Takeda Pharmaceutical Company Limited

Good day everyone and welcome to the conference call of Takeda Pharmaceutical Company Limited. During the presentation from the company, all the telephone lines are placed for listening mode only. And the question and answer session will be held after the presentation. Now we start the conference. Mr. Okubo, please go ahead.

Thank you very much for coming to join in FY 2020 Q1 earnings announcement. I would like to serve as the facilitator today of the Global IR Head. In this conference call, 1995 U.S. Declaration of Reform Act The forward-looking statements and related information will be discussed. And the results of the discussions may differ substantially from the actual results. And the latest Form 20-F and other ECC-submitted documents describe all those potential factors. And in page 2 of today's presentations, there are important notice describes It also refers to that page. And we have the presenters and the responders to your questions. So we have Christophe Weber, President and CEO, Chief Financial Officer, Costa Salvos, Avanti President, Andrew Plump, and Japan Pharma Business Unit President, Masato Iwasaki, and PDT Business Unit President Julie Kim. They are participating on this earnings call. First, CEO Christophe will discuss the overview of the results, and then Andrew will cover R&D situations, followed by Costa, CFO, covering the financial aspects. After those presentations, we will have questions and answers. Please be prepared with the presentation materials. Christophe.

Hello, Takeshi. Thank you, Takeshi. Hello, everyone. Great pleasure to be with you today. I will go to slide number four. which summarizes the situation and I would say that considering the COVID-19 circumstances, the first quarter of our fiscal year of 2020 has been positive. You will see that our revenue growth has been strong, especially our core business growing 6%, our key 14 global brands growing 20%, So I think it demonstrates that our overall portfolio is resilient to the coronavirus situation. Very strong growth also of our FDT business, growing plus 19%. On a record basis, we are declining, but that's totally explained by the divestment on one side and also the foreign exchange. So on the revenue side, for us it's positive. The only product which has been impacted by the coronavirus crisis has been Dijon, so we can come back to that later. On the R&D and pipeline development, we are progressing. We don't want to slow down our momentum, and we are planning to file seven NDA this year, which is quite remarkable, and you might have seen that we just got a breakthrough designation for Pevenegistat this week. and the last element which I think is very satisfying is that our margin for the quarter, our core passing profit margin has been 34.7. That translates into cash flow and we are able to further the leverage in spite of the ITR dividend payment. So, you know, very positive Q1 as far as we can see. We, at integration, We are continuing to progress. As you know, by December 2019, we are operating as one Takeda, so in terms of the people and the organization, we are operating as one company, which also allows us to demonstrate and to show that performance during Q1. But we are continuing to be an even better company. One example is that we are introducing an employee stock purchase plan First in the United States, Singapore, and Switzerland. There is one existing in Japan, and that would be something that we will extend in as many countries in the world as possible. On slide five, we are continuing to focus on three areas regarding the coronavirus situation, keeping our employees safe, and we have been extremely successful at that, maintaining our business continuity, and we didn't see any supply disruption because of the coronavirus, which is great. Our clinical trials are resuming as well for those who were on the slowdown path. So I think we are starting to see a return to normal in many areas. And we are committed to develop the potential therapies with our at-home in Dublin development. but also at looking at potential product in our pipeline which could have some efficacy against the coronavirus. I will finish the introduction with the next slide to update you on the e-carry situation. First, I will insist on the fact that quality has always been a priority for Takeda, so we have a very strong expertise and background in quality and so we know how to resolve this situation. We have a very clear path to resolve and to remediate the situation in Ikari. So we have submitted our reply to the FDA and we are working very intensively to remediate the situation as quickly as possible. At the same time, we really are aiming to limit Thank you very much. Thank you. Thank you very much. Thank you and I will pass now to Andy for the R&D presentation. Thank you very much and everybody. If you could please advance to the next slide.