Takeda Pharmaceutical Co. Ltd. · TSE:4502

Takeda Pharmaceutical — FY2023 Earnings Presentation

73 slides from Takeda Pharmaceutical's earnings presentation, May 9, 2024

1. Slide 1: Committed to Growth & Shareholder Returns

   TSE: 4502 Committed to Growth & Shareholder Returns FY2023 Earnings Announcement May 9th, 2024

2. Slide 2: Important Notice

   Important Notice For the purposes of this notice, “presentation” 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 presentation. This presentation (i

3. Slide 3: Agenda

   Introduction & Christophe Weber President & CEO Business Highlights Pipeline Update Andy Plump President, R&D AGENDA Financials Milano Furuta Chief Financial Officer Q&A Session

4. Slide 4: Better Health for People, Brighter Future for the World

   Better Health for People, Brighter Future for the World Our vision is to discover and deliver life-transforming treatments, guided by our commitment to: We are guided by our values of Takeda-ism which incorporate Integrity, Fairness, Honesty, and PATIENT PEOPLE PLANET • Responsibly translate • Accel

5. Slide 5: FY2023 Results: Delivered or Exceeded Management Guidance

   FY2023 Results: Delivered or Exceeded Management Guidance Strong Momentum of Growth & Launch Products Important Evolution of our Innovative Pipeline • Revenue growth +1.5% at CER1 with Loss of Exclusivity (LOE) • Three new U.S. product approvals (FRUZAQLA, ADZYNMA, EOHILIA) impact mitigated by Growt

6. Slide 6: Positioned for Return to Revenue & Profit Growth from FY2025

   Positioned for Return to Revenue & Profit Growth from FY2025 with Efficiency Program to Deliver Margin Expansion • FY2024 expected to be final year of significant headwind of VYVANSE Loss of Exclusivity in the U.S. Return to Sustainable Advance Pipeline with Drive Efficiencies to Deliver Attractive

7. Slide 7: Enterprise-wide Program to Drive Efficiencies and Margin Improvement

   Enterprise-wide Program to Drive Efficiencies and Deliver 100-250bps of Core Operating Profit Margin Improvement Each Year From FY2025 Organizational Agility Focus on agility and organizational simplicity, Freeing up resources to: reducing layers, broadening spans, » Advance prioritized pipeline and

8. Slide 8: Incorporating Data, Digital & Technology Across the Value Chain

   Incorporating Data, Digital & Technology Across the Value Chain to Develop and Deliver Medicines to Patients more Efficiently Developing digital skills & capabilities Building In-house Data Migration Digital-ready Strategic Alliances in Digital Capabilities to the Cloud Workforce Digital Health • In

9. Slide 9: Growth & Launch Products Expected to Represent ~50% of Revenue in FY2024

   Growth & Launch Products Expected to Represent ~50% of Total Revenue in FY2024 with Double-digit Growth Outlook at CER Balanced Portfolio Across Six Key Business Areas FY2024 REVENUE FORECASTS AT CER1 PLASMA-DERIVED GI RARE DISEASES THERAPIES (PDT) ONCOLOGY VACCINES NEUROSCIENCE +10% IMMUNOGLOBULIN

10. Slide 10: Expect Return to Double-digit Revenue Growth in FY2024

    Expect Return to Double-digit Revenue Growth in FY2024 Expect Return to Double-digit Revenue Growth in FY2024 Focus on Launch Success of ENTYVIO SC/Pen Achieved double-digit global volume growth in FY2023 (+12%) SC/PEN launched in 50+ markets and driving incremental growth despite U.S. market growth

11. Slide 11: Plasma-Derived Therapies a Steady Long-term Growth Driver

    Plasma-Derived Therapies a Steady Long-term Growth Driver Double-Digit Growth of PDT Driven by Immunoglobulin Positioned for Long-term Growth & Margin Expansion • Total PDT portfolio double-digit sales growth (+12%3 ) in FY2023, Expanding & improving collection and manufacturing network outperformin

12. Slide 12: Agenda

    Introduction & Christophe Weber President & CEO Business Highlights Pipeline Update Andy Plump President, R&D AGENDA Financials Milano Furuta Chief Financial Officer Q&A Session

13. Slide 13: Key FY23 Pipeline Achievements Yields Maturing Late-Stage Pipeline

    Key FY23 Pipeline Achievements Yields Maturing Late-Stage Pipeline NEW MOLECULAR ENTITY (NME) APPROVALS MAJOR GLOBAL NME MILESTONES zasocitinib (TAK-279) TAK-861 U.S. cTTP Psoriasis Narcolepsy Type 1 U.S. mCRC1 U.S. EoE (previously treated) Japan cTTP Phase 3 start + Phase 2b data Phase 3 start FY20

14. Slide 14: Six Late-Stage Programs have the Potential to Generate Significant Value

    Developing Life Transforming Medicines for Rare and More Prevalent Diseases: Six Late-Stage Programs have the Potential to Generate Significant Value FY24 FY25 FY26-27 Psoriasis Psoriasis Head-to-Head vs. deucravacitinib Start Target Filling zasocitinib Psoriatic Arthritis Psoriatic Arthritis (TAK-2

15. Slide 15: Data Driven Decisions in FY23 Ensure Focus on Most Promising Programs

    Data Driven Decisions in FY23 Ensure Focus on the Most Promising Programs Across Three Core Therapeutic Areas New to Phase 1 New to Phase 2 New to Phase 3 TAK-360 zasocitinib zasocitinib danavorexton zasocitinib ADYNOVATE® TAK-279 TAK-279 Postanesthesia rusfertide TAK-279 recombinant Factor VIII NT2

16. Slide 16: Impactful Pipeline Milestones for Early to Mid-Stage Programs

    Impactful Pipeline Milestones for Early to Mid-Stage Programs Address Unmet Patient Needs and Advance Science FY24 FY25 Celiac Disease TAK-227 Phase 2b GASTROINTESTINAL AND INFLAMMATION Lupus Nephritis TAK-007 Proof-of-Mechanism in (CAR-NK Platform) Autoimmune Disease Inadequate Response MDD TAK-653

17. Slide 17: Upcoming Pipeline Milestones and Key Data Presentations

    Upcoming Pipeline Milestones and Key Data Presentations H1 FY24 H2 FY24 ENTYVIO SC – Crohn’s Disease HYQVIA – PID, SID Approval (US) Approval (JP) soticlestat – DS, LGS zasocitinib (TAK-279) – Psoriasis Phase 3 Readout1 Phase 3 Complete Enrollment TAK-861 – NT1 zasocitinib (TAK-279) – Psoriatic Arth

18. Slide 18: Mezagitamab (TAK-079): Anti-CD38 Antibody Entering Phase 3

    Mezagitamab (TAK-079): Anti-CD38 Antibody with Autoimmune Disease Modifying Potential Entering Phase 3 Mezagitamab is a fully human anti-CD38 antibody administered in a low volume SC formulation CD38 binding properties lead to Cell depletion reduces MOA clinically validated in two sustained and sele

19. Slide 19: Agenda

    Introduction & Christophe Weber President & CEO Business Highlights Pipeline Update Andy Plump President, R&D AGENDA Financials Milano Furuta Chief Financial Officer Q&A Session

20. Slide 20: FY2023 Revenue +1.5% at CER Despite Significant LOE Impact

    FY2023 Revenue +1.5% at CER Despite Significant LOE Impact; Reported Profits Impacted by Impairments of ALOFISEL & EXKIVITY FY2023 (APR-MAR) FINANCIAL RESULTS (SUMMARY) (BN YEN, except EPS) REPORTED CORE1 ACTUAL % ACTUAL % FY2023 FY2022 CHANGE FY2023 FY2022 CER2 % CHANGE CHANGE REVENUE 4,263.8 4,027

21. Slide 21: FY2023 Revenue Growth +1.5% at CER Despite Significant LOE Impact

    FY2023 Revenue Growth +1.5% at CER Despite Significant LOE Impact FY2023 REVENUE VS PRIOR YEAR (BN JPY) +5.9% +1.5% at CER 4,263.8 176.9 -193.8 4,027.5 Includes VYVANSE, AZILVA, VELCADE and DEXILANT FY2022 Growth & LOE impacted Coronavirus Vaccines Other Products FX FY2023 Revenue Launch Products pr

22. Slide 22: FY2023 Core Operating Profit Impacted by LOE and Investment

    FY2023 Core Operating Profit Impacted by LOE of Higher Margin Products & Investment in R&D and Data, Digital & Technology FY2023 CORE OPERATING PROFIT VS PRIOR YEAR (BN JPY) -11.2% -13.3% at CER 1,188.4 1,054.9 24.4 Gross Profit Impact FY2022 Growth & Launch LOE impacted products Investment in R&D O

23. Slide 23: FY2023 Reported Operating Profit Decline Reflects Impairments

    FY2023 Reported Operating Profit Decline Reflects Impairments of ALOFISEL & EXKIVITY as well as Higher Other Operating Expenses FY2023 REPORTED OPERATING PROFIT VS PRIOR YEAR (BN JPY) -56.4% 490.5 Reflects JPY 130.6B impairment of intangible assets, mainly related to ALOFISEL and EXKIVITY booked in

24. Slide 24: FY2023 Free Cash Flow Exceptionally Low

    FY2023 Free Cash Flow Exceptionally Low Because of VYVANSE LOE Impact, Litigation-related Payment, and CAPEX for Business Development FY2023 CASH FLOW (BN JPY) 32. liquidity of JPY 1.0T (USD 6.9B)2 Total Free Cash Flow1 283.4 including JPY 700B from undrawn committed line of credit 29.8 and excludin

25. Slide 25: FY2024 Outlook for Continued Decline of VYVANSE in the U.S.

    FY2024 Outlook for Continued Decline of VYVANSE in the U.S.; Investing for Growth While Driving Efficiency to Deliver JPY 1 Trn Core Op Profit (BN YEN, except EPS) REPORTED CORE CORE CHANGE AT CER FY2024 FORECAST VS. PRIOR YEAR FY2024 FORECAST VS. PRIOR YEAR FY2024 MANAGEMENT GUIDANCE REVENUE 4,350.

26. Slide 26: FY2024 Revenue Flat to Slightly Declining at CER

    FY2024 Revenue Flat to Slightly Declining at CER, with Growth & Launch Products Momentum More than Offset by Continued Impact of LOE Including VYVANSE FY2024 REVENUE FORECAST (BN JPY) +2.0% Flat to slightly declining at CER 4,350.0 4,263.8 Includes VYVANSE, AZILVA and ADDERALL XR FY2023 Growth & LOE

27. Slide 27: Core Operating Profit Growth Declining due to VYVANSE Erosion

    Core Operating Profit Growth Declining due to VYVANSE Erosion & Modest Increase in R&D and DD&T Investment to Drive Long-term Competitiveness FY2024 CORE OPERATING PROFIT FORECAST (BN JPY) -5.2% Approx 10% decline at CER 1,054.9 1,000.0 Gross Profit Impact FY2023 Growth & Launch LOE Impacted R&D and

28. Slide 28: Enterprise-wide Program to Drive Efficiencies and Margin Improvement

    Enterprise-wide Program to Drive Efficiencies and Deliver 100-250bps of Core Operating Profit Margin Improvement Each Year From FY2025 Organizational Agility MID-TERM OUTLOOK FROM FY2025 Focus on agility and organizational simplicity, » Return to sustainable revenue growth driven by reducing layers,

29. Slide 29: Committed to Growth & Shareholder Returns

    Committed to Growth & Shareholder Returns Guided by our vision to discover and deliver life-transforming treatments, and with a focus on maintaining solid investment grade credit ratings, we will allocate capital to deliver sustainable value to patients and attractive returns to our shareholders. •

30. Slide 30: Positioned for Return to Revenue & Profit Growth from FY2025

    Positioned for Return to Revenue & Profit Growth from FY2025 with Efficiency Program to Deliver Margin Expansion • FY2024 expected to be final year of significant headwind of VYVANSE Loss of Exclusivity in the U.S. Return to Sustainable Advance Pipeline with Drive Efficiencies to Deliver Attractive

31. Slide 31: Q&A Session

    Q&A SESSION C H RI S T O PH E WE BE R A N D Y P L U MP MIL A N O FU RU T A RA MO N A S E Q U E I RA Representative Director; Director; President, Chief Financial Officer President, President & CEO Research & Development Global Portfolio Division JULIE KIM GIL E S PL A T FO RD T E RE S A BI T E T T I

32. Slide 32: Appendix

    APPENDIX

33. Slide 33: Planned Hybrid Refinance in FY2024; No More Debt Maturing in FY2024

    Planned Hybrid Refinance in FY2024; No More Outstanding Debt Maturing in FY2024 MATURITY LADDER AS OF 31 MARCH 2024 (AS ADJUSTED) 1 100% of outstanding debt at fixed rates 1.6% weighted average interest Average debt maturity ~8 years 1,000 TO BE CALLED FOR EARLY REDEMPTION AND REFINANCE 800 600 REFI

34. Slide 34: Net Debt/Adjusted EBITDA Impacted by Lower EBITDA due to VYVANSE LOE

    Net Debt/Adjusted EBITDA Impacted by Lower EBITDA due to VYVANSE LOE FY2023 CHANGE IN NET DEBT Excludes pass-through cash (BN JPY) balance of JPY 107.8B 4,091.3 Free Cash Flow1 283.4 282.1 3,716.1 89.2 287.2 18.0 716.3 305.3 175.4 29.8 2023 Operating Divestments Tangible Intangible Pass-through Full

35. Slide 35: Growth & Launch Products +12.8% at CER; 43% of Total Revenue

    Growth & Launch Products +12.8% at CER; Represent 43% of Total Revenue FY2023 REVENUE PLASMA-DERIVED THERAPIES (PDT) GI RARE DISEASES IMMUNOLOGY ONCOLOGY NEUROSCIENCE OTHER % of Sales: 29% % of Sales: 18% % of Sales: 19% % of Sales: 11% % of Sales: 15% % of Sales: 9% Growth: +5% Growth: +4% Growth:

36. Slide 36: ENTYVIO Growth Continues to Drive Expansion of GI Franchise

    G A ST R O ENT ER O L O G Y ( G I) ENTYVIO Growth Continues to Drive Expansion of GI Franchise Despite DEXILANT Loss of Exclusivity Headwind GI PORTFOLIO FY2023 Revenue JPY 800.9B (+6.6% growth) FY 2023 R E V E N UE • ENTYVIO growth continues to outperform the overall IBD market, despite increasing

37. Slide 37: Biosimilar Launch Prior to 2032 Would Need to Address Patents

    Any Biosimilar That Seeks to Launch Prior to 2032 Would Need to Address Potential Infringement and/or the Validity of All Relevant Patents • Takeda has granted patents that cover various aspects of ENTYVIO, including formulation, dosing regimens and process for manufacturing. These patents are expec

38. Slide 38: Continuing Evidence Generation and Indication Expansion

    Continuing Evidence Generation and Indication Expansion PUBLISHED/ PHASE 3 PHASE 3b / 4 FILED APPROVED PRESENTED ENTYVIO® IV ENTYVIO® IV (VERDICT) ENTYVIO® IV (VARSITY) ENTYVIO® IV Pediatric (Global) (US, CA)3 H2H vs. adalimumab1 (Global) Ulcerative colitis ENTYVIO® IV (EXIGEM) ENTYVIO® SC (US)3 (US

39. Slide 39: TAKHZYRO Continues Strong Growth; LIVTENCITY Market Penetration

    R AR E D ISEASES TAKHZYRO Continues its Strong Growth Now Treating >5,300 Patients LIVTENCITY Strong Market Penetration in U.S. & Rapid Geographical Expansion RARE DISEASES PORTFOLIO FY2023 Revenue JPY 178.7B (+11.6% growth) FY 2023 R E V E N UE • TAKHZYRO continues to be the #1 prescribed modern lo

40. Slide 40: PDT Portfolio Continues to Deliver Outstanding Growth

    P L ASM A - D ER IVED T H ER AP IES PDT Portfolio Continues to Deliver Outstanding Growth PDT IMMUNOLOGY PORTFOLIO Immunoglobulin Albumin FY 2023 R E V E N UE FY23 Revenue JPY 644.6B (+16.8% growth) FY23 Revenue JPY 134.0B (+5.9% growth) (BN JPY) • Strong demand globally, especially in the U.S., cou

41. Slide 41: Growth Across Key Brands in Oncology Marketed Portfolio

    ONC OL OG Y Growth Across Key Brands in Oncology Marketed Portfolio ONCOLOGY PORTFOLIO FY2023 Revenue JPY 10.1B (Newly Launched) FY 2023 R E V E N UE • Strong uptake following U.S. FDA approval in November 2023 for metastatic colorectal cancer (mCRC) patients (BN JPY) previously treated with certain

42. Slide 42: VYVANSE U.S. Loss of Exclusivity Impact from August 2023

    NEU R OSC IENC E VYVANSE U.S. Loss of Exclusivity Impact from August 2023 N EURO SCIENCE P O RTFOL IO FY2023 Revenue JPY 423.2B (-14.1% change) FY 2023 R E V E N UE • Strong performance in April-August ahead of Loss of Exclusivity driven by expanding ADHD adult (BN JPY) population and by lower U.S.

43. Slide 43: FY2023: Many Successful Approvals for NMEs and Indication Expansions

    FY2023: Many Successful Approvals for NMEs and Indication Expansions UC U.S. approval ENTYVIO SC Crohn’s disease Japan approval U.S. approval1 QDENGA Dengue vaccine Endemic countries2 ADZYNMA cTTP U.S. approval FRUZAQLA mCRC U.S. approval KEY POTENTIAL REGULATORY EOHILIA Eosinophilic esophagitis U.S

44. Slide 44: Potential NME Approvals and Indication Expansions in FY24

    Potential NME Approvals and Indication Expansions in FY24 ENTYVIO SC Crohn’s disease U.S. approval QDENGA Dengue vaccine Additional endemic countries ADZYNMA cTTP EU approval KEY POTENTIAL EU approval FRUZAQLA mCRC REGULATORY JP approval APPROVALS LIVTENCITY Post-transplant CMV infection/disease JP

45. Slide 45: Advancing Zasocitinib (TAK-279) In Parallel Across Multiple Indications

    Advancing Zasocitinib (TAK-279) In Parallel Across Multiple Indications Phase 2 Start Phase 2b Readout Phase 3 Target Filing Ph2b March 2023 Ph3 Start FY23 FY26-27 Psoriasis Head-to-Head Start FY24/25 Psoriatic Arthritis Ph2b September 2023 Ph3 Start FY24 Crohn’s Disease Ph2b March 2024 Zasocitinib

46. Slide 46: Important Near-Term LCM Expansions Represent Growth Opportunities

    Important Near-Term LCM Expansions Represent Significant Growth Opportunities FY24 FY25 GASTROINTESTINAL maralixibat ENTYVIO AND INFLAMMATION Target Filing ALGS, PFIC (Japan) Target Filing Crohn’s/UC Peds (US, EU) ADCETRIS Filed FL HL BrECADD (EU)1 ONCOLOGY CABOMETYX Target Filing CRPC (Japan) HYQVI

47. Slide 47: Important Near-Term LCM Expansions in FY23/24

    Important Near-Term LCM Expansions in FY23/24 Represent Significant Growth Opportunities FY23 FY24 ALOFISEL ENTYVIO Target Filing Perianal Fistulas (US) Approved SC Crohn’s (US)1 GASTROINTESTINAL AND INFLAMMATION maralixibat Target Filing ALGS, PFIC (Japan) ICLUSIG CABOMETYX ONCOLOGY Approved 1L Ph+

48. Slide 48: Major Pipeline Readouts for Key Mid-stage Programs FY23/24

    Major Pipeline Readouts for Key Mid-stage Programs FY23/24 FY23 FY24 Comments POC in ITP and IgAN; mezagitamab Immune Thrombocytopenia Ph3 start in ITP H2 FY24 (TAK-079) and IgA Nephropathy Go/No-go to Ph3 in IgAN H1 FY24 GASTROINTESTINAL AND INFLAMMATION On-track for POC in FY24/early TAK-227 Celia

49. Slide 49: Consolidated Development Pipeline by Phase

    Consolidated Development Pipeline by Phase PHASE 1 (6 NMEs + 1 LCM) PHASE 2 (12 NMEs) mezagitamab zasocitinib zasocitinib TAK-101 TAK-279 TAK-279 ADZYNMA® IgAN Celiac Disease iTTP Psoriatic Arthritis Crohn’s Disease GASTROINTESTINAL AND INFLAMMATION zasocitinib TAK-227 zamaglutenase mezagitamab TAK-

50. Slide 50: Consolidated Development Pipeline by Phase

    Consolidated Development Pipeline by Phase PHASE 3 (5 NMEs + 17 LCMs) FILED (3 NME + 23 LCMs) zasocitinib rusfertide ENTYVIO® ALOFISEL® maralixibat ADZYNMA® ADZYNMA® ENTYVIO® VOCINTI® TAK-279 Polycythemia Vera Pediatric UC Pediatric Perianal ALGS (JP) cTTP (US) cTTP (EU) SC UC (US) H. Pylori (CN) Ps

51. Slide 51: Data Driven Decisions in FY23 Ensure Focus on Most Promising Programs

    Data Driven Decisions in FY23 Ensure Focus on the Most Promising Programs Across Three Core Therapeutic Areas New to Phase 1 New to Phase 2 New to Phase 3 New Regulatory Filings zasocitinib zasocitinib zasocitinib LIVTENCITY® ADCETRIS® TAK-360 TAK-279 TAK-279 rusfertide ADZYNMA® FRUZAQLA Post-transp

52. Slide 52: Glossary of Abbreviations

    Glossary of Abbreviations Regional Abbreviations: DSQ Dysphagia Symptom Questionnaire LGS Lennox-Gastaut syndrome PTCL-NOS peripheral T-cell lymphoma not otherwise specified CN: China; EU: Europe; JP: Japan; UK: United Kingdom; U.S.: EGFR epidermal growth factor receptor mCRC metastatic colorectal c

53. Slide 53: Financial Appendix

    FINANCIAL APPENDIX Definition of Non-IFRS Measures Definition of Core Financial Measures, Constant Exchange Rate Change, Free Cash Flow, and U.S. Dollar Convenience Translations A-1 Definition of EBITDA/Adjusted EBITDA and Net Debt A-2 Reconciliations and Other Financial Information FY2023 Reported

54. Slide 54: Definition of Core Financial Measures, CER, Free Cash Flow

    Definition of Core Financial Measures, Constant Exchange Rate Change, Free Cash Flow, and U.S. Dollar Convenience Translations Core Financial Measures We present our Core Financial Measures, particularly Core Revenue, Core Operating Profit, Core Net Profit for the Year and Core EPS because we believ

55. Slide 55: Definition of EBITDA/Adjusted EBITDA and Net Debt

    Definition of EBITDA/Adjusted EBITDA and Net Debt We present EBITDA and Adjusted EBITDA because we believe 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. We further

56. Slide 56: FY2023 Reported Results with CER % Change

    FY2023 Reported Results with CER % Change vs. PY (Million USD, *1 except EPS) (Billion JPY, except EPS) FY2022 FY2023 AER CER FY2023 Convenience Amount of Change % CHANGE % CHANGE USD Translation Revenue 4,027.5 4,263.8 236.3 5.9% 1.5% 28,196 Cost of sales (1,244.1) (1,426.7) (182.6) (14.7)% (9.8)%

57. Slide 57: FY2023 Q4 Reported Results with CER % Change

    FY2023 Q4 (Jan-Mar) Reported Results with CER % Change vs. PY (Million USD, except EPS) FY2022 Q4 FY2023 Q4 AER CER (Billion JPY, except EPS) FY2023 Q4 (Jan-Mar) (Jan-Mar) (Jan-Mar) Convenience Amount of Change % CHANGE % CHANGE USD Translation Revenue 956.2 1,050.9 94.7 9.9% 6.2% 6,949 Cost of sale

58. Slide 58: FY2023 Core Results with CER % Change

    FY2023 Core Results with CER % Change vs. PY (Million USD, except EPS) (Billion JPY, except EPS) FY2022 FY2023 AER CER*1 FY2023 Convenience Amount of Change % CHANGE % CHANGE USD Translation Revenue 4,027.5 4,263.8 236.3 5.9% 1.5% 28,196 Cost of sales (1,208.4) (1,426.3) (217.9) (18.0)% (13.0)% (9,4

59. Slide 59: FY2023 Q4 Core Results with CER % Change

    FY2023 Q4 (Jan-Mar) Core Results with CER % Change vs. PY (Million USD, except EPS) FY2022 Q4 FY2023 Q4 AER CER (Billion JPY, except EPS) FY2023 Q4 (Jan-Mar) (Jan-Mar) (Jan-Mar) Convenience Amount of Change % CHANGE % CHANGE USD Translation Revenue 956.2 1,050.9 94.7 9.9% 6.2% 6,949 Cost of sales (3

60. Slide 60: FY2023 Reconciliation from Reported to Core

    FY2023 Reconciliation from Reported to Core REPORTED TO CORE ADJUSTMENTS (Billion JPY, except EPS and number of shares) REPORTED Amortization of Impairment of Other CORE intangible intangible operating income/ Others assets assets expenses Revenue 4,263.8 4,263.8 Cost of sales (1,426.7) 0.4 (1,426.3

61. Slide 61: FY2023 Q4 Reconciliation from Reported to Core

    FY2023 Q4 (Jan-Mar) Reconciliation from Reported to Core REPORTED TO CORE ADJUSTMENTS (Billion JPY, except EPS and number of shares) REPORTED Amortization of Impairment of Other CORE intangible intangible operating income/ Others assets assets expenses Revenue 1,050.9 1,050.9 Cost of sales (382.5) 0

62. Slide 62: FY2022 Reconciliation from Reported to Core

    FY2022 Reconciliation from Reported to Core REPORTED TO CORE ADJUSTMENTS (Billion JPY, except EPS and number of shares) REPORTED Amortization of Impairment of Other CORE intangible intangible operating income/ Others assets assets expenses Revenue 4,027.5 4,027.5 Cost of sales (1,244.1) 35.7 (1,208.

63. Slide 63: FY2022 Q4 Reconciliation from Reported to Core

    FY2022 Q4 (Jan-Mar) Reconciliation from Reported to Core REPORTED TO CORE ADJUSTMENTS (Billion JPY, except EPS and number of shares) REPORTED Amortization of Impairment of Other CORE intangible intangible operating income/ Others assets assets expenses Revenue 956.2 956.2 Cost of sales (309.8) 3.0 (

64. Slide 64: FY2023 Free Cash Flow

    FY2023 Free Cash Flow (Million USD) (Billion JPY) FY2022 FY2023 vs. PY FY2023 Convenience USD Translation Net profit 317.0 144.2 (172.8) (54.5)% 954 Depreciation, amortization and impairment loss 728.8 878.0 149.2 5,806 Decrease (increase) in trade working capital (88.8) (110.5) (21.7) (731) Income

65. Slide 65: FY2023 Net Debt to Adjusted EBITDA

    FY2023 Net Debt to Adjusted EBITDA NET DEBT/ADJUSTED EBITDA RATIO NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (Billion JPY) FY2023 (Billion JPY) FY2022 FY2023 vs. PY *1 Cash & cash equivalents and Level 1 debt investments 350.0 Net cash from operating activities 977.2 716.3 (260.8) (26.7)%

66. Slide 66: FY2022 Net Debt to Adjusted EBITDA

    FY2022 Net Debt to Adjusted EBITDA NET DEBT/ADJUSTED EBITDA RATIO NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (Billion JPY) FY2022 (Billion JPY) FY2021 FY2022 vs. PY *1 Cash and cash equivalents 407.7 Net cash from operating activities 1,123.1 977.2 (145.9) (13.0)% Book value debt on consol

67. Slide 67: FY2023 Net Profit to Adjusted EBITDA Bridge

    FY2023 Net Profit to Adjusted EBITDA Bridge (Billion JPY) FY2022 FY2023 vs. PY Net profit 317.0 144.2 (172.8) (54.5)% Income tax (expenses) benefit 58.1 (91.4) Depreciation and amortization 664.4 728.0 Interest expense, net 111.5 108.2 EBITDA 1,151.0 889.0 (261.9) (22.8)% Impairment losses 64.4 150.

68. Slide 68: FY2023 CAPEX, Depreciation and Amortization and Impairment Losses

    FY2023 CAPEX, Depreciation and Amortization and Impairment Losses (Billion JPY) FY2022 FY2023 vs. PY FY2024 Forecast Capital expenditures*1 633.7 480.7 (153.0) (24.1)% 380.0 - 420.0 Tangible assets 140.7 175.4 34.8 24.7 % Intangible assets 493.0 305.3 (187.7) (38.1)% Depreciation and amortization 66

69. Slide 69: FY2023 Results vs. Forecast (Oct. 2023)

    FY2023 Results vs. Forecast (Oct. 2023) FY2023 FY2023 (BN JPY) Forecast vs. Forecast Variances Actual (October 26, 2023) Revenue 3,980.0 4,263.8 283.8 7.1 % FX benefit and business momentum including milder-than-anticipated generic erosion of VYVANSE in the U.S. R&D expenses (680.0) (729.9) (49.9) (

70. Slide 70: FY2024 Detailed Forecast

    FY2024 Detailed Forecast FY2023 FY2024 (BN JPY) Forecast vs. PY Variances Actual (May 9, 2024) Momentum of Growth & Launch products and FX benefit largely offset by LOE impact Revenue 4,263.8 4,350.0 86.2 2.0 % (mainly VYVANSE) Cost of sales (1,426.7) (1,500.0) (73.3) (5.1)% Gross Profit 2,837.1 2,8

71. Slide 71: FY2024 Reconciliation from Reported to Core Operating Profit Forecast

    FY2024 Reconciliation from Reported Operating Profit to Core Operating Profit Forecast REPORTED TO CORE ADJUSTMENTS Other operating (Billion JPY) REPORTED Amortization of Impairment of CORE income (expenses) intangible intangible and other assets assets adjustments Revenue 4,350.0 4,350.0 Cost of sa

72. Slide 72: FY2024 Full Year FX Rates Assumptions and Currency Sensitivity

    FY2024 Full Year FX Rates Assumptions and Currency Sensitivity vs. Forecast Average Exchange Rates vs. JPY Impact of depreciation of yen from April 2024 to March 2025 (100 million JPY) Core FY2022 FY2023 FY2024 Operating Revenue Net Profit Operating Actual Actual Assumption Profit (IFRS) (IFRS) Prof

73. Slide 73: Takeda Investor Relations

    Takeda Investor Relations: takeda.ir.contact@takeda.com © 2024 Takeda Pharmaceutical Company Limited. All rights reserved.

Takeda Pharmaceutical Company — FY2023 Earnings Presentation on 6ix