Takeda Pharmaceutical Company Limited: Takeda Announces Enterprise-wide
Program to Support Growth and Deliver Core Operating Profit Margin Improvement

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.

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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 Christopher         Media Relations Brendan Jennings
   O'Reilly                               (1)brendan.jennings@takeda.com
   (1)christopher.oreilly@takeda.com      +81 (0) 80-2705-8259  1.
   +81 (0) 3-3278-2543  1.                mailto:brendan.jennings@takeda.c
   mailto:christopher.oreilly@takeda.c    om
   om

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).

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 our 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.

###


End of Inside Information

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   Language:       English
   Company:        Takeda Pharmaceutical Company Limited
                   1-1, Nihonbashi-Honcho 2-Chrome, Chuo-ku
                   103-8668 Tokyo
                   Japan
   Phone:          +81-3-3278-2039
   E-mail:         hisashi.tokinoya@takeda.com
   ISIN:           JP3463000004, XS1843449981, XS1843450138, XS1843449049,
                   XS1843449809, XS1843449122, XS1843449395,
   WKN:            853849
   Listed:         Regulated Unofficial Market in Berlin, Dusseldorf,
                   Frankfurt, Hamburg, Munich, Stuttgart, Tradegate
                   Exchange
   EQS News ID:    1898749

End of Announcement EQS News Service
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1898749 09-May-2024 CET/CEST