Daiichi Sankyo : FY2023 Reference Dat

TSE:4568

Reference Data

(Consolidated Financial Results for Q4 FY2023)

April 25, 2024

Daiichi Sankyo Co., Ltd.

https://www.daiichisankyo.com

Contents

1.	Consolidated Statement of Profit or Loss	P1
2.	Sheet to adjust Operating Profit to Core Operating Profit	P2
3.	Revenue of Global Products	P3
4.	Revenue by Business Units and Products	P5
5.	Consolidated Statement of Financial Position	P8
6.	Consolidated Statement of Cash Flows	P10
7.	Number of Employees	P11
8.	Capital Expenditure, Depreciation and Amortization	P11
9.	Other Financial Indicators	P11
10.	Summary of Product Outlines	P12
11.	Quarterly Data	P13
12.	Historical Data	P19
13.	Major R&D Pipeline (Innovative pharmaceuticals)	P23

1. Consolidated Statement of Profit or Loss

JPY Bn

Revenue

Cost of sales*1

Gross Profit

SG&A expenses*1

DXd ADC profit share*2

Other SG&A expenses

R&D expenses*1

Core Operating Profit

Temporary income*3

Temporary expenses*3

Operating Profit

Financial income/expenses

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

Profit before tax

Income taxes

	FY2022				FY2023
	to revenue	Results		to revenue	Results	(vs. Forecast (%))	YoY	YoY (%)
	100.0%	1,278.5		100.0%	1,601.7	101.4%	323.2	+25.3%
	27.3%	349.1		25.9%	414.8	100.4%	65.7	+18.8%
	72.7%	929.4		74.1%	1,186.9	101.7%	257.5	+27.7%
	36.8%	470.1		39.2%	627.3	101.3%	157.2	+33.4%
	7.1%	90.8		10.6%	170.6	-	79.8	+87.8%
	29.7%	379.3		28.5%	456.8	-	77.5	+20.4%
	26.3%	336.7	22.7%	364.3	99.0%	27.6	+8.2%
	9.6%	122.6		12.2%	195.3	108.5%	72.7	+59.3%
		21.9			27.3		5.4
		23.9			10.9		-13.0
	9.4%	120.6		13.2%	211.6	105.8%	91.0	+75.5%
		6.3			25.5		19.2
		-0.0			0.2		0.2
	9.9%	126.9		14.8%	237.2	115.7%	110.4	+87.0%
		17.7			36.2		18.6

Forex impact: +66.8

(USD: +29.6, EUR: +29.0, ASCA: +8.2)

Forex impact: +12.6

(USD: +7.2, EUR: +4.6, ASCA: +0.8)

Forex impact: +26.2

(USD: +16.3, EUR: +7.6, ASCA: +2.3)

Forex impact: +17.4

(USD: +13.0, EUR: +4.0, ASCA: +0.4)

Forex impact: +10.6

(USD: -6.8, EUR: +12.7, ASCA: +4.7)

• Increase of interest income +13.6
• Improvement in investment securities valuation gains/losses +6.2

FY2024

to revenue	Forecast	YoY	YoY (%)
100.0%	1,750.0	148.3	+9.3%
22.6%	395.0	-19.8	-4.8%
77.4%	1,355.0	168.1	+14.2%
38.6%	675.0	47.7	+7.6%
11.1%	193.6	23.0	+13.5%
27.5%	481.4	24.6	+5.4%
26.9%	470.0	105.7	+29.0%
12.0%	210.0	14.7	+7.5%
	20.0	-7.3
	-	-10.9
13.1%	230.0	18.4	+8.7%

13.4% 235.0 -2.2 -0.9%

Profit for the year		8.5%	109.2		12.6%	201.0	114.9%	91.8	+84.1%
Profit attributable to owners of the Compan	y	8.5%	109.2		12.5%	200.7	114.7%	91.5	+83.8%
Tax rate		13.9%			15.3%
Overseas sales ratio		58.3%			62.5%
Currency Rate (Average)
USD/JPY		135.48			144.62
EUR/JPY		140.97			156.79

This report is not subject to audit procedures.

*1 Temporary income and expenses are excluded for cost of sales, SG&A expenses and R&D expenses

*2 DS pays alliance partners 50% of gross profit for the product sales in countries/regions where DS book revenue (excluding Japan) to share profit with the partners

*3 See page 2 for the definition of temporary income and expenses and the adjustment of operating profit and core operating profit

10.9%	190.0	-11.0	-5.5%
10.9%	190.0	-10.7	-5.3%

Currency Rate (Average)145.00 155.00

Annual impact of JPY 1 change

	Forecast
	USD		EUR
Revenue	JPY 4.3	Bn	JPY 2.3 Bn
Operating Profit	JPY -0.2	Bn	JPY 0.3 Bn

1

2. Sheet to adjust Operating Profit to Core Operating ProfitFY2022 Results

			Full base				Adjustment			Core base
	JPY Bn	gains and losses	gains and losses	gains and losses	gains and losses related to	Others
		related to sale of fixed	related to restructuring	related to impairment,	loss compensation,
				assets	reconciliation
	Revenue	1,278.5								1,278.5
		Cost of sales	363.5				-14.2			-0.3	349.1
		SG&A expenses	471.2				-0.0			-1.1	470.1
		R&D expenses	341.6				-4.8			-0.0	336.7
		Other income*	19.1	-12.8	-5.9					-0.4	-
		Other expenses*	0.7	-0.0	-0.7						-	＜Major Temporary income and Temporary expenses＞
	Core Operating Profit**									122.6	*1 Gains related to sale of fixed assets of Kyushu Branch Building etc.
		Temporary income		12.8 *1	5.9	*2	3.2	*3			21.9	*2 Gains related to sales of subsidiary of Daiichi Sankyo (China)
		Temporary expenses		0.0	0.7		22.3	*4		0.9	23.9	*3 Gains on reversal related to the closure of Plexxikon
	Operating Profit (full)	120.6								120.6	*4 Losses rerated to impairment of Intangible assets of
												Turalio, DS-5141, Penthorox

FY2023 Results

			Full base			Adjustment				Core base
	JPY Bn	gains and losses	gains and losses	gains and losses	gains and losses related to	Others
		related to sale of fixed	related to restructuring	related to impairment,	loss compensation,
				assets	reconciliation
	Revenue	1,601.7							1,601.7
		Cost of sales	415.3			-0.5		-0.1		414.8
		SG&A expenses	637.0		-0.4		-2.7	-6.5		627.3
		R&D expenses	365.2		-0.3			-0.5		364.3
		Other income*	27.5	-0.2			-27.1	-0.2		-
		Other expenses*	0.1	-0.1						-
	Core Operating Profit**								195.3	＜Major Temporary income and Temporary expenses＞
		Temporary income		0.2			27.1 *5			27.3	*5 Settlement	payment for Plexxikon
		Temporary expenses		0.1	0.7	0.5	2.7	6.9	*6	10.9	related to	patent dispute with Novartis (26.4)
	Operating Profit (full)	211.6							211.6	*6 Environmental expenditures related to former Yasugawa	plant (4.1)

• The Company discloses profit and loss for which the offsetting of income and expenses is not permitted as Other income and Other expenses in the consolidated statement of income on a full basis (IFRS standards). Profit and loss from the sale of assets, etc. are included in this Other income and Other expenses.
• As an indicator of ordinary profitability, "core operating profit" which excludes temporary income and 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 income and expenses".

2

3. Revenue of Global Products (1)			FY2022			FY2023						FY2024
JPY Bn				Results		Results	(vs. Forecast (%))	YoY	YoY (%)			Forecast	YoY	YoY (%)
Trastuzumab deruxtecan	anti-cancer agent			258.4		449.2	(102.9%)		190.8	+73.9%			585.4	136.2	+30.3%
(HER2-directed antibody drug conjugate)
	Product sales *Incl. Gross profit share in AstraZeneca territory			207.5		395.9	(103.1%)		188.4	+90.8%			508.4	112.4	+28.4%
		Enhertu (JPN)		11.7	23.9	(104.9%)		12.2	+104.1%		25.7	1.8	+7.5%
		Enhertu (US)		144.6	225.5	(99.7%)		81.0	+56.0%		266.6	41.1	+18.2%
		Enhertu (EU)		37.1	101.9	(107.8%)		64.8	+174.9%		152.1	50.2	+49.2%
		Enhertu (ASCA: Asia, South and Central America)	14.2	44.6	(110.8%)		30.4	+214.4%		64.0	19.4	+43.5%
		Brazil		9.7	23.5	-		13.8	+142.9%		29.9	6.4	+27.2%
		China (co-promotion revenue)	-	6.5	-		6.5	-		10.8	4.3	+65.2%
		Others		4.5	14.6	-		10.1	+223.0%		23.3	8.7	+60.0%
	Upfront payment		9.8	10.1	(100.0%)		0.3	+2.9%		10.2	0.1	0.0
	Regulatory milestone payment		26.7	12.4	(100.0%)		-14.3	-53.7%			9.4	-2.9	-23.7%
		US HER2+ Breast Cancer 3L	0.9	0.9	(100.0%)		0.0	+3.0%			0.9	0.0	0.0
		EU HER2+ Breast Cancer 3L	0.5	0.5	(100.0%)		0.0	+3.0%		0.5	0.0	0.0
		US HER2+ Gastric Cancer 2L/3L	0.8	0.8	(100.0%)		0.0	+3.0%		0.8	0.0	0.0
		US HER2+ Breast Cancer 2L	3.5	0.9	(100.0%)		-2.6	-74.3%		0.9	0.0	+1.0%
		EU HER2+ Breast Cancer 2L	2.7	0.7	(100.0%)		-2.0	-74.3%		0.7	0.0	+1.0%
		US HER2-low Breast Cancer (post chemo)	7.3	1.9	(100.0%)		-5.4	-74.3%		1.9	0.0	+1.0%
		EU HER2-low Breast Cancer (post chemo)	5.2	1.3	(100.0%)		-3.9	-74.3%		1.4	0.0	+1.0%
		EU HER2+ Gastric Cancer 2L	1.3	0.3	(100.0%)		-0.9	-74.3%		0.3	0.0	+1.0%
		US HER2 mutant NSCLC 2L		4.6	1.2	(100.0%)		-3.4	-74.3%		1.2	0.0	+1.0%
		EU HER2 mutant NSCLC 2L		-	3.8	(100.0%)		3.8	-	0.8	-3.0	-80.0%
	Quid related payment*		1.1	1.2			0.0		1.2	0.0
		(100.0%)		+3.0%	+1.0%
	Sales milestone payment		13.2	29.6	(102.2%)		16.5	+124.8%	56.2	26.6	+89.6%

*Payment which shall be paid by AstraZeneca to Daiichi Sankyo if both parties do not enter into potential licensing opportunity (Granting Daiichi Sankyo rights to develop or commercialize AstraZeneca's proprietary products, programs or technologies)

3

3. Revenue of Global Products (2)

JPY Bn

Datopotamab deruxtecan	anti-cancer agent
(TROP2-directed antibody drug conjugate)
Product sales *Incl. Gross profit share in AstraZeneca territory

Datopotamab deruxtecan (US)

Upfront payment

Regulatory milestone payment

US NSCLC 2L/3L

Patritumab deruxtecan	anti-cancer agent
(HER3-directed antibody drug conjugate)
	Product sales *Incl. Gross profit share in Merck territory
	Patritumab deruxtecan (US)
	Upfront payment
Ifinatamab deruxtecan	anti-cancer agent
(DS-7300)	(B7-H3-directed antibody drug conjugate)
	Upfront payment
Raludotatug deruxtecan	anti-cancer agent
(DS-6000)	(CDH6-directed antibody drug conjugate)
	Upfront payment
Edoxaban	anticoagulant
	Lixiana (JPN)
	Savaysa (US)

Lixiana (EU)

Edoxaban (ASCA* etc.)

*Asia, South and Central America

FY2022			FY2023							FY2024
Results		Results	(vs. Forecast (%))	YoY	YoY (%)				Forecast	YoY	YoY (%)
7.1		6.4	(100.0%)	-0.7	-9.8%				17.6	11.2	+175.8%
-		-	-	-	-				5.6	5.6	-
-	-	-	-	-			5.6	5.6	-
7.1	6.4	(100.0%)	-0.7	-9.8%			6.4	-	+0.0%
-	-	-	-	-			5.6	5.6	-
-	-	-	-	-			5.6	5.6	-
-		3.5	(100.0%)	3.5	-			23.1	19.6	+553.1%
-		-	-	-	-				4.2	4.2	-
-	-	-	-	-			4.2	4.2	-
-	3.5	(100.0%)	3.5	-			18.9	15.4	+434.2%
-		6.6	(100.0%)	6.6	-			14.7	8.1	+553.1%
-		6.6	(100.0%)	6.6	-				14.7	8.1	+434.2%
-		2.8	(100.0%)	2.8	-			6.2	3.4	+122.8%
-		2.8	(100.0%)	2.8	-				6.2	3.4	+122.8%
244.0		287.7	(102.1%)	43.8	+17.9%			293.6	5.9	+2.1%
105.1		115.6	(101.0%)	10.4	+9.9%				116.4	0.8	+0.7%
3.0	2.4	(81.1%)	-0.6	-19.5%		2.8	0.4	+16.6%
117.1	146.2	(102.8%)	29.1	+24.8%		149.5	3.3	+2.2%
18.7	23.5	(105.8%)	4.8	+25.7%		24.9	1.4	+6.0%

4

4. Revenue by Business Units and Products (1)

JPY Bn

Japan Business Unit

		Lixiana	anticoagulant
		Pralia	Treatment for osteoporosis/ inhibitor of the progression of bone
		erosion associated with rheumatoid arthritis
		Tarlige	pain treatment
		Vimpat	anti-epileptic agent
		Ranmark	treatment for bone complications caused by bone
		metastases from tumors
		Tenelia	type 2 diabetes mellitus treatment
		Enhertu	anti-cancer agent
		(HER2-directed antibody drug conjugate)
		Efient	antiplatelet agent
		Canalia	type 2 diabetes mellitus treatment
		Loxonin	anti-inflammatory analgesic
		Emgality	prophylaxis of migraine attacks
		Inavir	anti-influenza treatment
		Minnebro	antihypertensive agent
		Daiichi Sankyo Espha products
		Vaccines business
Daiichi Sankyo Healthcare Unit

FY2022			FY2023						FY2024
Results		Results	(vs. Forecast (%))	YoY	YoY (%)			Forecast	YoY	YoY (%)
457.9		518.9	(100.8%)	61.0	+13.3%			434.9	-84.0	-16.2%
105.1		115.6	(101.0%)	10.4	+9.9%			116.4	0.8	+0.7%
40.2	42.8	(101.3%)	2.6	+6.5%		39.3	-3.5	-8.3%
38.5	45.7	(100.9%)	7.2	+18.6%		53.4	7.7	+16.9%
21.9	25.7	(99.7%)	3.8	+17.3%		29.2	3.5	+13.5%
20.4	20.4	(98.2%)	-0.0	-0.0%		20.7	0.3	+1.6%
21.9	20.5	(99.5%)	-1.5	-6.8%		9.6	-10.9	-53.1%
11.7	23.9	(104.9%)	12.2	+104.1%		25.7	1.8	+7.5%
20.9	25.6	(101.9%)	4.7	+22.6%		16.2	-9.4	-36.7%
16.3	15.9	(99.7%)	-0.4	-2.4%		15.0	-0.9	-5.8%
18.5	15.5	(100.7%)	-3.0	-16.4%		12.7	-2.8	-17.9%
6.3	7.6	(103.2%)	1.3	+21.2%		8.8	1.2	+16.0%
0.9	15.9	(103.8%)	15.0	-		11.3	-4.6	-28.9%
6.9	8.3	(101.1%)	1.4	+20.4%		10.8	2.5	+30.3%
86.0	83.0	-	-3.1	-3.6%			not disclosed	-	-
13.4	27.7	-	14.3	+106.3%			not disclosed	-	-
70.3		76.0	(101.8%)	5.6	+8.0%			82.7	6.7	+8.9%

5

4. Revenue by Business Units and Products (2)			FY2022			FY2023
JPY Bn				Results		Results	(vs. Forecast (%))	YoY	YoY (%)
Oncology Business Unit				185.4		334.6	(102.1%)	149.2	+80.5%
	Enhertu	anti-cancer agent			181.6		327.4	(102.1%)	145.8	+80.3%
	(HER2-directed antibody drug conjugate)
		Enhertu (US)		144.6	225.5	(99.7%)	81.0	+56.0%
		Enhertu (EU)		37.1	101.9	(107.8%)	64.8	+174.9%
	Datopotamab deruxtecan (US)	anti-cancer agent		-		-	-	-	-
	(TROP2-directed antibody drug conjugate)
	Patritumab deruxtecan (US)	anti-cancer agent	-	-	-	-	-
	(HER3-directed antibody drug conjugate)
	TURALIO	anti-cancer agent	3.8	5.3	(100.0%)	1.5	+39.9%
American Regent Unit				187.4		203.4	(98.8%)	16.1	+8.6%
	Injectafer	treatment for iron deficiency anemia	54.0	50.1	(98.5%)	-3.9	-7.2%
	Venofer	treatment for iron deficiency anemia	51.3	60.9	(101.9%)	9.6	+18.7%
	GE injectables		71.6	81.0	(98.7%)	9.4	+13.2%
EU Specialty Business Unit				150.4		189.2	(103.0%)	38.8	+25.8%
	Lixiana	anticoagulant			117.1		146.2	(102.8%)	29.1	+24.8%
	Nilemdo/Nustendi	cholesterol-lowering agent	7.1	18.4	(101.8%)	11.4	+160.8%
	Olmesartan	antihypertensive agent	20.0	19.6	(104.4%)	-0.4	-2.1%
ASCA Business Unit				142.8		184.1	(104.7%)	41.3	+28.9%
	Daiichi Sankyo China				58.3		70.5	(107.0%)	12.2	+20.9%
	Daiichi Sankyo Korea		25.6	29.2	(96.9%)	3.7	+14.3%
	Daiichi Sankyo Brasil Farmacêutica	27.8	42.0	(106.0%)	14.2	+51.2%
	Daiichi Sankyo Taiwan		13.3	16.0	(103.9%)	2.7	+20.5%
	Daiichi Sankyo Thailand		2.9	3.5	(104.4%)	0.6	+20.4%
	Daiichi Sankyo Hong Kong		3.5	2.9	(106.1%)	-0.6	-17.6%

FY2024

	Forecast	YoY	YoY (%)
	442.6	108.0	+32.3%
	418.7	91.2	+27.9%
	266.6	41.1	+18.2%
	152.1	50.2	+49.2%
	5.6	5.6	-
	4.2	4.2	-
	5.8	0.5	+8.7%
	218.2	14.8	+7.3%
	49.7	-0.3	-0.7%
	58.0	-2.9	-4.7%
	95.7	14.7	+18.1%
	201.4	12.3	+6.5%
	149.5	3.3	+2.2%
	33.6	15.2	+82.4%

15.6 -4.0 -20.4%

	188.2	4.1	+2.2%
	61.2	-9.3	-13.1%
	30.0	0.8	+2.7%
	50.0	8.0	+19.1%
	16.4	0.4	+2.3%
	3.4	-0.1	-2.8%
	2.7	-0.2	-6.0%

6

4. Revenue by Business Units and Products (3)			FY2022				FY2023
[Reference] Revenue in Local Currency			Results			Results	(vs. Forecast (%))	YoY	YoY (%)
USD Mn
Oncology Business Unit				1,369			2,314	(101.4%)	945	+69.1%
	Enhertu	anti-cancer agent	1,341	2,264	(101.4%)	923	+68.9%
	(HER2-directed antibody drug conjugate)
		Enhertu (US)		1,067	1,560	(99.0%)	492	+46.1%
		Enhertu (EU)		274	704	(107.1%)	431	+157.6%
	Datopotamab deruxtecan (US)	anti-cancer agent		-		-	-	-	-
	(TROP2-directed antibody drug conjugate)
	Patritumab deruxtecan (US)	anti-cancer agent	-	-	-	-	-
	(HER3-directed antibody drug conjugate)
	TURALIO	anti-cancer agent	28	37	(99.4%)	9	+31.1%
USD Mn
American Regent Unit				1,383			1,407	(98.2%)	24	+1.7%
	Injectafer	treatment for iron deficiency anemia	398	346	(97.9%)	-52	-13.1%
	Venofer	treatment for iron deficiency anemia	379	421	(101.3%)	42	+11.2%
	GE injectables		529	560	(98.1%)	32	+6.0%
EUR Mn
EU Specialty Business Unit				1,067			1,207	(102.0%)	140	+13.1%
	Lixiana	anticoagulant	831	933	(101.7%)	102	+12.2%
	Nilemdo/Nustendi	cholesterol-lowering agent	50	118	(100.7%)	67	+134.5%
	Olmesartan	antihypertensive agent	142	125	(103.3%)	-17	-12.0%

FY2024

	Forecast	YoY	YoY (%)
	3,052	738	+31.9%
	2,887	623	+27.5%
	1,839	279	+17.9%
	1,049	344	+48.9%
	39	39	-
	29	29	-
	40	3	+8.4%
	1,505	98	+7.0%
	343	-3	-0.9%
	400	-21	-5.0%
	660	100	+17.8%
	1,300	93	+7.7%
	964	32	+3.4%
	217	99	+84.5%
	101	-24	-19.5%

7

5. Consolidated Statement of Financial Position

				JPY Bn
				Mar. 2023	Mar. 2024	vs. Mar. 2023
	Assets
		Current assets
			Cash and cash equivalents	441.9	647.2	205.3
			Trade and other receivables	349.1	454.2	105.1
			Other financial assets	383.2	577.0	193.8
			Inventories	301.6	438.1	136.5
			Other current assets	19.2	33.0	13.8
			Subtotal	1,495.1	2,149.5	654.5
							Transfer of DSEP assets held for sale +23.5
			Assets held for sale	-	24.5	24.5
			Total current assets	1,495.1	2,174.0	679.0
		Non-current assets				Acquisition +98.4, Depreciation -39.7,Forex +16.6
			Property, plant and equipment	348.9	421.7	72.8
			Goodwill	98.3	108.5	10.2	Forex +10.2
			Intangible assets	159.6	168.3	8.7	Acquisition +28.0, Depreciation -19.7, Forex +13.3, Transfer to Assets held for sale (DSEP) -8.7
			Investments accounted for using the equity method	1.3	0.6	-0.7
			Other financial assets	130.4	147.9	17.5	Investment securities +21.2
			Deferred tax assets	180.1	249.4	69.3
			Other non-current assets	95.2	190.7	95.6	Contribution for equipment +70.4
			Total non-current assets	1,013.8	1,287.1	273.3
		Total assets	2,508.9	3,461.1	952.2
	＊		Liquidity on hand (Cash, Securities, Investment securities etc.)	824.4	1,223.6	399.3
			Debt with interest	192.9	156.0	-36.9
			Net Cash	631.5	1,067.6	436.1

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