Better Health, Brighter FutureNews Release
May 14, 2019

Takeda Reports FY2018 Full Year Results and Issues FY2019 Guidance−

Excellent FY2018 results driven by key growth products and strict Opex discipline, with Legacy Takeda 1
greatly exceeding original guidance and absorbing Shire acquisition-related costs−

In FY2019, continued momentum of key growth products in Takeda’s five key business areas 2 is expectedto largely offset significant loss of exclusivity headwinds−

Strong base for future growth with a balanced portfolio of 14 global brands 3, an innovative R&D engine
to deliver a sustainable pipeline, and a commitment to margin expansion and deleveraging targets

FY2018 Full Year Results
Legacy Takeda Underlying Revenue +5.3%; Consolidated reported revenue +18.5%• Underlying Revenue growth for Legacy Takeda was solid at +5.3%, with significant contributions from
key growth products such as ENTYVIO (+34.8%) and NINLARO (+36.1%).
• Consolidated reported revenue increased +18.5% to 2,097.2 billion yen. This was mainly due to theinclusion of Legacy Shire’s results from January 8, 2019, which was offset by the one-time negative
impact from applying Takeda’s distribution channel policies to Legacy Shire products.
Legacy Takeda Underlying Core Earnings margin expanded +540 basis points• Legacy Takeda underlying Core Earnings grew +38.7%, with Opex discipline driving three fourths of the+540bps margin expansion. Legacy Takeda’s underlying Core Earnings margin has now expanded+960bps based on simple addition of gains in the last two years, driven by key growth products andexecution of the Global Opex Initiative.
• Legacy Takeda operating profit grew +70.3% mainly driven by business momentum. Large one-time
gains in FY2017 from the divestiture of Wako Pure Chemical and the transfer of additional products to
the Teva JV were matched by increased gains on sales of real estate and the divestitures of Multilab andTechpool in FY2018.
• Consolidated reported operating profit decreased -15.2% to 205.0 billion yen, and consolidated reported
EPS declined -52.6% to 113 yen per share, mainly impacted by significant non-cash purchase accounting
expenses. The strong performance in Legacy Takeda reported operating profit entirely absorbed Shireacquisition-related costs incurred in FY2018.

1
References to “Legacy Takeda” exclude Legacy Shire financials (which have been consolidated into Takeda’s results from January 8, 2019 to March
31, 2019), costs incurred by Legacy Takeda and Legacy Shire related to the acquisition, and financial impact from purchase accounting. References to“Legacy Shire” are to the businesses acquired in Takeda’s acquisition of Shire, which was completed on January 8, 2019, and to the results of thosebusinesses before or after the completion of the acquisition, as the context requires
2
Gastroenterology (GI), Rare Diseases, Plasma-Derived Therapies, Oncology, and Neuroscience
3
Entyvio, Gattex/Revestive, Alofisel, Vpriv, Elaprase, Natpara/Natpar, Adynovate, Takhzyro, HyQvia, Cuvitru, Gammagard Liquid/Kiovig,
Albumin/Flexbumin, Ninlaro, Alunbrig

Innovative R&D engine delivered important pipeline milestones• ENTYVIO demonstrated superior efficacy versus adalimumab in ulcerative colitis head-to-head
VARSITY study 4. Regulatory applications for a subcutaneous formulation filed in the U.S. for ulcerative
colitis and Europe for ulcerative colitis and Crohn’s disease. 5• Approvals in FY2018 for TAKHZYRO in the U.S. and Europe as well as ALUNBRIG in Europe.
Important label expansions for ADCETRIS to include previously untreated Hodgkin lymphoma approvedin Japan and Europe, as well as TRINTELLIX in the U.S. to include data on speed of processing andTreatment Emergent Sexual Dysfunction.
• Innovative pipeline has delivered 15 New Molecular Entity clinical stage-ups since April 2018.
• 44 new collaborations with biotech and academia in FY2018, and announced 3 leading-edge cell-therapy
partnerships.
Disposing non-core assets to generate cash and focus the business• Consolidated Free Cash Flow +4.6% to 378.1 billion yen, including 200.9 billion yen from the sale of realestate, marketable securities, and non-core businesses Techpool and Multilab.
• On May 8, 2019, Takeda announced agreements to divest XIIDRA to Novartis for $3.4 billion upfront incash and up to an additional $1.9 billion in potential milestones, and TACHOSIL to Ethicon for €358
million upfront with a long-term Manufacturing Services Agreement. 6• Takeda intends to use proceeds from the disposal of non-core assets to reduce debt and acceleratedeleveraging toward its target of 2.0x net debt/adjusted EBITDA in 3 to 5 years.
Christophe Weber, President and Chief Executive Officer of Takeda, commented:“Fiscal 2018 was an important year in the history of Takeda as we completed the acquisition of Shire to create
a competitive, values-based, R&D-driven global biopharmaceutical leader. I am delighted to say thatthroughout the year, while we have focused on planning and executing the integration, we have also
maintained strong business momentum, as demonstrated by our excellent financial results.
The integration of Shire is progressing as planned, aligned with Takeda’s values and culture. We have also
identified opportunities to realize greater cost synergies, and already have made progress on our divestment
strategy for non-core assets.
Looking ahead, I believe we have a strong and resilient foundation for the future growth of the business. We
are focused on our five key business areas of GI, Rare Diseases, Plasma-Derived Therapies, Oncology and
Neuroscience, and our revenue over the medium term will be driven by a balanced portfolio including 14
global brands. Our innovative pipeline is also delivering, as shown by the 15 clinical stage-ups over the past
year, and we are committed to executing towards our margin expansion and deleveraging targets.
With our business area focus, R&D engine, and financial strength, Takeda is well positioned to deliver
long-term value to patients and our shareholders.”

4

Schreiber S, et al. J Crohns Colitis 2019;13(Supplement_1):S612–3 (abst OP34). [Oral presentation]
Biologics Licensing Application in the U.S.; Marketing Authorization Line Extension Application in the EU
6
Divestments of XIIDRA and TACHOSIL expected to close the second half of calendar year 2019, subject to customary closing conditions, including
the satisfaction of legal, regulatory and, where applicable, local works council requirements.
5

FY2018 Consolidated Reported Results (April - March)Strong Legacy Takeda performance absorbed Shire acquisition-related costs. For more details on the
breakdown of these expenses, please refer to the attached appendix.

(billion yen)

FY2017FY2018

Revenue
Operating Profit
Net Profiti
EPSCore Earningsii

1,770.5241.8
186.9
239 yen322.5

2,097.2
205.0
109.1
113 yen459.3% Growth vs Prior Year+18.5%-15.2%-41.6%-52.6%+42.4%

i

Attributable to the owners of the company.
Core Earnings, which is not a measure presented in accordance with IFRS, represents net profit adjusted to exclude income tax
expenses, our share of profit or loss of investments accounted for using the equity method, finance expenses and income, otheroperating expenses and income, amortization and impairment losses on intangible assets associated with products and other items
that management believes are unrelated to our core operations, such as purchase accounting effects and transaction related costs.

ii

FY2018 Legacy Takeda Reported Results (April - March)iii(billion yen)

FY2017FY2018iii

Revenue
Operating Profit
Net Profitiv
EPSv
Core Earningsvi

1,770.5241.8
186.9
239 yen322.5

1,788.0
411.8
312.9
399 yen393.3% Growth vs Prior Year
+1.0%
+70.3%+67.4%+66.6%+21.9%

Excludes Legacy Shire financials (from January 8, 2019 to March 31, 2019), costs incurred by Legacy Takeda and Legacy Shire
related to the acquisition, and financial impact from purchase accounting.
iv
Attributable to the owners of the company.
v
Number of shares used for FY2018 EPS calculation: 784,477,109 shares (as of January 7, 2019, the day before the completion of
the Shire acquisition)viCore Earnings is not a measure presented in accordance with IFRS and represents net profit adjusted to exclude income tax
expenses, our share of profit or loss of investments accounted for using the equity method, finance expenses and income, otheroperating expenses and income, amortization and impairment losses on intangible assets associated with products and other items
that management believes are unrelated to our core operations, such as purchase accounting effects and transaction related costs.

FY2019 Full Year Guidance
FY2019 Management Guidance: Business momentum expected to largely offset significant Loss of
Exclusivity headwinds• Momentum of key growth products in our 5 Key Business Areas is expected to largely offset thesignificant Loss of Exclusivity of VELCADE, FIRAZYR, ULORIC & other products.
• Full year consolidation of Legacy Shire results, cost synergies and OPEX discipline is expected tocontribute to underlying Core EPS of 350-370 yen.

vii

Underlying Revenue Growth
Underlying Core Earnings Margin
Underlying Core EPS
Annual dividend per share

Guidance
Flat to slightly declining
Mid-twenties %350-370 yen
180 yen• Financial assumption for VELCADE in the U.S. is for one additional non-therapeutically equivalent
competitor with intravenous and subcutaneous administration launching in July 2019. If no additional
competitor launches, pro-forma underlying revenue growth would be "flat to slightly increasing".
vii

Constant Exchange Rate growth (applying FY2018 full year average foreign exchange rate) compared to baseline of JPY
3,300 billion (pro-forma April 2018-March 2019 combined revenue of Legacy Takeda and Legacy Shire, converted at April
2018-March 2019 average exchange rate of 111 JPY/USD)
Note: FY2019 Management Guidance does not take into consideration the recently announced divestitures of XIIDRA andTACHOSIL. However, Takeda does not expect these divestitures to have a meaningful impact on its management guidance.

Costa Saroukos, Chief Financial Officer of Takeda, stated:“Our guidance for fiscal year 2019 reflects a significant impact from Loss of Exclusivity, without which the
top-line would be growing by ~6-7 percentage points, driven by continued volume expansion of key products
such as ENTYVIO, TAKHZYRO, NINLARO, and our Immunoglobulin franchise. We expect our Underlying
Core Earnings margin to reach the mid-twenties in fiscal 2019, and we are targeting Underlying Core Earnings
margin in the mid-thirties in the medium term, driven by continued Opex efficiencies and relentless execution
against our cost synergy targets. After closing the Shire acquisition we conducted a deep-dive, bottoms-up
review of the synergy opportunities, and I am pleased to say we are raising our cost synergy target from $1.4
billion to approximately $2 billion in annual recurring savings by the end of fiscal 2021.
In addition to margin improvement, we also are committed to rapid deleveraging towards our target net debt /adjusted EBITDA ratio of 2.0x in 3 to 5 years. This will be driven by strong cash flow, and accelerated
deleverage from our divestitures such as the recently announced agreements to sell XIIDRA and TACHOSIL.
In addition, we will continue to make focused investments in the business to support our growth drivers, andintend to maintain our well-established dividend policy of 180 yen per share annually.
Takeda has delivered against its commitments in FY2018, as exemplified in our superb margin improvement
and cash generation, and we are committed to delivering against our future targets to drive significant returns
for our shareholders.”
FY2019 Forecast: Expecting strong increase in core earnings of +92.2%, with Net Profit excluding
deal-related costs and the impact of purchase accounting growing at +17.7%• Anticipate Revenue up +57.4% vs. prior year due to inclusion of Legacy Shire’s full year results for thefull year.
• Expect Operating Profit and EPS to be significantly impacted by Shire acquisition-related integration
costs and costs related to purchase accounting. Excluding the impact of Shire acquisition-related costs andpurchase accounting, Net Profit for the year would increase +17.7% (refer to the attached appendix for
details).

• Anticipate Core Earnings strongly increasing +92.2% from full year Legacy Shire contribution, costsynergies and continued OPEX discipline.
(billion yen)
Revenue
Operating Profit
Net Profit
EPS

FY2018 Results
2,097.2
205.0
109.1
113 yenCore Earnings
Exchange Rate(annual average)

1 US$= 111 yen
1 euro= 129 yen

459.3

FY2019 Forecast
3,300.0-193.0-383.0-246 yen
883.0% change+57.4%
N/A
N/A
N/A+92.2%

1 US$= 111 yen
1 euro= 124 yen

For more details on Takeda's FY2018 results and other financial information, please visit
https://www.takeda.com/investors/reports/

About Takeda Pharmaceutical Company Limited
Takeda Pharmaceutical Company Limited (TSE:4502/NYSE:TAK) is a global, values-based,
R&D-driven biopharmaceutical leader headquartered in Japan, committed to bringing Better Healthand a Brighter Future to patients by translating science into highly-innovative medicines. Takeda
focuses its R&D efforts on four therapeutic areas: Oncology, Gastroenterology (GI), Rare Diseases
and Neuroscience. We also make targeted R&D investments in Plasma-Derived Therapies andVaccines. We are focusing on developing highly innovative medicines that contribute to making a
difference in people's lives by advancing the frontier of new treatment options and leveraging ourenhanced collaborative R&D engine and capabilities to create a robust, modality-diverse pipeline.
Our employees are committed to improving quality of life for patients and to working with ourpartners in health care in approximately 80 countries and regions.
For more information, visit https://www.takeda.com

Contacts
Investor Relations
Takashi Okubo, +81-(0)3-3278-2306
takeda.ir.contact@takeda.com

Media Relations
Kazumi Kobayashi, +81 (0)3-3278-2095
kazumi.kobayashi@takeda.com

Important Notice
For the purposes of this notice, “press release” means this document, any oral presentation, any question andanswer session and any written or oral material discussed or distributed by Takeda Pharmaceutical Company
Limited (“Takeda”) regarding this release. This press release (including any oral briefing and anyquestion-and-answer in connection with it) is not intended to, and does not constitute, represent or form partof any offer, invitation or solicitation of any offer to purchase, otherwise acquire, subscribe for, exchange, sellor otherwise dispose of, any securities or the solicitation of any vote or approval in any jurisdiction. No sharesor other securities are being offered to the public by means of this press release. No offering of securities shallbe made in the United States except pursuant to registration under the U.S. Securities Act of 1933, as amended,or an exemption therefrom. This press release is being given (together with any further information which
may be provided to the recipient) on the condition that it is for use by the recipient for information purposes
only (and not for the evaluation of any investment, acquisition, disposal or any other transaction). Any failure
to comply with these restrictions may constitute a violation of applicable securities laws.
The companies in which Takeda directly and indirectly owns investments are separate entities. In this press
release, “Takeda” is sometimes used for convenience where references are made to Takeda and its subsidiaries
in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or tothose who work for them. These expressions are also used where no useful purpose is served by identifying
the particular company or companies.
Forward-Looking Statements
This press release and any materials distributed in connection with this press release may containforward-looking statements, beliefs or opinions regarding Takeda’s future business, future position and resultsof operations, including estimates, forecasts, targets and plans for Takeda. In particular, this press releasecontains forecasts and management estimates related to the financial and operational performance of Takeda,
including statements regarding forecasts for Revenue, Operating profit, Adjusted EBITDA, Profit before
income taxes, Net profit attributable to owners of Takeda, Basic earnings per share, Amortization andimpairment and other income/expense, Underlying Revenue, Underlying Core Earnings margin, Underlying
Core EPS and Net Debt. Without limitation, forward looking statements often include the words such as“targets”, “plans”, “believes”, “hopes”, “continues”, “expects”, “aims”, “intends”, “will”, “may”, “should”,“would”, “could” “anticipates”, “estimates”, “projects” or words or terms of similar substance or the negative
thereof. Any forward-looking statements in this document are based on the current assumptions and beliefs of
Takeda in light of the information currently available to it. Such forward-looking statements do not represent
any guarantee by Takeda or its management of future performance and involve known and unknown risks,
uncertainties and other factors, including but not limited to: the economic circumstances surrounding Takeda’s
business, including general economic conditions in Japan, the United States and worldwide; competitive
pressures and developments; applicable laws and regulations; the success of or failure of product development
programs; decisions of regulatory authorities and the timing thereof; changes in exchange rates; claims orconcerns regarding the safety or efficacy of marketed products or products candidates; and post-merger
integration with acquired companies, any of which may cause Takeda’s actual results, performance,
achievements or financial position to be materially different from any future results, performance,
achievements or financial position expressed or implied by such forward-looking statements. For more
information on these and other factors which may affect Takeda’s results, performance, achievements, or
financial position, see “Item 3. Key Information—D. Risk Factors” in Takeda’s Registration Statement on
Form 20-F filed with the U.S. Securities and Exchange Commission, available on Takeda’s website at:https://www.takeda.com/investors/reports/sec-filings/ or at www.sec.gov. Neither Takeda nor its management
gives any assurances that the expectations expressed in these forward-looking statements will turn out to becorrect, and actual results, performance or achievements could materially differ from expectations. Persons
receiving this press release should not place undue reliance on forward looking statements. Takeda undertakes
no obligation to update any of the forward-looking statements contained in this press release or any otherforward-looking statements it may make. Past performance is not an indicator of future results and the resultsof Takeda in this press release may not be indicative of, and are not an estimate, forecast or projection of
Takeda’s future results.

Certain Non-IFRS Financial Measures
This press release and materials distributed in connection with this press release include certain IFRS financial
measures not presented in accordance with International Financial Reporting Standards (“IFRS”), such as
Underlying Revenue, Core Earnings, Underlying Core Earnings, Core Net Profit, Underlying Core Net Profit,
Underlying Core EPS, Net Debt, EBITDA, Adjusted EBITDA and Operating Free Cash Flow. Takeda’s
management evaluates results and makes operating and investment decisions using both IFRS and non-IFRS
measures included in this press release. These non-IFRS measures exclude certain income, cost and cash flow
items which are included in, or are calculated differently from, the most closely comparable measurespresented in accordance with IFRS. By including these non-IFRS measures, management intends to provide
investors with additional information to further analyze Takeda’s performance, core results and underlying
trends. Takeda’s non-IFRS measures are not prepared in accordance with IFRS and such non-IFRS measures
should be considered a supplement to, and not a substitute for, measures prepared in accordance with IFRS
(which we sometimes refer to as “reported” measures). Investors are encouraged to review the reconciliationof non-IFRS financial measures to their most directly comparable IFRS measures.
Further information on certain of Takeda’s Non-IFRS measures is posted on Takeda’s investor relations
website athttps://www.takeda.com/investors/reports/quarterly-announcements/quarterly-announcements-2018/

Medical information
This press release 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 be considered a solicitation, promotion or advertisement for any prescription
drugs including the ones under development.
Financial information
Takeda’s financial statements are prepared in accordance with International Financial Reporting Standards(“IFRS”). The financial statements of Shire plc (“Shire”) are presented in accordance with accounting
principles generally accepted in the United States (“U.S. GAAP”). Therefore, the respective financial
information of Takeda and Shire are not directly comparable.
The Shire acquisition closed on January 8, 2019, and our consolidated results for the fiscal year ended March
31, 2019 include Shire’s results from January 8, 2019 to March 31, 2019. References to “Legacy Takeda”
businesses are to our businesses held prior to our acquisition of Shire. References to “Legacy Shire”
businesses are to those businesses acquired through the Shire acquisition.
Furthermore, this presentation refers to Takeda’s Adjusted EBITDA and Shire’s Non-GAAP EBITDA.
Takeda’s Adjusted EBITDA is not a measure presented in accordance with IFRS, and Shire’s Non-GAAP
EBITDA is not a measure presented in accordance with U.S. GAAP. The most closely comparable measurepresented in accordance with IFRS (for Takeda) is net profit for the year and in accordance with U.S. GAAP
(for Shire) is net income. Please see slides 58 and 74 for a further description of Takeda’s Adjusted EBITDA
and Shire’s Non-GAAP EBITDA and a reconciliation to the respective most closely comparable measurespresented in accordance with IFRS and U.S. GAAP. Takeda’s Adjusted EBITDA and Shire’s Non-GAAP
EBITDA are not directly comparable, because (1) Takeda’s results are based on IFRS and Shire’s results are
based on U.S. GAAP and (2) Takeda’s Adjusted EBITDA and Shire’s Non-GAAP EBITDA are defineddifferently.
###

FY2018 REPORTED RESULTS IN DETAIL
FY2018FY2017FY2018(BN YEN)

LEGACY
TAKEDALEGACY
TAKEDA*1(A)

Revenue

1,770.5

1,788.0

+17.5

+1.0%

-

-495.9-476.4

+19.6

+3.9%

-

1,274.6

1,311.7

+37.1

+2.9%

Cost of sales
Gross Profit% of revenue

SHIRE ACQUISITIONRELATED COSTS*2(B)

VS. PYLEGACYSHIRE*3(C)

FY2018CONSOLIDATEDTOTAL(A)+(B)+(C)+(D)309.2

PURCHASE
ACCOUNTING
IMPACT(D)-

2,097.2+326.7-101.6-81.7-659.7-163.8-33.0%

-

207.6

-81.7

1,437.5+162.9+12.8%

VS. PY+18.5%

72.0%

73.4%

+1.4pp

-

67.1%

-

68.5%

SG&A expenses-628.1-594.7

+33.4

+5.3%

-23.8

-98.5

-0.6

-717.6-89.5-14.2%

R&D expenses-325.4-323.7

+1.7

+0.5%

-1.6

-43.0

-

-368.3-42.9-13.2%

Amortization of intangible assets-126.1

-95.4

+30.7

+24.3%

-

0.0

-99.2

-194.7-68.6-54.4%

4.0

-8.7

-12.7

-

-

-0.0

-

-8.7

-12.7

-

Other operating income

169.4

161.2

-8.2

-4.8%

-

-1.4

-

159.9

-9.5

-5.6%

Other operating expenses

Impairment losses on intangible assets-3.4pp-126.6

-38.6

+88.0

+69.5%

-59.6

-4.9

-

-103.2+23.4+18.5%

Operating profit

241.8

411.8

+170.0+70.3%

-85.0

59.8

-181.6

205.0

-36.8

-15.2%% of revenue

13.7%

23.0%

+9.4pp

-

19.3%

-

9.8%

Finance income

39.5

16.6

-22.9

-57.9%

-

-0.0

0.2

16.8

-22.7

-57.4%

Finance expenses

-31.9

-27.1

+4.8

+15.1%

-41.3

-10.6

-4.2

-83.3

-51.4

-160.9%Equity income/loss

-32.2

-43.9

-11.7

-36.4%

-

0.3

-

-43.6

-11.4

-35.5%

Profit before tax

217.2

357.4

+140.2+64.5%-126.349.4-185.694.9-122.3-56.3%Net profit

186.9

312.9

+126.0+67.4%-100.238.1-141.7

109.1

-77.8

-41.6%EPS (yen)*4

239 yen

399 yen+159 yen+66.6%---

113 yen-126 yen-52.6%

Core Earnings

322.5

393.3

+70.8

+21.9%

-

66.0

-

459.3

+136.8+42.4%

Core Earnings Margin

18.2%

22.0%

+3.8pp

-

21.4%

-

21.9%

USD/JPY

111 yen

111 yen-0 yen-0.4%

111 yen-0 yen-0.4%

EUR/JPY

129 yen

129 yen-1 yen-0.4%

129 yen-1 yen-0.4%*1. Excludes Legacy Shire financials (from January 8, 2019 to March 31, 2019), costs incurred by Legacy Takeda and Legacy Shire related to the acquisition, and financial impact from purchase accounting*2. Costs incurred by Legacy Takeda and Legacy Shire related to the acquisition*3. Legacy Shire financials (from January 8, 2019, to March 31, 2019) excluding acquisition related costs*4. Number of shares used for FY2018 EPS calculation: Legacy Takeda 784,477,109 shares (as of Jan 7, 2019, the day before the completion of the Shire acquisition) and consolidated total 961,476,993 shares (April 2018 – March 2019 average)-3.9pp+3.7ppFY2019 FORECAST
Shire acquisition related costs
FY2018Actual

FY2019Forecast-25.3-

Other operating expenses- integration costs-59.6-154.0+57.4%

Financial expenses- Bridge loan fees, interests, etc.

-41.3

-87.0

-124.3-33.9%

Profit Before Tax impact-126.3-241.0-220.0-115.9-111.3%Purchase accounting impact (major items)

159.9

9.0

-150.9-94.4%-82.2-253.0-66.7%

-43.5

-18.0

+25.5

+58.6%

Cost of sales- unwinding of inventories step-up-398.0

-

471.5

654.0

+182.5+38.7%

Amortization of intangible assets- Shire acquisition-99.2-439.0-369.0-463.9

-

406.8

581.0

+174.2+42.8%

Other non-cash items

109.1-383.0-492.1

-

351.0

413.0

+62.0

+17.7%

-95.4

-99.0

113 yen-246 yen-360 yen-

365 yen

266 yen-99 yen-27.2%

Amortization of intangible assets- Legacy Takeda

459.3

883.0

+423.7+92.2%

459.3

883.0

+423.7+92.2%

Impairment-8.7-121.0111 yen
129 yen

111 yen
124 yen-0 yen-5 yenFY2019Forecast

2,097.2

3,300.0+1,202.8+57.4%

2,097.2

3,300.0+1,202.8

R&D expenses-368.3-491.0-122.7-33.3%-366.7-491.0

Amortization & impairment-203.4-659.0-455.6-224.0%-104.1Other operating income

159.9

9.0

-150.9-94.4%

Other operating expenses-103.2-172.0-68.8

Operating profit

205.0-193.0

Profit before tax

94.9

Net profit
EPS (yen)

RevenueCore Earnings
USD/JPY
EUR/JPY

FY2019

SG&A and R&D expenses- acquisition costs, etc.

FY2018Actual(Bn yen)

FY2018vs. PY

Excl. Shire acquisition
related costs andpurchase accounting impact

vs. PY

Note: This FY2019 Reported Forecast does not take into consideration the recently announced divestitures of XIIDRA and TACHOSIL, but Takeda does not expect these divestitures to have a material impact.
The FY2019 Reported Forecast will be updated at a later date to reflect these divestitures once a reliable estimate of their impact can be made, which will depend upon the exact timing of transaction close.