Takeda H1 reported operating profit rises 60.4%

Q: How did TAK's revenue change in the first half of FY2026?

Takeda reported revenue of JPY 2,407.0 billion for the six months ended September 30, 2026, up 8.4% AER but down 1.0% CER. The company attributed the reported increase primarily to foreign-exchange impacts from yen depreciation.

Q: When will TAK pay its interim dividend?

Takeda approved an interim dividend of JPY 102 per share, payable December 1, 2026. Its annual dividend projection is JPY 204 per share.

Revised FY2026 reported forecasts are higher, while CER-based core guidance still projects declines across revenue, operating profit and EPS.

Filing Impact

(Moderate)

Filing Sentiment

(Neutral)How Sentiment works

Sentiment and the balance of points

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How Sentiment works How the balance works

Form Type

6-K

Rhea-AI Filing Summary

Takeda Pharmaceutical Company Limited (TAK) reported first-half FY2026 revenue of JPY 2,407.0 billion, up 8.4% at actual exchange rates (AER) but down 1.0% at constant exchange rates (CER), as yen depreciation primarily drove the reported increase. Operating profit was JPY 406.7 billion, up 60.4% AER and 45.0% CER; net profit attributable to owners was JPY 305.6 billion, up 171.8% AER. Profit results also reflected lower product-asset amortization and impairment losses and deferred tax benefits.

Takeda revised its FY2026 reported forecasts to revenue of JPY 4,700.0 billion, operating profit of JPY 453.0 billion and net profit attributable to owners of JPY 209.0 billion. CER-based core guidance still projects declines: low-single digit for Core Revenue, mid-single digit for Core Operating Profit and low-teens for Core EPS. The board approved a JPY 102 per-share interim dividend, payable December 1, 2026; the annual dividend projection is JPY 204 per share. First-half net cash from operating activities was JPY 431.9 billion, down 27.2% year over year; cash and cash equivalents were JPY 418.5 billion as of September 30, 2026.

3 points · 0 major

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It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance works How Sentiment works

0 major · 1 point

How the balance works

Positive

Moderate pointRevenue was JPY 2,407.0 billion, up 8.4% AER but down 1.0% CER.
Moderate pointOperating profit rose 60.4% AER to JPY 406.7 billion.
Moderate pointOwner-attributable net profit rose 171.8% AER to JPY 305.6 billion.

Negative

Moderate pointNet cash from operating activities fell 27.2% to JPY 431.9 billion.

Filing Explained

Takeda redeemed USD 1.5 billion of notes at maturity; as of September 30, bonds and loans were JPY 4,575.6 billion, down JPY 306.2 billion since March 31, while other financial liabilities rose JPY 193.0 billion, mainly reflecting a building lease.

Key Figures

Revenue: JPY 2,407.0 billion; +8.4% AER; -1.0% CER Operating profit: JPY 406.7 billion; +60.4% AER; +45.0% CER Net profit attributable to owners: JPY 305.6 billion; +171.8% AER; +148.9% CER +5 more

8 metrics

Revenue JPY 2,407.0 billion; +8.4% AER; -1.0% CER Six months ended September 30, 2026

Operating profit JPY 406.7 billion; +60.4% AER; +45.0% CER Six months ended September 30, 2026

Net profit attributable to owners JPY 305.6 billion; +171.8% AER; +148.9% CER Six months ended September 30, 2026

Net cash from operating activities JPY 431.9 billion; -27.2% Six months ended September 30, 2026, year-over-year

FY2026 revenue forecast JPY 4,700.0 billion Revised forecast for the fiscal year ending March 31, 2027

FY2026 operating profit forecast JPY 453.0 billion Revised forecast for the fiscal year ending March 31, 2027

Interim dividend JPY 102 per share Approved for payment from December 1, 2026

Annual dividend projection JPY 204 per share Fiscal year ending March 31, 2027

Key Terms

Core Financial Measures, CER Change, Adjusted Free Cash Flow

3 terms

Core Financial Measures financial

"Takeda’s Core Financial Measures, particularly Core Revenue"

CER Change financial

"CER Change eliminates the effect of foreign exchange rates"

Adjusted Free Cash Flow financial

"Takeda defines Adjusted Free Cash Flow as cash flows from operating activities"

Adjusted free cash flow is the amount of money a company generates from its operations after accounting for essential expenses and investments, like maintaining or upgrading equipment. It shows how much cash is truly available to grow the business, pay debts, or return to shareholders, helping investors see the company's financial health more clearly.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How did TAK's revenue change in the first half of FY2026?

Takeda reported revenue of JPY 2,407.0 billion for the six months ended September 30, 2026, up 8.4% AER but down 1.0% CER. The company attributed the reported increase primarily to foreign-exchange impacts from yen depreciation.

What is TAK's FY2026 earnings forecast?

For the fiscal year ending March 31, 2027, Takeda's revised reported forecasts are revenue of JPY 4,700.0 billion, operating profit of JPY 453.0 billion and net profit attributable to owners of JPY 209.0 billion. CER-based core guidance projects declines in Core Revenue, Core Operating Profit and Core EPS.

When will TAK pay its interim dividend?

Takeda approved an interim dividend of JPY 102 per share, payable December 1, 2026. Its annual dividend projection is JPY 204 per share.

AI-generated analysis. How Rhea-AI works. Not financial advice.

Form 6-K: How Foreign Companies Report to the SEC →

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Available on EDGAR 10/29/2026 - 06:34 AM EDT Accepted by SEC EDGAR 10/29/2026 - 06:33 AM EDT

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 October 2026

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


Exhibit Number
1.						(English Translation) Earnings Report (Kessan Tanshin) for the Six-month Period Ended September 30, 2026
99.1						Financial Appendix

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: October 29, 2026

By:

/s/ Norimasa Takeda

Norimasa Takeda

Chief Accounting Officer and Corporate Controller

Earnings Report (Kessan Tanshin) for the Six-month Period Ended September 30, 2026 (IFRS, Consolidated)

October 29, 2026

Takeda Pharmaceutical Company Limited

Stock exchange listings:

Tokyo, Nagoya, Sapporo, Fukuoka

TSE Code:

4502

URL: https://www.takeda.com

Representative:

Julie Kim, President & CEO

Contact:

Christopher O'Reilly

Telephone: +81-3-3278-2111

Email: takeda.ir.contact@takeda.com

Global Head of IR, Global Finance


Scheduled date of semi-annual securities report submission: October 29, 2026
Scheduled date of dividend payment commencement: December 1, 2026
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 Six-month Period Ended September 30, 2026 (April 1 to September 30, 2026)

(1)Consolidated Operating Results (year to date)


	(Percentage figures represent changes over the same period of the previous year)
	Revenue		Operating profit		Profit before tax		Net profit for the period
	(Million JPY)	(%)	(Million JPY)	(%)	(Million JPY)	(%)	(Million JPY)	(%)
Six-month Period Ended September 30, 2026	2,406,997	8.4	406,739	60.4	318,688	78.2	305,716	171.6
Six-month Period Ended September 30, 2025	2,219,481	(6.9)	253,561	(27.7)	178,804	(30.1)	112,550	(39.9)

	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)
Six-month Period Ended September 30, 2026	305,626	171.8	107,101	(70.7)	192.53		189.52
Six-month Period Ended September 30, 2025	112,441	(40.0)	365,385	-	71.57		70.45

	Core Operating Profit		Core EPS
	(Billion JPY)	(%)	(JPY)
Six-month Period Ended September 30, 2026	710.6	11.2	308
Six-month Period Ended September 30, 2025	639.2	(11.2)	279

(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 September 30, 2026	15,271,498	7,417,176	7,416,185	48.6	4,642.52
As of March 31, 2026	15,511,506	7,430,649	7,429,441	47.9	4,702.66


2. Dividends


	Annual dividends per share (JPY)
	1st quarter end	2nd quarter end	3rd quarter end	Year-end	Total
For the Fiscal Year Ended March 31, 2026	—	100.00	—	100.00	200.00
For the Fiscal Year Ending March 31, 2027	—	102.00
For the Fiscal Year Ending March 31, 2027 (Projection)			—	102.00	204.00

(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, 2027 (April 1, 2026 to March 31, 2027)


	(Percentage figures represent changes from the previous fiscal year)
	Revenue			Operating profit		Profit before tax		Net profit attributable to owners of the Company		Basic earnings per share
	(Million JPY)	(%)		(Million JPY)	(%)	(Million JPY)	(%)	(Million JPY)	(%)	(JPY)
For the Fiscal Year Ending March 31, 2027	4,700,000	4.3	%	453,000	—	270,000	—	209,000	—	131.28
(Note) Modifications in forecasts of consolidated operating results from the latest announcement: Yes

Forecasts for Core financial measures are shown below.

	(Percentage figures represent changes from the previous fiscal year)
	Core Revenue			Core Operating Profit		Core EPS
	(Million JPY)	(%)		(Million JPY)	(%)	(JPY)
For the Fiscal Year Ending March 31, 2027	4,700,000	4.3		1,190,000	1.5	482

(Note) Modifications in forecasts of consolidated operating results from the latest announcement: Yes

The definition of Core financial measures is stated in “Definition and Explanation of Non-IFRS Measures and U.S. Dollar Convenience Translations” in the Financial Appendix.


4.			Management Guidance (Constant Exchange Rate basis) for the Fiscal Year Ending March 31, 2027 (April 1, 2026 to March 31, 2027)

Takeda uses change in Core Revenue, Core Operating Profit and Core EPS at Constant Exchange Rate (CER) basis as its Management Guidance. The full year management guidance for the fiscal year ending March 31, 2027 (FY2026) has been revised from the management guidance announced on May 13, 2026.

Core Revenue Growth

Core Operating Profit Growth

Core EPS Growth

(%)

For the Fiscal Year Ending March 31, 2027

Low-single digit % decline

Mid-single digit % decline

Low-teens % decline

The definition of Constant Exchange Rate change is stated in “Definition and Explanation of Non-IFRS Measures and U.S. Dollar Convenience Translations” in the Financial Appendix.

▪Additional Information


(1) Significant changes in the scope of consolidation during the period									: No



(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:
September 30, 2026									1,602,218,559 shares
March 31, 2026									1,591,229,109 shares

2) Number of shares of treasury stock at period end:
September 30, 2026									4,769,662 shares
March 31, 2026									11,392,279 shares

3) Average number of outstanding shares (for the six-month period ended September 30):
September 30, 2026									1,587,406,791 shares
September 30, 2025									1,571,098,080 shares

▪Earnings report (Kessan Tanshin) is exempt from review conducted by certified public accountants or an audit firm.

▪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 and assumptions 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 Six-month Period Ended September 30, 2026 (4) Outlook for the Fiscal Year Ending March 31, 2027" on page 11.

•

Supplementary materials for the financial statements including the Quarterly Financial Report and Earnings Presentation of the conference call on October 29, 2026, and its audio will be promptly posted on Takeda’s website.

(Takeda Website):

https://www.takeda.com/investors/financial-results/quarterly-results/

Takeda Pharmaceutical Company Limited (4502)

Earnings Report (Kessan Tanshin) for the Six-month

Period Ended September 30, 2026 (Consolidated)

Attachment Index



1. Financial Highlights for the Six-month Period Ended September 30, 2026			2
(1) Business Performance			2
(2) Consolidated Financial Position			8
(3) Consolidated Cash Flows			10
(4) Outlook for the Fiscal Year Ending March 31, 2027			11
(5) Interim Dividend for Fiscal 2026			13


2. Condensed Interim Consolidated Financial Statements [IFRS] and Major Notes			14
(1) Condensed Interim Consolidated Statements of Profit or Loss			14
(2) Condensed Interim Consolidated Statements of Comprehensive Income			15
(3) Condensed Interim Consolidated Statements of Financial Position			16
(4) Condensed Interim Consolidated Statements of Changes in Equity			18
(5) Condensed Interim Consolidated Statements of Cash Flows			20
(6) Notes to Condensed Interim Consolidated Financial Statements			22
(Significant Uncertainty Regarding Going Concern Assumption)			22
(Material Accounting Policies)			22
(Operating Segment Information)			22

(Significant Subsequent Events)			22

[Financial Appendix]

Takeda Pharmaceutical Company Limited (4502)

Earnings Report (Kessan Tanshin) for the Six-month

Period Ended September 30, 2026 (Consolidated)

1. Financial Highlights for the Six-month Period Ended September 30, 2026

(1) Business Performance

(i) Consolidated Financial Results (April 1 to September 30, 2026)


	Billion JPY or percentage
	FY2025 H1	FY2026 H1	AER			CER
			JPY Change	% Change		% Change
Revenue	2,219.5	2,407.0	187.5	8.4	%	(1.0)	%
Cost of sales	(764.7)	(798.8)	(34.0)	4.5	%	(4.6)	%
Selling, general and administrative expenses	(509.4)	(558.2)	(48.8)	9.6	%	0.3	%
Research and development expenses	(305.4)	(338.6)	(33.3)	10.9	%	2.1	%
Amortization and impairment losses on intangible assets associated with products	(336.8)	(218.5)	118.3	(35.1)	%	(40.7)	%
Other operating income	23.5	15.5	(8.1)	(34.3)	%	(37.7)	%
Other operating expenses	(73.1)	(101.6)	(28.5)	39.0	%	25.4	%
Operating profit	253.6	406.7	153.2	60.4	%	45.0	%
Finance income and (expenses), net	(72.1)	(88.0)	(15.9)	22.0	%	15.0	%
Share of loss of investments accounted for using the equity method	(2.6)	(0.0)	2.6	(99.8)	%	―
Profit before tax	178.8	318.7	139.9	78.2	%	59.3	%
Income tax expenses	(66.3)	(13.0)	53.3	(80.4)	%	(92.6)	%
Net profit for the period	112.5	305.7	193.2	171.6	%	148.7	%
Net profit for the period attributable to owners of the Company	112.4	305.6	193.2	171.8	%	148.9	%

In this section, 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”. For additional information on CER change, see “Definition and Explanation of Non-IFRS Measures and U.S. Dollar Convenience Translations” in the Financial Appendix.

Revenue

Revenue for the six-month period ended September 30, 2026 was JPY 2,407.0 billion (JPY +187.5 billion and +8.4% AER, -1.0% CER). The increase compared to the same period of the previous fiscal year was primarily attributable to foreign exchange impacts from the depreciation of the Japanese yen.

Revenue of our key business areas, which comprise Gastroenterology (“GI”), Rare Diseases, Plasma-Derived Therapies (“PDT”), Oncology, Vaccines, and Neuroscience, was JPY 2,308.2 billion (JPY +191.8 billion and +9.1% AER, -0.5% CER). Revenue outside of our key business areas was JPY 98.8 billion (JPY -4.3 billion and -4.2% AER, -12.7% CER).

Takeda Pharmaceutical Company Limited (4502)

Earnings Report (Kessan Tanshin) for the Six-month

Period Ended September 30, 2026 (Consolidated)

Revenue by Geographic Region

The following shows revenue by geographic region:


	Billion JPY or percentage
	FY2025 H1	FY2026 H1	AER			CER
Revenue:			JPY Change	% Change		% Change
Japan	219.1	213.9	(5.2)	(2.4)	%	(2.7)	%
United States	1,091.9	1,130.7	38.8	3.6	%	(5.4)	%
Europe*2	482.1	559.8	77.7	16.1	%	4.8	%
Latin America	118.5	144.5	26.0	22.0	%	5.6	%
China	92.7	106.2	13.6	14.6	%	(0.9)	%
Asia (excluding Japan & China)	47.8	54.6	6.8	14.1	%	7.7	%
Russia/CIS	43.2	52.8	9.6	22.2	%	7.8	%
Other*1, 2	124.3	144.5	20.3	16.3	%	4.5	%
Total	2,219.5	2,407.0	187.5	8.4	%	(1.0)	%

*1 Other includes Canada, the Middle East, Oceania and Africa.

*2 Following the implementation of a new organizational structure, the geographical classification previously presented as “Europe and Canada” through the prior fiscal year has been revised to “Europe” from the current fiscal year, and revenue attributable to Canada is now included in “Other“. Accordingly, revenue for FY2025 H1 in the above has been reclassified to conform to the FY2026 H1 presentation. Revenue by geographic region for FY2025 H1 previously presented under “Europe and Canada” and “Other” amounted to JPY 535.2 billion and JPY 71.2 billion, respectively.

Revenue by Business Area

The following shows revenue by business area:


	Billion JPY or percentage
	FY2025 H1	FY2026 H1	AER			CER
Revenue:			JPY Change	% Change		% Change
GI	692.8	776.8	84.0	12.1	%	2.5	%
Rare Diseases	380.5	395.7	15.2	4.0	%	(5.6)	%
PDT	517.4	561.2	43.7	8.5	%	(1.5)	%
Oncology	287.8	317.0	29.2	10.1	%	0.9	%
Vaccines	31.7	36.6	5.0	15.7	%	7.7	%
Neuroscience	206.1	220.9	14.8	7.2	%	(1.6)	%
Other	103.1	98.8	(4.3)	(4.2)	%	(12.7)	%
Total	2,219.5	2,407.0	187.5	8.4	%	(1.0)	%

Year-on-year change in revenue for this six-month period in each of our business areas was primarily attributable to the following products:

In GI, revenue was JPY 776.8 billion (JPY +84.0 billion and +12.1% AER, +2.5% CER).

Sales of ENTYVIO (for ulcerative colitis and Crohn’s disease) were JPY 541.7 billion (JPY +62.4 billion and +13.0% AER, +2.7% CER). Sales in the U.S. were JPY 351.8 billion (JPY +32.8 billion and +10.3% AER). The increase was driven by favorable foreign exchange rates against the U.S. dollar, accompanied by growth of the subcutaneous formulation. Sales in Europe were JPY 124.9 billion (JPY +16.4 billion and +15.1% AER). The increase was due to favorable foreign exchange rates against the Euro, complemented by continued growth in patient numbers, supported by increased use of the subcutaneous formulation.

Sales of GATTEX/REVESTIVE (for short bowel syndrome) were JPY 79.9 billion (JPY +8.3 billion and +11.5% AER, +2.1% CER). The increase was primarily due to favorable foreign exchange rates, accompanied by a sales increase in the U.S. driven by stable demand.

Sales of TAKECAB/VOCINTI (for acid-related diseases) were JPY 76.0 billion (JPY +7.1 billion and +10.3% AER, +6.2% CER). The increase was primarily due to a sales increase in China and Japan driven by stable demand, accompanied by favorable foreign exchange rates.

Takeda Pharmaceutical Company Limited (4502)

Earnings Report (Kessan Tanshin) for the Six-month

Period Ended September 30, 2026 (Consolidated)

Rare Diseases

In Rare Diseases, revenue was JPY 395.7 billion (JPY +15.2 billion and +4.0% AER, -5.6% CER).

Sales of LIVTENCITY (for post-transplant cytomegalovirus infection/disease) were JPY 28.8 billion (JPY +6.7 billion and +30.2% AER, +18.6% CER). The increase was primarily attributable to continued performance in the U.S. market reflecting strong market penetration, accompanied by favorable foreign exchange rates.

Sales of VONVENDI (for von Willebrand Disease) were JPY 15.9 billion (JPY +4.5 billion and +39.3% AER, +27.0% CER). The increase was due to the expanded indication of VONVENDI, enabling prophylactic use for adult populations, complemented by favorable foreign exchange rates.

Sales of ADZYNMA (for congenital thrombotic thrombocytopenic purpura) were JPY 8.8 billion (JPY +4.0 billion and +82.2% AER, +65.5% CER). The increase was primarily due to post-launch growth in Europe, reflecting an unmet need for treatment of an ultra-rare patient population.

PDT

In PDT, revenue was JPY 561.2 billion (JPY +43.7 billion and +8.5% AER, -1.5% CER).

Aggregate sales of immunoglobulin products, mainly used for the treatment of primary immunodeficiency, chronic inflammatory demyelinating polyneuropathy, and multifocal motor neuropathy, were JPY 423.8 billion (JPY +36.7 billion and +9.5% AER, -0.3% CER). Sales of CUVITRU and HYQVIA, which are subcutaneous immunoglobulin therapies, experienced double digit percentage sales growth, due to continued strong demand globally, accompanied by favorable foreign exchange rates. Sales of GAMMAGARD LIQUID/KIOVIG, which are intravenous immunoglobulin therapies, slightly increased, primarily due to favorable foreign exchange rates.

Aggregate sales of albumin products including HUMAN ALBUMIN and FLEXBUMIN (both primarily used for hypovolemia and hypoalbuminemia) were JPY 69.1 billion (JPY +3.0 billion and +4.5% AER, -6.9% CER). The increase was primarily attributable to favorable foreign exchange rates, which was partially offset by a sales decline in the U.S.

Oncology

In Oncology, revenue was JPY 317.0 billion (JPY +29.2 billion and +10.1% AER, +0.9% CER).

Sales of ADCETRIS (for malignant lymphomas) were JPY 85.5 billion (JPY +10.9 billion and +14.7% AER, +2.5% CER). The increase was primarily due to favorable foreign exchange rates, accompanied by a sales increase in Latin America driven by stable demand.

Sales of FRUZAQLA (for colorectal cancer) were JPY 33.4 billion (JPY +6.1 billion and +22.4% AER, +12.6% CER). The increase was primarily attributable to continued performance in Europe, as FRUZAQLA is addressing a need for new treatment options in metastatic colorectal cancer, and favorable foreign exchange rates.

Sales of LEUPLIN/ENANTONE (for endometriosis, uterine fibroids, premenopausal breast cancer, prostate cancer, and other certain indications) were JPY 63.9 billion (JPY +5.2 billion and +8.9% AER, +1.9% CER). The increase was due to favorable foreign exchange rates, accompanied by a sales increase in China, driven by volume growth following the implementation of provincial volume-based procurement.

Sales of NINLARO (for multiple myeloma) were JPY 44.1 billion (JPY +2.7 billion and +6.5% AER, -4.0% CER). The increase was primarily attributable to favorable foreign exchange rates, which was partially offset by a sales decline in the U.S.

Sales of ICLUSIG (for leukemia) were JPY 37.1 billion (JPY +2.7 billion and +7.8% AER, -2.0% CER). The increase was primarily attributable to favorable foreign exchange rates.

Vaccines

In Vaccines, revenue was JPY 36.6 billion (JPY +5.0 billion and +15.7% AER, +7.7% CER).

Sales of QDENGA (for prevention of dengue) were JPY 26.6 billion (JPY +5.6 billion and +26.4% AER, +14.4% CER). The increase was due to post-launch growth in Latin America, as well as favorable foreign exchange rates.

Neuroscience

In Neuroscience, revenue was JPY 220.9 billion (JPY +14.8 billion and +7.2% AER, -1.6% CER).

Sales of TRINTELLIX (for major depressive disorder) were JPY 71.3 billion (JPY +14.3 billion and +25.2% AER, +15.6% CER). The increase was due to pricing favorability in the U.S. including a price increase and shifts in payer mix, lower sales in the same period of the previous year following changes in the distribution model of a major customer and favorable foreign exchange rates.

Takeda Pharmaceutical Company Limited (4502)

Earnings Report (Kessan Tanshin) for the Six-month

Period Ended September 30, 2026 (Consolidated)

Cost of Sales

Cost of Sales was JPY 798.8 billion (JPY +34.0 billion and +4.5% AER, -4.6% CER). The increase was primarily due to foreign exchange impacts from the depreciation of the Japanese yen partially offset by a lower cost ratio resulting from changes in product mix.

Selling, General and Administrative (SG&A) Expenses

SG&A Expenses were JPY 558.2 billion (JPY +48.8 billion and +9.6% AER, +0.3% CER). The increase was mainly due to foreign exchange impacts from the depreciation of the Japanese yen.

Research and Development (R&D) Expenses

R&D Expenses were JPY 338.6 billion (JPY +33.3 billion and +10.9% AER, +2.1% CER). The increase was mainly attributable to foreign exchange impacts from the depreciation of the Japanese yen and increased expenses related to late-stage pipeline programs, including arcotatug tavatecan (TAK-921), elritercept (TAK-226) and TAK-928.

Amortization and Impairment Losses on Intangible Assets Associated with Products

Amortization and Impairment Losses on Intangible Assets Associated with Products were JPY 218.5 billion (JPY -118.3 billion and -35.1% AER, -40.7% CER). The decrease reflected lower amortization expenses (JPY -48.4 billion) and impairment losses (JPY -69.8 billion). The decrease in amortization expenses mainly reflected the completion of amortization of intangible assets related to VYVANSE/ELVANSE, partially offset by foreign exchange impacts from the depreciation of the Japanese yen. The decrease in impairment losses was primarily attributable to impairment charges recognized in the six-month period ended September 30, 2025, including JPY 58.2 billion related to the gamma delta T-cell therapy platform and associated oncology programs following the decision to discontinue the cell therapy research.

Other Operating Income

Other Operating Income was JPY 15.5 billion (JPY -8.1 billion and -34.3% AER, -37.7% CER). The decrease was mainly due to lower gains on the divestiture of non-core products recorded in the six-month period ended September 30, 2026.

Other Operating Expenses

Other Operating Expenses were JPY 101.6 billion (JPY +28.5 billion and +39.0% AER, +25.4% CER). The increase was primarily attributable to a JPY 52.4 billion increase in restructuring expenses, reflecting ongoing implementation of the transformation program in the six-month period ended September 30, 2026. This increase was partially offset by a decrease in expenses related to pre-launch inventories compared to the six-month period ended September 30, 2025.

Operating Profit

As a result of the above factors, Operating Profit was JPY 406.7 billion (JPY +153.2 billion and +60.4% AER, +45.0% CER).

Net Finance Expenses

Net Finance Expenses were JPY 88.0 billion (JPY +15.9 billion and +22.0% AER, +15.0% CER). The increase was mainly attributable to higher interest expense relating to the unsecured U.S. dollar-denominated senior guaranteed notes issued on July 2, 2025, and the lease liability associated with the building lease in Cambridge, Massachusetts, as well as losses on the investments in convertible notes in the six-month period ended September 30, 2026.

Share of Loss of Investments Accounted for Using the Equity Method

Share of Loss of Investments Accounted for Using the Equity Method was JPY 0.0 billion (JPY -2.6 billion and -99.8% AER).

Profit Before Tax

As a result of the above factors, Profit Before Tax was JPY 318.7 billion (JPY +139.9 billion and +78.2% AER, +59.3% CER).

Income Tax Expenses

Income Tax Expenses were JPY 13.0 billion (JPY -53.3 billion and -80.4% AER, -92.6% CER). The decrease was primarily attributable to deferred tax benefits recognized in the six-month period ended September 30, 2026, reflecting a reassessment of the recoverability of deferred tax assets related to deductible temporary differences, as well as deferred tax benefits arising from capital losses generated through the restructuring of a subsidiary. This decrease was partially offset by increased tax expense due to higher pretax earnings.

Net Profit for the Period

As a result of the above factors, Net Profit for the Period was JPY 305.7 billion (JPY +193.2 billion and +171.6% AER, +148.7% CER) and Net Profit for the Period attributable to owners of the Company was JPY 305.6 billion (JPY +193.2 billion and +171.8% AER, +148.9% CER).

Takeda Pharmaceutical Company Limited (4502)

Earnings Report (Kessan Tanshin) for the Six-month

Period Ended September 30, 2026 (Consolidated)

(ii) Results of Core Financial Measures (April 1 to September 30, 2026)

Definition and Explanation of Core Financial Measures and Constant Exchange Rate Change

In addition to the financial statements in accordance with IFRS, Takeda uses the concept of Core Financial Measures for measuring financial performance. These measures are not defined by International Financial Reporting Standards (IFRS). See “Definition and Explanation of Non-IFRS Measures and U.S. Dollar Convenience Translations” in the Financial Appendix for additional information.

Results of Core Operations


	Billion JPY or percentage
	FY2025 H1	FY2026 H1	AER			CER
			JPY Change	% Change		% Change
Core revenue	2,219.5	2,407.0	187.5	8.4	%	(1.0)	%
Core operating profit	639.2	710.6	71.4	11.2	%	0.7	%
Core net profit for the period	438.7	489.7	51.0	11.6	%	(0.2)	%
Core net profit for the period attributable to owners of the Company	438.6	489.6	51.0	11.6	%	(0.2)	%
Core EPS (yen)	279	308	29	10.5	%	(1.2)	%

Core Revenue

Core Revenue for the six-month period ended September 30, 2026 was JPY 2,407.0 billion (JPY +187.5 billion and +8.4% AER, -1.0% CER). The increase compared to the same period of the previous fiscal year was primarily attributable to foreign exchange impacts from the depreciation of the Japanese yen.

Excluding the foreign exchange impacts, Core Revenue slightly declined, as broadly flat Core In-line Brands*1 and steady growth of New Launches*2 were more than offset by a decline in revenue from loss of exclusivity-impacted and mature products.

*1 Core In-line Brands refers to select products launched 6 or more years ago that generate over JPY 100.0 billion in annual revenue and are actively promoted (ENTYVIO, GATTEX/REVESTIVE, TAKECAB/VOCINTI, TAKHZYRO, immunoglobulin products, albumin products, ADCETRIS). In the six-month period ended September 30, 2026, these products represented 58% of Core Revenue and grew by 0.5% at CER.

*2 New Launches refers to select products launched within past 5 years (EOHILIA, LIVTENCITY, ADZYNMA, FRUZAQLA, QDENGA) and recently approved products ORZEYFUL and MIMRYLO. In the six-month period ended September 30, 2026, these products represented 4% of Core Revenue and grew by 17.3% at CER.

Core Operating Profit

Core Operating Profit was JPY 710.6 billion (JPY +71.4 billion and +11.2% AER, +0.7% CER). The components of Core Operating Profit are as follows:


	Billion JPY or percentage
	FY2025 H1	FY2026 H1	AER			CER
			JPY Change	% Change		% Change
Core revenue	2,219.5	2,407.0	187.5	8.4	%	(1.0)	%
Core cost of sales	(765.2)	(799.4)	(34.3)	4.5	%	(4.6)	%
Core selling, general and administrative (SG&A) expenses	(509.7)	(558.4)	(48.7)	9.6	%	0.2	%
Core research and development (R&D) expenses	(305.5)	(338.6)	(33.2)	10.9	%	2.1	%
Core operating profit	639.2	710.6	71.4	11.2	%	0.7	%

During the periods presented, these items fluctuated as follows:

Core Cost of Sales

Core Cost of Sales was JPY 799.4 billion (JPY +34.3 billion and +4.5% AER, -4.6% CER). The increase was primarily due to foreign exchange impacts from the depreciation of the Japanese yen partially offset by a lower cost ratio resulting from changes in product mix.

Takeda Pharmaceutical Company Limited (4502)

Earnings Report (Kessan Tanshin) for the Six-month

Period Ended September 30, 2026 (Consolidated)

Core Selling, General and Administrative (SG&A) Expenses

Core SG&A Expenses were JPY 558.4 billion (JPY +48.7 billion and +9.6% AER, +0.2% CER). The increase was mainly due to foreign exchange impacts from the depreciation of the Japanese yen.

Core Research and Development (R&D) Expenses

Core R&D Expenses were JPY 338.6 billion (JPY +33.2 billion and +10.9% AER, +2.1% CER). The increase was mainly attributable to foreign exchange impacts from the depreciation of the Japanese yen and increased expenses related to late-stage pipeline programs, including arcotatug tavatecan (TAK-921), elritercept (TAK-226) and TAK-928.

Core Net Profit for the Period

Core Net Profit for the Period was JPY 489.7 billion (JPY +51.0 billion and +11.6% AER, -0.2% CER) and Core Net Profit for the Period attributable to owners of the Company was JPY 489.6 billion (JPY +51.0 billion and +11.6% AER, -0.2% CER). Core Net Profit for the Period is calculated from Core Operating Profit as follows:


	Billion JPY or percentage
	FY2025 H1	FY2026 H1	AER			CER
			JPY Change	% Change		% Change
Core operating profit	639.2	710.6	71.4	11.2	%	0.7	%
Core finance income and (expenses), net	(67.1)	(79.8)	(12.6)	18.8	%	12.1	%
Core share of profit (loss) of investments accounted for using the equity method	(0.6)	(0.0)	0.6	(99.2)	%	―
Core profit before tax	571.5	630.8	59.3	10.4	%	(0.5)	%
Core income tax expenses	(132.8)	(141.1)	(8.3)	6.3	%	(1.5)	%
Core net profit for the period	438.7	489.7	51.0	11.6	%	(0.2)	%
Core net profit for the period attributable to owners of the Company	438.6	489.6	51.0	11.6	%	(0.2)	%

During the periods presented, these items fluctuated as follows:

Core Net Finance Expenses

Core Net Finance Expenses were JPY 79.8 billion (JPY +12.6 billion and +18.8% AER, +12.1% CER). The increase was mainly attributable to higher interest expense relating to the unsecured U.S. dollar-denominated senior guaranteed notes issued on July 2, 2025, and the lease liability recognized in August 2026 associated with the building lease in Cambridge, Massachusetts.

Core Share of Loss of Investments Accounted for Using the Equity Method

Core Share of Loss of Investments Accounted for Using the Equity Method was JPY 0.0 billion (JPY -0.6 billion and -99.2% AER).

Core Profit Before Tax

Core Profit Before Tax was JPY 630.8 billion (JPY +59.3 billion and +10.4% AER, -0.5% CER).

Core Income Tax Expenses

Core Income Tax Expenses were JPY 141.1 billion (JPY +8.3 billion and +6.3% AER, -1.5% CER). The increase was primarily attributable to higher Core pretax earnings in the six-month period ended September 30, 2026.

Core EPS

Core EPS was JPY 308 (JPY +29 and +10.5% AER, -1.2% CER).

Takeda Pharmaceutical Company Limited (4502)

Earnings Report (Kessan Tanshin) for the Six-month

Period Ended September 30, 2026 (Consolidated)

(2) Consolidated Financial Position


	Billion JPY
	As of		Change
	March 31, 2026	September 30, 2026
Total Assets	15,511.5	15,271.5	(240.0)
Total Liabilities	8,080.9	7,854.3	(226.5)
Total Equity	7,430.6	7,417.2	(13.5)

Assets

Total Assets as of September 30, 2026 were JPY 15,271.5 billion (JPY -240.0 billion). Intangible Assets decreased (JPY -201.3 billion), mainly due to amortization, accompanied by the effect of foreign currency translation. Goodwill decreased (JPY -124.5 billion), primarily due to the effect of foreign currency translation. In addition, Cash and Cash Equivalents decreased (JPY -176.5 billion). These decreases were partially offset by the increase of Property, Plant and Equipment (JPY +161.3 billion), mainly due to an increase in right-of-use assets associated with the building lease in Cambridge, Massachusetts.

Liabilities

Total Liabilities as of September 30, 2026 were JPY 7,854.3 billion (JPY -226.5 billion). Total Bonds and Loans were JPY 4,575.6 billion*, which decreased (JPY -306.2 billion), mainly due to the redemption of USD 1,500 million unsecured U.S. dollar-denominated senior notes during the six-month period ended September 30, 2026. The decrease was partially offset by the increase of total Other Financial Liabilities (JPY +193.0 billion), mainly due to an increase in the lease liability associated with the building lease in Cambridge, Massachusetts.

* The carrying amount of Bonds was JPY 4,350.6 billion and that of Loans was JPY 225.0 billion as of September 30, 2026. The breakdown of Bonds and Loans' carrying amount is as follows:

Bonds:

Name of Bond

(Face Value if Denominated in Foreign Currency)

Issuance

Maturity

Carrying Amount

(Billion JPY)

Unsecured US Dollar Denominated Senior Notes
(USD 500 million)

June 2015

June 2045

80.0

Unsecured Euro Denominated Senior Notes
(EUR 3,000 million)

November 2018

November 2026 ~
November 2030

533.5

Unsecured US Dollar Denominated Senior Notes
(USD 1,750 million)

November 2018

November 2028

274.0

Unsecured US Dollar Denominated Senior Notes
(USD 7,000 million)

July 2020

March 2030 ~
July 2060

1,093.0

Unsecured Euro Denominated Senior Notes
(EUR 3,600 million)

July 2020

July 2027 ~
July 2040

638.9

Unsecured JPY Denominated Senior Bonds

October 2021

October 2031

249.7

Hybrid Bonds (Subordinated Bonds)

June 2024

June 2084

458.7

Unsecured US Dollar Denominated Senior Notes
(USD 3,000 million)

July 2024

July 2034 ~
July 2064

466.0

Unsecured JPY Denominated Senior Bonds

June 2025

June 2030 ~
June 2035

183.6

Unsecured US Dollar Denominated Senior Notes
(USD 2,400 million)

July 2025

July 2035 ~
July 2055

373.3

Total

4,350.6

Takeda Pharmaceutical Company Limited (4502)

Earnings Report (Kessan Tanshin) for the Six-month

Period Ended September 30, 2026 (Consolidated)

Loans:

Name of Loan

Execution

Maturity

Carrying Amount

(Billion JPY)

Bilateral Loans

March 2023 ~
March 2026

March 2029 ~
March 2034

185.0

Syndicated Hybrid Loans (Subordinated Loans)

October 2024

October 2084

40.0

Total

225.0

On September 23, 2026, Takeda redeemed USD 1,500 million of unsecured U.S. dollar-denominated senior notes issued in September 2016 on their maturity date.

*Amounts presented in the above explanation for Bonds are based on the principal amount.

Equity

Total Equity as of September 30, 2026 was JPY 7,417.2 billion (JPY -13.5 billion). The decrease of Other Components of Equity (JPY -197.6 billion) was mainly due to a change in currency translation adjustments reflecting the appreciation of the Japanese yen. This decrease was partially offset by the increase in Retained Earnings (JPY +146.9 billion), driven by the increase of JPY 305.6 billion from Net Profit for the Period, offset by the decrease of JPY 158.2 billion related to dividend payments.

Takeda Pharmaceutical Company Limited (4502)

Earnings Report (Kessan Tanshin) for the Six-month

Period Ended September 30, 2026 (Consolidated)

(3) Consolidated Cash Flows


	Billion JPY
	FY2025 H1	FY2026 H1	Change
Net cash from operating activities	593.7	431.9	(161.8)
Net cash used in investing activities	(81.3)	(108.8)	(27.4)
Net cash used in financing activities	(226.9)	(491.4)	(264.5)
Net increase (decrease) in cash and cash equivalents	285.4	(168.3)	(453.7)
Cash and cash equivalents at the beginning of the year	385.1	595.1	209.9
Effects of exchange rate changes on cash and cash equivalents	10.9	(8.3)	(19.2)

Cash and cash equivalents at the end of the period	681.5	418.5	(263.0)

Net Cash from Operating Activities

Net Cash from Operating Activities was JPY 431.9 billion (JPY -161.8 billion). The decrease was mainly due to changes in working capital primarily resulting from an increase in Trade and Other Receivables, and net cash outflows from Settlement of Forward Exchange Contracts, Net during the six-month period ended September 30, 2026. The decrease was partially offset by favorable impacts resulting from Net Profit for the Period adjusted for non-cash items and other adjustments.

Net Cash used in Investing Activities

Net Cash used in Investing Activities was JPY 108.8 billion (JPY +27.4 billion). The increase was mainly due to an increase in cash used in Acquisition of Intangible Assets and Acquisition of Property, Plant and Equipment. The increase was partially offset by an increase in Proceeds from Sales and Redemption of Investments.

Net Cash used in Financing Activities

Net Cash used in Financing Activities was JPY 491.4 billion (JPY +264.5 billion). The increase was mainly due to cash outflows from Repayment of Bonds and Long-term Loans during the six-month period ended September 30, 2026, compared with net cash inflows from the issuance and repayments of bonds and loans during the six-month period ended September 30, 2025.

Takeda Pharmaceutical Company Limited (4502)

Earnings Report (Kessan Tanshin) for the Six-month

Period Ended September 30, 2026 (Consolidated)

(4) Outlook for the Fiscal Year Ending March 31, 2027

The full year consolidated forecast for the fiscal year ending March 31, 2027 (FY2026) has been revised from the forecast announced on May 13, 2026.

Consolidated Forecast for the Fiscal Year Ending March 31, 2027 (FY2026)


			Billion JPY or percentage
	Original Forecast (May 13, 2026)	Revised Forecast (October 29, 2026)	JPY Change	% Change
Revenue	4,640.0	4,700.0	60.0	1.3	%
Operating profit	420.0	453.0	33.0	7.9	%
Profit before tax	252.0	270.0	18.0	7.1	%
Net profit for the year (attributable to owners of the Company)	166.0	209.0	43.0	25.9	%
EPS (JPY)	104.26	131.28	27.02	25.9	%
Core revenue*	4,640.0	4,700.0	60.0	1.3	%
Core operating profit*	1,160.0	1,190.0	30.0	2.6	%
Core EPS (JPY)*	472	482	10	2.1	%

* Please refer to “Definition and Explanation of Non-IFRS Measures and U.S. Dollar Convenience Translations” in the Financial Appendix for the definition.

[Revenue]

Takeda expects FY2026 revenue to be JPY 4,700.0 billion, an increase of JPY 60.0 billion, or 1.3%, from the original forecast. The increase in revenue mainly reflects foreign exchange benefits.

The Core Revenue forecast has been revised in the same way as the Revenue forecast.

[Operating Profit]

Operating Profit is expected to increase by JPY 33.0 billion, or 7.9%, to JPY 453.0 billion, primarily attributable to higher revenue. This increase is partially offset by an expected increase in operating expenses due to foreign exchange rates and accelerated investment supporting new product launches, mainly for zasocitinib.

Core Operating Profit is expected to be JPY 1,190.0 billion, an increase of JPY 30.0 billion, or 2.6%, from the original forecast.

[Net profit for the Year (attributable to owners of the Company)]

Net profit for the Year (attributable to owners of the Company) is expected to be JPY 209.0 billion, an increase of JPY 43.0 billion, or 25.9%, from the original forecast. Profit Before Tax is expected to increase by JPY 18.0 billion, or 7.1%, to JPY 270.0 billion, reflecting an increase in net finance expenses, partially offsetting the increase in Operating Profit. While Profit Before Tax is expected to increase, tax expense is anticipated to decrease from the original forecast mainly from the reassessment of the recoverability of deferred tax assets, resulting in an assumed effective tax rate of approximately 23%.

Reported EPS is expected to be JPY 131.28, an increase of JPY 27.02, or 25.9%, and Core EPS is expected to be JPY 482, an increase of JPY 10, or 2.1%.

Takeda Pharmaceutical Company Limited (4502)

Earnings Report (Kessan Tanshin) for the Six-month

Period Ended September 30, 2026 (Consolidated)

Major assumptions used in preparing the FY2026 Forecast

Billion JPY or percentage

Original Forecast
(May 13, 2026)

Revised Forecast

(October 29, 2026)

FX rates

Full Year

USD/JPY
EUR/JPY
RUB/JPY
CNY/JPY
BRL/JPY

156 JPY

182 JPY

2.0 JPY

22.4 JPY

29.5 JPY

158 JPY

182 JPY

2.0 JPY

23.5 JPY

30.7 JPY

157 JPY

180 JPY

1.9 JPY

23.4 JPY

30.2 JPY

Cost of sales

(1,625.0)

(1,617.0)

SG&A expenses

(1,093.0)

(1,141.0)

R&D expenses

(762.0)

(752.0)

Amortization of intangible assets associated with products

(413.5)

(409.0)

Impairment of intangible assets associated with products*2

(100.0)

Other operating income

2.5

16.0

Other operating expenses*3

(229.0)

(244.0)

Finance income and (expenses), net

(170.0)

(184.0)

Adjusted free cash flow*1

650.0 to 750.0

700.0 to 800.0

Capital expenditures (cash flow base)

(330.0) to (380.0)

Depreciation and amortization (excluding intangible assets associated with products)

(235.0)

Cash tax rate on adjusted EBITDA (excluding divestitures)*1

Low 10s%

*1 Please refer to “Definition and Explanation of Non-IFRS Measures and U.S. Dollar Convenience Translations” in the Financial Appendix for the definition.

*2 Includes in-process R&D.

*3 Includes restructuring expenses of JPY160.0 billion in Revised Forecast, primarily related to the transformation program, compared with the Original Forecast of JPY 170.0 billion.

Management Guidance for the Fiscal Year Ending March 31, 2027 (FY2026)


		CER % Change*
	Original Management Guidance (May 13, 2026)	Revised Management Guidance (October 29, 2026)
Core revenue	Low-single digit % decline	Low-single digit % decline
Core operating profit	5% to 8% decline	Mid-single digit % decline
Core EPS	Mid-teens % decline	Low-teens % decline

* Please refer to “Definition and Explanation of Non-IFRS Measures and U.S. Dollar Convenience Translations” in the Financial Appendix for the definition.

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. See “Important Notice—Forward-Looking Statements” in the Financial Appendix, including the documents mentioned therein. Should any significant event occur which requires the forecast to be revised, the Company will disclose it in a timely manner.

Takeda Pharmaceutical Company Limited (4502)

Earnings Report (Kessan Tanshin) for the Six-month

Period Ended September 30, 2026 (Consolidated)

(5) Interim Dividend for Fiscal 2026

Takeda maintains its annual dividend projection of JPY 204 per share.

For the six-month period ended September 30, 2026, Takeda's Board of Directors approved the payment of an interim dividend of JPY 102 per share. The dividend will be paid from December 1, 2026.

Takeda Pharmaceutical Company Limited (4502)

Earnings Report (Kessan Tanshin) for the Six-month

Period Ended September 30, 2026 (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)
	Six-month Period Ended September 30,
	2025	2026
Revenue	2,219,481	2,406,997
Cost of sales	(764,736)	(798,769)
Selling, general and administrative expenses	(509,436)	(558,227)
Research and development expenses	(305,373)	(338,624)
Amortization and impairment losses on intangible assets associated with products	(336,793)	(218,516)
Other operating income	23,519	15,463
Other operating expenses	(73,101)	(101,585)
Operating profit	253,561	406,739
Finance income	118,154	39,177
Finance expenses	(190,296)	(127,224)
Share of loss of investments accounted for using the equity method	(2,615)	(4)
Profit before tax	178,804	318,688
Income tax expenses	(66,254)	(12,972)
Net profit for the period	112,550	305,716
Attributable to:
Owners of the Company	112,441	305,626
Non-controlling interests	108	89
Net profit for the period	112,550	305,716
Earnings per share (JPY)
Basic earnings per share	71.57	192.53
Diluted earnings per share	70.45	189.52

Takeda Pharmaceutical Company Limited (4502)

Earnings Report (Kessan Tanshin) for the Six-month

Period Ended September 30, 2026 (Consolidated)

(2) Condensed Interim Consolidated Statements of Comprehensive Income


	JPY (millions)
	Six-month Period Ended September 30,
	2025	2026
Net profit for the period	112,550	305,716
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	27,311	(8,867)
Remeasurement of defined benefit pension plans	757	3,140
	28,067	(5,727)
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations	204,959	(189,760)

Cash flow hedges	16,611	(6,937)
Hedging cost	3,458	3,919
Share of other comprehensive loss of investments accounted for using the equity method	(260)	(110)
	224,768	(192,888)
Other comprehensive income (loss) for the period, net of tax	252,835	(198,615)
Total comprehensive income for the period	365,385	107,101
Attributable to:
Owners of the Company	365,288	107,076
Non-controlling interests	97	25
Total comprehensive income for the period	365,385	107,101

Takeda Pharmaceutical Company Limited (4502)

Earnings Report (Kessan Tanshin) for the Six-month

Period Ended September 30, 2026 (Consolidated)

(3) Condensed Interim Consolidated Statements of Financial Position


	JPY (millions)
	As of March 31, 2026	As of September 30, 2026
ASSETS
Non-current assets:
Property, plant and equipment	2,120,639	2,281,914
Goodwill	5,809,010	5,684,518
Intangible assets	3,419,348	3,218,033
Investments accounted for using the equity method	8,796	8,617
Other financial assets	439,941	399,638
Other non-current assets	77,010	74,100
Deferred tax assets	546,260	607,522
Total non-current assets	12,421,004	12,274,342
Current assets:
Inventories	1,396,620	1,441,087
Trade and other receivables	844,312	872,682
Other financial assets	41,888	35,868
Income taxes receivable	32,036	37,563
Other current assets	162,638	178,077
Cash and cash equivalents	595,054	418,533
Assets held for sale	17,955	13,346
Total current assets	3,090,503	2,997,156
Total assets	15,511,506	15,271,498

Takeda Pharmaceutical Company Limited (4502)

Earnings Report (Kessan Tanshin) for the Six-month

Period Ended September 30, 2026 (Consolidated)


	JPY (millions)
	As of March 31, 2026	As of September 30, 2026
LIABILITIES AND EQUITY
LIABILITIES
Non-current liabilities:
Bonds and loans	4,369,681	4,174,676
Other financial liabilities	571,248	781,767
Net defined benefit liabilities	143,683	132,188

Provisions	37,550	34,378
Other non-current liabilities	99,818	103,476
Deferred tax liabilities	26,804	24,287
Total non-current liabilities	5,248,784	5,250,773
Current liabilities:
Bonds and loans	512,157	400,974
Trade and other payables	491,345	486,196
Other financial liabilities	141,220	123,713
Income taxes payable	97,880	117,080
Provisions	998,501	962,143
Other current liabilities	590,152	512,675
Liabilities held for sale	818	769
Total current liabilities	2,832,074	2,603,549
Total liabilities	8,080,858	7,854,322
EQUITY
Share capital	1,695,277	1,722,947
Share premium	1,776,352	1,758,304
Treasury shares	(49,128)	(20,913)
Retained earnings	712,381	859,247
Other components of equity	3,297,407	3,099,816
Other comprehensive income associated with assets held for sale	(2,848)	(3,216)
Equity attributable to owners of the Company	7,429,441	7,416,185
Non-controlling interests	1,208	991
Total equity	7,430,649	7,417,176
Total liabilities and equity	15,511,506	15,271,498

Takeda Pharmaceutical Company Limited (4502)

Earnings Report (Kessan Tanshin) for the Six-month

Period Ended September 30, 2026 (Consolidated)

(4) Condensed Interim Consolidated Statements of Changes in Equity

Six-month period ended September 30, 2025 (From April 1 to September 30, 2025)


	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, 2025	1,694,685	1,775,713	(74,815)	1,187,586	2,419,978	4,757



Net profit for the period				112,441
Other comprehensive income (loss)					204,710	27,311
Comprehensive income (loss) for the period	—	—	—	112,441	204,710	27,311
Transactions with owners:
Issuance of new shares	74	74
Acquisition of treasury shares		(20)	(51,610)

Dividends				(154,411)

Transfers from other components of equity				3,042		(2,285)
Share-based compensation		36,219
Exercise of share-based awards		(77,301)	77,301
Transfer to other comprehensive income associated with assets held for sale					3,595

Total transactions with owners	74	(41,028)	25,691	(151,369)	3,595	(2,285)
As of September 30, 2025	1,694,759	1,734,685	(49,124)	1,148,658	2,628,283	29,782


	Equity attributable to owners of the Company
	Other components of equity				Other comprehensive income related to assets held for sale	Total equity attributable to owners of the Company
	Cash flow hedges	Hedging cost	Remeasurements of defined benefit pension plans	Total other components of equity			Non- controlling interests	Total equity
As of April 1, 2025	(64,852)	(7,967)	—	2,351,915	—	6,935,084	895	6,935,979



Net profit for the period				—		112,441	108	112,550
Other comprehensive income (loss)	16,611	3,458	757	252,847		252,847	(11)	252,835
Comprehensive income (loss) for the period	16,611	3,458	757	252,847	—	365,288	97	365,385
Transactions with owners:
Issuance of new shares				—		148		148
Acquisition of treasury shares				—		(51,630)		(51,630)

Dividends				—		(154,411)		(154,411)

Transfers from other components of equity			(757)	(3,042)		—		—
Share-based compensation				—		36,219		36,219
Exercise of share-based awards				—		—		—
Transfer to other comprehensive income associated with assets held for sale				3,595	(3,595)	—		—

Total transactions with owners	—	—	(757)	553	(3,595)	(169,674)	—	(169,674)
As of September 30, 2025	(48,241)	(4,509)	—	2,605,315	(3,595)	7,130,697	992	7,131,690

Takeda Pharmaceutical Company Limited (4502)

Earnings Report (Kessan Tanshin) for the Six-month

Period Ended September 30, 2026 (Consolidated)

Six-month period ended September 30, 2026 (From April 1 to September 30, 2026)


	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, 2026	1,695,277	1,776,352	(49,128)	712,381	3,326,132	11,986



Net profit for the period				305,626
Other comprehensive income (loss)					(198,399)	(8,867)
Comprehensive income (loss) for the period	—	—	—	305,626	(198,399)	(8,867)
Transactions with owners:
Issuance of new shares	27,669	27,669
Acquisition of treasury shares			(1,014)

Dividends				(158,169)

Transfers from other components of equity				(591)		3,731
Share-based compensation		37,956
Exercise of share-based awards		(83,673)	29,229
Transfer to other comprehensive income associated with assets held for sale					8,961

Total transactions with owners	27,669	(18,047)	28,215	(158,760)	8,961	3,731
As of September 30, 2026	1,722,947	1,758,304	(20,913)	859,247	3,136,695	6,851


	Equity attributable to owners of the Company
	Other components of equity				Other comprehensive income related to assets held for sale	Total equity attributable to owners of the Company
	Cash flow hedges	Hedging cost	Remeasurements of defined benefit pension plans	Total other components of equity			Non- controlling interests	Total equity
As of April 1, 2026	(35,903)	(4,808)	—	3,297,407	(2,848)	7,429,441	1,208	7,430,649



Net profit for the period				—		305,626	89	305,716
Other comprehensive income (loss)	(6,937)	3,919	3,140	(207,143)	8,593	(198,550)	(64)	(198,615)
Comprehensive income (loss) for the period	(6,937)	3,919	3,140	(207,143)	8,593	107,076	25	107,101
Transactions with owners:
Issuance of new shares				—		55,339		55,339
Acquisition of treasury shares				—		(1,014)		(1,014)

Dividends				—		(158,169)	(242)	(158,411)

Transfers from other components of equity			(3,140)	591		—		—
Share-based compensation				—		37,956		37,956
Exercise of share-based awards				—		(54,444)		(54,444)
Transfer to other comprehensive income associated with assets held for sale				8,961	(8,961)	—		—

Total transactions with owners	—	—	(3,140)	9,553	(8,961)	(120,332)	(242)	(120,574)
As of September 30, 2026	(42,840)	(889)	—	3,099,816	(3,216)	7,416,185	991	7,417,176

Takeda Pharmaceutical Company Limited (4502)

Earnings Report (Kessan Tanshin) for the Six-month

Period Ended September 30, 2026 (Consolidated)

(5) Condensed Interim Consolidated Statements of Cash Flows


	JPY (millions)
	Six-month Period Ended September 30,
	2025	2026
Cash flows from operating activities:
Net profit for the period	112,550	305,716
Depreciation and amortization	366,618	327,473
Impairment losses	87,143	30,855
Equity-settled share-based compensation	35,262	37,593

Loss on sales and disposal of property, plant and equipment	916	759
Loss (gain) on divestment of business and subsidiaries	(17,929)	2,074

Change in fair value of financial assets and liabilities associated with contingent consideration arrangements, net	989	30
Finance (income) and expenses, net	72,142	88,047
Share of loss of investments accounted for using the equity method	2,615	4
Income tax expenses	66,254	12,972
Changes in assets and liabilities:
Decrease (increase) in trade and other receivables	38,286	(30,320)
Increase in inventories	(42,031)	(75,653)
Decrease in trade and other payables	(11,242)	(13,636)
Increase (decrease) in provisions	8,533	(21,707)
Decrease in other financial liabilities	(5,309)	(28,569)
Settlement of forward exchange contracts, net	75,364	(16,126)
Other, net	(110,154)	(114,298)
Cash generated from operations	680,006	505,215
Income taxes paid	(91,891)	(77,247)
Tax refunds and interest on tax refunds received	5,535	3,923
Net cash from operating activities	593,651	431,890
Cash flows from investing activities:
Interest received	7,726	9,222
Dividends received	584	233
Acquisition of property, plant and equipment	(88,008)	(98,501)
Proceeds from sales of property, plant and equipment	6,385	1,459
Acquisition of intangible assets	(39,885)	(60,457)

Acquisition of investments	(229)	(1,122)
Proceeds from sales and redemption of investments	4,010	17,402
Acquisition of shares in associates	(623)	(200)
Proceeds from sales of shares in associates	686	—

Proceeds from sales of business, net of cash and cash equivalents divested	29,645	22,736


Settlement of forward exchange contracts designated as net investment hedges, net	(1,536)	—
Other, net	(82)	453
Net cash used in investing activities	(81,326)	(108,774)

Takeda Pharmaceutical Company Limited (4502)

Earnings Report (Kessan Tanshin) for the Six-month

Period Ended September 30, 2026 (Consolidated)


	JPY (millions)
	Six-month Period Ended September 30,
	2025	2026
Cash flows from financing activities:
Net decrease in short-term loans and commercial papers	(341,780)	—
Proceeds from issuance of bonds and long-term loans	526,060	—
Repayments of bonds and long-term loans	(125,385)	(239,624)


Acquisition of treasury shares	(51,603)	(1,007)
Interest paid	(52,296)	(66,447)
Dividends paid	(154,082)	(157,865)

Repayments of lease liabilities	(22,318)	(21,685)

Other, net	(5,476)	(4,742)
Net cash used in financing activities	(226,881)	(491,370)
Net increase (decrease) in cash and cash equivalents	285,444	(168,254)



Cash and cash equivalents at the beginning of the year	385,113	595,054
Effects of exchange rate changes on cash and cash equivalents	10,929	(8,267)
Cash and cash equivalents at the end of the period	681,486	418,533

Takeda Pharmaceutical Company Limited (4502)

Earnings Report (Kessan Tanshin) for the Six-month

Period Ended September 30, 2026 (Consolidated)

(6) Notes to Condensed Interim Consolidated Financial Statements

(Significant Uncertainty Regarding Going Concern Assumption)

Not applicable.

(Material Accounting Policies)

Material accounting policies adopted for the condensed interim consolidated financial statements are the same as those adopted for the consolidated financial statements as of and for the fiscal year ended March 31, 2026.

Takeda calculated income tax expenses for the six-month period ended September 30, 2026, based on the estimated average annual effective tax rate.

(Operating Segment Information)

Takeda comprises a single operating segment and is engaged in the research, development, manufacturing, marketing and out-licensing of pharmaceutical products. This is consistent with how the financial information is viewed in allocating resources, measuring performance, and forecasting future periods by the CEO who is Takeda’s Chief Operating Decision Maker.

(Significant Subsequent Events)

Not applicable.

Exhibit 99.1


			FINANCIAL APPENDIX


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
	FY2026 H1 Reported Results with CER % Change	A-4
	FY2026 Q2 (Jul - Sep) Reported Results with CER % Change	A-5
	FY2026 H1 Core Results with CER % Change	A-6
	FY2026 Q2 (Jul-Sep) Core Results with CER % Change	A-7
	FY2026 H1 Reconciliation from Reported to Core	A-8
	FY2026 Q2 (Jul-Sep) Reconciliation from Reported to Core	A-9
	FY2025 H1 Reconciliation from Reported to Core	A-10
	FY2025 Q2 (Jul-Sep) Reconciliation from Reported to Core	A-11
	FY2026 H1 Adjusted Free Cash Flow	A-12
	FY2026 H1 Adjusted Net Debt to Adjusted EBITDA	A-13
	FY2025 Adjusted Net Debt to Adjusted EBITDA	A-14
	FY2026 H1 Net Profit to Adjusted EBITDA Bridge	A-15
	FY2026 H1 Net Profit to Adjusted EBITDA LTM Bridge	A-16
	FY2026 H1 CAPEX, Depreciation and Amortization and Impairment Losses	A-17

	FY2026 Full Year Detailed Forecast	A-18
	FY2026 Full Year Reconciliation from Reported Operating Profit to Core Operating Profit Forecast	A-19
	FY2026 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


			Definition and Explanation of Non-IFRS Measures and U.S. Dollar Convenience Translations

Core Financial Measures

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, 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 foreign exchange gains and losses arising directly from, or economically attributable to items excluded from the Core Financial Measures. Core Net Profit for the Year attributable to owners of the Company is also adjusted to eliminate the tax effect associated with each of these 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).

Constant Exchange Rate (“CER”) Change

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.

A-1

Free Cash Flow and Adjusted Free Cash Flow

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.

EBITDA and Adjusted EBITDA

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.

A-2

Net Debt and Adjusted Net Debt

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 current quarter and the use of relevant spot rates for new non-JPY debt incurred and existing non-JPY debt redeemed during the current quarter, 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 them 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 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.

U.S. Dollar Convenience Translations

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 = 157.25 JPY, the Noon Buying Rate certified by the Federal Reserve Bank of New York on September 30, 2026. 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.

A-3


			FY2026 H1 Reported Results with CER % Change


(Billion JPY, except EPS)	FY2025 H1		FY2026 H1		AER			CER		(Million USD, except EPS) FY2026 H1 Convenience USD Translation
					JPY Change	% Change		% Change
Revenue	2,219.5		2,407.0		187.5	8.4	%	(1.0)	%		15,307
Cost of sales	(764.7)		(798.8)		(34.0)	(4.5)	%	4.6	%		(5,080)
Gross profit	1,454.7		1,608.2		153.5	10.6	%	0.8	%		10,227
Margin	65.5	%	66.8	%		1.3	pp	1.2	pp		66.8	%
SG&A expenses	(509.4)		(558.2)		(48.8)	(9.6)	%	(0.3)	%		(3,550)
R&D expenses	(305.4)		(338.6)		(33.3)	(10.9)	%	(2.1)	%		(2,153)
Amortization of intangible assets associated with products	(260.8)		(212.3)		48.4	18.6	%	25.7	%		(1,350)
Impairment losses on intangible assets associated with products*	(76.0)		(6.2)		69.8	91.8	%	91.9	%		(39)
Other operating income	23.5		15.5		(8.1)	(34.3)	%	(37.7)	%		98
Other operating expenses	(73.1)		(101.6)		(28.5)	(39.0)	%	(25.4)	%		(646)
Operating profit	253.6		406.7		153.2	60.4	%	45.0	%		2,587
Margin	11.4	%	16.9	%		5.5	pp	5.3	pp		16.9	%
Finance income	118.2		39.2		(79.0)	(66.8)	%	(68.0)	%		249
Finance expenses	(190.3)		(127.2)		63.1	33.1	%	36.5	%		(809)
Share of profit (loss) of investments accounted for using the equity method	(2.6)		(0.0)		2.6	99.8	%	―			(0)
Profit before tax	178.8		318.7		139.9	78.2	%	59.3	%		2,027
Income tax (expenses) benefit	(66.3)		(13.0)		53.3	80.4	%	92.6	%		(82)
Net profit for the period	112.5		305.7		193.2	171.6	%	148.7	%		1,944
Non-controlling interests	(0.1)		(0.1)		0.0	17.6	%	20.2	%		(1)
Net profit attributable to owners of the Company	112.4		305.6		193.2	171.8	%	148.9	%		1,944
Basic EPS (JPY or USD)	71.57		192.53		120.96	169.0	%	146.3	%		1.22

* 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.

A-4


			FY2026 Q2 (Jul - Sep) Reported Results with CER % Change


(Billion JPY, except EPS)	FY2025 Q2 (Jul-Sep)		FY2026 Q2 (Jul-Sep)		AER			CER		(Million USD, except EPS) FY2026 Q2 (Jul-Sep) Convenience USD Translation
					JPY Change	% Change		% Change
Revenue	1,112.8		1,187.1		74.3	6.7	%	(1.6)	%		7,549
Cost of sales	(380.1)		(392.1)		(12.0)	(3.2)	%	4.7	%		(2,493)
Gross profit	732.7		795.0		62.3	8.5	%	0.0	%		5,056
Margin	65.8	%	67.0	%		1.1	pp	1.1	pp		67.0	%
SG&A expenses	(253.6)		(271.7)		(18.2)	(7.2)	%	1.1	%		(1,728)
R&D expenses	(161.5)		(171.2)		(9.7)	(6.0)	%	2.0	%		(1,089)
Amortization of intangible assets associated with products	(131.4)		(106.8)		24.6	18.7	%	25.3	%		(679)
Impairment losses on intangible assets associated with products*	(73.7)		(0.8)		73.0	99.0	%	99.0	%		(5)
Other operating income	1.5		7.2		5.7	383.9	%	356.0	%		46
Other operating expenses	(45.0)		(46.4)		(1.3)	(2.9)	%	4.6	%		(295)
Operating profit	69.0		205.3		136.3	197.6	%	173.6	%		1,306
Margin	6.2	%	17.3	%		11.1	pp	11.0	pp		17.3	%
Finance income	44.4		47.7		3.3	7.4	%	6.1	%		303
Finance expenses	(83.1)		(96.5)		(13.3)	(16.1)	%	(9.4)	%		(614)
Share of profit (loss) of investments accounted for using the equity method	(2.1)		(0.5)		1.5	73.9	%	80.4	%		(3)
Profit before tax	28.2		156.0		127.8	453.6	%	412.9	%		992
Income tax (expenses) benefit	(39.9)		36.5		76.4	―		―			232
Net profit (loss) for the period	(11.7)		192.5		204.2	―		―			1,224
Non-controlling interests	(0.1)		(0.0)		0.0	58.8	%	58.0	%		(0)
Net profit (loss) attributable to owners of the Company	(11.8)		192.4		204.2	―		―			1,224
Basic EPS (JPY or USD)	(7.49)		120.79		128.28	―		―			0.77

* Includes in-process R&D

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

A-5


			FY2026 H1 Core Results with CER % Change


(Billion JPY, except EPS)	FY2025 H1		FY2026 H1		AER			CER		(Million USD, except EPS) FY2026 H1 Convenience USD Translation
					JPY Change	% Change		% Change
Revenue	2,219.5		2,407.0		187.5	8.4	%	(1.0)	%		15,307
Cost of sales	(765.2)		(799.4)		(34.3)	(4.5)	%	4.6	%		(5,084)
Gross profit	1,454.3		1,607.6		153.2	10.5	%	0.8	%		10,223
Margin	65.5	%	66.8	%		1.3	pp	1.2	pp		66.8	%
SG&A expenses	(509.7)		(558.4)		(48.7)	(9.6)	%	(0.2)	%		(3,551)
R&D expenses	(305.5)		(338.6)		(33.2)	(10.9)	%	(2.1)	%		(2,153)
Operating profit	639.2		710.6		71.4	11.2	%	0.7	%		4,519
Margin	28.8	%	29.5	%		0.7	pp	0.5	pp		29.5	%
Finance income	117.7		39.8		(77.8)	(66.1)	%	(67.3)	%		253
Finance expenses	(184.8)		(119.6)		65.2	35.3	%	38.5	%		(761)
Share of profit (loss) of investments accounted for using the equity method	(0.6)		(0.0)		0.6	99.2	%	―			(0)
Profit before tax	571.5		630.8		59.3	10.4	%	(0.5)	%		4,012
Income tax (expenses) benefit	(132.8)		(141.1)		(8.3)	(6.3)	%	1.5	%		(897)
Net profit for the period	438.7		489.7		51.0	11.6	%	(0.2)	%		3,114
Non-controlling interests	(0.1)		(0.1)		0.0	17.6	%	20.2	%		(1)
Net profit attributable to owners of the Company	438.6		489.6		51.0	11.6	%	(0.2)	%		3,114
Basic EPS (JPY or USD)	279		308		29	10.5	%	(1.2)	%		1.96

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

A-6


			FY2026 Q2 (Jul-Sep) Core Results with CER % Change


(Billion JPY, except EPS)	FY2025 Q2 (Jul-Sep)		FY2026 Q2 (Jul-Sep)		AER			CER		(Million USD, except EPS) FY2026 Q2 (Jul-Sep) Convenience USD Translation
					JPY Change	% Change		% Change
Revenue	1,112.8		1,187.1		74.3	6.7	%	(1.6)	%		7,549
Cost of sales	(380.2)		(392.4)		(12.1)	(3.2)	%	4.7	%		(2,495)
Gross profit	732.6		794.7		62.2	8.5	%	(0.0)	%		5,054
Margin	65.8	%	66.9	%		1.1	pp	1.1	pp		66.9	%
SG&A expenses	(253.7)		(271.8)		(18.1)	(7.1)	%	1.1	%		(1,728)
R&D expenses	(161.5)		(171.2)		(9.7)	(6.0)	%	2.1	%		(1,089)
Operating profit	317.4		351.7		34.3	10.8	%	1.9	%		2,237
Margin	28.5	%	29.6	%		1.1	pp	1.0	pp		29.6	%
Finance income	44.7		48.3		3.7	8.3	%	6.9	%		307
Finance expenses	(80.5)		(90.9)		(10.4)	(12.9)	%	(6.6)	%		(578)
Share of profit (loss) of investments accounted for using the equity method	(0.5)		(0.5)		(0.1)	(17.4)	%	11.8	%		(3)
Profit before tax	281.1		308.6		27.6	9.8	%	1.4	%		1,963
Income tax (expenses) benefit	(79.5)		(61.8)		17.6	22.2	%	26.4	%		(393)
Net profit for the period	201.6		246.8		45.2	22.4	%	12.4	%		1,569
Non-controlling interests	(0.1)		(0.0)		0.0	58.8	%	58.0	%		(0)
Net profit attributable to owners of the Company	201.6		246.8		45.2	22.4	%	12.4	%		1,569
Basic EPS (JPY or USD)	128		155		27	21.0	%	11.1	%		0.99

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

A-7


			FY2026 H1 Reconciliation from Reported to Core


(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	2,407.0						2,407.0
Cost of sales	(798.8)					(0.7)	(799.4)
Gross profit	1,608.2					(0.7)	1,607.6
SG&A expenses	(558.2)					(0.2)	(558.4)
R&D expenses	(338.6)					0.0	(338.6)
Amortization of intangible assets associated with products	(212.3)		212.3				—
Impairment losses on intangible assets associated with products*	(6.2)			6.2			—
Other operating income	15.5				(15.5)		—
Other operating expenses	(101.6)				101.6		—
Operating profit	406.7		212.3	6.2	86.1	(0.8)	710.6
Margin	16.9	%					29.5	%
Finance income and (expenses), net	(88.0)					8.3	(79.8)
Share of profit (loss) of investments accounted for using the equity method	(0.0)						(0.0)
Profit before tax	318.7		212.3	6.2	86.1	7.5	630.8
Income tax (expenses) benefit	(13.0)		(43.3)	(1.9)	(18.8)	(64.1)	(141.1)
Non-controlling interests	(0.1)						(0.1)
Net profit attributable to owners of the Company	305.6		169.0	4.3	67.3	(56.6)	489.6
Basic EPS (JPY)	193						308
Number of shares (millions)	1,587						1,587

* Includes in-process R&D.

A-8


			FY2026 Q2 (Jul-Sep) Reconciliation from Reported to Core


(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	1,187.1						1,187.1
Cost of sales	(392.1)					(0.3)	(392.4)
Gross profit	795.0					(0.3)	794.7
SG&A expenses	(271.7)					(0.1)	(271.8)
R&D expenses	(171.2)					0.0	(171.2)
Amortization of intangible assets associated with products	(106.8)		106.8				—
Impairment losses on intangible assets associated with products*	(0.8)			0.8			—
Other operating income	7.2				(7.2)		—
Other operating expenses	(46.4)				46.4		—
Operating profit	205.3		106.8	0.8	39.2	(0.4)	351.7
Margin	17.3	%					29.6	%
Finance income and (expenses), net	(48.8)					6.3	(42.5)
Share of profit (loss) of investments accounted for using the equity method	(0.5)						(0.5)
Profit before tax	156.0		106.8	0.8	39.2	5.9	308.6
Income tax (expenses) benefit	36.5		(20.9)	(0.2)	(9.0)	(68.2)	(61.8)
Non-controlling interests	(0.0)						(0.0)
Net profit attributable to owners of the Company	192.4		85.9	0.6	30.1	(62.2)	246.8
Basic EPS (JPY)	121						155
Number of shares (millions)	1,593						1,593

* Includes in-process R&D.

A-9


			FY2025 H1 Reconciliation from Reported to Core


(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

* Includes in-process R&D.

A-10


			FY2025 Q2 (Jul-Sep) Reconciliation from Reported to Core


(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 (loss) 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

* Includes in-process R&D.

A-11


			FY2026 H1 Adjusted Free Cash Flow


(Billion JPY)	FY2025 H1	FY2026 H1	JPY Change	% Change		(Million USD) FY2026 H1 Convenience USD Translation
Net profit	112.5	305.7	193.2	171.6	%	1,944
Depreciation and amortization, and impairment losses	453.8	358.3	(95.4)			2,279
Decrease (increase) in trade working capital	(15.0)	(119.6)	(104.6)			(761)
Income taxes paid	(91.9)	(77.2)	14.6			(491)
Tax refunds and interest on tax refunds received	5.5	3.9	(1.6)			25
Settlement of forward exchange contracts, net	75.4	(16.1)	(91.5)			(103)
Other	53.3	(23.1)	(76.4)			(147)
Net cash from operating activities (Operating Cash Flow)	593.7	431.9	(161.8)	(27.2)	%	2,747
Acquisition of PP&E	(88.0)	(98.5)	(10.5)			(626)
Free Cash Flow*1	505.6	333.4	(172.3)	(34.1)	%	2,120
Adjustment for cash temporarily held by Takeda on behalf of third parties*2	19.8	28.4	8.7			181
Proceeds from sales of PP&E	6.4	1.5	(4.9)			9
Acquisition of intangible assets*3	(39.9)	(60.5)	(20.6)			(384)

Acquisition of investments	(0.2)	(1.1)	(0.9)			(7)
Proceeds from sales and redemption of investments	4.0	1.4	(2.6)			9
Acquisition of shares in associates	(0.6)	(0.2)	0.4			(1)
Proceeds from sales of shares in associates	0.7	—	(0.7)			—

Proceeds from sales of business, net of cash and cash equivalents divested	29.6	22.7	(6.9)			145
Adjusted Free Cash Flow*1	525.4	325.7	(199.7)	(38.0)	%	2,071

*1 Please refer to Definition and Explanation of Non-IFRS Measures and U.S. Dollar Convenience Translations for the definitions of Free Cash Flow and Adjusted Free Cash Flow.

*2 Adjustment for cash temporarily held by Takeda on behalf of third parties refers to changes in cash balances that are temporarily held by Takeda on behalf of third parties related to vaccine operations and the trade receivables sales program, which are not available to Takeda’s immediate or general business use.

*3 Proceeds from sales of intangible assets are included in cash flow from operating activities, except certain immaterial transactions.

A-12

FY2026 H1 Adjusted Net Debt to Adjusted EBITDA


ADJUSTED NET DEBT/ADJUSTED EBITDA RATIO		NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(Billion JPY)	FY2026 H1	(Billion JPY)	FY2025 H1	FY2026 H1	JPY Change	% Change
Book value of bonds and loans on consolidated statement of financial position	(4,575.6)	Net cash from operating activities (Operating Cash Flow)	593.7	431.9	(161.8)	(27.2)	%
		Acquisition of PP&E	(88.0)	(98.5)
Cash & cash equivalents	418.5	Proceeds from sales of PP&E	6.4	1.5
Net Debt*1	(4,157.1)	Acquisition of intangible assets	(39.9)	(60.5)

Application of equity credit*2	250.0	Acquisition of investments	(0.2)	(1.1)
FX adjustment*3	(27.0)	Proceeds from sales and redemption of investments	4.0	17.4
Cash temporarily held by Takeda on behalf of third parties*4	(50.7)	Acquisition of shares in associates	(0.6)	(0.2)
Level 1 debt investments*4	67.0	Proceeds from sales of shares in associates	0.7	—

Adjusted Net Debt*1	(3,917.9)	Proceeds from sales of business, net of cash and cash equivalents divested	29.6	22.7
		Settlement of forward exchange contracts designated as net investment hedges, net	(1.5)	—
Adjusted EBITDA (LTM)*5	1,540.3	Net increase (decrease) in short-term loans and commercial papers	(341.8)	—

		Repayment of long-term loans	(10.1)	(0.0)
Adjusted Net Debt/Adjusted EBITDA ratio	2.5x	Proceeds from issuance of bonds	526.1	—
		Repayment of bonds	(115.3)	(239.6)

Book value of bonds and loans on consolidated statement of financial position	(4,575.6)	Acquisition of treasury shares	(51.6)	(1.0)
		Interest paid	(52.3)	(66.4)
Application of equity credit*2	250.0	Dividends paid	(154.1)	(157.9)
FX adjustment*3	(27.0)	Others	(19.6)	(16.5)
Adjusted Gross Debt	(4,352.6)	Net increase (decrease) in cash and cash equivalents	285.4	(168.3)	(453.7)	—

*1 Please refer to Definition and Explanation of Non-IFRS Measures and U.S. Dollar Convenience Translations for the definitions of Net Debt and Adjusted Net Debt.

*2 Application of equity credit includes JPY 250.0 billion reduction in debt due to a 50% equity credit applied to JPY 500.0 billion principal amount of our hybrid (subordinated) bonds and loans by S&P Global Rating Japan, given that those instruments qualify for certain equity credit for leverage purposes.

*3 FX adjustment refers to change from month-end rate to average rate used for non-JPY debt calculation outstanding at the beginning of the current quarter to match with adjusted EBITDA (which is calculated based on average rates). New non-JPY debt incurred and existing non-JPY debt redeemed during the current quarter are translated to JPY at relevant spot rates as of the relevant date.

*4 Adjustments related to cash temporarily held by Takeda on behalf of third parties related to the trade receivables sales program, which is not available to Takeda’s immediate or general business use, and debt investments classified as Level 1 in the fair value hierarchy being recorded as Other Financial Assets.

*5 LTM represents Last Twelve Months (October 2025 - September 2026). Calculated by subtracting FY2025 H1 from FY2025 Full Year and adding FY2026 H1.

A-13


			FY2025 Adjusted Net Debt to Adjusted EBITDA


ADJUSTED NET DEBT/ADJUSTED EBITDA RATIO		NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(Billion JPY)	FY2025	(Billion JPY)	FY2024	FY2025	JPY Change	% Change
Book value of bonds and loans on consolidated statement of financial position	(4,881.8)	Net cash from operating activities (Operating Cash Flow)	1,057.2	1,041.4	(15.8)	(1.5)	%
		Acquisition of PP&E	(200.8)	(176.0)
Cash & cash equivalents	595.1	Proceeds from sales of PP&E	0.1	6.5
Net Debt*1	(4,286.8)	Acquisition of intangible assets	(147.0)	(234.9)
Application of equity credit*2	250.0	Acquisition of option to license	(31.8)	(3.7)
FX adjustment*3	213.2	Acquisition of investments	(97.5)	(15.9)
Cash temporarily held by Takeda on behalf of third parties*4	(79.2)	Proceeds from sales and redemption of investments	29.4	7.0
Level 1 debt investments*4	85.1	Acquisition of shares in associates	(1.0)	(0.6)
Adjusted Net Debt*1	(3,817.6)	Proceeds from sales of shares in associates	57.7	0.9
		Proceeds from sales of business, net of cash and cash equivalents divested	20.6	33.3
Adjusted EBITDA	1,457.2	Settlement of forward exchange contracts designated as net investment hedges, net	(13.8)	(1.5)
		Net increase (decrease) in short-term loans and commercial papers	27.5	(341.8)
Adjusted Net Debt/Adjusted EBITDA ratio	2.6x	Proceeds from long-term loans	90.0	60.0
		Repayment of long-term loans	(587.2)	(85.1)
Book value of bonds and loans on consolidated statement of financial position	(4,881.8)	Proceeds from issuance of bonds	934.5	526.1
		Repayment of bonds	(733.8)	(115.3)
Application of equity credit*2	250.0	Settlement of cross currency interest rate swaps related to bonds and loans	46.9	—
FX adjustment*3	213.2	Acquisition of treasury shares	(51.9)	(51.6)
Adjusted Gross Debt	(4,418.7)	Interest paid	(113.0)	(121.4)
		Dividends paid	(302.5)	(311.9)
		Others	(44.6)	(39.9)
		Net increase (decrease) in cash and cash equivalents	(61.3)	175.5	236.8	—

*1 Please refer to Definition and Explanation of Non-IFRS Measures and U.S. Dollar Convenience Translations for the definitions of Net Debt and Adjusted Net Debt.

A-14


			FY2026 H1 Net Profit to Adjusted EBITDA Bridge


(Billion JPY)	FY2025 H1	FY2026 H1	JPY Change	% Change
Net profit	112.5	305.7	193.2	171.6	%
Income tax expenses (benefit)	66.3	13.0
Depreciation and amortization	366.6	327.5
Interest expense, net	63.3	73.0
EBITDA	608.7	719.1	110.4	18.1	%
Impairment losses	87.1	30.9
Other operating expenses (income), net, excluding depreciation and amortization, and impairment losses	37.1	60.1
Finance expenses (income), net, excluding interest expense, net	8.9	15.1
Share of loss (profit) of investments accounted for using the equity method	2.6	0.0




Other costs*	33.8	34.9

Adjusted EBITDA	778.2	860.0	81.8	10.5	%

* Includes adjustments for non-cash items such as non-cash equity-based compensation expense, and other items that management believes are unrelated to our core operations, including purchase accounting effects

and transaction related costs.

A-15


			FY2026 H1 Net Profit to Adjusted EBITDA LTM Bridge


(Billion JPY)	FY2025 Full Year (Apr - Mar)	FY2025 H1 (Apr - Sep)	FY2026 H1 (Apr - Sep)	FY2026 H1 LTM*1 (Oct - Sep)
Net profit	(152.1)	112.5	305.7	41.0
Income tax expenses (benefit)	9.8	66.3	13.0	(43.5)
Depreciation and amortization	721.1	366.6	327.5	682.0
Interest expense, net	131.2	63.3	73.0	140.9
EBITDA	710.0	608.7	719.1	820.5
Impairment losses	145.7	87.1	30.9	89.4
Other operating expenses (income), net, excluding depreciation and amortization, and impairment losses	516.7	37.1	60.1	539.7
Finance expenses (income), net, excluding interest expense, net	15.1	8.9	15.1	21.4
Share of loss (profit) of investments accounted for using the equity method	2.2	2.6	0.0	(0.4)
Other costs*2	69.6	33.8	34.9	70.7




Adjusted EBITDA	1,459.4	778.2	860.0	1,541.2
EBITDA from divested products*3	(2.1)			(0.9)
Adjusted EBITDA (LTM)*1	1,457.2			1,540.3

*1 LTM represents Last Twelve Months (October 2025 - September 2026). Calculated by subtracting FY2025 H1 from FY2025 Full Year and adding FY2026 H1.

*2 Includes adjustments for non-cash items such as non-cash equity-based compensation expense, and other items that management believes are unrelated to our core operations, including purchase accounting effects and transaction related costs.

*3 Represents adjustments for EBITDA from divested products which are removed as part of LTM Adjusted EBITDA.

A-16


			FY2026 H1 CAPEX, Depreciation and Amortization and Impairment Losses


(Billion JPY)	FY2025 H1	FY2026 H1	JPY Change	% Change		Revised Forecast (October 29, 2026)
Capital expenditures*1	127.9	159.0	31.1	24.3	%	330.0 - 380.0
Tangible assets	88.0	98.5	10.5	11.9	%
Intangible assets	39.9	60.5	20.6	51.6	%

Depreciation and amortization (A)+(B)	366.6	327.5	(39.1)	(10.7)	%	644.0
Depreciation of tangible assets*2 (A)	85.7	91.7	6.0	7.0	%
Amortization of intangible assets (B)=(C)+(D)	280.9	235.7	(45.2)	(16.1)	%
Of which Amortization on intangible assets associated with products (C)	260.8	212.3	(48.4)	(18.6)	%	409.0
Of which Amortization excluding intangible assets associated with products (D)	20.1	23.4	3.3	16.2	%


Depreciation and amortization (excluding intangible assets associated with products) (A)+(D)	105.9	115.2	9.3	8.8	%	235.0

Impairment losses	87.1	30.9	(56.3)	(64.6)	%
Impairment losses on intangible assets associated with products*3 (E)	76.0	6.2	(69.8)	(91.8)	%	100.0

Amortization and impairment losses on intangible assets associated with products (C)+(E)	336.8	218.5	(118.3)	(35.1)	%	509.0
*1 Cash flow base
*2 Includes depreciation of investment properties
*3 Includes in-process R&D

A-17


			FY2026 Full Year Detailed Forecast


(BN JPY)		Original Forecast (May 13, 2026)	Revised Forecast (October 29, 2026)	JPY Change	% Change	Variances

REPORTED	Revenue	4,640.0	4,700.0	60.0	1.3%	FX benefits and higher-than-expected revenue from LOE and Mature Portfolio partially offset by the underperformance of Albumin and QDENGA
	Cost of sales	(1,625.0)	(1,617.0)	8.0	0.5%	Favorable transactional FX impacts, manufacturing efficiency improvements, and the updated tariff assumption, partially offset by higher costs associated with increased revenue
	Gross Profit	3,015.0	3,083.0	68.0	2.3%	Gross margin positively impacted by favorable transactional FX and product mix
	SG&A expenses	(1,093.0)	(1,141.0)	(48.0)	(4.4)%	Savings targets allocated to SG&A in the original forecast have been reallocated to R&D and cost of sales. Also reflects increased investment in new product launches, and FX headwinds.
	R&D expenses	(762.0)	(752.0)	10.0	1.3%	Additional cost savings including pipeline prioritization, partially offset by FX headwinds
	Amortization of intangible assets associated with products	(413.5)	(409.0)	4.5	1.1%
	Impairment losses on intangible assets associated with products*1	(100.0)	(100.0)	—	—
	Other operating income	2.5	16.0	13.5	540.0%	Gains on divestitures and liquidation of certain entities
	Other operating expenses	(229.0)	(244.0)	(15.0)	(6.6)%	Losses on divestitures, higher expenses for pre-launch inventories and FX headwinds were partly offset by lower restructuring expenses. Restructuring costs are now expected to be JPY 160 B.
	Operating profit	420.0	453.0	33.0	7.9%
	Finance income (expenses), net	(170.0)	(184.0)	(14.0)	(8.2)%	Higher interest expenses, including accrual for interest related to the AMITIZA litigation judgment
	Profit (loss) before tax	252.0	270.0	18.0	7.1%
	Net profit (loss) attributable to owners of the Company	166.0	209.0	43.0	25.9%	Lower tax rate driven mainly by deferred tax asset recognition
	Basic EPS (yen)	104	131	27	25.9%

	Core Revenue*2	4,640.0	4,700.0	60.0	1.3%	FX benefits and higher-than-expected revenue from LOE and Mature Portfolio partially offset by the underperformance of Albumin and QDENGA
	Core Operating Profit*2	1,160.0	1,190.0	30.0	2.6%	Higher revenue, lower cost of sales and favorable FX impacts, partially offset by higher operating expenses
	Core EPS (yen)*2	472	482	10	2.1%	Mainly due to higher profit before tax

	Adjusted Free Cash Flow*2	650.0 to 750.0	700.0 to 800.0			Mainly due to higher profit before tax
	CAPEX (cash flow base)	(330.0) to (380.0)	(330.0) to (380.0)
	Depreciation and amortization (excl. intangible assets associated with products)	(235.0)	(235.0)	—	—
	Cash tax rate on Adjusted EBITDA (excl. divestitures)*2	Low 10s%	Low 10s%

	USD/JPY	156	158	2	1.6%
	EUR/JPY	182	182	0	0.1%

*1 Includes in-process R&D.
*2 Please refer to Definition and Explanation of Non-IFRS Measures and U.S. Dollar Convenience Translations, for the definition of Non-IFRS Measures and FY2026 Full Year Reconciliation from Reported Operating Profit to Core Operating Profit Forecast.

A-18


			FY2026 Full Year Reconciliation from Reported Operating Profit to Core Operating Profit Forecast


(Billion JPY)	Reported	Reported to Core adjustments			Core
		Amortization of intangible assets	Impairment of intangible assets	Other operating income (expenses)
Revenue	4,700.0				4,700.0
Cost of sales	(1,617.0)				(3,510.0)
Gross Profit	3,083.0
SG&A expenses	(1,141.0)
R&D expenses	(752.0)
Amortization of intangible assets associated with products	(409.0)	409.0			—
Impairment losses on intangible assets associated with products*1	(100.0)		100.0		—
Other operating income	16.0			(16.0)	—
Other operating expenses	(244.0)			244.0	—
Operating profit	453.0	409.0	100.0	228.0	1,190.0

*1 Includes in-process R&D

A-19


			FY2026 Full Year FX Rates Assumptions and Currency Sensitivity vs. Forecast


Average Exchange Rates vs. JPY					Impact of depreciation of yen from October 2026 to March 2027 (100 million JPY)
	FY2025 H1 Actual (Apr-Sep)	FY2026 H1 Actual (Apr-Sep)	FY2026 Full Year Assumption (Apr-Mar)	FY2026 H2 Assumption (Oct-Mar)		Revenue (IFRS)	Operating Profit (IFRS)	Net Profit (IFRS)	Core Operating Profit (non-IFRS)
USD	146	160	158	157	1% depreciation	92.4	(5.7)	(8.1)	10.7
					1 yen depreciation	58.9	(3.6)	(5.2)	6.8
EUR	166	185	182	180	1% depreciation	30.7	(15.4)	(12.7)	(9.3)
					1 yen depreciation	17.1	(8.5)	(7.1)	(5.2)
RUB	1.8	2.0	2.0	1.9	1% depreciation	1.8	1.0	0.8	1.1
CNY	20.3	23.5	23.5	23.4		9.5	5.9	4.6	5.9
BRL	26.2	31.2	30.7	30.2		6.5	5.3	4.2	5.4

A-20

Important Notice

For the purposes of this notice, “report” 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 report. This report (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 report. 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 report 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 report, “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.

The product names appearing in this document are trademarks or registered trademarks owned by Takeda, or their respective owners.

Forward-Looking Statements

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 drug pricing, 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.

A-21

Financial Information and Non-IFRS Measures

Takeda’s financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”).

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 report. 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 legal provisions, 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.

Medical Information

This report contains information about products that may not be available in all countries, or may be available under different trademarks, for different indications, in different dosages, or in different strengths. Nothing contained herein should be considered a solicitation, promotion or advertisement for any prescription drugs including the ones under development.

A-22

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