Qualitative Information about Consolidated Operating Results
For the nine months ended December 31, 2009, consolidated net sales of Daiichi Sankyo amounted to ¥725.6 billion (up 15.6% year on year).
Despite the appreciated Japanese yen compared with the same period last year, the Group’s revenue increased by a contribution of ¥102.1 billion from the net sales of Ranbaxy Laboratories Limited ("Ranbaxy"), which was consolidated as a subsidiary in November 2008.
In terms of profitability, operating income was ¥90.0 billion (down 8.2% year on year) as the Company proactively invested in research and development. Ordinary income was ¥90.6 billion (down 2.7% year on year). Net income was ¥39.2 billion (compared to a net loss of ¥297.8 billion year on year) which reflected cases including non-application for R&D tax credit and income tax amendments related to the previous fiscal year.
Information by Geographic Segment
■ Japan
Net sales in Japan amounted to ¥410.2 billion (down 1.6% year on year).
Net sales in the prescription drug business amounted to ¥333.9 billion (up 1.8% year on year). A contributing factor was the growth in sales of the antihypertensive Olmetec® and the anti-inflammatory analgesic Loxonin® brand.
Royalty income and exports to overseas licensees generated net sales of ¥38.0 billion (down 20.6% year on year), due in part to the effect of Japanese yen appreciation and the decrease in exports of levofloxacin, a synthetic antibacterial agent, resulting from inventory adjustments by licensees, among other factors.
Net sales of healthcare (OTC) products amounted to ¥35.0 billion (down 5.6% year on year). This drop reflected the decrease in sales of Gaster 10® and other Category 1 OTC drugs following the temporary confusion on the OTC market after the enforcement of the revised Pharmaceutical Affairs Law.
■ North America
Net sales in North America were ¥161.8 billion (up 14.1% year on year).
Although the shift toward a stronger yen negatively affected the net sales in the region, continued expansion in local currency terms of key products including the antihypertensive agents Benicar® and AZOR®, and the antihyperlipidemic / type 2 diabetes treatment Welchol®, along with the sales contribution of Ranbaxy.
■ Europe
Net sales in European regions amounted to ¥71.7 billion (up 38.9% year on year) due in part to the contribution of the net sales of Ranbaxy, and the growth in sales of antihypertensive agents Olmetec® and Sevikar®.
■ India
Net sales in India amounted to ¥44.8 billion due in part to the net sales of Ranbaxy.
■ Other regions
Net sales in other regions amounted to ¥36.9 billion (up 118.3% year on year) due in part to the sales contribution of Ranbaxy.
■ Full Year
Billions of yen
| |
FY2005 |
FY2006 |
FY2007 |
FY2008 |
|---|---|---|---|---|
| Net sales | 925.9 | 929.5 | 880.1 | 842.1 |
| Cost of sales | 290.7 | 265.2 | 234.6 | 214.4 |
| Cost of sales ratio | 31.4% | 28.5% | 26.7% | 25.5% |
| Selling,general and administrative | 480.5 | 528.0 | 488.7 | 538.9 |
| SG&A ratio | 51.9% | 56.8% | 55.5% | 64.0% |
| Research and development | 158.7 | 170.7 | 163.5 | 184.5 |
| R&D ratio | 17.1% | 18.4% | 18.6% | 21.9% |
| Operating income | 154.7 | 136.3 | 156.8 | 88.9 |
| Non-operating income | 11.0 | 20.0 | 17.0 | 12.3 |
| Non-operating expenses | 6.0 | 4.2 | 4.8 | 46.0 |
| Ordinary income | 159.7 | 152.1 | 169.1 | 55.2 |
| Extraordinary gain | 6.9 | 73.5 | 16.1 | 3.8 |
| Extraordinary losses | 29.7 | 98.7 | 18.3 | 367.2 |
| Net income | 87.7 | 78.5 | 97.7 | ▲215.5 |
Financial Indicators
■ Full Year
Billions of yen
| FY2005 As of Mar.31 |
FY2006 As of Mar.31 |
FY2007 As of Mar.31 |
FY2008 As of Mar.31 |
|
|---|---|---|---|---|
| Assets | 1,596.1 | 1,636.8 | 1,487.9 | 1,494.6 |
| Net assets | － | 1,272.1 | 1,244.5 | 888.6 |
| Net cash provided by (used in) operating activities | 132.8 | 106.4 | 66.7 | 78.4 |
| Net cash provided by (used in) investing activities | ▲39.3 | 45.3 | ▲49.4 | ▲413.9 |
| Net cash used in financing activities | ▲50.1 | ▲40.8 | ▲82.9 | 98.1 |
| Free Cash Flow | 93.5 | 151.7 | 17.3 | ▲335.5 |
| Cash and cash equivalents,end of period | 401.0 | 513.2 | 444.3 | 177.8 |
| Shareholder's equity ratio | 77.5% | 77.5% | 83.6% | 57.7% |
| Dividend on equity(DOE) | 2.9% | 3.5% | 4.0% | 5.4% |
| Return on equity(ROE) | 7.3% | 6.3% | 7.8% | ▲20.5% |
| Earnings per share(EPS) | 119.4yen | 107.7yen | 135.3yen | ▲304.2yen |
| Book value per share(BPS) | 1,696.9yen | 1,740.2yen | 1,730.1yen | 1,226.0yen |
| Total number of common shares | 729 million | 729 million | 719 million | 704 million |
| Dividend per share | 50yen | 60yen | 70yen | 80yen |
| Dividend payout ratio | 40.5% | 55.7% | 51.7% | - |
| Overseas sales | 307.2 | 356.7 | 358.6 | 373.3 |
| /Net sales | 33.2% | 38.4% | 40.8% | 44.3% |
| Capital expenditure | 30.1 | 31.5 | 21.1 | 19.6 |
| Depreciation expense | 44.4 | 39.9 | 38.7 | 40.6 |
| Number of consolidated subsidiaries | 57 | 54 | 43 | 100 |
| Number of employees | 18,434 | 15,358 | 15,349 | 28,895 |
Historical Data
