N/D1 R&D expenses -448.0 -448.0 — — Amortization of intangible assets -403.0 -403.0 — — Impa
Slide 61: FY2020 Core Operating Profit Adjustment Items, Cash Flow Guidance & Key Assumptions
FY2020 CORE OPERATING PROFIT ADJUSTMENT ITEMS, CASH FLOW GUIDANCE & OTHER KEY ASSUMPTIONS CORE OPERATING PROFIT ADJUSTMENT ITEMS CASH FLOW GUIDANCE FY2020 FY2020 (BN JPY) FY2020 Revised (BN JPY) FY2020 Revised Q3 YTD Forecast Q3 YTD Forecast (February 4, 2021) (February 4, 2021) Shire integration co
Slide 62: Reconciliation Reported to Core Operating Profit – FY2020 Revised Forecast
RECONCILIATION FROM REPORTED OPERATING PROFIT TO CORE OPERATING PROFIT – FY2020 REVISED FORECAST REPORTED TO CORE ADJUSTMENTS (BN JPY) REPORTED Amortization of Impairment of Other Shire Shire CORE intangible intangible operating income/ integration purchase assets assets expense costs accounting (Ta
Slide 63: FX Rates and FY2020 Currency Sensitivity
FX RATES AND FY2020 CURRENCY SENSITIVITY Average Exchange Rates vs. JPY Impact of 1% depreciation of yen from October 2020 to March 2021 (100 million JPY) FY2019 FY2020 FY2020 Core Q3 YTD Q3 YTD Assumption Operating Operating Revenue Profit Net Profit (Apr-Dec) (Apr-Dec) (Apr-Mar) Profit USD 109 106
Slide 64: Maximizing the Value of Our Approved and Regional Therapies
MAXIMIZING THE VALUE OF OUR APPROVED AND REGIONAL THERAPIES PHASE 1 & 2 PHASE 3 FILED NINLARO® ALUNBRIG® ALUNBRIG® NINLARO® ICLUSIG® NINLARO® ALUNBRIG® ADCETRIS® Proteasome inhibitor ALK inhibitor ALK inhibitor Proteasome inhibitor ALK inhibitor Seattle Genetics 2L ALK+NSCLC 2nd gen TKI Proteasome i
Slide 65: Following Through on Commitments and Planning for Wave 1 Near-Term Growth
FOLLOWING THROUGH ON OUR COMMITMENTS AND PLANNING FOR ROBUST WAVE 1 NEAR-TERM GROWTH Potential approval of New Molecular Entities Potential extensions to global brands Potential extensions to regional brands F Y 20 F Y 21 F Y 22 F Y 23 F Y 24 1. US approval for sc UC dependent on timeline to resolve
Slide 66: Mobocertinib Is a First-in-Class Oral Therapy With Clinical Benefit
MOBOCERTINIB IS A FIRST-IN-CLASS ORAL THERAPY THAT HAS SHOWN CLINICAL BENEFIT IN PLATINUM PRETREATED EGFR EXON20 PATIENTS mobocertinib (TAK-788) Platinum Pretreated Potential New Standard Of Care For NSCLC Patients With Parameter Patient Cohort (N=114) EGFR Exon20 Insertion Mutations Confirmed ORR p
Slide 67: Maribavir Superior in Treatment of Resistant or Refractory CMV Infection
MARIBAVIR SUPERIOR IN THE TREATMENT OF RESISTANT OR REFRACTORY CMV1 INFECTION FOLLOWING STEM CELL AND ORGAN TRANSPLANT maribavir (TAK-620) Superior Efficacy Maribavir IAT Potential 1st Approved Treatment For Patients Primary Endpoint With Post-Transplant CMV Infection In Over 10 Years Confirmed CMV
Slide 68: Diverse and Experienced Takeda Executive Team
JAPAN DIVERSE AND EXPERIENCED TAKEDA EXECUTIVE TEAM CHRISTOPHE WEBER COSTA SAROUKOS MASATO IWASAKI TAKAKO OHYABU YOSHIHIRO PADMA MILANO FURUTA President & CEO Chief Financial Officer President, Japan Pharma Chief Global Corporate NAKAGAWA THIRUVENGADAM Corporate Strategy Officer Business Unit Affair
Slide 69: Diverse & Experienced Board With ~70% Independent Directors
DIVERSE & EXPERIENCED BOARD WITH ~70% INDEPENDENT DIRECTORS & THREE COMMITTEES INTERNAL DIRECTORS INDEPENDENT DIRECTORS1 CB NC CC NC CC Christophe Weber Masato Iwasaki Masahiro Sakane Olivier Bohuon Jean-Luc Butel Ian Clark Representative Director, Director, President, Independent Director Independe
Slide 70: Capital Allocation to Maximize Value for Patients & Shareholders
CAPITAL ALLOCATION TO MAXIMIZE VALUE FOR PATIENTS & SHAREHOLDERS ■ Takeda is delivering on its financial commitments, and with a strong cash flow outlook driven by business momentum, cost synergies, and non-core asset divestures, we will allocate capital to maximize value for patients & shareholders
Slide 71: Glossary of Abbreviations
GLOSSARY OF ABBREVIATIONS Regional Abbreviations: cTTP congenital thrombotic thrombocytopenic purpura iNHL Indolent non-Hodgkin’s lymphoma PBS phosphate buffered saline CN: China; EU: Europe; JP: Japan; US: United States of America DAAO D-amino acid oxidase I/O immuno-oncology PCAB potassium competi
Slide 72: © 2021 Takeda Pharmaceutical Company Limited. All rights reserved
© 2021 Takeda Pharmaceutical Company Limited. All rights reserved
Takeda Pharmaceutical Company — Q3 FY2020 Earnings Presentation on 6ix