Takeda Pharmaceutical Co. Ltd. · TSE:4502
Takeda Pharmaceutical — Shareholder Meeting (June 2020)
25 slides from Takeda Pharmaceutical's shareholder meeting presentation, Jun 24, 2020
Slide 1: 144th Ordinary General Meeting of Shareholders
144th Ordinary General Meeting of Shareholders Christophe Weber President & CEO June 24th, 2020
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: Our COVID-19 Response Prioritizes Patients and Global Health
OUR COVID-19 RESPONSE PRIORITIZES PATIENTS AND GLOBAL HEALTH As a patient-centric, values-based biopharmaceutical company, Takeda is focused on three priorities during the COVID-19 outbreak: 1. 2. 3. Safeguarding employees Maintaining business Developing potential and their families, and continuity,
Slide 4: Takeda Is Now a Competitive, Global R&D-Driven Biopharmaceutical Company
TAKEDA IS NOW A COMPETITIVE, GLOBAL R&D-DRIVEN BIOPHARMACEUTICAL COMPANY Accelerating Growth & Patient Impact We Are One Next 5 Years Takeda TRANSFORM SCIENCE INTO LIFE-CHANGING MEDICINES Strategic Today WAVE 1 AND WAVE 2 PIPELINE Evolution VALUES BASED, R&D-DRIVEN GLOBAL GROWTH OPPORTUNITIES BIOPHA
Slide 5: Geographic Footprint Aligns with Global Pharma Opportunities
GEOGRAPHIC FOOTPRINT ALIGNS WITH GLOBAL PHARMA OPPORTUNITIES Takeda FY2019 revenues by key region Global pharma industry est. 2020 sales 48% 20% 49% 28% U.S. EUROPE & CANADA U.S. ROW 18% JAPAN 14% GROWTH & EM ERGING M ARKETS 14% 9% 14% JAPAN EU SOURCE: EvaluatePharma®, April 2020, Evaluate, Ltd 5
Slide 6: Solid FY2019 Results
SOLID FY2019 RESULTS ◼ Reported revenue up 57% to JPY 3,291B in first full year following Shire integration ◼ Reported Op Profit exceeds initial guidance at JPY 100B, strong FY20 growth outlook ◼ Core Op Profit up 110% to JPY 962B, Underlying Core OP margin of 28.9% (+7pps) 1 2 ◼ Strong free cash fl
Slide 7: Growth Momentum Expected to Continue in FY2020 with Dividend of 180 Yen/Share
GROWTH MOMENTUM EXPECTED TO CONTINUE IN FY2020 WITH DIVIDEND OF 180 YEN / SHARE FY2019 FY2020 UNDERLYING GROWTH3 (BN YEN) RESULTS FORECAST (MANAGEMENT GUIDANCE) REVENUE 3,291.2 3,250.0 Low-single-digit CORE OPERATING PROFIT1 962.2 984.0 High-single-digit CORE EPS2 (YEN) 387 420 Low-teen ANNUAL DIVID
Slide 8: 14 Global Brands and 12 Wave 1 Pipeline Assets to Drive Sustainable Growth
14 GLOBAL BRANDS AND 12 WAVE 1 PIPELINE ASSETS TO DRIVE SUSTAINABLE GROWTH BUSINESS AREA FOCUS R&D FOCUS INNOVATIVE BIOPHARMA GASTRO- RARE PLASMA-DERIVED ENTEROLOGY DISEASES THERAPIES ONCOLOGY RARE NEUROSCIENCE GASTRO- DISEASES ENTEROLOGY PLASMA-DERIVED ONCOLOGY NEUROSCIENCE THERAPIES VACCINES Cell
Slide 9: Growth Momentum Accelerating with Wave 1 NMEs Potential for >$10B Peak Sales
GROWTH MOMENTUM IS ACCELERATING WITH WAVE 1 NMEs POTENTIAL FOR >$10B AGGREGATED PEAK SALES Wave 2 pipeline not included WAVE 1 VYVANSE PIPELINE VELCADE WAVE 1 ENTYVIO AZILVA PIPELINE Hemophilia Others 14 Others GLOBAL 14 BRANDS1 GLOBAL BRANDS1 FY2018 FY2024 FY2029 PRO-FORMA REVENUE Note: Chart is un
Slide 10: Trust, Reputation, Integrity, Perseverance
TRUST 7|ReP JTATION 2420 INTEGRITY (20) (ze) Perseverance 10
Slide 11: Patient, People, Planet
BETTER HEALTH FOR PEOPLE, BRIGHTER FUTURE FOR THE WORLD PATIENT PEOPLE PLANET 11
Slide 12: Takeda Executive Team Dedicated to Deliver on Growth Momentum
TAKEDA EXECUTIVE TEAM DEDICATED TO DELIVER ON GROWTH MOMENTUM JAPAN 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 Busi
Slide 13: A Strong Independent Board Leads a Robust Governance
A STRONG INDEPENDENT BOARD LEADS A ROBUST GOVERNANCE 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 Independent Director Independent Di
Slide 14: Confidence and Growth Momentum for 2020 and Beyond
CONFIDENCE AND GROWTH MOMENTUM FOR 2020 AND BEYOND LIFE-CHANGING GROWTH AND SHAREHOLDER IMPACT MARGIN POTENTIAL VALUE Achieve important R&D Grow 5 key business areas Growth momentum with Wave 1 pipeline milestones and prepare new launches strong cash generation for life-changing medicines Accelerate
Slide 15: Appendix
APPENDIX o
Slide 16: Definition of Core and Underlying Growth
DEFINITION OF CORE AND UNDERLYING GROWTH Takeda uses the concept of Underlying Growth for internal planning and performance impairment losses on acquired intangible assets and other items unrelated to Takeda’s evaluation purposes. core operations, such as purchase accounting effects and transaction
Slide 17: Definition of EBITDA/Adjusted EBITDA
DEFINITION OF EBITDA/ADJUSTED EBITDA We present EBITDA and Adjusted EBITDA because we believe that these measures are IFRS measures as the primary means of evaluating our performance, value and useful to investors as they are frequently used by securities analysts, investors and other prospects for
Slide 18: Reconciliation from Reported to Core/Underlying Core FY2019 Full Year
RECONCILIATION FROM REPORTED TO CORE/UNDERLYING CORE FY2019 FULL YEAR CORE TO REPORTED TO CORE ADJUSTMENTS UNDERLYING CORE ADJ. UNDERLYING (BN YEN) REPORTED Amortization & Other Shire Shire Teva JV CORE CORE impairment of operating acquisition purchase Swiss Tax related Others FX Divestitures intang
Slide 19: Free Cash Flow
FREE CASH FLOW (BN YEN) FY2018 FY2019 vs. PY Net profit 135.1 44.3 -90.8 -67.2% Depreciation, amortization and impairment loss 257.8 685.5 +427.7 Decrease (increase) in trade working capital 20.9 72.7 +51.8 Income taxes paid -44.9 -226.8 -181.9 Other -40.4 94.0 +134.4 Net cash from operating activit
Slide 20: Net Debt/Adjusted EBITDA
NET DEBT/ADJUSTED EBITDA NET DEBT/ADJUSTED EBITDA RATIO NET INCREASE (DECREASE) IN CASH (BN YEN) FY2019 (BN YEN) FY2018 FY2019 vs. PY Net cash from operating activities 328.5 669.8 +341.3 +103.9% Cash and cash equivalents *1 637.6 Acquisition of PP&E -77.7 -127.1 Book value debt on the balance sheet
Slide 21: Reconciliation from Net Profit to EBITDA/Adjusted EBITDA
RECONCILIATION FROM NET PROFIT TO EBITDA/ADJUSTED EBITDA (BN JPY) FY2018 FY2019 Net profit for the year 135.1 44.3 Income tax expenses -7.5 -105.0 Depreciation and amortization 247.7 583.6 Interest expense, net 41.6 137.8 EBITDA 416.9 660.7 Impairment losses 10.1 101.9 Other operating expense (incom
Slide 22: Reconciliation from Reported Operating Profit to Core Operating Profit – FY2020 Forecast
RECONCILIATION FROM REPORTED OPERATING PROFIT TO CORE OPERATING PROFIT – FY2020 FORECAST REPORTED TO CORE ADJUSTMENTS (BN YEN) REPORTED Amortization of Shire CORE Impairment of Other Shire intangible purchase intangible operating income/ integration assets accounting assets expense costs (Takeda) ad
Slide 23: Clawback Policy and Management KPI Details
CLAWBACK POLICY AND MANAGEMENT KPI DETAILS TAKEDA CLAWBACK POLICY • Consistent with Takeda’s ongoing efforts to further strengthen its commitment to best-in-class corporate governance and alignment with shareholders, the Compensation Committee recommended and the Board of Directors of Takeda adopted
Slide 24: FY2020 Management KPIs
FY2020 MANAGEMENT KPIs FY2020 Short-Term Incentive (Metrics, Weight, and Performance Range Consistent with FY2019) Metric Rationale Weight Measurement Threshold Target Maximum Underlying Revenue • Key indicator of growth, including pipeline delivery 30% Performance Goal as a % of Target 97% 100% 105
Slide 25: Glossary of Abbreviations
GLOSSARY OF ABBREVIATIONS Regional Abbreviations: CN: China; EU: Europe; JP: Japan; US: United States of America AD Alzheimer’s disease DLBCL diffuse large B-cell lymphoma IND investigational new drug PBS phosphate buffered saline ADC antibody drug conjugate DU duodenal ulcer I/O immuno-oncology PCA
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