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

January 31, 2022

Consolidated Financial Results for the First Nine 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: February 4, 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 Nine Months of the Year Ending March 31, 2022 (from April 1, 2021 to December 31, 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	%
Nine months
ended	810,967	9.8	123,772	38.3	125,886	26.4	94,318	24.6
December 31,
2021
Nine months
ended	738,791	(2.4)	89,463	(42.5)	99,568	(37.8)	75,678	(43.6)
December 31,
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
	Nine months
	ended	94,318	24.4	110,638	49.2	49.21	49.16
	December 31,
	2021
	Nine months
	ended	75,806	(43.5)	74,149	(41.0)	38.99	38.94
	December 31,
	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 December	2,163,472	1,331,220	1,331,220	61.5	694.53
31, 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 March	-	40.50	-	13.50	-
31, 2021
Year ending March	-	13.50	-
31, 2022
Year ending March
31, 2022				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. For further details, please refer to "1. Qualitative Information about Consolidated Results for the First Nine Months (4) Information about Return to Shareholders" on page 10 of the attached material.

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

(Percentages indicate changes from the same period in 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	1,030,000		7.0	90,000		14.1	92,000	44.2.	92,000	24.1	64,000	(15.6)

	Profit attributable to	Basic
	owners of the
	earnings per share
	Company
	Millions of	%	Yen
	yen
Full year	64,000	(15.7)	33.39

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 temporary income and expenses from operating profit, as an indicator of ordinary profitability. For the definition of core operating profit, please refer to "1. Qualitative Information about Consolidated Results for the First Nine 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
	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 December 31, 2021	1,947,034,029shares
			As of March 31, 2021	2,127,034,029 shares
	2)	Number of treasury shares at the end of the period
			As of December 31, 2021	30,309,866 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)
			Nine months ended December 31, 2021	1,916,549,230 shares
			Nine months ended December 31, 2020	1,944,131,938 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.

• 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 Nine Months (3) Information about Forecasts of Consolidated Financial Results and Other Forward-Looking Statements" on page 10 for matters related to the above forecasts.

Attached Material

Index

1. Qualitative Information about Consolidated Results for the First Nine Months....................................................	2
(1)	Information about Operating Results ...............................................................................................................	2
	1)	Overview ....................................................................................................................................................	2
		[Consolidated Financial Results]...............................................................................................................	2
		[Revenue by Business Unit] .......................................................................................................................	4
	2)	Status of R&D ............................................................................................................................................	5
	3) Efforts to Address the Novel Coronavirus Infection...................................................................................	8
(2)	Analysis of Financial Position as of December 31, 2021...............................................................................	10
(3)	Information about Forecasts of Consolidated Financial Results and Other Forward-Looking Statements....	10
(4)	Information about Return to Shareholders .....................................................................................................	10
2. Condensed Interim Consolidated Financial Statements with Primary Notes........................................................	11
(1)	Condensed Interim Consolidated Statement of Financial Position ................................................................	11
(2)	Condensed Interim Consolidated Statement of Profit or Loss and Condensed Interim Consolidated
	Statement of Comprehensive Income.............................................................................................................	13
	Condensed Interim Consolidated Statement of Profit or Loss .......................................................................	13
	Condensed Interim Consolidated Statement of Comprehensive Income .......................................................	14
(3)	Condensed Interim Consolidated Statement of Changes in Equity................................................................	15
(4)	Condensed Interim Consolidated Statement of Cash Flows...........................................................................	17
(5)	Notes to Condensed Interim Consolidated Financial Statements...................................................................	19
	Going Concern Assumption ...........................................................................................................................	19
	Changes in Significant Subsidiaries during the Period...................................................................................	19

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1. Qualitative Information about Consolidated Results for the First Nine 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.)

	Nine months ended	Nine months ended	YoY change
	December 31, 2020	December 31, 2021
Revenue	738,791	810,967	72,175
9.8%
Cost of sales*	256,414	263,208	6,794
2.6%
Selling, general and administrative	229,265	255,679	26,413
expenses*	11.5%
Research and development expenses*	163,749	169,083	5,334
3.3%
Core operating profit*	89,362	122,995	33,633
37.6%
Temporary income*	114	2,120	2,006
-
Temporary expenses*	13	1,343	1,330
-
Operating profit	89,463	123,772	34,309
38.3%
Profit before tax	99,568	125,886	26,318
26.4%
Profit attributable to owners of the	75,806	94,318	18,512
Company	24.4%
Total comprehensive income	74,149	110,638	36,489
49.2%

• Daiichi Sankyo 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)
	Nine months ended	Nine months ended
	December 31,	December 31,
	2020	2021
USD/Yen	106.11	111.10
EUR/Yen	122.37	130.62

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