Interim report
Page 1
January 30, 2026 Consolidated Financial Results for the First Nine Months of the Year Ending March 31, 2026 (Fiscal 2025) <under IFRS> Listed company name: Daiichi Sankyo Company, Limited Listed exchange: the Tokyo Stock Exchange Stock code number: 4568 URL: https://www.daiichisankyo.com Representative: Mr. Hiroyuki Okuzawa, Representative Director, President and CEO Contact: Mr. Kentaro Asakura, Corporate Officer, Head of Corporate Communications Department Telephone: +81-3-6225-1125 Scheduled date to commence dividend payments: - Preparation of supplementary material (Reference Data) on financial results: Yes Holding of financial results briefing: Yes (for institutional investors, analysts and the press) (All amounts have been rounded down to the nearest million JPY) 1. Consolidated Financial Results for the First Nine Months of the Year Ending March 31, 2026 (from April 1, 2025 to December 31, 2025) (1) Consolidated Financial Results (cumulative) (Percentages indicate changes from the same period in the previous fiscal year ) Revenue Core operating profit Operating profit Profit before tax Millions of JPY % Millions of JPY % Millions of JPY % Millions of JPY % Nine months ended December 31, 2025 1,533,459 12.1 249,196 8.8 233,775 (5.9) 269,950 (1.8) Nine months ended December 31, 2024 1,367,567 16.6 229,009 33.0 248,311 27.6 275,000 37.6 Profit for the period Profit attributable to owners of the Company Total comprehensive income Basic earnings per share Diluted earnings per share Millions of JPY % Millions of JPY % Millions of JPY % JPY JPY Nine months ended December 31, 2025 217,446 4.2 217,446 4.2 267,280 11.7 117.34 117.28 Nine months ended December 31, 2024 208,603 27.1 208,603 27.5 239,178 15.0 109.65 109.58 Note: Daiichi Sankyo discloses core operating profit, which excludes non-recurring gains and losses from operating profit, as an indicator of underlying profitability. For the definition of core operating profit, please refer to “1. Results of Operations (1) Operating
Page 2
Results for the first nine months of the year ending March 31, 2026” on page 2 of the attached material. (2) Consolidated Financial Position Total assets Total equity Equity attributable to owners of the Company Ratio of equity attributable to owners of the Company to total assets Equity per share attributable to owners of the Company Millions of JPY Millions of JPY Millions of JPY % JPY As of December 31, 2025 3,821,811 1,710,549 1,710,549 44.8 924.09 As of March 31, 2025 3,456,119 1,623,416 1,623,416 47.0 869.69 2. Cash Dividend Annual dividend per share First quarter Second quarter Third quarter Fiscal year-end Total JPY JPY JPY JPY JPY Fiscal year ended March 31, 2025 – 30.00 – 30.00 60.00 Fiscal year ending March 31, 2026 – 39.00 – Fiscal year ending March 31, 2026 (Forecast) 39.00 78.00 Note: Revisions to the forecast of cash dividend from most recently announced figures: None 3. Forecast of Consolidated Financial Results for the Year Ending March 31, 2026 (from April 1, 2025 to March 31, 2026) (Percentages indicate changes from the previous fiscal year ) Revenue Core operating profit Operating profit Profit before tax Profit for the year Millions of JPY % Millions of JPY % Millions of JPY % Millions of JPY % Millions of JPY % Full year 2,100,000 11.3 350,000 11.9 335,000 0.9 355,000 (0.2) 288,000 (2.6) Profit attributable to owners of the Company Basic earnings per share Millions of JPY % JPY Full year 288,000 (2.6) 155.59 Note: Revisions to the forecast of most recently announced figures: None
Page 3
*Notes (1) Significant changes in the scope of consolidation during the period : Yes Newly included: None Excluded: 2 companies (Daiichi Sankyo Propharma Co., Ltd. and Daiichi Sankyo Chemical Pharma Co., Ltd.) (2) Changes in accounting policies and changes in accounting estimates 1) Changes in accounting policies required by IFRS: None 2) Changes in accounting policies due to other reasons: None 3) Changes in accounting estimates: None (3) Number of ordinary shares issued 1) Number of issu ed shares at the end of the period (including own shares) As of December 31, 2025 1,894,350,529 shares As of March 31, 2025 1,908,322,129 shares 2) Number of own shares at the end of the period As of December 31, 2025 43,292,642 shares As of March 31, 2025 41,668,788 shares 3) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Nine months ended December 31, 2025 1,853,129,945 shares Nine months ended December 31, 2024 1,902,491,746 shares *Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: No *Disclaimer regarding forward-looking information including appropriate use of forecast financial results The forecast information included in these materials is based on information currently available and certain assumptions that Daiichi Sankyo regards as reasonable. Actual performance and results may differ from those forecast due to various factors. Please see “1. Results of Operations (3) Information about Forecasts of Consolidated Financial Results and Other Forward- Looking Statements” on page 9 for matters related to the above forecasts.
Page 4
1 Attached Material Index 1. Results of Operations ............................................................................................................................................. 2 (1) Operating Results for the first nine months of the year ending March 31, 2026 ..............................................2 1) Overview ................................................................................................................................................. 2 [Consolidated Financial Results (Core Base)] .................................................................................................. 2 [Revenue by Business Unit] ............................................................................................................................. 4 2) Status of R&D ......................................................................................................................................... 5 (2) Analysis of Financial Position as of December 31, 2025 .................................................................................8 (3) Information about Forecasts of Consolidated Financial Results and Other Forward-Looking Statements ......9 (4) Information about Return to Shareholders .......................................................................................................9 2. Condensed Interim Consolidated Financial Statements with Primary Notes ....................................................... 10 (1) Condensed Interim Consolidated Statement of Financial Position.................................................................10 (2) Condensed Interim Consolidated Statement of Profit or Loss and Condensed Interim Consolidated Statement of Comprehensive Income .............................................................................................................12 Condensed Interim Consolidated Statement of Profit or Loss ........................................................................ 12 Condensed Interim Consolidated Statement of Comprehensive Income ........................................................ 13 (3) Condensed Interim Consolidated Statement of Changes in Equity ................................................................14 (4) Condensed Interim Consolidated Statement of Cash Flows ...........................................................................16 (5) Notes to Condensed Interim Consolidated Financial Statements ...................................................................18 Going Concern Assumption ............................................................................................................................ 18 Changes in Presentation .................................................................................................................................. 18 Operating Segment Information ..................................................................................................................... 18
Page 5
2 1. Results of Operations (1) Operating Results for the first nine months of the year ending March 31, 2026 1) Overview [Consolidated Financial Results (Core Base)] (Millions of JPY; all amounts have been rounded down to the nearest million JPY .) Nine months ended December 31, 2024 Nine months ended December 31, 2025 YoY change Revenue 1,367,567 1,533,459 165,892 12.1% Cost of sales* 321,392 335,220 13,828 4.3% Selling, general and administrative expenses* 516,614 610,364 93,749 18.1% Research and development expenses* 300,550 338,678 38,127 12.7% Core operating profit* 229,009 249,196 20,186 8.8% Temporary income* 21,454 4,365 -17,088 -79.7% Temporary expenses* 2,152 19,786 17,633 819.1% Operating profit 248,311 233,775 -14,535 -5.9% Profit before tax 275,000 269,950 -5,050 -1.8% Profit attributable to owners of the Company 208,603 217,446 8,842 4.2% Total comprehensive income 239,178 267,280 28,101 11.7% * Daiichi Sankyo Group (hereinafter, “the Group”) discloses core operating profit, which excludes temporary income and expenses from operating profit, as an indicator of ordinary profitability. Temporary income and expenses include gains/losses on sale of non-current assets, gains/losses associated with business restructuring (excluding gains/losses on sales of developed products and products on the market), impairment losses on property, plant and equipment, intangible assets, and goodwill, compensation for damages or settlement, and non-recurring and large gains/losses. This table shows the actual results of cost of sales, selling, general and administrative expenses, and research and development expenses, exclusive of temporary income and expenses. The adjustment table from operating profit to core operating profit is stated in the Reference Data. <JPY exchange rates for major currencies (average rate for the period)> (JPY) Nine months ended December 31, 2024 Nine months ended December 31, 2025 USD/JPY 152.56 148.75 EUR/JPY 164.82 171.84
Page 6
3 a. Revenue - Revenue in the first nine months of the year ending March 31, 2026 increased by JPY165.9 billion, or 12.1% year on year, to JPY1,533.5 billion. - Despite the negative effect from foreign exchange by the appreciation of JPY , revenue increased due to the growth of global mainstay products such as Enhertu (generic name: trastuzumab deruxtecan, T- DXd/DS-8201) and the sales contribution of Datroway (generic name: datopotamab deruxtecan: Dato- DXd/DS-1062). - The negative effect on revenue from foreign exchange was JPY3.3 billion in total. b. Core operating profit - Core operating profit increased by JPY20.2 billion, or 8.8% year on year, to JPY249.2 billion. - Cost of sales was JPY335.2 billion, constituting an increase of JPY13.8 billion, or 4.3% year on year, due to an increase in revenue. - Selling, general and administrative expenses increased by JPY93.7 billion, or 18.1%, to JPY610.4 billion due to the cost increase by an increase in profit sharing with AstraZeneca. - Research and development expenses increased by JPY38.1 billion, or 12.7% year on year, to JPY338.7 billion due to increased R&D investment in 5DXd ADCs (trastuzumab deruxtecan, datopotamab deruxtecan, patritumab deruxtecan: HER3-DXd/U3-1402, ifinatamab deruxtecan: I- DXd/DS-7300, raludotatug deruxtecan: R-DXd/DS-6000). - The positive effect on core operating profit from foreign exchange was JPY6.4 billion in total. c. Operating profit - Operating profit decreased by JPY14.5 billion, or 5.9% year on year, to JPY233.8 billion. - A temporary income as a result of the gain on share transfer of Daiichi Sankyo Espha Co., Ltd. was recorded in the nine months ended December 31, 2024. Without this gain in the current period, temporary income decreased, and compensation for losses paid to the contract manufacturer related to HER3-DXd, and others were recorded as temporary expenses in the current period, resulting in a decrease in operating profit. d. Profit before tax - Profit before tax decreased by JPY5.1 billion, or 1.8% year on year, to JPY270.0 billion. - The smaller decrease compared to operating profit was a result of an improvement of the financial balance by an improvement in loss (gain) on exchange differences. e. Profit attributable to owners of the Company - Profit attributable to owners of the Company increased by JPY8.8 billion, or 4.2% year on year, to JPY217.4 billion due to the decrease in income taxes and other factors.
Page 7
4 f. Total comprehensive income - Total comprehensive income increased by JPY28.1 billion, or 11.7% year on year, to JPY267.3 billion due to the increase in the currency translation difference related to net assets of overseas subsidiaries and other factors. [Revenue by Business Unit] Revenue by business unit in the first nine months of the year ending March 31, 2026 is as follows. Revenue by product is stated in the Reference Data. a. Japan Business Unit Revenue from Japan Business Unit includes revenue from products generated by the innovative pharmaceuticals business and the vaccine business. Revenue from the Unit increased by JPY5.2 billion, or 1.3% year on year, to JPY390.8 billion due to the growth of Lixiana, Tarlige and others, and the sales contribution of Datroway and Belsomra. The following describes the major progress in the first nine months of the year ending March 31, 2026. - In August 2025, Enhertu was approved for chemotherapy naïve HER2 low or HER2 ultralow breast cancer and the promotion started. b. Daiichi Sankyo Healthcare Unit Revenue from Daiichi Sankyo Healthcare Unit increased by JPY3.2 billion, or 4.7% year on year, to JPY70.6 billion as a result of the increase in sales of Clean Dental, Loxonin and others. c. Oncology Business Unit Revenue from Oncology Business Unit includes revenue from cancer treatment products generated by Daiichi Sankyo, Inc. (the U.S.) and Daiichi Sankyo Europe GmbH. Revenue from the Unit increased by JPY102.1 billion, or 30.3% year on year, to JPY439.2 billion and the revenue in local currency increased by USD743 million, or 33.6%, to USD2,953 million due to the growth of Enhertu and others, and the sales contribution of Datroway in the U.S. and Europe. The following describes the major progress in the first nine months of the year ending March 31, 2026. - In June 2025, Datroway was launched in Europe (Indications: HR positive and HER2 negative breast cancer (IHC 0, IHC 1+ or IHC 2+/ISH-) after prior endocrine therapy and chemotherapy). - In June 2025, Datroway was approved in the U.S. for treatment of EGFR-mutated NSCLC and the promotion started. - In December 2025, the application for the combination therapy with Enhertu and pertuzumab was approved in the U.S. for the first line treatment for HER2 positive breast cancer and the promotion started. d. American Regent Unit Revenue from American Regent Unit decreased by JPY28.0 billion, or 16.5% year on year, to JPY141.9 billion and the revenue in local currency decreased by USD159 million, or 14.3%, to USD954 million due to decreases in sales of Injectafer and Venofer and others.
Page 8
5 e. EU Specialty Business Unit Revenue from EU Specialty Business Unit includes revenue from products other than from cancer treatment products generated by Daiichi Sankyo Europe GmbH. Revenue from the Unit increased by JPY21.8 billion, or 12.2% year on year, to JPY200.1 billion and the revenue in local currency increased by EUR83 million, or 7.6%, to EUR1,165 million due to the growth in sales of Nilemdo/Nustendi. f. ASCA Business Unit Revenue from ASCA*1 Business Unit includes sales to overseas licensees. Revenue from the Unit increased by JPY32.2 billion, or 20.8% year on year, to JPY187.2 billion due to an increase of Enhertu in China and others. *1 Asia, South & Central America The following describes the major progress in the first nine months of the year ending March 31, 2026. - In December 2025, Enhertu was approved in China for chemotherapy naïve HER2 low or HER2 ultralow breast cancer and the promotion started. 2) Status of R&D The Group focuses on accelerating global clinical development and is working on research and development in accordance with the “5DXd ADCs *1 and Next Wave” Strategy, which intensively allocates resources to 5DXd ADCs for maximizing their product values, and aims to deliver medicines that change SOC*2 for realization of sustainable growth (Next Wave). In the medium to long term, the Group aims to develop therapeutic drugs for various diseases in addition to oncology by utilizing its competitive science and technology, and strives to strengthen drug discovering capabilities by technology research of new modalities*3. *1 ADC: Abbreviation for Antibody Drug Conjugate, drug composed of an antibody drug and a payload (a small molecule drug) linked via appropriate linker. By using a monoclonal antibody that binds to a specific target expressed on cancer cells, a cytotoxic payload is delivered to cancer cells effectively with reducing systemic exposure. DXd ADCs are drugs that combine the Company’s proprietary drugs and linkers with antibodies. *2 Standard of Care: Universally applied best treatment practice in today’s medical science. *3 Modality: Medical treatment such as small molecule drugs, antibody drugs, ADC, nucleic acid drugs and gene therapy. 【5DXd ADCs】 The following describes the Group’s clinical development of 5DXd ADCs projects in the first nine months of the year ending March 31, 2026 (from April 1, 2025 to December 31, 2025). The status of each clinical trial is stated in the Reference Data. The Group is developing trastuzumab deruxtecan and datopotamab deruxtecan jointly with AstraZeneca. In addition, the Group is developing patritumab deruxtecan, ifinatamab deruxtecan, and raludotatug deruxtecan jointly with Merck & Co., Inc., Rahway, NJ, USA (hereinafter “Merck in the U.S.”). a. Trastuzumab deruxtecan (T-DXd/DS-8201: HER2-directed ADC, brand name: Enhertu) The following describes the major progress in the first nine months of the year ending March 31, 2026. - In April 2025, the application was approved in Europe and the application for approval was accepted in China for chemotherapy naïve hormone receptor (HR) positive and HER2 low or HER2 ultralow breast cancer.
Page 9
6 - In April 2025, the Phase III clinical trial to evaluate triple combination therapy with fluoropyrimidine and pembrolizumab as the first line treatment for HER2 positive gastric cancer (trial name: DESTINY-Gastric05) was initiated. - In April 2025, the outline of the interim analysis data of the Phase III clinical trial for the first line treatment for HER2 positive breast cancer (trial name: DESTINY-Breast09) was presented. - In April 2025, the application for approval was accepted in Japan for HER2 positive advanced or recurrent multiple solid tumors. - In May 2025, the outline of the major analysis data of the Phase III clinical trial for neoadjuvant therapy of high-recurrence-risk HER2 positive early-stage breast cancer (trial name: DESTINY- Breast11) was presented. - In June 2025, the first data of the Phase III clinical trial for the second line treatment for HER2 positive gastric cancer (trial name: DESTINY-Gastric04) was presented at the American Society of Clinical Oncology (ASCO). - In June 2025, first data of the DESTINY-Breast09 clinical trial was presented at ASCO. - In June 2025, the Phase III clinical trial to evaluate combination therapy with rilvegostomig or pembrolizumab as the first line treatment for HER2 expressing (IHC 3+ or 2+) endometrial cancer (trial name: DESTINY-Endometrial01) was initiated. - In July 2025, the combination therapy with pertuzumab was granted Breakthrough Therapy Designation*4 by the U.S. Food and Drug Administration (FDA) for the first line treatment for HER2 positive breast cancer. - In August 2025, the application was approved in Japan for HR positive and HER2 low or HER2 ultralow breast cancer. - In September 2025, the application for approval was accepted in Europe for HER2 positive (IHC 3+) advanced or recurrent multiple solid tumors. - In September 2025, the application for approval for the combination therapy with pertuzumab was accepted and Priority Review Designation*5 was granted in the U.S. for the first line treatment for HER2 positive breast cancer. - In September 2025, the outline of the data of the Phase III clinical trial for HER2 positive breast cancer with residual invasive disease after neoadjuvant therapy and high risk of disease recurrence (trial name: DESTINY-Breast05) was presented. - In October 2025, the application for approval was accepted in the U.S. for the neoadjuvant therapy with high-recurrence-risk HER2 positive early-stage breast cancer. - In October 2025, the application for approval for the combination therapy with pertuzumab was accepted in Japan for the first line treatment for HER2 positive breast cancer. - In October 2025, the latest data for DESTINY-Breast05 clinical trial and DESTINY-Breast11 clinical trial was presented at the European Society of Medical Oncology (ESMO). - In October 2025, the Phase III clinical trial for the first line treatment for nonsquamous NSCLC with HER2 overexpression, no actionable gene mutations*6, and a PD-L1 TPS of <50% (trial name: DESTINY-Lung06) was initiated. - In December 2025, the randomized part of the Phase III clinical trial for the first line maintenance therapy for HER2 expressing (IHC 3+/2+/1+) ovarian cancer following treatment with platinum- based chemotherapy in combination with bevacizumab (trial name: DESTINY-Ovarian01) was initiated. - In December 2025, the application for the combination therapy with pertuzumab was approved in the U.S. for the first line treatment for HER2 positive breast cancer. - In December 2025, the Phase III clinical trial for the adjuvant therapy for HER2 expressing (IHC 3+ or 2+) endometrial cancer (trial name: DESTINY-Endometrial02) was initiated.
Page 10
7 - In December 2025, HER2 positive breast cancer with residual invasive disease after neoadjuvant therapy and high risk of disease recurrence was granted Breakthrough Therapy Designation by the FDA. - In December 2025, the application was approved in China for chemotherapy naïve hormone receptor (HR) positive and HER2 low or HER2 ultralow breast cancer. *4 A system designed to expedite the development and review of medicines that may demonstrate substantial benefit over currently available treatments in order to ensure that patients with serious diseases have access to new treatments as soon as possible. *5 In the U.S., a system designed for medicines that would be significant improvements in treatment or medicines that offer treatment to patients having currently appropriate treatment. If granted, the review period can be expected to be shorter (targeted 6 months), compared to standard applications review period (targeted 10 months). *6 Genetic mutations that can be currently targeted for cancer treatment. b. Datopotamab deruxtecan (Dato-DXd/DS-1062: TROP2-directed ADC, brand name: Datroway) The following describes the major progress in the first nine months of the year ending March 31, 2026. - In April 2025, the application was approved in Europe for the treatment of HR positive and HER2 negative (IHC 0, IHC 1+, or IHC 2+/ISH-) breast cancer after prior endocrine therapy and one or more chemotherapies. - In June 2025, the latest data for combination therapy with immune checkpoint inhibitors from the two Phase Ib clinical trials for the first line treatment for NSCLC without actionable gene mutations*6 (trial names: TROPION-Lung02, TROPION-Lung04) and from the Phase II clinical trial for neoadjuvant/adjuvant therapy (trial name: NeoCOAST-2) were presented at ASCO. - In June 2025, the application was approved in the U.S. for NSCLC with EGFR (epidermal growth factor receptor) gene mutations and prior treatment with EGFR-targeted therapy and platinum-based chemotherapy. - In August 2025, the application was approved in China for the treatment of HR positive and HER2 negative (IHC 0, IHC 1+, or IHC 2+/ISH-) breast cancer after prior endocrine therapy and one or more chemotherapies. - In October 2025, the outline of the final analysis data of the Phase III clinical trial for the first line treatment for triple negative breast cancer (TNBC) not eligible for immunotherapy (trial name: TROPION-Breast02) was presented. - In October 2025, the latest data for TROPION-Breast02 clinical trial was presented at ESMO. - In October 2025, the latest data for a cohort for the Phase II clinical trial for the first and second line treatment for urothelial carcinoma (trial name: TROPION-PanTumor03) was presented at ESMO. - In October 2025, the Phase II/III clinical trial for previously treated metastatic urothelial carcinoma (trial name: TROPION-Urothelial03) was initiated. - In December 2025, the application for approval for the first line treatment was accepted in Europe for TNBC not eligible for PD-1/PD-L1. c. Patritumab deruxtecan (HER3-DXd/U3-1402: HER3-directed ADC) The following describes the major progress in the first nine months of the year ending March 31, 2026. - In May 2025, the application for approval in the U.S. for EGFR-mutated NSCLC*7 was voluntarily withdrawn. - In June 2025, the first data from the Phase III clinical trial for the second line treatment for EGFR- mutated NSCLC (trial name: HERTHENA-Lung02) was presented at ASCO.
Page 11
8 - In August 2025, the Phase III clinical trial for unresectable or metastatic HR positive and HER2 negative (IHC 0, IHC 1+ or IHC 2+/ISH-) breast cancer (trial name: HERTHENA-Breast04) was initiated. *7 The application for approval was based on the results from the Phase II clinical trial (trial name: HERTHENA-Lung01). d. Ifinatamab deruxtecan (I-DXd/DS-7300: B7-H3-directed ADC) The following describes the major progress in the first nine months of the year ending March 31, 2026. - In April 2025, trial results were obtained from the Phase II clinical trial for the second or later line treatment for extensive-stage small cell lung cancer (trial name: IDeate-Lung01). - In May 2025, the Phase III clinical trial for the second line treatment for esophageal squamous cell carcinoma (trial name: IDeate-Esophageal01) was initiated. - In June 2025, the Phase III clinical trial for metastatic castration-resistant prostate cancer with no history of chemotherapy (trial name: IDeate-Prostate01) was initiated. - In August 2025, Breakthrough Therapy Designation was granted by the FDA for the treatment of extensive-stage small cell lung cancer with disease progression on or after platinum-based chemotherapy. - In September 2025, the latest data of the Phase II clinical trial for previously treated extensive-stage small cell lung cancer (trial name: IDeate-Lung01) was presented at the World Conference on Lung Cancer (WCLC). e. Raludotatug deruxtecan (R-DXd/DS-6000: CDH6-directed ADC) The following describes the major progress in the first nine months of the year ending March 31, 2026. - In September 2025, Breakthrough Therapy Designation was granted by the FDA for the treatment of patients with platinum-resistant epithelial ovarian, primary peritoneal or fallopian tube cancers expressing CDH6 who have received prior treatment with bevacizumab. - In October 2025, the first data of the Phase II part of the Phase II/III clinical trial for platinum- resistant ovarian and other cancers (trial name: REJOICE-Ovarian01) was presented at ESMO. 【Next Wave】 The following describes the major progress in the Next Wave in the first nine months of the year ending March 31, 2026. The status of each clinical trial is stated in the reference data. - In October 2025, the first data from the dose-escalation part of the Phase I/II clinical trial of DS-3939 (TA-MUC1-directed DXd ADC) for previously treated advanced solid tumors was presented at ESMO. - In November 2025, the Phase I clinical trial of DS3610 (STING agonist ADC) for advanced solid tumors was initiated. (2) Analysis of Financial Position as of December 31, 2025 - Total assets as of December 31, 2025 were JPY3,821.8 billion, an increase of JPY365.7 billion from the previous fiscal year-end, mainly due to increases in inventories, property, plant and equipment, and trade and other receivables, which were partially offset by a decrease in cash and cash equivalents. - Total liabilities as of December 31, 2025 were JPY2,111.3 billion, an increase of JPY278.6 billion from the previous fiscal year-end, mainly due to increases in bonds and borrowings (non-current
Page 12
9 liabilities), and contract liabilities (non-current liabilities), which were partially offset by an decrease in trade and other payables . - Total equity as of December 31, 2025 was JPY1,710.5 billion, an increase of JPY87.1 billion from the previous fiscal year-end, mainly due to profit for the period, which was partially offset by cash dividend payment and purchase of own shares (15.74 million shares at an aggregate purchase cost of JPY58.5 billion). - The ratio of equity attributable to owners of the Company to total assets was 44.8%, a decrease of 2.2 points from the previous fiscal year-end. (3) Information about Forecasts of Consolidated Financial Results and Other Forward-Looking Statements - There are no changes from the forecasts of consolidated financial results for the year ending March 31, 2026, which were publicly announced on October 31, 2025. (4) Information about Return to Shareholders - In order to secure sustainable growth in corporate value, one of the fundamental business policies of Daiichi Sankyo is to decide profit distributions based on a comprehensive consideration of the investments essential for implementing its growth strategy and returning profits to shareholders. - During the 5-Year Business Plan (fiscal 2021-fiscal 2025) period, the Company aims to maximize shareholder value by further enhancing shareholder returns through dividend increase in line with profit growth and flexible acquisition of its own shares. <Dividend increase in line with profit growth> - For fiscal 2024, the Company paid a year-end dividend of JPY30 per share on June 24, 2025. Accordingly, the annual dividend for the fiscal year, together with the interim dividend of JPY30 per share paid on December 10, 2024, was JPY60 per share in total. - For fiscal 2025, the Company intends to pay the annual dividend of JPY78 per share, an increase of JPY18 from the annual dividend of fiscal 2024 mainly due to the continued expected profit growth following further sales expansion of Enhertu. At the Board of Directors meeting held on October 31, 2025, the Company resolved to pay an ordinary dividend of JPY39 per share as an interim dividend and paid the interim dividend on December 10, 2025 to shareholders of record as of September 30, 2025. <Flexible acquisition of own shares> - In order to take flexible actions in response to the situation where the Company believes its future profitability is not fully reflected in its share price, the Company acquired 13.97 million own shares for the cost of JPY50.0 billion between March 3, 2025 to April 8, 2025, and canceled all the acquired shares on May 30, 2025. - Furthermore, the Company decided at the meeting of the Board of Directors held on April 25, 2025 to establish upper limits of JPY200.0 billion or 80 million shares from May 1, 2025 to March 24, 2026 for acquisition of its own shares in order to enable flexible acquisition of its own shares based on comprehensive consideration such as share price level and other factors.
Page 13
10 2. Condensed Interim Consolidated Financial Statements with Primary Notes (1) Condensed Interim Consolidated Statement of Financial Position (Millions of JPY) As of March 31, 2025 As of December 31, 2025 ASSETS Current assets Cash and cash equivalents 639,838 541,451 Trade and other receivables 619,101 695,951 Other financial assets 80,890 140,580 Inventories 514,910 651,209 Other current assets 47,443 66,032 Subtotal 1,902,183 2,095,225 Assets held for sale 7,250 – Total current assets 1,909,433 2,095,225 Non-current assets Property, plant and equipment 498,517 578,015 Goodwill 108,429 112,420 Intangible assets 235,839 243,808 Investments accounted for using the equity method 5,600 5,278 Other financial assets 139,175 141,148 Long-term advance payments 167,428 210,371 Deferred tax assets 305,019 359,881 Other non-current assets 86,675 75,662 Total non-current assets 1,546,685 1,726,586 Total assets 3,456,119 3,821,811
Page 14
11 (Millions of JPY) As of March 31, 2025 As of December 31, 2025 LIABILITIES AND EQUITY Liabilities Current liabilities Trade and other payables 579,957 568,500 Bonds and borrowings 399 403 Other financial liabilities 14,720 14,264 Income taxes payable 60,369 75,725 Provisions 5,804 24,621 Contract liabilities 67,956 72,983 Other current liabilities 24,825 22,055 Total current liabilities 754,032 778,554 Non-current liabilities Bonds and borrowings 100,933 300,151 Other financial liabilities 43,675 39,671 Post-employment benefit liabilities 1,559 2,258 Provisions 13,030 12,877 Contract liabilities 751,038 813,715 Deferred tax liabilities 11,066 11,701 Other non-current liabilities 157,365 152,331 Total non-current liabilities 1,078,670 1,332,707 Total liabilities 1,832,703 2,111,262 Equity Equity attributable to owners of the Company Share capital 50,000 50,000 Own shares (147,321) (156,328) Other components of equity 263,693 306,997 Retained earnings 1,457,044 1,509,879 Total equity attributable to owners of the Company 1,623,416 1,710,549 Total equity 1,623,416 1,710,549 Total liabilities and equity 3,456,119 3,821,811
Page 15
12 (2) Condensed Interim Consolidated Statement of Profit or Loss and Condensed Interim Consolidated Statement of Comprehensive Income Condensed Interim Consolidated Statement of Profit or Loss (Millions of JPY) Nine months ended December 31, 2024 Nine months ended December 31, 2025 Revenue 1,367,567 1,533,459 Cost of sales 321,459 366,606 Gross profit 1,046,107 1,166,853 Selling, general and administrative expenses 522,990 597,663 Research and development expenses 302,646 339,779 Other income 27,983 4,365 Other expenses 141 0 Operating profit 248,311 233,775 Financial income 31,231 39,532 Financial expenses 4,776 4,418 Share of profit (loss) of investments accounted for using the equity method 233 1,060 Profit before tax for the period 275,000 269,950 Income taxes 66,396 52,503 Profit for the period 208,603 217,446 Profit attributable to: Owners of the Company 208,603 217,446 Earnings per share Basic earnings per share (JPY) 109.65 117.34 Diluted earnings per share (JPY) 109.58 117.28
Page 16
13 Condensed Interim Consolidated Statement of Comprehensive Income (Millions of JPY) Nine months ended December 31, 2024 Nine months ended December 31, 2025 Profit for the period 208,603 217,446 Other comprehensive income Items that will not be reclassified to profit or loss Financial assets measured at fair value through other comprehensive income 2,069 4,355 Remeasurements of defined benefit plans (0) 0 Items that are or may be reclassified subsequently to profit or loss Exchange differences on translation of foreign operations 27,619 45,400 Cash flow hedges 886 77 Total other comprehensive income for the period, net of tax 30,574 49,834 Total comprehensive income for the period 239,178 267,280 Total comprehensive income attributable to: Owners of the Company 239,178 267,280
Page 17
14 (3) Condensed Interim Consolidated Statement of Changes in Equity Nine months ended December 31, 2024 (Millions of JPY) Equity attributable to owners of the Company Share capital Capital surplus Own shares Other components of equity Subscription rights to shares Exchange differences on translation of foreign operations Cash flow hedges Financial assets measured at fair value through other comprehensive income Balance as of April 1, 2024 50,000 1,962 (36,629) 560 243,928 (232) 39,742 Profit for the period – – – – – – – Other comprehensive income for the period – – – – 27,619 886 2,069 Total comprehensive income for the period – – – – 27,619 886 2,069 Purchase of own shares – (80) (191,703) – – – – Disposal of own shares – (17) 383 (44) – – – Dividend – – – – – – – Share-based compensation – 3,143 – – – – – Changes associated with losing control of subsidiaries – – – – – – – Transfer from other components of equity to retained earnings – – – – – – (7,385) Transfer to non-financial assets and similar items – – – – – (654) – Others – – – – – – – Total transactions with owners of the Company – 3,044 (191,320) (44) – (654) (7,385) Balance as of December 31, 2024 50,000 5,007 (227,950) 515 271,547 – 34,426 (Millions of JPY) Equity attributable to owners of the Company Other components of equity Retained earnings Total equity attributable to owners of the Company Non-controlling interests Total equity Remeasure- ments of defined benefit plans Total other components of equity Balance as of April 1, 2024 – 283,998 1,388,842 1,688,173 429 1,688,603 Profit for the period – – 208,603 208,603 – 208,603 Other comprehensive income for the period (0) 30,574 – 30,574 – 30,574 Total comprehensive income for the period (0) 30,574 208,603 239,178 – 239,178 Purchase of own shares – – – (191,784) – (191,784) Disposal of own shares – (44) – 320 – 320 Dividend – – (114,408) (114,408) – (114,408) Share-based compensation – – – 3,143 – 3,143 Changes associated with losing control of subsidiaries – – – – (429) (429) Transfer from other components of equity to retained earnings 0 (7,384) 7,384 – – – Transfer to non-financial assets and similar items – (654) – (654) – (654) Others – – 405 405 – 405 Total transactions with owners of the Company 0 (8,083) (106,618) (302,977) (429) (303,407) Balance as of December 31, 2024 – 306,489 1,490,827 1,624,374 – 1,624,374
Page 18
15 Nine months ended December 31, 2025 (Millions of JPY) Equity attributable to owners of the Company Share capital Capital surplus Own shares Other components of equity Subscription rights to shares Exchange differences on translation of foreign operations Cash flow hedges Financial assets measured at fair value through other comprehensive income Balance as of April 1, 2025 50,000 – (147,321) 424 228,137 – 35,130 Profit for the period – – – – – – – Other comprehensive income for the period – – – – 45,400 77 4,355 Total comprehensive income for the period – – – – 45,400 77 4,355 Purchase of own shares – (52) (58,492) – – – – Disposal of own shares – – 350 (11) – – – Cancellation of own shares – (5,961) 48,971 – – – – Dividend – – – – – – – Share-based compensation – 6,013 164 – – – – Transfer from other components of equity to retained earnings – – – – – – (6,440) Transfer to non-financial assets and similar items – – – – – (77) – Others – – – – – – – Total transactions with owners of the Company – – (9,006) (11) – (77) (6,440) Balance as of December 31, 2025 50,000 – (156,328) 412 273,538 – 33,046 (Millions of JPY) Equity attributable to owners of the Company Other components of equity Retained earnings Total equity attributable to owners of the Company Total equity Remeasure- ments of defined benefit plans Total other components of equity Balance as of April 1, 2025 – 263,693 1,457,044 1,623,416 1,623,416 Profit for the period – – 217,446 217,446 217,446 Other comprehensive income for the period 0 49,834 – 49,834 49,834 Total comprehensive income for the period 0 49,834 217,446 267,280 267,280 Purchase of own shares – – – (58,544) (58,544) Disposal of own shares – (11) (67) 271 271 Cancellation of own shares – – (43,009) – – Dividend – – (128,527) (128,527) (128,527) Share-based compensation – – – 6,177 6,177 Transfer from other components of equity to retained earnings (0) (6,440) 6,440 – – Transfer to non-financial assets and similar items – (77) – (77) (77) Others – – 553 553 553 Total transactions with owners of the Company (0) (6,529) (164,610) (180,147) (180,147) Balance as of December 31, 2025 – 306,997 1,509,879 1,710,549 1,710,549
Page 19
16 (4) Condensed Interim Consolidated Statement of Cash Flows (Millions of JPY) Nine months ended December 31, 2024 Nine months ended December 31, 2025 Cash flows from operating activities Profit before tax 275,000 269,950 Depreciation and amortization 50,668 56,336 Impairment losses (reversal of impairment losses) 2,014 1,686 Financial income (31,231) (39,532) Financial expenses 4,776 4,418 Share of (profit) loss of investments accounted for using the equity method (233) (1,060) (Gain) loss on sale and disposal of non-current assets (2,035) 1,392 (Increase) decrease in trade and other receivables (156,813) (42,304) (Increase) decrease in inventories (34,298) (114,287) (Increase) decrease in long-term advance payments (51,680) (42,942) Increase (decrease) in trade and other payables (17,108) (41,628) Increase (decrease) in contract liabilities 82,766 67,407 Others, net (65,066) 32,101 Subtotal 56,757 151,537 Interest and dividend received 18,036 16,232 Interest paid (913) (1,321) Income taxes paid (92,156) (114,702) Net cash flows from (used in) operating activities (18,275) 51,745 Cash flows from investing activities Payments into time deposits (38,046） (128,505) Proceeds from maturities of time deposits 349,475 26,749 Acquisition of securities (139,013) (71,148) Proceeds from sale and redemption of securities 316,035 124,075 Acquisition of property, plant and equipment (79,854) (97,960) Proceeds from sale of property, plant and equipment 490 15 Acquisition of intangible assets (46,949) (18,168) Proceeds from sale of subsidiaries and affiliates 5,250 7,250 Payments for loans receivable – (1) Proceeds from collection of loans receivable 17 0 Others, net (304) (2,016) Net cash flows from (used in) investing activities 367,101 (159,711)
Page 20
17 Nine months ended December 31, 2024 Nine months ended December 31, 2025 Cash flows from financing activities Proceeds from bonds and borrowings – 300,000 Repayments of bonds and borrowings (299) (100,301) Purchase of own shares (191,784) (58,544) Proceeds from sale of own shares – 0 Dividend paid (114,402) (128,543) Repayments of lease liabilities (12,771) (11,679) Others, net 0 (515) Net cash flows from (used in) financing activities (319,258) 415 Net increase (decrease) in cash and cash equivalents 29,567 (107,549) Cash and cash equivalents at the beginning of the period 647,180 639,838 Effect of exchange rate changes on cash and cash equivalents 5,399 9,162 Cash and cash equivalents at the end of the period 682,148 541,451
Page 21
18 (5) Notes to Condensed Interim Consolidated Financial Statements Going Concern Assumption Not applicable. Changes in Presentation (Condensed Interim Consolidated Statement of Financial Position) "Long-term advance payments", which had been included in "Other non-current assets" under non-current assets in the previous consolidated fiscal year, has been disclosed separately from the first quarter of the fiscal year ending March 31, 2026, since the monetary significance has increased. To reflect this change in presentation, the Consolidated Statement of Financial Position as of March 31, 2025 has been reclassified on a consistent basis. As a result, a portion of the amounts reported in "Other non-current assets" under non-current assets as of March 31, 2025 amounting to JPY167,428 million, has been reclassified as "Long-term advance payments" under non-current assets. (Condensed Interim Consolidated Statement of Cash Flows) “(Increase) decrease in long-term advance payments”, which had been included in “Others, net” under cash flows from operating activities in the previous consolidated fiscal year, has been disclosed separately from the first quarter of the fiscal year ending March 31, 2026, since the monetary significance has increased. To reflect this change in presentation, the Condensed Interim Consolidated Statement of Cash Flows for the first nine months of the fiscal year ended March 31, 2025, has been reclassified on a consistent basis. As a result, a portion of the amounts reported in " Others, net" under cash flows from operating activities in the Condensed Interim Consolidated Statement of Cash Flows for the first nine months of the fiscal year ended March 31, 2025 amounting to JPY(51,680) million has been reclassified as "(Increase) decrease in long-term advance payments” under cash flows from operating activities. Operating Segment Information Disclosure is omitted as the Group has a single segment, “Pharmaceutical Operation”.