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Takeda Updates its Q1 FY2021 Earnings Materials to Reflect Impact of Decision by the Irish Tax Appeals Commission Relating to Tax Assessment on Break Fee Shire Received from AbbVie

August 6, 2021

OSAKA, Japan, August 6, 2021 – Takeda Pharmaceutical Company Limited (TSE:4502/NYSE:TAK) (“Takeda”) today announced that it re-filed its “Summary of Financial Statements for the Three-month Period Ended June 30, 2021 (IFRS, Consolidated)” to the Tokyo Stock Exchange, which was revised to reflect the impact of a subsequent event that occurred on July 30, 2021 on the consolidated financial statements for the fiscal quarter ended on June 30, 2021 (“Q1 FY2021”). In a press release dated August 2, 2021, Takeda indicated its intention to re-file its Q1 FY2021 consolidated financial statements no later than August 6, 2021 (JST).

As announced in the press release, “Takeda Receives Decision by the Irish Tax Appeals Commission Relating to Tax Assessment on Break Fee Shire Received from AbbVie”, dated August 2, 2021, Takeda would record a tax provision for the case in its Q1 FY2021 consolidated financial statements, as the subsequent event arose from the tax assessment involving Irish taxation of the break fee Shire plc (“Shire”) received from AbbVie Inc. (“AbbVie”) in connection with the terminated offer to acquire Shire made by AbbVie in 2014. Shire was acquired by Takeda in January 2019. Takeda has now recorded a tax charge of 62.7 billion JPY, including interest accrued through June 30, 2021, net of 0.5 billion JPY associated tax benefits, to its Q1 FY2021 consolidated financial statements.

Takeda also revised certain of its other Q1 FY2021 financial materials to reflect the impact of the subsequent event, and has published them on its website. To view the updated materials, please visit:
https://www.takeda.com/investors/financial-results/.

The subsequent event did not result in a change to Takeda’s Q1 FY2021 Core and Underlying financial results, as the associated tax charge is a non-recurring item considered unrelated to Takeda’s ongoing operations.

At this time, Takeda is not revising its forecast for the full fiscal year ending March 31, 2022 (“Full Year FY2021”). Takeda will update its Full Year FY2021 consolidated financial forecasts (based on IFRS) at the appropriate timing by taking this decision as well as other factors into consideration. This decision will not impact the Full Year FY2021 outlook for Core or Underlying financial results.

Reference: Amount Updated in Q1 FY2021 Consolidated Statements of Profit or Loss
JPY (millions)      

 

Q1 FY2021

Before Update

Revision Amount

Q1 FY2021

After Update

Revenue

949,603

 

949,603

Operating profit

248,552

 

248,552

Profit before tax

222,978

 

222,978

Income tax expenses

-22,558

-62,694

-85,252

Net profit for the period

200,421

-62,694

137,726

Net profit for the period

(attributable to the Owners of the Company)

200,378

-62,694

137,684

Basic earnings per share (JPY)

128.02

-40.06

87.96



About Takeda Pharmaceutical Company Limited
Takeda Pharmaceutical Company Limited (TSE: 4502/NYSE: TAK) is a global, values-based, R&D-driven biopharmaceutical leader headquartered in Japan, committed to discover and deliver life-transforming treatments, guided by our commitment to patients, our people and the planet. Takeda focuses its R&D efforts on four therapeutic areas: Oncology, Rare Genetics and Hematology, Neuroscience, and Gastroenterology (GI). We also make targeted R&D investments in Plasma-Derived Therapies and Vaccines. We are focusing on developing highly innovative medicines that contribute to making a difference in people’s lives by advancing the frontier of new treatment options and leveraging our enhanced collaborative R&D engine and capabilities to create a robust, modality-diverse pipeline. Our employees are committed to improving quality of life for patients and to working with our partners in health care in approximately 80 countries and regions. For more information, visit https://www.takeda.com.


Media Contacts:                           
Japanese Media                           
Ryoko Matsumoto                         
ryoko.matsumoto@takeda.com          
+81 (0) 3-3278-2037

Investor Contacts:
Christopher O’Reilly
takeda.ir.contact@takeda.com
+81 (0) 3-3278-2306

Media Outside Japan
Christina Beckerman
christina.beckerman@takeda.com
+1 (908) 581-4133


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

Certain Non-IFRS Financial Measures
This press release and materials distributed in connection with this press release include certain IFRS financial measures not presented in accordance with International Financial Reporting Standards (“IFRS”), such as Underlying Revenue, Core Operating Profit, Underlying Core Operating Profit, Core Net Profit, Underlying Core EPS, Net Debt, EBITDA, Adjusted EBITDA and Free Cash Flow. Takeda’s management evaluates results and makes operating and investment decisions using both IFRS and non-IFRS measures included in this press release. These non-IFRS measures exclude certain income, cost and cash flow items which are included in, or are calculated differently from, the most closely comparable measures presented in accordance with IFRS. By including these non-IFRS measures, management intends to provide investors with additional information to further analyze Takeda’s performance, core results and underlying trends. 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 reconciliation of non-IFRS financial measures to their most directly comparable IFRS measures.

Further information on certain of Takeda’s Non-IFRS measures is posted on Takeda’s investor relations website at
https://www.takeda.com/investors/financial-results/