Summary of Financial Statements for the Three-month Period Ended June 30, 2022 (IFRS,
Consolidated)
July 28, 2022
Takeda Pharmaceutical Company Limited

Stock exchange listings:

TSE Code:4502

URL: https://www.takeda.com

Representative:

Christophe Weber, President & CEO

Contact:

Christopher O'Reilly

Tokyo, Nagoya, Fukuoka, Sapporo

Telephone: +81-3-3278-2306

Email: takeda.ir.contact@takeda.com

Global Head of IR, Global Finance

Scheduled date of securities report submission: August 4, 2022
Scheduled date of dividend payment commencement: Supplementary materials for the financial statements: Yes
Presentation to explain for the financial statements: Yes(Million JPY, rounded to the nearest million)
1.

Consolidated Financial Results for the Three-month Period Ended June 30, 2022 (April 1 toJune 30, 2022)(1) Consolidated Operating Results (year to date)(Percentage figures represent changes over the same period of the previous year)
Revenue(Million JPY)

Operating profit
(%)

(%)

(Million JPY)

Net profit
for the period

Profit before tax(Million JPY)(%)

(Million JPY)(%)

Three-month Period Ended
June 30, 2022

972,4652.4

150,515(39.4)

155,473(30.3)

105,021(23.7)

Three-month Period Ended
June 30, 2021

949,603

18.4

248,552

48.6

222,978

71.1

137,726

66.9

Net profit attributable toowners of the Company(Million JPY)(%)

Total comprehensive
income for the period(Million JPY)

Basic earnings
per share

Diluted earnings
per share

(%)

(JPY)

(JPY)

Three-month Period Ended
June 30, 2022

105,014(23.7)

784,617

298.3

67.94

67.56

Three-month Period Ended
June 30, 2021

137,684

66.9

197,005

102.6

87.96

87.45

Core Operating Profit(Billion JPY)(%)

Core EPS(JPY)

Three-month Period Ended
June 30, 2022

319.1

28.2

145

Three-month Period Ended
June 30, 2021

248.9

(11.4)

113(2) Consolidated Financial Position

Total assets(Million JPY)

Total equity(Million JPY)

Equity attributableto owners of theCompany(Million JPY)

Ratio of equity
attributable toowners of theCompany to total
assets (%)

Equity attributableto owners of theCompany pershare (JPY)As of June 30, 2022

14,065,426

6,317,383

6,316,832

44.9

4,085.66

As of March 31, 2022

13,178,018

5,683,523

5,683,019

43.1

3,665.61

2.

Dividends
Annual dividends per share (JPY)
1st quarter end

2nd quarter end

3rd quarter end

For the Fiscal Year Ended March 31, 2022

—

90.00

—

90.00

180.00For the Fiscal Year Ending March 31, 2023

—
90.00

—

90.00

180.00For the Fiscal Year Ending March 31, 2023
(Projection)

Year-end

Total(Note) Modifications in the dividend projection from the latest announcement: None3.

Forecasts for Consolidated Operating Results for the Fiscal Year Ending March 31, 2023 (April 1, 2022 toMarch 31, 2023)(Percentage figures represent changes from previous fiscal year)
Revenue(Million JPY)

For the Fiscal
Year Ending
March 31, 2023(%)

3,690,000

3.4Core Revenue(Million JPY)

For the Fiscal
Year Ending
March 31, 2023

3,690,000

Profit before
income taxes

Operating profit(Million JPY)

520,000(%)(Million JPY)

12.8

Core Operating Profit
(%)

7.9

(Million JPY)(%)

1,100,000

15.2

411,000

Net profit attributable toowners of the Company
(%)

35.8

Core EPS
(JPY)

484

(Note) Modifications in forecasts of consolidated operating results from the latest announcement: None
FY2022 Management GuidanceCore Growth at Constant Exchange Rate
Core Revenue Growth

Low-single-digit growthCore Operating Profit GrowthHigh-single-digit growthCore EPS GrowthHigh-single-digit growth(Million JPY)

292,000(%)

26.9

Basic earnings
per share(JPY)

188.13

▪

Additional Information(1) Changes in significant subsidiaries during the period(changes in specified subsidiaries resulting in the change in consolidation scope)(2) Changes in accounting policies and changes in accounting estimates
1) Changes in accounting policies required by IFRS
2) Changes in accounting policies other than 1)
3) Changes in accounting estimates

: No

: No
: No
: No

(3) Number of shares outstanding (common stock)1) Number of shares outstanding (including treasury stock) at period end:
June 30, 2022
March 31, 2022

1,582,263,225 shares
1,582,252,525 shares

2) Number of shares of treasury stock at period end:
June 30, 2022
March 31, 2022

36,163,177 shares
31,891,746 shares

3) Average number of outstanding shares (for the three-month period ended June 30):
June 30, 2022
June 30, 2021

1,545,705,621 shares
1,565,249,233 shares▪

This summary of quarterly financial statements is not subject to quarterly review by the external auditor▪

Note to ensure appropriate use of forecasts, and other noteworthy items•

Takeda applies International Financial Reporting Standards (IFRS), and the disclosure information in thisdocument is based on IFRS.

•All forecasts in this document are based on information currently available to management, and do not
represent a promise or guarantee to achieve these forecasts. Various uncertain factors could cause actual
results to differ, such as changes in the business environment and fluctuations in foreign exchange rates.
Should any significant event occur which requires the forecast to be revised, Takeda will disclose it in atimely manner.

•

For details of the financial forecast, please refer to "1. Financial Highlights for the Three-month Period Ended
June 30, 2022 (3) Outlook for the Fiscal Year Ending March 31, 2023" on page 9.

•

Supplementary materials for the financial statements including the Quarterly Financial Report and Earnings
Presentation of the conference call on July 28, 2022, and its audio will be promptly posted on Takeda’s
website.
(Takeda Website):https://www.takeda.com/investors/financial-results/

Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Three-month
Period Ended June 30, 2022 (Consolidated)

Attachment Index
1. Financial Highlights for the Three-month Period Ended June 30, 2022
(1) Business Performance(2) Consolidated Financial Position(3) Outlook for the Fiscal Year Ending March 31, 2023
(4) Other

2
2
7
9
11

2. Condensed Interim Consolidated Financial Statements [IFRS] and Major Notes(1) Condensed Interim Consolidated Statements of Profit or Loss
(2) Condensed Interim Consolidated Statements of Comprehensive Income(3) Condensed Interim Consolidated Statements of Financial Position(4) Condensed Interim Consolidated Statements of Changes in Equity(5) Condensed Interim Consolidated Statement of Cash Flows(6) Notes to Condensed Interim Consolidated Financial Statements

12
12
13
14
16
18
20

[Financial Appendix]

1

Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Three-month
Period Ended June 30, 2022 (Consolidated)

1. Financial Highlights for the Three-month Period Ended June 30, 2022
(1) Business Performance(i) Consolidated Financial Results (April 1 to June 30, 2022)
Billion JPY or percentage
FY2021 Q1
Revenue
Cost of sales
Selling, general and administrative expenses
Research and development expenses
Amortization and impairment losses on intangible
assets associated with products
Other operating income
Other operating expenses
Operating profit
Finance income and (expenses), net
Share of loss of investments accounted for using
the equity method
Profit before tax
Income tax expenses
Net profit for the period

FY2022 Q1Change versus the same period of the previous fiscal year
Actual % Change

CER % Change*1

949.6(241.3)(219.8)(122.5)972.5(292.9)(231.5)(143.6)22.9(51.6)(11.6)(21.1)

2.4 %
21.4 %
5.3 %
17.2 %(6.8)%
11.3 %(4.4)%
4.4 %(102.8)
11.1(25.8)
248.6(25.2)(131.3)
5.5(28.2)
150.5
5.5(28.5)(5.6)(2.4)(98.0)
30.7

27.7 %(50.7)%
9.4 %(39.4)%―

12.5 %(52.5)%(6.2)%(42.2)%
―

(0.4)
223.0
(85.3)
137.7

(0.5)
155.5
(50.5)
105.0(0.1)(67.5)
34.8(32.7)

39.3 %(30.3)%(40.8)%(23.7)%(2.0)%(33.7)%(41.7)%(28.7)%*1 Please refer to (ii) Core Results (April 1 to June 30, 2022), Definition of Core financial measures and Constant Exchange Rate change, for the definition.

Revenue. Revenue for the three-month period ended June 30, 2022 was 972.5 billion JPY, an increase of 22.9 billion JPY, or
2.4% (CER % change: -6.8%), compared to the same period of the previous fiscal year. The increase is primarily attributable to
growth from business momentum and favorable foreign exchange rates, offsetting the decrease of revenue in the current period
due to sale of a portfolio of diabetes products in Japan to Teijin Pharma Limited for 133.0 billion JPY, which was recorded asrevenue in the same period of the previous fiscal year.
Revenue of our core therapeutic areas (i.e. Gastroenterology (“GI”), Rare Diseases, Plasma-Derived Therapies (“PDT”)
Immunology, Oncology, and Neuroscience) increased by 145.8 billion JPY, or 20.6%, compared to the same period of theprevious fiscal year, to 853.8 billion JPY. Each of our core therapeutic areas, except Oncology, contributed to positive revenue
growth due to growth from business momentum and favorable foreign exchange rates. Generic erosion and intensifiedcompetition impacted certain Oncology products in the current period.
Revenue outside of our core therapeutic areas significantly decreased by 123.0 billion JPY, or 50.9%, compared to the same
period of the previous fiscal year to 118.7 billion JPY, largely due to the aforementioned non-recurring 133.0 billion JPY
selling price of the diabetes portfolio in Japan recorded as revenue in the same period of the previous fiscal year.

2

Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Three-month
Period Ended June 30, 2022 (Consolidated)

Revenue by Geographic Region
The following shows revenue by geographic region:
Billion JPY or percentage
Revenue:
Japan*2
United States
Europe and Canada
Asia (excluding Japan)
Latin America
Russia/CIS
Other*3
Total

FY2021 Q1

FY2022 Q1

259.0
412.2
178.7
40.3
30.1
12.3
17.0
949.6

140.5
501.1
205.6
46.1
40.3
17.4
21.6
972.5

Change versus the same period of the previous fiscal year

(118.4)
88.8
26.8
5.8
10.2
5.0
4.6
22.9

Actual % change

CER % change*1(45.7)%
21.6 %
15.0 %
14.4 %
34.0 %
40.8 %
26.8 %
2.4 %(45.9)%
5.4 %
9.3 %
2.9 %
16.7 %
24.7 %
34.2 %(6.8)%*1 Please refer to (ii) Core Results (April 1 to June 30, 2022), Definition of Core financial measures and Constant Exchange Rate change, for the definition.
*2 The 133.0 billion JPY selling price of the sale of diabetes portfolio in Japan is included in the three-month period ended June 30, 2021.
*3 Other includes the Middle East, Oceania and Africa.

Revenue by Therapeutic Area
The following shows revenue by therapeutic area:
Billion JPY or percentage
Revenue:
GI
Rare Diseases
Rare Hematology
Rare Genetics and OtherPDT Immunology
Oncology
Neuroscience
Other*2
Total

FY2021 Q1

FY2022 Q1

210.5
155.5
72.2
83.3
107.2
121.4
113.4
241.6
949.6

270.4
181.6
79.1
102.5
141.9
117.5
142.4
118.7
972.5

Change versus the same period of the previous fiscal year

59.9
26.2
6.9
19.2
34.7
(3.9)
29.0
(123.0)22.9

Actual % change

CER % change*1

28.4 %
16.8 %
9.6 %
23.1 %
32.3 %(3.2)%
25.6 %(50.9)%
2.4 %

15.4 %
7.3 %0.7 %13.1 %
18.0 %(10.1)%
10.7 %(52.9)%(6.8)%*1 Please refer to (ii) Core Results (April 1 to June 30, 2022), Definition of Core financial measures and Constant Exchange Rate change, for the definition.
*2 The 133.0 billion JPY selling price of the sale of diabetes portfolio in Japan is included in the three-month period ended June 30, 2021.

Year-on-year change in revenue for this three-month period in each of our main therapeutic areas was primarily attributable tothe following products:•

GI. In Gastroenterology, revenue was 270.4 billion JPY, a year-on-year increase of 59.9 billion JPY, or 28.4% (CER %change: 15.4%). Growth was driven by Takeda’s top-selling product ENTYVIO (for ulcerative colitis (“UC”) and Crohn’sdisease (“CD”)), with sales of 168.3 billion JPY and a year-on-year increase of 42.9 billion JPY, or 34.2%. Sales of
ENTYVIO in the U.S. increased by 34.2 billion JPY, or 40.9%, to 117.9 billion JPY driven by continued increase in thefirst line biologic inflammatory bowel disease (“IBD”) population both in UC and CD. Sales headwinds of ENTYVIO
associated with COVID-19 experienced in the previous quarter ended March 31, 2022 have been gradually improved in thecurrent period and shipment timing has been largely resolved. Sales of ENTYVIO in Europe and Canada increased by 6.2
billion JPY, or 18.8%, to 38.9 billion JPY. In the Growth and Emerging Markets, the increase in sales of ENTYVIO was
led by growth in Brazil. Sales of DEXILANT (for acid reflux disease) were 22.3 billion JPY, an increase of 11.5 billion
JPY, or 107.0% versus the same period of the previous fiscal year, due to the increased sales of authorized generics in the
U.S. Sales of TAKECAB/VOCINTI (for acid-related diseases) were 27.6 billion JPY, an increase of 3.4 billion JPY, or
13.9%, versus the same period of the previous fiscal year. This increase was mainly driven by the expansion of newprescriptions in the Japanese market due to TAKECAB’s efficacy in reflux esophagitis and the prevention of recurrence ofgastric and duodenal ulcers during low-dose aspirin administration, despite a negative impact associated with the market
expansion re-pricing applied in April 2022 in Japan. Sales of GATTEX/REVESTIVE (for short bowel syndrome) were
21.9 billion JPY, an increase of 3.8 billion JPY, or 20.9%, primarily due to increased market penetration and new country
launches including Japan in August 2021.
3

Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Three-month
Period Ended June 30, 2022 (Consolidated)•

Rare Diseases. In Rare Diseases, revenue was 181.6 billion JPY, a year-on-year increase of 26.2 billion JPY, or 16.8%(CER % change: 7.3%).
Revenue in Rare Hematology increased by 6.9 billion JPY, or 9.6% (CER % change: 0.7%), to 79.1 billion JPY. Sales of
ADVATE (for hemophilia A) increased by 1.4 billion JPY, or 4.7%, to 32.1 billion JPY, and sales of ADYNOVATE/ADYNOVI (for hemophilia A) increased by 2.1 billion JPY, or 13.9%, to 17.5 billion JPY, both helped by favorable
foreign exchange rates. FEIBA (for hemophilia A and B) sales decreased by 0.9 billion JPY, or 7.6%, to 10.5 billion JPY,
negatively impacted by competition in the U.S.
Revenue in Rare Genetics and Other was 102.5 billion JPY, a year-on-year increase of 19.2 billion JPY, or 23.1% (CER %change: 13.1%). Sales of TAKHZYRO (for hereditary angioedema) were 34.0 billion JPY, an increase of 8.6 billion JPY,
or 33.7%, versus the same period of the previous fiscal year primarily due to expansion of the prophylactic market,
continued geographic expansion and strong patient uptake. Sales of REPLAGAL (for Fabry disease) increased by 3.6
billion JPY, or 25.3%, to 17.6 billion JPY, primarily due to the succession of manufacturing and marketing rights in Japan
upon expiration of the license agreement in February 2022. Sales of other enzyme replacement therapies ELAPRASE (forHunter syndrome) and VPRIV (for Gaucher disease) increased by 3.6 billion JPY and 1.4 billion JPY, respectively,
primarily due to Growth and Emerging Markets. Sales of LIVTENCITY (for post-transplant cytomegalovirus (“CMV”)
infection/disease), which was launched in the U.S. in December 2021, were 2.2 billion JPY in the current period.

•

PDT Immunology. In Plasma-Derived Therapies (“PDT”) Immunology, revenue increased by 34.7 billion JPY, or 32.3%(CER % change: 18.0%) compared to the same period of the previous fiscal year, to 141.9 billion JPY. Aggregate sales of
immunoglobulin products were 111.8 billion JPY, an increase of 30.2 billion JPY, or 37.0%, compared to the same periodof the previous fiscal year. In particular, sales of GAMMAGARD LIQUID (for the treatment of primary
immunodeficiency (“PID”) and multifocal motor neuropathy (“MMN”)) increased due to continued strong demand
globally, especially in the U.S. where the pandemic pressure is now easing, and enabled by growing supply. In addition,
CUVITRU and HYQVIA, which are SCIG (subcutaneous immunoglobulin) therapies, marked double digit percentage ofrevenue growth. Aggregate sales of albumin products including HUMAN ALBUMIN and FLEXBUMIN (primarily used
for hypovolemia and hypoalbuminemia) were 22.0 billion JPY, an increase of 4.2 billion JPY, or 23.8%, versus the same
period of the previous fiscal year driven by strong HUMAN ALBUMIN demand in Growth and Emerging Markets.

•

Oncology. In Oncology, revenue was 117.5 billion JPY, a year-on-year decrease of 3.9 billion JPY, or 3.2% (CER %change: -10.1%), impacted by the start of rapid generic erosion of VELCADE (for multiple myeloma) sales in the U.S.
Sales of VELCADE decreased by 13.6 billion JPY, or 45.3% versus the same period of the previous fiscal year to 16.5
billion JPY predominantly due to multiple generic entrants in the U.S. starting in May 2022. Sales of NINLARO (formultiple myeloma) were 23.7 billion JPY, a decrease of 0.6 billion JPY, or 2.6%, versus the same period of the previous
fiscal year. Sales of NINLARO in the U.S. decreased by 0.6 billion JPY, or 4.0%, due to competition and decreased
demand. Decreased sales of VELCADE and NINLARO were partially offset by increases in sales of other Oncology
products such as ADCETRIS (for malignant lymphomas) with sales increase of 2.7 billion JPY, or 15.9%, versus the same
period of the previous fiscal year to 20.0 billion JPY, led by strong growth in countries such as Italy and Japan. Sales of
LEUPLIN/ENANTONE (for endometriosis, uterine fibroids, premenopausal breast cancer, prostatic cancer, etc.), an offpatented product, increased by 1.8 billion JPY, or 6.8%, versus the same period of the previous fiscal year to 28.0 billion
JPY mainly driven by increased sales in China with improved supply, which was partially offset by a decrease in Japan due
to generic erosion and competition. Sales of ALUNBRIG (for non-small cell lung cancer) were 4.5 billion JPY, an increaseof 1.4 billion JPY, or 45.9%, benefitting from strong demand in Japan and Europe. Sales of ZEJULA (for ovarian cancer)
increased by 1.5 billion JPY, or 94.0%, to 3.0 billion JPY, predominantly in Japan. Sales of EXKIVITY (for non-small celllung cancer), which launched in the U.S. in September 2021, was 0.7 billion JPY in the current period.

•

Neuroscience. In Neuroscience, revenue was 142.4 billion JPY, a year-on-year increase of 29.0 billion JPY, or 25.6%(CER % change: 10.7%). Sales of VYVANSE/ELVANSE (for attention deficit hyperactivity disorder (“ADHD”)) were100.0 billion JPY, an increase of 20.8 billion JPY, or 26.2%, versus the same period of the previous fiscal year mainly
driven by the growth of the adult market in the U.S. Sales of TRINTELLIX (for major depressive disorder (“MDD”)) were21.4 billion JPY, an increase of 3.6 billion JPY, or 20.0%, versus the same period of the previous fiscal year, primarily due
to increasing prescriptions in the U.S. and in Japan. Sales of ADDERALL XR (for ADHD) increased by 2.2 billion JPY, or
56.4%, versus the same period of the previous fiscal year, to 6.2 billion JPY due to the sales increase mainly in the U.S.
Sales of INTUNIV (for ADHD) also increased by 1.9 billion JPY, or 57.3%, versus the same period of the previous fiscal
year, to 5.1 billion JPY driven by the sales increase in Japan.

Cost of Sales. Cost of Sales increased by 51.6 billion JPY, or 21.4% (CER % change: 11.3%), to 292.9 billion JPY. The
increase was primarily due to the depreciation of the yen and a sales increase in our core therapeutic areas as compared to thesame period of the previous fiscal year. The Cost of Sales Ratio increased by 4.7 pp compared to the same period of theprevious fiscal year to 30.1%. The main reason for the increase in the Cost of Sales Ratio was the effect of the sale of aportfolio of diabetes products in Japan with the selling price of 133.0 billion JPY being recorded in revenue in the same period

4Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Three-month
Period Ended June 30, 2022 (Consolidated)of the previous fiscal year.
Selling, General and Administrative (SG&A) expenses. SG&A expenses increased by 11.6 billion JPY, or 5.3% (CER %change: -4.4%) compared to the same period of the previous fiscal year, to 231.5 billion JPY, due to the impact from thedepreciation of the yen in the current period.
Research and Development (R&D) expenses. R&D expenses increased by 21.1 billion JPY, or 17.2% (CER % change: 4.4%)
compared to the same period of the previous fiscal year, to 143.6 billion JPY, mainly due to the impact from the depreciation of
the yen in the current period.
Amortization and Impairment Losses on Intangible Assets Associated with Products. Amortization and Impairment Losses on
Intangible Assets Associated with Products increased by 28.5 billion JPY, or 27.7% (CER % change: 12.5%) compared to thesame period of the previous fiscal year, to 131.3 billion JPY, mainly due to the impact from the depreciation of the yen in thecurrent period and impairment charges related to certain assets recorded in the current period.
Other Operating Income. Other Operating Income was 5.5 billion JPY, a decrease of 5.6 billion JPY, or 50.7% (CER %change: -52.5%), compared to the same period of the previous fiscal year primarily due to certain settlement proceeds received
in the same period of the previous fiscal year.
Other Operating Expenses. Other Operating Expenses were 28.2 billion JPY, an increase of 2.4 billion JPY, or 9.4% (CER %change: -6.2%), compared to the same period of the previous fiscal year, primarily due to an increase of 6.6 billion JPY
valuation reserve for pre-launch inventories, which was partially offset by a decrease in restructuring expenses attributable tothe decrease in Shire integration costs.
Operating Profit. As a result of the above factors, Operating Profit decreased by 98.0 billion JPY, or 39.4% (CER % change:-42.2%) compared to the same period of the previous fiscal year to 150.5 billion JPY.
Net Finance Income. Net Finance Income was 5.5 billion JPY in the current period, an increase of 30.7 billion JPY compared
to Net Finance Expenses of 25.2 billion JPY for the same period of the previous fiscal year. Included in the current period are again on prior equity method investments related to the acquisition of GammaDelta Therapeutics and Adaptate Biotherapeutics
in April 2022 as well as a derivative gain on the warrant to purchase stocks of a company that went public in May 2022
recorded in the current period.
Share of Loss of Investments Accounted for Using the Equity Method. Share of Loss of Investments Accounted for Using theEquity Method was 0.5 billion JPY, an increase of 0.1 billion JPY, or 39.3% (CER % change: -2.0%), compared to the same
period of the previous fiscal year.
Income Tax Expenses. Income Tax Expenses were 50.5 billion JPY, a decrease of 34.8 billion JPY, or 40.8% (CER % change;-41.7%), compared to the same period of the previous year. This decrease was primarily due to a tax charge of 62.7 billion JPY
for tax and interest, net of 0.5 billion JPY of associated tax benefit, arising from tax assessment involving Irish taxation of the
break fee Shire received from AbbVie in connection with the terminated offer to acquire Shire made by AbbVie in 2014 in thesame period of the previous year as well as lower pretax earnings. These decreases were partially offset by the tax benefits frominternal entity restructuring transactions in the same period of the previous year and tax charges from write-down of deferred
tax assets in the current period.
Net Profit for the Period. Net Profit for the Period decreased by 32.7 billion JPY, or 23.7% (CER % change: -28.7%),
compared to the same period of the previous fiscal year to 105.0 billion JPY.

5

Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Three-month
Period Ended June 30, 2022 (Consolidated)(ii) Core Results (April 1 to June 30, 2022)
Definition of Core financial measures and Constant Exchange Rate changeCore Revenue represents revenue adjusted to exclude significant items unrelated to Takeda's core operations.
Core Operating Profit represents net profit adjusted to exclude income tax expenses, the share of profit or loss of investments
accounted for using the equity method, finance expenses and income, other operating expenses and income, amortization andimpairment losses on acquired intangible assets and other items unrelated to Takeda’s core operations, such as non-recurring
items, purchase accounting effects and transaction related costs.
Core EPS represents net profit adjusted to exclude the impact of items excluded in the calculation of Core Operating Profit, andother non-operating items (e.g. amongst other items, fair value adjustments and the imputed financial charge related tocontingent consideration) that are unusual, non-recurring in nature or unrelated to Takeda’s ongoing operations and the tax
effect of each of the adjustments, divided by the average outstanding shares (excluding treasury shares) of the reporting periods
presented.
CER (Constant Exchange Rate) change eliminates the effect of foreign exchange rates from year-over-year comparisons bytranslating Reported or Core results for the current period using corresponding exchange rates in the same period of theprevious fiscal year.
Results of Core Operations
Billion JPY or percentage
FY2021 Q1
Core Revenue
Core Operating Profit
Core EPS (yen)FY2022 Q1

816.6
248.9
113

972.5
319.1
145

Change versus the same period of the previous fiscal year

155.9
70.1
32

Actual % change

CER % change

19.1 %
28.2 %
28.5 %

8.3 %
17.0 %
15.8 %

Core Revenue for the three-month period ended June 30, 2022 was 972.5 billion JPY, an increase of 155.9 billion JPY, or
19.1% (CER % change: 8.3%), compared to the same period of the previous fiscal year. Core revenue for the three-month
period ended June 30, 2021, was 816.6 billion JPY, which excluded the non-recurring 133.0 billion JPY selling price of thediabetes portfolio in Japan. There was no significant item unrelated to Takeda’s core operations excluded from revenue in thecurrent period, therefore, Core revenue was the same as Reported revenue at 972.5 billion JPY. Business momentum was led by
Takeda’s Growth and Launch Products* which totaled 363.6 billion JPY, a year-on-year increase of 104.5 billion JPY, or
40.3% (CER % change: 25.8%).
* Takeda’s Growth and Launch Products
GI: ENTYVIO, ALOFISEL
Rare Diseases: TAKHZYRO, LIVTENCITY
PDT Immunology: Immunoglobulin products including GAMMAGARD LIQUID, HYQVIA, and CUVITRU,Albumin products including HUMAN ALBUMIN and FLEXBUMIN
Oncology: ALUNBRIG, EXKIVITY
Other: SPIKEVAX Intramuscular Injection, NUVAXOVID Intramuscular Injection

Core Operating Profit for the current period was 319.1 billion JPY, an increase of 70.1 billion JPY or 28.2% (CER % change:
17.0%) compared to the same period of the previous fiscal year driven by revenue growth in our core therapeutic areas and thedepreciation of the yen in the current period.
Core EPS for the current period was 145 yen, an increase of 32 yen, or 28.5% (CER % change: 15.8%), compared to the same
period of the previous fiscal year.

6Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Three-month
Period Ended June 30, 2022 (Consolidated)(2) Consolidated Financial Position
Assets. Total Assets as of June 30, 2022 were 14,065.4 billion JPY, reflecting an increase of 887.4 billion JPY compared to theprevious fiscal year-end. Goodwill, Intangible Assets, and Property, Plant and Equipment increased by 405.9 billion JPY, 326.5
billion JPY, and 122.6 billion JPY respectively mainly due to the effect of foreign currency translation. The increases including
the impact on these assets were partially offset by a decrease of 203.7 billion JPY in Cash and Cash Equivalents.
Liabilities. Total Liabilities as of June 30, 2022 were 7,748.0 billion JPY, reflecting an increase of 253.5 billion JPY comparedto the previous fiscal year-end. Bonds and Loans increased by 256.8 billion JPY to 4,602.3 billion JPY* primarily due to theeffect of foreign currency translation and Income Taxes Payable increased by 53.4 billion JPY. These increases were partially
offset by a decrease in Trade and Other Payables of 91.9 billion JPY.
*

The carrying amount of Bonds was 3,873.3 billion JPY and Loans was 728.9 billion JPY as of June 30, 2022. Breakdown ofBonds and Loans carrying amount is as follows.

Bonds:Name of Bond
(Face Value if Denominated in
Foreign Currency)
Unsecured US dollar denominated seniornotes (1,301 million USD)
Unsecured US dollar denominated seniornotes (4,000 million USD)
Unsecured Euro denominated senior notes(3,750 million EUR)
Unsecured US dollar denominated seniornotes (3,250 million USD)

Issuance
June 2015
September 2016
November 2018
November 2018

Hybrid bonds (subordinated bonds)
Unsecured US dollar denominated seniornotes (7,000 million USD)
Unsecured Euro denominated senior notes(3,600 million EUR)

June 2019

Unsecured JPY denominated senior bonds
Total

Maturity
June 2025 ~June 2045
September 2023 ~September 2026
November 2022 ~November 2030
November 2023 ~November 2028

Carrying Amount(Billion JPY)
177.6
521.1
530.6
440.8
498.3

July 2020

June 2079
March 2030 ~July 2060
July 2027 ~July 2040

October 2021

October 2031

249.4
3,873.3

Execution

July 2020

947.1
508.4

Loans:Name of Loan
(Face Value if Denominated in
Foreign Currency)

Carrying Amount(Billion JPY)

Syndicated loans

April 2016

Maturity
April 2023 ~April 2026

Syndicated loans
Syndicated loans(1,500 million USD)

April 2017

April 2027

113.5

April 2017
March 2016 ~April 2017

April 2027
March 2023 ~March 2026

204.1

Bilateral loans
Other
Total

200.0

210.0
1.4
728.9

On April 23, 2022, Takeda redeemed 219 million USD of unsecured U.S. dollar-denominated senior notes issued in June 2015
in advance of their original maturity date of June 23, 2022.

7

Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Three-month
Period Ended June 30, 2022 (Consolidated)

Equity. Total Equity as of June 30, 2022 was 6,317.4 billion JPY, an increase of 633.9 billion JPY compared to the previous
fiscal year-end. This was primarily resulted from an increase of 668.5 billion JPY in Other Components of Equity mainly due tofluctuation in currency translation adjustments reflecting the depreciation of yen. This increase was partially offset by adecrease in Retained Earnings of 20.0 billion JPY and an increase in Treasury Shares of 13.2 billion JPY mainly due to theshare buybacks conducted in the current period. The decrease in Retained Earnings was primarily attributable to the dividends
payments of 138.2 billion JPY partially offset by Net Profit for the Period.
Consolidated Cash Flows
Billion JPY
FY2021 Q1

FY2022 Q1

Net cash from (used in) operating activities
Net cash from (used in) investing activities
Net cash from (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year

166.9
(70.4)(411.0)(314.6)966.2

84.2(94.7)(215.7)(226.2)849.7

Effects of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at the end of the period

3.3
654.9

22.5
646.0

Net cash from operating activities was 84.2 billion JPY for the current period compared to 166.9 billion JPY for the same
period of the previous year. The decrease of 82.6 billion JPY was primarily driven by lower net profit for the period adjusted
for non-cash items and other adjustments, which includes income and expenses related to the financing activities, as well as adecrease in trade and other payables and a decrease in other financial liabilities. These unfavorable impacts were partially offset
by an increase in provisions.
Net cash used in investing activities was 94.7 billion JPY for the current period compared to 70.4 billion JPY for the same
period of the previous year. This increase of 24.3 billion JPY was mainly due to an increase of 43.8 billion JPY in acquisition of
intangible assets and an increase of 12.3 billion JPY in acquisition of property, plant and equipment, partially offset by adecrease of 27.5 billion JPY in acquisition of business (net of cash and cash equivalents acquired).
Net cash used in financing activities was 215.7 billion JPY for the current period compared to 411.0 billion JPY for the same
period of the previous year. The decrease of 195.3 billion JPY was mainly due to a decrease in repayments of bonds and longterm loans of 216.1 billion JPY, partially offset by an increase in purchase of treasury shares of 24.4 billion JPY resulting fromthe share buybacks conducted in the current period.

8

Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Three-month
Period Ended June 30, 2022 (Consolidated)(3) Outlook for the Fiscal Year Ending March 31, 2023
The full year consolidated reported forecast for the fiscal year ending March 31, 2023 (FY2022) has not been changed from theforecast announced at the FY2021 financial results announcement on May 11, 2022.
Full Year Reported Forecast for the Fiscal Year Ending March 31, 2023 (FY2022)

FY2021
Revenue

Billion JPY or percentage
Change over the previous year

FY20223,569.0

3,690.0

121.0

3.4 %

Operating profit

460.8

520.0

59.2

12.8 %

Profit before tax
Net profit for the year
(attributable to owners of the Company)
EPS (JPY)

302.6

411.0

108.4

35.8 %

230.1

292.0

61.9

26.9 %

147.14

188.1340.99

27.9 %

Core Revenue

3,420.5

3,690.0

269.5

7.9 %

955.2

1,100.0

144.8

15.2 %

425

484

60

14.0 %

Core Operating Profit
Core EPS (JPY)

Major assumptions used in preparing the FY2022 Revised Reported Forecast
Billion JPY or percentage

FX rates

R&D expenses
Amortization of intangible assets associated with products
Of which Shire acquisition related
Impairment of intangible assets associated with products
Other operating income
Other operating expenses
Japan diabetes portfolio divestiture gain
Other Core Operating Profit adjustments
Of which Shire acquisition related to unwind of inventories step-up
Finance income and (expenses), net
Free cash flow
Capital expenditures (cash flow base)
Depreciation and amortization (excluding intangible assets
associated with products)
Cash tax rate on adjusted EBITDA (excluding divestitures)

9

FY2021

FY2022

1 USD = 112 JPY
1 Euro = 131 JPY
1 RUB = 1.5 JPY
1 BRL = 20.9 JPY
1 CNY = 17.4 JPY(526.1)(418.8)(339.7)(54.1)
43.1(159.1)131.4(36.9)(31.9)(142.9)943.7(186.0)

1 USD = 119 JPY
1 Euro = 133 JPY
1 RUB = 1.3 JPY
1 BRL = 24.0 JPY
1 CNY = 18.8 JPY(570.0)(438.0)(358.0)(50.0)
12.0(73.0)
ー(31.0)(22.0)(107.0)600.0 - 700.0(260.0 - 310.0)(161.0)~12%(150.0)Mid-teen %Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Three-month
Period Ended June 30, 2022 (Consolidated)

Management Guidance
Beginning with FY2022, Takeda uses growth in its Core financial measures on a Constant Exchange Rate basis (“Core Growthat CER”) to provide its Management Guidance. The full year management guidance for the fiscal year ending March 31, 2023
(FY2022) has not been changed from the management guidance announced at the FY2021 financial results announcement on
May 11, 2022.
FY2022 Management GuidanceCore Growth at CER*
Core Revenue Growth
Low-single-digit growthCore Operating Profit GrowthHigh-single-digit growthCore EPS GrowthHigh-single-digit growth* Please refer to 1. Financial Highlights for the Three-month Period Ended June 30, 2022, (1) Business Performance, (ii) Core
Results (April 1 to June 30, 2022), Definition of Core financial measures and Constant Exchange Rate change, for thedefinition.

Other assumptions used in preparing the FY2022 Reported Forecast and the Management Guidance••

Based on currently available information, Takeda expects that its financial results for FY2022 will not be materiallyaffected by COVID-19 or the crisis in Ukraine and Russia and, accordingly, Takeda's FY2022 reported forecast and the
management guidance reflect this expectation.
The FY2022 reported forecast and the management guidance include approximately 50.0 billion JPY revenue contribution
from COVID-19 vaccines.

Forward looking statements
All forecasts in this document are based on information currently available to management, and do not represent a promise or
guarantee to achieve these forecasts. Various uncertain factors could cause actual results to differ, such as changes in thebusiness environment and fluctuations in foreign exchange rates. Should any significant event occur which requires the forecast
to be revised, the Company will disclose it in a timely manner.

10Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Three-month
Period Ended June 30, 2022 (Consolidated)(4) Other
Takeda's Initiatives to Mitigate the Impact of COVID-19
Takeda's response to COVID-19 continues to focus on protecting the health and safety of our employees, our ability to ensure
our medicines are available to patients who rely on them and playing our part to reduce transmission and support thecommunities where our employees live and work. While vaccines are becoming more broadly available, we continue to strictly
adhere to local public health guidance across our geographies in addition to the internal protocols we have put in place, andmonitor any potential impacts of the effects and evolution of COVID-19, including new variants, on our business activities.
Takeda is manufacturing NUVAXOVID Intramuscular Injection, a novel recombinant protein-based COVID-19 vaccine which
was licensed and transferred its manufacturing technologies from Novavax, at its Hikari facility and distributing it in Japan
since May 2022. Also, Takeda will continue to provide distribution support in bringing mRNA COVID-19 vaccine,
SPIKEVAX Intramuscular Injection, to Japan through the partnership with Moderna.
Takeda’s Operations in Ukraine and Russia
Our commitment to patients, regardless of where they live, and to our people is unwavering and is even more important in timesof crisis. Takeda is making every effort to protect our colleagues in Ukraine and to continue to supply patients in Ukraine and in
the region with much needed treatments.
Takeda discontinued activities in Russia that are not essential to maintaining the supply of medicines to patients and providing
ongoing support to our employees. This includes suspending all new investments, suspending advertising and promotion, notinitiating new clinical trials and stopping enrollment of new patients in ongoing clinical trials. Our focus only on essential
activities is consistent with our values and ethical responsibility to our patients in Ukraine, Russia and the region who depend
on our treatments. This commitment notwithstanding, we are adhering to all international sanctions imposed on Russia.
We will be increasing our humanitarian relief efforts, including monetary and medicine donations to benefit people affected by
the conflict in Ukraine, and we will continue to assess new ways to provide support as we look to meet the needs of patients
across the region.
In the three-month period ended June 30, 2022, revenue attributable to Russia/CIS represented 1.8% of Takeda’s total
consolidated revenue of 972.5 billion JPY, as indicated in the Revenue by Region in 1. Financial Highlights for the Threemonth Period Ended June 30, 2022, (1) Business Performance, (i) Consolidated Financial Results (April 1 to June 30, 2022).
There was no material financial impact on Takeda’s financial results for the current period resulting from the crisis in thesecountries. However, depending on the future status of the crisis, our results of operations and financial conditions could be
adversely affected.

11

Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Three-month
Period Ended June 30, 2022 (Consolidated)

2. Condensed Interim Consolidated Financial Statements [IFRS] and Major Notes(1) Condensed Interim Consolidated Statements of Profit or Loss

Revenue
Cost of sales
Selling, general and administrative expenses
Research and development expenses
Amortization and impairment losses on intangible assets associated withproducts
Other operating income
Other operating expenses
Operating profit
Finance income
Finance expenses
Share of loss of investments accounted for using the equity method
Profit before tax
Income tax expenses
Net profit for the period
Attributable to:
Owners of the Company
Non-controlling interests
Net profit for the period
Earnings per share (JPY)
Basic earnings per share
Diluted earnings per share

12

JPY (millions, except per share data)
Three-month Period Ended June 30,
2021
2022
949,603
972,465(241,264)(292,882)(219,843)(231,480)(122,480)(143,607)(102,824)
11,118(25,758)
248,552
45,851(71,068)(357)
222,978(85,252)
137,726(131,277)
5,479(28,182)
150,51560,925(55,469)(497)
155,473(50,452)
105,021

137,684
43
137,726

105,0147
105,021

87.96
87.45

67.94
67.56

Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Three-month
Period Ended June 30, 2022 (Consolidated)(2) Condensed Interim Consolidated Statements of Comprehensive Income
JPY (millions)

Net profit for the period
Other comprehensive income (loss)
Items that will not be reclassified to profit or loss:
Changes in fair value of financial assets measured at fair value throughother comprehensive income
Remeasurement of defined benefit pension plans
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations
Cash flow hedges
Hedging cost
Share of other comprehensive income (loss) of investments accounted forusing the equity method
Other comprehensive income for the period, net of tax
Total comprehensive income for the period
Attributable to:
Owners of the Company
Non-controlling interests
Total comprehensive income for the period

13

Three-month Period Ended June 30,
2021
2022
137,726
105,021

15,877(57)
15,819(180)
10,533
10,35428,28012,9482,230

722,771(25,473)(27,415)2
43,46059,279197,005(641)
669,242
679,596784,617

196,956
49
197,005

784,57146
784,617

Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Three-month
Period Ended June 30, 2022 (Consolidated)(3) Condensed Interim Consolidated Statements of Financial Position
JPY (millions)
As of March 31,
As of June 30,
2022
2022
ASSETS
Non-current assets:
Property, plant and equipment
Goodwill
Intangible assets
Investments accounted for using the equity method
Other financial assets
Other non-current assets
Deferred tax assets
Total non-current assets
Current assets:
Inventories
Trade and other receivables
Other financial assets
Income taxes receivable
Other current assets
Cash and cash equivalents
Total current assets
Total assets
LIABILITIES AND EQUITY
LIABILITIES
Non-current liabilities:
Bonds and loans
Other financial liabilities
Net defined benefit liabilities
Income taxes payable
Provisions
Other non-current liabilities
Deferred tax liabilities
Total non-current liabilities
Current liabilities:
Bonds and loans
Trade and other payables
Other financial liabilities
Income taxes payable
Provisions
Other current liabilities
Total current liabilities
Total liabilities

14

1,582,800
4,407,749
3,818,544
96,579233,554
82,611
362,539
10,584,376

1,705,367
4,813,610
4,145,090
97,091
284,516
84,677385,559
11,515,911

853,167
696,644
25,30527,733141,099
849,695
2,593,642
13,178,018

927,511762,126
18,54331,966
163,377
645,9912,549,515
14,065,426

4,141,418
468,943
145,847
21,63452,19967,214
451,511
5,348,764

4,320,357
508,863
139,273
26,56656,41872,819456,806
5,581,101

203,993516,297
196,071
200,918
443,502584,949
2,145,730
7,494,495

281,897424,358
139,648
249,433
464,929
606,677
2,166,942
7,748,043

Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Three-month
Period Ended June 30, 2022 (Consolidated)

JPY (millions)
As of March 31,
2022
EQUITY
Share capital
Share premium
Treasury shares
Retained earnings
Other components of equity
Equity attributable to owners of the company
Non-controlling interests
Total equity
Total liabilities and equity

1,676,263
1,708,873(116,007)
1,479,716
934,173
5,683,019
504
5,683,523
13,178,018

15

As of June 30,
2022
1,676,277
1,707,336(129,184)
1,459,764
1,602,638
6,316,832
551
6,317,383
14,065,426

Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Three-month
Period Ended June 30, 2022 (Consolidated)(4) Condensed Interim Consolidated Statements of Changes in Equity
Three-month period ended June 30, 2021 (From April 1 to June 30, 2021)
JPY (millions)
Equity attributable to owners of the company
Other components of equity

Share
capital
As of April 1, 2021

Sharepremium

1,668,145

Treasuryshares1,688,424

Retainedearnings(59,552)

Net profit for the period

Exchangedifferenceson translationof foreign
operations

Changes in fairvalue of financial
assetsmeasured at fairvalue throughothercomprehensive
income400,798

41,98328,20815,94428,20815,944

1,509,906
137,684

Other comprehensive income (loss)
Comprehensive income (loss) for the period

—

—

980

6,898

—

137,684

Transactions with owners:
Issuance of new shares
Acquisition of treasury shares(4,464)

Disposal of treasury shares(0)0Dividends(141,859)

Changes in ownership(2,143)

Transfers from other components of equity

224

Share-based compensation
Exercise of share-based awards
Total transactions with owners
As of June 30, 2021

(281)

8,547
(21,365)

21,671980(5,919)17,208(143,779)

—

(281)

1,669,125

1,682,504(42,344)

1,503,811

429,006

57,646Equity attributable to owners of the company
Other components of equity

Cash flow
hedges
As of April 1, 2021

Hedging
cost(68,075)(8,592)Remeasurementsof defined
benefit pension
plans

Total
other
components ofequityTotalequityattributableto ownersof theCompany

Noncontrollinginterests—

366,1145,173,037

4,140

5,177,177—

137,684

43

137,726

Net profit for the period

Total
equityOther comprehensive income (loss)

12,948

2,230

(57)

59,272

59,272

7

59,279Comprehensive income (loss) for the period

12,948

2,230

(57)

59,272

196,956

49

197,005

Transactions with owners:
Issuance of new shares

—

7,878

7,878

Acquisition of treasury shares—(4,464)(4,464)

Disposal of treasury shares

—

0

0

Dividends—(141,859)(141,859)

Changes in ownershipTransfers from other components of equity

57

Share-based compensation
Exercise of share-based awards
Total transactions with owners
As of June 30, 2021—

(2,143)(224)—(3,804)(5,948)
—

—

8,547

8,547

—

307

—

—

57

(224)

(131,734)(3,804)(135,539)(55,126)(6,362)—425,163

5,238,258

385

5,238,643

16

307

Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Three-month
Period Ended June 30, 2022 (Consolidated)

Three-month period ended June 30, 2022 (From April 1 to June 30, 2022)
JPY (millions)
Equity attributable to owners of the company
Other components of equity

Share
capital
As of April 1, 2022

Sharepremium

1,676,263

Treasuryshares1,708,873

Exchangedifferenceson translationof foreign
operations

Changes in fair valueof financial assets
measured at fairvalue through othercomprehensive
income1,479,716

984,141

22,068(1,960)4,121

1,477,756

988,263

22,068722,137(225)

722,137(225)

Retainedearnings(116,007)

Effect of hyperinflation
Restated opening balance

1,676,263

1,708,873(116,007)

Net profit for the period

105,014

Other comprehensive income (loss)
Comprehensive income (loss) for the period

—

—

14

14

—

105,014

Transactions with owners:
Issuance of new shares
Acquisition of treasury shares(5)(27,045)

Dividends(138,218)

Transfers from other components of equity

15,213

Share-based compensation
Exercise of share-based awards(13,838)

13,86714(1,537)(13,177)(123,005)—(4,679)1,676,277

1,707,336(129,184)

1,459,764

1,710,399

17,163

Total transactions with owners
As of June 30, 2022

(4,679)12,292Equity attributable to owners of the company
Other components of equity

Cash flow
hedges
As of April 1, 2022

Hedging
cost

Remeasurementsof defined benefit
pension plans

Total
other
componentsof equity

Total
equityattributabl
e to ownersof theCompany
5,683,019

Noncontrollinginterests
504

5,683,523

504

5,685,684

Total
equity(65,901)(6,135)—934,173
4,121

2,161

(65,901)(6,135)—938,294

5,685,180—

105,0147

105,021

Other comprehensive income (loss)(25,473)(27,415)

10,533

679,557

679,55739

679,596

Comprehensive income (loss) for the period(25,473)(27,415)

10,533

679,557

784,57146

784,617

Effect of hyperinflation
Restated opening balance
Net profit for the period

2,161Transactions with owners:
Issuance of new shares

—

29

29

Acquisition of treasury shares—(27,050)(27,050)(138,218)

Dividends
Transfers from other components of equity(10,533)

Share-based compensation
Exercise of share-based awards
Total transactions with owners
As of June 30, 2022—

(138,218)(15,213)———

12,292

12,292

—

30

—

—

(10,533)(15,213)(152,918)—(152,918)(91,375)(33,549)—

1,602,638

6,316,832

551

6,317,383

17

30

Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Three-month
Period Ended June 30, 2022 (Consolidated)(5) Condensed Interim Consolidated Statements of Cash Flows
JPY (millions)Three-month Period Ended June 30,
2021
2022
Cash flows from operating activities:
Net profit for the period
Depreciation and amortization
Impairment losses
Equity-settled share-based compensation
Loss on sales and disposal of property, plant and equipment
Gain on divestment of business and subsidiaries
Change in fair value of financial assets and liabilities associated with contingent consideration
arrangements, net
Finance (income) and expenses, net
Share of loss of investments accounted for using the equity method
Income tax expenses
Changes in assets and liabilities:
Increase in trade and other receivables
Increase in inventories
Decrease in trade and other payables
Decrease in provisions
Decrease in other financial liabilities
Other, net
Cash generated from operations
Income taxes paid
Tax refunds and interest on tax refunds received
Net cash from operating activities
Cash flows from investing activities:
Interest received
Dividends received
Acquisition of property, plant and equipment
Proceeds from sales of property, plant and equipment
Acquisition of intangible assets
Acquisition of investments
Proceeds from sales and redemption of investments
Acquisition of businesses, net of cash and cash equivalents acquired
Proceeds from sales of business, net of cash and cash equivalents divested
Other, net
Net cash used in investing activities

18

137,726
142,948
53
8,547
94
(365)

105,021
158,283
14,23812,292
7
(320)

(934)
25,216357
85,252

136(5,456)497
50,452(41,835)(21,009)(24,854)(65,217)(7,985)(35,236)
202,760(35,902)—
166,858(17,970)(9,118)(97,123)(20,106)(44,152)(41,583)
105,097(24,945)
4,090
84,241349
139(29,838)79(12,454)(3,251)
483(27,549)
2,138
(543)
(70,445)470
138(42,125)34(56,251)(2,933)
6,178
—
—
(224)
(94,714)

Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Three-month
Period Ended June 30, 2022 (Consolidated)

JPY (millions)Three-month Period Ended June 30,
2021
2022
Cash flows from financing activities:
Net increase in short-term loans and commercial papers
Repayments of bonds and long-term loans
Acquisition of treasury sharesInterest paid
Dividends paid
Repayments of lease liabilities
Other, net
Net cash used in financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Effects of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at the end of the period

1(242,919)(2,542)(23,218)(132,032)(10,328)—(411,038)(314,625)
966,2223,324
654,920

19—(26,804)(26,929)(22,770)(128,873)(10,325)(17)(215,717)(226,190)
849,695
22,485645,991

Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Three-month
Period Ended June 30, 2022 (Consolidated)(6) Notes to Condensed Interim Consolidated Financial Statements(Significant Uncertainty Regarding Going Concern Assumption)
Not applicable.
(Significant Accounting Policies)
Significant accounting policies adopted for the condensed interim consolidated financial statements are the same as thoseadopted for the consolidated financial statements of the fiscal year ended March 31, 2022.
Takeda calculated income tax expenses for the three-month period ended June 30, 2022, based on the estimated average annual
effective tax rate.
(Significant Changes in Equity Attributable to Owners of the Company)
Not applicable.
(Significant Subsequent Events)
Not applicable.

20

FINANCIAL APPENDIX
Definition of Non-IFRS Measures
Definition of Core Financial Measures, Constant Exchange Rate change, and Free Cash Flow
Definition of EBITDA/Adjusted EBITDA and Net Debt
Reconciliations and Other Financial Information
FY2022 Q1 Reported Results with Actual and CER % Change
FY2022 Q1 Core Results with Actual and CER % Change
FY2022 Q1 Reconciliation from Reported to CoreFY2021 Q1 Reconciliation from Reported to Core
Free Cash FlowFY2022 Q1 Net Debt to Adjusted EBITDA
FY2021 Q4 Net Debt to Adjusted EBITDA
FY2022 Q1 and FY2021 Q1 Net Profit to Adjusted EBITDA Bridge
FY2022 Q1 Net Profit to Adjusted EBITDA LTM Bridge
FY2022 Full Year FX Rates Assumptions and Currency Sensitivity
CAPEX, depreciation and amortization and impairment losses
FY2022 Full Year Detailed Forecast
FY2022 Full Year Core Operating Profit Adjustment Items & Cash Flow Forecast
FY2022 Full Year Reconciliation from Reported Operating Profit to Core Operating Profit
Important Notice
Important Notice

A-1
A-2
A-3
A-4
A-5
A-6
A-7
A-8
A-9
A-10
A-11
A-12
A-13
A-14
A-15
A-16
A-17

Definition of Core Financial Measures, ConstantExchange Rate change, and Free Cash Flow
Core Revenue represents revenue adjusted to exclude significant items unrelated to Takeda’s core operations.
Core Operating Profit represents net profit adjusted to exclude income tax expenses, the share of profit or loss of investments accounted for using the equity method,
finance expenses and income, other operating expenses and income, amortization and impairment losses on acquired intangible assets and other items unrelated to
Takeda’s core operations, such as non-recurring items, purchase accounting effects and transaction related costs.
Core EPS represents net profit adjusted to exclude the impact of items excluded in the calculation of Core Operating Profit, and other non-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
Takeda’s ongoing operations and the tax effect of each of the adjustments, divided by the average outstanding shares (excluding treasury shares) of the reporting periods
presented.
CER (Constant Exchange Rate) change eliminates the effect of foreign exchange rates from year-over-year comparisons by translating Reported or Core results for thecurrent period using corresponding exchange rates in the same period of the previous fiscal year.
We present Free Cash Flow because we believe that this measure is useful to investors as similar measures of liquidity are frequently used by securities analysts, investors
and other interested parties in the evaluation of companies in our industry. Free Cash Flow is also used by our management to evaluate our liquidity and our cash flows,
particularly as they relate to our ability to meet our liquidity requirements and to support our capital allocation policies. We also believe that Free Cash Flow is helpful toinvestors in understanding how our strategic divestitures of non-core businesses and of portions of our investment portfolio contribute to the cash flows and liquidity
available to us.
We define Free Cash Flow as cash flows from operating activities, subtracting acquisition of property, plant and equipment (“PP&E”), intangible assets and investments aswell as removing any other cash that is not available to Takeda’s immediate or general business use, and adding proceeds from sales of PP&E, as well as from sales ofinvestments and businesses, net of cash and cash equivalents divested.
The usefulness of Free Cash Flow to investors has significant limitations including, but not limited to, (i) it may not be comparable to similarly titled measures used byother companies, including those in our industry, (ii) it does not reflect the effect of our current and future contractual and other commitments requiring the use or
allocation of capital and (iii) the addition of proceeds from sales and redemption of investments and the proceeds from sales of business, net of cash and cash equivalents
divested do not reflect cash received from our core ongoing operations. Free Cash Flow should not be considered in isolation and is not, and should not be viewed as, asubstitute for cash 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.

A-1

Definition of EBITDA/Adjusted EBITDA and Net Debt
We present EBITDA and Adjusted EBITDA because we believe that these measures are useful to investors as they are frequently used by securities analysts, investors and other interested
parties in the evaluation of companies in our industry. We further believe that Adjusted EBITDA is helpful to investors in identifying trends in its business that could otherwise be obscured bycertain items unrelated to ongoing operations because they are highly variable, difficult to predict, may substantially impact our results of operations and may limit the ability to evaluate our
performance from one period to another on a consistent basis.
EBITDA and Adjusted EBITDA should not be considered in isolation or construed 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 similarly-titled measures presented by other companies.
The usefulness of EBITDA and Adjusted EBITDA to investors has limitations including, but not limited to, (i) they may not be comparable to similarly titled measures used by other companies,
including those in our industry, (ii) they exclude financial information and events, such as the effects of an acquisition or amortization of intangible assets, that some may consider importantin evaluating our 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 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, and should not be viewed as, substitutes for IFRS
reported net income (loss). We encourage investors to review our historical financial statements in their entirety and caution investors to IFRS measures as the primary means 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 and amortization and net interest expense. We define Adjusted EBITDA as EBITDA further adjusted to
exclude impairment losses, other operating expenses and income (excluding depreciation and amortization), finance expenses and income (excluding net interest expense), our share of loss
from investments accounted for under the equity method and other items that management believes are unrelated to our core operations such as purchase accounting effects andtransaction related costs.
The most closely comparable measure presented in accordance with IFRS is net profit for the year. Please refer to Net Profit to Adjusted EBITDA Bridge for a reconciliation to the respective
most closely comparable measures presented in accordance with IFRS.
We present Net Debt because we believe that it is useful to investors in that our management uses it to monitor and evaluate our indebtedness, net of cash and cash equivalents, and, in
conjunction with Adjusted EBITDA, to monitor our leverage. We also believe that similar 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 of bonds and loans as shown on our consolidated statement of financial position, which is thenadjusted to reflect (i) the use of prior 12-month average exchange rates for non-JPY debt outstanding at the beginning of the period and the use of relevant spot rates for new non-JPY debt
incurred and existing non-JPY debt redeemed during the reporting period, which reflects the methodology our management uses to monitor our leverage, and (ii) a 50% equity credit applied
to our aggregate principal amount of 500.0 billion hybrid (subordinated) bonds issued in June 2019 by S&P Global Rating Japan in recognition of the equity-like features of those bonds
pursuant to such agency’s ratings methodology. From this figure, we deduct cash and cash equivalents, excluding cash that is temporarily held by Takeda on behalf of third parties related tovaccine operations and the trade receivables sales program, to calculate Net Debt.
The usefulness of Net Debt to investors has significant limitations including, but not limited to, (i) it may not be comparable to similarly titled measures used by other companies, including
those in our industry, (ii) it does not reflect the amounts 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 or other expenses that we may incur in converting cash equivalents to cash, in converting cash from one currency into another or inmoving cash within our consolidated group, (v) it applies to gross debt an adjustment for average foreign exchange rates which, although consistent with our financing agreements, does notreflect the actual rates at which we would be able to convert one currency into another and (vi) it reflects an equity credit due to the fact that the amounts of our subordinated bonds,
although we believe it to be reasonable, do not affect the status of those instruments as indebtedness. Net Debt should not be considered in isolation and are 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 a reconciliation to this measure.

A-2

FY2022 Q1 Reported Results with Actual and CER % Change
vs. PY(Billion JPY)
Revenue
Cost of sales
Gross profit
Margin
SG&A expenses
R&D expenses
Amortization of intangible assets associated with products
Impairment losses on intangible assets associated with products
Other operating income
Other operating expenses
Operating profit
MarginFinance income
Finance expenses
Share of profit (loss) of investments accounted for using the equity method
Profit before tax
Income tax expenses
Net profit for the period
Non-controlling interests
Net profit attributable to owners of the Company
Basic EPS (yen)FY2021Q1
949.6(241.3)708.3
74.6 %(219.8)(122.5)(102.8)—
11.1(25.8)
248.6
26.2 %
45.9(71.1)(0.4)
223.0(85.3)
137.7
(0.0)
137.7
87.96

FY2022Q1
972.5(292.9)679.6
69.9 %(231.5)(143.6)(117.0)(14.2)
5.5(28.2)
150.5
15.5 %
60.9(55.5)(0.5)
155.5(50.5)
105.0
(0.0)
105.0
67.94

22.9
(51.6)(28.8)(11.6)(21.1)(14.2)(14.2)(5.6)(2.4)(98.0)
15.1
15.6
(0.1)
(67.5)
34.8(32.7)
0.0(32.7)(20.02)*1 Please refer to A-1 Definition of Core Financial Measures, Constant Exchange Rate change, and Free Cash Flow, for the definition.
Note: % change versus prior year is presented as positive when favorable to profits, and negative when unfavorable to profits.

A-3

ACTUAL % CHANGE

CER % CHANGE*1

2.4%(21.4)%(4.1)%(4.7) pp(5.3)%(17.2)%(13.8)%―(50.7)%(9.4)%(39.4)%(10.7) pp
32.9%
21.9%
(39.3)%(30.3)%
40.8%(23.7)%
82.9%(23.7)%(22.8)%(6.8)%(11.3)%(13.0)%(5.0) pp4.4%(4.4)%(0.6)%
ー(52.5)%
6.2%(42.2)%(9.9) pp
29.8%
22.8%
2.0%
(33.7)%
41.7%(28.7)%
86.4%(28.7)%(27.8)%

FY2022 Q1 Core Results with Actual and CER % Change
vs. PY(Billion JPY)
Revenue
Cost of sales
Gross profit
Margin
SG&A expenses
R&D expenses
Operating profit
MarginFinance income
Finance expenses
Share of profit (loss) of investments accounted for using the equity method
Profit before tax
Income tax expenses
Net profit for the period
Non-controlling interests
Net profit attributable to owners of the Company
Basic EPS (yen)FY2021 Q1
816.6(227.9)588.7
72.1 %(218.0)(121.8)248.9
30.5 %
36.3(64.0)
2.0
223.2(46.6)
176.6
(0.0)
176.6
113

FY2022 Q1
972.5(278.2)694.3
71.4 %(231.7)(143.5)319.1
32.8 %
23.7(50.8)
1.0
292.9(68.7)
224.2
(0.0)
224.1
145

155.9
(50.4)
105.5(13.7)(21.7)
70.1(12.6)
13.2
(1.0)
69.7
(22.2)
47.5
0.0
47.6
32

*1 Please refer to A-1 Definition of Core Financial Measures, Constant Exchange Rate change, and Free Cash Flow, for the definition.
Note: % change versus prior year is presented as positive when favorable to profits, and negative when unfavorable to profits.

A-4

ACTUAL % CHANGE

CER % CHANGE*1

19.1%(22.1)%
17.9%(0.7) pp(6.3)%(17.8)%
28.2%
2.3 pp(34.8)%
20.6%(50.8)%
31.2%(47.6)%
26.9%
82.9%
26.9%
28.5%

8.3%
(12.1)%
6.9%(1.0) pp3.5%(4.9)%
17.0%
2.4 pp(34.8)%
20.7%(48.5)%
18.8%(36.0)%
14.3%
86.4%
14.3%
15.8%

FY2022 Q1 Reconciliation from Reported to CoreREPORTED TO CORE ADJUSTMENTS(Billion JPY)

Revenue
Cost of sales
Gross profit
SG&A expenses
R&D expenses
Amortization of intangible assets
associated with products
Impairment losses on intangible assets associatedwith products
Other operating income
Other operating expenses
Operating profit
MarginFinance income and (expenses), net
Share of profit (loss) of investments accounted forusing the equity method
Profit before tax
Tax expenses
Non-controlling interests
Net profit attributable to owners of the Company
EPS (yen)
Number of shares (millions)

REPORTED

Amortizationof
intangible
assetsImpairmentofintangible
assetsOther
operatingincome/expenses

972.5(292.9)679.6(231.5)(143.6)(117.0)(14.2)
5.5(28.2)
150.5
15.5 %
5.5
(0.5)
155.5
(50.5)
(0.0)
105.0
68
1,546

CORE
Others

14.7
14.7
(0.2)
0.1
117.0

972.5
(278.2)694.3(231.7)(143.5)
—

14.2

117.0

14.2

(5.5)
28.2
22.7

14.6
(32.6)

117.0(25.1)

14.2
(3.1)

22.7
(3.9)

1.5
(16.6)
13.8

92.0

11.1

18.8

(2.7)

A-5

—
—
—
319.1
32.8%
(27.1)
1.0
292.9(68.7)
(0.0)
224.1
145
1,546

FY2021 Q1 Reconciliation from Reported to CoreREPORTED TO CORE ADJUSTMENTS(Billion JPY)

Revenue
Cost of sales
Gross profit
SG&A expenses
R&D expenses
Amortization of intangible assets
associated with products
Impairment losses on intangible assets associatedwith products
Other operating income
Other operating expenses
Operating profit
MarginFinance income and (expenses), net
Share of profit (loss) of investments accounted forusing the equity method
Profit before tax
Tax expenses
Non-controlling interests
Net profit attributable to owners of the Company
EPS (yen)
Number of shares (millions)

REPORTED

Amortizationof
intangible
assetsImpairmentofintangible
assets949.6(241.3)708.3(219.8)(122.5)(102.8)—
11.1(25.8)
248.6
26.2 %(25.2)(0.4)
223.0(85.3)
(0.0)
137.7
88
1,565

Other
operatingincome/expenses—

Sale of Japandiabetes
portfolio

Irish
Tax
Assessment*1(133.0)0.6(132.4)
1.0

—

CORE
Others

12.8
12.8
0.9
0.7

102.8

816.6
(227.9)588.7(218.0)(121.8)
—

102.8

—

(10.8)
25.1
14.3

(0.4)
0.7
14.7

(131.4)

(2.5)

102.8
(22.9)

—

79.9

—

14.3
(4.8)

(131.4)
40.2

62.7

9.5

(91.2)

62.7

2.3
14.5
(36.5)
0.0(22.0)

—
—
—
248.9
30.5%
(27.7)
2.0
223.2(46.6)
(0.0)
176.6
113
1,565

*1 A tax charge of 62.7 billion JPY for tax and interest, net of 0.5 billion JPY of associated tax benefit, arising from tax assessment involving Irish taxation of the break fee Shire
received from AbbVie in connection with the terminated offer to acquire Shire made by AbbVie in 2014.

A-6

Free Cash FlowFY2021
Q1(Billion JPY)
Net profit

FY2022
Q1

Change versus the previous year

137.7

105.0

(32.7)

Depreciation, amortization and impairment loss

143.0

172.5

29.5

Decrease (increase) in trade working capital(87.7)(124.2)(36.5)

Income taxes paid

(35.9)(24.9)

11.0

Tax refunds and interest on tax refunds received

—

4.1

4.1

Other

9.7

(48.2)(58.0)

166.9

84.2

(82.6)

5.9

53.5

47.6

(29.8)(42.1)(12.3)

Proceeds from sales of PP&E

0.1

0.0

(0.0)

Acquisition of intangible assets(12.5)(56.3)(43.8)

Acquisition of investments

(3.3)

(2.9)

0.3

Proceeds from sales and redemption of investments

0.5

6.2

5.7

Proceeds from sales of business, net of cash and cash equivalents divested

2.1

—

(2.1)

129.9

42.6

(87.3)Net cash from operating activities
Adjustment for cash temporarily held by Takeda on behalf of third parties*1
Acquisition of PP&E

Free Cash Flow

*1 Adjustment refers to cash temporarily held by Takeda on behalf of third parties related to vaccine operations and the trade receivables sales program.

A-7(23.7)%(49.5)%(67.2)%

FY2022 Q1 Net Debt to Adjusted EBITDA

NET DEBT/ADJUSTED EBITDA RATIO(Billion JPY)

NET INCREASE (DECREASE) IN CASH
FY2022Q1

FY2021Q1

FY2022
Q1

Net cash from operating activities

166.9

84.2

(Billion JPY)

Cash and cash equivalents*1
Book value debt on consolidated
statements of financial position
Hybrid bond 50% equity credit
FX adjustment*2
Gross debt*3
Net cash (debt)(4,602.3)

Acquisition of PP&E

(29.8)(42.1)

250.0
414.1(3,938.2)(3,446.2)

0.1(12.5)(3.3)
0.5(27.5)

0.0(56.3)(2.9)
6.2—

Net debt/Adjusted EBITDA ratio

2.8 x

Proceeds from sales of PP&E
Acquisition of intangible assets
Acquisition of investments
Proceeds from sales and redemption of investments
Acquisition of business, net of cash and cash equivalents acquired
Proceeds from sales of business, net of cash and cash equivalents
divested
Net increase (decrease) in short-term loans and commercial papers
Repayment of long-term loans
Proceeds from issuance of bonds
Repayment of bonds
Purchase of treasury sharesInterest paid
Dividends paid
Others
Net increase (decrease) in cash

2.1

—

0.0
(220.1)—(22.8)(2.5)(23.2)(132.0)(10.4)(314.6)———(26.8)(26.9)(22.8)(128.9)(10.0)(226.2)Adjusted EBITDA

492.0

1,244.3

Change versus theprevious year
(82.6)(49.5)%

88.4(28.1)%*1 Includes short-term investments which mature or become due within one year from the reporting date and excludes cash temporarily held by Takeda on behalf of third parties related tovaccine operations and the trade receivables sales program.
*2 FX adjustment refers to change from month-end rate to average rate used for non-JPY debt calculation outstanding at the beginning of the period to match with adjusted EBITDA (which is
calculated based on average rates). New non-JPY debt incurred and existing non-JPY debt redeemed during the reporting period are translated to JPY at relevant spot rates as of the relevant date.
*3 Bonds and loans of current and non-current liabilities. 250Bn yen reduction in debt due to 500Bn yen hybrid bond issuance in June 2019, given that the hybrid bond qualifies for 50% equity
credit for leverage purposes. Includes non-cash adjustments related to debt amortization and FX impact.

A-8

FY2021 Q4 Net Debt to Adjusted EBITDA
NET DEBT/ADJUSTED EBITDA RATIO(Billion JPY)

NET INCREASE (DECREASE) IN CASH
FY2021*1

FY2020

FY2021

Net cash from operating activities

1,010.9

1,123.1

Cash and cash equivalents
Book value debt on consolidated
statements of financial position
Hybrid bond 50% equity credit
FX adjustment*2
Gross debt*3
Net cash (debt)(4,345.4)

Acquisition of PP&E

(111.2)(123.3)

250.0
219.4
(3,876.0)(3,233.8)

46.5(125.3)(12.6)
74.6—

1.8(62.8)(8.3)
16.9(49.7)Net debt/Adjusted EBITDA ratio

2.8 x

Proceeds from sales of PP&E
Acquisition of intangible assets
Acquisition of investments
Proceeds from sales and redemption of investments
Acquisition of business, net of cash and cash equivalents acquired
Proceeds from sales of business, net of cash and cash equivalents
divested
Net increase (decrease) in short-term loans and commercial papers
Repayment of long-term loans
Proceeds from issuance of bonds
Repayment of bonds
Purchase of treasury sharesInterest paid
Dividends paid
Others
Net increase (decrease) in cash

530.4

28.2

(149.0)(792.5)
1,179.5(859.2)(2.1)(107.3)(283.4)(83.1)
316.1(0.0)(414.1)249.3(396.0)(77.5)(108.2)(283.7)(41.1)(145.3)Adjusted EBITDA

642.2(Billion JPY)

1,168.0

vs. PY
112.2

11.1 %(461.4)－*1 Includes short-term investments which mature or become due within one year from the reporting date and excludes cash temporarily held by Takeda on behalf of third parties related tovaccine operations and the trade receivables sales program.
*2 FX adjustment refers to change from month-end rate to average rate used for non-JPY debt calculation outstanding at the beginning of the period to match with adjusted EBITDA (which is
calculated based on average rates). New non-JPY debt incurred and existing non-JPY debt redeemed during the reporting period are translated to JPY at relevant spot rates as of the relevantdate.
*3 Bonds and loans of current and non-current liabilities. 250Bn yen reduction in debt due to 500Bn yen hybrid bond issuance in June 2019, given that the hybrid bond qualifies for 50% equity
credit for leverage purposes. Includes non-cash adjustments related to debt amortization and FX impact.

A-9

FY2022 Q1 and FY2021 Q1 Net Debt to Adjusted EBITDA Bridge
FY2021
Q1(Billion JPY)
Net profit
Income tax expenses
Depreciation and amortization
Interest expense, net
EBITDA
Impairment losses
Other operating expense (income), net, excluding depreciation and amortization and othermiscellaneous expenses (non-cash item)
Finance expense (income), net, excluding interest income and expense, net
Share of loss on investments accounted for under the equity method
Other adjustments:
Non-core expense related to COVID-19
Sales of Japan diabetes portfolio and other non-core product divestitures
Impact on profit related to fair value step up of inventory in Shire acquisition
Other costs*1
Adjusted EBITDA*1 Includes adjustments for non-cash equity-based compensation expense and other one time non-cash expense.

A-10

FY2022
Q1

137.7
85.3
142.9
29.9
395.9
0.1

105.0
50.5
158.3
28.5
342.3
14.2

12.6

21.5

(4.7)
0.4
(108.6)
3.4(131.4)
10.8
8.7
295.6

(34.0)
0.5
26.7
2.7
—
12.4
11.6
371.2

Change versus theprevious year
(32.7)(23.7)%(53.6)(13.5)%

75.6

25.6 %

FY2022 Q1 Net Debt to Adjusted EBITDA LTM Bridge
FY2021
Full Year(Apr-Mar)(Billion JPY)
Net profit
Income tax expenses
Depreciation and amortization
Interest expense, net
EBITDA
Impairment losses
Other operating expense (income), net, excluding depreciation and amortization and othermiscellaneous expenses (non-cash item)
Finance expense (income), net, excluding interest income and expense, net
Share of loss on investments accounted for under the equity method
Other adjustments:
Non-core expense related to COVID-19
Sale of Japan diabetes portfolio
Impact on profit related to fair value step up of inventory in Shire acquisition
Other costs*2
Adjusted EBITDA
EBITDA from divested products*3
Adjusted EBITDA (LTM)

FY2021
Q1(Apr - Jun)

*3 Represents adjustments for EBITDA from divested products which are removed as part of LTM Adjusted EBITDA.

A-11

FY2022
Q1 LTM*1(Jul-Jun)

230.2
72.4
583.2
117.8
1,003.6
54.5

137.7
85.3
142.9
29.9
395.9
0.1

105.0
50.5
158.3
28.5
342.3
14.2

197.5
37.6
598.5
116.4
950.0
68.7

106.3

12.6

21.5

115.2

25.1
15.4
(30.2)
10.4(144.8)31.9
72.4
1,174.5(6.6)
1,168.0(4.7)
0.4(108.6)
3.4(131.4)
10.8
8.7
295.6

(34.0)
0.5
26.7
2.7
—
12.4
11.6
371.2

(4.2)
15.5
105.0
9.7
(13.4)
33.5
75.2
1,250.2(5.9)
1,244.3*1 LTM represents Last Twelve Months (July 2021 - June 2022). Calculated by subtracting FY2021 Q1 from FY2021 Full Year and adding FY2022 Q1.
*2 Includes adjustments for non-cash equity-based compensation expense and other one time non-cash expense.

FY2022
Q1(Apr - Jun)FX Rates and FY2022 Currency Sensitivity
Average Exchange Rates vs. JPY

Impact of depreciation of yen from April 2022 to March 2023 on FY2022 forecast (100 million JPY)

FY2021
Actual(Apr-Jun)

FY2022
Actual(Apr-Jun)

FY2022
Assumption(Apr-Mar)

USD

110

127

119

EUR

132

137

133

RUB

1.5

1.8

1.3

CNY

17.0

19.4

18.8

BRL

20.2

26.3

24.0

Revenue(IFRS)

Operating
Profit(IFRS)Net Profit(IFRS)

Core
Operating
Profit(non-IFRS)

1% depreciation

192.2

34.7

29.8

75.1

1 yen depreciation

161.7

29.2

25.1

63.2

1% depreciation

49.6(31.6)(33.5)(21.8)

1 yen depreciation

37.4(23.8)(25.3)(16.5)

4.0

2.1

2.1

2.5

15.6

8.6

8.6

8.6

8.8

5.5

5.5

5.6

1% depreciation

A-12

CAPEX, Depreciation and Amortization andImpairment Losses(Billion JPY)

FY2021

FY2021 Q1

FY2022 Q1

FY2022
Forecast

vs. PY

Capital expenditures*

186.0

42.3

98.4

56.1

132.6 %

260.0 to 310.0

Tangible assets

123.3

29.8

42.1

12.3

41.2 %

Intangible assets

62.8

12.5

56.3

43.8

351.7 %

Depreciation and amortization

579.8

142.0

157.5

15.4

10.9 %

Depreciation of tangible assets* (A)

132.4

32.4

34.7

2.3

7.0 %

Amortization of intangible assets (B)

447.4

109.6

122.8

13.2

12.0 %Of which Amortization associated with products (C)

418.8

102.8

117.0

14.2

13.8 %Of which Amortization excluding intangible assets
associated with products (D)

28.6

6.8

5.8

(1.1)

(15.5)%

Depreciation and amortization (excluding
intangible assets associated with products) (A)+(D)

161.0

39.2

40.4

1.2

3.1 %

Impairment losses

54.5

0.1

14.2

14.2

—%

Impairment losses associated with products

54.1

—

14.2

14.2

—%

50.0

Amortization and impairment losses on intangible
assets associated with products

472.9

102.8

131.3

28.5

27.7 %

488.0* Cash flow base

588.0

438.0

* Excluding depreciation from investment properties

A-13

150.0

FY2022 Detailed Forecast(Billion JPY)

FY2021
ActualFY2022
Forecast

vs. PY

Variances

121.0

3.4 %

Core business growth & Fx tailwind offsetting thedecrease from FY2021 booking of 133.0B in
reported revenue from sale of Japan diabetes
business(570.0)(43.9)(8.3)%

Fx: Majority of R&D spend is in USD. R&D
expenses are expected to grow slower thanrevenue on CER basis(418.8)(438.0)(19.2)(4.6)%

Fx: Amortization is primarily of USD- and EURdenominated assets

Impairment losses on intangible assets associated with products(54.1)(50.0)

4.1

7.6 %Other operating income

43.1

12.0

(31.1)(72.2)%

Lower divestiture income & other one-offs

Other operating expenses(159.1)(73.0)

86.1

54.1 %

Lower restructuring costs, lower pre-launch
inventory & other expenses

Operating profit

460.8

520.0

59.2

12.8 %

Revenue

3,569.0

3,690.0

Cost of sales(1,106.8)

N/D*1

R&D expenses(526.1)

Amortization of intangible assets associated with products

Finance income and (expenses), net(142.9)(107.0)35.9

25.1 %

Profit before tax

302.6

411.0

108.4

35.8 %Net profit attributable to owners of the Company

230.1

292.0

61.9

26.9 %

Basic EPS (yen)147.14

188.1340.99

27.9 %

Core Revenue*2

3,420.5

3,690.0

269.5

7.9 %

955.2

1,100.0

144.8

15.2 %

Core EPS (yen)

425

484

60

14.0 %

USD/JPY (yen)

112

119

7

EUR/JPY (yen)

131

133

2

Core Operating Profit*2

Lower interest expenses, and fewer one-offs

Core business growth & Fx tailwind*1. Not Disclosed.
*2. Please refer to A-1 Definition of Core Financial Measures, Constant Exchange Rate change, and Free Cash Flow, for the definition and A-16 FY2022 Full Year Reconciliation from Reported
Operating Profit to Core Operating Profit, for reconciliation.

A-14

FY2022 Core Operating Profit Adjustment Items &Cash Flow Forecast
CORE OPERATING PROFIT ADJUSTMENT ITEMS(Billion JPY)

FY2022
Forecast

FY2022 Q1

Amortization of intangible assets associated with products

117.0

438.0

94.7

358.0

Impairment losses on intangible assets associated with products

14.2

50.0

Other operating income(5.5)(12.0)

Other operating expenses

28.2

73.0

Other Core Operating Profit adjustments

14.6

31.0

12.4

22.0

168.5

580.0

Of which Shire-acquisition related

Of which Shire-acquisition related to unwind of inventories step-up
Total core operating profit adjustments

CASH FLOW GUIDANCE(Billion JPY)

FY2022
Forecast

FY2022 Q1Free cash flow

42.6

600.0 to 700.0

CAPEX (cash flow base)(98.4)(260.0) to (310.0)

Depreciation and amortization (excluding intangible assets associated with products)(40.4)(150.0)N/A

mid-teen %Cash tax rate on adjusted EBITDA (excluding divestitures)

A-15

FY2022 Reconciliation from Reported Operating
Profit to Core Operating Profit
REPORTED TO CORE ADJUSTMENTS(Billion JPY)

Revenue

REPORTED

Amortization of
intangible
assetsImpairment ofintangible
assetsOther
operatingincome(expenses)

CORE

Others3,690.0

3,690.0

Cost of sales

24.0

Gross Profit

24.0

SG&A and R&D expenses

7.0

Amortization of intangible assets
associated with products(438.0)

Impairment losses on intangible assets
associated with products(50.0)

Other operating income

12.0(12.0)—

Other operating expenses(73.0)

73.0—

Operating profit

520.0

438.0

—
50.0

438.0

A-16

50.0

—

61.0

31.0

1,100.0

Important Notice
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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 atwww.sec.gov. Takeda does not undertake to update any of the forward-looking statements contained in this report 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 report may not be
indicative of, and are not an estimate, forecast, guarantee or projection of Takeda’s future results.

A-17

Financial Information and Certain Non-IFRS Financial Measures
Takeda’s financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”).
This report and materials distributed in connection with this report 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 presentation. 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 measures presented in accordance with
IFRS. By including these non-IFRS measures, management intends to provide investors with additional information to further analyze Takeda’s performance and coreresults, including when controlling for the effect of fluctuations in exchange rates. Takeda’s non-IFRS measures are not prepared in accordance with IFRS and such nonIFRS 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.
Medical information
This report contains information about products that may not be available in all countries, or may be available under different trademarks, for different indications, indifferent 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.

A-18