Takeda reports top line results in line with guidance

Operational guidance met Underlying revenue +2.8% year-over-year, in line with guidance (reported revenue growing +5.1% to 1,777.8 billion yen) Underlying core earnings of -2.1%, in line with guidance Growth supported by innovative new products Entyvio sales in US and EU support \$2bn peak sales target Brintellix outperforming two recent branded antidepressant launches in the US, 1 year after launch Contrave off to a promising start in the US Azilva growing strongly (80% year-over-year) in Japan Takecab launched in Japan in February 2015 Regional top line performance on track Price pressure and generic erosion in Japan, partially mitigated by successful product launches Very strong performance in US and Europe and Canada driven by new products Emerging Markets up 10% year-on-year (excluding inventory adjustment), double-digit growth in China and Russia Efficiency gains above target Project Summit achieving more than half of 5-year savings target in 2 years Exceptional items impacting bottom line \$2.7 billion related to Actos settlement and associated costs. Other one-time items related to product / pipeline impairment and Japanese tax reform Guidance: Back to profitable growth from FY2015 Low single-digit underlying revenue growth in FY2015, with underlying core earnings growth higher than underlying revenue growth, and underlying core EPS growth higher than underlying core earnings growth Excluding the Actos settlement impact in FY2014, reported net profit is expected to more than double in FY2015 180 yen dividend per share for FY2015 and strives to at least maintain the 180 yen annual dividend per share after fiscal year 2015

Christophe Weber, President and Chief Executive Officer of Takeda, commented:

“FY2014 was a year of transformation for Takeda, and at the same time, a year during which we delivered our business targets. We obtained approval for four important new treatments with Entyvio, Contrave, Takecab and Zafatek, and achieved significant pipeline milestones, including the phase 3 interim results for ixazomib. EPS was mainly impacted by the Actos settlement agreement expected to resolve the vast majority of Actos product liability lawsuits pending in the U.S, which will reduce financial uncertainties for the company and allow us to focus on developing innovative medicines for patients around the world.

Last year, I outlined my plan for the new Takeda organization, and we are steadily progressing to execute our strategic roadmap on all fronts to continue building a patient and customer centric organization with a focused world class R&D engine. Takeda’s growth drivers are gastroenterology, value brands in emerging markets, and oncology along with the launch of ixazomib. Financial discipline will sustain our business momentum, and I anticipate FY2015 will be a turnaround year for Takeda as we have positioned the company for long-term sales and profit growth."

Key figures for FY2014

	FY 2013	FY 2014	Growth
billion yen				Underlying
Revenue	1,691.7	1,777.8	+5.1%	+2.8%
Operating Profit	139.3	-129.3	–	–
Core Earnings	314.2	288.3	-8.2%	-2.1%
Net Profit	106.7	-145.8	–	–
EPS	135 yen	-185 yen	–	–
Core EPS	266 yen	225 yen	-15.6%	-3.7%
Dividend per Share	180 yen	180 yen	–	–