For Immediate Release

Company name: DAIICHI SANKYO COMPANY, LIMITED
Representative: Joji Nakayama, President and Representative Director
(Code no.: 4568, First Section, Tokyo, Osaka and Nagoya Stock Exchanges)
Please address inquiries to Toshiaki Sai, General Manager,
Corporate Communications Department
Telephone: +81-3-6225-1126
http://www.daiichisankyo.com/

Revision of Earnings Forecasts

Tokyo, Japan (January 31, 2012) – Daiichi Sankyo Company, Limited (hereafter, the Company) today announced a revision of its annual earnings forecasts that were announced on December 21, 2011.

 

1. Revision of consolidated earnings forecasts for the fiscal year ending March 2012

(From April 1, 2011 to March 31, 2012)

	Net sales	Operating income	Ordinary income	Net income	Net income per share
	Millions of yen	Millions of yen	Millions of yen	Millions of yen	Yen
Previous forecasts (A)	930,000	100,000	90,000	26,000	36.94
Revised forecasts (B)	940,000	100,000	77,000	15,000	21.31
Change (B-A)	10,000	0	-13,000	-11,000	－
Percentage of change (%)	1.1	0.0	-14.4	-42.3	－
(Reference) Results of the previous fiscal year (FY2010)	967,365	122,143	131,762	70,121	99.62

 

2. Reason of the revision

With respect to net sales, we expect further intensification of competition and cooling in the Japanese prescription drugs market ahead of the NHI price revision in April as factors decreasing sales, while on the other hand, Ranbaxy’s launch in the U.S. of the antihyperlipidemic agent atorvastatin is expected to contribute to an increase in sales . As a result, the net sales forecast has been upwardly revised by ￥10.0 billion to ￥940.0 billion.

The operating income forecast has not been changed from the previously announced figure of ￥100.0 billion because we are factoring in the effect of the expected decline in sales in Japan, despite our expectations of a sales contribution from atorvastatin.

On the other hand, the ordinary income forecast has been revised to ￥77.0 billion, down ￥13.0 billion from the previously announced figure, because we expect to continue recording foreign exchange losses and loss on valuation of derivatives in the fourth quarter due to the depreciation of the Indian rupee against the U.S. dollar.

The net income forecast has been revised to ￥15.0 billion, down ￥11.0 billion from the previously announced figure. The revision reflects the decrease in ordinary income, as well as an expected increase in accounting tax costs due to the reversal of previously recorded deferred tax assets, triggered by the government’s decision to cut the corporate tax rate in Japan.

There is no change in the year-end dividend forecast of ￥30 per share.

 

* The forecasted statements shown in this document are based on information currently available and certain assumptions that the Company regards as reasonable. Actual performance and other results may differ from these forecasted figures due to various factors.