Important Notice. 141 st Ordinary General Meeting of Shareholders. Christophe Weber President & CEO. June 28, Forward Looking Statements

Transcription

1 141 st Ordinary General Meeting of Shareholders Christophe Weber & CEO June 28, 2017 Important Notice Forward Looking Statements This presentation contains forward looking statements regarding Takeda s future business, financial position and results of operations, including estimates, forecasts, targets and plans. These forward looking statements may be identified by the use of forward looking words such as aim, anticipate, assume, believe, continue, endeavor, estimate, expect, forecast, initiative, intend, may, outlook, plan, potential, probability, pro forma, project, risk, seek, should, strive, target, will or similar words, or expressions of the negative thereof, or by discussions of strategy, plans or intentions. Any forward looking statements in this document are based on the current assumptions and beliefs of Takeda in light of the information currently available to it. Such forward looking statements do not represent any guarantee by Takeda or its management of future performance and involve known and unknown risks, uncertainties and other factors, including but not limited to: the economic circumstances surrounding Takeda s business, including general economic conditions in Japan, the United States and worldwide; competitive pressures and developments; applicable laws and regulations; the success or failure of product development programs; decisions of regulatory authorities and the timing thereof; changes in exchange rates; claims or concerns regarding the safety or efficacy of marketed products or product candidates; and post merger integration with acquired companies, any of which may cause Takeda s actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by such forward looking statements. Neither Takeda nor its management gives any assurances that the expectations expressed in these forward looking statements will turn out to be correct, and actual results, performance or achievements could materially differ from expectations. Any forward looking statements herein speak only as of the date of this document, and Takeda and its management undertake no obligation to update or revise any forward looking statements or other information contained in this presentation, whether as a result of new information, future events or otherwise. Medical Information This presentation contains information about products that may not be available in all countries, or may be available under different trademarks, for different indications, in different dosages, or in different strengths. Nothing contained herein should be considered a solicitation, promotion or advertisement for any prescription drug including the ones under development. 1

2 Mission Our mission is to strive towards Better Health and a Brighter Future for people worldwide through leading innovation in medicine Vision 2025 We serve the needs of our patients, wherever they are. We earn the trust of society and customers through Takeda ism. We are recognized as best in class because of agility and innovation, qualities that help us build a steady pipeline and deliver growth, year on year. 2 Major trends shaping our business environment Society Pharma industry Science & technologies advancing Unmet medical needs Demand for access to medicine Aging population Healthcare system under significant financial pressure Digital More scientific innovation Growth driven by innovation in the U.S. and by innovation and demand in EM More access to medicine in EM Pressure on drug prices and reimbursements Pharma industry's reputation 3 EM=Emerging markets

3 Transformation momentum is backed by Takeda's values and culture Value Driven: Takeda ism Pa ent Trust Reputa on Business Global, Agile, and Committed to Innovation Created global organization and capabilities Driving patient centricity and local empowerment Therapeutic area focus: Oncology, GI, CNS, plus Vaccines World class Governance & Diverse Leadership BOD with majority of external directors, and with Audit & Supervisory committee Diverse & seasoned Takeda Executive Team Comprehensive talent development programs Grow Portfolio Rebuild Pipeline Boost Profitability 4 GI=Gastrointestinal, CNS=Central Nervous System, BOD=Board of Directors Takeda's Corporate Philosophy Values Takeda ism will guide us to reach our Vision We take action and make decisions by focusing on our four priorities, in order of: Building trust Reinforcing Putting the patient at the center with society our reputation Developing the business 5

4 Continue to commit to CSR, Access to Medicine and R&D initiatives for patients & people CSR programs Access to Medicines R&D initiatives e.g. - Employee volunteer opportunities - Disaster Relief e.g. - Patient Assistance Programs - Access Accelerated Our focus e.g. - x - z Environment, Health and Safety Recent progress 6 CSR=Corporate Social Responsibility Global CSR programs 2017: Voted by employees Access to Medicine Proposed Board of Directors for a best in class governance Internal directors Christophe Weber Representative Director & CEO Masato Iwasaki Director, JPBU Andrew Plump Director, Chief Medical & Scientific Officer James Kehoe Director, Chief Financial Officer C C External directors Audit & Supervisory Committee (A&SC) directors 7 Masahiro Sakane External Director Chair of the Board meeting Yasuhiko Yamanaka Director, A&SC member Michel Orsinger External Director Shiro Kuniya External Director, Chair A&SC Toshiyuki Shiga External Director Koji Hatsukawa External Director, A&SC member Emiko Higashi External Director Jean Luc Butel External Director, A&SC member Yoshiaki Fujimori External Director C C Compensation committee Chair Compensation committee Nomination committee Chair Nomination committee

5 Developing our global workforce with around 30,000 employees in 74 countries Takeda's employee distribution EUCAN Emerging 21% markets US 35% Japan 17% 27% (Europe + Canada) 8 Note: March 2017 data excluding Wako Pure Chemical Industries Global, Diverse and Experienced Takeda Executive Team (TET) SWITZERLAND U.S. Thomas Wozniewski Global Manufacturing and Supply Officer Giles Platford EUCAN BU Andrew Plump Chief Medical and Scientific Officer Christophe Bianchi Global Oncology BU Gerard Greco Global Quality Officer Ramona Sequeira US BU Rajeev Venkayya Global Vaccine BU SINGAPORE JAPAN 9 Ricardo Marek EM BU BU=Business Unit Christophe Weber & CEO Masato Iwasaki Japan Pharma BU James Kehoe Chief Financial Officer Haruhiko Hirate Corporate Communications and Public Affairs Officer Yoshihiro Nakagawa Global General Counsel David Osborne Global Human Resources Officer

6 Transforming R&D: Therapeutic Area focus and footprint concentrated in Japan & U.S. Research site location CNS Oncology Regenerative Medicine Vaccine Japan U.S. GI Vaccine Health Innovation Park at Shonan Partnership Research Engine SCOHIA Functional partnership Bushu Pharmaceuticals Asset externalization All trademarks and registered trademarks are the property of their respective owners 10 CNS=Central Nervous System, GI=Gastroenterology Oncology TAK 202 Solid Tumors TAK 243 Solid Tumors TAK 580 Solid Tumors Investing heavily in our early pipeline, while maximizing the value of our marketed portfolio Phase 1 Phase 2 TAK 659 Hematologic malignancies TAK 931 Solid Tumors TAK 788 (AP32788) NSCLC XMT 1522 HER2 positive Solid Tumors pevonedistat HR MDS sapanisertib RCC, Breast, Endometrial Phase 3 /Filed Life cycle management NINLARO FL MM, Amyloidosis, Maint MM post SCT, Maint MM w/o SCT ALUNBRIG ALK+ NSCLC (EU), FL ALK+ NSCLC ICLUSIG CML, SL CML, Ph+ ALL ADCETRIS FL HL, MTCL, CTCL Cabozantinib Solid Tumors (JP) GI TAK 954 Enteral Feeding Intolerance TAK 906 Gastroparesis CX601 Perianal Fistulas in CD ENTYVIO UC/CD, SubQ, GvHD, IO Colitis, H2H, PSC TAKECAB ARD (Asia), NERD (JP) AMITIZA Ped Constipation, New Formulation CNS TAK 041 CIAS, Neg. symptoms TAK 653 TRD TAK 058 CIAS TAK 831 Schizophrenia, Ataxia TAK 071 LBD AD TAK 935 Epilepsy AD 4833/ TOMM40 Delay of MCI TRINTELLIX TM Cognition in MDD, MDD (JP), ADHD Rasagiline Parkinson s disease (JP) Other Vaccines TAK 021 EV71 Vaccine TAK 079 RA TAK 020 RA TAK 214 Norovirus Vaccine namilumab RA TAK 003 Dengue Vaccine Relugolix Uterine Fibroids (JP), Endometriosis, Prostate Cancer Pipeline as of May 10,

7 Enhance pipeline through collaborations and external innovation mainly focused on early stage Discovery / Preclinical Phase 1 Late stage / Life cycle management Oncology XMT 1522 TAK 788 (AP32788) ALUNBRIG, ICLUSIG Cabozantinib GI TAK 906 TAK 954 Cx 601 CNS Vaccines BARDA Value Creation 12 TAK 094 TAK 792 Undisclosed Not all inclusive. All trademarks and registered trademarks are the property of their respective owners TAK 935 TAK 233 TAK 272 Relugolix FY2016 results reflect transformation success Grow Portfolio Underlying Revenue +6.9%, every region growing Growth Drivers +14.7%, Entyvio Bn yen Rebuild Pipeline Significant progress in R&D transformation Over 50 collaborations in 18 months Boost Profitability Underlying CE growth: +24.2% Underlying CE margin: +180 bps ROE is recovering: 6.0% in FY16 (+2.1pp from FY15) 13 Note: "Underlying growth" compares two periods of financial results on a common basis, showing the ongoing performance of the business excluding the impact of foreign exchange and divestitures from both periods CE="Core Earnings" is calculated by taking reported Gross Profit and deducting SG&A expenses and R&D expenses. In addition, certain other items that are non core in nature and significant in value may also be adjusted bps=basis point: one hundredth of a percent ROE=Return on equity

8 ROE performance is recovering (%) Takeda's historical ROE evolution % Actos settlement -6.3 FY FY2017 and future outlook 15

9 Projecting strong underlying performance in FY2017 FY2017 guidance (growth %) Underlying Revenue Low single digit Underlying Core Earnings Mid to high teen Underlying Core EPS Low to mid teen Annual dividend per share 180 yen bps Underlying Core Earnings margin improvement every year driven by: Gross profit for ~50% OPEX for ~50% + Product mix Price pressure + + Global Opex Initiative Pay less Buy less Work better R&D transformation + COGS improvement Inflation and Investments 17

10 Capital allocation priorities 1 Internal investment in R&D and product launches 2 Dividend as key component of shareholder returns 3 Maintain investment grade credit rating 4 Disciplined and focused M&A 18 Thank you 19