DGAP-Ad-hoc: Takeda Pharmaceutical Company Limited / Key word(s): Annual
Results
Takeda Pharmaceutical Company Limited: Notice of the Revised Forecast of
Consolidated Financials for FY2019 (IFRS)
31-Oct-2019 / 07:30 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation
(EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
October 31, 2019
*Notice of the Revised Forecast of Consolidated Financials for FY2019
(IFRS)*
*Osaka, Japan, October 31, 2019 - *Takeda Pharmaceutical Company Limited
("Takeda") announced today, based on the latest business circumstances, the
revised forecast of the full year consolidated financials for the fiscal
year ending March 31, 2020, as below.
*1. *Revised Forecast for Full Year Consolidated Financials for the Fiscal
Year Ending March 31, 2020
(millions of yen)
Revenue Core Operating Profit Net Basic
Operating profit before profit earning
Profit income attrib s
taxes utable per
to share
owners
of
the
Compan
y
Previous 3,300,000 910,000 -166,000 -342,0 -367,7 -236.05
Forecast 00 00 yen
(A)*1
Revised 3,260,000 930,000 -110,000 -290,0 -273,0 -175.31
Forecast (B) 00 00 yen
Discrepancy -40,000 +20,000 +56,000 +52,00 +94,70 +60.74
(B-A) 0 0 yen
Change % -1.2% +2.2% +33.7% +15.2% +25.8% +25.7%
Reference: 2,097,224 459,322 204,969 94,896 109,12 113.50
Consolidated 6 yen
Results
for the Year
Ending
March 31,
2019
*1 Announced on July 31, 2019.
2. Reasons for Revision
The revised forecast in the table above reflects the business momentum of
Takeda's 14 global brands and favorability of operating expenses and cost
synergies.
The revenue forecast has been decreased by 40.0 billion JPY, or 1.2%, to
3,260.0 billion JPY, predominantly reflecting the negative impact of foreign
currency, mostly the appreciation of the yen, and the NATPARA recall in the
U.S.*2, partially offset by upwardly revised assumptions for products such
as ENTYVIO, TAKECAB and VYVANSE.
Core Operating Profit has been increased by 20.0 billion JPY, or 2.2%, to
930.0 billion JPY, reflecting the positive impact from cost efficiencies and
synergies. The Operating Profit forecast has been increased by 56.0 billion
JPY, or 33.7%, to a loss of 110.0 billion JPY, reflecting the increase in
Core Operating Profit and revised assumptions for the full year impact of
purchase price accounting expenses*3.
Reported EPS has been increased by 60.74 JPY to a loss of 175.31 JPY,
benefitting from the recognition of a non-cash deferred tax benefit relating
to the Tax Reform in Switzerland.
*2 In September 2019, NATPARA was recalled in the U.S. due to an issue
related to the rubber septum of its cartridge.
*3 Takeda has made adjustments to the provisional fair value as of the
acquisition date of assets acquired through the acquisition of Shire
including NATPARA, and accordingly revised assumptions for the full year
impact of purchase price accounting. The revised forecast reflects decrease
in amortization expense of intangible assets and decreased amount charged to
cost of sales from unwinding of the fair value step-up on inventory.
3. Upgrading Management Guidance
Takeda has upwardly revised its full-year profit and margin guidance with
business momentum more than offsetting the recall of NATPARA in the U.S.
Previous Guidance Revised Guidance
(July 31, 2019) (October 31, 2019)
Underlying Flat to slightly increasing Flat to slightly
Revenue Growth*4 increasing
Underlying Core Mid-to-high-twenties % High-twenties %
Operating Profit
Margin
Underlying Core 360 - 380 yen 370 - 390 yen
EPS
Annual dividend 180 yen 180 yen
per share
*4 Constant Exchange Rate growth compared to baseline of 3,300 billion JPY.
This baseline revenue is a pro-forma which adds Legacy Shire's (April -
December 2018) revenue previously reported under US GAAP and conformed to
IFRS without material differences, excluding Legacy Shire's oncology
business, which was sold in August 2018, and converted to JPY using FY2018
full year average rate (111 JPY/USD). Baseline revenue is also adjusted for
divested assets such as Techpool, Multilab, and TACHOSIL from Legacy Takeda
and XIIDRA from Legacy Shire.
*Contacts*
*Investor Relations* *Media Relations*
Takashi Okubo, +81-(0)3-3278-2306 Kazumi Kobayashi, +81
takeda.ir.contact@takeda.com (0)3-3278-2095
kazumi.kobayashi@takeda.com
*Important Notice*
For the purposes of this notice, "press release" means this document, any
oral presentation, any question and answer session and any written or oral
material discussed or distributed by Takeda Pharmaceutical Company Limited
("*Takeda* ") regarding this release. This press release (including any oral
briefing and any question-and-answer in connection with it) is not intended
to, and does not constitute, represent or form part of any offer, invitation
or solicitation of any offer to purchase, otherwise acquire, subscribe for,
exchange, sell or otherwise dispose of, any securities or the solicitation
of any vote or approval in any jurisdiction. No shares or other securities
are being offered to the public by means of this press release. No offering
of securities shall be made in the United States except pursuant to
registration under the U.S. Securities Act of 1933, as amended, or an
exemption therefrom. This press release is being given (together with any
further information which may be provided to the recipient) on the condition
that it is for use by the recipient for information purposes only (and not
for the evaluation of any investment, acquisition, disposal or any other
transaction). Any failure to comply with these restrictions may constitute a
violation of applicable securities laws.
The companies in which Takeda directly and indirectly owns investments are
separate entities. In this press release, "Takeda" is sometimes used for
convenience where references are made to Takeda and its subsidiaries in
general. Likewise, the words "we", "us" and "our" are also used to refer to
subsidiaries in general or to those who work for them. These expressions are
also used where no useful purpose is served by identifying the particular
company or companies.
*Forward-Looking Statements*
This press release and any materials distributed in connection with this
press release may contain forward-looking statements, beliefs or opinions
regarding Takeda's future business, future position and results of
operations, including estimates, forecasts, targets and plans for Takeda.
Without limitation, forward-looking statements often include words such as
"targets", "plans", "believes", "hopes", "continues", "expects", "aims",
"intends", "ensures", "will", "may", "should", "would", "could"
"anticipates", "estimates", "projects" or similar expressions or the
negative thereof. Forward-looking statements in this document are based on
Takeda's estimates and assumptions only as of the date hereof. 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 global business, including general
economic conditions in Japan and the United States; competitive pressures
and developments; changes to applicable laws and regulations; the success of
or failure of product development programs; decisions of regulatory
authorities and the timing thereof; fluctuations in interest and currency
exchange rates; claims or concerns regarding the safety or efficacy of
marketed products or product candidates; the timing and impact of
post-merger integration efforts with acquired companies; and the ability to
divest assets that are not core to Takeda's operations and the timing of any
such divestment(s), 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. For more
information on these and other factors which may affect Takeda's results,
performance, achievements, or financial position, see "Item 3. Key
Information-D. Risk Factors" in Takeda's most recent Annual Report on Form
20-F and Takeda's other reports filed with the U.S. Securities and Exchange
Commission, available on Takeda's website at:
https://www.takeda.com/investors/reports/sec-filings/ or at www.sec.gov.
Future results, performance, achievements or financial position of Takeda
could differ materially from those expressed in or implied by the
forward-looking statements. Persons receiving this press release should not
rely unduly on any forward-looking statements. Takeda undertakes no
obligation to update any of the forward-looking statements contained in this
press release or any other forward-looking statements it may make, except as
required by law or stock exchange rule. Past performance is not an indicator
of future results and the results of Takeda in this press release may not be
indicative of, and are not an estimate, forecast or projection of Takeda's
future results.
*Certain Non-IFRS Financial Measures*
This press release and materials distributed in connection with this press
release include certain IFRS financial measures not presented in accordance
with International Financial Reporting Standards ("IFRS"), such as
Underlying Revenue, Core Operating Profit, Underlying Core Operating Profit,
Core Net Profit, Underlying Core EPS, Net Debt, EBITDA, Adjusted EBITDA and
Free Cash Flow. Takeda's management evaluates results and makes operating
and investment decisions using both IFRS and non-IFRS measures included in
this press release. These non-IFRS measures exclude certain income, cost and
cash flow items which are included in, or are calculated differently from,
the most closely comparable measures presented in accordance with IFRS. By
including these non-IFRS measures, management intends to provide investors
with additional information to further analyze Takeda's performance, core
results and underlying trends. Takeda's non-IFRS measures are not prepared
in accordance with IFRS and such non-IFRS measures should be considered a
supplement to, and not a substitute for, measures prepared in accordance
with IFRS (which we sometimes refer to as "reported" measures). Investors
are encouraged to review the reconciliation of non-IFRS financial measures
to their most directly comparable IFRS measures.
Further information on certain of Takeda's Non-IFRS measures is posted on
Takeda's investor relations website at
https://www.takeda.com/investors/reports/quarterly-announcements/quarterly-a
nnouncements-2019/ [1]
*Medical information*
This press release 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 drugs including the ones under
development.
*Financial information*
Takeda's financial statements are prepared in accordance with International
Financial Reporting Standards ("IFRS"). The revenue of Shire plc ("Shire"),
which were presently, presented in accordance with accounting principles
generally accepted in the United States ("U.S. GAAP"), have been conformed
to IFRS, without material difference.
The Shire acquisition closed on January 8, 2019, and our consolidated
results for the fiscal year ended March 31, 2019 include Shire's results
from January 8, 2019 to March 31, 2019. References to "Legacy Takeda"
businesses are to our businesses held prior to our acquisition of Shire.
References to "Legacy Shire" businesses are to those businesses acquired
through the Shire acquisition.
This press release includes certain pro forma information giving effect to
the Shire acquisition as if it had occurred on April 1, 2018. This pro forma
information has not been prepared in accordance with Article 11 of
Regulation S-X. This pro forma information is presented for illustrative
purposes and is based on certain assumptions and judgments based on
information available to us as of the date hereof, which may not necessarily
have been applicable if the Shire acquisition had actually happened as of
April 1, 2018. Moreover, this pro forma information gives effect to certain
transactions and other events which are not directly attributable to the
Shire acquisition and/or which happened subsequently to the Shire
acquisition, such as divestitures and the effects of the purchase price
allocation for the Shire acquisition, and therefore may not accurately
reflect the effect on our financial condition and results of operations if
the Shire acquisition had actually been completed on April 1, 2018.
Therefore, undue reliance should not be placed on the pro forma information
included herein.
###
31-Oct-2019 CET/CEST The DGAP Distribution Services include Regulatory
Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de
900393 31-Oct-2019 CET/CEST
1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=21ffc4c92f20e61ec0d7b383d4b26b91&application_id=900393&site_id=vwd&application_name=news
(END) Dow Jones Newswires
October 31, 2019 02:30 ET (06:30 GMT)
© 2019 Dow Jones News
