Tax Compliance and Financial Reporting

The Chief Financial Officer (CFO) promotes and oversees tax governance as the head of the Global Corporate Planning & Management. The Finance and Accounting Department promotes activities across the Daiichi Sankyo Group of companies in line with the “Daiichi Sankyo Group Approach to Tax” set forth as a global policy.
Across the group, we ensure that taxes are paid, tax returns are filed on time, and all required information is submitted to each jurisdiction in accordance with relevant laws and regulations. Furthermore, in order to provide clarity regarding our long-term tax position, we seek prior approval from tax authorities by using advance pricing arrangements. In fiscal year 2022, we obtained an approval of advance pricing arrangement on Enhertu® from both tax authorities in Japan and the United States.
As a multinational company, we also meet evolving requirements in a timely manner by closely and continuously reviewing our tax obligations across the globe. In particular, we promote efforts on the rules for documentation of transfer pricing transactions and anti-tax haven rules under the Base Erosion and Profit Shifting (BEPS) project.
In fiscal year 2021, no sanctions or other punitive measures were imposed on any member companies within the Group for any material violations of tax compliance.

Daiichi Sankyo Group Approach to Tax

Revenues, Income tax paid, etc. by Country 
(Year Ended March 31, 2023)

(Unit: 100 million yen, employees)

Country	Revenues	Profit(Loss) before Income Tax	Income Tax Paid (on Cash Basis)	Income Tax Accrued - Current Year	Number of employees
Japan	11,508	109	70	68	9,263
United states	5,803	832	203	365	3,062
Germany	3,490	(17)	1	-	1,423
China	804	209	61	53	1,377
Brazil	308	112	33	41	598
Korea	263	24	8	5	221
Other	1,461	130	16	33	1,492
Total	23,636	1,399	392	566	17,436

^*The above amounts are based on the statutory "Country-by-Country Report (CbCR)" and differ from the Consolidated Financial Statements. 

Internal Control over Financial Reporting

Daiichi Sankyo Co., Ltd. ensures that record, assessment, and improvement are made to the status of company-level controls and important process-level controls in accordance with the internal control reporting system based on the Financial Instruments and Exchange Act, as well as in collaboration with the Internal Audit Department and accounting departments of Group companies in Japan and overseas. We also strive to improve the reliability and quality of our financial reporting by holding meetings, etc., with these accounting departments to consider and share Group accounting policies.
Furthermore, we minimize financial risks by managing foreign exchanges, interest, price fluctuations of securities held, and other risks in accordance with the basic policies set forth in the internal control system for financial reporting. With regard to cross-shareholdings, we will not hold listed stocks in principle, unless we judge that doing so will contribute to the enhancement of our corporate value. We verify the profitability of each stock and review the rationality of owning stocks as needed by taking into account the business strategy and business relationship in a comprehensive manner.