May 12, 2016
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.
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 price revision   and patent expiries of main products, decrease of an upfront payment of a license agreement. As a result, we expect net sales to increase 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.
( 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 ratio decreased 1.6% ■Gross Profit increased ¥5.6billion year on year >SG&A expenses increased ¥0.7billion year on year •R&D expenses decreased ¥0.5billion •SG&A(excluding R&D) increased ¥1.2billion ■Operating Income increased ¥4.9billion year on
•extraordinary incorne(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. Dividend ratio 31.8% 3
Over-the-
counter drugs
( Units: ¥ million )
<Capital expenditure (Actual/Forecast)>
Ph III ~ Application submitted ※Changes from the previous announcement(Feb 3 2016)
POC Project (Ph I ~ Ph II)

Licensing development (preclinical)

Reference 9
(Note ) The Company is applying the Revised Accounting Standard for Disclosures about Segments of an Enterprise and Related Information and the Guidance on the Accounting Standard for  Disclosures about Segments of an Enterprise and Related Information. As a result, the reported segments are the Ethical Drugs Business and the Consumer Healthcare Business.
<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 ( Units: ¥ million ) ＜ Breakdown ＞ change ■Sales 119,483 (+6,362) ●Ethical drug sales in Japan (+1,616)
● Ethical drug sales overseas 5,586 (+4,554) 0.8 • Gatifloxacin 0.6 ↑ • Received an up front payment of FPR-2 agonists (+0.2) ● Generic Drugs 15,465 (一12) • 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 (一105) Equity-Method Affiliates: Nippon Rika Co., Ltd.

＜ Breakdown ＞
◆Cost of Sales Ratio： －1.6 percentage points (41.2 %→39.6%) • up front payment of FPR-2 agonists ◆R&D Ratio : －1.0 percentage points (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 :一0.8 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 ¥13,639(+¥1,575) ■ Dividend per share ¥58.00 * Consolidated payout ratio 31.8%
＜ Breakdown ＞ ■ Current Asset :  +9,419 • Cash, deposits (+15,060) • Notes and accounts receivable  (+1,289) • Mk securities (一11,878) • Inventory (+1,736)
■ Non-Current Liabilities :  +5,714
14
( Units: ¥ million )
※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.
( Units: ¥ million ) ＜ Breakdown ＞ change 106,390 (+7,938) ●Ethical drug sales in Japan
● Ethical drug sales overseas 5,343 (+4,503) 0.6 ↑ 0.8 (+0.2) ● Generic Drugs 6,878 (+474) * increase of Kyorin Rimedio product sales ●Over-the-counter Drugs and Others 3,686 2.0 ↑ 0.5 ↑
• Rubysta
( Units: ¥ million )くBreakdown ＞ ◆  Cost of Sales Ratio ：一1.3percentage 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  : ー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)
＜ Breakdown ＞ ■ Current Assets : +5,037 • Cash, deposits (+7,739) • Accounts receivable • Mk securities • Inventory ■ Fixed Assets • Tangible Assets • Intangible Assets • Investments
■ Current Liabilities :  一856 • Notes Payable (一650) ■ Non-Current Liabilities :   +4,163