Appendix to the Consolidated Financial Summary Fiscal 2015 Third Quarter

October 28, 2015


Kyowa Hakko Kirin Co., Ltd.

Appendix to the Consolidated Financial Summary Fiscal 2015 Third Quarter


(January 1, 2015 - September 30, 2015)


This document was made as a supplement to the Kessan Tanshin (financial report), disclosed at the Tokyo Stock Exchange on October 28, 2015 for the third quarter of Fiscal 2015, the nine-month period from January 1, 2015 to September 30, 2015.

This document contains forward-looking statements based on a number of assumptions and beliefs held by

management in light of information currently available. For a variety of reasons, actual financial results may differ materially from the forecasts presented here.

Figures presented in this document have been rounded down to the nearest whole number.




Index Page



  1. Consolidated Financial Results

    1. Trends in consolidated income 1

    2. Trends in results by segment 2

    3. Other trends 3

    4. Consolidated Balance Sheets 4

    5. Consolidated Subsidiaries and Affiliates 5

    6. Kyowa Hakko Kirin Sales of Main Products 6

    7. Segment Information and Main Subsidiaries Operating Profit or Loss 1.Pharmaceuticals segment 8

      2.Bio-Chemicals segment 9

    8. R&D Pipeline 10


    9. The average exchange rate for each period was as follows


      Unit: yen





      Contact

      Kyowa Hakko Kirin Co., Ltd.

      Corporate Communications Department Tel 81 3 3282 0009

      1. Consolidated Financial Results
        1. Trends in consolidated income

          Accumulative Billions of yen, rounded down

          FY 2014 results

          FY 2015 results

          FY 2015

          forecasts


          Jan - Mar


          Jan - Jun


          Jan - Sep


          Jan - Dec


          Jan - Mar


          %


          Jan - Jun


          %


          Jan - Sep

          Change Amount


          %


          Jan - Dec


          %


          Jan - Dec


          %

          Net sales

          86.0

          161.8

          238.9

          333.4

          89.5

          104%

          178.8

          110%

          272.9

          34.0

          114%

          -

          -

          360.0

          108%

          Gross Profit

          51.2

          98.2

          146.5

          205.9

          51.9

          101%

          108.8

          111%

          170.4

          23.8

          116%

          -

          -

          -

          -

          Selling, general and administrative expenses

          38.8

          79.8

          120.3

          169.7

          42.5

          110%

          86.3

          108%

          129.5

          9.2

          108%

          -

          -

          -

          -

          Operating income

          (prior to amortization of goodwill)

          14.7

          23.0

          33.2

          45.4

          11.6


          79%

          27.0


          118%

          47.8


          14.6


          144%

          -

          -

          56.2


          124%

          Operating income

          12.4

          18.4

          26.2

          36.1

          9.3

          75%

          22.4

          122%

          40.8

          14.6

          156%

          -

          -

          47.0

          130%

          Non-operating income


          Non-operating expenses

          1.0

          1.3

          1.6

          3.1

          1.5

          4.0

          2.3

          8.9

          1.1

          2.4

          115%


          174%

          1.8

          4.2

          117%


          135%

          2.7

          6.9

          1.2


          2.9

          179%


          173%

          -

          -

          -

          -

          -

          -

          -


          -

          Ordinary income

          12.0

          16.8

          23.8

          29.5

          8.0

          67%

          20.0

          119%

          36.6

          12.8

          154%

          -

          -

          41.0

          139%

          Extraordinary income


          Extraordinary loss

          0.3

          -

          0.3

          0.4

          0.3

          1.5

          0.3

          2.5

          0.6

          0.4

          201%


          -

          0.6

          3.4

          201%


          828%

          7.5

          3.5

          7.2


          2.0

          -


          234%

          -

          -

          -

          -

          -

          -

          -


          -

          Income before income taxes and minority interests

          12.3

          16.7

          22.5

          27.2

          8.2

          67%

          17.2

          103%

          40.6

          18.0

          180%

          -

          -

          39.0

          143%

          Income taxes

          6.0

          7.5

          10.5

          11.3

          3.6

          61%

          7.6

          102%

          14.6

          4.0

          139%

          -

          -

          -

          -

          Net income

          6.3

          9.1

          12.0

          15.8

          4.6

          73%

          9.5

          104%

          26.0

          14.0

          216%

          -

          -

          26.0

          164%

          3.8

          6.6 15.1 27.2 3.0 78% 14.2 213% 22.2

          7.0 147%

          - - -

          -

          15.80

          25.24 34.67 45.95 12.65 80% 25.85 102% 60.27

          25.60 174%

          - - 64.41

          140%

          Comprehensive income


          EPS prior to amortization of goodwill (¥/share)

          • 1 'Prior to amortization of goodwill' refers to profits prior to the deduction of amortization of the goodwill arising on the reverse acquisition in April 2008 (Kirin Pharma share transfer).

            (Note: This adjustment does not include goodwill amortization in respect of the acquisition of ProStrakan.)

          • 2 The FY 2015 forecasts are the revised forecasts announced on July 24, 2015.


          FY 2014 results

          FY 2015 results

          Jan - Mar

          Apr - Jun

          Jul - Sep

          Oct - Dec

          Jan - Mar

          %

          Apr - Jun

          %

          Jul - Sep

          Change Amount

          %

          Oct - Dec

          %

          Net sales

          86.0

          75.8

          77.0

          94.5

          89.5

          104%

          89.2

          118%

          94.1

          17.0

          122%

          -

          -

          Gross Profit

          51.2

          46.9

          48.3

          59.3

          51.9

          101%

          56.9

          121%

          61.5

          13.1

          127%

          -

          -

          Selling, general and administrative expenses

          38.8

          40.9

          40.5

          49.4

          42.5

          110%

          43.8

          107%

          43.1

          2.6

          107%

          -

          -

          Operating income

          (Prior to amortization of goodwill)

          14.7

          8.2

          10.1

          12.2

          11.6

          79%

          15.4

          187%

          20.7

          10.5

          204%

          -

          -

          Operating income

          12.4

          5.9

          7.8

          9.8

          9.3

          75%

          13.1

          220%

          18.4

          10.5

          234%

          -

          -

          Non-operating income


          Non-operating expenses

          1.0

          1.3

          0.5

          1.7

          (0.0)

          0.8

          0.7

          4.9

          1.1

          2.4

          115%


          174%

          0.7

          1.8

          119%


          105%

          0.9

          2.7

          0.9

          1.8

          -


          310%

          -

          -

          -


          -

          Ordinary income

          12.0

          4.8

          6.9

          5.7

          8.0

          67%

          11.9

          250%

          16.6

          9.6

          239%

          -

          -

          Extraordinary income


          Extraordinary loss

          0.3

          -

          -

          0.4

          -

          1.0

          -

          1.0

          0.6

          0.4

          201%

          -

          -

          3.0

          -

          729%

          6.9

          0.0

          6.9

          (1.0)

          -


          6%

          -

          -

          -


          -

          Income before income taxes and minority interestses

          12.3

          4.3

          5.8

          4.6

          8.2

          67%

          8.9

          204%

          23.4

          17.6

          402%

          -

          -

          Income taxes

          6.0

          1.5

          2.9

          0.7

          3.6

          61%

          4.0

          262%

          6.9

          3.9

          233%

          -

          -

          Net income

          6.3

          2.8

          2.8

          3.8

          4.6

          73%

          4.9

          172%

          16.5

          13.6

          580%

          -

          -

          Quarterly

          Bllions of yen, rounded down



          EPS prior to amortization of goodwill (¥/share)


          15.80 9.44 9.44 11.28 12.65 80% 13.21 140% 34.42 24.98 365% - -

          I. Consolidated Financial Results

        2. Trends in results by segment

          1. Reported segment Accumulative


            Billions of yen, rounded down

            FY 2014 results

            FY 2015 results

            FY 2015 forecasts


            Jan - Mar


            Jan - Jun


            Jan - Sep


            Jan - Dec


            Jan - Mar


            %


            Jan - Jun


            %


            Jan - Sep

            Change Amount


            %


            Jan - Dec


            %


            Jan - Dec


            %

            Net sales

            86.0

            161.8

            238.9

            333.4

            89.5

            104%

            178.8

            110%

            272.9

            34.0

            114%

            -

            -

            360.0

            108%

            Pharmaceuticals

            63.1

            119.5

            178.6

            253.0

            68.0

            108%

            135.3

            113%

            208.7

            30.0

            117%

            -

            -

            276.0

            109%

            Elimination of inter-segment sales

            (0.2)

            (0.5)

            (0.8)

            (1.1)

            (0.2)

            -

            (0.4)

            -

            (0.6)

            0.2

            -

            -

            -

            (1.0)

            -

            Bio-Chemicals

            23.5

            44.0

            62.7

            83.9

            22.1

            94%

            45.0

            102%

            67.1

            4.3

            107%

            -

            -

            88.0

            105%

            Elimination of inter-segment sales

            (0.3)

            (1.1)

            (1.6)

            (2.4)

            (0.3)

            -

            (1.0)

            -

            (2.2)

            (0.6)

            -

            -

            -

            (3.0)

            -

            Operating income

            12.4

            18.4

            26.2

            36.1

            9.3

            75%

            22.4

            122%

            40.8

            14.6

            156%

            -

            -

            47.0

            130%

            Before goodwill amortization

            14.7

            23.0

            33.2

            45.4

            11.6

            79%

            27.0

            118%

            47.8

            14.6

            144%

            -

            -

            56.2

            124%

            Pharmaceuticals

            9.4

            14.1

            20.6

            29.0

            7.7

            83%

            18.5

            131%

            34.9

            14.3

            170%

            -

            -

            38.5

            132%

            11.5

            18.4

            27.0

            37.6

            9.9

            86%

            22.8

            124%

            41.4

            14.3

            153%

            -

            -

            47.1

            125%

            Bio-Chemicals

            3.0

            4.2

            5.6

            7.2

            1.4

            48%

            3.9

            95%

            6.4

            0.7

            114%

            -

            -

            8.5

            117%

            3.2

            4.5

            6.1

            7.9

            1.6

            50%

            4.3

            95%

            6.9

            0.7

            112%

            -

            -

            9.1

            115%


            Total

            12.4

            18.4

            26.2

            36.3

            9.2

            74%

            22.5

            123%

            41.3

            15.1

            157%

            -

            -

            47.0

            129%

            14.8

            23.0

            33.2

            45.5

            11.5

            78%

            27.1

            118%

            48.3

            15.1

            145%

            -

            -

            56.2

            123%

            Eliminations

            (0.0)

            0.0

            (0.0)

            (0.1)

            0.0

            -

            (0.0)

            -

            (0.5)

            (0.5)

            -

            -

            -

            -

            -


            Quarterly

            Billions of yen, rounded down

            FY 2014 results

            FY 2015 results


            Jan - Mar


            Apr - Jun


            Jul - Sep


            Oct - Dec


            Jan - Mar


            %


            Apr - Jun


            %


            Jul - Sep

            Change Amount


            %


            Oct - Dec


            %

            Net sales

            86.0

            75.8

            77.0

            94.5

            89.5

            104%

            89.2

            118%

            94.1

            17.0

            122%

            -

            -

            Pharmaceuticals

            63.1

            56.3

            59.1

            74.3

            68.0

            108%

            67.2

            119%

            73.4

            14.2

            124%

            -

            -

            Elimination of inter-segment sales

            (0.2)

            (0.2)

            (0.2)

            (0.2)

            (0.2)

            -

            (0.2)

            -

            (0.2)

            0.0

            -

            -

            -

            Bio-Chemicals

            23.5

            20.4

            18.7

            21.2

            22.1

            94%

            22.8

            112%

            22.0

            3.3

            118%

            -

            -

            Elimination of inter-segment sales

            (0.3)

            (0.7)

            (0.5)

            (0.7)

            (0.3)

            -

            (0.7)

            -

            (1.1)

            (0.6)

            -

            -

            -

            Operating income

            12.4

            5.9

            7.8

            9.8

            9.3

            75%

            13.1

            220%

            18.4

            10.5

            234%

            -

            -

            Before goodwill amortization

            14.7

            8.2

            10.1

            12.2

            11.6

            79%

            15.4

            187%

            20.7

            10.5

            204%

            -

            -

            Pharmaceuticals

            9.4

            4.7

            6.4

            8.4

            7.7

            83%

            10.7

            227%

            16.3

            9.9

            255%

            -

            -

            11.5

            6.8

            8.5

            10.6

            9.9

            86%

            12.9

            187%

            18.5

            9.9

            216%

            -

            -

            Bio-Chemicals

            3.0

            1.1

            1.4

            1.6

            1.4

            48%

            2.5

            217%

            2.4

            0.9

            168%

            -

            -

            3.2

            1.3

            1.6

            1.7

            1.6

            50%

            2.6

            203%

            2.5

            0.9

            162%

            -

            -

            Total

            12.4

            5.9

            7.8

            10.0

            9.2

            74%

            13.3

            225%

            18.8

            10.9

            239%

            -

            -

            14.8

            8.2

            10.1

            12.3

            11.5

            78%

            15.6

            190%

            21.1

            10.9

            207%

            -

            -

            Eliminations

            (0.0)

            0.0

            (0.0)

            (0.1)

            0.0

            -

            (0.1)

            -

            (0.4)

            (0.4)

            -

            -

            -


          2. Regional sales

          3. Billions of yen, rounded down

            FY 2014 results

            FY 2015 results


            Jan - Mar

            Percentage of consolidated sales


            Jan - Jun

            Percentage of consolidated sales


            Jan - Sep

            Percentage of consolidated sales


            Jan - Dec

            Percentage of consolidated sales


            Jan - Mar

            Percentage of consolidated sales


            Jan - Jun

            Percentage of consolidated sales


            Jan - Sep

            Percentage of consolidated sales


            Jan - Dec

            Percentage of consolidated sales

            Japan sales

            61.8

            71.9%

            115.7

            71.5%

            170.0

            71.2%

            239.2

            71.7%

            61.6

            68.8%

            122.8

            68.7%

            184.4

            67.6%

            -

            -

            Overseas sales

            24.2

            28.1%

            46.1

            28.5%

            68.8

            28.8%

            94.2

            28.3%

            27.9

            31.2%

            56.0

            31.3%

            88.4

            32.4%

            -

            -

            America

            5.5

            6.4%

            11.4

            7.1%

            16.5

            6.9%

            21.6

            6.5%

            7.4

            8.3%

            13.7

            7.7%

            19.5

            7.2%

            -

            -

            Europe

            11.0

            12.8%

            21.3

            13.2%

            32.6

            13.7%

            45.7

            13.7%

            13.2

            14.8%

            26.3

            14.7%

            45.5

            16.7%

            -

            -

            Asia

            7.3

            8.5%

            12.8

            8.0%

            19.0

            8.0%

            25.8

            7.8%

            7.0

            7.9%

            15.4

            8.6%

            22.6

            8.3%

            -

            -

            Other regions

            0.2

            0.3%

            0.4

            0.3%

            0.6

            0.3%

            0.9

            0.3%

            0.2

            0.3%

            0.4

            0.3%

            0.6

            0.3%

            -

            -

            Total consolidated net sales

            86.0

            100%

            161.8

            100%

            238.9

            100%

            333.4

            100%

            89.5

            100%

            178.8

            100%

            272.9

            100%

            -

            -

            * Sales classified by region or country based on location of customer.

            1. Consolidated Financial Results
          4. Other trends

            1. R&D Expenses


              Billions of yen, rounded down

              FY 2014 results

              FY 2015 results

              FY 2015

              forecasts


              Jan - Mar


              Jan - Jun


              Jan - Sep


              Jan - Dec


              Jan - Mar


              Jan - Jun


              Jan - Sep


              Jan - Dec


              Jan - Dec

              R&D expenses

              10.3

              21.9

              32.5

              47.7

              12.1

              24.1

              36.2

              -

              51.6

              R&D to net sales ratio

              12.0%

              13.5%

              13.6%

              14.3%

              13.5%

              13.5%

              13.3%

              -

              14.3%

              Pharmaceuticals

              9.5

              20.2

              30.0

              44.0

              11.3

              22.5

              33.8

              -

              48.2

              R&D to net sales ratio

              15.2%

              16.9%

              16.8%

              17.4%

              16.7%

              16.7%

              16.2%

              -

              17.5%

              Bio-Chemicals

              0.7

              1.7

              2.5

              3.6

              0.7

              1.6

              2.3

              -

              3.3


            2. Capital Expenditure (Property, plant and equipment)

              Billions of yen, rounded down

              FY 2014 results

              FY 2015 results

              FY 2015

              forecasts

              Jan - Mar

              Jan - Jun

              Jan - Sep

              Jan - Dec

              Jan - Mar

              Jan - Jun

              Jan - Sep

              Jan - Dec

              Jan - Dec

              Capital expenditure

              5.3

              12.1

              20.9

              27.2

              5.6

              10.2

              13.3

              -

              22.0

              Pharmaceuticals


              Bio-Chemicals

              2.8

              2.4

              6.5

              5.5

              11.5

              9.4

              14.8

              12.4

              2.2

              3.3

              4.6

              5.6

              6.9

              6.3

              -

              -

              11.8

              10.2


            3. Depreciation Expenses (Property, plant and equipment and Intangible assets) Billions of yen, rounded down

              FY 2014 results

              FY 2015 results

              FY 2015

              forecasts


              Jan - Mar


              Jan - Jun


              Jan - Sep


              Jan - Dec


              Jan - Mar


              Jan - Jun


              Jan - Sep


              Jan - Dec


              Jan - Dec

              Depreciation and amortization expenses

              5.2

              10.8

              16.9

              23.8

              5.5

              11.2

              17.1

              -

              22.7

              Amortization of intangible assets

              1.9

              3.9

              6.2

              8.9

              2.6

              5.1

              7.7

              -

              10.0

              Pharmaceuticals

              3.6

              7.6

              12.0

              17.0

              4.0

              8.1

              12.3

              -

              16.3

              Amortization of intangible assets

              1.9

              3.8

              6.2

              8.8

              2.6

              5.1

              7.6

              -

              10.0

              Bio-Chemicals

              1.5

              3.2

              4.8

              6.8

              1.4

              3.0

              4.8

              -

              6.4

              *Depreciation expenses for intangible assets do not include amortization of goodwill.


            4. Amortization of Goodwill

            Billions of yen, rounded down

            FY 2014 results

            FY 2015 results

            FY 2015

            forecasts


            Jan - Mar


            Jan - Jun


            Jan - Sep


            Jan - Dec


            Jan - Mar


            Jan - Jun


            Jan - Sep


            Jan - Dec


            Jan - Dec

            Amortization expenses

            3.0

            6.0

            9.3

            12.8

            3.3

            6.6

            10.0

            -

            13.3

            Reverse acquisition amortization of goodwill

            2.3

            4.6

            6.9

            9.2

            2.3

            4.6

            6.9

            -

            9.2

            Pharmaceuticals

            2.8

            5.6

            8.6

            11.8

            3.1

            6.3

            9.6

            -

            12.7

            Reverse acquisition amortization of goodwill

            2.1

            4.3

            6.4

            8.6

            2.1

            4.3

            6.4

            -

            8.6

            Bio-Chemicals

            0.2

            0.4

            0.6

            0.9

            0.1

            0.3

            0.4

            -

            0.6

            Reverse acquisition amortization of goodwill

            0.1

            0.3

            0.4

            0.6

            0.1

            0.3

            0.4

            -

            0.6

            *'Reverse acquisition amortization of goodwill' refers to amortization of goodwill arising on the reverse acquisition in April 2008 (Kirin Pharma share transfer).

            1. Consolidated Balance Sheets


              Billions of yen, rounded down

              2013

              2014

              2015


              Dec 31


              Mar 31


              June 30


              Sep 30


              Dec 31


              Mar 31


              June 30


              Sep 30

              Change previous year end


              Dec 31

              Assets

              719.2

              689.9

              683.1

              730.3

              719.1

              699.8

              708.5

              708.2

              (10.9)

              -

              Current assets

              329.3

              300.8

              296.0

              295.7

              283.1

              270.3

              278.0

              307.4

              24.2

              -

              Cash and deposits

              20.1

              17.2

              15.5

              17.3

              20.6

              16.5

              16.2

              17.2

              (3.3)

              -

              Notes and accounts receivable-trade

              98.6

              102.9

              93.4

              91.2

              108.8

              106.2

              105.2

              100.7

              (8.1)

              -

              Inventories

              75.7

              78.9

              79.9

              90.3

              91.2

              91.5

              90.2

              88.1

              (3.1)

              -

              Deferred tax assets

              10.4

              10.2

              10.3

              10.6

              10.6

              10.2

              10.2

              9.8

              (0.7)

              -

              Short-term loans receivable

              113.1

              85.1

              89.6

              77.7

              41.6

              36.2

              45.1

              80.0

              38.3

              -

              Other

              11.2

              6.3

              7.1

              8.3

              10.0

              9.4

              10.8

              11.3

              1.2

              -

              Non-current assets

              389.9

              389.0

              387.0

              434.6

              435.9

              429.5

              430.5

              400.7

              (35.2)

              -

              Property, plant and equipment

              137.9

              139.4

              142.2

              148.2

              151.8

              154.5

              152.9

              149.8

              (2.0)

              -

              Buildings and structures

              42.2

              41.3

              42.0

              41.9

              44.4

              45.5

              48.2

              49.0

              4.5

              -

              Machinery, equipment and vehicles

              21.0

              21.5

              21.6

              22.0

              22.1

              25.8

              30.4

              29.6

              7.4

              -

              Land

              54.6

              54.5

              54.4

              54.2

              54.2

              54.0

              51.0

              49.5

              (4.7)

              -

              Other

              20.0

              21.9

              24.0

              29.9

              30.9

              29.0

              23.2

              21.6

              (9.3)

              -

              Intangible assets

              212.0

              207.6

              203.0

              241.5

              241.5

              228.9

              230.6

              220.2

              (21.3)

              -

              Goodwill

              163.7

              161.6

              158.8

              169.5

              173.2

              165.7

              166.0

              159.9

              (13.2)

              -

              Sales rights

              46.5

              44.3

              42.8

              70.4

              67.2

              62.3

              63.8

              59.4

              (7.7)

              -

              Other

              1.8

              1.6

              1.4

              1.4

              1.0

              0.8

              0.8

              0.7

              (0.2)

              -

              Investments and other assets

              39.9

              41.9

              41.7

              44.8

              42.5

              46.0

              46.9

              30.6

              (11.8)

              -

              Investment securities

              24.6

              23.4

              23.1

              24.4

              22.7

              27.6

              28.4

              11.6

              (11.0)

              -

              Net defined benefit asset

              -

              -

              -

              -

              6.4

              5.8

              6.1

              6.5

              0.1

              -

              Deferred tax assets

              3.8

              3.9

              3.9

              5.5

              8.0

              7.1

              7.0

              7.3

              (0.7)

              -

              Other

              11.4

              14.5

              14.6

              14.8

              5.2

              5.3

              5.2

              5.0

              (0.1)

              -

              Liabilities

              123.8

              98.4

              88.8

              134.4

              113.7

              100.0

              97.5

              96.0

              (17.7)

              -

              Current liabilities

              85.0

              76.7

              67.2

              108.3

              85.1

              76.4

              74.6

              74.8

              (10.3)

              -

              Notes and accounts payable-trade

              22.5

              26.0

              17.5

              21.6

              22.7

              24.5

              17.2

              16.3

              (6.3)

              -

              Short-term loans payable

              6.2

              4.8

              5.7

              4.8

              4.8

              4.9

              4.8

              4.8

              (0.0)

              -

              Accounts payable-other

              36.5

              27.3

              28.3

              31.8

              39.2

              29.9

              35.4

              30.8

              (8.4)

              -

              Income taxes payable

              10.4

              5.4

              7.2

              5.9

              7.7

              4.4

              8.7

              10.3

              2.6

              -

              Provision

              1.8

              5.5

              1.5

              5.8

              2.7

              5.5

              2.0

              6.3

              3.6

              -

              Other

              7.4

              7.5

              6.6

              38.2

              7.8

              7.0

              6.1

              6.1

              (1.7)

              -

              Non-current liabilities

              38.7

              21.7

              21.6

              26.0

              28.5

              23.5

              22.9

              21.2

              (7.3)

              -

              Deferred tax liabilities

              11.8

              11.3

              11.3

              15.8

              16.2

              14.5

              13.8

              12.1

              (4.0)

              -

              Net defined benefit liability

              -

              -

              -

              -

              3.7

              2.0

              2.0

              2.0

              (1.6)

              -

              Provision

              22.9

              6.4

              6.3

              6.4

              3.4

              3.4

              3.3

              3.3

              (0.0)

              -

              Other

              3.9

              3.9

              3.9

              3.8

              5.1

              3.5

              3.6

              3.6

              (1.5)

              -

              Net assets

              595.4

              591.4

              594.3

              595.9

              605.3

              599.8

              611.0

              612.1

              6.7

              -

              Shareholders' equity

              578.3

              577.8

              580.6

              576.6

              580.4

              576.8

              581.7

              591.3

              10.8

              -

              Capital stock

              26.7

              26.7

              26.7

              26.7

              26.7

              26.7

              26.7

              26.7

              -

              -

              Capital surplus

              512.3

              512.3

              512.3

              512.3

              512.3

              509.1

              509.1

              509.1

              (3.2)

              -

              Retained earnings

              65.8

              65.3

              68.2

              64.2

              68.1

              67.6

              72.5

              82.2

              14.1

              -

              Treasury shares

              (26.6)

              (26.5)

              (26.6)

              (26.6)

              (26.6)

              (26.6)

              (26.7)

              (26.8)

              (0.1)

              -

              Accumulated other comprehensive income

              15.6

              13.3

              13.3

              18.9

              24.5

              22.6

              28.9

              20.4

              (4.1)

              -

              Valuation difference on available-for-sale securities

              1.4

              1.2

              1.4

              2.2

              2.7

              5.1

              5.0

              2.2

              (0.4)

              -

              Foreign currency translation adjustment

              14.2

              12.1

              11.8

              16.7

              24.4

              20.1

              26.4

              20.5

              (3.9)

              -

              Remeasurements of defined benefit plans

              -

              -

              -

              -

              (2.6)

              (2.6)

              (2.4)

              (2.3)

              0.3

              -

              Subscription rights to shares

              0.3

              0.2

              0.3

              0.3

              0.3

              0.3

              0.3

              0.3

              0.0

              -

              Minority interests

              1.1

              -

              -

              -

              -

              -

              -

              -

              -

              -

              Total liabilities and net assets

              719.2

              689.9

              683.1

              730.3

              719.1

              699.8

              708.5

              708.2

              (10.9)

              -

            2. Consolidated Subsidiaries and Affiliates


              (As of September 30, 2015)


              Segment


              Type


              Region


              Company name

              Percentage owned (direct and indirect)


              Principal business


              Pharmaceuticals


              Consolidated subsidiary


              Japan

              Kyowa Medex Co., Ltd.

              100.0%

              Manufacture and sale of diagnostic reagents

              Kyowa Medical Promotion Co., Ltd.

              100.0%

              Promotion and sales of pharmaceuticals

              Chiyoda Kaihatsu Co., Ltd.

              100.0%

              Contracting, wholesale and retail and insurance agency business


              The Americas

              Kyowa Hakko Kirin America, Inc.

              100.0%

              Supervision and management of subsidiaries (US)

              BioWa, Inc.

              100.0%

              Out-licensing of anti-body technology (US)

              Kyowa Hakko Kirin Pharma, Inc.

              100.0%

              Development of new candidate substances under contract (US)


              Kyowa Hakko Kirin California, Inc.


              100.0%

              Generation of new candidate substances under contract and accelerating research collaborations (US)

              ProStrakan Inc.

              100.0%

              Sales of pharmaceuticals (US)

              Archimedes Pharma US Inc.

              100.0%

              Licensing of pharmaceuticals (US)


              Europe

              ProStrakan Group plc

              100.0%

              Supervision and management of special companies (UK)

              Strakan Inernational S.a r.l.

              100.0%

              Sales, licensing-in and licensing-out of pharmaceuticals (UK)

              Strakan Pharmaceuticals Limited

              100.0%

              Development of pharmaceuticals (UK)

              ProStrakan Limited

              100.0%

              Sales of pharmaceuticals (UK)

              ProStrakan Pharma S.A.S *1

              100.0%

              Sales of pharmaceuticals (France)

              Kyowa Kirin Farmacéutica SLU. *2

              100.0%

              Sales of pharmaceuticals (Spain)

              ProStrakan Pharma GmbH *3

              100.0%

              Sales of pharmaceuticals (Germany)

              ProStrakan Holdings B.V.

              100.0%

              Holding company for subsidiaries (Netherlands)

              ProStrakan Pharma B.V.

              100.0%

              Sales of pharmaceuticals (Netherlands)

              ProStrakan S.r.l.

              100.0%

              Sales of pharmaceuticals (Italy)

              ProStrakan AB

              100.0%

              Sales of pharmaceuticals (Sweden)

              Archimedes Pharma Limited

              100.0%

              Supervision and management of subsidiaries (UK)

              Archimedes Development Limited

              100.0%

              Sales and development of pharmaceuticals (UK)

              Archimedes Holdings Limited

              100.0%

              Holding company for subsidiaries (UK)

              Archimedes Pharma Europe Limited

              100.0%

              Holding company for subsidiaries (UK)

              Archimedes Pharma UK Limited

              100.0%

              Sales of pharmaceuticals (UK)

              Archimedes Pharma Ibérica S.L.

              100.0%

              Sales of pharmaceuticals (Spain)

              Archimedes Pharma Ireland Limited

              100.0%

              Sales of pharmaceuticals (Ireland)


              Asia

              Kyowa Hakko Kirin China Pharmaceutical Co., Ltd.

              100.0%

              Manufacture and sale of pharmaceuticals (China)

              Kyowa Hakko Kirin Korea Co., Ltd.

              100.0%

              Sales of pharmaceuticals (Korea)

              Kyowa Hakko Kirin (Taiwan) Co., Ltd.

              100.0%

              Sales of pharmaceuticals (Taiwan)

              Kyowa Hakko Kirin (Hong Kong) Co., Ltd.

              100.0%

              Sales of pharmaceuticals (Hong Kong)

              Kyowa Hakko Kirin (Singapore) Pte. Ltd.

              100.0%

              Research and sale of pharmaceuticals (Singapore)

              Entity accounted for using equity method


              Japan


              FUJIFILM KYOWA KIRIN BIOLOGICS Co.,

              Ltd.


              50.0%


              Development, manufacture and sale of biosimilar pharmaceuticals


              Bio-Chemicals


              Consolidated subsidiary


              Japan

              Kyowa Hakko Bio Co., Ltd.

              100.0%

              Manufacture and sale of pharmaceutical and industrial raw materials, and health care products

              DAIICHI FINE CHEMICAL CO., LTD.*4

              100.0%

              Manufacture and sale of active pharmaceutical ingredients and pharmaceutical intermediates

              Kyowa Engineering Co., Ltd.

              100.0%

              Design and installation of plant facilities and equipment


              The Americas

              BioKyowa Inc.

              100.0%

              Manufacture and sale of amino acids (US)

              Kyowa Hakko U.S.A., Inc.

              100.0%

              Sale of fine chemicals including amino acids (US)

              Kyowa Hakko Bio U.S. Holdings, Inc.

              100.0%

              Supervision and management of subsidiaries (US)


              Europe

              Kyowa Hakko Europe GmbH

              100.0%

              Sale of fine chemicals including amino acids (Germany)

              Kyowa Hakko Bio Italia S.r.l.

              100.0%

              Sale of fine chemicals including amino acids (Italy)


              Asia

              Shanghai Kyowa Amino Acid Co., Ltd.

              100.0%

              Manufacture and sale of amino acids (China)

              Thai Kyowa Biotechnologies Co., Ltd.

              100.0%

              Manufacture and sale of amino acids (Thailand)

              Kyowa Hakko (H.K.) Co., Ltd.

              100.0%

              Sale of fine chemicals including amino acids (Hong Kong)

              Kyowa Hakko Bio Singapore Pte. Ltd.

              100.0%

              Sale of fine chemicals including amino acids (Singapore)

              Changes in scope of consolidation resulting in changes in subsidiaries (January 1, 2015 - September 30, 2015) New: None

              Exclusions: 2: Archimedes Pharma France SAS (see note 1), Archimedes Pharma Germany GMBH (see note 3)

              Notes:

              1. On June 30, 2015, Archimedes Pharma France SAS was dissolved in a merger with ProStrakan Pharma S.A.S

              2. On July 3, 2015, ProStrakan Farmaceutica SLU changed its company name to 'Kyowa Kirin Farmacéutica SLU.'

              3. On June 18, 2015, Archimedes Pharma Germany GMBH was dissolved in a merger with ProStrakan Pharma GmbH

              4. On October 1, 2015, DAIICHI FINE CHEMICAL CO., LTD. changed its company name (trade name) to 'Kyowa Pharma Chemical Co., Ltd.

              5. Kyowa Hakko Kirin Sales of Main Products
              6. Accumulative


                Billions of yen, rounded down

                FY 2014 results

                FY 2015 results

                FY2015

                forecasts


                Jan - Mar


                Jan - Jun


                Jan - Sep


                Jan - Dec


                Jan - Mar


                %


                Jan - Jun


                %


                Jan - Sep


                Change amount


                %


                Jan - Dec


                %


                Jan - Dec


                %

                Kyowa Hakko Kirin total


                52.1


                97.0


                143.1


                201.7


                53.8


                103%


                105.9


                109%


                163.6


                20.5


                114%


                -


                -


                215.7


                107%

                Indication / Product name

                ESA formulation

                Nesp


                12.1


                25.9


                40.1


                55.3


                12.3


                101%


                27.0


                105%


                42.0


                1.9


                105%


                -


                -


                56.9


                103%

                ESA formulation

                Espo


                0.6


                1.2


                1.8


                2.4


                0.4


                71%


                0.9


                75%


                1.4


                (0.4)


                78%


                -


                -


                1.8


                77%

                Secondary hyperparathyroidism

                Regpara


                4.5


                7.6


                11.7


                16.3


                3.9


                85%


                8.5


                112%


                13.2


                1.4


                113%


                -


                -


                17.7


                109%

                Secondary hyperparathyroidism

                Rocaltrol


                1.1


                2.1


                3.3


                4.6


                1.0


                97%


                2.4


                113%


                3.7


                0.4


                112%


                -


                -


                4.8


                104%

                Type-2 diabetes

                Onglyza


                0.0


                0.1


                0.4


                1.2


                0.8


                -


                2.0


                -


                3.2


                2.8


                789%


                -


                -


                4.7


                379%

                Cardiovascular (Hypertension & angina pectoris)

                Coniel


                3.2


                6.2


                9.0


                12.0


                2.4


                75%


                5.0


                81%


                7.4


                (1.5)


                82%


                -


                -


                9.6


                80%

                Cardiovascular (Hypertension)

                Coversyl


                0.7


                1.4


                2.1


                2.8


                0.5


                81%


                1.2


                85%


                1.8


                (0.2)


                87%


                -


                -


                2.4


                84%

                Sustained-duration G-CSF

                G-Lasta


                -


                -


                -


                0.3


                1.4


                -


                3.8


                -


                6.7


                6.7


                -


                -


                -


                8.9


                -

                G-CSF

                Gran


                2.0


                4.4


                6.7


                9.2


                1.3


                64%


                2.8


                65%


                4.4


                (2.3)


                65%


                -


                -


                5.7


                62%

                Transdermal persistent pain

                Fentos


                1.1


                2.6


                4.1


                5.9


                1.2


                109%


                2.8


                109%


                4.4


                0.2


                106%


                -


                -


                6.4


                109%

                Anticancer

                Poteligeo


                0.2


                0.6


                1.1


                1.5


                0.4


                183%


                1.0


                146%


                1.4


                0.3


                127%


                -


                -


                2.0


                132%

                Anticancer

                5-FU


                0.5


                1.1


                1.8


                2.4


                0.5


                100%


                1.1


                101%


                1.7


                (0.0)


                99%


                -


                -


                2.1


                86%

                Anticancer

                Navelbine


                0.2


                0.4


                0.6


                0.8


                0.1


                84%


                0.3


                86%


                0.5


                (0.0)


                87%


                -


                -


                0.7


                83%

                Chronic idiopathic thrombocytopenic purpura

                Romiplate


                0.5


                1.2


                1.9


                2.7


                0.6


                109%


                1.3


                115%


                2.1


                0.2


                113%


                -


                -


                2.8


                105%

                Antiallergenic

                Allelock


                8.4


                13.4


                17.9


                23.6


                7.8


                92%


                12.4


                93%


                16.8


                (1.0)


                94%


                -


                -


                20.5


                87%

                Antiallergic eyedrops

                Patanol


                7.1


                8.1


                9.9


                11.8


                7.4


                105%


                8.8


                108%


                10.7


                0.7


                108%


                -


                -


                11.9


                101%

                Inflammatory bowel disease

                Asacol


                1.5


                2.7


                4.2


                5.9


                1.3


                91%


                2.9


                107%


                4.5


                0.2


                106%


                -


                -


                6.3


                106%

                Psoriasis vulgaris

                Dovobet


                -


                -


                0.3


                1.1


                0.9


                -


                2.1


                -


                3.3


                3.0


                -


                -


                -


                4.8


                412%

                Parkinson's disease

                Nouriast


                0.2


                0.8


                1.7


                2.8


                0.9


                350%


                2.2


                263%


                3.6


                1.9


                216%


                -


                -


                5.5


                197%

                Antiepileptic

                Depakene


                2.3


                4.6


                6.9


                9.4


                2.0


                88%


                4.2


                92%


                6.4


                (0.5)


                92%


                -


                -


                8.7


                93%

                Gastrointestinal

                Nauzelin


                1.0


                1.9


                2.7


                3.8


                0.8


                84%


                1.7


                89%


                2.5


                (0.2)


                91%


                -


                -


                3.5


                90%


                Technology Out-Licensing


                2.0


                4.1


                6.4


                13.9


                1.7


                82%


                3.7


                90%


                11.3


                4.9


                176%


                -


                -


                12.8


                92%

                1. Kyowa Hakko Kirin Sales of Main Products

                  Quarterly


                  Billions of yen, rounded down

                  FY 2014 results

                  FY 2015 results


                  Jan - Mar


                  Apr - Jun


                  Jul - Sep


                  Oct - Dec


                  Jan - Mar


                  %


                  Apr - Jun


                  %


                  Jul - Sep


                  Change amount


                  %


                  Oct - Dec


                  %

                  Kyowa Hakko Kirin total


                  52.1


                  44.8


                  46.1


                  58.6


                  53.8


                  103%


                  52.1


                  116%


                  57.6


                  11.5


                  125%


                  -


                  -

                  Indication / Product name

                  ESA formulation

                  Nesp


                  12.1


                  13.7


                  14.2


                  15.2


                  12.3


                  101%


                  14.7


                  108%


                  14.9


                  0.7


                  105%


                  -


                  -

                  ESA formulation

                  Espo


                  0.6


                  0.6


                  0.5


                  0.5


                  0.4


                  71%


                  0.5


                  79%


                  0.5


                  (0.0)


                  84%


                  -


                  -

                  Secondary hyperparathyroidism

                  Regpara


                  4.5


                  3.0


                  4.0


                  4.6


                  3.9


                  85%


                  4.6


                  151%


                  4.6


                  0.5


                  114%


                  -


                  -

                  Secondary hyperparathyroidism

                  Rocaltrol


                  1.1


                  1.0


                  1.1


                  1.3


                  1.0


                  97%


                  1.3


                  130%


                  1.3


                  0.1


                  111%


                  -


                  -

                  Type-2 diabetes

                  Onglyza


                  0.0


                  0.1


                  0.2


                  0.8


                  0.8


                  -


                  1.1


                  -


                  1.2


                  0.9


                  448%


                  -


                  -

                  Cardiovascular (Hypertension & angina pectoris)

                  Coniel


                  3.2


                  2.9


                  2.8


                  3.0


                  2.4


                  75%


                  2.6


                  88%


                  2.4


                  (0.4)


                  86%


                  -


                  -

                  Cardiovascular (Hypertension)

                  Coversyl


                  0.7


                  0.7


                  0.6


                  0.7


                  0.5


                  81%


                  0.6


                  88%


                  0.6


                  (0.0)


                  91%


                  -


                  -

                  Sustained-duration G-CSF

                  G-Lasta


                  -


                  -


                  -


                  0.3


                  1.4


                  -


                  2.4


                  -


                  2.8


                  2.8


                  -


                  -


                  -

                  G-CSF

                  Gran


                  2.0


                  2.3


                  2.3


                  2.4


                  1.3


                  64%


                  1.5


                  66%


                  1.5


                  (0.8)


                  65%


                  -


                  -

                  Transdermal persistent pain

                  Fentos


                  1.1


                  1.4


                  1.5


                  1.7


                  1.2


                  109%


                  1.5


                  108%


                  1.5


                  0.0


                  102%


                  -


                  -

                  Anticancer

                  Poteligeo


                  0.2


                  0.4


                  0.4


                  0.4


                  0.4


                  183%


                  0.5


                  126%


                  0.4


                  (0.0)


                  98%


                  -


                  -

                  Anticancer

                  5-FU


                  0.5


                  0.6


                  0.6


                  0.6


                  0.5


                  100%


                  0.6


                  101%


                  0.5


                  (0.0)


                  95%


                  -


                  -

                  Anticancer

                  Navelbine


                  0.2


                  0.2


                  0.2


                  0.2


                  0.1


                  84%


                  0.1


                  88%


                  0.1


                  (0.0)


                  91%


                  -


                  -

                  Chronic idiopathic thrombocytopenic purpura Romiplate


                  0.5


                  0.6


                  0.7


                  0.7


                  0.6


                  109%


                  0.7


                  120%


                  0.8


                  0.0


                  110%


                  -


                  -

                  Antiallergenic

                  Allelock


                  8.4


                  4.9


                  4.5


                  5.6


                  7.8


                  92%


                  4.6


                  93%


                  4.4


                  (0.1)


                  97%


                  -


                  -

                  Antiallergic eyedrops

                  Patanol


                  7.1


                  1.0


                  1.7


                  1.9


                  7.4


                  105%


                  1.3


                  124%


                  1.9


                  0.1


                  108%


                  -


                  -

                  Inflammatory bowel disease

                  Asacol


                  1.5


                  1.2


                  1.5


                  1.7


                  1.3


                  91%


                  1.5


                  128%


                  1.5


                  0.0


                  105%


                  -


                  -

                  Psoriasis vulgaris

                  Dovobet


                  -


                  -


                  0.3


                  0.8


                  0.9


                  -


                  1.2


                  -


                  1.1


                  0.8


                  374%


                  -


                  -

                  Parkinson's disease

                  Nouriast


                  0.2


                  0.5


                  0.8


                  1.1


                  0.9


                  350%


                  1.2


                  221%


                  1.4


                  0.5


                  168%


                  -


                  -

                  Antiepileptic

                  Depakene


                  2.3


                  2.3


                  2.2


                  2.4


                  2.0


                  88%


                  2.2


                  95%


                  2.1


                  (0.1)


                  94%


                  -


                  -

                  Gastrointestinal

                  Nauzelin


                  1.0


                  0.9


                  0.8


                  1.1


                  0.8


                  84%


                  0.8


                  95%


                  0.7


                  (0.0)


                  97%


                  -


                  -


                  Technology Out-Licensing


                  2.0


                  2.0


                  2.2


                  7.5


                  1.7


                  82%


                  2.0


                  97%


                  7.6


                  5.3


                  332%


                  -


                  -

                2. Segment information and Main Subsidiaries Operating Profit or Loss

                  1. Pharmaceuticals segment

                    1. Pharmaceuticals segment total


                      Billions of yen, rounded down

                      FY 2014 results

                      FY 2015 results

                      FY 2015

                      forecasts


                      Jan - Mar


                      Jan - Jun


                      Jan - Sep


                      Jan - Dec


                      Jan - Mar


                      %


                      Jan - Jun


                      %


                      Jan - Sep

                      Change Amount


                      %


                      Jan - Dec


                      %


                      Jan - Dec


                      %

                      Net sales

                      63.1

                      119.5

                      178.6

                      253.0

                      68.0

                      108%

                      135.3

                      113%

                      208.7

                      30.0

                      117%

                      -

                      -

                      276.0

                      109%

                      Japan sales

                      49.6

                      92.3

                      137.3

                      195.1

                      50.0

                      101%

                      100.1

                      108%

                      150.6

                      13.3

                      110%

                      -

                      -

                      201.8

                      103%

                      Overseas sales

                      13.5

                      27.2

                      41.3

                      57.8

                      17.9

                      133%

                      35.1

                      129%

                      58.1

                      16.7

                      141%

                      -

                      -

                      74.1

                      128%

                      America

                      3.4

                      7.2

                      10.3

                      13.4

                      4.8

                      140%

                      8.4

                      117%

                      11.6

                      1.3

                      113%

                      -

                      -

                      13.8

                      103%

                      Europe

                      6.8

                      13.2

                      20.6

                      30.0

                      8.9

                      130%

                      18.1

                      137%

                      33.4

                      12.8

                      162%

                      -

                      -

                      42.4

                      141%

                      Asia and others

                      3.1

                      6.6

                      10.4

                      14.3

                      4.1

                      130%

                      8.5

                      128%

                      13.0

                      2.6

                      125%

                      -

                      -

                      17.8

                      124%

                      Operating income

                      9.4

                      14.1

                      20.6

                      29.0

                      7.7

                      83%

                      18.5

                      131%

                      34.9

                      14.3

                      170%

                      -

                      -

                      38.5

                      132%


                    2. ProStrakan (GBP)


                      Millions of GBP, rounded down

                      FY 2014 results

                      FY 2015 results

                      FY 2015

                      forecasts


                      Jan - Mar


                      Jan - Jun


                      Jan - Sep


                      Jan - Dec


                      Jan - Mar


                      %


                      Jan - Jun


                      %


                      Jan - Sep

                      Change Amount


                      %


                      Jan - Dec


                      %


                      Jan - Dec


                      %

                      Net sales

                      38.4

                      78.0

                      125.3

                      181.4

                      53.7

                      140%

                      108.7

                      139%

                      163.7

                      38.3

                      131%

                      -

                      -

                      220.1

                      121%

                      Cancer pain


                      Abstral


                      12.1


                      25.7


                      40.6


                      55.8


                      12.9


                      107%


                      27.5


                      107%


                      42.6


                      1.9


                      105%


                      -


                      -


                      56.2


                      101%

                      Cancer pain


                      PecFent


                      -


                      -


                      2.4


                      7.5


                      5.4


                      -


                      10.9


                      -


                      16.9


                      14.5


                      687%


                      -


                      -


                      24.3


                      323%

                      Chemotherapy-induced nausea and vomiting drug

                      Sancuso


                      2.7


                      6.3


                      10.0


                      14.0


                      3.9


                      140%


                      8.2


                      131%


                      12.7


                      2.7


                      128%


                      -


                      -


                      18.2


                      130%

                      Replacement therapy with testosterone for male hypogonadism

                      Tostran


                      2.7


                      5.9


                      9.2


                      13.0


                      5.8


                      216%


                      9.2


                      154%


                      12.2


                      3.0


                      133%


                      -


                      -


                      16.1


                      123%

                      Relief of pain associated with chronic anal fissures

                      Rectogesic


                      2.7


                      5.6


                      8.4


                      11.5


                      2.8


                      102%


                      5.4


                      96%


                      7.9


                      (0.4)


                      95%


                      -


                      -


                      10.6


                      92%

                      Osteoporosis drug


                      Adcal-D3


                      7.1


                      13.9


                      21.3


                      29.3


                      6.7


                      94%


                      13.2


                      95%


                      20.3


                      (0.9)


                      95%


                      -


                      -


                      27.8


                      95%

                      Others

                      7.9

                      15.3

                      27.9

                      44.4

                      15.7

                      199%

                      32.5

                      212%

                      48.8

                      20.9

                      175%

                      -

                      -

                      64.8

                      146%

                      Product net sales (subtotal)

                      35.4

                      72.9

                      120.0

                      175.9

                      53.4

                      151%

                      107.2

                      147%

                      161.8

                      41.7

                      135%

                      -

                      -

                      218.3

                      124%

                      Technology Out-Licensing and others

                      2.9

                      5.0

                      5.2

                      5.4

                      0.2


                      8%

                      1.4


                      29%

                      1.9

                      (3.3)


                      37%

                      -


                      -

                      1.8


                      33%

                      Gross profit

                      28.8

                      58.7

                      91.0

                      129.1

                      38.9

                      135%

                      81.4

                      139%

                      121.2

                      30.2

                      133%

                      -

                      -

                      161.7

                      125%

                      Selling, general and administrative expenses *1


                      17.8


                      35.2


                      55.0


                      80.0


                      22.5


                      126%


                      45.1


                      128%


                      66.7


                      11.6


                      121%


                      -


                      -


                      91.0


                      114%

                      EBIDTA *2

                      10.9

                      23.5

                      35.9

                      49.1

                      16.4

                      150%

                      36.2

                      154%

                      54.5

                      18.5

                      152%

                      -

                      -

                      70.7

                      144%

                      Amortization of goodwill and sales rights

                      *1

                      9.9

                      19.9

                      33.2

                      49.2

                      15.4


                      155%

                      30.6


                      154%

                      46.4

                      13.1


                      139%

                      -


                      -

                      61.9


                      126%

                      Operating income

                      1.0

                      3.5

                      2.6

                      (0.1)

                      1.0

                      105%

                      5.6

                      156%

                      8.1

                      5.4

                      304%

                      -

                      -

                      8.7

                      -

                      *1 Amortization of goodwill and sales rights is not included in Selling, general and administrative expenses.

                      Amortization of goodwill and sales rights = Depreciation + amortization of goodwill

                      *2 EBITDA Operating income + depreciation + amortization of goodwill

                      *3 Archimedes was aquired by ProStrakan on August 5, 2014, and from August 2014, Archimedes' financial results have been consolidated with those of ProStrakan.

                      *4 Geographical breakdown of sales for January - September 2015 is as follows:


                      UK

                      Europe (excluding UK)

                      USA

                      Other

                      32.4%

                      50.1%

                      15.9%

                      1.6%

                    3. Kyowa Medex Co., Ltd.

                    4. Billions of yen, rounded down

                      FY 2014 results

                      FY 2015 results

                      FY 2015

                      forecasts


                      Jan - Mar


                      Jan - Jun


                      Jan - Sep


                      Jan - Dec


                      Jan - Mar


                      %


                      Jan - Jun


                      %


                      Jan - Sep

                      Change Amount


                      %


                      Jan - Dec


                      %


                      Jan - Dec


                      %

                      Net sales

                      2.6

                      5.7

                      8.4

                      11.7

                      2.5

                      95%

                      5.5

                      98%

                      8.5

                      0.1

                      101%

                      -

                      -

                      11.9

                      101%

                      Japan sales

                      2.1

                      4.6

                      7.0

                      9.7

                      2.1

                      99%

                      4.6

                      100%

                      7.0

                      0.0

                      100%

                      -

                      -

                      10.0

                      103%

                      Biochemical Diagnostic Reagent

                      0.8

                      1.9

                      2.9

                      4.0

                      0.8

                      99%

                      1.8

                      99%

                      2.9

                      (0.0)

                      99%

                      -

                      -

                      4.0

                      101%

                      Immunological Diagnostic Reagent

                      1.0

                      2.3

                      3.4

                      4.7

                      0.9

                      94%

                      2.2

                      98%

                      3.4

                      (0.0)

                      100%

                      -

                      -

                      4.8

                      102%

                      Other

                      0.2

                      0.4

                      0.6

                      0.8

                      0.2

                      115%

                      0.4

                      110%

                      0.6

                      0.0

                      112%

                      -

                      -

                      1.0

                      118%

                      Exports

                      0.5

                      1.0

                      1.4

                      2.0

                      0.4

                      80%

                      0.9

                      91%

                      1.5

                      0.0

                      106%

                      -

                      -

                      1.8

                      93%

                      Operating income

                      0.0

                      0.3

                      0.4

                      0.7

                      0.0

                      83%

                      0.3

                      93%

                      0.4

                      0.0

                      103%

                      -

                      -

                      0.9

                      126%

                      V. Segment information and Main Subsidiaries Operating Profit or Loss
                    5. Bio-Chemicals segment

                      1. Bio-Chemicals segment total


                        Billions of yen, rounded down

                        FY 2014 results

                        FY 2015 results

                        FY 2015 forecasts


                        Jan - Mar


                        Jan - Jun


                        Jan - Sep


                        Jan - Dec


                        Jan - Mar


                        %


                        Jan - Jun


                        %


                        Jan - Sep

                        Change Amount


                        %


                        Jan - Dec


                        %


                        Jan - Dec


                        %


                        Net sales


                        23.5


                        44.0


                        62.7


                        83.9


                        22.1


                        94%


                        45.0


                        102%


                        67.1


                        4.3


                        107%


                        -


                        -


                        88.0


                        105%

                        Japan sales

                        12.9

                        25.1

                        35.2

                        47.6

                        12.1


                        94%

                        24.1


                        96%

                        36.7

                        1.4


                        104%

                        -


                        -

                        48.5


                        102%

                        Overseas sales

                        10.6

                        18.8

                        27.4

                        36.3

                        10.0


                        94%

                        20.8


                        110%

                        30.3

                        2.8


                        110%

                        -


                        -

                        39.5


                        109%

                        America

                        2.0

                        4.1

                        6.2

                        8.2

                        2.5


                        124%

                        5.2


                        127%

                        7.9

                        1.7


                        128%

                        -


                        -

                        9.9


                        119%

                        Europe

                        4.1

                        8.0

                        12.0

                        15.6

                        4.3

                        103%

                        8.2

                        102%

                        12.0

                        0.0

                        101%

                        -

                        -

                        15.0

                        96%

                        Asia and others

                        4.4

                        6.6

                        9.2

                        12.4

                        3.1

                        71%

                        7.3

                        110%

                        10.2

                        1.0

                        111%

                        -

                        -

                        14.6

                        118%


                        Operating income


                        3.0


                        4.2


                        5.6


                        7.2


                        1.4


                        48%


                        3.9


                        95%


                        6.4


                        0.7


                        114%


                        -


                        -


                        8.5


                        117%



                      2. Kyowa Hakko Bio Co., Ltd.


                        Billions of yen, rounded down

                        FY 2014 results

                        FY 2015 results

                        FY 2015 forecasts


                        Jan - Mar


                        Jan - Jun


                        Jan - Sep


                        Jan - Dec


                        Jan - Mar


                        %


                        Jan - Jun


                        %


                        Jan - Sep

                        Change Amount


                        %


                        Jan - Dec


                        %


                        Jan - Dec


                        %


                        Net sales


                        17.3


                        31.5


                        44.5


                        58.0


                        14.1


                        82%


                        31.0


                        99%


                        45.8


                        1.2


                        103%


                        -


                        -


                        61.4


                        106%

                        Japan sales

                        9.9

                        19.1

                        27.1

                        35.7

                        8.7


                        89%

                        18.1


                        95%

                        27.1

                        (0.0)


                        100%

                        -


                        -

                        36.4


                        102%

                        Pharmaceutical and industrial


                        4.2


                        8.1


                        11.4


                        14.9


                        3.2


                        76%


                        6.9


                        85%


                        10.3


                        (1.0)


                        91%


                        -


                        -


                        13.9


                        94%

                        materials

                        Healthcare

                        2.6

                        5.4

                        8.2

                        11.0

                        2.5

                        96%

                        5.6

                        105%

                        8.7

                        0.5

                        107%

                        -

                        -

                        12.1

                        110%

                        Other

                        2.9

                        5.5

                        7.5

                        9.8

                        2.9

                        100%

                        5.5

                        100%

                        8.0

                        0.4

                        106%

                        -

                        -

                        10.3

                        106%

                        Exports

                        7.4

                        12.3

                        17.3

                        22.3

                        5.4


                        73%

                        12.9


                        104%

                        18.6

                        1.2


                        107%

                        -


                        -

                        25.0


                        112%


                        Operating income


                        2.7


                        3.6


                        4.7


                        5.6


                        1.3


                        48%


                        2.9


                        81%


                        4.4


                        (0.2)


                        94%


                        -


                        -


                        6.2


                        111%



                      3. DAIICHI FINE CHEMICAL CO., LTD.


                      Billions of yen, rounded down

                      FY 2014 results

                      FY 2015 results

                      FY 2015 forecasts


                      Jan - Mar


                      Jan - Jun


                      Jan - Sep


                      Jan - Dec


                      Jan - Mar


                      %


                      Jan - Jun


                      %


                      Jan - Sep

                      Change Amount


                      %


                      Jan - Dec


                      %


                      Jan - Dec


                      %


                      Net sales

                      3.5

                      6.9

                      9.4

                      13.3

                      3.5


                      100%

                      6.6


                      96%

                      10.4

                      1.0


                      111%

                      -


                      -

                      13.3


                      100%


                      Operating income

                      (0.0)

                      (0.0)

                      (0.1)

                      0.3

                      0.1


                      -

                      0.7


                      -

                      1.3

                      1.5


                      -

                      -


                      -

                      1.7


                      458%

                      Note: On October 1, 2015, DAIICHI FINE CHEMICAL CO., LTD. changed its company name (trade name) to 'Kyowa Pharma Chemical Co., Ltd.'


                      Ⅵ.R&D Pipeline



                      Area

                      Code Name Generic Name Formulation

                      Mechanism of Action


                      Indication


                      Stage

                      In-House or Licensed


                      Remarks


                      Nephrology

                      KRN321

                      Darbepoetin Alfa Injection

                      Long-Acting Erythropoiesis Stimulating Agent

                      Renal Anemia (on Dialysis)


                      Filed in CN


                      Kirin-Amgen


                      Oncology

                      Granisetron Patch

                      5-HT3 Serotonin Receptor Antagonist

                      Chemotherapy induced Nausea and Vomiting


                      Filed in MY

                      Licensed from Solasia Pharma (ProStrakan)

                      Launched by ProStrakan as Sancuso®

                      Immunology

                      /Allergy

                      ◎KHK4827

                      Brodalumab Injection

                      Anti-IL-17 Receptor Fully Human Antibody


                      Psoriasis


                      Filed in JP


                      Kirin-Amgen


                      Other

                      AMG531

                      Romiplostim Injection


                      Thrombopoietin Receptor Agonist


                      Idiopathic (Immune) Thrombocytopenic Purpura

                      Approved in KR


                      Kirin-Amgen

                      Filed in TH

                      NDA in preparation in MY

                      Filed・Approved


                      antibody protein small molecule


                      As of Oct. 21, 2015



                      Area

                      Code Name Generic Name Formulation

                      Mechanism of Action


                      Indication


                      Stage

                      In-House or Licensed


                      Remarks


                      Nephrology

                      ◎RTA 402

                      Bardoxolone Methyl Oral

                      Antioxidant Inflammation Modulator

                      CKD in Patients with Type 2 Diabetes

                      PhaseⅡ in JP

                      Licensed from Reata

                      ◎KHK7580

                      Oral


                      Calcium Receptor Agonist


                      Secondary Hyperparathyroidism


                      PhaseⅡ in JP

                      Licensed from Mitsubishi Tanabe Pharma


                      Oncology

                      ◎ARQ 197

                      Tivantinib Oral


                      c-Met Inhibitor


                      Hepatocellular Cancer


                      Phase Ⅲ in JP


                      Licensed from ArQule

                      ◎BIW-8962

                      Injection

                      Anti-GM2 Humanized Antibody


                      Cancer


                      Phase Ⅰ/Ⅱa in KR


                      In-House


                      POTELLIGENT®


                      KW-0761

                      Mogamulizumab Injection


                      Anti-CCR4 Humanized Antibody

                      Peripheral T-cell Lymphoma

                      Phase Ⅱ in EU


                      In-House


                      POTELLIGENT®


                      Adult T-cell Leukemia/Lymphoma

                      Phase Ⅱ

                      in US, EU and others


                      Cutaneous T-cell Lymphoma

                      Phase Ⅲ

                      in US, EU, JP and others


                      Immunology

                      /Allergy


                      ◎KHK4563

                      Benralizumab Injection


                      Anti-IL-5 Receptor Humanized Antibody


                      Asthma

                      Phase Ⅲ in JP and KR


                      In-House


                      Jointly Developed with AstraZeneca/MedImmune in JP and KR POTELLIGENT®

                      Chronic Obstructive Pulmonary Disease(COPD)


                      Phase Ⅲ in JP

                      ◎ASKP1240

                      Injection


                      Anti-CD40 Fully Human Antibody


                      Organ Transplant Rejection

                      Phase Ⅰin JP


                      In-House


                      Jointly Developed with Astellas

                      Human Antibody-Producing mouse

                      Phase Ⅱin US

                      Z-206

                      Mesalazine Oral

                      pH Dependent Controlled Release Tablet


                      Ulcerative Colitis


                      Phase Ⅲ in JP


                      Licensed from Zeria Pharma

                      Jointly Developed with Zeria Pharma

                      The Phase Ⅲ study is conducted to seek a new dose regimen

                      Central Nervous System

                      KW-6002

                      Istradefylline Oral

                      Adenosine A2A Receptor Antagonist


                      Parkinson's Disease

                      Phase Ⅲ

                      in US, CA, EU and others


                      In-House


                      Other


                      ◎KRN23

                      Injection


                      Anti-FGF23 Fully Human Antibody

                      X-linked Hypophosphatemia(XLH) in adult patients

                      Phase Ⅱ in US


                      In-House


                      Jointly Developed with Ultragenyx in US and EU

                      Human Antibody-Producing mouse

                      PhaseⅠ in JP and KR

                      X-linked Hypophosphatemia (XLH) in pediatric patients


                      Phase Ⅱ in US and EU

                      Tumor Induced Osteomalacia(TIO)/Epidermal Nevus Syndrome (ENS)


                      Phase Ⅱ in US


                      AMG531

                      Romiplostim Injection


                      Thrombopoietin Receptor Agonist


                      Aplastic Anemia


                      PhaseⅡ in KR


                      Kirin-Amgen

                      Idiopathic (Immune) Thrombocytopenic Purpura


                      PhaseⅢ in CN

                      Phase Ⅱ, Phase Ⅲ



                      Updated since Jul 24th, 2015 (Area, Stage, Filed, Approved, etc.)

                      ◎ New Molecular Entity


                      Ⅵ.R&D Pipeline



                      Area

                      Code Name Generic Name Formulation


                      Mechanism of Action


                      Indication


                      Stage

                      In-House or Licensed


                      Remarks


                      Oncology

                      ◎KRN951

                      Tivozanib Oral

                      VEGF Receptor Inhibitor


                      Cancer

                      PhaseⅠ in JP


                      In-House

                      Being Developed Overseas by AVEO as AV-951

                      ◎KHK2898

                      Injection

                      Anti-CD98 Fully Human Antibody


                      Cancer

                      Phase Ⅰ in SG


                      In-House

                      POTELLIGENT®

                      Human Antibody-Producing mouse

                      ◎KHK2823

                      Injection

                      Anti-CD123 Fully Human Antibody


                      Cancer

                      Phase Ⅰ in UK


                      In-House

                      POTELLIGENT®

                      Human Antibody-Producing mouse

                      ◎KHK2804/ CEP-37250

                      Injection

                      Anti-Tumor Specific Glycoprotein Humanized Antibody


                      Cancer


                      Phase Ⅰ in US


                      Licensed from Teva

                      Jointly Developed with Teva

                      POTELLIGENT®


                      KW-0761

                      Mogamulizumab Injection


                      Anti-CCR4 Humanized Antibody


                      Solid Tumor


                      Phase Ⅰ in US


                      In-House

                      Combination with MEDI4736/Tremelimumab (Jointly Developed with AstraZeneca) POTELLIGENT®

                      Combination with Docetaxel POTELLIGENT®


                      Combination with PF-05082566 (Jointly Developed with Pfizer) POTELLIGENT®


                      PhaseⅠ in JP

                      Combination with Nivolumab (Jointly Developed with

                      Ono Pharmaceutical

                      Bristol-Myers Squibb)

                      POTELLIGENT®

                      Immunology

                      /Allergy

                      ◎KHK4083

                      Injection

                      Immunomodulator Antibody


                      Autoimmune diseases

                      PhaseⅠ in CA


                      In-House

                      POTELLIGENT®

                      Human Antibody-Producing mouse

                      Central Nervous System

                      ◎KHK6640

                      Injection


                      Anti-Amyloid Beta Peptide Antibody


                      Alzheimer's Disease

                      PhaseⅠin EU


                      Licensed from Immunas Pharma

                      PhaseⅠin JP


                      Others

                      KW-3357

                      Antithrombin Gamma Injection

                      Recombinant Human Antithrombin

                      Disseminated Intravascular Coagulation, Congenital Antithrombin Deficiency


                      Phase Ⅰin EU


                      In-House

                      PhⅠ


                      antibody protein small molecule


                      As of Oct. 21, 2015


                      Updated since Jul 24th, 2015 (Area, Stage, Filed, Approved, etc.)

                      ◎ New Molecular Entity



                      Area

                      Code Name Generic Name Formulation

                      Mechanism of Action


                      Indication


                      Stage

                      In-House or Licensed


                      Remarks


                      Oncology



                      Granisetron Patch

                      5-HT3 Serotonin Receptor Antagonist

                      Chemotherapy induced Nausea and Vomiting


                      FIled in MY

                      Licensed from Solasia Pharma (ProStrakan)

                      Launched by ProStrakan as Sancuso®

                      Immunology

                      /Allergy

                      ◎KHK4827

                      Brodalumab Injection


                      Anti-IL-17 Receptor Fully Human Antibody


                      Psoriasis


                      Filed in JP


                      Kirin-Amgen


                      Other

                      AMG531

                      Romiplostim Injection


                      Thrombopoietin Receptor Agonist

                      Idiopathic (Immune) Thrombocytopenic Purpura


                      Approved in KR


                      Kirin-Amgen

                      Updated since Jul 24th, 2015 (Area, Stage, Filed, Approved, etc.) Filed・Approved




                      Area

                      Code Name Generic Name Formulation

                      Mechanism of Action


                      Indication


                      Stage

                      In-House or Licensed


                      Remarks


                      Others

                      AMG531

                      Romiplostim Injection

                      Thrombopoietin Receptor Agonist

                      Idiopathic (Immune) Thrombocytopenic Purpura


                      PhaseⅢ in CN


                      Kirin-Amgen

                      PhⅡ~PhⅢ


                      Pipeline of Biosimilar(Fujifilm Kyowa Kirin Biologics)



                      Code Name


                      Generic Name


                      Stage


                      Remarks

                      FKB327

                      Adalimumab

                      (fully human anti-TNF-α monoclonal antibody)

                      Phase Ⅲ

                      in US and others

                      PhaseⅢ As of October 21st 2015



                      Code Name


                      Generic Name


                      Stage


                      Remarks

                      FKB238

                      Bevacizumab

                      (humanized anti-VEGF monoclonal antibody)

                      Phase Ⅰ in UK

                      PhaseⅠ

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