November 5, 2013
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.
Second Quarter Consolidated Financial Ended September 30, 2013 【 Net sales】Sales of main product, generic drug increased year on year. And sales of KYORIN Pharmaceutical Facilities which commenced operations on Oct  1st /2012 contributed to increase of net sales.  As a result, consolidated net sales increased 6.0% year on year, to ¥50.8bln. 【 Net income】Gross profit rose due to the increase of Net sales. SG&A expenses increased due to mainly R&D Expenses. Consequently operating Income fell 0.9% year on year to ¥6.2bln, and Net Income rose 2.4%,year on year to ¥4.4bln. Consolidated Financial Results for the Fiscal Year Ending March 31, 2014(forecast) 【 Net sales】We expect sales fall below original forecast  in our ethical drugs business (new ethical drugs and over the counter drugs and others in Japan).Therefore we revised original forecast of fiscal year 2013 downward to ¥112.6bln(¥一0.4bln). 【 Net income】Influence of downward sales forecast, new product which launched this year, and exchange rate(lower yen) ,cost of sales ratio is expected to exceed original forecast. Therefore we revised original forecast to,¥18.2bln of Operating Income (¥一0.4bln) , ¥18.8bln of Ordinary income(¥ー0.4bln) , ¥12.4bln of.Net income(¥ー3bln). ◇The full year forecast of consolidated results for the year ending March 31, 2014, released on May 9, 2013, has been revised in this document. 1
(Units: ¥100mil) Highlight (1) ◇ Net Sales increased ¥2.9billion year on year •increase of Japan new ethical drugs sales •effect of KYORIN pharmaceutical Facilities sales Highlight ② ◇Cost of Sales ratio remained almost the same level as the previous year. ◇Gross Profit increased ¥1.9billion year on year Highlight ③ ◇SG&A expenses increased ¥1.9billion year on year. •R&D expenses increased ¥1.2billion (progress of the pipeline) •SG&A(excluding R&D) increased ¥0.7billion ◆Operating Income decreased ¥0.1 billion year on year. 2
(unit : ¥100mil) Mar/2014
Mar/2014 (original forecast)
Mar/2014 (original forecast) 17 1 1
<Capital expenditure (Actual/Forecast)>
Ph III ~ Application submitted ※Changes from the previous announcement(July 30 2013)
· Uritos ,an overactive bladder drug : launched in Korea July/2013 (Chong Kun Dang Pharmaceutical Corp.)
POC Project (Pre-clinical ~ Ph II) ※Changes from the previous announcement(July 30 2013)
健康はReference
(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.

＜ Breakdown ＞
Year on Year ¥50,851mil (+¥2,897mil) Sales ● Ethical drug sales in Japan ¥41,697mil (+¥3,035mil) Sep/2012 ⇒Sep/2013(¥ billion)
● Ethical drug sales overseas ¥1,160mil (+ ¥137mil) ¥0.9bln → 1.0bln （ + ¥0.1bln) • Gatifloxacin ● Generic Drugs ¥5,184mil (+ ¥128mil) • increase of health insurance pharmacy market's sales ● Over-the-counter Drugs and Others ¥1,197mil • Sales others decreased (一¥295mil)
<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. ●Consumer Healthcare Business ¥810mil (一¥109mil) • Sales decreased at Dr. Program Co., Ltd.

＜ Breakdown ＞
◆Cost of Sales Ratio : down 0.1 percentage points Y/Y (37.7%→37.6%) * Reason for increase : •effect of of KYORIN pharmaceutical Facilities , exchange rate. * Reason for decrease : • increase of royalty(licensing out product)
◆R&D Ratio :
up 1.8 percentage points Y/Y (10.2%→12.0%) *¥4.9bln→¥6.1bln (+ 1.2bln) • progress of the pipeline(KRP-209 Ph2a)
◆SG&A (exclude R&D) Expenses :
down 0.8 percentage  Points Y/Y(39.0%→38.2%) *￥18.7bln→¥19.4bln (+¥0.7bln) • increase of general expenses (head office relocation expense , patent royalty etc.) ■Operating Income ¥6,213mil  (一 ¥55mil) * Operating Income margin decreased 0.9percentage points to 12.2% ■Net Income  ¥4,397mil  (+¥101mil) ■Dividend per share(interim dividend) ¥10.0
＜ Breakdown ＞ ■Current Asset :  +¥3,400mil •Cash, deposits  (+¥13,532mil) • Notes and accounts receivable （一¥11,008mil） •Mk securities（+¥996mil） •Inventory (+¥2,174mil) •Other (一¥2,294mil)
■Fixed Assets：一¥2,528mil
• Tangible Assets （一¥344mil） •Intangible Assets（+¥100mil） •Investments (一¥2,284mil)
■Current Liabilities :  +¥494mil
•Notes Payable（+¥2,056mil） •Other (一¥1,561mil) ■Non-Current Liabilities   :一¥1,561mil

＜ Breakdown ＞
Year on Year ¥44,933mil (+¥1,982mil) Sales ● Ethical drug sales in Japan ¥40,214mil ( +¥1,552mil) Sep/2012⇒Sep/2013(¥ billion)
● Ethical drug sales overseas ( + ¥122mil) ¥1,097mil ¥0.9bln → ¥1.0bln    ( +   ¥0.1bln) • Gatifloxacin ● Generic Drugs ¥2,216mil •  Sales increased at KYORIN Rimedio (+ ¥253mil) ● Over-the-counter Drugs and Others • milton ¥1,405mil ( +  ¥53mil) ¥1.0bln → ¥1.0bln ( 0）

＜ Breakdown ＞
◆ Cost of Sales Ratio : down 1.1 percentage points Y/Y (35.8%→34.7%) * Reason for increase : •effect of exchange rate * Reason for decrease : •increase of royalty(licensing out product) ◆R&D Ratio : up 2.1percentage points Y/Y(10.9%→13.0%) *¥4.7bln→¥5.8bln(+¥1.1 bln) ◆SG&A (exclude R&D) expenses : up 0.2 percentage points Y/Y (40.6%→39.6%) ■ Operating Income   ¥5,575mil （一¥335mil） * Operating Income margin decreased 1.4 percentage points to 12.4% ■Net Income ¥4,261mil (+ ¥20mil)

＜ Breakdown ＞
■ Current Assets : +2,399mil • Cash, deposits  (+¥10,426mil) • Accounts receivable  (一¥10,739mil) • Mk securities  (+¥996mil) • Inventory （+¥1,964mil） ■ Fixed Assets  :  — ¥1,884mil • Tangible Assets （一¥133mil） • Intangible Assets （+¥31mil） •Investments  (一¥1,782mil) ■ Current Liabilities :  + ¥426mil •Notes Payable （+¥1,761mil） •Other (一¥1,335mil) ■ Non-Current Liabilities : 一¥675mil