Takeda reclassifies $834bn in reserves for capital flexibility

Takeda Pharmaceutical Company Limited (TSE:4502) announced its board of directors approved the reversal of its general reserve and other voluntary reserves, reclassifying them to unappropriated retained earnings. This strategic move, approved on September 24, 2025, aims to enable a flexible capital policy by utilizing internal reserves accumulated over many years that have remained unused.

The reclassification involves decreasing several surplus items: JPY 5,000 million from Reserve for retirement benefits, JPY 11,000 million from Reserve for dividends, JPY 2,400 million from Reserve for research and development, JPY 1,054 million from Reserve for capital improvements, JPY 434 million from Reserve for promotion of exports, and JPY 814,500 million from General reserve. The total amount of JPY 834,388 million will be reclassified to Unappropriated retained earnings.

Takeda clarified that this treatment affects the unconsolidated balance sheet within the net assets section and does not impact the consolidated financial results or the total amount of net assets. The company's articles of incorporation permit such matters to be conducted by a resolution of the board of directors.