Company: TAK
Filing Date: 2025-06-25
Form Type: 20-F
Source: 0001395064-25-000095
Chunk: 264

Company: TAKEDA PHARMACEUTICAL CO LTD
Filing Date: 2025-06-25
Form: 20-F
Item: Item 19
Chunk 264
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361  
  Investment in convertible notes                                                  —                                      —                          10,424                  10,424  
  Investment in debt instruments                                                   —                                      —                          12,005                  12,005  
  Financial assets associated with contingent consideration arrangements           —                                      —                          10,197                  10,197  
  Derivatives for which hedge accounting is applied                                —                                                    72,007                               72,007  
  Financial assets measured at fair value through OCI                                                                                                                                
  Trade and other receivables                                                      —                                                    65,568                               65,568  
  Equity instruments                                                                                         78,073       —                          73,614                 151,687  
  Investments in debt instruments                                                                            79,342       —                                                  79,342  
  Total                                                                            ¥                         157,415      ¥            140,467      115,709      ¥          413,592  
  Liabilities:                                                                                                                                                                       
  Financial liabilities measured at fair value through profit or loss                                                                                                                
  Derivatives                                                                      ¥                         —            ¥              6,475        9,834      ¥           16,309  
  Financial liabilities associated with contingent consideration arrangements      —                                      —                           4,362                   4,362  
  Derivatives for which hedge accounting is applied                                —                                      219                                    219                 
  Total                                                                            ¥                         —            ¥              6,694       14,196      ¥           20,890  

F-58

Valuation Techniques

The fair value of derivatives classified as Level 2 is measured based on Treasury management system valuation models or the Black-Scholes model, whose significant inputs are based on observable market data.

Derivatives classified as Level 3 include those recognized in connection with settlements of cash flows arising from differences between the fixed prices and floating market prices of renewable energy in a virtual power purchase agreement and those recognized in an agreement to offset the volatility of such cash flows. The fair value of derivatives in Level 3 is measured using the discounted cash flow method. The key assumptions taken into account include forecasted renewable energy prices and the expected generation of the renewable energy generating facility.

The fair value of the investment in convertible notes is measured using techniques such as the discounted cash flow and option pricing models.

The fair value of trade and other receivables, which are due from customers that Takeda has the option to factor, are measured based on the invoiced amount.

Equity instruments and investments in debt instruments are not