Takeda Pharmaceutical Co. Ltd. · TSE:4502
Takeda Pharmaceutical — FY2020 Earnings Presentation
23 slides from Takeda Pharmaceutical's earnings presentation, May 11, 2021
Slide 1: Takeda Delivers Resilient FY2020 Results with Strong Margins & Robust Cashflow
Takeda Delivers Resilient FY2020 Results with Strong Margins & Robust Cashflow Underlying Revenue Growth Expected to Accelerate in FY2021 FY2020 Earnings Media Presentation May 11, 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: Better health for people, Brighter future for the world
Better health for people, Brighter future for the world Our vision is to discover and deliver life-transforming treatments, guided by our commitment to: PATIENTS PEOPLE PLANET fee 229 By & BY UNLEASHING THE POWER OF DATA AND DIGITAL Af
Slide 4: Progressing Toward Our Purpose of Better Health for People, Brighter Future for Our World
PROGRESSING TOWARD OUR PURPOSE OF “BETTER HEALTH FOR PEOPLE, BRIGHTER FUTURE FOR OUR WORLD” • Launched R&D Center for Health Equity and Patient Affairs to identify and address health inequities. • Developed the Health Outcomes Observatory (H20) project, which brings together diverse public and priva
Slide 5: Progress with Vaccine Partnerships to Combat COVID-19
PROGRESS WITH VACCINE PARTNERSHIPS TO COMBAT COVID-19 Vaccine Mechanism Current status Candidate Recombinant s-protein • Partnership with Novavax in Japan for the development, manufacturing and commercialization TAK-019 vaccine candidate against of 250 million doses of their COVID-19 vaccine candida
Slide 6: FY2020 Results Demonstrated Resilience of Portfolio
FY2020 RESULTS DEMONSTRATED RESILIENCE OF PORTFOLIO DELIVERED MANAGEMENT GUIDANCE WITH STRONG MARGINS & ROBUST CASHFLOW • UNDERLYING REVENUE +2.2%1 growth Driven by 14 Global Brands with underlying growth of +16.0% • REPORTED REVENUE JPY 3,197.8B (~USD 28.9B) Declined -2.8% due to FX and divestiture
Slide 7: Underlying Revenue Growth +2.2% Driven by Key Business Areas
UNDERLYING REVENUE GROWTH +2.2%1 DRIVEN BY 5 KEY BUSINESS AREAS +4.7%, REPRESENTING ~82% OF FY2020 REVENUE RARE DISEASES PLASMA-DERIVED % of Sales: 19% THERAPIES (PDT) OTHER Growth: -2% % of Sales: 18% GI ONCOLOGY NEUROSCIENCE Growth: -9% % of Sales: 24% RARE METABOLIC RARE HEMATOLOGY HEREDITARY ANG
Slide 8: R&D Strategy
A GLOBAL VALUES-BASED BIOPHARMACEUTICAL COMPANY WITH A PATIENT-DRIVEN AND SCIENCE-FIRST R&D ENGINE R&D STRATEGY INNOVATIVE PIPELINE • 11 WAVE 1 NMEs INNOVATIVE BIOPHARMA • ~30 WAVE 2 NMEs • ~40% internal / ~60% external spend • Targeted population/high innovation bar ONCOLOGY RARE GENETICS & • Small
Slide 9: Pivoting from Integration to Accelerating Topline & Pipeline
PIVOTING FROM INTEGRATION TO ACCELERATING TOPLINE & PIPELINE FY2018-FY2020 FY2021 AND BEYOND FINANCIALS Delivered management guidance each year Acceleration of topline growth to Mid-single digit underlying revenue growth guidance in FY2021 through integration & pandemic Topline growth momentum expec
Slide 10: Underlying Revenue Growth Expected to Accelerate in FY2021
UNDERLYING REVENUE GROWTH EXPECTED TO ACCELERATE IN FY2021; RAMPING UP R&D INVESTMENT TO SUPPORT THE PIPELINE FY2020 FY2021 UNDERLYING3 (BN YEN) RESULTS FORECAST (MANAGEMENT GUIDANCE) REVENUE 3,197.8 3,370.0 Mid-single-digit growth R&D EXPENSES -455.8 -522.0 REPORTED OPERATING PROFIT 509.3 488.0 Mid
Slide 11: Pivoting from Integration to Accelerating Topline & Pipeline: FY2020 to FY2021
PIVOTING FROM INTEGRATION TO ACCELERATING TOPLINE & PIPELINE FY2020 FY2021 A Year of Resilience While A Year of Inflection With Essentially Closing Out Integration Focus on Topline & Pipeline • Resilience through COVID-19 pandemic • Acceleration of topline growth • Maintained business continuity • M
Slide 12: Q&A Session
Q&A SESSION Christophe Weber Costa Saroukos Milano Furuta Julie Kim President & Chief Chief Financial Officer President, Japan Pharma President, Plasma-Derived Executive Officer Business Unit Therapies Business Unit
Slide 13: Appendix
APPENDIX n
Slide 14: 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 15: 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 16: 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 17: Reconciliation from Reported Revenue to Underlying Revenue
RECONCILIATION FROM REPORTED REVENUE TO UNDERLYING REVENUE FY2020 (BN JPY) FY2019 FY2020 vs. PY Revenue 3,291.2 3,197.8 -93.4 -2.8% Fx effects*1 +3.0pp Divestitures*2 +2.1pp XIIDRA +0.3pp Regional portofolio +1.2pp TACHOSIL +0.1pp Others +0.4pp Underlying Revenue Growth + 2.2% *1 FX adjustment appli
Slide 18: Reconciliation from Reported to Core/Underlying Core
RECONCILIATION FROM REPORTED TO CORE/UNDERLYING CORE FY2020 REPORTED TO CORE ADJUSTMENTS CORE TO UNDERLYING CORE ADJ. Amortization Other Shire Teva JV UNDERLYING (BN JPY) REPORTED & Shire CORE operating purchase related TCHC Swiss Tax GROWTH impairment of income/ integration accounting accounting Ot
Slide 19: Free Cash Flow
FREE CASH FLOW (BN JPY) FY2019 FY2020 vs. PY Net profit 44.3 376.2 +331.9 +749.3 % Depreciation, amortization and impairment loss 685.5 585.1 -100.4 Decrease (increase) in trade working capital 72.7 53.3 -19.5 Income taxes paid -226.8 -201.7 +25.1 Other 94.0 198.0 +104.1 Net cash from operating acti
Slide 20: Net Debt/Adjusted EBITDA
NET DEBT/ADJUSTED EBITDA NET DEBT/ADJUSTED EBITDA RATIO NET INCREASE (DECREASE) IN CASH (BN JPY) FY2020 (BN JPY) FY2019 FY2020 vs. PY Cash and cash equivalents*1 790.7 Net cash from operating activities 669.8 1,010.9 +341.2 +50.9% Acquisition of PP&E -127.1 -111.2 Book value debt on the balance shee
Slide 21: Net Profit to Adjusted EBITDA Bridge
NET PROFIT TO ADJUSTED EBITDA BRIDGE FY2019 FY2020 (BN JPY) vs. PY LTM*1 LTM*1 Net profit 44.3 376.2 +331.9 +749.3% Income tax expenses -105.0 -9.9 Depreciation and amortization 583.6 559.7 Interest expense, net 137.8 129.0 EBITDA 660.7 1,054.9 +394.2 +59.7% Impairment losses 101.9 25.5 Other operat
Slide 22: Reconciliation from Reported Operating Profit to Core Operating Profit – FY2021 Forecast
RECONCILIATION FROM REPORTED OPERATING PROFIT TO CORE OPERATING PROFIT – FY2021 FORECAST REPORTED TO CORE ADJUSTMENTS (BN JPY) REPORTED Other Japan CORE Amortization of Impairment of operating diabetes intangible intangible Others assets assets income/ portfolio expenses divestiture Revenue 3,370.0
Slide 23: © 2021 Takeda Pharmaceutical Company Limited. All rights reserved
© 2021 Takeda Pharmaceutical Company Limited. All rights reserved
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