Takeda Pharmaceutical : Summary of Financial Statements for the Three-month Period Ended June 30, 2021 (IFRS,Consolidated)

Summary of Financial Statements for the Three-month Period Ended June 30, 2021 (IFRS, Consolidated)

			July 30, 2021
Takeda Pharmaceutical Company Limited	Stock exchange listings:	Tokyo, Nagoya, Fukuoka, Sapporo
TSE Code:	4502	URL: http://www.takeda.com
Representative:	Christophe Weber, President & CEO
Contact:	Christopher O'Reilly	Telephone: [phone]	Email: [e-mail]
	Global Head of IR, Global Finance

Scheduled date of securities report submission: August 6, 2021

Scheduled date of dividend payment commencement: -

Supplementary materials for the financial statements: Yes

Presentation to explain for the financial statements: Yes

(Million JPY, rounded to the nearest million)

1. Consolidated Financial Results for the Three-month Period Ended June 30, 2021 (April 1 to

1. June 30, 2021)

2. Consolidated Operating Results (year to date)

											(Percentage figures represent changes over the same period of the previous year)
		Revenue				Operating profit		Profit before tax					Net profit
								for the period
		(Million JPY)		(%)			(Million JPY)			(%)				(Million JPY)			(%)		(Million JPY)			(%)
Three-month Period Ended	949,603			18.4				248,552			48.6	222,978					71.1	200,421			142.9
June 30, 2021
Three-month Period Ended	801,850			(5.6)				167,285			270.4	130,291					-			82,519			-
June 30, 2020
		Net profit attributable to		Total comprehensive		Basic earnings			Diluted earnings
		owners of the Company		income for the period		per share						per share
		(Million JPY)	(%)			(Million JPY)	(%)				(JPY)						(JPY)
Three-month Period Ended		200,378			142.8				258,521			165.8		128.02				127.27
June 30, 2021
Three-month Period Ended	82,511			-		97,258			-	52.93					52.69
June 30, 2020
		Core Operating Profit				Core EPS
		(Billion JPY)	(%)						(JPY)
Three-month Period Ended		248.9			(11.4)				113
June 30, 2021
Three-month Period Ended	280.9			(0.7)				122
June 30, 2020
(2) Consolidated Financial Position
																	Equity attributable	Ratio of equity			Equity attributable
																	attributable to
					Total assets				Total equity	to owners of the	owners of the			to owners of the
									Company	Company to total				Company per
					(Million JPY)				(Million JPY)				(Million JPY)			assets (%)				share (JPY)
As of June 30, 2021				12,657,234	5,300,159			5,299,774				41.9			3,378.55
As of March 31, 2021				12,912,293	5,177,177			5,173,037				40.1			3,308.93

2. Dividends

Annual dividends per share (JPY)

1st quarter end

2nd quarter end

3rd quarter end

Year-end

Total

For the Fiscal Year Ended March 31, 2021 For the Fiscal Year Ending March 31, 2022

For the Fiscal Year Ending March 31, 2022 (Projection)

-	90.00	-	90.00	180.00
-
	90.00	-	90.00	180.00

(Note) Modifications in the dividend projection from the latest announcement: None

3. Forecasts for Consolidated Operating Results for the Fiscal Year Ending March 31, 2022 (April 1, 2021 to March 31, 2022)

(Percentage figures represent changes from previous fiscal year)

Core Operating

Profit before

Net profit attributable

Basic

Revenue

Operating profit

to owners of the

earnings

Core EPS

Profit

income taxes

Company

per share

(Million JPY)

(%)

(Million JPY)

(%)

(Million JPY)

(%)

(Million JPY)

(%)

(Million JPY)

(%)

(JPY)

(JPY)

For the

Fiscal Year

3,370,000

5.4

930,000

(3.9)

488,000

(4.2)

352,000

(3.9)

250,000

(33.5)

159.91

394

Ending

March 31,

2022

(Note) Modifications in forecasts of consolidated operating results from the latest announcement: None

FY2021 Management Guidance

Underlying Revenue Growth

Mid-single-digit growth

Underlying Core Operating Profit Growth

Mid-single-digit growth

Underlying Core Operating Profit Margin

~30% margin

Underlying Core EPS Growth

Mid-single-digit growth

(Note) Please refer to page 6 for details of "Underlying growth".

• Additional Information

(1) Changes in significant subsidiaries during the period

(changes in specified subsidiaries resulting in the change in consolidation scope)

1. Changes in accounting policies and changes in accounting estimates
2. 1. Changes in accounting policies required by IFRS
   2. Changes in accounting policies other than 1)
   3. Changes in accounting estimates
3. Number of shares outstanding (common stock)
4. 1. Number of shares outstanding (including treasury stock) at period end:

June 30, 2021

March 31, 2021

1. Number of shares of treasury stock at period end: June 30, 2021
   March 31, 2021
2. Average number of outstanding shares (for the three-month period ended June 30): June 30, 2021
   June 30, 2020

• No
• No
• No
• No

1,578,378,220 shares

1,576,387,908 shares

9,723,017 shares

13,029,749 shares

1,565,249,233 shares

1,558,969,468 shares

• This summary of quarterly financial statements is not subject to quarterly review by the external auditor
• Note to ensure appropriate use of forecasts, and other noteworthy items
• • Takeda applies International Financial Reporting Standards (IFRS), and the disclosure information in this document is based on IFRS.
  • All forecasts in this document are based on information currently available to management, and do not represent a promise or guarantee to achieve these forecasts. Various uncertain factors could cause actual results to differ, such as changes in the business environment and fluctuations in foreign exchange rates. Should any significant event occur which requires the forecast to be revised, Takeda will disclose it in a timely manner.
  • For details of the financial forecast, please refer to "1. Financial Highlights for the Three-month Period Ended June 30, 2021 (3) Outlook for the Fiscal Year Ending March 31, 2022" on page 10.
  • Supplementary materials for the financial statements including the Quarterly Financial Report and Earnings Presentation of the conference call on July 30, 2021, and its video will be promptly posted on Takeda's website.

(Takeda Website):

https://www.takeda.com/investors/financial-results/

Takeda Pharmaceutical Company Limited (4502)

Summary of Financial Statements for the Three-month

Period Ended June 30, 2021 (Consolidated)

Attachment Index
1. Financial Highlights for the Three-month Period Ended June 30, 2021	2
(1)	Business Performance	2
(2)	Consolidated Financial Position	8
(3)	Outlook for the Fiscal Year Ending March 31, 2022	10
(4)	Impact of the Spread of the Novel Coronavirus Infectious Disease (COVID-19) and Takeda's	12
	Initiatives in Response
2. Condensed Interim Consolidated Financial Statements [IFRS] and Major Notes	14
(1)	Condensed Interim Consolidated Statements of Profit or Loss	14
(2)	Condensed Interim Consolidated Statements of Comprehensive Income	15
(3)	Condensed Interim Consolidated Statements of Financial Position	16
(4)	Condensed Interim Consolidated Statements of Changes in Equity	18
(5)	Condensed Interim Consolidated Statement of Cash Flows	20
(6)	Notes to Condensed Interim Consolidated Financial Statements	22

[Appendix]
1 FY2021 Q1	Reconciliation from Reported Revenue to Core/Underlying Revenue
2 FY2021 Q1	Reconciliation from Reported to Core/Underlying Core
3 FY2020 Q1	Reconciliation from Reported to Core/Underlying Core

1

Takeda Pharmaceutical Company Limited (4502)

Summary of Financial Statements for the Three-month

Period Ended June 30, 2021 (Consolidated)

1. Financial Highlights for the Three-month Period Ended June 30, 2021

(1) Business Performance

1. Consolidated Financial Results (April 1 to June 30, 2021)

					Billion JPY or percentage
	FY2020Q1		FY2021Q1		Change versus the same period of the
			previous fiscal year
Revenue	801.9		949.6		147.8			18.4 %
Cost of sales	(238.1)	(241.3)	(3.2)			1.3	%
Selling, general and administrative expenses	(202.4)	(219.8)	(17.5)			8.6	%
Research and development expenses	(106.8)	(122.5)	(15.7)			14.7 %
Amortization and impairment losses on intangible	(104.2)	(102.8)	1.4			(1.4)%
assets associated with products
Other operating income	63.7	11.1	(52.6)			(82.6)%
Other operating expenses	(46.8)	(25.8)	21.0			(44.9)%
Operating profit	167.3		248.6		81.3			48.6	%
Finance income and (expenses), net	(27.2)	(25.2)	2.0			(7.4)%
Share of loss of investments accounted for using	(9.8)	(0.4)	9.4			(96.3)%
the equity method
Profit before tax	130.3		223.0		92.7			71.1	%
Income tax expenses	(47.8)	(22.6)	25.2			(52.8)%
Net profit for the period	82.5		200.4		117.9			142.9	%

Revenue. Revenue for the three-month period ended June 30, 2021 was 949.6 billion JPY, an increase of 147.8 billion JPY, or 18.4%, compared to the same period of the previous fiscal year. Excluding the impact from fluctuations in foreign exchange rates, which was calculated by translating revenue of the three-month period ended June 30, 2021 using corresponding exchange rates in the same period of the previous fiscal year, the increase in revenue was 14.3%. In April 2021, Takeda completed the sale of a portfolio of diabetes products in Japan to Teijin Pharma Limited for 133.0 billion JPY, which was recorded as revenue and accounted for 16.6 percentage points ("pp") of the increase in revenue. Excluding this selling price from revenue for the three-month period ended June 30, 2021, the increase was 1.8%.

Each of our core therapeutic areas (i.e. Gastroenterology ("GI"), Rare Diseases, Plasma-Derived Therapies ("PDT") Immunology, Oncology, and Neuroscience) contributed to positive revenue growth; however, Rare Diseases and PDT Immunology would have declined if not for the positive impact of the depreciation of the yen. Intensified competition, generic erosion, and shipment timing impacted some products in these two areas. Overall, the global spread of COVID-19 did not have a material effect on our revenue for the three-month period ended June 30, 2021.

Revenue outside of our core therapeutic areas increased by 101.8 billion JPY, or 72.8%, compared to the same period of the previous fiscal year to 241.6 billion JPY, largely due to the 133.0 billion JPY selling price of the diabetes portfolio in Japan, offsetting the impact from divestitures.

Year-on-year change in revenue for this three-month period in each of our main therapeutic areas was primarily attributable to the following products:

• GI. In Gastroenterology, revenue was 210.5 billion JPY, a year-on-year increase of 23.6 billion JPY, or 12.6%. Growth was driven by Takeda's top-selling product ENTYVIO (for ulcerative colitis ("UC") and Crohn's disease ("CD")), with sales of 125.4 billion JPY, a year-on-year increase of 24.1 billion JPY, or 23.9%. Sales in the U.S. increased by 12.2 billion JPY, or 17.1%, to 83.7 billion JPY and sales in Europe and Canada increased by 8.6 billion JPY, or 35.6%, to 32.7 billion JPY, due to an increase in demand. In the Growth and Emerging Markets, the increase in sales was primarily driven by Brazil and China. Sales of TAKECAB (for acid-related diseases) were 24.3 billion JPY, an increase of 4.1 billion JPY, or 20.1%, versus the same period of the previous fiscal year. This increase was driven by the expansion of new prescriptions in the Japanese market due to TAKECAB's efficacy in reflux esophagitis and the prevention of recurrence of gastric and duodenal ulcers during low-dose aspirin administration. Sales of AMITIZA (for chronic constipation) decreased by 4.1 billion JPY, or 65.8%, to 2.1 billion JPY, due to generic entrants in the U.S. in January 2021.
• Rare Diseases. In Rare Diseases, revenue was 155.5 billion JPY, a slight year-on-year increase of 0.5 billion JPY, or 0.3%.
  Revenue in Rare Metabolic increased by 4.3 billion JPY, or 10.9%, compared to the same period of the previous fiscal year to 44.3 billion JPY. Sales of enzyme replacement therapies REPLAGAL (for Fabry disease), VPRIV (for Gaucher disease)

2