Daiichi Sankyo : Consolidated Financial Results for Year Ended March 31, 2022

April 27, 2022

Consolidated Financial Results for Year Ended March 31, 2022 (Fiscal 2021)

Listed company name: Daiichi Sankyo Company, Limited

Listed exchange: First Section of the Tokyo Stock Exchange Stock code number: 4568

URL:https://www.daiichisankyo.com

Representative: Dr. Sunao Manabe, Representative Director, President and CEO. Contact: Mr. Kentaro Asakura, Vice President of Corporate Communications Department Telephone: [phone]

Scheduled date of Ordinary General Meeting of Shareholders: June 27, 2022 Scheduled date of dividend payments: From June 28, 2022

Scheduled date of Annual Securities Report filing: June 27, 2022

Preparing supplementary material (Reference Data) on financial results: Yes Holding information meeting: Yes (for institutional investors, analysts and the press)

(All amounts have been rounded down to the nearest million yen.)

1. Consolidated Financial Results for Year Ended March 31, 2022

(1) Consolidated Financial Results

(Percentages indicate changes from the previous fiscal year.)

Revenue	Operating profit	Profit before tax	Profit for the year
Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
Year ended March 31, 2022 Year ended March 31, 2021	1,044,892 962,516	8.6 (2.0)	73,025 63,795	14.5 (54.0)	73,516 74,124	(0.8) (47.5)	66,972 75,830	(11.7) (41.2)

Profit attributable to owners of the Company	Total comprehensive income	Basic earnings per share	Diluted earnings per share
Millions of yen	%	Millions of yen	%	Yen	Yen
Year ended March 31, 2022 Year ended March 31, 2021	66,972 75,958	(11.8) (41.2)	130,292 114,982	13.3 13.2	34.94 39.17	34.91 39.11

Return on equity attributable to owners of the Company	Ratio of profit before tax to total assets	Ratio of operating profit to revenue
%	%	%
Year ended March 31, 2022 Year ended March 31, 2021	5.1 5.9	3.4 3.5	7.0 6.6

Reference: Share of profit or loss of investments accounted for using the equity method:

Year ended March 31, 2022: 129 million yen

Year ended March 31, 2021: 168 million yen

Note: Effective Thursday, October 1, 2020, Daiichi Sankyo Company, Limited (hereinafter, "Daiichi Sankyo" or "the Company") implemented a three-for-one share split of its ordinary shares. "Basic earnings per share" and "Diluted earnings per share" are calculated as if the share split had taken place at the beginning of the year ended March 31, 2021.

(2) Consolidated Financial Position

Total assets	Total equity	Equity attributable to owners of the Company	Ratio of equity attributable to owners of the Company to total assets	Equity per share attributable to owners of the Company
Millions of yen	Millions of yen	Millions of yen	%	Yen
As of March 31, 2022 As of March 31, 2021	2,221,402 2,085,178	1,350,872 1,272,053	1,350,872 1,272,053	60.8 61.0	704.76 663.85

Note: Effective Thursday, October 1, 2020, Daiichi Sankyo implemented a three-for-one share split of its ordinary shares. "Equity per share attributable to owners of the Company" is calculated as if the share split had taken place at the beginning of the year ended March 31, 2021.

(3) Consolidated Cash Flows

Net cash flows from operating activities	Net cash flows from investing activities	Net cash flows from financing activities	Cash and cash equivalents at the end of year
Millions of yen	Millions of yen	Millions of yen	Millions of yen
Year ended March 31, 2022 Year ended March 31, 2021	139,226 192,207	212,339 (39,246)	(86,231) (202,433)	662,477 380,547

2. Dividend

Annual dividend per share	Total dividend (Total)	Dividend payout ratio (Consolidated)	Ratio of dividend to equity attributable to owners of the Company (Consolidated)
First quarter	Second quarter	Third quarter	Fiscal year-end	Total
Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
Year ended March 31, 2021 Year ended March 31, 2022	- -	40.50 13.50	- -	13.50 13.50	- 27.00	52,132 51,752	68.9 77.3	4.0 3.9
Year ending March 31, 2023 (Forecast)	-	13.50	-	13.50	27.00	62.4

Note: Effective Thursday, October 1, 2020, Daiichi Sankyo implemented a three-for-one share split of its ordinary shares. The dividend for the end of the second quarter of the year ended March 31, 2021, presents the amount prior to the share split. The annual dividend per share for the year ended March 31, 2021 is not stated because the amounts cannot be simply combined due to the implementation of the share split. When calculated based on the assumption of no share split, the annual dividend per share is ¥81 for the year ended March 31, 2021. For further details, please refer to "1. Results of Operations (4) Basic Policy on Profit Distribution and Dividend for the Years

Ended March 31, 2022 and Ending March 31, 2023" on page 14.

3. Forecast of Consolidated Financial Results for Year Ending March 31, 2023

(Percentages indicate changes from the same period in the previous fiscal year.)

Revenue	Core operating profit	Operating profit	Profit before tax	Profit for the year	Profit attributable to owners of the Company	Basic earnings per share
Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Million s of yen	%	Millions of yen	%	Yen
Full year	1,150,000	10.1	105,000	15.9	105,000	43.8	105,000	42.8	83,000	23.9	83,000	23.9	43.30

Note: Daiichi Sankyo Group is disclosing Core operating profit as an indicator of its recurring profitability, excluding one-time income and expenses from Operating profit. For the definition of Core operating profit, please refer to "1. Results of Operations (1) Operating Results for Year ended March 31, 2022 1) Overview" on page 2.

*Notes

• (1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in a change in scope of consolidation): No

• (2) Changes in accounting policies and changes in accounting estimates

  • 1) Changes in accounting policies required by IFRS: No

  • 2) Changes in accounting policies due to other reasons: No

  • 3) Changes in accounting estimates: No

• (3) Number of ordinary shares issued

  1) Number of shares issued at the end of the period (including treasury shares)

  As of March 31, 2022	1,947,034,029 shares
  As of March 31, 2021	2,127,034,029 shares

  2) Number of treasury shares at the end of the period

  As of March 31, 2022	30,247,523 shares
  As of March 31, 2021	210,868,203 shares

  3) Average number of shares during the period

Year ended March 31, 2022	1,916,602,512 shares
Year ended March 31, 2021	1,939,343,390 shares

Note: Effective Thursday, October 1, 2020, Daiichi Sankyo implemented a three-for-one share split of its ordinary shares. "Number of ordinary shares issued" is calculated as if the share split had taken place at the beginning of the year ended March 31, 2021.

(Reference)

Non-Consolidated Financial Results for Year Ended March 31, 2022

(1) Non-Consolidated Financial Results

(Percentages indicate changes from the previous fiscal year.)

Net sales	Operating income	Ordinary income	Net income
Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
Year ended March 31, 2022 Year ended March 31, 2021	754,007 701,000	7.6 5.4	10,157 39,652	(74.4) 146.5	47,688 84,543	(43.6) 70.0	39,273 81,002	(51.5) (27.3)

Basic net income per share	Diluted net income per share
Yen	Yen
As of March 31, 2022 Year ended March 31, 2021	20.49 41.77	20.47 41.71

Note: Effective Thursday, October 1, 2020, Daiichi Sankyo implemented a three-for-one share split of its ordinary shares. "Basic net income per share" and "Diluted net income per share" are calculated as if the share split had taken place at the beginning of the year ended March 31, 2021.

(2) Non-Consolidated Financial Position

Total assets	Net assets	Equity ratio	Net assets per share
Millions of yen	Millions of yen	%	Yen
As of March 31, 2022 As of March 31, 2021	1,638,011 1,589,239	930,266 947,766	56.7 59.6	484.90 494.07

Reference: Equity:

As of March 31, 2022:

As of March 31, 2021:

929,444 million yen 946,727 million yen

Note: Effective Thursday, October 1, 2020, Daiichi Sankyo implemented a three-for-one share split of its ordinary shares. "Net assets per share" is calculated as if the share split had taken place at the beginning of the year ended March 31, 2021.

* This financial results report is not subject to audit procedures by Certified Public Accountants or audit firm

*Disclaimer regarding forward-looking information including appropriate use of forecast financial results

The forecast information included in these materials is based on information currently available and certain assumptions that the Company regards as reasonable. Actual performance and results may differ from those forecast due to various factors.

Please see "1. Results of Operations (3) Future Outlook" on page 13 for matters related to the above forecasts.

Attached Material

Index

1. Results of Operations ............................................................................................................................................. 2

(1) Operating Results for Year ended March 31, 2022 ........................................................................................... 2

(2) Analysis of Financial Position as of March 31, 2022 ..................................................................................... 11

(3) Future Outlook ............................................................................................................................................... 13

(4) Basic Policy on Profit Distribution and Dividend for the Years Ended March 2022 and Ending March

2023 ................................................................................................................................................................ 14

(5) Prospective Challenges ................................................................................................................................... 15

(6) Strategic Targets and Forward-Looking Statements ....................................................................................... 19

2. Matters Relating to Corporate Governance .......................................................................................................... 20

(1) Systems and Policies on Corporate Governance ............................................................................................ 20

(2) Basic Policy regarding Moves toward Large-Scale Acquisition of Company's Stock ................................... 27

3. Rationale for the Selection of Accounting Standards ........................................................................................... 28

4. Consolidated Financial Statements with Primary Notes ....................................................................................... 29

(1) Consolidated Statement of Financial Position ................................................................................................ 29

(2) Consolidated Statement of Profit or Loss and Consolidated Statement of Comprehensive Income .............. 31

(3) Consolidated Statement of Changes in Equity ............................................................................................... 33

(4) Consolidated Statement of Cash Flows .......................................................................................................... 35

(5) Notes to Consolidated Financial Statements .................................................................................................. 37

Going Concern Assumption ........................................................................................................................... 37

Operating Segment Information ..................................................................................................................... 37

Earnings per Share .......................................................................................................................................... 39

Subsequent Events .......................................................................................................................................... 39

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