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    00 43510 6 00 43510 6 Document Transcript

    • Transformation into a New Takeda November 4, 2011 Yasuchika Hasegawa President & CEO Vision: 2015 and Beyond● Takeda will drive long-term growth through continuous innovation and cultural transformation● Nycomed acquisition accelerates Takeda’s transformation toward a truly global company Globalization Growth Culture/ Innovation Diversity1 1
    • The Transformation Plan into a New TakedaThree phases of transition:1) “Transition Management Planning” phase until Closure of the acquisition2) “Respect & Learn” phase in the 12 months following Closure3) “Fine-tuning” phase in the 24 months following completion of Respect & Learn phase Timeline toward a New Takeda 2011 2012 Transition Management Respect & Learn Fine Tuning Planning Maximize both Getting to know companies Vision for Future one another strengths Organizational/ Management personnel structure Execution for Day 1 and Guiding Planning beyond Principles2 The Confirmed Strengths of Nycomed through the Transition and Integration Process ● Strong business momentum/growth in emerging countries e.g. Russia/CIS, Brazil, and China ● High quality talent pool ● Quick decision making / Entrepreneurship ● Lean organization / Tight cash management ● Low cost / Multiple products production Our expectation has been more than met3 2
    • Growing Performance in Emerging Markets Strong growth power in emerging markets drives whole Nycomed performance Net Revenue* (Apr-Sep, 2011): Net Revenue* (Apr-Sep, 2010): €1,454MM €1,404MM 3.6% Increase in Net Revenue* 16.6% Increase in Net Revenue in Emerging Markets *Excludes extraordinary factors (Income from selling out Imaging Business in 1H FY2011) Re-stated at FY2011 2H Plan rate to exclude the effect of exchange rates 4 Russia-CIS Nycomed has outperformed• 20 years to build – only organic growth the market in Jan-Jun 2011• Today Nycomed is among the leaders in 21.1% all CIS Markets (11 countries)– A 600 million EURO net revenue in 2011 12.4%– Market share in Russia is 3.2% in value ranked at #8– Nycomed is the fastest growing corporation in Top 10 companies by value Total market Nycomed (RUB) Historical Sales of Nycomed Russia CIS 700 In-licensed productsRealization of further growth by securing 600 Nycomed own productsspeed to market and the successful launch 500of the high potential Takeda products 4 8% 400 – CV/Metabolic (Azilsartan, Alogliptin) 300 – Oncology (Adcetris, Mepact, Leuprorelin) 200 – CNS (Ramelteon, Lurasidone) 100 52 % – Renal (Peginesatide) 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 5 3
    • Guiding Principles for Organizational Change● Top priority is to maintain Nycomed’s momentum● Aiming for stronger growth momentum and global reach, not primarily cost synergies● Aiming for qualitative growth with quantitative growth through development and diversification of talent, improvement of R&D productivity, and enhancement of marketing power● Focusing and building organizational capability as a global company for sustained excellence into the next century6 At The New Takeda… Empowerment ● Employees and teams are empowered at all levels of the business by providing global experiences and the ability for timely decision-making Valuing Diversity ● A workplace built around diverse individuals and ideas, that inspires employees, and that allows each individual the same level of opportunity to reach their full potential Learn & Grow ● A workplace that fosters mutual respect and learning as part of a culture that believes “employees’ personal growth drives the growth of the company” Ownership & Pride ● A workplace where individual employees feel they are critical players in making a difference and are focused on improving patients’ quality of life7 4
    • Financial Forecast● Forecast for FY2013 of Takeda/Nycomed fundamental business is not changed from the announcement of the Nycomed transaction on May 19, except currency exchange effect● Takeda and Nycomed combined performance and integration synergies will ensure our return to a path of sustained growth.● Consistent dividend per share of ¥180 during 2011-2013 8 Nycomed: a Takeda Company November 4, 2011 Dr. Frank Morich Member of the Board 5
    • Integration Achievements to Date  Integration process started on Oct. 1, 2011 following the deal close ● Nycomed post-close organization structure determined and announced ● Direct reports to CEO named including legacy Takeda and legacy Nycomed executives – retaining key talent ● Commercial country leaders named covering all the countries globally (approximately 70), including legacy Takeda and legacy Nycomed country leadership ● Transition teams executing integration plans completed during pre-close phase ● On track to achieve top and bottom line synergy and value creation projections ● Positive business momentum continues and legacy Nycomed organization on track to outperform projections10 Nycomed’s Net Revenue in FY2011 Demonstrates Continuity Net Revenue (Excludes extraordinary factors*) ● Net revenue of FY2011 in 1H (actual)(€MM) and 2H (estimate) to be an increase (YoY +7.5%) from the same periods last year ● We will continue to accelerate the momentum of Nycomed (YoY +3.6%) FY11 YoY FY11 YoY FY11 YoY (€MM) 1H(A) (%) 2H(E) (%) Total(E) (%) Net 1,454 +3.6% 1,580 +7.5% 3,034 +5.6% Revenue** Total Net 1,480 +5.4% 1,580 -1.3% 3,060 +1.9% Revenue 0 FY2011 FY2011 1H (Actual) 2H (Estimate) ** Excludes extraordinary factors 1H : April-September 2H : October-March •Receipt of Daxas milestone from Forest in 2H 2010 and Re-stated at FY2011 2H Plan rate to exclude income from selling out Imaging Business in 1H 2011 the effect of exchange rates11 6
    • Expected to Outperform Projections● Legacy Nycomed - FY2011 revenue and profit are expected to outperform original projections FY2011 vs. original € MM (LBE) projections Net Revenue* 3,034 + EBIT 175 +++ EBITDA 660 ++ Re-stated at FY2011 2H Plan rate to exclude *Excludes extraordinary factors the effect of exchange rates12 Nycomed’s Geographical & Portfolio-based Sales● Growth in emerging markets compensates for the challenging market in Europe and exposure in emerging market business reached 45%● Portfolio is well adapted to global market diversity Geographical Breakdown of Portfolio-based Breakdown of Net Revenue (FY2011 1H) Net Revenue (FY2011 1H) (Excludes extraordinary factors) (Excludes extraordinary factors) Other OTC Russia/CIS €180MM 17.3% (-2.9%) Regional and local Rx €477MM North Asia (+14.1%) Emerging 6.0% PantoprazoleMarkets total: EUCAN * €395MM South Asia 45.5% 45% 4.4% (-9.5%) Brazil 7.9% Other Key Products €389MM (+7.5%) Latin America 6.2% Daxas Others 9.4% €13MM (new) META** 3.3% * EUCAN: Europe, Canada Re-stated at FY2011 2H Plan rate to exclude ** META: Middle East, Turkey, Africa, the effect of exchange rates13 7
    • Mature Markets (EUCAN) ● Sales in mature markets are plateauing as expected(€MM) 700 662 665 (YoY -2.6%) (YoY -3.6%) ● Slight drop in revenue vs PY as a result of the fall in the sales of Pantoprazole ● Specialty Brands continue to 600 drive growth 0 500 FY2011 2011 Apr-Sep FY2011 2011Oct-Mar Re-stated at FY2011 2H Plan rate to exclude 1H (Actual) 2H (Estimate) the effect of exchange rates14 Growth Opprtunities in Europe● Takeda, combining Nycomed, now is ready to realize the growth in Europe capable of capturing the opportunities Legacy Nycomed 2011 1H Sales: €1,084MM Italy Norway Italy Takeda Germany Germany Poland 616 France Finland France UK UK Belgium Switzerland Spain Sweden 468 468 Austria Netherlands Switzerland (€MM) Takeda New Takeda Austria DenmarkNote: Sales consists of local subsidiaries excluding licensee revenues15 8
    • Emerging Markets ● In emerging markets, net revenue will continue to increase through sales of Pantoprazole and other Key Products (€MM) 800 FY2011 1H Breakdown by Region (YoY +22.3%) Region (€MM) FY2011 1H YoY 800 Russia/CIS 252 +3.1% Latin America 91 +18.9% 700 656 (YoY +16.6%) Brazil 115 +6.5% META 48 +11.5% 600 South Asia 64 +6.7% North Asia 87 +176.6% Total 656 +16.6% 500 ● Pantoprazole +16% ● Other Key Products +6% 0 400 FY2011 2011 Apr-Sep FY2011 2011Oct-Mar Re-stated at FY2011 2H Plan rate to exclude 1H (Actual) 2H (Estimate) the effect of exchange rates16 The Integration Process ● Following the deal close on September 30, 2011, the full implementation of the integration plan started in October 2011 ● We aim to finalize the integration approximately 24 months following completion of Respect & Learn phase Closing Day (1st Oct) +6 - 12 months +24 months Transition Management Planning Respect & Learn Fine-tuning ▪ Design operating and ▪ Implement integration governance model toward plan and value capture ▪ Finalize integration closing plans Key ▪ Develop post-close ▪ Ensure business ▪ Integrate remainingObjectives implementation and value continuity functions creation plans ▪ Design and implement ▪ Capture additional ▪ Prepare HR approach longer term operating revenue opportunities (e.g., retention plans) model17 9
    • Strategic Priorities for Future Growth ● Make our business model more efficient and effective to fund growth Strategic priorities Description Drive value through a strong combined Expand presence in rapidly growing portfolio in Latin America, Middle East, Turkey markets & Africa, South Asia, North Asia, Russia/CIS Ensure success of the strong pipeline in areas Invest heavily in new and innovative of Metabolic, Oncology, CNS, products Immunology/Inflammatory, GI and Respiratory Adapt combined portfolio to regional/local Empower regions and countries to market needs and complement with develop strategies and portfolios that regional/local tailored BD opportunities to best serve their markets further expand portfolio18 Realization of Integration Synergies● Realize top line synergies for Takeda’s product portfolio and pipeline through maximizing legacy Nycomed’s… – Commercial infrastructure, particularly in high growth emerging markets  TAK-390MR (DEXILANT*, for GERD, *trade name in the US)  TAK-491 (EDARBI*, for hypertension, *trade name in the US)  SYR-322 (NESINA*, for type 2 diabetes, *trade name in Japan)  TAK-700 (generic name: orteronel, for prostate cancer)  peginesatide (for anemia associated with CRF)  lurasidone (LATUDA*, for schizophrenia and bipolar disorder, *trade name in EU)  mifamurtide (MEPACT*, for nonmetatastic osteosarcoma, *trade name in EU)  brentuximab/vedotin (ADCETRIS*, for Hodgkin’s lymphoma/ALCL, *trade name in EU) – Expertise in tailoring product mix to fit individual market requirements – Incremental innovation expertise● Annualized at least ¥ 30 billion of cost synergies in the third year after closing – FY2014 have been confirmed19 10
    • Second Quarter of Fiscal 2011 Consolidated Financial Results November 4, 2011 Hiroshi Takahara Senior Vice President Finance & Accounting Department Consolidated Financial Results [vs. 2Q of P.Y.] for the Second Quarter of Fiscal 2011 FY10 Actual FY11 Actual Currency Year-on-year change Translation Apr - Sep Apr - Sep Effect billions of yen billions of yen billions of yen 〈%〉 billions of yenNet Sales 714.0 702.5 - 11.5 〈 -1.6〉 - 28.7Gross Profit 563.4 542.9 - 20.5 〈 -3.6〉 - 28.5SG&A Expenses 217.6 212.9 - 4.7 〈 -2.2〉 - 12.7 excl. Extraordinary factors 183.3 182.0 - 1.4 〈 -0.7〉 - 9.2R&D Expenses 124.2 119.0 - 5.2 〈 -4.2〉 - 6.0Operating Income 221.6 211.0 - 10.6 〈 -4.8〉 - 9.9 excl. Extraordinary factors 256.0 242.1 - 13.9 〈 -5.4〉 - 13.3Ordinary Income 225.5 209.6 - 15.9 〈 -7.1〉 - 9.6Net Income 144.2 135.7 - 8.6 〈 -5.9〉 - 5.7 excl. Special income/loss & Extraordinary factors 168.5 157.6 - 10.9 〈 -6.5〉 - 8.1EPS 182.69 yen 171.85 yen - 10.84 yen 〈 -5.9〉 excl. Special income/loss & Extraordinary factors 213.50 yen 199.68 yen - 13.82 yen 〈 -6.5〉 USD 89 yen 80 yen - 9 yen Exchange Rate EUR 114 yen 114 yen - 0 yen21 11
    • Consolidated Financial Results [vs. Original Forecasts] for the Second Quarter of Fiscal 2011 *CTE stands for Currency Translation Effect Original Forecasts (Jul) Actual Actual vs. Forecasts Apr - Mar Apr - Sep Apr - Sep ③=②-① ③/① ① ② billions of yen billions of yen billions of yen billions of yen <%>Net Sales 1,450.0 720.0 702.5 - 17.5 〈- 2.4〉 CTE* - 18.4R&D Expenses 300.0 135.0 119.0 - 16.0 〈- 11.9〉 CTE - 3.3Operating Income 390.0 220.0 211.0 - 9.0 〈- 4.1〉 CTE - 4.4Ordinary Income 395.0 220.0 209.6 - 10.4 〈- 4.7〉 CTE - 4.4Net Income 250.0 140.0 135.7 - 4.3 〈- 3.1〉 CTE - 2.6 Exchange USD 85 yen 85 yen 80 yen - 5 yen Rate EUR 120 yen 120 yen 114 yen - 6 yen22 Breakdown of Sales Increase/Decrease by Business Segment Leuprorelin + 3.7 〈 + 16.0%〉 DEXILANT + 3.1 〈 + 39.7%〉 VELCADE + 2.6 〈 + 10.0%〉 (Unit: billions of yen) ULORIC + 2.0 〈 + 47.9%〉 + 12.4 Lansoprazole Pioglitazone - 16.4 - 19.1 〈 - 39.8%〉 〈 - 11.2%〉 *CTE stands for Currency Translation Effect - 23.5 + 0.6 (CTE - 28.5) - 1.0 ALINAMIN tablets + 0.3 〈+ 4.0%〉 BENZA(excl. drinks) + 0.2 〈+ 4.8%〉 714.0 VECTIBIX + 5.9 - NESINA + 4.2 - 702.5 BLOPRESS + 3.2 〈+ 4.8%〉 ACTOS - 5.4 〈- 22.3%〉 Merchandise(excl. ENBREL) + 6.3 〈+ 10.6%〉 New products* launched during and after FY10 total + 18.5 *NESINA(incl. LIOVEL), UNISIA, VECTIBIX, ROZEREM, METACT, ACTOS OD, LAMPION PACK, REMINYL, SONIAS FY10 Ethical Drug Ethical Drug Consumer Others FY11 Apr - Sep (Japan) (Overseas) Healthcare Apr - Sep23 12
    • Consolidated Net Sales in Ethical Drugs by Region (Unit: billions of yen) 639.8 628.7 Year-on-year change <%> excl. Currency Translation Effect Consolidated Net Sales in Ethical Drugs • + 17.5 <+ 2.7%> - 11.0 <- 1.7%> 248.0 223.8 Americas • - 3.0 <- 0.1%> - 24.2 <- 9.8%> Europe 73.7 70.6 • - 1.1 <- 1.5%> 13.5 - 3.1 <- 4.2%> 11.1 Asia and other regions • + 2.8 <+ 25.2%> + 2.4 <+ 21.6%> 284.9 297.3 Japan + 12.3 <+ 4.3%> Royalty Income and Service Income • + 3.8 <+ 17.0%> 22.1 23.6 + 1.5 <+ 6.9%> FY10 Apr-Sep FY11 Apr-Sep 24 Sales of Major Products FY10 FY11 Regional Increase/Decrease (billions of yen) Year-on-year change Apr - Sep Apr - Sep Asia and Japan Americas Europe other regions billions of yen billions of yen billions of yen 〈%〉Pioglitazone 195.6 171.0 - 24.6 〈- 12.6〉 - 5.4 - 15.7 - 3.8 + 0.4 [excl. CTE -8.4] (CTE stands for Currency Translation Effect)Sales in the U.S. ($MM) < 1,736 > < 1,740 > <+ 4> <+ 0.2>Candesartan 108.9 112.3 + 3.4 〈+ 3.1〉 + 3.2 Overseas total +0.1 [excl. CTE +5.1]Lansoprazole 75.2 62.3 - 12.9 〈- 17.1〉 + 3.5 - 17.5 + 0.9 + 0.3 [excl. CTE -11.2]Sales in the U.S. ($MM) < 352 > < 173 > <- 179> <- 50.9>Leuprorelin 56.0 60.9 + 4.9 〈+ 8.7〉 + 1.1 + 2.8 + 0.7 + 0.3 [excl. CTE +5.1]VELCADE 25.6 28.1 + 2.6 〈+ 10.0〉 ― + 2.6 ― ― [excl. CTE +5.8]Sales in the U.S. ($MM) < 287 > < 352 > <+ 65> <+ 22.6> 25 13
    • Breakdown of Operating Income Increase/Decrease (Unit: billions of yen) + 4.7 + 5.2 - 10.6 - 20.5 (- 4.8%) Negative impact of the yen’s appreciation, etc 221.6 211.0 Gross Profit Margin - 1.6pt. (FY10 Apr-Sep 78.9%→FY11 Apr-Sep 77.3%) FY10 Apr-Sep <A> <B> <C> <A+B+C> FY11 Apr-Sep Operating income Inc./Dec. Inc./Dec. Inc./Dec. Inc./Dec. Operating income of Gross profit of SG&A expenses of R&D expenses of Operating income26 Breakdown of Net Income Increase/Decrease (Unit: billions of yen) + 7.4 - 10.6 - 8.6 - 5.3 - (- 5.9%) 144.2 Consolidated effective tax rate (FY10 Apr-Sep 35.4%→FY11 Apr-Sep 34.4%) 135.7 FY10 Apr-Sep <A> <B> <C> <D> <A+B+C+D> FY11 Apr-Sep Net income Inc./Dec. Inc./Dec. Inc./Dec. Inc./Dec. Inc./Dec. Net income of Operating of Non-operating of Extraordinary of Taxes, etc. of Net income income income / loss income / loss27 14
    • Consolidated Cash Flow Summary (Unit: billions of yen) FY10 FY11 Ref: FY10 Apr - Sep Apr - Sep Apr-MarNet cash provided by (used in) operating activities 149.1 161.7 326.9 Net income before income taxes and minority interests 225.5 209.6 371.6 Depreciation of tangible fixed assets and amortization of patents 43.9 49.9 92.6 Amortization of goodwill 7.3 6.6 14.1 Increase/decrease in working capital -16.9 -14.0 -9.2 Income taxes paid -65.6 -79.5 -141.8Net cash provided by (used in) investing activities -62.6 -1,060.7 -99.3 Payment for acquisition of subsidiaries shares - -1,029.6 -Net cash provided by (used in) financing activities -73.1 463.7 -146.5 Net increase (decrease) in loans -0.3 569.8 -0.7 Dividends paid -71.0 -71.0 -142.1Effect of exchange rate changes on cash and cash equivalents -60.3 -66.0 -60.9Net increase (decrease) in cash and cash equivalents -46.9 -468.0 20.2Cash and cash equivalents at the end of period 805.6 404.7 872.7 28 Purchase Price Allocation of Nycomed Acquisition cost  EUR 9,600 M Impacts on P/L after 3rd Quarter Fully amortized within FY11** Inventories  1,015 An increase due to the fair- DTL - 154 value evaluation will be included in COGS Loan Intangible assets 10 year for DAXAS, 5,100 6,409 15 year for others based on straight-line method** (incl. IPR&D 30) Amortization over respective products will be included in SG&A DTL - 1,736 (IPR&D will be amortized after launch) 20 year amortization Cash on hand Goodwill based on straight-line method** 4,500 3,283 Amortization will be included in SG&A in FY11 Others  783 ** The accounting treatment for the amortization method and its duration will be fixed through the audit by our independent *DTL:Deferred tax liability auditor within one year from the acquisition date. 29 15
    • Effects on B/S from Nycomed Acquisition (Unit: billions of yen) Assets Liabilities and Net assets Nycomed Nycomed excl. Nycomed Total excl. Nycomed Total impact (*) impact (*)Total Assets 2,670.6 828.6 3,499.3 Total Liabilities 569.9 884.3 1,454.2incl. Cash on hand 866.5 - 460.5 405.9 incl. Loan and Debt 2.8 570.0 572.8 Inventory 135.6 105.7 241.3 Income tax 97.2 212.1 309.3 Intangible asstes 255.6 667.2 922.8 (excl. Goodwill) Total Net Assets 2,100.7 - 55.6 2,045.1 Goodwill 194.0 344.7 538.7* [Assets, Liabilities and Net assets of Nycomed]+[Impact from the business combination accounting]+[Financing for Nycomed acquisition(use of cash and debt financing)] 30 Updated FY11 Forecasts reflecting Nycomed Acquisition USD = 77 yen (75 yen for Oct-Mar) EUR = 109 yen (105 yen for Oct-Mar) USD = 85 yen EUR = 120 yen * CTE stands for Currency Translation Effect Nycomeds Nycomed FY11 Original Variance in business Business FY11 Updated Forecasts Forecasts (Jul) excl. Nycomed CTE* Combination Forecasts (Oct-Mar) Accounting ** (unit: billions of yen)Net sales 1,450.0 - 80.0 - 53.0 + 170.0 - 1,540.0R&D Expenses 300.0 - 18.0 - 13.0 + 12.0 + 1.0 295.0Operating Income 390.0 - 55.0 - 16.0 + 12.0 - 77.0 270.0 excl. Extraordinary factors 440.0 - 45.0 - 20.0 + 28.0 - 3.0 420.0Ordinary Income 395.0 - 60.0 - 16.0 + 12.0 - 77.0 270.0Net Income 250.0 - 30.0 - 6.0 + 8.0 - 58.0 170.0 excl. Special income/loss & 285.0 - 27.0 - 10.0 + 19.0 - 2.0 275.0 Extraordinary factorsE  P  S 316.71 yen - 38.01 yen + 10.13 yen - 73.47 yen 215.36 yen excl. Special income/loss & Extraordinary factors 361.05 yen - 34.22 yen + 24.07 yen - 2.53 yen 348.37 yen** The amount of valuation/allocation for Nycomed’s business combination and the accounting treatment for the amortization method and its duration may be changed within one year from the acquisition Details of Extraordinary factors(420.0-270.0=150.0) date, according to the business combination accounting standards. The final amount will be settled COGS increase due to the fair-value evaluation through the audit by our independent auditor. of inventories 57.0 Amortization of intangible assets 72.0*** This forecasts doesnt include the synergy and the restructuring cost resulting from the Nycomed Amortization of Goodwill 21.0 acquisition. According to the progress of integration, we will update the figures. 31 16
    • Consolidated Net Sales in Ethical Drugs after Nycomed Acquisition by Region **Operating income and EPS ; excluding extraordinary factors 32 Debt financing for Nycomed Acquisition and the estimate of debt repayment Financed 570 billion yen in JPY bridge loan for Nycomed acquisition in September Plan to refinance the bridge loan with long term debt within 1 year, fully enjoy current favorable market condition, financing currency and instruments to be determined Long term debt to be repaid by strong cash flow in 5 yearsUnit : billions of yen Debt Balance Estimate ¥30B of repayment in Oct 600 Estimate to be repaid in 5 years 400 570.0 540.0 200 0 Sep 2011 Oct 2011 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 Estimate 33 17
    • Second Quarter of Fiscal 2011 Updates Related to R&D Activities Tadataka Yamada, M.D. Member of the Board November 4th, 2011 TODAY’S AGENDA  Focus on R&D Productivity  Recent Pipeline Stage-Ups  Projected PDUFA Dates in the US  Ensure Approval of High-potential Pipelines and Growth Drivers35 18
    • Focus on R&D Productivity Fill the Gap in Maximize and Invigorate the Mid-stage deliver the late Discovery Pipeline stage Pipelineand Properly Value Maximize our assets -Motivate Scientists -Assume -Aggressively -Properly Value and Aggressive In-licensing accountability In-license assets Maximize our assets Develop Vaccine Business for POC&C -Rapidly assimilate -Flawlessly execute Nycomed portfolio development programs 36 Recent Pipeline Stage-Ups (Since July 29, 2011) Ph1 Ph2 Ph3 NDA ApprovalPrednisolone Multiple Myeloma Jpn In SeptemberSYR-322 Diabetes mellitus Brazil In August Taiwan In AugustTAK-491 Hypertension Thailand In SeptemberTAK-085 Hyperlipidemia Jpn In September Brazil In June Erosive esophagitis and non-erosive In AugustTAK-390MR Hong Kong/Thailand GERD S. Korea/Taiwan In SeptemberTAK-875 Diabetes mellitus US/EU/JpnSYR-472 Diabetes mellitus JpnTAK-536 Hypertension (FDC with amlodipine) Jpn Acid-related diseases JpnTAK-438 (GERD, Peptic ulcer, etc.) Relapsed or refractory HLSGN-35 Jpn Relapsed or refractory sALCLTAK-375SL Bipolar disorder USTAK-385 Endometriosis, Uterine fibroids JpnTAK-385 Prostate Cancer -MLN2480 Solid Tumors -AD4833/TOMM40 Alzheimer’s disease prevention US/EU 37 19
    • Projected PDUFA Dates in the US FY2011 Hypertension December 24TAK-491 - Fixed-dose combination with chlorthalidone 2011 Multiple Myeloma January 23VELCADE - Subcutaneous formulation 2012 Diabetes MellitusSYR-322 - Monotherapy January 25 - Fixed-dose combination with Actos 2012 Anemia associated with chronic renal March 27Peginesatide failure in adult patients on dialysis 201238 Ensure Approval of High-potential Pipelines and Growth Drivers FY11 FY12 FY13 FY14- FY15SYR-322 (NESINA*) SGN-35 (ADCETRIS*) Lu AA21004 TAK-875•DPP-4 inhibitor •Antibody-drug conjugate • Multimodal anti-depressants • GPR40 agonist Higher selectivity • Hematological cancer • Mood and anxiety disorders • Diabetes *Japanese trade name *EU trade name Peginesatide TAK-700 MLN0002VELCADE (SQ) • Synthetic ESA • 17, 20 lyase inhibitor • Humanized antibody• The only proteasome inhibitor • Once Monthly • Non-steroidal • Selectively binding to α4β7 currently approved • CKD-related anemia • Prostate cancer integrinTAK-491 (EDARBI*) TAK-390MR (DEXILANT*) MLN9708• Angiotensin II receptor blocker •Proton pump inhibitor • 2nd generation proteasome• Stronger efficacy • Dual Delayed ReleaseTM inhibitor *US trade name *US trade name • Orally administrableRoflumilast (DAXAS*) TAK-438•PDE4 inhibitor • P-CAB• First in class for COPD *EU trade name • Better efficacy Lurasidone (LATUDA*) Atypical antipsychotic *EU trade name (TBD) Regional specific products 39 20
    • Forward-Looking StatementsThis presentation contains forward-looking statements regarding the Companys plans, outlook,strategies, and results for the future.All forward-looking statements are based on judgments derived from the information available to theCompany 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 similarwords or expressions of the negative thereof.Certain risks and uncertainties could cause the Companys actual results to differ materially from anyforward looking statements contained in this presentation. These risks and uncertainties include, butare not limited to, (1) the economic circumstances surrounding the Companys business, includinggeneral economic conditions in the US and worldwide; (2) competitive pressures; (3) applicable lawsand regulations; (4) the success or failure of product development programs; (5) decisions ofregulatory authorities and the timing thereof; (6) changes in exchange rates; (7) claims or concernsregarding the safety or efficacy of marketed products or product candidates; and (8) integrationactivities with acquired companies.We assume no obligation to update or revise any forward-looking statements or other informationcontained in this presentation, whether as a result of new information, future events, or otherwise. 2011/11/2 21