Launch of a New Long-Term Incentive Plan (Global Long-Term Incentive Plan)for Company Group Senior Management in Japan and Overseas

Osaka, Japan, April 25, 2014 -- Takeda Pharmaceutical Company Limited (“Company”) announced today that the meeting of the Board of Directors held on April 25, 2014 has resolved to adopt a new long-term incentive plan (“Plan”) for Company Group Senior Management in Japan and overseas as outlined below. The Company has reviewed the long-term incentive plans in overseas subsidiaries which impacted the financial results of the fiscal year 2012 by an unexpected increase in expenses resulting from an increase in the Company's stock price. As a result of the introduction of this Plan, stock options will no longer be issued to the Company’s Corporate Officers and Senior Management. In addition, the new long-term incentive plan will replace the existing long-term incentive plans at overseas subsidiaries.

1. Purpose of Introducing the Plan
(1) The Company is introducing this Plan for Company Group Senior Management in Japan and overseas as a highly transparent and objective incentive plan that is closely linked to company performance. The purpose of this Plan is to improve the Company’s mid- and long-term performance as well as increase the awareness of contributions to increasing corporate value.

(2) The Stock Grant ESOP (Employee Stock Ownership Plan) Trust (“ESOP Trust”) will be adopted when introducing the Plan. The ESOP Trust is an employee incentive plan based on the ESOP system in the U.S.A. wherein Company shares that are acquired by the ESOP Trust and the amount of money equivalent to Company shares converted into money will be granted, etc. to employees based on their job positions and the achievement of performance indicators, etc.(*)

(3) The period when Company Group Senior Management in Japan and overseas receive the Company shares and the amount of money equivalent to Company shares converted into money under this Plan will be a period specified each year during the Trust term.

(4) This Plan is for Company Group Senior Management in Japan and overseas and is expected to have the effect of encouraging Company Group Senior Management to work together under the global framework and of increasing their awareness of improvements in the Company Group’s performance. Company shares and an amount of money equivalent to Company shares converted into money will be granted, etc. according to the job position of each Senior Management and achievement of performance indicators, etc., subject to one year or longer of continued service at the Company in principle. This Plan thereby grants mid- and long-term incentives for the improvement of corporate value to each Senior Management and is expected to increase the effect of retaining Senior Management.

(*) The Company contributes funds to acquire Company shares and establishes a trust where persons who meet the specified requirements from among the Company Group’s employees serve as Beneficiaries. This Trust acquires the estimated number of Company shares that will be granted to Beneficiaries based on the policies on Long-Term Incentive Plan that are provided for by the Company in advance, during the acquisition period that is specified in advance. Then, according to the policies on Long-Term Incentive Plan, each year said Trust will grant, etc. to Beneficiaries Company shares and the amount of money equivalent to Company shares converted into money based on the job position of Beneficiaries or achievement indicators of company performance, etc.. All of the funds for the Trust to acquire Company shares will be contributed by the Company and therefore the Beneficiaries will have no burden.

2. Structure of the ESOP Trust

(Note) If there are no Company shares under the Trust due to the granting, etc. of Company shares to Beneficiaries or other reasons, the Trust will be discontinued before the expiry of the Trust term. The Company may entrust additional money to the Trust as funds to acquire Company shares.