Daiichi Sankyo Company (4568) investor relations material

FY2025 Financial Forecast Revision

• Operating profit forecast reduced by JPY 106 billion to JPY 229 billion due to temporary expenses, including JPY 75.7 billion for CMO compensation and JPY 19.3 billion for canceled ADC CapEx at Odawara.

• Revenue forecast for FY2025 increased by JPY 23 billion to JPY 2,123 billion, while profit attributable to owners is expected at JPY 260 billion.

• Cost of sales decreased by JPY 19 billion, but SG&A expenses rose by JPY 31 billion and R&D expenses by JPY 2 billion.

• Temporary expenses stem from revised supply plans, minimum purchase obligations with CMOs, and impairment losses from canceled investments.

• Exchange rates updated to USD/JPY 150.78 and EUR/JPY 174.79.

ADC Manufacturing and Supply Strategy Update

• Initial ADC supply relied on both in-house and CMO manufacturing, with phased capacity expansion and a focus on stable supply.

• Market demand for ADCs exceeded initial plans, prompting a shift to a hybrid model with expanded CMO utilization and long-term commitments.

• New supply plan incorporates risk adjustments, leading to lower cumulative volumes and discrepancies with minimum purchase obligations.

• Strategic shift aims to optimize roles between in-house and CMO manufacturing, leveraging flexibility and transferring established technologies for commercial production.

• Ongoing discussions with CMOs include flexible use of manufacturing capacity and possible transfers to third parties.

Financial and Dividend Policy Outlook

• Temporary expenses for CMO compensation are recorded for the short term; future provisions may arise depending on demand and clinical outcomes.

• Annual dividend forecast for FY2025 remains at JPY 78 per share, with plans to continue increasing dividends in line with the established five-year business plan.

• CapEx for in-house manufacturing will be more selective, focusing on necessary and maintenance investments, with further details to be disclosed in the upcoming five-year business plan.

• Initiatives are underway to minimize actual losses related to CMO compensation fees.