Consolidated Financial Results
for the Fiscal Year Ending March 31, 2016
1. Outline of Consolidated Financial Results
2. Highlights of Business Performance
3. Consolidated Financial Results
4. Main Product Sales Update
5. R&D Expenses, Capex & Depreciation
6. Main R&D Activities

P.1
P.2
P.3
P.4
P.5
P.6～8

【reference】
7. Segment information
8. P&L Summary
9. BS Summary
10. Financial summary
11. Consolidated Financial Results and full year forecast
12. KYORIN Pharmaceutical result

P.10
P.11～12
P.13
P.14
P.15
P.16～19

May 12, 2016

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 Consolidated Financial Results for Fiscal 2015(¥ million)

FY2012FY2013

FY2014FY2015changeFY2016(forecast)

ChangeNet sales

107,031

111,400

113,121

119,483＋5.6%

120,000＋0.4%

Operatingincome17,94817,607

14,737

19,636+33.2%

14,500－26.2%

Ordinary income

18,676

18,281

15,49019,995+29.1%

14,900－25.5%Net income

12,422

12,025

12,064

13,639＋13.1%

10,700－21.6%Net income pershare (yen)166.25160.95161.63184.28＋14.0%

145.23－21.2%

Total assets

154,968

169,378

183,383

197,825

＋7.9%

－

－

Total equity

129,099

137,821

148,600

157,049

＋5.7%

－

－

Consolidated Business Results for Fiscal 2015
【Net sales】 Overall net sales increased 5.6% year on year to ¥119.4bln. Sales growth was driven by year on year increased of main
products such as Flutiform and received an upfront payment of a license agreement.
【Net income】 SG & A expenses increased , At the other side, Gross profit rose 5.5bln yen year on year due to received an upfront payment.
Operating income increased 33.2% to ¥19.6bln(+4.9bln yen), net income increased 13 1% to ¥13.6bln due to posting extraordinary income¥1.9 billion and extraordinary loss ¥3.1 billion.
Consolidated Business Results Forecast for Fiscal 2016
【Net sales and income】 We expect sales to grow due to generic drugs sales and gross profit rose due to the minute increase of Net sales
despite lower sales in the ethical drug due to drug price revision. And unfortunately we expect a profit decline, due to Impact of drug pricerevision and patent expiries of main products, decrease of an upfront payment of a license agreement. As a result, we expect net sales toincrease 0.4% year on year to ¥120.0bln, operating income to decrease 26.2% to ¥14.5bln, and net income to decrease 21.6% to ¥14.5bln.

1

Highlights of Business Performance（ Units: ¥ billion ）Net Sales increased ¥6.4billion year on year.
・increase of Flutiform,Kipres sales
・an upfront payment of a license agreement

Cost of Sales

Cost of Sales

47.4

46.6

Cost of Sales Ratio
Cost of Sales Ratio

41.2%

39.6%

■Gross Profit increased ¥5.6billion year on year

Net sales

Net sales

SG&A expenses increased ¥0.7billion year on year

R&D
R&D

(excluding R&D)

38.3

FY2014・R&D expenses decreased ¥0.5billion
・SG&A(excluding R&D) increased ¥1.2billion

13.0

13.5
SG&A

Cost of sales ratio decreased 1.6%

SG&A

51.8

SG&A
(excluding R&D)

SG&A

52.5

■Operating Income increased ¥4.9billion year on
year

39.5
Operating Income

Operating Income

FY20152

Consolidated Financial Results（unit : ¥ billion）
FY2014FY2015change

113.1

119.5

＋6.4

Ethical drugs
Business

111.8

118.2

＋6.4

98.3
92.7
5.6

＋6.2

●Overseas

92.1
91.1
1.0

◆Generic drugs

15.5

15.5

0

◆Over-thecounter drugs

4.2

4.5

＋0.3

◆Sales of new
ethical drugs●JapanHealthcare(Skin care)Business

1.3

1.2

＋1.6
＋4.6

（change
forecast）■Net Sales¥119.5(＋ 6.4)(‐ 0.7)◆Ethical drugs business¥118.2¥92.7(＋ 6.4)(＋ 1.6)(‐ 0.3)(＋ 0.2)(＋2.9)(＋3.6)(＋0.2)(－1.0)(－1.1)(＋1.1)(－0.3)(－0.1)(＋0.3)(－0.3)(＋ 4.6)( ＋0.4)(＋ 0.2)(＋0.4)

0)(－ 0.6)● Sales of new ethical drugs

Net Sales (total)（changeactual）

FY15

FY14

・ Kipres・ Flutiform
・ Uritos
・ Mucodyne
・ Pentasa●Sales of new ethical drugs in Overseas

・ Gatifloxacin

⇒
⇒
⇒
⇒

41.2
3.6
7.3
14.0
17.2

44.1
7.2
7.5
13.0
16.1

¥5.6
⇒

0.6

● Sales of Generic drugs

0.8

(

¥15.5

Contract manufacturing’s sales and Health insurance pharmacy market’s sales increased

－0.1

¥4.5

(＋ 0.3)( －0.1)◆ Healthcare (Skin care) Business¥1.2(－ 0.1)(－0.4)■Operating Income¥19.6(＋ 4.9)(＋ 0.2)● Sales of Over-the-counter drugs◆Operating Income margin increased 3.4 percentage points to 16.4%●Cost of Sales Ratio : 41.2%⇒39.6% decreased 1.6 percentage points
・ an up front payment of FPR-2 agonists

Operating
Income14.7

Ordinary
Income

15.5

20.0

＋4.5

Net Income

12.1

13.6

＋1.5

19.6

＊¥13.5bln⇒¥13.0bln（－¥0.5bln） increase cost of new WATARASE research cente ,decrease of KRP-114V costs■Dividend per share(interim dividend ¥20.0) ¥58.0

Dividend ratio 31.8%＋4.9●R&D Ratio : 11.9%⇒10.9% decreased 1.0 percentage points●SG&A Ratio : 33.8%⇒33.0% decreased 0.8 percentage＊¥38.3bln⇒¥39.5bln（＋¥1.2bln）■Net Income¥13.6(＋ 1.5)(＋ 0.6)・extraordinary income(1.9 billion yen) : 1.8 billion yen for the transfer of the land and building of the former Tokyo Branch building
・extraordinary losses (3.1 billion yen ): 2.7 billion yen for Okaya Plant closure.

3

Main Product Sales Update（ Units: ¥ billion ）Kipres（LT receptor antagonist）

Flutiform(Anti-asthmatic)

Sales of new
ethical drugs(Japan)Uritos（Kyorin）(Overactive bladder)

Mucodyne（Mucoregulant）

Pentasa(Ulcerative colitis andCrohn’s disease treatment)

Desloratadine(INN)(allergic rhinitis)

Over-thecounter drugs

Milton(Disinfectant)

FY2011FY2012FY2013

FY2014

36.8

39.6

40.2

41.2

―

―

0.6

6.3

7.5

21.5

FY2015FY2016

Change(%)(forecast)

44.1

＋6.9

33.3

3.6

7.2

＋99.8

12.9

8.1

7.3

7.5

＋2.8

7.8

19.1

18.4

14.0

13.0

－7.3

10.8

18.0

17.6

18.6

17.2

16.1

－6.1

15.8

―

―

―

―

―

―

1.9

1.9

2.0

2.1

2.0

2.1

＋5.2

2.1

actual4

R&D Expenses, Capex & Depreciation（ Units: ¥ million ）FY2011FY2012FY2013

FY2014FY2015
actualChangeFY2016（forecast）

13,964

11,05911,35913,51413,019－3.7%

13,500Capital expenditure

1,952

6,576

6,500

2,655

7,218 ＋171.8%

4,700

Depreciation
expense

2,363

2,738

3,153

3,053

3,730

＋22.1%

3,900

R&D expenses<Capital expenditure (Actual/Forecast)>（ Units: ¥ billion ）FY2014FY2015FY2016（forecast）

Plant facilities

1.5

2.4

2.6

Equipment for control, sales activities

0.3

0.4

0.5

Equipment for research

0.8

4.4

1.6
5

Main R&D Activities -1 (May 12 , 2016 Release)※Changes from the previous announcement(Feb 3 2016)Ph III ~ Application submitted
Stage
Japan

Overseas

PhⅢ(1/2015)

PhⅡclinical trial
end
Merck & Co.,

Compound/
Code

Therapy area/Action

OriginFeatures

Comments

KRP-114V

Overactive bladder

Merck &Co.,

KRP-114V is expected to improve urinary
frequency through stimulation of the beta 3
receptor in bladder which improves bladdermuscle relaxation.

PhⅢ(4/2015)

KRP-AM1977X(Oral agent）

New quinolone
synthetic antibacterial
agent

In-house※PhⅢ(3/2016)

KRP-AM1977Y(Injection）

New quinolone
synthetic antibacterial
agent

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

License agreement withMerck & Co., Inc.,(7/2014)※ Co-Development and
Co-Marketing Agreementwith Kissei PharmaceuticalCo., Ltd. affiliate . (3/2016)

for reference
Stage
Application submitted by MSD
K.K. (10/2016)

Compound/
Code
Desloratadine

Therapy area/Action

Featuresallergic rhinitis, hives, itching resulting from skindiseases (eczema/dermatitis, pruritus cutaneous)second generation histamine
H1-receptor antagonist

Comments
Co-Marketing Agreement for Japan withMSD K.K. affiliate (11/2014)

6

Main R&D Activities -2 (May 12 , 2016 Release)
POC Project (Ph I ~ Ph II)
Stage
Japan

Overseas

Compound/
Code

Therapy area/Action

OriginFeatures

Comments

PhⅡ(8/2015)

PhⅢ
Merz

KRP-209

Tinnitus

Merz

KRP-209 (Neramexane) is expected to improve thepatients' annoyance and difficulties in their life caused bytinnitus, mainly through its two pharmacological properties:
1) NMDA antagonistic activity and 2) Nicotinic acetylcholine
antagonistic activity

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

PhⅠ,Ⅱ（7/2015）(US)
Momotaro-Gene
prostate cancer(5/2014)

Ad-SGE-REIC

malignant pleural
mesothelioma

Okayama
University

A gene-therapy product using a novel tumor suppressor
gene of reduced expression in immortalized cells/ Dickkopf3 (REIC/Dkk-3), which was discovered by researchers from
Okayama University, as a therapeutic gene.
It is expected to have direct effect on primary tumor lesions
and indirect effect on metastatic tumor lesions as a genetherapy product that simultaneously induces tumor cellselective apoptosis and the activation of antitumor
immunity respectively.

Adopted to Next
generation Technology
Transfer Program(NexTEP)(6/2014)7

Main R&D Activities -3 (May 12 , 2016 Release)
Licensing development（preclinical）
Compound/Code

Licensee /Collaborative
research

Therapyarea/Action

KRP-203

Novartis

GVHD

Stage/
Overseas
PhⅠ

OriginIn-house

Features
Sphingosine-1-Phosphate Receptor Agonist .
immunomodukatory drug.

Comments
License agreement with Novartis(2/2006)
Novartis has decided to proceed with
development of KRP-203 for GvHD.

Preclinical-

BMS

Nondisclosure

In-house

FPR-2 agonists that mainly inhibit the
migration of neutrophils and exhibit antiinflammatory action.

License agreement with BMS(12/2015)

8Reference9Segment information
Sales, Profit or Loss of each report segment（ Units: ¥ billion ）SaleschangeProfitChangeNet Sales (total)

119.5

＋6.4

19.6

＋4.9

Ethical drugs business

118.2

＋6.4

19.5

＋4.9

98.3

＋6.2

○Overseas

92.7
5.6

＋1.6
＋4.6

◆Generic drugs

15.5

0

◆Over-the-counter drugs

4.5

＋0.3

Healthcare(Skincare) business

1.2

－0.1

－0.1

－0.1

－

0.2

0

◆Sales of new ethical drugs○JapanAmount of adjustment－(Note ) The Company is applying the Revised Accounting Standard for Disclosures about Segments of an Enterprise andRelated Information and the Guidance on the Accounting Standard for Disclosures about Segments of an Enterprise andRelated Information. As a result, the reported segments are the Ethical Drugs Business and the Consumer Healthcare Business.

10

P&L Summary: Consolidated Results – (1)（ Units: ¥ million ）FY2014FY2015■SalesActual% Sales

Actual% Sales% Change

ChangeSales

113,121100.0%

119,483

100.0%＋5.6＋6,362■Ethical Drugs
business

111,771

98.8%

118,238

99.0%

＋5.8

＋6,467◆Sales of new
Ethical Drugs

92,111

81.4%

98,282

82.3%

＋6.7

＋6,171○Japan91,07980.5%

92,695

77.6%

＋1.8

＋1,616○Overseas

1,032

0.9%

5,586

4.7%

＋441.3＋4,554

15,47713.7%

15,465

12.9%

－0.1

－12

◆Generic Drugs■Consumer
Healthcare
Business

3.7%

4,490

3.8%

＋7.3

＋307

（＋6,362）

119,483（＋1,616）

92,695FY14・Kipres・ Uritos
・ Mucodine

4,183change●Ethical drug sales in Japan・ Flutiform◆Over-thecounter Drugs
and Others＜ Breakdown ＞

41.2
3.6
7.3
14.0
17.2

・ Pentasa

⇒
⇒
⇒
⇒
⇒

FY15

（¥:billion）

44.1
7.2
7.5
13.0
16.1

(＋2.9)(＋3.6)(＋0.2)(－1.0)(－1.1)● Ethical drug sales overseas
・ Gatifloxacin

5,586
0.6
⇒

（＋4,554 ）(＋0.2)
0.8

・ Received an up front payment of FPR-2 agonists● Generic Drugs
1,349

1.2%

<Subsidiaries and Equity-method Affiliates>
Consolidated subsidiaries (8) ：KYORIN Pharmaceutical Co., Ltd.
Kyorin USA, Inc.
Kyorin Europe GmbH
ActivX Biosciences, Inc.
KYORIN Rimedio Co., Ltd.
Dr. Program Co., Ltd.
KYORIN Medical Supply Co., Ltd.
KYORIN Pharmaceutical Facilities Co., Ltd
Equity-Method Affiliates： Nippon Rika Co., Ltd.

1,244

1.0%

－7.8

－105

15,465（－12）

・increase of Health insurance pharmacy market’s sales
・decrease of Contract manufacturing’s sales●Over-the-counter Drugs and Others
4,490（ ＋307 ）● Consumer Healthcare Business
1,244（－105）

11

P&L Summary: Consolidated Results – (2)（ Units: ¥ million ）FY2014＜ Breakdown ＞

FY2015◆Cost of Sales Ratio : －1.6 percentage points(41.2 ％→39.6％)

Actual% Sales

Actual% Sales% Change

ChangeSales

113,121100.0%

119,483

100.0%＋5.6%＋6,362・ up front payment of FPR-2 agonists

Cost of Sales

46,59841.2%

47,360

39.6%

＋1.6%

＋762

◆R&D Ratio : －1.0 percentage points

Gross Profit

66,522

58.8%

72,122

60.4%

＋8.4%

＋5,600

SG&A(Incl. R&D expenses)

51,78545.8%

52,486

43.9%

＋1.4%

＋701

(13,514)11.9%(13,019)

10.9%

－3.7%

－495
＋4,899Operating
Income14,73713.0%

19,636

16.4%＋33.2%

0.7%
0.0%

531
172

0.4%
0.1%

－30.9

－237

Non-Operating Expenses

768
16＋975.0%＋156

Ordinary Income

15,49013.7%

19,995

16.7%＋29.1%＋4,505Extraordinary Profits
Extraordinary Losses

4,505
2,434

4.0%
2.2%

1,940
3,120

1.6%
2.6%

－56.9%－2,565＋28.2%＋686

17,561

15.5%

18,815

15.7%

＋7.1%

＋1,254

4,712

4.2%

5,191

4.3%

＋10.2%

＋479

785

0.7%

－15

－0.0%

－

－800

12,064

10.7%

13,63911.4%＋13.1%＋1,575

Non-Operating Income

Income before
income taxes
Corporate, inhabitantsand enterprise taxes

Tax adjustments
Net Income(11.9％→10.9％)＊ ¥13.5bln→¥13.0bln(decrease ¥0.5bln)
・increase of new WATARASE research cente costs,
・decrease of KRP-114V costs.

◆SG&A (exclude R&D) Expenses : －0.8 percentage points(33.8%→33.0％)＊¥38.3bln→¥39.5bln (＋¥1.2bln)increase of patent royalty ,sales costs.

■Operating Income¥19,636(＋¥4,899)＊Operating Income margin increased 3.4percentage
points to 16.4%■Net Income■Dividend per share＊Consolidated payout ratio¥13,639(＋¥1,575)¥58.0031.8%

12

BS Summary: Consolidated Results（ Units: ¥ million ）FY2014FY2015

Actual%totalCurrent Assets

129,064

70.4%

Cash, deposits
Mk securities
Inventory
Other

30,65247,007
17,86725,9297,607

Fixed Assets

54,318

Tangible assets
Intangible assets
Investments

19,374
1,184
33,760Notes and accounts receivable―

Actual138,483
45,712
48,296
5,989
27,665
10,81829.6%

59,342―

22,7881,201
35,353% total

70.0%

―

30.0%

change＜ Breakdown ＞＋9,419■ Current Asset ： ＋9,419―

・ Cash, deposits（＋15,060）
・ Notes and accounts receivable （＋1,289）
・ Mk securities（－11,878）
・ Inventory（＋1,736）＋5,024■ Fixed Assets ： ＋5,024――

・ Tangible Assets
・ Intangible Assets
・ Investments（ ＋3,414）（＋17）（ ＋1,593）

Total Assets

183,383

100.0%

197,825100.0%＋14,442

Current Liabilities

27,77315.1%

28,052

14.2%

＋279

Notes payable
Other

11,25916,513―

11,792
16,259――Non-Current Liabilities

7,009

3.8%

12,723

6.4%＋5,714・ Notes Payable
・ Other

Total Liabilities

34,78219.0%

40,77620.6%＋5,994■ Non-Current Liabilities ： ＋5,714

Owner’s Equity

140,518

76.6%

149,808

75.7%＋9,290

8,082

4.4%

7,241

3.7%

－841

7,798
168
115

―

10,372160－3,292――Other Comprehensive
IncomeUnrealized holding gain (loss) on securities

Foreign currency translation adjustments

Total Equity

148,600

81.0%

157,049

79.4%＋8,449Total Liabilities and Equity

183,383

100.0%

197,825100.0%＋14,442■ Current Liabi： ＋279
（
（

＋533）
－254）

13

Financial summary (Consolidated)（¥ million）

FY2011FY2012FY2013

FY2014FY2015FY2016(forecast)

Sales(Exports)

103,232(2,015)

107,031(2,400)111,400(1,849)113,121(1,032)

119,483(5,586)

120,000(3,800)

Cost of Sales（cost of Sales Ratio ）（％）

36,926(35.8%)

40,133(37.5%)

43,047(38.6%)

46,598(41.2%)

47,360(39.6%)―

SG&A
Ratio to Sales (%)

51,842(50.2%)

48,949(45.7%)

50,744(45.6%)

51,785(45.8%)

52,486(43.9%)―

R&D Expenses
Ratio to Sales (%)

13,964(13.5%)

11,059(10.3%)

11,359(10.2%)

13,514(11.9%)

13,019(10.9%)

13,500(11.3%)

Operating Income
Ratio to Sales (%)

14,464(14.0%)

17,948(16.8%)

17,607(15.8%)

14,737(13.0%)

19,636(16.4%)

14,500(12.1%)

Ordinary Income
Ratio to Sales (%)

15,275(14.8%)

18,676(17.4%)

18,281(16.4%)

15,490(13.7%)

19,995(16.7%)

14,900(12.4%)Net Income
Ratio to Sales (%)

9,231(8.9%)

12,422(11.6%)

12,025(10.8%)

12,064(10.7%)

13,639(11.4%)

10,700(8.9%)EPS (¥)¥123.54¥166.25¥160.95¥161.63¥184.28¥145.23

Capital

700

700

700

700

700

―

Assets145,673

154,968

169,378

183,383

197,825―

shareholder's equity

117,931

126,985

135,273

140,518

149,808―

Total Equity

118,201

129,099

137,821

148,600

157,049―

BPS (¥)¥1,581.94¥1,727.86¥1,844.61¥2,009.45¥2,131.67―

ROE (%)

8.0%

10.0%

9.0%

8.4%

8.9%

―

Equity Ratio (%)

81.1%

83.3%

81.4%

81.0%

79.4%

―

Employees

2,297

2,444

2,452

2,445

2,420

―

Capital Expenditure

1,952

6,576

6,500

2,655

7,218

4,700

Depreciation Expense

2,363

2,738

3,153

3,053

3,730

3,900

14

Consolidated Financial Results and full year forecast（ Units: ¥ million ）Year on year

FY2015FY2016(forecast)changechange（%）

Sales

119,483

120,000

＋517

＋0.4

■Ethical Drugs business

113,970

114,000＋30＋0.0◆Sales of new Ethical Drugs

98,506

92,400－6,105－6.2

92,92088,500－4,419

－4.8

5,586

3,800

－1,786－32.0

15,46521,500＋6,035

＋39.0

5,512

6,000

＋488

＋8.9

Operating Income

19,636

14,500－5,136－26.2

Ordinary Income

19,995

14,900－5,095－25.5

Net Income

13,63910,700－2,939－21.6○Japan○Overseas◆Sales of Generic drugs■Consumer Healthcare
Business※The details of the Sales Segment have been changed from the year ending March 31, 2017.
Following the change, the Pharmaceutical Business comprises New Drugs and Generic Drugs, while the Health Care Business comprises Skincare, Environmental
Hygiene and Over the Counter Drugs and Others.

15

P&L summary : KYORIN pharmaceutical(Non-consolidated)-(1)（ Units: ¥ million ）＜ Breakdown ＞
changeFY2014Sales

FY2015■Sales●Ethical drug sales in Japan

Actual% Sales

Actual% Sales%
ChangeChange98,452100.0%

106,390

100.0%＋8.1%＋7,938■Ethical Drugs
business

98,452◆Sales of new
Ethical Drugs

88,85290.2%

95,824

90.1%

＋7.8%

＋6,97288,012

89.4%

90,480

85.0%

＋2.8%

＋2,468○Japan○Overseas◆Generic Drugs◆Over-thecounter Drugs
and Others

106,390

100.0%＋8.1%＋7,938FY14・ Flutiform
・ Uritos
・ Mucodine

840

6,404

0.9%

6.5%

5,343

6,878

5.0%

6.5%

＋536.1%＋7.4%＋4,503＋474（＋2,468）

90,480・Kipres100.0%（＋7,938）

106,390・ Pentasa

41.2
3.6
7.3
14.0
17.2

⇒
⇒
⇒
⇒
⇒

FY15

（¥:billion）

44.1
7.2
7.5
13.0
16.1

(＋2.9)(＋3.6)(＋0.2)(－1.0)(－1.1)● Ethical drug sales overseas
・ Gatifloxacin

5,343
0.6
⇒

（＋4,503）(＋0.2)
0.8● Generic Drugs

6,878（＋474）＊increase of Kyorin Rimedio product sales●Over-the-counter Drugs and Others

3,195

3.2%

3,686

3.5%

＋15.4%＋491
・ Milton・ Rubysta

3,686
2.0
⇒
0.5
⇒

（ ＋ 491 ）(＋0.1)
2.1(＋0.3)
0.8

16

P&L summary : KYORIN pharmaceutical(Non-consolidated)-(2)（ Units: ¥ million ）FY2014
Actual

FY2015% Sales

Actual% Sales%
ChangeChangeSales

98,452100.0%

106,390

100.0%＋8.1%＋7,938

Cost of Sales

38,951

39.6%

40,798

38.3%

＋4.7%

＋1,847Gross Profit

59,501

60.4%

65,591

61.7%＋10.2%＋6,090

SG&A(R&D Expenses)

47,349(12,843)48.1%(13.0%)

48,129(12,421)45.2%(11.7%)

＋1.7%
－3.3%

＋780
－422

Operating Income

12,151

12.3%

17,461

16.4%＋43.7%＋5,310

964
0

1.0%
0.0%

652
127

0.6%
0.1%

－32.4%
－

－312
＋127

Ordinary Income

13,115

13.3%

17,98516.9%＋37.1%＋4,870Extraordinary Profits
Extraordinary Losses

4,505
2,405

4.6%
2.4%

1,828
3,037

1.7%
2.9%

－59.4%＋26.3%－2,677＋632

Income before
Income taxes

15,21515.5%

16,776

15.8%＋10.3%＋1,561

3,998

4.1%

4,600

4.3%

＋15.1%

＋602

804

0.8%

62

0.1%

－92.3%－742

10,412

10.6%

12,113

11.4%＋16.3%＋1,701

Non-Operating Income
Non-operating Expenses

Corporate, inhabitantsand enterprise taxes

Tax adjustments
Net Income＜ Breakdown ＞◆ Cost of Sales Ratio ： －1.3percentage points(39.6％→38.3％)
・ up front payment of FPR-2 agonists◆ R&D Ratio ： ： －1.3 percentage points(13.0％→11.7％)＊¥12.8bln→¥12.4bln（－¥0.4bln）
・increase of new WATARASE research cente costs,
・decrease of KRP-114V costs.

◆ SG&A (exclude R&D) Expenses ：－1.4 percentage Points(35.0％→33.6％)■ Operating Income

17,461(＋5,310)＊Operating Income margin increased 4.1percentage
points to 16.4%■ Net Income 12,113 ( ＋1,701)

17

BS Summary: KYORIN Pharmaceutical(Non-consolidated)（ Units: ¥ million ）FY2014
ActualCurrent Assets

97,822

Cash, deposits
Accounts receivable
Mk securities
InventoryOther

FY2015% totalActual% total66.1%

change＜ Breakdown ＞＋5,037

68.4%

102,859

14,58743,22012,804
21,763
5,447―

22,32644,374
5,905
21,774
8,477――

Fixed Assets

45,145

31.6%

52,77833.9%＋7,633■ Fixed Assets ＋7,633

Tangible assets
Intangible assets
Investments

12,324376
32,444―

14,866486
37,424――・ Tangible Assets
・ Intangible Assets
・ Investments

Total Assets

142,967

100.0%

155,637

100.0%＋12,670

Current Liabilities

20,958

14.7%

20,102

12.9%

－856

Notes Payable
Other

8,323
12,635―

7,673
12,428――

Non-Current
Liabilities

3,762

2.6%

7,925

5.1%

＋4,163

Total Liabilities

24,72017.3%

28,02718.0%＋3,307

Owner’s Equity

110,534

77.3%

117,300

75.4%＋6,766

Valuation andtranslation
adjustments

7,712

5.4%

10,3096.6%＋2,597

Total Equity

118,246

82.7%

127,61082.0%＋9,364

Total Liabilities andEquity142,967

100.0%

155,637

100.0%＋12,670■ Current Assets ： ＋5,037
・ Cash, deposits
・ Accounts receivable
・ Mk securities
・ Inventory（＋7,739）（＋1,154）（－6,899）（ ＋11）（＋2,542）（ ＋110）（＋4,980）■ Current Liabilities ： －856
・ Notes Payable（ －650）■ Non-Current Liabilities ： ＋4,163

18

Financial Summary: KYORIN Pharmaceutical(Non-consolidated)（¥ million）

FY2011FY2012FY2013

FY2014FY2015FY2016(forecast)

Sales(Exports)

93,697(1,904)

95,894(2,277)

97,662(1,650)98,452(840)

106,390(5,343)

106,400(3,600)

Cost of Sales（cost of sales ratio ）％32,046(34.2%)

33,868(35.3%)

35,119(36.0%)

38,951(39.6%)

40,798(38.3%)―

SG&A
Ratio to Sales (%)

47,679(50.9%)

44,898(46.8%)

47,175(48.3%)

47,349(48.1%)

48,129(45.2%)―

R&D Expenses
Ratio to Sales (%)

13,472(14.4%)

10,733(11.2%)

11,064(11.3%)

12,843(13.0%)

12,421(11.7%)

12,900(12.1%)

Operating Income
Ratio to Sales (%)

13,971(14.9%)

17,127(17.9%)

15,368(15.7%)

12,151(12.3%)

17,461(16.4%)

11,700(11.0%)

Ordinary Income
Ratio to Sales (%)

15,126(16.1%)

18,209(19.0%)

16,230(16.6%)

13,115(13.3%)

17,985(16.9%)

12,200(11.5%)Net Income
Ratio to Sales (%)

9,274(9.9%)

11,931(12.4%)

10,823(11.1%)

10,412(10.6%)

12,113(11.4%)

8,900(8.4%)EPS (¥)¥124.88¥160.66¥145.74¥140.20¥163.11―

Capital

4,317

4,317

4,317

4,317

4,317

―

Assets121,985

121,881130,997

142,967

155,637―

shareholder's equity

101,652

100,586

106,211

110,534

117,300―

Total Equity

102,177

102,844

109,606

118,246

127,610―

BPS (¥)¥1,375.79¥1,384.77¥1,475.82¥1,592.16¥1718.23―

ROE (%)

9.4%

11.6%

10.2%

9.1%

9.9%

―

Equity Ratio (%)

83.8%

84.4%

83.7%

82.7%

82.0%

―

Employees

1,798

1,797

1,780

1,771

1,731

―

Capital Expenditure

1,425

1,507

4,763

1,125

5,059

1,800

Depreciation Expense

1,790

1,743

1,743

1,667

2,241

2,300

19