Takeda's Transformation into A World-Class Pharmaceutical Company Takeda's Transformation into A World-Class Pharmaceutical Company Yasuchika Hasegawa, President & COO Takeda Pharmaceutical Company Limited Sep 7, 2005 2005 Merrill Lynch Japan Conference AGENDAAGENDA Company Overview -Summary of FY2004 results and outlook for FY2005- Strategies for the business in the U.S. -current status and future outlookThoroughly strengthening research and development pipeline -transformation into global mega pharmaceutical companySummary of FY2004 Results and Outlook for FY2005 Summary of FY2004 Results and Outlook for FY2005 0 200 400 600 800 1000 1200 FY2004 Results FY2005 Outlook Operating IncomeNet Sales Ordinary Income Net Income (+3.7%) (+3.4%) (-0.9%) (-2.7%) 13 yrs consecutive growth 14 yrs consecutive growth decline for the 1st time in 13 yrs decline for the 1st time in 11 yrs Billion 1,123.0 1,155.0 385.3 370.0 442.1 445.0 277.4 295.0 Q1 2004 Q1 2005 Billions of yen Billions of yen Net sales 296.9 313.4 16.6 (+
Together with our corporate philosophy of Takeda-ism, our high ethical standards and strong sense of mission, developed over our 220-year history of knowing about the value of life, have become a vital part of our management today.
Takeda Pharmaceuticals North America, Inc. (TPNA) 18 Takeda Pharmaceuticals North America, Inc. TPNA Takeda Global Research & Development Center Inc. TGRD Takeda San Diego, Inc. TSD Takeda Research Investment, Inc. TRI (marketing) (development) (research) (venture capital) The U.S. market is the largest in the world, with around half of the share in the global pharmaceutical market. Although its pace of growth is slowing compared to the double-digit growth in the past, we see it as a promising market for continued sustainable growth in future due to the stable population growth and aging of the general population. It may be no exaggeration to say that Takeda's global growth would not be possible without its success in the U.S. market. Takeda has four functions in the U.S. market - a venture capital function: Takeda Research Investment, Inc. (TRI), a research function: Takeda San Diego, Inc. (TSD), a development function: Takeda Global Research & Development Center Inc. (TGRD) and a marketing function: Takeda
TakedaPharmaceuticalCompanyLimited Japan ★Nihon Pharmaceutical Co., Ltd. ◎Wyeth K.K. Others 【Ethicaldrugs】 【Ethicaldrugs】 ★Takeda America Holdings,Inc. ★Takeda Pharmaceuticals North America,Inc. ★Takeda Global Research & Development Center Inc. ★Takeda San Diego, Inc. ★Takeda Research Investment, Inc. ◎TAP Pharmaceutical Products Inc. ★Takeda Pharma GmbH ★Takeda Pharma Ges.m.b.H. ★Takeda Pharma AG ★Laboratoires Takeda ★Takeda Italia Farmaceutici S.p.A. ★Takeda UK Limited ★Takeda Global Research & Development Centre (Europe), Ltd. ★Takeda Ireland Limited. ★Takeda Pharma Ireland Limited ★Takeda Chemical Industries (Taiwan), Ltd. ★P.T. Takeda Indonesia ★Tianjin Takeda Pharmaceuticals. Co., Ltd. ◎Boie-Takeda Chemicals, Inc. ◎Takeda (Thailand), Ltd. and others ★:Consolidated subsidiaries Supply of raw materials Others Sales of products Consign processing 《Holding Company》 《Sale》 《Development》 《Research》 《Research-related Venture Investment》 《Sale &
1 1 Takeda Pharmaceutical Company Limited Takeda Pharmaceutical Company Limited President Yasuchika Hasegawa May 11, 2007 Management PolicyManagement Policy 2 Takeda Pharmaceutical Company LimitedTakeda Pharmaceutical Company Limited 2006-2010 Medium-Term Management Plan Enhancement of R&D pipeline Comprehensive improvement of strengths as a Japanese company Establishment and in-depth implementation of strategies from a long-term perspective High productivity and efficiency Growth toward a World-class Pharmaceutical Company with Japanese Origin, based on Takeda-ism Growth toward a World-class Pharmaceutical Company with Japanese Origin, based on Takeda-ism Securing human resources Improvement of the presence 2 3 Takeda Pharmaceutical Company LimitedTakeda Pharmaceutical Company Limited 2006-2010 Medium-Term Management Plan Operational targets FY06 (Actual) FY07 (Estimate) Net sales: mid-single digit growth 1,305.2 billion yen (+7.7%) 1,390.0 billion yen (+6.5%) R&D expenses: late-single digit increase 193.3
3. Management Policy (1) Basic Management Policy Focusing on "Takeda-ism" (integrity, which refers to fairness, honesty and perseverance) as the basis for all its business activities, Takeda is aiming at realizing its management mission of "striving toward better health for individuals and progress in medicine by developing superior pharmaceutical products." Establishing its 2006-2010 Medium-term Management Plan, Takeda embarked on a new challenge in 2006 to become "a world-class pharmaceutical company with Japanese origin" that is capable of developing medium- to long-term perspectives. Throughout the period of this plan, Takeda will dedicate its collective efforts to thoroughly enhance its strengths, such as its "capability to establish and implement in-depth strategies from a long-term perspective" and its "high productivity and efficiency." At the same time, all energies of the Group will be concentrated on the following tasks, with a view to maximizing the company's corporate value. 1) Enhancement of R&
[Qualitative Information, Financial Statements and Other Information] 1. Results of Operations (1) Analysis of Results of Operations 1) Overview of Results In April 2006 the Japanese government carried out a special drug price reduction and revision of price calculation for branded drugs for which substitute generic drugs were available, in addition to the ordinary reduction of National Health Insurance (NHI) drug prices. Furthermore, specific measures to encourage the use of generic drugs began to be implemented. In this severe environment, the domestic market in fiscal 2006 posted negative growth for the first time in six years. It is very likely that the government will vigorously promote various measures to cut pharmaceutical costs, including annual NHI drug price revision, price reductions that are not based on market prices, and the planned adoption of a scheme for comprehensive medical fees for elderly outpatients. Therefore, the domestic market is forecast to grow only at a modest rate, at around 1-2
[Qualitative Information, Financial Statements and Other Information] 1. Results of Operations (1) Analysis of Results of Operations 1) Overview of Results In April 2006 the Japanese government carried out a special drug price reduction and revision of price calculation for branded drugs for which substitute generic drugs were available, in addition to the ordinary reduction of National Health Insurance (NHI) drug prices. Furthermore, specific measures to encourage the use of generic drugs began to be implemented. In this severe environment, the domestic market in fiscal 2006 posted negative growth for the first time in six years. It is very likely that the government will vigorously promote various measures to cut pharmaceutical costs, including annual NHI drug price revision, price reductions that are not based on market prices, and the planned adoption of a scheme for comprehensive medical fees for elderly outpatients. Therefore, the domestic market is forecast to grow only at a modest rate, at around 1-2
3. Management Policy (1) Basic Management Policy Focusing on "Takeda-ism" (integrity, which refers to fairness, honesty and perseverance) as the basis for all its business activities, Takeda is aiming at realizing its management mission of "striving toward better health for individuals and progress in medicine by developing superior pharmaceutical products." Establishing its 2006-2010 Medium-term Management Plan, Takeda embarked on a new challenge in 2006 to become "a world-class pharmaceutical company with Japanese origin" that is capable of developing medium- to long-term perspectives. Throughout the period of this plan, Takeda will dedicate its collective efforts to thoroughly enhance its strengths, such as its "capability to establish and implement in-depth strategies from a long-term perspective" and its "high productivity and efficiency." At the same time, all energies of the Group will be concentrated on the following tasks, with a view to maximizing the company's corporate value. 1) Enhancement of R&
Takeda Annual Report 200612 Corporate Governance FUNDAMENTAL POLICY Based on the Management Mission: "we strive toward better health for individuals and progress in medicine by developing superior pharmaceutical products," Takeda strives to strengthen internal control, including thorough compliance, as well as promoting the establishment of a system allowing the creation of a healthy and transparent environment for quick decision-making in order to establish a management framework befitting a "world-class pharmaceutical company with Japanese origin," which operates business worldwide. IMPROVEMENT OF THE INTERNAL CONTROL SYSTEM Takeda strives to improve the internal control system, taking internal control as an important component of corporate governance that functions alongside risk management. In addition, Takeda has promoted responses to the internal control audit in Japan, scheduled for launch in fiscal 2008 by preparing for documentation in terms of internal control to secure the reliability of financial
Medical Professions Patients Shareholders and investors Employees Society EnvironmentSuppliers Takeda Annual Report 2006 11 Takeda-ism Management Vision Management Mission We, the members of the Takeda Group, pledge to act with integrity at all times, especially when facing difficulties or challenges. "Integrity" refers to our compliance with the highest ethical standards, our fairness and honesty in conducting every activity, and our perseverance in pursuing the ideal forms for our operations and management. Through the demonstration of these qualities, we show our commitment to building trust and confidence in all the people around us, and our determination to continue to expand the business. These empower our progress in our global endeavors to fulfill our mission to "strive toward better health for individuals and progress in medicine by developing superior pharmaceutical products." Corporate Values ◎ Dignity of life and strict ethical standards ◎ Personal worth and the essence of our operations ◎ Res
Hitachi, Ltd. ("Hitachi", Tokyo, Japan, President & CEO: Etsuhiko Shoyama) and Takeda Pharmaceutical Company Limited ("Takeda", Osaka, Japan, President & COO: Yasuchika Hasegawa) announced today that both parties established a joint venture "Hitachi Inspharma, Ltd." for information system support in which Hitachi and Takeda owns 66% and 34% shares respectively.
I.Overview of subsidiaries and affiliates Domestic Overseas ★: Consolidated Subsidiary ◎: Affiliate Accounted for by the Equity Method Raw Materials Supply Other Product Sales Consignment Processing TakedaPharmaceuticalCompanyLimited The Takeda Group consists of 67 companies, including the parent company submitting these consolidated financial statements, 45 consolidated subsidiaries and 21 affiliates accounted for by the equity method. The following chart shows the main business areas of the Takeda Group, the position of the companies that make up the Group within their respective areas of business, and relationships with each segment. Pharmaceuticals 【Ethical Drugs】 ★ Nihon Pharmaceutical Co., Ltd. ◎ Wyeth K.K. and others 《Production/Sales》 《Production/Sales》 【Consumer Healthcare】 ★ Takeda Healthcare Products Co., Ltd. and others 《Production》 Other Businesses ◎ BASF Takeda Vitamins Ltd. 《Sales》 【 Bulk Vitamin 】 Pharmaceuticals (North America) ★Takeda America Holdings, Inc. ★Takeda Pha
FFiinnaanncciiaall RReessuullttss ffoorr 11st HHaallff FFYY22000055st DATA BOOK Takeda Pharmaceutical Company Limited (TSE code 4502) Contact: Corporate Communications Dept. TEL: +81-3-3278-2039 FAX: +81-3-3278-2741 http://www.takeda.com/ Financial News http://www.takeda.com/english/financial/index.html [Takeda-ism] We, the members of the Takeda Group, pledge to act with integrity at all times, especially when facing difficulties or challenges. "Integrity" refers to our compliance with the highest ethical standards, our fairness and honesty in conducting every activity, and our perseverance in pursuing the ideal forms for our operations and management. Through the demonstration of these qualities, we show our commitment to building trust and confidence in all the people around us, and our determination to continue to expand the business. These empower our progress in our global endeavors to fulfill our mission to "strive toward better health for individuals and progress in medicine by developing superior pha
TakedaPharmaceuticalCompanyLimited Japan ★Nihon Pharmaceutical Co., Ltd. ◎Wyeth K.K. Others 【Ethical drugs】 【Ethical drugs】 ★Takeda America Holdings,Inc. ★Takeda Pharmaceuticals North America,Inc. ★Takeda Global Research & Development Center Inc. ★Takeda San Diego, Inc. ★Takeda Research Investment, Inc. ◎TAP Pharmaceutical Products Inc. ★Takeda Pharma GmbH ★Takeda Pharma Ges.m.b.H. ★Takeda Pharma AG ★Laboratoires Takeda ★Takeda Italia Farmaceutici S.p.A. ★Takeda UK Limited ★Takeda Global Research & Development Centre (Europe), Ltd. ★Takeda Ireland Limited. ★Takeda Pharma Ireland Limited ★Takeda Chemical Industries (Taiwan), Ltd. ★P.T. Takeda Indonesia ★Tianjin Takeda Pharmaceuticals. Co., Ltd. ◎Boie-Takeda Chemicals, Inc. ◎Takeda (Thailand), Ltd. Others ★:Consolidated subsidiaries Supply of raw materials Others Sales of products Consign processing 《Holding Company》 《Sale》 《Development》 《Research》 《Research-related Venture Investment》 《Sale & De
29 Approach to Social Contribution Support for society Support for science and technology Support for sports and culture Takeda Corporate Social Responsibility Report 2005 There are those who strive tirelessly in areas where society has considerable expectations, and who do so without looking for government or corporate assistance. Takeda respects their efforts and is committed to helping them. "Patients and their families" are one of the most important stakeholder segments within Takeda. For patients and their families [In Japan] Since 2004, Takeda has supported the "NPO Family House," which provides accommodation for the families of children who are hospitalized away from home. Children affected with serious illness need to be treated in large specialized hospitals, usually located in large cities. As a general rule, their families are not allowed to stay overnight, hence, parents must find overnight accommodation elsewhere. "NPO Family House" provides safe, reliable and economical accommodation for such f
5 The concept of CSR is interwoven into the "Corporate Philosophy" of Takeda. Corporate PhilosophyCorporate Philosophy Takeda-ism Management Vision Management Mission We, the members of the Takeda Group, pledge to act with integrity at all times, especially when facing difficulties or challenges. "Integrity" refers to our compliance with the highest ethical standards, our fairness and honesty in conducting every activity, and our perseverance in pursuing the ideal forms for our operations and management. Through the demonstration of these qualities, we show our commitment to building trust and confidence in the people around us and our determination to continue to grow. These empower our progress in our global endeavors to fulfill our mission to "strive toward better health for individuals and progress in medicine by developing superior pharmaceutical products." Corporate Values ◎Dignity of life and strict ethical standards ◎Personal worth and the essence of our operations ◎Responsibility and cooperation
Together with our corporate philosophy of Takeda-ism, our high ethical standards and strong sense of mission, developed over our 220-year history of knowing about the value of life, have become a vital part of our management today. TAKEDA-ISM We, the members of the Takeda Group, pledge to act with integrity at all times, especially when facing difficulties or challenges. "Integrity" refers to our compliance with the highest ethical standards, our fairness and honesty in conducting every activity, and our perseverance in pursuing the ideal forms for our operations and management. Through the demonstration of these qualities, we show our commitment to building trust and confidence in all the people around us, and our determination to continue to expand the business. These empower our progress in our global endeavors to fulfill our mission to "strive toward better health for individuals and progress in medicine by developing superior pharmaceutical products." CORPORATE PHILOSOPHY MANAGEMENT VISION - A multinati
27 REVIEW OF OPERATIONS AND FINANCIAL CONDITION Takeda Pharmaceutical Company Limited and Subsidiaries Year ended March 31, 2005 (Fiscal 2004) The growth rate of the ethical pharmaceuticals industry, which is Takeda's core business, is slowing worldwide as measures to constrain healthcare expenditures such as lowering drug prices are taken in many countries. In the United States, downward pressure on prices of branded products is becoming even greater as the federal and state governments and insurance companies encourage the use of generic drugs. In addition, competition is becoming even more heated in Takeda's core fields of peptic ulcers, prostate cancer and endometriosis because of generic drugs, and also the over-the-counter (OTC) versions of the proton pump inhibitors in the peptic ulcer market. In Japan, the growth rate of the pharmaceuticals market is the lowest among industrialized countries because of periodic government drug price reductions and measures to promote the use of generic drugs. Drug pr
Takeda has until now conducted research and development, from target discovery to drug creation, at research centers in Tsukuba and Osaka in Japan. In March 2005, however, Takeda secured its first research base outside Japan with the acquisition of a U.S. bioventure. Takeda is devoted to utilizing this global research network to deliver highly innovative pharmaceuticals as quickly as possible. PROMOTING PATIENT-FOCUSED RESEARCH Takeda is taking proactive steps to strengthen its pipeline. This involves accurately understanding patient needs and focusing management resources on the Company's four core therapeutic areas: lifestyle-related diseases, cancer and urological diseases, central nervous system (CNS) diseases, and life-cycle management of drugs for digestive system diseases. Takeda further facilitates drug discovery through a product strategy system named the MPDRAP strategy*. * Enables rapid decision-making by sharing information across each of our marketing, production, development, research, alliance