April 1, 2008
Revision of forecasts for year ending December 31, 2008
concomitant with gain on change in equity arising from share exchange and consolidation into Kirin Group
Tokyo, April 1, 2008— Kirin Holdings Company, Limited ("Kirin") today announced revised consolidated and non-consolidated interim and full-year forecasts for the fiscal year ending December 31, 2008, based on a gain on change in equity and the consolidation of earnings arising from the share exchange undertaken between Kirin's consolidated subsidiary Kirin Pharma Company, Limited ("Kirin Pharma") and Kyowa Hakko Kogyo Co., Ltd. ("Kyowa Hakko"). The previous forecasts were announced on February 7, 2008 with the release of full-year results for the previous fiscal year.
(1)Interim forecasts
| Sales | Operating income | Ordinary income | Net income | |
|---|---|---|---|---|
| Previous (A) | 936,000 | 45,000 | 40,000 | 12,000 |
| Revised (B) | 1,030,000 | 51,000 | 45,000 | 80,000 |
| Change (B) — (A) | 94,000 | 6,000 | 5,000 | 68,000 |
| Change in percent | 10.0% | 13.3% | 12.5% | 566.7% |
| Previous interim results (To June 30, 2007) |
836,020 | 42,881 | 45,696 | 16,796 |
| Sales | Operating income | Ordinary income | Net income | |
|---|---|---|---|---|
| Previous (A) | 56,300 | 44,700 | 44,000 | 42,500 |
| Revised (B) | 60,000 | 48,000 | 47,000 | 45,000 |
| Change (B) — (A) | 3,700 | 3,300 | 3,000 | 2,500 |
| Change in percent | 6.6% | 7.4% | 6.8% | 5.9% |
(2)Full-year forecasts
| Sales | Operating income | Ordinary income | Net income | |
|---|---|---|---|---|
| Previous (A) | 2,100,000 | 133,000 | 124,000 | 57,000 |
| Revised (B) | 2,390,000 | 160,000 | 148,000 | 127,000 |
| Change (B) — (A) | 290,000 | 27,000 | 24,000 | 70,000 |
| Change in percent | 13.8% | 20.3% | 19.4% | 122.8% |
| Previous full-year results (To December 31, 2007) |
1,801,164 | 120,608 | 123,389 | 66,713 |
| Sales | Operating income | Ordinary income | Net income | |
|---|---|---|---|---|
| Previous (A) | 68,800 | 45,000 | 43,300 | 41,600 |
| Revised (B) | 73,000 | 49,000 | 48,000 | 46,000 |
| Change (B) — (A) | 4,200 | 4,000 | 4,700 | 4,400 |
| Change in percent | 6.1% | 8.9% | 10.9% | 10.6% |
(3)Reason for revisions
Kyowa Hakko has become a consolidated subsidiary of Kirin, as a result of Kirin acquiring ordinary Kyowa Hakko shares through a tender offer implemented between October 31, 2007 and December 6, 2007 in combination with Kyowa Hakko shares acquired through a share exchange implemented between Kirin's consolidated subsidiary Kirin Pharma and Kyowa Hakko on April 1, 2008. Concomitant with this, extraordinary income of approximately ¥70 billion is expected to arise as a gain on change in equity.
This gain on change in equity is recognized as arising from the difference between the value of Kirin Pharma shares held by Kirin that were exchanged (the decrease of Kirin's holding of Kirin Pharma shares, based on its market price) and the reduced amount of Kirin's holding of Kirin Pharma shares (the decrease of the value of Kirin's holding of Kirin Pharma shares based on the fair book value of Kirin's holdings of Kirin Pharma immediately prior to the share exchange)
In addition to the extraordinary income noted above, the consolidation of Kyowa Hakko is forecast to increase Kirin's net sales, operating income and ordinary income for the period.
Dividend income from group companies including Kyowa Hakko and others is forecast to increase.
As a result of the above, forecast consolidated sales for the interim period ending June 30, 2008 have been revised to ¥1.03 trillion, 10% higher than the previous forecast, and forecast consolidated net income for the interim period has been revised to ¥80 billion, 566.7% higher than the previous forecast. Forecast consolidated sales for the full year ending December 31, 2008 have been revised to ¥2.39 trillion, 13.8% higher than the previous forecast, and forecast consolidated net income for the full year has been revised to ¥127 billion, 122.8% higher than the previous forecast.
ENDS