February 14, 2007
Corporate

PDF (626KB)

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/

DAIICHI SANKYO Announces Midterm Management Plan for Fiscal 2007-2009

Tokyo, February 14, 2006- DAIICHI SANKYO COMPANY LIMITED (hereafter: DAIICHI SANKYO) announced today that it had completed the development of its three-year management plan, starting in fiscal 2007, which serves as the first step towards achievement of the company's long-term vision in 2015. Since the establishment of DAIICHI SANKYO on September 28, 2005, the DAIICHI SANKYO group has been working steadily towards the full integration of its business operations in April 2007. An outline of the plan follows:

 

Midterm Management Plan
(1) Core Messages
  1. Develop infrastructure for the implementation of Vision 2015
  2. Optimize synergies of business integration:
    •Strengthen performance in development of new pharmaceuticals and R&D pipeline
    •Develop domestic sales operations to boost income for the group as a whole
    •Maintain and expand key products such as olmesartan medoxomil and
levofloxacin
    •Improve efficiency through optimizing personnel and effective operation of
group subsidiaries that engage in pharmaceutical businesses.
  3. Strengthen of sales performance in the U.S. (increase MRs by a factor of 2.5)
  4. Target for fiscal 2009: Operating profit ratio: 25%; Overseas sales ratio: 40% or more
  5. Actively pursue return to shareholders
  6. Expand businesses through strategic investment
 
(2) Target figures (Pharmaceutical businesses only)
 
Fiscal 2007 Sales: ¥820 billion Operating profit: ¥157 billion (operating profit ratio: 19.1%)
Fiscal 2009 Sales: ¥960 billion Operating profit: ¥240 billion (operating profit ratio: 25.0%)
 
(3) Actively pursue return to shareholders
  1. Fundamental policy
    •Total return ratio target: 100%
Current-term free cash-flow will be appropriated to shareholders' return
(dividend and acquisition of treasury stock)
    •Early attainment of DOE (dividend on equity ratio) of 5% through stable
dividend increase
    •Flexible execution of share buyback through Board of Directors' resolution
  2. Target figures
    •DOE of at least 5% (Fiscal 2006 forecast: 3.5%)
       
Outline of Vision 2015
  (1) Basic vision
    •To become a "Global Pharma Innovator"
  (2) Target figures
    •Sales: ¥1.5 trillion
    •Operating profit ratio: 25% or more
    •Overseas sales ratio: 60% or more
  (3) Key therapeutic areas on which to focus R&Defforts
    •To create world-class pipelines for the development of treatments for
thrombosis, diabetes, cancer, immunological diseases and rheumatoid arthritis
     
Please refer to the PDF for details.
End

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