1.  Overview of consolidated results 2.  Highlights of Business Performance 3.  Main Product Sales Update 4.  Development pipeline 5. Segment information 6. Financial summary and Forecasts February 5, 2019 KYORIN Holdings, Inc. These forecast performance figures are based on information currently available to the Company 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

Third Quarter Consolidated Financial Results for the Fiscal Year Ending March 31, 2019
[Net Sales]  Sales of new drugs (in Japan) were higher than the year-ago level because revenues from our main product Flutiform grew steadily and sales of the new overactive bladder dr g Beova also contributed to growth. Revenues from generic medicine also increased. However, sales of new drugs (overseas) decreased mainly due to the absence of a lump-sum payment for progress in the development of a license-out product recorded the previous fiscal year, and overall net sales fell 906 million yen (or 1.1%) year on year, to 82,017 million yen. [Profit] Gross profit fell 3,648 million yen year on year, reflecting a higher cost of sales ratio as a result of National Health Insurance (NHI) price revision and a decrease in lump-sum payments for progress in the development of license-out products recorded the previous fiscal year. Meanwhile, SG&A expenses decreased 2,637 million yen year on year (including a reduction of 2,316 million yen in R&D expenses) thanks to cost-cutting initiatives, and operating income was 6,794 million yen, down 1,011 million yen (or 13.0%) year on year. Profit attributable to owners of parent amounted to 5,112 million yen (down 16.5% from the year-ago level). Consolidated Financial Results for the Fiscal Year Ending March 31, 2019 (forecast) The Company revised its consolidated financial results forecast for the fiscal year ending March 31, 2019 announced on May 10, 2018 【Net sales】In light of business results for the first nine months of the current fiscal year and the recall of DESALEX, the Company revised its net sales forecast. 【Profit】The Company revised its proft forecast as s shown above, as it expects that gross proft will decrease due to the downward revision of sales but that SG&A expenses will be less than initially forecast thanks to cost-cutting initiatives implemented since the beginning of this fiscal year. 【Dividend】There is no change to the dividend forecast (end of second quarter: 30 yen per share; annual dividend: 75 yen per share) announced on July 31, 2018. 11
Dec/2017 Dec/2018 ▷Net Sales decreased ¥0.9billion year on year. >Cost of sales ratio increased 3.9%. • Drug price revisions •Decrease in lump-sum revenue due to out- licensed product in the previous year >Cost of sales ratio increased 0.2%. ■■Gross Profit decreased ¥3.6billion  year on year >SG&A expenses decreased ¥2.6billion year on year. • Efforts to reduce costs • R & D expenses  decreased  ¥2.4billion •SG&A(excluding R&D) decreased  ¥0.3billion ■■Operating Income decreased ¥1.0billion year on year.
3
(unit : ¥ billion)
【Main points of forecast revision】
■■ The Company revised its business results forecast in light of business results for the first nine months of the current fiscal year and the voluntary recall of Desalex Tablets 5mg for the treatment of allergic diseases (see the news release dated January 7, 2019 for further details).
[Net sales]
For the reason stated above, in the ethical drugs business, revenues from core products such as PENTASA and DESALEX are now expected to be less than forecast.
[Profits]
The Company revised its profit forecasts as shown in the above table as it expects that gross profit will decrease due to the downward revision of sales but that SG&A expenses will be less than initially forecast thanks to cost-cutting initiatives implemented since the beginning of the current fiscal year, The Company is currently consulting MSD K.K., which is the holder of marketing approval for DESALAX, regarding action to be taken in response to the voluntary recall and suspension of sales for DESALEX, and will promptly disclose any new information that requires disclosure.
Ph III ~ Application submitted ※Changes from the previous announcement (Nov 5 2018)
※ Overactive bladder therapeutic agent "Beova tablets 50mg": released in November 2018
POC Project (Ph I ~ Ph II) ※Changes from the previous announcement (Nov 5 2018)
Licensing development
7
Sales, Profit or Loss of each report segment
9