FY2021 Q3 EARNINGS ANNOUNCEMENT
Better health for people, Brighter future for the world

from the beginning

FY2021 Q3 EARNINGS ANNOUNCEMENT

IMPORTANT NOTICE

• 1. Introduction

CONVICTION IN OUR STRATEGY: ACCELERATING TOPLINE & PIPELINE

TAKEDA EXECUTIVE TEAM

PROGRESS WITH VACCINE PARTNERSHIPS TO COMBAT COVID-19

LAUNCHED IN Q3 WITH POTENTIAL TO REDEFINE SUCCESS IN POST-TRANSPLANT CMVINFECTION/DISEASE

• 2. R&D Engine

UPDATES TO OUR PIPELINE SINCE Q2 ANNOUNCEMENT

VONVENDI: FIRST RECOMBINANT TREATMENT FOR PROPHYLAXIS OF ADULTS WITH TYPE 3 VON WILLEBRAND DISEASE (VWD)

OUR PIPELINE IS STARTING TO DELIVER VALUE

PHASE 3/PIVOTAL PROGRAMS WITH UPCOMING NME APPROVAL AND EXPANSION OPPORTUNITIES

PROOF-OF-CONCEPT READOUTS OVER THE NEXT TWO YEARS COULD UNLOCK SIGNIFICANT ADDITIONAL VALUE

• 3. Financial Strength

ACCELERATION OF TOPLINE GROWTH: Q3 YTD UNDERLYING REVENUE +7.1%1DRIVEN BY 14 GLOBAL BRANDS

STRONG TOPLINE GROWTH IN Q3 YTD, WITH CORE OPERATING PROFIT REFLECTING IMPACT OF DIVESTITURES

UNDERLYING REVENUE MOMENTUM DRIVEN BY 14 GLOBAL BRANDS;REPORTED REVENUE BENEFITTING FROM SALE OF DIABETES PORTFOLIO

UNDERLYING REVENUE GROWTH +7.1% SUPPORTED BY 5 KEY BUSINESS AREASWITH STRONG GROWTH OF GI, PDT, ONCOLOGY & NEUROSCIENCE

14 GLOBAL BRANDS REPRESENT 42% OF FY2021 Q3 YTD CORE REVENUE1WITH UNDERLYING GROWTH +12.0%

GROWTH MOMENTUM OF 14 GLOBAL BRANDS EXPECTED TO CONTINUE

CORE OPERATING PROFIT REFLECTS DIVESTITURE IMPACT

ROBUST FY2021 Q3 YTD CASH FLOW LEADS TO INCREASE IN FULL-YEAR FREE CASH FLOW GUIDANCE TO JPY 700-800B

NET DEBT/ADJUSTED EBITDA IMPROVES TO 3.0x EVEN AFTER FULL-YEAR DIVIDEND PAYMENT

ABUNDANT CASHFLOW ALLOWS CALLING OF $1.5B FY2023 BOND;TOTAL PROPORTION OF FIXED RATE DEBT NOW AT 98%

RAISING FULL-YEAR FY2021 FORECASTS TO REFLECT BUSINESS MOMENTUM, OPEX DISCIPLINE, AND FX FAVORABILITY

ACCELERATION OF TOPLINE GROWTH: Q3 YTD UNDERLYING REVENUE GROWTH +7.1% DRIVEN BY 14 GLOBAL BRANDS

Q&A SESSION

• Q&A 1

• Q&A 2

• Q&A 3

• Q&A 4

• Q&A 5

• Q&A 6

• Q&A 7

APPENDIX

TAKEDA'S DISCLOSURE METRICS

DEFINITION OF CORE AND UNDERLYING GROWTH

DEFINITION OF FREE CASH FLOW

DEFINITION OF EBITDA/ADJUSTED EBITDA AND NET DEBT

GROWTH OF GI FRANCHISE SPEARHEADED BY ENTYVIO

NO LONGER EXPECTING BIOSIMILAR LAUNCH UPON ANTICIPATED DATA EXCLUSIVITY EXPIRY TIMING

RARE DISEASES REVENUE IN LINE WITH PLAN; NOW TREATING 3,000 PATIENTS GLOBALLY WITH TAKHZYRO

PDT PORTFOLIO ON TRACK TO DELIVER FULL-YEAR GROWTH GUIDANCE

STRONG ONCOLOGY PORTFOLIO CONTINUES TO EXPAND INDICATIONS

VYVANSE CONTINUES REBOUND FROM PRIOR YEAR COVID-19 IMPACT

FY2021 Q3 YTD (Apr-Dec) REPORTED RESULTS

FY2021 Q3 (Oct-Dec) REPORTED RESULTS

FY2021 Q3 YTD (Apr-Dec) CORE RESULTS

FY2021 Q3 (Oct-Dec) CORE RESULTS

RECONCILIATION FROM REPORTED REVENUE TO CORE/UNDERLYING REVENUE FY2021 Q3 YTD VERSUS PRIOR YEAR

RECONCILIATION FROM REPORTED REVENUE TO CORE/UNDERLYING REVENUE FY2021 Q3 (Oct-Dec)VERSUS PRIOR YEAR

RECONCILIATION FROM REPORTED TO CORE/UNDERLYINGFY2021 Q3 YTD

RECONCILIATION FROM REPORTED TO CORE/UNDERLYINGFY2021 Q3 (Oct-Dec)

RECONCILIATION FROM REPORTED TO CORE/UNDERLYINGFY2020 Q3 YTD

RECONCILIATION FROM REPORTED TO CORE/UNDERLYINGFY2020 Q3 (Oct-Dec)

FREE CASH FLOW

NET DEBT/ADJUSTED EBITDA

NET PROFIT TO ADJUSTED EBITDA BRIDGE FY2021 Q3 YTD VERSUS PRIOR YEAR

NET PROFIT TO ADJUSTED EBITDA LTM BRIDGE

FY2021 DETAILED REVISED FORECAST

FY2021 CORE OPERATING PROFIT ADJUSTMENT ITEMS & CASH FLOW FORECAST VERSUS ACTUALS

RECONCILIATION FROM REPORTED OPERATING PROFIT TO CORE OPERATING PROFIT-FY2021 REVISED FORECAST

FX RATES AND FY2021 CURRENCY SENSITIVITY

OUR PIPELINE CONTINUES TO ADVANCE

CONTINUED GLOBAL AND REGIONAL BRAND EXPANSION IN FY2021

MAXIMIZING THE VALUE OF OUR GLOBAL AND REGIONAL BRANDS

R&D ENGINE DRIVING WAVE 1 APPROVALS AND EXPANSION OF GLOBAL AND REGIONAL BRANDS

GLOSSARY OF ABBREVIATIONS

@