Takeda Pharmaceutical : Annual Security Report (page 83-112)

Table of Contents

Translation for reference purpose only

Annual Securities Report

From April 1, 2022 to March 31, 2023

(The 146th Fiscal Year)

Takeda Pharmaceutical Company Limited

Table of Contents

Translation for reference purpose only

As used in this annual securities report, references to the "Company," "Takeda," "we," "us" and "our" are to Takeda Pharmaceutical Company Limited and, except as the context otherwise requires, its consolidated subsidiaries.

In this annual securities report, we present our audited consolidated financial statements as of March 31, 2022 and 2023 and for the fiscal years ended March 31, 2022 and 2023. Our consolidated financial statements are prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS"). The term IFRS also includes International Accounting Standards ("IAS") and the related interpretations of the committees (Standard Interpretations Committee and International Financial Reporting Interpretations Committee).

As used in this annual securities report, "ADS" means an American Depositary Share, representing 0.5 shares of the Company's common stock, and "ADR" means an American Depositary Receipt evidencing one or more ADSs.

As used in this annual securities report, except as the context otherwise requires, the "Companies Act" means the Companies Act of Japan.

Amounts shown in this annual securities report have been rounded to the nearest indicated digit unless otherwise specified. In tables and graphs with rounded figures, sums may not add up due to rounding.

Table of Contents

Translation for reference purpose only

	TABLE OF CONTENTS
Part 1. Information on Takeda	2
I. Overview of Takeda	2
1. Key Financial Data	2
2.	History	4
3.	Description of Business	6
4.	Overview of Subsidiaries and Associates	8
5.	Employees	11
II. Operating and Financial Review and Prospects	13
1.	Management Policy, Management Environment and Management Issues	13
2.	Corporate Sustainability Policies and Initiatives	18
3.	Risk Factors	21
4.	Management's Analysis of Financial Position, Operating Results and Cash Flows	24
5. Material Contracts	39
6. Research and Development	39
III. Property, Plant, and Equipment	65
1.	Overview of Capital Expenditures	65
2.	Major Facilities	65
3.	Plans for New Facility Construction, Old Facility Disposal, etc	67
IV. Information on the Company	68
1.	Information on the Company's Shares	68
2.	Acquisition of Treasury Stock and Other Related Status	81
3.	Dividend Policy	82
4. Corporate Governance	83
V. Financial Information	113
1.	Consolidated Financial Statements and Others	114
2.	Unconsolidated Financial Statements and Others	115
VI. Overview of Administrative Procedures for Shares of the Company	133
VII. Reference Information on the Company	134
Part 2. Information on Guarantors for Takeda	135
Independent Auditor's Report
Internal Control Report
Confirmation Letter

Table of Contents

[Cover]

[Document Filed]

[Applicable Law] [Filed with] [Filing Date] [Fiscal Year] [Company Name]

[Title and Name of Representative] [Address of Head Office]

[Telephone Number]

[Name of Contact Person]

[Nearest Place of Contact]

[Telephone Number] [Name of Contact Person] [Place for Public Inspection]

Translation for reference purpose only

Annual Securities Report

Article 24, paragraph 1 of the Financial Instruments and Exchange Act of Japan

Director, Kanto Local Finance Bureau

June 28, 2023

The 146th Fiscal Year (from April 1, 2022 to March 31, 2023)

Takeda Pharmaceutical Company Limited

Christophe Weber, Representative Director, President & Chief Executive Officer

1-1, Doshomachi 4-chome,Chuo-ku, Osaka

(The above address is the registered head office location and the ordinary business operations are conducted at the "Nearest Place of Contact")

Not applicable

Not applicable

1-1,Nihonbashi-Honcho2-chome,Chuo-ku, Tokyo

(Global Headquarters)

[phone] (Main telephone number)

Norimasa Takeda, Chief Accounting Officer & Corporate Controller, Global Finance

Takeda Pharmaceutical Company Limited (Global Headquarters) (1-1, Nihonbashi Honcho 2-chome,Chuo-ku, Tokyo)

Stock Exchange, Inc.

(2-1, Nihonbashi Kabutocho, Chuo-ku, Tokyo)

Nagoya Stock Exchange, Inc.

(8-20, Sakae 3-chome,Naka-ku, Nagoya)

Fukuoka Stock Exchange

(14-2, Tenjin 2-chome,Chuo-ku, Fukuoka)

Sapporo Stock Exchange

(14-1, Minamiichijonishi 5-chome,Chuo-ku, Sapporo)

1

Table of ContentsTranslation for reference purpose only

Part 1. Information on Takeda

I. Overview of Takeda
1. Key Financial Data
(1) Consolidated Financial Data
						JPY (millions), unless otherwise indicated
Fiscal Year		142nd		143rd		144th		145th		146th
Year Ended	March 31, 2019	March 31, 2020	March 31, 2021	March 31, 2022	March 31, 2023
Revenue	¥	2,097,224	¥	3,291,188	¥	3,197,812	¥	3,569,006	¥	4,027,478
Profit (loss) before tax		127,612		(60,754)		366,235		302,571		375,090
Net profit for the year		135,080		44,290		376,171		230,166		317,038
Net profit attributable to owners of the		135,192		44,241		376,005		230,059		317,017
Company
Total comprehensive income (loss) for the		121,595		(199,419)		697,416		824,427		911,574
year
Total equity		5,185,991		4,727,486		5,177,177		5,683,523		6,354,672
Total assets		13,792,773		12,821,094		12,912,293		13,178,018		13,957,750
Equity attributable to owners of the
Company per share (JPY)		3,332.94		3,032.22		3,308.93		3,665.61		4,087.49
Basic earnings per share (JPY)		140.61		28.41		240.72		147.14		204.29
Diluted earnings per share (JPY)		139.82		28.25		238.96		145.87		201.94
Ratio of equity attributable to owners of		37.6		36.8		40.1		43.1		45.5
the Company to total assets (%)
Return on equity attributable to owners of
the Company (%)		3.8		0.9		7.6		4.2		5.3
Price earnings ratio (Times)		32.2		116.4		16.6		23.8		21.3
Net cash from (used in) operating activities		328,479		669,752		1,010,931		1,123,105		977,156
Net cash from (used in) investing activities		(2,835,698)		292,119		393,530		(198,125)		(607,102)
Net cash from (used in) financing activities		2,946,237		(1,005,213)		(1,088,354)		(1,070,265)		(709,148)
Cash and cash equivalents at the end of the
year		702,093		637,614		966,222		849,695		533,530
Number of employees (Number of persons)		49,578		47,495		47,099		47,347		49,095

Notes:

1. The consolidated financial statements have been prepared and presented in accordance with International Financial Reporting Standards (IFRS).
2. All figures shown are rounded to the nearest million JPY.

2