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May 10, 2018
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 2017
[Net Sales] Regarding the new drug (in Japan), revenues from our main products Flutiform/Desalex increased, but overall net sales declined due to the decreased sales of Kipres, mainly because of the lapse of the patent for the drug.Regarding the new drug (overseas), a lump-sum payment for the progress of the development of the license-out product is booked, and regarding the generic medicine, net sales increased because of the continued growth of the net sales of the authorized generic of Montelukast (Kipres), but overall net sales were 110,640 million yen (down 4.1% from the previous period). [Profit]    Regarding the new drug (overseas), despite temporary income due to the progress of the development of the license-out product, gross operating income declined by 2,949 million yen from the previous year, due in part to the decreased sales of the new drug (in Japan). On the other hand, selling expenses and general administration expenses were reduced by 1,359 million yen from the previous term by absorbing the increased R&D cost as a result of efforts regarding cost reduction, but operating income declined by 8,822 million yen (down 15.3% from the previous year). Profit attributable to owners of parent is 6,574 million yen (down 10.0% from the previous period).
Consolidated Business Results Forecast for Fiscal 2018
[Net sales and income]    Regarding net sales, despite the impact of the National Health Insurance (NHI) price revision implemented in April 2018 and decreased sales of the new drug (overseas), overall net sales are expected to increase due to the growth of the main products and the growth of the new drug (in Japan) due to the start of sales of the newly-licensed product. In terms of profit, gross operating income is expected to decline, due in part to the impact of the NHI price revision and the decrease in the temporary revenue of the license-out product, but R&D costs and selling expenses and general administration expenses are expected to decline, and overall net sales and profits are expected to decline slightly. For the fiscal year ending March 2019, net sales are forecast to be 114.4 billion yen (up 3.4% from the previous year operating income 8.6 billion yen (down 2.5% from the previous year), and profit attributable to owners of parent 6.6 billion yen (up 0.4% from the previous year).
( Units: ¥ billion ) FY2016 FY2017 >Net Sales decreased ¥4.8bln year on year. >Cost of sales ratio increased 0.2% ■Gross Profit decreased ¥2.9bln year on year >SG&A expenses decreased ¥1.3bln year on year ・R&D expenses increased ¥0.6bln •SG&A(excluding R&D) decreased ¥2.0bln ■Operating Income decreased ¥1.6bln year on year
of Dr. Program Co., Ltd. Recorded. · Extraordinary loss : Expenses of around 400 million yen related to the settlement of a lawsuit for violation of US antitrust laws in connection with an out-licensed product (Gatifloxacin eyedrops) •Loss due to debt guarantee regarding a trust-type employee stock ownership incentive plan: About 400 million yen 3
( Units: ¥ million )
*The forecast for the fiscal year ending March 2019 is based on the assumption that the method of depreciation is (planned to be) changed from the declining-balance method to the straight-line method. <Capital expenditure (Actual/Forecast)>
( Units: ¥ billion )
Ph III ~ Application submitted
POC Project (Ph I ~ Ph II) ※Changes from the previous announcement (Feb 5 2018)
7健康はキヨReference 8
Sales, Profit or Loss of each report segment ( Units: ¥ billion )
( Units: ¥ million ) ＜ Breakdown : change ＞ ■ Sales ¥ 110,640mil （−4,733） ● Ethical drug sales in Japan ￥73,702mil（−10,075）
● Ethical drug sales overseas ￥3,339mil（+2,575) • received lump sum payment of out-licensed product • Gatifloxacin ¥ 0.4bln ↑ ¥ 0.6bln ( +0.2) ● Generic Drugs ¥ 27,662mil  (+2,638) • Seles of the MONTELUKAST"AG" for KIPRES increased • Sales for other companies decreased. ● Healthcare Business ¥ 5,937mil （+ 130） <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. KYORIN Medical Supply Co., Ltd. KYORIN Pharmaceutical Group Facilities Co.,Ltd. KYORIN Pharmaceutical Facilities  Co., Ltd Equity-Method Affiliates: Nippon Rika Co., Ltd.
＜ Breakdown ＞ ◆Cost of Sales Ratio :  +0.2 percentage points (44.1 %→44.3%) * •Decrease of sales of new ethical drugs(Japan) •Increase in loss on retirement of  inventories, etc. •Increased costs due to the impact of currency fluctuations
◆R&D Ratio : +1.1 percentage points
(11.8%→12.9%) *  ¥13.6bln→¥14.2bln(increase ¥0.6bln) •Book a lump-sum payment for the contract for the introduction of KRP-N118 (SK-1404) ◆SG&A (exclude R&D) Expenses : －0.3 (35.1%→34.8%) percentage points *¥40.5bln→¥38.5bln (一¥2.0bln) Decrease of sales  and general costs ■Operating Income ￥8,822mil（－1,591) * Operating Income margin decreased 1.0percentage points to 8.0% ￥6,574mil (一731) ■Dividend per share ¥58.00 * Consolidated Dividend ratio 65.9%
＜ Breakdown ＞ ■ Current Asset：－￥4,169mil • Cash, deposits ( + ¥ 498mil) • Notes and accounts receivable ( + ¥ 1,670mil) (一¥ 4,408mil) • Mk securities • Inventory ( －￥1,071mil) ■ Fixed Assets：＋￥9,851mil • Tangible Assets • Intangible Assets • Investments
■ Current Liabi :  + ¥101mil • Notes Payable • Other ー ¥ 891mil) (     — ¥ 993mil) ■ Non-Current Liabilities :  + ¥ 121mil
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( Units: ¥ million ) ＜Breakdown ＞ change Sales ¥ 97,459mil ( − 2,563) ● Ethical drug sales in Japan ￥71,522mil（－9,804） FY16 10.1 ↑ 7.5 ↑ 1.0 ↑ 32.7 ↑ 15.5 ↑ • Mucodyne ↑ 9.9
● Ethical drug sales oversea ￥3,115mil（+2,587） • received lump sum payment of out-licensed product • Gatifloxacin ¥ 0.4bln ¥ 0.6bln +0.2) ● Generic Drugs ¥ 17,703mil (+3,449) • Seles of the MONTELUKAST"AG" for KIPRES increased • Sales for other companies decreased. ●Healthcare   Business (+ 1,205) ¥ 5,117mil • Milton ↑ ¥ 2.2bln ¥ 2.2bln +0) • Rubysta ¥ 1.0bln ↑ ¥ 1.1 bin ( +0.1) •Increased sales of hand antiseptic product (¥:billion) • Flutiform • Uritos •Desalex • Kipres •	Pentasa
( Units: ¥ million ) ＜ Breakdown ＞ ◆  Cost of Sales Ratio ： +0.5percentage points (43.5%→44.0%) * •Decrease of sales of new ethical drugs(Japan) •Increase in loss on retirement of  inventories, etc. •Increased costs due to the impact of currency fluctuations ◆ R&D Ratio ： +0.7 percentage points (12.8%→13.5%) *¥12.8bln→¥13.2bln（+¥0.4bln） •Book a lump-sum payment for the contract for the introduction of KRP-N118 (SK-1404) ◆ SG&A (exclude R&D) Expenses   : - 0.5 percentage Points (36.9%→36.4%) ■ Operating Income ￥5,928mil     (1875) * Operating Income margin decreased 0.7percentage points to 6.1% ■ Net Income ￥4,637mil （十183)
( Units: ¥ million ) ＜ Breakdown ＞ ■ Current Assets ： -￥5,192mil • Cash, deposits ( －￥416mil) • Accounts receivable ( + ¥ 1,882mil) • Mk securities ( — ¥ 4,408mil) • Inventory ( − ¥ 1,535mil) + ¥ 9,064mil ■ Fixed Assets ・Tangible Assets • Intangible Assets ・Investments ( − ¥ 1,041mil) (  + ¥ 693mil) ( + ¥ 9,412mil) ◾ Current Liabilities ： + ¥ 1,521mil ( －￥683mil) ・ Notes Payable ◾ Non-Current Liabilities ：− ¥ 953mil