Company: TAK
Filing Date: 2025-06-25
Form Type: 20-F
Source: 0001395064-25-000095
Chunk: 142

Company: TAKEDA PHARMACEUTICAL CO LTD
Filing Date: 2025-06-25
Form: 20-F
Item: Item 5
Chunk 142
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 associates                                                —                                            —                         (1.0)               
  Proceeds from sales of shares in associates                                        —                                            —                          57.7               
  Proceeds from sales of business, net of cash and cash equivalents divested         8.0                                          20.0                       20.6               
  Adjusted free cash flow (non-IFRS)                                                 ¥                                 446.2      ¥            283.4            ¥        769.0  

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Notes:

(1) Adjustment for cash temporarily held by Takeda on behalf of third parties refers to changes in cash balances that are temporarily held by Takeda on behalf of third parties related to vaccine operations and the trade receivables sales program, which are not available to Takeda’s immediate or general business use.

(2) Proceeds from sale of intangible assets are included in net cash from operating activities, except certain immaterial transactions.

(3) Acquisition of JPY 80.1 billion debt investments classified as Level 1 in the fair value hierarchy is excluded for the period ended March 31, 2025.

Table of Contents

EBITDA and Adjusted EBITDA

Takeda definesEBITDA as consolidated net profit before income tax expenses, depreciation and amortization and net interest expense. Takeda definesAdjusted EBITDA as EBITDA further adjusted to exclude impairment losses, other operating income and expenses (excluding depreciation, amortization and other miscellaneous non-cash expenses), finance income and expenses (excluding net interest expense), our share of loss (profit) of investments accounted for using the equity method and other items that management believes are unrelated to our core operations such as purchase accounting effects and transaction related costs.

Takeda presents EBITDA and Adjusted EBITDA because Takeda believes 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. Primarily, Adjusted EBITDA is used by Takeda for the purposes of monitoring its financial leverage. See “ Item 5. B Liquidity and Capital Resources - Supplemental Discussion of Financial Leverage (Adjusted Net Debt to Adjusted EBITDA Ratio) (Non-IFRS Measure)” and “ - Adjusted Net Debt/Adjusted EBITDA Ratio” below. Takeda further believes that Adjusted EBITDA is helpful to investors in identifying trends in its business that could otherwise be obscured by certain items unrelated to ongoing operations