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Investor Presentaiton

19 FY2021 H1 Reconciliation from Reported to Core REPORTED TO CORE ADJUSTMENTS (Billion JPY) REPORTED Amortization Impairment of of intangible intangible assets assets Other operating income/ expenses Sale of Japan diabetes portfolio Irish Tax Assessment 1 CORE Others Revenue Cost of sales Gross profit 1,794.4 (133.0) 1,661.4 (517.1) 0.6 22.3 (494.1) 1,277.4 (132.4) 22.3 1,167.2 SG&A expenses (431.9) 1.0 2.1 (428.7) R&D expenses (254.1) 1.3 (252.8) Amortization of intangible assets associated with products (204.1) 204.1 Impairment losses on intangible assets associated with products (1.5) 1.5 Other operating income 19.5 (18.8) (0.7) Other operating expenses (59.4) 59.4 Operating profit 346.0 204.1 1.5 40.6 (131.4) 25.0 485.7 Margin 19.3% 29.2% Finance income and (expenses), net Share of profit (loss) of investments accounted for using the equity method (58.0) (0.4) (58.5) (3.5) 6.4 2.8 Profit before tax 284.4 Tax expenses (100.7) 204.1 (45.5) 1.5 40.6 (0.5) (11.5) (131.4) 40.2 31.0 430.1 63.7 (39.9) (94.2) Non-controlling interests (0.1) (0.1) Net profit attributable to owners of the Company EPS (yen) 183.6 158.6 0.9 29.2 (91.2) 63.7 (9.0) 335.9 117 214 Number of shares (millions) 1,568 1,568 *1 Tax charges of 63.7 billion JPY arising from the tax assessment involving Irish taxation ofthe breakfee Shire received from AbbVie in connection with the terminated offer to acquire Shire made by AbbVie in 2014, net of 0.5 billion JPY of associated tax benefit. Takeda
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