Takeda promotes risk management to reduce the financial risks arising from business operations. The principal risks to which Takeda is exposed include market risk, counterparty credit risk, and liquidity risk caused by changes in the market environment such as fluctuations in foreign exchange rates, interest rates and market prices of commodities and other financial holdings. Each of these risks is managed in accordance with Takeda’s policies.


	JPY (millions) As of March 31, 2024
	Financial assets measured at amortized cost		Measured at fair value through other comprehensive income		Measured at fair value through profit or loss		Derivative hedging instruments		Other financial liabilities		Total
Financial assets measured at fair value
Other financial assets -
Equity instruments	¥	—	¥	182,887	¥	—	¥	—	¥	—	¥	182,887
Derivative financial instruments	—		—		17,617		102,606		—		120,223
Investments in convertible notes	—		—		13,459		—		—		13,459
Investments in debt instruments	—		—		1,113		—		—		1,113
Financial assets associated with contingent consideration arrangements	—		—		12,293		—		—		12,293
Trade and other receivables	—		83,734		—		—		—		83,734
Total	¥	—	¥	266,621	¥	44,482	¥	102,606	¥	—	¥	413,709

Financial assets not measured at fair value
Other financial assets -
Other	¥	25,892	¥	—	¥	—	¥	—	¥	—	¥	25,892
Trade and other receivables	584,669		—		—		—		—		584,669
Cash and cash equivalents	457,800		—		—		—		—		457,800
Total	¥	1,068,361	¥	—	¥	—	¥	—	¥	—	¥	1,068,361

Financial liabilities measured at fair value
Other financial liabilities -
Derivative financial instruments	¥	—	¥	—	¥	13,783	¥	11,325	¥	—	¥	25,108
Financial liabilities associated with contingent consideration arrangements	—		—		7,772		—		—		7,772
Other	—		—		1,797		—		—		1,797
Total	¥	—	¥	—	¥	23,352	¥	11,325	¥	—	¥	34,677

Financial liabilities not measured at fair value
Other financial liabilities -
Lease liabilities	¥	—	¥	—	¥	—	¥	—	¥	619,639	¥	619,639
Other	—		—		—		—		176,938		176,938
Trade and other payables	—		—		—		—		547,521		547,521
Bonds and loans	—		—		—		—		4,843,752		4,843,752
Total	¥	—	¥	—	¥	—	¥	—	¥	6,187,850	¥	6,187,850


	JPY (millions) As of March 31, 2025
	Financial assets measured at amortized cost		Measured at fair value through other comprehensive income		Measured at fair value through profit or loss		Derivative hedging instruments		Other financial liabilities		Total
Financial assets measured at fair value
Other financial assets -
Equity instruments	¥	—	¥	151,687	¥	—	¥	—	¥	—	¥	151,687
Derivative financial instruments	—		—		12,361		72,007		—		84,369
Investments in convertible notes	—		—		10,424		—		—		10,424
Investments in debt instruments	—		79,342		12,005		—		—		91,348
Financial assets associated with contingent consideration arrangements	—		—		10,197		—		—		10,197
Trade and other receivables	—		65,568		—		—		—		65,568
Total	¥	—	¥	296,597	¥	44,987	¥	72,007	¥	—	¥	413,592

Financial assets not measured at fair value
Other financial assets -
Other	¥	23,576	¥	—	¥	—	¥	—	¥	—	¥	23,576
Trade and other receivables	643,896		—		—		—		—		643,896
Cash and cash equivalents	385,113		—		—		—		—		385,113
Total	¥	1,052,586	¥	—	¥	—	¥	—	¥	—	¥	1,052,586

Financial liabilities measured at fair value
Other financial liabilities -
Derivative financial instruments	¥	—	¥	—	¥	16,309	¥	219	¥	—	¥	16,528
Financial liabilities associated with contingent consideration arrangements	—		—		4,362		—		—		4,362

Total	¥	—	¥	—	¥	20,671	¥	219	¥	—	¥	20,890

Financial liabilities not measured at fair value
Other financial liabilities -
Lease liabilities	¥	—	¥	—	¥	—	¥	—	¥	573,325	¥	573,325
Other	—		—		—		—		175,805		175,805
Trade and other payables	—		—		—		—		475,541		475,541
Bonds and loans	—		—		—		—		4,515,265		4,515,265
Total	¥	—	¥	—	¥	—	¥	—	¥	5,739,936	¥	5,739,936

Derivative and non-derivative financial instruments measured at fair value are categorized in the following three-tier fair value hierarchy that reflects the significance of the inputs in making the measurements. Level 1 is defined as observable inputs, such as quoted prices in active markets for an identical asset or liability. Level 2 is defined as inputs other than quoted prices in active markets within Level 1 that are directly or indirectly observable. Level 3 is defined as unobservable inputs.


	JPY (millions) As of March 31, 2024
	Level 1		Level 2		Level 3		Total
Assets:
Financial assets measured at fair value through profit or loss
Derivatives	¥	—	¥	8,511	¥	9,106	¥	17,617
Investment in convertible notes	—		—		13,459		13,459
Investment in debt instruments	—		—		1,113		1,113
Financial assets associated with contingent consideration arrangements	—		—		12,293		12,293
Derivatives for which hedge accounting is applied	—		102,606		—		102,606
Financial assets measured at fair value through OCI
Trade and other receivables	—		83,734		—		83,734
Equity instruments	93,962		—		88,925		182,887
Total	¥	93,962	¥	194,851	¥	124,896	¥	413,709

Liabilities:
Financial liabilities measured at fair value through profit or loss
Derivatives	¥	—	¥	4,677	¥	9,106	¥	13,783
Financial liabilities associated with contingent consideration arrangements	—		—		7,772		7,772
Other	—		—		1,797		1,797
Derivatives for which hedge accounting is applied	—		11,325		—		11,325
Total	¥	—	¥	16,002	¥	18,675	¥	34,677


	JPY (millions) As of March 31, 2025
	Level 1		Level 2		Level 3		Total
Assets:
Financial assets measured at fair value through profit or loss
Derivatives	¥	—	¥	2,892	¥	9,470	¥	12,361
Investment in convertible notes	—		—		10,424		10,424
Investment in debt instruments	—		—		12,005		12,005
Financial assets associated with contingent consideration arrangements	—		—		10,197		10,197
Derivatives for which hedge accounting is applied	—		72,007		—		72,007
Financial assets measured at fair value through OCI
Trade and other receivables	—		65,568		—		65,568
Equity instruments	78,073		—		73,614		151,687
Investments in debt instruments	79,342		—		—		79,342
Total	¥	157,415	¥	140,467	¥	115,709	¥	413,592

Liabilities:
Financial liabilities measured at fair value through profit or loss
Derivatives	¥	—	¥	6,475	¥	9,834	¥	16,309
Financial liabilities associated with contingent consideration arrangements	—		—		4,362		4,362

Derivatives for which hedge accounting is applied	—		219		—		219
Total	¥	—	¥	6,694	¥	14,196	¥	20,890

Derivatives classified as Level 3 include those recognized in connection with settlements of cash flows arising from differences between the fixed prices and floating market prices of renewable energy in a virtual power purchase agreement and those recognized in an agreement to offset the volatility of such cash flows. The fair value of derivatives in Level 3 is measured using the discounted cash flow method. The key assumptions taken into account include forecasted renewable energy prices and the expected generation of the renewable energy generating facility.

Equity instruments and investments in debt instruments are not held for trading. If equity instruments or investments in debt instruments are quoted in an active market, the fair value is based on price quotations at the period-end-date. If equity instruments or investments in debt instruments are not quoted in an active market, the fair value is calculated utilizing an adjusted book value per share method or EBITDA multiples approach based on available information as of each period-end-date and comparable companies. The principal input that is not observable and utilized for the calculation of the fair value of equity instruments and investments in debt instruments classified as Level 3 is the EBITDA rate used for the EBITDA multiples approach, which ranges from 4.7 times to 10.5 times. During the years ended March 31, 2024 and 2025, cumulative losses on equity investments of JPY (1,224) million and JPY (1,339) million were reclassified from other comprehensive income to retained earnings, respectively, upon the disposal of certain equity investments in publicly traded companies. The fair value of these investments on the dates of disposal during the years ended March 31, 2024 and 2025 were JPY 6,458 million and JPY 25,019 million, respectively. The investments were disposed of after management’s assessment of these investments relative to the investment strategy.

Financial assets and liabilities associated with contingent consideration arrangements are measured at fair value at the time of the divestiture or the acquisition date of business combination. When the contingent consideration arrangement meets the definition of a financial asset or liability, it is subsequently re-measured at fair value at each closing date. The determination of the fair value is based on models such as scenario-based methods and discounted cash flows. The key assumptions take into consideration the probability of meeting each performance target, forecasted revenue projections, and the discount factor. The financial assets associated with contingent consideration arrangements are recognized mainly in relation to the divestiture of XIIDRA. The financial liabilities associated with contingent consideration arrangements are discussed in Financial liabilities associated with contingent consideration arrangements.

Takeda recognizes transfers between levels of the fair value hierarchy, at the end of the reporting period during which the change has occurred. There were transfers from Level 3 to Level 1 recorded in the years ended March 31, 2024 and 2025. These transfers resulted from the investments in the companies whose shares were previously not listed on an equity or stock exchange and had no recent observable active trades in the shares. During the years ended March 31, 2024 and 2025, the companies listed its equity shares on an exchange and are currently actively traded in the market. As the equity shares have a published price quotation in an active market, the fair value measurement was transferred from Level 3 to Level 1 on the fair value hierarchy during the years ended March 31, 2024 and 2025, respectively. There were no other significant transfers between levels of the fair value hierarchy during the years ended March 31, 2024 and 2025.

Takeda invests in equity instruments mainly for research collaboration. The following table shows a reconciliation from the opening balances to the closing balances for Level 3 financial asset fair values for the years ended March 31, 2024 and 2025. The disclosure related to Level 3 financial liabilities which are financial liabilities associated with contingent consideration arrangements are included in Financial liabilities associated with contingent consideration arrangements. There are no significant changes in fair value during the changes in certain assumptions which influence the fair value measurement for Level 3 financial assets.


	JPY (millions) For the Year Ended March 31
	2024				2025
	Financial assets associated with contingent consideration arrangements		Equity instruments		Financial assets associated with contingent consideration arrangements		Equity instruments
As of the beginning of the year	¥	23,806	¥	83,236	¥	12,293	¥	88,925

Recognition of financial assets associated with contingent consideration arrangements	—		—		147		—
Changes recognized as finance income (expenses)	(702)		—		516		—
Changes in fair value of financial assets associated with contingent consideration due to other elements than time value	(12,415)		—		(1,789)		—
Changes in fair value of financial assets measured at fair value through OCI and exchange differences on translation of foreign operations	1,604		4,900		(970)		(16,846)

Purchases	—		1,760		—		2,843
Sales	—		(217)		—		(361)
Transfers to Level 1	—		(5,008)		—		(1,626)

Acquisition from conversion of convertible notes	—		4,254		—		1,488

Transfers to investments accounted for using the equity method	—		—		—		(809)

As of the end of the year	¥	12,293	¥	88,925	¥	10,197	¥	73,614

Financial liabilities associated with contingent consideration arrangements represent consideration related to business combinations or license agreements that are payable only upon future events such as the achievement of development milestones and sales targets, including pre-existing contingent consideration arrangements of the companies that are acquired by Takeda. At each reporting date, the fair value of financial liabilities associated with contingent consideration arrangements is re-measured based on risk-adjusted future cash flows discounted using an appropriate discount rate.

The fair value of financial liabilities associated with contingent consideration arrangements are classified as Level 3 in the fair value hierarchy. The following table shows a reconciliation from the opening balances to the closing balances and payment term for financial liabilities associated with contingent consideration arrangements for the years ended March 31, 2024 and 2025, respectively. There are no significant changes in fair value during the changes in significant assumptions which influence the fair value measurement for financial liabilities associated with contingent consideration arrangements.


	JPY (millions) For the Year Ended March 31
	2024		2025
As of the beginning of the year	¥	8,139	¥	7,772


Changes in the fair value during the period	8,678		(2,059)
Settled and paid during the period	(9,032)		(774)

Foreign currency translation differences	(13)		(577)

As of the end of the year	¥	7,772	¥	4,362

	JPY (millions) As of March 31
	2024		2025
Payment term (undiscounted)
Within one year	¥	2,207	¥	3,003
Between one and three years	3,698		1,398
Between three and five years	1,855		—
More than five years	1,171		—

The carrying amount and fair value of financial instruments that are not measured at fair value in the consolidated statements of financial position are as follows. Fair value information is not provided for financial instruments, if the carrying amount is a reasonable estimate of fair value due to the relatively short period of maturity of these instruments.

Long-term financial liabilities are recognized at their carrying amount. The fair value of bonds is measured at quotes whose significant inputs to the valuation model used are based on observable market data. The fair value of loans is measured at the present value of future cash flows discounted using the applicable market rate on the loans in consideration of the credit risk by each group classified in a specified period. The fair value of bonds and long-term loans are classified as Level 2 in the fair value hierarchy.

Takeda’s exposure to foreign exchange rates primarily relates to its foreign currency denominated operations and Takeda’s net investments in foreign subsidiaries. Takeda manages foreign currency risks in a centralized manner using derivative financial instruments. Takeda’s policy does not permit the use of speculative foreign currency financial instruments or derivatives.

Takeda uses forward exchange contracts, cross currency interest rate swaps, currency options to hedge individually significant foreign currency transactions. Takeda has also designated bonds and loans denominated in the US dollar and Euro and certain forward exchange contracts as hedging instruments of net investments in foreign operations. As of March 31, 2024 and 2025, the total fair value of the foreign currency denominated loans was JPY 227,309 million and JPY 74,517 million, respectively, and the total fair value of the foreign currency denominated bonds was JPY 2,679,660 million and JPY 2,892,158 million, respectively.

Takeda is exposed mainly to foreign currency risks of the US dollar and Euro. The fair values of Takeda’s financial instrument holdings are analyzed to determine their sensitivity to changes in foreign exchange rates. Our analysis shows that if the JPY were to change against all other currencies by 5%, as of March 31, 2024 and 2025, the hypothetical impact on net income would not be material. This analysis assumes that all other variables, in particular interest rates, remain constant and that a change in one currency’s rate relative to the JPY would not have any effect on another currency’s rate relative to the JPY. In addition, this analysis does not include the effects of foreign currency translation on financial instruments that are denominated in the functional currency of the entity holding them.


	JPY (millions) As of March 31, 2025
	Contract amount		Contract amount to be settled in more than one year		Fair value
Forward exchange contracts:
Selling:
Euro	¥	1,178,796	¥	—	¥	(3,120)
United States Dollar	128,717		—		1,673
Buying:
Euro	305,964		—		1,054
United States Dollar	129,574		—		(1,693)

Cross currency interest rate swaps:
Buying:
United States Dollar	774,089		774,089		68,154

Takeda’s exposure to the risk of changes in benchmark interest rates and foreign exchange rate relates to the debts with floating interest rates as well as the trade and other receivables due from customers that Takeda has the option to factor. Takeda uses interest rate swaps, forward interest rate, cross currency interest rate swaps that fix the amount of future payments to manage interest and foreign exchange rate risks through cash flow hedge strategies. Takeda may also use derivatives that effectively convert its fixed rate debt to floating through fair-value hedge strategies. The following summarizes interest rate swaps, forward interest rate contracts, and cross currency interest rate swaps designated as cash flow hedges as of March 31:

The fair values of Takeda’s financial instrument holdings are analyzed to determine their sensitivity to interest rate changes. Our analysis shows that if there were a 1% change in interest rates, as of March 31, 2024 and 2025, the hypothetical impact on net income would not be material. This analysis assumes that all other variables, in particular foreign currency exchange rates, remain constant.

Market pricing and valuations of Takeda’s fixed-income financial assets and liabilities are impacted by changes in currency rates, interest rates and credit spreads, which are managed as described above. For equity instruments, Takeda manages the risk of price fluctuations in the instruments by regularly reviewing share prices and financial positions of the issuers.

Our analysis shows that if the market price of equity instruments held by Takeda and investments in trusts which hold equity instruments on behalf of Takeda had changed by 10%, as of March 31, 2024 and 2025, the hypothetical impact on other comprehensive income would not be material. This analysis assumes that all other variables, in particular interest rates and foreign currency exchange rates, remain constant. There is no impact on net income because the changes in the fair value of equity instruments are recognized directly in equity.

As described above, Takeda is exposed to effects related to foreign exchange fluctuations in connection with our international business activities that are denominated in various currencies and Takeda’s overseas entities that have different functional currencies. Takeda is also exposed to currency and interest rate fluctuations on our borrowings that we use to finance our business operations and our acquisitions. In addition, Takeda is exposed to interest rate fluctuations on the trade and other receivables due from customers that Takeda has the option to factor. These are denominated in various currencies and may bear interest at variable rates, resulting in the risk related to the currency and interest rate movements.

In order to manage the risk of currency exchange rate and interest rate fluctuations, Takeda may enter into derivative contracts with highly rated financial institutions. Takeda enters into derivative contracts based on our risk management policies, which determine the authority for entering into such transactions and the transaction limits. The policy, which has been consistently followed, is that financial derivatives be used only for hedging foreign currency and interest rate exposure and not for speculative purposes.

Takeda generally designates its derivatives as hedges for accounting purposes. In certain instances, Takeda enters into derivative contracts (“balance sheet hedges”) that do not qualify for hedge accounting but are nevertheless utilized to manage the underlying foreign currency exposure risk. Balance sheet hedges are used to offset the foreign currency impact from assets and liabilities on Takeda balance sheet that are denominated in non-functional currencies. Given these foreign currency derivatives work on an offset basis they do not require hedge accounting. Takeda has established guidelines for risk assessment procedures and controls for the use of financial instruments. These guidelines include a clear segregation of duties between execution and administration, and then again between accounting and controlling.

The following tables represent the items designated as hedging instruments, amounts within other components of equity related to items designated as hedged items and amounts of changes in fair value of hedging instruments recorded in other comprehensive income and the amounts reclassified from the hedging reserve to profit or loss as of and for the year ended March 31, 2024:


		JPY (millions) As of March 31, 2024
	Notional	Carrying amount – assets		Carrying amount – liabilities		Line item in the statement of financial position where hedging instrument is included	Average rate used for the fair value of the hedging instrument
Cash flow hedges
Interest risk
Interest rate swaps	USD 575 million	¥	7,172	¥	—	Other financial assets	2.83	%
	JPY 90,000 million	33		0		Other financial assets /liabilities	0.57	%
Forward interest rate	JPY 270,000 million	34		1,477		Other financial assets /liabilities	0.53	%

Currency and interest risk
Cross currency interest rate swaps	USD 6,675 million	95,368		—		Other financial assets	131.08 JPY (0.09)%
Net investment hedges
Foreign currency denominated bonds and loans	USD 3,581 million	—		542,399		Bonds and loans
	EUR 6,628 million	—		1,081,796		Bonds and loans
Forward exchange contracts	USD 1,168 million	—		2,618		Other financial liabilities
	EUR 1,000 million	—		7,229		Other financial liabilities


	JPY (millions) As of March 31, 2024
	Balance in cash flow hedges and net investment hedges		Balance in hedge cost reserve
Cash flow hedges
Interest risk
Interest rate swaps	¥	4,063	¥	—
Forward interest rate	(19,283)		—
Currency and interest risk
Cross currency interest rate swaps	(52,236)		(15,930)
Currency risk
Hedge related to acquisition	3,560		—
Net investment hedges
Foreign currency denominated bonds and loans	344,866		—
Forward exchange contracts	189,796		—


	JPY (millions) For the year ended March 31, 2024
	Amounts recognized in OCI				Amount reclassified to profit or loss
	Change in fair value of hedging instruments		Hedging costs		Cash flow hedge		Hedging costs		Line item in which reclassification adjustment is included
Cash flow hedges
Interest risk
Interest rate swaps	¥	4,098	¥	—	¥	(2,492)	¥	—	Finance income
Forward interest rate	387		—		2,349		—		Finance expenses
Currency and interest risk
Cross currency interest rate swaps	166,574		12,392		(137,122)		(2,024)		Finance income and Finance expenses


Net investment hedges
Foreign currency denominated bonds and loans	169,111		—		—		—
Forward exchange contracts	109,212		—		—		—


		JPY (millions) As of March 31, 2025
	Notional	Carrying amount – assets	Carrying amount – liabilities	Line item in the statement of financial position where hedging instrument is included	Average rate used for the fair value of the hedging instrument
Cash flow hedges
Interest risk

Interest rate swaps	JPY 130,000 million	1,412	—	Other financial assets	1.04	%
Forward interest rate	JPY 50,000 million	119	37	Other financial assets /liabilities	1.32	%
	USD 1,000 million	650	7	Other financial asset/liability	4.20	%
Currency and interest risk
Cross currency interest rate swaps	USD 5,750 million	68,154	—	Other financial assets	134.62 JPY (0.11)%
Net investment hedges
Foreign currency denominated bonds and loans	USD 6,506 million	—	969,495	Bonds and loans
	EUR 6,632 million	—	1,070,017	Bonds and loans
Forward exchange contracts	USD 863 million	1,673	—	Other financial assets
	EUR 1,000 million	—	175	Other financial liabilities


	JPY (millions) As of March 31, 2025
	Balance in cash flow hedges and net investment hedges		Balance in hedge cost reserve
Cash flow hedges
Interest risk
Interest rate swaps	¥	1,010	¥	—
Forward interest rate	(15,795)		—
Currency and interest risk
Cross currency interest rate swaps	(53,627)		(7,967)
Currency risk
Hedge related to acquisition	3,560		—
Net investment hedges
Foreign currency denominated bonds and loans	324,759		—
Forward exchange contracts	203,262		—


	JPY (millions) For the year ended March 31, 2025
	Amounts recognized in OCI				Amount reclassified to profit or loss
	Change in fair value of hedging instruments		Hedging costs		Cash flow hedge		Hedging costs		Line item in which reclassification adjustment is included
Cash flow hedges
Interest risk
Interest rate swaps	¥	2,037	¥	—	¥	(6,415)	¥	—	Finance income
Forward interest rate	2,301		—		2,317		—		Finance expenses
Currency and interest risk
Cross currency interest rate swaps	(711)		18,663		(2,355)		(7,350)		Finance income and Finance expenses


Net investment hedges
Foreign currency denominated bonds and loans	(19,662)		—		—		—
Forward exchange contracts	13,466		—		—		—

The amount relating to the ineffectiveness recorded in profit or loss was immaterial for the years ended March 31, 2024 and 2025. The amount of hedging gains/losses recorded in other comprehensive income and reclassified to profit or loss as hedged future cash flows were no longer expected to occur was not material for the years ended March 31, 2024 and 2025.

The capital structure of Takeda consists of shareholders’ equity (Note 26), bonds and loans (Note 20), and cash and cash equivalents (Note 18). The fundamental principles of Takeda’s capital risk management are to build and maintain a steady financial base for the purpose of maintaining soundness and efficiency of operations and achieving sustainable growth. According to these principles, Takeda conducts capital investment, profit distribution such as dividends, and repayment of loans based on steady operating cash flows through the development and sale of competitive products.

Takeda utilizes factoring arrangements for selected trade and other receivables. Under these programs, trade and other receivables sold are derecognized when the risks and rewards of ownership have been transferred. Amounts due from customers that are subject to the factoring arrangements but have not been factored at fiscal year end are disclosed in Note 17.

Takeda is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions, and other financial instruments. The maximum exposure to credit risk, without taking into account any collateral held at the end of the reporting period, is represented by the carrying amount of the financial instruments which is exposed to credit risk on the consolidated statements of financial position. Takeda regularly monitors the status of credit risk exposure with banks and financial institutions.

Trade and other receivables are exposed to customer credit risk. Takeda monitors the status of overdue balances, reviews outstanding balances for each customer and regularly examines the credibility of major customers in accordance with Takeda’s policies for credit management to facilitate the early evaluation and the reduction of potential credit risks. In parallel, Takeda utilizes programs to sell certain trade and other receivables due from certain customers to a select group of banks on a non-recourse basis which in turn minimizes the credit risk associated with such customers. If necessary, Takeda obtains rights to collateral or guarantees on the receivables.


	JPY (millions) except for percentage As of March 31, 2024
				Amount past due
	Current			Within 30 days			Over 30 days but within 60 days			Over 60 days but within 90 days			Over 90 days but within one year			Over one year			Total
Gross carrying amount	¥	527,383		¥	34,960		¥	12,645		¥	3,956		¥	21,492		¥	20,379		¥	620,815
Impairment loss allowance	(2,482)			(107)			(143)			(99)			(450)			(5,095)			(8,376)
Net carrying amount	524,901			34,853			12,502			3,857			21,042			15,284			612,439
Weighted average loss rate (%)	0.5		%	0.3		%	1.1		%	2.5		%	2.1		%	25.0		%	1.3		%


	JPY (millions) except for percentage As of March 31, 2025
				Amount past due
	Current			Within 30 days			Over 30 days but within 60 days			Over 60 days but within 90 days			Over 90 days but within one year			Over one year			Total
Gross carrying amount	¥	585,910		¥	28,481		¥	9,162		¥	5,605		¥	19,894		¥	12,127		¥	661,178
Impairment loss allowance	(1,965)			(299)			(459)			(505)			(2,171)			(4,364)			(9,763)
Net carrying amount	583,945			28,181			8,702			5,100			17,723			7,763			651,414
Weighted average loss rate (%)	0.3		%	1.1		%	5.0		%	9.0		%	10.9		%	36.0		%	1.5		%

As of March 31, 2024 and 2025, Takeda has provided loss allowance on trade receivables and other receivables not past due based on an analysis of credit histories. Loss allowance for trade receivables are measured based on expected credit losses on a collective basis using the simplified approach. However, when events that have a detrimental impact on the estimated future cash flows such as customers’ deterioration of financial conditions or failure of payment overdue have occurred, expected credit losses are measured on an individual basis as credit-impaired financial assets. Takeda considers a financial asset to be in default when the customer is unlikely to pay the obligation in full, without recourse by Takeda to take actions such as realizing collaterals, if any.


	JPY (millions)
	Bad debt provision calculated by simplified approach		Bad debt provision recognized to credit- impaired financial assets		Total
As of April 1, 2023	¥	3,327	¥	4,029	¥	7,356
Increases	857		561		1,419
Decreases (written off)	(437)		(377)		(814)
Decreases (reversed)	(324)		(231)		(555)
Foreign currency translation differences	410		561		971
As of March 31, 2024	¥	3,833	¥	4,543	¥	8,376
Increases	3,249		550		3,799
Decreases (written off)	(1,590)		(391)		(1,981)
Decreases (reversed)	(258)		(56)		(314)
Foreign currency translation differences	(26)		(91)		(117)
As of March 31, 2025	¥	5,207	¥	4,556	¥	9,763

Cash reserves of Takeda are concentrated mostly with the Company and entities acting as the cash pool leader in the U.S. and Europe. These cash reserves are primarily managed exclusively by investments in highly rated short-term bank deposits and bonds of highly rated issuers within the investment limits determined by reviewing the investment ratings and terms under Takeda’s policies for fund management, resulting in limited credit risk. Cash reserves, other than those subject to the group cash pooling system, are managed by each consolidated subsidiary in accordance with the Company’s fund management policies. For derivatives, Takeda enters into contracts only with financial counterparties rated investment grade or higher in order to minimize counterparty risk.

Takeda manages liquidity risk and establishes an adequate management framework for liquidity risk to secure stable short-, mid-, and long-term funds and sufficient liquidity for operations. Takeda manages liquidity risk by monitoring forecasted cash flows and actual cash flows on an ongoing basis. In addition, Takeda has commitment lines with some counterparty financial institutions to manage liquidity risk (Note 20). Takeda strives to maximize the available liquidity with a combination of liquid short-term investments and committed credit lines with strong rated counterparties. The objective is to maintain levels in excess of project cash needs to mitigate the risk of contingencies.

The table below presents the balances of financial liabilities by maturity. The total contract amount below reflects cash flows presented on an undiscounted cash flow basis, including interest expense. The amounts disclosed as of March 31, 2024 and 2025 are undiscounted cash flows using the respective spot foreign exchange rates as of March 31, 2024 and 2025.


	JPY (millions)
	Carrying amount		Total		Within one year		Between one and two years		Between two and three years		Between three and four years		Between four and five years		More than five years
As of March 31, 2024
Bonds and loans
Bonds	¥	4,092,879	¥	5,090,592	¥	913,282	¥	206,481	¥	774,784	¥	185,176	¥	326,949	¥	2,683,919
Loans	750,873		805,847		66,983		100,467		113,605		347,612		76,162		101,019

Trade and other payables	547,521		547,521		547,521		—		—		—		—		—
Lease liabilities	619,639		900,755		66,208		60,944		55,831		53,459		51,235		613,078
Derivative liabilities	25,108		27,590		16,547		762		1,053		1,113		1,096		7,019
Derivative assets	(120,223)		(400,354)		(56,538)		(40,327)		(39,186)		(73,404)		(35,218)		(155,681)

As of March 31, 2025
Bonds and loans
Bonds	¥	4,190,632	¥	5,635,859	¥	499,779	¥	570,054	¥	216,517	¥	355,414	¥	1,046,745	¥	2,947,350
Loans	324,633		334,907		161,958		1,837		1,903		76,945		41,495		50,769

Trade and other payables	475,541		475,541		475,541		—		—		—		—		—
Lease liabilities	573,325		825,819		64,443		57,426		54,117		50,974		49,114		549,744
Derivative liabilities	16,528		18,043		7,766		1,078		1,047		1,013		1,081		6,057
Derivative assets	(84,369)		(269,425)		(35,404)		(29,400)		(29,428)		(30,556)		(18,240)		(126,397)


	JPY (millions)
	Bonds		Long-term loans		Short-term loans		Lease liabilities		Derivative assets used for hedge of debts		Derivative liabilities used for hedge of debts		Total
As of April 1, 2023	¥	3,658,314	¥	723,772	¥	256	¥	479,351	¥	(55,223)	¥	14,179	¥	4,820,649
Cash flows from financing activities
Net increase (decrease) in short-term loans and commercial papers	277,000		—		—		—		—		—		277,000
Proceeds from long-term loans	—		100,000		—		—		—		—		100,000
Repayments of long-term loans	—		(100,351)		—		—		—		—		(100,351)

Repayments of bonds	(220,550)		—		—		—		—		—		(220,550)
Proceeds from the settlement of cross currency interest rate swaps related to bonds	—		—		—		—		60,063		—		60,063
Repayments of lease liabilities	—		—		—		(54,586)		—		—		(54,586)
Interest paid	—		—		—		(20,826)		—		—		(20,826)


Non-cash items
Foreign exchange movement	369,442		27,686		39		58,169		—		—		455,336
Change in fair value	—		—		—		—		(100,207)		(14,179)		(114,386)
New, amended and terminated leases	—		—		—		136,705		—		—		136,705
Others	8,673		(485)		(44)		20,826		—		—		28,970
As of March 31, 2024	¥	4,092,879	¥	750,622	¥	251	¥	619,639	¥	(95,368)	¥	—	¥	5,368,024


	JPY (millions)
	Bonds		Long-term loans		Short-term loans		Lease liabilities		Derivative assets used for hedge of debts		Derivative liabilities used for hedge of debts		Total
As of April 1, 2024	¥	4,092,879	¥	750,622	¥	251	¥	619,639	¥	(95,368)	¥	—	¥	5,368,024
Cash flows from financing activities
Net increase (decrease) in short-term loans and commercial papers	(47,000)		—		74,490		—		—		—		27,490
Proceeds from long-term loans	—		90,000		—		—		—		—		90,000
Repayments of long-term loans	—		(587,246)		—		—		—		—		(587,246)
Proceeds from bonds	934,460		—		—		—		—		—		934,460
Repayments of bonds	(733,844)		—		—		—		—		—		(733,844)
Proceeds from the settlement of cross currency interest rate swaps related to bonds and loans	—		—		—		—		46,880		—		46,880
Repayments of lease liabilities	—		—		—		(45,174)		—		—		(45,174)
Interest paid	—		—		—		(24,511)		—		—		(24,511)


Non-cash items
Foreign exchange movement	(62,248)		(3,603)		(0)		(8,892)		—		—		(74,744)
Change in fair value	—		—		—		—		(19,666)		—		(19,666)
New, amended and terminated leases	—		—		—		7,752		—		—		7,752
Others	6,385		239		(119)		24,511		—		—		31,016
As of March 31, 2025	¥	4,190,632	¥	250,012	¥	74,621	¥	573,325	¥	(68,154)	¥	—	¥	5,020,436