Investor Update

Apr 5, 2021

Slides

Now we would like to start the presentation of Daiichi Sankyo's new five year business plan. I'm Junichi Onuma from the corporate communications department, and I'm delighted to serve as the emcee today. Thank you for your time. Today, our president and CEO, Suneo Manabe, will make the presentation. And following the presentation, we will have time to take your questions. Please note that the Q and A session will be recorded. Thank you for your understanding. Now I'd like to hand it over to CEO, Manabe san. Hello, colleagues. My name is Ron Manabe, and I am the president and CEO of Daishankyo. I'm here to present our new five year business plan today. Thank you for joining this session. I will use the deck that is now posted on our corporate website. Please see slide three. Today, I present Dai Sankyo's environment, social, and governance or ESG management. Our 2030 vision, recap of our previous five year business plan, and then our new five year business plan. Please see slide four. I would like to start the presentation by stating that we'll focus even more on ESG management going forward. In today's society, the importance of providing value that leads to a sustainable society has been widely recognized. And the importance of ESG activities have been increasing year by year. In the past, you are able to explain most of the value for a company by the financial value captured through financial statements. But as you all know, corporate value can no longer be estimated just by financial value. In other words, the importance of nonfinancial value that cannot be read solely through financial statements is widely recognized. For the Sankyo, we define nonfinancial value and the value of our innovative r and d pipeline and the value created through contribution to our stakeholders, investors, employees, and other stakeholders, and society and natural environment. There is a growing need for us to provide value at all levels, financial and nonfinancial. In this context, we define ESG management as management based on the long term perspective that enhances both financial and nonfinancial value by reflecting ESG elements in business strategies. We believe that such a long term focus on management translates into sustainable growth of both our company and society. Through the COVID nineteen experience, I have reaffirmed that ESG management is essential for ensuring sustainable growth. This slide describes our value creation process and our ESG management. Our purpose is to contribute to the enrichment of quality of life around the world And by accomplishing the mission, creation of innovative pharmaceuticals and provision of pharmaceuticals addressing diverse medical needs, We deliver value for sustainable society. Society expects us to address unmet medical needs and supply high quality pharmaceutical products among other values. In order to meet these expectations, we invest a variety of internal and external management resources and create value for each stakeholder and society with science and technology as our greatest competitive advantage. This value creation process is designed for ESG management. And, therefore, by circulating the process, we should achieve both sustainable growth of the company and of society as a whole. We have identified the key issues that need to be addressed for sustainable growth and selected them as a materiality. I will explain the detail in the following slide. Please see slide five. From the perspective of both importance of the impact on our mid to long term corporate value and the expectations of society, including various stakeholders, we have identified the key issues for fulfilling our purpose. Through discussions with internal and external members at board meetings, we have identified eight materiality and organized them into materiality related to the business and materiality related to business infrastructure. Although we have identified four materiality as related to our business, creating innovative pharmaceuticals, the most important materiality in our sustainable growth strategy for establishing a competitive advantage. In addition, we have identified four materiality related to our business infrastructure and have recognized that conservation of the global environment and measures against climate change, which are the foundation of life activities and the base for living, are extremely important for us to operate sustainably and to grow our business. We also recognize that demands from society are high in this area, and we are actively engaged in environmental management. We believe that the value we provide to our stakeholders and society through our value creation process is linked to SDGs goal number three, health and welfare for all, which is one of the United Nations' sustainable development goals. In addition, we believe that our efforts around materiality will also contribute to the various SDGs shown on this slide. In addition, although not included in today's presentation due to time limitation, we have established KPIs for each materiality and posted them on our corporate website today. We'll set up another opportunity for discussion of these KPIs later this year. Please see page six. Next is our 2030 vision. This session describes the future external environment that we assume when we aim for sustainable growth to ESG management, the role that we play there. Proceed slide seven. There are a variety of life journeys during an individual's lifetime. Recently, wearable devices and similar type of devices are widely used, making it easier for people to grasp and manage their own health conditions. Such technologies are likely to become increasingly prevalent in the future. By analyzing and diagnosing individual health care data and medical data together with big data on the DX platform using digital technology. We predict that an era where people will be able to receive recommendation for health care solutions based on their individual health status. A detailed transformation progresses. A variety of health care solutions will be provided by different emerging industries such as companies that have strength in IT and digital technology. Pharmaceutical companies are forming alliances with such companies will provide additional value that contribute to the personal health management. Our target is to be a company that contribute to the enrichment of quality of life around the world by providing optimal modalities created through our science and technology, including messenger RNA, gene therapy, cell therapy and digital as one of the treatment solutions. Based on the above environmental awareness and the values we aim to provide, the next slide shows our two thousand and thirty vision, a company that we want to be in ten years from now. Please see Thrive eight. Our three thousand thirty vision is to be an innovative global health care company contributing to the sustainable development of society. To realize our purpose, we aim to address the social issues that we are expected by society to solve through our business activities such as the creation of innovative pharmaceuticals and efforts for achieving the SDGs. We challenge ourselves to continuously provide innovative solutions based on our strength, science and technology. Proceed Slide 10. This is a recap of the previous five year business plan. I will present the major progress made in each of the six strategic targets and then shareholder returns. The previous five year business plan, we have made significant progress, especially in establishing our oncology business. Proceed Slide 11, summary of the progress for one of the six strategic targets. Established oncology business is shown on this slide. The launch of EHA2 during the previous five year business plan was a remarkable achievement. As for the first indication, third line treatment for HER2 plus breast cancer, we were able to obtain approval and launch the product in The U. S. Within only four years after three months from the initiation of clinical study. Subsequently, Eneha two launched in Japan and was approved in Europe this January. We are currently preparing for the launch in Europe. Furthermore, we were able to gain new indications very quickly. We received approval for third line treatment of HER2 plus gastric cancer in Japan and launched. We received approval for second line treatment for gastric in The US with the same data that was submitted in Japan. In addition, the two strategic alliance with AstraZeneca for Inhat two and Datadxd were both significant achievement. The alliance with AstraZeneca have enabled us to develop optimal strategies to maximize the value of two ADCs. Visible achievements from the alliance are upfront payments and development milestones and expansion of the original development plans. In addition, we are building expertise across the entire value chain from the alliance with a company that is very competitive in the oncology area. Current development status of the three ADCs is shown in the right hand box. When the previous five year business plan started in April 2016, we didn't even have Phase I result for EHA2. After five years, currently, 40 Phase III and Phase II registration studies are ongoing for three ADCs. Next is Slide 12. I would also like to briefly review the progress made for other strategic targets and shareholder returns. As for 08/2007, Lixiana, we achieved number one market share in Japan. The market share in Europe and the Asian countries are growing steadily. We achieved consolidated annual revenue target of 100,000,000,000 yen, two years ahead of plan, and Lixia is growing substantially as our lead product. And for our Japan business, we achieved number one share in terms of revenue for four consecutive years since fiscal year twenty sixteen. We have also launched competitive in house product such as Talige and acquired attractive new product such as Emgality, a view that we have demonstrated our presence as number one company in Japan. As for our US business, the fact that clinical development of Tarinje did not proceed as planned, which resulted in our exit from the pain business, has a negative impact on achieving our revenue target. On the other hand, the growth of American Legion and the successful launch of EYHA2 in The U. S. Were extremely important achievement. We now have a good base to expand our US business during the new five year business plan, especially with EHA2. As for the fourth strategic target, continuous deterioration of innovative drugs, the value of our late stage pipeline increased substantially, particularly for three ADCs. In addition, good progress has been made around drug discovery, utilizing a variety of modalities beyond ADC, particularly for nucleic acid, cell therapy and gene therapy. As for enrichment of profit generation capabilities, we have optimized manufacturing and R and D structure globally, optimized commercial structure in The U. S. And EU, and diverse non core assets as well. However, the critical development of three ADCs has progressed substantially beyond expectations, and additional investment were made. That led to us not meeting profit targets for the previous five year business plan. On the other hand, given the steady progress being made in the commercialization and development of three ADCs, we are planning for significant profit growth as well as our new five year business plan. I will come back to this topic later. As for shareholder returns, we believe we have accomplished our initial commitments with a total return ratio of more than 100%, total JPY 200,000,000,000 of acquired treasury shares and increased dividends. Please see Slide 13. This section describes financial targets for the previous five year business plan. As mentioned earlier, the financial targets were revised in fiscal year twenty eighteen. On the fiscal year twenty twenty, targets were forwarded by two years due to the exit from paying business and aggressive investment for ADCs. Next slide, 14. As a result of being highly evaluated in the market, particularly our legacy pipeline. Our share price has increased dramatically over the last five years. Accordingly, our market cap has risen substantially reaching top 10 among all listed companies in Japan. Please see Slide 15. Now our new five year business plan. Please see Slide 16. This slide illustrates our positioning of our new five year business plan for ensuring sustainable growth. As our oncology business has steadily launched, we are confident that we can realize our 2025 vision of being a global pharma innovator with a competitive advantage in oncology. Our new five year business plan that covers fiscal year twenty twenty one through fiscal year twenty twenty five is a business plan designed to realize our 2025 vision and to shift Terra's growth stage geared to achieve our 2030 vision under ESG management. The specific company that strived to be in 2,030 is global top 10 in terms of oncology revenue. Having additional pillars as source of growth, new products being source of profit in each business unit and contributing to the sustainable development of society through our business. Let me now take you through the financial targets and the strategic pillars for our new five year business plan. Please see Slide 17. First, the financial targets for fiscal year twenty twenty five are consolidated revenue of 1,600,000,000,000.0 yen of which the revenue from oncology will be more than 600,000,000,000 yen operating profit ratio before R and D expense of 40% and ROE of 16% or more. We will adapt dividend on equity, DOE, as a KPI for shareholder returns going forward. Our target is DOE of 8% or more in fiscal year twenty twenty five. We have established four strategic pillars for our new five year business plan. The first strategic pillar is to maximize three ADCs. We will maximize n r two and DatadxD through the strategic alliance with AstraZeneca and Enhertu and DxD will be maximized without a partner. We will efficiently and gradually expand the workforce and supply capacity depending on changes around the product potential. The second strategic pillar is profit growth for current business and products. For the products, we will grow Lixiana, Tarizia, and Nidemuto. We will secure source of investment for sustainable growth by transforming to profit structure focused on patented drugs and securing high level profitability in each region. In addition, we will target further profit growth for American Vision and DaiSankyo Health Care. The third strategic pillar is to identify and build pillars for further growth. Our target is to identify the new growth drivers following three ADCs and to select and advance promising post DXD ADC modality through multi modality research strategy during the new five year business plan in order to achieve sustainable growth. The fourth strategic pillar is to create shared value with stakeholders. For initiatives having been identified as high priority during the new five year business plan to advance ESG management from a long term perspective. For our relationship with patients, we will further contribute to patients through patient centric mindset. For our relationship with stakeholders and investors, we will balance investment for growth and shareholder returns. For our relationship with society, we will reduce environment load and grow the entire value chain and take actions against pandemic risks. In addition, as our oncology business expands, we will define and foster global core behaviors in order to build a unified culture and to further enhance our organization and engagement of our people on a global basis. To support the execution of our four strategies, we will implement data driven management through advancing digital transformation, and we'll also advance company transformation with digital technology. In addition, we will implement agile decision making through our new global management structure. Please see Slide 18. I will present the details of our strategic pillars from here. The first strategic pillar is to maximize three ADCs. Proceed Slide 19. As for three ADCs, which are the growth drivers for our new five year business plan, we will maximize the product value by providing new safe and effective treatment solutions to change SOCs for more patients, especially for breast cancer and non small cell lung cancer. With respect to ENHAN two, we will accelerate our efforts around market penetration and new indications through the strategic collaboration with AstraZeneca. We have built a very firm relationship with AstraZeneca. In addition, we will establish advantage over competitive products and will firmly establish how to law expression concept for the treatment of breast cancer through providing high quality information based on evidence gathered through clinical trials and clinical research to health care professionals. As for Datto DXD, our target is to obtain approval and additional indication as quickly as possible through our alliance with AstraZeneca. We will maximize product value by establishing and implementing an effective launch plan and by establishing advantage over competitive products. For R3DXD, we will launch as fast as possible through our in house development utilizing the expertise and business infrastructure in oncology that we have gained and strengthened through the development and commercialization of NR2 and Datadx3. After having developed and implemented an effective launch plan, our goal is to establish HER3 as a cancer treatment target and to provide cancer patients with new safe and effective treatment option. In addition, we will deliver the product to more patients safely and effectively by promising appropriate use of the product through ILD monitoring and risk analysis, and by efficiently and gradually expanding the workforce supply capacity depending on changes around the product potential. Please see Slide 20. This is the launch plan for three ADCs. We have launched NHA-two for third line R2 plus breast cancer and second and third line R2 plus gastric cancer. Approval for these indications were based on data from DESTINY Breast one and DESTINY Gastric one studies. During our new five year business plan, we are planning for additional launches by conducting multiple pivotal studies shown on this slide. For EHA2, how to lower breast cancer, second line, how to positive breast cancer and indications for multiple cancer types, such as gastric, lung and colorectal cancers. Lung cancer will be the launch indication for both Datto DXD and HAR3DXD. Beyond fiscal year 2026, will apply to obtain approval for broader cancer types and treatment lines for each product, which we believe will lead to maximizing the value of three ADCs. Next is Slide 21. When we achieve the plans on the previous slide, we will be able to provide as a one off three ADCs treatment for major subtypes of breast cancer and non small cell lung cancer within the next five years. Beyond fiscal year 2026, we will accelerate development further so that we can contribute to many more patients with additional new indication. Please see Slide 22. The slide is about enhancing ADC supply. Considering the launch plan for three ADCs and the development of following DX3 ADCs, We will make capital investments of up to 300,000,000,000 yen during our next five year business plan to expand supply capacity of our ADCs. The timing of investment based on demand is shown by factory icon on this slide. I would like to note that the scale of investment varies by each icon. Under this plan, we will enhance our global supply chain with resilience that can maintain stable supply of products in terms of natural disasters, pandemic and other contingencies. Please see Slide 23. Oncology revenue target is shown on this slide. Our target is revenue of more than 600,000,000,000 yen in oncology in fiscal year twenty twenty five by maximizing three ADCs. The graph is an image of revenue growth during our new five year business plan, and the two growth drivers after fiscal year twenty twenty five are Enhertu and DataDirectory. Next is Slide 24. The second strategic pillar is profit growth for current business and products. Profit growth for current business and products during our new five year business plan will be extremely important as we continue to invest for sustainable growth. Proceed Slide 25. I will first touch on profit growth for our anticoagulant, LICSEANE. We will leverage the momentum gained from the previous five year business plan to bring consolidated annual revenue to 200,000,000,000 yen at the earliest timing and will target for peak annual revenue of more than $220,000,000,000 yen Major investment in this product has been made and we expected this highly profitable product to generate stable profit during our new five year business plan. Now Slide 26. This slide describes our plan for quick growth of the new products, such as pain therapy agent, Tarizure, and cholesterol lowering treatment, Nirendo. We plan to grow through obtaining additional indication as well, such as central uropathic pain for Tarige and ischemic stroke for our antiplatelet agent, Effient. We will pass through quick growth of Emgality prophylaxis of migraine attacks, leveraging the high product potential. We also expect to expand indication for the cholesterol lowering treatment Nuremudo and Nastandi in Europe through the ongoing cardiovascular event prevention trial. Through the growth of these new products, we will also aim to achieve sustainable growth in our business outside of oncology. Moreover, our goal is to achieve profit growth in all of our current business and products by growing revenue for our highly profitable products such as FUN and Taroje in addition to Lixiana. Please see Slide 27. Your new five year business plan, we aim to transform ourselves into a business structure that supports sustainable profit growth through transformation to patented product based profit structure in each region. In The US and Europe, we will further strengthen our patented product based profit structure with the aim of achieving patented drug ratio of approximately 100% by fiscal year twenty twenty five. The ratio of oncology drug will also rise in each region. Growth of products such as Lexiana and Nilemdol is also extremely important in Europe, and we will aim to achieve our targets for the products with high priority. Please see Slide 28. The ratio of patented drugs versus off patent drugs will also increase in Japan. As for ASCA, AGA and South And Central America, we aim to shift to a patented product based profit structure over a longer term by assessing the business environment in each country. In fiscal year twenty twenty five, we are expecting the ratio of patented drug in Japan to be approximately 80%, Rasca approximately 45%. On Slide 29, American region is already making significant contribution to our consolidated profit. And our plan calls for American region to continue the contribution to generating funds for investment towards our sustainable growth through increasing revenues for injectable and generic injectable products during the next five year business plan. Leveraging the high expertise around injectable iron and the ability to provide stable supply of top quality generic injectable products, our view is that American regen products will continue to be a part of the treatment solutions we provide in The U. S. Our new five year business plan calls for Dai Sankyo Healthcare to contribute to generating fund for our growth investment through expanding Japan domestic in store sales and online business. We believe that the Sankyo Healthcare products will also be a part of the treatment solution we provide in the future, drilling on the strength in multiple categories such as OTC, skin care and oral care. From Slide 30, I will cover the third pillar of our strategy, identify and build pillars for further growth. Proceed Slide 31. In order to achieve sustainable growth, it is essential that we continuously generate products and modalities that will be the pillars for our growth after three ADCs. From the projects in early clinical phase and from the multiple modalities that are planned to enter clinical phase during our new five year business plan, we will identify the post three ADC growth drivers and select and advance the promising modalities that will become post DX ADC growth drivers. Please see Slide 32. We believe that the post-3ADC growth drivers can be identified from the four areas shown on this slide. One is the DXD ADC family, which as we noted last December at R and D Day, include DS7300 with confirmed early efficacy. Our expectations are high on GX7300, including the fact that B7A3 is expressed in a wide variety of types of cancer. In addition, there are several attractive candidates for second generation ADC, new concept ADC and modified antibody, and we will accelerate the development of each project. We also have the EMA family, aside from 5,141, we have several other projects for Duchenne muscular dystrophy, and there are several projects for other rare diseases. Non clinical work is underway and we will move them to the clinical as quick as possible. Next is Slide 33, technology development for our new modalities are also underway. I will not discuss in detail today that from this fiscal year onward, multiple projects using new modality technologies are planned to enter the clinic. We are also working on in house manufacturing technology development for these modalities to be prepared for emerging needs in the future. As for LNP messenger RNA, our plan is to utilize this modality for non pandemic vaccines, that is vaccines for non infectious diseases as well. Our view is that vaccines are an important part of the treatment solution we provide in the future. To see Slide 34, the fourth pillar of our strategy is create shared value with stakeholders. This section describes the initiatives for our stakeholders, patient, society and environment and our employees. Please see Slide 35. We have put the patient at the center of our work at all times. For example, we have been engaging in activities to incorporate the voices of patients in drug development, such as better understanding MMDs through interaction with patient associations and reflecting them to clinical development plan. We have also been engaging in social contribution activities such as donations for patient association and volunteer activities. Going forward, we will develop new drug formulations that consider patients' perspective, in addition to orally disintegrating tablets that we are providing for many of our products and will provide easier to understand and more accessible safety information. Through these activities, we will further incorporate patient centric mindset into the entire value chain. In our new five year business plan, patient centric mindset will become even more important for us as three ADCs expand to various types of cancer and our activities in alpha target, more rare diseases. We will further contribute to patients through patient centric mindset. And will contribute to the enrichment of quality of life around the world. Next is slide 36. We consider the conservation of the global environment, the foundation of our life activities and lives to be one of the most important business challenges in ensuring the sustainable growth of our business. We have established three long term target for 02/1950. They are carbon neutral, 100% recycling, and environmental risk minimization for social and environmental challenges such as decarbonization society, security economy, and the society in harmony with nature. In our new five year business plan, we will implement various initiatives to reduce environmental impact throughout the value chain and contribute to society and environment. Now slide 37. We are currently stably supplying seasonal influenza and other vaccines from an internal manufacturing site, and we will contribute to society by establishing technology and manufacturing expertise for COVID nineteen and future epidemics. We have started phase one two study for our messenger RNA COVID nineteen vaccine last month. We are working to build platform production technology that can be used to create vaccines for COVID nineteen and future emerging, reemerging infectious diseases. During times of future pandemic, our target is to achieve early stable supply through mobilizing all efforts within the pharmaceutical industry. Please see slide 38. As we expand our oncology business, we will recruit diverse talent people from many countries and region to create an inclusive culture where people can be their best to serve patients, we have engaged over 12,000 of our employees and leaders to define three core behaviors, which together with our core value employee who we stand for as a company. The core behaviors were selected with the aim of valuing people for who they are as individuals and welcoming diverse perspective, which enable us to achieve more as Daisankyo, Treating each other with respect and building trust through transparent and willingness to listen, which enable us to collaborate simply and productively. Learning, experimenting, and taking initiative which enable us to grow together every day to strengthen DaiSankyo's capability. Next is data driven management through DX and transformation through advanced digital technology, which supports our strategic pillars. Please see Slide 40. In fiscal year twenty twenty, we integrated the digital functions that were spread across the company and have established DX management unit to strengthen our DX activities. We are currently developing our IT infrastructure and are integrating data held by each function through our data driven management. Also, we will introduce AI and other digital technologies to each function of the value chain, and we will aim to enhancing our competitiveness to increase operational efficiency. We plan to commence operations such as smart laboratories for twenty four hour continuous collection and analysis of data and small factories for fully automatic manufacturing. Now well balanced investment for growth and shareholder returns. Proceed slide 42. During the new five year business plan, we will prioritize R and D and capital investment on three ADCs for sustainable growth and will enhance shareholder return through dividends that take account of our profit growth. Adding the planned operating cash flow before R and D expense the next five years to our current cash enhanced available source for cash allocation during the next five year business plan is estimated to be approximately 2,800,000,000,000.0 yen. Our plan is to allocate approximately 1,500,000,000,000.0 yen to r and d prioritizing three additions and to allocate approximately 500,000,000,000 yen to capital expenditures focusing on enhancing ADC supply capabilities. Depending on the pipeline progress, we will flexibly allocate our resources to investment around building pillars for further growth and acquisition of own shares considering the best balance between sustainable growth and shareholder returns. As for dividends, we will further enhance shareholder returns through stable dividends and through dividend increase that take account of our profit growth. Next is shareholder returns. Please see Slide 43. During the next five year business plan, we will aim to maximize shareholder value by improving capital efficiency and enhancing shareholder returns considering equity cost. With increased profitability through the growth of three ADCs and with flexible acquisition of own shares, we will aim for ROE of 16% or more in fiscal year twenty twenty five and will enhance capital efficiency. As for shareholder returns, in addition to maintaining the current ordinary dividends of 27 yen per share, we will increase dividends that take account of our profit growth. We will also flexibly acquire our own shares and will enhance shareholder returns. We will adopt dividend on equity based on shareholders' equity as a KPI for shareholder returns going forward. Our target is DOE of 8% or more in fiscal year twenty twenty five, exceeding cost of shareholders' equity and also stable shareholder return. We will continue to aim for maximizing shareholder value. Slide 45 is our financial targets for fiscal year twenty twenty five. By steadily implementing strategies for the new five year business plan presented today, our target is to achieve consolidated revenue of 1,600,000,000,000.0 yen and oncology revenue of 600,000,000,000 yen or more in fiscal year twenty twenty five. We expect our operating profit to change depending on R and D investment, which will also change with the progress of our pipeline. Our target is to increase the operating profit ratio before R and D expense to 40% in order to secure profitability for our sustainable growth and for increasing shareholder value. Adjustment for profit share with AstraZeneca regarding Enhertu and Gato DXD will lead to an increase in our SG and A expenses, but will optimize cost of goods and other expenses, transform to profit structure focused on patented products and will secure high level of profitability. Moreover, we'll take equity costs into account and will aim for ROE of 16% or more and DOE of eight percent or more through improving capital efficiency and further enhancing shareholder returns. We have been investing aggressively on three ADCs during the previous five year business plan. Through the new five year business plan, we expect to see significant revenue and profit growth and will shift to a new stage for realizing our 2030 vision. Finally, please see Slide 46. Today, I presented our ESG management for sustainable growth of Daisankyo and society. Our 2030 vision, which is the company that we want to be in ten years from now, and a new five year business plan that started this month to realize our vision With a goal to solve social challenges through creation of innovative pharmaceuticals while targeting SDGs, we will continue to aim for providing innovative treatment solutions utilizing our strength in science and technology. Daisanke will continue to contribute to enrichment of quality of life around the world. This is all from me today. Thank you. Now you would like to take any questions that you may have. Today, in addition to Sunao Manabe, Toshiaki Sai, our Executive Vice President Hiroyuki Okuzawa, our new CFO and Wataru Takasaki, our Head of R and D division will be on hand to answer your questions. We will answer your question through the conference call. So if you have questions, please join the call. The conference call details, including telephone number, will have been sent to you by email upon registration through the entry form, which we sent in advance. Participants who do not ask questions may continue to watch the q and a session through the live webcast. The Q and A session will start 9AM Japan Standard Time. Thank you for your patience. The Q and A session will start at 9AM Japan Standard Time. Thank you for your patience. Thank you for your waiting. Now let's begin the q and a session. After calling in, please press 01 when you wish to ask a question. Please press 02 if you wish to cancel your question. When your time comes and your name is called, please state your name and organization, and then ask your question. Now we will answer your question in order we receive them. The first question is from mister Yamaguchi from Citigroup. Please go ahead. Hi. This is Yamaguchi from Citi. Can you hear me? Yes. Is it okay to ask a question? No. Okay. Thank you. So the first question is that you showed three ADC chart and also a new product other than three ADC chart. And it seems to be the case that three ADC peak sales is coming relatively quicker. And also, you showed some JPY 600,000,000,000 kind of sales in 2025. So can you remind me what's your peak sales assumption for Enhance, u, which is around 400,000,000,000 yen at 2025? And also, Datto is just starting to contribute around that 2025 fiscal year. So can you remind me which these what your peak sales assumption for Ehudhu and also Datto by 02/1930? Thank you. That's the first question. Thank you for your question. In terms of Ehudhu peak sales, it's not so easy to forecast that we may say around 2025 would be the peak sales. In addition to EHA2 and next year data DXD, this is more difficult to predict forecast around 02/1930, I may say. That's the timing you're talking about, right? Yeah. Yeah. But it's difficult to give us some kind of ballpark figure this time because of the trial is going away is going on. Right? Right. Right. Okay. Thank you. Second question is Ken Takeshita is coming as the head of global R and D. And R and D top management structure will change. And given the Takeshita's good experience in the industry and the scientific especially in The United States, we the CV is public. But can you give me some color about what he has done to create a new product? In short in short, can you give me some example of track record he did show in the industry if you have? Thank you. His background, we have received his CV. Sorry. Today, I can I cannot explain the detail, but development experience he has? Maybe we can provide you later on if you want. Yes. Thank you. The third question is that the final is very short, but the Dai Sankyo's relationship with AstraZeneca has been very important and will be very important in the future as well. But given the two members of top four is now leaving or dead, And Malawi san, you are the really key person to keep this relationship. But are you comfortable with keep very good relationship with AstraZeneca in the future with the new members coming into the kind of a top committee board between AstraZeneca and Daisankyo. For Daisankyo, these two collaborations are critical for our future. Also, from asset director side, priority priority of these two collaborations are important also. Thus, two executive members are leaving from the committee. However, we are providing best talent. Also, AstraZeneca is probably providing to the committee best talent. So now I am very confident we can manage these two products and the projects very well. Okay. Thank you. That's all for me. Thank you. Please press 01 when you wish to ask a question. Please press 01 when you wish to ask a question. Please press 01 when you wish to ask a question. Please press 01 when you wish to ask a ask a question. Please press 01 when you wish to ask a question. Please press 01 when you wish to ask a question. Please press 01 when you wish to ask a question. Please press 01 when wish you wish to ask a question. Please press 01 when you wish to ask a question. Please press 01 when you wish to ask a question. Please press 01 when you wish to ask a question. Please press 01 when you wish to ask a question. Please press 01 when you wish to ask a question. Please press 01 when you wish to ask a question. It seems there are no further questions. So this concludes Daiichi Sankyo's new five year business plan presentation. Thank you for your participation