Company: TAK
Filing Date: 2025-06-25
Form Type: 20-F
Source: 0001395064-25-000095
Chunk: 270

Company: TAKEDA PHARMACEUTICAL CO LTD
Filing Date: 2025-06-25
Form: 20-F
Item: Item 19
Chunk 270
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 Hedging costs      Line item in which reclassification adjustment is included  
  Cash flow hedges                                                                                                                                                                                                                                          
  Interest risk                                                                                                                                                                                                                                             
  Interest rate swaps                               ¥                                                    2,037      ¥                                          ( 6,415)      ¥                  Finance income                                              
  Forward interest rate                                                                                  2,301                                                    2,317      —                  Finance expenses                                            
  Currency and interest risk                                                                                                                                                                                                                                
  Cross currency interest rate swaps                ( 711)                                                          ( 2,355)                                                 ( 7,350)           Finance income and Finance expenses                         
  Net investment hedges                                                                                                                                                                                                                                     
  Foreign currency denominated bonds and loans                                                       ( 19,662)      —                                                        —                                                                              
  Forward exchange contracts                                                                            13,466      —                                                        —                                                                              

The amount relating to the ineffectiveness recorded in profit or loss was immaterial for the years ended March 31, 2024 and 2025. The amount of hedging gains/losses recorded in other comprehensive income and reclassified to profit or loss as hedged future cash flows were no longer expected to occur was not material for the years ended March 31, 2024 and 2025.

Capital Management

The capital structure of Takeda consists of shareholders’ equity (Note 26), bonds and loans (Note 20), and cash and cash equivalents (Note 18). The fundamental principles of Takeda’s capital risk management are to build and maintain a steady financial base for the purpose of maintaining soundness and efficiency of operations and achieving sustainable growth. According to these principles, Takeda conducts capital investment, profit distribution such as dividends, and repayment of loans based on steady operating cash flows through the development and sale of competitive products.

Takeda utilizes factoring arrangements for selected trade and other receivables. Under these programs, trade and other receivables sold are derecognized when the risks and rewards of ownership have been transferred. Amounts due from customers that are subject to the factoring arrangements but have not been factored at fiscal year end are disclosed in Note 17.

Takeda balances and monitors its capital structure between debt and equity and adheres to a conservative financial discipline.

F-66

Credit Risk

Takeda is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions, and other financial instruments. The maximum exposure to credit risk, without taking into