Summary of Financial Statements for the Six-month Period Ended September 30, 2020 (IFRS,
Consolidated)
October 29, 2020
Takeda Pharmaceutical Company Limited

Stock exchange listings:

TSE Code:4502

URL: http://www.takeda.com

Representative:

Christophe Weber, President & CEO

Contact:

Christopher O'Reilly

Tokyo, Nagoya, Fukuoka, Sapporo

Telephone: +81-3-3278-2306

Global Head of IR, Global Finance

Scheduled date of securities report submission: November 10, 2020
Scheduled date of dividend payment commencement: December 1, 2020
Supplementary materials for the financial statements: Yes
Presentation to explain for the financial statements: Yes
1.

(Million JPY, rounded to the nearest million)

Consolidated Financial Results for the Six-month Period Ended September 30, 2020 (April 1 to

September 30, 2020)(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)(%)

Six-month Period Ended
September 30, 2020

1,590,785(4.2)

215,58897.7

125,561

302.9

86,58915.7

Six-month Period Ended
September 30, 2019

1,660,169

88.5

109,033(36.6)

31,166(80.6)

74,834(40.8)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)

Six-month Period Ended
September 30, 2020

86,54815.8

64,443

—

55.45

55.13

Six-month Period Ended
September 30, 201974,738(41.0)(122,997)

—

48.01

47.87

Core Operating Profit(Billion JPY)(%)

Core EPS(JPY)

Six-month Period Ended
September 30, 2020

507.6

(6.3)

221

Six-month Period Ended
September 30, 2019

541.6

155.5

244

(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 September 30, 2020

12,414,747

4,666,499

4,662,402

37.6

2,982.30

As of March 31, 2020

12,821,094

4,727,486

4,723,483

36.8

3,032.22

▪

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:
September 30, 2020
March 31, 2020

1,576,387,908 shares
1,576,373,908 shares

2) Number of shares of treasury stock at period end:
September 30, 2020
March 31, 2020

13,031,872 shares
18,608,312 shares

3) Average number of outstanding shares (for the six-month period ended September 30):
September 30, 2020
September 30, 2019

1,560,848,065 shares
1,556,734,754 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 has adopted 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 Six-month Period Ended
September 30, 2020 (3) Outlook for the Fiscal Year Ending March 31, 2021" on page 11.

•

Supplementary materials for the financial statements including Data Book and Earnings Presentation of theconference call on October 29, 2020, 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 Six-month
Period Ended September 30, 2020 (Consolidated)

Attachment Index
1. Financial Highlights for the Six-month Period Ended September 30, 2020
(1) Business Performance(2) Consolidated Financial Position(3) Outlook for the Fiscal Year Ending March 31, 2021
(4) Impact of the Spread of the Novel Coronavirus Infectious Disease (COVID-19) and Takeda's
Initiatives in Response(5) Interim Dividend for Fiscal 2020

2
2
8
11
14
16

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[Appendix]
1 FY2020 H1 Reconciliation from Reported Revenue to Underlying Revenue
2 FY2020 H1 Reconciliation from Reported to Core/Underlying Core
3 FY2019 H1 Reconciliation from Reported to Core/Underlying Core

1

17
17
18
19
21
23
25

Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Six-month
Period Ended September 30, 2020 (Consolidated)acid reflux disease) by 2.7 billion JPY and AMITIZA (for chronic constipation) by 2.7 billion JPY primarily due tointensified competition.
•

Rare Diseases. In Rare Diseases, revenue decreased by 32.4 billion JPY, or 9.9%, compared to the same period of theprevious fiscal year to 295.4 billion JPY. Revenue in Rare Hematology decreased by 32.5 billion JPY, or 18.6%, to 142.8
billion JPY. Sales of ADVATE (for hemophilia A) decreased by 19.8 billion JPY, or 23.8%, to 63.4 billion JPY driven by
the competitive landscape, increasing price pressure in the short half-life segment, and patient switches to ADYNOVATE.
FEIBA sales decreased by 7.3 billion JPY, or 26.1%, to 20.6 billion JPY mainly due to competitive pressure in theprophylaxis segment of the inhibitors market in Europe. Both ADVATE and FEIBA were also negatively impacted bytiming of shipments in Growth and Emerging Markets in the current period. Revenue in Rare Metabolic decreased by 12.5
billion JPY, or 13.5%, to 79.6 billion JPY primarily due to the product recall of NATPARA (for hypoparathyroidism) in
the U.S. in September 2019, which resulted in a decline of NATPARA sales of 10.9 billion JPY, or 87.8%, to 1.5 billion
JPY. Revenue in Hereditary Angioedema (HAE) was 72.9 billion JPY, a year-on-year increase of 12.6 billion JPY, or
20.9%, driven by TAKHZYRO launches with strong patient uptake. Sales of TAKHZYRO were 43.7 billion JPY, an
increase of 13.1 billion JPY, or 42.6%, versus the same period of the previous fiscal year. Sales of CINRYZE andFIRAZYR remained broadly flat versus the same period of the previous fiscal year due to successful portfolio copositioning and limited generic impact.

•

PDT Immunology. In Plasma-Derived Therapies (PDT) Immunology, revenue increased by 11.2 billion JPY, or 5.8%,
compared to the same period of the previous fiscal year to 205.9 billion JPY. Aggregate sales of immunoglobulin products
were 162.7 billion JPY, an increase of 16.2 billion JPY, or 11.0%, fueled by strong demand and growing supply
capabilities. In particular, GAMMAGARD LIQUID (for the treatment of primary immunodeficiency (PID) and multifocal
motor neuropathy (MMN)) continued to build its position as a highly recognized IVIG (intravenous immunoglobulin)
brand that is the standard of care treatment for PID and MMN in the U.S. CUVITRU, an SCIG (subcutaneous
immunoglobulin) brand also marked double digit growth. Aggregate sales of albumin products including ALBUMIN
GLASS and FLEXBUMIN (primarily used for hypovolemia and hypoalbuminemia) were 28.6 billion JPY, a decrease of
5.5 billion JPY, or 16.1%, versus the same period of the previous fiscal year. The decline was primarily related to thetiming of shipments in China; higher sales in China during the six-month period of the previous fiscal year, which were theresult of a supply phasing from the fiscal year prior to that.

•

Oncology. In Oncology, revenue was 210.0 billion JPY, a year-on-year decrease of 4.8 billion JPY, or 2.2%. Sales of
NINLARO (for multiple myeloma) were 44.4 billion JPY, an increase of 6.1 billion JPY, or 15.9%, versus the same periodof the previous fiscal year, reflecting strong growth in global sales particularly in the U.S. and China, driven in part bycertain characteristics that make it more attractive or convenient in light of the spread of COVID-19, such as a moreconvenient administration profile. NINLARO is a once-weekly oral tablet that can be taken at home, which may reducesome of the logistical burden for patients as its administration does not require an infusion or injection at a hospital, clinic
or physician’s office. Sales of ADCETRIS (for malignant lymphomas) increased by 4.8 billion JPY, or 18.7% to 30.6
billion JPY versus the same period of the previous fiscal year, reflecting strong growth in sales particularly in Japan where
it has progressively expanded its approved indications in recent years, especially at the end of 2019. Sales of ICLUSIG (forleukemia) increased by 2.2 billion JPY, or 14.8%, versus the same period of the previous fiscal year to 16.8 billion JPY,
benefitting from a new omni-channel promotion approach in the U.S. and from geographic expansion ex-U.S. Sales of
ALUNBRIG (for non-small cell lung cancer) increased by 0.9 billion JPY, or 27.4%, versus the same period of theprevious fiscal year to 4.3 billion JPY, as it continues to launch in European and emerging countries. The growth of theaforementioned products was offset by the decline of off-patented products. Sales of VELCADE (for multiple myeloma)
decreased by 13.6 billion JPY, or 21.4% compared to the same period of the previous fiscal year to 50.0 billion JPY. This
included ex-U.S. royalty income of 2.4 billion JPY, a significant year-on-year decrease of 4.1 billion JPY, or 62.6%, due togeneric entries in Europe and China in 2019. Sales in the U.S. decreased by 9.5 billion JPY, or 16.7%, to 47.6 billion JPY
versus the same period of the previous fiscal year, reflecting fewer new patient starts in first-line therapy. We believe thiswas a consequence of patients refraining from visiting medical care providers due to COVID-19, as VELCADE isadministered predominantly via a subcutaneous injection at medical institutions, as well as the approval of a competitor
product’s subcutaneous formulation at the beginning of May 2020 in the U.S. Sales of leuprorelin (for endometriosis,
uterine fibroids, premenopausal breast cancer, prostatic cancer, etc.), an off-patented product, decreased by 6.8 billion JPY,
or 12.0%, versus the same period of the previous fiscal year to 49.9 billion JPY, mainly due to a lower supply revenue inthe U.S. This is in relation to production stoppages initiated at our manufacturing facility in Japan to enhance overall
compliance in alignment with Takeda standards, extended as a part of corrective actions as follow up to recent inspection
activities.
3

Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Six-month
Period Ended September 30, 2020 (Consolidated)•

Neuroscience. In Neuroscience, revenue was 207.8 billion JPY, a year-on-year decrease of 6.1 billion JPY, or 2.8%. Thisdecrease was partially attributable to REMINYL (for Alzheimer's disease), which faced generic introduction in Japan inJune 2020, and sales of which decreased by 3.5 billion JPY, or 38.7%, to 5.5 billion JPY. Sales of ROZEREM (forinsomnia) and ADDERALL XR (for attention deficit hyperactivity disorder (ADHD)) were also negatively impacted by
the loss of exclusivity in the U.S. in July 2019. Sales of VYVANSE (for ADHD), a leading branded medication in the U.S.,
were 132.6 billion JPY, an increase of 1.1 billion JPY, or 0.8%, versus the same period of the previous fiscal year.
Although VYVANSE had been negatively affected by COVID-19 in the first several months of the period when stay-athome restrictions reduced patient visits, subsequent diagnoses and created temporary discontinuation of medication, thetrend has normalized to pre-COVID-19 levels and the product returned to growth in the latest three-month period. Sales of
TRINTELLIX (for major depressive disorder (MDD)) were 35.0 billion JPY, an increase of 0.3 billion JPY, or 0.9%,
versus the same period of the previous fiscal year.

Revenue by Geographic Region:
Revenue:Japan
United States
Europe and Canada
Russia/CIS
Latin America
Asia (excluding Japan)
Other＊Total

FY2019 H1
299.4
805.9
321.8
36.9
75.8
83.9
36.5
1,660.2

Billion JPY; percentages are portion of total revenue
FY2020 H1
18.0 %
282.4
17.8 %
48.5 %
786.1
49.4 %
19.4 %
327.2
20.6 %
2.2 %
21.7
1.4 %
4.6 %
59.0
3.7 %
5.1 %
78.3
4.9 %
2.2 %
36.2
2.3 %
100.0 %
1,590.8
100.0 %* Other includes the Middle East, Oceania and Africa.

Cost of Sales. Cost of Sales decreased by 74.3 billion JPY, or 13.2%, to 487.7 billion JPY and the Cost of Sales Ratio
decreased by 3.2 pp to 30.７% compared to the same period of the previous fiscal year. This was primarily caused by 80.2
billion JPY decrease in non-cash charges related to the unwind of the fair value step up on acquired inventory recognized inconnection with the Shire Acquisition.
Selling, General and Administrative (SG&A) expenses. SG&A expenses decreased by 43.8 billion JPY, or 9.5%, to 418.6
billion JPY compared to the same period of the previous fiscal year, primarily due to the favorable impact from cost efficiencies
and synergies from the integration of Shire and lower spend from impacts of COVID-19 such as less travel and fewer
commercial events.
Research and Development (R&D) expenses. R&D expenses decreased by 5.4 billion JPY, or 2.3%, to 225.0 billion JPY,
primarily due to savings from pipeline prioritization.
Amortization and Impairment Losses on Intangible Assets Associated with Products. Amortization and Impairment Losses on
Intangible Assets Associated with Products decreased by 17.1 billion JPY, or 7.6%, to 208.1 billion JPY compared to the same
period of the previous fiscal year. This decrease is primarily attributable to an impairment charge of 15.6 billion JPY recordedin the same period of the previous fiscal year related to our decision to terminate the TAK-616 AMR program following theinterim readout in May 2019.
Other Operating Income. Other Operating Income increased by 58.1 billion JPY, or 513.8%, to 69.5 billion JPY compared tothe same period of the previous fiscal year, predominantly driven by a 60.2 billion JPY gain triggered by an update topreviously recognized liabilities for pipeline compound SHP647 and certain associated rights ("SHP647") to reflect
management’s decision to terminate the clinical trial program related to SHP647 upon the European Commission’s decision in
May 2020 to release Takeda’s obligation to divest SHP647.
Other Operating Expenses. Other Operating Expenses were 105.2 billion JPY, an increase of 22.8 billion JPY, or 27.7%,
compared to the same period of the previous fiscal year, primarily due to an 18.6 billion JPY loss recognized in the threemonths ended June 30, 2020 from changes in the fair value of contingent consideration assets driven by the impact of Novartis'
4

Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Six-month
Period Ended September 30, 2020 (Consolidated)(ii) Underlying Results (April 1 to September 30, 2020)
Definition of Core and Underlying Growth
Takeda uses the concept of Underlying Growth for internal planning and performance evaluation purposes.
Underlying Growth compares two periods (fiscal quarters or years) of financial results under a common basis and is used bymanagement to assess the business. These financial results are calculated on a constant currency basis using a full year plan rateand exclude the impacts of divestitures and other amounts that are unusual, non-recurring items or unrelated to our ongoing
operations. Although these are not measures defined by IFRS, Takeda believes Underlying Growth is useful to investors as itprovides a consistent measure of our performance.
Takeda uses "Underlying Revenue Growth", "Underlying Core Operating Profit Growth", and "Underlying Core EPS Growth"
as key financial metrics.
Underlying Revenue represents revenue on a constant currency basis and excluding non-recurring items and the impact ofdivestitures that occurred during the reported periods presented.
Underlying Core Operating Profit represents Core Operating Profit (as defined below) on a constant currency basis and further
adjusted to exclude the impacts of divestitures that occurred during the reporting periods presented.
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 purchaseaccounting effects and transaction related costs.
Underlying Core EPS represents net profit based on a constant currency basis, adjusted to exclude the impact of divestitures,
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 outstanding shares(excluding treasury shares) as of the end of the comparative period.
Underlying Results
FY2020 H1
Underlying Revenue Growth
Underlying Core Operating Profit Growth
Underlying Core Operating Profit Margin
Underlying Core EPS

+0.5%
+1.9%
31.6%
-0.4%

Underlying Revenue Growth was 0.5% compared to the same six-month period of the previous fiscal year. Underlying revenue
attributable to Takeda’s 14 global brands* grew by 15.4%, despite negative impacts such as the NATPARA recall in the U.S.
and a decline of off-patented products.
* Takeda's 14 global brands
GI: ENTYVIO, GATTEX/REVESTIVE, ALOFISEL
Rare Diseases: NATPARA, ADYNOVATE/ADYNOVI, TAKHZYRO, ELAPRASE, VPRIVPDT Immunology: GAMMAGARD LIQUID/KIOVIG, HYQVIA, CUVITRU, ALUBUMIN/FLEXBUMIN
Oncology: NINLARO, ALUNBRIG

6

Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Six-month
Period Ended September 30, 2020 (Consolidated)

Underlying Revenue Growth by Therapeutic Area
GI
Rare Diseases
Rare Metabolic
Rare Hematology
Hereditary Angioedema
PDT Immunology
Oncology
Neuroscience
Other
Total

+14.5%-5.3%-6.4%-14.7%+23.8%
+8.8%
+0.3%
-0.4%
-13.0%+0.5%(Note) Underlying Revenue represents revenue on a constant currency basis and excluding non-recurring items and the impact ofdivestitures. Please refer to 1. Financial Highlights for the Six-month Period Ended September 30, 2020, (1) Business
Performance, (i) Consolidated Financial Results, for the revenue of each core therapeutic areas and sales of major products before
underlying adjustments.

Major non-recurring items and the impact of divestitures excluded to calculate Underlying Revenue:•

Net sales of XIIDRA, a treatment for dry eye disease, the divestiture of which was completed in July 2019, are excluded
from the same period of the previous fiscal year.

•

Revenue of select over-the-counter and non-core products in a number of Near East, Middle East and Africa countries, is
excluded from the same period of the previous fiscal year as the divestiture was completed in March 2020.

•

Revenue of select over-the-counter and non-core products in Russia, Georgia, and a number of countries from within the
Commonwealth of Independent States, is excluded from the same period of the previous fiscal year as the divestiture wascompleted in March 2020.

•

Net sales from TACHOSIL are excluded from both the current period and the same period of the previous fiscal year.

•

Net sales of products related to divestiture agreements that were publicly announced and expected to complete within thecalendar year 2020 are also excluded from both the current period and the same period of the previous fiscal year.

Underlying Core Operating Profit Growth was 1.9% compared to the same six-month period of the previous fiscal year,
reflecting cost synergies and lower spend from impacts of COVID-19 offset by lower Gross Profit due to product mix.
Core Operating Profit for the current period, which excludes items unrelated to Takeda's core operations such as the integrationof Shire related costs and non-cash expenses from purchase accounting, was 507.6 billion JPY.
Underlying Core Operating Profit Margin for the current period was 31.6%, an increase of 0.4 pp compared to the same sixmonth period of the previous fiscal year.
Underlying Core EPS Growth for the current period was -0.4%.

7

Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Six-month
Period Ended September 30, 2020 (Consolidated)(2) Consolidated Financial Position
Assets. Total Assets as of September 30, 2020 were 12,414.7 billion JPY, reflecting a decrease of 406.3 billion JPY comparedto the previous fiscal year-end. Intangible Assets decreased by 293.1 billion JPY mainly due to amortization. Goodwill also
decreased by 156.4 billion JPY resulting from divestitures for the current period. These decreases were partially offset by anincrease in Assets Held for Sale of 157.2 billion JPY mainly due to reclassification of assets related to the divestiture of Takeda
Consumer Healthcare Company Limited*1.
*1

In August 2020, Takeda announced that it has entered into an agreement to divest Takeda Consumer Healthcare Company
Limited to Blackstone.

Liabilities. Total Liabilities as of September 30, 2020 were 7,748.2 billion JPY, reflecting a decrease of 345.4 billion JPY
compared to the previous fiscal year-end. Bonds and Loans decreased by 185.3 billion JPY to 4,908.0 billion JPY*2 primarily asa result of the repayment of loans, the redemption of bonds and the reduction in commercial paper drawings. In addition,
Deferred Tax Liabilities and Liabilities Held for Sale decreased by 73.3 billion JPY and 67.2 billion JPY, respectively.
*2

The carrying amount of Bonds was 3,830.4 billion JPY and Loans was 1,077.6 billion JPY as of September 30, 2020.
Breakdown of Bonds and Loans carrying amount is as follows.

Bonds:Name of Bond
(Face Value if Denominated in
Foreign Currency)
Unsecured US dollar denominated seniornotes (1,520 million USD)
Unsecured US dollar denominated seniornotes (6,400 million USD)
Unsecured US dollar denominated seniornotes (500 million USD)
Unsecured Euro denominated senior notes(6,250 million EUR)
Unsecured US dollar denominated seniornotes (4,500 million USD)
Hybrid bonds (subordinated bonds)
Unsecured US dollar denominated seniornotes (7,000 million USD)
Unsecured Euro denominated senior notes(3,600 million EUR)
Commercial Paper

Issuance
June, 2015
September, 2016
July, 2017
November, 2018
November, 2018
June, 2019
July, 2020
July, 2020
July, 2020 ~September, 2020

Total

8

Maturity
June, 2022 ~June, 2045
September, 2021 ~September, 2026
January, 2022
November, 2020 ~November, 2030
November, 2021 ~November, 2028
June, 2079
March, 2030 ~July, 2060
July, 2027 ~July, 2040
October, 2020 ~December, 2020

Carrying Amount(Billion JPY)
160.4
642.7
52.7
769.3
473.3
497.1
734.1
441.7
59.1
3,830.4

Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Six-month
Period Ended September 30, 2020 (Consolidated)billion JPY from an increase in inventories for the current period due to a decrease of the unwind of the fair value step up on
acquired inventory recorded in relation to the Shire Acquisition.
Net cash from investing activities was 28.2 billion JPY for the current period compared to 330.4 billion JPY for the same
period of the previous year. This decrease of 302.2 billion JPY was mainly due to a decrease in proceeds from sales of businessof 344.1 billion JPY reflecting the sale of XIIDRA of 375.5 billion JPY for the same period of the previous year.
Net cash used in financing activities was 418.2 billion JPY for the current period compared to 811.7 billion JPY for the same
period of the previous year. This decrease in net cash used of 393.5 billion JPY was mainly due to an increase in proceeds fromissuance of bonds of 683.3 billion JPY as a result of issuance of U.S. dollar-denominated senior notes 7,000 million USD and
Euro-denominated senior notes 3,600 million EUR for the current period compared to 500.0 billion JPY issuance of hybrid
bonds for the same period of the previous year. There was a favorable impact from short-term loans and commercial papers of
371.5 billion JPY primarily due to repayment of the short-term syndicated loans 500.0 billion JPY in June 2019. These
decreases in net cash used were partially offset by an increase in repayments of bonds and long-term loans of 642.5 billion JPY
primarily resulting from early redemptions and repayments for the current period.

10Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Six-month
Period Ended September 30, 2020 (Consolidated)(3) Outlook for the Fiscal Year Ending March 31, 2021
The full year consolidated reported forecast for fiscal 2020 (fiscal year ending March 31, 2021) has been revised from theprevious forecast (announced on July 31, 2020), as follows:
Full Year Reported Forecast for the Fiscal Year Ending March 31, 2021 (FY2020)
Billion JPY or percentage

Previous Forecast Revised Forecast(July 31, 2020)

Revenue
Operating profit
Profit before tax
Net profit for the period(attributable to owners of the Company)

EPS (JPY)
Core Operating Profit
Core EPS (JPY)(October 29, 2020)

vs. Previous Forecast(50.0)(1.5)%+39.0+9.9 %+28.0+12.2 %

3,250.0
395.0
230.0

3,200.0
434.0
258.0

92.0

124.0

+32.0

+34.8 %

58.91
984.0
420

79.39
984.0
420

+20.48——+34.8 %——The revenue forecast has been decreased by 50.0 billion JPY, or 1.5%, versus the previous forecast to 3,200.0 billion JPY. Thisis mainly due to changes in the assumptions of foreign exchange rates reflecting the trend towards appreciation of the yen.
The Operating Profit forecast has been increased by 39.0 billion JPY, or 9.9%, to 434.0 billion JPY. This reflects assumptions
for one-time gains from several announced divestitures that were not included in the previous forecast but are now expected tobe recognized within the current fiscal year, with the exception of the sale of shareholdings in Takeda Consumer Healthcare
Company Limited*1. These divestiture gains are non-recurring items and unrelated to our ongoing operations, and therefore do
not affect our Core Operating Profit forecast, which remains unchanged at 984.0 billion JPY. Although there is a negative
impact to Core Operating Profit from foreign exchange rate fluctuations, this is expected to be absorbed by business momentum
underpinned by cost synergies and efficiencies.
The net profit for the period attributable to owners of the Company forecast has been increased by 32.0 billion JPY, or 34.8%,
to 124.0 billion JPY, primarily due to the increase in profit before tax and updated tax rate assumptions.
*1

In August 2020, Takeda announced that it has entered into an agreement to divest Takeda Consumer Healthcare Company
Limited (“TCHC”), a wholly-owned subsidiary of Takeda focused on the consumer health care market primarily in Japan, toBlackstone for a total value of 242.0 billion JPY*2. The transaction is expected to close by March 31, 2021, subject tocustomary legal and regulatory closing conditions. Takeda anticipates a pre-tax gain of approximately 140.0 billion JPY on
the sale of shares of TCHC, to be recognized when the transfer of shares is executed and completed, however, it is notincluded in the revised forecast for the fiscal year ending March 31, 2021. Takeda will continue to assess the appropriate
timing of inclusion of this event into its forecast, in consideration of the certainty of exact timing of deal closing.

*2

Enterprise value. Actual transfer price will be determined after adjustment for items including net debt and working capital.

11

Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Six-month
Period Ended September 30, 2020 (Consolidated)

Major assumptions used in preparing the FY2020 Revised Reported Forecast
Billion JPY or percentage

Previous Forecast

Revised Forecast(July 31, 2020)
1 USD = 109 JPY
1 Euro = 120 JPY
1 RUB = 1.6 JPY
1 BRL = 23.3 JPY
1 CNY = 15.5 JPY

FX rates
R&D expenses
Shire integration costs
Other operating expenses (restructuring costs)
Shire purchase accounting adjustments
Cost of sales (unwind of inventories step-up)
Cost of sales (depreciation of PPE step-up)
SG&A and R&D expenses
Amortization of intangibles assets (Shire acquisition)
Other operating income (release of obligation to divest SHP647)
Other non-cash items
Amortization of intangible assets (Legacy Takeda)
Impairment losses on intangible assets
Other operating income/expenses
Other operating income(excluding release of obligation to divest SHP647)
Other operating expenses(excluding Shire integration related)
Finance expenses
Interests
OthersFree cash flow (including announced divestitures)
Capital expenditures (cash flow base)
Depreciation and amortization(excluding intangible assets associated with products)
Cash tax rate on adjusted EBITDA (excluding divestitures)(October 29, 2020)
1 USD = 106 JPY
1 Euro = 122 JPY
1 RUB = 1.4 JPY
1 BRL = 19.4 JPY
1 CNY = 15.3 JPY(447.0)(448.0)(90.0)(90.0)(85.7)(2.0)
0.7(324.0)60.0(79.1)(2.0)
0.7(319.0)60.0(83.0)(50.0)(84.0)(50.0)

58.0

103.4

(73.0)(90.0)(133.0)(20.0)
600.0 to 700.0(180.0) to (230.0)(131.0)(35.0)
700.0 to 800.0(180.0) to (230.0)(150.0)(150.0)High teens - low 20s%

Mid-high teen %Management Guidance*

Underlying Revenue Growth
Underlying Core Operating Profit Growth
Underlying Core Operating Profit Margin
Underlying Core EPS Growth*

Guidance as ofJuly 31, 2020
Low-single-digit growthHigh-single-digit growth
Low-30s%
Low-teen growth

Guidance as of
October 29, 2020
Low-single-digit growthHigh-single-digit growth
Low-30s%
Low-teen growth

Please refer to section 1. (1) (ii) Underlying Results (April 1 to September 30, 2020), Definition of Core and Underlying Growth.

There are no changes to Management Guidance.

12

Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Six-month
Period Ended September 30, 2020 (Consolidated)

Other assumptions used in preparing the FY2020 Revised Reported Forecast and Management Guidance• To date, Takeda has not experienced a material effect on its financial results as a result of the global spread of the novel
coronavirus infectious disease (COVID-19), despite the various effects on its operations as detailed elsewhere herein. Basedon currently available information, Takeda believes that its financial results for FY2020 will not be materially affected by
COVID-19 and, accordingly, Takeda's FY2020 forecast reflects this belief. However, the situation surrounding COVID-19
remains highly fluid, and future COVID-19-related developments in FY2020, including new or additional COVID-19
outbreaks and additional or extended lockdowns, shelter-in-place orders or other government action in major markets, could
result in further or more serious disruptions to Takeda’s business, such as slowdowns in demand for Takeda’s products,
supply chain related issues or significant delays in its clinical trial programs. These events, if they occur, could result in an
additional impact on Takeda’s business, results of operations or financial condition, as well as result in significant deviations
from Takeda’s FY2020 forecast.
• Takeda does not expect any additional 505(b)2 competitor for subcutaneous VELCADE to launch in the U.S. within
FY2020;• The revised forecast includes the impact of divestitures disclosed by Takeda as of October 29, 2020, with the exception of
the divestment of TCHC.
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.

13

Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Six-month
Period Ended September 30, 2020 (Consolidated)(4) Impact of the Spread of the Novel Coronavirus Infectious Disease (COVID-19) and Takeda’s Initiatives in Response(i) Impact of COVID-19 on Takeda’s Operations and Financial Condition
The effects of the spread of COVID-19 are impacting, or could potentially impact, various business activities within Takeda.
In monitoring demand for our products, we have seen limited impact to date as many of our medicines are for severe chronic
or life-threatening diseases, without the requirement of a hospital elective procedure. However, an adverse effect due to the
spread of COVID-19 has been observed in certain therapeutic areas, especially in Neuroscience in the first several months ofthe outbreak, for reasons such as less frequent visits by patients to medical care providers, on the other hand, an expansionof certain products with a more convenient administration profile was observed in the early phase of the outbreak. Both ofthese trends normalized towards the end of the six-month period to pre-COVID-19 levels. In terms of our global supply
chain, based on current assessments, we have not yet seen, nor do we anticipate, any material potential supply distribution
issues due to the COVID-19 outbreak.
During the course of our business operations, we have implemented voluntary suspensions of certain business activities,
including business travel, attending industry events, and holding company-sponsored events.
In the early stages of the global pandemic, we placed a temporary pause on the initiation of new clinical trial studies, withthe exception of CoVIg-19, the investigational plasma-derived therapy for COVID-19. At the same time, for studies alreadyongoing, we temporarily paused the activation of new study sites and new patient enrollment with a small number of
exceptions. This was a short-term action and we have resumed most of our trial activities in the last three months.
While we do anticipate some delays on some studies, we are closely monitoring the situation on a per-study level, down toeach country and site.
As we continue to monitor developments in the financial markets, we currently do not anticipate any material liquidity or
funding-related issues.
(ii) Takeda’s Initiatives to Mitigate the Impact of COVID-19
Guided by our values, Takeda's response to COVID-19 has focused 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 the communities where our employees live and work.
In order to address the issues relating to COVID-19, in January 2020 we activated a Global Crisis Management Committee(GCMC), who along with the support of internal and external experts has guided Takeda’s response to the pandemic. This
includes the development of employee guidance, support resources, and implementing enhanced infection control andworkplace case management protocols across our essential operations. The GCMC have also developed comprehensive
workplace readiness checklists to support a safe and gradual return to office workplaces where this is possible.
With regards to measures to safeguard employees, we have continued to enforce work from home policies and provide
enhanced technology to support such initiatives. We have applied our telework guidance broadly to our global employees
including as many of our customer facing employees as possible, especially those who interact with health care
professionals. For our employees who are required to continue to work on-site in our manufacturing, laboratory, and BioLife
plasma donation facilities, we have implemented enhanced safety measures to mitigate the spread of the virus.
Our Global Crisis Management Committee and a dedicated Return to the Workplace Team developed guidance on how to
configure our "new workplace" to limit the introduction and transmission of the COVID-19 virus while maintaining andeven strengthening our operations. Plans are being tailored to each country and are based on the science, epidemiology, andrelevant local public health context, but also follow common principles and requirements such as compliance with local
government and public health regulations; workplace readiness including necessary infection prevention measures like facecoverings and physical distancing; reduced population density; enhanced infection control protocols; employee-specificcircumstances; and a careful, stepwise approach. We do not intend to have one single strategy or policy. Instead, we are
creating core principles, design guidance and toolkits that will help Takeda leaders determine and implement the best
working environment strategy for their teams post-COVID.
We have also extended restrictions on all non-essential international travel in principle through December 31, 2020 and onlarge external meetings until March 31, 2021 while monitoring the situation on an ongoing basis.
Our field force are resuming a small number of face to face engagements with customers, with the majority of allinteractions still virtual. Where we are engaging face to face, it is with the agreement of healthcare providers and employees

14Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Six-month
Period Ended September 30, 2020 (Consolidated)follow strict infection prevention protocols set out by both Takeda and any additional public health and customer
requirements.
Takeda has aided the COVID-19 response through donations, including approximately US$25 million to non-profit
organizations including the Red Cross and United Nations-led organizations (World Food Programme (WFP), United
Nations Population Fund (UNFPA), and International Atomic Energy Agency (IAEA)), while also providing in-kind
donations and matching employee donations.
In order to maintain business continuity, we are managing levels of inventory, including assessing alternative suppliers forthe production of our medicines, to secure product supply continuity for patients. This strategy is generally applied acrossour global supply chain for key starting materials, excipients, raw materials, APIs, and finished products. We are tracking
the situation as it evolves and will take all necessary actions in an effort to ensure supply continuity for the people we serve.
In R&D, where possible, Takeda has implemented solutions such as direct to patient delivery of study medicines and the reevaluation of trial design to account for potential disruptions. We continue to assess and build out digital technologies toenable remote monitoring of patients enrolled in clinical trials.
CoVIg-19 is one example of Takeda’s initiatives to develop potential therapies to combat COVID-19. In April 2020, we
joined other leading plasma companies to form the CoVIg-19 Plasma Alliance, putting patients first and setting aside
individual company interests in the quest to fight COVID-19. In early October 2020, the CoVIg-19 Plasma Allianceannounced patients are now being enrolled in the NIAID/NIH Phase 3 ITAC clinical trial evaluating the safety, tolerability
and efficacy of hyperimmune globulin (H-Ig) to treat individuals at risk for serious complications from COVID-19. We
expect it will take several months to complete the study. Assuming the clinical trial is successful, we will prepare to submit
for regulatory authorization. We continue to urge individuals who have recovered from COVID-19 to donate convalescentplasma, which contains vital antibodies that could help others fight the disease, through the “Fight Is In Us” campaign in theU.S.
In addition to the CoVIg-19 Plasma Alliance, Takeda has undertaken a number of efforts to help the world respond to
COVID-19, including the evaluation of a number of our marketed products and pipeline compounds for efficacy against the
COVID-19 virus and participation in global research collaborations.
In August 2020, Takeda announced our partnership with Novavax, for the development, manufacturing andcommercialization of the Novavax's COVID-19 vaccine candidate (NVX CoV2373) in Japan for protection of the Japanese
population.
(iii) Business risks associated with the continued global spread of COVID-19
Depending on the severity and duration of the impacts resulting from COVID-19 pandemic, and despite our various efforts,
we may experience further adverse effects on our business including, but not limited to, disruptions to our ability to procure
raw materials or to supply products, additional disruptions to our clinical trial programs, or disruptions to our ability toobserve regulations applicable to us. It is currently unclear how long the pandemic will last and, even if the global spread of
COVID-19 is slowed or halted, the effects may continue to affect our business, financial condition and results of ouroperations for a potentially extended period of time. It is unclear what the medium-term financial implications of the
COVID-19 pandemic will be, particularly with respect to those which may arise from issues such as rising unemployment,changes in payer mix, and the possibility of the introduction of government initiatives to reduce healthcare spending.
We will continue to closely monitor the situation and take necessary measures to minimize any future business risks.
(iv) FY2020 H1 financial impact from COVID-19
The overall impact of the global spread of COVID-19 on Takeda’s consolidated financial results for the six-month period
ended September 30, 2020 was not material. In terms of revenue, although an adverse effect due to COVID-19 has been
observed in certain therapeutic areas, especially in Neuroscience in the first several months of the period, for reasons such as
patients’ less frequent visits to medical care providers, on the other hand, an expansion of certain products with a moreconvenient administration profile was observed in the early phase of the outbreak. Both of these trends normalized towards
the end of the six-month period to pre-COVID-19 levels. With regard to operating expenses, voluntary suspension of certain
business activities such as business travel and events in response to COVID-19 led to lower spending. As a result of thesefactors, an impact on Takeda’s profit was immaterial.

15

Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Six-month
Period Ended September 30, 2020 (Consolidated)(3) Condensed Interim Consolidated Statements of Financial Position
JPY (millions)
As of March 31,
As of September
2020
30, 2020
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
Assets held for sale
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
Liabilities held for sale
Total current liabilities
Total liabilities

19

1,386,370
4,012,528
4,171,361
107,334
262,121103,846
308,102
10,351,662

1,366,950
3,856,147
3,878,257
100,052
249,550
100,226
278,429
9,829,611

759,599
757,005
15,822
27,916
114,196
637,614
157,280
2,469,432
12,821,094

743,482753,985
15,314
15,821
111,215
630,868
314,451
2,585,136
12,414,747

4,506,487
399,129
156,61754,93237,60552,793
710,147
5,917,710

4,631,418
476,605
165,764
47,86232,37447,719636,845
6,038,587

586,817
318,816
95,706
182,738
405,245499,386
87,1902,175,898
8,093,608

276,616
272,778
90,881
144,711457,566
447,085
20,024
1,709,661
7,748,248

Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Six-month
Period Ended September 30, 2020 (Consolidated)(4) Condensed Interim Consolidated Statements of Changes in Equity
Six-month period ended September 30, 2019 (From April 1 to September 30, 2019)
JPY (millions)
Equity attributable to owners of the company
Other components of equity

Share
capital
As of April 1, 2019

Sharepremium

1,643,585

Treasuryshares1,650,232

Restated opening balance

Exchangedifferenceson translationof foreign
operations

Retainedearnings(57,142)

1,595,431

Cumulative effects of changes in accounting policies

Changes infair value offinancialassetsmeasured atfair value
through othercomprehensive
income299,128

46,380299,128

46,380(512)
1,643,585

1,650,232(57,142)

1,594,919

Net profit for the period

74,738Other comprehensive income (loss)
Comprehensive income (loss) for the period——

24,50724,507—74,738(182,003)(9,914)(182,003)(9,914)

Transaction with owners:
Issuance of new shares
Acquisition of treasury shares(52,737)

Disposal of treasury shares(0)0Dividends(140,836)

Transfers from other components of equity

16,388

Share-based compensation
Exercise of share-based awards
Total transactions with owners
As of September 30, 2019

(21,000)

13,524(22,122)

22,79724,507

15,909(29,940)(124,448)—(21,000)

1,668,092

1,666,141(87,082)

1,545,209

117,125

15,466Equity attributable to owners of the company
Other components of equity

As of April 1, 2019

Cash flow
hedgesHedging
cost

Remeasurementof defined
benefit pensions
plans

2,959

1,412

—

Cumulative effects of changes in accounting policies
Restated opening balance

Total

Noncontrollinginterests

Total

349,879

5,181,985

—

(512)

Total
equity4,006

5,185,991

5,181,473

4,006

5,185,479

(512)

2,959

1,412

—

349,879—

74,73896

74,834

Other comprehensive income (loss)(1,256)(67)(4,612)(197,852)(197,852)

21(197,831)

Comprehensive income (loss) for the period(1,256)(67)(4,612)(197,852)(123,114)

117(122,997)

Issuance of new shares—

49,01449,014

Acquisition of treasury shares—(52,737)(52,737)

Disposal of treasury shares—

0

Dividends—(140,836)

Net profit for the period

Transaction with owners:

Transfers from other components of equity(140,989)(16,388)——

Share-based compensation—

13,524

13,524

Exercise of share-based awards

—

675

675

Total transactions with owners
As of September 30, 2019

4,612

0
(153)

—

—

4,612

(16,388)(130,360)(153)(130,513)

1,703

1,345

—

135,639

4,927,999

3,970

4,931,969(Note) During the year ended March 31, 2020, Takeda completed the purchase price allocation for the assets acquired and liabilities assumed
as part of the Shire Acquisition. Accordingly, Condensed Interim Consolidated Statements of Changes in Equity for the six-month
period ended September 30, 2019 were retrospectively adjusted.

21

Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Six-month
Period Ended September 30, 2020 (Consolidated)

Six-month period ended September 30, 2020 (From April 1 to September 30, 2020)
JPY (millions)
Equity attributable to owners of the company
Other components of equity

Share
capital
As of April 1, 2020

Sharepremium

1,668,123

Treasuryshares1,680,287

Exchangedifferenceson translationof foreign
operations

Retainedearnings(87,463)

1,369,972

Net profit for the period

91,84822,891(31,402)31,318(31,402)31,31886,548Other comprehensive income (loss)
Comprehensive income (loss) for the period
Transaction with owners:
Issuance of new shares

—

—

22

22

—

Acquisition of treasury shares

86,548(2,135)

Disposal of treasury shares(0)

2

Dividends(141,858)

Transfers from other components of equity

22,403

Share-based compensation(25,162)

18,098Exercise of share-based awards(29,535)

30,031

22(11,415)

27,898(119,455)—(25,162)

1,668,145

1,668,872(59,565)

1,337,065

60,446

29,047

Total transactions with owners
As of September 30, 2020

Changes infair value offinancialassetsmeasured atfair value
through othercomprehensive
incomeEquity attributable to owners of the company
Other components of equity

Cash flow
hedges
As of April 1, 2020

(22,730)

Hedgingcost
555

Remeasurementof defined benefit
pensions plans—

Net profit for the period

Total

Noncontrollinginterests

Total

Total
equity92,564

4,723,483

4,003

4,727,486—

86,54841

86,589Other comprehensive income (loss)(5,889)(13,544)(2,759)(22,276)(22,276)130(22,146)

Comprehensive income (loss) for the period(5,889)(13,544)(2,759)(22,276)

64,272

171

64,443Issuance of new shares

—

44

44

Acquisition of treasury shares—(2,135)(2,135)

Disposal of treasury shares

—

2

2

Dividends—(141,858)

Transaction with owners:

Transfers from other components of equity

2,759

Share-based compensation
Exercise of share-based awards
Total transactions with owners
As of September 30, 2020

(77)

(141,935)(22,403)———

18,09818,098

—

496

—

—

2,759

(22,403)(125,353)(77)(125,430)(28,619)(12,989)—

47,885

4,662,402

4,097

4,666,499

22

496

Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Six-month
Period Ended September 30, 2020 (Consolidated)(5) Condensed Interim Consolidated Statements of Cash Flows
JPY (millions)Six-month Period Ended September 30,
2019
2020
Cash flows from operating activities:
Net profit for the period
Depreciation and amortization
Impairment losses
Equity-settled share-based compensation
Change in estimate of liabilities related to SHP647
Loss on sales and disposal of property, plant and equipment
Gain on divestment of business and subsidiaries
Loss on liquidation of foreign operations
Change in fair value of financial assets and liabilities associated with contingent consideration
arrangements, net
Finance (income) and expenses, net
Share of loss (profit) of investments accounted for using the equity method
Income tax expenses (benefit)
Changes in assets and liabilities:
Increase in trade and other receivables
Decrease in inventories
Decrease in trade and other payables
Increase in provisions
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 from investing activities

23

74,834
293,099
18,557
13,524—240(3,516)399

86,589280,5318,303
18,098(60,179)
323
(730)
—

2,605
81,898(4,031)(43,668)

19,937
81,092
8,935
38,972(53,938)
61,129(41,477)
47,591(15,575)
431,671(97,656)
7,072
341,087(1,542)
3,010(26,336)
41,490(26,377)
472,116(103,775)
23,670392,011

7,116
1,141
(55,083)69(21,354)(3,946)
40,582(4,580)375,536(9,067)
330,414577
177(50,479)
38,535(30,413)(6,219)50,650—31,400(6,004)28,224

Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Six-month
Period Ended September 30, 2020 (Consolidated)

JPY (millions)Six-month Period Ended September 30,
2019
2020
Cash flows from financing activities:
Net decrease in short-term loans and commercial papers
Proceeds from issuance of bonds and long-term loans
Repayments of bonds and long-term loans
Payments for settlement of forward rate agreement related to bonds
Acquisition of treasury sharesInterest paid
Dividends paid
Acquisition of non-controlling interests
Repayments of lease liabilities
Other, net
Net cash used in financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
(Consolidated statements of financial position)
Cash and cash equivalents reclassified back from assets held for sale
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
Cash and cash equivalents reclassified to assets held for sale
Cash and cash equivalents at the end of the period(Consolidated statements of financial position)(461,371)
496,190(623,119)—(3,724)(61,039)(140,811)(1,700)(14,624)(1,472)(811,670)(140,169)(89,917)
1,179,515(1,265,629)(34,830)(2,135)(47,562)(141,754)—(15,779)(119)(418,210)
2,025

702,093629
702,722(19,036)
543,517—637,614—637,614(8,570)631,069(201)

543,517630,868(Note) During the year ended March 31, 2020, Takeda completed the purchase price allocation for the assets acquired and liabilities assumed
as part of the Shire Acquisition. Accordingly, Condensed Interim Consolidated Statements of Cash Flows for the six-month period
ended September 30, 2019 were retrospectively adjusted.

24

Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Six-month
Period Ended September 30, 2020 (Consolidated)(6) Notes to Condensed Interim Consolidated Financial Statements(Significant Uncertainty Regarding Going Concern Assumption)
Six-month period ended September 30, 2020 (April 1 to September 30, 2020)
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, 2020.
Takeda calculated income tax expenses for the six-month period ended September 30, 2020, based on the estimated averageannual effective tax rate.
(Significant Changes in Equity Attributable to Owners of the Company)
Six-month period ended September 30, 2020 (April 1 to September 30, 2020)
Not applicable.
(Significant Subsequent Events)
Not applicable.

25

APPENDIX
1 FY2020 H1 Reconciliation from Reported Revenue to Underlying Revenue
2 FY2020 H1 Reconciliation from Reported to Core/Underlying Core
3 FY2019 H1 Reconciliation from Reported to Core/Underlying Core2 FY2020 H1 Reconciliation from Reported to Core/Underlying CoreFY2020 H1

CORE TOUNDERLYING
CORE ADJ.

REPORTED TO CORE ADJUSTMENTS(Billion JPY)
Revenue
Cost of sales
Gross Profit
SG&A expenses
R&D expenses
Amortization of intangible
assetsImpairment losses on
intangible assets
Other operating income
Other operating expenses
Operating profit
MarginAmortization
Other& impairment operatingof intangible
income/REPORTED
assetsexpense1,590.8(487.7)
1,103.1(418.6)(225.0)(206.0)

45.7

(2.1)

2.1

69.5
(105.2)215.6
13.6 %

Financial income/expenses(81.1)

Equity income/loss
Profit before tax
Tax expenses
Non-controlling interests
Net profit
EPS (yen)

(8.9)
125.6
(39.0)
(0.0)
86.5
55

Number of shares(millions)

1,561* Underlying Core Operating Profit Margin.

47.8

Shire
integration
costs

0.0
(0.2)

Shire
TEVA JV
purchase
relatedaccounting accounting
adjustments adjustments

Swiss
tax
reform

47.3
47.3
(0.6)
(0.1)

CORE
1,590.8(440.4)
1,150.4(419.2)
1.7 (223.6)

160.3

—

OthersFXDivestitures
95.1(33.2)(25.9)
9.7
69.2(23.5)(22.9)(8.1)

UNDERLYINGGROWTH+0.5 %

—
(8.6)
46.7
38.1

(60.2)
40.0
39.8

146.7

7.9

8.8

(0.7)
(0.7)

47.8
(11.5)

38.1
(5.9)

47.7
(8.5)

155.5
(27.1)

11.0
10.3
(3.2)

36.3

32.2

39.1

128.4

7.2

18.6
20.3

—
—
507.6
31.9 %

0.5(63.9)

2.7

2.1
20.8 445.8(5.1) (100.2)(0.0)
15.7 345.5
221

(0.1)
40.8
(4.6)
0.0
36.2
24

1,561

38.2

(23.5)+1.9 %
31.6%＊(23.5)
5.5(18.0)(12)(0.4)%
1,558

3 FY2019 H1 Reconciliation from Reported to Core/ Underlying Core
FY2019 H1

CORE TOUNDERLYING
CORE ADJ.

REPORTED TO CORE ADJUSTMENTS(Billion JPY)
Revenue
Cost of sales
Gross Profit
SG&A expenses
R&D expenses
Amortization of
intangible assets
Impairment losses on
intangible assets
Other operating income
Other operating expenses
Operating profit
MarginFinancial income/expenses
Equity income/loss
Profit before tax
Tax expenses
Non-controlling interests
Net profit
EPS (yen)
Number of shares(millions)

REPORTED*1

Amortization
Teva JV
&
Other
Shire
Shire
relatedimpairment operating acquisition
purchaseaccountingof intangible income/relatedaccounting
assetsexpensecosts
adjustments *1 adjustments

1,660.2(562.0)1,098.2(462.5)(230.4)1.4
5.2(207.9)45.0(17.3)

17.3(9.9)(82.4)

23.6

58.8

13.8

65.3

62.3

(81.9)
4.0
31.2
43.7

1,660.2(434.5)1,225.7(458.8)(225.3)

162.9

—

51.3

FX
Divestitures
44.2(60.0)(11.0)
12.5
33.1(47.5)(11.9)(3.0)

UNDERLYING
CORE

—
—

292.6

(1.4)

8.4

13.8
1.2

68.8
(13.1)

301.1(51.0)

1.2
(0.1)
0.0

15.0

55.7

250.1

(0.1)

541.6
32.6 %

18.3

(0.4)

(70.3)

4.2

5.3
476.5
(96.1)

0.0
22.5
(1.4)

(0.1)

(0.0)

380.4
244

21.1
13

(56.3)

(0.4)
(9.5)

(56.3)

(9.9)

(0.1)
74.7
48

CORE

127.5
127.5
2.3
(0.1)

(1.4)

3.5
62.3
(11.1)

Others

—

11.3

109.0
6.6 %

Swiss
tax
reform1,557*1 During FY2019, Takeda completed the purchase price allocation for the assets acquired and the liabilities assumed as part of the Shire acquisition.
Accordingly, PL statements for FY2019 H1 were retrospectively adjusted.

1,557(47.5)
31.2 %(47.5)
11.4(36.1)
(23)

235
1,558

Important Notice
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