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EQS-Ad-hoc: Takeda Pharmaceutical Company Limited / Key word(s): Strategic Company Decision
Takeda Pharmaceutical Company Limited: Takeda Announces Enterprise-wide Program to Support Growth and Deliver Core
Operating Profit Margin Improvement
09-May-2024 / 08:00 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by EQS News
- a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
OSAKA, Japan, May 9, 2024 - Takeda (TSE:4502/NYSE:TAK) announced that its Board of Directors today approved a
significant multi-year program focused on organizational agility, spending efficiencies and leveraging the company's
capabilities in data, digital and technology (DD&T). The program aims to improve growth through continued advancement
of Takeda's Growth & Launch Products and progressing the company's robust late-stage pipeline to deliver innovative
therapies for patients, while helping drive Core Operating Profit margin improvement target of low- to mid-30%.
The program will start in FY2024 and includes initiatives to optimize its workforce-simplifying some division
structures-and rigorously prioritize its R&D pipeline, while investing in DD&T to increase productivity and efficiency
across the organization. Procurement-led initiatives will be centered on optimizing external spend with the goal of
achieving cost savings and efficiencies in Takeda's supply chain and vendor management processes. Details and timing of
specific actions within the framework of these broader initiatives will be decided in due course.
This program underscores Takeda's commitment to driving sustainable growth, operational excellence and financial
resilience in the years ahead, while enabling it to create more long-term value for patients, the global health care
system and society.
Takeda estimates that efficiencies and savings resulting from the multi-year program, offset by investments in its
late-stage pipeline and DD&T, will drive 100-250 basis points of Core Operating Profit margin improvement each year
from FY2025 towards its target of low- to mid-30%-with the amount of basis point improvement each year dependent upon
various factors, including business environment and foreign exchange rates. Primarily as a result of the initiatives,
Takeda estimates it will incur one-time restructuring expenses of JPY 140.0 billion in FY2024, which are reflected in
the consolidated reported forecast for FY2024 that was announced today, with lower restructuring expenses also
anticipated in FY2025 and FY2026.
About Takeda
Takeda is focused on creating better health for people and a brighter future for the world. We aim to discover and
deliver life-transforming treatments in our core therapeutic and business areas, including gastrointestinal and
inflammation, rare diseases, plasma-derived therapies, oncology, neuroscience and vaccines. Together with our partners,
we aim to improve the patient experience and advance a new frontier of treatment options through our dynamic and
diverse pipeline. As a leading values-based, R&D-driven biopharmaceutical company headquartered in Japan, we are guided
by our commitment to patients, our people and the planet. Our employees in approximately 80 countries and regions are
driven by our purpose and are grounded in the values that have defined us for more than two centuries. For more
information, visit www.takeda.com.

Contacts

Investor Relations              Media Relations 
Christopher O'Reilly            Brendan Jennings 
christopher.oreilly@takeda.com  brendan.jennings@takeda.com 
+81 (0) 3-3278-2543             +81 (0) 80-2705-8259 

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Important Notice

For the purposes of this notice, "press release" means this document, any oral presentation, any question and answer session and any written or oral material discussed or distributed by Takeda Pharmaceutical Company Limited ("Takeda") regarding this press release. This press release (including any oral briefing and any question-and-answer in connection with it) is not intended to, and does not constitute, represent or form part of any offer, invitation or solicitation of any offer to purchase, otherwise acquire, subscribe for, exchange, sell or otherwise dispose of, any securities or the solicitation of any vote or approval in any jurisdiction. No shares or other securities are being offered to the public by means of this press release. No offering of securities shall be made in the United States except pursuant to registration under the U.S. Securities Act of 1933, as amended, or an exemption therefrom. This press release is being given (together with any further information which may be provided to the recipient) on the condition that it is for use by the recipient for information purposes only (and not for the evaluation of any investment, acquisition, disposal or any other transaction). Any failure to comply with these restrictions may constitute a violation of applicable securities laws.

The companies in which Takeda directly and indirectly owns investments are separate entities. In this press release, "Takeda" is sometimes used for convenience where references are made to Takeda and its subsidiaries in general. Likewise, the words "we", "us" and "our" are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies.

Forward-Looking Statements

This press release and any materials distributed in connection with this press release may contain forward-looking statements, beliefs or opinions regarding Takeda's future business, future position and results of operations, including estimates, forecasts, targets and plans for Takeda. Without limitation, forward-looking statements often include words such as "targets", "plans", "believes", "hopes", "continues", "expects", "aims", "intends", "ensures", "will", "may", "should", "would", "could", "anticipates", "estimates", "projects", "forecasts", "outlook" or similar expressions or the negative thereof. These forward-looking statements are based on assumptions about many important factors, including the following, which could cause actual results to differ materially from those expressed or implied by the forward-looking statements: the economic circumstances surrounding Takeda's global business, including general economic conditions in Japan and the United States; competitive pressures and developments; changes to applicable laws and regulations; challenges inherent in new product development, including uncertainty of clinical success and decisions of regulatory authorities and the timing thereof; uncertainty of commercial success for new and existing products; manufacturing difficulties or delays; fluctuations in interest and currency exchange rates; claims or concerns regarding the safety or efficacy of marketed products or product candidates; the impact of health crises, like the novel coronavirus pandemic; the success of our environmental sustainability efforts, in enabling us to reduce our greenhouse gas emissions or meet our other environmental goals; the extent to which our efforts to increase efficiency, productivity or cost-savings, such as the integration of digital technologies, including artificial intelligence, in our business or other initiatives to restructure our operations will lead to the expected benefits; and other factors identified in Takeda's most recent Annual Report on Form 20-F and Takeda's other reports filed with the U.S. Securities and Exchange Commission, available on Takeda's website at: https://www.takeda.com/investors/ sec-filings-and-security-reports/ or at www.sec.gov. Takeda does not undertake to update any of the forward-looking statements contained in this press release 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 press release may not be indicative of, and are not an estimate, forecast, guarantee or projection of Takeda's future results.

Financial Information and Certain Non-IFRS Financial Measures

Takeda's financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS").

This press release and materials distributed in connection with this press release include certain financial measures not presented in accordance with IFRS, such as Core Revenue, Core Operating Profit, Core Net Profit, Core EPS, Constant Exchange Rate ("CER") change, Net Debt, EBITDA, Adjusted EBITDA and Free Cash Flow. Takeda's management evaluates results and makes operating and investment decisions using both IFRS and non-IFRS measures included in this press release. 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 financial measures to their most directly comparable IFRS measures, which are in the Financial Appendix appearing at the end of our investor presentation of our Q4 FY2023 financial results (available at www.takeda.com/investors).

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