News Release
Takeda Announces Enterprise-wide Program to Support Growthand Deliver Core Operating Profit Margin Improvement
OSAKA, Japan, May 9, 2024 – Takeda (TSE:4502/NYSE:TAK) announced that its Board of Directors
today approved a significant multi-year program focused on organizational agility, spending efficiencies andleveraging the company’s capabilities in data, digital and technology (DD&T). The program aims to improve
growth through continued advancement of Takeda’s Growth & Launch Products and progressing thecompany’s robust late-stage pipeline to deliver innovative therapies for patients, while helping drive Core
Operating Profit margin improvement target of low- to mid-30%.
The program will start in FY2024 and includes initiatives to optimize its workforce—simplifying somedivision structures—and rigorously prioritize its R&D pipeline, while investing in DD&T to increase
productivity and efficiency across the organization. Procurement-led initiatives will be centered on
optimizing external spend with the goal of achieving cost savings and efficiencies in Takeda's supply chain
and vendor management processes. Details and timing of specific actions within the framework of thesebroader initiatives will be decided in due course.
This program underscores Takeda's commitment to driving sustainable growth, operational excellence andfinancial resilience in the years ahead, while enabling it to create more long-term value for patients, theglobal health care system and society.
Takeda estimates that efficiencies and savings resulting from the multi-year program, offset by investments
in its late-stage pipeline and DD&T, will drive 100-250 basis points of Core Operating Profit margin
improvement each year from FY2025 towards its target of low- to mid-30%—with the amount of basis point
improvement each year dependent upon various factors, including business environment and foreignexchange rates. Primarily as a result of the initiatives, Takeda estimates it will incur one-time restructuring
expenses of JPY 140.0 billion in FY2024, which are reflected in the consolidated reported forecast for
FY2024 that was announced today, with lower restructuring expenses also anticipated in FY2025 andFY2026.

About Takeda
Takeda is focused on creating better health for people and a brighter future for the world. We aim to discoverand deliver life-transforming treatments in our core therapeutic and business areas, including gastrointestinal
and inflammation, rare diseases, plasma-derived therapies, oncology, neuroscience and vaccines. Together
with our partners, we aim to improve the patient experience and advance a new frontier of treatment options
through our dynamic and diverse pipeline. As a leading values-based, R&D-driven biopharmaceutical1

company headquartered in Japan, we are guided by our commitment to patients, our people and the planet.
Our employees in approximately 80 countries and regions are driven by our purpose and are grounded in thevalues that have defined us for more than two centuries. For more information, visit www.takeda.com.

Contacts
Investor Relations
Christopher O’Reilly
christopher.oreilly@takeda.com+81 (0) 3-3278-2543

Media Relations
Brendan Jennings
brendan.jennings@takeda.com+81 (0) 80-2705-8259

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 press 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,sell or otherwise dispose of, any securities or the solicitation of any vote or approval in any jurisdiction. No
shares or other securities are being offered to the public by means of this press release. No offering ofsecurities shall be made in the United States except pursuant to registration under the U.S. Securities Act of
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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 ingeneral or to those who work for them. These expressions are also used where no useful purpose is served by
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Forward-Looking Statements
This press release and any materials distributed in connection with this press release may contain forwardlooking statements, beliefs or opinions regarding Takeda’s future business, future position and results ofoperations, including estimates, forecasts, targets and plans for Takeda. Without limitation, forward-looking
statements often include words such as “targets”, “plans”, “believes”, “hopes”, “continues”, “expects”,“aims”, “intends”, “ensures”, “will”, “may”, “should”, “would”, “could”, “anticipates”, “estimates”,“projects”, “forecasts”, “outlook” or similar expressions or the negative thereof. These forward-looking
statements are based on assumptions about many important factors, including the following, which could
cause actual results to differ materially from those expressed or implied by the forward-looking statements:
the economic circumstances surrounding Takeda’s global business, including general economic conditions inJapan and the 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 and2

existing products; manufacturing difficulties or delays; fluctuations in interest and currency exchange rates;
claims or concerns regarding the safety or efficacy of marketed products or product candidates; the impact ofhealth crises, like the novel coronavirus pandemic; the success of our environmental sustainability efforts, inenabling us to reduce our greenhouse gas emissions or meet our other environmental goals; the extent towhich our efforts to increase efficiency, productivity or cost-savings, such as the integration of digitaltechnologies, including artificial intelligence, in our business or 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-and-security-reports/ or at www.sec.gov.
Takeda does not undertake to update any of the forward-looking statements contained in this press release or
any other forward-looking statements it may make, except as required by law or stock exchange rule. Past
performance is not an indicator of future results and the results or statements of Takeda in this press release
may not be indicative of, and are not an estimate, forecast, guarantee or projection of Takeda’s future results.
Financial Information and Certain Non-IFRS Financial Measures
Takeda’s financial statements are prepared in accordance with International Financial Reporting Standards(“IFRS”).
This press release and materials distributed in connection with this press release include certain financial
measures not presented in accordance with IFRS, such as Core 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 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 closelycomparable measures presented in accordance with IFRS. Takeda’s non-IFRS measures are not prepared inaccordance 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 definitions and reconciliations of non-IFRS financial
measures to their most directly comparable IFRS measures, which are in the Financial Appendix appearing at
the end of our investor presentation of our Q4 FY2023 financial results (available atwww.takeda.com/investors).
The usefulness of Core Financial Measures to investors has significant limitations including, but not limitedto, (i) they are not necessarily identical to similarly titled measures used by other companies, including thosein our industry, (ii) they exclude financial information and events, such as the effects of non-cash expenses
such as dispositions or amortization of intangible assets, that some may consider important in evaluating
Takeda’s performance, value or prospects for the future, (iii) they exclude 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 our business) and (iv) they may not include all items
which investors may consider important to an understanding of our results of operations, or exclude all items
which investors may not consider to be so.

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