Tax Compliance and Financial Reporting

Across the Daiichi Sankyo Group (the Group), the Chief Financial Officer (CFO), as the officer responsible for tax governance, promotes and oversees related initiatives. The CFO also serves as the Head of the Global Corporate Planning & Management. The Finance and Accounting Department, which operates under the Global Corporate Planning & Management, promotes activities in line with the “Daiichi Sankyo Group Approach to Tax” set forth as a global policy.
Across the Group, in keeping with the spirit of the law, we ensure that we file tax returns and pay taxes on time in accordance with the relevant laws and regulations of each jurisdiction. We also strive to provide appropriate information to the tax authorities in a timely and cooperative manner in response to their requests. Furthermore, in order to provide clarity regarding our long-term tax position, we seek to reach advance agreements with tax authorities through mechanisms such as the Advance Pricing Arrangements (APA).
As a multinational company, we also closely monitor developments in the international tax framework and strive to respond to such changes in a timely manner. In particular, we promote our efforts to address  transfer pricing documentation rules and anti-tax haven(controlled foreign company) taxation rules as outlined under the Base Erosion and Profit Shifting (BEPS) project.
In fiscal year 2025, 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, 2026)

(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	20,873	4,552	840	1,078	9,530
United states	9,596	326	204	290	4,063
Germany	6,925	143	3	41	2,054
China	1,071	204	49	45	1,619
Brazil	657	253	81	81	652
Korea	359	29	9	89	250
Other	3,727	314	88	91	2,003
Total	43,207	5,820	1,274	1,634	20,171

* The above amounts are based on the statutory "Country-by-Country Report (CbCR)" and differ from the Consolidated Financial Statements.
* For the EU Public Country-by-Country Report (EU Public CbCR) pursuant to Directive (EU) 2021/2101, please refer to the following.

EU Public Country-by-Country Reporting

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　Corporate 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.