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 (December 21, 2011) – Daiichi Sankyo Company, Limited (hereafter, the Company) today announced a revision of its annual earnings forecasts that were announced on October 31, 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	50,000	71.03
Revised forecasts (B)	930,000	100,000	90,000	26,000	36.94
Change (B-A)	0	0	0	-24,000
Percentage of change (%)	0.0	0.0	0.0	-48.0
(Reference) Results of the previous fiscal year (FY2010)	967,365	122,143	131,762	70,121	99.62

 

2. Reason of the revision

Ranbaxy Laboratories Ltd. (hereafter, Ranbaxy), the Company’s consolidated subsidiary, announced that it intends to make a provision of $500 million in connection with the investigations by the U.S. Department of Justice, which Ranbaxy believes will be sufficient to resolve all potential civil and criminal liability.  Following Ranbaxy’s provision, the Company has incorporated an extraordinary loss of ¥37.5 billion into its revised annual forecasts. Factoring in the minority interests of Ranbaxy, net income has been downwardly revised by ¥24.0 billion to ¥26.0 billion.

 

The revised forecasts do not include contributions from Ranbaxy’s Atorvastatin launch in the U.S.

 

The Company’s forecast for its fiscal year-end dividend, 30 yen per share, remains unchanged.

 

Furthermore, in response to this downward revision of its earnings forecasts, the Company’s board has decided to return part of their monthly remuneration as below:

     Representative Directors: 30% for six months

     Directors: 10% or 5% for six months

 

* 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.