DGAP-Ad-hoc: Takeda Pharmaceutical Company Limited / Key word(s): Forecast
Takeda Pharmaceutical Company Limited: Notice of the Revised Forecast of
Consolidated Financials for FY2019 (IFRS)
04-Feb-2020 / 07:00 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.
*Notice of the Revised Forecast of Consolidated Financials for FY2019 (IFRS)*
*Osaka, Japan, February 4, 2020 - *Takeda Pharmaceutical Company Limited
(TSE:4502/NYSE:TAK [1]) ("Takeda") announced today, 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 profi earning
Profit income t s
taxes attri per
butab share
le
to
owner
s of
the
Compa
ny
Previous 3,260,000 930,000 -110,000 -290,0 -273, -175.31
Forecast 00 000 yen
(A)*1
Revised 3,286,000 950,000 10,000 -140,0 -162, -104.03
Forecast (B) 00 000 yen
Discrepancy +26,000 +20,000 +120,000 +150,0 +111, ?
(B-A) 00 000
Change % +0.8% +2.2% ? ? ? ?
*1 Announced on October 31, 2019.
2. Reasons for Revision
The revised forecast in the table above reflects impacts from retrospective
adjustments to amounts recognized in association with business combination to
reflect the finalized purchase price allocation of the Shire acquisition. It
also includes the business momentum of Takeda's 14 global brands and improved
efficiency in operating expenses and cost synergies.
The revenue forecast has been increased by 26.0 billion JPY, or 0.8%, to
3,286.0 billion JPY, primarily due to business momentum led by Takeda's 14
global brands.
Core Operating Profit has been increased by 20.0 billion JPY, or 2.2%, to
950.0 billion JPY, reflecting the business momentum coupled with positive
impact from cost efficiencies and synergies.
The Operating Profit forecast has been increased by 120.0 billion JPY, to a
profit of 10.0 billion JPY. This reflects a 100.0 billion JPY increase
primarily attributable to the revised full year expense expectations
reflecting retrospective adjustments to amounts recognized in association with
the purchase price allocation for the Shire acquisition. Due to the
finalization of the purchase price allocation of the Shire acquisition,
adjustments have been made to reduce these expenses, such as cost of sales and
amortization of intangible assets, by a total of 118.8 billion JPY versus the
previous full year forecast. It also reflects the 20.0 billion JPY increase in
Core Operating Profit.
The net profit for the period attributable to owners of the Company has been
increased by 111.0 billion JPY, to a loss of 162.0 billion JPY, primarily due
to the factors explained above.
3. Upgrading Management Guidance
Takeda has upwardly revised its full-year Underlying Core EPS guidance to
reflect the business momentum.
Revised Guidance Revised Guidance
(October 31, 2019) (February 4, 2020)
Underlying Revenue Flat to slightly Flat to slightly
Growth*2 increasing increasing
Underlying Core High-twenties % High-twenties %
Operating Profit
Margin
Underlying Core EPS 370 - 390 yen 385 - 405 yen
Annual dividend per 180 yen 180 yen
share
*2 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/ [2]
or at www.sec.gov [3]. 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-ann
ouncements-2019/ [4]
*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.
###
04-Feb-2020 CET/CEST The DGAP Distribution Services include Regulatory
Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de
Language: English
Company: Takeda Pharmaceutical Company Limited
1-1, Nihonbashi-Honcho 2-Chrome, Chuo-ku
103-8668 Tokyo
Japan
Phone: +81-3-3278-2039
E-mail: hisashi.tokinoya@takeda.com
ISIN: JP3463000004, XS1843449981, XS1843450138, XS1843449049,
XS1843449809, XS1843449122, XS1843449395,
WKN: 853849
Listed: Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt,
Hamburg, Munich, Stuttgart, Tradegate Exchange
EQS News ID: 966135
End of Announcement DGAP News Service
966135 04-Feb-2020 CET/CEST
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February 04, 2020 01:00 ET (06:00 GMT)
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