Daiichi Sankyo : Consolidated Financial Results for the First Three Months of the Year Ending March 31,2022

July 30, 2021

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

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. Junichi Onuma, Vice President of Corporate Communications Department

Telephone: [phone]

Scheduled date of Quarterly Report filing: August 5, 2021

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, 2022 (from April 1, 2021 to June 30, 2021)

(1) Consolidated Financial Results

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

	Revenue		Operating profit		Profit before tax		Profit for the period
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
Three months	264,069	11.4	45,769	34.1	47,062	13.7	35,220	10.7
ended June 30,
2021
Three months
ended June 30,	236,947	-4.9	34,122	-40.1	41,378	-27.5	31,823	-26.5
2020

	Profit attributable to	Total comprehensive	Basic	Diluted
	owners of the Company	income		earnings per share	earnings per share
	Millions of yen	%	Millions of yen	%	Yen	Yen
Three months	35,220	10.6	33,916	4.3	18.38	18.36
ended June 30,
2021
Three months
ended June 30,	31,857	-26.5	32,528	17.4	16.38	16.36
2020

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

				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,	2,062,470	1,280,098	1,280,098	62.1	667.96
2021
As of March 31,	2,085,178	1,272,053	1,272,053	61.0	663.85
2021

2. Dividend

		Annual dividend per share
	First quarter	Second quarter	Third quarter	Fiscal year-end	Total
	Yen	Yen	Yen	Yen	Yen
Year ended	-	40.50	-	13.50	-
March 31, 2021
Year ending	-
March 31, 2022
Year ending
March 31, 2022		13.50	-	13.50	27.00
(Forecast)

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

Note: Effective Thursday, October 1, 2020, Daiichi Sankyo implemented a three-for-one share split of its ordinary shares. The dividend for the first six months of the fiscal year ended March 31, 2021 presents the amount prior to the share split. The annual dividend per share for the fiscal year ended March 31, 2021 is not presented 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. Qualitative Information about Consolidated Results for the First Three Months (4) Information about Return to Shareholders" on page 8 of the attached material.

3. Forecast of Consolidated Financial Results for Year Ending March 31, 2022

(Percentages indicate changes from the previous fiscal year)

	Revenue		Core operating	Operating profit	Profit before tax	Profit for the year
		profit
	Millions	%	Millions	%	Millions	%	Millions	%	Millions	%
	of yen	of yen	of yen	of yen	of yen
Full year	990,000	2.9	70,000	-11.2	70,000	9.7	70,000	-5.6	50,000	-34.1

	Profit attributable	Basic
	to owners of the	earnings per
	Company	share
	Millions	%	Yen
	of yen
Full year	50,000	-34.2	26.09

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

Note: Regarding the forecast of consolidated financial results for the fiscal year ending March 31, 2022, 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.

*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, 2021	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 June 30, 2021	30,606,239 shares
		As of March 31, 2021	210,868,203 shares
3)	Average number of shares during the period (cumulative from the beginning of the fiscal year)
		Three months ended June 30, 2021	1,916,333,127 shares
		Three months ended June 30, 2020	1,944,660,766 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, 2020.

• 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]...............................................................................................................	2
(2)	Analysis of Financial Position as of June 30, 2021..........................................................................................	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.........................................................	8
(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 Significant Subsidiaries during the Period...................................................................................	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]

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

	Three months ended	Three months ended	YoY change
	June 30, 2020	June 30, 2021
Revenue	236,947	264,069	27,121
11.4%
Cost of sales*	82,211	85,152	2,941
3.6%
Selling, general and administrative	71,793	81,210	9,417
expenses*	13.1%
Research and development expenses*	48,882	54,037	5,154
10.5%
Core operating profit*	34,061	43,669	9,607
28.2%
Other revenue*	62	2,100	2,038
-
Other expenses*	1	0	-1
-83.3%
Operating profit	34,122	45,769	11,647
34.1%
Profit before tax	41,378	47,062	5,684
13.7%
Profit attributable to owners of the	31,857	35,220	3,362
Company	10.6%
Total comprehensive income	32,528	33,916	1,388
4.3%

• Daiichi Sankyo discloses core operating profit, which excludes temporary gains and losses (other revenue and other expenses) from operating profit, as an indicator of ordinary profitability. Temporary gains/losses 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 gains/losses. 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, 2020	June 30, 2021
USD/Yen	107.62	109.49
EUR/Yen	118.47	131.95

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