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1.55bnAmount Pledged toSupport Healthcare Access(2009-2019) 3.9bnDonation Amount forGreat East JapanEarthquake Assistance(Period of recovery support programoperation by NGOs and NPOs dueto donations from Takeda: 2011 – 2020) The Global Fund/John RaePromotion and Disclosureof CSR Activities as Requiredby the International CommunityTakeda is stepping up its CSR activities by reflectinginsight gained from the international community tohelp it identify materiality, and then utilizing theUnited Nations Global Compact’s 10 principles andthe ISO 26000 framework of guidance standardsfor social responsibility. Furthermore, we disclosethe details of our activities, referring to the IIRC’sInternational Integrated Reporting Framework, theUnited Nations GC Advanced level criteria, andGRI’s Fourth Generation of Sustainability ReportingGuidelines (G4). We strive to provide disclosure ofinformation that is easy to understand by organizing the information into five categories: HumanRights, Labor, Environment, Anti-Corruption(including the core subjects in ISO 26000 of FairOperating Practices and Consumer Issues),and Corporate Citizenship Activities.SeeP.54 Human RightsP.56 LaborP.58 EnvironmentP.60 Anti-Corruption/Fair Operating Practices/Consumer IssuesP.62 CorporateCitizenship Activities5%Target Percentage of Womenin Managerial Positionsin Japan by Fiscal 201518%Fiscal 2015 CO2 EmissionsReduction Target(from fiscal 2005 levels)Takeda Annual Report 20145

Financial and Non-Financial HighlightsTakeda Pharmaceutical Company Limited and Subsidiaries Each Consolidated Fiscal Year Ended March 31Takeda has adopted International Financial Reporting Standards (IFRS) from fiscal 2013, ended March 31, 2014, and the disclosure information in this material is based on IFRS.According to this adoption, the previous year’s information is also based on IFRS.Millions of yenFiscal year ended March 312014IFRSRevenueResearch anddevelopment expensesOperating profitProfit before taxNet profit attributable toowners of the CompanyCore earningsMillions of yen2013IFRSMillions of yen2012J-GAAPMillions of yen2011J-GAAPMillions of yen% change20102014/2013J-GAAPThousands ofU.S. dollars *12014IFRS 1,691,685 1,557,005 1,508,932 1,419,385 158.6% 16,424,126314,202285,470̶̶̶ 148,335 332,579 336,570 326,938 381,168(55.4)% 4)(148,046)̶Total assets 4,569,144 4,052,556 3,577,030 2,786,402 2,823,274Total 6Net cash from (used in)operating activitiesNet cash from(used in) investing activitiesNet cash from(used in) financing activitiesTreasury sharesReturn on equity attributable toowners of the Company (ROE)Basic earnings per shareCash dividends per shareRevenueby region*2JapanNorth 5％6.8％6.1%11.8%14.4% 135.10 188.21 157.29 314.01 377.1910.112.7%8.7̶(28.2)%̶3,050,505984,864 44,360,62124,666,359(6,029) 1.311.75180.00180.00 733,882 .00(0.1)% IS89,57168,339̶̶̶31.1869,621Latin 2803.4PharmaceuticalbusinessEthical 27,84416,03517,1252.6Consumer healthcare4614504404354432.4Other businesses2,0922,0842,0212,0282,0160.4Total input energies (million MJ)9,278.9,4289,1566,5826,215(1.6) %CO2 emissions (kilotons of CO2)434.439435.292280(1.1)Fresh water used (thousand m3)7,944.8,3738,598.7,3097,461(5.1)EuropeNumber ofemployees*3Japan2.4%*1 The U.S. dollar amounts in this report represent translations of Japanese yen, solely for the reader’s convenience, at the rate of 103 US 1, the approximate exchange rate on March 31, 2014.*2 We revised the geographical segments from fiscal 2013, ended March 31, 2014. The country groupings for fiscal 2012 have been restated using this revised segmentation. Figures have beenomitted for the previous years.*3 Employees working in Takeda Pharmaceutical Company Limited and its consolidated subsidiaries. From fiscal 2010, ended March 31, 2011, the numbers are indicated on a full time equivalentbasis. For fair comparison, the numbers of fiscal 2009, ended March 31, 2010, are modified according to the new basis.Note: Account names under IFRS. Names in J-GAAP correspond to names in IFRS as follows: Net sales/Revenue Operating income/Operating profit Income before income taxes and minority interests/Profit beforetax Net income/Net profit attributable to owners of the Company Net assets/Total equity Return on equity/Return on equity attributable to owners of the Company Earnings per share/Basic earnings pershareSee6P.72 Financial InformationP.77 Key Social Responsibility DataTakeda Annual Report 2014

Operating Profit and Operating Margin( Billion)2,000（%）Operating Profit( Billion )5001691.7957.81,0005025250Operating MarginRevenue/Net SalesNet Profit Attributable to Ownersof the Company/Net Income( Billion 30FY(IFRS)Operating ProfitOperating Margin20.2％341.615300EPS30Ratio to Revenue（%）( )EPS and ROER&D Expenses and Ratio to RevenueR&D Expenses091213FY(IFRS)Cash Dividends per Share( )500（%）2501530( D ExpensesRatio to Revenue1213FY00(IFRS)09EPSROECO 2 Emissions101112(J-GAAP)13FY10111213 FYProportion of Shareholders31,225(Numbers)30,000Securities companies ber of Employees(Kilotons of CO2)60000Takeda PharmaceuticalCo., Ltd. 0.02%IndividualsNumber ofForeignandinvestors shareholders : 0910111213FYFinancialinstitutions29.80%OverseasIn JapanPerformance OverviewRevenueOperating profitNet profit for the yearCore earningsRevenue increased year on year asgrowth in sales of core products,including new products, more thanoffset the negative impact ofgeneric competition on sales ofACTOS in the U.S. market.Operating profit increased in linewith an increased gross profit andrigorous cost controls in all aspectsof operations.(attributable to owners of the Company)Core earnings are calculated bydeducting any temporary factors,such as impacts from businesscombination accounting andfrom amortization/impairmentloss of intangible assets, etc.,from operating profit. 8.6 % 114.3%SeeNet profit for the year (attributable toowners of the Company) declined, mainlydue to a decrease in gains on sales offinancial assets and the inclusion last year ofa tax refund relating to the correction fortransfer pricingtaxation.– 28.2% 10.1%P.10 Performance Overview and Mid-Range Growth StrategyP.16 Financial StrategyTakeda Annual Report 20147

Message to StakeholdersA video of a dialogue between the CEO and the COO can be viewed on Takeda’s corporate eda Annual Report 2014

Messagefrom the CEOWe, Takeda, continue to transform ourselvestowards better health and a brighter future.Following a series of transformational integrations, includingboth Millennium and Nycomed, last year Takeda formulated“Vision 2020” to articulate where we aspire to be as aglobal company by the year 2020. Providing a cleardirection and goals for the invigorated “New Takeda,”Vision 2020 will be achieved through the execution of ourMid-Range Growth Strategy during fiscal 2013-2017. Thisroadmap is centered around the principles of “Globalization,” “Diversity,” and “Innovation.”Throughout fiscal 2013, we leveraged our strength as aGroup to develop and implement our strategies moredeeply based upon the foundations of our Mid-RangeGrowth Strategy. On the commercial front, double-digitgrowth in the emerging and U.S. markets contributedstrongly as we realized substantial growth in all majorcountries and regions. In Research and Development, weare concentrating our efforts on the progress of our highlycompetitive late stage pipeline, where we are seeing steadyresults. Simultaneously, we are implementing “ProjectSummit,” a company-wide strategic initiative to speed upour transformation into a company with a robust andefficient operating model that is globally competitive inevery aspect of its business. In the first year, this initiativealready delivered cost savings and efficiencies whichexceeded the initial target. We are proactively employingindividuals with rich global experience and a wealth ofknowledge to further invigorate our corporate culturethrough diversity of talent.At the same time, Takeda is making every effort toimprove its corporate value through enhancing CSRactivities even further. This includes adopting a holisticapproach to improving access to healthcare for peoplearound the world.Christophe Weber officially assumed responsibility forexecution of all operations under the title of Chief Operating Officer (COO) in April 2014, and as of June 27, 2014,he has also become Representative Director, and President.Mr. Weber has demonstrated his leadership for over 20years within the global pharmaceutical industry, and I firmlybelieve him to be the most suitable person to lead the nextgeneration of transformation within Takeda. My role asRepresentative Director, Chairman of the Board and CEOwill be to take responsibility for the mid- to long-termstrategy. Mr. Weber has experience in a variety of countriesand regions as well as a track record of success in a broadrange of therapeutic areas that will be indispensable toTakeda’s sustainable growth in the global market. Under hisstrong leadership, I firmly believe that Takeda will continueto grow and flourish.With regard to a series of issues surrounding the results ofthe CASE-J study, an investigator-led clinical research relatedto the hypertension medicine BLOPRESS (candesartan) inJapan, we sincerely apologize to patients, healthcareprofessionals and all the concerned parties for multipleincidences of involvement and encouragement by Takedaemployees. Takeda will implement measures to preventrecurrences of this kind of event in the future. Thesemeasures include ensuring transparency through clarifyingthe role of each department and strengthening eachdepartment’s checking systems, as well as thoroughlyensuring that Takeda employees are completely uninvolvedin investigator-led clinical research related to Takedaproducts.Takeda will return to the basic focus on its deeplyembedded corporate philosophy of “Takeda-ism” (Integrity:Fairness, Honesty and Perseverance) which has beenfostered through generations of history, as we undertake aradical overhaul and rebuilding of the entire Group’scompliance system. Our corporate mission states, “Westrive towards better health for people worldwide throughleading innovation in medicine,” and we are makingcontinual efforts to realize this every day. We are transforming ourselves into a truly global pharmaceutical company sothat we can fulfill a wide range of medical needs around theworld, as we blaze a new trail in our efforts to help peoplerealize better health and a brighter future.Yasuchika HasegawaRepresentative Director, Chairman of the Board & CEOTakeda Annual Report 20149

Message to StakeholdersTakeda will make a collective effort acrossthe Group to realize Vision 2020,working to promote its businesswith a sense of urgency and dedication.【 Performance Overview and Mid-Range Growth Strategy】PerformanceOverviewTakeda has steadily executedmeasures to increaseits ability to compete globally.Takeda has adopted International Financial ReportingStandards (IFRS) for reporting its consolidatedoperating results instead of Japanese GenerallyAccepted Accounting Principles (J-GAAP) from fiscal2013. In this document, all financial information isbased on IFRS, except the items which are specified asJ-GAAP.Our consolidated revenue in fiscal 2013 grew 8.6%year on year to 1,691.7 billion, including anincrease in ethical drug revenues of 9.1% to 1,529.110Takeda Annual Report 2014billion. The increase was driven by higher sales of coreproducts such as antihypertensive agent AZILVA(azilsartan) in Japan, and multiple myeloma treatmentVELCADE (bortezomib), gastro-esophageal refluxdisease treatment DEXILANT (dexlansoprazole), andCOLCRYS (colchicine) for treatment of acute goutflares in the U.S. Furthermore, in Europe, sales ofmalignant lymphoma treatment ADCETRIS(brentuximab vedotin) expanded strongly, and sales inemerging markets also increased mainly due to thesales contribution of peptic ulcer treatmentpantoprazole. Such positive factors and the yen’sdepreciation absorbed a drastic decrease in sales oftype 2 diabetes treatment ACTOS (pioglitazone),which was strongly affected by the introduction ofgeneric versions, mainly in the U.S. As a result, werecorded an overall increase in consolidated revenue.On a like-for-like basis,*1 revenue increased by 5.1%compared to the previous year.Consolidated operating profit increased 114.3%year on year to 139.3 billion. Consolidated netprofit for the year (attributable to owners of theCompany) declined by 28.2% year on year to 106.7billion. The decline was mainly due to a decrease ingains on sales of non-core financial assets and theinclusion in fiscal 2012 of a tax refund relating to thecorrection for transfer pricing taxation between theU.S. and Japan. Core earnings,*2 an underlying profitindicator widely used in the pharmaceutical industrywhich has been introduced as a profit measure atTakeda from fiscal 2013, increased 10.1% year onyear to 314.2 billion.In fiscal 2013, Takeda initiated a Mid-Range GrowthStrategy for achieving “Vision 2020,” whicharticulates the aspiration of where the companywants to be in the year 2020.In R&D, Takeda strives to address the unmetmedical needs of people worldwide by focusing oninitiatives to quickly obtain new drug approvals for itspromising late-stage pipeline. As a result, in fiscal2013, the company was able to secure approvals andadvance many of its pipeline products. In September2013, Takeda obtained approval from the U.S. Food

and Drug Administration for BRINTELLIX (vortioxetine),a treatment for major depressive disorder, and inJanuary 2014, obtained a new drug applicationapproval in Japan for ADCETRIS. Furthermore, we havestepped up our efforts to strengthen our vaccinebusiness globally, obtaining a vaccine for denguefever with the acquisition of U.S.-based Inviragen, Inc.in May 2013.In our commercial activities, we have been workingto build highly competitive product portfoliosoptimized to meet the respective market needs inmature and emerging markets while alsoimplementing optimal marketing strategies. In Japan,Takeda managed to increase sales of the NESINA(alogliptin) family for the treatment of type 2 diabetesand AZILVA. In the U.S., Takeda focused on maximizingsales of new products launched in June 2013:NESINA, KAZANO (fixed-dose combination of NESINAand metformin), and OSENI (fixed-dose combinationof NESINA and ACTOS). In Europe, efforts tostrengthen the specialty care business saw sales ofADCETRIS grow rapidly in its first year on the market.In emerging markets, with a specific focus onRussia/CIS, China, and Brazil, we continued to achievebusiness growth that exceeds the growth of eachmarket in which we operate. Takeda is also striving tofurther expand its commercial platform in growingmarkets, with activities such as the establishment ofnew subsidiaries.forex and excluding exceptional items (Non-recurring items to be*1 Constantexcluded in view of normal business performance such as M&A relatedtransactions, business divestments, patent expirations and working daydifferences)earnings are calculated by deducting any temporary factors, such as*2 Coreimpacts from business combination accounting and fromamortization/impairment loss of intangible assets, etc., from operating profit.Financial Forecasts for Fiscal 2014In our operating results forecasts for fiscal 2014, weare projecting consolidated revenue of 1,725.0billion, an increase of 2.0% year on year, operatingprofit of 150.0 billion, up 7.7%, and net profit for theyear (attributable to owners of the Company) of 85.0 billion, a decrease of 20.3% year on year. Theseforecasts include the negative impact of theassumption of a slight further depreciation of the yenagainst major currencies.The main factors behind the projected increase inconsolidated revenue are expected sales increases forAZILVA in Japan, and BRINTELLIX and ENTYVIO(vedolizumab) for the treatment of ulcerative colitisand Crohn’s disease in the U.S., as well as sales growthin emerging markets.Although we are projecting an increase inconsolidated operating profit from the previous year,net profit (attributable to owners of the Company) forthe year is expected to decrease, mainly because of asignificant decrease in financial income. Core earningsare expected to marginally decrease from theprevious year, mainly as a result of increased R&Dexpenses and sales expenses related to the launch ofnew products, particularly in the U.S.Shareholder ReturnsThe annual dividend per share for fiscal 2013 was thesame as the previous year at 180. With regard toprofit distribution in accordance with the steadyimplementation of the Mid-Range Growth Strategy, weare committed to our policy of maintaining annualdividends of 180 per share for fiscal 2014 and 2015.With an emphasis on returns to shareholders, we willalso strive for a stable dividend for the future.FY2013 Results and FY2014 Forecasts(Announced in May 2014)( Billion)FY2012 (Actual)FY2013 (Actual)FY2014 (Forecast)IFRSRevenueR&D expensesOperating profitNet profit for the year (attributable to owners of the 9.3150.0148.6106.785.0188135108Core earnings285.5314.2280.0% of Revenue18.3%18.6%16.2％EPS ( )Note: The foreign exchange rate assumptions for fiscal 2014 are US 1 100 and 1 euro 140Takeda Annual Report 201411

Message to StakeholdersMid-RangeGrowth StrategyTakeda will make a Group-wide effort to further strengthen its initiativesbased on the Mid-Range Growth Strategy initiated in fiscal 2013

the ISO 26000 framework of guidance standards for social responsibility. Furthermore, we disclose the details of our activities, referring to the IIRC's International Integrated Reporting Framework, the United Nations GC Advanced level criteria, and GRI's Fourth Generation of Sustainability Reporting Guidelines (G4).