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June 28, 2017
141st Ordinary General Meeting of Shareholders
Christophe WeberPresident & CEO
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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.
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Our mission is to strive towards Better Health anda 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.
Mission
Major trends shaping our business environment
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Society Pharma industry
Science & technologiesadvancing
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
EM=Emerging markets
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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
GrowPortfolio
RebuildPipeline
BoostProfitability
Transformation momentum is backed by Takeda's values and culture
GI=Gastrointestinal, CNS=Central Nervous System, BOD=Board of Directors
Takeda's Corporate Philosophy
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Takeda‐ism will guide us to reach our Vision
We take action and make decisions by focusing on our four priorities, in order of:
Putting the patientat the center1 2 3 4Building trust
with societyReinforcing our reputation
Developing the business
Values
Continue to commit to CSR, Access to Medicine and R&D initiatives for patients & people
CSR programs Access to Medicines R&D initiatives
Recentprogress
Global CSR programs 2017: Voted by employees
Access to Medicine
Our focus
e.g.
- Employee volunteer opportunities
- Disaster Relief
- x
- z
CSR=Corporate Social Responsibility6
Environment, Health and Safety
e.g.
- Patient Assistance Programs
- Access Accelerated
e.g.
Proposed Board of Directors for a best‐in‐class governance
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Christophe WeberRepresentative Director
President & CEO
Masato IwasakiDirector,
JPBU President
Andrew PlumpDirector, Chief Medical& Scientific Officer
Yasuhiko YamanakaDirector,
A&SC member
Shiro KuniyaExternal Director,
Chair A&SC
Koji HatsukawaExternal Director,A&SC member
Jean‐Luc ButelExternal Director,A&SC member
Masahiro SakaneExternal Director
Chair of the Board meeting
Yoshiaki FujimoriExternal Director
Toshiyuki ShigaExternal Director
Emiko HigashiExternal Director
Michel OrsingerExternal Director
James KehoeDirector,
Chief Financial Officer
Internal directors
External directors
Audit & Supervisory Committee (A&SC) directors
Compensation committeeChair Compensation committeeNomination committeeChair Nomination committee
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C C
C
Developing our global workforce with around 30,000 employees in 74 countries
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Takeda's employee distribution
Emerging markets35% Japan
27%
EUCAN21% US
17%
Note: March 2017 data excluding Wako Pure Chemical Industries
(Europe + Canada)
Global, Diverse and ExperiencedTakeda Executive Team (TET)
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GilesPlatfordPresidentEUCAN BU
Thomas Wozniewski
Global Manufacturing and Supply Officer
Ramona SequeiraPresidentUS BU
Gerard Greco
Global Quality Officer
Andrew Plump
Chief Medical and Scientific
Officer
Christophe BianchiPresident
Global Oncology BU
Rajeev VenkayyaPresident
Global Vaccine BU
Christophe Weber
President & CEO
Masato IwasakiPresident
Japan PharmaBU
James Kehoe
Chief Financial Officer
Haruhiko HirateCorporate
Communications and Public Affairs
Officer
Yoshihiro NakagawaGlobal General
Counsel
David Osborne
Global Human Resources Officer
RicardoMarekPresidentEM BU
U.S.
JAPANSINGAPORE
SWITZERLAND
BU=Business Unit
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Transforming R&D: Therapeutic Area focus and footprint concentrated in Japan & U.S.
Oncology
GI
Vaccine
CNS
RegenerativeMedicine
Vaccine
U.S.
Bushu Pharmaceuticals
SCOHIA
Partnership Research Engine
Functional partnership Asset externalization
Research site location
Health Innovation Park at Shonan
Japan
CNS=Central Nervous System, GI=Gastroenterology
All trademarks and registered trademarks are the property of their respective owners
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Pipeline as of May 10, 2017
Investing heavily in our early pipeline,while maximizing the value of our marketed portfolio
Phase 1 Phase 2Phase 3/Filed
Life cycle management
Oncology
GI
CNS
Other
Vaccines
TAK‐659Hematologicmalignancies
TAK‐931Solid Tumors
TAK‐058CIAS
TAK‐831Schizophrenia,
Ataxia
TAK‐020RA
TAK‐906Gastroparesis
TAK‐202Solid Tumors
TAK‐243Solid Tumors
TAK‐580Solid Tumors
TAK‐954Enteral FeedingIntolerance
TAK‐041CIAS,
Neg. symptoms
TAK‐653TRD
TAK‐021EV71 Vaccine
TAK‐079RA
CX601Perianal Fistulas
in CD
AD‐4833/TOMM40Delay of MCI
TAK‐003 Dengue Vaccine
RelugolixUterine Fibroids (JP),
Endometriosis,Prostate Cancer
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
ENTYVIO®
UC/CD, SubQ, GvHD,IO Colitis, H2H, PSC
TRINTELLIXTMCognition in MDD,MDD (JP), ADHD
ADCETRIS®FL HL, MTCL,
CTCL
CabozantinibSolid Tumors (JP)
TAKECAB®
ARD (Asia), NERD (JP)
RasagilineParkinson’sdisease (JP)
AMITIZA®
Ped Constipation,New Formulation
TAK‐788(AP32788)
NSCLC
TAK‐071 LBD‐AD
TAK‐935Epilepsy
XMT‐1522HER2 positiveSolid Tumors
pevonedistatHR MDS
sapanisertibRCC, Breast,Endometrial
TAK‐214Norovirus Vaccine
namilumabRA
Late‐stage /Life cycle
management
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Enhance pipeline through collaborations and external innovation mainly focused on early stage
Oncology
GI
CNS
Value Creation
Discovery / Preclinical Phase 1
Vaccines
XMT‐1522 TAK‐788(AP32788)
TAK‐906 TAK‐954
TAK‐094TAK‐792
TAK‐233
TAK‐935
Undisclosed
TAK‐272
Relugolix
Cx‐601
ALUNBRIG, ICLUSIG
Cabozantinib
Not all‐inclusive. All trademarks and registered trademarks are the property of their respective owners
BARDA
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GrowPortfolio
• Underlying Revenue +6.9%, every region growing
• Growth Drivers +14.7% , Entyvio 146.5 Bn yen
RebuildPipeline
• Significant progress in R&D transformation
• Over 50 collaborations in 18 months
BoostProfitability
• Underlying CE growth: +24.2%
• Underlying CE margin: +180 bps
• ROE is recovering: 6.0% in FY16 (+2.1pp from FY15)
FY2016 results reflect transformation success
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
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ROE performance is recovering
(%)
Takeda's historical ROE evolution
15.1
10.9
14.411.8
6.1
6.34.5
-6.3
3.96.0
0%
Actos settlement
FY07 08 09 10 11 12 13 14 15 16
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FY2017 and future outlook
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Projecting strong underlying performance in FY2017
Underlying Revenue
Underlying Core EPS
Underlying Core Earnings
FY2017 guidance (growth %)
Low single digit
Mid‐to‐high teen
Low‐to‐mid teen
Annual dividend per share 180 yen
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+100‐200bps Underlying Core Earnings margin improvement every year driven by:
Gross profit for ~50%
Global Opex Initiative• Pay less• Buy less• Work better
OPEX for ~50%
R&D transformation
+
+
+
+
‐
Inflation and Investments
‐
Price pressure
COGS improvement
Product mix
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Capital allocation priorities
Internal investment in R&D and product launches
Dividend as key component of shareholder returns
Maintain investment grade credit rating
Disciplined and focused M&A
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Thank you