Takeda Pharmaceutical Co. Ltd. · TSE:4502
Takeda Pharmaceutical — FY2021 Earnings Presentation
68 slides from Takeda Pharmaceutical's earnings presentation, May 11, 2021
Slide 1: FY2021 Earnings Announcement
TSE: 4502 Better health for people, Brighter future for the world FY2021 Earnings Announcement May 11th, 2022
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
Introduction Christophe Weber President & CEO Pipeline Update Andy Plump AGENDA President, R&D Financials Costa Saroukos Chief Financial Officer Q&A Session
Slide 4: Committed to Unlocking Long-Term Value
COMMITTED TO UNLOCKING LONG-TERM VALUE Our Strategy to Deliver Sustainable Growth and Value for Shareholders Commercial Momentum to Scale Innovation Differentiated Pipeline for Sustainable Growth Built on a Solid Financial Foundation • Driven by diverse and balanced portfolio of • Approximately 40 a
Slide 5: FY2021 Business Highlights: Accelerating Topline & Pipeline
FY2021 BUSINESS HIGHLIGHTS: ACCELERATING TOPLINE & PIPELINE Acceleration of Topline Growth Progress in our Innovative Pipeline • Strong performance against Management Guidance with • EXKIVITY and LIVTENCITY approved in the U.S. with underlying revenue +7.4%1 (reported revenue +11.6%) both experienci
Slide 6: FY2022 Outlook: Continuing to Drive Growth Momentum
FY2022 OUTLOOK: CONTINUING TO DRIVE GROWTH MOMENTUM Outlook for Topline & Core EPS Growth Committed to Advancing Pipeline • Strong growth expected to be driven by Growth & Launch • 10 late-stage development programs with upcoming Products, more than offsetting Loss of Exclusivity headwinds NME filin
Slide 7: Plasma-Derived Therapies: Delivering Revenue Targets
PLASMA-DERIVED THERAPIES: DELIVERING REVENUE TARGETS & SURPASSING PRE-PANDEMIC DONATION VOLUMES PDT delivered exceptional growth in FY2021 Surpassing pre-pandemic donation volumes • Met or exceeded all underlying revenue targets for PDT portfolio • FY2021 plasma donation volume +3% vs pre-pandemic l
Slide 8: Balanced Portfolio in Key Business Areas
BALANCED PORTFOLIO IN 5 KEY BUSINESS AREAS, WITH GROWTH MOMENTUM DRIVEN BY GROWTH & LAUNCH PRODUCTS FY2021 REVENUE1 RARE DISEASES PLASMA-DERIVED OTHER % of Sales: 18% THERAPIES (PDT) % of Sales: 14% GI Growth: -1% ONCOLOGY NEUROSCIENCE Growth: +13% % of Sales: 25% RARE RARE GENETICS PDT IMMUNOLOGY %
Slide 9: Growth & Launch Products Momentum Through Upcoming LOE
MOMENTUM OF GROWTH & LAUNCH PRODUCTS GIVES US POSITION OF STRENGTH THROUGH UPCOMING LOSS OF EXCLUSIVITY (LOE) HEADWINDS CORE REVENUE OUTLOOK1 Graph is illustrative (BN JPY) FY2024 and beyond • Continued expansion of Growth & Launch Products Includes • Further launches from innovative pipeline VYVANS
Slide 10: Better Health for People, Brighter Future for the World
Better Health for People, Brighter Future for the World Our Ourvision visionisisto to discover discover and and deliver life-transforming treatments, guided by our commitment to: deliver life-transforming We are guided by our values treatments, guided by our commitment to: of Takeda-ism which incorp
Slide 11: Agenda
Introduction Christophe Weber President & CEO Pipeline Update Andy Plump AGENDA President, R&D Financials Costa Saroukos Chief Financial Officer Q&A Session
Slide 12: Creating a Highly Differentiated Pipeline for Sustainable Growth
CREATING A HIGHLY DIFFERENTIATED PIPELINE FOR SUSTAINABLE GROWTH 1 We celebrate two NME approvals in the U.S. in 2 Our pipeline is dynamic and diverse. Most are 3 We are embracing data and digital technologies FY2021 and are continuing first in class molecules in to improve the quality of to build a
Slide 13: Updates to Our Pipeline Since Q3 Announcement
UPDATES TO OUR PIPELINE SINCE Q3 ANNOUNCEMENT #1 PMDA Approvals 2021 Takeda received most NCE/NBE approvals in Japan (4)1 and most overall approvals (8)1 TAKHZYRO, VONVENDI Approval in Japan for HAE and prophylaxis of von Willebrand Disease, respectively Nuvaxovid (TAK-019) Approval of COVID-19 Vacc
Slide 14: 10 Late-Stage Development Programs
10 LATE-STAGE DEVELOPMENT PROGRAMS WITH UPCOMING NME FILING AND EXPANSION OPPORTUNITIES FY21 FY22 FY23 FY24 FY25-27 2L NSCLC1 2L NSCLC1 1L NSCLC1 EXKIVITY Approved US, UK Filed EU, China Target Filing ONCOLOGY R/R MM R/R MM R/R MM modakafusp alfa Ph1 POC Ph2 Start2 Target Filing R/R CMV 1L CMV R/R C
Slide 15: Key Proof-of-Concept Readouts in FY22/23
KEY PROOF-OF-CONCEPT READOUTS IN FY22/23 EXPECTED TO ADD TO LATE-STAGE PIPELINE AND GLOBAL FILINGS IN MID/LATE 2020’S FY22 FY23 FY24 and Beyond subasumstat 1st POC Solid Tumors Heme and/or Solid Tumors Approximately 30 NMEs in ONCOLOGY Ph1 and Ph2 clinical development CD19+ hematological TAK-007 mal
Slide 16: Advancing the Field of Orexin Therapeutics
TAKEDA IS ADVANCING THE FIELD OF OREXIN THERAPEUTICS WITH A PIONEERING MULTI-ASSET FRANCHISE • TAK-9941: Completed Phase 2 studies, data analysis ongoing to inform clinical development of OX2R agonist Narcolepsy Type 1 • TAK-861: Currently in Phase 1 (incl. NT12 cohort) as a potential longer acting
Slide 17: LCM Milestones for Growth & Launch and Other Key Products
LCM MILESTONES FOR OUR GROWTH & LAUNCH AND OTHER KEY PRODUCTS FY21 FY22 FY23 CABOMETYX CABOMETYX ICLUSIG Approved 1L RCC + nivo Japan Target Filing NSCLC, CRPC Japan Target Filing 1L Ph+ ALL US ONCOLOGY ALUNBRIG Approved ALK+ NSCLC China ALUNBRIG Study read out H-2-H vs Alectinib in 2L1 TAKHZYRO TAK
Slide 18: Expected Key Approvals and Phase 3 Read-outs in FY2022
EXPECTED KEY APPROVALS AND PHASE 3 READ-OUTS IN FY2022 EU and endemic TAK-003 Dengue vaccine countries approval KEY POTENTIAL LIVTENCITY Post-transplant R/R CMV EU approval REGULATORY APPROVALS EXKIVITY 2L NSCLC w/ EGFR exon 20 insertion mutation EU approval HYQVIA HyHub1 device U.S. approval LIVTEN
Slide 19: Agenda
Introduction Christophe Weber President & CEO Pipeline Update Andy Plump AGENDA President, R&D Financials Costa Saroukos Chief Financial Officer Q&A Session
Slide 20: Record Underlying Revenue Growth in FY2021 & Strong Outlook
RECORD UNDERLYING REVENUE GROWTH IN FY2021 OF +7.4%1 & STRONG OUTLOOK FOR REVENUE, PROFIT & CASHFLOW IN FY2022 FY2021 (APR-MAR) • Underlying Revenue growth +7.4%1 driven by Growth Products such as ENTYVIO, TAKHZYRO, and Immunoglobulin TOPLINE with underlying growth in all regions: U.S. +3.5%; Japan
Slide 21: FY2021: Outperforming on Underlying Core EPS and Free Cash Flow
FY2021: OUTPERFORMING ON UNDERLYING CORE EPS AND FREE CASH FLOW FY2021 GUIDANCE FY2021 RESULTS UNDERLYING REVENUE1 Mid-single-digit growth +7.4% Strong topline performance driven by Growth Products Mid-single-digit growth +5.4% Margin slightly behind guidance due to temporary sales UNDERLYING CORE m
Slide 22: FY2021: Acceleration of Topline Growth and Robust Cash Flow
FY2021: ACCELERATION OF TOPLINE GROWTH AND ROBUST CASH FLOW FY2021 (APR-MAR) FINANCIAL RESULTS (SUMMARY) (BN YEN) REPORTED CORE1 UNDERLYING2 FY2021 VS. PRIOR YEAR FY2021 VS. PRIOR YEAR REVENUE 3,569.0 +11.6% 3,420.5 +7.0% +7.4% OPERATING PROFIT 460.8 -9.5% 955.2 -1.3% +5.4% Margin 12.9% -3.0pp 27.9%
Slide 23: FY2021 Revenue Momentum Driven by Growth Products
FY2021 REVENUE MOMENTUM DRIVEN BY GROWTH PRODUCTS FY2021 REVENUE VS PRIOR YEAR +11.6% (BN JPY) 3,569.0 +7.0% 15.5 133.0 3,420.5 -5.6pp +5.2pp +7.4pp 3,197.8 FY2020 Reported / Business momentum Divestitures2 FX FY2021 Core Sale of Japan Other Core Revenue FY2021 Reported Core Revenue1 (Underlying gro
Slide 24: FY2021 Core Operating Profit Broadly Flat
FY2021 CORE OPERATING PROFIT BROADLY FLAT DESPITE INCREASE IN R&D INVESTMENT AND SIGNIFICANT DIVESTITURE IMPACT FY2021 CORE OPERATING PROFIT VS PRIOR YEAR (BN JPY) -1.3% 967.9 955.2 FY2020 Core Underlying business Increased R&D Divestitures2 FX FY2021 Core Operating Profit1 (excl. increased investme
Slide 25: FY2021 Abundant Cashflow Covered Dividend, Debt Repayment, Buyback
FY2021 ABUNDANT CASHFLOW COMFORTABLY COVERED FULL YEAR DIVIDEND, DEBT REPAYMENT, INTEREST AND SHARE BUYBACK FY2021 CASH FLOW (BN JPY) Free Cash Flow1 943.7 Total liquidity of JPY 1.3T (USD 11.1B)2 38.6 including JPY 700B from undrawn 186.0 committed line of credit 32.0 32.0 32. and excluding pass-th
Slide 26: Net Debt/Adjusted EBITDA Improves to 2.8x
NET DEBT/ADJUSTED EBITDA IMPROVES TO 2.8x; ON TRACK TO LOW-TWOS CHANGE IN NET DEBT (BN JPY) 5,097.9 Excludes pass-through cash of JPY 207.5B Free Cash Flow 1 943.7 3,429.4 3,233.8 297.2 1,123.1 77.5 89.7 283.7 32.0 38.6 186.0 2019 2021 Operating Divestments Capex Pass-through Full-year Net interest
Slide 27: FY2022: Core Operating Profit Exceeding 1 Trillion Yen
FY2022: CORE OPERATING PROFIT EXCEEDING 1 TRILLION YEN FOR FIRST TIME (BN YEN) REPORTED CORE1 CORE GROWTH AT CER2 FY2022 FORECAST VS. PRIOR YEAR FY2022 FORECAST VS. PRIOR YEAR FY2022 MANAGEMENT GUIDANCE REVENUE 3,690.0 +3.4% 3,690.0 +7.9% Low-single-digit growth OPERATING PROFIT 520.0 +12.8% 1,100.0
Slide 28: FY2022: Core Operating Profit Expected to Reach JPY 1.1 Trillion
FY2022: CORE OPERATING PROFIT EXPECTED TO REACH JPY 1.1 TRILLION MAINLY DRIVEN BY BUSINESS MOMENTUM, WITH LESS DIVESTITURE IMPACT FY2022 CORE OPERATING PROFIT OUTLOOK (BN JPY) +15.2% 1,100.0 955.2 FY2021 Core Business Incremental Divestitures2 FX FY2022 Core Operating Profit1 Momentum R&D Operating
Slide 29: FY2022: Robust Cash Flow to Drive Further Deleveraging
FY2022: EXPECT ROBUST CASH FLOW TO DRIVE FURTHER DELEVERAGING FY2022 CASH FLOW OUTLOOK (BN JPY) Total liquidity of JPY 1.1T (USD 9.1B)4 including JPY 700B from undrawn committed line of credit 600 ~500 ~ 700 849.7 ~280 ~83 Includes JPY ~300B of 25 intended pre-payments Completed in ~208 April 2022 3
Slide 30: Fixed Rate Debt at 98% with Balanced Maturity Profile
TOTAL PROPORTION OF FIXED RATE DEBT NOW AT 98% WITH WELL BALANCED MATURITY PROFILE MATURITY LADDER AS OF 31 MARCH 2022 (AS ADJUSTED) 1 1,000 $219M USD Bond 800 Called for Prepayment (Paid in April 2022) BILLION JPY 600 PAID 250 Bn JPY, 0.4% IN PAID Bond issued in Oct. 2021 FY21 IN FY21 PAID PRIOR TO
Slide 31: 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 robust 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
Slide 32: Committed to Unlocking Long-Term Value
COMMITTED TO UNLOCKING LONG-TERM VALUE Our Strategy to Deliver Sustainable Growth and Value for Shareholders Commercial Momentum to Scale Innovation Differentiated Pipeline for Sustainable Growth Built on a Solid Financial Foundation • Acceleration of topline growth in FY2021 with • Approximately 40
Slide 33: 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 Representative Director; Director; President, Director; Representative Director; President & CEO Research & Development Chief Financial Officer Japan General Affairs RA MO N A S E Q U E I RA JULIE
Slide 34: Appendix
APPENDIX
Slide 35: Takeda's Disclosure Metrics
TAKEDA’S DISCLOSURE METRICS “REPORTED” “CORE” “UNDERLYING” From Core Results, further adjust for: Financial results recorded and From Reported Results, adjust for: prepared in accordance with 1. Impact of foreign exchange 1. Amortization and impairment International Financial Reporting expenses for
Slide 36: Definition of Core, Underlying Growth and Constant Exchange Rate
DEFINITION OF CORE, UNDERLYING GROWTH AND CONSTANT EXCHANGE RATE 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 comp
Slide 37: 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 38: 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 39: GI Franchise Continues to Drive Significant Growth
G A ST R OENT ER OL OG Y ( G I) GI FRANCHISE CONTINUES TO DRIVE SIGNIFICANT GROWTH OF +7% GI PORTFOLIO FY2021 Revenue JPY 521.8B (+15% growth) FY 2021 R E V E N UE • Future growth across all markets to be driven by continued share growth in bio-naïve, amid overall biologic market growth (Entyvio glo
Slide 40: Rare Diseases Franchise Enhanced by Launch of Livtencity
R A R E D ISEA SES RARE DISEASES FRANCHISE ENHANCED BY LAUNCH OF LIVTENCITY FY2021 Revenue JPY 103.2B (+12% growth) RARE DISEASES PORTFOLIO FY 2021 R E V E N UE • TAKHZYRO is a global market prophylaxis leader treating almost 3,200 patients • Strong efficacy profile of 87% reduction of monthly HAE a
Slide 41: PDT Portfolio Delivered Exceptional Growth in FY2021
P L A SM A - D ER IVED T H ER A P IES PDT PORTFOLIO DELIVERED EXCEPTIONAL GROWTH IN FY2021 PDT IMMUNOLOGY PORFOLIO Immunoglobulin Albumin FY 2021 R E V E N UE FY2021 Revenue JPY 385.9B (+9% growth) FY2021 Revenue JPY 90.0B (+42% growth) • Continued strong demand globally and growing supply; • Strong
Slide 42: Strong Oncology Portfolio Expands with Launch of Exkivity
O NC OL OG Y STRONG ONCOLOGY PORTFOLIO EXPANDS WITH LAUNCH OF EXKIVITY Early indicators of success since U.S. launch in September 2021 ONCOLOGY PORTFOLIO FY 2021 R E V E N UE • New patient starts exceeded expectations and market data indicate EXKIVITY is capturing approximately half of new patient s
Slide 43: Neuroscience Franchise Continues Rebound
N EU R OSC IENC E NEUROSCIENCE FRANCHISE CONTINUES REBOUND FROM PRIOR YEAR COVID-19 IMPACT N EURO SCIENCE P O RTFOL IO FY2021 Revenue JPY 327.1B (+13% growth) FY 2021 R E V E N UE • Growth in FY2022 will be driven by the expanding adult market in the U.S. (BN JPY) • Ramping down product-related OPEX
Slide 44: 14 Global Brands Represent 42% of FY2021 Core Revenue
14 GLOBAL BRANDS REPRESENT 42% OF FY2021 CORE REVENUE1 WITH UNDERLYING GROWTH +12.0% versus PY versus PY FY2021 REVENUE (BN JPY) (MM USD) 2 (underlying) FY2021 Q3 YTD REVENUE (BN JPY) (MM USD) 2 (underlying) 521.8 4,297 +14.5% 91.2 751 -1.5% 75.8 624 +11.0% 13.6 112 +46.9% 1.8 15 +121.7% IMMUNOGLOBU
Slide 45: FY2021 Reported Results
FY2021 REPORTED RESULTS (BN JPY) FY2020 FY2021 vs. PY Revenue 3,197.8 3,569.0 +371.2 +11.6% Cost of sales -994.3 -1,106.8 -112.5 -11.3% Gross Profit 2,203.5 2,462.2 +258.7 +11.7% Margin 68.9% 69.0% +0.1pp SG&A expenses -875.7 -886.4 -10.7 -1.2% R&D expenses -455.8 -526.1 -70.3 -15.4% Amortization of
Slide 46: FY2021 Q4 Reported Results
FY2021 Q4 (Jan-Mar) REPORTED RESULTS FY2020 FY2021 (BN JPY) Q4 Q4 vs. PY (Jan-Mar) (Jan-Mar) Revenue 770.3 873.3 +103.0 +13.4% Cost of sales -253.4 -308.4 -54.9 -21.7% Gross Profit 516.8 564.9 +48.1 +9.3% Margin 67.1% 64.7% -2.4pp SG&A expenses -234.4 -223.4 +11.0 +4.7% R&D expenses -113.3 -143.6 -3
Slide 47: FY2021 Core Results
FY2021 CORE RESULTS1 (BN JPY) FY2020 FY2021 vs. PY Revenue 3,197.8 3,420.5 +7.0% Gross Margin 71.6% 69.0% -2.6pp Operating expenses -1,323.0 -1,404.7 -6.2% % of Revenue 41.4% 41.1% +0.3pp Core Operating profit 967.9 955.2 -1.3% Margin 30.3% 27.9% -2.3pp Core tax rate 22.4% 20.7% +1.7pp Core Net prof
Slide 48: FY2021 Q4 Core Results
FY2021 Q4 (Jan-Mar) CORE RESULTS1 FY2020 FY2021 (BN JPY) Q4 Q4 vs. PY (Jan-Mar) (Jan-Mar) Revenue 770.3 857.9 +11.4% Gross Margin 68.9% 65.5% -3.4pp Operating expenses -343.1 -364.7 -6.3% % of Revenue 44.5% 42.5% +2.0pp Core Operating profit 187.3 197.3 +5.3% Margin 24.3% 23.0% -1.3pp Core tax rate
Slide 49: Reconciliation from Reported Revenue to Core/Underlying Revenue FY2021
RECONCILIATION FROM REPORTED REVENUE TO CORE/UNDERLYING REVENUE FY2021 VERSUS PRIOR YEAR (BN JPY) FY2020 FY2021 vs. PY Reported Revenue 3,197.8 3,569.0 +371.2 + 11.6% Sale of Japan diabetes portfolio1 and - -148.5 -148.5 -4.6pp other non-core product divestitures Core Revenue 3,197.8 3,420.5 +222.7
Slide 50: Reconciliation from Reported Revenue to Core/Underlying Revenue Q4
RECONCILIATION FROM REPORTED REVENUE TO CORE/UNDERLYING REVENUE FY2021 Q4 (Jan-Mar) VERSUS PRIOR YEAR FY2020 FY2021 (BN JPY) Q4 Q4 vs. PY (Jan-Mar) (Jan-Mar) Reported Revenue 770.3 873.3 +103.0 + 13.4% Other non-core product divestitures - -15.4 -15.4 -2.0pp Core Revenue 770.3 857.9 +87.6 + 11.4% FX
Slide 51: Reconciliation from Reported to Core/Underlying FY2021
RECONCILIATION FROM REPORTED TO CORE/UNDERLYING FY2021 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/ Assessment1 acco
Slide 52: Reconciliation from Reported to Core/Underlying FY2021 Q4
RECONCILIATION FROM REPORTED TO CORE/UNDERLYING FY2021 Q4 (Jan-Mar) 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
Slide 53: Reconciliation from Reported to Core/Underlying FY2020
RECONCILIATION FROM REPORTED TO CORE/UNDERLYING FY2020 CORE TO REPORTED TO CORE ADJUSTMENTS UNDERLYING CORE ADJ. (BN JPY) REPORTED Other TEVA JV CORE Amortization Impairment of operating related TCHC of intangible intangible Others FX Divestitures income/ accounting divestiture1 assets assets UNDERL
Slide 54: Reconciliation from Reported to Core/Underlying FY2020 Q4
RECONCILIATION FROM REPORTED TO CORE/UNDERLYING FY2020 Q4 (Jan-Mar) CORE TO REPORTED TO CORE ADJUSTMENTS UNDERLYING CORE ADJ. (BN JPY) REPORTED Other TEVA JV CORE Amortization Impairment of operating related TCHC of intangible intangible Others FX Divestitures income/ accounting divestiture1 assets
Slide 55: Free Cash Flow
FREE CASH FLOW (BN JPY) FY2020 FY2021 vs. PY Net profit 376.2 230.2 -146.0 -38.8% Depreciation, amortization and impairment loss 585.1 637.7 +52.5 Decrease (increase) in trade working capital 53.3 206.3 +153.0 Income taxes paid -235.8 -147.7 +88.1 Tax refunds and interest on tax refunds received 34.
Slide 56: Net Debt/Adjusted EBITDA
NET DEBT/ADJUSTED EBITDA NET DEBT/ADJUSTED EBITDA RATIO NET INCREASE (DECREASE) IN CASH (BN JPY) FY2021 (BN JPY) FY2020 FY2021 vs. PY Net cash from operating activities 1,010.9 1,123.1 +112.2 +11.1% Cash and cash equivalents1 642.2 Acquisition of PP&E -111.2 -123.3 Proceeds from sales of PP&E 46.5 1
Slide 57: Net Profit to Adjusted EBITDA Bridge
NET PROFIT TO ADJUSTED EBITDA BRIDGE FY2021 VERSUS PRIOR YEAR (BN JPY) FY2020 FY2021 vs. PY Net profit 376.2 230.2 -146.0 -38.8% Income tax expenses -9.9 72.4 Depreciation and amortization 559.7 583.2 Interest expense, net 129.0 117.8 EBITDA 1,054.9 1,003.6 -51.4 -4.9% Impairment losses 25.5 54.5 Ot
Slide 58: FY2021 Results vs. Forecast
FY2021 RESULTS VS. FORECAST (FEB. 2022) FY2021 FY2021 (BN JPY) Forecast vs. Forecast Variances Actual (February 3, 2022) Revenue 3,510.0 3,569.0 +59.0 +1.7% Underlying business momentum and Fx tailwind R&D expenses -522.0 -526.1 -4.1 -0.8% Amortization of intangible assets -412.0 -418.8 -6.8 -1.6% I
Slide 59: FY2022 Detailed Forecast
FY2022 DETAILED FORECAST FY2021 FY2022 (BN JPY) vs. PY Variances Actual Forecast Core business growth & Fx tailwind offsetting the FY2021 booking of Revenue 3,569.0 3,690.0 +121.0 +3.4% 133.0B in reported revenue from sale of Japan diabetes business Cost of Sales -1,106.8 N/D1 Fx: Majority of R&D sp
Slide 60: FY2022 Core Operating Profit Adjustment Items & Cash Flow Forecast
FY2022 CORE OPERATING PROFIT ADJUSTMENT ITEMS & CASH FLOW FORECAST CORE OPERATING PROFIT ADJUSTMENT ITEMS FY2021 FY2022 (BN JPY) Actual Forecast Amortization of intangible assets 418.8 438.0 Of which Shire-acquisition related 339.7 358.0 Impairment losses of intangible assets 54.1 50.0 Other operati
Slide 61: Reconciliation from Reported to Core Operating Profit FY2022 Forecast
RECONCILIATION FROM REPORTED OPERATING PROFIT TO CORE OPERATING PROFIT – FY2022 FORECAST REPORTED TO CORE ADJUSTMENTS Other (BN JPY) REPORTED Amortization of Impairment of CORE operating intangible intangible Others income/ assets assets expenses Revenue 3,690.0 3,690.0 Cost of sales 24.0 Gross Prof
Slide 62: FX Rates and FY2022 Currency Sensitivity
FX RATES AND FY2022 CURRENCY SENSITIVITY Average Exchange Rates vs. JPY Impact of depreciation of yen from April 2022 to March 2023 (100 million JPY) Core FY2020 FY2021 FY2022 Operating Revenue Net Profit Operating Actual Actual Assumption Profit (IFRS) (IFRS) Profit (Apr-Mar) (Apr-Mar) (Apr-Mar) (I
Slide 63: Consolidated Development Pipeline by Phase
CONSOLIDATED DEVELOPMENT PIPELINE BY PHASE PHASE 3 (6 NMEs + 28 LCMs) FILED (5 NMEs + 13 LCMs) EXKIVITY® ALUNBRIG® ICLUSIG® relugolix EXKIVITY® 1L NSCLC EGFR 2L ALK+ NSCLC H2H Prostate cancer 2L NSCLC EGFR ALUNBRIG® ADCETRIS® exon 20 with alectinib in 2L FL Ph+ ALL (US) (JP, CN) exon 20 1L & 2L ALK+
Slide 64: Consolidated Development Pipeline by Phase
CONSOLIDATED DEVELOPMENT PIPELINE BY PHASE PHASE 1 (21 NMEs + 3 LCMs) PHASE 2 (14 NMEs + 2 LCMs) TAK-102 TAK-676 modakafusp alfa TAK-940 modakafusp alfa subasumstat TAK-007 Solid tumors Solid tumors Solid tumors CD19+ hematologic R/R MM CD19+ hematologic malignancies Multiple cancers malignancies1 O
Slide 65: 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 came to Gastroenterology US NDA approval for Eosinophilic Esophagitis TBD TAK-721 corticosteroid difficult decision to discontinue development program S
Slide 66: Continued Global and Regional Brand Expansion in FY2021
CONTINUED GLOBAL AND REGIONAL BRAND EXPANSION IN FY2021: 11 PROJECTS ACHIEVED AND 2 DELAYED 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
Slide 67: Glossary of Abbreviations
GLOSSARY OF ABBREVIATIONS Regional Abbreviations: DEE developmental and epileptic encephalopathies L-ASA low dose aspirin PEX plasma exchange CN: China; EU: Europe; JP: Japan; US: United States of America DLBCL diffuse large B-cell lymphoma LSD lysosomal storage disorder Philadelphia chromosome-posi
Slide 68: Takeda Investor Relations
Takeda Investor Relations: takeda.ir.contact@takeda.com © 2022 Takeda Pharmaceutical Company Limited. All rights reserved
Takeda Pharmaceutical Company — FY2021 Earnings Presentation on 6ix