Takeda Reports 1st Quarter 2016 Results with a Strong Start to the Year and Confidence in Management Guidance

Underlying revenue growth +9.1%, Underlying Core EPS +54.2%

OSAKA, Japan--(BUSINESS WIRE)--Takeda Pharmaceutical Company Limited (TOKYO:4502):

Strong first quarter results and confidence in Management Guidance
•	Underlying revenue grew +9.1%, driven by a +15.3% increase of Takeda's Growth Drivers (GI, Oncology, CNS and Emerging Markets). (Reported revenue declined -2.8% to 434.0 billion yen, due to divestments and currency impacts)
•	Underlying Core Earnings advanced +40.4% (reported operating profit was 152.9 billion yen, up from 49.6 billion yen in Q1, 2015)
•	Underlying Core Net Profit and EPS were up +54.2% (reported EPS increased to 127 yen, from 31 yen in Q1, 2015)
Takeda's Growth Drivers are accelerating
•	GI underlying revenue advanced +35.3%, driven by ENTYVIO(®) and TAKECAB(®)
•	Oncology underlying revenue grew +6.6% (+7.5% excluding VELCADE(®) royalties), driven by NINLARO(® )and ADCETRIS(®)
•	CNS underlying revenue of +31.5% was boosted by strong TRINTELLIX(®) performance
•	Emerging Markets underlying revenue growth was +3.9%
All regions are growing, driven by innovative products
•	Japan underlying revenue was up +9.7%, driven by TAKECAB(®), AZILVA(®) and LOTRIGA(®)
•	US underlying revenue growth of +14.9%, led by ENTYVIO(®), NINLARO(® )and TRINTELLIX(®)
•	Europe and Canada underlying revenue grew +6.2%, reflecting ENTYVIO(®) and ADCETRIS(®)
•	Emerging Markets underlying revenue was up +3.9%, reflecting growth in China (+12.6%), Russia (+9.5%) and Brazil (+1.0%)
Full-year forecast (reported base) has been maintained. R&D transformation does not affect our FY2016 guidance or dividend payment (see separate press release for more details)

Christophe Weber, President and Chief Executive Officer of Takeda, commented:
"Takeda had a strong start to FY2016, as we focus on executing our strategic roadmap. It is promising that our growth driver products are contributing strongly to each region's underlying revenue growth, especially ENTYVIO^®, NINLARO^®, ADCETRIS^®, TRINTELLIX^®, and TAKECAB^®. Takeda will refocus research & development on targeted therapeutic areas - Oncology, Gastroenterology (GI) and Central Nervous System (CNS), plus Vaccines, and concentrate its R&D activities in Japan and the U.S. to build a world-leading R&D organization and pipeline. I am confident that these achievements and initiatives will result in Takeda's sustainable future growth as a leading, global innovative pharmaceutical company."

Reported Results for	1Q (April – June) of FY2016
Reported base	FY 2015	FY 2016	Growth
(billion yen)	Q1	Q1		Underlying^2
Revenue	446.3	434.0	-2.8%	+9.1%
Core Earnings^1	83.7	77.1	-7.9%	+40.4%
Operating Profit	49.6	152.9	+208.6%	N/A
Net Profit^3	24.6	99.5	+304.9%	N/A
EPS	31 yen	127 yen	+306.5%	N/A
Core EPS	65 yen	71 yen	+8.7%	+54.2%

^1	Core Earnings is calculated by taking reported gross profit and deducting SG&A expenses and R&D expenses.
	In addition, certain other items that are significant in value and non-recurring or non-core in nature may also be adjusted.
^2	"Underlying growth", comparing two periods of financial results under a common basis, shows the real performance of the business. Takeda adopts "Underlying Growth" of revenue, Core Earnings and Core EPS as its indicators for management guidance. It excludes the impact of foreign exchange and divestments.
^3	Attributable to the owners of the company

Takeda maintains full-year Management Guidance and reported base forecast for FY2016:

FY2016	Management Guidance
	Underlying Revenue	Mid-single digit growth (%)
	Underlying Core Earnings	Low- to mid-teen growth (%)
	Underlying Core EPS	Low- to mid-teen growth (%)
	Annual Dividend per Share	180 yen

Reported	Base Forecast for FY2016
		(billion yen^1)
	Revenue		1,720.0
	R&D Expenses		325.0
	Operating Profit		135.0
	Net Profit^2		88.0
	EPS		112 yen

¹ The exchange rate assumptions for FY2016: 1 US$=110 yen, 1 euro=125 yen
² Attributable to the owners of the company

For more details on Takeda’s FY2016 Q1 results and other financial information please visit http://www.takeda.com/investor-information/results/

About Takeda Pharmaceutical Company Limited
Takeda Pharmaceutical Company Limited is a global, research and development-driven pharmaceutical company committed to bringing better health and a brighter future to patients by translating science into life-changing medicines. Takeda focuses its R&D efforts on oncology, gastroenterology and central nervous system therapeutic areas plus vaccines. Takeda conducts R&D both internally and with partners to stay at the leading edge of innovation. New innovative products, especially in oncology and gastroenterology, as well as our presence in Emerging Markets, fuel the growth of Takeda. More than 30,000 Takeda employees are committed to improving quality of life for patients, working with our partners in health care in more than 70 countries. For more information, visit http://www.takeda.com/news.