Takeda Pharmaceutical Co. Ltd. · TSE:4502

Takeda Pharmaceutical — Q3 2021 Earnings Presentation

62 slides from Takeda Pharmaceutical's earnings presentation, Feb 4, 2021

  1. Slide 1: FY2021 Q3 Earnings Announcement

    Better health for people, Brighter future for the world February 3, 2022 FY2021 Q3 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 Robust topline growth driven by 14 Global Brands • FY2021 Q3 YTD underlying revenue growth +7.1%1; reported revenue growth +11.0% • 14 Global Brands underlying revenue growth +12.0%2 Raising full-year FY2021 forecasts to reflect business mo

  5. Slide 5: Takeda Executive Team

    TAKEDA EXECUTIVE TEAM As of April 1st 2022 C H RI S T O PH E WE BE R A N D Y PL U MP C O S T A S A RO U K O S GA BRI E L E RI C C I KOKI SATO GI L E S PL A T FO RD JULIE KIM Representative Director; Director; President, Director; Chief Data & Corporate Strategy President, Plasma-Derived President, P

  6. Slide 6: 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 and commercialization of their COVID-19 vaccine candidate for the pandemic and beyond at Takeda’s Hikari facility in Japan • Agreement with Go

  7. Slide 7: LIVTENCITY Launched in Q3 in Post-Transplant CMV

    LAUNCHED IN Q3 WITH POTENTIAL TO REDEFINE SUCCESS IN POST-TRANSPLANT CMV INFECTION/DISEASE LIVTENCITY Profile Launch execution & Post-Transplant CMV Market Expected Milestones SUPERIOR EFFICACY (RR) • 190K transplants/year WW1,2 We are pleased to see early • 25% of transplant patients positive marke

  8. Slide 8: 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

  9. Slide 9: Updates to Our Pipeline Since Q2 Announcement

    UPDATES TO OUR PIPELINE SINCE Q2 ANNOUNCEMENT ENTYVIO (vedolizumab) EU approval for the treatment of Active Chronic Pouchitis GLOBAL AND Vonvendi (rVWF) U.S. FDA approval for prophylactic treatment of adults w/ severe Type 3 von Willebrand Disease REGIONAL Spikevax™ MHLW granted approval for 50µg bo

  10. Slide 10: VONVENDI: First Recombinant Treatment for Prophylaxis of Type 3 VWD

    VONVENDI®: FIRST RECOMBINANT TREATMENT FOR PROPHYLAXIS OF ADULTS WITH TYPE 3 VON WILLEBRAND DISEASE (VWD) Recombinant von Willebrand Factor Disease • VWD is considered the most common inherited VONVENDI Ph3 International Multicenter Study on Efficacy Background bleeding disorder affecting ~1 in 100

  11. Slide 11: 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 •• EXKIVITY™3 EXKIVITY™3 subasumstat TAK-007 TAK-676 TAK-5005 TAK-102 2L NSCLC with EGFR 1L NSCLC with EGFR Multiple cancers CD19+ hematologic Solid tumors Solid tumor

  12. Slide 12: Phase 3/Pivotal Programs with Upcoming NME Approval

    PHASE 3/PIVOTAL PROGRAMS WITH UPCOMING NME APPROVAL AND EXPANSION OPPORTUNITIES TAK-999 Ph2 POC Pivotal Start Potential Approval POC Achieved AATD Liver AATD Liver AATD Liver WAVE 2 pabinafusp alfa Pivotal Start Hunter Syndrome Potential Approval Hunter Syndrome Ph1/2 POC Pivotal Start modakafusp al

  13. Slide 13: Proof-of-Concept Readouts Over the Next Two Years

    PROOF-OF-CONCEPT READOUTS OVER THE NEXT TWO YEARS COULD UNLOCK SIGNIFICANT ADDITIONAL VALUE TAK-925 Ph2 POC IV orexin Post-op Additional WAVE 2 Ph2 POC CD19+ TAK-007 Hematological malignancies SELECT TAK-861 / 9941 TAK-861 WAVE 2 oral orexin Ph2 POC NT1 Partnerships with POC FY22-23 First Ph2 POC Ad

  14. Slide 14: 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

  15. Slide 15: Acceleration of Topline Growth: Q3 YTD Underlying Revenue +7.1%

    ACCELERATION OF TOPLINE GROWTH: Q3 YTD UNDERLYING REVENUE +7.1%1 DRIVEN BY 14 GLOBAL BRANDS FY2021 Q3 YTD (APR-DEC) • Underlying Revenue growth +7.1%1 driven by 14 Global Brands +12.0% TOPLINE • Reported Revenue JPY 2,695.7B (USD 23.4B)3 with growth of +11.0% • Underlying Core Operating Profit Margi

  16. Slide 16: Strong Topline Growth in Q3 YTD, Core Operating Profit Reflecting Divestitures

    STRONG TOPLINE GROWTH IN Q3 YTD, WITH CORE OPERATING PROFIT REFLECTING IMPACT OF DIVESTITURES FY2021 Q3 YTD (APR-DEC) FINANCIAL RESULTS (SUMMARY) (BN YEN) REPORTED CORE1 UNDERLYING2 FY2021 Q3 YTD VS. PRIOR YEAR FY2021 Q3 YTD VS. PRIOR YEAR REVENUE 2,695.7 +11.0% 2,562.7 +5.6% +7.1% OPERATING PROFIT

  17. Slide 17: Underlying Revenue Momentum Driven by Global Brands

    UNDERLYING REVENUE MOMENTUM DRIVEN BY 14 GLOBAL BRANDS; REPORTED REVENUE BENEFITTING FROM SALE OF DIABETES PORTFOLIO FY2021 Q3 YTD REVENUE VS PRIOR YEAR +11.0% (BN JPY) 2,695.7 +5.6% 133.0 2,562.7 +7.1pp -6.3pp +4.8pp 2,427.5 FY2020 Q3YTD Business momentum Divestitures2 FX FY2021 Q3YTD Sale of Japan

  18. Slide 18: Underlying Revenue Growth Supported by Key Business Areas

    UNDERLYING REVENUE GROWTH +7.1%1 SUPPORTED BY 5 KEY BUSINESS AREAS WITH STRONG GROWTH OF GI, PDT, ONCOLOGY & NEUROSCIENCE FY2021 Q3 YTD REVENUE2 RARE DISEASES PLASMA-DERIVED OTHER % of Sales: 18% THERAPIES (PDT) % of Sales: 14% GI Growth: -1% ONCOLOGY NEUROSCIENCE Growth: +11% % of Sales: 26% RARE M

  19. Slide 19: 14 Global Brands Represent 42% of Core Revenue

    14 GLOBAL BRANDS REPRESENT 42% OF FY2021 Q3 YTD CORE REVENUE1 WITH UNDERLYING GROWTH +12.0% versus PY versus PY FY2021 Q3 YTD REVENUE (BN JPY) (MM USD) 2 (underlying) FY2021 Q3 YTD REVENUE (BN JPY) (MM USD) 2 (underlying) 395.4 3,433 +17.2% 70.7 614 -1.1% 56.6 492 +7.6% 10.1 88 +48.4% 1.4 12 +123.3%

  20. Slide 20: Growth Momentum of 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 Q3 YTD underlying revenue growth of +12.0% FY2020 • 14 Global Brands underlying growth in all regions FY2021 • U.S. +8% • Europe & Canada +16% • Japan +19% • Growth & Emergi

  21. Slide 21: Core Operating Profit Reflects Divestiture Impact

    CORE OPERATING PROFIT REFLECTS DIVESTITURE IMPACT FY2021 Q3 YTD CORE OPERATING PROFIT 1 (BN JPY) -2.9% 780.6 757.9 FY2020 Q3 YTD Underlying business Increased R&D Divestitures2 FX FY2021 Q3 YTD Core Operating (excl. increased investment Core Operating Profit R&D investment) Profit Graphs are illustr

  22. Slide 22: Robust Q3 YTD Cash Flow Leads to Increased Free Cash Flow Guidance

    ROBUST FY2021 Q3 YTD CASH FLOW LEADS TO INCREASE IN FULL-YEAR FREE CASH FLOW GUIDANCE TO JPY 700-800B (BN JPY) Free Cash Flow1 671.3 Total liquidity of JPY 1.30T (USD 11.3B)2 11.0 including JPY 700B from undrawn 134.2 47.0 47.0 32. committed line of credit and excluding pass-through cash 385.7 747.5

  23. Slide 23: Net Debt/Adjusted EBITDA Improves to 3.0x

    NET DEBT/ADJUSTED EBITDA IMPROVES TO 3.0x EVEN AFTER FULL-YEAR DIVIDEND PAYMENT CHANGE IN NET DEBT Excludes pass-through (BN JPY) cash of JPY 128.5B Free Cash Flow 1 671.3 3,429.4 3,391.9 225.7 52.5 747.5 82.4 273.0 134.2 47.0 11.0 2021 Operating Divestments Capex Pass-through Full-year Net interest

  24. Slide 24: Calling of $1.5B FY2023 Bond; Fixed Rate Debt at 98%

    ABUNDANT CASHFLOW ALLOWS CALLING OF $1.5B FY2023 BOND; TOTAL PROPORTION OF FIXED RATE DEBT NOW AT 98% MATURITY LADDER AS OF 31 DECEMBER 2021 (AS ADJUSTED)1 1,000 $1.5B USD Bond 800 Called for Prepayment (To be paid in Mar 2022) BILLION JPY 600 PAID 250 Bn JPY, 0.4% IN FY21 CALLED Bond issued in Oct.

  25. Slide 25: Raising Full-Year FY2021 Forecasts

    RAISING FULL-YEAR FY2021 FORECASTS TO REFLECT BUSINESS MOMENTUM, OPEX DISCIPLINE, AND FX FAVORABILITY FY2021 FY2021 UNDERLYING2 COMPANY FORECASTS (BN YEN) PREVIOUS REVISED (MANAGEMENT GUIDANCE) (OCT 2021) (FEB 2022) (UNCHANGED FROM MAY 2021) REPORTED REVENUE 3,370.0 3,510.0 Mid-single-digit growth R

  26. Slide 26: Acceleration of Topline Growth: Q3 YTD Underlying Revenue Growth

    ACCELERATION OF TOPLINE GROWTH: Q3 YTD UNDERLYING REVENUE GROWTH +7.1%1 DRIVEN BY 14 GLOBAL BRANDS FY2021 Q3 YTD (APR-DEC) ON TRACK TO DELIVER TARGETS TOPLINE • Underlying Revenue growth +7.1%1 • Management guidance of “mid-single-digit” growth • Core Operating Profit2 JPY 757.9B • Upgrading full-ye

  27. Slide 27: Q&A Session

    Q&A SESSION C H RI S T O PH E WE BE R A N D Y PL U MP C O S T A S A RO U K O S MA S A T O I WA S A K I RA MO N A S E Q U E I RA JULIE KIM Representative Director; Director; President, Director; Representative Director; President, U.S. Business President, Plasma-Derived President & CEO Research & Dev

  28. Slide 28: Appendix

    APPENDIX

  29. Slide 29: 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

  30. Slide 30: 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

  31. Slide 31: 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

  32. Slide 32: 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

  33. Slide 33: 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 • European Commission granted 2 years of extended exclusivity based on fulfillment of PIP plan – GI PORTFOLIO moving regulatory exclusivity from Sept'22 to Sept'24 in Europe. FY 2021 Q 3 Y T D R E V E N UE (BN JPY) • Launc

  34. Slide 34: No Longer Expecting Biosimilar Launch Upon Data Exclusivity Expiry

    NO LONGER EXPECTING BIOSIMILAR LAUNCH UPON ANTICIPATED DATA EXCLUSIVITY EXPIRY TIMING 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 • Our previous base case assumption Anticipated expiry for biosimilar entry timing was based May 2025 May 2026 of data exclusivity 1 on data exclusivity timing

  35. Slide 35: Rare Diseases Revenue in Line with Plan

    R A R E D ISEA SES RARE DISEASES REVENUE IN LINE WITH PLAN; NOW TREATING 3,000 PATIENTS GLOBALLY WITH TAKHZYRO RARE METABOLIC HEREDITARY ANGIOEDEMA RARE HEMATOLOGY FY 2021 Q 3 Y T D R E V E N UE FY 2021 Q 3 Y T D R E V E N UE FY 2021 Q 3 Y T D R E V E N UE (BN JPY) (BN JPY) +5% (BN JPY) 150 +5% 120

  36. Slide 36: PDT Portfolio on Track to Deliver Full-Year Growth Guidance

    P L A SM A - D ER IVED T H ER A P IES PDT PORTFOLIO ON TRACK TO DELIVER FULL-YEAR GROWTH GUIDANCE PDT IMMUNOLOGY PORFOLIO FY 2021 Q 3 Y T D R E V E N UE (BN JPY) • Immunoglobulin products delivered underlying growth of +7% 400 in Q3 YTD fueled by continued expansion of SCIG portfolio. +10% We remain

  37. Slide 37: Strong Oncology Portfolio Continues to Expand Indications

    O NC OL OG Y STRONG ONCOLOGY PORTFOLIO CONTINUES TO EXPAND INDICATIONS ONCOLOGY PORTFOLIO FY 2021 Q 3 Y T D R E V E N UE • US launch (Sep ‘21) off to a strong start, with new patient starts exceeding expectations and positive reception among (BN JPY) physicians to having a new targeted treatment opt

  38. Slide 38: VYVANSE Continues Rebound from Prior Year COVID-19 Impact

    N EU R OSC IENC E VYVANSE CONTINUES REBOUND FROM PRIOR YEAR COVID-19 IMPACT N EURO SCIENCE P O RTFOL IO FY 2021 Q 3 Y T D R E V E N UE • VYVANSE strong growth reflects continued investment in the growing adult space driving re-acceleration to (BN JPY) above pre-COVID expectations in FY2021 as a firs

  39. Slide 39: FY2021 Q3 YTD (Apr-Dec) Reported Results

    FY2021 Q3 YTD (Apr-Dec) REPORTED RESULTS FY2020 FY2021 (BN JPY) vs. PY Q3 YTD Q3 YTD Revenue 2,427.5 2,695.7 +268.2 +11.0% Cost of sales -740.9 -798.5 -57.6 -7.8% Gross Profit 1,686.7 1,897.3 +210.6 +12.5% Margin 69.5% 70.4% +0.9pp SG&A expenses -641.3 -662.9 -21.7 -3.4% R&D expenses -342.5 -382.5 -

  40. Slide 40: FY2021 Q3 (Oct-Dec) Reported Results

    FY2021 Q3 (Oct-Dec) REPORTED RESULTS FY2020 FY2021 (BN JPY) Q3 Q3 vs. PY (Oct-Dec) (Oct-Dec) Revenue 836.8 901.3 +64.5 +7.7% Cost of sales -253.1 -281.4 -28.3 -11.2% Gross Profit 583.6 619.9 +36.3 +6.2% Margin 69.7% 68.8% -1.0pp SG&A expenses -222.6 -231.1 -8.4 -3.8% R&D expenses -117.6 -128.4 -10.8

  41. Slide 41: FY2021 Q3 YTD (Apr-Dec) Core Results

    FY2021 Q3 YTD (Apr-Dec) CORE RESULTS1 FY2020 FY2021 (BN JPY) vs. PY Q3 YTD Q3 YTD Revenue 2,427.5 2,562.7 +5.6% Gross Margin 72.5% 70.2% -2.4pp Operating expenses -979.9 -1,040.0 -6.1% % of Revenue 40.4% 40.6% -0.2pp Core Operating profit 780.6 757.9 -2.9% Margin 32.2% 29.6% -2.6pp Core tax rate 24.

  42. Slide 42: FY2021 Q3 (Oct-Dec) Core Results

    FY2021 Q3 (Oct-Dec) CORE RESULTS1 FY2020 FY2021 (BN JPY) Q3 Q3 vs. PY (Oct-Dec) (Oct-Dec) Revenue 836.8 901.3 +7.7% Gross Margin 72.9% 70.0% -2.9pp Operating expenses -337.1 -358.5 -6.4% % of Revenue 40.3% 39.8% +0.5pp Core Operating profit 273.1 272.2 -0.3% Margin 32.6% 30.2% -2.4pp Core tax rate 2

  43. Slide 43: Reconciliation from Reported Revenue to Core/Underlying Revenue Q3 YTD

    RECONCILIATION FROM REPORTED REVENUE TO CORE/UNDERLYING REVENUE FY2021 Q3 YTD VERSUS PRIOR YEAR FY2020 FY2021 (BN JPY) vs. PY Q3 YTD Q3 YTD Reported Revenue 2,427.5 2,695.7 +268.2 + 11.0% Sale of Japan diabetes portfolio2 - -133.0 -133.0 -5.5pp Core Revenue 2,427.5 2,562.7 +135.1 + 5.6% FX effects1

  44. Slide 44: Reconciliation from Reported Revenue to Core/Underlying Revenue Q3

    RECONCILIATION FROM REPORTED REVENUE TO CORE/UNDERLYING REVENUE FY2021 Q3 (Oct-Dec) VERSUS PRIOR YEAR FY2020 FY2021 (BN JPY) Q3 Q3 vs. PY (Oct-Dec) (Oct-Dec) Reported Revenue 836.8 901.3 +64.5 + 7.7% Sale of Japan diabetes portfolio2 - - - - Core Revenue 836.8 901.3 +64.5 + 7.7% FX effects1 -6.4pp D

  45. Slide 45: Reconciliation from Reported to Core/Underlying FY2021 Q3 YTD

    RECONCILIATION FROM REPORTED TO CORE/UNDERLYING FY2021 Q3 YTD CORE TO REPORTED TO CORE ADJUSTMENTS UNDERLYING CORE ADJ. (BN JPY) REPORTED Other TEVA JV CORE Amortization Impairment of Sale of Japan operating Irish Tax related of intangible intangible diabetes Others FX Divestitures income/ Assessmen

  46. Slide 46: Reconciliation from Reported to Core/Underlying FY2021 Q3

    RECONCILIATION FROM REPORTED TO CORE/UNDERLYING FY2021 Q3 (Oct-Dec) CORE TO REPORTED TO CORE ADJUSTMENTS UNDERLYING CORE ADJ. (BN JPY) REPORTED Other TEVA JV CORE Amortization Impairment of Sale of Japan operating Irish Tax related of intangible intangible diabetes Others FX Divestitures income/ Ass

  47. Slide 47: Reconciliation from Reported to Core/Underlying FY2020 Q3 YTD

    RECONCILIATION FROM REPORTED TO CORE/UNDERLYING FY2020 Q3 YTD CORE TO REPORTED TO CORE ADJUSTMENTS UNDERLYING CORE ADJ. (BN JPY) REPORTED Other CORE Amortization Impairment of TEVA JV related operating of intangible intangible accounting Others FX Divestitures income/ UNDERLYING assets assets adjust

  48. Slide 48: Reconciliation from Reported to Core/Underlying FY2020 Q3

    RECONCILIATION FROM REPORTED TO CORE/UNDERLYING FY2020 Q3 (Oct-Dec) CORE TO REPORTED TO CORE ADJUSTMENTS UNDERLYING CORE ADJ. (BN JPY) REPORTED Other CORE Amortization Impairment of TEVA JV related operating of intangible intangible accounting Others FX Divestitures income/ UNDERLYING assets assets

  49. Slide 49: Free Cash Flow

    FREE CASH FLOW FY2020 FY2021 (BN JPY) vs. PY Q3 YTD Q3 YTD Net profit 179.0 241.5 +62.5 +34.9% Depreciation, amortization and impairment loss 430.4 445.5 +15.1 Decrease (increase) in trade working capital -48.9 41.2 +90.1 Income taxes paid -174.7 -107.2 +67.5 Tax refunds and interest on tax refunds

  50. Slide 50: 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) Q3 YTD Q3 YTD Q3 YTD Net cash from operating activities 610.0 747.5 +137.6 +22.6% Acquisition of PP&E -75.0 -87.7 Cash and cash equivalents1 595.9 Proceeds from sales

  51. Slide 51: Net Profit to Adjusted EBITDA Bridge

    NET PROFIT TO ADJUSTED EBITDA BRIDGE FY2021 Q3 YTD VERSUS PRIOR YEAR FY2020 FY2021 (BN JPY) vs. PY Q3 YTD Q3 YTD Net profit 179.0 241.5 +62.5 +34.9% Income tax expenses 56.3 115.1 Depreciation and amortization 420.3 430.9 Interest expense, net 99.7 86.7 EBITDA 755.3 874.2 +118.9 +15.7% Impairment lo

  52. Slide 52: Net Profit to Adjusted EBITDA LTM Bridge

    NET PROFIT TO ADJUSTED EBITDA LTM BRIDGE FY2020 FY2020 FY2021 FY2021 (BN JPY) Full Year Q3 YTD Q3 YTD Q3 LTM1 (Apr-Mar) (Apr-Dec) (Apr-Dec) (Jan-Dec) Net profit 376.2 179.0 241.5 438.7 Income tax expenses -9.9 56.3 115.1 48.8 Depreciation and amortization 559.7 420.3 430.9 570.3 Interest expense, ne

  53. Slide 53: FY2021 Detailed Revised Forecast

    FY2021 DETAILED REVISED FORECAST FY2021 FY2021 Previous Revised vs. Previous (BN JPY) Reason for Variances Forecast Forecast Forecast (Oct 28, 2021) (Feb 3, 2022) Business momentum, additional doses of Spikevax in Japan, Revenue 3,370.0 3,510.0 +140.0 +4.2% FX favorability Cost of sales N/D1 N/D1 R&

  54. Slide 54: 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 Q3 YTD (February 3, 2022) Amortization of intangible assets 309.1 412.0 Of which Shire-acquisition related 252.2 335.0 Impairment of intangible ass

  55. Slide 55: Reconciliation from Reported to Core Operating Profit – FY2021 Revised Forecast

    RECONCILIATION FROM REPORTED OPERATING PROFIT TO CORE OPERATING PROFIT – FY2021 REVISED 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 3,51

  56. Slide 56: FX Rates and FY2021 Currency Sensitivity

    FX RATES AND FY2021 CURRENCY SENSITIVITY Impact of 1% depreciation of yen from January 2022 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 (A

  57. Slide 57: Our Pipeline Continues to Advance

    OUR PIPELINE CONTINUES TO ADVANCE MOA TAU /BU EXPECTED EVENT1 FY21 COMMENTS Eohilia Muco‐adherent topical Completed comprehensive review of CRL and come to Gastroenterology US NDA approval for Eosinophilic Esophagitis TBD TAK-721 corticosteroid difficult decision to discontinue development program S

  58. Slide 58: 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

  59. Slide 59: 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

  60. Slide 60: R&D Engine Driving Wave 1 Approvals and Expansion of Brands

    R&D ENGINE DRIVING WAVE 1 APPROVALS AND EXPANSION OF GLOBAL AND REGIONAL BRANDS Milestone: Potential approval Potential approval of New Molecular Entities Potential extensions to global brands Potential extensions to regional brands Achieved approvals All timelines are approximate estimates as of Fe

  61. Slide 61: Glossary of Abbreviations

    GLOSSARY OF ABBREVIATIONS CTCL cutaneous T-cell lymphoma IND investigational new drug PARP poly (ADP-ribose) polymerase Regional Abbreviations: CN: China; EU: Europe; JP: Japan; US: United States of America cTTP congenital thrombotic thrombocytopenic purpura iNHL indolent non-Hodgkin’s lymphoma PAS

  62. Slide 62: Takeda Investor Relations

    Takeda Investor Relations: takeda.ir.contact@takeda.com © 2022 Takeda Pharmaceutical Company Limited. All rights reserved

Takeda Pharmaceutical Company — Q3 2021 Earnings Presentation on 6ix