Company: TAK
Filing Date: 2025-06-25
Form Type: 20-F
Source: 0001395064-25-000095
Chunk: 246

Company: TAKEDA PHARMACEUTICAL CO LTD
Filing Date: 2025-06-25
Form: 20-F
Item: Item 19
Chunk 246
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 impairment loss for goodwill as a result of the impairment testing performed as of January 1.

For the years ended March 31, 2024 and 2025, the recoverable amount of goodwill was assessed based on fair value less costs of disposal. The fair value less costs of disposal was determined by discounting the estimated future cash flows based on a 10-year

Terminal growth rate and discount rate used in the discounted cash flow models for the impairment tests are as follows:

                                For the Year Ended March 31            
                                                       2024      2025  
 ───────────────────────────────────────────────────────────────────────
  Terminal growth rate                                 0.0%      0.0%  
  Discount rate (post-tax)                             6.2%      5.8%  

Terminal growth rate is based on management’s estimate of future long-term average growth rates. Discount rate is based on weighted average cost of capital (“ WACC”) of Takeda.

The fair value less costs of disposal exceeded the carrying amount of the CGU, and a reasonable change in the assumptions used for the recoverable amount calculation would not result in an impairment.

F-38

12. Intangible Assets

                                                          JPY (millions)                                                                       
  Acquisition cost                                        Software                                         Other                               
  As of April 1, 2023                                     ¥                   219,559       7,324,072      ¥           11,839       7,555,471  
  Additions and other increases                                                47,179         124,878      206                        172,263  
  Disposals and other decreases                           ( 4,885)                          ( 57,869)      ( 149)                   ( 62,903)  
  Reclassification to assets held for sale (Note 19)      ( 266)                            ( 33,052)      —                        ( 33,318)  
  Foreign currency translation differences                                     27,529         942,404      48                         969,980  
  As of March 31, 2024                                    ¥                   289,116       8,300,433      ¥           11,944       8,601,492  
  Additions and other increases                                                38,769          55,345      134                         94,248  
  Disposals and other decreases                           ( 4,048)                          ( 15,453)      ( 116)