2024
AnnualIntegrated
ReportFiscal Year Ended March 31, 2024

AP P E N D I X

2I N T R OD U C TI O N
A message from our President and Chief Executive Officer
A message from our Chief Global Corporate Affairs
and Sustainability Officer

Our foundation for delivering long-term value

9

COR P OR ATE P H I LOS O P H Y
Our value creation
Corporate philosophy metrics
Commitment to the patient

IN TR OD U C T IO N

CORP ORAT E P HI LOS OP HY

VALU E C RE AT I ON

Commitment to people

2

Commitment to the planet
Unleash the power of data and digital

26

VA LUE CR E ATI O N
A Q&A on sustainable value creation in PDT business
A patient-centric approach to drug development
Creating positive impact for health care and climate resilience
Easing the burden of Inflammatory Bowel Disease (IBD)
70 years of serving community and global needs

49
54

F I N A N CI A L P E R FO R M A N C E
Takeda’s financial performance fiscal year 2023

A P P EN DI X
Legal disclaimer
Financial definitions

Takeda is a global values-based,
research and development(R&D)‑driven biopharmaceuticalcompany committed toachieving our corporate purpose:
better health for people and abrighter future for the world.
We strive to deliver truly
transformative treatments,
significantly increasing the valuethat we bring to society.

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Takeda at a glanceAP P E N D I X

A message from our
President and CEO

FINANC IAL PERFORMANC E
VALU E C RE AT I ON
CORP ORAT E P HI LOS OP HY

Our sustainability approach is centeredon three imperatives: Patient, People
and Planet, enabled by data, digitaland technology, including artificial
intelligence (AI), and in our 2024 Annual
Integrated Report, we are pleased
to share the progress we have madeagainst each of these imperatives.

CHR I STO P H E
WEBERIN TR OD U C T IO N

President and Chief
Executive Officer

3

In this year’s report, we highlighthow, together with our partners, weare tackling meaningful challenges– from advancing equitable accessto health care to protecting
people and communities from theimpacts of climate change.
We celebrate key milestones including
the approval and launch of three newtherapies and recognize the efforts
it took to bring them to patients. We
reflect on our progress one year since
the introduction of QDENGA® ▼ (Dengue

tetravalent vaccine [live, attenuated])and 10 years since the introductionof ENTYVIO™ (vedolizumab). And we
explain how our pipeline has evolved to
now include six new molecular entities inPhase 3.
We also provide examples fromour Vienna and Los Angeles sites
to illustrate how we can limit our
impact on the planet while investingin our manufacturing network.
In each section there are stories of
how we are accelerating our progress
through the use of data, digital andtechnology and strengthening theskills of our people to create internal
digital leaders. This is our commitment
to Takeda colleagues to ensure we allremain competitive in a fast-moving
environment. This is also how we willcontinue to create the best diverse
and inclusive environment, in which
everyone can contribute and thrive.
I am proud of the continued progress
we have made this year towards ourambition to be the most trusted,science-driven, digital biopharmaceuticalcompany and to deliver on our purposeof better health for people and abrighter future for the world. I lookforward to building on this momentum
together in 2024 and beyond.

Christophe Weber
President and Chief Executive Officer

TAKEDA 2 024 ANNUAL I NT E GRAT E D RE P ORT

D e ar st ake h o lder s,
One trait that defines Takeda is ourvalues. We feel a deep responsibility
to uphold the company’s hard-earned
reputation and drive sustainablebusiness to deliver on our vision to
discover and deliver life-transforming
treatments. Every decision we makeis guided by our values of Takeda-ism,
which incorporates Integrity, Fairness,
Honesty, and Perseverance, with
Integrity at the core. These values arebrought to life through actions basedon Patient-Trust-Reputation-Business:doing the right thing for Patients,
reinforcing Trust and our Reputation anddeveloping our Business, in that order.

AP P E N D I X
FINANC IAL PERFORMANC E
VALU E C RE AT I ON
CORP ORAT E P HI LOS OP HY
IN TR OD U C T IO N

S ustain ab ility at Ta ke d a isabout how we run our business;it’s upholding our corporate
philosophy for the benefit of patients,
people and the planet; fulfilling
our commitment to stakeholders;and ultimately contributing to thebetterment of society.
All Takeda employees across theworld share this philosophy and givelife to it through day-to-day actions.
As a result, we continue to produce
tangible results that are powering ourcore business in a sustainable way.
In 2023, as our teams worked tooperationalize sustainability acrossthe organization, it was a privilege
to visit some of our global sites
to witness these actions taking
place. By utilizing data, digital andtechnology and ingenuity our people
are bringing value through the lensof sustainability.
Responsible management offinite resources is fundamental
for continuously delivering ourlife-transforming treatments forpatients and communities in need.

TA KA KO O H YA B U
Chief Global Corporate Affairs
and Sustainability Officer

While taking part in the PlasmaDerived Therapies (PDT) team’s
town hall meeting in Septemberin the United States, it was apleasure to learn firsthand how
they are taking action to overcome
the challenge of a limited plasma
supply. One way is by reducing thenecessary dosage of medicines
through innovative technologies.
This not only would help us treat
more people and alleviate individual
patient treatment burdens, but could
also lead to reducing our costs andpotential increased investment ininnovation — ​efforts that align withour commitment to patients.
Throughout the town hall meeting,the true passion of the PDT teamwas evident. The recent approval of
HYQVIA® (Immune Globulin Infusion
10% (Human) with Recombinant
Human Hyaluronidase) in the UnitedStates1 and European Union (EU)2 andGAMMAGARD LIQUID® in the UnitedStates,3 are tangible examples ofinnovation resulting from a patientcentric approach, and the seeds of thissuccess can be indirectly traced backto our colleagues working hard in R&D
to improve our therapies for patients.
This year, there was a noticeable shift
in mindset as discussions increasingly
centered on the undeniable link
between human health and the healthof our planet. This interdependence
emerged as a prominent themeat COP28, where the inaugural
Health Day was a pivotal discussion
platform. During the event, there was

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4

A message from our Chief
Global Corporate Affairs andSustainability Officer

AP P E N D I X
FINANC IAL PERFORMANC E
VALU E C RE AT I ON
CORP ORAT E P HI LOS OP HY
IN TR OD U C T IO N

Developing and securing a sustainablesupply of treatments, especiallythose directly connected to theenvironmental challenges we areexperiencing, is one such tangible
way we are working to drive suchchange. Takeda’s QDENGA® (Dengue
tetravalent vaccine [live, attenuated])
vaccine for dengue fever is a casein point. Dengue is the world’s mostprevalent mosquito-borne viraldisease,4 and cases are rising as adirect result of climate change. It isimperative that we are investing andworking with local partners to ensurethat the vaccine reaches vulnerable
communities as quickly and reliably
as possible.
To ensure we are delivering on
our commitment to patients, wemust continue exploring innovative
processes that guarantee quality,
safety and a stable supply of our
products. I was impressed to witness
teams at sites such as Vienna, Austria,
and Neuchatel, Switzerland — ​where
our employees are actively engaged
in continuous improvement efforts in
automation and robotics — ​dedicatedto this task.
As highlighted above, shared actions
to advance sustainability are simply
not possible without committed
employees who are the driving force
behind our core business. Therefore,

innovation and improve outcomesfor patients, people and society.
As we look to the future, ourrecently launched MIRAI5 Creator
initiative in Japan represents a
powerful embodiment of ourcommitment to long-term value
creation. Enthusiastic employees
across Takeda Japan’s value chain
have voluntarily stepped forward tochampion sustainability, showcasing
their passion and leadership andcollaborating to help change internal
processes and mindsets to develop
value for patients and create abetter working environment for all.

“All Takeda employees
across the world share thisphilosophy and give life to it
through day-to-day actions.
As a result, we continue to
produce tangible resultsthat are powering our corebusiness in a sustainable way.”

supporting their diverse needs isessential to our progress. Duringvisits to our sites in Vienna and Los
Angeles, the teams shared with me
how they are accelerating diversity,
equity and inclusion (DE&I) throughlocal employee resource groups
that support gender parity, LGBTQ+
allyship and inclusion for people
living with disabilities. At Takeda, weare a strong advocate for programs
such as these because they help
us create the exceptional people
experience necessary to attract andretain diverse talent. We also believethat diverse pools of talent fuel1 As a maintenance therapy in adults with chronic inflammatory demyelinating polyneuropathy (CIDP).
2 As a maintenance therapy for patients of all ages with CIDP.
3 As an intravenous immunoglobulin therapy to improve neuromuscular disability and impairment in adults with CIDP.
4 World Health Organization fact sheet. Vector-borne diseases.
5 MIRAI means “future” in Japanese.

Takeda’s sustainability journey isan evolution of who we are, andmy visit to Takeda China in Beijing
in early 2023 reinforced this point.
After discussing sustainability at
Takeda, a representative from apatient advocacy group shared withme how understanding Takeda’s
approach helped her connect thedots regarding Takeda’s patientcentric work. Indeed, this work is
not an “add-on” but rather whatmakes Takeda the company andculture we are and have been
for more than 240 years.
As we continue to navigate complex
global challenges, we remaincommitted to ensuring that Takeda
continues to lead with passion,
innovation and a profound senseof responsibility, delivering on ourbusiness commitments and making
a positive impact on the world.

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5

increasing acknowledgment of thehealth-related obstacles the world
faces and a growing understandingof the urgent need to implementa tangible response that sparks
substantial and meaningful change.

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VALU E C RE AT I ON

FOUND ED

1781

Tokyo

Cambridge

Japan

Massachusetts, USA

Osaka, JapanIN TR OD U C T IO N

O UR AREAS O F FO CUS

Gastrointestinaland Inflammation

Rare Diseases

Plasma-Derived
Therapies

Oncology

Neuroscience

Vaccines

COUNTRI ES A N D
REGION S: AP P R OX I N

80

MA N UFACT UR I N G
SIT ESE M P LOY E E S 2

25+

F Y 2 02 3 G LO B A L R E V E NUE2

approx.

29%

50

1 Convenience translations have been made at an exchange rate of 1USD = 151.22 JPY.
2 All numbers as of end of June 2024, other than fiscal year 2023 global revenue, R&D
spend and employees.

approx.

44%

23%

$28.2

thousandbillion1

11%
United States
Japan
Europe & Canada
Growth & Emerging Markets

RESEARCH AND PART NERSHI PS

$4.8

15%

15%

12%

6

G LO B A L H U B

HEA D Q UA RTE R S

billion1 in
R&D spend2

51%

180+
partnerships
to help us bringinnovation topatients~25

new molecular
entity clinicalstage assets

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Takeda at a glanceAP P E N D I X
FINANC IAL PERFORMANC E
VALU E C RE AT I ON
CORP ORAT E P HI LOS OP HY
IN TR OD U C T IO N

A philosophy passed down
through generations
Our history began in 1781 withthe sale of traditional Japaneseand Chinese medicines in Japan,
guided by the principle of SANPOYOSHI. A principle first practiced
by a prominent group of Japanesemerchants, it means good for theseller, good for the buyer and goodfor society. Our successive CEOs haveremained true to SANPO-YOSHI in
both word and action for more than
240 years while articulating their own
way to bring it to life.

Patient, People and Planet:
Imperatives to bring ourcorporate philosophy to life
Today, Takeda’s corporate philosophy
articulates why we exist (ourpurpose), where we are going (ourvision) and how we deliver on our
vision (our values). Our corporate
philosophy imperatives — ​Patient,
People and Planet — i​dentify where
Takeda must invest to deliver on our
purpose. They reflect input from an
Environment, Social and Governance(ESG) materiality assessment ofstrategically important nonfinancial
issues to our company andstakeholders.
In fiscal year 2022, we evolved theseimperatives to create a simplified
sustainability framework andsustainability focus areas. We aim
to create long-term value over timeby aligning our actions with theseimperatives and sustainability focus
areas. We measure our progress
through our corporate philosophy
metrics, disclosing results annually.
Learn more about our corporate
philosophy metrics on page 11.

Living our values every day
We are guided by our values ofTakeda-ism, which incorporate
Integrity, Fairness, Honesty andPerseverance, with Integrity at thecore. They are brought to life throughactions based on Patient-TrustReputation-Business, in that order.
Every employee, wherever they are in
the organization, has a responsibility
to meet the highest standards of
ethical behavior at all times because
everything we do impacts the mostvital aspect of people’s lives — ​their health. Read more about ourprograms that reinforce our values toshape our culture here.
For more information
Global Code of Conduct
Global Anti-Corruption Policy
Total Tax Contribution
Human Rights Commitment
Position papers on:
Public Policy Engagement
Use of Artificial Intelligence
Biotechnology
Falsified Medical Products
Taxation

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Our foundation fordelivering long-term value

VALU E C RE AT I ON
CORP ORAT E P HI LOS OP HY
IN TR OD U C T IO N

8

Our corporate governance approachcreates the foundation for valuesbased decision-making at every level,in every country in which we operate.
It starts with our leadership — o​ ur
Board of Directors (Board) and the
Takeda Executive Team (TET). See
our Corporate Governance Structure.
As of June 2024, Takeda has 14
directors overseeing the company’s
management on a global scale. To
ensure independence and objectivity,
11 of our directors are independent
external directors, including thechair of the Board meeting. The
Nomination and Compensationcommittees, which Takeda
established voluntarily to achieve its
governance goals, consist entirely of
independent external directors.
In nominating candidates for directorroles, the Board considers diverse
criteria, including gender, age, work
experience, race, ethnicity andcultural background. As of June
2024, women represent more than
20 percent of Board members. In
addition, current directors represent
a broad array of skills in areas such as
global business and strategy; scienceand medicine; legal, regulation andpublic policy; corporate governanceand sustainability; finance andaccounting; health care; data anddigital; and management, leadershipand human capital. See our Board
skills matrix.

Takeda’s director compensation
is designed to attract, retain andmotivate managerial talent to realize
our vision, enhance corporate value
by optimizing the company’s midand long-term performance, andsupport a strong alignment withshareholders. Please refer to our
Directors’ Compensation Policy forfurther details.
Takeda’s executive compensation
structure reflects our position as aleading values-based, R&D-driven
biopharmaceutical company. Our
executive compensation programs
are designed to be globallycompetitive and performanceoriented, while also considering local
market factors. We closely link pay
with performance and long-term
shareholder value creation, while
minimizing excessive risk-taking.
Please refer to Takeda’s Executive
Compensation Overview forfurther details.
For more information
Corporate Governance
Our Leadership
Board and Committee Charters

The TET includes 17 members
diverse in nationality (ninecountries), age (40s–60s) andgender (nine women and eightmen). Women make up 53% of
the TET.

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AP P E N D I XValues-based governance

RESPECT I NG HUM AN RI GHTS
Our commitment to respecting internationally recognizedhuman rights is an important part of our corporate
philosophy and we do so within every aspect of ourbusiness, across our supply chains and the communities
where we operate. Through a comprehensive humanrights impact assessment, we identified our 11 most salient
human rights impacts. For more information on our Human
Rights program including our most salient impacts, please
visit our website.

I N TR OD U C TI O N

CO RPO RAT E P HI LOS OP H Y
VALU E C RE AT I ON

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9Corporate
Philosophy

AP P E N D I X

Better health for people, brighter future for the world.

VALUES

Integrity, Fairness, Honesty and Perseverance, with Integrity at the core. They are brought to life through actions based on Patient-Trust-Reputation-Business, in that order.

VISION

Discover and deliver life-transforming treatments, guided by our commitment to patients, our people and the planet.

VALU E C RE AT I ON

P URP OSE

Our strategic imperatives

CO RPO RAT E P HI LOS OP H Y

PATIENT

Deliver innovative life-transforming medicines and vaccines
Provide health beneﬁts that are valued by patients and society
Accelerate global, equitable access to medicines and vaccines

P EOPLE

Develop talent and invest in lifelong learning
Advance diversity, equity and inclusion

I N TR OD U C TI O NCreate a culture of well-being

P LA NET

Achieve net-zero ambition

Pipelinemilestone

Uninterrupted
supplyAccess to
medicine
in LMICs

Clinicaltrial results

Global access toGrowth & Launch
products

Manufacturing
quality

Engaging
employees

Employeewell-being

Diversity, Equity
and Inclusion

Scope 1 and 2
GHG emissions

Engaging suppliers
toward scope 3
GHG reduction

Diverting wastefrom landﬁll

Sustainable
packagingConserving
freshwater

Up-skillingin technology

Conserve natural resources
Design with sustainability in mind

10

Measured by our corporate philosophy metrics

Unleash the power of data and digital

AP P E N D I X

O ur focu s on long-term value creation revolves around our corporate
philosophy. We invest in our corporate philosophy imperatives to deliver on our
purpose and measure our progress using metrics aligned with this philosophy.

Growth and Launch ProductIncremental Core Revenue

Guide us to create long-term value
with sustained business growth

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Our value creation

CO R P O R AT E P H I LO S O P H Y M E T R I C S¹ *M E TRI CS

FY 2022

FY 2023

18

29

100%

100%

Maintaining Uninterrupted Supply

99.3%

99.1%

Upholding Manufacturing Quality

100%

100%

ALUNBRIG 9
TAKHZYRO 9
ALOFISEL 4
EXTIVITY 2
LIVTENCITY 2

TAKHZYRO 9
ALOFISEL 4
LIVTENCITY 6

1,366

1,682

79

77

68

67

Male 48.0%
Female 51.8%
Other/Non-Binary 0.2%

Male 48%
Female 52%
Other/Non-Binary 0.1%

37%

49%

34%

53%

45%

56%

Diverting Waste from Landfill

78%

78%

Conserving Freshwater

7.9%

4.9%

Making Paper and Paperboard Packaging from Sustainable
Forest Certified or Recycled Content4

42%

53%

96.1%

79.5%

Achieving Pipeline Milestones# of pivotal study starts and approvals

PATIEN T

We put patients at the center of everything we do. Our long-term
success is based on discovering, developing and delivering lifetransforming, safe and affordable medicines and vaccines thatenhance the well-being of patients, communities and countries.
We create a competitive advantage with our ability to bringinnovative products to market in a timely fashion. Building andmaintaining the trust of stakeholders — ​including health care
professionals, customers, regulators and patients — ​is also crucial
for our sustainable business. To achieve this, we prioritize making
our products affordable and accessible through reimbursement
and patient assistance programs (PAPs). Additionally, ensuringtransparency through disclosures of clinical trial results and quality
inspection results and securing uninterrupted supply plays a vitalrole.

Disclosing Clinical Trial Results% of achievement for timely disclosure of clinical trial summary results on
public registries% of order lines dispatched on-time-in-full% of health authority inspections with no regulatory compliance actions

Global Access to Growth & Launch Products2# of key countries where patients have access to the product throughreimbursement

Access to Medicines Programs in Low- and Middle-Income
Countries and Countries with Evolving Health Care Systems

I N TR OD U C TI O N

CO RPO RAT E P HI LOS OP H Y

VALU E C RE AT I ON

# of newly enrolled patients in Takeda’s affordability-based PAPs

P EOP LE

Highly skilled, motivated and engaged employees are key toachieving our purpose of better health for people and a brighter
future for the world. Creating a workplace that invests in thewell-being of employees while respecting each individual for who
they are helps us attract and retain top talent. By building our
employees’ professional skills in data, digital and technology, we
accelerate innovation and improve outcomes for patients andsociety. By bringing together people with diverse backgrounds,
cultures, identities and experiences we can incorporate a wide
range of stakeholder voices in our decision-making. This helps
ensure our science is optimized to better meet patient needs.

Engaging Employees

Average score on a 1–100 scale to questions regarding engagement in theannual Employee Experience Survey3

Improving Employee Well-being

Average score on a 1–100 scale to questions regarding well-being in the annual
Employee Experience Survey3

Embracing DE&I (Gender Representation)
Enterprise-wide gender breakdown

Upskilling Employees in Progressive Technologies

Cumulative % of employees who have taken at least one data, digital andtechnology training course since the first quarter of fiscal year 2020

Reducing Scope 1 & 2 GHG Emissions% reduction in Scope 1 & 2 GHG emissions below 2016 baseline

P LANETAs a global biopharmaceutical company, Takeda recognizes theclear link between human health and environmental health. The
impacts of global issues such as climate change and biodiversity
loss, present not only a threat to public health but to business
operations as well. Guided by ambitious targets across climatechange and nature, we are staying true to our values andcommitment to put the patient first by integrating environmental
sustainability considerations into every facet of our operations andacross our value chain.

Engaging Suppliers toward Scope 3 GHG Reduction% of Takeda’s Scope 3 GHG emissions that are from suppliers who havecommitted to setting science-based climate targets, aligning with SBTistandards% of waste diverted from landfills% of reduction in freshwater below 2019 baseline% of the company’s secondary and tertiary packaging paper/paperboard by
weight that is recycled content or sustainable forest certified

BUSINESS

The business growth allows us to deliver long-term value to thepatients and communities we serve. Growth and Launch Products5
are the key driver of future revenue growth, and a key indicator of ourability to successfully launch new products from our pipeline.

Growth and Launch Product Incremental Core Revenue% of year-over-year core revenue growth in Growth and Launch Products vs.
target1 Fiscal year 2023 results have been assured by KPMG AZSA Sustainability Co., Ltd. (KPMG). Details on assurance methodology are available in the 2024 ESG Databook. 2 We scope in our growth and launch products which had been launched within 5 years as of the beginning fiscal year 2023.
3 Our measure for these metrics changed from “% favorable responses to questions regarding engagement in the Annual Employee Experience Survey” to the current measure to fully incorporate the entire range of survey responses. Results for fiscal year 2022 have been recalculated based on thecurrent measure. 4 The reporting period for this metric is fiscal year 2022. The data collection process for fiscal year 2023 will be concluded in fall of 2024 and the metric will be reported in the following year. 5 Learn more about our Growth and Launch Products on page 51.
* Our latest Annual Securities Report also presents our corporate philosophy metrics as a part of Corporate Sustainability Policies and Initiatives.

11

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W HY I T M AT T ER SVALU E C RE AT I ON
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I N T RODU C T I ON

12

Helping create equitable
access to health careA s a val ues-based global
company that has been putting
patients first for more than 240 years,
Takeda aims to accelerate equitable
access to our treatments andvaccines. This begins with helping
create equitable health care for all.
We believe that efforts to improvehealth equity and broaden accessmust be based on an understandingof the different situations that thosein need and health care professionals
face in each community. The reasonsfor lack of access to health careand health inequities are many andvaried, stemming from personal
circumstances, health infrastructure,
cultural factors and economic
conditions within communities. This
makes efforts to improve accessworldwide a complex, long-term
challenge. For this reason, we takethoughtful, integrated and diversified
approaches to address these gaps,
as the examples on the following
pages illustrate.

SPRI NGER NAT UREPART NERSHI P
As a signatory to the Global
Health Equity Network Zero
Health Gaps Pledge, we haveagreed to take 10 actions tofurther embed health equity into
our business strategy, operations
and investments. Our multi-year
partnership with global publisher
Springer Nature is one exampleof how we are advancing thispledge. In 2023, we collaborated
with Springer Nature on theinaugural Nature Inclusive HealthResearch Awards held in São
Paulo, Brazil. Award submissions
included research conductedin more than 110 countries andhighlighted the progress being
made to combat inequities
in local communities. Learn
more here.

Learn how we embed health equityfrom the very beginning of our efforts totranslate science into highly innovative, lifetransforming medicines through R&D.

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CO MM I TMENT TO T HE PAT I ENTAP P E N D I X
FINANC IAL PERFORMANC E
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CO RPO RAT E P HI LOS OP H Y
I N TR OD U C TI O NWhat is required to address healthinequity?
We believe addressing healthequity is both a moral imperative
and a critical business strategy.
We embed a health equity mindset
into our business — ​from R&D
and manufacturing to access andcorporate social responsibility
programs, as well as partnerships. Of
course, the causes of health inequities
differ country to country. That’s why,at Takeda, we take the approach ofworking directly with communities.
What is the role of community
partners?
Many people are surprised when
they learn that 80% of what impacts
our health happens outside of thedoctor’s office — ​from educationand employment opportunities toaccess to housing, transportationand nutritious food. These social

J UL I E K I M
President,
U.S. Business Unit andU.S. Country Headdeterminants of health are highly
personal, complex, sensitive andmulti-faceted.
That’s why our starting point forcommunity engagement is listening
to communities to understand their
lived experiences and identify theirneeds. Then, we work together with adiverse network of community-based
public and private partners — ​nonprofits, academic organizations,industry, local governments andprofessional associations — ​to help
build sustainable solutions that canbe implemented locally.
For example, as of 2023, we haveworked with Remote Area Medical®,as part of our ongoing collaboration,
to support over 39,000 people inunder-resourced communities in the
United States with access to freequality medical, dental and visioncare through 200 of its pop-up
clinics. Another is in Massachusetts
where we joined the Health Equity
Compact (HEC), a coalition of healthcare leaders of color. HEC addresses
barriers to equitable health outcomes
faced by communities of colorand immigrant populations acrossthe states.
A key aspect of our health equity
strategy is supporting the training
and deployment of community healthworkers (CHWs). CHWs are trusted
members of the community who canhelp facilitate access to health careand services and improve the quality
and cultural competence of service
delivery in underserved communities.

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Like in other countries, the U.S. healthcare landscape is complex, and people
in many communities face deeply rooted
challenges that can impede both accessto care and quality health outcomes.
Here, Julie Kim, president, U.S. Business
Unit and U.S. country head, discusses
how Takeda is moving from commitment
to action to achieve equitable healthoutcomes in our largest market.

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How do you connect Takeda’s efforts
to create a more inclusive workplacewith your efforts to advance healthequity within communities?
Equity starts with our ability tocreate a workforce of employeeswith different lived experiences fromdifferent cultures and backgrounds
and bring them together in aworkplace where they can feel a senseof belonging. Having a wider variety ofperspectives helps us think differently,
better understand the patients weserve and, ultimately, create solutions
that can meet patient needs.
One example is our DE&I Clinical
Trial Advisory Board. It includes 100
employees from different countries,
backgrounds and functions. They
review and provide feedback oncommunity education and patient
recruitment and retention materials
for clinical trials to help ensure thematerials are culturally appropriate.
While this board does not replace
traditional patient engagement
activities, it helps us learn more
about the communities we serve from
employees who are also part of thosecommunities. (Hear from some of ourAdvisory Board members.)

What role can other organizations playin advancing health equity?
Working to advance health equity is nota solo venture — ​no single organization
can do this work alone. We must all
work together and bring the rightvoices to the table. Whether you are aconvenor, a subject matter expert or acommunity advocate who understands
the challenges faced in your community,
everyone has a role to play.
One example is our longstanding
collaboration with Partners In Health(PIH),1 a Boston-based international
nonprofit. We have helped support
a global network of 25 laboratories
that provide screening and diagnostic
services to over 8 million people incommunity settings. In 2023, we
expanded our partnership to include
work with PIH-US supporting theimplementation of health equity
communities of practice and building
the capacity of community healthworkers to address social determinantsof health and access to care inunderserved communities acrossMassachusetts.
What does success look like?
Our vision is a world where everyone
can attain their full potential for healthand well-being. Achieving this will taketime, resources and collaboration. We’rein this for the long run. I am proud of
where Takeda is on this journey, andexcited about the impact we will have.
Read more about our activities forcommunities in the United States here.

1 Takeda also has a global partnership with PIH through our Global CSR Program.

14

S U P P O RTI N G ACCESS TO CARE I N REM OT E AREAS I N JAPANOne in 10 people in Japan are aged
80 or older and nearly 30% are aged
65 or older. For elderly residents
living outside cities, access to healthcare — ​particularly to specialists — ​canbe difficult. To address the challenge,
public and private sector organizations
are coming together.
In Hokkaido, the country’s
northernmost prefecture, the local
government is working to introduce
a telemedicine system to connect
medical specialists in cities with
doctors in remote areas. This includes
doctors from Sapporo Medical
University who specialize in thetreatment of IBD. Takeda is supporting
the initiative by informing doctors
in rural areas of Hokkaido about the
program and connecting them with thelocal government to learn more.

“In Japan’s healthcare landscape, we
are working toovercome barriers
to equity to accelerate
the path to universal
wellness. The barriers,
though formidable,
serve as catalysts fortransformative change,
ensuring every
individual has accessto wellness with
dignity and equality.”
ASUKA M I YABASHI RA
President, Japan Pharma Business Unit andJapan Country Head

TAKEDA 2 024 ANNUAL I NT E GRAT E D RE P ORTI N TR OD U C TI O NThrough our support of the National
Urban League and National Minority
Quality Forum, historic civil rights
and advocacy organizations, weare helping to deploy a communitybased health workforce across theUnited States to help historicallyunderserved communities access thecare they need.

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Our philanthropic Global CSR
Program, selected through anannual employee vote, works withorganizations to with organizations to
expand access to quality health carefor people in low- and middle-income
countries. We encourage innovation
beyond commercial products insupport of sustainable health systems
for all people, everywhere.

15

One of the examples is our five-year
funding commitment to Society for
Family Health Rwanda announced
in 2023 to support the upgrade of
20 community health posts into
financially sustainable models.
Located in rural areas, the clinics will
expand access to people in hard-toreach communities.
Learn more on our website.

O UR GLO B AL CSR I M PACT
Active countries

93

Total donation amount committed¥24.2 billion
Number of people directly impacted

13.68 million

TAKEDA 2 024 ANNUAL I NT E GRAT E D RE P ORTStrengthening healthsystems through our Global
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I N TR OD U C TI O N

16Embracing ourunique culture
We st r i ve to c reate an exceptional
people experience through our culturethat fosters well-being, an inclusive
workplace and lifelong learning.

Inspiring lifelong learning
We realize that every employee’s
learning journey is unique. Throughtools, resources and support, we help
employees develop customized waysof learning what they need and wantto learn, when and how they want tolearn it. This includes learning througheducation, mentorships and on-the-job
development opportunities.
Supporting leadership development
We invest in our senior leaders andpeople to help them build the inclusive
skills, capabilities and experiences
they need to grow and thrive. ​In
2023, we designed a senior leader
development portfolio for our top
approximately 200 leaders and theirsuccessors including solutions forassessment, selection, onboarding anddevelopment. For successors, we havedesigned the Takeda Aspire Program,a 16-month cohort-based development
journey for employees who we believe
have the potential and who aspire to
be senior leaders.

B UI LD I NG NEW SKI LLS
T HRO UGH EXPERI ENCE
One of the ways we help
employees learn is throughreal-life experience.
Since 2021, more than 50 of our
R&D Pharmaceutical Sciences
employees have participated in
an on-the-job training program.
For six to 12 months, participants
contribute to projects led bysenior members across thedepartment, gaining additional
skills in the process — ​fromscientific training on genetherapies to critical project
management expertise.
“The program creates a space
to work outside of your comfort
zone, which is a great way to learn
from others and grow your own
skills and understanding,” said
Anastasia Kharlamova, associate
director, Analytical Development.

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share the joy of learning
Our Japan commercial organization
Human Resources (HR) team hada challenge. They were looking for
creative ways to drive Takeda’s
culture of lifelong learning andcareer ownership in the Japan
Pharma Business Unit (JPBU).
During a brainstorming session they
got the idea to approach the issue
from the perspective of employees,
by creating a cadre of learningambassadors to raise awareness of
self-directed learning.
Soon, there were 12 ambassadors
providing employees with usefullearning-related content. This
included more than nine articles
driving employees to the Bloom
Learning Experience Platform (LXP).
Their results were exponential; within
six months, the number of employees
from JPBU using the Bloom LXP
increased 300%.

Using the power oftechnology to enable career
growthWe empower our employees todefine and own their career withthe support of their people leader,
peers and mentors along the way. In
January 2024, we launched Career
Navigator, a platform enabled byartificial intelligence (AI), to allow all
employees to explore development
opportunities and grow their careers
within Takeda.1
Based on employee input about
their career goals and interests, thetool provides recommendations forinternal job opportunities within
Takeda; helps identify learning
opportunities to address any skill
gaps; and connects employees tomentors to facilitate growth. The
more the employee uses the platform,
the more the platform learns
about them and the more tailored
recommendations it provides.

“I believe that fostering a culture thatfinds meaning in learning starts at
the level of the individual,” said oneof the learning ambassadors. “If each
employee continues to learn andbrings value to their department, it
will ultimately lead to patients getting
the medicines they need — ​which inturn will benefit the broader society.”

1 Career Navigator is available to all Takeda employees except in Germany where Working Council approval is pending.

17

Dedicated to well-being
Well-being remains a critical focus
area, and we recognize that wellbeing is different for each employee.
Global Well-Being@Takeda is focusedon providing offerings across four
key dimensions — e​ motional, physical,
financial and social. In support ofthese dimensions and inspired by
employees’ feedback, we have set
two long-term global well-being
strategic imperatives: empowering
life-work alignment and enabling
expanded access to global coreofferings. We were also one of 50
companies globally to be honored by
the Business Group on Health with its
2023 Best Employers Excellence in
Health and Well-Being Award.

TO P E M P LOY E R
R E CO G N I TI O N
FO R S E V E N TH
CO N S E C U TI V E Y E A R
In January 2024, the Top
Employers Institute recognized
Takeda for the seventh year in a
row as a global Top Employer. We
were one of only 17 companies toachieve this global certificationin 2024. In addition, each of the
24 Takeda countries/regions thatparticipated in the survey werenamed a Top Employer. For acomplete list, visit our website.

TAKEDA 2 024 ANNUAL I NT E GRAT E D RE P ORTI N TR OD U C TI O NOwning their growth: employees

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Across Takeda, we embrace andcelebrate diversity, while striving
to give patients and our people
equitable access to opportunities that
help them achieve their full potential.
Supporting gender parity
Takeda ranked 89th globally
among nearly 4,000 publicly listedcompanies in the 2023 Gender
Equality Global Report & Ranking.

CO RPO RAT E P HI LOS OP H Y

As of the end of fiscal year 2023,
female or non-binary representation
among senior most leaders has
increased to 46% (up 15% fromfiscal year 2022)1. This increase
represents strong progress towards
achieving our aspiration to have
50% representation by female ornon-binary leaders among our senior
most leaders by the end of fiscal year2027.

Jessica Souza Silva is a member of Takeda’s
Supply Chain team in Brazil. In 2023, she
won the Early Career award as part of thecompany’s annual global DE&I awards for an
innovation that helps her fellow colleagues
bring their true selves to work. Here isher story.
“During a Takeda Resource Group (TRG)
meeting, a Black woman who works in
production shared that the regular hair net
she needs to wear is too small for her hair.
For many years and in multiple industries,
Black and mixed-race people have been
subjected to discrimination that prevent
them from wearing their hair in its naturalstate. In Takeda’s case, it wasn’t a policy that
was a barrier, it was the availability of hairnets that accommodate natural hairstyles
and meet our exacting standards.
“I knew of a Brazilian company that makes a
special hair net for Afro hair and I contacted
them. After several tests of different options
with the production line and our teams, wefound a hair net that met our standards thatour people with natural hairstyles can wear
comfortably.

I N TR OD U C TI O N“Empowering Black and mixed-race
people to wear their hair in a natural styleis significant because it allows them toembrace their cultural identity and challenge
traditional beauty standards. I affectionately
call this hair net the ‘royal cap’ because I
believe hair is like a crown, especially whenit comes to valuing Afro hair. With this new
hair net, people feel more comfortable andhave a sense of belonging.”
1 This data includes permanent and fixed-term employees.

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CHAM PI O NI NG A T RUE SENSE O F
B ELO NGI NG

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Committed to Diversity,
Equity & Inclusion (DE&I)

VALU E C RE AT I ON
CORP ORATE PH I LOS OP HYI N TR OD U C TI O NHarnessing our capabilities
to protect our planet andhuman health
We re cog n i ze that the well-beingof our patients, the communities weserve, and employees are inextricably
linked to the health of our planet.
Our efforts must extend beyond
mitigating adverse environmental
impacts on health to actively
fostering a healthier planet that
benefits more people.

Takeda has the knowledge and experience tohelp address critical environmental health issues,
such as the disease-related impacts of climatechange. We do this through our core mission ofdelivering life-transforming medicines and vaccines
for people around the world. (See the example of
QDENGA on page 35.)

“Our philosophy has led us
to integrate environmental
responsibility into every facet of
our operations and this is why, forevery investment we make, we
assess how we can best deliver
benefits for patients, our people
and the planet.”
T H O M AS WOZ N I E WS K I
Global Manufacturing and Supply Officer

19

USI NG SCI ENCE TO TACKLE CLI M AT E
CHANGE I M PACTS

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CO M M I TME N T TO TH E P L ANETWe are working to achieve net-zerogreenhouse gas (GHG) emissions in
our operations by 2035 and acrossour value chain by 2040. In fiscal
year 2023, we continued to evolve
our climate strategy to align withcurrent scientific consensus andScope 1 & 2 emissions
Focus reductions in operations• Manufacturing sites• BioLife plasma donation centers• Sales fleet

 8 site site-specific net-zero roadmaps: manufacturing
4sites, BioLife, and offices pproved industry-first higher-temp heat pumpA
for steam (AHEAD project)
 irst BioLife center designed to operate withFzero GHG emissions (Linz, Austria)

CO RPO RAT E P HI LOS OP H Y

disposal of regulated medical waste.
In line with Science Based Targets
initiative (SBTi) guidelines (including
the Corporate Net-Zero Standard), we
will continue to invest in nature-basedcarbon removal projects, prioritizing
solutions that benefit human health.

40% of global fleet is electric vehicle (EV) or hybrid

Scope 3 emissions
Focus on our value chain• Raw materials• Contract manufacturing• Distribution and logistics• Clinical trials• Product end of life

F Y 2 024

56% of suppliers (by emissions) have set orcommitted to set SBTs7
 0% of shipped volume (by weight) are transported
5
by sea instead of air freight ustainability by Design Program established withS
10 life-cycle assessments (LCAs) completed forhigh-impact products 3% of secondary paper packaging (by weight) is from5
recycled content or sustainable forest certified• Laboratories4• BioLife5• Packaging• Other categories6

40% reduction in
Scope 1 & 2 by FY20251

65% reduction in
Scope 1 & 2 by FY20301

Net-zero for Scope 1 & 2
by FY2035

Action 650+ identified emissions or energy reduction projects (50% for energy efficiency) Address residual
emissions (<10%)with high-quality,
permanent
carbon removals3

Invest in transformative technologies for renewable heat

 irtual Power Purchase agreements secured inV
the U.S. and India

Strengthen
our vitals

I N TR OD U C TI O N

initiatives that advance our net-zeroroadmap. This includes reducing ourenergy use, switching to renewablesources, whenever possible, andfocusing on collaborations to tackle
hard-to-abate value chain emissions,
including single-use plastics and

OUR N ET-ZERO R OA D M A P ²• R&D sites and offices

VALU E C RE AT I ON

better position Takeda to achieve
our ambitious net-zero targets. We
have transitioned away from carbon
neutrality as a climate goal to focus
our resources on decarbonizing
our operations and are reinvesting
and reallocating resources toward

67% of emissions from supplierswith science-based targets
commitments by FY2024

Maintain commitment to building “all-electric” new BioLife centers
Achieve 100% renewable electricity across our operations2Eliminate 100% of internal combustion engine vehicles

Prescribe a lowcarbon path

FY 203 0

Mobilize the health careecosystem

Pursue 60% reduction in our suppliers’ operational emissions
Make strategic investments in new tech to address hard-to-abate
emissions (e.g. single-use plastics in plasma donation)
Design new products and packaging tominimize emissions for all modalities
Enhance circularity in manufacturing(e.g. widespread solvent recycling)
Maximize recycled content in secondary
packaging8 (e.g. paper, plastic trays)

25% reduction in
Scope 3 by FY20301

FY 2035

FY 2040

Scale digital solutions for greatertransparency of value chain emissions basedon insights from our accelerated journey
Decarbonize commercial products and deploy
greener clinical trials with digital solutions that
also improve participant experiences
Redesign primary packaging material8(e.g. PVC-free blister packs, pharma-grade
bioplastics)

Net-zero across our value
chain by FY2040

1 Absolute reductions vs baseline (FY2016 for Scope 1 and 2 and FY2022 for Scope 3). 2 Prioritize on-site renewables and power purchase agreements/voluntary power purchase agreements over unbundled energy attribute certificates (EACs). 3 SBTi aligned. 4 Lab consumables/
equipment, lab supplies. 5 Plasma collection materials, donation supplies. 6 E.g., CAPEX, facilities and related services, business travel, marketing, etc. 7 Science-based targets. 8 Takeda manufacturing only.
1 Takeda defines carbon neutrality and net-zero emissions in accordance with The Greenhouse Gas Protocol and the SBTi guidelines. SBTi’s Corporate Net-Zero Standard requires companies to reduce GHG emissions by more than 90% and use permanent carbon removal and storage technologies tocounterbalance the remaining less than 10% of residual GHG emissions that cannot otherwise be eliminated.

20

2 Takeda’s Net-Zero Roadmap describes Takeda’s current goals with respect to reducing GHG emissions across its value chain as well as certain steps that Takeda is taking, or plans to take, to reduce GHG emissions in its value chain to meet those goals. It is not a comprehensive transition plan, nor acomplete statement of the measures that may be necessary for Takeda to achieve its goals on the timelines stated, including the commercial availability of future technological advances in renewable energy or low carbon energy which may or may not be realized.

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Our net-zero1 ambition

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We recognize that thriving
ecosystems and biodiversity are
essential for the environment, humanhealth and the economy. We strive
to minimize our impact on nature
by working to enhance our water
and waste stewardship, addressing
pharmaceuticals in the environment
and promoting the protection ofnatural resources. Learn more in our
Position on Biodiversity.
Increasing nature-basedtransparency
In January 2024, as part of ourcontinued focus on nature andclimate change, Takeda joinedwith other companies as part of
the first cohort of adopters of theTaskforce for Nature-related Financial
Disclosures recommendations.
We are committed to identifying,assessing and disclosing our naturerelated dependencies, impacts, risks
and opportunities by fiscal year 2026.

L E A DI N G TH E WAY W I TH I N TH E B I O P H A R M A
S E C TO R I N S I N G A P O R E
Our on-site photovoltaic panels produce more energy forour newest manufacturing support building in Singapore
than it uses. We direct the excess energy to our adjacent
manufacturing facility. The energy-positive building has
earned a Green Mark Platinum Positive Energy certificationfrom the Singapore Building and Construction Authority, afirst for the biopharmaceutical industry in Singapore. Learn
more here.

B UI LD I NG CLI M AT ERESI LI ENCE I N T HECARI B B EAN
The Caribbean already faces theimpacts of climate change, from
more extreme heat to devastating
hurricanes. To help climate-fragile
communities in Jamaica, the U.S.
Virgin Islands, St. Kitts and Nevis
and St. Lucia, we are supporting
Mercy Corps’ resilience hubmodel. Collaborating with local
partners, the non-governmentalorganization will help upgrade
existing community infrastructure
to provide more than 3 million
people critical health and social
services during emergencies andyear-round assistance. Supported
by a four-year commitment from
our Global CSR Program, theproject will lay the foundationfor expanding the model acrossthe region. For more informationon our Global CSR Program, see
Commitment to Patients.

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Addressing our impact onnatureAP P E ND I X
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CORP ORATE PH I LOS OP HYI N TR OD U C TI O NThrough our Sustainability by
Design (SbD) program, we aretransforming how we develop anddeliver medicine, from the earliest
phases of R&D to the patient
experience and product disposal. In
SbD, we use life-cycle assessments
to inform our decisions during
product development to help
minimize environmental impacts.
This includes opportunities toreduce GHG emissions, energy andmaterials, avoid hazardous materials,
generate less waste and improvesustainability potential.
We also have developed
environmental sustainability
improvement plans for several
commercial products. For example,
Takeda is moving from special colors(Pantone) to CMYK (cyan, magenta,
yellow and black) in its printing
for secondary packaging startingwith CUVITRU® Immune Globulin
Subcutaneous (Human) in Japan. We
plan to switch to CMYK ink for all
products.
This change is expected to reduce
ink waste and the chemicals used toclean the printing machine between
printing jobs, as well as the amountof waste generated during thechangeover of different packaging.

I NNOVAT I O N LEADS T HE WAY TO
WAT ER SAVI NGSAt our manufacturing site in Osaka, Japan, we
use significant amounts of distilled water aspart of our production and cleaning processes.
By using data and digital technologies,
the local team reduced the site’s water
consumption by more than 450,000 liters per
year. Here’s what they did:

1
2
3
4

Created a dashboard using data froman online system to determine exactly
how much distilled water each facility
and piece of equipment was using.
Installed sensors in the pipes supplying
distilled water to measure how muchdistilled water operators used tomanually clean equipment.
Analyzed combined data to discoverthat there were facilities and equipmentthat were set to use nearly 1.5 times therequired amount of distilled water. In
addition, the team found variation in theamount of distilled water operators used
to clean equipment.
Standardized processes helped toreduce distilled water consumption bymore than 450,000 liters per year — ​more than 2 million liters of fresh water
withdrawal and more than 7,900 cubic
meters (m3) of natural gas.

Not only did this project conserve a significant
amount of water, but we also avoided the riskof interrupted product supply and additional
investment in facility updates.

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Embedding environmental
sustainability into productdesignVALU E C RE AT I ON
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Leveraging data, digital and technology
to advance innovation for patients
F ro m ag in g p op u latio ns to
the threat of climate change, theworld faces significant global healthchallenges that require urgent andequitable solutions. Through a major
digital transformation, Takeda isreimagining how we work — ​fromdrug discovery and development
to how we engage with health careproviders and support patients — ​tomeet this need and create a futureready, resilient organization.

“We are at the forefront ofinnovation, responsibly harnessing
the power of data and digitalsolutions to prioritize patient care.
Our growth pipeline is evolving
to encompass both traditional
R&D and a cutting-edge digitalpipeline, reflecting the rapid
technological advancements ofour time and our commitment toshaping the future of health care.”GABRIELE RICCI
Chief Data and Technology Officer

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W E A R E H A R N E SS I N G TH E P OW E R O F DI GI TAL AND ART I FI CI AL I NT ELLI GENCE (AI ) TO :R&D

Plasma Collection

Manufacturing

Patient and Health Care

Improving and accelerate drug

Improving efficiency at each of

Optimizing our manufacturing

Provider Support

discovery and development,

our BioLife donation centers

network in real-time to bringSupporting patients, and their

including the speed to recruitand creating an exceptional

treatments and vaccines

caregivers and providers, inpatients for clinical trials anddonor experience. Our new

to patients faster than ever

better managing their care. This

our ability to increase thedigital loyalty program

before. By transitioning

includes providing a new digitaldiversity of trial participants.

incentivizes plasma donors

from manual to automatedpatient support program, freeThrough digital tools such as

by offering them points thatprocesses in many of oureducational content and helpful

wearables we are conducting

can be redeemed on a broad

manufacturing operations,

resources tailored for patient

more virtual trials, removing

selection of rewards such as

we’re improving efficiency

needs based on demographics,

barriers to participate forgift cards or donations toand quality and allowing ourhealth conditions, language

underrepresented populations.

charities. We also use AI toemployees to focus on otherand location. Find out more

Data and AI are also giving

optimize staffing and improvevalue-add tasks. We aim

on page 25. We are also using

us new ways to identify andappointment scheduling.

to be 80% paperless in our

predictive analytics algorithms

conduct initial tests digitally on

manufacturing organization by

to create data-driven

thousands of new molecular

the end of fiscal year 2026.

engagements with health carecandidates in exponentiallyproviders. This is helping toshorter periods of time.

personalize their experience,
ensuring that we reach themin the right way with the rightinformation that can help themtreat their patients.

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To leverage the rapid technologicaladvancements shaping our sector
today and be ready for the future ofhealth care, we are investing in thedigital skills of our employees. Our
goal is for every Takeda colleague tobe a digital innovator supporting thediscovery, development and deliveryof life-transformative treatments. And
we are making strong progress.
From Japan and Scandinavia to
the U.S. and Mexico, our employees
are creating digital solutions that
address the needs of patients, healthcare providers and caregivers — ​aswell as one another. In addition todigital skills, our employees possess
exceptional knowledge about our
stakeholders, which allows themto develop solutions that meettheir needs.
Developing and retaining critical
digital knowledge and skills within
Takeda supports our ability to
be competitive and agile in theface of changing business needs.
Additionally, it offers our employees
opportunities for career developmentby expanding their capabilities,
introducing new skills for future roles,
and re-skilling to prepare for thesunset of outdated roles.

1 This is the cumulative number of employees who have taken atleast one data, digital and technology training course since thefirst quarter of fiscal year 2020.

24

More than 27,000 employees – 53% of our workforce – are actively engaged in digital learning.
This includes 4,000 who have completed training
in robotic process automation, which allows us tostreamline our operations and improve efficiencies

More than 24,000 employees1 ​are actively engaged in digitallearning. This includes 4,000
who have completed training
in robotic process automation,
which allows us to streamline
our operations and improve
efficiencies.

We are preparing our workforce to use
AI ethically and responsibly: We held
our first Generative AI Day, attended
by more than 5,000 colleagues
globally. We also created a new digitalhub, “Takeda.AI,” for colleagues toaccess general information, training,strategy, standards and guidelines.

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Our new Innovation Capability
Centers (ICCs) are helping us build
our own tech muscle with ourinternal talent. Our digital capabilities
and workforce are growing at a
rapid pace and they play a vitalrole in insourcing data and digital
capabilities. Currently, we have ICCs
in Slovakia, Mexico and India, andwe will further expand the networkin other geographies to support
specific business needs. Teams
at the centers are creating andmanaging digital solutions acrossthe business, enabling less relianceon external partners, as well as
enhancing our engagement withhealth care providers and patientsand allowing them to access our
products and services more easily.
They are also improving ways ofworking by deploying innovative
applications that make everyday
tasks more efficient.
As part of our diverse talent pool,
women within Data, Digital andTechnology play a key role in driving
innovation to tackle the mostpressing health care challenges
of today and tomorrow. We areintentionally diversifying our talent,particularly women, and making moreinvestments to close the gender gap
in this field.

B R I N G I N G L E A DE R S TO G E TH E R
TO A DVA N C E DI G I TA L H E A LTH

PROVI D I NG SEAM LESS PAT I ENTSUPPO RT

In 2023, we came together with leaders in the public andprivate sectors and academia to share ideas, collaborate andsupport innovative solutions centered around patients.

Managing a chronic condition can be complex
for both patients and caregivers. Daily tasks
can include scheduling medical appointments,
remembering to take medications, finding
answers to questions and seeking support
from others.

Shanghai, China
We launched a partnership with
Fudan University’s Intelligent
C

H

I

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Medicine, combining our jointAexpertise to create innovative
digital solutions across the healthcare spectrum.

Bengaluru, India
We established a three-year
public-private partnership with the
Biotechnology Industry Research

I

N

D

I

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Assistance Council, where wementor and advise health carestartups and innovators to foster
local health care technology
solutions for unmet patient needs.

Cambridge, USAUS

At our global hub, we hosted the

N

I

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T

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D

A

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2023 Global Health XL Gathering

In Japan, we have introduced TOMO, a patient
support program that provides a centralized
place for patients on Takeda therapy andtheir caregivers to better manage their healthtreatment journey. Through TOMO, dedicatedcase managers (qualified nurses) provide
personalized support to patients and theirfamilies by phone and web-based counselingtools. Services include emotional well-being
support, adherence monitoring, diseaseeducation and home delivery of ancillary items
to support appropriate treatment.1
We have introduced similar digital tools in
Scandinavia. Through our partnership with
the Colitis Crohn Foreningen, a patientorganization in Denmark, we have developed adigital resource that helps patients find nearby
toilets for urgent situations. A separate remotemonitoring solution offers a self-screening
tool that patients can use to share information
about their inflammation activity with theirhealth care provider. This helps providers
prioritize patients who need to be examined
immediately. Studies have shown that this hashelped increase adherence to treatment andreduce time to remission significantly, from77 days to 17 days.2

with digital health leaders andinnovators from biopharma,
venture capital, health care systems
and academia.

1 We respect the treatment plan by health care professionals and do notprovide any medical treatment.
2 Elkjaer M, Shuhaibar M, Burisch J, Bailey Y, Scherfig H, Laugesen B,
Avnstrøm S, Langholz E, O’Morain C, Lynge E, Munkholm P. E-healthempowers patients with ulcerative colitis: a randomised controlled trialof the web-guided ‘Constant-care’ approach. Gut. 2010 Dec;59(12):165261. doi: 10.1136/gut.2010.220160. PMID: 21071584.

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Value
Creation

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Plasma-Derived Therapies (PDTs)
are a key example of how Takeda
is building long-term value. PDTs
are essential treatments made fromblood plasma that can replace
missing or deficient proteinsthat cause rare and complex
chronic diseases. Patients often
depend on PDTs for life and have
either no or very few alternative
treatment options. In fiscal year
2023, we achieved several positive
milestones that are expanding
treatment options for patients.
Here, PDT Business Unit President
Giles Platford and Chief Financial
Officer Milano Furuta discuss
the role of the PDT Business Unit
as part of Takeda’s sustainablebusiness strategy.

Chief Financial Officer

G I L E S PL ATFO RD
President, Plasma-Derived
Therapies Business Unit

GI LES: We have seen significant
opportunity to make our broad anddifferentiated portfolio available tomore patients around the world bypursuing new indications in areasof high unmet need and throughgeographic expansion. A great
example has been our work inchronic inflammatory demyelinating
polyneuropathy (CIPD), a diseaseaffecting the peripheral nervous
system that causes debilitating
symptoms such as loss of feelingin the arms and legs and difficulty
walking. In January 2024, wereceived regulatory approvals inboth the United States and theEuropean Union (EU) for HYQVIA
as a maintenance therapy for the
disease. As the only facilitatedsubcutaneous immunoglobulin(fSCIG), HYQVIA enables up to oncemonthly administration at home orin the clinic, offering the potential
for reduced treatment burden. We
expect IG therapies to continue tobe the standard of care for CIDP
and remain committed to investing
across the continuum of care — ​from integrated technologies tosignificantly reducing the volume of
IG needed for treatment.
M I LANO : Our values and decisionmaking framework, which considers
Patient-Trust-Reputation-Business, inthat order, are absolutely ingrainedin our approach, driving our actions
to sustainably address unmet needs.
Human plasma is a limited andpotentially life-transforming resource

TAKEDA 2 024 ANNUAL I NT E GRAT E D RE P ORTI N TR OD U C TI O NCreating sustainable value
in our plasma-derived
therapies business

M I L ANO FURUTA

27

How is Takeda addressing unmet
needs through its PDT business?

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More than 20
PDTs available inover 80 countries

G ILES: It’s important that industry
efforts to address plasma supply
are supported and bolstered.
Currently just six countries supply
nearly 90% of the plasma neededaround the world. This dynamic is
not sustainable. There is an urgent
need to update regulations thatgovern the collection of humanplasma for essential medicines.
Public-private partnerships can also
play a vital role in tackling healthinequity and moving toward a moresustainable global plasma ecosystem.
A great example is Takeda joining
an initiative led by the United
Nations Institute for Training andResearch that is supporting countries
develop tailored local solutions tomeet patient need for plasma and
PDTs powered by resources andtraining. (For more information, visit
Plasma4Life, a UN-based platform
to support countries in finding theirown tailored solutions.)Takeda isworking to ensure a sustainable
plasma ecosystem by redefining
the entire end-to-end value chain
2 Fiscal year 2020 to fiscal year 2022.

260+ BioLife
plasma donation
centers

and developing innovative solutions
across our operations, from donor
to patient, vein to vein. Througha combination of expansion,transformation and optimization, weare sourcing more plasma than everbefore. For example, while we havegrown our BioLife plasma donation
network by 110% since 2018, we havealso improved donor experience.
We’re also continuing to makesignificant capital investments while
using data, digital and technology
to drive efficiencies to meet our new
goal of increasing manufacturing
capacity by over 50% by the end of
fiscal year 2028.1

How does the PDT business support
Takeda’s overall long-term growth?
M I L A N O : Our PDT business is a key
driver of Takeda’s topline performance.
Sales from PDTs contributed 21% of
total company revenue in fiscal year
2023, growing 12.3% at ConstantExchange Rate (CER). In addition,
unlike our biopharma portfolio, PDTs
do not face loss of exclusivity, leaving
a long runway for continued growth.
The PDT business’ commitment tosustainable growth and continuous
margin improvement position
it as a significant contributor tothe company’s overall long-term
performance and strategy.

BioLife openeda new donation
center every
two weeks, on
average, in fiscal
year 2023
13% revenue
growth2

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employees

What needs to happen to ensure
the industry can meet increasing
demand for PDTs?

1 From a fiscal year 2023 baseline.

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PDT B USI NESS

that requires careful collection,
processing and distribution. Thus,
trust and reputation are vital andunderpin continuity of care forpatients worldwide. The PDT businessby its nature requires significant
capital investment with a long-termhorizon, which must be sustainable
for patients and society.

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29Promoting environmental
initiatives
Scaling our PDT business to meetgrowing global demand and reducing
our environmental footprint are
not mutually exclusive — ​in fact, we
believe we must do both. In fiscal
year 2023, we opened our first
BioLife donation center in Linz,
Austria, designed to operate as a
zero-GHG emissions facility.
Within our BioLife centers, wehave embarked on a numberof environmental sustainability
programs.

K EY R ES U LTS I N C LU D E :60%

average reduction in emissions per U.S. BioLife
center from fiscal year 2016 through fiscal
year 2023

35%

reduction in water consumption per U.S.
BioLife center from calendar year 2019 throughcalendar year 2023

87%

of U.S. BioLife centers use AI-powered HVAC
(heating, ventilation and air conditioning)systems to reduce electricity and natural gas
consumption

Our BioLife donation center in
Linz, Austria, is our first designed
to operate as a zero-GHG
emissions facility.

In fiscal year 2023, we received
two important approvals for PDTs
in Japan. CUVITRU became ourfirst subcutaneous immunoglobulin(SCIG) approved in Japan to treat
patients with primary and secondary
immunodeficiency. We launched
the IgSensei “Teacher” companion
app with CUVITRU, developedwith direct insight from patients.
The app is designed to increase
patient confidence in treatment
administration and improve thepatient experience. In March 2024,
we received approval for CEPROTIN®
for intravenous injection 1000
units (Dry Concentrate Human
Protein C) in Japan. It is used forthe treatment of the ultra-rare
disorder involving severe congenital
protein C deficiency.
To support our efforts, in March
2023, we announced a ¥100 billion
investment in a new PDT facility inOsaka that will serve not only patientsin Japan, but around the world.

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Our PDT business is deepening
its commitment to Takeda’s homecountry of Japan by bringing
the benefits of its broad anddifferentiated portfolio to morepatients in this market. In fact, overthe next five years, we plan to have up
to five submissions for new products
and indications.

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F uele d by ou r inherent curiosityand motivated by unmet patientneeds, we translate science into
potentially life-transforming
medicines. To ensure no one is left
behind, we strive to address healthdisparities by embedding DE&I
principles in our approach.

Perseverance delivers results
For Jennifer Elliott, head of Solid
Tumors, Global Medical Affairs
Oncology, success is when a patient
has hope they didn’t have before.
Jennifer and her team spent the
majority of fiscal year 2023 sprinting
to prepare for the submission of theregulatory dossier for FRUZAQLA®
(fruquintinib). In November 2023,
their hard work paid off when the U.S.
Food and Drug Administration (FDA)
approved the oral medicine for adults
with metastatic colorectal cancer.
It is the first novel chemotherapyfree treatment option regardless ofbiomarker status approved in the
United States in more than a decade.
Asked how the moment felt, she
explained, “It was really a sense of
pride — ​but also relief that now, finally,
there was another option for patients.
All those months, we just kept at it

because we knew how much theyneeded this medicine.”
The approval of EOHILIA®
(budesonide oral suspension) by
the U.S. FDA in February 2024 also
highlights the perseverance of ourclinical development team. Theynever stopped believing in thehope this treatment could bringto patients. Following a Complete
Response Letter, Takeda continued
to be inspired by the encouragement
and support of patients, advocacy
groups and health care providers,
while finding a new — ​andultimately successful — ​regulatory
pathway forward.
For people living with eosinophilicesophagitis (EoE), sitting down
for a meal can involve difficult
swallowing (dysphagia). EOHILIA is
the first and only oral treatment in
the United States for EoE, providing
patients 11 years and older and theirhealth care professionals with a
12-week medicine that was shownin two 12-week clinical studies tohelp reduce eosinophil counts
and improve patients’ dysphagia
symptoms compared to placebo. It
has not been shown to be safe andeffective for longer than 12 weeks.

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A patient-centric approachto drug development

Patients were also at the forefrontof our efforts to develop ADZYNMA®
(ADAMTS13, recombinant-krhn),
which addresses an unmet medical
need in people with congenital
thrombotic thrombocytopenic
purpura. After more than 20 years of
research on ADAMTS13, the U.S. FDA
approved its use in November 2023.
ADZYNMA also reflects our efforts toembed environmental sustainability
into our product development
by applying the SbD framework(See page 22). Our product’s
secondary packaging is designedwith environmental considerations
in mind. We have successfully
reduced the amount of material used
and the weight of material for our
packaging, contributing to lower
greenhouse gas (GHG) emissions
during distribution. Since 2023, weare applying our SbD framework to
all new pipeline products.

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Add re ss in g u n m e t p atie nt ne e d s is always at the forefront of our R&D efforts. We leverage ourcollaborative R&D engine and capabilities to create a robust, modality-diverse pipeline. We expect to haveup to six pipeline assets in Phase 3 development in fiscal year 2024 that together have the potential togenerate significant value. More information on our pipeline is available on our website, Form 20-F and
Annual Securities Report.

SOTICLESTAT 1,2

ZASOCITINIBFAZIRSIRAN 2(TAK-279)(TAK-999)

Lennox-Gastaut Syndrome

Psoriasis: Target filing FY26/27

Alpha-1 Antitrypsin

Dravet Syndrome

Psoriatic Arthritis: Ph3 start FY24

Deficiency Liver Disease:*Ulcerative Colitis and Crohn’s: Ph2

Target filing FY26/27

RUSFERTIDE 2

MEZAGITAMAB 2(TAK-121)(TAK-079)

Narcolepsy Type 1:

Polycythemia Vera:

Immune Thrombocytopenia:

Target filing FY26/27

Target filing FY25

Ph3 start FY24

(TAK-935)

TAK-8612

I N TR OD U C TI O N*Considering additional indications

1 On June 17th, 2024, Takeda announced Phase 3 topline results for soticlestat. SKYLINE Study in Dravet syndrome narrowly missed its primary endpoint of reduction in convulsive seizure frequency and showed clinically meaningful and nominally significant effects in multiple key secondary
efficacy endpoints. SKYWAY Study in Lennox-Gastaut syndrome missed its primary endpoint of reduction in major motor drop seizures. Soticlestat showed a consistent and favorable safety and tolerability profile in both studies. Takeda will engage with regulatory authorities to discuss thetotality of the data generated by these studies to determine next steps.
2 Orphan Drug Designation potential (in any region / indication for a given asset)

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Six key late-stage programs

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REFLECT I NG D I VERSI T Y I N PSO RI ASI S
ST UD I ES

People from minority groups havehistorically been under-represented
in clinical trials. Takeda is trying tochange this.

Much of what is known about psoriasis, achronic skin disease, often does not reflect all
skin tones. Such gaps can delay diagnosis andlead to inadequate care for people of color withthe condition.

“If we can ensure clinical trial participant
populations are reflective of the patients
who are likely to use the treatment, thenwe have stronger confidence that ourtreatments can work for many types ofpatients,” said LaShell Robinson, seniordirector, DE&I in Clinical Research.
To increase the diversity of patients
participating in U.S. clinical trials, we are
fostering community partnerships andimplementing strategies anchored in
education, access and awareness. As partof our strategy, we are looking to expand
our clinical research footprint into moregeographies in the U.S., specifically inunder-represented areas.
See page 13 for more information on how
we are working with community groups
to build trust and lasting relationships toaccelerate health equity.
In the U.S., we ask clinical trial sites toreport patient population demographics.
When a community surrounding a site
is racially and ethnically diverse, butthat diversity is not reflected in thepatient enrollment of the trials, we work
to understand the underlying reason.
This allows us to develop customized
support — ​such as offering culturalcompetency training, hosting community
outreach activities or providing materials
to support discussions with diverse trial
participants.

One reason is that individuals with skin of color
are historically under-represented in dermatologic
education and research. A systematic review of
randomized controlled dermatology trials foundthat psoriasis studies in the United States were theleast diverse, with 84% of total study participants
recorded as white.
We are embedding DE&I in the development
program for TAK-2792 from the start, with anambition to have unprecedented patient diversity in
our Phase 3 trials in psoriasis.
SUP P O RTI N G U. S . C L I N I C A L TR I A L D I V E R S I TY

100%

of new Takeda
clinical trials
require a Diversity
Action Plan1

30+

markets projected
to be impacted
by our pharmacy
outreach program

1M+

people reachedthroughcommunity
engagement
efforts

34

languages in which
our clinical trial
website is accessible

40+

geographies
impacted by
Communities as
Partners Program

To reach this goal, we provide educational materials
to medical professionals on accurately diagnosing
psoriasis in people with skin of color and offer
resources to study sites on fostering patient
inclusivity within trials. We are also developing
culturally relatable patient materials, including
imagery of psoriasis that reflects diversity of skintypes within the patient population.
“Clinical trials can lead to peer-reviewed scientificpublications,” said Chesahna Kindred, M.D., M.BA.,
F.A.A.D., a dermatologist and clinical trial site
investigator for TAK-279. “Once validated, thosepublications can form the basis of textbooks.
Those textbooks and publications become
important resources for both new and practicing
health care providers. And new evidence and newunderstanding can lead to new clinical care andtreatment approaches for patients.”

1 As of June 2023, all our new U.S. clinical trials require a Diversity Action Plan in line with the Pharmaceutical Research and Manufacturers of America’s clinical trial diversity principles and the FDA’s industry guidance on enhancing clinical trial diversity.
2 We are conducting clinical trials of TAK-279 for the treatment of moderate-to-severe plaque psoriasis. It has not been approved for this use or indication under investigation and there is no guarantee it will be approved for such use or indication.

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TAKEDA 2 024 ANNUAL I NT E GRAT E D RE P ORTI N TR OD U C TI O NCommitment to DE&I
in clinical research

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Across Takeda, we are using data,
digital and technology solutions toimprove speed and quality while
reducing costs over time. These
solutions are accelerating the deliveryof our pipeline while encouraging
experimentation that leads to criticalinnovation in our work.

P R OTE C TI N G I NNOVAT I O N
Due to the lengthy development
periods for new drugs, the high costsof R&D and the small percentage of
researched therapeutic candidates
that reach the market, the protectionof intellectual property plays animportant role in the return on
investments of a new drug.
We seek patent protection for
proprietary technology wheneverpossible in the United States, Japanand major European countries. For
details on our outstanding substancepatents in these markets and expiry
dates, see our Form 20-F fiscal year
2023. Learn more in our Position
on Intellectual Property for Accessto Medicines.

For example, real-world evidence(RWE) played a crucial role in
informing the Phase 3 trial designfor fazirsiran, our investigational
medicine for the treatment ofantitrypsin deficiency associatedliver disease (AATD-LD). This chronic
genetic disease can eventually lead toliver failure. Currently, liver transplantis the only available cure for thisrare condition.¹
When we began to design andinitiate the Phase 3 trial under anaccelerated timeline, we could not
identify a robust data source that
captured genotype and longitudinal
data to assess the natural history of
AATD-LD. However, a comprehensive
data strategy helped us identify
a robust data source from a large
academic medical center. This not
only provided us with evidence on
disease progression and related
clinical events to inform our trial
strategy but also allowed us tosignificantly shorten the timeto insights.
These data became one of the mostcomprehensive sources of RWE
for this patient population, helping
us gain a greater understanding of
disease progression in AATD-LD andsupporting a robust Phase 3 trial.

1 Teckman JH. Liver disease in alpha-1 antitrypsin deficiency:
current understanding and future therapy. COPD. 2013
Mar;10 Suppl 1:35-43. doi: 10.3109/15412555.2013.765839.
PMID: 23527737.

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Leveraging real-world
evidence to inform andaccelerate clinical trial design

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In September 2023, we brokeground on a new state-of-the-art
28,000-square-meter R&D center in
Vienna, Austria. When operationalin 2026, it will welcome 250 R&D
colleagues — ​currently spread acrossfive sites.
The facility will be shaped by input
from the people who will work in it,
alongside Takeda leaders in Vienna
and project architects.
“By bringing colleagues together inthe planning stage of this project, we
not only gain a sense of ownershipof this space but are reinforcing
a mindset of collaboration andcollective innovation,” said Manfred
Rieger, R&D Austria site head.
Based on their input, the site will
include a “ballroom” concept, where
bioprocess equipment is mobile
rather than in fixed positions to allow
teams to quickly adjust processes,
and where walls can be moved tocreate bigger or smaller rooms asneeded. Robotics, augmented reality,
AI and digital twins are just some of
the advanced technologies that will
be used at this site.

Building with the environment
in mind
In creating our laboratory of the
future, we are designing a facility
that will support our net-zerogoals as well as helping reduce ouruse of natural resources. A mix ofphotovoltaic panels, waste heatrecovery and other initiatives willmeet all electricity and heating
demands, saving more than 400 tonsof CO2 each year. Using groundwaterfrom discharged rainwater will also
drastically reduce the amount offresh water required to maintain thegardens and plants in and around thebuilding. The lab will be located nearpublic transportation to encouragecarbon-friendly commuting.

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The g lob al im p act of dengue
continues to rise, fueled by climatechange, travel and urbanization.
Access to safe and effective dengue
prevention methods, including
vaccines, is essential in protecting
the most vulnerable populations inregions experiencing the highest
burden of disease. Now, just over one
year since its first approval, QDENGA,
our dengue vaccine, is available
in more than 20 countries, withadditional approvals pending.

Another tool in the fightagainst dengue
In 2023, Francisleine Costa’s son diedof dengue in Dourados, Brazil. He wasonly 14.
A year later, Francisleine became
the first person to be vaccinatedwith QDENGA in Brazil’s public
immunization program — ​the firstsuch program for the vaccine. Her
family’s story exemplifies why andhow the public health community,
including Takeda, are working toprotect people worldwide from thethreat of dengue.

1 At the discretion of each Takeda location.

35

P R OTE C TI N G O U R
EM P LOY E E S
Our colleagues and their family
members based in countries
where QDENGA is available canreceive the vaccine at no costthrough the Takeda Dengue
Employee Vaccination Program aspart of our benefits program.1
In August 2023, Takeda Brazil
launched a vaccination campaign
for employees and their families.
Nearly 1,200 adults and children
received QDENGA at our São
Paulo office and Jaguariúna plant.
Vanessa Kolbe, vaccines productmanager, was one of the many
employees who participated. “I
was second in line,” she said. “I
had been waiting for this moment
for two and a half years.”

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The threat of dengue has never been
greater. Transmitted by mosquitoes,
dengue infects an estimated 390
million people worldwide each year,1leading to 500,000 hospitalizations.
There are approximately 20,000
to 25,000 deaths globally, mainly
among children, due to the virus.2
It is endemic in more than 100
countries, predominantly in low- andmiddle-income countries in Latin
America and Asia.³
The impact of climate change — ​including rising water temperatures,increased precipitation anddevastating floods — ​are increasing
this threat, creating new environments
for mosquitoes to thrive in and carrythe virus even further. In fact, 2023
witnessed the highest number ofdengue cases ever recorded, withan unexpected spike in dengue
cases and outbreaks across regions
previously unaffected by the virus.⁴
The approval of the vaccine follows
several decades of research,
including by Takeda scientists after
we acquired the research programin 2013 from Inviragen. Before its
approval, communities mainly relied
on mosquito-control programs andpublic awareness to reduce the riskof infection. While these measures
are still critical, QDENGA provides a

Dengue is a mosquito-borne viraldisease that has been a growing
threat for decades. A high number ofcases occur in the rainy seasons ofcountries in Asia and Latin America.
Dengue was one of 10 threats to
global health identified by the World
Health Organization (WHO) in 2019.⁵

From the earliest days ofdevelopment, we recognized what
QDENGA would mean to people likeFrancisleine. That’s why we engaged
with national, regional and local
public health officials in countries
where dengue is most prevalentas part of the vaccine’s clinicaldevelopment program. This included
a pivotal Phase 3 trial of more than
20,000 children and adolescents
aged four to 16 years living indengue-endemic areas in Asia andLatin America.
In August 2022, QDENGA was first
approved in Indonesia, followed by
the European Union in December
2022. It is now available in morethan 20 countries primarily in theprivate market, including Indonesia,
Brazil, Argentina and Thailand — ​countries where dengue is endemic.
Once approved, we are focused on
introducing QDENGA in a way thatis accessible and affordable. This
includes considering a country’s
economic stage and healthsystem maturity as part of our
pricing decisions — a​ s we do for all
Takeda products.

1 8 Trivedi S, Chakravarty A. Neurological Complications of Dengue Fever. Curr Neurol Neurosci Rep.
2022 Aug;22(8):515-529.
2 European Centre for Disease Prevention and Control. Fact Sheet about Dengue. April 2024.
3 Wellcome Trust
4 WHO. Dengue and Severe Dengue. April 23, 2024. Retrieved April 30, 2024.
5 2019: A Year of Challenges and Change. MEDICC Rev. 2019 Jan;21(1):3. doi: 10.37757/MR2019.V21.N1.1.
PMID: 31242144.

36

T HE I M PACT O F D ENGUE

powerful new prevention method tohelp protect people against the virus
regardless of previous exposure andwithout pre-vaccination testing.

390 million dengue
virus infections per
year
0.5 million
hospitalizations for
dengue per year
20,000 to 25,000
deaths associatedwith dengue per year
“Our long-term goal is to make QDENGA broadly available
through public vaccination programs to help achieve
population-level protection against dengue. We first launchedin the private market to support immediate availability ofour vaccine and are now excited to see the start of a public
program in Brazil. Given that public health vaccination
programs often take years to implement, the quick uptake
in Brazil is a testament to the importance of this vaccine.”
D E R E K WA LL AC E
President, Global Vaccine Business Unit

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“Dengue is a growing threat, and thispast year has been marked by large
outbreaks throughout the world,”
said Derek. “Meeting demand forthe vaccine and maintaining trust in
countries where we have launchedis critical.”This recommendation provides
guidance to countries on how andwhen to initiate a public vaccination
program for QDENGA — ​helping
individuals like Francisleine incountries where there is the greatest
need for protection.
Accelerating our public impact
Our commitment extends beyond
individual protection as we aim tounderstand and share data about
the broader public health impact
of vaccination with QDENGA. Less
than two months after the SAGE
recommendation, Brazil announced
it would integrate QDENGA into
the country’s national public healthprogram — ​becoming the first
country to do so. We have also
initiated a population-based study in
Brazil (separate from the country’s
public vaccination program) inthe municipality of Dourados. We
expect the study to provide valuablereal-life data and understanding of
QDENGA’s potential.

In February 2024, we announced
a strategic collaboration with
Biological E. Limited, a leading
vaccine manufacturer in India, toproduce up to 50 million doses
a year by 2030. We continue toexplore other partnerships toincrease QDENGA supply in Asia andLatin America.

Solving a complex
challenge

To help meet the growing
threat of dengue anddemand for vaccines, ourgoal is to manufacture
100 million doses of
QDENGA a year by theend of the decade.

In January 2024, the first shipments of
QDENGA arrived in Brazil from Takeda’s
manufacturing site in Singen, Germany, as
part of the country’s public vaccination
program against dengue.

While our dengue vaccine stands
to make an impact, it is only one
part of addressing the complexityof prevention. Capacity building,
education and awareness are also
critical to improving health equity
and supporting resiliency in healthsystems, especially for vulnerable
populations in low- and middleincome countries. See examples onfollowing page.

TAKEDA 2 024 ANNUAL I NT E GRAT E D RE P ORTI N TR OD U C TI O NEven before we started our Phase 3
trial for QDENGA in 2016, we began
investing in manufacturing throughin-house and external capabilities
and infrastructure. Partnering with
our global contract manufacturer,
IDT Biologika GmbH, we have
manufactured and distributed
millions of doses to date.

In October 2023, the public healthcommunity received critical guidancefrom the WHO’s Strategic Advisory
Group of Experts (SAGE) on
Immunization, which recommended
the programmatic use of QDENGA
in settings with high dengue disease
burden and high transmission
intensity in children aged six to
16 years.1

1 WHO position paper on dengue vaccines – May 2024.

37

Meeting demand

Global health experts
recommend QDENGAQ D E N G A A P P R O VA L S A R O U N D T H E W O R L D *Global
We created KnowDengue.com,
a disease awareness andeducation website for patientsand consumers designed tohelp increase awareness andunderstanding of the risk ofdengue, using plain language
and intuitive navigation.

Approved

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Argentina1
Brazil2
Colombia3
The European Union4
Iceland5
Indonesia6
Israel11
Liechtenstein5

Latin America
In late 2023, we launched
the Takeda Latin America
Dengue Digital Innovation
Challenge for startups in
the region, tapping into thedigital innovation ecosystem
to help combat dengue
through disease education
and awareness and improved
visibility and security ofvaccine supply chains, andgenerating evidence on theeffectiveness and outcomes ofvaccination.

I N TR OD U C TI O N

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Malaysia7*Label, indication and official recommendations may vary by country. Always refer to the local product information for extended information on specific labels.

ThailandWe are part of Dengue Zero,a coalition of stakeholders
including local governments,
medical associations and theprivate sector to implement
a five-year roadmap forbetter dengue prevention andcontrol.

References
1 The ANMAT approved the use of the Takeda laboratory vaccine against dengue_3/21/2024_International/G (v1.0) - Argentina ANMAT approves dengue vaccine (p.1) The ANMAT approved the use of the Takeda laboratory
vaccine against dengue
2 Anvisa approves new vaccine against dengue_3/21/2024_International/Global (v1.0) - Brazilian government approves dengue vaccine (p.1) Anvisa approves new vaccine against dengue
3 Colombia_INVIMA_SPECIALIZED ROOM FOR NEW MOLECULES, NEW INDICATIONS AND BIOLOGICAL MEDICINES_3/21/20 (v0.1) - Qdenga decision (p.73)
4 Takeda’s QDENGA®▼ (Dengue Tetravalent Vaccine [Live, Attenuated]) Approved for Use in European Union (v0.1) - Qdenga approved by the EU (p.1) Takeda’s(Dengue Tetravalent Vaccine[Live, Attenuated]) Approved for Use inEuropean Union
5 Summary of European Union decisions on marketing authorisations_3/21/2024_International/Global (v0.1) - Qdenga approval (p.2)
6 Takeda’s QDENGA®▼ (Dengue Tetravalent Vaccine [Live, Attenuated]) Approved in Indonesia for Use_12/1 (v1.0) - Qdenga approval in Indonesia (p.1) Takeda’s QDENGA®▼ (Dengue Tetravalent Vaccine[Live, Attenuated])
Approved in Indonesia for Use Regardless of Prior Dengue Exposure
7 LIST OF PRODUCTS - PRODUCTS THAT HAVE BEEN APPROVED BY THE AUTHORITY FOR DRUG CONTROL (PBKD)_3/21/20 (v0.1) - Qdenga approval in Malaysia (p.1)
8 ThailandApproval_details of medicinal product [Details of Medicinal Product]_3/21/2024_International (v1.0) - Qdenga approval in Thailand (p.1)
9 UK Marketing Authorization for Qdenga_3/21/2024_International/Global (v0.1) - Qdenga approval in UK (p.1)
10 Vietnam QDENGA Approval_6/11/2024_International/Global (v0.1) - Takeda approval in Vietnam (p.7) Qdenga
11 Israel QDENGA Approval_6/11/2024_International/Global (v0.1) - QDENGA approval in Israel (p.1) DENGUE VIRUS SEROTYPE 1 (LIVE, ATTENUATED) , DENGUE VIRUS SEROTYPE 3 (LIVE, ATTENUATED) , DENGUE)VIRUS
SEROTYPE 4 (LIVE, ATTENUATED) , DENGU

Indonesia
We are in a joint coalition
with the Ministry of Healthand other organizations
to strengthen stakeholder
commitment to dengue
control by increasing publicawareness and encouraging
collective action to help
address the threat of dengue.

Norway5Thailand8
UK9
Vietnam10

Map is current as of June 2024.

C-ANPROM/INT/DENV/0687 6/24

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500 million. That’s the numberof physical pieces of productinformation Takeda sends out eachyear, from product summaries forhealth care providers to labels andpackaging leaflets for each of our
medicines and vaccines. In 2024,
QDENGA will be one of Takeda´s first
products to participate in an industry
partnership working to reduce thisnumber to zero.

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Leveraging digital technology
to support safety andenvironmental sustainability

For the QDENGA world stock keeping
unit (SKU), patient information
leaflets in multiple languages will behosted electronically by Takeda andaccessible via the PharmaLedger
Association’s electronic productinformation (ePI) web application.
As a result, fewer resources will be
used in packaging; reduced shipping
volume and weight will lower our
distribution-related GHG emissionsfor QDENGA.
Health care providers can accessthe web application and scan theserialized code on the pack of
product to find the most updated ePIleaflet in their preferred language.
The application will also warn theuser should the relevant product bepast its expiry date.
The project is part of PharmaLedger®,a global initiative and nonprofit
organization facilitating the creationof a Digital Trust Ecosystem in
Healthcare together with health carestakeholders.

SUP P O RTI N G DE N G U E CO N TR O L A N D P R E V E N TI O N

Looking ahead

The Dengue Case Repository represents a significant milestone in
our commitment to effectively manage dengue fever. This in-house
repository consolidates data from several sources — ​public and private,international, national and regional — ​offering a powerful platform foranalytics, collaboration and proactive management to map current
dengue risk. It can also help us predict future outbreaks using AI
models, positioning Takeda at the forefront of dengue fever control
efforts in the future.

The story of QDENGA is only
beginning. We are committed tocontinuing our work to accelerateaccess to those threatened by thedisease. We look forward to a day
when, through partnership andinnovation, dengue is no longer a
growing burden for the millions
impacted by it today.

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Wi th m ore th an 35 ye a r s ofexperience in gastroenterology,
Takeda has made significant strides
in addressing the unmet needs ofpatients living with Inflammatory
Bowel Disease (IBD) — ​with morehope on the way.

IBD: A life-disrupting
condition
Ask any of the approximately 6.8
million people living with IBD¹ andthey will likely tell you this incurable
chronic condition does more thancause abdominal pain. Beyond
physical challenges including
moderate to severe diarrhea andfatigue, IBD can lead to mental
and emotional impacts such as
anxiety, embarrassment, feelings ofisolation and depression that are
just as debilitating as the condition’s
physical affects.²

Over two decades of focus
and perseverance
2024 marks 10 years since theapproval of ENTYVIO® (vedolizumab).
When approved in 2014, ENTYVIO
was welcomed by health providers
as a new treatment option — ​and thefirst to be simultaneously approvedfor both ulcerative colitis and Crohn’sdisease in adult patients.
Since then, the biologic therapy
has achieved more than 1 million
patient years of treatment in over
70 countries. And in 2023, following
EU approval in 2020, a new option
became available to patients in the
United States and Japan — ​ENTYVIO
subcutaneous (SC) administration,a single-dose pre-filled pen that canbe self-administered at home. With
regulatory approval3 in more than
50 countries,4 ENTYVIO SC bringsa second option for maintenancetreatment for adults with moderate tosevere ulcerative colitis.

Ulcerative colitis and Crohn’s disease are two of
the most common forms of IBD. Both are chronic,
relapsing, remitting, inflammatory conditions of thegastrointestinal tract.
1 Alatab S, Sepanlou SG, Ikuta K, et al. The global, regional, and national burden of inflammatory bowel disease in 195 countries and territories, 1990–2017: asystematic analysis for the Global Burden of Disease Study 2017. Lancet Gastroenterol Hepatol. 2020;5(1):17-30. doi:10.1016/S2468-1253(19)30333-4.
2 Bisgaard, T.H., Allin, K.H., Keefer, L. et al. Depression and anxiety in inflammatory bowel disease: epidemiology, mechanisms and treatment. Nat Rev
Gastroenterol Hepatol 19, 717–726 (2022). https://doi.org/10.1038/s41575-022-00634-6.
3 ENTYVIO SC has been granted marketing authorization in the United States, European Union and more than 50 countries (ENTYVIO SC is not currently
approved for Crohn’s disease in the United States).
4 As of March 2024.

A LO O K B ACK AT T HE ROAD TO ENT YVI O AND ENT YVI O SCENTYVIO’s road to approval was noteasy. There were starts and stops
in its development and at times
it looked like the molecule might
not go forward. But in the end, its
champions persevered.

When the Phase 3 clinical trials
began, it was the largest IBD program
evaluating both ulcerative colitis andCrohn’s disease ever conducted, with
2,700 subjects enrolled across morethan 300 sites in 39 countries.

“ENTYVIO was like the little engine
that could,” remembers Mark Patti,
director, Clinical Operations, who wasinvolved in the development programfor ENTYVIO starting in 2006. “It’s atestament to what happens when you
believe in something and refuse togive up.”Mark remembers when ENTYVIO
was approved. “We were euphoric.
When you see and hear directly froma patient what their life is like livingwith one of these conditions, it’s areminder of why we do what we do,”said Mark. “That’s why I am still here 17
years later.”

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Easing the burden of IBD

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41TOP HON OR S
In April 2024, theInternational Society for
Pharmaceutical Engineering
awarded Takeda top honors
in the Operations category
with the 2024 Facility of theYear Award. We received thehonor for our efforts in Linz,
Austria, to reduce the process
performance qualification(PPQ) time for ENTYVIO
SC by 50% for our prefilled
syringe filling line. This willallow us to reduce the PPQ
timeline for new productionlines while further improving
supply chain resilience.

Supporting access andavailability globally
Part of our mission is working toensure broad access to ENTYVIO — ​particularly for patients inunderserved communities.
Despite rising incomes around thedeveloping world, affordability
remains a significant barrier toaccessing innovative medicines. The
most effective and sustainable way
to tackle this is through national
reimbursement programs, however,in some countries these systems cantake years to mature.
To bridge this gap, we have several
innovative approaches including
tiered pricing, which allows for priceadjustments relative to a country’s
income level and other factors;
value-based pricing, which responds
to payers’ and providers’ needs tomanage uncertainty; and patient

assistance programs (PAPs), which
help patients with limited means
obtain our innovative treatments.
Since 2020, through Takeda
affordability-based PAPs in 13 lowand middle-income countries andcountries with evolving health caresystems, we have provided access to
ENTYVIO to more than 1,800 patients
who otherwise would have been
unable to afford it.
Because barriers to access go beyond
affordability, we also collaborate withpublic and private sector partners tostrengthen health care systems. For
example, in 2023, we partnered with ahospital in Jakarta, Indonesia, to train
and educate health care providers
on IBD diagnosis, management
and patient support. The hospitalhas become the first IBD center inIndonesia, helping IBD patients in thecapital and surrounding area. Learn
more about our approach to accessto medicines.

Ensuring sustainable supply
with internal and external
partners
Ensuring our ability to supply
ENTYVIO has required significant
investment, like we did at our Hikarisite for ENTYVIO IV, and in Linz.
We manufacture ENTYVIO SC in
Linz, Austria, where we are investing
approximately €100 million to
expand production over the next
two years. This includes completinga new syringe production line,
which is expected to substantiallybenefit our global supply for
ENTYVIO. The site also supports
the assembly, packaging, functional
testing and release of pre-filled
syringes and pre-filled pens for
ENTYVIO SC, helping to support asustainable supply.

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As we expand production to meet growing patientdemand we also look for innovative ways to minimize
our environmental impact. At our Brooklyn Park site in
Minnesota, the U.S., recent achievements include chiller
optimization resulting in 189,000 kilowatt-hour (kWh) per
year energy savings and an optimized boiler make-up water
strategy that will save approximately 145,000 liters of fresh
water annually. For ENTYVIO SC, we introduced new multipack packaging. We estimate that this will reduce our use of
cartons by approximately 70% and leaflets by approximately
50% a year. In addition to conserving resources and reducing
waste this will also help reduce our carbon footprint.

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42Partnering with the IBD
community
Beyond the fundamental need for
effective treatment options, weunderstand that improving patients’
lives depends on recognizing theirneeds. This includes maintaining ahealthy diet and access to food thatis less likely to trigger IBD symptoms.
In 2023, we worked with renowned
chefs from the Hyatt Regency Tokyo
to design recipes that can be enjoyedeven by people living with IBD withdietary restrictions. They developed arange of home-delivery meals called“Party Plates with IBD Patients,”
carefully crafted with the guidance ofa dietitian specializing in IBD.

WA L K I N G I N TH E I R S H O E S

Looking ahead

Living with IBD can be hard to understand without experiencing it.
That’s why Takeda created In Their Shoes, an immersive two-day
simulation in which the participants “become the patient” andexperience what it is like to live with IBD. To experience first-handthe challenges of IBD patients, the chefs of Hyatt Regency Tokyo
participated in the program when we partnered for developing theparty plates.

While current treatments are easing
the burden of IBD for millions ofpeople around the world, we won’t
stop innovating. As long as unmet
need remains, our researchers willcontinue their efforts to explore
new treatments and combinationsof medicines to better manage
IBD. We are also pushing theboundaries in other areas like chronic
pouchitis where there is a significant
unmet need.

“We realized that the restrictions faced by many IBD patients are
more challenging than we initially thought, both physically andmentally,” said Shozo Okamoto, head chef, Hyatt Regency Tokyo.
Katsuaki Hoshino, event kitchen chef, Hyatt Regency Tokyo, added,“Some dishes ended up being quite different from the initial vision.
But through trial and error, we successfully created delicious meals
that add diversity and color to the dining tables and lives of IBD
patients.”“Our work isn’t done yet. We’ll behere for patients for the long haul
until the needs of all IBD patients aremet,” said Shashi Adsul, head of our
Global Medical Lead, ENTYVIO.

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Global Cuisine: “Party Plate with IBD Patients”
is a low-fat option developed for IBD patientsin Japan who have difficulty eating due todietary restrictions. A meal with less fiber andother irritants, it provides a new option for IBD
patients. Takeda teamed with culinary experts
throughout the world to create similar recipes
including in China.

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Mee tin g th e n e e ds of patients
doesn’t end with the discovery
of a life-transforming medicine
or vaccine. Our manufacturing
teams across the world work 24/7
to make sure patients can get thehigh-quality treatments they need,when they need them. In 2023, twoof our sites marked 70 years ofservice — ​to patients, employees andthe community.

Old and new come together
When you visit our manufacturing
sites in Los Angeles, USA, or Vienna,
Austria, you don’t feel like you areentering sites established sevendecades ago — ​a time when Jonas
Salk was developing the first polio
vaccine and color television sets werea novelty.

But one thing that has not changed,
in all this time, is the focus at bothsites on delivering uninterrupted
supply of high-quality medicines.

Making a difference“We know that patients rely on us,
including many who have no othertreatment options than what we
produce right here,” says Maria
Löflund, Vienna site head. “We have a
critical mission that we are privileged
to carry out — h​ elping people live a
better life.”

A call to Vienna’s Supply Chain teamfrom a hospital in Ireland brought thismission home. A 12-year-old patient
was on infusion with sepsis, a serious
condition in which the body responds
improperly to an infection. The
hospital needed CEPROTIN quickly tosave the child’s life.
CEPROTIN is a plasma-derived
therapy (PDT) manufactured andpackaged by Takeda in Vienna.
It’s used for the treatment of theultra-rare disorder involving severecongenital protein C deficiency.
When time is critical, as in this case,
the Vienna site can deliver whatregulatory agencies refer to as “lifesaving shipments.”“We have a critical mission that we are privileged
to carry out — ​helping people live a better life.”
MARIA LÖFLUND
Site Head, Vienna

43

The buildings are filled with state-ofthe-art technology and equipment.
Production operators wear virtual
reality headsets. Augmented reality
and robots help engineers carry out
routine tasks, while drones validatethat tanks used in production areclean. And outside, photovoltaic
panels generate renewable energy.

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70 years of serving
community andglobal needs

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Vienna team sprang into rapid
response mode immediately. And
a process that usually takes several
weeks took just a few days. This
helped ensure the patient made acomplete recovery.
CEPROTIN is just one of morethan 20 medicines produced in
Vienna. This includes 17 PDTs, which
are among the most challenging
medicines to produce worldwide.
The production process for these
therapies can take up to seven to
12 months, starting from the timeof plasma collection to availability.
Vienna is helping Takeda meet thegrowing demand for these lifetransforming therapies.
“When I started work at Vienna, weprocessed approximately 6,000 litersof plasma a week,” said LambertPetz, People Development program
manager, who joined as a chemicallaboratory worker in 1978. “Now
it’s more than 10,000 liters everyday. It’s a great honor to have beenpart of that growth, and to beable to contribute to the health of
more patients.”“It’s a great honor to have beenpart of [our] growth, and to beable to contribute to the healthof more patients.”
LAMBERT P ETZ
People Development Program Manager

44

TAKEDA 2 024 ANNUAL I NT E GRAT E D RE P ORTI N TR OD U C TI O NWhen they got the call, theLargest production site
within Takeda

140,000
square meters

VIENNA
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24

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Our Vienna site is also home
to our Global Pathogen Safety(GPS) team in our Global Quality
organization, which plays a criticalrole in protecting patient safety. The
GPS laboratory is vital to keeping
biological medicinal products,
such as plasma- and cell culturederived therapies, safe from virustransmission.
During the development of any new
Takeda PDT or biologics product,such as a vaccine, the lab works
closely with our research andmanufacturing teams. They develop
processes to detect and then toinactivate or remove any viruses orpathogen that might be in the plasma
or biologic materials manufactured
into the product. Through rigorous
testing, they validate the production
process to achieve high safetymargins — ​a critical requirement for
regulatory approval. For Takeda’s
biological medicines, each lot
produced anywhere in the global
Takeda network is tested in the
Vienna lab.

that the existing production process
will inactivate or remove the threat.
For example, when the COVID-19
virus first appeared in 2019, the lab
conducted tests with the virus toensure there was no risk to patient
safety when using our products.
“There are patients whose
safety depends on what we dohere — ​especially those withimmunodeficiencies,” says Thomas R.
Kreil, global head of Pathogen
Safety. “Our work gives them peaceof mind.”Protecting employee safety
The lab’s 70-person team works
with some of the most potent live
viruses in the world. To protect theirsafety, employees work in a secure
biocontainment level 3 lab, which
provides rigorous safety measures
such as negative air pressure to theenvironment, full gowning and highly
efficient particle filtration of air
supplies to keep all team members,
as well as the environment, safe.

“There are patients whose safety depends
on what we do here — especially those withimmunodeficiencies. Our work gives thempeace of mind.”
T H O MAS R. KRE I L
Global Head of Pathogen Safety45

But it doesn’t stop there. When a newvirus emerges anywhere in the world,
the team conducts tests to confirm

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Keeping biological medicines
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I N TR OD U C TI O NEvgenia “Evi” Guenova found her
way to Takeda through MyAbility, aprogram for people with disabilities
to meet and interview withcompanies around Vienna. As aperson profoundly hard of hearing,she became interested in joining
Takeda after learning about its
commitment to creating an inclusive
work environment. She quickly found
her team took that commitment
to heart.
“Even though my supervisor andcolleagues had never been exposed
to someone with hearing loss, they
adapted really fast,” she recalls. “Wewere both patient and understanding
with each other, so we were able todevelop a good symbiosis. My lovely
and funny colleagues are now myfavorite part of my job.”
Evi, a microbiology lab technician,also joined a TRG called EnAbles.
Through the group, she meets oncea month with other colleagues withdisabilities to share their experiences
and ideas to enhance the work
environment at Takeda.
“I realized Takeda’s philosophy is
to always look for ways to improvethings, not only for its businessbut for humanity,” she says. “Theyshow interest in diversity and makethe effort to listen to us and makepermanent improvements.”

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“Thank you for your part in bringing
hope and healing to families
like ours,” was the message siteleadership received from a parent.
They were talking about BabyBIG®
[Botulism Immune Globulin
Intravenous (Human)], produced by
Takeda through a unique not-forprofit partnership with BabyBIG’s
sponsor and license-holder, California
Department of Public Health (CDPH).

LOS ANGELES
California, USA

138,000

BabyBIG is the only US
FDA-approved treatment for patientswith the life-threatening disease,infant botulism caused by botulinum
toxin type A and type B. There areapproximately 150–180 cases of
infant botulism in the United Stateseach year. To meet this need, we
produce one lot of BabyBIG at ourLos Angeles site only once every five
years. The CDPH distributes BabyBIG
nationwide on a not-for-profit basis,
and we produce it at a no-profit cost.
Since 2003, more than 2,100 infant
botulism patients in the United States
have received BabyBIG, resulting
in an aggregate of over 128 yearsof avoided hospital stays and morethan $174 million of avoided hospitalcharges. On average, infant botulism
patients treated with BabyBIG havean approximately 3.5-week reduction
in times spent in the hospital,
resulting in over $94,000 in avoided
hospital costs per patient.

square meters

7

products for patients in>75 countries

R EF L EC TI N G O N L I F E AT TA K E DA I N LOS A N G E L E S“As I look back, thesite has always been
about improving,always testing. We
never stop changing
and improving.”
RO B E RT C LAY TO N
Senior Supply Chain Specialist(Has worked at site for over 38 years)

1 Infant Botulism Treatment and Prevention Program.

47“It’s been an absolute
blast here. It is likefamily. I cannot thinkof a better place
for me.”K E V I N T I P P ENS
Manufacturing Technician(Has worked at the site for almost 40 years)

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The Los Angeles site is also making
a difference.

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As both sites have grown, they havedone so with a focus on protecting
the environment around them.
“Our focus is to deliver the maximum
amount of product to our patientsworldwide with minimal impact on
our environment,” said Christian Bugl,
head of Environment, Health and
Safety, and Ethics and Compliancein Vienna.
Vienna has also played a leading rolein our efforts to conserve resources.
Since 2007, it has operated using
100% renewable energy and has
more than 50 initiatives underway to
reduce energy, water and waste.
Collaboration is critical to its
progress. This includes a publicprivate partnership to develop
a ground-breaking process thatwould replace carbon-intensive
natural gas with steam-generatingheat pumps, helping to reduce
GHG emissions. Together with theresearch institute AIT (Austrian
Institute of Technology) and heatpump manufacturer Sustainable
Process Heat GmbH, the innovation
will mark the first time thatnatural gas-free, steam-generatingheat pumps using 100% naturalrefrigerants will be integrated
into industrial operation when in
use at our site. The collaboration
was recognized in 2023 with the
Net-Zero Industries Award National
Winner Austria at COP28 in Dubai.

Our Los Angeles site is also making
progress. In 2023, it launched the useof fuel cells, solar power and energy
storage using battery packs.
We also prioritize water conservation
at the site, which is in an area ofhigh-risk for water scarcity according
to the World Resources Institute
Aqueduct tool. The site has reduced
its fresh water use by 14 million
liters per year — equivalent to theamount of fresh water used by 55 Los
Angeles homes annually — throughrecycled wastewater by a reversed
osmosis process to cooling towers. In
2023, in recognition for our efforts,
the Los Angeles Department of
Water and Power awarded the site
its top leadership award for water
management and conservancy.

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Collaborating to reduce
emissions and water usage“We are stewards of this site,” said
Angelica Nava, head of Environment,
Health and Safety in Los Angeles.
“Previous generations have helped
ensure resources are available forthe medicines we make here today,
and we’re doing the same for future
generations to come.”

Looking to the future
A lot has happened in 70 years, andboth sites continue to play importantroles — providing innovative
medicines that have helped save
lives, empowering employees tobuild meaningful and rewarding
careers, and helping to conserve
local resources for the future.

“Our journey over the past 70 years has been shaped byour unwavering commitment to the health and well-beingof patients. It is this commitment that sustains us as we
continue to evolve and adapt to deliver on our promise.”B A B A K H AG H I R I
Site Head, Los Angeles

I N TR OD U C TI O N

CORP ORAT E P HI LOS OP HY

VALU E C RE AT I ON

FI NANC I AL PERFORMANC E

TAKEDA 2 024 ANNUAL I NT E GRAT E D RE P ORT

49

Financial
Performance

AP P E N D I X

In fiscal year 2023, Takeda delivered
total revenue of 4,263.8 billion yen(US$28.2 billion¹), with growth of+1.5% on a constant exchange rate
(CER) basis. Core Operating Proft
declined 13.3% on a CER basis to1,054.9 billion yen (US$7.0 billion¹),
reflecting the Loss of Exclusivity(LOE) impact of high-margin
products, FX headwinds, and ourcontinued investment in R&D anddata, digital and technology (DD&T).
Core EPS declined 15.7% on a CER
basis to 484 yen per share.

CORP ORATE P HI LOSO PH Y

VALU E C RE AT I ON

Financial Performance

Free cash flow was 283.4 billion
yen, reflecting the decline in Core
Operating Profit, litigation-related
payment, and investment in businessdevelopment. Net-debt-to-adjusted
EBITDA was 3.1x as of March 31, 2024.

R E S U LTS FO R F I S C A L Y EAR 2023
(Billion yen, except percentage and per share amounts)
FY2 02 2

FY2 02 3

IFR S METR ICS

C H A N G E VS . PR IO R YE A R
Actual % change

CER % change5

4,263.8

+5.9%

+1.5%

Revenue

4,027.5

Operating Profit

490.5

214.1

-56.4%-50.3%

Margin

12.2%

5.0%

-7.2pp-6.2ppNet Profit

317.0

144.1

-54.6%-57.0%

EPS

204

92

-54.9%-57.3%

Core Revenue

4,027.5

4,263.8

+5.9%

+1.5%

Core Operating Profit

1,188.4

1,054.9-11.2%-13.3%

Margin

29.5%

24.7%

-4.8pp-4.3ppCore Net Profit

866.4

756.8

-12.6%-15.0%

558

484-13.4%-15.7%

Operating Cash Flow

977.2

716.3

-26.7%

Free Cash Flow4

446.2

283.4

-36.5%

Dividend per share

180

188

+4.4%

Net debt (cash)

3,716.1

4,091.3

Adjusted EBITDA (last 12 months)

1,421.8

1,319.9

Net debt/Adjusted EBITDA ratio

2.6x

3.1x

N O N - I F R S 2,3Core EPSCASH FLOWS A N D DIVID EN DS

I N TR OD U C TI O N

LEVER AGE METR ICS

See page 53 for footnotes.

50

A key driver for our revenue
growth was the continued strong
performance of our Growth & Launch
Products (refer to page 51 formore information). These products
represented 43% of total revenue andgrew at +12.8% year over year at CER,
mitigating the significant impact of
LOE including generic competition
for VYVANSE® (lisdexamfetamine
dimesylate) in the United States and
AZILVA® (azilsartan) in Japan.

TAKEDA 2 024 ANNUAL I NT E GRAT E D RE P ORT

FI NANC I AL PERFORMANC E

AP P E N D I X

TAK EDA’S FISCAL YEA R 2 02 3

AP P E N D I X

Our Growth & Launch Products
generated sales of 1,833.0 billion yen
in fiscal year 2023, or 43% of totalcompany revenue.
This represents year-over-year
growth of +297.1 billion yen, or +12.8%
on a CER basis.

BUSINESS
AREAGastroenterology (GI)VALU E C RE AT I ON

Rare Diseases

CORP ORATE P HI LOSO PH Y

PDT immunology

I N TR OD U C TI O N

Oncology

Other

See page 53 for footnotes.

51

GROWTH &LAUNCHPRODUCTSREVENUE(BN JPY)

CER% CHANGE5

Moderate to severe ulcerative colitis or
Crohn’s disease

800.9

+6.6%

Refractory complex perianal fistulas with
Crohn’s disease

3.5+18.2%

Eosinophilic esophagitis

0.2

New Launch

Prevention of hereditary angioedema
attacks

178.7+11.6%

Post-transplant CMV infection (refractory,
with or without resistance)

19.1+68.7%

Congenital thrombotic thrombocytopenic
purpuraNot Disclosed

New LaunchPrimary and secondary immunodeficiencies
and multifocal motor neuropathy

644.6+16.8%

Hypovolemia, hypoalbuminemia, for use
during cardiopulmonary bypass surgery, andhemolytic disease of the newborn

134.0

+5.9%

ALK-positive non-small cell lung cancer

28.5+35.3%

Previously treated non-small cell lung cancer
with EGFR exon 20 insertions

3.5-10.9%

Metastatic colorectal cancer

10.1

New Launch

Prevention of dengue disease

9.6+9,832.1%

I N D I C AT I O N

TAKEDA 2 024 ANNUAL I NT E GRAT E D RE P ORT

FI NANC I AL PERFORMANC E

Growth & Launch Products

AP P E N D I X
FI NANC I AL PERFORMANC E
VALU E C RE AT I ON
CORP ORATE P HI LOSO PH Y

We expect fiscal year 2024 to be thefinal year of significant headwind fromthe loss of high-margin VYVANSE togeneric erosion in the United States.
Continued momentum of our Growth& Launch Products, with doubledigit percentage growth at CER
expected in fiscal year 2024, should
largely alleviate this headwind. On
a CER basis, we expect our revenue
to remain flat or decline slightly with
Core Operating Profit to decline byapproximately 10%, and Core EPS to
decline in the mid-10s%.
We expect to have up to six pipeline
assets in Phase 3 development infiscal year 2024 that together havethe potential to generate significant
value. While we plan to increase our
R&D budget moderately in fiscal year
2024, rigorous prioritization will allow
us to contain our R&D budget increase
while developing these late-stage
programs. Although we are guiding
for fiscal year 2024 to be another yearof profit decline, we are positioned fora return to revenue and profit growthfrom fiscal year 2025.
See page 53 for footnotes.

52

O U TLO O K FO R F I S C A L Y E A R 2 024(Billion yen, except percentage and per share amounts)
RE S U LTS
F Y 2 02 3

FO R E C AST
FY2 024C H A N G E VS .
PR IO R YE A R

FY2 024 M A N AG E M E N T G U IDA N C E
C H A N G E AT C E R 5

4,263.8

4,350.0+86.2

Operating Profit

214.1

225.0

+10.9

+5.1%

Net Profit

144.1

58.0

-86.1

-59.7%EPS (yen)

92

37

-55

-60.1%

Core Revenue

4,263.8

4,350.0

+86.2

+2.0%

Flat to slightly declining

Core Operating Profit

1,054.9

1,000.0

-54.9

-5.2%

Approximately 10% decline

484

431

-53

-10.9%

Mid-10s% decline

283.4

350.0–450.0

188

196

+8

+4.3%

IFR S METR ICS

Revenue+2.0%

NON-IFRS2,3Core EPSCASH FLOWS A N D DIVIDEN DS

Adjusted Free Cash Flow4
Dividend per share

TAKEDA 2 024 ANNUAL I NT E GRAT E D RE P ORTI N TR OD U C TI O N

Positioned for return to revenue
and profit growth from FY2025

AP P E N D I X
FI NANC I AL PERFORMANC E
VALU E C RE AT I ON
CORP ORATE P HI LOSO PH Y

From fiscal year 2025, we anticipate
a return to revenue growth driven by
our Growth & Launch Products, withlimited LOE exposure until the early2030s. The new efficiency program
will free up resources to invest
in growth opportunities such asadvancing the pipeline, new productlaunches, and continuing to build our
DD&T capabilities, and will support us
in delivering 100 to 250 basis pointsof Core Operating Profit margin
improvement each year towards ourtarget of low-to-mid 30s%.

Guided by our vision to discover anddeliver life-transforming treatments,
and with a focus on maintaining
solid investment grade credit ratings,
we will allocate capital to deliver
sustainable value to patients while
delivering attractive returns to ourshareholders. In alignment with
our progressive dividend policy
and reflecting confidence in our
long-term growth outlook and cash
flow generation, we plan to raise ourdividend from 188 yen to 196 yen per
share in fiscal year 2024.

P OS I TI O N E D FO R R E TURN TO REVENUE AND PRO FI T GROWT H FRO M
F Y 2 02 5 W I TH E F F I C I ENCY PRO GRAM TO D ELI VER M ARGI N EXPANSI O N
FY2024 expected to be final year of significant headwind of VYVANSE Loss of Exclusivity in the U.S.

Return to Sustainable
Revenue Growth

Advance Pipeline with
Rigorous Prioritization

Drive Efficiencies to
Improve Margins

Deliver Attractive
Returns to Shareholders

Growth & Launch Products
expected to represent~50% of revenue in FY2024
with double-digit %growth at CER

Prioritizing pipeline to invest
in 6 late-stage assets thattogether have potential togenerate significant value

Deliver 100-250bps
Core Operating Profit
margin improvement eachyear from FY2025 towards
low-to-mid 30s % target

Strong cashflow outlook
underpins proposed
dividend increase to 196
yen per share in FY2024

Limited LOE exposure
after VYVANSE until
early 2030s**	Major products expected to face generic/biosimilar competition between FY2024–2029 total less than 10% of FY2023 revenue:
Gattex U.S. (FY26), Trintellix U.S. (FY26), Vectibix JP (FY26), Vyvanse EU (FY28), Livtencity U.S. (FY28), Ninlaro U.S. (FY29)
Note: Margin improvement target assumes constant FX rate

Footnotes
1 Convenience translations have been made at an exchange rate of 1USD = 151.22 JPY.
2 Further information regarding certain of Takeda’s Non-IFRS measures is posted on Takeda’s investor relations website.
3 Core results adjust our reported results calculated and presented pursuant to IFRS to exclude the effect of items unrelated to Takeda’s core operations, such as, to the extent applicable for each line item, non-recurring items, purchase accounting effects and transaction related costs, as well as
amortization and impairment of intangible assets and other operating income and expenses and the tax effect of each of the adjustments.
4 We define Free Cash Flow as cash flows from operating activities, subtracting acquisition of property, plant and equipment (“PP&E”), intangible assets and investments as well as removing any other cash that is not available to Takeda’s immediate or general business use, and adding proceedsfrom sales of PP&E, as well as from sales of investments and businesses, net of cash and cash equivalents divested. Free cash flow is a non-IFRS financial measure. Starting from the quarter Ending June 30, 2024, we will i) change the title of Free Cash Flow as currently represented to “Adjusted
Free Cash Flow” and ii) report “Free Cash Flow” as cash flows from operating activities less acquisition of PP&E. This change is intended to enhance the comparability of our Free Cash Flow disclosures to those of our peers and to better describe the nature of these measures as presented
by Takeda.
5 CER (constant exchange rate) change eliminates the effect of foreign exchange rates from year-over-year comparisons by translating Reported or Core results for the current period using corresponding exchange rates in the same period of the previous fiscal year. Starting from the quarter
ending June 30, 2024, we will cease adjustments for CER change for the results of operations of subsidiaries in countries experiencing hyperinflation and for which IAS29, Financial Reporting in Hyperinflation Economies, is applied, because of the increased impacts of hyperinflation in thecalculation of CER change using corresponding exchange rates in the same period of the previous fiscal year, effectively keeping CER change for these subsidiaries unchanged from those reported with IAS29.

53

TAKEDA 2 024 ANNUAL I NT E GRAT E D RE P ORTI N TR OD U C TI O N

Beginning in fiscal year 2024, weare implementing an enterprisewide efficiency program focused onorganizational agility, procurementsavings, and capitalizing on our
ongoing investment in data, digitaland technology. We anticipate 140
billion yen in restructuring costs thisyear primarily related to this programwith some additional, lower costs inthe next couple of years.

AP P E N D IX
FINANC IAL PERFORMANC E
VALU E C RE AT I ON
CORP ORATE P HI LOSO PH Y
I N TR OD U C TI O NLegal disclaimer
Important Notice
For the purposes of this notice,“report” means this document, any
oral presentation, any question andanswer session and any written ororal material discussed or distributedby Takeda Pharmaceutical Company
Limited (“Takeda”) regarding thisreport. This report (including any
oral briefing and any question-andanswer in connection with it) is notintended 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 orotherwise dispose of, any securitiesor 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 report. 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 report 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 othertransaction). Any failure to comply
with these restrictions may constitutea violation of applicable securities
laws. The companies in which
Takeda directly and indirectly owns
investments are separate entities. In
this report, “Takeda” is sometimes
used for convenience wherereferences are made to Takeda andits subsidiaries in general. Likewise,
the words “we”, “us” and “our” arealso used to refer to subsidiaries ingeneral or to those who work forthem. These expressions are also
used where no useful purpose isserved by identifying the particularcompany or companies. The productnames appearing in this document
are trademarks or registeredtrademarks owned by Takeda, or theirrespective owners.

This report and any materials
distributed in connection withthis report may contain forwardlooking statements, beliefs or
opinions regarding Takeda’s futurebusiness, future position and resultsof operations, including estimates,
forecasts, targets and plans for
Takeda. Without limitation, forwardlooking statements often include
words such as “targets,” “plans,”“believes,” “hopes,” “continues,”“expects,” “aims,” “intends,”“ensures,” “will,” “may,” “should,”“would,” “could,” “anticipates,”“estimates,” “projects,” “forecasts,”“outlook” or similar expressions or
the negative thereof. These forwardlooking statements are based onassumptions about many importantfactors, including the following,
which could cause actual results
to differ materially from thoseexpressed or implied by the forwardlooking statements: the economic
circumstances surrounding Takeda’s
global business, including general
economic conditions in Japan andthe United States; competitive
pressures and developments;changes to applicable laws andregulations; challenges inherent in
new product development, including
uncertainty of clinical success anddecisions of regulatory authorities
and the timing thereof; uncertainty
of commercial success for new andexisting products; manufacturing
difficulties or delays; fluctuationsin interest and currency exchange
rates; claims or concerns regarding
the safety or efficacy of marketed
products or product candidates; theimpact of health crises, like the novel
coronavirus pandemic; the successof our environmental sustainability
efforts, in enabling us to reduce
our greenhouse gas emissions ormeet our other environmental goals;
the extent to which our efforts toincrease efficiency, productivity or
cost-savings, such as the integrationof digital technologies, including
artificial intelligence, in our businessor other initiatives to restructure
our operations will lead to the
expected benefits; and other factors
identified 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/sec-filings/ or at www.sec.
gov. Takeda does not undertake toupdate any of the forward-looking
statements contained in this report orany otherforward-looking statements
it may make, except as required bylaw or stock exchange rule. Past
performance is not an indicatorof future results and the results orstatements of Takeda in this report
may not be indicative of, and are notan estimate, forecast, guarantee or
projection of Takeda’s future results.

TAKEDA 2 024 ANNUAL I NT E GRAT E D RE P ORT

54

Appendix

Forward-Looking Statements

AP P E N D IX
FINANC IAL PERFORMANC E
VALU E C RE AT I ON
CORP ORATE P HI LOSO PH Y
I N TR OD U C TI O N

Takeda’s financial statements
are prepared in accordance with
International Financial ReportingStandards (“IFRS”). This report andmaterials distributed in connection
with this report include certain
financial measures not presented
in accordance with IFRS, such asCore Revenue, Core Operating
Profit, Core Net Profit, Core EPS,
Constant Exchange Rate (“CER”)
change, Net Debt, EBITDA, Adjusted
EBITDA and Free Cash Flow. Takeda’s
management evaluates results andmakes operating and investment
decisions using both IFRS andnon-IFRS measures included in thisreport. These non-IFRS measures
exclude certain income, cost and cash
flow items which are included in, orare calculated differently from, themost closely comparable measurespresented in accordance with IFRS.
Takeda’s non-IFRS measures are notprepared 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 thedefinitions and reconciliations of
non-IFRS financial measures totheir most directly comparable IFRS
measures. Beginning in the quarter
ending June 30, 2024, Takeda will(i) change its methodology for CER
adjustments to results of subsidiaries
in hyperinflation countries to present
those results in a manner consistent
with IAS 29, Financial Reporting inHyperinflation Economies, and (ii)re-name Free Cash Flow as currently
calculated as “Adjusted Free CashFlow” (with “Free Cash Flow” to bereported as Operating Cash Flow less
Property, Plant and Equipment).
The usefulness of Core Financial
Measures to investors has significant
limitations including, but not limitedto, (i) they are not necessarily
identical to similarly titled measuresused by other companies, including
those in the pharmaceuticalindustry, (ii) they exclude financial
information and events, such as theeffects of non-cash expenses suchas dispositions or amortization of
intangible assets, that some may
consider important in evaluating
Takeda’s performance, value orprospects for the future, (iii) theyexclude items or types of items that
may continue to occur from period
to period in the future (however, it
is Takeda’s policy not to adjust out
normal, recurring cash operating
expenses necessary to operate ourbusiness) and (iv) they may notinclude all items which investors
may consider important to anunderstanding of our results ofoperations, or exclude all items whichinvestors may not consider to be so.

Exchange Rates

Medical information

In this report, certain amounts
presented in Japanese yen havebeen translated to US dollars solely
for the convenience of the reader.
Except where otherwise noted, theseconvenience translations have been
made at an exchange rate of 1USD
= 151.22 JPY, the Noon Buying Ratecertified by the Federal Reserve Bankof New York on March 29, 2024. The
rate and methodologies used forthese convenience translations differ
from the currency exchange rates andtranslation methodologies under IFRS
used for the preparation of Takeda’s
consolidated financial statements.
These translations should not be
construed as a representation thatthe relevant Japanese yen amounts
could be converted into U.S. dollars
at this or any other rate.

This report contains information
about products that may not be
available in all countries, or may beavailable under different trademarks,
for different indications, in different
dosages, or in different strengths.
Nothing contained herein should beconsidered a solicitation, promotion
or advertisement for any prescription
drugs including the ones underdevelopment.
TAKEDA 2 024 ANNUAL I NT E GRAT E D RE P ORT

55

Financial Information andCertain Non-IFRS Financial
Measures

AP P E N D IX
FINANC IAL PERFORMANC E
VALU E C RE AT I ON
CORP ORATE P HI LOSO PH Y
I N TR OD U C TI O NDefinition of Core Financial
Measures, Constant Exchange
Rate change, and Free Cash
Flow
Core Revenue represents
revenue adjusted to exclude
significant revenue items
unrelated to the underlying
trends and business performanceof Takeda’s core operations.
Core Operating Profit represents
operating profit adjusted to exclude
other operating expenses andincome, amortization and impairment
losses on acquired intangible
assets and other noncash items or
items unrelated to the underlying
trends and business performanceof Takeda’s core operations.
Core EPS represents net profit
adjusted to exclude the impact ofitems excluded in the calculationof Core Operating Profit, and othernon-operating items (e.g. amongst
other items, fair value adjustments
and the imputed financial charge
related to contingent consideration)that are unusual, non-recurring in
nature or unrelated to the underlying
trends and business performance ofTakeda’s ongoing operations and thetax effect of each of the adjustments,
divided by the average outstanding
shares (excluding treasury shares)of the reporting periods presented.

Constant Exchange Rate (CER)change eliminates the effect offoreign exchange rates from yearover-year comparisons by translating
Reported or Core results for thecurrent period using corresponding
exchange rates in the same periodof the previous fiscal year. Startingfrom the quarter ending June 30,
2024, we will cease adjustments
for CER change for the results ofoperations of subsidiaries in countries
experiencing hyperinflation and forwhich IAS29, Financial Reportingin Hyperinflation Economies, isapplied, because of the increased
impacts of hyperinflation in thecalculation of CER change using
corresponding exchange rates in thesame period of the previous fiscal
year, effectively keeping CER change
for these subsidiaries unchanged
from those reported with IAS29.
We present Free Cash Flow because
we believe that this measure is useful
to investors as similar measuresof liquidity are frequently usedby securities analysts, investors
and other interested parties inthe evaluation of companies in
our industry. Free Cash Flow isalso used by our management toevaluate our liquidity and our cash
flows, particularly as they relate
to our ability to meet our liquidity
requirements and to support ourcapital allocation policies. We also

believe that Free Cash Flow is
helpful to investors in understanding
how our strategic acquisitions anddivestitures of businesses contributeto the cash flows and liquidity.
We define Free Cash Flow as cash
flows from operating activities,
subtracting acquisition of property,
plant and equipment (“PP&E”),
intangible assets and investments
as well as removing any other cashthat is not available to Takeda’s
immediate or general business use,
and adding proceeds from salesof PP&E, as well as from sales ofinvestments and businesses, net ofcash and cash equivalents divested.
The usefulness of Free Cash Flow toinvestors has significant limitations
including, but not limited to, (i) it may
not be comparable to similarly titledmeasures used by other companies,
including those in our industry, (ii)
it does not reflect the effect of ourcurrent and future contractual andother commitments requiring the useor allocation of capital and (iii) the
addition of proceeds from sales andredemption of investments and theproceeds from sales of business, netof cash and cash equivalents divested
do not represent cash received fromour core ongoing operations. Free
Cash Flow should not be considered
in isolation and is not, and should
not be viewed as, a substitute forcash flows from operating activities
or any other measure of liquidity
presented in accordance with IFRS.
The most directly comparable
measure under IFRS for Free Cash
Flow is net cash from operating
activities. Starting from the quarter
ending June 30, 2024, we will i)change the title of Free Cash Flow as
currently represented to “Adjusted
Free Cash Flow” and ii) report “FreeCash Flow” as cash flows fromoperating activities less acquisitionof PP&E. This change is intended
to enhance the comparability of
our Free Cash Flow disclosures tothose of our peers and to better
describe the nature of thesemeasures as presented by Takeda.

Definition of EBITDA/
Adjusted EBITDA and Net
Debt
We present EBITDA and Adjusted
EBITDA because we believe thatthese measures are useful toinvestors as they are frequently
used by securities analysts, investors
and other interested parties inthe evaluation of companies in
our industry. We further believethat Adjusted EBITDA is helpful toinvestors in identifying trends in its
business that could otherwise be
obscured by certain items unrelated
to ongoing operations because they
are highly variable, difficult to predict,

TAKEDA 2 024 ANNUAL I NT E GRAT E D RE P ORT

56

Financial definitions

AP P E N D IX
FINANC IAL PERFORMANC E
VALU E C RE AT I ON
CORP ORATE P HI LOSO PH Y
I N TR OD U C TI O N

EBITDA and Adjusted EBITDA should
not be considered in isolation orconstrued as alternatives to operating
income, net profit for the year or
any other measure of performance
presented in accordance with IFRS.
These non-IFRS measures may
not be comparable to similarlytitled measures presented byother companies.
The usefulness of EBITDA and
Adjusted EBITDA to investors has
limitations including, but not limitedto, (i) they may not be comparable
to similarly titled measures used byother companies, including thosein our industry, (ii) they exclude
financial information and events,
such as the effects of an acquisitionor amortization of intangible assets,that some may consider importantin evaluating our performance, value
or prospects for the future, (iii) theyexclude items or types of items that
may continue to occur from period toperiod in the future and (iv) they may
not exclude all items which investors
may consider to be unrelated to
our long-term operations. These
non-IFRS measures are not, andshould not be viewed as, substitutes
for IFRS reported net income (loss).
We encourage investors to review
our historical financial statements intheir entirety and caution investors
to use IFRS measures as the primarymeans of evaluating our performance,
value and prospects for the future,and EBITDA and Adjusted EBITDA as
supplemental measures.
We define EBITDA as consolidated
net profit before income tax
expenses, depreciation andamortization and net interest
expense. We define Adjusted
EBITDA as EBITDA further adjusted
to exclude impairment losses, otheroperating income and expenses(excluding depreciation andamortization), finance income andexpenses (excluding net interest
expense), our share of loss frominvestments accounted for under theequity method and other items thatmanagement believes are unrelated
to our core operations such aspurchase accounting effects andtransaction related costs.
The most closely comparable
measure presented in accordancewith IFRS is net profit for the period.
Please refer to Net Profit to Adjusted
EBITDA Bridge for a reconciliation
to the respective most closelycomparable measures presented inaccordance with IFRS.
We present Net Debt because webelieve that it is useful to investors
in that our management uses
it to monitor and evaluate ourindebtedness, net of cash and cash
equivalents, and, in conjunction
with Adjusted EBITDA, to monitor
our leverage. We also believe thatsimilar measures of indebtedness are
frequently used by securities analysts,
investors and other interested parties

in the evaluation of companies in
our industry.
We define Net Debt first by
calculating the sum of the current
and non-current portions ofbonds and loans as shown on ourconsolidated statement of financial
position, which is then adjusted
to reflect (i) the use of prior
12-month average exchange rates
for non-JPY debt outstanding at
the beginning of the period and theuse of relevant spot rates for new
non-JPY debt incurred and existing
non-JPY debt redeemed during thereporting period, which reflects themethodology our management uses
to monitor our leverage, and (ii) a
50% equity credit applied to ouraggregate principal amount of JPY
500.0 billion hybrid (subordinated)bonds issued in June 2019 by S&P
Global Rating Japan in recognitionof the equity-like features of thosebonds pursuant to such agency’s
ratings methodology. To calculate
Net Debt, we deduct from this figure
cash & cash equivalents, excluding
cash temporarily held by Takeda
on behalf of third parties related tovaccine operations and to the tradereceivables sales program, and debt
investments classified as Level 1 in thefair value hierarchy being recorded as
Other Financial Assets.
The usefulness of Net Debt toinvestors has significant limitations
including, but not limited to, (i) it
may not be comparable to similarly
titled measures used by othercompanies, including those in our

industry, (ii) it does not reflect theamounts of interest payments to
be paid on our indebtedness, (iii)
it does not reflect any restrictions
on our ability to prepay or redeem
any of our indebtedness, (iv) it
does not reflect any fees, costs orother expenses that we may incur inconverting cash equivalents to cash,in converting cash from one currency
into another or in moving cash
within our consolidated group, (v) itapplies to gross debt an adjustment
for average foreign exchange rates
which, although consistent with
our financing agreements, does
not reflect the actual rates at which
we would be able to convert one
currency into another and (vi) it
reflects an equity credit due tothe fact that the amounts of oursubordinated bonds, although we
believe it to be reasonable, do notaffect the status of those instruments
as indebtedness. Net Debt should
not be considered in isolation andis not, and should not be viewed as,a substitute for bonds and loans or
any other measure of indebtedness
presented in accordance with IFRS.
The most directly comparable
measures under IFRS for Net Debt
is bonds and loans. Please refer to
Net Debt to Adjusted EBITDA for areconciliation to this measure.

TAKEDA 2 024 ANNUAL I NT E GRAT E D RE P ORT

57

may substantially impact our resultsof operations and may limit theability to evaluate our performancefrom one period to another on aconsistent basis.

ABOUT THIS REP ORTThis report includes Takeda’s
financial and non-financial resultsfrom fiscal year 2023 and thesustainability-related focus areas we
believe are most important for our
stakeholders and the communities
we serve. It includes the operationsof Takeda Pharmaceutical Company
Limited and its consolidated
subsidiaries. The reporting period
covers fiscal year 2023 (April 1,
2023, to March 31, 2024), but thisreport may include informationthat reflects events occurring after
March 31, 2024.
Takeda financial data is presented
in Japanese yen, unless otherwise
stated. Some figures in this report
have been rounded. Percentages
may have been calculated using
rounded numbers.
ADDITIONAL DIS C LOSUR ES
This report is published in addition
to our regulatory disclosure
documents: our Annual Securities
Report filed with the Japanese
Financial Services Agency and
our Form 20-F filed with the
U.S. Securities and Exchange
Commission. The financial statements
included in those regulatory
reports are prepared in accordancewith International Financial
Reporting Standards, as issued
by the International AccountingStandards Board.

We regularly update our online
voluntary Sustainability Disclosures
website, which provides easy-tonavigate links to where Takeda
discloses important information
related to our ESG priorities,
practices and data across ourvarious reporting platforms. These
disclosures have been informedby frameworks and standards,
including the:• Integrated Reporting
Framework (IFRS)

See our Sustainability Disclosures
website for our:
• Latest fiscal year 2023
sustainability performanceindicators under the categories
of Patient, People, Planet
and Governance. A complete
list of metrics under eachcategory can be found in thefollowing documents.
• 2024 ESG Databook• 2024 SASB index report• The Sustainability AccountingStandards Board (SASB)
Biotechnology & Pharmaceuticals
Sustainability Accounting Standard• 2024 WEF index report• The Biopharma Investor ESG
Communications Guidance

Our position papers• Stakeholder Capitalism Metrics
developed by the World Economic
Forum (WEF) and its International
Business Council• UNGC index report
For other disclosures, see:

The European Federation of
Pharmaceutical Industries andAssociations (EFPIA) Disclosure
Code Report
Patient group disclosures• The 10 principles of the UN Global
Compact (UNGC)• The Task Force on Climaterelated Financial Disclosures(TCFD) framework

Takeda Pharmaceutical Company Limited
Takeda Global Headquarters
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103-8668, Japan
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