Document


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
	FY2025 H1 Reported Results with CER % Change	A-4
	FY2025 Q2 (Jul-Sep) Reported Results with CER % Change	A-5
	FY2025 H1 Core Results with CER % Change	A-6
	FY2025 Q2 (Jul-Sep) Core Results with CER % Change	A-7
	FY2025 H1 Reconciliation from Reported to Core	A-8
	FY2025 Q2 (Jul-Sep) Reconciliation from Reported to Core	A-9
	FY2024 H1 Reconciliation from Reported to Core	A-10
	FY2024 Q2 (Jul-Sep) Reconciliation from Reported to Core	A-11
	FY2025 H1 Adjusted Free Cash Flow	A-12
	FY2025 H1 Adjusted Net Debt to Adjusted EBITDA	A-13
	FY2024 Adjusted Net Debt to Adjusted EBITDA	A-14
	FY2025 H1 Net Profit to Adjusted EBITDA Bridge	A-15
	FY2025 H1 Net Profit to Adjusted EBITDA LTM Bridge	A-16
	FY2025 H1 CAPEX, Depreciation and Amortization and Impairment Losses	A-17

	FY2025 Full Year Detailed Forecast	A-18
	FY2025 Full Year Reconciliation from Reported Operating Profit to Core Operating Profit Forecast	A-19
	FY2025 Full Year FX Rates Assumptions and Currency Sensitivity vs. Forecast	A-20
Important Notice
	Important Notice, Forward-Looking Statements, Financial Information and Non-IFRS Measures, and Medical Information	A-21

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 (including 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 revenue items unrelated to the underlying trends and business performance of Takeda’s core operations (primarily revenue or related adjustments associated with divestments and liquidations). Core Operating Profit represents operating profit adjusted to exclude other operating expenses and income, amortization and impairment losses on intangible assets associated with products (including in-process R&D) and non-cash items or items unrelated to the underlying trends and business performance of Takeda’s core operations. Core Net Profit for the Year attributable to owners of the Company represents net profit for the year attributable to owners of the Company, adjusted to eliminate 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. Core EPS is calculated by dividing Core Net Profit for the Year attributable to owners of the Company 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).

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, provided, however, that the results of operations of subsidiaries in countries experiencing hyperinflation, and for which IAS 29, Financial Reporting in Hyperinflationary Economies, is applied, are not adjusted for CER Change, and instead are calculated in accordance with IAS 29.

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 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.

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 (excluding debt investments classified as Level 1 in the fair value hierarchy), shares in associates 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, sales and redemption of investments (excluding debt investments classified as Level 1 in the fair value hierarchy), sales of shares in associates and sales of businesses, net of cash and cash equivalents 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.

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, as well as impairment losses), finance income and expenses (excluding net interest expense), our share of profit or loss of investments accounted for using the equity method, other non-cash items such as non-cash equity-based compensation expense, and other items that management believes are unrelated to our core operations, including EBITDA from divested products, 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 may not exclude all items which investors may not consider important for such understanding. 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 year.

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.

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 = 147.97 JPY, the Noon Buying Rate certified by the Federal Reserve Bank of New York on September 30, 2025. 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.


(Billion JPY, except EPS)	FY2024 H1		FY2025 H1		AER			CER		(Million USD, except EPS) FY2025 H1 Convenience USD Translation
					JPY Change	% Change		% Change
Revenue	2,384.0		2,219.5		(164.5)	(6.9)	%	(3.9)	%		15,000
Cost of sales	(781.3)		(764.7)		16.5	2.1	%	(0.9)	%		(5,168)
Gross profit	1,602.8		1,454.7		(148.0)	(9.2)	%	(6.2)	%		9,831
Margin	67.2	%	65.5	%		(1.7)	pp	(1.6)	pp		65.5	%
SG&A expenses	(538.3)		(509.4)		28.9	5.4	%	2.0	%		(3,443)
R&D expenses	(344.0)		(305.4)		38.7	11.2	%	7.5	%		(2,064)
Amortization of intangible assets associated with products	(277.5)		(260.8)		16.7	6.0	%	2.1	%		(1,762)
Impairment losses on intangible assets associated with products*	(27.8)		(76.0)		(48.3)	(173.9)	%	(169.9)	%		(514)
Other operating income	13.9		23.5		9.6	68.8	%	68.6	%		159
Other operating expenses	(78.5)		(73.1)		5.4	6.9	%	4.9	%		(494)
Operating profit	350.6		253.6		(97.0)	(27.7)	%	(26.0)	%		1,714
Margin	14.7	%	11.4	%		(3.3)	pp	(3.4)	pp		11.4	%
Finance income	34.8		118.2		83.4	239.6	%	240.5	%		799
Finance expenses	(128.1)		(190.3)		(62.2)	(48.5)	%	(49.5)	%		(1,286)
Share of profit (loss) of investments accounted for using the equity method	(1.2)		(2.6)		(1.4)	(109.7)	%	(85.3)	%		(18)
Profit before tax	256.0		178.8		(77.2)	(30.1)	%	(28.1)	%		1,208
Income tax (expenses) benefit	(68.6)		(66.3)		2.3	3.4	%	6.9	%		(448)
Net profit for the period	187.4		112.5		(74.9)	(39.9)	%	(35.8)	%		761
Non-controlling interests	(0.1)		(0.1)		0.0	3.5	%	(3.9)	%		(1)
Net profit attributable to owners of the Company	187.3		112.4		(74.9)	(40.0)	%	(35.9)	%		760
Basic EPS (JPY or USD)	118.85		71.57		(47.28)	(39.8)	%	(35.7)	%		0.48


* Includes in-process R&D
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 is presented as positive when favorable to profits, and negative when unfavorable to profits.


(Billion JPY, except EPS)	FY2024 Q2 (Jul-Sep)		FY2025 Q2 (Jul-Sep)		AER			CER		(Million USD, except EPS) FY2025 Q2 (Jul-Sep) Convenience USD Translation
					JPY Change	% Change		% Change
Revenue	1,176.0		1,112.8		(63.2)	(5.4)	%	(4.0)	%		7,520
Cost of sales	(394.3)		(380.1)		14.2	3.6	%	2.5	%		(2,569)
Gross profit	781.7		732.7		(49.0)	(6.3)	%	(4.8)	%		4,952
Margin	66.5	%	65.8	%		(0.6)	pp	(0.5)	pp		65.8	%
SG&A expenses	(268.3)		(253.6)		14.7	5.5	%	3.9	%		(1,714)
R&D expenses	(175.6)		(161.5)		14.1	8.0	%	5.3	%		(1,091)
Amortization of intangible assets associated with products	(138.9)		(131.4)		7.5	5.4	%	3.1	%		(888)
Impairment losses on intangible assets associated with products*	(3.5)		(73.7)		(70.2)	(1,978.7)	%	(1,941.1)	%		(498)
Other operating income	3.1		1.5		(1.6)	(51.4)	%	(50.5)	%		10
Other operating expenses	(14.3)		(45.0)		(30.8)	(215.3)	%	(214.3)	%		(304)
Operating profit	184.2		69.0		(115.3)	(62.6)	%	(62.0)	%		466
Margin	15.7	%	6.2	%		(9.5)	pp	(9.5)	pp		6.2	%
Finance income	6.5		44.4		37.9	579.4	%	579.4	%		300
Finance expenses	(70.9)		(83.1)		(12.3)	(17.3)	%	(18.6)	%		(562)
Share of profit (loss) of investments accounted for using the equity method	(0.5)		(2.1)		(1.5)	(288.2)	%	(291.1)	%		(14)
Profit before tax	119.4		28.2		(91.2)	(76.4)	%	(76.4)	%		190
Income tax (expenses) benefit	(27.3)		(39.9)		(12.6)	(46.4)	%	(32.7)	%		(270)
Net profit for the period	92.1		(11.7)		(103.8)	―		―			(79)
Non-controlling interests	(0.1)		(0.1)		(0.0)	(18.7)	%	(27.1)	%		(0)
Net profit attributable to owners of the Company	92.0		(11.8)		(103.8)	―		―			(80)
Basic EPS (JPY or USD)	58.21		(7.49)		(65.71)	―		―			(0.05)

* Includes in-process R&D

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 is presented as positive when favorable to profits, and negative when unfavorable to profits.


(Billion JPY, except EPS)	FY2024 H1		FY2025 H1		AER			CER		(Million USD, except EPS) FY2025 H1 Convenience USD Translation
					JPY Change	% Change		% Change
Revenue	2,384.0		2,219.5		(164.5)	(6.9)	%	(3.9)	%		15,000
Cost of sales	(781.5)		(765.2)		16.3	2.1	%	(0.9)	%		(5,171)
Gross profit	1,602.6		1,454.3		(148.2)	(9.2)	%	(6.2)	%		9,829
Margin	67.2	%	65.5	%		(1.7)	pp	(1.6)	pp		65.5	%
SG&A expenses	(538.5)		(509.7)		28.9	5.4	%	2.0	%		(3,445)
R&D expenses	(344.1)		(305.5)		38.7	11.2	%	7.5	%		(2,064)
Operating profit	719.9		639.2		(80.7)	(11.2)	%	(8.8)	%		4,320
Margin	30.2	%	28.8	%		(1.4)	pp	(1.5)	pp		28.8	%
Finance income	28.8		117.7		88.9	309.3	%	310.3	%		795
Finance expenses	(102.0)		(184.8)		(82.7)	(81.1)	%	(82.3)	%		(1,249)
Share of profit (loss) of investments accounted for using the equity method	1.6		(0.6)		(2.2)	―		―			(4)
Profit before tax	648.3		571.5		(76.8)	(11.8)	%	(9.3)	%		3,862
Income tax (expenses) benefit	(159.1)		(132.8)		26.3	16.5	%	3.6	%		(897)
Net profit for the period	489.2		438.7		(50.5)	(10.3)	%	(11.1)	%		2,965
Non-controlling interests	(0.1)		(0.1)		0.0	3.5	%	(3.9)	%		(1)
Net profit attributable to owners of the Company	489.1		438.6		(50.5)	(10.3)	%	(11.1)	%		2,964
Basic EPS (JPY or USD)	310		279		(31)	(10.0)	%	(10.8)	%		1.89



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 is presented as positive when favorable to profits, and negative when unfavorable to profits.


(Billion JPY, except EPS)	FY2024 Q2 (Jul-Sep)		FY2025 Q2 (Jul-Sep)		AER			CER		(Million USD, except EPS) FY2025 Q2 (Jul-Sep) Convenience USD Translation
					JPY Change	% Change		% Change
Revenue	1,176.0		1,112.8		(63.2)	(5.4)	%	(4.0)	%		7,520
Cost of sales	(394.4)		(380.2)		14.1	3.6	%	2.5	%		(2,570)
Gross profit	781.7		732.6		(49.1)	(6.3)	%	(4.8)	%		4,951
Margin	66.5	%	65.8	%		(0.6)	pp	(0.5)	pp		65.8	%
SG&A expenses	(268.4)		(253.7)		14.7	5.5	%	3.9	%		(1,714)
R&D expenses	(175.6)		(161.5)		14.1	8.0	%	5.3	%		(1,092)
Operating profit	337.7		317.4		(20.3)	(6.0)	%	(5.3)	%		2,145
Margin	28.7	%	28.5	%		(0.2)	pp	(0.4)	pp		28.5	%
Finance income	6.1		44.7		38.5	627.4	%	627.4	%		302
Finance expenses	(49.4)		(80.5)		(31.1)	(63.0)	%	(64.7)	%		(544)
Share of profit (loss) of investments accounted for using the equity method	1.3		(0.5)		(1.7)	―		―			(3)
Profit before tax	295.7		281.1		(14.6)	(4.9)	%	(4.4)	%		1,900
Income tax (expenses) benefit	(83.3)		(79.5)		3.9	4.7	%	(15.6)	%		(537)
Net profit for the period	212.3		201.6		(10.7)	(5.0)	%	(12.2)	%		1,363
Non-controlling interests	(0.1)		(0.1)		(0.0)	(18.7)	%	(27.1)	%		(0)
Net profit attributable to owners of the Company	212.3		201.6		(10.7)	(5.0)	%	(12.2)	%		1,362
Basic EPS (JPY or USD)	134		128		(6)	(4.7)	%	(11.9)	%		0.86

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 is presented as positive when favorable to profits, and negative when unfavorable to profits.


(Billion JPY, except EPS and number of shares)	Reported		Reported to Core adjustments				Core
			Amortization of intangible assets	Impairment of intangible assets	Other operating income/ expenses	Others
Revenue	2,219.5						2,219.5
Cost of sales	(764.7)					(0.4)	(765.2)
Gross profit	1,454.7					(0.4)	1,454.3
SG&A expenses	(509.4)					(0.3)	(509.7)
R&D expenses	(305.4)					(0.1)	(305.5)
Amortization of intangible assets associated with products	(260.8)		260.8				—
Impairment losses on intangible assets associated with products*	(76.0)			76.0			—
Other operating income	23.5				(23.5)		—
Other operating expenses	(73.1)				73.1		—
Operating profit	253.6		260.8	76.0	49.6	(0.7)	639.2
Margin	11.4	%					28.8	%
Finance income and (expenses), net	(72.1)					5.0	(67.1)
Share of profit (loss) of investments accounted for using the equity method	(2.6)					2.0	(0.6)
Profit before tax	178.8		260.8	76.0	49.6	6.3	571.5
Income tax (expenses) benefit	(66.3)		(52.4)	(4.9)	(7.7)	(1.5)	(132.8)
Non-controlling interests	(0.1)						(0.1)
Net profit attributable to owners of the Company	112.4		208.3	71.1	41.9	4.9	438.6
Basic EPS (JPY)	72						279
Number of shares (millions)	1,571						1,571


(Billion JPY, except EPS and number of shares)	Reported		Reported to Core adjustments				Core
			Amortization of intangible assets	Impairment of intangible assets	Other operating income/ expenses	Others
Revenue	1,112.8						1,112.8
Cost of sales	(380.1)					(0.2)	(380.2)
Gross profit	732.7					(0.2)	732.6
SG&A expenses	(253.6)					(0.1)	(253.7)
R&D expenses	(161.5)					(0.0)	(161.5)
Amortization of intangible assets associated with products	(131.4)		131.4				—
Impairment losses on intangible assets associated with products*	(73.7)			73.7			—
Other operating income	1.5				(1.5)		—
Other operating expenses	(45.0)				45.0		—
Operating profit	69.0		131.4	73.7	43.6	(0.3)	317.4
Margin	6.2	%					28.5	%
Finance income and (expenses), net	(38.7)					2.9	(35.8)
Share of profit (loss) of investments accounted for using the equity method	(2.1)					1.6	(0.5)
Profit before tax	28.2		131.4	73.7	43.6	4.2	281.1
Income tax (expenses) benefit	(39.9)		(24.9)	(4.4)	(9.6)	(0.6)	(79.5)
Non-controlling interests	(0.1)						(0.1)
Net profit attributable to owners of the Company	(11.8)		106.5	69.3	33.9	3.6	201.6
Basic EPS (JPY)	(7)						128
Number of shares (millions)	1,575						1,575


(Billion JPY, except EPS and number of shares)	Reported		Reported to Core adjustments					Core
			Amortization of intangible assets	Impairment of intangible assets	Teva JV related adjustment*2	Other operating income/ expenses	Others
Revenue	2,384.0							2,384.0
Cost of sales	(781.3)						(0.2)	(781.5)
Gross profit	1,602.8						(0.2)	1,602.6
SG&A expenses	(538.3)						(0.2)	(538.5)
R&D expenses	(344.0)						(0.1)	(344.1)
Amortization of intangible assets associated with products	(277.5)		277.5					—
Impairment losses on intangible assets associated with products*1	(27.8)			27.8				—
Other operating income	13.9					(13.9)		—
Other operating expenses	(78.5)					78.5		—
Operating profit	350.6		277.5	27.8		64.6	(0.5)	719.9
Margin	14.7	%						30.2	%
Finance income and (expenses), net	(93.4)				18.3		1.7	(73.3)
Share of profit (loss) of investments accounted for using the equity method	(1.2)						2.9	1.6
Profit before tax	256.0		277.5	27.8	18.3	64.6	4.1	648.3
Income tax (expenses) benefit	(68.6)		(58.1)	(8.0)	(5.6)	(14.7)	(4.1)	(159.1)
Non-controlling interests	(0.1)							(0.1)
Net profit attributable to owners of the Company	187.3		219.4	19.8	12.7	49.9	(0.0)	489.1
Basic EPS (JPY)	119							310
Number of shares (millions)	1,576							1,576


(Billion JPY, except EPS and number of shares)	Reported		Reported to Core adjustments					Core
			Amortization of intangible assets	Impairment of intangible assets	Teva JV related adjustment*2	Other operating income/ expenses	Others
Revenue	1,176.0							1,176.0
Cost of sales	(394.3)						(0.1)	(394.4)
Gross profit	781.7						(0.1)	781.7
SG&A expenses	(268.3)						(0.1)	(268.4)
R&D expenses	(175.6)						(0.0)	(175.6)
Amortization of intangible assets associated with products	(138.9)		138.9					—
Impairment losses on intangible assets associated with products*1	(3.5)			3.5				—
Other operating income	3.1					(3.1)		—
Other operating expenses	(14.3)					14.3		—
Operating profit	184.2		138.9	3.5		11.2	(0.2)	337.7
Margin	15.7	%						28.7	%
Finance income and (expenses), net	(64.3)				18.3		2.8	(43.2)
Share of profit (loss) of investments accounted for using the equity method	(0.5)						1.8	1.3
Profit before tax	119.4		138.9	3.5	18.3	11.2	4.3	295.7
Income tax (expenses) benefit	(27.3)		(29.1)	(0.8)	(5.6)	(3.3)	(17.3)	(83.3)
Non-controlling interests	(0.1)							(0.1)
Net profit attributable to owners of the Company	92.0		109.8	2.8	12.7	7.9	(13.0)	212.3
Basic EPS (JPY)	58							134
Number of shares (millions)	1,581							1,581


FY2025 H1 Adjusted Free Cash Flow

(Billion JPY)	FY2024 H1	FY2025 H1	JPY Change	% Change		(Million USD) FY2025 H1 Convenience USD Translation
Net profit	187.4	112.5	(74.9)	(39.9)	%	761
Depreciation, amortization and impairment losses	420.7	453.8	33.0			3,067
Decrease (increase) in trade working capital	(146.1)	(15.0)	131.1			(101)
Income taxes paid	(89.1)	(91.9)	(2.8)			(621)
Tax refunds and interest on tax refunds received	4.3	5.5	1.3			37
Other	74.0	128.7	54.7			870
Net cash from operating activities (Operating Cash Flow)	451.3	593.7	142.4	31.6	%	4,012
Acquisition of PP&E	(106.9)	(88.0)	18.9			(595)
Free Cash Flow*1	344.4	505.6	161.3	46.8	%	3,417
Adjustment for cash temporarily held by Takeda on behalf of third parties*2	8.5	19.8	11.3			134
Proceeds from sales of PP&E	0.0	6.4	6.3			43
Acquisition of intangible assets*3	(91.6)	(39.9)	51.7			(270)
Acquisition of option to license	(31.8)	—	31.8			—
Acquisition of investments*4	(13.5)	(0.2)	13.3			(2)
Proceeds from sales and redemption of investments	23.1	4.0	(19.1)			27
Acquisition of shares in associates	—	(0.6)	(0.6)			(4)
Proceeds from sales of shares in associates	—	0.7	0.7			5

Proceeds from sales of business, net of cash and cash equivalents divested	8.3	29.6	21.3			200
Adjusted Free Cash Flow*1	247.5	525.4	277.9	112.3	%	3,551


FY2025 H1 Adjusted Net Debt to Adjusted EBITDA

ADJUSTED NET DEBT/ADJUSTED EBITDA RATIO		NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(Billion JPY)	FY2025 H1	(Billion JPY)	FY2024 H1	FY2025 H1	JPY Change	% Change
Book value of bonds and loans on consolidated statement of financial position	(4,645.3)	Net cash from operating activities (Operating Cash Flow)	451.3	593.7	142.4	31.6	%
		Acquisition of PP&E	(106.9)	(88.0)
Cash & cash equivalents	681.5	Proceeds from sales of PP&E	0.0	6.4
Net Debt*1	(3,963.8)	Acquisition of intangible assets	(91.6)	(39.9)
Application of equity credit*2	250.0	Acquisition of option to license	(31.8)	—
FX adjustment*3	63.3	Acquisition of investments	(27.7)	(0.2)
Cash temporarily held by Takeda on behalf of third parties*4	(86.0)	Proceeds from sales and redemption of investments	23.1	4.0
Level 1 debt investments*4	79.2	Acquisition of shares in associates	—	(0.6)
Adjusted Net Debt*1	(3,657.3)	Proceeds from sales of shares in associates	—	0.7
		Proceeds from sales of business, net of cash and cash equivalents divested	8.3	29.6
Adjusted EBITDA (LTM)*5	1,353.9	Payments for the settlement of forward exchange contracts designated as net investment hedges	(14.0)	(1.5)

Adjusted Net Debt/Adjusted EBITDA ratio	2.7x	Net increase (decrease) in short-term loans and commercial papers	(317.0)	(341.8)
		Proceeds from long-term loans	50.0	—
Book value of bonds and loans on consolidated statement of financial position	(4,645.3)	Repayment of long-term loans	(50.2)	(10.1)
		Proceeds from issuance of bonds	934.5	526.1
Application of equity credit *2	250.0	Repayment of bonds	(233.8)	(115.3)
FX adjustment*3	63.3	Proceeds from the settlement of cross currency interest rate swaps related to bonds and loans	46.9	—
Adjusted Gross Debt	(4,332.0)
		Acquisition of treasury shares	(1.9)	(51.6)
		Interest paid	(42.3)	(52.3)
		Dividends paid	(147.3)	(154.1)
		Others	(23.8)	(19.6)
		Net increase (decrease) in cash and cash equivalents	425.8	285.4	(140.3)	(33.0)	%


FY2024 Adjusted Net Debt to Adjusted EBITDA

ADJUSTED NET DEBT/ADJUSTED EBITDA RATIO		NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(Billion JPY)	FY2024	(Billion JPY)	FY2023	FY2024	JPY Change	% Change
Book value of bonds and loans on consolidated statement of financial position	(4,515.3)	Net cash from operating activities (Operating Cash Flow)	716.3	1,057.2	340.8	47.6	%
		Acquisition of PP&E	(175.4)	(200.8)
Cash & cash equivalents	385.1	Proceeds from sales of PP&E	8.6	0.1
Net Debt*1	(4,130.2)	Acquisition of intangible assets	(305.3)	(147.0)
Application of equity credit*2	250.0	Acquisition of option to license	—	(31.8)
FX adjustment*3	(68.9)	Acquisition of investments	(6.8)	(97.5)
Cash temporarily held by Takeda on behalf of third parties*4	(105.8)	Proceeds from sales and redemption of investments	8.0	29.4
Level 1 debt investments*4	79.3	Acquisition of shares in associates	—	(1.0)
Adjusted Net Debt*1	(3,975.5)	Proceeds from sales of shares in associates	—	57.7
		Proceeds from sales of business, net of cash and cash equivalents divested	20.0	20.6
Adjusted EBITDA	1,441.0	Payments for the settlement of forward exchange contracts designated as net investment hedges	(33.3)	(13.8)

Adjusted Net Debt/Adjusted EBITDA ratio	2.8x	Net increase (decrease) in short-term loans and commercial papers	277.0	27.5
		Proceeds from long-term loans	100.0	90.0
Book value of bonds and loans on consolidated statement of financial position	(4,515.3)	Repayment of long-term loans	(100.4)	(587.2)
		Proceeds from issuance of bonds	—	934.5
Application of equity credit*2	250.0	Repayment of bonds	(220.5)	(733.8)
FX adjustment*3	(68.9)	Proceeds from the settlement of cross currency interest rate swaps related to bonds and loans	60.1	46.9
Adjusted Gross Debt	(4,334.2)
		Acquisition of treasury shares	(2.3)	(51.9)
		Interest paid	(100.4)	(113.0)
		Dividends paid	(287.2)	(302.5)
		Others	(60.3)	(44.6)
		Net increase (decrease) in cash and cash equivalents	(101.9)	(61.3)	40.6	39.9	%


FY2025 H1 Net Profit to Adjusted EBITDA Bridge

(Billion JPY)	FY2024 H1	FY2025 H1	JPY Change	% Change
Net profit	187.4	112.5	(74.9)	(39.9)	%
Income tax expenses (benefit)	68.6	66.3
Depreciation and amortization	384.7	366.6
Interest expense, net	58.3	63.3
EBITDA	699.0	608.7	(90.3)	(12.9)	%
Impairment losses	36.1	87.1
Other operating expenses (income), net, excluding depreciation and amortization, and impairment losses	54.2	37.1
Finance expenses (income), net, excluding interest expense, net	35.0	8.9
Share of loss (profit) of investments accounted for using the equity method	1.2	2.6
Other costs*	34.2	33.8





Adjusted EBITDA	859.8	778.2	(81.5)	(9.5)	%


FY2025 H1 Net Profit to Adjusted EBITDA LTM Bridge

(Billion JPY)	FY2024 Full Year (Apr - Mar)	FY2024 H1 (Apr - Sep)	FY2025 H1 (Apr - Sep)	FY2025 H1 LTM*1 (Oct - Sep)
Net profit	108.1	187.4	112.5	33.3
Income tax expenses (benefit)	66.9	68.6	66.3	64.6
Depreciation and amortization	761.4	384.7	366.6	743.3
Interest expense, net	117.7	58.3	63.3	122.6
EBITDA	1,054.2	699.0	608.7	963.9
Impairment losses	106.5	36.1	87.1	157.6
Other operating expenses (income), net, excluding depreciation and amortization, and impairment losses	163.2	54.2	37.1	146.1
Finance expenses (income), net, excluding interest expense, net	45.8	35.0	8.9	19.7
Share of loss (profit) of investments accounted for using the equity method	4.0	1.2	2.6	5.4
Other costs*2	67.4	34.2	33.8	67.0




Adjusted EBITDA	1,441.2	859.8	778.2	1,359.6
EBITDA from divested products*3	(0.2)			(5.8)
Adjusted EBITDA (LTM)	1,441.0			1,353.9


(Billion JPY)	FY2024 H1	FY2025 H1	JPY Change	% Change		Revised Forecast (October 30,2025)
Capital expenditures*1	198.5	127.9	(70.6)	(35.6)	%	400.0 - 450.0
Tangible assets	106.9	88.0	(18.9)	(17.7)	%
Intangible assets	91.6	39.9	(51.7)	(56.4)	%

Depreciation and amortization	384.7	366.6	(18.1)	(4.7)	%	717.0
Depreciation of tangible assets*2 (A)	87.6	85.7	(1.9)	(2.1)	%
Amortization of intangible assets (B)	297.1	280.9	(16.2)	(5.4)	%
Of which Amortization on intangible assets associated with products (C)	277.5	260.8	(16.7)	(6.0)	%	497.0
Of which Amortization excluding intangible assets associated with products (D)	19.6	20.1	0.5	2.8	%


Depreciation and amortization (excluding intangible assets associated with products) (A)+(D)	107.2	105.9	(1.3)	(1.2)	%	220.0

Impairment losses	36.1	87.1	51.1	141.6	%
Impairment losses on intangible assets associated with products*3	27.8	76.0	48.3	173.9	%	110.0

Amortization and impairment losses on intangible assets associated with products	305.2	336.8	31.5	10.3	%	607.0
*1 Cash flow base
*2 Includes depreciation of investment properties
*3 Includes in-process R&D


(BN JPY)		Original Forecast (May 8, 2025)	Revised Forecast (October 30, 2025)	JPY Change	% Change	Variances

REPORTED	Revenue	4,530.0	4,500.0	(30.0)	(0.7)%	Decline in sales forecasts for products including ENTYVIO and VYVANSE, partially offset by favorable revisions in FX assumptions
	Cost of sales	(1,540.0)	(1,590.0)	(50.0)	(3.2)%
	Gross Profit	2,990.0	2,910.0	(80.0)	(2.7)%	Decrease in profit driven by the decrease in revenue forecasts, as well as unfavorable product mix impact and transactional FX impact
	SG&A expenses	(1,100.0)	(1,095.0)	5.0	0.5%
	R&D expenses	(750.0)	(685.0)	65.0	8.7%	Additional cost savings, including from pipeline prioritization and the enterprise-wide efficiency program, and FX benefits
	Amortization of intangible assets associated with products	(500.0)	(497.0)	3.0	0.6%	Mainly due to FX benefits
	Impairment losses on intangible assets associated with products*1	(50.0)	(110.0)	(60.0)	(120.0)%	Revised full-year forecast reflecting first-half results, including the impairment related to gamma delta T-cell therapy (JPY 58.2 B) recorded in FY25 Q2
	Other operating income	10.0	27.0	17.0	170.0%	Increase in divestiture gains
	Other operating expenses	(125.0)	(150.0)	(25.0)	(20.0)%	Primarily reflects higher expenses for pre-launch inventories and higher restructuring expenses for the R&D organization (FY25 total restructuring expenses: originally JPY 48.0 B, revised JPY 56.0 B)
	Operating profit	475.0	400.0	(75.0)	(15.8)%
	Finance income (expenses), net	(167.0)	(156.0)	11.0	6.6%
	Profit before tax	307.0	243.0	(64.0)	(20.8)%
	Net profit attributable to owners of the Company	228.0	153.0	(75.0)	(32.9)%	Assumes an effective tax rate of ~37%, mainly driven by non-deductible expenses related to impairments and derecognition of deferred tax assets
	Basic EPS (yen)	145	97	(48)	(32.9)%

	Core Revenue*2	4,530.0	4,500.0	(30.0)	(0.7)%	Decline in sales forecasts for products including ENTYVIO and VYVANSE, partially offset by favorable revisions in FX assumptions
	Core Operating Profit*2	1,140.0	1,130.0	(10.0)	(0.9)%	Decline in sales forecasts for products including ENTYVIO and VYVANSE, offset by lower R&D expenses, but further reduced by unfavorable transactional and translational FX impacts
	Core EPS (yen)*2	485	479	(6)	(1.2)%

	Adjusted Free Cash Flow*2	750.0 to 850.0	600.0 to 700.0			Reflects expected USD 1.2 B upfront payment under the strategic global partnership agreement with Innovent Biologics
	CAPEX (cash flow base)	(270.0) to (320.0)	(400.0) to (450.0)
	Depreciation and amortization (excl. intangible assets associated with products)	(216.0)	(220.0)	(4.0)	(1.9)%
	Cash tax rate on Adjusted EBITDA (excl. divestitures)*2	Mid teen%	Mid teen%

	USD/JPY	150	147	(3)	(2.0)%
	EUR/JPY	160	170	10	6.3%


(Billion JPY)	Reported	Reported to Core adjustments			Core
		Amortization of intangible assets	Impairment of intangible assets	Other operating income (expenses)
Revenue	4,500.0					4,500.0
Cost of sales	(1,590.0)					(3,370.0)
Gross Profit	2,910.0
SG&A expenses	(1,095.0)
R&D expenses	(685.0)
Amortization of intangible assets associated with products	(497.0)	497.0				—
Impairment losses on intangible assets associated with products*1	(110.0)		110.0			—
Other operating income	27.0			(27.0)		—
Other operating expenses	(150.0)			150.0		—
Operating profit	400.0	497.0	110.0	123.0		1,130.0


Average Exchange Rates vs. JPY					Impact of depreciation of yen from October 2025 to March 2026 (100 million JPY)
	FY2024 H1 Actual (Apr-Sep)	FY2025 H1 Actual (Apr-Sep)	FY2025 Full Year Assumption (Apr-Mar)	FY2025 H2 Assumption (Oct-Mar)		Revenue (IFRS)	Operating Profit (IFRS)	Net Profit (IFRS)	Core Operating Profit (non-IFRS)
USD	154	146	147	148	1% depreciation	92.2	(1.7)	(3.7)	14.7
					1 yen depreciation	62.3	(1.2)	(2.5)	10.0
EUR	166	166	170	174	1% depreciation	29.8	(13.6)	(9.3)	(8.8)
					1 yen depreciation	17.2	(7.8)	(5.3)	(5.1)
RUB	1.7	1.8	1.8	1.8	1% depreciation	1.6	0.7	0.4	0.9
CNY	21.3	20.3	20.5	20.8		9.5	5.9	3.7	5.9
BRL	28.9	26.2	27.0	27.8		5.5	4.0	2.5	4.0

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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 and with respect to international trade relations; competitive pressures and developments; changes to applicable laws and regulations, including tax, tariff and other trade-related rules; 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-and-security-reports/ 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.

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.

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.


FINANCIAL APPENDIX