May 9, 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.

Consolidated Business Results for Fiscal 2012 (Actual)
[Net Sales] Sales of ethical drug and generic drug increased year on year. And sales of KYORIN Pharmaceutical Facilities which commenced operations on Oct  18 /2012 contributed to increase of net sales. As a result, consolidated net sales increased 3.7% year on year, to ¥107.0bln  for  the maximum sales in the past. [Income] While cost of sales ratio increased 1.7% due to the drug price revision , effect of KYORIN pharmaceutical Facilities sales, gross profit rose ¥0.6bln due to the increase of net sales. SG & A expenses fell given a decrease in R&D expenses(-20.8% YoY). Consequently, operating income rose 24.1% to ¥17.9bln , net income rose 34.6% to ¥12.4bln year on year, for the maximum in the past.
Consolidated Business Results Forecast for Fiscal 2013
[Net Sales and Income] While SG & A expenses increase , we e xpect sales to grow due to ethical drug sales in Japan and generic drugs sales, and effect of KYORIN pharmaceutical Facilities full year sales.  As a result, we e xpect net sales to increase 5.6% year on year to ¥113.0bln, operating income to increase 3.6% to ¥18.6bln, and net income to increase 2.2% to ¥12.7bln. 1
Units: ¥ billion Highlight Net Sales increased ¥3.8bln year on year. increase of Japan ethical and generic drugs KYORIN Pharmaceutical Facilities commenced operations on Oct  1* /2012 Cost of Sales Ratio increased 1.7points. Sales of generic drugs increased. Drug price revision (in the 6% range for KYORIN pharmaceutical) Effect of KYORIN pharmaceutical facilities sales. ▷Gross profit increased ¥0.6bln year on year. SG&A Expenses decreased ¥2.9bln year on year. (mainly, decrease of R&D Expenses) ▷Operating Income increased ¥3.4bln year on year. FY11
Units: ¥ billion
Units: ¥ million
<Capital expenditure (Actual/Forecast)>
POC Project (Pre-clinical ~ Ph II) Changes from the previous announcement (Feb 4, 2013)
煌底は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.
<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 ¥107,031 ¥3,798 Ethical drug sales in Japan
Ethical drug sales overseas ¥2,400 ¥385 Gatifloxacin 1.7 1.6 0.1) Generic Drugs   ¥ 10,095 ¥1,439 Health insurance pharmacy market's sales and contract manufacturing's sales increased. Over-the-counter Drugs and Others ¥4,739 ¥392 increase of Milton and over the counter drugs Consumer Healthcare Business ¥1,869 ¥708 decrease of Dr.Program's sales Equity-Method Affiliates   Nippon Rika Co., Ltd.

Breakdown
Cost of Sales Ratio :  UP 1.7 percentage points (35.8    →37.5    ) Sales of generic drugs increased. Drug price revision (in the 6% range for KYORIN pharma) Effect of KYORIN pharmaceutical facilities sales R&D Ratio : DOWN 3.2 percentage Points (13.5 →10.3 ) ¥14.0bln→¥11.1bln(decrease ¥2.9bln) Expenses associated with the progress of the R&D were posted in the previous year . (KRP-108Ph3  PENTASA Ph3   discontinued of KRP-104) SG&A (exclude R&D) Expenses : DOWN 1.3 percentage  Points (36.7 →35.4 ) ¥37.9bIn→¥37.9bIn Operating Income ¥17,948( ¥3,484) Operating Income margin increased 2.8percentage points to 16.8% Net Income ¥12,422(   ¥3,190) Dividend per share ¥50.00 Consolidated payout ratio 30.1%

Breakdown
Current Asset ¥8,414mil Cash, deposits ¥245mil Notes and accounts receivable ¥1,487mil Mk securities ¥4,295mil ¥800mil Inventory Other ¥3,677mil Fixed Assets ¥880mil Tangible Assets ¥3,665mil Intangible Assets ¥70mil Investments ¥2,854mil Current Liabilities ¥487mil Notes Payable ¥486mil ¥0mil Other Non-Current Liabilities ¥1,115mil
Units: ¥ million Breakdown ¥95,894mil ¥2,197mil Sales Ethical drug sales in Japan ¥86,698mil ¥702mil
Ethical drug sales overseas Gatifloxacin
Generic Drugs ¥4,116mil ¥909mil Mainly the effect from consolidating distribution at KYORIN Rimedio Over-the-counter Drugs and Others
¥211mil milton 2.0 + 0.1

Breakdown
Cost of Sales Ratio :  UP 1.1 percentage points (34.2 →35.3 ) Reason for increase : Sales of generic drugs increased. Drug price revision(in the 6% range for KYORIN pharmaceutical) R&D Ratio : DOWN 3.2 percentage Points (14.4 →11.2 ) ¥13.5bln→¥10.7bln(decrease of approx. ¥2.8bln) Reason for decrease : Expenses associated with the progress of the R&D were posted in the previous year . (KRP-108Ph3  PENTASA Ph3   discontinued of KRP-104) SG&A (exclude R&D) Expenses : DOWN 0.9 percentage Points   (36.5    →36.5    ) Operating Income ¥17,127 (   3,155) Operating Income margin increased 3.0percentage points to 17.9% Net Income ¥11,931 (   2,657)
Units: ¥ million
Breakdown
Current Assets ¥3,499mil Cash, deposits ¥2,252mil Accounts receivable    + ¥1,273mil Mk securities ¥4,295mil ¥1,261mil Inventory ¥3,603mil Fixed Assets Tangible Assets ¥156mil Intangible Assets ¥104mil ¥3,343mil Investments ¥354mil Current Liabilities Notes Payable ¥1,164mil Other ¥1,518mil Non-Current Liabilities ¥1,125mil