Takeda Pharmaceutical : FY2023 (April 2023-March 2024) Quarter 4 Presentation

TSE: 4502

Committed to Growth & Shareholder Returns

FY2023 Earnings Announcement

May 9th, 2024

2

Important Notice

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The companies in which Takeda directly and indirectly owns investments are separate entities. In this presentation, "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

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Forward-Looking Statements

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

Financial Information and Certain Non-IFRS Financial Measures

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

This presentation and materials distributed in connection with this presentation include certain financial measures not presented in accordance with IFRS, such as Core Revenue, Core Operating Profit, Core Net Profit, Core EPS, Constant Exchange Rate ("CER") change, Net Debt, EBITDA, Adjusted EBITDA and Free Cash Flow. Takeda's management evaluates results and makes operating and investment decisions using both IFRS and non-IFRS measures included in this presentation. These non-IFRS measures exclude certain income, cost and cash flow items which are included in, or are calculated differently from, the most closely comparable measures presented in accordance with IFRS. Takeda's non-IFRS measures are not prepared in accordance with IFRS and such non-IFRS measures should be considered a supplement to, and not a substitute for, measures prepared in accordance with IFRS (which we sometimes refer to as "reported" measures). Investors are encouraged to review the definitions and reconciliations of non-IFRS financial measures to their most directly comparable IFRS measures, which are in the financial appendix appearing at the end of this presentation. Beginning in the first quarter of FY24, Takeda will (i) change its methodology for CER adjustments to results of subsidiaries in hyperinflation countries to present those results in a manner consistent

with IAS 29, Financial Reporting in Hyperinflation Economies, and (ii) re-name Free Cash Flow as currently calculated as "Adjusted Free Cash Flow" (with "Free Cash Flow" to be reported as Operating Cash Flow less Property, Plant and Equipment). For more information about the changes, including how the new methodology would have impacted Takeda's FY23 results, refer to the Financial Appendix.

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 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.

Exchange Rates

In this presentation, certain amounts presented in Japanese yen have been translated to US dollars solely for the convenience of the reader. Except where otherwise noted, these convenience translations have been made at an exchange rate of 1USD = 151.22 JPY, the Noon Buying Rate certified by the Federal Reserve Bank of New York on March 29, 2024. The rate and methodologies used for these convenience translations differ from the currency exchange rates and translation methodologies under IFRS used for the preparation of Takeda's consolidated financial statements. These translations should not be construed as a representation that the relevant Japanese yen amounts could be converted into U.S. dollars at this or any other rate.

Medical information

This presentation 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.

AGENDA

Introduction &

Business Highlights

Pipeline Update

Financials

Q&A Session

Christophe Weber

President & CEO

Andy Plump

President, R&D

Milano Furuta

Chief Financial Officer

Better Health for People, Brighter Future for the World

Our vision is to discover and deliver life-transforming treatments, guided by our commitment to:

PATIENT		PEOPLE	PLANET
• Responsibly translate	• Accelerate	• Create an exceptional	• Protect our planet
science into highly	access to	people experience
innovative, life-changing	improve lives
medicines and vaccines	worldwide

… A N D B Y U N L E A S H I N G T H E P O W E R O F D A T A A N D D I G I T A L

• We strive to transform Takeda into the most trusted, science-driven, digital biopharmaceutical company

We are guided by our values of Takeda-ism which incorporate

Integrity, Fairness, Honesty, and

Perseverance, with Integrity at the core. They are brought to life through actions based on Patient-Trust-

Reputation-Business,in that order.

4

FY2023 Results: Delivered or Exceeded Management Guidance

Strong Momentum of Growth & Launch Products

Important Evolution of our Innovative Pipeline

• Revenue growth +1.5% at CER1 with Loss of Exclusivity (LOE) impact mitigated by Growth & Launch products +12.8% at CER
• Core Operating Profit decline in-line with guidance; reflects LOE of high margin products and investment in R&D and DD&T

FY2023 RESULTS VS MANAGEMENT GUIDANCE2

	FY2023 GUIDANCE	FY2023
	CHANGE AT CER	RESULTS
CORE REVENUE	Low-single-digit % decline	+1.5%
at CER
CORE OPERATING PROFIT	Low-10s % decline	-13.3%
at CER
CORE EPS	Low-20s % decline	-15.7%
at CER

• Three new U.S. product approvals (FRUZAQLA, ADZYNMA, EOHILIA)
• Important lifecycle management milestones including:
• • ENTYVIO PEN approval in the U.S.
  • HYQVIA and GAMMAGARD LIQUID approvals in CIDP
  • Further endemic country approvals of QDENGA
• Zasocitinib (TAK-279) progress into Ph3 in psoriasis and Ph2b in ulcerative colitis and Crohn's disease; Ph3 in psoriatic arthritis to commence soon
• TAK-861 met primary and key secondary endpoints in Ph2b trial in narcolepsy type 1; Ph3 trials to start in H1 of FY24
• Data-drivendecisions to not pursue regulatory filing of ALOFISEL in the U.S., to voluntarily withdraw EXKIVITY globally, and to discontinue development of three Ph2 pipeline programs in oncology (modakafusp alfa, subasumstat, TAK-007)

DD&T: Data, Digital, and Technology

5 1. Constant Exchange Rate. Please refer to appendix slide A-1 for definition.

2. Please refer to appendix slide A-1 for definition of Core financial measures, and slides A-5 and A-7 for reconciliation.

Positioned for Return to Revenue & Profit Growth from FY2025 with Efficiency Program to Deliver Margin Expansion

• FY2024 expected to be final year of significant headwind of VYVANSE Loss of Exclusivity in the U.S.

Return to Sustainable

Revenue Growth

Advance Pipeline with		Drive Efficiencies to		Deliver Attractive
Rigorous Prioritization		Improve Margins		Returns to Shareholders

Growth & Launch Products

expected to represent

~50% of revenue

in FY2024 with double- digit % growth at CER

Limited LOE exposure after VYVANSE until early 2030s1

Prioritizing pipeline to

invest in 6 late-stage assets with potential to generate significant value

Deliver 100-250bps	Strong cashflow outlook
Core Operating Profit margin	underpins proposed
improvement each year	dividend increase to
from FY2025 towards	196 yen per share in
low-to-mid 30s% target	FY2024

1. Major products expected to face generic/biosimilar competition between FY2024-2029 total less than 10% of FY2023 revenue: Gattex U.S. (FY25), Iclusig U.S. (FY26) , Trintellix U.S. (FY26), Vectibix JP (FY26), Vyvanse EU (FY28), Livtencity U.S. (FY28), Ninlaro U.S. (FY29)

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Note: Margin improvement target assumes constant FX rate

Enterprise-wide Program to Drive Efficiencies and Deliver 100-250bps of Core Operating Profit Margin Improvement Each Year From FY2025

Organizational Agility

Focus on agility and organizational simplicity,

reducing layers, broadening spans,

and refining operating models

Procurement Savings

Optimizing external spend through

procurement-led initiatives

Data, Digital & Technology

Targeting increased productivity and efficiency across the whole enterprise through digital, automation, & AI

Freeing up resources to:

• Advance prioritized pipeline
• Execute new product launches
• Continue building DD&T capabilities
• Offset inflation headwinds

While aiming to deliver 100-250bps of Core Operating Profit Margin improvement each year from FY2025 towards low-to-mid 30s% target

JPY 140B of restructuring costs expected to be booked in FY2024 primarily as a result of this program

7 Note: Margin improvement target assumes constant FX rate

Incorporating Data, Digital & Technology Across the Value Chain to Develop and Deliver Medicines to Patients more Efficiently

Developing digital skills & capabilities

Building In-house		Data Migration		Digital-ready		Strategic Alliances in
Digital Capabilities		to the Cloud		Workforce		Digital Health
• Innovation Capability Centers		• 96% of all data has been		• Preparing our workforce for a		• Engaging with digital health
(ICCs) building internal		migrated to Cloud; anticipate		digital future through learning		ecosystem to add value across
capabilities to reduce reliance		complete migration of all apps		opportunities on digital topics		our pipeline through
on external vendors, boosting		and data by close of FY2024				collaboration, investment and
efficiency and saving cost						partnership

Integrating data-driven insights into our business operations

Digital Marketing			PDT Donor		Clinical Trials		Manufacturing
Tools			Interface			& Supply Chain
• Digital channels with		•	Improving donor experience		• Leveraging AI, internal & external		• Incorporating big data and AI to
personalized content accessed			through digital appointments		data to speed recruitment and		drive efficiencies in quality
by 6.7 million individual users			and AI-driven inquiry system		regulatory filings		control, using sensors and digital
			• FDA approval of GAMMAGARD
(including HCPs, donors and		•	Approx 1.3 million appointments			cameras to conduct predictive
		LIQUID for CIDP based in part on
patients), an increase of 3.4			per month on average via digital			maintenance, root cause analysis,
			real-world evidence from
million since January 2023			channels in FY23			and deviation analysis
			databases licensed by Takeda

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Growth & Launch Products Expected to Represent ~50% of Total Revenue in FY2024 with Double-digit Growth Outlook at CER

Balanced Portfolio Across Six Key Business Areas

FY2024

REVENUE FORECASTS AT CER 1

GROWTH

&

LAUNCH

PRODUCTS

GI

+16%

New Launch

RARE DISEASES

+10%

+54%

New Launch

Advate® / Adynovate

PLASMA-DERIVED	ONCOLOGY	VACCINES	NEUROSCIENCE
THERAPIES (PDT)

IMMUNOGLOBULIN

+5~15%

+37%

>200%

ALBUMIN
Single-digit %	New Launch
growth

Adcetris® (ex-N. America)

OTHER KEY	Takecab/Vocinti®
PRODUCTS	Gattex/Revestive®

Vonvendi®

Elaprase® / Vpriv®/

Replagal®(EU,JP)

Glassia®	Ninlaro® / Iclusig®	Nuvaxovid® (JP)	Vyvanse®
Aralast®	Leuprorelin	Trintellix®(US,JP)
Zejula®(JP) / Cabometyx®(JP)
	Vectibix®(JP)

9 1. Constant Exchange Rate. Please refer to appendix slide A-1 for definition.

This slides shows Growth & Launch Products as categorized for FY2024 (ALOFISEL and EXKIVITY have been removed). For results of FY2023 Growth & Launch Products performance, please refer to slide 35.

Expect Return to Double-digit Revenue Growth in FY2024

Expect Return to Double-digit Revenue Growth in FY2024

Achieved double-digit global volume growth in FY2023 (+12%) despite U.S. market growth still behind pre-pandemic levels

• FY2023 global revenue grew +6.6% at CER, to JPY 800.9B ($5.3B)1; lower than volume growth due to price erosion and clawbacks ex.-U.S.

Stable #1 market share in U.S. bio-naïve new starts

• 1L share durable through competitive launches that have mostly competed in later lines of therapy and/or within class of alternative mechanisms of action (e.g. anti-TNFs, IL12/23s)

Remain confident in peak sales outlook of $7.5-9.0B

• Unique brand equity established >10 years
• Continued volume growth expected supported by new IV/SC flexibility with U.S. launch of ENTYVIO Pen in UC and Crohn's disease
• New and ongoing lifecycle management to enhance long-term growth

1. Please refer to disclaimer on Exchange Rates on slide 2

10 2. Source: Symphony PTD Claims data Dec 2023

Focus on Launch Success of ENTYVIO SC/Pen

SC/PEN launched in 50+ markets and driving incremental growth

• Launched ENTYVIO Pen in Crohn's disease in the U.S. in April 2024, following UC launch in Nov 2023, to unlock full market opportunity (SC represents 35-40% of the U.S. IBD market2)
• High level of interest for ENTYVIO Pen and establishing formulary access; 10% of ENTYVIO Pen prescribers are new to ENTYVIO, with another 20% returning after >1 year of not prescribing
• Overall ENTYVIO volume growth in EU outperforming the market at +14% largely driven by successful SC launches: >40% volume growth with no major access challenges; SC now makes up ~ ⅓ of total ENTYVIO volume in EU

ENTYVIO Pen U.S. National Payer Access3

(Commercial + Federal + Health Exchange)

Expected Effective July 1

Lives	80%							52%	54%	72%
60%
Covered%						39%
40%
					30%
	20%		5%	13%	13%
	0%
		Oct	Nov	Dec	Jan	Feb	Mar	Apr	Jul
			L	L+1	L+2	L+3	L+4	L+5	L+6	L+9
			2023			2024				(projection)

3. Data derived from Managed Market Insights & Technology (MMIT). April 2024.