Daiichi Sankyo Co Ltd Ord

Thank you for waiting. We are going to start Daichi Sankyo's FI2025 financial results announcement and FI2026 FI2035 year business plan presentation and discussion. I'm delighted to serve as MC today. I'm Ari Fujishiro from the investor relations and shareholder relations department. First about the language. In this briefing session, you're going to use Japanese and English. simultaneous translation is available. Please click the interpretation icon at the bottom of your Zoom screen and choose Japanese, English or the original audio. If you choose the original audio, you can listen to the original sound. On Zoom screen and during live streaming, we will show a presentation material in Japanese. We have posted a presentation in both Japanese and English on our corporate website and the IR library Financial Results Presentation Material or IR Presentation Material section. Please download the files if necessary. Today, five members are in attendance. Representative Director, President and CEO, Hiroyuki Okuzawa, Senior Executive Officer, CFO, Tomohiro Kodama, Director, Head of Oncology Business Unit, Ken Keda, Head of Global R&D, John Tsai, and Senior Executive Officer, Head of R&D Division, Yuki Abe. Today, after FY2025 financial results announcement, we will present FY2026 to FY2030 five-year business plan. At the end, we will have time for Q&A with all the executives. We will entertain questions from investors and analysts until 8 p.m. We will take questions from members of the media from Ten minutes past eight. Please note that this meeting is being recorded. Thank you for your understanding. We are starting FI 2025 financial results announcement. Okuzawa-san, please. Okuzawa speaking. Thank you very much for joining Daiichi Sankyo's FI 2025 financial results announcement and five-year business plan presentation and discussion out of a very busy schedule today. First, we'd like to sincerely apologize for rescheduling the date of FA2025 financial results announcement and five-year business plan presentation and causing you inconvenience and concern. Due to the financial results forecast revision we explained the other day, We thought that explaining FI 2025 financial results and five-year business plan together would be the best way to help you understand the current situation of a company and a future strategy properly, so we decided to reschedule the dates. Today, we will explain FI 2025 consolidated results first, and then the five-year business plan. We will entertain your questions at the end, after the two presentations. Now, our new CFO, Kodama, will explain FY2025 consolidated results. Kodama-san, please. Kodama speaking. Please turn to page 5.

Kodama speaking.

These are the topics we are going to cover today. R&D update will be explained by John Tsai, who has assumed the post of Head of Global R&D since April this year. Please turn to page 6. This is the summary of the financial results. I will explain the details on the following pages. Please turn to page 7. I will explain an overview of FI 2025 consolidated results. Revenue increased by 236.8 billion yen or 12.6% year-on-year to reach 2,123,000,000 yen. Cost of sales increased by 25.6 billion yen from the previous year. It generated expenses rose by 134.8 billion yen. and earned expenditure increased by 29.3 billion yen year-on-year. As a result, cooperating profit increased by 47.1 billion yen, or 15.1% year-on-year, to reach 360 billion yen. Operating profit, including temporary gains and losses, decreased by 102.8 billion yen, or 31% year-on-year, to 229.1 billion yen. Profit attributable to owners of the company decreased by 35.9 billion yen or 12.1% year-on-year to reach 259.9 billion yen. You can find the actual currency rates on the slide. Please start to page 8. From here, let me explain positive and negative factors for revenue compared to the previous year. Revenue increased by 236.8 billion yen year-on-year. I will explain its breakdown by business unit. First, Japan business unit. Sales increased for anti-cancer agent , direct oral or rather pain treatment , direct oral anticoagulant , etc. On the other hand, revenue decreased for influenza treatment , in addition We booked realized gains on unrealized gains of inventory for Daichi Sankyo EFTA in EFTA 2024, so Japan business revenue increased by 3.2 billion yen in total. Next, let me explain our overseas business units. Here, work's impact is excluded. In oncology business, revenue increased by 152.2 billion yen, due to the growth of Enhert and Datorre sales. As for American Regent, revenue declined by 32.8 billion yen due to the impact of generic entry on iron deficiency anemia treatment and Venofar, and the impact of price competition on Injectafar and generic injectables. Revenue for EU specialty business increased by 21.7 billion yen as sales grew for hypercholesterolemia treatment Nidamdo Mustendi. In Asuka business responsible for Asia's South and Central American regions, revenue rose by 38.1 billion yen due to the growth of Enherd mainly in China and Brazil. As for upfront payment and regulatory and sales milestone, etc. related to alliance with AstraZeneca and U.S. Merck, we looked at revenue, sales milestones, etc. we received from AstraZeneca in the fourth quarter, so revenue increased by 32.5 billion yen. Forex impact increased the revenue by 21.8 billion yen in total.