Daiichi Sankyo : Consolidated Financial Results for the First Three Months of the Year Ending March 31,2023

July 29, 2022

Consolidated Financial Results for the First Three Months of the Year Ending

March 31, 2023 (Fiscal 2022)

Listed company name: Daiichi Sankyo Company, Limited

Listed exchange: 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 Quarterly Report filing: August 3, 2022

Scheduled date of dividend payments: -

Preparing supplementary material (Reference Data) on quarterly financial results: Yes

Holding quarterly 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 the First Three Months of the Year Ending March 31, 2023 (from April 1, 2022 to June 30, 2022)

(1) Consolidated Financial Results

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

	Revenue		Core Operating profit	Operating profit	Profit before tax
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
Three months	280,317	6.2	34,368	(21.3)	34,382	(24.9)	29,415	(37.5)
ended June 30,
2022
Three months
ended June 30,	264,069	11.4	43,669	28.2	45,769	34.1	47,062	13.7
2021

	Profit for the period	Profit attributable to	Total comprehensive	Basic	Diluted
	earnings per	earnings per
	owners of the Company	income
				share	share
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen	Yen
Three months
ended June 30,	18,851	(46.5)	18,851	(46.5)	75,113	121.5	9.84	9.83
2022
Three months	35,220	10.7	35,220	10.6	33,916	4.3	18.38	18.36
ended June 30,
2021
Note: Daiichi Sankyo discloses core operating profit, which excludes non-recurring gains and losses from operating profit, as an

indicator of underlying profitability. For the definition of core operating profit, please refer to "1. Qualitative Information about Consolidated Results for the First Three Months (1) Information about Operating Results" on page 2 of the attached material.

(2) Consolidated Financial Position

				Ratio of equity	Equity per share
			Equity attributable	attributable to
			attributable to
	Total assets	Total equity	to owners of the	owners of the
	owners of the
			Company	Company to total
			Company
				assets
	Millions of yen	Millions of yen	Millions of yen	%	Yen
As of June 30,	2,294,549	1,400,252	1,400,252	61.0	730.50
2022
As of March 31,	2,221,402	1,350,872	1,350,872	60.8	704.76
2022

2. Dividend

		Annual dividend per share
	First quarter	Second quarter	Third quarter	Fiscal year-end	Total
	Yen	Yen	Yen	Yen	Yen
Year ended	-	13.50	-	13.50	27.00
March 31, 2022
Year ending	-
March 31, 2023
Year ending
March 31, 2023		13.50	-	13.50	27.00
(Forecast)

Note: Revision of the forecast from most recently announced figures: No

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

(Percentages indicate changes from the previous fiscal year)

	Revenue		Core operating	Operating profit	Profit before tax	Profit for the year
		profit
	Millions of	%	Millions of	%	Millions of	%	Millions of	%	Millions of	%
	yen	yen	yen	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

	Profit attributable	Basic
	to owners of the	earnings
	Company		per share
	Millions of	%	Yen
	yen
Full year	83,000	23.9	43.30

Note: Revision of the forecast from most recently announced figures: No

*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
3. 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
4. Number of ordinary shares issued
5. 1. Number of shares issued at the end of the period (including treasury shares)

		As of June 30, 2022	1,947,034,029 shares
		As of March 31, 2022	1,947,034,029 shares
2)	Number of treasury shares at the end of the period
		As of June 30, 2022	30,181,593 shares
		As of March 31, 2022	30,247,523 shares
3)	Average number of shares during the period (cumulative from the beginning of the fiscal year)
		Three months ended June 30, 2022	1,916,818,964 shares
		Three months ended June 30, 2021	1,916,333,127 shares

• This quarterly financial results summary is not subject to quarterly review procedures by Certified Public Accountants or an 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 Daiichi Sankyo regards as reasonable. Actual performance and results may differ from those forecast due to various factors.

Please see "1. Qualitative Information about Consolidated Results for the First Three Months (3) Information about Forecasts of Consolidated Financial Results and Other Forward-Looking Statements" on page 8 for matters related to the above forecasts.

Attached Material

Index

1. Qualitative Information about Consolidated Results for the First Three Months ..................................................	2
(1)	Information about Operating Results ...............................................................................................................	2
	1)	Overview ....................................................................................................................................................	2
		[Consolidated Financial Results (Core Base)]...........................................................................................	2
		[Revenue by Business Unit] ......................................................................................................................	4
	2)	Status of R&D ............................................................................................................................................	5
	3) Efforts to Address the Novel Coronavirus Infection...................................................................................	6
(2)	Analysis of Financial Position as of June 30, 2022..........................................................................................	8
(3)	Information about Forecasts of Consolidated Financial Results and Other Forward-Looking Statements......	8
(4)	Information about Return to Shareholders .......................................................................................................	8
2. Condensed Interim Consolidated Financial Statements with Primary Notes.........................................................	9
(1)	Condensed Interim Consolidated Statement of Financial Position ..................................................................	9
(2)	Condensed Interim Consolidated Statement of Profit or Loss and Condensed Interim Consolidated
	Statement of Comprehensive Income.............................................................................................................	11
	Condensed Interim Consolidated Statement of Profit or Loss .......................................................................	11
	Condensed Interim Consolidated Statement of Comprehensive Income .......................................................	12
(3)	Condensed Interim Consolidated Statement of Changes in Equity................................................................	13
(4)	Condensed Interim Consolidated Statement of Cash Flows...........................................................................	15
(5)	Notes to Condensed Interim Consolidated Financial Statements...................................................................	17
	Going Concern Assumption ...........................................................................................................................	17
	Changes in Presentation .................................................................................................................................	17
	Condensed Interim Consolidated Statement of Profit or Loss .......................................................................	17

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1. Qualitative Information about Consolidated Results for the First Three Months

(1) Information about Operating Results

1) Overview

[Consolidated Financial Results (Core Base)]

(Millions of yen; all amounts have been rounded down to the nearest million yen.)

	Three months ended	Three months ended	YoY change
	June 30, 2021	June 30, 2022
Revenue	264,069	280,317	16,247
6.2%
Cost of sales*	85,152	74,692	-10,460
-12.3%
Selling, general and administrative	81,210	96,325	15,114
expenses*	18.6%
Research and development expenses*	54,037	74,930	20,893
38.7%
Core operating profit*	43,669	34,368	-9,300
-21.3%
Temporary income*	2,100	13	-2,087
-99.4%
Temporary expenses*	0	-	-0
-100.0%
Operating profit	45,769	34,382	-11,387
-24.9%
Profit before tax	47,062	29,415	-17,646
-37.5%
Profit attributable to owners of the	35,220	18,851	-16,368
Company	-46.5%
Total comprehensive income	33,916	75,113	41,196
121.5%

• The Daiichi Sankyo Group (hereinafter, "the Group") discloses core operating profit, which excludes temporary income and expenses from operating profit, as an indicator of ordinary profitability. Temporary income and expenses include gains/losses on sale of non-current assets, gains/losses associated with business restructuring (excluding gains/losses on sales of developed products and products on the market), impairment losses on property, plant and equipment, intangible assets, and goodwill, compensation for damages or settlement, and non-recurring and large gains/losses.
  This table shows the actual results of cost of sales, selling, general and administrative expenses, and research and development expenses, exclusive of temporary income and expenses. The adjustment table from operating profit to core operating profit is stated in the reference data.

		(Yen)
	Three months ended	Three months ended
	June 30, 2021	June 30, 2022
USD/Yen	109.49	129.57
EUR/Yen	131.95	138.10

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