We aim for remarkable growth as a truly global company by steadily

Please tell us about your current state of mind and

aspirations upon assuming the position of President and COO,

as well as your experience and accomplishments to date.

I am very excited to take on the important responsibility of

serving as President and COO of Daiichi Sankyo, a company

built upon so many people’s hearts and minds, and to work

with Dr. Manabe, Executive Chairperson and CEO, to manage the

Company from April 1, 2023. Daiichi Sankyo Group has raised its

revenue expectation from ¥1.6 trillion to ¥2 trillion for FY2025,

the final fiscal year of the current 5-year business plan, in light

of the rapid growth of the oncology business, which we entered

in earnest by launching

Enhertu

in FY2020. Furthermore, I place

high expectations on the ADCs that are under development. I find

it extremely rewarding to be appointed President at this juncture,

and we will make a concerted effort to achieve the targets of the

current 5-year business plan and realize our 2030 Vision.

I joined Sankyo Company, Limited in 1986 and was subse-

quently involved in the negotiation of the business integration

between Daiichi Pharmaceutical and Sankyo. I also worked on

the acquisition of India-based Ranbaxy as well as the work that

followed that acquisition and as the head of the Asia and Latin

America region I focused on strengthening our business opera-

tions in China. I was also in charge of corporate strategy, human

resources, and served as CFO. My favorite quote from Mahatma

Gandhi, which I learned when I was in charge of the India busi-

ness, is “Live as if you were to die tomorrow. Learn as if you were

to live forever.”

I believe that my specialty is in providing “coaching lead-

ership.” Rather than giving out answers, I am a leader who

supports employees by helping them come up with their own

answers through dialogue. I would like to lead the Group by

leveraging this specialty to fully harness the inherent strengths

We aim for remarkable

growth as a truly global

company by steadily

achieving the targets of the

current 5-year business plan

to realize our 2030 Vision

COO Interview

Hiroyuki Okuzawa

Representative Director

President and COO

DAIICHI SANKYO GROUP VALUE REPORT 2023

◉ Identify and build pillars for further growth

It is important to make effective investments in subsequent

ADC products as well as to develop growth strategies in disease

areas where there are no effective treatments, such as rare

diseases, or where existing therapeutic drugs are not sufficiently

effective, in order to ensure future sustainable growth. Looking

ahead to 2030 and beyond, we will fully leverage our strengths

in Science & Technology and continue making investments to

continually produce pharmaceuticals that will fulfill new modal-

ities and unmet medical needs. With the progress in the devel-

opment of

DS-7300

(anti-B7-H3 ADC) and

DS-6000

(anti-CDH6

ADC), which are DXd-ADCs featuring the same linker and drug as

Enhertu

and are expected to be the next growth driver following

3ADCs, we advanced from our previous R&D strategy, “3ADCs

and Alpha” to “5DXd-ADCs and Next Wave.” In addition, we are

also making progress in selecting post DXd-ADC modalities,

including 2nd generation/new-concept ADCs.

Finally, please tell us your thoughts on creating shared value

with the Group’s stakeholders.

In addition to patients and their families, who are the most im-

portant stakeholders of the Group, we are working on creating

shared value with our shareholders/investors, society, and

employees as a pillar of our current 5-year business plan to

promote ESG management, while also ensuring alignment with

our Purpose.

Last year, we invited a person who had returned to their

work after overcoming cancer treatment to our in-house

lecture in order to foster a patient centric mindset among our

employees. After hearing the guest saying, “I want to live as

long as possible, because I believe that a better treatment will

be discovered in the process,” I reaffirmed the fact that we are

creating hope, while also further strengthening our commit-

ment to our Purpose of “Contribute to the enrichment of quality

of life around the world.”

I tell our employees that I want them to find the overlap

between the Group’s Purpose and their own personal purpose

and vision. Furthermore, shareholders and investors who agree

with our Purpose and support us with a long-term perspective

will always be essential to the Group as we create innovative

pharmaceuticals, and I sincerely hope that they will continue to

support our initiatives to enhance our corporate value. Finally,

we would like to continue our efforts to become a company that

is recognized as an indispensable presence in society.

COO Interview

and potential of our employees. In addition, I will continue to

actively engage with our stakeholders and manage the Company

together as a team.

Please tell us about what you would like to focus on to ensure

the sustainable growth of the Group, based on your view of

the current challenges and status of initiatives.

We are actively strengthening our global business by expanding

oncology business, which is driving new growth, and we are

becoming known as a Global Pharma Innovator with Competitive

Advantage in Oncology with the growth of

Enhertu

. We are

attracting talent from within the pharmaceutical industry, both

in Japan and outside of Japan, thanks to our superior products,

rich R&D pipeline and unique culture. I saw this as an excellent

opportunity to strengthen our global business structure, and

began to develop a shared global human resource (HR) frame-

work that would enable our talented employees, including those

from outside of Japan, to utilize their expertise, sustain motivation

and achieve results. To this end, we have initiated a global project

team that collaborates across different units, local subsidiaries

and workplaces, and will proceed with establishing a globally uni-

fied target performance management process, global job grading,

and HR information system, while benchmarking the systems of

mega-pharmaceutical companies in Europe and the US.

We are also working to globalize our corporate functions. In April

2023, we shifted to the structure in which a global head linking

each function to each region leads the corporate functions in Japan,

the US, and Europe. Personnel for high-level positions in each cor-

porate function will be assigned without regard to age or nationality

through a highly transparent selection process.

Furthermore, as we globalize our HR system, we will renew

our ERP (Enterprise Resources Planning) system and complete

“Project 4D (Daiichi Sankyo Data-Driven Decision Making)” to

implement data-driven management that will enable prompt and

accurate decision making on a global scale.

What is important is to enhance our strengths in Science &

Technology with our human resources, core technologies and

corporate culture as we expand our value chain globally in

order to pursue Daiichi Sankyo’s distinct characteristics. We will

continue spreading the One DS Culture and be a company where

employees want to continue to work. I would like to carry on

the senior management’s exceptionally strong trust in the R&D

organization, which has been present in every generation of our

company to date.

▶ For more information on globalization initiatives, please refer to P21

Please tell us about the Group’s growth strategy and

initiatives aimed at achieving the goals of the current 5-year

business plan, with a focus on the particularly important

initiatives to take on in the current fiscal year.

◉ Maximize 3ADCs

First and foremost, our most important theme is to maximize

3ADCs, and I would like to make FY2023 a year to help healthcare

professionals and patients around the world better understand

and experience the value provided by

Enhertu

by expanding the

indications and the marketed countries and regions. For

Dato-DXd

and

HER3-DXd

, we will execute their respective development plans

under a global structure with strong functional collaboration.

Enhertu

is expanding at a faster pace than originally planned

thanks to the approval for new indications such as for the

second-line treatment of HER2 positive metastatic breast cancer

and HER2 low metastatic breast cancer (post-chemotherapy

treatment). We need to make a firm commitment to ensure a

stable supply of the product. For patients who need our products,

including

Enhertu

, we will improve the accuracy of our demand

forecasting and efficiently and gradually expand our supply

capacity and personnel in line with product potential.

In addition, with a view to 2030 and beyond, we will constantly

update and optimize our development plans and flexibly reallo-

cate resources. I believe that now is the perfect time to create a

sustainable growth cycle for the next 15 to 20 years, and we will

use the cash flow generated by

Enhertu

to reinvest in R&D and

capital investment for new ADCs to achieve exponential growth.

◉ Profit growth for current business and products

Although the oncology business is growing rapidly thanks to

Enhertu

, the current growth of the Group is fundamentally

supported by existing businesses and products, including the

anticoagulant

Lixiana

and the pain treatment

Tarlige

. We will

ensure further profit growth in these existing businesses and

products. In particular, the product value of

Lixiana

has improved

with the addition of new dosage and administration, and we will

strive to further expand our market share in each market. In ad-

dition, we will take on the challenge of expanding the number of

countries and regions where our cholesterol-lowering treatment

Nilemdo

Nustendi

is available in Europe, increasing sales of our

iron injection business in the US, and growing our business in

China and other ASCA countries and regions, while also continu-

ing to enhance transformation into a profit structure focused on

patented drugs that are advancing steadily.

• Data-driven management through DX, and company-wide transformation through advanced digital technology

• Agile decision making through new global management structure

Maximize 3ADCs

Proﬁt growth for current

business and products

Identify and build pillars

for further growth

Create shared value

with stakeholders

• Revenue: ¥1,600.0 billion (Oncology business revenue: ¥600.0 billion or more) • ROE: 16% or more

FY2025 Financial Targets

Achieve FY2025 Target

“Global Pharma Innovator with Competitive Advantage

in Oncology” and Shift to Further Growth

• Core operating profit*

ratio before R&D expenses: 40% • DOE*

: 8% of more

• Maximize Enhertu and

Dato-DXd through strategic

alliance with AstraZeneca

• Maximize HER3-DXd without a

partner

• Expand work force and supply

capacity flexibly depending on

changes around product

potential

• Maximize Lixiana profit

• Grow Tarlige, Nilemdo, etc.

quickly

• Transform to profit structure

focused on patented drugs

• Profit growth for American

Regent, Inc. and Daiichi

Sankyo Healthcare Co., Ltd.

• Identify new growth drivers

following 3ADCs

• Select post DXd-ADC

modalities

• Patients: Contributing to patients

through patient centric mindset

• Shareholders: Balanced

investment for growth and

shareholder returns

• Society: Environment load reduc-

tion across the value chain, and

actions against pandemic risks

• Employees: Create One DS

Culture through fostering our

Core Behaviors

*1 Excluding temporary income and expenses (gains/losses related to sales of fixed assets etc.) from operating income

*2 DOE: Dividend on Equity = Total dividend amount / Equity attributable to owners of the company

15 16

DAIICHI SANKYO GROUP VALUE REPORT 2023 DAIICHI SANKYO GROUP VALUE REPORT 2023