April 27, 2007
Corporate

For Immediate Release

Company name: DAIICHI SANKYO COMPANY, LIMITED
Representative: Takashi Shoda, President and Representative Director
(Code no.: 4568, First Section, Tokyo, Osaka and Nagoya Stock Exchanges)
Please address inquiries to Toshio Takahashi, Corporate Officer in Charge,
Corporate Communications Department
Telephone: +81-3-6225-1126
http://www.daiichisankyo.co.jp/

Revisions of Earnings Forecasts for FY 2006

Tokyo, April 27, 2007-DAIICHI SANKYO COMPANY, LIMITED has made the following revisions to its consolidated earnings forecasts for FY 2006 announce with 3Q results on January 31, 2007 and its non-consolidated earnings forecasts for FY 2006 announced with 1H results on November 6, 2006.

 
1.Revised consolidated forecasts for FY 2006 (April 1, 2006-March 31, 2007)
(¥ million, %)
  Net sales Operating
income
Ordinary
income
Net income
Previous forecasts (A)
(Announced January 31, 2007)
925,000 138,000 152,000 71,000
Revised forecasts (B) 929,500 136,500 152,000 78,500
Change (B-A) 4,500 -1,500 0 7,500
Percent change 0.5 -1.1 0.0 10.6
FY 2005 results 925,918 154,728 159,714 87,692
 
2.Revised non-consolidated forecasts for FY 2006 (April 1, 2006-March 31,2007)
(¥ million, %)  
  Net sales Ordinary
income
Net income
Previous forecasts (A)
(Announced Nov. 6, 2006)
6,100 200 100
Revised forecasts (B) 6,140 260 -3,350
Change (B-A) 40 60 -3,450
Percent change 0.7 30.0 -
FY 2005 results 76,656 73,591 73,545
 
3. Main reasons for revising earnings forecasts
 
Consolidated earnings forecasts
We are raising our forecast of consolidated net sales as a result of continued strongsales at our two subsidiaries in the United States and a weaker yen.
 We are revising our forecast of consolidated operating income down slightly as a result of aggressive global sales promotion activities and R&D activities. We are raising our forecast of consolidated net income on account of extraordinary gains resulting from the sale of idle real estate, investment securities, and subsidiaries not involved in
pharmaceuticals as part of our effort to make them independent of the group.
 
Non-consolidated earnings forecasts
The ethical pharmaceutical operations of Sankyo and Daiichi Pharmaceutical were integrated into the holding company DAIICHI SANKYO on April 1, 2007 in accordance with the initial schedule for merging the two companies.
  This transaction qualifies as a common control transaction in the accountingstandards for business combinations, and the difference between 1) the amount of equity in the difference between the assets and liabilities received by DAIICHI SANKYO and 2) the book value of the shares in the two companies owned by DAIICHI SANKYO prior to the merger is to be recorded in non-consolidated accounts under extraordinary gains or losses as a stock retirement gain or loss.
 Based on this standard, we will record a stock retirement loss of \3.5 billion under extraordinary losses in FY 2006.
  This accounting treatment does not affect consolidated financial statements due to elimination as an internal transaction in consolidated accounts.
 

 

 

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