Takeda Pharmaceutical Co. Ltd. · TSE:4502

Takeda Pharmaceutical — 40th Annual J.P. Morgan Healthcare Conference (January 2022)

30 slides from Takeda Pharmaceutical's conference presentation, Jan 10, 2022

  1. Slide 1: Better health for people, Brighter future for the world

    Better health for people, Brighter future for the world 40th Annual J.P. Morgan Healthcare Conference Christophe Weber President & CEO January 10th, 2022

  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: 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 fem 229 & BY UNLEASHING THE POWER OF DATA AND DIGITAL Aly & Crakeday

  4. Slide 4: A Global, Values-based Biopharmaceutical Company

    A Global, Values-based Biopharmaceutical Company FY2020 GLOBAL REVENUE 13% EMERGING MARKETS APPROX. 29 49% 21% U.S. EUROPE & BN GREATER CANADA USD* TOKYO BOSTON Takeda AREA 18% Global HQ Global Hub JAPAN 5 KEY BUSINESS AREAS (% OF FY2020 REVENUE) 18% 31 3 OTHER 24% GI MANUFACTURING RESEARCH 13% SITE

  5. Slide 5: Executing to deliver topline acceleration, competitive margins & strong cash flow

    Executing to deliver topline acceleration, competitive margins & strong cash flow UNDERLYING REVENUE GROWTH 1 UNDERLYING CORE O.P. MARGIN 1 • Accelerating topline growth with Mid-single digit 30.2% ~30% 14 Global Brands and New +2.2% Product Launches 28.9% • Highly innovative pipeline to support lon

  6. Slide 6: 14 Global Brands drive mid-term growth expectations

    14 Global Brands drive mid-term growth expectations 14 GLOBAL BRANDS FY2020 REVENUE ~$11 BILLION FY2021 UNDERLYING GROWTH FORECAST: +14-16% 14 Global Brands revenue +14-16% +16% ~$11B FY2019 FY2020 FY2021 (forecast) 14 Global Brands as % total 34% 38% ~45% core revenue2 Graphs are illustrative 6 1.

  7. Slide 7: Revising our base case assumption on Entyvio biosimilars

    Revising our base case assumption on Entyvio biosimilars: no longer expecting 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 2024 May 2026 o

  8. Slide 8: Two new product launches in 2021 in areas of high unmet need

    Two new product launches in 2021 in areas of high unmet need FIRST AND ONLY APPROVED ORAL THERAPY POTENTIAL TO REDEFINE SUCCESS IN TO TARGET EGFR EXON20 INSERTION+ NSCLC POST-TRANSPLANT CMV INFECTION Approved U.S. September 2021 Approved U.S. November 2021 8

  9. Slide 9: Mid-term growth expected to be driven by Global Brands, more than offsetting LOE headwinds

    Mid-term growth expected to be driven by 14 Global Brands, more than offsetting Loss of Exclusivity headwinds NEW OTHERS LAUNCHES VYVANSE STRONG INCREMENTAL REVENUE GROWTH VELCADE ~$4.5B AZILVA POTENTIAL TO FY2025 ~$9B 14 GLOBAL • 14 Global Brands expected to deliver incremental revenue more than BR

  10. Slide 10: Positioned to deliver topline growth out to FY2030 and beyond

    Positioned to deliver topline growth out to FY2030 and beyond INNOVATIVE PIPELINE TO DELIVER VALUE IN-LINE PORTFOLIO OUTLOOK FY2025-2030 • Highly innovative pipeline of ~40 clinical stage assets • In-house research engine to drive future innovation • Continued growth of multiple Global Brands • Furt

  11. Slide 11: Patient-centric and Science-first Innovative R&D Engine

    Patient-centric and Science-first Innovative R&D Engine R&D STRATEGY INNOVATIVE BIOPHARMA INNOVATIVE PIPELINE • ~40 NMEs in clinical stage development • Diverse modality base RARE GENETICS & GASTROENTEROLOGY • Approx. 50% of pipeline has Orphan ONCOLOGY NEUROSCIENCE HEMATOLOGY (GI) Drug Designation

  12. Slide 12: Our pipeline is modality diverse with transformative potential

    Our pipeline is modality diverse with transformative potential DEMONSTRATED PIPELINE CONTINUED INVESTMENT GROWTH AND DIVERSIFICATION IN NEW MODALITIES 38 34 of 38 assets added after FY2015* 100% 4 assets active today 7 assets externalized 14 32% 16 assets terminated / on hold 27 13% 4 Small Molecule

  13. Slide 13: Our highly innovative pipeline is starting to deliver value

    Our highly innovative pipeline is starting to deliver value WAVE 11 CLINICAL-STAGE NMEs WAVE 22 POTENTIAL APPROVAL FY21 FY22 FY23 FY24 FY25 and Beyond •• EXKIVITY3 EXKIVITY3 modakafusp TAK-007 TAK-676 TAK-102 2L NSCLC with EGFR 1L NSCLC with EGFR alfa CD19+ hematologic malignancies Solid tumors Mult

  14. Slide 14: Pipeline assets expected to be in pivotal trials by end of FY2022

    Pipeline assets expected to be in pivotal trials by end of FY2022 have significant peak sales potential PTRS Adjustment Ph2 POC Pivotal Start > 1 T yen1 TAK-999 Potential Approval POC Achieved AATD Liver AATD Liver AATD Liver WAVE 2 Potential Approval (~$10B) pabinafusp alfa Pivotal Start Hunter Syn

  15. Slide 15: Wave 2 assets with Proof-of-Concept readouts over the next two fiscal years

    Of the ~30 Wave 2 assets in clinical trials, several high-potential programs are expected to have Proof-of-Concept readouts over the next two fiscal years 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 or

  16. Slide 16: Positioned for growth over the mid- and long-term and committed to delivering shareholder value

    Positioned for growth over the mid- and long-term and committed to delivering shareholder value INNOVATIVE PIPELINE TO DELIVER LONG-TERM GROWTH MID-TERM GROWTH DRIVEN BY 14 GLOBAL BRANDS • Highly innovative pipeline of ~40 clinical EXECUTING ON OUR stage assets GROWTH STRATEGY • 14 Global Brands exp

  17. Slide 17: Appendix

    APPENDIX a

  18. Slide 18: 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

  19. Slide 19: 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

  20. Slide 20: 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

  21. Slide 21: FY2020 Reconciliation from Reported Revenue to Underlying Revenue

    FY2020 RECONCILIATION FROM REPORTED REVENUE TO UNDERLYING REVENUE (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 portfolio +1.2pp TACHOSIL +0.1pp Others +0.4pp Underlying Revenue Growth + 2.2% *1 FX adjustment applie

  22. Slide 22: FY2020 Reconciliation from Reported to Core/Underlying Core

    FY2020 RECONCILIATION FROM REPORTED TO CORE/UNDERLYING CORE REPORTED TO CORE ADJUSTMENTS CORE TO UNDERLYING CORE ADJ. Amortization Other Shire Teva JV UNDERLYING (BN JPY) REPORTED & Shire CORE GROWTH operating integration purchase related TCHC Swiss Tax Others FX Divestitures impairment of income/ a

  23. Slide 23: FY2019 Reconciliation from Reported to Core/Underlying Core

    FY2019 RECONCILIATION FROM REPORTED TO CORE/UNDERLYING CORE 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 intangible incom

  24. Slide 24: FY2020 Net Debt/Adjusted EBITDA

    FY2020 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 balan

  25. Slide 25: FY2020 Net Profit to Adjusted EBITDA Bridge

    FY2020 NET PROFIT TO ADJUSTED EBITDA BRIDGE (BN JPY) FY2019 FY2020 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

  26. Slide 26: FY2019 Net Debt/Adjusted EBITDA

    FY2019 NET DEBT/ADJUSTED EBITDA NET DEBT/ADJUSTED EBITDA RATIO NET INCREASE (DECREASE) IN CASH (BN YEN) FY2019 (BN YEN) FY2018 FY2019 vs. PY *1 Net cash from operating activities 328.5 669.8 +341.3 +103.9% Cash and cash equivalents 637.6 Acquisition of PP&E -77.7 -127.1 Book value debt on the balanc

  27. Slide 27: FY2018 Net Debt/Adjusted EBITDA

    FY2018 NET DEBT/ADJUSTED EBITDA (Bn yen) FY2017 FY2018 vs. PY Operating Free Cash Flow 242.9 194.4 -48.5 -20.0% Sale of Wako shares 84.5 - Sale of Techpool and Multilab shares - 27.5 *1 Sale of other shareholdings 40.6 65.0 Real estate disposals*1 39.3 108.3 Payment into restricted deposit of TiGeni

  28. Slide 28: FY2018-2019 Net Profit to Adjusted EBITDA Bridge

    FY2018-2019 NET PROFIT TO ADJUSTED EBITDA BRIDGE (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 (income), net,

  29. Slide 29: Glossary of Abbreviations

    GLOSSARY OF ABBREVIATIONS CRPS complex regional pain syndrome IH idiopathic hypersomnia OSA obstructive sleep apnea Regional Abbreviations: CN: China; EU: Europe; JP: Japan; US: United States of America CTCL cutaneous T-cell lymphoma IND investigational new drug PARP poly (ADP-ribose) polymerase cTT

  30. Slide 30: © 2022 Takeda Pharmaceutical Company Limited. All rights reserved

    © 2022 Takeda Pharmaceutical Company Limited. All rights reserved

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