FORM 6-K
 
 
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
Commission File Number: 001-38757
For the month of July 2024
 
 
TAKEDA PHARMACEUTICAL COMPANY LIMITED
(Translation of registrant’s name into English)
 1-1, Nihonbashi-Honcho 2-Chome
Chuo-ku, Tokyo 103-8668
Japan
(Address of principal executive offices)
 
 
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F  ☒            Form 40-F  ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐



Information furnished on this form:
EXHIBIT
 



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
  TAKEDA PHARMACEUTICAL COMPANY LIMITED
Date: July 31, 2024
 By:/s/ Norimasa Takeda
  
Norimasa Takeda
Chief Accounting Officer and Corporate Controller



Earnings Report (Kessan Tanshin) for the Three-month Period Ended June 30, 2024 (IFRS, Consolidated)
July 31, 2024
Takeda Pharmaceutical Company LimitedStock exchange listings:Tokyo, Nagoya, Fukuoka, Sapporo
TSE Code:4502URL: https://www.takeda.com
Representative:Christophe Weber, President & CEO
Contact:Christopher O'ReillyTelephone: +81-3-3278-2306
Email: takeda.ir.contact@takeda.com
Global Head of IR, Global Finance
Scheduled date of dividend payment commencement: -
Supplementary materials for the financial statements: Yes
Presentation to explain the financial statements: Yes
(Million JPY, rounded to the nearest million)
1.
Consolidated Financial Results for the Three-month Period Ended June 30, 2024 (April 1 to June 30, 2024)
(1)Consolidated Operating Results (year to date)
 (Percentage figures represent changes over the same period of the previous year)
 RevenueOperating profitProfit before taxNet profit
for the period
 (Million JPY)(%)(Million JPY)(%)(Million JPY)(%)(Million JPY)(%)
Three-month Period Ended June 30, 20241,207,99014.1166,329(1.3)136,6041.295,2996.6
Three-month Period Ended June 30, 20231,058,6188.9168,57112.0135,033(13.1)89,406(14.9)
 Net profit attributable to
owners of the Company		Total comprehensive
income for the period		Basic earnings
per share		Diluted earnings
per share
 (Million JPY)(%)(Million JPY)(%)(JPY)(JPY)
Three-month Period Ended June 30, 202495,2486.5660,122(4.9)60.7159.94
Three-month Period Ended June 30, 202389,395(14.9)693,874(11.6)57.5157.12
 Core Operating ProfitCore EPS
 (Billion JPY)(%)(JPY)
Three-month Period Ended June 30, 2024382.317.1176
Three-month Period Ended June 30, 2023326.32.3150

(2)Consolidated Financial Position
Total assets
(Million JPY)		Total equity
(Million JPY)		Equity attributable
to owners of the
Company
(Million JPY)		Ratio of equity
attributable to
owners of the
Company to total
assets (%)		Equity attributable
to owners of the
Company per
share (JPY)
As of June 30, 2024
16,227,6837,799,2327,798,41748.14,970.05
As of March 31, 2024
15,108,7927,274,0057,273,26448.14,635.56




2. Dividends
Annual dividends per share (JPY)
 1st quarter end2nd quarter end3rd quarter endYear-endTotal
For the Fiscal Year Ended March 31, 2024
—94.00—94.00188.00
For the Fiscal Year Ending March 31, 2025
—
For the Fiscal Year Ending March 31, 2025 (Projection)
98.00—98.00196.00
(Note) Modifications in the dividend projection from the latest announcement: None

3.
Forecasts for Consolidated Operating Results (Actual Exchange Rate basis) for the Fiscal Year Ending March 31, 2025 (April 1, 2024 to March 31, 2025)
 (Percentage figures represent changes from previous fiscal year)
 RevenueOperating profitProfit before
income taxes		Net profit attributable to owners of the CompanyBasic earnings
per share
 (Million JPY)(%)(Million JPY)(%)(Million JPY)(%)(Million JPY)(%)(JPY)
For the Fiscal Year Ending March 31, 2025
4,350,0002.0225,0005.155,0004.258,000(59.7)36.70
(Note) Modifications in forecasts of consolidated operating results from the latest announcement: None
Forecasts for Core financial measures are shown below.
(Percentage figures represent changes from previous fiscal year)
Core RevenueCore Operating ProfitCore EPS
(Million JPY)(%)(Million JPY)(%)(JPY)
For the Fiscal Year Ending March 31, 2025
4,350,0002.01,000,000(5.2)431
(Note) Modifications in forecasts of consolidated operating results from the latest announcement: None

The definition of Core financial measures is stated in “Definition and Explanation of Non-IFRS Measures and U.S. Dollar Convenience Translations” in the Financial Appendix.

4.
Management Guidance (Constant Exchange Rate basis) for the Fiscal Year Ending March 31, 2025 (April 1, 2024 to March 31, 2025)
Takeda uses changes in Core Revenue, Core Operating Profit and Core EPS at Constant Exchange Rate (CER) basis as its Management Guidance. The full year management guidance for the fiscal year ending March 31, 2025 (FY2024) has not been changed from the management guidance announced at the FY2023 financial results announcement on May 9, 2024.
 
 Core Revenue GrowthCore Operating Profit GrowthCore EPS Growth
 (%)(%)(%)
For the Fiscal Year Ending March 31, 2025
Flat to slightly decliningApprox 10% declineMid-10s% decline

The definition of Constant Exchange Rate change is stated in “Definition and Explanation of Non-IFRS Measures and U.S. Dollar Convenience Translations” in the Financial Appendix.


▪Additional Information
 
(1) Significant changes in the scope of consolidation during the period
  : No
(2) Changes in accounting policies and changes in accounting estimates  
1) Changes in accounting policies required by IFRS  : No                    
2) Changes in accounting policies other than 1)  : No
3) Changes in accounting estimates  : No
(3) Number of shares outstanding (common stock)  
1) Number of shares outstanding (including treasury stock) at period end:  
June 30, 2024   
1,582,418,725 shares
March 31, 2024   
1,582,418,725 shares
2) Number of shares of treasury stock at period end:  
June 30, 2024   
13,336,181 shares
March 31, 2024   
13,405,261 shares
3) Average number of outstanding shares (for the three-month period ended June 30):
June 30, 2024   
1,568,915,479 shares
June 30, 2023   
1,554,419,453 shares
 
▪Review of the attached condensed interim consolidated financial statements by certified public accountants or an audit firm: No
▪Note to ensure appropriate use of forecasts and guidance, and other noteworthy items
 
 • Takeda applies International Financial Reporting Standards (IFRS), and the disclosure information in this document is based on IFRS. 
 • All forecasts and management guidance in this document are based on information currently available and assumptions to management, and do not represent a promise or guarantee to achieve these forecasts. Various uncertain factors could cause actual results to differ, such as changes in the business environment and fluctuations in foreign exchange rates. Should any significant event occur which requires the forecasts or guidance to be revised, Takeda will disclose it in a timely manner.
 
 • 
For details of the forecasts for consolidated operating results and the management guidance, please refer to "1. Financial Highlights for the Three-month Period Ended June 30, 2024 (3) Outlook for the Fiscal Year Ending March 31, 2025" on page 11.
 
 • 
Supplementary materials for the financial statements including the Quarterly Financial Report and Earnings Presentation of the conference call on July 31, 2024, and its audio will be promptly posted on Takeda’s website.
 

(Takeda Website):
https://www.takeda.com/investors/financial-results/quarterly-results/


Takeda Pharmaceutical Company Limited (4502)
Earnings Report (Kessan Tanshin) for the Three-month
Period Ended June 30, 2024 (Consolidated)
Attachment Index
 

1
Takeda Pharmaceutical Company Limited (4502)
Earnings Report (Kessan Tanshin) for the Three-month
Period Ended June 30, 2024 (Consolidated)
1. Financial Highlights for the Three-month Period Ended June 30, 2024
(1) Business Performance
(i) Consolidated Financial Results (April 1 to June 30, 2024)
Billion JPY or percentage
FY2023 Q1
FY2024 Q1
Change versus the same period of the previous fiscal year
AERCER
Amount of Change% Change% Change
Revenue1,058.6 1,208.0 149.4 14.1 %2.1 %
Cost of sales(321.1)(387.0)(65.8)20.5 %8.1 %
Selling, general and administrative expenses(248.1)(270.0)(21.9)8.8 %(2.4)%
Research and development expenses(162.7)(168.5)(5.7)3.5 %(7.7)%
Amortization and impairment losses on intangible assets associated with products(129.4)(162.8)(33.4)25.8 %12.9 %
Other operating income4.3 10.9 6.6 155.7 %135.4 %
Other operating expenses(32.9)(64.3)(31.3)95.3 %72.8 %
Operating profit168.6 166.3 (2.2)(1.3)%(12.0)%
Finance income and (expenses), net(33.1)(29.0)4.1 (12.4)%(16.6)%
Share of loss of investments accounted for using the equity method(0.4)(0.7)(0.3)70.3 %60.3 %
Profit before tax135.0 136.6 1.6 1.2 %(11.1)%
Income tax expenses(45.6)(41.3)4.3 (9.5)%(14.8)%
Net profit for the period89.4 95.3 5.9 6.6 %(9.2)%
Net profit for the period attributable to owners of the Company
89.4 95.2 5.9 6.5 %(9.3)%
In this section, when comparing results to the same period of the previous fiscal year, the amount of change and percentage change based on Actual Exchange Rates are presented in “AER” (which is presented in accordance with IFRS) and percentage change based on Constant Exchange Rate (which is a non-IFRS measure) is presented in “CER”. For additional information on CER change, see “Definition and Explanation of Non-IFRS Measures and U.S. Dollar Convenience Translations” in the Financial Appendix.
Revenue
Revenue for the three-month period ended June 30, 2024 was JPY 1,208.0 billion (JPY +149.4 billion and +14.1% AER, +2.1% CER). The increase is attributable to favorable foreign exchange rates and growth from business momentum of Plasma-Derived Therapies (“PDT”), Gastroenterology (“GI”), Oncology, Rare Diseases and Vaccines. The increase of these business areas was offset in part by a decrease in Neuroscience. The decrease in Neuroscience, which was partially mitigated by favorable foreign exchange rates, was largely attributable to continued generic erosion of sales of VYVANSE (for attention deficit hyperactivity disorder (“ADHD”)) in the U.S., which began following loss of exclusivity in August 2023. In addition, revenue outside of our six key business areas decreased mainly due to the decline in sales of AZILVA (for hypertension), which were JPY 3.2 billion (JPY -15.4 billion and -82.6% AER, -82.6% CER) following the entry of generic competitors in Japan beginning in June 2023.

2
Takeda Pharmaceutical Company Limited (4502)
Earnings Report (Kessan Tanshin) for the Three-month
Period Ended June 30, 2024 (Consolidated)
Revenue by Geographic Region
The following shows revenue by geographic region:
Billion JPY or percentage
FY2023 Q1FY2024 Q1Change versus the same period of the previous fiscal year
AERCER
Revenue:Amount of Change% Change% Change
   Japan124.8 102.9 (21.9)(17.5)%(17.8)%
   United States554.4 636.7 82.3 14.8 %1.0 %
   Europe and Canada224.3 269.8 45.5 20.3 %6.1 %
   Asia (excluding Japan)60.8 63.9 3.1 5.1 %(4.2)%
   Latin America43.7 72.2 28.5 65.2 %45.6 %
   Russia/CIS17.4 23.7 6.4 36.7 %33.0 %
   Other*1
33.2 38.7 5.6 16.8 %6.5 %
   Total1,058.6 1,208.0 149.4 14.1 %2.1 %
*1 Other includes the Middle East, Oceania and Africa.

Revenue by Business Area
The following shows revenue by business area:
Billion JPY or percentage
FY2023 Q1FY2024 Q1Change versus the same period of the previous fiscal year
AERCER
Revenue:Amount of Change% Change% Change
   GI293.5 348.5 54.9 18.7 %6.0 %
   Rare Diseases170.8 199.5 28.7 16.8 %4.4 %
   PDT
209.2 271.4 62.2 29.7 %14.7 %
   Oncology
110.5 142.1 31.6 28.6 %17.2 %
   Vaccines
10.5 12.5 2.0 18.7 %9.7 %
   Neuroscience
177.0 169.1 (8.0)(4.5)%(15.0)%
   Other87.0 64.9 (22.0)(25.3)%(31.1)%
   Total1,058.6 1,208.0 149.4 14.1 %2.1 %

Year-on-year change in revenue for this three-month period in each of our business areas was primarily attributable to the following products:
GI
In GI, revenue was JPY 348.5 billion (JPY +54.9 billion and +18.7% AER, +6.0% CER).
Sales of ENTYVIO (for ulcerative colitis (“UC”) and Crohn’s disease (“CD”)) were JPY 234.4 billion (JPY +42.4 billion and +22.1% AER, +7.6% CER). Sales in the U.S. were JPY 162.9 billion (JPY +28.6 billion and +21.3% AER). The increase was due to favorable foreign exchange rates, demand in the first line biologic inflammatory bowel disease (“IBD”) population primarily in UC and initial patient gains after the launch of the subcutaneous formulation. Sales in Europe and Canada were JPY 54.8 billion (JPY +10.8 billion and +24.6% AER). The increase was primarily due to favorable foreign exchange rates and new patient gains by an increased use of the subcutaneous formulation.
Sales of GATTEX/REVESTIVE (for short bowel syndrome) were JPY 36.8 billion (JPY +9.7 billion and +36.0% AER, +21.6% CER). The increase was primarily due to increased demand in the U.S., expansion activities (infant indication label expansion), and favorable exchange rates.
Rare Diseases
In Rare Diseases, revenue was JPY 199.5 billion (JPY +28.7 billion and +16.8% AER, +4.4% CER).
Sales of TAKHZYRO (for hereditary angioedema) were JPY 56.0 billion (JPY +14.7 billion and +35.6% AER, +19.8% CER). The increase was primarily due to the higher demand in the U.S., Europe and Canada, and favorable foreign exchange rates.
3
Takeda Pharmaceutical Company Limited (4502)
Earnings Report (Kessan Tanshin) for the Three-month
Period Ended June 30, 2024 (Consolidated)
Sales of enzyme replacement therapy ELAPRASE (for hunter syndrome) were JPY 28.0 billion (JPY +5.1 billion and +22.4% AER, +10.2% CER) The increase was primarily due to strong demand in Growth and Emerging Markets, and favorable foreign exchange rates.
Sales of LIVTENCITY (for post-transplant cytomegalovirus (“CMV”) infection/disease) were JPY 7.6 billion (JPY +3.6 billion and +88.2% AER, +65.9% CER). The increase was primarily attributable to strong market penetration and successful launch performance in the U.S., complemented by continued geographical expansion in Europe and Growth and Emerging Markets.
Sales of enzyme replacement therapy REPLAGAL (for fabry disease) were JPY 21.4 billion (JPY +3.4 billion and +19.1% AER, +8.0% CER). The increase was due to the increased demand in Growth and Emerging Markets, complemented by favorable foreign exchange rates.
PDT
In PDT, revenue was JPY 271.4 billion (JPY +62.2 billion and +29.7% AER, +14.7% CER).
Aggregate sales of immunoglobulin products were JPY 201.5 billion (JPY +55.9 billion and +38.4% AER, +21.9% CER). Sales of each of our three global immunoglobulin brands experienced double digit percentage sales growth, due to continued strong demand globally and growing supply, as well as favorable foreign exchange rates. Those include GAMMAGARD LIQUID/KIOVIG (for the treatment of primary immunodeficiency (“PID”) and multifocal motor neuropathy (“MMN”)), and subcutaneous immunoglobulin therapies (CUVITRU and HYQVIA) which are growing due to their benefit to patients and convenience in administration compared to intravenous therapies.
Aggregate sales of albumin products including HUMAN ALBUMIN and FLEXBUMIN (both primarily used for hypovolemia and hypoalbuminemia) were JPY 29.4 billion (JPY -1.4 billion and -4.5% AER, -14.2% CER). The decrease was primarily due to supply timing in China, partially mitigated by favorable foreign exchange rates.
Oncology
In Oncology, revenue was JPY 142.1 billion (JPY +31.6 billion and +28.6% AER, +17.2% CER).
Sales of FRUZAQLA (for colorectal cancer), which was newly launched in November 2023 in the U.S., were JPY 11.9 billion.
Sales of ADCETRIS (for malignant lymphomas) were JPY 34.5 billion (JPY +7.4 billion and +27.2% AER, +14.1% CER). The increase was led by strong demand in Growth and Emerging Markets, Europe and Canada, as well as favorable foreign exchange rates.
Sales of LEUPLIN/ENANTONE (for endometriosis, uterine fibroids, premenopausal breast cancer, prostate cancer, etc.) were JPY 29.4 billion (JPY +4.8 billion and +19.6% AER, +12.7% CER). The increase was due to the sales increase in the U.S, and favorable foreign exchange rates.
Sales of ICLUSIG (for leukemia) were JPY 16.8 billion (JPY +4.2 billion and +33.3% AER, +17.2% CER). The increase was due to steady growth in the U.S., complemented by U.S. regulatory approval of a new indication of newly diagnosed Philadelphia chromosome-positive acute lymphoblastic leukemia (Ph+ ALL) in combination with chemotherapy, as well as favorable foreign exchange rates.
Vaccines
In Vaccines, revenue was JPY 12.5 billion (JPY +2.0 billion and +18.7% AER, +9.7% CER).
Sales of QDENGA (for dengue) were JPY 9.5 billion (JPY +8.8 billion and +1,231.5% AER, +1,098.6% CER). The increase was due to the expansion of QDENGA availability in endemic countries, now reaching over 20 countries including non-endemic countries.
Sales of other vaccine products in aggregate decreased year-on-year, mainly due to lower revenue contribution from COVID-19 vaccines in Japan.
Neuroscience
In Neuroscience, revenue was JPY 169.1 billion (JPY -8.0 billion and -4.5% AER, -15.0% CER).
Sales of VYVANSE/ELVANSE (for ADHD) were JPY 114.6 billion (JPY -8.5 billion and -6.9% AER, -17.9% CER). The decrease was due to the multiple generic entrants in the U.S. starting from August 2023, while the growth of the adult market in Europe and favorable foreign exchange rates partially offset the negative impacts.
Sales of TRINTELLIX (for major depressive disorder ("MDD")) were JPY 31.0 billion (JPY +6.7 billion, and +27.6% AER, +13.6% CER). The increase was due to the sales increase in the U.S..
4
Takeda Pharmaceutical Company Limited (4502)
Earnings Report (Kessan Tanshin) for the Three-month
Period Ended June 30, 2024 (Consolidated)
Sales of ADDERALL XR (for ADHD) were JPY 7.7 billion (JPY -5.8 billion and -42.8% AER, -49.6% CER). The decrease was primarily due to an increase in the availability of generic versions of the instant release formulation marketed by competitors in the U.S., which negatively impacted ADDERALL XR.
Cost of Sales
Cost of Sales was JPY 387.0 billion (JPY +65.8 billion and +20.5% AER, +8.1% CER). The increase was primarily due to the depreciation of the Japanese yen and revenue growth in our six key business area with a change in product mix as compared to the same period of the previous fiscal year.
Selling, General and Administrative (SG&A) expenses
SG&A expenses were JPY 270.0 billion (JPY +21.9 billion and +8.8% AER, -2.4% CER). The increase was mainly due to the depreciation of the Japanese yen partially offset by various cost efficiencies.
Research and Development (R&D) expenses
R&D expenses were JPY 168.5 billion (JPY +5.7 billion and +3.5% AER, -7.7% CER). The increase was mainly due to the depreciation of the Japanese yen, partially offset by lower expenses due to termination of development programs such as modakafusp alfa (TAK-573) and EXKIVITY (for non-small cell lung cancer) compared to the same period of the previous fiscal year.
Amortization and Impairment Losses on Intangible Assets Associated with Products
Amortization and Impairment Losses on Intangible Assets Associated with Products was JPY 162.8 billion (JPY +33.4 billion and +25.8% AER, +12.9% CER). Amortization expenses increased by JPY 15.4 billion mainly due to the depreciation of the Japanese yen. Impairment losses increased by JPY 18.0 billion primarily due to a full impairment of intangible assets for soticlestat (TAK-935) amounting to JPY 21.5 billion following the results of the phase 3 studies in the current period.
Other Operating Income
Other Operating Income was JPY 10.9 billion (JPY +6.6 billion and +155.7% AER, +135.4% CER). The increase was primarily due to a JPY 6.1 billion gain on completion of the TACHOSIL (fibrin sealant patch) related business divestiture, which includes a manufacturing facility, in the current period.
Other Operating Expenses
Other Operating Expenses were JPY 64.3 billion (JPY +31.3 billion and +95.3% AER, +72.8% CER). The increase mainly resulted from an increase of restructuring expense by JPY 27.4 billion due to the enterprise-wide efficiency program in the current period.
Operating Profit
As a result of the above factors, Operating Profit was JPY 166.3 billion (JPY -2.2 billion and -1.3% AER, -12.0% CER).
Net Finance Expenses
Net Finance Expenses were JPY 29.0 billion (JPY -4.1 billion and -12.4% AER, -16.6% CER). The decrease of Net Finance Expenses compared to the same period of the previous fiscal year was primarily due to lower foreign exchange loss compared with the same period of the previous fiscal year.
Share of Loss of Investments Accounted for Using the Equity Method
Share of Loss of Investments Accounted for Using the Equity Method was JPY 0.7 billion (JPY +0.3 billion and +70.3% AER, +60.3% CER).
Income Tax Expenses
Income Tax Expenses was JPY 41.3 billion (JPY -4.3 billion and -9.5% AER, -14.8% CER).
Net Profit for the Period
As a result of the above factors, Net Profit for the Period was JPY 95.3 billion (JPY +5.9 billion and +6.6% AER, -9.2% CER) and Net Profit for the Period Attributable to Owners of the Company was JPY 95.2 billion (JPY +5.9 billion and +6.5% AER, -9.3% CER)
5
Takeda Pharmaceutical Company Limited (4502)
Earnings Report (Kessan Tanshin) for the Three-month
Period Ended June 30, 2024 (Consolidated)
(ii) Results of Core Financial Measures (April 1 to June 30, 2024)
Definition of Core financial measures and Constant Exchange Rate change
Takeda uses the concept of Core financial measures for measuring financial performance. These measures are not defined by International Financial Reporting Standards (IFRS). See “Definition and Explanation of Non-IFRS Measures and U.S. Dollar Convenience Translations” in the Financial Appendix for additional information.

Results of Core Operations
Billion JPY or percentage
FY2023 Q1
FY2024 Q1
Change versus the same period of the previous fiscal year
AERCER
Amount of Change% change% change
Core revenue
1,058.6 1,208.0 149.4 14.1 %2.1 %
Core operating profit
326.3 382.3 55.9 17.1 %4.5 %
Core net profit for the period
233.4 276.9 43.5 18.6 %3.9 %
Core net profit for the period attributable to owners of the Company
233.4 276.8 43.4 18.6 %3.9 %
Core EPS (yen)
150 176 26 17.5 %2.9 %

Core Revenue
Core Revenue for the three-month period ended June 30, 2024 was JPY 1,208.0 billion (JPY +149.4 billion and +14.1% AER, +2.1% CER). The increase is attributable to favorable foreign exchange rates and growth from business momentum primarily led by Takeda’s Growth and Launch Products* which totaled JPY 561.7 billion (JPY +140.6 billion and +33.4% AER, +17.8% CER), partially offset by lower sales of VYVANSE in the U.S. and AZILVA in Japan which were impacted by generic competition following loss of exclusivities.
*    Takeda’s Growth and Launch Products
    GI:        ENTYVIO, EOHILIA
    Rare Diseases:    TAKHZYRO, LIVTENCITY, ADZYNMA
    PDT:         Immunoglobulin products including GAMMAGARD LIQUID/KIOVIG, HYQVIA, and CUVITRU,     
Albumin products including HUMAN ALBUMIN and FLEXBUMIN
    Oncology:    　　　　 ALUNBRIG, FRUZAQLA
    Vaccines:     QDENGA

Core Operating Profit
Core Operating Profit for the current period was JPY 382.3 billion (JPY +55.9 billion and +17.1% AER, +4.5% CER). The components of Core Operating Profit are as below:

Billion JPY or percentage
FY2023 Q1FY2024 Q1
Change versus the same period of the previous fiscal year
AER
CER
Amount of Change
% Change
% Change
Core revenue
1,058.6 1,208.0 149.4 14.1 %2.1 %
Core cost of sales
(321.2)(387.1)(65.8)20.5 %8.1 %
Core selling, general and administrative (SG&A) expenses
(248.3)(270.2)(21.8)8.8 %(2.5)%
Core research and development (R&D) expenses
(162.7)(168.5)(5.8)3.5 %(7.7)%
Core operating profit
326.3 382.3 55.9 17.1 %4.5 %

During the periods presented, these items fluctuated as follows:
Core Cost of Sales
Core Cost of Sales was JPY 387.1 billion (JPY +65.8 billion and +20.5% AER, +8.1% CER). The increase was primarily due to the depreciation of Japanese yen and revenue growth in our six key business area with a change in product mix as compared to the same period of the previous fiscal year.
6
Takeda Pharmaceutical Company Limited (4502)
Earnings Report (Kessan Tanshin) for the Three-month
Period Ended June 30, 2024 (Consolidated)



Core Selling, General and Administrative (SG&A) Expenses
Core SG&A expenses were JPY 270.2 billion (JPY +21.8 billion and +8.8% AER, -2.5% CER). The increase was mainly due to the depreciation of Japanese yen partially offset by various cost efficiencies.
Core Research and Development (R&D) Expenses
Core R&D expenses were JPY 168.5 billion (JPY +5.8 billion and +3.5% AER, -7.7% CER). The increase was mainly due to the depreciation of Japanese yen, partially offset by lower expenses due to termination of development programs such as modakafusp alfa (TAK-573) and EXKIVITY (for non-small cell lung cancer) compared to the same period of the previous fiscal year.
Core Net Profit for the Period
Core Net Profit for the Period was JPY 276.9 billion (JPY +43.5 billion and +18.6% AER, +3.9% CER) and Core Net Profit Attributable to Owners of the Company was JPY 276.8 billion (JPY +43.4 billion and +18.6% AER, +3.9% CER) and are calculated from Core Operating Profit as below:

Billion JPY or percentage
FY2023 Q1FY2024 Q1
Change versus the same period of the previous fiscal year
AER
CER
Amount of Change
% Change
% Change
Core operating profit
326.3 382.3 55.9 17.1 %4.5 %
Core finance income and (expenses), net
(28.5)(30.1)(1.5)5.3 %0.9 %
Core share of profit of investments accounted for using the equity method
0.8 0.4 (0.4)(48.8)%(57.6)%
Core profit before tax
298.6 352.6 54.0 18.1 %4.7 %
Core income tax expenses
(65.2)(75.7)(10.6)16.2 %7.5 %
Core net profit for the period
233.4 276.9 43.5 18.6 %3.9 %
Core net profit for the period attributable to owners of the Company
233.4 276.8 43.4 18.6 %3.9 %

During the periods presented, these items fluctuated as follows:
Core Net Finance Expenses
Core Net Finance Expenses were JPY 30.1 billion (JPY +1.5 billion and +5.3% AER, +0.9% CER).
Core Share of Profit of Investments Accounted for Using the Equity Method
Core Share of Profit of Investments Accounted for Using the Equity Method was JPY 0.4 billion (JPY -0.4 billion and -48.8% AER, -57.6% CER).
Core Profit Before Tax
Core Profit Before Tax was JPY 352.6 billion (JPY +54.0 billion and +18.1% AER, +4.7% CER).
Core Income Tax Expenses
Core Income Tax Expenses were JPY 75.7 billion (JPY +10.6 billion and +16.2% AER, +7.5% CER). The increase was mainly due to higher core pretax earnings.
Core EPS
Core EPS was JPY 176 (JPY +26 and +17.5% AER, +2.9% CER).
7
Takeda Pharmaceutical Company Limited (4502)
Earnings Report (Kessan Tanshin) for the Three-month
Period Ended June 30, 2024 (Consolidated)
(2) Consolidated Financial Position
Billion JPY
As of
Change versus the previous fiscal year
March 31, 2024
June 30, 2024
Total Assets
15,108.8 16,227.7 1,118.9 
Total Liabilities
7,834.8 8,428.5 593.7 
Total Equity
7,274.0 7,799.2 525.2 
Assets
Total Assets as of June 30, 2024 were JPY 16,227.7 billion (JPY +1,118.9 billion). In addition to an increase of Cash and Cash Equivalents (JPY +346.5 billion), Goodwill, Property, Plant and Equipment, Intangible Assets, and Trade and Other Receivables increased (JPY +323.6 billion, JPY +95.6 billion, JPY +91.5 billion, and JPY +87.0 billion, respectively) mainly due to the effect of foreign currency translation.

Liabilities
Total Liabilities as of June 30, 2024 were JPY 8,428.5 billion (JPY +593.7 billion). Total Bonds and Loans were JPY 5,481.0 billion* (JPY +637.2 billion), which increased primarily due to the issuance of Hybrid bonds and the effect of foreign currency translation.

* The carrying amount of Bonds was JPY 4,716.0 billion and Loans was JPY 765.0 billion as of June 30, 2024. Breakdown of Bonds and Loans' carrying amount is as follows.
Bonds:
Name of Bond
 (Face Value if Denominated in Foreign Currency)
IssuanceMaturity
Carrying Amount
(Billion JPY)
Unsecured US dollar denominated senior notes (USD 1,301 million)June 2015June 2025 ~
June 2045		210.6 
Unsecured US dollar denominated senior notes (USD 3,000 million)September 2016September 2026468.6 
Unsecured Euro denominated senior notes
(EUR 3,000 million)		November 2018November 2026 ~
November 2030		514.1 
Unsecured US dollar denominated senior notes (USD 1,750 million)November 2018November 2028280.2 
Hybrid bonds (subordinated bonds)June 2019June 2079499.8 
Unsecured US dollar denominated senior notes (USD 7,000 million)July 2020March 2030 ~
July 2060		1,119.5 
Unsecured Euro denominated senior notes
(EUR 3,600 million)		July 2020July 2027 ~
July 2040		616.1 
Unsecured JPY denominated senior bondsOctober 2021October 2031249.5 
Hybrid bonds (subordinated bonds)June 2024June 2084457.6 
Commercial paperMay 2024 ~
June 2024		July 2024300.0 
Total4,716.0 
8
Takeda Pharmaceutical Company Limited (4502)
Earnings Report (Kessan Tanshin) for the Three-month
Period Ended June 30, 2024 (Consolidated)

Loans:
Name of Loan
 (Face Value if Denominated in Foreign Currency)
ExecutionMaturity
Carrying Amount
(Billion JPY)
Syndicated loansApril 2016April 2026100.0 
Syndicated loansApril 2017April 2027113.5 
Syndicated loans (USD 1,500 million)April 2017April 2027241.2 
Syndicated loansApril 2023April 2030100.0 
Bilateral loans March 2016 ~
April 2024		April 2025 ~
April 2031		210.0 
Other0.3 
Total765.0 

On April 25, 2024, Takeda repaid JPY 50.0 billion in Bilateral Loans falling due and on the same day entered into new Bilateral Loans of JPY 50.0 billion maturing on April 25, 2031. Following this, on June 25, 2024, Takeda issued 60-year unsecured Hybrid bonds with an aggregate principal amount of JPY 460.0 billion and a maturity date of June 25, 2084. Takeda had short term commercial paper drawings outstanding of JPY 300.0 billion as of June 30, 2024.
Equity
Total Equity as of June 30, 2024 was JPY 7,799.2 billion (JPY +525.2 billion). The increase of Other Components of Equity (JPY +565.4 billion) was mainly due to fluctuation in currency translation adjustments reflecting the depreciation of the Japanese yen. This increase was partially offset by a decrease in Retained Earnings (JPY -53.0 billion) mainly due to the decrease of JPY 147.7 billion related to dividend payments while Net Profit for the Period increased.
9
Takeda Pharmaceutical Company Limited (4502)
Earnings Report (Kessan Tanshin) for the Three-month
Period Ended June 30, 2024 (Consolidated)
Consolidated Cash Flows
Billion JPY
FY2023 Q1FY2024 Q1
Change versus the same period of the previous fiscal year
Net cash from (used in) operating activities92.4 170.3 77.9 
Net cash from (used in) investing activities(266.5)(156.7)109.8 
Net cash from (used in) financing activities(57.8)316.4 374.2 
Net increase (decrease) in cash and cash equivalents(231.9)330.0 561.9 
Cash and cash equivalents at the beginning of the year533.5 457.8 (75.7)
Effects of exchange rate changes on cash and cash equivalents14.8 17.2 2.5 
Cash and cash equivalents reclassified to assets held for sale— (0.7)(0.7)
Cash and cash equivalents at the end of the period
(Condensed interim consolidated statements of financial position)		316.4 804.3 487.9 
Net Cash from Operating Activities
Net Cash from Operating Activities was JPY 170.3 billion (JPY +77.9 billion). The increase was mainly due to favorable impacts from Changes in Assets and Liabilities, primarily driven by changes in Trade and Other Receivables and Provisions, and favorable impacts from a higher net profit for the period adjusted for non-cash items and other adjustments, which was partially offset by Other, Net.
Net Cash used in Investing Activities
Net Cash used in Investing Activities was JPY 156.7 billion (JPY -109.8 billion). The decrease was mainly due to a decrease in Acquisition of Intangible Assets.
Net Cash from Financing Activities
Net Cash from Financing Activities was JPY 316.4 billion (JPY +374.2 billion). The increase was mainly due to the issuance of Hybrid bonds. This increase was partially offset by a net decrease in commercial paper drawings.

10
Takeda Pharmaceutical Company Limited (4502)
Earnings Report (Kessan Tanshin) for the Three-month
Period Ended June 30, 2024 (Consolidated)
(3) Outlook for the Fiscal Year Ending March 31, 2025
Based on Takeda's financial results through the three-month period ended June 30, 2024, and considering higher expenses expected to be incurred and further accelerations of generic erosion of VYVANSE in the U.S. during the remaining nine-month period of the fiscal year ending March 31, 2025 (FY2024), the full year consolidated forecast for FY2024 has not been revised from the forecast announced at the FY2023 financial results announcement on May 9, 2024.
Consolidated Forecast for the Fiscal Year Ending March 31, 2025 (FY2024)
Billion JPY or percentage
FY2023
Actual Results
FY2024
Forecast
Change vs. FY2023 Actual Results
Revenue4,263.8 4,350.0 86.2 2.0 %
Gross Profit
2,837.1 2,850.0 12.9 0.5 %
Operating profit214.1 225.0 10.9 5.1 %
Profit before tax52.8 55.0 2.2 4.2 %
Net profit for the year
(attributable to owners of the Company)
144.1 58.0 (86.1)(59.7)%
EPS (JPY)92.09 36.70 (55.39)(60.1)%
Core Revenue*1
4,263.8 4,350.0 86.2 2.0 %
Core Operating Profit*1
1,054.9 1,000.0 (54.9)(5.2)%
Core EPS (JPY)*1
484 431 (53)(10.9)%
*1 Please refer to “Definition and Explanation of Non-IFRS Measures and U.S. Dollar Convenience Translations” in the Financial Appendix for the definition.

Major assumptions used in preparing the FY2024 Forecast
Billion JPY or percentage
FY2023
Actual Results
FY2024
Forecast
FX rates (JPY)
USD/JPY
EUR/JPY
RUB/JPY
CNY/JPY
BRL/JPY
144
156
1.6
20.1
29.1
USD/JPY
EUR/JPY
RUB/JPY
CNY/JPY
BRL/JPY
150
160
1.6
20.9
30.4
Cost of Sales(1,426.7)(1,500.0)
SG&A Expenses(1,053.8)(1,080.0)
R&D expenses(729.9)(770.0)
Amortization of intangible assets associated with products(521.5)(540.0)
Impairment of intangible assets associated with products*2
(130.6)(50.0)
Other operating income19.4 15.0 
Other operating expenses*3
(206.5)(200.0)
Other Core Operating Profit adjustments(1.5)— 
Finance income and (expenses), net(167.8)(172.0)
Adjusted Free Cash Flow*1
283.4 350.0 - 450.0
Capital expenditures (cash flow base)(480.7)(380.0 - 420.0)
Depreciation and amortization (excluding intangible assets associated with products)(206.5)(205.0)
Cash tax rate on Adjusted EBITDA (excluding divestitures)*1
~15%Mid teen %
*2 Includes in-process R&D.
*3 JPY 140.0 billion of restructuring expense which is primarily related to the enterprise-wide efficiency program is included in FY2024 Forecast.
11
Takeda Pharmaceutical Company Limited (4502)
Earnings Report (Kessan Tanshin) for the Three-month
Period Ended June 30, 2024 (Consolidated)
Management Guidance
Takeda uses change in Core Revenue, Core Operating Profit and Core EPS at Constant Exchange Rate (CER) basis as its Management Guidance. The full year management guidance for the fiscal year ending March 31, 2025 (FY2024) has not been changed from the management guidance announced at the FY2023 financial results announcement on May 9, 2024.
FY2024 Management Guidance
CER % Change*1
Core Revenue
Flat to slightly declining
Core Operating Profit
Approx 10% decline
Core EPS
Mid-10s% decline

Other assumptions used in preparing the FY2024 Forecast and the Management Guidance
The FY2024 forecast and the management guidance assume global VYVANSE/ELVANSE sales of JPY 225.0 billion, a year-on-year decline of JPY 198.2 billion (49% decline at CER).
Forward looking statements
All forecasts in this document are based on information and assumptions currently available to management, and do not represent a promise or guarantee to achieve these forecasts. Various uncertain factors could cause actual results to differ, such as changes in the business environment and fluctuations in foreign exchange rates. Should any significant event occur which requires the forecast to be revised, Takeda will disclose it in a timely manner.

12
Takeda Pharmaceutical Company Limited (4502)
Earnings Report (Kessan Tanshin) for the Three-month
Period Ended June 30, 2024 (Consolidated)
2. Condensed Interim Consolidated Financial Statements [IFRS] and Major Notes
(1) Condensed Interim Consolidated Statements of Profit or Loss
 
JPY (millions, except per share data)
Three-month Period Ended June 30,
20232024
Revenue1,058,618 1,207,990 
Cost of sales(321,114)(386,954)
Selling, general and administrative expenses(248,113)(270,030)
Research and development expenses(162,741)(168,463)
Amortization and impairment losses on intangible assets associated with products(129,423)(162,831)
Other operating income4,251 10,868 
Other operating expenses(32,907)(64,252)
Operating profit168,571 166,329 
Finance income26,455 30,677 
Finance expenses(59,575)(59,691)
Share of loss of investments accounted for using the equity method(418)(712)
Profit before tax135,033 136,604 
Income tax expenses(45,627)(41,304)
Net profit for the period89,406 95,299 
Attributable to:
Owners of the Company89,395 95,248 
Non-controlling interests11 51 
Net profit for the period89,406 95,299 
Earnings per share (JPY)
Basic earnings per share57.51 60.71 
Diluted earnings per share57.12 59.94 
13
Takeda Pharmaceutical Company Limited (4502)
Earnings Report (Kessan Tanshin) for the Three-month
Period Ended June 30, 2024 (Consolidated)
(2) Condensed Interim Consolidated Statements of Comprehensive Income
 
JPY (millions)
Three-month Period Ended June 30,
20232024
Net profit for the period89,406 95,299 
Other comprehensive income (loss)
Items that will not be reclassified to profit or loss:
Changes in fair value of financial assets measured at fair value through other comprehensive income14,192 (5,077)
Remeasurement of defined benefit pension plans(310)1,916 
13,881 (3,160)
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations593,939 563,483 
Cash flow hedges(11,021)(3,271)
Hedging cost7,859 6,908 
Share of other comprehensive income (loss) of investments accounted for using the equity method(191)864 
590,586 567,983 
Other comprehensive income for the period, net of tax604,467 564,823 
Total comprehensive income for the period693,874 660,122 
Attributable to:
Owners of the Company693,816 660,048 
Non-controlling interests58 74 
Total comprehensive income for the period693,874 660,122 
14
Takeda Pharmaceutical Company Limited (4502)
Earnings Report (Kessan Tanshin) for the Three-month
Period Ended June 30, 2024 (Consolidated)
(3) Condensed Interim Consolidated Statements of Financial Position
JPY (millions)
As of March 31, 2024As of June 30, 2024
ASSETS
Non-current assets:
Property, plant and equipment1,989,777 2,085,382 
Goodwill5,410,067 5,733,710 
Intangible assets4,274,682 4,366,147 
Investments accounted for using the equity method89,831 87,688 
Other financial assets340,777 359,493 
Other non-current assets51,214 106,098 
Deferred tax assets393,865 381,632 
Total non-current assets12,550,212 13,120,151 
Current assets:
Inventories1,209,869 1,276,739 
Trade and other receivables668,403 755,425 
Other financial assets15,089 53,386 
Income taxes receivable29,207 16,942 
Other current assets168,875 197,010 
Cash and cash equivalents457,800 804,272 
Assets held for sale9,337 3,759 
Total current assets2,558,580 3,107,532 
Total assets15,108,792 16,227,683 
LIABILITIES AND EQUITY
LIABILITIES
Non-current liabilities:
Bonds and loans4,476,501 5,042,242 
Other financial liabilities687,833 616,388 
Net defined benefit liabilities143,882 148,677 
Income taxes payable4,381 — 
Provisions14,373 12,698 
Other non-current liabilities80,938 87,733 
Deferred tax liabilities113,777 55,510 
Total non-current liabilities5,521,684 5,963,249 
Current liabilities:
Bonds and loans367,251 438,743 
Trade and other payables547,521 468,882 
Other financial liabilities143,421 264,438 
Income taxes payable109,906 162,201 
Provisions524,420 565,124 
Other current liabilities619,174 564,382 
Liabilities held for sale1,410 1,433 
Total current liabilities2,313,103 2,465,202 
Total liabilities7,834,788 8,428,451 
15
Takeda Pharmaceutical Company Limited (4502)
Earnings Report (Kessan Tanshin) for the Three-month
Period Ended June 30, 2024 (Consolidated)
 JPY (millions)
 As of March 31, 2024As of June 30, 2024
EQUITY
Share capital1,676,596 1,676,596 
Share premium1,747,414 1,759,813 
Treasury shares(51,259)(50,897)
Retained earnings1,391,203 1,338,192 
Other components of equity2,509,310 3,074,714 
Equity attributable to owners of the Company7,273,264 7,798,417 
Non-controlling interests741 815 
Total equity7,274,005 7,799,232 
Total liabilities and equity15,108,792 16,227,683 
 

16
Takeda Pharmaceutical Company Limited (4502)
Earnings Report (Kessan Tanshin) for the Three-month
Period Ended June 30, 2024 (Consolidated)
(4) Condensed Interim Consolidated Statements of Changes in Equity
Three-month period ended June 30, 2023 (From April 1 to June 30, 2023)
JPY (millions)
Equity attributable to owners of the Company
Share
capital		Share
premium		Treasury
shares		Retained
earnings		Other components of equity
Exchange
differences
on translation
of foreign
operations		Changes in fair value of financial assets measured at fair value through other comprehensive income
As of April 1, 20231,676,345 1,728,830 (100,317)1,541,146 1,606,128 12,470 
Net profit for the period89,395 
Other comprehensive income (loss)593,692 14,201 
Comprehensive income (loss) for the period— — — 89,395 593,692 14,201 
Transactions with owners:
Issuance of new shares66 66 
Acquisition of treasury shares(2,350)
Disposal of treasury shares0 0 
Dividends(140,122)
Changes in ownership
Transfers from other components of equity(322)12 
Share-based compensation15,467 
Exercise of share-based awards(2,425)2,412 
Total transactions with owners66 13,108 62 (140,444)— 12 
As of June 30, 20231,676,411 1,741,937 (100,255)1,490,097 2,199,820 26,682 

 
Equity attributable to owners of the Company
  
 Other components of equity   
 Cash flow
hedges		Hedging
cost		Remeasurements of defined benefit pension plansTotal
other components of equity		Total
equity attributable to owners of the Company		Non-
controlling
interests		Total
equity
As of April 1, 2023(87,352)(23,127)— 1,508,119 6,354,122 549 6,354,672 
Net profit for the period— 89,395 11 89,406 
Other comprehensive income (loss)(11,021)7,859 (310)604,421 604,421 47 604,467 
Comprehensive income (loss) for the period(11,021)7,859 (310)604,421 693,816 58 693,874 
Transactions with owners:
Issuance of new shares— 132 132 
Acquisition of treasury shares— (2,350)(2,350)
Disposal of treasury shares— 0 0 
Dividends— (140,122)(140,122)
Changes in ownership— — 9 9 
Transfers from other components of equity310 322 — — 
Share-based compensation— 15,467 15,467 
Exercise of share-based awards— (13)(13)
Total transactions with owners— — 310 322 (126,886)9 (126,877)
As of June 30, 2023(98,373)(15,268)— 2,112,861 6,921,052 617 6,921,668 
  
17
Takeda Pharmaceutical Company Limited (4502)
Earnings Report (Kessan Tanshin) for the Three-month
Period Ended June 30, 2024 (Consolidated)
Three-month period ended June 30, 2024 (From April 1 to June 30, 2024)
  JPY (millions)
Equity attributable to owners of the Company
Share
capital		Share
premium		Treasury
shares		Retained
earnings		Other components of equity
Exchange
differences
on translation
of foreign
operations		Changes in fair value of financial assets measured at fair value through other comprehensive income
As of April 1, 20241,676,596 1,747,414 (51,259)1,391,203 2,573,407 15,729 
Net profit for the period95,248 
Other comprehensive income (loss)564,327 (5,080)
Comprehensive income (loss) for the period— — — 95,248 564,327 (5,080)
Transactions with owners:
Acquisition of treasury shares(1,913)
Disposal of treasury shares0 0 
Dividends(147,655)
Transfers from other components of equity(603)2,520 
Share-based compensation14,673 
Exercise of share-based awards(2,274)2,274 
Total transactions with owners— 12,399 361 (148,258)— 2,520 
As of June 30, 20241,676,596 1,759,813 (50,897)1,338,192 3,137,735 13,169 

 
Equity attributable to owners of the Company
  
 Other components of equity   
 Cash flow
hedges		Hedging
cost		Remeasurements of defined benefit pension plansTotal
other components of equity		Total
equity attributable to owners of the Company		Non-
controlling
interests		Total
equity
As of April 1, 2024(63,896)(15,930)— 2,509,310 7,273,264 741 7,274,005 
Net profit for the period— 95,248 51 95,299 
Other comprehensive income (loss)(3,271)6,908 1,916 564,800 564,800 23 564,823 
Comprehensive income (loss) for the period(3,271)6,908 1,916 564,800 660,048 74 660,122 
Transactions with owners:
Acquisition of treasury shares— (1,913)(1,913)
Disposal of treasury shares— 0 0 
Dividends— (147,655)(147,655)
Transfers from other components of equity(1,916)603 — — 
Share-based compensation— 14,673 14,673 
Exercise of share-based awards— — — 
Total transactions with owners— — (1,916)603 (134,895)— (134,895)
As of June 30, 2024(67,167)(9,022)— 3,074,714 7,798,417 815 7,799,232 
18
Takeda Pharmaceutical Company Limited (4502)
Earnings Report (Kessan Tanshin) for the Three-month
Period Ended June 30, 2024 (Consolidated)
(5) Condensed Interim Consolidated Statements of Cash Flows
JPY (millions)
Three-month Period Ended June 30,
20232024
Cash flows from operating activities:
Net profit for the period89,406 95,299 
Depreciation and amortization171,501 192,220 
Impairment losses7,829 26,000 
Equity-settled share-based compensation15,442 15,386 
Loss on sales and disposal of property, plant and equipment326 2,088 
Gain on divestment of business and subsidiaries(147)(6,229)
Change in fair value of financial assets and liabilities associated with contingent consideration arrangements, net44 (12)
Finance (income) and expenses, net33,120 29,014 
Share of loss of investments accounted for using the equity method418 712 
Income tax expenses45,627 41,304 
Changes in assets and liabilities:
Increase in trade and other receivables(90,373)(47,744)
Increase in inventories(28,589)(10,079)
Decrease in trade and other payables(34,656)(37,455)
Increase (decrease) in provisions(22,583)6,120 
Increase in other financial liabilities25,254 8,964 
Other, net(67,640)(109,785)
Cash generated from operations144,980 205,805 
Income taxes paid(55,907)(37,811)
Tax refunds and interest on tax refunds received3,327 2,310 
Net cash from operating activities92,400 170,304 
Cash flows from investing activities:
Interest received2,322 4,331 
Dividends received147 206 
Acquisition of property, plant and equipment(45,957)(57,441)
Proceeds from sales of property, plant and equipment11 9 
Acquisition of intangible assets(223,280)(80,357)
Acquisition of option to license— (15,693)
Acquisition of investments(674)(12,980)
Proceeds from sales and redemption of investments543 5,317 
Proceeds from sales of business, net of cash and cash equivalents divested372 2,941 
Payments for the settlement of forward exchange contracts designated as net investment hedges— (2,999)
Other, net(15)(28)
Net cash used in investing activities(266,530)(156,693)
19
Takeda Pharmaceutical Company Limited (4502)
Earnings Report (Kessan Tanshin) for the Three-month
Period Ended June 30, 2024 (Consolidated)
JPY (millions)
Three-month Period Ended June 30,
20232024
Cash flows from financing activities:
Net increase (decrease) in short-term loans and commercial papers110,000 (17,000)
Proceeds from issuance of bonds and long-term loans100,000 507,638 
Repayments of bonds and long-term loans(100,088)(50,109)
Proceeds from the settlement of cross currency interest rate swaps related to bonds and loans— 46,880 
Acquisition of treasury shares(2,326)(1,882)
Interest paid(19,815)(15,466)
Dividends paid(130,746)(138,110)
Repayments of lease liabilities(10,546)(10,916)
Other, net(4,257)(4,654)
Net cash from (used in) financing activities(57,778)316,381 
Net increase (decrease) in cash and cash equivalents(231,908)329,991 
Cash and cash equivalents at the beginning of the year533,530 457,800 
Effects of exchange rate changes on cash and cash equivalents14,759 17,220 
Cash and cash equivalents at the end of the period316,380 805,012 
Cash and cash equivalents reclassified to assets held for sale— (740)
Cash and cash equivalents at the end of the period
(Condensed interim consolidated statements of financial position)		316,380 804,272 


20
Takeda Pharmaceutical Company Limited (4502)
Earnings Report (Kessan Tanshin) for the Three-month
Period Ended June 30, 2024 (Consolidated)
(6) Notes to Condensed Interim Consolidated Financial Statements
(Significant Uncertainty Regarding Going Concern Assumption)
Not applicable.
(Material Accounting Policies)
Material accounting policies adopted for the condensed interim consolidated financial statements are the same as those adopted for the consolidated financial statements as of and for the fiscal year ended March 31, 2024.
Takeda calculated income tax expenses for the three-month period ended June 30, 2024, based on the estimated average annual effective tax rate.

(Operating Segment and Revenue Information)
Takeda comprises a single operating segment and is engaged in the research, development, manufacturing, marketing and out-licensing of pharmaceutical products. This is consistent with how the financial information is viewed in allocating resources, measuring performance, and forecasting future periods by the CEO who is Takeda’s Chief Operating Decision Maker.
(Significant Changes in Equity Attributable to Owners of the Company)
Not applicable.
(Significant Subsequent Events)
On July 5, 2024, Takeda issued USD 3,000 million in unsecured U.S. dollar-denominated senior notes (the “Notes”) with maturity dates and coupon rates ranging from July 5, 2034 to July 5, 2064 and 5.300%-5.800% per annum, respectively. On July 12, 2024, the proceeds of the Notes were fully used to fund a tender offer to redeem USD 1,500 million in unsecured senior notes in advance of their original maturity in September 2026, in addition to the reduction of commercial paper drawings during the month of July 2024. The impact from these redemptions on the consolidated statements of profit or loss was not material.
On July 9, 2024, Takeda provided a call notice of redemption effective October 6, 2024 to the holders of JPY 500,000 million in Hybrid subordinated bonds that were issued in June 2019, in advance of their original maturity in June 2079. The impact from the accelerated debt prepayment on the consolidated statements of profit or loss is not expected to be material.
21
Exhibit 99.1
imagea.jpg
　
FINANCIAL APPENDIX

Definition of Non-IFRS Measures
Definition and Explanation of Non-IFRS Measures and U.S. Dollar Convenience Translations
A-1
Reconciliations and Other Financial Information
FY2024 Q1 Reported Results with CER % Change
A-4
FY2024 Q1 Core Results with CER % Change
A-5
FY2024 Q1 Reconciliation from Reported to Core
A-6
FY2023 Q1 Reconciliation from Reported to Core
A-7
FY2024 Q1 Adjusted Free Cash Flow
A-8
FY2024 Q1 Adjusted Net Debt to Adjusted EBITDA
A-9
FY2023 Adjusted Net Debt to Adjusted EBITDA
A-10
FY2024 Q1 Net Profit to Adjusted EBITDA Bridge
A-11
FY2024 Q1 Net Profit to Adjusted EBITDA LTM Bridge
A-12
FY2024 Q1 CAPEX, Depreciation and Amortization and Impairment Losses
A-13
FY2024 Full Year Detailed Forecast
A-14
FY2024 Full Year Reconciliation from Reported Operating Profit to Core Operating Profit Forecast
A-15
FY2024 Full Year FX Rates Assumptions and Currency Sensitivity vs. Forecast
A-16
Important Notice
Important Notice, Forward-Looking Statements, Financial Information and Non-IFRS Measures, and Medical Information
A-17

imagea.jpg
Definition and Explanation of Non-IFRS Measures and U.S. Dollar Convenience Translations
Core Financial Measures
Takeda’s Core Financial Measures, particularly Core Revenue, Core Operating Profit, Core Net Profit for the Year attributable to owners of the Company and Core EPS, exclude revenue from divestments, amortization and impairment losses on intangible assets associated with products (includes in-process R&D) and other impacts unrelated to the underlying trends and business performance of Takeda’s core operations, such as non-recurring items, purchase accounting effects and transaction related costs. Core Revenue represents revenue adjusted to exclude significant revenue items unrelated to the underlying trends and business performance of Takeda’s core operations. Core Operating Profit represents operating profit adjusted to exclude other operating expenses and income, amortization and impairment losses on intangible assets associated with products (includes in-process R&D) and non-cash items or items unrelated to the underlying trends and business performance of Takeda’s core operations. Core EPS represents net profit for the year attributable to owners of the Company, adjusted to exclude the impact of items excluded in the calculation of Core Operating Profit, and other non-operating items (e.g. amongst other items, fair value adjustments and the imputed financial charge related to contingent consideration) that are unusual, non-recurring in nature or unrelated to the underlying trends and business performance of Takeda’s ongoing operations and the tax effect of each of the adjustments, divided by the average outstanding shares (excluding treasury shares) of the reporting periods presented.
Takeda presents its Core Financial Measures because Takeda believes that these measures are useful to understanding its business without the effect of items that Takeda considers to be unrelated to the underlying trends and business performance of its core operations, including items (i) which may vary significantly from year-to-year or may not occur in each year, or (ii) whose recognition Takeda believes is largely uncorrelated to trends in the underlying performance of our core business. Takeda believes that similar measures are frequently used by other companies in its industry, and that providing these measures helps investors evaluate Takeda’s performance against not only its performance in prior years but on a similar basis as its competitors. Takeda also presents Core Financial Measures because these measures are used by Takeda for budgetary planning and compensation purposes (i.e., certain targets for the purposes of Takeda’s Short-Term Incentive and Long-Term Incentive compensation programs, including incentive compensation of the CEO and CFO, are set in relation to the results of Takeda’s Core Financial Measures).
Constant Exchange Rate (“CER”) Change
Constant Exchange Rate (CER) change eliminates the effect of foreign exchange rates from year-over-year comparisons by translating financial results in accordance with IFRS or Core (non-IFRS) financial measures for the current period using corresponding exchange rates in the same period of the previous fiscal year.
Takeda presents CER change because we believe that this measure is useful to investors to better understand the effect of exchange rates on our business, and to understand how our results of operations might have changed from year to year without the effect of fluctuations in exchange rates. These are the primary ways in which our management uses these measures to evaluate our results of operations. We also believe that this is a useful measure for investors as similar performance measures are frequently used by securities analysts, investors and other interested parties in the evaluation of the results of operations of other companies in our industry (many of whom similarly present measures that adjust for the effect of exchange rates).
The usefulness of this presentation has significant limitations including, but not limited to, that while CER change is calculated using the same exchange rates used to calculate financial results as presented under IFRS for the previous fiscal year, this does not necessarily mean that the transactions entered into during the relevant fiscal year could have been entered into or would have been recorded at the same exchange rates. Moreover, other companies in our industry using similarly titled measures may define and calculate those measures differently than we do, and therefore such measures may not be directly comparable. Accordingly, CER change at constant exchange rates should not be considered in isolation and is not, and should not be viewed as, a substitute for change in financial results as prepared and presented in accordance with IFRS. Starting from the quarter ended June 30, 2024, we ceased adjustments for CER change for the results of operations of subsidiaries in countries experiencing hyperinflation and for which IAS29, Financial Reporting in Hyperinflation Economies, is applied, because of the increased impacts of hyperinflation in the calculation of CER change using corresponding exchange rates in the same period of the previous fiscal year, effectively keeping CER change for these subsidiaries unchanged from those reported with IAS29.

A-1
imagea.jpg

Free Cash Flow and Adjusted Free Cash Flow
Takeda defines Free Cash Flow as cash flows from operating activities less acquisition of property, plant and equipment (“PP&E”). Takeda defines Adjusted Free Cash Flow as cash flows from operating activities, subtracting payments for acquisition of PP&E, intangible assets, investments and businesses, net of cash and cash equivalents acquired, and other transactional payments deemed related or similar in substance thereto as well as adding proceeds from sales of PP&E, investments (including redemptions where relevant) and businesses, net of cash and cash equivalents acquired and divested, and further adjusting for the movement of any other cash that is not available to Takeda’s immediate or general business use.
Takeda presents Free Cash Flow and Adjusted Free Cash Flow because Takeda believes that these measures are useful to investors as similar measures of liquidity are frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry. Adjusted Free Cash Flow is also used by our management to evaluate our liquidity and our cash flows, particularly as they relate to our ability to meet our liquidity requirements and to support our capital allocation policies. Takeda also believes that Free Cash Flow and Adjusted Free Cash Flow are helpful to investors in understanding how our strategic acquisitions and divestitures of businesses contribute to our cash flows and liquidity.
The usefulness of Free Cash Flow and Adjusted Free Cash Flow to investors has significant limitations including, but not limited to, (i) they may not be comparable to similarly titled measures used by other companies, including those in our industry, (ii) they do not reflect the effect of our current and future contractual and other commitments requiring the use or allocation of capital and (iii) the addition of proceeds from sales and redemption of investments and the proceeds from sales of business, net of cash and cash equivalents divested do not represent cash received from our core ongoing operations. Free Cash Flow and Adjusted Free Cash Flow should not be considered in isolation and are not, and should not be viewed as, substitutes for cash flows from operating activities or any other measure of liquidity presented in accordance with IFRS. The most directly comparable measure under IFRS for Free Cash Flow and Adjusted Free Cash Flow is net cash from operating activities. Starting from the quarter ended June 30, 2024, we i) changed the title of Free Cash Flow as previously represented to "Adjusted Free Cash Flow" and ii) began reporting “Free Cash Flow” as cash flows from operating activities less acquisition of PP&E. This change is intended to enhance the comparability of our Free Cash Flow disclosures to those of our peers and to better describe the nature of these measures as presented by Takeda.
EBITDA and Adjusted EBITDA
Takeda defines EBITDA as consolidated net profit before income tax expenses, depreciation and amortization and net interest expense. Takeda defines Adjusted EBITDA as EBITDA further adjusted to exclude impairment losses, other operating income and expenses (excluding depreciation and amortization), finance income and expenses (excluding net interest expense), our share of loss from investments accounted for under 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. 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 because they are highly variable, difficult to predict, may substantially impact our results of operations and may limit the ability to evaluate our performance from one period to another on a consistent basis.
The usefulness of EBITDA and Adjusted EBITDA to investors has significant limitations including, but not limited to, (i) they may not be comparable to similarly titled measures used by other companies, including those in the pharmaceutical industry, (ii) they exclude financial information and events, such as the effects of an acquisition, or amortization of intangible assets, that some may consider important in evaluating Takeda’s performance, value or prospects for the future, (iii) they exclude items or types of items that may continue to occur from period to period in the future and (iv) they may not include all items which investors may consider important to an understanding of our results of operations, or exclude all items which investors may not consider to be so. EBITDA and Adjusted EBITDA should not be considered in isolation and are not, and should not be viewed as, substitutes for operating income, net profit for the year or any other measure of performance presented in accordance with IFRS. The most closely comparable measure presented in accordance with IFRS is net profit for the period.

A-2
imagea.jpg

Net Debt and Adjusted Net Debt
Takeda defines Net Debt as the book value of bonds and loans on consolidated statements of financial position adjusted only for cash and cash equivalents, and Adjusted Net Debt first by calculating the sum of the current and non-current portions of bonds and loans as shown on our consolidated statement of financial position, which is then adjusted to reflect (i) the use of prior 12-month average exchange rates for non-JPY debt outstanding at the beginning of the period and the use of relevant spot rates for new non-JPY debt incurred and existing non-JPY debt redeemed during the reporting period, which reflects the methodology our management uses to monitor our leverage, and (ii) the “equity credit” applied to Takeda’s “hybrid” subordinated indebtedness by S&P Global Rating Japan in recognition of the equity-like features of those instruments pursuant to such agency’s ratings methodology. To calculate Adjusted Net Debt, Takeda deducts from this figure cash and cash equivalents, excluding cash temporarily held by Takeda on behalf of third parties related to vaccine operations and to the trade receivables sales program, and debt investments classified as Level 1 in the fair value hierarchy being recorded as Other Financial Assets.
Takeda presents Net Debt and Adjusted Net Debt because Takeda believes that these measures are useful to investors in that our management uses it to monitor and evaluate our indebtedness, net of cash and cash equivalents, and, in conjunction with Adjusted EBITDA, to monitor our financial leverage (for the avoidance of doubt, Adjusted Net Debt and the ratio of Adjusted Net Debt to Adjusted EBITDA are not intended to be indicators of Takeda’s liquidity). Takeda also believes that similar measures of indebtedness are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. Particularly following the acquisition of Shire, investors, analysts and, in particular, ratings agencies, have closely monitored Takeda’s leverage, as represented by the ratio of its Adjusted Net Debt to Adjusted EBITDA. In light of the weight given by ratings agencies in particular to this ratio, Takeda believes that such information is useful to investors to help understand not only Takeda’s financial leverage, but also how ratings agencies evaluate the level of financial leverage in evaluating Takeda’s quality of credit. Accordingly, as described below, Takeda includes an adjustment to its Adjusted Net Debt to reflect the “equity credit” afforded to certain of its subordinated indebtedness by ratings agencies (such indebtedness does not qualify for treatment as equity under IFRS).
The usefulness of Adjusted Net Debt to investors has significant limitations including, but not limited to, (i) it may not be comparable to similarly titled measures used by other companies, including those in the pharmaceutical industry, (ii) it does not reflect the amounts of interest payments to be paid on Takeda’s indebtedness, (iii) it does not reflect any restrictions on Takeda’s ability to prepay or redeem any of our indebtedness, (iv) it does not reflect any fees, costs or other expenses that Takeda may incur in converting cash equivalents to cash, in converting cash from one currency into another or in moving cash within our consolidated group, (v) it applies to gross debt an adjustment for average foreign exchange rates which, although consistent with Takeda’s financing agreements, does not reflect the actual rates at which Takeda would be able to convert one currency into another and (vi) it reflects an equity credit despite the fact that Takeda’s subordinated bonds are not eligible for equity treatment under IFRS, although Takeda believes this adjustment to be reasonable and useful to investors. Adjusted Net Debt should not be considered in isolation and is not, and should not be viewed as, a substitute for bonds and loans or any other measure of indebtedness presented in accordance with IFRS. The most directly comparable measures under IFRS for Net Debt is bonds and loans. Starting from the quarter ended June 30, 2024, we i) changed the title of Net Debt as previously represented to "Adjusted Net Debt" and ii) began reporting “Net Debt” as the book value of bonds and loans on consolidated statements of financial position adjusted only for cash and cash equivalents. This change is intended to enhance the comparability of our Net Debt disclosures to those of our peers and to better describe the nature of these measures as presented by Takeda.
U.S. Dollar Convenience Translations
In the Financial Appendix, certain amounts presented in Japanese yen have been translated to U.S. dollars solely for the convenience of the reader at an exchange rate of 1USD = 160.88 JPY, the Noon Buying Rate certified by the Federal Reserve Bank of New York on June 28, 2024. The rate and methodologies used for the convenience translations differ from the currency exchange rates and translation methodologies under IFRS used for the preparation of the condensed interim consolidated financial statements. The translation should not be construed as a representation that the Japanese yen amounts could be converted into U.S. dollars at this or any other rate.
A-3
imagea.jpg
FY2024 Q1 Reported Results with CER % Change
(Billion JPY, except EPS)
FY2023
 Q1		FY2024
 Q1		vs. PY
(Million USD,
except EPS)
FY2024 Q1
Convenience
USD Translation
AER
CER
Amount of Change% CHANGE% CHANGE
Revenue1,058.6 1,208.0 149.414.1%2.1%7,509 
Cost of sales(321.1)(387.0)(65.8)(20.5)%(8.1)%(2,405)
Gross profit737.5 821.0 83.511.3%(0.5)%5,103 
Margin69.7 %68.0 %(1.7) pp(1.8) pp68.0 %
SG&A expenses(248.1)(270.0)(21.9)(8.8)%2.4%(1,678)
R&D expenses(162.7)(168.5)(5.7)(3.5)%7.7%(1,047)
Amortization of intangible assets associated with products(123.2)(138.6)(15.4)(12.5)%0.8%(862)
Impairment losses on intangible assets associated with products*1
(6.2)(24.2)(18.0)(288.8)%(284.1)%(151)
Other operating income4.3 10.9 6.6155.7%135.4%68 
Other operating expenses(32.9)(64.3)(31.3)(95.3)%(72.8)%(399)
Operating profit168.6 166.3 (2.2)(1.3)%(12.0)%1,034 
Margin15.9 %13.8 %(2.2) pp(2.2) pp13.8 %
Finance income26.5 30.7 4.216.0%14.5%191 
Finance expenses(59.6)(59.7)(0.1)(0.2)%2.8%(371)
Share of profit (loss) of investments accounted for using the equity method
(0.4)(0.7)(0.3)(70.3)%(60.3)%(4)
Profit before tax135.0 136.6 1.61.2%(11.1)%849 
Income tax (expenses) benefit
(45.6)(41.3)4.39.5%14.8%(257)
Net profit for the period89.4 95.3 5.96.6%(9.2)%592 
Non-controlling interests(0.0)(0.1)(0.0)(351.2)%(331.8)%(0)
Net profit attributable to owners of the Company89.4 95.2 5.96.5%(9.3)%592 
Basic EPS (JPY or USD)57.51 60.71 3.205.6%(10.1)%0.38 
*1 Includes in-process R&D
When comparing results to the same period of the previous fiscal year, the amount of change and percentage change based on Actual Exchange Rates are presented in “AER” (which is presented in accordance with IFRS) and percentage change based on Constant Exchange Rate (which is a non-IFRS measure) is presented in “CER”. Please refer to Definition and Explanation of Non-IFRS Measures and U.S. Dollar Convenience Translations, for the definition of the “Constant Exchange Rate change”.
% change versus the same period of the previous fiscal year is presented as positive when favorable to profits, and negative when unfavorable to profits.
A-4
imagea.jpg
FY2024 Q1 Core Results with CER % Change
(Billion JPY, except EPS)
FY2023
Q1
FY2024
Q1
vs. PY
(Million USD,
except EPS)
FY2024 Q1
Convenience
USD Translation
AER
CER
Amount of Change% CHANGE% CHANGE
Revenue1,058.6 1,208.0 149.414.1%2.1%7,509 
Cost of sales(321.2)(387.1)(65.8)(20.5)%(8.1)%(2,406)
Gross profit737.4 820.9 83.511.3%(0.5)%5,103 
Margin69.7 %68.0 %(1.7) pp(1.8) pp68.0 %
SG&A expenses(248.3)(270.2)(21.8)(8.8)%2.5%(1,679)
R&D expenses(162.7)(168.5)(5.8)(3.5)%7.7%(1,047)
Operating profit326.3 382.3 55.917.1%4.5%2,376 
Margin30.8 %31.6 %0.8 pp0.7 pp31.6 %
Finance income26.3 25.0 (1.3)(4.8)%(6.2)%156 
Finance expenses(54.8)(55.1)(0.3)(0.5)%2.5%(342)
Share of profit (loss) of investments accounted for using the equity method0.8 0.4 (0.4)(48.8)%(57.6)%2 
Profit before tax298.6 352.6 54.018.1%4.7%2,192 
Income tax (expenses) benefit(65.2)(75.7)(10.6)(16.2)%(7.5)%(471)
Net profit for the period
233.4 276.9 43.518.6%3.9%1,721 
Non-controlling interests(0.0)(0.1)(0.0)(351.2)%(331.8)%(0)
Net profit attributable to owners of the Company233.4 276.8 43.418.6%3.9%1,721 
Basic EPS (JPY or USD)
150 176 2617.5%2.9%1.10 
When comparing results to the same period of the previous fiscal year, the amount of change and percentage change based on Actual Exchange Rates are presented in “AER” (which is presented in accordance with IFRS) and percentage change based on Constant Exchange Rate (which is a non-IFRS measure) is presented in “CER”. Please refer to Definition and Explanation of Non-IFRS Measures and U.S. Dollar Convenience Translations, for the definition of the “Constant Exchange Rate change”.
% change versus the same period of the previous fiscal year is presented as positive when favorable to profits, and negative when unfavorable to profits.
A-5
imagea.jpg
FY2024 Q1 Reconciliation from Reported to Core

(Billion JPY, except EPS and number of shares)REPORTEDREPORTED TO CORE ADJUSTMENTSCORE
Amortization of
intangible
assets		Impairment of
intangible
assets		Other
operating income/
expenses		Others
Revenue1,208.0 1,208.0 
Cost of sales(387.0)(0.1)(387.1)
Gross profit821.0 (0.1)820.9 
SG&A expenses(270.0)(0.1)(270.2)
R&D expenses(168.5)(0.0)(168.5)
Amortization of intangible assets associated with products(138.6)138.6— 
Impairment losses on intangible assets associated with products*1
(24.2)24.2— 
Other operating income10.9 (10.9)— 
Other operating expenses(64.3)64.3— 
Operating profit166.3 138.624.253.4(0.3)382.3 
Margin13.8 %31.6 %
Finance income and (expenses), net(29.0)(1.0)(30.1)
Share of profit (loss) of investments accounted for using the equity method(0.7)1.10.4 
Profit before tax136.6 138.624.253.4(0.2)352.6 
Income tax (expenses) benefit(41.3)(29.0)(7.2)(11.4)13.2(75.7)
Non-controlling interests(0.1)(0.1)
Net profit attributable to owners of the Company95.2 109.617.042.013.0276.8 
Basic EPS (JPY)61 176 
Number of shares (millions)1,569 1,569 
*1 Includes in-process R&D.
A-6
imagea.jpg
FY2023 Q1 Reconciliation from Reported to Core

(Billion JPY, except EPS and number of shares)REPORTEDREPORTED TO CORE ADJUSTMENTSCORE
Amortization of
intangible
assets		Impairment of
intangible
assets		Other
operating income/
expenses		Others
Revenue1,058.6 1,058.6 
Cost of sales(321.1)(0.1)(321.2)
Gross profit737.5 (0.1)737.4 
SG&A expenses(248.1)(0.2)(248.3)
R&D expenses(162.7)(0.0)(162.7)
Amortization of intangible assets associated with products(123.2)123.2— 
Impairment losses on intangible assets associated with products*1
(6.2)6.2— 
Other operating income4.3 (4.3)— 
Other operating expenses(32.9)32.9— 
Operating profit168.6 123.26.228.7(0.3)326.3 
Margin15.9 %30.8 %
Finance income and (expenses), net(33.1)4.6(28.5)
Share of profit (loss) of investments accounted for using the equity method(0.4)1.20.8 
Profit before tax135.0 123.26.228.75.4298.6 
Income tax (expenses) benefit(45.6)(26.2)(1.4)(6.4)14.5(65.2)
Non-controlling interests(0.0)(0.0)
Net profit attributable to owners of the Company89.4 97.04.922.219.9233.4 
Basic EPS (JPY)58 150 
Number of shares (millions)1,554 1,554 
*1 Includes in-process R&D.
A-7
imagea.jpg
FY2024 Q1 Adjusted Free Cash Flow
(Billion JPY)FY2023
Q1		FY2024
Q1		vs. PY(Million USD)
FY2024 Q1
Convenience USD Translation
Net profit89.4 95.3 5.9 6.6 %592 
Depreciation, amortization and impairment loss179.3 218.2 38.9 1,356 
Decrease (increase) in trade working capital(153.6)(95.3)58.3 (592)
Income taxes paid(55.9)(37.8)18.1 (235)
Tax refunds and interest on tax refunds received3.3 2.3 (1.0)14 
Other29.9 (12.4)(42.3)(77)
Net cash from operating activities (Operating Cash Flow)92.4 170.3 77.9 84.3 %1,059 
Acquisition of PP&E(46.0)(57.4)(11.5)(357)
Free Cash Flow*1
46.4 112.9 66.4 143.0 %702 
Adjustment for cash temporarily held by Takeda on behalf of third parties*2
(30.9)11.6 42.5 72 
Proceeds from sales of PP&E0.0 0.0 (0.0)0 
Acquisition of intangible assets*3
(223.3)(80.4)142.9 (499)
Acquisition of option to license— (15.7)(15.7)(98)
Acquisition of investments(0.7)(13.0)(12.3)(81)
Proceeds from sales and redemption of investments0.5 5.3 4.8 33 
Proceeds from sales of business, net of cash and cash equivalents divested0.4 2.9 2.6 18 
Adjusted Free Cash Flow*1
(207.5)23.7 231.2 — 147 
*1 Please refer to Definition and Explanation of Non-IFRS Measures and U.S. Dollar Convenience Translations for additional information on change in the titles and definitions of Free Cash Flow and Adjusted Free Cash Flow from FY2024.
*2 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.
*3 Proceeds from sale of intangible assets are separately adjusted as they are recorded within operating cash flows, except certain immaterial transactions.
A-8
imagea.jpg
FY2024 Q1 Adjusted Net Debt to Adjusted EBITDA
NET DEBT/ADJUSTED EBITDA RATIONET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(Billion JPY)FY2024
Q1		(Billion JPY)FY2023
Q1		FY2024
Q1		vs. PY
Book value of bonds and loans on consolidated statements of financial position(5,481.0)Net cash from operating activities (Operating Cash Flow)92.4 170.3 77.9 84.3 %
Acquisition of PP&E(46.0)(57.4)
Cash & cash equivalents804.3 Proceeds from sales of PP&E0.0 0.0 
Net Debt*1
(4,676.7)Acquisition of intangible assets(223.3)(80.4)
Application of equity credit*2
250.0 Acquisition of option to license— (15.7)
FX adjustment*3
247.3 Acquisition of investments(0.7)(13.0)
Cash temporarily held by Takeda on behalf of third parties*4
(96.2)Proceeds from sales and redemption of investments0.5 5.3 
Level 1 debt investments*4
— Proceeds from sales of business, net of cash and cash equivalents divested0.4 2.9 
Adjusted Net Debt*1
(4,275.7)Payments for the settlement of forward exchange contracts designated as net investment hedges— (3.0)
Adjusted EBITDA (LTM)*5
1,382.4 Net increase (decrease) in short-term loans and commercial papers110.0 (17.0)
Proceeds from long-term loans100.0 50.0 
Adjusted Net Debt/Adjusted EBITDA ratio3.1xRepayment of long-term loans(100.1)(50.1)
Proceeds from issuance of bonds— 457.6 
Book value of bonds and loans on consolidated statements of financial position(5,481.0)Proceeds from the settlement of cross currency interest rate swaps related to bonds and loans— 46.9 
Application of equity credit *2
250.0 Acquisition of treasury shares(2.3)(1.9)
FX adjustment*3
247.3 Interest paid(19.8)(15.5)
Adjusted Gross Debt(4,983.7)Dividends paid(130.7)(138.1)
Others(12.3)(11.1)
Net increase (decrease) in cash and cash equivalents(231.9)330.0 561.9 — 
*1 Please refer to Definition and Explanation of Non-IFRS Measures and U.S. Dollar Convenience Translations for additional information on change in the titles and definitions of Net Debt and Adjusted Net Debt from FY2024.
*2 Application of equity credit includes JPY 250.0 billion reduction in debt due to a 50% equity credit applied to JPY 500.0 billion principal amount of our hybrid (subordinated) bonds and loans by S&P Global Rating Japan, given that those instruments qualify for certain equity credit for leverage purposes.
*3 FX adjustment refers to change from month-end rate to average rate used for non-JPY debt calculation outstanding at the beginning of the period to match with adjusted EBITDA (which is calculated based on average rates). New non-JPY debt incurred and existing non-JPY debt redeemed during the reporting period are translated to JPY at relevant spot rates as of the relevant date.
*4 Adjustments related to cash temporarily held by Takeda on behalf of third parties related to vaccine operations and to the trade receivables sales program, which is not available to Takeda’s immediate or general business use, and debt investments classified as Level 1 in the fair value hierarchy being recorded as Other Financial Assets.
*5 LTM represents Last Twelve Months (July 2023 - June 2024). Calculated by subtracting FY2023 Q1 from FY2023 Full Year and adding FY2024 Q1.
A-9
imagea.jpg
FY2023 Adjusted Net Debt to Adjusted EBITDA
NET DEBT/ADJUSTED EBITDA RATIONET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(Billion JPY)FY2023(Billion JPY)FY2022FY2023vs. PY
Book value of bonds and loans on consolidated statements of financial position(4,843.8)Net cash from operating activities (Operating Cash Flow)977.2 716.3 (260.8)(26.7)%
Acquisition of PP&E(140.7)(175.4)
Cash & cash equivalents457.8 Proceeds from sales of PP&E1.0 8.6 
Net Debt*1
(4,386.0)Acquisition of intangible assets(493.0)(305.3)
Application of equity credit*2
250.0 Acquisition of investments(10.2)(6.8)
FX adjustment*3
152.5 Proceeds from sales and redemption of investments22.3 8.0 
Cash temporarily held by Takeda on behalf of third parties*4
(107.8)Proceeds from sales of business, net of cash and cash equivalents divested8.0 20.0 
Level 1 debt investments*4
— Net increase in short-term loans and commercial papers40.0 277.0 
Adjusted Net Debt*1
(4,091.3)Proceeds from long-term loans75.0 100.0 
Repayment of long-term loans(75.2)(100.4)
Adjusted EBITDA1,319.9 Repayment of bonds(281.5)(220.5)
Proceeds from the settlement of cross currency interest rate swaps related to bonds— 60.1 
Adjusted Net Debt/Adjusted EBITDA ratio3.1xPurchase of treasury shares(26.9)(2.3)
Interest paid(108.6)(100.4)
Book value of bonds and loans on consolidated statements of financial position(4,843.8)Dividends paid(279.4)(287.2)
Others(47.0)(93.6)
Application of equity credit*2
250.0 Net increase (decrease) in cash and cash equivalents(339.1)(101.9)237.2 69.9 %
FX adjustment*3
152.5 
Adjusted Gross Debt(4,441.2)
*1 The FY2023 presentation included herein has been adjusted for new definitions applied starting from the quarter ended June 30, 2024; please refer to Definition and Explanation of Non-IFRS Measures and U.S. Dollar Convenience Translations for additional information on change in the titles and definitions of Net Debt and Adjusted Net Debt from FY2024.
*2 Application of equity credit includes JPY 250.0 billion reduction in debt due to a 50% equity credit applied to JPY 500.0 billion principal amount of our hybrid (subordinated) bonds and loans by S&P Global Rating Japan, given that those instruments qualify for certain equity credit for leverage purposes.
*3 FX adjustment refers to change from month-end rate to average rate used for non-JPY debt calculation outstanding at the beginning of the period to match with adjusted EBITDA (which is calculated based on average rates). New non-JPY debt incurred and existing non-JPY debt redeemed during the reporting period are translated to JPY at relevant spot rates as of the relevant date.
*4 Adjustments related to cash temporarily held by Takeda on behalf of third parties related to vaccine operations and to the trade receivables sales program, which is not available to Takeda’s immediate or general business use, and debt investments classified as Level 1 in the fair value hierarchy being recorded as Other Financial Assets.
A-10
imagea.jpg
FY2024 Q1 Net Profit to Adjusted EBITDA Bridge
(Billion JPY)FY2023
Q1		FY2024
Q1		vs. PY
Net profit89.495.35.96.6 %
Income tax (expenses) benefit45.641.3
Depreciation and amortization171.5192.2
Interest expense, net26.626.6
EBITDA333.2355.422.26.7 %
Impairment losses7.826.0
Other operating expense (income), net, excluding depreciation and amortization and other miscellaneous expenses (non-cash item)25.750.7
Finance expense (income), net, excluding interest expense, net6.52.4
Share of loss on investments accounted for under the equity method0.40.7
Other costs*1
14.614.9
Adjusted EBITDA388.2450.161.916.0 %
*1 Includes adjustments for non-cash equity-based compensation expense and other one time non-cash expense.
A-11
imagea.jpg
FY2024 Q1 Net Profit to Adjusted EBITDA LTM Bridge
(Billion JPY)FY2023
Full Year
(Apr - Mar)		FY2023
Q1
(Apr - Jun)		FY2024
Q1
(Apr - Jun)
FY2024
Q1 LTM*1
(Jul - Jun)
Net profit144.289.495.3150.1
Income tax (expenses) benefit(91.4)45.641.3(95.7)
Depreciation and amortization728.0171.5192.2748.7
Interest expense, net108.226.626.6108.2
EBITDA889.0333.2355.4911.3
Impairment losses150.07.826.0168.2
Other operating expense (income), net, excluding depreciation and amortization and other miscellaneous expenses (non-cash item)162.225.750.7187.2
Finance expense (income), net, excluding interest expense, net59.56.52.455.5
Share of profit (loss) on investments accounted for using the equity method(6.5)0.40.7(6.2)
Other costs*2
69.914.614.970.1
Adjusted EBITDA1,324.1388.2450.11,386.0
EBITDA from divested products*3
(4.2)(3.6)
Adjusted EBITDA (LTM)1,319.9 1,382.4 
*1 LTM represents Last Twelve Months (July 2023 - June 2024). Calculated by subtracting FY2023 Q1 from FY2023 Full Year and adding FY2024 Q1.
*2 Includes adjustments for non-cash equity-based compensation expense and other one time non-cash expense.
*3 Represents adjustments for EBITDA from divested products which are removed as part of LTM Adjusted EBITDA.
A-12
imagea.jpg
FY2024 Q1 CAPEX, Depreciation and Amortization and Impairment Losses
(Billion JPY)
FY2023
Q1
FY2024
Q1
vs. PY
FY2024 Forecast
Capital expenditures*1
269.2 137.8 (131.4)(48.8)%380.0 - 420.0
Tangible assets46.0 57.4 11.5 25.0 %
Intangible assets223.3 80.4 (142.9)(64.0)%
Depreciation and amortization171.5 192.2 20.7 12.1 %745.0
Depreciation of tangible assets*2 (A)
41.1 43.9 2.9 7.0 %
Amortization of intangible assets (B)130.4 148.3 17.9 13.7 %
Of which Amortization associated with products (C)123.2 138.6 15.4 12.5 %540.0
Of which Amortization excluding intangible assets
    associated with products (D)		7.2 9.7 2.4 33.6 %
Depreciation and amortization (excluding
 intangible assets associated with products) (A)+(D)		48.3 53.6 5.3 11.0 %205.0
Impairment losses7.8 26.0 18.2 232.1 %
Impairment losses on intangible assets associated with products*3
6.2 24.2 18.0 288.8 %50.0
Amortization and impairment losses on intangible assets associated with products129.4 162.8 33.4 25.8 %590.0
*1 Cash flow base
*2 Includes depreciation of investment properties
*3 Includes in-process R&D
A-13
imagea.jpg
FY2024 Full Year Detailed Forecast
(BN JPY)FY2023
Actual		FY2024
Forecast
(May 9, 2024)		vs. PYVariances
REPORTEDRevenue4,263.8 4,350.0 86.2 2.0 %Momentum of Growth & Launch products and FX benefit largely offset by LOE impact (mainly VYVANSE)
Cost of sales(1,426.7)(1,500.0)(73.3)(5.1)%
Gross Profit2,837.1 2,850.0 12.9 0.5 %Reflects revenue growth; Gross margin negatively impacted by LOE of VYVANSE
SG&A expenses(1,053.8)(1,080.0)(26.2)(2.5)%Increased DD&T investment and FX headwind, partially offset by efficiency gains
R&D expenses(729.9)(770.0)(40.1)(5.5)%Increased investment in late-stage assets and FX headwind; Low-single-digit increase on CER basis
Amortization of intangible assets associated with products(521.5)(540.0)(18.5)(3.5)%Mainly FX impact
Impairment losses on intangible assets associated with products*1
(130.6)(50.0)80.6 61.7 %FY2023 Actual includes impairment of ALOFISEL, EXKIVITY etc.; FY2024 based on historical trends
Other operating income19.4 15.0 (4.4)(22.6)%
Other operating expenses(206.5)(200.0)6.5 3.2 %FY2023 includes litigation expense and revaluation of contingent consideration; FY2024 includes restructuring expenses of JPY 140B
Operating profit214.1 225.0 10.9 5.1 %
Finance income (expenses), net(167.8)(172.0)(4.2)(2.5)%
Profit before tax52.8 55.0 2.2 4.2 %
Net profit attributable to owners of the Company144.1 58.0 (86.1)(59.7)%FY2023 inlcudes impact from Irish Revenue settlement; FY2024 positive tax mainly due to earnings mix
Basic EPS (yen)92 37 (55)(60.1)%
Core Revenue*2
4,263.8 4,350.0 86.2 2.0 %Momentum of Growth & Launch products and FX benefit largely offset by LOE impact (mainly VYVANSE)
Core Operating Profit*2
1,054.9 1,000.0 (54.9)(5.2)%Product mix impact and R&D and DD&T investment, partially offset by efficiency gains and FX benefit
Core EPS (yen)*2
484 431 (53)(10.9)%Normalization of core tax rate following lower tax rate in FY2023
Adjusted Free Cash Flow*2
283.4 350.0 to 450.0FY2024 reflects VYVANSE decline, cash impact of restructuring, and CAPEX budget for targeted licensing deals
CAPEX (cash flow base)(480.7)(380.0) to (420.0)
Depreciation and amortization (excl. intangible assets associated with products)(206.5)(205.0)1.5 0.7 %
Cash tax rate on Adjusted EBITDA (excl. divestitures)*2
~15%Mid teen %
USD/JPY144 150 6 4.1 %
EUR/JPY156 160 4 2.4 %
*1 Includes in-process R&D.
*2 Please refer to Definition and Explanation of Non-IFRS Measures and U.S. Dollar Convenience Translations, for the definition of Non-IFRS Measures and FY2024 Full Year Reconciliation from Reported
Operating Profit to Core Operating Profit Forecast.
A-14
imagea.jpg
FY2024 Full Year Reconciliation from Reported
Operating Profit to Core Operating Profit Forecast

(Billion JPY)REPORTEDREPORTED TO CORE ADJUSTMENTSCORE
Amortization of
intangible
assets		Impairment of
intangible
assets
Other operating income (expenses) and other adjustments
Revenue4,350.0 4,350.0 
Cost of sales(1,500.0)(3,350.0)
Gross Profit2,850.0 
SG&A expenses(1,080.0)
R&D expenses(770.0)
Amortization of intangible assets associated with products(540.0)540.0 — 
Impairment losses on intangible assets associated with products*1
(50.0)50.0 — 
Other operating income15.0 (15.0)— 
Other operating expenses(200.0)200.0 — 
Operating profit225.0 540.0 50.0 185.0 1,000.0 
*1 Includes in-process R&D
A-15
imagea.jpg
FY2024 Full Year FX Rates Assumptions and Currency Sensitivity vs. Forecast

Average Exchange Rates vs. JPYImpact of depreciation of yen from April 2024 to March 2025 (100 million JPY)
FY2023
Actual
(Apr-Jun)		FY2024
Actual
(Apr-Jun)		FY2024
Assumption
(Apr-Mar)		Revenue
(IFRS)		Operating
Profit
(IFRS)		Net Profit
(IFRS)		Core
Operating
Profit
(non-IFRS)
USD1361551501% depreciation225.615.05.067.2
1 yen depreciation150.410.03.344.8
EUR1481671601% depreciation63.8(49.4)(41.4)(37.5)
1 yen depreciation39.9(30.9)(25.9)(23.5)
RUB1.71.71.61% depreciation4.52.62.13.1
CNY19.621.420.919.912.29.812.2
BRL27.130.430.412.68.76.98.8



A-16

Important Notice
For the purposes of this notice, “report” means this document, any oral presentation, any question and answer session and any written or oral material discussed or distributed by Takeda Pharmaceutical Company Limited (“Takeda”) regarding this report. This report (including any oral briefing and any question-and-answer in connection with it) is not intended to, and does not constitute, represent or form part of any offer, invitation or solicitation of any offer to purchase, otherwise acquire, subscribe for, exchange, sell or otherwise dispose of, any securities or the solicitation of any vote or approval in any jurisdiction. No shares or other securities are being offered to the public by means of this report. No offering of securities shall be made in the United States except pursuant to registration under the U.S. Securities Act of 1933, as amended, or an exemption therefrom. This report is being given (together with any further information which may be provided to the recipient) on the condition that it is for use by the recipient for information purposes only (and not for the evaluation of any investment, acquisition, disposal or any other transaction). Any failure to comply with these restrictions may constitute a violation of applicable securities laws.
The companies in which Takeda directly and indirectly owns investments are separate entities. In this report, “Takeda” is sometimes used for convenience where references are made to Takeda and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies.
The product names appearing in this document are trademarks or registered trademarks owned by Takeda, or their respective owners.
Forward-Looking Statements
This report and any materials distributed in connection with this report may contain forward-looking statements, beliefs or opinions regarding Takeda’s future business, future position and results of operations, including estimates, forecasts, targets and plans for Takeda. Without limitation, forward-looking statements often include words such as “targets”, “plans”, “believes”, “hopes”, “continues”, “expects”, “aims”, “intends”, “ensures”, “will”, “may”, “should”, “would”, “could”, “anticipates”, “estimates”, “projects,” "forecasts," "outlook" or similar expressions or the negative thereof. These forward-looking statements are based on assumptions about many important factors, including the following, which could cause actual results to differ materially from those expressed or implied by the forward-looking statements: the economic circumstances surrounding Takeda’s global business, including general economic conditions in Japan and the United States; competitive pressures and developments; changes to applicable laws and regulations; challenges inherent in new product development, including uncertainty of clinical success and decisions of regulatory authorities and the timing thereof; uncertainty of commercial success for new and existing products; manufacturing difficulties or delays; fluctuations in interest and currency exchange rates; claims or concerns regarding the safety or efficacy of marketed products or product candidates; the impact of health crises, like the novel coronavirus pandemic; the success of our environmental sustainability efforts, in enabling us to reduce our greenhouse gas emissions or meet our other environmental goals; the extent to which our efforts to increase efficiency, productivity or cost-savings, such as the integration of digital technologies, including artificial intelligence, in our business or other initiatives to restructure our operations will lead to the expected benefits; and other factors identified in Takeda’s most recent Annual Report on Form 20-F and Takeda’s other reports filed with the U.S. Securities and Exchange Commission, available on Takeda’s website at: https://www.takeda.com/investors/sec-filings/ or at www.sec.gov. Takeda does not undertake to update any of the forward-looking statements contained in this report or any other forward-looking statements it may make, except as required by law or stock exchange rule. Past performance is not an indicator of future results and the results or statements of Takeda in this report may not be indicative of, and are not an estimate, forecast, guarantee or projection of Takeda’s future results.

A-17

Financial Information and Non-IFRS Measures
Takeda’s financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”).
This report and materials distributed in connection with this report include certain financial measures not presented in accordance with IFRS, such as Core Revenue, Core Operating Profit, Core Net Profit for the year attributable to owners of the Company, Core EPS, Constant Exchange Rate (“CER”) change, Net Debt, Adjusted Net Debt, EBITDA, Adjusted EBITDA, Free Cash Flow and Adjusted Free Cash Flow. Takeda’s management evaluates results and makes operating and investment decisions using both IFRS and non-IFRS measures included in this presentation. These non-IFRS measures exclude certain income, cost and cash flow items which are included in, or are calculated differently from, the most closely comparable measures presented in accordance with IFRS. Takeda’s non-IFRS measures are not prepared in accordance with IFRS and such non-IFRS measures should be considered a supplement to, and not a substitute for, measures prepared in accordance with IFRS (which we sometimes refer to as “reported” measures). Investors are encouraged to review the definitions and reconciliations of non-IFRS measures to their most directly comparable IFRS measures. Beginning in the quarter ended June 30, 2024, Takeda (i) changed its methodology for CER adjustments to results of subsidiaries in hyperinflation countries to present those results in a manner consistent with IAS 29, Financial Reporting in Hyperinflation Economies, (ii) re-named Free Cash Flow as previously calculated as “Adjusted Free Cash Flow” (with “Free Cash Flow” to be reported as Operating Cash Flow less Property, Plant and Equipment), and (iii) re-named Net Debt as previously calculated as “Adjusted Net Debt” (with “Net Debt” to be reported as the book value of bonds and loans less cash and cash equivalents).
The usefulness of Core Financial Measures to investors has significant limitations including, but not limited to, (i) they are not necessarily identical to similarly titled measures used by other companies, including those in the pharmaceutical industry, (ii) they exclude financial information and events, such as the effects of non-cash expenses such as dispositions or amortization of intangible assets, that some may consider important in evaluating Takeda’s performance, value or prospects for the future, (iii) they exclude items or types of items that may continue to occur from period to period in the future (however, it is Takeda’s policy not to adjust out normal, recurring cash operating expenses necessary to operate our business) and (iv) they may not include all items which investors may consider important to an understanding of our results of operations, or exclude all items which investors may not consider to be so.
Medical Information
This report contains information about products that may not be available in all countries, or may be available under different trademarks, for different indications, in different dosages, or in different strengths. Nothing contained herein should be considered a solicitation, promotion or advertisement for any prescription drugs including the ones under development.
A-18
Takeda Pharmaceutical (NYSE:TAK)
Gráfico Histórico do Ativo
De Jan 2025 até Fev 2025 Click aqui para mais gráficos Takeda Pharmaceutical.
Takeda Pharmaceutical (NYSE:TAK)
Gráfico Histórico do Ativo
De Fev 2024 até Fev 2025 Click aqui para mais gráficos Takeda Pharmaceutical.