Daiichi Sankyo : Top Management Presentation

FY2021 Q1

Financial Results Presentation

DAIICHI SANKYO CO., LTD.

Hiroyuki Okuzawa

Director, Executive Officer, CFO

July 30, 2021

Forward-Looking Statements

Management strategies and plans, financial forecasts, future projections and policies, and R&D information that Daiichi Sankyo discloses in this material are all classified as Daiichi Sankyo's future prospects. These forward looking statements were determined by Daiichi Sankyo based on information obtained as of today with certain assumptions, premises and future forecasts, and thus, there are various inherent risks as well as uncertainties involved. As such, please note that actual results of Daiichi Sankyo may diverge materially from Daiichi Sankyo's outlook or the content of this material. Furthermore, there is no assurance that any forward-looking statements in this material will be realized. Regardless of the actual results or facts, Daiichi Sankyo is not obliged and does not have in its policy the duty to update the content of this material from the date of this material onward.

Some of the compounds under discussion are investigational agents and are not approved by the FDA or any other regulatory agency worldwide as a treatment for indications under investigation. Efficacy and safety have not been established in areas under investigation. There are no guarantee that these compounds will become commercially available in indications under investigation.

Daiichi Sankyo takes reasonable care to ensure the accuracy of the content of this material, but shall not be obliged to guarantee the absolute accuracy, appropriateness, completeness and feasibility, etc. of the information described in this material. Furthermore, any information regarding companies, organizations or any other matters outside the Daiichi Sankyo Group that is described within this material has been compiled or cited using publicly available information or other information, and Daiichi Sankyo has not performed in-house inspection of the accuracy, appropriateness, completeness and feasibility, etc. of such information, and does not guarantee the accuracy thereof.

The information described in this material may be changed hereafter without notice. Accordingly, this material or the information described herein should be used at your own judgment, together with any other information you may otherwise obtain.

This material does not constitute a solicitation of application to acquire or an offer to sell any security in the United States, Japan or elsewhere. This material disclosed here is for reference purposes only. Final investment decisions should be made at your own discretion.

Daiichi Sankyo assumes no responsibility for any damages resulting from the use of this material or its content, including without limitation damages related to the use of erroneous information.

2

Agenda

1. FY2021 Q1 Financial Results
2. Business Update
3. R&D Update
4. Appendix

3

Overview of FY2021 Q1 Results

						(Bn JPY)
			FY2020 Q1	FY2021 Q1		YoY
			Results	Results
	Revenue		236.9	264.1	+11.4%	27.1
	Cost of sales		82.2	85.2		2.9
	SG&A expenses		71.8	81.2		9.4
	R&D expenses		48.9	54.0		5.2
	Core operating profit	34.1	43.7	+28.2%	9.6
	Other revenue		0.1	2.1		2.0
	Other expenses		0.0	0.0		-0.0
	Operating profit		34.1	45.8	+34.1%	11.6
	Profit before tax		41.4	47.1		5.7
	Profit attributable to owners	31.9	35.2	+10.6%	3.4
	of the Company
	Currency	USD/JPY	107.62	109.49		+1.87
	Rate	EUR/JPY	118.47	131.95		+13.48

As an indicator of ordinary profitability, "core operating profit" which excludes temporary gains and losses (other revenue and other expenses) from operating income is disclosed.
Gains and losses related to: sale of fixed assets, restructuring (excluding the sales of pipeline and launched products), impairment, loss compensation, reconciliation, and other non-temporary
and material gains and losses are included in the "temporary gains and losses".	4
Temporary gains and losses are excluded from results and forecast for cost of sales, SG&A expenses and R&D expenses shown in the list above.

Revenue
	Increased by 27.1 Bn JPY (Increased by 20.5 Bn JPY excl. forex impact)
						Positive Factors		(Bn JPY)
FY2020 Results							Negative Factors
236.9					Japan Business Unit
Japan Business						+3.1	Memary	-10.7
0.0	0.8				Lixiana
(incl. Innovative Pharmaceuticals,				Tarlige	+2.8
Generic, Vaccines, OTC)						Enhertu	+2.0
Oncology Business*1		2.7	0.0
			Daiichi Sankyo Espha	+2.5	Vaccines business	-1.5
American Regent		11.9		0.0		Ezetimibe AG, Memantine AG etc.	Rotarix
			Daiichi Sankyo Healthcare	+1.1
EU Specialty Business			1.7		0	Roxionin
			Oncology Business*1 Unit
ASCA						+5.6		-2.2
		1.7	0.0	Enhertu	Olmesartan
(Asia, South and Central America)
Enhertu, Dato-DXd*2			1.8		0.	American Regent Unit
Upfront Payment &				Injectafer	+5.2
Regulatory Milestone			6.6		GE injectables	+5.1
Forex Impact*3
			EU Specialty Business Unit
FY2021 Results	264.1				+4.6	long-listed products	-3.2
			Lixiana
								Gain on sales of transferring
	Positive Factors	Negative Factors		Enhertu, Dato-DXd*2 Upfront Payment & Regulatory Milestone

*1	Revenue for Daiichi Sankyo, Inc. and Daiichi Sankyo Europe's oncology products	Dato-DXd upfront payment	+1.5
*2	Dato-DXd: Datopotamab deruxtecan (DS-1062)		5
*3	Forex impact USD: +0.9, EUR : +3.5, ASCA: +2.2