Daiichi Sankyo Co Ltd Ord

Ladies and gentlemen, we would like to start FI 2025 Q2 financial result presentation. My name is Asakura, in charge of corporate communication. In this presentation session, we are going to use both Japanese and English. We have simultaneous interpretation service available, so please make sure you click on the language button to choose the language of your preference. We have Japanese, English, and original audio. If you select an original audio, you should be able to hear original audio. And on the Zoom screen, we are going to present both Japanese and English presentation material. And for the live streaming, we are going to present the Japanese presentation material. Our corporate website, our library, earnings score related material page carries the presentation material both in Japanese and English. And let me introduce today's speakers. We have Representative representative director and CEO Okuzawa. We have the head of global R&D, Takeshita. We have Ken Keller, who is the director and oncology business head. We have CFO Ogawa. First, Okuzawa and Takeshita will offer you the explanation of the highlights of the second quarter result, and we are going to receive questions from investors and analysts by 5 p.m. Media people can start asking questions separately from 10 minutes past 5 p.m. Today's session is going to be audio recorded. I would like to ask for your understanding in advance. Please, Mr. Okuzawa.

Okuzawa de gozaimasu.

Good afternoon to you. This is Okuzawa speaking. Thank you very much for your joining this financial results representation of Daiichi Sankyo. And now I would like to explain to you, based on the material of the unconsolidated financial result of the second quarter of FY25, which was announced externally on 1pm Japan Standard Time today. This is slide 3. I would like to first cover fiscal year 25 second quarter financial result and fiscal year 25 forecast business update and then R&D update. In this order, I'd like to present and as to the R&D update, I would like to ask Dr. Takeshita, the global R&D head to explain and we will be entertaining your question at the end. Please now look at slide four. This slide shows the outline of the FY25 second quarter financial results. The revenue was 975.4 billion yen, increased by 92.6 billion yen or 10.5% year on year. Cost of sales increased by 25.8 billion yen. and SG&A expenses increased by 51.3 billion yen increase and R&D expenses, the 23.5 billion yen increase year-on-year. As a result, co-operating profit was 158.6 billion yen declined by 8 billion yen or 4.8% year-on-year. Operating profit including the one-time profit and loss was 144.2 billion yen declined by 42.7 billion or 22.8% year-on-year and the profit attributable to the owner of the company was 130.8 billion yen declined by 15.9 billion yen or 10.8% year-on-year as to the result of the exchange rate One dollar is 146.04 yen and this is the 6.5 yen appreciation year-on-year and one euro was 168.6 yen and the yen depreciation by 2.13 yen year-on-year. And this is slide five. Now I'd like to talk about the factors contributing to the increase or decrease year-on-year revenue increased by 92.6 billion yen year-on-year. And now I'd like to show you the breakdown by the business units. Let me begin by Japan Business Unit and others. The Belsomula for insomnia and Datroy, which is the anti-tumor drug, And lixiana, direct oral anticoagulant, and talige for pain, and enhatu for anti-humor effect increased their sales. And this absorbed, realized the sales for, and realized the gains for Daiichi Sankyo ESFA, that was 11.2 billion yen, and also the decline by the vaccine business shrinkage, that was 6.1 billion yen, we had overall increase by 1.6 billion yen totally. And now let me talk about the overseas business units. And here we have excluded the impact by the foreign exchange. Oncology business increased by 69.7 billion yen due to the growth of the ENCHA-2 and also the contribution of the sales by Datraway. An American region experienced a decline of the sales by 7 billion yen for the decline of the injectophores and venophores for iron deficiency and anemia. And EU specialty business increased by 16.9 billion yen due to the growth of the niremidol and nustendi, which are hypercholesterolemia treatment increase. And in ASCA business which is in charge of the Asia and the Central and the South America, there was a growth of the in China and the Brazil mainly and that experienced 22.9 billion yen of increase. and upfront payment and regulatory and sales milestone etc. related to AstraZeneca and US Merck increased by 5.6 billion yen thanks to development milestone income with US EGFR a mutated NSCLC of that way and also upfront payment of the agreement of the strategic alliance with USMAC for 3 DXD ADCs booked. We have also received the second upfront payment of 750 million yen from MAC USD for USD for RDXD and from second quarter, third quarter this fiscal year through the end of expected exclusive period, it will be booked as revenue and the Forex impact was 17.1 billion yen negative.