139th ordinary general meeting of shareholders · 139th ordinary general meeting of shareholders |...

June 26, 2015

139th Ordinary general meeting of shareholders

Christophe Weber

President & Chief Executive Officer

139th Ordinary General Meeting of Shareholders | June 26, 20151

Important notice

Forward-Looking StatementsThis presentation contains forward-looking statements regarding the Company's plans, outlook, strategies, and results for the future.All forward-looking statements are based on judgments derived from the information available to the Company at this time. Forward looking statements can sometimes be identified by the use of forward-looking words such as "may," "believe," "will," "expect," "project," "estimate," "should," "anticipate," "plan," "continue," "seek," "pro forma," "potential," "target, " "forecast," or "intend" or other similar words or expressions of the negative thereof. Certain risks and uncertainties could cause the Company's actual results to differ materially from any forward looking statements contained in this presentation. These risks and uncertainties include, but are not limited to, (1) the economic circumstancessurrounding the Company's business, including general economic conditions in the US and worldwide; (2) competitive pressures;(3) applicable laws and regulations; (4) the success or failure of product development programs; (5) decisions of regulatory authorities and the timing thereof; (6) changes in exchange rates; (7) claims or concerns regarding the safety or efficacy ofmarketed products or product candidates; and (8) integration activities with acquired companies.We assume 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 InformationThis presentation contains information about products that may not be available in all countries, or may be available under differenttrademarks, 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.

Underlying Revenue & Underlying Core Earnings- Underlying performance aims at understanding the real performance of the business.- Core Earnings is calculated from operating profit by excluding the impact of exceptional items, such as purchase accounting,

amortization and impairment loss of intangible assets, restructuring costs and litigation costs- Underlying Revenue and Underlying Core Earnings excludes the same items plus product divestments and foreign exchange

Please note these terms are non-GAAP items, used for internal evaluation purposes and are not audited


1781 ~Founding –

Modernization

1944 ~Business

diversification

1993 ~Pharmaceutical focus Overseas expansion

2003 ~Globalization

Transforming into Global One Takeda

2

234 years of Takeda’s history


The pharmaceutical market evolutionGrowth driven by US & Emerging Markets (EM)

1994 2004CAGR*

2014CAGR CAGR

'94-'04 '04-'14 '94-'14

Worldwide 252 553 8% 1,057 7% 7%

U.S. 80 236 11% 382 5% 8%

EU5 50 111 8% 165 4% 6%

Japan 53 65 2% 88 3% 3%

EM & Others 70 141 7% 422 12% 9%

(USD, Billion)

* CAGR: Compound Annual Growth RateSource: ©IMSHealth2015, calculated based on IMS World review analyst 2015 (reprinted with permission)

(1/3)


* CAGR: Compound Annual Growth Rate

4

The pharmaceutical market evolutionGrowth driven by US & Emerging Markets (EM)

1994 2004CAGR*

2014CAGR CAGR

'94-'04 '04-'14 '94-'14

Worldwide 252 553 8% 1,057 7% 7%

U.S. 80 236 11% 382 5% 8%

EU5 50 111 8% 165 4% 6%

Japan 53 65 2% 88 3% 3%

EM & Others 70 141 7% 422 12% 9%

(USD, Billion)

Source: ©IMSHealth2015, calculated based on IMS World review analyst 2015 (reprinted with permission)

21% of the worldwide market

8% of the worldwide market

(2/3)


The pharmaceutical market evolutionNo. 15 company's market cap is 10 times bigger

Company Mkt Cap

Merck & Co 47.6

Roche 46.2

Johnson & Johnson 35.2

Novartis 32.7

BMS 29.4

Abbott 26.2

Pfizer 24.3

Wyeth 19.2

Eli Lilly 19.2

Smithkline Beecham 19.1

Astra 15.9

Schering-Plough 13.8

Takeda 10.4

Warner-Lambert 10.4

Pharmacia 7.9

Company Mkt Cap

Pfizer 200.9


GSK 137.4

Novartis 118.2

Sanofi 106.3

Roche 101.7

Amgen 80.8

Abbott 72.8

Merck & Co 71.0

Eli Lilly 64.2

AstraZeneca 59.5

Genentech 57.0

Wyeth 56.9

BMS 49.9

Takeda 39.4

Company Mkt Cap


Roche 230.8

Novartis 224.0

Pfizer 201.2

Merck & Co 161.2

Gilead 141.3

Amgen 121.1

Sanofi 120.8

Novo Nordisk 112.6

GSK 104.3

AbbVie 104.1

BMS 97.6

AstraZeneca 89.7

Celgene 89.5

Biogen 79.6

1994

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

2004 2014

x10Source: Bloomberg (data on the last day of each calendar year)

(USD, Billion)

(3/3)


FY2014 results

6


FY2014: Transforming and Delivering Sales & Core Earnings Target

Exceptional loss due toActos

FY2014: A year of transformation and results

7

VALUE

PEOPLE

R&D

BUSINESS PERFORMANCE

• Takeda-ismPatient → Trust → Reputation → Business

• Patient and customer centricity

• Global and agile organization fostering talent

• Focused world class R&D innovation engine

• Sustaining sales growthInnovation with leadership in GI & OncologyLeverage value brands in Emerging Markets

• Financial discipline to deliver growth


Four key new products approved in FY2014

8

Significant late-stage milestones achieved

• Ixazomib: Phase III interim results permitting filing in FY2015Breakthrough designation in AL Amyloidosis

• ADCETRIS: Expansion of geographies (e.g. approved in Brazil, filed in Russia)

trelagliptin succinatevonoprazan fumarate


0

10

20

FY2013 FY2014

FY2014: Delivering successful launches, achieving +2.8% underlying revenue growth

9

ENTYVIO

BRINTELLIX

ADCETRIS

AZILVA

0

10

20

30

FY2013 FY2014

* New products: Products launched in or after 2009 excluding new formulation or fixed dose combination of existing drugs: DEXILANT, ULORIC, NESINA, AZILVA, ADCETRIS, BRINTELLIX, ENTYVIO, CONTRAVE, TAKECAB etc.

0

10

20

30

FY2013 FY2014

Revenue (billion yen) @ Constant currency

0

20

40

FY2013 FY2014Prim

ary

care

pr

oduc

tS

peci

alty

prod

uct


290.3 281.3

571.2 548.1

297.9 341.0

237.8 250.6

278.4 300.9

FY 2013 FY 2014

Growth driven by innovation in the U.S. and Europe, and by value brands1 in Emerging Markets

+ 14.5%

- 4.1%

+ 5.4%

+ 8.1%

- 3.1%

Growth rate

+ 2.8%1: Brand generics and OTC2: Others: Representing licensees business and Consumer Healthcare business, etc.

Emerging markets

Europe and Canada

U.S.

Japan

Others2

10

(billion yen)

Underlying growth 1,675.7 1,721.9


20142013 NycomedMillenniumTakedaorigin

Underlying basebillion yen @ constant foreign exchange rate

2014 growth driven by Millennium, Nycomed and other acquired / licensed products

* Including Brintellix, Adcetris, Lotriga, etc.

Nycomed created Takeda's presence in EM

+2.8%

11

-4.3%

-39 +33

+13

+40

Other acquired/licensed

products*

Underlying revenue growth

1,675.7

1,721.9


Takeda is strongly committed to CSR activities to support patients and society

12

In 2014, Takeda conducted over 40 impactful CSR projects covering healthcare education and capacity building of NGOs

Healthcare Access Program in Asia(2009-2014)- Hygiene- Nutrition- Medical services- HIV/AIDs training

The Great East Japan EarthquakeReconstruction Support

(2011-2020)

Contribution to the Global Fund programs to treat

HIV/AIDs, TB, and Malaria in Africa (2009-2019) Volunteer activities

over the world(e.g., fundraising and

health education)


FY2015 Strategy and Guidance

13


Pharmaceutical market growth driven mainly by EM and US

14

Pharma market growth forecast, 2015-2025

2015 2020 2025

37% 36% 33%

23%21%

19%8%6%

5%32%

37%

43%Emerging Markets

JapanEurope &Canada

US

CAGR2015-2025

3.3%

7.4%

0.8%

2.6%

(USD billion)

1,089

1,360

1,684

54% of the market growth (2015-2025) is from EM

4.5%

Source: ©IMSHealth2015, calculated based on Long Term Country and Therapy Area Forecasts (reprinted with permission)


Global One Takeda

• Values based

• Agile

• Simple, with clear accountabilities

• Patient- and customer-centric

• Talent development and diversity champion

Become an agile,

best-in-class global pharmaceutical company

focused on patients and customers

15


Organization in place to deliver growth

16

FIVERegional Business Units

• Japan Pharmaceuticals• Emerging Markets• U.S. • EUCAN (Europe + Canada)• Japan Consumer Healthcare

• Oncology

• Vaccine (incl. R&D)

TWOGlobal Specialty Business Units

• Gastroenterology (GI)

• Oncology

• Central Nervous System (CNS)

• Cardiovascular/Metabolic (CVM)

FOURTherapeutic Areas Units in R&D

Global Manufacturing & QualityBusiness Partner organizations


Global, diverse and experienced Takeda's executive team (TET)

Chairman of the Board

Yasuchika Hasegawa Christophe WeberPresident & CEO

17

PresidentJapan PharmaBU

Masato Iwasaki

PresidentGlobal Oncology BU

Christophe Bianchi

PresidentUS BU

Ramona Sequeira

Corporate Communications and Public Affairs Officer

Haruhiko Hirate

Global General Counsel

Yoshihiro Nakagawa

Global Human Resources Officer

David Osborne

PresidentEmerging MarketsBU

Giles Platford

PresidentEUCAN BU

Marc Princen

PresidentGlobal Vaccine BU

Rajeev Venkayya

Corporate Strategy Officer

Shinji Honda

Chief Financial Officer

Global Quality Officer

Gerard Greco

Chief Medical and Scientific Officer

Andrew Plump

Global Manufacturing and Supply Officer

Thomas Wozniewski


FY2015: Positioning Takeda for long-term sales and profit growth

Takeda strategic roadmap

18

VALUE

PEOPLE

R&D










19

VALUE

PEOPLE

R&D








1 Live our values and ensure compliance


Takeda-ism: Key to our reputation and business success

Takeda-ism is our foundation as we focus on:

PUT THE PATIENT AT THE

CENTER

DEVELOP THE BUSINESS

BUILD TRUST WITH SOCIETY

REINFORCE OUR REPUTATION

2nd 3rd 4th1st

20



21

PEOPLE



Customer Satisfaction

Index

2

Global Talent Development

Program

3R&D





VALUE • Takeda-ismPatient → Trust → Reputation → Business



22

R&D• Focused world class R&D innovation

engine

Ixazomibregistration and

launch preparation

4

Center for External Innovation

5

PEOPLE









23




Reinforcing our growth drivers: GI, Oncology

and EMs

6

Optimizing capital allocation

7

Operational Excellence

to deliver CE and EPS growth,

+ Summit

8

R&D• Focused world class R&D innovation

engine

PEOPLE





ROE to be improved

2007 2008 2009 2010 2011 2012 2013 2014 2015

Fiscal Year

15.1

10.9

11.8

6.1

14.4

6.34.5

- 6.3

(%)

0

Historical Takeda's ROE

IncludingActos settlement

ExcludingActos settlement

1.4


FY2015 Management guidance

FY2015 Management Guidance(underlying growth)

25

Revenue Low single digit

Core EPS Higher than core earnings growth

Core Earnings Higher than revenue growth

The Actos settlement will not affect Takeda's ability to pay dividends

FY2015 180 yen

after FY2015 at least maintain 180 yen

Annual dividend per share

EPS: Earnings per share


500 years of Takeda’s history and outlook

1781 ~Founding –

Modernization

1944 ~Business

diversification

1993 ~Pharmaceutical Focus Overseas Expansion

2003 ~Globalization

Transforming into Global One Takeda

Better Health, Brighter Future

PUT THE PATIENT AT THE

CENTER

DEVELOP THE BUSINESS

BUILD TRUST WITH SOCIETY

REINFORCE OUR REPUTATION

2nd 3rd 4th1st

Better Health, Brighter Future

139th ordinary general meeting of shareholders · 139th ordinary general meeting of shareholders |...

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