Political Engagement for

Takeda Political Action Committee Better Health & Brighter Futures

2019 ANNUAL REPORT TakPAC’s PURPOSE

TakPAC offers eligible Takeda employees a way to join together to support the election of candidates, regardless of their political affiliation, who share our vision to drive innovation and ensure patient access.

TABLE OF CONTENTS

Message from the Chair...... 3

By the Numbers...... 4

TakPAC Expands Our Reach...... 6

TakPAC Financial Statement...... 7

Who Makes the Decisions?...... 8

2018 Contributions to Candidates & Committees...... 9

Public Policies Important to Takeda...... 11

Did You Know?...... 12 MESSAGE FROM THE CHAIR

IT TAKES A TEAM

Two thousand nineteen was a milestone year for We are proud to report that 249 Takeda team members Takeda—we finalized the acquisition of Shire and are voluntarily contributed more than $150,000 and well on our way to truly becoming One Takeda. With supported more than 40 candidates and committees an expanded geographic footprint and 50,000 employees in 2019. worldwide, we are now a global biopharmaceutical leader bringing our highly innovative medicines to This TakPAC annual report provides our donors and approximately 80 countries/regions. The U.S. market interested parties alike with a full accounting of the has never been more important to the company with political candidates and committees that received approximately 50 percent of our revenue coming from the PAC’s support in 2019. It also includes a detailed the U.S. and over 18,000 employees dedicated to financial statement and the criteria used to determine serving the needs of patients. which candidates and committees qualify for support.

While this growth is exciting, it brings with it an We are proud to share this information as part of our increased exposure to U.S. public policy and therefore commitment to transparency. an increased need to strengthen and develop the relationships we build with lawmakers at every level Issues like drug pricing and transparency, Medicare of government. reform, healthcare reform, and patient issues such as access and step therapy continue to be among our We work to create positive political interactions with top policy priorities for the coming year. Combined both Democrats and Republicans through a U.S. with a big election year, we have our work cut out for Public Affairs strategy that includes direct advocacy, us in 2020. grassroots engagement and political contributions— contributions we are able to make because of TakPAC.

Rick Ascroft 2019 TakPAC Chairman Senior Vice President, Managed Markets Takeda Pharmaceuticals U.S.A., Inc.

3 2019 TakPAC BY THE NUMBERS

10 TD T Tak D D TD249 TTD Tak

$151,650 TT T TT TD

$81,000 TTD T D DDT 43 TT

4 4 2019 TakPAC BY THE NUMBERS

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3 6 8

5 TakPAC Expands Our Reach

The oernment aounts for nearly half of all healthare spendin and its poliies leislation and reulations impat the entire healthare system

Drug Pricing/ Medicare Patient Issues Healthcare Transparency Reform esstep Therapy Coverage

6 2019 TakPAC FINANCIAL STATEMENT

Cash on Hand (1/1/2019) $ 44,716.68

REVENUE

Receipts from Voluntary Employee Donations $ 151,649.95 Transfer from Shire PAC $ 36,847.19 Total $ 188,497.14

DISBURSEMENTS

Federal Candidates & Political Committees $ 81,000.00 Operating Expenses (bank fees) $ 2,283.03 Total $ 83,283.03

Ending Balance (12/31/19) $ 149,930.79 s

7 WHO MAKES THE DECISIONS?

2019 TakPAC Officers and Board of Advisors* A Board of Advisors oversees the TakPAC program and is comprised of employees who represent a broad spectrum of Takeda’s U.S. business. OFFICERS CHAIR VICE CHAIR TREASURER ASST. TREASURER

RICHARD LAURA MIKE PATRICK ASCROFT CLINE HENNING BUTLER SVP, Managed VP, Therapeutic VP, U.S. BU Head, Markets U.S. Area Policy and Controller and U.S. Tax Business Unit Patient Advocacy, Finance U.S. Business Operations Unit ADVISORS Laurene Giagnorio Steve Schaefer SVP, Human Resources & SVP, Neuroscience Business Unit, Administration, U.S. BU U.S. Business Unit

Eric Hahn Dobson Schofield Head, Operating Unit (Biologics),Global Head Ethics and Compliance, Manufacturing and Supply U.S. Business Unit

Liz Lewis David Weitz Head of Global Oncology Patient Value, Head, Takeda California (TCAL) & Policy and Access, Oncology Business Unit Global Research Externalization, TCAL/R&D

Political party How TakPAC Decides Who to Support affiliation or positions on non-business policy issues TakPAC invests employee donations in candidates based on their: are not criteria for candidate support. • Support for innovation and positions on key issues affectingTakeda and our patients; TakPAC members may • Representation in districts/states where Takeda facilities or employees recommend candidates for are located; support based on these • Leadership position or membership on key committees dealing with criteria by contacting issues important to Takeda; [email protected]. • Character, integrity and leadership abilities; and • Financial need and nature of the opposition.

*Titles and membership reflective of 2019 roles.

8 2019 POLITICAL CONTRIBUTIONS

TakPAC Contributions to Federal Candidates & Political Committees

Candidates Party District Amount Alabama Sen. Doug Jones D $1,000 TakPAC California Contribution Limits Rep. D 6 $1,000 Rep. Kevin McCarthy R 23 $1,500 $5,000 per primary and Rep. Scott Peters D 52 $2,500 general election to a federal Rep. D 36 $2,500 candidate’s campaign committee. Colorado Sen. Cory Gardner R $1,000 per calendar Delaware $15,000 year to each national party Rep. D 1 $1,000 committee, such as the Sen. Tom Carper D $1,000 Democratic and Republican Sen. Chris Coons D $1,000 national, senatorial and congressional campaign Georgia committees. Rep. R 1 $1,000 Rep. Doug Collins R 9 $1,000 $5,000 per year to a federal Rep. Drew Ferguson R 3 $1,500 incumbent’s leadership PAC. Hawaii Leadership PACs may be Sen. Mazie Hirono D $1,000 sponsored by Members of Illinois Congress to support other candidates from their political Rep. D 17 $1,000 party in order to position them- Sen. Tammy Duckworth D $1,000 selves for future leadership Rep. D 8 $1,000 spots or committee chairman- Rep. Darin LaHood R 18 $2,500 ships. These are separate from a Rep. D 10 $2,000 member’s campaign committee. Indiana Rep. R 8 $1,000 $5,000 per year to a state or local party committee. Kentucky Contribution limits for state and Rep. R 2 $1,000 local candidates vary by state Sen. Mitch McConnell R $2,500 laws. Louisiana Sen. Bill Cassidy R $1,000 Maine Sen. Susan Collins R $1,000 Maryland Rep. D 5 $1,500 Massachusetts Rep. D 5 $5,000

9 2019 POLITICAL CONTRIBUTIONS

Candidates Party District Amount Rep. R 6 $1,500 “As someone who is DFL Caucus D $1,000 politically active, I have Missouri concerns about the nega- Sen. Roy Blunt R $1,000 tive way many politicians Rep. R 7 $1,500 treat our industry. I joined New York TakPAC to help fight for medical innovation, give a Rep. R 23 $1,000 voice to our patients, and North Carolina to support our industry Rep. Patrick McHenry R 10 $2,500 by improving law makers’ Sen. Thom Tillis R $2,500 understanding of what it is Ohio we really do.” Rep. R 2 $2,500 Oregon — Julie Orlando-Gibson, Rep. Greg Walden R 2 $2,500 Senior Sales Pennsylvania Representative NSBU Rep. D 6 $2,000 Rep. Mike Kelly R 16 $1,000 Tennessee Rep. Phil Roe R 1 $1,000 Washington Sen. Patty Murray D $2,500 Wyoming Rep. R 1 $1,000 Total $61,000

Political Federal Political Committees Affiliation Amount Moderate Democrats PAC D $5,000 New Democrat Coalition PAC D $5,000 Republican Mainstreet Partnership PAC R $5,000 Total $15,000

Political Federal Political Committees Affiliation Amount Massachusetts Democratic State Committee - D $5,000 Federal Account* Total $5,000

*State Level Contribution

10 PUBLIC POLICIES IMPORTANT TO TAKEDA

Takeda’s U.S. Public Affairs staff works to educate state and federal elected officials about issues affecting our products and therapeutic areas. PublicAffairs also advocates for policies that reflect our patient-centric approach, and to be the voice for patients in public policy discussions on Capitol Hill and in state capitals across the country. It is important that elected leaders know how their decisions and policies will impact the health of patients in their district or state.

The U.S. Public Affairs team is committed to providing information to all employees about the public policy issues that impact our company. We believe it is important for everyone at Takeda to understand the impact, positive and negative, that public policy decisions have on our company and the patients we serve.

KEY ISSUES AT STAKE FOR TAKEDA

Healthcare Medicare Patient Issues Drug Pricing/ Coverage Reform Access/Step Therapy Transparency

EMPLOYEES ENGAGED IN TakPAC CREATE ENVIRONMENT OF INNOVATION

TOOLS Environment FOR of SUCCESS Innovation

11 Takeda Political Action Committee DID YOU KNOW?

orporations may not ontribute diretly to the ampains for federal and many state andidates ederal and state laws howeer allow employees to oin toether throuh a and make politial ontributions to protet the future of our ompany

ADVOCACY Tak is non-partisan t does not make ontributions to andidates based upon their politial affiliation Tak proides finanial support to federal and state andidates

STEWARDSHIP Takeda pays nearly all of the s administratie osts

TRADITIONAL PAC Tak is T t is a leal and ethial traditional and omplies with all soliitation and ontribution limits

“Creating and maintaining a political enironment that allows us to put patients irst and that continues to oster an eni- ronment ocused on innoation or patients reuires good relationships with our lawmakers.”

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12 or more information about Tak isit www.TakedaPAC.com or ontat TakPACtakeda.com

The purpose o the Takeda Political Action Committee is to proide monetary contributions and other support to candidates or ederal, state, and local oices. Support o TakPAC is completely oluntary, the contribution guidelines set orth on www.takedapac.com are only suggestions, and eligible employees are ree to contribute more or less than the guidelines, or nothing at all. Takeda will neither aor nor disadantage eligible employees because o the amount o contributions or decisions not to contribute, and eligible employees may reuse to contribute without reprisal. Eligible employees should understand that i payroll deductions will be made in accordance with the companys payroll system and will continue until the eligible employee notiies the PAC Treasurer in writing that the authoriation is reoked, ii TakPAC contributions are or political purposes and there- ore are not deductible or ederal income ta purposes, and iii ederal law reuires TakPAC to report the name, mailing address, occupation, and name o employer o indiiduals whose contributions eceed 200 in a calendar year to the ederal Election Commission. Eligible employees under- stand that they must certiy they are either a United States citien or a oreign national lawully admitted to the United States or permanent residence as deined by Section 101a20 o the Immigration and ationality Act U.S.C. Section 1101 120.

Takeda Political Action Committee

2019 ANNUAL REPORT

95 Hayden Ave Lexington, MA 02421 [email protected] www.TakedaPAC.com