Kyowa Kirin Co., Ltd. · TSE:4151

Kyowa Kirin — Kyowa Hakko Kirin — FY2009 interim Earnings Presentation

33 slides from Kyowa Kirin's earnings presentation, Oct 29, 2009

  1. Slide 1: Fiscal 2009 Interim Results

    Kyowa Kyowa Hakko Hakko Kirin Kirin Fiscal Fiscal 2009 2009 Interim Interim Results Results October 29, 2009 President & CEO Yuzuru Matsuda Kyowa Hakko Kirin Co., Ltd Statements on results, forecasts and R&D status contained in this presentation represent judgments based on information available at

  2. Slide 2: Contents

    Contents Page >> Summary of fiscal 2009 interim results 2 >> Pipeline 13 >> Topics 21 >> Appendix 28 1

  3. Slide 3: Summary of fiscal 2009 interim results

    Summary of fiscal 2009 interim results 2

  4. Slide 4: Summary of fiscal 2009 interim results: P&L

     Summary of fiscal 2009 interim results: P&L Operating Recurring (¥bn) Net sales Net income income income FY2009 interim 194.3 20.7 22.2 10.8 -53.3 -8.3 -8.1 +2.5 Change (-21.5%) (-28.7%) (-26.9%) (+30.5%) FY2008 interim 247.7 29.1 30.3 8.2 Summary  Sales decreased, impacted by lower sales in the

  5. Slide 5: Pharmaceuticals business

     Pharmaceuticals business (¥bn) FY2008 interim FY2009 interim Change Net sales 108.7 103.9 -4.7 Operating income 19.6 21.3 +1.6 R&D expenses 23.0 17.5 -5.4 Reasons for changes (compared to FY2008 H1)  Positive factors for sales and operating income included growth in sales of core products such as

  6. Slide 6: Sales of core pharmaceutical products

     Sales of core pharmaceutical products (¥bn) FY2008 interim FY2009 interim Change Nesp/Espo 21.3 25.7 21%↑ Coniel 11.6 11.7 1%↑ Allelock 9.6 10.9 14%↑ Patanol 1.4 1.9 36%↑ Gran/Neu-up* 9.1 8.9 2%↓ Depakene 5.3 5.7 8%↑ Coversyl 2.6 2.4 8%↓ Regpara 1.9 3.4 79%↑ Export and technology out-licensing rev

  7. Slide 7: Bio-Chemicals business

     Bio-Chemicals business (¥bn) FY2008 interim FY2009 interim Change Net sales 45.7 41.4 -4.2 Operating income 5.2 1.6 -3.5 ¥106/$ ¥96/$ -¥10/$ Forex ¥163/€ ¥133/€ -¥30/€  Sales of amino acid for pharmaceutical and industrial raw material decreased due to the effects of the strong yen and other fact

  8. Slide 8: Chemicals business

     Chemicals business (¥bn) Net sales Operating income Naphtha (/KL) 40.0 32.0 \85,800 30.0 20.1 17.8 20.0 15.0 17.1 \52,000 11.8 \41,300 \42,000 10.0 \33,300 2.4 0.5 \27,000 0.2 0.0 -3.5 -2.0 -0.4 -10.0 2008 Q2 2008 Q3 2009 Q4 2009 Q1 2009 Q2 2009 Q3  Along with the global economic slowdown since A

  9. Slide 9: Chemical business: market share by product

     Chemical business: business Market share by product (production capacity basis) ＫＨＫ = Kyowa Hakko Kirin Butyl acetate Butyl acetate Isononanol Butanol Butanol Isononanol Others Others Others Others Kyowa KHK 44% 49% Hakko 51% 44% Kyowa KHK 49% 56% Kirin Hakko 51% Kirin Kyowa KHK 56% Hakko 100% Iso

  10. Slide 10: Fiscal 2009 forecasts (Nine months; consolidated)

     Fiscal 2009 forecasts (Nine months; consolidated) Operating Recurring Net Dividends (¥bn) Net sales income income income (¥ per share) 2009 (Apr.-Dec.) 310.0 35.0 36.0 15.0 vs. ¥15 2008 (Apr.-Dec) (-14.4%) (-18.0%) (-16.8%) (+43.1%) 2008 (Apr.- Dec.) 362.2 42.6 43.2 10.4 － April 08 - March 09 460.

  11. Slide 11: Fiscal 2009 forecasts: Pharmaceuticals

     Fiscal 2009 forecasts: Pharmaceuticals (9-months consolidated) 2008 2009 Change on (¥bn) Apr- Dec Apr-Dec adjusted figures Net sales 161.3 162.0 +0.7 Operating income 29.6 33.5 +3.8 R&D expenses 32.5 29.0 -3.5 Apr-Dec 2008 2009 Yen /$ ¥103/$ ¥94/$ We are forecasting an increase in revenues and pro

  12. Slide 12: Fiscal 2009 forecasts: Sales of core pharmaceutical products

     Fiscal 2009 forecasts: Sales of core pharmaceutical products (9-months consolidated) 2009/4-12 Forecasts at Forecasts at (¥bn) 2008/4-12 Change beginning of first quarter (forecast) term Nesp/Espo 34.4 40.0 16%↑ 35.1 36.9 Coniel 18.1 18.0 1%↓ 17.3 17.6 Allelock 15.6 17.0 9%↑ 16.4 17.0 Patanol 2.2

  13. Slide 13: Fiscal 2009 forecasts: Bio-Chemicals/Chemicals

     Fiscal 2009 forecasts: Bio-Chemicals/ Chemicals (9-months consolidated) (¥bn) 2008/4-12 2009/4-12 Change Bio- Sales 67.5 70.0 +2.5 Chemicals Operating income 7.4 3.3 -4.1 Sales 77.3 50.0 -27.3 Chemicals Operating income 3.5 -2.3 -5.8 ¥/$ ¥103/$ ¥94/$ -¥9/$ Forex ¥/€ ¥151/€ ¥133/€ -¥18/€ Approx. Ap

  14. Slide 14: R&D Pipeline

     R&D Pipeline Kyowa Hakko Kirin (Phase II onwards) (As of October 29, 2009) Code name/ Stage Category Indication Formulation In-house or licensed Remarks Product name Japan Other countries Humanized monoclonal antibody Cancer KW-0761 Phase II Phase I in USA (Hematologic Injection In-house (The excl

  15. Slide 15: R&D Pipeline

     R&D Pipeline Kyowa Hakko Kirin (Phase II onwards) (As of October 29, 2009) Code name/ Stage Developed in-house or Category Indication Formulation Remarks Product name Japan Other countries licensed KW-4679 Filed in China Allergy Oral In-house Launched in Japan ALLELOCK Jul/2008 Immunology/Allergy

  16. Slide 16: R&D Pipeline

     R&D Pipeline Kyowa Hakko Kirin (Phase I) (As of October 29, 2009) Code name/ Stage Developed in-house Category Product name Indication Formulation Remarks Japan Other countries or licensed Developed with Phase I in NU206 Inflammatory bowel disease Injection ARCA biopharma Australia Immunology/ (th

  17. Slide 17: Antibody pharmaceutical pipeline

     Antibody pharmaceutical pipeline (as of October 2009) Overview of Development Pipeline Therapeutic Preclinical Ph I Ph II Area KW-0761 (CCR4) U.S. (Ph I) Japan (Ph II) KRN330 Cancer Ten Antibodies U.S. (Ph I/IIa) (eight BIW8962 (GM2) POTELLIGENT® U.S. antibodies, five KM-Mouse Immunology/ ASKP1240

  18. Slide 18: Licensing-out antibody pharmaceuticals

     Licensing-out antibody pharmaceuticals (as of October 2009) Antibody Target Licensee Reported Stage Remarks Amgen Ph I KW-0761 CCR4 POTELLIGENT® (Except in Japan, Asia) (AMG 761) AstraZeneca (MedImmune) Ph II BIW-8405 IL-5R POTELLIGENT® (Except in Japan, Asia) (MEDI-563） Life Science KW-2871 GD3 P

  19. Slide 19: POTELLIGENT technology related alliances

    POTELLIGENT® technology related alliances (as of October 2009) Technology License Collaboration CSL Limited Product Alliance Out-license In-license *Clinical trials are in progress for five out-licensed POTELLIGENT anti-bodies 18

  20. Slide 20: Progress in licensing-out

     Progress in licensing-out (as of October 2009) Phase Name Partner Remarks I II III Merck KW-3902 Terminated (NovaCardia) Myeloproliferative disorders CEP-701 Cephalon (FLT-3 inhibitor) Cancer KW-2871 Life Science (anti-GD3) (Low-fucose antibody) (malignant melanoma) MEDI-563 AstraZeneca Allergy (B

  21. Slide 21: Progress in licensing-in

     Progress in licensing-in (as of October 2009) Phase Name Partner Remarks I II III Inflammatory bowel disease Zeria (Crohn’s disease) Asacol Pharmaceuticals *Application filed for ulcerative colitis Parkinson’s disease KW-6500 Britannia (injection) AGS-003 Argos Renal cell carcinoma AGS-004 Argos H

  22. Slide 22: Regional companies in Asia

    Regional companies in Asia Kirin Kunpeng (China) Bio-Pharmaceutical Co., Ltd. Kyowa Hakko Pharmaceutical Technology (Shanghai) Co., Ltd. Jeil-Kirin Pharm. Inc. (Korea) Kyowa Hakko Kirin (Hong Kong) Co., Ltd. Kyowa Hakko Kirin (Taiwan) Co., Ltd. Kyowa Hakko Kirin (Singapore) Pte. Ltd. 21

  23. Slide 23: LIAI

     LIAI 22

  24. Slide 24: Kyowa Hakko Kirin's Characteristic Global Collaboration

    Kyowa Hakko Kirin’s Characteristic Global Collaboration Kyowa Hakko Kirin Pharma, Inc. (KKP) Partnership R&D Collaboration Consultation, networking support First refusal right to LIAI patents Kyowa Hakko Kirin Proposal for drug discovery research California, Inc. (KKC) Translational research Biomark

  25. Slide 25: Transfer of Neu-up to Yakult Honsha

     Transfer of Neu-up to Yakult Honsha  Events and schedule December 19, 2008 Announced issue resolution measures following business integration with Kirin Group October 15, 2009 Announced that application for manufacturing and sales of G-CSF formulation Neu-up is in progress and other items Agreed

  26. Slide 26: Benefits of joint-R&D with Lonza

     Benefits of joint-R&D with Lonza Lonza and BioWa Introduce Potent New Cell Line for Recombinant Antibody Production Basel (CH) and Princeton, NJ, USA, 13 October 2009 – Lonza and BioWa, Inc today unveiled Potelligent® CHOK1SV, a new host cell line for manufacturing recombinant antibodies. The new

  27. Slide 27: Alcohol Business: Integration with Mercian

     Alcohol Business: Integration with Mercian July 1, 2010 to December 31, 2012 January 1, 2013 Kirin Holdings Kirin Holdings Kyowa Hakko Kirin Mercian Kyowa Hakko Kirin Mercian 65% 100% Alcohol business Alcohol Alcohol integration supply supply Kyowa Hakko Bio Kyowa Hakko Bio 35% Kyowa Hakko Kyowa H

  28. Slide 28: Regarding medium-term business plan

     Regarding medium-term business plan  October 26, 2009 Kirin Holdings announced medium term business plan Kyowa Hakko Kirin’s target: -FY ending Dec. 2012: ¥459.0 bn in net sales  End January 2010 Announce fiscal 2009 results, investor presentation (planned): 2010-2012 medium-term business plan,

  29. Slide 29: Appendix

    KYOWA KIRIN Appendix copyright© Kyowa Hakko Kirin Co.,Ltd. All Rights m* )

  30. Slide 30: Pharmaceuticals: Major factors affecting results

     Pharmaceuticals: Major factors affecting results All listed factors are on a non-consolidated basis unless stated otherwise Fiscal 2008 H1 Net sales Fiscal 2009 H1 ¥108.7 bn -¥4.7 bn ¥103.9 bn Positive factors Growth in sales of core products Negative factors One-time contract payment from Amgen E

  31. Slide 31: Bio-Chemicals: Major factors affecting results

     Bio-Chemicals: Major factors affecting results All listed factors are on a non-consolidated basis unless stated otherwise Fiscal 2008 H1 Net sales Fiscal 2009 H1 ¥45.7 bn -¥4.2 bn ¥41.4 bn Positive factors Growth in mail-order sales business Growth in sales of industrial use alcohol Negative facto

  32. Slide 32: Chemicals: Major factors affecting results

     Chemicals: Major factors affecting results All listed factors are on a non-consolidated basis unless stated otherwise Fiscal 2008 H1 Net sales Fiscal 2009 H1 ¥57.2 bn -¥24.3 bn ¥32.8 bn Positive factors -- Negative factors Reduced demand due to economic downturn Worsening products market Operating

  33. Slide 33: Inquiries: Corporate Communications Department

    If you have any inquiries regarding this presentation please call: Corporate Communications Department, Kyowa Hakko Kirin Co., Ltd Tel: 03-3282-0009 32

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