For Immediate Release

Company name: DAIICHI SANKYO COMPANY, LIMITED
Representative: Joji Nakayama, President and CEO
(Code no.: 4568, First Section of Tokyo Stock Exchange)
Please address inquiries to Noriaki Ishida, Corporate Officer,
Vice President, Corporate Communications Department
Telephone: +81-3-6225-1126
http://www.daiichisankyo.com

Voluntary Adoption of International Financial Reporting Standards (IFRS)

Tokyo, Japan (January 31, 2014)—Daiichi Sankyo Company, Limited announced that it resolved at a meeting of its Board of Directors held today to voluntarily adopt International Financial Reporting Standards (IFRS) for Daiichi Sankyo Group’s consolidated financial statements from the fiscal year ending March 31, 2014, in lieu of the current Japanese GAAP.

 

In light of future business expansion in areas including Europe and the US and Asia, global sales of the anticoagulant edoxaban, and other factors, the Daiichi Sankyo Group has taken the decision to voluntarily adopt IFRS across the Group from the fiscal year ending March 31, 2014. The aims of this move include improving the international comparability of the Group’s financial statements in the capital markets, unifying the accounting treatment applied across the Group, and diversifying the Group’s methods of procuring funds in global markets.

 

Please see the following page for the rough estimate of consolidated forecasts under IFRS for the fiscal year ending March 31, 2014, calculated with the principal differences between Japanese GAAP and IFRS factored in.

 

(For your reference)

May 15, 2014: We will disclose the consolidated operating results of the fiscal year ending March 31, 2014 in accordance with IFRS.

(We plan to disclose the differences from Japanese GAAP separately.)

Late June 2014: We will disclose the Annual Securities Report in accordance with IFRS.

 

IFRS is the acronym of International Financial Reporting Standards.

 

Consolidated Forecasts for the Fiscal Year Ending March 31, 2014 – Differences Between Japanese GAAP and IFRS (Rough Estimate)

 

(billion yen)

	Japanese GAAP (A)	IFRS (estimate) (B)	Difference (B-A)
Net Sales	1,110.0	1,110.0	0.0
Operating Income	105.0	105.0	0.0
Income Before Income Taxes1	102.0	95.0	-7.0
Net Income2	65.0	65.0	0.0

Notes:

1. Financial items under non-operating income/expenses and extraordinary income/losses are recorded as finance income/costs in IFRS and non-financial items are included in operating income.

2. Net income under IFRS is expressed as profit attributable to owners of the parent company in order to adjust it to a basis for comparison with Japanese GAAP.