2022 Annual
Integrated Report
Fiscal Year Ended March 31, 2022
2
Contents
03 CEO Letter to Stakeholders
07 About this Report
18 Values-Based Governance
05 Message from
08 FY2021 Highlights
64 Legal Disclaimers
the External Director,
Chair of the Board Meeting
06 Dialogue with CGCASO1
and CFO
09 Our Business Environment
66 Appendix
12 About Takeda
68 Reconciliations
16 Spotlight on Hikari Plant
28
40
46
56
COMMITMENT TO
PATIENT
COMMITMENT TO
PEOPLE
COMMITMENT TO
PLANET
FINANCIAL
PERFORMANCE
61
GLOBAL CSR
1 CGCASO = Chief Global Corporate Affairs & Sustainability Officer
TAKEDA 2022 ANNUAL INTEGRATED REPORTPATIENTPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCEINTRODUCTION CEO LETTER TO
STAKEHOLDERS
CHRISTOPHE WEBER
President & CEO
3
Dear Stakeholders,
Takeda has existed for more than 240 years, yet we
are reminded each day of the critical importance
of our work, and we are fueled by the impact we make
in our mission to transform lives. We often talk about
the importance of our core values of Takeda-ism
(Integrity, Fairness, Honesty and Perseverance)
brought to life through actions based on patient, trust,
reputation and business, in that order. These values
guide everything we do and are fundamental to who
we are as a company. Our purpose, as a core foundation
of our global growth strategy, will help us create value
for decades to come.
Transforming the
lives of patients
The work we do transforms lives, helping patients
with limited or no treatment options in our therapeutic
and business areas of oncology, rare genetics and
hematology, neuroscience, gastroenterology, plasma-
derived therapies (PDT) and vaccines. Our R&D
pipeline is a clear demonstration of how we are working
to deliver unique value to patients. We have a robust
pipeline of medicines that all have the potential to
transform the treatment landscape.
Unleashing the power of data and technology is crucial
to our vision to transform the lives of patients. Data
and technology are revolutionizing our industry and
creating better experiences and outcomes for patients
by accelerating the discovery, development and
delivery of life-transforming treatments. Takeda is on
the leading edge of this revolution.
Inspiring our people
and building a workplace
of the future
I attribute our ongoing success to our approximately
50,000 dedicated and patient-focused colleagues who
embody our values and help us build a dynamic future.
Our intention is to continuously deliver an exceptional
experience to our people, wherever they work. This
starts by attracting and retaining a talented, diverse
and highly engaged workforce and offering a culture of
lifelong learning and talent development, so our people,
regardless of role, can reach their highest potential.
And we are focused on strengthening our culture and
sense of community while allowing for the flexibility
that is so important for supporting well-being. This
emphasis on well-being has been a valuable takeaway
from the COVID-19 pandemic, as many of us have been
faced with unprecedented pressures.
Building sustainable
health care and fostering
a better planet
We’re on a journey to embed purpose-led sustainability
so that it informs everything we do. Ultimately, we
see an opportunity to create sustainable value using
our core assets and capabilities to help in solving big
societal issues, including addressing health disparities
and inequity.
We are also working to build support for value-based
health care, which we believe is essential to address
the challenges health care systems face in delivering
innovative health services and technologies sustainably
TAKEDA 2022 ANNUAL INTEGRATED REPORTPATIENTPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCEINTRODUCTION 4
and equitably. This complements our ongoing efforts
to expand access to our medicines worldwide. The
Takeda Center for Health Equity and Patient Affairs is
gathering diverse perspectives from people around the
world and developing a broad eco-system of partners
to ensure that these voices are heard and that equity
considerations are embedded into both our R&D and
patient access activities.
Throughout this report you will also see indicators of
Takeda’s alignment with key components of the United
Nations Global Compact and Sustainable Development
Goals. As a signatory of the Global Compact, Takeda
remains committed to its principles and to reporting on
our progress in implementing them.
The stakes have never been higher for the future of our
planet. We see the accelerating reality of the climate
change crisis and are challenging our own ambitions
to address our carbon footprint and decarbonize
our entire value chain. In 2020, we achieved carbon
neutrality across our value chain, through greenhouse
gas emissions reduction efforts and validated carbon
offsets. We’re now committed to being net-zero across
our Scope 1 and 2 emissions before 2035 and across
our entire value chain, including currently estimated
Scope 3 emissions, before 2040.1
Delivering long-term
business growth
Over the past several years, we have dramatically
accelerated our competitive position. This is evident
in our strong performance in fiscal year (FY) 2021.
We delivered significant topline acceleration, with
underlying revenue growth of +7.4% driven by sales
of our global growth products.2 On a reported
basis, revenue was 3,569.0 billion yen ($29.4 billion
dollars), with a year-on-year increase of +11.6%. And
we successfully achieved our management guidance
for underlying revenue and profit growth.
With regard to profitability, in FY2021 Takeda
delivered underlying Core Operating Profit growth
of +5.4%, and a competitive margin of 28.0%.
This strong performance was in spite of temporary
sales mix and pandemic-related headwinds, which
were largely offset by improved OPEX efficiency.
We also continue to deliver important cash flow
(943.7 billion yen free cash flow in FY2021), allowing
us to invest in our growth drivers, while also paying
down debt, resulting in net debt to adjusted EBITDA
of 2.8x in March 2022. I am confident that our growth
momentum will continue into FY2022 and beyond,
and will support our Total Shareholder Returns as we
look forward to a new phase of creating significant
shareholder value.
Strong momentum for
the future
This fiscal year was exceptional for our business
thanks to our agile response to the dynamic global
environment and our R&D momentum. We are proving
our ability to bring new therapies to patients, expand
indications and launch products in new geographies.
Our commercial growth trajectory enables us to
invest in and develop a modality diverse pipeline, with
approximately 40 clinical-stage medicines. Importantly,
10 of the R&D programs at Takeda are in late-stage
development, providing several medium-term
commercial opportunities.
For the next phase of growth at Takeda, we are
unleashing the power of data and technology to
transform the way we work across our entire value
chain. Digital technologies will drive innovation,
efficiencies and sustainability across everything we
do — from drug discovery and clinical trials to product
manufacturing and global distribution.
Our goal is to continue to grow Takeda into the most
trusted, science-driven, digital biopharmaceutical
company. We are fostering a culture that champions
bold ideas and innovative solutions to deliver lasting
value for stakeholders. Our focus on patients will
forever fuel our strategy and contribute to long-term
value creation for all.
CHRISTOPHE WEBER
President & CEO
1 Takeda defines carbon neutrality and net zero emissions in accordance with The Greenhouse Gas Protocol. A lack of transparency into, and a difficulty measuring, actual Scope 3
emissions remains an important challenge to overcome as part of these efforts.
2 Takeda uses certain non-IFRS measures — including underlying revenue growth and Core Operating Profit — to supplement the analysis of results of operations under IFRS.
Please refer to the appendix for definitions, explanations and reconciliations of non-IFRS measures.
TAKEDA 2022 ANNUAL INTEGRATED REPORTPATIENTPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCEINTRODUCTION MESSAGE FROM THE
EXTERNAL DIRECTOR,
CHAIR OF THE
BOARD MEETING
MASAMI IIJIMA
External Director,
Chair of the Board Meeting
5
It was an honor to have been appointed Chair of the
Board Meeting at the recent 146th Ordinary General
Meeting of Shareholders. Masahiro Sakane, my
predecessor, was committed to energizing the Board of
Directors and working closely with Christophe Weber,
President & CEO, to further globalize Takeda and
strengthen its governance.
Succeeding Masahiro as Chair of the Board of Directors
is a great responsibility. And I intend to use all of the
experience I gained leading Mitsui & Co. and building
close relationships in the business community to
contribute to Takeda’s growth and development.
A future guided by
purpose and Takeda-ism
Global companies operate in an increasingly difficult
business environment. The COVID-19 pandemic
raised questions about the ability of health care and
pharmaceutical companies to deal with infrastructure
and supply challenges. In addition, environmental
issues, such as climate change caused by global
warming are intensifying. And the Russia-Ukraine
conflict has changed geopolitical relationships
overnight, increasing tensions between countries and
making international relations even more complex.
In 1916, Eiichi Shibusawa, a leading figure in the
development of Japan’s modern economy, wrote in
Rongo to Soroban (Analects of Confucius and the Abacus)
that business and the achievement of a sustainable
society are interconnected. Takeda’s sustainability
ambitions are based on its purpose to deliver better
health for people, and a brighter future for the world. This
perfectly embodies Takeda’s character as a company
that builds its global business around patients —
people. Despite the uncertainty of today’s business
environment, guided by this purpose and Takeda-ism,
Takeda is well-placed to achieve its vision for the future.
A board built on
transparency and
governance capability
In business, opportunity and risk are also interconnected.
Members of the Board of Directors and internal leaders
must look for growth opportunities and take risks
to deliver on them. Of the 15 members of Takeda’s
Board of Directors, the majority (11) are independent
external directors. I have been an external director
at several companies, but the Board of Directors put
together by my predecessor Masahiro and Christophe
deserves special praise for its transparency and
governance capability.
In addition to monitoring, a Board of Directors must also
advise and direct. The mission of the Board of Directors
is to serve all patients, colleagues and the planet which
gives us life, and to demonstrate our capability to create
long-term value . Our responsibilities are wide-ranging,
from management plans and risk management to ESG
(environmental, social and governance). We also play
an important part in developing the next generation
of leaders, which is crucial to the company’s continued
growth. In my experience, no matter how far technology
advances, meaningful change is always driven by
people, so developing those who will lead Takeda into
the future is an important focus.
And as Chair of the Board Meeting, I will lead the
Board of Directors with commitment and do my best
to deliver value to shareholders and the company.
MASAMI IIJIMA
External Director,
Chair of the Board Meeting
TAKEDA 2022 ANNUAL INTEGRATED REPORTPATIENTPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCEINTRODUCTION
6
When we deliver innovative treatments that help
improve patient health, value will follow for payers in
terms of reduced overall health costs, for investors in
terms of financial returns, and our employees in the
form of competitive salaries and a workplace that
invests in their overall wellbeing and career growth.
Takako: We believe that creating value for society
will drive business growth without ever compromising
our commitment to people and our planet. By aligning
business and societal value creation, we can make a
difference in patients’ lives and create a positive ripple
effect through the outcomes we deliver. We’re all part
of an ecosystem with patient outcomes at the center.
Q: How do investors react to
our approach to value creation?
Costa: Investors increasingly recognize that our
long-term success relies on our ability to deliver
societal value in terms of discovering and launching
innovative products — and that this doesn’t happen
overnight. They are increasingly factoring our non-
financial performance into their decisions such as
human capital management, Board diversity and
transparent disclosure.
Takako: We are hearing from investors that they
appreciate our corporate philosophy and how it aligns
with broader trends and needs of society. Given that
Takeda is present in many countries and regions,
how we address our priorities may differ based on
local context. In business, what gets measured gets
managed. To ensure we make progress, we have
developed a set of metrics, which we are test running.
We are also working to assure the processes and data.
We are taking a very deliberate approach to measure
what is most meaningful to our business context
and stakeholders and to integrate these metrics into
our operations just as our financial metrics are today.
Dialogue with Takako and Costa
At Takeda, purpose-led sustainability is not just part of our business, it is our business. Here, Takako Ohyabu,
Chief Global Corporate Affairs and Sustainability Officer, and Costa Saroukos, Chief Financial Officer, explain.
Q: How is Takeda’s corporate philosophy
reflected in its business strategy, capital
allocation and operations?
Takako: The purpose of a company is to produce
profitable solutions to problems. We view sustainability
as how we operationalize our purpose — better health
for people, brighter future for the world. In other words,
how we will push the boundaries of what is possible in
discovering and delivering life-transforming treatments
for patients. And how can we do that, while being
profitable and mindful of the health of our people and
the planet.
Costa: Our corporate philosophy is the lens through
which we plan our growth strategy and make business
decisions, including where and how we invest resources.
At the core are patients. In FY2021, we increased our
R&D investment by 15% to accelerate our ability both in
our labs and through external partnerships to discover
and develop life-transforming treatments. We are also
increasing investment in product launches, particularly
in emerging markets.
Q: How does Takeda balance
value creation among stakeholders?
Costa: The value we create for patients is intrinsically
connected to the value we create for all stakeholders.
TAKEDA 2022 ANNUAL INTEGRATED REPORTPATIENTPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCEINTRODUCTION 7
About this Report
This report outlines Takeda’s financial and non-financial
results of FY2021 and the focus areas we believe are
most important for the stakeholders and communities
we serve. The report includes the operations of Takeda
Pharmaceutical Company Limited and its consolidated
subsidiaries. The reporting period covers FY2021
(April 1, 2021, to March 31, 2022), but this report may
include information beyond March 31, 2022.
This report is published in conjunction with our regulatory
disclosure documents: our Annual Securities Report filed
with the Japanese Financial Services Agency and our
Form 20-F filed with the U.S. Securities and Exchange
Commission (SEC). The financial statements included in
both of these reports are prepared in accordance with
International Financial Reporting Standards (IFRS), as
issued by the International Accounting Standards Board
(IASB). Details of our annual reports can be found on
our website.
This report is supplemented by our ESG Portal, which
provides easy-to-navigate links to where Takeda discloses
important information related to our environment, social
and governance (ESG) policies, practices and data across
our various reporting platforms. The ESG Portal also
contains our latest FY2021 ESG performance indicators
under the categories of Patient, People, Planet and Values-
Based Governance.
We have prepared this report in conjunction with
additional frameworks and standards, including the:
• Integrated Reporting Framework
• The Sustainability Accounting Standards Board
(SASB) Biotechnology & Pharmaceuticals
Sustainability Accounting Standard. See 2022 SASB
index report.
• The Biopharma Investor Environmental, Social and
Governance (ESG) Communications Guidance
• Stakeholder Capitalism Metrics developed by the
World Economic Forum (WEF) and its International
Business Council. See 2022 WEF index report.
• The 10 principles of the United Nations Global
Compact (UNGC). See 2022 UNGC index report.
• The Task Force on Climate-related Financial
Disclosures (TCFD) framework. See TCFD report.
For more information,
visit Investor Information | Takeda
TAKEDA 2022 ANNUAL INTEGRATED REPORTPATIENTPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCEINTRODUCTION FY2021 Highlights
8
APPROXIMATELY
40 NEW
MOLECULAR
ENTITIES
PIPELINE: We are
progressing approximately
40 new molecular entities
7.4% UNDERLYING
REVENUE
GROWTH1
REVENUE: Revenue growth
was largely driven by our
growth and launch products,
which represent about
one-third of total sales and
generated underlying revenue
growth of 19% in FY2021
52%
WOMEN
TOP
EMPLOYER
CLIMATE
ACTION
DIVERSITY, EQUITY
AND INCLUSION: Our
global organization today
comprises 52% women and
in our manager population,
41% are women
GLOBALLY CERTIFIED:
Takeda is one of only 11
companies to achieve
Global Top Employer
certification for 2022, the
fifth year in a row
27% GREENHOUSE GAS
(GHG) REDUCTION:
Additional focus on
renewable energy sourcing
and continued progress
in site energy efficiency
projects resulted in a 27%
reduction in GHG emissions
from our direct operations
(Scopes 1 and 2) from a
FY2016 baseline.
COMMITMENT TO
PHILANTHROPY
GLOBAL CSR PROGRAM:
We have committed
JPY 16.2 billion in total
since 2016 to corporate
philanthropy
1 Takeda uses certain non-IFRS measures to supplement the analysis of results of operations under International Financial Reporting Standards (“IFRS”). Please refer to appendix
pages for definitions, explanations and reconciliations of non-IFRS measures.
TAKEDA 2022 ANNUAL INTEGRATED REPORTPATIENTPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCEINTRODUCTION 9
At the same time, it is not clear that the global
community is prepared for the next pandemic,
including creating a transparent detection system
and a worldwide inventory and revolving stock of
treatments and vaccines, medical devices and testing
kits. Simultaneously, investment in healthcare has
been rising faster than gross domestic product (GDP)
and incomes for decades due to growing and aging
populations, lifestyle changes and the availability of
more advanced solutions for complex diseases.
HOW WE ARE RESPONDING
We believe that a value-based approach to healthcare
can lead to a better allocation of resources in health
systems and better health outcomes for patients and
society. We are working to champion this approach.
Learn more
Health inequity continues
to grow worldwide.
COVID-19 has underscored the health inequities
that have existed in access and health outcomes for
generations — both between and within countries and
populations. In all countries — whether low-, middle- or
high-income — we are seeing widening disparities in the
health status of different social groups. And almost a
third of the world’s population does not have access to
the medicines they need.
During the pandemic we saw health inequities
exacerbated by systemic and unintentional bias and
inequities in the drivers of health. We also continued
to experience underrepresentation of racial and ethnic
minority patients in clinical trials.
Our Business
Environment
Our world is changing at rapid speed. Here are key
trends we believe may have a significant impact on the
patients we serve and our ability to serve them and how
we are responding
The world continues to grapple
with the effects of COVID-19 on
public health.
The COVID-19 crisis has had extensive collateral
health impacts. The incidence of non-communicable
diseases (NCDs) has also worsened worldwide due to
treatment delays caused by COVID-19. The pandemic
and its collateral health impacts have the potential to
continue to put pressure on health systems across the
globe, widen health inequities, create social frictions
and weigh down long-term economic growth potential.
TAKEDA 2022 ANNUAL INTEGRATED REPORTPATIENTPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCEINTRODUCTION 10
HOW WE ARE RESPONDING
We are collaborating with diverse partners to identify
and address health inequities in communities around
the world.
Learn more
people displaced and impacted by the conflict. We
are also donating medicines to local organizations and
hospitals working to provide care to patients in need,
specifically those impacted by the conflict in Ukraine.
Our response serves as a reminder that we will always
be ready to lead with our values.
Geopolitical instability is on the
rise with potentially devastating
consequences
The recent war and humanitarian crisis in Ukraine are
a stark reminder that we live in a very uncertain and
politically divided world in which unprovoked acts of
aggression can quickly lead to dramatic shifts in the
geopolitical landscape and turbulent market dynamics.
This conflict, along with the COVID-19 pandemic,
have pressure tested the concept of globalization.
We will likely see a seismic shift in the dependence
on specific countries and economies and a more
divided economy.
In the case of the conflict in Ukraine, leading global
companies were forced to completely revisit their
relationship with Russia almost overnight and many
companies, including Takeda, made decisions to stop
any non-essential investments. Businesses will need to
redesign their supply chain strategies to be more agile
in light of this new world order.
HOW WE ARE RESPONDING
We were faced with very tough decisions as the
humanitarian crisis in Ukraine continued to escalate.
We ended all non-essential business with Russia with
one exception — delivering medicines to patients
in need. In Ukraine, we are working with global
humanitarian organizations to provide support to
Climate change threatens to undo
decades of global health progress.
The impact of climate change on our planet and future
way of life is one of the biggest risks facing the world
today, with profound implications for human health.
Climate change threatens to undo decades of progress
to control mosquito-spread diseases with the potential
to kill millions each year. Additionally, climate change
is undermining many of the social determinants for
good health, such as livelihoods, equality and access to
healthcare and social support structures.
HOW WE ARE RESPONDING
As a global healthcare company, Takeda and our
people have the knowledge and experience to help
address the disease-related impacts of climate change
through our core mission of developing life-changing
medicines and vaccines. We are also making significant
strides in decarbonizing our operations and value chain.
We have been carbon neutral since 2019 and we are
committed to achieving net-zero GHG emissions related
to our operations (Scopes 1 and 2) before 2035 and for
our entire value chain before 2040.
Learn more
The growth of data and digital
has the potential to transform
healthcare as we know it.
Over the past 24 months, industries have undergone
rapid digitalization, workers have shifted to remote and
hybrid working, and platforms and devices facilitating
this change have proliferated. Nowhere has digital
transformation been greater than in healthcare.
Social distancing measures have already forced
many providers to employ virtual care technology
for scheduled outpatient appointments. Hospitals
and health systems are turning to cloud computing,
5G telecommunications, artificial intelligence and
interoperable data and analytics to address current
challenges and build digitally powered care delivery
models for the future of health. Medical science is also
being transformed by scientific discoveries that will
dramatically advance the way healthcare professionals
diagnose and treat diseases. Breakthroughs in digital
medicines, nanomedicine, genomics and other fields
are occurring at an unprecedented and exponential
pace, building on transformed clinical trial structures.
Growing digital dependency also intensifies
cyberthreats. Attacks on large and strategic systems
have the potential to carry cascading physical and
financial consequences across societies. Meanwhile,
unequal access to connectivity and technology are
continuing to widen the digital divide within and
between societies.
HOW WE ARE RESPONDING
We see opportunities in data and digital to
accelerate the discovery, development and delivery
of our medicines and vaccines to patients. Find out
more from our newly appointed Chief Data and
Technology Officer.
Learn more
TAKEDA 2022 ANNUAL INTEGRATED REPORTPATIENTPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCEINTRODUCTION Materiality
We conducted a comprehensive materiality assessment to better understand which non-financial issues are strategically important to Takeda and of most interest to our
stakeholders. We prioritized the issues according to their level of importance and then linked them to our Patient, People and Planet imperatives. We’ll continue to review and
update our material topics on an ongoing basis, reporting our progress annually.
11
Learn more about our
materiality assessment
here.
Recent Environmental, Social and Governance (ESG) Recognition
DOW JONES
SUSTAINABILITY
ASIA PACIFIC INDEX
S&P Global
12th
ISS ESG
PRIME
STATUS
ISS
3rd
FTSE4GOOD
DEVELOPED
INDEX
FTSE Russell
17th
consecutive year
consecutive year
consecutive year
CDP A-LIST FOR
CLIMATE CHANGE
LEADERSHIP
Recognized as a
climate change leader
by scoring A- for
our climate change
disclosure
MSCI ESG
LEADERS
INDEX
MSCI
12th
consecutive year
ACCESS TO
MEDICINE INDEX
Access to Medicine
Foundation
Ranked 6th overall and
led the pharmaceutical
industry in Governance
of Access
TAKEDA 2022 ANNUAL INTEGRATED REPORTPATIENTPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCEINTRODUCTION About Takeda
Takeda is a global values-based, R&D-driven
biopharmaceutical leader committed to creating better
health for people and a brighter future for the world.
For more than 240 years, Takeda has focused on
delivering transformative treatment and significantly
increasing the value that we bring to society.
The work we do transforms lives, helping patients with
limited or no treatment options in our therapeutic
and business areas of oncology, rare genetics and
hematology, neuroscience, gastroenterology, plasma-
derived therapies and vaccines.
Takeda is headquartered in Tokyo, Japan, with a global
hub in Cambridge, MA, United States. We have a
presence in approximately 80 countries and regions, a
network of manufacturing sites around the world, and
major research centers in Japan and the United States.
Our global scale and strong portfolio of transformative
treatments have and will continue to generate
momentum and fuel innovation.
The people at Takeda do business with purpose, and
this is inherent in everything we do. Takeda employees
share the values and goals that have been passed down
for over two centuries. Guided by our commitment to
patients, our people and the planet, we strive to move
science forward so we can transform more lives.
12
OUR CORPORATE PHILOSOPHY
PURPOSE
Better Health for People, Brighter Future for the World.
VISION
Discover and deliver life-transforming treatments, guided by our commitment to patients,
our people and the planet.
VALUES: TAKEDA-ISM
Brought to life through actions based on:
1. Putting the patient first
2. Building trust with society
3. Reinforcing our reputation
4. Developing a sustainable business
In that order.
IMPERATIVES
PATIENT
PEOPLE
PLANET
DATA AND DIGITAL
TAKEDA 2022 ANNUAL INTEGRATED REPORTPATIENTPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCEINTRODUCTION 13
PLANET
Protect our planet
We will harness our unique capabilities to
deliver a high standard of environmental
leadership that protects our planet’s
natural systems and human health.
Corporate Philosophy Imperatives and Priorities
PATIENT
PEOPLE
Responsibly translate science into
highly innovative, life-changing
medicines and vaccines
We focus on diseases with the highest
unmet need to bring medicines and
vaccines of the highest quality to
patients as quickly as possible.
PRIORITY 1: Deliver life-changing
medicines and vaccines to people by
cultivating the best science generated
through our strong internal research and
development capabilities complemented
by our extensive partnership network.
PRIORITY 2: Embed a patient-centric
and science-driven approach from
discovery through commercialization
to ensure rapid, global access to all
transformative medicines and vaccines.
PRIORITY 3: Ensure the high-quality,
uninterrupted supply and delivery of our
medicines and vaccines to people by
harnessing innovation.
DATA AND DIGITAL
Unleash the power of data and digital
We strive to transform Takeda into the
most trusted, data-driven, outcomes-
based biopharmaceutical company.
Accelerate access to improve
lives worldwide
Create an exceptional
people experience
We partner with diverse stakeholders
to support the sustainability of healthcare
systems.
We aim to create a diverse and inclusive
organization where people can thrive,
grow and realize their own potential
while enabling our purpose.
PRIORITY 1: Provide timely, broad and
sustainable access to our innovative
medicines worldwide.
PRIORITY 1: Develop and attract top
talent to deliver our vision with a highly
engaged workforce.
PRIORITY 1: Minimize the environmental
impact of products and services based on
the principles of a circular economy.
PRIORITY 2: Ensure sustainable access
to our innovative medicines for patients
diagnosed with a serious condition in
underserved communities, in particular
where there are no medical alternatives.
PRIORITY 3: Improve patient outcomes
and create societal value through
partnerships.
PRIORITY 2: Focus on improving
employee health, well-being and
resilience.
PRIORITY 3: Drive positive change by
promoting diversity, equity and inclusion.
PRIORITY 4: Create an environment that
fosters lifelong learning and a growth
mindset, enabling employees to thrive
inside and outside of Takeda.
PRIORITY 2: Decarbonize our operations
and value chain.
PRIORITY 3: Empower our employees
to go above and beyond to conserve the
world’s natural resources.
PRIORITY 1: Provide personalized digital
experiences to patients across the
care pathway.
PRIORITY 2: Harness data as a digital
enabler to generate sustainable value by
acting on insights derived from analytics
and artificial intelligence (AI).
PRIORITY 3: Democratize technology
and develop digital talent to speed
innovation, improve outcomes and deliver
on our commitments to patients.
We based our corporate philosophy imperatives and priorities on issues that matter most to our business and our stakeholders, identified through the materiality assessment.
In 2022, we began to measure our progress against each priority. We intend to report third-party assured data against these metrics in our next annual report.
TAKEDA 2022 ANNUAL INTEGRATED REPORTPATIENTPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCEINTRODUCTION
Takeda by the Numbers1
1781
FOUNDED IN
OSAKA, JAPAN
HEADQUARTERS IN
TOKYO,
JAPAN
GLOBAL HUB
CAMBRIDGE, MA
UNITED STATES
14
APPROX.
$29.42
BILLION
FY2021 GLOBAL REVENUE
U.S.
JAPAN
EUROPE & CANADA
GROWTH & EMERGING
MARKETS
48%
18%
21%
13%
APPROX.
50,000
EMPLOYEES
AS OF JUNE 2022
U.S.
JAPAN
EUROPE & CANADA
GROWTH & EMERGING
MARKETS
40%
12%
30%
18%
30
MANUFACTURING
SITES
3
RESEARCH
SITES
~80
COUNTRIES &
REGIONS
1 All numbers as of June 2022, other than FY2021 global revenue.
2 Convenience translations have been made at an exchange rate of 1USD = 121.44 JPY.
TAKEDA 2022 ANNUAL INTEGRATED REPORTPATIENTPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCEINTRODUCTION Conditions Treated with Our Medicines and Vaccines
We are focused on key areas of unmet needs, including patient identification and diagnosis, digital health and
devices, and integrated evidence-based solutions.
NEUROSCIENCE
• Attention-Deficit Hyperactivity
Disorder (ADHD)
• Major Depressive Disorder (MDD)
ONCOLOGY
• Multiple Myeloma
NEUROSCIENCE
GASTRO-
ENTEROLOGY
15
GASTROENTEROLOGY
• Ulcerative Colitis
• Crohn’s Disease
• Crohn’s Disease
Complex Perianal Fistula
• Short Bowel Syndrome
RARE DISEASES
• Hunter Syndrome
• Non-Small Cell Lung Cancer
ONCOLOGY
RARE DISEASE
• Type 1 Gaucher Disease
PDT IMMUNOLOGY
• Immunodeficiency and Autoimmune
Diseases
• Primary Immunodeficiency (PI)
• Alpha-1 Antitrypsin Deficiency
PLASMA-DERIVED
THERAPY
VACCINES
1 Includes partnerships and clinical program. See current pipeline on Takeda.com for details.
• Fabry Disease
• Hereditary Angiodema (HAE)
• Hemophilia A
• Von Willebrand Disease
• Hypoparathyroidism
• Cytomegalovirus (CMV) Infection
VACCINES1
• Dengue
• COVID-19
TAKEDA 2022 ANNUAL INTEGRATED REPORTPATIENTPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCEINTRODUCTION 16
S P O T L I G H T
Takeda’s Purpose-led Sustainability in
Action at Hikari Plant
Takeda’s corporate philosophy, inspired by our values of Takeda-ism, guides our
people at every level, in every country in which we operate. Through their actions,
aligned with our purpose-led sustainability approach, our people put patients first,
build trust with society, improve our reputation, and create value for shareholders
and society.
Our Hikari site in Japan, home to more than 1,300 Takeda employees, is one of our
largest manufacturing facilities in the world, producing a range of products, from
active pharmaceutical ingredients to formulations and packaging. The examples
below illustrate how our employees in Hikari demonstrate our commitment to patient,
people and planet powered by data and digital.
PATIENT
Our employees’ commitment to values-
based behavior and ability to embrace
technology enabled Takeda to deliver
COVID-19 vaccines to Japan in
May 2022.
Typically, it takes 48 months to transfer
the technology and know-how from one
biological product manufacturing site
to another. But our team was able to
complete this in only 21 months.
Chosen by the government of Japan to
manufacture recombinant COVID-19
vaccines using Novavax’ technology for
local use, the Hikari site worked entirely
remotely with Novavax engineers in
the United States and Czech Republic
using video calls due to COVID-19
travel restrictions. The site also faced
shortages of critical materials due to the
pandemic. However, the team managed
the challenges with the aim of delivering
the vaccine to the people in Japan as
quickly as possible.
The site is also leveraging advances
in data and digital to accelerate the
production of innovative treatments.
Through our team’s commitment to
patients and through the power of
technology, we are helping ensure
high-quality, uninterrupted supply and
delivery of our life-saving products.
PEOPLE
At Hikari, our people embrace diversity,
equity and inclusion (DE&I) and are
empowered to take action that will
drive DE&I and employee well-being.
For example, in the past, only men
worked at our API site. The roles involved
carrying heavy materials and containers.
However, two young female employees
challenged this practice, raising their
hands to work at the site. This led to a
discussion to improve the operations as
well as tackle unconscious bias. The team
identified opportunities to use digital
and robotic technology and create
an automated working environment
where everybody, regardless of gender,
can work.
TAKEDA 2022 ANNUAL INTEGRATED REPORTPATIENTPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCEINTRODUCTION
17
PLANET
Our pioneering use of bio-polyethylene
(bio-PE) — a plastic derived from plant-
based bioethanol — in pharmaceutical
primary packaging at the Hikari plant,
the development of which started in
2013, is an example of our commitment
to decarbonize our operations and value
chain. Manufacturing bottles made with
bio-PE plastic emit up to 70% fewer CO2
emissions compared to petroleum-based
polyethylene bottles. The Japanese
Packaging Institute, the Asian Packaging
Federation and World Packaging
Organization recognized Takeda’s
Bio-PE bottle with respective awards.
We also value social connections.
Members of our local Environment,
Health and Safety (EHS) team visited
a local junior high school to discuss
the importance of the United Nations
Sustainable Development Goals (SDGs),
and during World Environment Day
2022, our employees held a community
clean-up event around Hikari. These
voluntary actions toward climate change
may seem small, but they are helping to
accelerate big changes.
In addition, the site is engaging with
other Takeda sites to leverage internal
expertise to help build capabilities
and apply learnings from across
Takeda’s manufacturing sites, such as
Good Manufacturing Practices (GMP)
workplans. Top talent from Takeda’s
global network and the Hikari site were
selected to lead this project. Hikari team
members can reach out to their global
GMP workplan members both on- and
off-site. Having access to these global
experts is helping the site implement
continuous improvement activities
while running the business. We also
introduced a new development program
to foster future global leaders from
Hikari. Currently, more than 30 high-
potential employees are participating in
the program, which includes a focus on
global communication, cross-cultural
learning, networking opportunities with
senior leaders, and overseas secondment
opportunities.
TAKEDA 2022 ANNUAL INTEGRATED REPORTPATIENTPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCEINTRODUCTION
18
VALUES-BASED
GOVERNANCE
Our governance structures and principles set
the foundation for and guide Takeda employees
in living our corporate philosophy, which puts
into action the values we live by at every level, in
every country in which we operate.
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCE Christophe Weber
President & CEO
Masami Iijima
External Director,
Chair of the
Board Meeting
Our Leadership
Our leadership, comprised of our Board of Directors (Board) and
Takeda Executive Team (TET), is accountable to the communities that
rely on us for responsible delivery of our commitments to patients.
As a global, values-based, R&D-driven biopharmaceutical company, we
are built to operate on a worldwide scale with risk management that’s
sound and transparent. Our people put patients first, build trust with
society, improve our reputation, and develop the business — always in
this order — to create value for shareholders and society.
19
Board of Directors
The primary function of the Board is to provide
oversight to ensure we execute a sound strategy,
monitor and address risks, and instill effective
governance in order for Takeda to create long-term
value for its stakeholders. It discusses and makes
decisions on strategic matters regarding company
management, such as the establishment of and
amendments to the company’s corporate philosophy,
mid- to long-term strategies and management policies.
The Board will also review our sustainability agenda,
and is responsible for the oversight of business
executed by directors.
Takeda disclosed the Board of Directors Charter, which
specifies the matters to be resolved by and reported to
the Board.
Composition of the Board
As of June 29, 2022, the Board has 15 directors with
diverse global experiences; 11 are independent external
directors including Chair of the Board Meeting. In
June 2022, Masahiro Sakane retired as Chair of the
Board Meeting. On June 29, 2022, Masami Iijima, an
independent external director, became the new Board
Chair. We also welcomed our newest Board members,
Kimberly A. Reed and John Maraganore.
The Board is comprised of directors who contribute to
the balance of knowledge, experience and capability
needed for governance of the company’s global
management at a global scale. When considering new
members, the Board considers candidate diversity,
including gender, age, work history, race, ethnicity and
11 of our 15
directors are independent external directors
including our Chair of the Board Meeting.
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCE 20
cultural background. Current Board directors represent
a broad array of skills in areas such as global business
and strategy; science and medicine; legal, regulation, and
public policy; corporate governance and sustainability;
finance and accounting; healthcare industry, data and
digital; and management, leadership and human capital
management. See our Board skills matrix.
Committees
Takeda is a ‘Company with an Audit and Supervisory
Committee’ as stipulated in the Japanese Company
Act. Takeda voluntarily establishes Nomination and
Compensation Committees as advisory committees
of the Board. Each committee consists entirely of
external directors, which ensures the independence of
the committee.
• Audit and Supervisory Committee: Audit and
Supervisory Committee ensures its independence
and effectiveness in line with the Audit and
Supervisory Committee Charter. This committee
conducts audits of directors’ performance of
duties and performs any other duties stipulated in
applicable laws and regulations in Takeda’s Articles
of Incorporation.
• Nomination Committee: The Nomination Committee
examines the policy on the Board of Directors’
diversity and the skills of directors, the criteria and
procedures for Board members’ appointment/
reappointment, succession plans and administration
of such plans, and confirms the appropriateness of
the candidates of Board members.
In FY2021,
we disclosed our Board Committee Charters —
a significant step in increasing transparency.
Compensation Committee decides the amount of
compensation for individual internal directors with a
resolution of delegation by the Board of Directors.
The company aims for increased transparency and
independence of the Board, and continuously works
to further enhance corporate governance. In FY2021,
we disclosed the Board of Directors Charter and
Committee charters for our Board Committees on our
corporate governance website. Takeda is one of the few
biopharmaceutical companies to make its committee
charters publicly available.
Audit and Supervisory Committee Charter
Nomination Committee Charter
Compensation Committee Charter
Takeda Executive Team
Under Takeda’s Articles of Incorporation, the Board
delegates several responsibilities for decision-making
to the company management, carried out through
three committees:
progress made against the company’s new non-
financial corporate philosophy metrics.
• Portfolio Review Committee (PRC): Is responsible
for R&D and product-related matters; chaired by the
President of R&D for early development decisions,
and co-chaired by the President of R&D and the
President of our Global Portfolio Division or president
of the related business unit for late-stage pipeline
assets. The committee will work closely with the
BSC to ensure alignment of efforts in support of the
company’s financial and non-financial goals.
• Risk, Ethics and Compliance Committee (RECC):
Is responsible for risk management, business ethics
and compliance matters throughout the organization
chaired by the Chief Ethics & Compliance Officer.
The Board supervises management’s execution of these
matters through regular committee reports.
In FY2021, Takeda announced leadership changes
to the TET to increase the company’s focus on
key strategic areas moving forward. This included
establishing the new TET roles of Chief Data and
Technology Officer and President of the Global
Portfolio Division. In addition, the role of our Chief
Global Corporate Affairs Officer was expanded to
include Sustainability Officer responsibilities and
remains represented on the TET.
As of April 1, 2022, the TET includes 18 members
diverse in nationality (nine countries), age and gender.
• Compensation Committee: The Compensation
• Business and Sustainability Committee (BSC): Is
See more in Takeda’s Corporate Governance Report.
Committee examines the compensation policies for
directors other than Audit and Supervisory Committee
members and the appropriateness of compensation
including its specific distribution to each director
other than members of the Audit and Supervisory
Committee. In addition, to ensure the objectivity
and transparency of compensation determinations,
responsible for corporate, business development and
sustainability-related matters; chaired by the President
and CEO. Previously titled the Business Review
Committee (BRC), as of April 2022, the committee’s
title was updated to BSC, and remit expanded to
include decisions on non-financial business matters.
It will provide regular updates to the Board on
Women make up
33%
of Takeda’s Executive Team
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCE Corporate Governance Structure
Our advanced and robust corporate governance model has been, and will continue to be, critical to our success.
21
Shareholders’ Meeting
Advisory Committee
Nomination
Committee
Compensation
Committee
Board of Directors
Audit and Supervisory
Committee
Takeda Executive Team
Business and
Sustainability Committee
Portfolio Review
Committee
Risk, Ethics and
Compliance Committee
Global Portfolio Division & Business Units/Business Functions/Business Partners
SEE MORE IN TAKEDA’S
Corporate Governance Report
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCE Board of Directors
Takeda highly values best-in-class governance. Takeda’s
Board comprises 15 experienced global leaders from
diverse backgrounds. Eleven of them are independent
external directors.1
4 INTERNAL DIRECTORS
11 INDEPENDENT EXTERNAL DIRECTORS
CB
NC
CC
NC
CC
22
CHRISTOPHE WEBER
Representative Director
President & CEO
MASATO IWASAKI
Representative Director
Japan General Affairs
MASAMI IIJIMA
External Director,
Chair of the Board Meeting
Chair of Nomination
Committee
NC
OLIVIER BOHUON
External Director
JEAN-LUC BUTEL
External Director
IAN CLARK
External Director
ANDREW PLUMP
Director
President, Research &
Development
COSTA SAROUKOS
Director
Chief Financial Officer
STEVEN GILLIS
External Director
JOHN MARAGANORE
External Director
MICHEL ORSINGER
External Director
CB Chair of the Board Meeting
ASC Audit & Supervisory Committee
NC Nomination Committee2
CC Compensation Committee
AUDIT & SUPERVISORY COMMITTEE (ASC)
ASC
ASC
NC
1 As of June 29, 2022.
2 Christophe Weber participates in the committee as an observer.
KOJI HATSUKAWA
External Director,
Chair of ASC
YOSHIAKI FUJIMORI
External Director
EMIKO HIGASHI
External Director
Chair of Compensation
Committee
KIMBERLY A. REED
External Director
NC
CC
CC
ASC
ASC
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCE Takeda Executive Team
23
CHRISTOPHE WEBER
Representative Director
President & CEO
ANDREW PLUMP
Director,
President, Research &
Development
COSTA SAROUKOS
Director,
Chief Financial Officer
GABRIELE RICCI
Chief Data & Technology
Officer
KOKI SATO
Corporate Strategy
Officer & CEO Office
GILES PLATFORD
President,
Plasma-Derived Therapies
Business Unit
JULIE KIM
President,
U.S. Business Unit
NATIONALITIES
9
AGES
30–60s
WOMEN
33%
JERRY GRECO
Global Quality Officer
LAUREN DUPREY
Chief Human
Resources Officer
MARCELLO AGOSTI
Global Business
Development Officer
MASATO IWASAKI
Representative Director
Japan General Affairs
MILANO FURUTA
President,
Japan Pharma Business Unit
RAMONA SEQUEIRA
President,
Global Portfolio Division
THOMAS WOZNIEWSKI
Global Manufacturing
& Supply Officer
MWANA LUGOGO
Chief Ethics &
Compliance Officer
TAKAKO OHYABU
Chief Global Corporate
Affairs & Sustainability
Officer
YOSHIHIRO NAKAGAWA
Global General Council
TERESA BITETTI
President,
Global Oncology
Business Unit
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCE Shareholder Engagement
Takeda is committed to regular, ongoing engagement
with shareholders to ensure that we continue to
understand shareholder feedback and deepen
shareholders’ understanding about topics including
the company’s strategies, current business status,
management policy, corporate governance,
compensation and measures addressing environmental
and social issues. In FY2021 Takeda had multiple
meetings and conference calls with shareholders,
investors and analysts, and their feedback helped
inform our decisions to increase transparency
including, for example, by voluntarily disclosing
the Articles of Incorporation, Board of Directors
charter and Committee charters on our corporate
governance website.
Director Compensation
Takeda’s Director compensation is designed to attract,
retain and motivate managerial talent to realize our
vision, to increase corporate value through optimizing
the company’s mid- and long-term performance, and
to support a shared sense of profit with shareholders
and improve the managerial mindset focusing on
shareholders.
We aim to be competitive in the global marketplace to
attract and retain talent who will continue to transform
Takeda into a global, values-based, R&D-driven
biopharmaceutical leader. Directors’ compensation
should be competitive in the global market.
The compensation for directors who are not Audit &
Supervisory Committee (ASC) members (excluding
external directors) consists of Basic Compensation
and Performance-based Compensation. Performance-
based Compensation further consists of Bonus
(Short-Term Incentive) and Long-term Incentive (LTI)
Plan. The LTI Plan is allocated as 60% for Performance
Share Unit awards and 40% for Restricted Stock Unit
awards to strengthen the link between compensation
and company performance and share price, and to
reinforce the commitment to increasing corporate value
in the mid and long term.
awards compensation factoring in performance over a
three-year period.
24
Please refer to “TAKEDA’S EXECUTIVE
COMPENSATION OVERVIEW” for further details of
Takeda’s executive compensation.
The compensation for external directors and directors
who are ASC members consists of Basic Compensation
and LTI, which is Restricted Stock Unit awards
linked only to share price and not linked to company
performance results.
Guiding principles, level of Compensation and
Compensation mix of Director Compensation
Policy at Takeda are disclosed in “Directors’
Compensation Policy.”
Executive Compensation
Takeda’s executive compensation structure reflects
our position as a patient-focused, values-based,
R&D-driven global biopharmaceutical company. Our
executive compensation programs are designed to be
globally competitive and performance-oriented, while
also considering local market factors.
Our executive compensation strategy is designed
to closely link pay with performance and long-
term shareholder value creation while minimizing
excessive risk-taking. We achieve these objectives
through a balanced combination of the three primary
components: Base Salary, Short-Term Incentives (STI)
and LTI of our executive compensation structure.
The mix of compensation reflects Takeda’s desire
to link executive compensation with individual,
executive group and company performance. A
substantial portion of the target pay for executives is
performance-based.
The annual STI and LTI Performance Share Unit
awards (PSU awards) payouts are contingent upon
company performance, with the STI factoring in
performance over a one-year period, and LTI PSU
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCE 25
into our risk management methodology. Our
methodology identifies and assesses the company’s
risks, mapped against the PTRB impact scale and
five-year likelihood scale to create an enterprise risk
heatmap. We think this is an important development
that will more fully align our process with our patient-
focused corporate philosophy and values.
We also implemented a simple and user-friendly
enterprise risk assessment tool, which facilitates a single
view of risk across the company. By leveraging the
new technology-based solution, we expect to realize
efficiency gains and improve our ability to analyze
data and trends resulting in a more data-driven and
business-relevant approach. We have also developed
dashboards for consistent reporting and tracking of
key risk indicators to enable ongoing discussions with
senior leadership.
Taxation
Takeda is committed to responsible corporate
citizenship; we comply with the tax laws in the
jurisdictions in which we do business, and we engage
in open and transparent dialogue with relevant tax
authorities. As stated in our Position on Taxation
document, Takeda supports the Organization for
Economic Co-operation and Development’s (“OECD”)
Base Erosion and Profit Shifting (“BEPS”) initiative
concerning international tax reform and opposes the
use of artificial tax arrangements that do not have
sufficient business or economic substance.
Our values of Takeda-ism are expressed within our
corporate philosophy and our Global Code of Conduct.
They provide a foundation for policies and governance,
which support our compliance with tax laws and
regulations where we operate and require us to identify
and mitigate material tax risks.
Enterprise Risk
Management (ERM)
Risk management helps protect the company’s people,
assets and reputation while supporting Takeda’s long-
term strategy for growth and success.
The overall ERM process is the responsibility of the
Chief Ethics & Compliance Officer, with oversight from
the Board of Directors. Principal enterprise risks and
their mitigation effectiveness are approved by the
RECC and Board of Directors on an annual basis.
We embed risk management within all levels of the
company through our enterprise risk assessment
process designed to generate a holistic view of risks for
the company and drive a culture of risk-based decision
making. Each relevant functional area within the
business is responsible for managing its key risks and
responses to them.
In FY2021, we completed our first Task Force
on Climate-Related Financial Disclosure (TCFD)
report. This report outlines the potential risks to
our business from climate change under three
climate scenarios over two time horizons, 2030
and 2050. It also summarizes our associated
risk management and mitigation strategies. Our
report is available on our website. To read more
about our efforts to decarbonize our value chain,
see page 47.
In FY2021, based on engagement with internal
senior stakeholders as part of a continuous cycle of
improvement of our ERM program, we integrated
Patient, Trust, Reputation, Business (PTRB) — which
bring our values of Takeda-ism to life (see page 12) —
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCE
26
to senior management. All concerns are addressed
promptly, confidentially and respectfully.
The Takeda Ethics Line provides an alternative channel
where employees and the public can raise concerns
if they feel Takeda employees are not living up to our
values. It is available online and by phone, 24 hours a
day, in 20 languages. If desired, concerns may be raised
anonymously. Timely and appropriate action is taken
against any misconduct.
We are committed to analyzing and understanding
the root causes of misconduct to help prevent similar
issues arising again. In FY2021, we hosted activities
throughout the organization to encourage our
employees to speak-up, including an external speaker
series and workshops on psychological safety. We
also revised our global policy on raising and handling
concerns to align with industry best practices.
Ethics & Compliance
Takeda is committed to achieving the highest standards
of ethical behavior beyond compliance with laws and
regulations. This is at the heart of Takeda-ism and is a
defining feature of our corporate culture (see page 12).
Promoting ethics and compliance across Takeda’s
operations is the responsibility of our Chief Ethics &
Compliance Officer and our RECC. Takeda executes
and reinforces its ethics and compliance programs
in conformity with our Global Code of Conduct (the
Code) and applicable global policies, as well as local
regulations. These policies are approved by the BSC.
Available in 21 languages, the Code of Conduct
promotes ethical behavior though a core set of principles
for conducting business at Takeda. In FY2021, we
refreshed our Code to reflect our corporate philosophy
and incorporate our values-based decision-making
framework. The framework guides employee decision
making to help ensure it is in line with our values of
Takeda-ism. We also strengthened the Code on topics
such as human rights, diversity, equity and inclusion,
and sustainability. In addition, we launched an updated
conflicts of interest standard to help employees
recognize and manage conflicts of interest situations
transparently and efficiently.
For information on our approach to responsible
sourcing and management of ethical behavior in our
supply chain, see our ESG Portal.
Takeda’s Ethics Line and Speak Up Culture
Takeda aims to create a safe place for employees to
raise concerns about potential misconduct, while also
offering protection against retaliation. Concerns can
be raised internally through functions such as Human
Resources, Legal, Ethics and Compliance, or directly
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCE Human Rights
We are committed to respecting and promoting internationally recognized human rights within every aspect of our business,
across our supply chains and in the communities where we operate. We expect the same from suppliers and third parties
operating on our behalf. We do this in accordance with the International Bill of Human Rights, comprised of the Universal
Declaration of Human Rights, the International Covenants on Civil and Political Rights, and Economic, Social and Cultural Rights,
and the International Labour Organization Core Labor Conventions. In addition, we’re implementing the UN Guiding Principles
on Business and Human Rights.
In FY2021, we developed a human rights commitment and conducted a comprehensive human rights impact assessment
through which we have identified our most relevant (salient) human rights impacts. These include:
PATIENT
PEOPLE
PLANET
Sustainable access to our medicines
Health and safety
Greenhouse gas emissions
Product quality and product safety
Diversity, equity and inclusion
Water
Clinical trials
Labor rights in the workplace
Waste generation
Privacy and data protection
Third-party labor rights
27
By focusing on these most relevant
human rights impacts, we believe we
have the greatest ability to respect and
promote the following individual articles
of human rights:
• Right to Health
• Right to Equality and Freedom from
Discrimination
• Right to Life, Liberty and Security
• Right to Adequate Living Standard
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCE
28
COMMITMENT TO
PATIENT
We discover and deliver life-transforming
treatments, guided by our commitment to
patients. Our researchers, together with
world-class external partners, translate
science into highly innovative, life-changing
and life-saving medicines. We are also
pushing boundaries to accelerate access to
healthcare for more people worldwide.
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCEPATIENT Responsibly translating science
into highly innovative, life-changing
medicines and vaccines
We don’t go after easy wins. At Takeda, we are innovators and collaborators who bring forward ground-
breaking treatments to patients with significant unmet needs. Our internal labs collaborate with world-
class partners to access cutting-edge science wherever it originates, helping us build a modality-diverse
and innovative pipeline. Together, with our investments in data and digital, we aim to deliver medicines to
patients all over the world.
29
The Strength of Our
Portfolio and Pipeline
Takeda supports R&D efforts across
three areas: Innovative Biopharma,
Plasma-Derived Therapies (PDT) and
Vaccines. The R&D engine for Innovative
Biopharma, our largest R&D investment,
has produced a diverse and dynamic
pipeline in areas of high unmet medical
need across our core therapeutic
areas where we have deep expertise:
oncology, rare genetics and hematology,
neuroscience and gastroenterology.
Our pipeline contains approximately
40 new molecular entities, many with
the potential to become life-changing
treatments in the next decade.
Momentum across our portfolio is the
result of a robust partnership network
and investments in foundational
technologies and data sciences. These
investments, combined with our
expertise, enable Takeda to advance
a modality-diverse pipeline and build
robust capabilities in new areas.
You can learn more about our
pipeline here.
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCEPATIENT 30
FY2021 Milestones
Takeda continued to deliver transformative innovation to patients in FY2021 with two major new molecular entity
approvals and continued expansion of our growth and launch products. Examples of these milestones that are
helping to deliver near-term growth for Takeda include:
LIVENCITY®
(Maribavir): Redefining the management of post-
transplant refractory/resistant cytomegalovirus
infection. In 2021, it became the first and only
treatment indicated by the U.S. Food and Drug
Administration (FDA) for transplant recipients
who are 12 and older and weigh at least 35kg.
EXKIVITY®
(Mobocertinib): The first FDA-approved oral
insertion therapy for patients with EGFR Exon20+
metastatic non-small cell lung cancer whose
disease has progressed on or after platinum-based
chemotherapy. A rare mutation, EGFR Exon20
insertion+ NSCLC comprises about 1–2% of patients
with NSCLC and, until recently, was an underserved
cancer that did not have targeted treatment
options available.
VONVENDI®
[Von Willebrand factor (Recombinant)]: The first
and only FDA-approved prophylactic treatment
to reduce the frequency of bleeding episodes
in patients with severe Type 3 von Willebrand
disease receiving on-demand therapy — marking
a significant advancement for those living with
this serious inherited bleeding disorder.
ENTYVIO®
(vedolizumab): The first treatment indicated in
the European Union for patients with moderately
to severely active chronic pouchitis, who have
undergone proctocolectomy and ileal pouch-anal
anastomosis (IPAA) for ulcerative colitis (UC),
and have had an inadequate response with or lost
response to antibiotic.
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCEPATIENT We Go Where the Science Is
In FY2021, Takeda continued to establish
strategic collaborations and targeted
acquisitions, announcing immuno-
oncology “build-to-buy” acquisitions with
GammaDelta Therapeutics and Adaptate
Biotherapeutics. Both collaborations
demonstrate the value of partnering
with early-stage innovators to accelerate
cutting-edge platforms, which help
strengthen our R&D efforts.
Gene therapy is a key area where Takeda
continues to invest through strategic
research partnerships. Our growing internal
capabilities and network of public and
private partnerships with companies like
Evozyne, Poseida Therapeutics, Selecta
Biosciences, Immusoft, Genevant Sciences
and Code Biotherapeutics will help us
discover and develop differentiated “next-
generation” gene therapy programs with
the aim to deliver functional cures for
patients. Takeda is pursuing development
in a number of rare genetic and non-
malignant hematological diseases that
we believe are ideal for gene therapy,
and we expect to expand into other
diseases across our neuroscience and
gastrointestinal therapeutic areas.
31
Partnering to Accelerate
Discovery and Development
The challenge of discovering and
developing new treatments for genetic
disorders cannot be solved by any one
organization. We lead or participate
in more than 100 R&D public private
partnerships across more than 75 countries,
dedicating the expertise of our scientists
and our data. Many of these partnerships
involve patient organizations, top medical
centers, leading academic institutions and
regulatory agencies working together to
better understand patient needs and how
best to speed up the development of new
treatments. Examples include the Bespoke
Gene Therapy Consortium (BGTC), ARDAT
(Accelerating Research & Development for
Advance Therapies) and Screen4Care.
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCEPATIENT 32
S P O T L I G H T
USING DIGITAL TOOLS TO
CREATE A NEW, MORE INCLUSIVE
ERA IN CLINICAL TRIALS
Until recently, participation in a clinical trial required
multiple in-person visits to a medical site, which could
be miles from a participant’s home and occur at times
that may conflict with a participant’s work or childcare
schedule. For many, the burden of participation was too
high to even consider enrollment.
In the future, we envision two models, depending on
local regulations: hybrid, which features a mix of on-
site and remote participation, and fully decentralized,
where all elements of the trial are conducted virtually
or at the participant’s home. Which approach we take
depends on multiple factors and the need to collect
data suitable from a regulatory perspective. We believe
these approaches will not only help us recruit a wider
and more diverse range of participants but will also
allow us to do so more quickly, at less expense and with
increased participant retention.
Based on patient feedback, we understand that fully
virtual trials are not right for everyone. Some patients
may not be comfortable with technology or may not
have access to reliable internet service. Others prefer
the opportunity to meet with fellow patients. For
these participants, a mix of on-site and home health
visits may be a better solution. But one thing is certain:
Designing trials for and with patients is the best way to
meet their needs.
TRADITIONAL
CLINICAL
TRIALS
HYBRID
TRIALS
HYBRID
HYBRID
TRIALS
TRIALS
FULLY
DECENTRALIZED
TRIALS
High
virtualization
High number
of site visits
All visits are on site
All data collection is on site
All therapies are administered
on site
Mixture of on-site, virtual,
and/or home health visits
All visits are through home
health service
Mixture of on-site and remote
All data are collected remotely
data collection
Mixture of administering
therapy on site and at
patient’s location
All therapies are delivered
and administered at patient’s
location
TRADITIONAL CLINICAL TRIALSFULLY DECENTRALIZED TRIALSHYBRID TRIALSTAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCEPATIENT 33
Q&A with
Ramona Sequeira
President
Global Portfolio Division
In early 2022, Ramona Sequeira was named
President of the company’s new Global Portfolio
Division. She will create a unified global
organization to power our launch capabilities,
allowing us to accelerate access of our new,
life-transforming therapies to more people
worldwide. In 2022, she also took on the role
of Chair of the Pharmaceutical Research and
Manufacturers of America (PhRMA) board
of directors. Learn what Sequeira believes is
key to building trust, expanding access and
maintaining a thriving biopharma sector key.
Learn more
available to patients and their healthcare providers to
help patients track their own health and drive more
informed conversations with their providers.
If patients choose to share their data more broadly,
it will be anonymized and stored securely by H2O.
Together, data will provide valuable insights on the
burden of disease and the value of treatment among
key populations. This is expected to help researchers,
regulators, payers and others identify where additional
research into new treatments is most needed and
investment of finite healthcare resources can have the
greatest impact on public health.
By creating a standardized framework, H2O hopes to:
• Improve the dialogue between patient and healthcare
provider, so that patients receive better care
• Improve healthcare professional’s access to data to
inform their clinical decisions
• Ultimately improve the quality and sustainability of
care based on outcomes that matter to patients
H2O is the first-ever unified attempt to collect and
incorporate PROs into healthcare decision-making
at individual and population levels. Takeda has taken
a leading role in driving the implementation of the
initiative, along with other biopharma companies,
academics, hospitals, regulatory authorities and
payor agencies.
Key achievements in FY2021 included the development
of a multi-stakeholder governance model; a milestone
collaboration with the Dutch National Health Care
Institute, The Danish Medicines Agency, Danish Health
Data Authority and Aarhus University Hospital; and the
publication of a standardized set of PROs.
Learn more
Q&A with
Gabriele Ricci
Chief Data and
Technology Officer
One of the imperatives embedded in Takeda’s
corporate philosophy is to unleash the power of
data and digital to drive innovation for the benefit
of patients, our colleagues and the planet. In early
2022, Gabriele Ricci became the company’s first
Chief Data and Technology Officer. Learn more
from Ricci on the exciting transformation taking
place at Takeda and the possibilities that await.
Learn more
Using Data and Digital to Advance
Patient-Centered Care
In FY2021, we supported the Health Outcomes
Observatory (H2O) for the second year of a five-year
program.1 The initiative strives to create a patient-
centric data-sharing ecosystem, fueled by technology
partners who will provide patients with tools to
measure their health outcomes in a standardized way,
and at the same time give them full control of their
data, including deciding who can access it. Dashboards
based on patient-reported outcomes (PROs) will be
1 H2O is one of our public private partnerships sponsored by the European Innovative Medicines Initiative.
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCEPATIENT Addressing Health Inequity
Through the Takeda Center for Health Equity and Patient Affairs (HEPA), launched
in 2020, we are collaborating with diverse partners, including patients, communities
and organizations, as well as public and private organizations, to identify and address
health inequities in communities. Within Takeda, HEPA sits at the intersection of
research and access activities, serving as a center of excellence to all business units.
Equity starts with understanding. Once we understand diverse patients’ needs and
the communities in which they were born, grow, live, work and age, we can create
more inclusive practices and develop innovative medicines that better reflect how
patients wish and need to engage with healthcare to achieve their highest level
of health.
What is Health Equity?
34
EQUALITY
EQUITY
Health equity means that everyone has a fair and just opportunity to be as healthy as possible. This means addressing social
determinants of health, e.g., poverty, racism, discrimination, unemployment and other barriers that impact our ability to be healthy
and disproportionately impact disadvantaged and underserved communities and patients.
This illustration is based on the original 2017 Robert Wood Johnson Foundation’s “What is Health Equity” graphic.
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCEPATIENT 35
One of our newest health equity
partnerships in the United States is in
Louisiana, a state which ranks lowest
in health outcomes in the country.1
The Takeda-Xavier University of
Louisiana Partnership for Improved
Health Outcomes seeks to:
• Build trust with historically
underserved communities
• Increase diversity and health
equity expertise of graduate and
postgraduate public health researchers
and PharmD’s
• Develop enhanced methodologies
to use health informatics to advance
equitable science and clinical care and
patient outcomes
• Encourage participation in
clinical trials with a focus on
underserved communities
• Enhance care models by addressing
social determinants of health
We also launched a partnership in 2021
with Remote Area Medical (RAM), which
helps local communities provide free
dental, vision and medical services to
patients in rural, underserved areas of
the United States. Our support will help
RAM operate pop-up clinics in additional
communities.
Raising Awareness
Takeda’s Center for Health Equity
and Patient Affairs (HEPA) and
Springer Nature, a leading provider
of trusted scientific information, are
coming together to raise awareness
of health inequity around the world.
The Scientific American Collection,
an editorially independent digital
collection of articles about health
equity, produced with support from
Takeda and published in December
2021, aims to spur awareness and
new ideas to improve equity and
health outcomes. In June 2022,
Scientific American also published
an Innovations In special report
focused on health equity, which
includes a video documentary.
HEPA is also proud to sponsor
an annual global conference,
Nature Café, on health equity
with leading health experts in the
field, scheduled to occur for the
first time virtually in late 2022. In
addition, HEPA is supporting a new
global Nature Awards program
that will shine a light on existing
best practices and people making
a difference in delivering inclusive
health research to address health
inequities. It is expected to open for
submissions in September 2022.
1 United Health Foundation Rankings
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCEPATIENT 36
Accelerating
Availability and
Access to Improve
Lives Worldwide
We work to provide timely, broad and sustainable access to our global
products worldwide, including in underserved communities and countries
with evolving healthcare systems where there are no medical alternatives.
The first step post regulatory approval is working to ensure product
availability and supply.
Global Product Availability
We are committed to registering our
growth and launch products where there
is need and the infrastructure to support
their secure and sustainable delivery to
patients, as illustrated by our approach
to registering our investigational
dengue vaccine.
Dengue is the fastest-spreading
mosquito-borne viral disease in the
world, estimated to cause 390 million
infections each year. Half the world’s
population currently lives under the
threat of dengue. In 2021, Takeda’s
dengue fever vaccine candidate
(TAK-003) became the first
investigational candidate to participate
in the European Medical Agency’s (EMA)
parallel assessment of a medicinal
product for use in the European
Union (EU), and through the EU-M4all
procedure, for countries outside of
the EU, particularly low- and middle-
income countries.
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCEPATIENT 37
Ensuring High-Quality
Supply
S P O T L I G H T
We are committed to providing
uninterrupted supply of life-changing
medicines and vaccines, and to
maintaining strict quality standards and
effective supply chain management to
ensure their safety and security.
Learn more about our approach
to product safety and quality.
Accelerating Supply of
COVID-19 Vaccines in Japan
Takeda has stepped up to help ensure
supply of COVID vaccines in Japan.
Through our collaboration with Novavax,
a technology transfer is being executed
at our Hikari facility to allow for the
local development, manufacturing and
commercialization of Novavax’ COVID-19
vaccine candidate (TAK-019). We have
a commitment from the Government
of Japan’s Ministry of Health Labour
and Welfare (MHLW) to purchase up to
150 million doses.
In 2021, we imported and distributed
50 million doses of Moderna’s COVID-19
vaccine (Spikevax™) as part of a three-
way partnership with Moderna and
MHLW. In 2022, we are implementing
agreements to import and distribute an
additional 93 million booster doses.1
PLASMA-DERIVED THERAPIES
AT A GLANCE | Takeda’s Plasma-Derived Therapies Business Unit
Improving the End-to-End Donor-to-
Patient Process
Treatment with plasma-derived therapies
can significantly improve the quality of
life and life expectancy of people who
live with a variety of rare and complex
chronic diseases. Very often, plasma
therapies may be their only treatment
option. With earlier diagnosis, increased
screening and improved standard of
care for these diseases, the number
of people around the world who can
benefit from plasma-derived therapies is
rapidly growing.
To meet accelerating demand, we
committed to increase our plasma
supply and manufacturing capacity
by >65% by end of FY2023 (from a
FY2018 baseline).
Key Milestones
• Met all supply commitments to
patients worldwide in 2021 and grew
market share despite the impact
of COVID-19
• Surpassed pre-pandemic donation
volumes consistently by end of June
2021 — the only company to do so
in CY2021
• Grew network of donors by 56%
since FY2018
> 20 plasma medicines supplied to patients in more than 80 countries
> 200 high-quality BioLife donation centers in the U.S. and Europe
> 8 world-class plasma manufacturing facilities
Reaching More Patients through a
Differentiated Donor Experience
Unlike traditional pharmaceutical
products, plasma cannot be replicated
in a lab. Plasma must be donated by
healthy individuals.
Recognizing the need for — and
importance of — attracting more people
to donate, we are expanding the number
of BioLife Plasma donation centers
available for donors. Since 2018, we
have increased the number of centers
by more than 100 — and we are doing
so sustainably by building all new U.S.
centers as all-electric facilities, starting in
September 2021.
In 2021, we completed the migration
of all our U.S. BioLife Plasma Services
donation centers to the cloud, creating
an enterprise-wide intelligence engine
with robust AI-driven capability that
will enable us to collect, connect and
It can take up to
1,200
plasma donations to treat one
chronically ill patient for one year.
Since its launch in May 2021,
Success Coach has had more than
8,000
unique users, and nearly 3,000
return users.
exchange real-world data securely. By
transforming this data into actionable
insights, we expect to deliver larger
plasma donation volumes and faster
processing times.
Similarly, we are attracting more donors
by combining cloud-based data-
driven insights with industry-leading
omnichannel engagement, providing
donors with a more personalized
experience. We launched our live
Facebook chatbot “Success Coach” —
the first-ever AI virtual assistant for
potential donors in the United States.
The bot provides a personalized chat
experience with potential donors,
answering questions and providing
useful tips and instructions for
registering and preparing to donate.
1 Takeda will transfer the marketing authorization in Japan for Spikevax™ to Moderna as of August 1, 2022.
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCEPATIENT Sustainable Patient Access
Takeda believes an integrated, collaborative and sustainable approach to
patient access can help address the challenges health systems and patients
face around the world. Because health systems and access challenges differ
both between and within countries, we tailor our approach, working with local
stakeholders, based on country needs and demographics (including income).
Our actions are guided by our global access strategy, which includes:
• Collaborating with partners to strengthen healthcare systems
• Investing in programs and solutions that address affordability barriers
and enable access, including:
— Tiered pricing
— Patient assistance programs
— Value-based healthcare models
• Working with policy makers to broaden patient access
Solutions to Address Affordability Barriers and Enable Access
Our value-based approach to healthcare begins with how we price our growth
and launch products.
We price our medicines in line with our value-based pricing principles to reflect
the holistic value they offer to patients, the healthcare system and society.
We are committed to establishing responsible prices that are acceptable to
payors and society.
Strengthening Access to Medicines in Countries with
Evolving Healthcare Systems
While barriers to access exist around the world, those most acutely
impacted are underserved communities in countries with evolving
healthcare systems or limited access to resources. Barriers to access
within, and between, populations range from the levels of capacity and
resources needed to prevent, educate and raise awareness of care, to
the specialized skills needed by healthcare providers to screen, diagnose
and treat patients.
Read more about our approach to Access to Medicines and
examples of our programs.
38
PATIENT
COVERAGE
Volume, breath
and depth
OPTIMAL
PATIENT ACCESS
SPEED
Time to
reimbursement
TIERED
PRICE
Value
Takeda Pricing Principle
Optimal patient access encompasses the speed of
access and the breath of coverage at a price that
leads to a sustainable business.
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCEPATIENT We recognize that affordability varies by country. That
is why we price our products relative to a country’s
economic stage and health system maturity through
our tiered pricing approach. We group countries
into four pricing tiers based on factors such as Gross
Domestic Product (GDP), out-of-pocket expenditure
and policies covering vaccinations, rare diseases and
available healthcare resources per citizen. Tiered pricing
helps us deliver life-changing treatments to as many
patients as possible, as quickly as possible.
We also offer patient assistant programs (PAPs) in
many countries to support patients who have difficulty
accessing our medicines. Many include collaborative
financing models tailored to the individual patient and
the socioeconomic context and health frameworks of
the country in which the patient lives.
Value-based Heath Care Models
Another way we are increasing access to our medicines
is through value-based health agreements with payers.
These approaches help payers and providers manage
uncertainty around the clinical performance and
economic impact of our medicines through pricing
agreements based on the actual performance of our
medicines against agreed-upon outcomes within their
patient populations. Because value-based or outcome-
based arrangements are long-term commitments, they
are a “win-win-win” for patients, payers and Takeda.
Supporting Value-Based Healthcare
through Partnerships
We believe that a value-based approach to healthcare
can lead to a better allocation of resources in health
systems and better health outcomes for patients and
society. We’re working with stakeholders to build
support for the approach and for the health data
needed to make it a reality.
As a member of the World Economic Forum’s Global
Coalition for Value in Healthcare, we share learnings
and work with others to develop methodologies and
tools to scale health system transformation across
geographies and population segments and facilitate
value-based healthcare partnerships.
In addition, in 2021, we entered a partnership with the
Global Surgery Foundation and the United Nations
Institute for Training and Research to facilitate locally
led initiatives that will promote and advance the
implementation of value-based healthcare in low-
income and resource-limited settings with a focus on
NCDs. Takeda is supporting pilot projects in Turkey,
Rwanda and South Africa.
In 2021, we also joined RWE4Decisions, a payer-led,
multi-stakeholder learning network about the use of
real-world evidence (RWE). The initiative seeks to
forge agreement on the use of RWE to better inform
decisions by healthcare systems on introducing new
health technologies, including medicines, for patients
with high unmet needs.
For more information
Position on Global Pricing
Position on Value-Based Healthcare
39
Within emerging markets,
we have implemented
innovative means-tested
PAPs in 17 countries and
territories.
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCEPATIENT I N T R O D U C T I O N
G O V E R N A N C E
P A T I E N T
P E O P L E
P L A N E T
F I N A N C I A L S
G L O B A L C S R
TAKEDA 2022 ANNUAL INTEGRATED REPORT
40
COMMITMENT TO
PEOPLE
Our people live our values every day in the
work they do to serve patients. Success
as a company is a shared responsibility —
by leading together, we have the greatest
opportunity to thrive as both individuals and
as an organization.
Message from
Our Chief Human
Resources Officer
People are the cornerstone of
Takeda’s success.
We invest in our people’s health and
well-being and prioritize building
resilience in our workforce to meet
the challenges of a rapidly changing
world. By nurturing a culture of lifelong
learning, our people, regardless of
role, are empowered to reach their
highest potential. We also strive to
create a workplace that values diversity,
demonstrates inclusion and provides
equity in opportunity and rewards.
Supporting Health,
Well-being and Resilience
Takeda’s purpose of better health for
people, brighter future for the world
is only possible when we take care
of the wellbeing of our colleagues. In
FY2021, we continued to safeguard the
health of our people and their families
in the face of COVID-19, including by
raising awareness of the importance
of vaccination. We also rolled out a
new learning program to strengthen
resilience skills and equipped our people
managers with tools to talk about
mental health.
Embracing Diversity,
Equity and Inclusion
Our culture is one of great diversity, with
people who hail from over 80 countries
and have a wide range of backgrounds
and experiences. We want everyone at
Takeda to feel engaged, heard and able
to contribute fully. We’ve expanded our
investment in DE&I, including forming a
Global DE&I Council and Takeda Center
for Health Equity and Patient Affairs
that is focused on building relationships
and supporting programs that help
recognize and address health disparities
and inequities globally. Our approach to
DE&I is very much aligned with Takeda’s
operating model, with each business
unit and location setting their own
DE&I goals, strategies and programs,
aligned with our global DE&I ambition
and roadmap.
41
Lauren Duprey
Chief Human Resources Officer
ACCORDING TO OUR 2021 EMPLOYEE
EXPERIENCE SURVEY
90%
of employees
believe in our
values
85%
of employees
have pride in
Takeda
Empowering
Life-Long Learning
Innovation is our path forward,
and our people are the drivers of
that innovation. COVID-19 has only
accelerated the speed of change
and created urgency for constant
improvement and innovation. We are
committed to enabling employees to
thrive inside and outside of Takeda
through unique opportunities to learn,
grow and progress professionally while
making a difference in people’s lives.
As I look to the future, I am inspired
by the people of Takeda and their
contributions to the patients we serve.
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPLANETFINANCIALSGLOBAL CSRGOVERNANCEPEOPLE 42
FY2021 Highlights
Recognized as Global Top
Employer for 2022 for fifth
consecutive year
Named Science 2021
Top Employer by the
journal Science
Earned a perfect score of
100 on the Human Rights
Campaign Foundation’s
Corporate Equality Index for
the sixth consecutive year
Awarded the rating of Gold in
the PRIDE Index 2021 by work
with Pride (wwP), a voluntary
organization that promotes
LGBTQ+ diversity management
in Japanese companies and
organizations
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPLANETFINANCIALSGLOBAL CSRGOVERNANCEPEOPLE 43
Supporting
Our People’s Health
and Well-being
Well-being at Takeda focuses on four key
dimensions: physical, emotional, social
and financial.
Our 2021 Employee Experience
Survey showed that only 66% of our
people globally were able to make
time for work/life balance, and 61%
were unable to manage stress and
find time to disconnect. This followed
similar feedback from our 2020 CARE
(Creating Adaptability and Resilience
Experience) survey.
In 2021, we implemented new global
tools and resources such as CARE
Learning, a flexible, self-paced program
to help our people master adaptability
and resilience skills through both
recorded online and live sessions. We
also introduced a no-cost premium
subscription to Calm, the world’s
leading mental fitness platform and the
Virgin Pulse GO Challenge, a virtual,
team-based movement competition.
In October 2021, we hosted a two-
week event, Mental Health is Health, to
help destigmatize mental health in the
workplace. The event featured virtual
seminars by world renowned mental
health experts and allowed opportunities
for open and honest discussion.
In 2022, we are working to raise
awareness of our well-being tools and
resources, streamline content on our
web portal and create a seamless user
experience, and offer more tailored
programs and content that address
challenges to work/life balance.
Work/life balance is a top consideration
for our people as they adapt to our new
flexible work arrangements. We support
different types of work, including a
blend of in-person collaboration and
remote work. While specific work
arrangements will differ for every team,
we are finding creative ways to design
our physical spaces to support in-person
collaboration, when appropriate, and
fuel innovation.
S P O T L I G H T
CREATING TAKEDA
COMMUNITY SPACES IN
SINGAPORE
The Takeda offices in Singapore are
among our first to transition to our
new community spaces model, which
redefines and redesigns the workplace
to bring to life a flexible hybrid
working culture.
Drawing on feedback from our people,
the new spaces have been designed to
promote collaborative work, enhance
opportunities to innovate, and foster
the sense of community belonging
connected by our purpose and values.
The emphasis is on balanced mental and
physical well-being, and the flexibility to
choose how work gets done. Technology
plays a big role; enabling our people
to seamlessly move between home
and our physical spaces. Opened in
2022, our offices in Singapore offer the
spaces employees enjoy being in as a
community, while stimulating productivity
and innovation.
“After two years of isolated pandemic
days being at home, our Takeda office
in Singapore is totally a breath of fresh
air for me. The office design offers
comfortable and user-friendly open
spaces. The details around technology
and the multi-purpose space certainly
nudges one for collaboration, innovation
and connection.” — Asli Dizdar, head of
learning and talent management, growth
& emerging markets business unit
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPLANETFINANCIALSGLOBAL CSRGOVERNANCEPEOPLE 44
Advancing
Diversity, Equity
and Inclusion (DE&I)
Q&A with
Hayden Majajas
Head of Global DE&I
There is strength in diversity, empowerment in
inclusion and fairness in equity. All three elements of the
DE&I spectrum are essential for everyone at Takeda to
reach their full potential. And it is just as important for
our business success — we need a workforce as diverse
as the communities and patients that we serve.
Our Head of Global DE&I reports to our Chief Human
Resources Officer. This role leads our Global DE&I
Council, comprised of senior Takeda leaders from
various business units, functions and locations.
It advises Takeda on DE&I issues. Based on local
needs and factors, our business units and country
teams develop local DE&I approaches in line with the
company’s global focus areas.
Celebrating DE&I within our Culture
In FY2021 we held our first annual Global DE&I Week
to raise awareness, build understanding as well as
community, and spark inspiration. The three-day event
featured Takeda leadership, external speakers, patients
and suppliers. Over 8,000 colleagues participated,
many of them sharing personal stories. Business
units and functions across the world also hosted local
activities to amplify and further drive engagement.
Working to Ensure Pay Equity
We believe it is critical that our pay programs
and guidelines are fair, market-competitive and
fully align with our values of Takeda-ism. In
2021, we broadened a pay equity audit, a phased
multi-year project that will support our objective
to help ensure employees performing the same
or substantially similar work have fair, competitive
and equitable compensation opportunities.
Takeda Resource Groups
Our 10 Takeda Resource Groups (TRGs), with local
chapters across the world, engage and help create
a sense of belonging for our people across the
organization. These voluntary, employee-led groups
are driven by individuals with shared aspirations,
characteristics and life experiences, as well as allies
and advocates. In 2021, TRG membership nearly
doubled, from 3,500 to 6,000 people.
The Black Leadership Council, Building Asian
Leaders, EnAbles (Engaging Those with Disabilities
and Allies), Faith@Work, Gender Parity Network,
IGNITE (Young Professionals), IMPACTO (LatinX
Community), PACT (Parents and Caregivers at
Takeda), STRIVE (Supporting Troops and Inspiring
Veteran Engagement), Take Pride (LBGTQ+
Network and Allies).
Hayden Majajas joined Takeda as our first Head of
Global DE&I in FY2021 and is working to further
embed DE&I into every part of the company and
how we operate.
Learn more
What DE&I Means to Takeda
DIVERSITY
Our aim is for our workforce to reflect the talent pools
in the communities in which we operate. Diversity
encompasses the full range of human differences,
including physical, cognitive, relational, occupational,
societal and value-related.
EQUITY
Our commitment is to give everyone equitable access
to opportunities and achieve their full potential. We
do this by removing barriers to inclusion, and giving
everyone what they need to be successful, including
through advancement, support and reward.
INCLUSION
Our commitment is to create a workplace where
people feel a sense of belonging, respected and
valued and that they have a voice, feel heard and feel
psychologically safe.
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPLANETFINANCIALSGLOBAL CSRGOVERNANCEPEOPLE S P O T L I G H T
ACCELERATING LEADERSHIP
FOR THE FUTURE
The Accelerator Program, sponsored
by the TET, is a five-year development
journey for high-potential employees
who are early in their career. It includes
global development experiences through
at least two international rotations.
Accelerator participants receive regular
feedback and coaching from senior
leaders. In 2021, 16 individuals graduated
from the program, and another 10 joined.
Katharina Geppert, a recent graduate
of the program, credits the Accelerator
Program for helping her build a
global network of colleagues and an
understanding of how health systems
differ around the world.
A Commitment
to Lifelong Learning
and Leadership
Lifelong learning enhances employee motivation and expertise, leads to new ideas,
and results in value creation for patients. We offer formal training professional
development opportunities, such as our Accelerator Program (see Spotlight on
page 45), and on-demand learning that supports ongoing development. We’re
also investing in new learning technologies with the goal of a “one-stop shop” where
employees can embrace learning every day.
Building the Digital Skills of Our People
Takeda is empowering our people with
new ways of working that embrace our
data and digital imperative. One example
is our new training program on robotic
process automation (RPA), which gives
participants the power to automate
routine tasks using already built
software-based “bots” for their work.
Through more advanced development
opportunities, people can learn to build
their own bot and even highly complex
bots. In FY2021, we trained over 1,200
people, of whom 350 have become “RPA
Champions” and built over 270 bots.
These bots have saved over 475,000
hours that would have been spent on
routine tasks. Instead, people have been
able to focus on higher-value work.
We have also launched Takeda Beyond
Tomorrow, a five-part learning program
to help our people envision a Takeda
transformed by technology and how
these innovations will benefit them and
their work. In addition, we introduced an
online learning solution called Thriving in
the Future of Work, which offers insights
and emerging research and tools for
people managers.
45
“The program introduced me to many
different departments and jobs within
the company that I didn’t know existed
before,” said Geppert. “I was able to
work in the United States, which was a
completely different healthcare system
and working style for me coming
from Germany.”
After her U.S. role, Geppert supported
Takeda’s leadership team in Japan,
before moving on to her current role
leading operations in Vietnam.
“Living in three countries with very
different cultures changed me
fundamentally and made me reflect
on my own assumptions about what
I considered the ‘normal/right way.’
This experience was a crucial step
in my evolution to become a truly
global leader.”
AS THE 2021 EMPLOYEE EXPERIENCE
SURVEY SHOWED:
83%
of employees
believe they can
learn and grow in
their work
79%
said that
“My manager
sees mistakes
as learning
opportunities”
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPLANETFINANCIALSGLOBAL CSRGOVERNANCEPEOPLE 46
COMMITMENT TO
PLANET
We are working to make the earth healthier
so we all can be healthier. To ensure healthier
outcomes for patients, we will continue to act
with urgency to minimize our environmental
impact, create sustainable solutions to improve
public health, and work with our peers and
strategic partners to foster responsible
innovation to protect the planet.
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPEOPLEFINANCIALSGLOBAL CSRGOVERNANCEPLANET A Climate-Driven
Health Emergency
Climate change is perhaps the single biggest health threat facing
humanity. It threatens to undo decades of progress to control mosquito-
spread diseases such as dengue, chikungunya, Zika and malaria and
contaminated food and water diseases like cholera.
As a global healthcare company, Takeda and our employees have the
knowledge and experience to help address the disease-related impacts
of climate change through our core mission of developing life-changing
medicines and vaccines. We are taking urgent climate action through the
three steps below.
47
1Developing cutting-edge
treatments for climate-
accelerated diseases
Managing disease transmission on a warmer planet
is critical; recent research from The Lancet estimates
that by the end of the century 8.4 billion people
could be at risk from malaria and dengue alone if
emissions keep rising at current levels. Our efforts
include developing vaccines for two mosquito-borne
illnesses, dengue and Zika.
Learn more
2Accelerating access and
equity to reach more patients
impacted by climate change
The effects of climate change are having a
disproportionate impact in areas that lack adequate
health resources, perpetuating health inequity.
We are reimagining access and working to reach
more patients, including those most impacted by
climate change.
Learn more
3Decarbonizing
our operations
and value chain
We are committed to achieving net-zero1 GHG
emissions related to our operations (Scopes 1
and 2) before 2035 and for our entire value chain
before 2040.
Learn more
1 We have 2024/2025 targets approved by the Science Based
Targets initiative (SBTi). The 2035 targets are aligned with the
SBTi Corporate Net-Zero Standard.
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPEOPLEFINANCIALSGLOBAL CSRGOVERNANCEPLANET Minimizing Our
Environmental Impact
In 2021, we continued to make progress against our environmental
goals, which span multiple aspects of our operations including waste
management, water conservation, GHG emissions and product
stewardship. Our environmental targets are aligned to our internal
sustainability materiality1 assessment and support the United Nations
SDGs. Additionally, Takeda’s climate-related goals support the
Paris Climate Agreement to limit global warning to 1.5 °C and were
approved by the Science Based Targets initiative (SBTi) in 2020.
48
GOALS AND PROGRESS FOR FY20212
GOAL
PROGRESS IN FY2021
67% of our suppliers (as measured by GHG emissions) will
have science-based GHG emissions reduction targets by
December 2024
Reduce 40% of GHG emissions from our direct operations
by FY2025 (Scopes 1 and 2), from a FY2016 baseline, and
achieve net zero by 2040.
Our supply chain sustainability team continues to engage with highest impact suppliers to
establish science-based targets. 24% of our suppliers have set science-based reduction targets.
Total GHG emissions were reduced by focusing on renewable energy sourcing and site energy
efficiency, resulting in a 3% decrease in FY2021, and a 27% decrease since the FY2016 base year
Reduce our supply chain GHG emissions by 50% (currently
estimated Scope 3) by FY2040, from a FY2018 baseline
Sponsoring supplier access to renewable energy power purchase agreements through non-
competitive industry collaboration and enhancing tracking and measurement processes
Develop a context-based approach to water stewardship and
execute water risk assessments at our manufacturing and
R&D sites sites located in high water-stress areas by FY2021
Decrease water withdrawal by 5% despite projected business
growth by FY2025 from a FY2019 baseline
Risk assessments completed and risk mitigation plans developed at all six sites identified as high-
risk locations
Multiple water conservation projects completed globally including innovative high-volume water
reuse technology at a large manufacturing site resulted in essentially the same water use as in
FY2019 in spite of business growth
Achieve zero waste to landfill status for all major locations
by FY 2030
Continued implementation of waste minimization and diversion plans resulting in a 79% waste
diversion from landfills
50% of paper and paperboard content in product secondary
and tertiary packaging from Takeda’s manufacturing sites will
be either recycled content or certified forest sustainable by
FY2025
Engagement with all key paper/paperboard packaging suppliers and setting up Gensuite platform
for data collection and analysis for 2021
1 We conducted a comprehensive materiality assessment in FY2019 to better understand which non-financial issues are strategically important to Takeda and of most interest to our stakeholders.
2 All goals are based on fiscal year performance.
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPEOPLEFINANCIALSGLOBAL CSRGOVERNANCEPLANET 49
Our environmental commitments are
supported by our leadership, starting
with our CEO and the TET. Our strategy
to achieve these commitments is led by
our Planet Steering Team, which includes
executive-level sponsors. We execute
our strategy through three programs:
Sustainability by Design, Climate Action
and Natural Resources Conservation.
Within these three distinct but integrated
programs, we focus our efforts where we
can have the most meaningful impact.
SUSTAINABILITY
BY DESIGN
Minimize the environmental impact of
our products and services throughout
their life cycles based on the principles
of a circular economy.
CLIMATE ACTION
PROGRAM
Decarbonize our operations and
value chain.
NATURAL RESOURCES
CONSERVATION
PROGRAM
Empower our employees to go above
and beyond to conserve the world’s
natural resources.
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPEOPLEFINANCIALSGLOBAL CSRGOVERNANCEPLANET 50
Sustainability
by Design
In 2021, Takeda established a comprehensive Sustainability
by Design Program guided by our Product Stewardship
Team and implemented through the expertise of our
R&D, Plasma-Derived Therapies, Cell Therapies, Vaccines
and Global Manufacturing and Supply teams. Together,
they are implementing sustainable design and material
selection processes into product development for all
therapies with the objective to optimize the environmental
attributes of Takeda’s treatments.
We use life cycle assessment methodologies to inform
choices in our development of new products as a key part
of our Sustainability by Design effort. As this program
continues to mature, we anticipate expanding our use
of life cycle thinking and methodologies to evaluate and
improve our products. We will also perform environmental
risk assessments during development to identify products
with potential ecotoxicity to identify life cycle solution
options (e.g., collection of manufacturing waste, reuse,
recycling, appropriate disposal practices or incentivizing
drug take-back efforts).
Beyond the product itself, we strive to reduce resources
used and improve the recyclability in our packaging and
medical devices.
S P O T L I G H T
PIONEERING SUSTAINABLE
PACKAGING
For its environmental leadership,
Takeda received two WorldStar Global
Packaging Awards in 2021 from the
World Packaging Organization.
One recognized our pioneering use of
bio-polyethylene (bio-PE) — a plastic
derived from plant-based bioethanol —
in pharmaceutical primary packaging at
our Hikari site in Japan. Manufacturing
bottles made with bio-PE plastic emit up
to 70% fewer CO2 emissions compared to
petroleum-based polyethylene bottles.
The Japanese Packaging Institute and
the Asian Packaging Federation also
recognized Takeda’s bio-PE bottle with
respective awards.
“We are proud that Takeda was honored
with these awards for the company’s
eco-friendly bio-plastic bottles,” said
Koji Nonomura, Senior Director, Drug
Product Manufacturing Sciences and
Packaging and lead for the bio-PE
Packaging Project. “At Takeda, we are
committed to not only manufacturing
and supplying high-quality products
to patients around the world, but to
also contributing to the wellbeing of
the planet.”
Takeda received a second WorldStar
award for secondary packaging used
for Takhzyro® (Lanadelumab-flyo)
pre-filled syringes designed to improve
patient usability, transport efficiency
and recyclability.
Koji Nonomura
Director, Head of DP Manufacturing
Sciences & Packaging, Hikari
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPEOPLEFINANCIALSGLOBAL CSRGOVERNANCEPLANET Climate
Action Program
51
Takeda is one of the leading companies in our industry
taking climate action by achieving carbon neutrality
inclusive of Scope 1, 2 and 3 emissions.
We have done so since FY2019 through energy conservation
and investing in renewable energy credits and verified
emission reduction projects.
Takeda is also supported by an external Carbon Neutrality
Advisory Committee comprised of representatives from
environmental non-governmental organizations and
academia. The independent committee informs Takeda’s
carbon neutrality strategy, carbon offset procurement
process and criteria, and reviews past investments in carbon
offset projects to ensure quality and credibility of purchases.
Within Takeda operations, GHG emissions are predominantly
attributable to the use of fossil fuels at our sites and in our
company-operated vehicles and through the unintended
release of refrigerants at our sites (Scope 1 emissions), and
from the purchase of supplied energy such as electricity and
steam for our facilities (Scope 2 emissions). These emissions
are estimated to contribute approximately 10% of our total
GHG footprint. We estimated that the rest (90%) are value
chain-related emissions outside of our direct operational
control (currently estimated Scope 3 emissions). Of our
Scope 3 emissions, those associated with purchased goods
and services are the highest emitting categories1.
Takeda’s Climate Action Program at Sites (CAPS) drives site
efficiency and emission reductions and provides tools to
assist sites with finding and executing improvement projects.
CAPS leaders at our manufacturing and R&D sites drive local
initiatives to reduce our GHG emissions, energy and water
withdrawals and help meet our waste goals. CAPS teams
engage with site leaders and project sponsors to ensure that
the environment is an integral consideration as they make
investment decisions, manage projects and plan how they
will help meet our environmental goals at their facilities.
1 Scope 1 emissions are direct GHG emissions that occur from sources that are controlled or owned by an organization (e.g., emissions associated with fuel combustion in boilers, furnaces, vehicles). Scope 2 emissions
are indirect GHG emissions associated with the purchase of electricity, steam, heat, or cooling. Although Scope 2 emissions physically occur at the facility where they are generated, they are accounted for in an
organization’s GHG inventory because they are a result of the organization’s energy use. Scope 3 emissions are all indirect emissions (not included in Scope 2) that occur in a company’s value chain, including both
upstream and downstream emissions. A lack of transparency into, and a difficulty measuring, actual Scope 3 emissions remains an important challenge to overcome.
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPEOPLEFINANCIALSGLOBAL CSRGOVERNANCEPLANET Working with Partners
In 2021, Takeda was one of 10 inaugural members
of the Energize Program, which seeks to accelerate
the adoption of renewable energy and reduce GHG
emissions among pharmaceutical company suppliers.
A first-of-its-kind effort, it leverages the scale of
pharma’s global supply chain in a non-competitive
fashion to drive system-level change. Partners expect
the program to help hundreds of pharmaceutical
suppliers learn more about renewable energy adoption
and contracting and empower them to reduce their
own operational Scope 2 GHG emissions.
Takeda is a proud member of the UN #racetozero
campaign, the largest alliance committed to halving
emissions by 2030. Takeda’s President and CEO
Christophe Weber is a member of the World Economic
Forum Alliance for Climate CEOs, which is working
across industries to find solutions and advance action.
Takeda is also an active member of the Japan Climate
Leaders Partnership, a coalition of Japanese companies
working to advance Japanese government policy on
climate and sustainability.
52
2021 Highlights
• We broke ground in September 2021 in Woodlands, Singapore, on
the company’s first building to follow the Singapore Green Mark Zero
Energy certification scheme. The building will be the first net zero
carbon emissions building in our global manufacturing network and
the first-of-its-kind investment within the biotechnology industry
in Singapore. It is expected to reduce power consumption by 34%
compared to a traditional building. Renewable electricity will be
provided by more than 660 solar panels to help ensure the building’s
energy consumption is fully met.
• Starting in September 2021, we are building all new U.S. BioLife
donation centers as all-electric facilities to avoid introducing new
Scope 1 emissions from natural gas.
• Our Osaka, Hikari, Izumisano, Shonan iPark and Narita sites in Japan
are working toward 100% renewable electricity, which will result in a
30% annual reduction of CO2 emissions at these five sites.
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPEOPLEFINANCIALSGLOBAL CSRGOVERNANCEPLANET FY2021 Scope 1 and 2
Emissions Data
In FY2021, our Scope 1 and 2 emissions
continued to decrease, and we are on
track to eliminate 40% of our Scope 1
and 2 emissions by FY2025 compared
to FY2016. Step change reductions
in Scope 2 emissions were primarily
due to our accelerated transition
to renewable energy. Observed
incremental reductions in Scope 1
emissions were the result of CAPS-
driven energy efficiency projects,
which were able to achieve small
gains while fully compensating for
business growth.
Takeda embraces the Task Force on
Climate-Related Financial Disclosures
(TCFD) framework and has issued
our inaugural TCFD report to share
results from assessing potential risks
and opportunities related to physical
and transitional climate impacts to our
global operations. The assessment
and report will help prioritize actions
to minimize risks and to capitalize on
business opportunities.
Read more
700
600
500
400
300
200
100
0
FY2021 Scope 1 and 2 Emissions Data
(Thousand metric tonnes CO2EQ)
53
40%
reduction
goal from
2015 to
2025
FY2016
FY2017
FY2018
FY2019
FY2020
FY2021
FY2025
Scope 1
Scope 2
2025 Target
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPEOPLEFINANCIALSGLOBAL CSRGOVERNANCEPLANET Six Takeda sites identified as being located
in regions with increased water risk.
54
Tianjin, China
Pisa, Italy
Naucalpan, Mexico
Bekasi, Indonesia
Los Angeles, CA, USA
Thousand Oaks, CA, USA
Empowering
our Employees
to Conserve
Natural Resources
Takeda employees are critical to our ability to conserve the planet’s
natural resources.
Minimizing environmental impacts from our operations is the focus of our
Natural Resources Conservation program and includes focus areas such
as water stewardship, responsible waste management and biodiversity.
Takeda’s CAPS program (page 51) also works directly with sites and drives
efficiency projects and progress toward meeting our water and waste goals.
Water Stewardship
We are working to understand our water impacts enterprise-wide,
product-by-product and site-by-site. Our water impact goes beyond
just measuring water withdrawal. Recognizing that water stress is highly
regional in nature, we assess the stress levels of water sources that
service our over 30 manufacturing, R&D and hub office sites worldwide
using the World Resources Institute Aqueduct, WWF Water Risk Filter
Tools and local site surveys. These independent assessment tools
validated that 20% of our manufacturing sites (six sites) are in areas
considered to have “high” or “extremely high” water risk.
In FY2021, local teams at these six sites developed water risk mitigation
plans. They will work in FY2022 to adopt local conservation goals and
identify appropriate watershed protection projects. While our focus
remains on locations at high water risk, we actively work to reduce water
consumption across all operations.
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPEOPLEFINANCIALSGLOBAL CSRGOVERNANCEPLANET 2021 Highlights
• A lab air optimization project at
our R&D facilities in Massachusetts
improved occupant health and
safety via air quality monitoring
and dynamic ventilation control
while saving energy and reducing
GHG emissions. By reducing the
amount of outside air that needs to
be cooled in the warmer months,
the facilities can save an estimated
12 million liters of water annually that
would have been evaporated at the
cooling towers.
• Our Tianjin, China, plant enabled
infiltration of rainwater into the local
aquifer by creating a subsidized
greenbelt of 5,086 square
meters and permeable roads of
4,543 square meters.
55
Responsible Waste Management
Supporting Biodiversity
We are working to reduce the amount of waste
sent to landfill, first by limiting the amount of waste
we generate and then by reusing what we can and
recycling the rest. To date, we have diverted 79% of our
waste from landfills.
2021 Highlights
• At our facilities in Lexington and Cambridge,
Massachusetts in the United States, we switched from
landfill to waste-to-energy disposal.
• At our Vienna, Austria, manufacturing site, we began
to use organic waste for the production of biogas for
local use.
• Our Jaguariuna, Brazil, manufacturing site uses a
biodigester to treat food waste that would have
otherwise been sent to landfill.
We seek to support biodiversity where we operate
through responsible business practices and conservation
efforts, many of which are employee led.
In FY2021, we initiated phase one of our planned
biodiversity assessment. It included a screening desktop
exercise of current potential direct/indirect biodiversity
impacts at key Takeda manufacturing sites using the
Integrated Biodiversity Assessment Tool. We will use
the results of this initial assessment to perform a deeper
evaluation at prioritized sites to better assess the potential
for biodiversity impacts and determine mitigation actions,
as appropriate.
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPEOPLEFINANCIALSGLOBAL CSRGOVERNANCEPLANET I N T R O D U C T I O N
G O V E R N A N C E
P A T I E N T
P E O P L E
P L A N E T
F I N A N C I A L S
G L O B A L C S R
TAKEDA 2022 ANNUAL INTEGRATED REPORT
56
FINANCIAL
PERFORMANCE
Guided by our commitment to patients, our
people and the planet, in FY2021 we executed
our growth strategy delivering topline growth,
competitive margins and strong cash flow.
The decisions and investments we have made
position us to deliver continued topline growth
in FY2022 and over the medium-to-long term.
Takeda’s FY2021
Financial Performance
Despite ongoing uncertainty caused by the COVID-19 pandemic and disruptions in the global supply chain, we have delivered positive financial outcomes for FY2021. This is
an ongoing testament to our resilient product portfolio, and relentless pursuit of advancing science for patients and building sustainable value for our stakeholders. Our five
key business areas represented approximately 86% of our FY2021 revenue and strength across our portfolio was key to our delivering 7.4% of underlying revenue growth.1
57
FY2021 REVENUE
FY21 Revenue (JPY)
FY21 Revenue (USD)
3,569.0B
29.4B
U.S.
Japan
Europe & Canada
Growth and Emerging Markets
48%
18%
21%
13%
APPROX.
$29.4B
5 Key Business Areas
(% of FY2021 Core Revenue1, 2)
GI
Rare Diseases
PDT Immunology
Oncology
Neuroscience
Other
25%
18%
15%
14%
14%
14%
1 Takeda uses certain non-IFRS measures to supplement the analysis of results of operations under International Financial Reporting Standards (“IFRS”).
Please refer to appendix pages for definitions, explanations and reconciliations of non-IFRS measures.
2 Core Revenue is adjusted to remove JPY 133.0B for the sale of the diabetes portfolio in Japan, and other non-core asset transfers booked as revenue.
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPEOPLEPLANETGLOBAL CSRGOVERNANCEFINANCIALS Results of Operations
(JPY billions)
Revenue
Operating profit
Profit (loss) before tax
Net profit for the period
Net profit attributable to owners of the Company
Fiscal Year Ending March 31,
Change versus the previous year
2021
3,197.8
509.3
366.2
376.2
376.0
2022
3,569.0
460.8
302.6
230.2
230.1
371.2
-48.4
-63.7
-146.0
-145.9
%
11.6%
-9.5%
-17.4%
-38.8%
-38.8%
58
Non-IFRS Measures1
Results of Operations
(JPY billions)
Core revenue
Underlying:
Revenue growth
Core operating profit margin
Core operating profit
Core EPS (yen)
Free cash flow
Leverage
(JPY billions)
Net debt (cash)
Adjusted EBITDA (Last 12 months)
Net debt/Adjusted EBITDA ratio
Fiscal Year Ending March 31,
Change versus the previous year
222.7
-12.7
5
-294.2
%
7.0%
-1.3%
1.2%
-23.8%
2021
3,197.8
2.2%
30.2%
967.9
420
1,237.8
2022
3,420.5
7.4%
28.0%
955.2
425
943.7
As of
March 31, 2021
March 31, 2022
3,429.4
1,083.5
3.2x
3,233.8
1,168.0
2.8x
1 Takeda uses certain non-IFRS measures to supplement the analysis of results of operations under International Financial Reporting Standards (“IFRS”).
Please refer to appendix pages for definitions, explanations and reconciliations of non-IFRS measures.
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPEOPLEPLANETGLOBAL CSRGOVERNANCEFINANCIALS
Growth and Launch Products
Our FY2021 revenue growth was largely driven by our growth and launch products, which generated one third of our total revenue and
underlying revenue growth1 of +19%.
59
BUSINESS AREA
GROWTH PRODUCT
INDICATION
REVENUE
(BN JPY)
UNDERLYING
REVENUE GROWTH1
Gastroenterology
(GI)
Moderate to severe ulcerative colitis or Crohn’s disease
521.8
14.5%
Refractory complex perianal fistulas with Crohn’s disease
1.8
121.7%
Rare Diseases
Prevention of hereditary angioedema attacks
103.2
12.4%
PDT Immunology
Immunoglobulin
Primary and secondary immunodeficiencies and multifocal motor neuropathy
385.9
Post-transplant CMV infection (refractory, with or without resistance)
1.3
ALBUMIN
IMMUNOGLOBULIN
Albumin
Hypovolemia, hypoalbuminemia, for use during cardiopulmonary bypass
surgery, and hemolytic disease of the newborn
Oncology
ALK-positive non-small cell lung cancer
90.0
13.6
—
9.4%
42.3
46.9%
Previously treated Non-Small Cell Lung Cancer with EGFR exon 20 insertion
1.0
—
Other
Spikevax™
Nuvaxovid®
Active immunization for the prevention of COVID-19 (primary and booster)
Undisclosed
Undisclosed
Active immunization for the prevention of COVID-19 (primary and booster)
—
—
Further growth is expected moving forward from launch products EXKIVITY® and LIVTENCITY®, both approved in FY2021 in the United States, and also from our COVID-19
vaccines rollout in Japan with additional SPIKEVAX™ doses and the launch of NUVAXOVID®, approved in Japan in April 2022.
1 Takeda uses certain non-IFRS measures to supplement the analysis of results of operations under International Financial Reporting Standards (“IFRS”). Please refer to appendix pages for definitions, explanations and
reconciliations of non-IFRS measures.
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPEOPLEPLANETGLOBAL CSRGOVERNANCEFINANCIALS Positioned for growth over the mid- and long-term
Takeda is well positioned to deliver topline growth over
the medium-to-long term.
FY2022 Forecast
60
FY2021
(Actual)
FY2022
(Forecast)
Change over the
previous year
3,569.0
-526.1
460.8
302.6
230.1
147
3,420.5
955.2
425
3,690.0
-570.0
520.0
411.0
292.0
188
3,690.0
1,100.0
484
943.7
600.0–700.0
180
180
121.0
-43.9
59.2
108.4
61.9
41
269.5
144.8
60
—
3.4%
-8.3%
12.8%
35.8%
26.9%
27.9%
7.9%
15.2%
14.0%
—
CORE GROWTH AT CER3
Low-single-digit growth
High-single-digit growth
High-single-digit growth
(JPY billions)
Reported:
Revenue
R&D expenses
Operating profit
Profit before tax
Net profit attributed to owners of the Company
EPS (yen)
Non-IFRS Measures1
Core revenue
Core operating profit
Core EPS (yen)
Free cash flow
Dividend per share (yen)
Management Guidance
CORE REVENUE
CORE OPERATING PROFIT
CORE EPS (yen)
Refer to Summary of Financial Statements for the Fiscal Year Ended March 31, 2022 (IFRS, Consolidated) released
on May 11, 2022, for further detail of FY2022 forecast and management guidance.
3 CER (Constant Exchange Rate) eliminates the effect of foreign exchange rates by translating results of operations using corresponding
exchange rates in the same period of the previous fiscal year.
Our growth and launch products are projected to
continue driving topline growth in the near-term,
through continued market penetration, geographic
expansion, improving access and life cycle management.
In addition, we’ve built a deep and highly innovative
pipeline through our R&D transformation, with
approximately 40 new molecular entities in the
clinical stage, several of which have sales potential
over $1 billion. We will continue to actively enrich the
pipeline through our in-house R&D capabilities, external
partnerships and targeted business development that
align with our core therapeutic areas.
In addition to growing the topline, we continue to
focus on delivering a competitive core operating profit
margin. Our strong margins will continue to drive
abundant cashflow, which will allow us to invest in our
growth drivers, while also paying down debt toward our
target of “low twos” net debt to adjusted EBITDA1 by
the end of fiscal year 2023.
10
10 of our clinical programs are in Phase 3 or
pivotal trials with an aggregate peak potential
sales of more than $10 billion2.
1 Takeda uses certain non-IFRS measures to supplement the analysis
of results of operations under International Financial Reporting
Standards (“IFRS”). Please refer to appendix pages for definitions,
explanations and reconciliations of non-IFRS measures.
2 On a Probability of Technical and Regulatory Success (PTRS)-
adjusted basis more than $5 billion.
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPEOPLEPLANETGLOBAL CSRGOVERNANCEFINANCIALS
I N T R O D U C T I O N
G O V E R N A N C E
P A T I E N T
P E O P L E
P L A N E T
F I N A N C I A L S
G L O B A L C S R
TAKEDA 2022 ANNUAL INTEGRATED REPORT
61
GLOBAL
CSR
Through our Global Corporate Social
Responsibility (CSR) Program, we help
strengthen health systems by supporting
activities in developing and emerging
countries that prevent disease, train health
workers, strengthen supply chains
and improve access to quality diagnosis
and treatment.
Overarching Global CSR Principles —
How We Select Our Programs
Philanthropic lens: no commercial benefits for Takeda,
enforcing rigorous due diligence to avoid conflict of
interest and protect our reputation
Partnerships: foster trust and respect across our
partners and communities
Long-term view: a human-centered approach,
focusing on mid- to long-term impact and
sustainability
Innovation: encourage the emergence of innovative
solutions beyond commercial products
No one left behind: focus efforts to ensure global
reach of Takeda’s CSR impact
Employee participation: make all Takeda employees
agents of change, and co-develop solutions
with communities
62
Since 2016, an annual company-wide online vote has determined the programs we fund.
In FY2021, we furthered this grassroots approach by launching a CSR Application Review
committee composed of Takeda employees from across the company. This 20-person
team helped select shortlisted proposals for voting from nearly 100 submitted by non-
profit organizations based in 27 countries. In this way, the partnerships we fund reflect the
priorities of our people.
In FY2021, Takeda employees voted to add four new partnerships to our Global
CSR Program:
JPY 953M
to IntraHealth International to work
with 12 private schools in Mali, Senegal
and Niger to increase the number
of qualified, trained nurses who can
serve rural communities.
Learn more
JPY 890M
to Jhpiego’s iWIN project to help
accelerate progress in preventing
maternal and newborn mortality and
morbidity by mending the fragmented
maternal and child health ecosystem
in India via a holistic, woman-centered
approach.
Learn more
JPY 1B
to Pathfinder International to
advance women’s and girls’ leadership
in responding to the disproportionate
impact of climate change and
emergencies on women’s health in
South and Southeast Asia.
Learn more
JPY 997M
to United National Population Fund
(UNFPA) to help provide access
to over 90% of pregnant women
to maternity units offering quality
emergency obstetric and newborn
care within two-hours travel time in
Benin, Côte d’Ivoire and Togo.
Learn more
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPEOPLEPLANETFINANCIALSGOVERNANCEGLOBAL CSR U.S. CSR Program
Our Impact
63
In FY2021, Takeda launched its first-ever U.S.-focused
philanthropic CSR program, making an initial commitment
of $20 million among 25 new charitable partners in its
inaugural year. The focus of our U.S. philanthropic giving
is to support programs in the United States seeking to
reduce the social disparities affecting underrepresented
populations in our communities in the areas of Health,
Environment, Learning and Providing (hunger). Our goal is
to help achieve better health outcomes through a multi-
faceted approach and a more holistic view of health and
well-being that supports Takeda’s purpose of better health
for people, brighter future for the world.
Takeda CARE Program
Building on more than two decades of relationships with
more than 600 NPOs and over one million people in
Japan, we launched the Takeda CARE Program in 2021.
The program supports marginalized populations in Japan
grappling with such issues as domestic violence, inequities
associated with working in informal economies and more.
Underscored by the foundational pillars of children,
adolescents/adults, resilience and empowerment in our
titular acronym, the Takeda CARE Program integrates
three longstanding domestic corporate citizenship
initiatives focused on disaster relief, children with special
needs and their families, and the personal impact of
cancer on underrepresented populations, together with
a new women’s health initiative, under one institutional
umbrella to harness progress and lessons learned over
20 years for even greater impact.
Since launching in 2016, Takeda’s
signature Global CSR Program has
committed a total of 16.2 billion
yen to 17 international NGOs
for 20 long-term projects that
address more than 23 targets
of seven of the UN SDGs across
74 countries.
9.8M+
direct beneficiaries reached
44,679+
qualified health professionals and community health
workers trained
© UN Foundation
1M+
community members provided with targeted
education on nutrition, water, sanitation, hygiene
and sexual and reproductive health
132
health facilities constructed in
remote and hard-to-reach areas
4.2M
children treated and immunized
against preventable diseases
such as measles and neglected
tropical diseases
19.9M
Our partners are on track to reach 19.9 million direct
beneficiaries by 2027, providing lifesaving care for
vulnerable women and newborns, training health
workers, improving access to healthcare services,
strengthening holistic support for refugees and more.
Read more about Takeda’s Global CSR Programs in Action.
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPEOPLEPLANETFINANCIALSGOVERNANCEGLOBAL CSR 64
Legal Disclaimers
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, which include Takeda’s greenhouse
gas emission goals. 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”
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 extent to which our internal energy
conservation measures and future advancements in
renewable energy or low carbon energy technology
will enable us to reduce our GHG emissions; 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, including global healthcare reforms;
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,
on Takeda and its customers and suppliers, including
foreign governments in countries in which Takeda
operates, or on other facets of its business; the timing
and impact of post-merger integration efforts with
acquired companies; the ability to divest assets that
are not core to Takeda’s operations and the timing of
any such divestment(s); 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/ 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.
FINANCIAL INFORMATION AND
CERTAIN NON-IFRS FINANCIAL 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 non-IFRS financial measures not presented in
accordance with IFRS, such as Underlying Revenue,
Core Operating Profit, Underlying Core Operating
Profit, Core Net Profit, Underlying Core EPS, Net
Debt, EBITDA, Adjusted EBITDA, Free Cash Flow
and CER Growth. 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. 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
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCE 65
Legal Disclaimers (cont.)
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, which are
on Slides 49–54 and 61 of the FY2021 Q4 earning
presentation (Available at FY2021 Q4 earnings
presentation)
EXCHANGE RATES
Throughout this report, certain amounts presented in
Japanese yen have been translated to US dollars solely
for the convenience of the reader at an exchange rate
of 1USD = 121.44 JPY, the Noon Buying Rate certified
by the Federal Reserve Bank of New York on March 31,
2022. 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 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.
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCE 66
Appendix
DEFINITIONS OF NON-IFRS MEASURES
See pages 68 to 74 for reconciliations of the non-
IFRS measures discussed below to the most closely
comparable measures under IFRS.
Definition of Core and Underlying Growth
Takeda uses the concept of Underlying Growth for
internal planning and performance evaluation purposes.
Underlying Growth compares two periods (fiscal
quarters or years) of financial results under a common
basis and is used by management to assess the
business. These financial results are calculated on a
constant currency basis using a full year plan rate and
exclude the impacts of divestitures and other amounts
that are unusual, non-recurring items or unrelated
to our ongoing operations. Although these are not
measures defined by IFRS, Takeda believes Underlying
Growth is useful to investors as it provides a consistent
measure of our performance.
Takeda uses “Underlying Revenue Growth”, “Underlying
Core Operating Profit Growth”, and “Underlying Core
EPS Growth” as key financial metrics.
Underlying Revenue represents revenue on a constant
currency basis and excluding non-recurring items and
the impact of divestitures that occurred during the
reporting periods presented.
Underlying Core Operating Profit represents Core
Operating Profit (as defined to the right) on a constant
currency basis and further adjusted to exclude the
impacts of divestitures that occurred during the
reporting periods presented.
Underlying Core EPS represents net profit based on a
constant currency basis, adjusted to exclude the impact
of divestitures and items excluded in the calculation
of Core EPS (as defined to the right), divided by the
outstanding shares (excluding treasury shares) as of the
end of the comparative period.
Core Operating Profit represents net profit adjusted
to exclude income tax expenses, the share of profit
or loss of investments accounted for using the equity
method, finance expenses and income, other operating
expenses and income, amortization and impairment
losses on acquired intangible assets and other items
unrelated to Takeda’s core operations, such as non-
recurring items, purchase accounting effects and
transaction related costs.
Core EPS represents net profit adjusted to exclude
the impact of items excluded in the calculation of
Core Operating Profit, and 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 Takeda’s ongoing operations and the
tax effect of each of the adjustments, divided by the
average outstanding shares (excluding treasury shares)
of the reporting periods presented.
CER (Constant Exchange Rate)
CER eliminates the effect of foreign exchange rates by
translating results of operations using corresponding
exchange rates in the same period of the previous
fiscal year.
Free Cash Flow
We present Free Cash Flow because we believe that
this measure is 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. 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. We also believe that Free
Cash Flow is helpful to investors in understanding how
our strategic divestitures of non-core businesses and of
portions of our investment portfolio contribute to the
cash flows and liquidity available to us.
We define Free Cash Flow as cash flows from operating
activities, subtracting acquisition of property, plant and
equipment (PP&E), intangible assets and investments,
as well as any other cash that is not available to
Takeda’s immediate or general business use, and
adding proceeds from sales of PP&E, as well as from
sales and redemption of investments and businesses,
net of cash and cash equivalents divested.
The usefulness of Free Cash Flow 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 our industry, (ii) it does 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
reflect cash received from our core ongoing operations.
Free Cash Flow should not be considered in isolation
and is not, and should no t be viewed as, a substitute
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 is net cash from operating activities.
EBITDA and Adjusted EBITDA
We present EBITDA and Adjusted EBITDA because
we believe 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. We further believe that
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCE Appendix (cont.)
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.
EBITDA and Adjusted EBITDA should not be
considered in isolation or construed as alternatives to
operating income, net profit for the year or any other
measure of performance presented in accordance
with IFRS. These non-IFRS measures may not be
comparable to similarly-titled measures presented by
other companies.
The usefulness of EBITDA and Adjusted EBITDA to
investors has l imitations 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 exclude financial information
and events, such as the effects of an acquisition or
amortization of intangible assets, that some may
consider important in evaluating our 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 exclude all items which investors may consider
to be unrelated to our long-term operations, such as
the results of businesses divested during a period.
These non-IFRS measures are not, and should not be
viewed as, substitutes for IFRS reported net income
(loss). We encourage investors to review our historical
financial statements in their entirety and caution
investors to IFRS measures as the primary means of
evaluating our performance, value and prospects
for the future, and EBITDA and Adjusted EBITDA as
supplemental measures.
We define EBITDA as net profit before income tax
expenses, depreciation and amortization and net
interest expense. We define Adjusted EBITDA as
EBITDA further adjusted to exclude impairment losses,
other operating expenses and income (excluding
depreciation and amortization), finance expenses and
income (excluding net interest expense), our share of
loss from investments accounted for under the equity
method and other items that management believes
are unrelated to our core operations such as purchase
accounting effects and transaction related costs.
The most closely comparable measure presented in
accordance with IFRS is net profit for the year.
Net Debt
We present Net Debt because we believe that it is
useful to investors in that our management uses it to
monitor and evaluate our indebtedness, net of cash
and cash equivalents, and, in conjunction with Adjusted
EBITDA, to monitor our leverage. We also believe that
similar measures of indebtedness are frequently used
by securities analysts, investors and other interested
parties in the evaluation of companies in our industry.
We define 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 period and
the use of relevant spot rates for new non-JPY debt
incurred and existing non-JPY debt redeemed during
the reporting period, which reflects the methodology
our management uses to monitor our leverage, and
(ii) a 50% equity credit applied to our aggregate
principal amount of 500.0 billion hybrid (subordinated)
bonds issued in June 2019 by S&P Global Rating Japan
in recognition of the equity-like features of those bonds
pursuant to such agency’s ratings methodology. From
this figure, we deduct cash and cash equivalents,
67
excluding cash that is temporarily held by Takeda on
behalf of third parties related to vaccine operations
and the trade receivables sales program, to calculate
Net Debt.
The usefulness of 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 our industry, (ii) it does
not reflect the amounts of interest payments to be
paid on our indebtedness, (iii) it does not reflect any
restrictions on our ability to prepay or redeem any of
our indebtedness, (iv) it does not reflect any fees, costs
or other expenses that we 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 our financing agreements,
does not reflect the actual rates at which we would
be able to convert one currency into another and
(vi) it reflects an equity credit due to the fact that the
amounts of our subordinated bonds, although we
believe it to be reasonable, do not affect the status of
those instruments as indebtedness. Net Debt should
not be considered in isolation and are 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.
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCE 68
Reconciliations
Reconciliation from Reported to Core/Underlying FY2021
(JPY billions)
Revenue
Cost of sales
Gross Profit
SG&A expenses
R&D expenses
Amortization of intangible assets
Impairment losses on intangible assets
Other operating income
Other operating expenses
Operating profit
Margin
Financial income/expenses
Equity income/loss
Profit before tax
Tax expenses
Non-controlling interests
Net profit
EPS (yen)
Number of shares (millions)
REPORTED
3,569.0
-1,106.8
2,462.2
-886.4
-526.1
-418.8
-54.1
43.1
-159.1
460.8
12.9%
-142.9
-15.4
302.6
-72.4
-0.1
230.1
147
1,564
REPORTED TO CORE ADJUSTMENTS
Amortization
of intangible
assets
Impairment
of intangible
assets
Other
operating
income/
expense
Sale of
Japan
diabetes
portfolio
Irish Tax
Assessment1
TEVA JV
related
accounting
adjustments
CORE TO UNDERLYING
CORE ADJ.
Others
CORE
FX Divestitures
-133.0
0.6
-132.4
1.0
-0.8
-14.6
3,420.5
-166.9
45.6
-1,060.6
52.0
-0.8
31.0
2,359.9
-114.9
5.1
1.6
-880.2
-524.5
46.1
25.6
-6.9
3.6
-3.2
0.0
-0.0
418.8
54.1
418.8
54.1
-41.7
159.1
117.4
-1.4
—
—
—
—
-131.4
-2.2
37.7
955.2
-43.2
-3.2
418.8
-89.7
54.1
-15.2
117.4
-26.1
-131.4
40.2
21.0
11.8
70.5
7.3
5.1
27.9%
-121.9
3.7
13.5
0.3
837.0
-29.4
65.4
-1.6
-73.8
-173.2
-0.1
6.1
-0.0
329.1
38.9
91.2
-91.2
65.4
3.5
-3.2
663.7
-23.3
425
1,564
-15
-3.2
1.0
0.0
-2.2
-1
UNDERLYING
GROWTH
+7.4%
+5.4%
28.0%2
+9.4%
1,563
1 A tax charge of 65.4 billion JPY for tax and interest, net of 0.5 billion JPY of associated tax benefit, arising from tax assessment involving Irish taxation of the break fee Shire received from AbbVie in connection
with the terminated offer to acquire Shire made by AbbVie in 2014.
2 Underlying Core Operating Profit Margin.
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCE Reconciliations (cont.)
Reconciliation from Reported Revenue to Core/Underlying Revenue FY2021 Versus Prior Year
(JPY billions)
Reported Revenue
Sale of Japan diabetes portfolio1 and other non-core product divestitures
Core Revenue
FX effects2
Divestitures3
Regional portfolio
Japan diabetes portfolio
TACHOSIL
Others
Underlying Revenue Growth
FY2020
3,197.8
—
3,197.8
FY2021
3,569.0
-148.5
3,420.5
vs. PY
+371.2
-148.5
+222.7
69
+ 11.6%
-4.6pp
+ 7.0%
-5.2pp
+5.6pp
+4.1pp
+1.0pp
+0.4pp
+0.1pp
+ 7.4%
1 The non-recurring item of the 133.0 billion JPY selling price as the result of the completion of the divestiture is excluded from FY2021.
2 FX adjustment applies plan rate to both periods.
3 Major adjustments are as follow;
• Revenue of select over-the-counter and non-core products in Asia Pacific is excluded from FY2020 as the divestiture was completed in November 2020.
• Revenue of select non-core prescription pharmaceutical products predominantly in Europe is excluded from FY2020 as the divestiture was completed in December 2020.
• Revenue of select over-the-counter and non-core products in Latin America is excluded from FY2020 as the divestiture was completed in January 2021.
• Net sales from TACHOSIL, a surgical patch, are excluded from FY2020 as the divestiture was completed in January 2021.
• Revenue of select over-the-counter and non-core products predominantly in Europe is excluded from FY2020 as the divestiture was completed in March 2021.
• Revenue of the former subsidiary, Takeda Consumer Healthcare Company Limited, is excluded from FY2020 as the divestiture was completed in March 2021.
• Net sales from a portfolio of diabetes products in Japan (NESINA, LIOVEL, INISYNC and ZAFATEK) are excluded from FY2020 as the divestiture was completed at the beginning of April 2021.
• Revenue of select non-core prescription pharmaceutical products in China had been excluded from both the current fiscal year and the previous fiscal year until the third quarter of the fiscal year ended March 31,
2022. However, as the divestiture was completed at the end of March 2022, the current fiscal year and the previous fiscal year are comparable, thus, in this quarter, no exclusion of its divestiture impact has been
made for either fiscal year.
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCE 70
UNDERLYING
GROWTH
+2.2%
Reconciliations (cont.)
Reconciliation from Reported to Core/Underlying FY2020
(JPY billions)
Revenue
Cost of sales
Gross Profit
SG&A expenses
R&D expenses
Amortization of intangible assets
Impairment losses on intangible assets
Other operating income
Other operating expenses
Operating profit
Margin
Financial income/expenses
Equity income/loss
Profit before tax
Tax expenses
Non-controlling interests
Net profit
EPS (yen)
Number of shares (millions)
REPORTED TO CORE ADJUSTMENTS
Amortization
of intangible
assets
Impairment
of intangible
assets
REPORTED
Other
operating
income/
expenses
TEVA JV
related
accounting
adjustments
TCHC
divestiture1
CORE TO UNDERLYING
CORE ADJ.
Others
CORE
FX Divestitures
3,197.8
-994.3
2,203.5
-875.7
-455.8
-405.3
-16.6
318.0
-258.9
509.3
15.9%
-143.1
0.1
366.2
9.9
-0.2
376.0
241
1,562
405.3
16.6
405.3
16.6
1.9
-0.3
-116.9
185.3
70.0
405.3
-90.5
16.6
-3.8
70.0
-9.5
-1.5
-139.5
-1.5
-139.5
16.6
15.1
-4.6
-139.5
87.4
87.4
1.2
5.8
-60.2
73.6
107.7
16.8
-13.1
111.4
-91.0
314.8
12.8
60.5
10.5
-139.5
20.4
3,197.8
-906.9
2,290.9
-872.6
-450.4
—
—
—
—
967.9
30.3%
-126.3
3.5
845.1
-189.4
-0.2
655.5
420
1,562
-1.4
-2.6
-4.0
2.2
0.0
-174.4
52.7
-121.7
16.7
0.8
-1.8
-104.2
+13.0%
28.5%2
6.0
-0.2
4.0
-0.9
0.0
3.1
3
-0.0
-0.0
-104.2
29.1
0.0
-75.1
-48
+24.6%
1,558
1 On March 31, 2021, Takeda completed the sale of Takeda Consumer Healthcare Company Limited (“TCHC”), a wholly-owned subsidiary of Takeda primarily focused on the consumer healthcare market in Japan, to
The Blackstone Group Inc.
2 Underlying Core Operating Profit Margin.
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCE Reconciliations (cont.)
Free Cash Flow
(JPY billions)
Net profit
Depreciation, amortization and impairment loss
Decrease (increase) in trade working capital
Income taxes paid
Tax refunds and interest on tax refunds received
Other
Net cash from operating activities
Adjustment for cash temporarily held by Takeda on behalf of third parties1
Acquisition of PP&E
Proceeds from sales of PP&E
Acquisition of intangible assets
Acquisition of investments
Proceeds from sales and redemption of investments
Proceeds from sales of business, net of cash and cash equivalents divested
Free Cash Flow
71
-38.8%
+11.1%
-23.8%
FY2020
FY2021
vs. PY
376.2
585.1
53.3
-235.8
34.1
198.0
1,010.9
-175.5
-111.2
46.5
-125.3
-12.6
74.6
530.4
1,237.8
230.2
637.7
206.3
-147.7
7.3
189.4
1,123.1
-32.0
-123.3
1.8
-62.8
-8.3
16.9
28.2
943.7
-146.0
+52.5
+153.0
+88.1
-26.8
-8.6
+112.2
+143.5
-12.0
-44.6
+62.5
+4.3
-57.7
-502.2
-294.2
1 Adjustment refers to cash temporarily held by Takeda on behalf of third parties related to vaccine operations and the trade receivables sales program.
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCE Reconciliations (cont.)
Net Profit to Adjusted EBITDA Bridge FY2021 Versus Prior Year
(JPY billions)
Net profit
Income tax expenses
Depreciation and amortization
Interest expense, net
EBITDA
Impairment losses
Other operating expense (income), net, excluding depreciation and amortization and other
miscellaneous expenses (non-cash item)
Finance expense (income), net, excluding interest income and expense, net
Share of loss on investments accounted for under the equity method
Other adjustments:
Non-core expense related to COVID-19
Sale of Japan diabetes portfolio and other non-core product divestitures
Impact on profit related to fair value step up of inventory in Shire acquisition
Acquisition costs related to Shire
Other costs1
EBITDA from divested products2
Adjusted EBITDA
1 Includes adjustments for non-cash equity-based compensation expense and other one time non-cash expense.
2 Represents adjustments for EBITDA from divested products which are removed as part of Adjusted EBITDA.
72
FY2020
FY2021
vs. PY
376.2
-9.9
559.7
129.0
1,054.9
25.5
-74.5
14.1
-0.1
131.4
14.0
—
79.4
1.9
36.1
-67.8
1,083.5
-146.0
-38.8%
-51.4
-4.9%
230.2
72.4
583.2
117.8
1,003.6
54.5
106.3
25.1
15.4
-30.2
10.4
-144.8
31.9
—
72.4
-6.6
1,168.0
+84.5
+7.8%
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCE 73
Reconciliations (cont.)
Net Debt/Adjusted EBITDA
NET DEBT/ADJUSTED EBITDA RATIO
NET INCREASE/DECREASE IN CASH
(JPY billions)
FY2021
(JPY billions)
FY2020
FY2021
vs. PY
Cash and cash equivalents1
642.2
Net cash from operating activities
1,010.9
1,123.1
+112.2
+11.1%
Book value debt on the balance sheet
-4,345.4
Acquisition of PP&E
Hybrid bond 50% equity credit
FX adjustment2
Gross debt3
Net cash (debt)
Net debt/Adjusted EBITDA ratio
Adjusted EBITDA
250.0
219.4
-3,876.0
-3,233.8
2.8 x
1,168.0
Proceeds from sales of PP&E
Acquisition of intangible assets
Acquisition of investments
Proceeds from sales and redemption of investments
Acquisition of business, net of cash and cash
equivalents acquired
-111.2
46.5
-125.3
-12.6
74.6
-123.3
1.8
-62.8
-8.3
16.9
—
-49.7
Proceeds from sales of business, net of cash and cash
equivalents divested
530.4
28.2
Net increase (decrease) in short-term loans and
commercial papers
Repayment of long-term loans
Proceeds from issuance of bonds
Repayment of bonds
Purchase of treasury shares
Interest paid
Dividends paid
Others
Net increase/decrease in cash
-149.0
-792.5
1,179.5
-859.2
-2.1
-107.3
-283.4
-83.1
316.1
-0.0
-414.1
249.3
-396.0
-77.5
-108.2
-283.7
-41.1
-145.3
-461.4
—
1 Includes short-term investments which mature or become due within one year from the reporting date and excludes cash temporarily held by Takeda on behalf of third parties related to vaccine operations and the
trade receivables sales program.
2 FX adjustment refers to change from month-end rate to average rate used for non-JPY debt calculation outstanding at the beginning of the period 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 reporting period are translated to JPY at relevant spot rates as of the relevant date.
3 Bonds and loans of current and non-current liabilities. 250Bn yen reduction in debt due to 500Bn yen hybrid bond issuance in June 2019, given that the hybrid bond qualifies for 50% equity credit for leverage
purposes. Includes non-cash adjustments related to debt amortization and FX impact.
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCE 74
Reconciliations (cont.)
Reconciliation from Reported Operating Profit to Core Operating Profit — FY2022 Forecast
(JPY billions)
Revenue
Cost of sales
Gross Profit
SG&A and R&D expenses
Amortization of intangible assets
Impairment losses on intangible assets
Other operating income
Other operating expenses
Operating profit
REPORTED
3,690.0
-438.0
-50.0
12.0
-73.0
520.0
REPORTED TO CORE ADJUSTMENTS
Amortization of
intangible assets
Impairment of
intangible assets
Other operating
income/expenses
438.0
50.0
438.0
50.0
-12.0
73.0
61.0
Others
24.0
24.0
7.0
CORE
3,690.0
—
—
—
—
31.0
1,100.0
TAKEDA 2022 ANNUAL INTEGRATED REPORTINTRODUCTIONPATIENTPEOPLEPLANETFINANCIALSGLOBAL CSRGOVERNANCE Takeda Pharmaceutical Company Limited
Takeda Global Headquarters
1-1, Nihonbashi-Honcho 2-chome, Chuo-ku, Tokyo
103-8668, Japan
Tel: +81-3-3278-2111 Fax: +81-3-3278-2000
© Copyright 2022 Takeda Pharmaceutical Company Limited. All rights reserved.
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