First Quarter Consolidated Financial Resultsg March 31,, 2013
for the Fiscal Year Ending
1. Overview of consolidated results
2 Main2.
M i ProductP d t Sales
S l Update
U d t
3. Development pipelines【Reference】
4. Segment information for the First Quarterg March 31,2013of the Fiscal Year Ending
5. Consolidated Financial Results for theFirst Quarter of the Fiscal Year Ending March 31,2013
July 31, 2012

KYORIN Holdings, Inc.
These forecast performance figures are based on information currently available to theCompany and may include uncertain factors or risk that affect our future performance.
Accordingly, actual business results may materially differ from the forecasted figures due
to various factors in the future.

Outline of First Quarter Consolidated Financial Results
for the Fiscal Year Ending March 31, 2013
Year ending
March 31,2013(forecast)First quarter
June 30, 2009First quarter
June 30, 2010

First quarter
June 30, 2011

First quarter
June 30, 2012

YoYchange(%)

Sep/12
Interim term
(forecast)

Net sales

23,28924,65524,80925,4222.5％

47,7002.8% 104,700

1.4％Operatingincome
co e

3,156

2,216

4,100

4,080

16.6％

5,600

14.3%

17,90023.8％Ordinary
income

3,417

2,421

4,300

4,351

1.2％

6,000

14.2%

18,50021.1％

Net income

1,976

1,799

2,697

2,838

5.2％

3,900

16.2%

11,800

27.8％

Units:
millions of yen

YoYchange(%)

YoYchange(%)

First Quarter Consolidated Financial Results for the Fiscal Year Ending March 31, 2013
【 Net sales】
Sales of pharmaceutical business(new drug and generic drug) increased year on year, under the influence ofthe revision of drug prices in April this year. As a result, consolidated net sales increased 2.5% year on year, to¥25,422 mil.
【Income】
Gross profit decreased due to rose of the cost of sales ratio (Drug price revisions). Meanwhile, SG&A expenses
fell, given a decrease in R&D expenses. Consequently, operating income stayed flat year on year(-0.5%), to¥4,080 mil and net income rose 5.2%, to ¥2,838 mil.

Consolidated Financial Results for the Fiscal Year Ending March 31,
31 2013(forecast)
The results forecasts for the first half and the full year announced on May 9, 2012 remain unchanged. (Progresscompared with the forecast for the first half: net sales: 53.3%; operating income: 72.9%)
1

Highlights of Business Performance for the First Quarter
Ended June 30, 2012
（ Units: ¥ billion）

Highlight ①◇Net sales rose ¥0.6 bil year onyear).

cost ofSales ratio

cost ofSales ratio

Highlight ②

33.4%

37.7%

◇Cost of sales ratio increased 4.3%.

Cost ofsales

Cost ofsales

8.3
Net sales

2.5◇Gross profit decreased ¥0.7bil

9.6
Net sales

R&D

2.9
SG&A
(excluding
R&D)

R&D

・Drug price revisions (in( the 6%range%fforKYORIN Pharmaceutical).
・Sales of ethical drug overseas decreased.
・Lower in the production rates of plants.
・Sales of generic drugs increased.

25.4
SG&A

12 4
12.4

9.5
OperatingincomeSG&A((excludingl diR&D)

9.3

SG&A

11 8
11.8

Highlight ③
SG&A expenses decreased ¥0.6 bilyear on year.
・R&D expenses decreased ¥0.4bil.

◆Operating income stayflat year on year.
First Quarter Ended
June 30, 2011

First Quarter Ended
June 30, 20122

Consolidated Financial Results for the First Quarter
Ended June 30, 2012
（ Units: ¥ billion）
First Quarter
June 30, 2011

First QuarterJune 30
30, 2012

ChangeNet sales (total)

24.8

25.4＋0.6

Ethical drugs
business

24 224.2

24 9
24.9＋0 7＋0.7◆Sales of newethical drugs○Overseas

21.1
20.1
1.1

21.3
20.6
0.7＋0.2＋0.5－0.4◆Generic drugs

2.1

2.6＋0.5◆Over-the-counterdrugs

101.0

10
1.00

Healthcare(Skin care)Business

0.6

0.5－0.1○Japan■Net sales◆Ethical drugs business●Sales of new ethical drugs●gin Japan・ Kipres
・ Mucodyne・ Pentasa
・ Uritos●Sales of new ethical drugsin Overseas
・Gatifloxacin●Sales of g●generic drugsgYear onYear(＋0.6)(＋0.7)((＋0.5))¥25.4billion¥24.9billion¥20.6billion
13.3(1Q)

12.3(1Q)
8.3
1.6
5.1
46
4.6

⇒
⇒
⇒
⇒

¥0.7billion
1.0⇒( ＋0.5)( ＋0.3)( －0.5)( －0.1)
0.1)

8.8
1.9
4.6
45
4.5

(－0.4)
0.7( －0.3)¥2.6billion((＋0.5))◆Healthcare (Skin care)Business ¥0.5billion(－0.1)■Operating income(¥4.1billion

0)◆Operating income margin decreased 0.5 percentage points YoY to 16.0%●Cost of sales ratio: 37.7%, increased 4.3 percentage points YoY
・Drug price revisions (in the 6%range for KYORIN Pharmaceutical).
・Sales of ethical drug overseas decreased. ・Lower in the production rates of plants.
・Sales of generic drugs increased.
●R&D ratio: 9.7%, decreased 2.1 percentage points YoY (11.8%⇒9.7%)

Operatingincome4.1

Ordinary
Income4.3

Net income

2.7

4.1
4.4

0＋0.1

＊¥2.9 billion ⇒ ¥2.5 billion (decreased ¥0.4 billion)●SG&A ratio (excluding R&D expenses): 36.5%,decreased 1.3 percentage points YoY (38.3%⇒36.5%)＊¥9.5 billion ⇒¥9.3 billion (decreased ¥0.2 billion)

2.8＋0.1■Net income¥2.8billion(＋1.0)
3

Main Product Sales Update（ Units: ¥ billion ）Interim term

Product nameKipres（LT receptor antagonist）

Mucodyne（Mucoregulant）

Sales ofnew
ethicaldrugs(Japan)Full termFirst qquarter（Aprilp 1 to June 30）
FY2011(results)

FY2012(results)

YoYchange(%)

FY2011(results)

FY2012(forecast)

15 7
15.7

16 7
16.7

36 8
36.8

37 937.9

83
8.3

888.85 8%
5.8%

52.4%
%

23.1%
%

9.1

9.0

21.5

21.3

5.1

4.6

－8.5%

51.1%

21.7%

((Ulcerativecolitis andCrohn’s disease
treatment)

91
9.1

84
8.4

18 0
18.0

17 0
17.0

46
4.6

45
4.5

0 5%
－0.5%

53 9%
53.9%

26 6%
26.6%

Uritos（Kyorin）

2.9

3.3

6.3

7.6

1.6

1.9

21.6%

56.2%

25.0%

1.8

1.5

3.4

3.0

0.9

0.8

－12.5%

50.0%

25.3%

08
0.8

08
0.8

17
1.7

15
1.5

10
1.0

07
0.7

33 0%
－33.0%

81 3%
81.3%

42 0%
42.0%

09
0.9

10
1.019
1.920
2.005
0.505
0.5

10.3%
%

48.9%

24.1%

Ketas
(For bronchial asthma andcerebrovasculas disorders)Over-thecounterdrugs

Progress toFull term
forecast(%)

FY2012(forecast)

Pentasa(Overactive bladder)

Sales ofnew ethicaldrugs (overseas)

Progress toInterim term
forecast(%)

FY2011(results)

Gatifloxacin(Bulk・Royalty)

Milton(Disinfectant)Sales of Gatifloxacin included bulk sales to licensees and running royalties in accordance with sales at licensees.

4Actual and Forecast of Main Subsidiary Companies（ Units: ¥ billion ）KYORINp
pharmaceuticalFirst quarter
June 30, 2011
（results）

First quarter
June 30, 2012
（results）

FY 2011

FY2012（results）（forecast）

Sales

22.5

23.0

93.7

94.6

Operating profit

3.9

4.1

14.0

17.4

Net profit

2.7

2.9

9.3

12.0

KYORIN Rimedio
Ri diFirst quarter
June 30, 2011
（results）

First quarter
June 30, 2012
（results）

FY 2011

FY2012（results）（forecast）

Sales

2.4

2.7

9.6

10.2

OOperatingti profit
fit

03
0.300
0.003
0.304
0.4

Net profit

0.2

0.0

0.3

0.2

Dr. ProgramFirst quarter
June 30, 2011
（results）

First quarter
June 30, 2012
（results）

FY 2011

FY2012（results）（forecast）

Sales

0.6

0.5

2.62.7

Operating profit

0.0

－1.0

0.1

0.1

Net profit

0.0－1.0

0.0

0.05

Main R&D Activities -1 (July 31 , 2012 Release)※Changes from the previous announcement(May 9, 2012)

Ph III ~ Application submitted
Stage

Compound/Code

Therapyarea/Action

Application
submitted(11/2011)

Pentasa(tablet)

Ulcerativecolitis

FerringPharmaceuticals

New dosage regimen for ulcerative colitis in theremission phase (once a day)Preparing forapplication

Pentasa(suppository)

Ulcerativecolitis

FerringPharmaceuticals

Consideration of a new dosage form for the active
phase of ulcerative colitis (once a day)・Development of a new
dosage form
・PhⅢcompleted(2/2012)

KRP-108(Inhalant)

Antiasthmatic

SkyePharma PLC

An ICS/LABA combination product, which offers
better compliance and convenience to the patients・License agreement with
SkyePharma (4/2008)
・Domestic Ph II completed(4/2010)
・PhⅢcompleted(3/2012)

Japan

Preparing for
application

Overseas(US)SkyePharma: Application
submitted (3/2009)（Europe）
Mundipharma: Approved(7/2012)

Oi i
OriginF tFeatures

CComments
t6

Main R&D Activities -2 (July 31 , 2012 Release)①※Changes from the previous announcement(May 9, 2012)

POC Project (Pre-clinical ~ Ph II)
StageJapan

Overseas

Compound/
Code

Therapyarea/Action

OriginFeatures

Comments

PhⅡ（2/2008）

PhⅡ（9/2007）

KRP-104

Anti-diabetes agent

In-house

A DPPIV inhibitor to reduce blood glucose throughsuppression of the degradation of insulin-releasing
hormone. Diabetic therapy with fewer side effects isexpected than existing treatments.

・Overseas Ph II b
completed (3/2011)
・Domestic Ph II b
completed (3/2010)

PhⅡ（2/2012）（Europe）
Almirall: Approved(7/2012)

KRP-AB1102（Inhaled drug）

Chronic Obstructive
Pulmonary Disease(COPD)

Almirall- New Chemical Entity: Aclidinium Bromide- Long Acting Muscarinic Agonist (LAMA)- Twice Daily administration-Onset of Action on the first dayGenuair®
1) Designed
D id with
ith a feedbackf db k system,twhichhi h throughthha'colored control window' and an
audible click helps confirm that the patient has
inhaled correctly2) Counter for remaining doses
3) Safety features such as an anti-double-dosing
mechanism and an end
end-of-doseof dose locklock-outout
system to prevent use of an empty inhaler

License agreement withAlmirall (2/2011)

KRP-AB1102F(Fixed dosecombinationi h l d drug)
inhaledd)

Chronic Obstructive
Pulmonary Disease(COPD)

Almirall

Combination of aclidinium bromide with the longacting beta agonist formoterol :This combination is aimed at providing higher
efficacy than each component alone,asalone as well as theimproved convenience of having the two products inthe same easy to use inhalation device.This iscurrently in phase Ⅲ clinical development.

(US)
FForestt
Pharmaceuticals: Approved(7/2012)

PhⅡ（5/2012） ※(Europe & US)
Almirall: Ph Ⅲ
(US)ForestLaboratories: PhⅢ

7

Main R&D Activities -2 (July 31 , 2012 Release)②※Changes from the previous announcement(May 9, 2012)

POC Project (Pre-clinical ~ Ph II)
Stage
Japan

Overseas

Compound/
Code

Therapy area/Action

OriginFeatures

Comments

PhⅡ（8/2011）

PhⅢ
Merz

KRP-209

Tinnitus

Merz

KRP-209 (Neramexane) is expected to improve thepatients' annoyance and difficulties in their life causedby tinnitus, mainly through its two pharmacologicalproperties: 1) NMDA antagonistic activity and 2)
Ni ti i acetylcholine
Nicotinict l h li antagonistict
i ti activity
ti it

License agreement withMerz (11/2009)
Merz:Ph I clinical trial ofJapanese patients in US
completed (3/2010)

PhⅠ（12/2010）

PhⅡ（POC)(12/2010)(Novartis)

KRP-203

Transplantation,
autoimmune
diseases,andIBD

In-house

An immunosuppressant with a novel mechanism called
an S1P-agonist. It may have a better safety profile thanprevious ones as well as an excellent effect under
yp of immunomodulator.
concomitant use with other types

License agreement withNovartis (2/2006)
New license agreement
IBD ((11/2010))

PhⅠ（8/2011）

KRP-AM1977X(Oral agent）

New quinolone
synthetic
antibacterial agent

In-house

PhⅠ（7/2012）※

KRP-AM1977Y(Injection）

quinolone
New q
synthetic
antibacterial agent

In-house①Superior ability to combat drug-resistant grampositive bacteria (incl. MRSA)②Outstanding ADME (oral absorption, tissuemigration)③High degree of safety expected since safety
hurdles cleared prior to clinical trials

others・AIPHAGAN
AIPHAGAN Ophthalmic
O hth l i SSolutionl ti 00.1%
1% ： Released
R ld on M
May 2012 ※8

【For reference】
Segment information for the First Quarter Ended June 30, 2012

Sales, profit or loss of each report segment
Sales（Units: ¥ billion）

Year on Year

ProfitYear on YearNet sales (total)

25.4

＋0.6

4.1

0

Ethical drugs
g business

24.9
9＋0.7

4.1

021.3
20.6
0.7

＋0.2
＋0.5
－0.4

◆Generic drugs

2.6＋0.5◆Over-the-counter drugs

1.00Healthcare(Skincare)business050.5－00.1
1－00.110－0.10◆Sales of new ethical drugs○Japan○Overseas

Amount of adjustment－(Note ) The Company is applying the Revised Accounting Standard for Disclosures about Segments of an Enterprise and Related Informationand the Guidance on the Accounting Standard for Disclosures about Segments of an Enterprise and Related Information. As a result, thereported segments are the Ethical Drugs Business and the Consumer Healthcare Business.

9【For reference】
Consolidated Financial Results for the First Quarter
Ended June 30,, 2012
（ Units: ¥ million ）Interim termFirst quarter （April 1 to June 30）

Full term

YoYchange(%)

Progressto interim
term
forecast(%)

Progress
to fullterm
forecast(%)

FY2011(results)

FY2012(forecast)

FY2011(results)

FY2012(forecast)

FY2011(results)

FY2012(results)

ChangeSales

46,38747,700103,232

104,700

24,80925,422

613

2.5%

53.3%

24.3%

◆Ethical drugs
business

45,15546,500100,654

102,000

24,18324,921

738

3.1%

53.6%

24.4%

Sales of new
ethical drugs

39,09840,00088,011

88,70021,14821,331

183

0.9%

53.3%

24.0%

Japan

38,12939,00085,99586,70020,075

20,586

511

2.5%

52.8%

23.7%

968

1,000

2,015

2,000

1,072

745

－327

－30.5%

74.5%

37.3%

Generic drugs

4,097

4,600

8,656

9,500

2,069

2,635

566

27.4%

57.3%

27.7%

Over-thecounter drugs

1,959

1,800

3,987

3,800

965

953

－12

－1.2%

52.9%

25.1%

◆healthcare(Skincare)business

1,232

1,200

2,577

2,700

625

501

124
－124

19.8%
－19.8%

41.8%

18.6%

Operatingincome

4,900

5,600

14,464

17,900

4,100

4,080

－20

－0.5%

72.9%

22.8%

Ordinary
Income

5,253

6,000

15,27518,500

4,300

4,351

51

1.2%

72.5%

23.5%

Net income

3,355

3,900

9,231

11,800

2,697

2,838

141

5.2%

72.8%

24.1%

Overseas10