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Form 6-K TAKEDA PHARMACEUTICAL For: Feb 02

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February 2, 2023 6:06 AM EST


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 February 2023
 
 
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: February 2, 2023
 By:/s/ Norimasa Takeda
  
Norimasa Takeda
Chief Accounting Officer and Corporate Controller



Summary of Financial Statements for the Nine-month Period Ended December 31, 2022 (IFRS, Consolidated)
February 2, 2023
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 securities report submission: February 7, 2023
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 Nine-month Period Ended December 31, 2022 (April 1 to December 31, 2022)
(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)(%)
Nine-month Period Ended December 31, 20223,071,322 13.9 401,943 (13.1)327,175 (8.3)285,903 18.4 
Nine-month Period Ended December 31, 20212,695,717 11.0 462,463 28.9 356,618 51.5 241,541 34.9 
 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)
Nine-month Period Ended December 31, 2022285,883 18.4 750,209 63.4 184.32182.65
Nine-month Period Ended December 31, 2021241,417 34.9 459,044 170.9 154.09153.03
 Core Operating ProfitCore EPS
 (Billion JPY)(%)(JPY)
Nine-month Period Ended December 31, 2022954.7 26.0 456
Nine-month Period Ended December 31, 2021757.9 (2.9)333

(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 December 31, 2022
13,504,705 6,176,498 6,175,978 45.7 3,972.91 
As of March 31, 2022
13,178,018 5,683,523 5,683,019 43.1 3,665.61 




2. Dividends
Annual dividends per share (JPY)
 1st quarter end2nd quarter end3rd quarter endYear-endTotal
For the Fiscal Year Ended March 31, 2022
— 90.00 — 90.00 180.00 
For the Fiscal Year Ending March 31, 2023
— 90.00 — 
For the Fiscal Year Ending March 31, 2023 (Projection)
90.00 180.00 
(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, 2023 (April 1, 2022 to March 31, 2023)
 (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, 2023
3,930,000 10.1 530,000 15.0 426,000 40.8 307,000 33.4 197.83 
(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, 2023
3,930,000 14.9 1,180,000 23.5 525 
(Note) Modifications in forecasts of consolidated operating results from the latest announcement: None

The definition of Core financial measures is stated in the Attachment.

4.
Management Guidance (Constant Exchange Rate basis) for the Fiscal Year Ending March 31, 2023 (April 1, 2022 to March 31, 2023)
Takeda uses growth in its Core financial measures on a Constant Exchange Rate basis (“Core Growth at CER”) to provide its Management Guidance. The full year management guidance for the fiscal year ending March 31, 2023 (FY2022) has not been changed from the management guidance announced at the FY2021 financial results announcement on May 11, 2022.
 
 Core Revenue GrowthCore Operating Profit GrowthCore EPS Growth
 (%)(%)(%)
For the Fiscal Year Ending March 31, 2023
Low-single-digit growthHigh-single-digit growthHigh-single-digit growth

The definition of Constant Exchange Rate change is stated in the Attachment.


▪Additional Information
 
(1) Changes in significant subsidiaries during the period  : No
(changes in specified subsidiaries resulting in the change in consolidation scope)
(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:  
December 31, 2022   1,582,290,825 shares
March 31, 2022   1,582,252,525 shares
2) Number of shares of treasury stock at period end:  
December 31, 2022   27,766,370 shares
March 31, 2022   31,891,746 shares
3) Average number of outstanding shares (for the nine-month period ended December 31):
December 31, 2022   1,550,992,486 shares
December 31, 2021    1,566,730,171 shares
 
▪This summary of quarterly financial statements is not subject to quarterly review by the external auditor
▪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 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 Nine-month Period Ended December 31, 2022 (3) Outlook for the Fiscal Year Ending March 31, 2023" on page 9.
 
 • 
Supplementary materials for the financial statements including the Quarterly Financial Report and Earnings Presentation of the conference call on February 2, 2023, and its audio will be promptly posted on Takeda’s website.
 

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


Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Nine-month
Period Ended December 31, 2022 (Consolidated)
Attachment Index
 

1
Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Nine-month
Period Ended December 31, 2022 (Consolidated)
1. Financial Highlights for the Nine-month Period Ended December 31, 2022
(1) Business Performance
(i) Consolidated Financial Results (April 1 to December 31, 2022)
Billion JPY or percentage
FY2021 Q3YTD
FY2022 Q3YTD
Change versus the same period of the previous fiscal year
Actual % Change
CER % Change*1
Revenue2,695.7 3,071.3 375.6 13.9 %(0.7)%
Cost of sales(798.5)(934.3)(135.8)17.0 %3.4 %
Selling, general and administrative expenses(662.9)(742.5)(79.6)12.0 %(2.2)%
Research and development expenses(382.5)(472.4)(89.9)23.5 %4.9 %
Amortization and impairment losses on intangible assets associated with products(323.6)(409.2)(85.6)26.4 %5.4 %
Other operating income34.3 16.7 (17.6)(51.3)%(54.4)%
Other operating expenses(100.0)(127.6)(27.6)27.6 %8.6 %
Operating profit462.5 401.9 (60.5)(13.1)%(20.3)%
Finance income and (expenses), net(100.6)(71.6)29.0 (28.8)%(31.6)%
Share of loss of investments accounted for using the equity method(5.3)(3.1)2.1 (40.4)%(58.1)%
Profit before tax356.6 327.2 (29.4)(8.3)%(16.5)%
Income tax expenses(115.1)(41.3)73.8 (64.1)%(61.3)%
Net profit for the period241.5 285.9 44.4 18.4 %4.8 %
*1 Please refer to (ii) Core Results (April 1 to December 31, 2022), Definition of Core financial measures and Constant Exchange Rate change, for the definition.
Revenue. Revenue for the nine-month period ended December 31, 2022 was 3,071.3 billion JPY, an increase of 375.6 billion JPY, or 13.9% (CER % change: -0.7%), compared to the same period of the previous fiscal year. The increase is primarily attributable to growth from business momentum and favorable foreign exchange rates, offsetting the decrease of revenue in the current period due to the sale of a portfolio of diabetes products in Japan to Teijin Pharma Limited for 133.0 billion JPY, which was recorded as revenue in the same period of the previous fiscal year.
Revenue of our core therapeutic areas (i.e. Gastroenterology (“GI”), Rare Diseases, Plasma-Derived Therapies (“PDT”) Immunology, Oncology, and Neuroscience) increased by 522.1 billion JPY, or 23.6%, compared to the same period of the previous fiscal year, to 2,735.6 billion JPY. Each of our core therapeutic areas, except Oncology, contributed to positive revenue growth due to growth from business momentum and favorable foreign exchange rates. Generic erosion and intensified competition impacted certain Oncology products in the current period.
Revenue outside of our core therapeutic areas significantly decreased by 146.5 billion JPY, or 30.4%, compared to the same period of the previous fiscal year to 335.7 billion JPY, largely due to the aforementioned non-recurring 133.0 billion JPY selling price of the diabetes portfolio in Japan, which was recorded as revenue in the same period of the previous fiscal year.






2
Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Nine-month
Period Ended December 31, 2022 (Consolidated)
Revenue by Geographic Region
The following shows revenue by geographic region:
Billion JPY or percentage
FY2021 Q3YTDFY2022 Q3YTDChange versus the same period of the previous fiscal year
Revenue:Actual % change
CER % change*1
   Japan*2
530.2 389.8 (140.4)(26.5)%(26.8)%
   United States1,297.0 1,621.8 324.8 25.0 %2.6 %
   Europe and Canada541.0 632.4 91.4 16.9 %7.9 %
   Asia (excluding Japan)139.8 169.0 29.3 20.9 %6.5 %
   Latin America93.5 121.4 27.9 29.8 %10.3 %
   Russia/CIS43.6 66.7 23.1 53.0 %15.6 %
   Other*3
50.6 70.2 19.6 38.7 %43.4 %
   Total2,695.7 3,071.3 375.6 13.9 %(0.7)%
*1 Please refer to (ii) Core Results (April 1 to December 31, 2022), Definition of Core financial measures and Constant Exchange Rate change, for the definition.
*2 The 133.0 billion JPY selling price of the sale of diabetes portfolio in Japan is included in the nine-month period ended December 31, 2021.
*3 Other includes the Middle East, Oceania and Africa.

Revenue by Therapeutic Area
The following shows revenue by therapeutic area:
Billion JPY or percentage
FY2021 Q3YTDFY2022 Q3YTDChange versus the same period of the previous fiscal year
Revenue:Actual % change
CER % change*1
   GI665.7 857.5 191.8 28.8 %11.1 %
   Rare Diseases462.9 553.6 90.7 19.6 %5.0 %
      Rare Hematology211.6 232.6 21.1 10.0 %(3.4)%
      Rare Genetics and Other251.3 321.0 69.6 27.7 %12.2 %
   PDT Immunology363.2 502.4 139.2 38.3 %17.6 %
   Oncology359.1 345.0 (14.1)(3.9)%(12.6)%
   Neuroscience362.6 477.1 114.5 31.6 %10.2 %
   Other*2
482.2 335.7 (146.5)(30.4)%(35.4)%
   Total2,695.7 3,071.3 375.6 13.9 %(0.7)%
*1 Please refer to (ii) Core Results (April 1 to December 31, 2022), Definition of Core financial measures and Constant Exchange Rate change, for the definition.
*2 The 133.0 billion JPY selling price of the sale of diabetes portfolio in Japan is included in the nine-month period ended December 31, 2021.

Year-on-year change in revenue for this nine-month period in each of our main therapeutic areas was primarily attributable to the following products:
•GI. In Gastroenterology, revenue was 857.5 billion JPY, a year-on-year increase of 191.8 billion JPY, or 28.8% (CER % change: 11.1%). Growth was driven by Takeda’s top-selling product ENTYVIO (for ulcerative colitis (“UC”) and Crohn’s disease (“CD”)), with sales of 547.9 billion JPY and a year-on-year increase of 152.5 billion JPY, or 38.6%. Sales of ENTYVIO in the U.S. increased by 122.4 billion JPY, or 46.0%, to 388.3 billion JPY, driven by a continued increase in the first line biologic inflammatory bowel disease (“IBD”) population both in UC and CD and favorable foreign exchange rates. Sales of ENTYVIO in Europe and Canada increased by 20.2 billion JPY, or 19.7%, to 122.4 billion JPY, supported by continued launches of the subcutaneous formulation and favorable foreign exchange rates. In the Growth and Emerging Markets, the increase in sales of ENTYVIO was led by growth in Brazil. Sales of GATTEX/REVESTIVE (for short bowel syndrome) were 78.2 billion JPY, an increase of 21.6 billion JPY, or 38.1%, primarily due to increased market penetration and new country launches, including Japan in August 2021, and favorable foreign exchange rates. Sales of DEXILANT (for acid reflux disease) were 55.1 billion JPY, an increase of 15.0 billion JPY, or 37.3% versus the same period of the previous fiscal year, due to the increased sales of authorized generics in the U.S. and favorable foreign exchange rates. Sales of TAKECAB/VOCINTI (for acid-related diseases) were 84.5 billion JPY, an increase of 6.2 billion JPY, or 7.9%, versus the same period of the previous fiscal year, primarily due to increased sales in China, partially offset by the decrease of sales in Japan, due to a negative impact associated with the market expansion re-pricing applied in April 2022, despite
3
Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Nine-month
Period Ended December 31, 2022 (Consolidated)
an increase in volume. Sales of PENTASA (for UC) were 7.3 billion JPY, a decrease of 8.5 billion JPY, or 53.7%, versus the same period of the previous fiscal year due to generic erosion in the U.S. from May 2022.
•Rare Diseases. In Rare Diseases, revenue was 553.6 billion JPY, a year-on-year increase of 90.7 billion JPY, or 19.6% (CER % change: 5.0%).
Revenue in Rare Hematology increased by 21.1 billion JPY, or 10.0% (CER % change: -3.4%), to 232.6 billion JPY. Sales of ADVATE (for hemophilia A), ADYNOVATE/ADYNOVI (for hemophilia A) and FEIBA (for hemophilia A and B) increased by 2.8 billion JPY or 3.1% to 92.1 billion JPY, 4.0 billion JPY or 8.7% to 49.9 billion JPY, and 3.6 billion JPY or 12.5% to 32.6 billion JPY, respectively, primarily due to favorable foreign exchange rates partially offset by negative impacts from competition in the U.S. Other Rare Hematology products in aggregate increased year-on-year, primarily due to additional indications, newly consolidated products, and favorable foreign exchange rates.
Revenue in Rare Genetics and Other was 321.0 billion JPY, a year-on-year increase of 69.6 billion JPY, or 27.7% (CER % change: 12.2%). Sales of TAKHZYRO (for hereditary angioedema) were 116.9 billion JPY, an increase of 38.5 billion JPY, or 49.0%, versus the same period of the previous fiscal year primarily due to expansion of the prophylactic market, continued geographic expansion and strong patient uptake as well as favorable foreign exchange rates. Sales of REPLAGAL (for Fabry disease) increased by 11.0 billion JPY, or 27.8%, to 50.6 billion JPY, primarily due to the succession to manufacturing and marketing rights in Japan by Takeda upon expiration of the relevant license agreement in February 2022. Sales of other enzyme replacement therapies ELAPRASE (for Hunter syndrome) and VPRIV (for Gaucher disease) increased by 7.3 billion JPY and 4.2 billion JPY, respectively, primarily due to favorable foreign exchange rates. Sales of LIVTENCITY (for post-transplant cytomegalovirus (“CMV”) infection/disease), which was first launched in the U.S. in December 2021, followed by several other countries, were 7.3 billion JPY in the current period.
•PDT Immunology. In Plasma-Derived Therapies (“PDT”) Immunology, revenue increased by 139.2 billion JPY, or 38.3% (CER % change: 17.6%) compared to the same period of the previous fiscal year, to 502.4 billion JPY. Aggregate sales of immunoglobulin products were 390.5 billion JPY, an increase of 112.2 billion JPY, or 40.3%, compared to the same period of the previous fiscal year. Sales of each of our three global immunoglobulin brands marked double digit percentage of revenue growth, due to continued strong demand globally and growing supply, especially in the U.S., where the pandemic pressure is now easing, 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 (primarily used for hypovolemia and hypoalbuminemia) were 85.5 billion JPY, an increase of 24.0 billion JPY, or 39.1%, versus the same period of the previous fiscal year driven by strong albumin demand in the U.S. and in China and favorable exchange rates.
•Oncology. In Oncology, revenue was 345.0 billion JPY, a year-on-year decrease of 14.1 billion JPY, or 3.9% (CER % change: -12.6%), impacted by the rapid generic erosion of VELCADE (for multiple myeloma) sales in the U.S.
Sales of VELCADE decreased by 59.7 billion JPY, or 70.7%, versus the same period of the previous fiscal year to 24.7 billion JPY predominantly due to multiple generic entrants in the U.S. starting in May 2022. Sales of NINLARO (for multiple myeloma) were 75.9 billion JPY, an increase of 5.2 billion JPY, or 7.3%, versus the same period of the previous fiscal year, aided by favorable foreign exchange rates, which were offset partially by intensified competition and decreased demand mainly in the U.S. Sales of ADCETRIS (for malignant lymphomas) were 65.8 billion JPY, an increase of 14.0 billion JPY, or 27.0%, versus the same period of the previous fiscal year, led by strong growth in countries such as Argentina, Italy and Japan. Sales of ICLUSIG (for leukemia) were 35.5 billion JPY, an increase of 8.8 billion JPY, or 33.1%, versus the same period of the previous fiscal year, due to steady growth in the U.S. and also aided by favorable foreign exchange rates. Sales of ALUNBRIG (for non-small cell lung cancer) were 15.8 billion JPY, an increase of 5.6 billion JPY, or 55.7%, benefiting from strong demand in European countries and the Growth and Emerging Markets such as China. Sales of ZEJULA (for ovarian cancer) were 9.8 billion JPY, an increase of 4.1 billion JPY, or 70.9%, primarily led by Japan where it was helped by a newly launched tablet formulation in June 2022, in addition to a capsule formulation. Sales of LEUPLIN/ENANTONE (for endometriosis, uterine fibroids, premenopausal breast cancer, prostatic cancer, etc.), an off-patent product, increased by 3.0 billion JPY, or 3.6%, versus the same period of the previous fiscal year to 85.2 billion JPY mainly due to favorable foreign exchange rates. Sales of EXKIVITY (for non-small cell lung cancer), which was first launched in the U.S. in September 2021, followed by several other countries, were 2.2 billion JPY in the current period.
•Neuroscience. In Neuroscience, revenue was 477.1 billion JPY, a year-on-year increase of 114.5 billion JPY, or 31.6% (CER % change: 10.2%). Sales of VYVANSE/ELVANSE (for attention deficit hyperactivity disorder (“ADHD”)) were 335.4 billion JPY, an increase of 90.5 billion JPY, or 36.9%, versus the same period of the previous fiscal year mainly driven by the growth of the adult market in the U.S., Europe and Canada and favorable foreign exchange rates. Sales of TRINTELLIX (for major depressive disorder (“MDD”)) were 79.7 billion JPY, an increase of 16.7 billion JPY, or 26.4%, versus the same period of the previous fiscal year, due to increasing prescriptions in the U.S. and Japan and favorable
4
Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Nine-month
Period Ended December 31, 2022 (Consolidated)
foreign exchange rates. Sales of INTUNIV (for ADHD) increased by 4.1 billion JPY, or 32.8%, versus the same period of the previous fiscal year, to 16.6 billion JPY driven by an increase of sales in Japan. Sales of ADDERALL XR (for ADHD) also increased, by 3.1 billion JPY or 19.6% versus the same period of the previous fiscal year, to 19.1 billion JPY mainly due to a shortage of generic versions of the instant release formulation marketed by competitors and favorable foreign exchange rates.

Cost of Sales. Cost of Sales increased by 135.8 billion JPY, or 17.0% (CER % change: 3.4%), to 934.3 billion JPY. The increase was primarily due to the depreciation of the yen and a sales increase in our core therapeutic areas as compared to the same period of the previous fiscal year. The Cost of Sales Ratio increased by 0.8 pp compared to the same period of the previous fiscal year to 30.4%. The main reason for the increase in the Cost of Sales Ratio was the effect of the sale of a portfolio of diabetes products in Japan with the selling price of 133.0 billion JPY being recorded in revenue in the same period of the previous fiscal year.

Selling, General and Administrative (SG&A) expenses. SG&A expenses increased by 79.6 billion JPY, or 12.0% (CER % change: -2.2%) compared to the same period of the previous fiscal year, to 742.5 billion JPY, mainly due to the impact from the depreciation of the yen in the current period.

Research and Development (R&D) expenses. R&D expenses increased by 89.9 billion JPY, or 23.5% (CER % change: 4.9%) compared to the same period of the previous fiscal year, to 472.4 billion JPY, mainly due to the impact from the depreciation of the yen in the current period.
Amortization and Impairment Losses on Intangible Assets Associated with Products. Amortization and Impairment Losses on Intangible Assets Associated with Products increased by 85.6 billion JPY, or 26.4% (CER % change: 5.4%) compared to the same period of the previous fiscal year, to 409.2 billion JPY, mainly due to the impact from the depreciation of the yen in the current period and an increase in impairment charges for certain assets related to in-process R&D and marketed products.
Other Operating Income. Other Operating Income was 16.7 billion JPY, a decrease of 17.6 billion JPY, or 51.3% (CER % change: -54.4%), compared to the same period of the previous fiscal year primarily due to a change in fair value of financial assets and liabilities associated with contingent consideration arrangements recognized and certain settlement proceeds recorded in the same period of the previous fiscal year.
Other Operating Expenses. Other Operating Expenses were 127.6 billion JPY, an increase of 27.6 billion JPY, or 27.6% (CER % change: 8.6%), compared to the same period of the previous fiscal year, primarily due to increases in reserves and provisions mainly for certain assets and pre-launch inventory during the current period, partially offset by a decrease in restructuring expenses attributable to the decrease in Shire integration costs.
Operating Profit. As a result of the above factors, Operating Profit decreased by 60.5 billion JPY, or 13.1% (CER % change: -20.3%) compared to the same period of the previous fiscal year to 401.9 billion JPY.

Net Finance Expenses. Net Finance Expenses were 71.6 billion JPY in the current period, a decrease of 29.0 billion JPY, or 28.8% (CER % change: 31.6%) compared to Net Finance Expenses of 100.6 billion JPY for the same period of the previous fiscal year. This decrease was mainly driven by a positive impact from the remeasurement of warrants to purchase stocks of companies held by Takeda as well as a gain on prior equity method investments related to the acquisitions of GammaDelta Therapeutics and Adaptate Biotherapeutics in April 2022.

Share of Loss of Investments Accounted for Using the Equity Method. Share of Loss of Investments Accounted for Using the Equity Method was 3.1 billion JPY, a decrease of 2.1 billion JPY, or 40.4% (CER % change: -58.1%), compared to the same period of the previous fiscal year.

Income Tax Expenses. Income Tax Expenses were 41.3 billion JPY, a decrease of 73.8 billion JPY, or 64.1% (CER % change; -61.3%), compared to the same period of the previous year. This decrease was primarily due to a tax charge of 64.6 billion JPY for tax and interest, net of 0.5 billion JPY of associated tax benefit, arising from tax assessment involving Irish taxation of the break fee Shire received from AbbVie in connection with the terminated offer to acquire Shire made by AbbVie in 2014 in the same period of the previous year as well as decreased tax charges for US international tax provisions and tax benefits from recognition of deferred tax assets in the current period. These decreases were partially offset by the tax benefits from internal entity restructuring transactions in the same period of the previous year.
5
Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Nine-month
Period Ended December 31, 2022 (Consolidated)
Net Profit for the Period. Net Profit for the Period decreased by 44.4 billion JPY, or 18.4% (CER % change: 4.8%), compared to the same period of the previous fiscal year to 285.9 billion JPY.
(ii) Core Results (April 1 to December 31, 2022)
Definition of Core financial measures and Constant Exchange Rate change
Core Revenue represents revenue adjusted to exclude significant items unrelated to Takeda's core operations.

Core Operating Profit represents net profit adjusted to exclude income tax expenses, the share of profit or loss of investments accounted for using the equity method, finance expenses and income, other operating expenses and income, amortization and impairment losses on acquired intangible assets and other items unrelated to Takeda’s core operations, such as non-recurring items, purchase accounting effects and transaction related costs.

Core EPS represents net profit 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 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.

CER (Constant Exchange Rate) change eliminates the effect of foreign exchange rates from year-over-year comparisons by translating Reported or Core results for the current period using corresponding exchange rates in the same period of the previous fiscal year.

Results of Core Operations
Billion JPY or percentage
FY2021 Q3YTDFY2022 Q3YTDChange versus the same period of the previous fiscal year
Actual % changeCER % change
Core Revenue2,562.7 3,071.3 508.6 19.8 %4.5 %
Core Operating Profit757.9 954.7 196.7 26.0 %9.7 %
Core EPS (yen)333 456 123 37.0 %17.1 %


Core Revenue for the nine-month period ended December 31, 2022 was 3,071.3 billion JPY, an increase of 508.6 billion JPY, or 19.8% (CER % change: 4.5%), compared to the same period of the previous fiscal year. Core revenue for the nine-month period ended December 31, 2021, was 2,562.7 billion JPY, which excluded the non-recurring 133.0 billion JPY selling price of the diabetes portfolio in Japan. There were no significant items unrelated to Takeda's core operations excluded from revenue in the current period, resulting in Core revenue for the current period being the same as Reported revenue at 3,071.3 billion JPY. Business momentum was led by Takeda’s Growth and Launch Products* which totaled 1,199.6 billion JPY, a year-on-year increase of 350.7 billion JPY, or 41.3% (CER % change: 20.4%).
*    Takeda’s Growth and Launch Products
    GI: ENTYVIO, ALOFISEL
    Rare Diseases: TAKHZYRO, LIVTENCITY
    PDT Immunology: Immunoglobulin products including GAMMAGARD LIQUID/KIOVIG, HYQVIA, and CUVITRU,
Albumin products including HUMAN ALBUMIN and FLEXBUMIN
    Oncology: ALUNBRIG, EXKIVITY
Other: SPIKEVAX Intramuscular Injection, NUVAXOVID Intramuscular Injection

Core Operating Profit for the current period was 954.7 billion JPY, an increase of 196.7 billion JPY or 26.0% (CER % change: 9.7%) compared to the same period of the previous fiscal year driven by revenue growth in our core therapeutic areas and the depreciation of the yen in the current period.

Core EPS for the current period was 456 yen, an increase of 123 yen, or 37.0% (CER % change: 17.1%), compared to the same period of the previous fiscal year.

6
Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Nine-month
Period Ended December 31, 2022 (Consolidated)
(2) Consolidated Financial Position
Assets. Total Assets as of December 31, 2022 were 13,504.7 billion JPY, reflecting an increase of 326.7 billion JPY compared to the previous fiscal year-end. Goodwill and Property, Plant and Equipment increased by 283.2 billion JPY and 73.6 billion JPY respectively mainly due to the effect of foreign currency translation. In addition, Inventories increased by 74.1 billion JPY. These increases were partially offset by a decrease in Cash and Cash Equivalents of 164.6 billion JPY.
Liabilities. Total Liabilities as of December 31, 2022 were 7,328.2 billion JPY, reflecting a decrease of 166.3 billion JPY compared to the previous fiscal year-end. Trade and Other Payables and Deferred Tax Liabilities decreased by 135.2 billion JPY and 62.8 billion JPY, respectively. In addition, Bonds and Loans decreased by 58.5 billion JPY to 4,286.9 billion JPY* primarily due to the redemption of bonds partially offset by an increase due to the effect of foreign currency translation. These decreases were partially offset by an increase in Other Liabilities of 54.5 billion JPY.
* The carrying amount of Bonds was 3,565.0 billion JPY and Loans was 721.9 billion JPY as of December 31, 2022. Breakdown of Bonds and Loans carrying amount is as follows.
Bonds:
Name of Bond
 (Face Value if Denominated in
 Foreign Currency)		IssuanceMaturityCarrying Amount
(Billion JPY)
Unsecured US dollar denominated senior notes (1,301 million USD)June 2015June 2025 ~
June 2045		172.3 
Unsecured US dollar denominated senior notes (4,000 million USD)September 2016September 2023 ~
September 2026		508.2 
Unsecured Euro denominated senior notes (3,000 million EUR)November 2018November 2026 ~
November 2030		419.7 
Unsecured US dollar denominated senior notes (2,250 million USD)November 2018November 2023 ~
November 2028		295.5 
Hybrid bonds (subordinated bonds)June 2019June 2079498.7 
Unsecured US dollar denominated senior notes (7,000 million USD)July 2020March 2030 ~
July 2060		918.1 
Unsecured Euro denominated senior notes (3,600 million EUR)July 2020July 2027 ~
July 2040		503.1 
Unsecured JPY denominated senior bondsOctober 2021October 2031249.4 
Total3,565.0 

Loans:
Name of Loan
 (Face Value if Denominated in
 Foreign Currency)		ExecutionMaturityCarrying Amount
(Billion JPY)
Syndicated loansApril 2016April 2023 ~
April 2026		200.0 
Syndicated loansApril 2017April 2027113.5 
Syndicated loans
(1,500 million USD)		April 2017April 2027197.8 
Bilateral loans March 2016 ~
April 2017		March 2023 ~
March 2026		210.0 
Other0.6 
Total721.9 

7
Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Nine-month
Period Ended December 31, 2022 (Consolidated)
On April 23, 2022, Takeda redeemed 219 million USD of unsecured U.S. dollar-denominated senior notes issued in June 2015 in advance of their original maturity date of June 23, 2022. Following this, on October 27, 2022, Takeda redeemed 1,000 million USD of unsecured U.S. dollar-denominated senior notes issued in November 2018 in advance of their original maturity date of November 26, 2023. Furthermore, on November 21, 2022, Takeda redeemed 750 million EUR of unsecured floating rate senior notes issued in November 2018 on their maturity date.

Equity. Total Equity as of December 31, 2022 was 6,176.5 billion JPY, an increase of 493.0 billion JPY compared to the previous fiscal year-end. This was primarily resulted from an increase of 446.0 billion JPY in Other Components of Equity mainly due to fluctuation in currency translation adjustments reflecting the depreciation of yen and an increase in Retained Earnings of 28.0 billion JPY. The increase in Retained Earnings was primarily attributable to Net Profit for the Period largely offset by the dividends payments of 278.3 billion JPY.
Consolidated Cash Flows
Billion JPY
FY2021 Q3YTDFY2022 Q3YTD
Net cash from (used in) operating activities747.5 683.5 
Net cash from (used in) investing activities(172.5)(168.6)
Net cash from (used in) financing activities(826.5)(702.5)
Net increase (decrease) in cash and cash equivalents(251.4)(187.7)
Cash and cash equivalents at the beginning of the year966.2 849.7 
Effects of exchange rate changes on cash and cash equivalents9.5 23.1 
Cash and cash equivalents at the end of the period724.3 685.1 
Net cash from operating activities was 683.5 billion JPY for the current period compared to 747.5 billion JPY for the same period of the previous year. The decrease of 64.1 billion JPY was primarily driven by unfavorable impacts from changes in trade and other payables as well as trade and other receivables compared to the same period of the previous year. These were partially offset by a favorable impact from changes in provisions and higher net profit for the period adjusted for non-cash items and other adjustments reflecting sales increases in core therapeutic areas and favorable foreign exchange rates, while there was the decrease of cash from the sale of Japan diabetes portfolio in the same period of prior fiscal year.
Net cash used in investing activities was 168.6 billion JPY for the current period compared to 172.5 billion JPY for the same period of the previous year. This decrease of 3.9 billion JPY was mainly due to a decrease of 49.7 billion JPY in acquisition of business (net of cash and cash equivalents acquired), partially offset by an increase of 38.2 billion JPY in acquisition of intangible assets.
Net cash used in financing activities was 702.5 billion JPY for the current period compared to 826.5 billion JPY for the same period of the previous year. The decrease of 123.9 billion JPY was mainly due to a decrease in repayments of bonds and long-term loans, net of proceeds from issuance of bonds upon refinancing, of 104.1 billion JPY. In addition, there was a decrease in purchase of treasury shares of 25.6 billion JPY resulting from the higher share buybacks conducted in the same period of the previous year compared to the current period.
8
Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Nine-month
Period Ended December 31, 2022 (Consolidated)
(3) Outlook for the Fiscal Year Ending March 31, 2023
Based on Takeda's financial results through the nine-month period ended December 31, 2022, and taking into account the anticipated financial outlook for the remaining three-month period of the fiscal year ending March 31, 2023 (FY2022), the full year consolidated reported forecast for FY2022 has not been revised from the latest forecast announced on October 27, 2022.
Full Year Reported Forecast for the Fiscal Year Ending March 31, 2023 (FY2022)
Billion JPY or percentage
FY2021
Actual Results		FY2022
Latest Forecast
(October 27, 2022)		vs. FY2021 Actual Results
Revenue3,569.0 3,930.0 361.0 10.1 %
Operating profit460.8 530.0 69.2 15.0 %
Profit before tax302.6 426.0 123.4 40.8 %
Net profit for the year
(attributable to owners of the Company)
230.1 307.0 76.9 33.4 %
EPS (JPY)147.14 197.83 50.69 34.4 %
Core Revenue3,420.5 3,930.0 509.5 14.9 %
Core Operating Profit955.2 1,180.0 224.8 23.5 %
Core EPS (JPY)425 525 100 23.6 %

Major assumptions used in preparing the FY2022 Reported Forecast
Billion JPY or percentage
FY2021
Actual Results		FY2022
Latest Forecast
(October 27, 2022)
FX rates1 USD = 112 JPY
1 Euro = 131 JPY
1 RUB = 1.5 JPY
1 BRL = 20.9 JPY
1 CNY = 17.4 JPY		1 USD = 132 JPY
1 Euro = 138 JPY
1 RUB = 2.1 JPY
1 BRL = 26.4 JPY
1 CNY = 19.8 JPY
R&D expenses(526.1)(620.0)
Amortization of intangible assets associated with products(418.8)(480.0)
  Of which Shire acquisition related(339.7)(390.0)
Impairment of intangible assets associated with products(54.1)(50.0)
Other operating income43.113.0
Other operating expenses(159.1)(100.0)
Japan diabetes portfolio divestiture gain131.4 — 
Other Core Operating Profit adjustments(36.9)(33.0)
Of which Shire acquisition related to unwind of inventories step-up(31.9)(25.0)
Finance income and (expenses), net(142.9)(105.0)
Free cash flow943.7 650.0 - 750.0
Capital expenditures (cash flow base)(186.0)(260.0 - 310.0)
Depreciation and amortization (excluding intangible assets associated with products)(161.0)(160.0)
Cash tax rate on adjusted EBITDA (excluding divestitures)~12%Mid-teen %
9
Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Nine-month
Period Ended December 31, 2022 (Consolidated)
Management Guidance
Beginning from FY2022, Takeda uses growth in its Core financial measures on a Constant Exchange Rate basis (“Core Growth at CER”) to provide its Management Guidance. The full year management guidance for the fiscal year ending March 31, 2023 (FY2022) has not been changed from the management guidance announced at the FY2021 financial results announcement on May 11, 2022.
FY2022 Management Guidance
Core Growth at CER (%)*
Core Revenue GrowthLow-single-digit growth
Core Operating Profit GrowthHigh-single-digit growth
Core EPS GrowthHigh-single-digit growth
* Please refer to 1. Financial Highlights for the Nine-month Period Ended December 31, 2022, (1) Business Performance, (ii) Core Results (April 1 to December 31, 2022), Definition of Core financial measures and Constant Exchange Rate change, for the definition.
Other assumptions used in preparing the FY2022 Reported Forecast and the Management Guidance
•Based on currently available information, Takeda expects that its financial results for FY2022 will not be materially affected by COVID-19 or the crisis in Ukraine and Russia and, accordingly, Takeda's FY2022 reported forecast and the management guidance reflect this expectation.
•The FY2022 reported forecast and the management guidance include approximately 50.0 billion JPY revenue contribution from COVID-19 vaccines.
•Free cash flow and capital expenditures assumptions do not include the impact of acquisitions that have been announced but not completed yet, including the upfront cash payment for the acquisition of NDI-034858 from Nimbus Therapeutics, LLC, for 4 billion USD, as the exact timing of cash payment is dependent upon deal close.
Forward looking statements
All forecasts in this document are based on information 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, the Company will disclose it in a timely manner.

10
Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Nine-month
Period Ended December 31, 2022 (Consolidated)
(4) Other

Takeda's Initiatives to Mitigate the Impact of COVID-19
Takeda's response to COVID-19 continues to focus on protecting the health and safety of our employees, our ability to ensure our medicines are available to patients who rely on them and playing our part to reduce transmission and support the communities where our employees live and work. While vaccines are becoming more broadly available, we continue to strictly adhere to local public health guidance across our geographies in addition to the internal protocols we have put in place, and monitor any potential impacts of the effects and evolution of COVID-19, including new variants, on our business activities.
Takeda is manufacturing NUVAXOVID Intramuscular Injection, a novel recombinant protein-based COVID-19 vaccine which was licensed, with manufacturing technologies transferred, from Novavax, at its Hikari facility and has been distributing it in Japan since May 2022. Also, Takeda will continue to provide distribution support in bringing an mRNA COVID-19 vaccine, SPIKEVAX Intramuscular Injection, to Japan through its partnership with Moderna.


Takeda’s Operations in Ukraine and Russia
Our commitment to patients, regardless of where they live, and to our people is unwavering and is even more important in times of crisis. Takeda is making every effort to protect our colleagues in Ukraine and to continue to supply patients in Ukraine and in the region with much needed treatments.
Takeda discontinued activities in Russia that are not essential to maintaining the supply of medicines to patients and providing ongoing support to our employees. This includes suspending all new investments, suspending advertising and promotion, not initiating new clinical trials and stopping enrollment of new patients in ongoing clinical trials. Our focus only on essential activities is consistent with our values and ethical responsibility to our patients in Ukraine, Russia and the region who depend on our treatments. This commitment notwithstanding, we are adhering to all international sanctions imposed on Russia.
We will be increasing our humanitarian relief efforts, including monetary and medicine donations to benefit people affected by the conflict in Ukraine, and we will continue to assess new ways to provide support as we look to meet the needs of patients across the region.
In the nine-month period ended December 31, 2022, revenue attributable to Russia/CIS represented 2.2% of Takeda’s total consolidated revenue of 3,071.3 billion, as indicated in the Revenue by Region in 1. Financial Highlights for the Nine-month Period Ended December 31, 2022, (1) Business Performance, (i) Consolidated Financial Results (April 1 to December 31, 2022). There was no material financial impact on Takeda’s financial results for the current period resulting from the crisis in these countries. However, depending on the future status of the crisis, our results of operations and financial conditions could be adversely affected.


11
Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Nine-month
Period Ended December 31, 2022 (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)
Nine-month Period Ended December 31,
20212022
Revenue2,695,717 3,071,322 
Cost of sales(798,466)(934,300)
Selling, general and administrative expenses(662,932)(742,513)
Research and development expenses(382,459)(472,381)
Amortization and impairment losses on intangible assets associated with products(323,632)(409,219)
Other operating income34,269 16,676 
Other operating expenses(100,034)(127,643)
Operating profit462,463 401,943 
Finance income42,949 55,130 
Finance expenses(143,539)(126,765)
Share of loss of investments accounted for using the equity method(5,255)(3,133)
Profit before tax356,618 327,175 
Income tax expenses(115,077)(41,273)
Net profit for the period241,541 285,903 
Attributable to:
Owners of the Company241,417 285,883 
Non-controlling interests124 19 
Net profit for the period241,541 285,903 
Earnings per share (JPY)
Basic earnings per share154.09 184.32 
Diluted earnings per share153.03 182.65 
12
Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Nine-month
Period Ended December 31, 2022 (Consolidated)
(2) Condensed Interim Consolidated Statements of Comprehensive Income
 
JPY (millions)
Nine-month Period Ended December 31,
20212022
Net profit for the period241,541 285,903 
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 income(5,951)730 
Remeasurement of defined benefit pension plans(2,912)12,977 
(8,862)13,707 
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations206,582 481,206 
Cash flow hedges13,958 (17,584)
Hedging cost5,969 (12,107)
Share of other comprehensive loss of investments accounted for using the equity method(145)(915)
226,365 450,599 
Other comprehensive income for the period, net of tax217,503 464,306 
Total comprehensive income for the period459,044 750,209 
Attributable to:
Owners of the Company458,887 750,193 
Non-controlling interests157 16 
Total comprehensive income for the period459,044 750,209 
13
Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Nine-month
Period Ended December 31, 2022 (Consolidated)
(3) Condensed Interim Consolidated Statements of Financial Position
JPY (millions)
As of March 31, 2022As of December 31, 2022
ASSETS
Non-current assets:
Property, plant and equipment1,582,800 1,656,416 
Goodwill4,407,749 4,690,949 
Intangible assets3,818,544 3,765,757 
Investments accounted for using the equity method96,579 94,426 
Other financial assets233,554 275,043 
Other non-current assets82,611 66,774 
Deferred tax assets362,539 359,393 
Total non-current assets10,584,376 10,908,758 
Current assets:
Inventories853,167 927,286 
Trade and other receivables696,644 707,318 
Other financial assets25,305 41,467 
Income taxes receivable27,733 72,554 
Other current assets141,099 154,824 
Cash and cash equivalents849,695 685,141 
Assets held for sale— 7,356 
Total current assets2,593,642 2,595,946 
Total assets13,178,018 13,504,705 
LIABILITIES AND EQUITY
LIABILITIES
Non-current liabilities:
Bonds and loans4,141,418 3,914,884 
Other financial liabilities468,943 503,542 
Net defined benefit liabilities145,847 132,809 
Income taxes payable21,634 25,152 
Provisions52,199 59,628 
Other non-current liabilities67,214 66,701 
Deferred tax liabilities451,511 388,681 
Total non-current liabilities5,348,764 5,091,397 
Current liabilities:
Bonds and loans203,993 372,019 
Trade and other payables516,297 381,109 
Other financial liabilities196,071 180,575 
Income taxes payable200,918 188,779 
Provisions443,502 473,194 
Other current liabilities584,949 639,959 
Liabilities held for sale— 1,173 
Total current liabilities2,145,730 2,236,809 
Total liabilities7,494,495 7,328,206 
14
Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Nine-month
Period Ended December 31, 2022 (Consolidated)
 JPY (millions)
 As of March 31, 2022As of December 31, 2022
EQUITY
Share capital1,676,263 1,676,334 
Share premium1,708,873 1,712,036 
Treasury shares(116,007)(100,314)
Retained earnings1,479,716 1,507,720 
Other components of equity934,173 1,380,202 
Equity attributable to owners of the company5,683,019 6,175,978 
Non-controlling interests504 520 
Total equity5,683,523 6,176,498 
Total liabilities and equity13,178,018 13,504,705 
 

15
Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Nine-month
Period Ended December 31, 2022 (Consolidated)
(4) Condensed Interim Consolidated Statements of Changes in Equity
Nine-month period ended December 31, 2021 (From April 1 to December 31, 2021)
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, 20211,668,145 1,688,424 (59,552)1,509,906 400,798 41,983 
Net profit for the period241,417 
Other comprehensive income (loss)206,337 (5,883)
Comprehensive income (loss) for the period— — — 241,417 206,337 (5,883)
Transactions with owners:
Issuance of new shares8,118 14,036 
Acquisition of treasury shares(54,451)
Disposal of treasury shares(0)1 
Dividends(284,246)
Changes in ownership(2,143)
Transfers from other components of equity1,992 (4,904)
Share-based compensation32,057 
Exercise of share-based awards(36,955)22,989 
Total transactions with owners8,118 9,138 (31,461)(284,397)— (4,904)
As of December 31, 20211,676,263 1,697,562 (91,013)1,466,926 607,135 31,196 

 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, 2021(68,075)(8,592)— 366,114 5,173,037 4,140 5,177,177 
Net profit for the period— 241,417 124 241,541 
Other comprehensive income (loss)13,958 5,969 (2,912)217,470 217,470 33 217,503 
Comprehensive income (loss) for the period13,958 5,969 (2,912)217,470 458,887 157 459,044 
Transactions with owners:
Issuance of new shares— 22,154 22,154 
Acquisition of treasury shares— (54,451)(54,451)
Disposal of treasury shares— 1 1 
Dividends— (284,246)(284,246)
Changes in ownership— (2,143)(3,804)(5,948)
Transfers from other components of equity2,912 (1,992)— — 
Share-based compensation— 32,057 32,057 
Exercise of share-based awards— (13,966)(13,966)
Total transactions with owners— — 2,912 (1,992)(300,594)(3,804)(304,399)
As of December 31, 2021(54,116)(2,623)— 581,592 5,331,330 493 5,331,822 
  
16
Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Nine-month
Period Ended December 31, 2022 (Consolidated)
Nine-month period ended December 31, 2022 (From April 1 to December 31, 2022)
  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, 20221,676,263 1,708,873 (116,007)1,479,716 984,141 22,068 
Effect of hyperinflation(1,960)4,121 
Restated opening balance1,676,263 1,708,873 (116,007)1,477,756 988,263 22,068 
Net profit for the period285,883 
Other comprehensive income (loss)480,326 698 
Comprehensive income (loss) for the period— — — 285,883 480,326 698 
Transactions with owners:
Issuance of new shares71 71 
Acquisition of treasury shares(5)(27,056)
Disposal of treasury shares0 1 
Dividends(278,321)
Transfers from other components of equity22,402 (9,424)
Share-based compensation45,823 
Exercise of share-based awards(42,727)42,749 
Total transactions with owners71 3,162 15,693 (255,919)— (9,424)
As of December 31, 20221,676,334 1,712,036 (100,314)1,507,720 1,468,588 13,341 

 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, 2022(65,901)(6,135)— 934,173 5,683,019 504 5,683,523 
Effect of hyperinflation4,121 2,161 2,161 
Restated opening balance(65,901)(6,135)— 938,294 5,685,180 504 5,685,684 
Net profit for the period— 285,883 19 285,903 
Other comprehensive income (loss)(17,584)(12,107)12,977 464,310 464,310 (4)464,306 
Comprehensive income (loss) for the period(17,584)(12,107)12,977 464,310 750,193 16 750,209 
Transactions with owners:
Issuance of new shares— 142 142 
Acquisition of treasury shares— (27,062)(27,062)
Disposal of treasury shares— 1 1 
Dividends— (278,321)(278,321)
Transfers from other components of equity(12,977)(22,402)— — 
Share-based compensation— 45,823 45,823 
Exercise of share-based awards— 22 22 
Total transactions with owners— — (12,977)(22,402)(259,395)— (259,395)
As of December 31, 2022(83,486)(18,242)— 1,380,202 6,175,978 520 6,176,498 
17
Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Nine-month
Period Ended December 31, 2022 (Consolidated)
(5) Condensed Interim Consolidated Statements of Cash Flows
JPY (millions)
Nine-month Period Ended December 31,
20212022
Cash flows from operating activities:
Net profit for the period241,541 285,903 
Depreciation and amortization430,877 502,990 
Impairment losses14,666 41,969 
Equity-settled share-based compensation32,057 45,823 
Loss (gain) on sales and disposal of property, plant and equipment258 (161)
Gain on divestment of business and subsidiaries(1,095)(959)
Change in fair value of financial assets and liabilities associated with contingent consideration arrangements, net(9,683)4,323 
Finance (income) and expenses, net100,589 71,635 
Share of loss of investments accounted for using the equity method5,255 3,133 
Income tax expenses115,077 41,273 
Changes in assets and liabilities:
Decrease in trade and other receivables82,243 6,856 
Increase in inventories(39,268)(34,240)
Decrease in trade and other payables(1,797)(144,971)
Increase (decrease) in provisions(70,098)11,605 
Decrease in other financial liabilities(51,158)(7,906)
Other, net(858)21,258 
Cash generated from operations848,607 848,529 
Income taxes paid(107,224)(173,363)
Tax refunds and interest on tax refunds received6,138 8,297 
Net cash from operating activities747,521 683,463 
Cash flows from investing activities:
Interest received2,468 2,792 
Dividends received2,598 3,234 
Acquisition of property, plant and equipment(87,673)(104,888)
Proceeds from sales of property, plant and equipment412 80 
Acquisition of intangible assets(46,541)(84,721)
Acquisition of investments(7,600)(5,441)
Proceeds from sales and redemption of investments16,065 20,553 
Acquisition of businesses, net of cash and cash equivalents acquired(49,672)— 
Proceeds from sales of business, net of cash and cash equivalents divested2,138 — 
Other, net(4,683)(219)
Net cash used in investing activities(172,487)(168,610)
18
Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Nine-month
Period Ended December 31, 2022 (Consolidated)
JPY (millions)
Nine-month Period Ended December 31,
20212022
Cash flows from financing activities:
Net decrease in short-term loans and commercial papers(2)— 
Proceeds from issuance of bonds and long-term loans249,334 — 
Repayments of bonds and long-term loans(635,047)(281,585)
Acquisition of treasury shares(52,538)(26,929)
Interest paid(84,917)(86,563)
Dividends paid(273,024)(268,997)
Repayments of lease liabilities(29,904)(32,510)
Other, net(366)(5,964)
Net cash used in financing activities(826,465)(702,548)
Net decrease in cash and cash equivalents(251,430)(187,695)
Cash and cash equivalents at the beginning of the year966,222 849,695 
Effects of exchange rate changes on cash and cash equivalents9,549 23,141 
Cash and cash equivalents at the end of the period724,341 685,141 


19
Takeda Pharmaceutical Company Limited (4502)
Summary of Financial Statements for the Nine-month
Period Ended December 31, 2022 (Consolidated)
(6) Notes to Condensed Interim Consolidated Financial Statements
(Significant Uncertainty Regarding Going Concern Assumption)
Not applicable.
(Significant Accounting Policies)
Significant accounting policies adopted for the condensed interim consolidated financial statements are the same as those adopted for the consolidated financial statements of the fiscal year ended March 31, 2022.
Takeda calculated income tax expenses for the nine-month period ended December 31, 2022, based on the estimated average annual effective tax rate.
(Significant Changes in Equity Attributable to Owners of the Company)
Not applicable.
(Significant Subsequent Events)
Not applicable.
20

ATTACHMENTS / EXHIBITS

EX-99.1


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