Kyowa Kirin Co., Ltd. · TSE:4151

Kyowa Kirin — Kyowa Hakko Kirin — FY2008 Earnings Presentation

30 slides from Kyowa Kirin's earnings presentation, Apr 28, 2009

  1. Slide 1: Fiscal 2008 Results

    Kyowa Kyowa Hakko Hakko Kirin Kirin Fiscal Fiscal 2008 2008 Results Results April 28, 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 the current time.

  2. Slide 2: Contents

    Contents Page >> Business structure 2 >> Summary of FY2008 results 4 >> Pipeline 14 >> Appendix 22 1

  3. Slide 3: Business structure (April 1, 2009)

     Business structure (April 1, 2009) Kirin Holdings Kirin Brewery Kirin Beverage Mercian Kyowa Hakko Kirin Kyowa Other businesses Separate Foods service companies Kirin Kyowa Hakko Kyowa Hakko Other Bio Chemical businesses April 1, 2009: Launched Kirin Kyowa Foods -Kirin Holdings ownership 65% -Kyow

  4. Slide 4: Progress with integration

     Progress with integration 2007/10 2008/4 2008/10 2009/4 2009/10 2010/4 2008 2009 2010 Integration of antibody production facilities (Takasaki) Integration of sales offices Integration of IT systems Integration of HQ functions Integration of overseas development facilities Integration of domestic r

  5. Slide 5: Summary of Fiscal 2008 results

    Summary of Fiscal 2008 results 4

  6. Slide 6: Summary of Fiscal 2008 results: P&L

     Summary of Fiscal 2008 results: P&L Operating Recurring (¥bn) Net sales Net income income income FY 2008 460.1 45.3 46.4 11.7 Change +68.0 +5.9 +8.4 -11.7 (+17.4%) (+15.2%) (+22.2%) (-50.0%) FY 2007 392.1 39.3 37.9 23.4 Summary >> Pharmaceuticals Sales and profits up due to merger with Kirin Pharm

  7. Slide 7: Pharmaceuticals business

     Pharmaceuticals business (¥bn) FY2007 FY2008 Change Net sales 138.3 210.4 +72.0 Operating income 19.9 34.8 +14.8 R&D expenses 28.1 42.6 +14.4 Reasons for changes  Positive factors for sales and operating income included the merger with Kirin Pharma and the one-time licensing payment from Amgen fo

  8. Slide 8: Pharmaceuticals business (compared to Kyowa Hakko + Kirin Pharma)

    Pharmaceuticals business (compared to Kyowa Hakko + Kirin Pharma in the year to March 08) Sum of the two (¥bn) companies; Fiscal 2008 Change Year to March 08 Net sales 204.5 210.4 +5.9 Operating income 28.1 43.4 +15.2 R&D expenses 47.6 42.6 -5.0 *Fiscal 2008 operating income is prior to merger relat

  9. Slide 9: Sales of core pharmaceutical products

     Sales of core pharmaceutical products (compared with the sum of the two companies in the previous fiscal year) Sum of the two Fiscal Ref: FY08 Forecasts (¥bn) companies; Year to March 08 2008 As of Q3 Initial NESP/ESPO 41.5 43.7 43.0 46.8 Coniel 25.4 23.1 22.9 22.8 Allelock 23.3 25.0 23.1 23.3 Pat

  10. Slide 10: Bio-Chemicals business

     Bio-Chemicals business Change (¥bn) FY 2006 FY 2007 FY 2008 from fiscal 2007 Net sales 67.1 86.8 88.4 +1.6 Operating 4.1 9.6 8.3 -1.3 income ¥117/$ ¥114/$ ¥101/$ -¥13/$ Forex ¥150/€ ¥162/€ ¥143/€ -¥19/€  In pharmaceutical and industrial raw materials, sales volumes of amino acids for intravenous

  11. Slide 11: 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.) 300.0 27.0 27.5 13.0 vs. ¥15 2008 (Apr.-Dec) (-17.2%) (-36.8%) (-36.4%) (+24.0%) 2008 (Apr.- Dec.) 362.2 42.6 43.2 10.4 － April 08 - March 09 460.

  12. Slide 12: Fiscal 2009 forecasts: Pharmaceuticals

     Fiscal 2009 forecasts: Pharmaceuticals Change on 2008 Special Adjusted 2009 (¥bn) adjusted Apr- Dec factors* 2008 Apr-Dec figures One-time payment Net sales 161.3 from Amgen 151.5 153.0 +1.5 One-time payment Operating from Amgen; income 29.6 In-licensing 22.8 21.5 -1.3 expenses R&D In-licensing ex

  13. Slide 13: Fiscal 2009 forecasts: Sales of core pharmaceutical products

     Fiscal 2009 forecasts: Sales of core pharmaceutical products (¥bn) 2008/4-12 2009/4-12 % change (forecast) NESP/ESPO 34.4 35.1 2%↑ Coniel 18.1 17.3 4%↓ Allelock 15.6 16.4 5%↑ Patanol 2.2 3.2 45%↑ Gran/Neu-up* 14.3 13.4 6%↓ Depakene 8.3 8.5 2%↑ Coversyl 4.0 3.6 10%↓ REGPARA 3.3 4.6 39%↑ Export and

  14. Slide 14: Fiscal 2009 forecasts: Bio-Chemicals/Chemicals

     Fiscal 2009 forecasts: Bio-Chemicals/ Chemicals (¥bn) 2009/4-12 2008/4-12 Change (forecast) Bio- Sales 67.5 70.0 +2.5 Chemicals Operating income 7.4 3.8 -3.6 Sales 77.3 50.0 -27.3 Chemicals Operating income 3.5 1.0 -2.5 ¥/$ ¥103/$ ¥90/$ ▲¥13/$ Forex ¥/€ ¥151/€ ¥120/€ ▲¥31/€ Approx. Approx. Naphtha

  15. Slide 15: Pipeline (As of April 2009) (Phase II and onwards)

     Pipeline (As of April 2009) (Phase II and onwards) Stage Developed Code name/ Category Other Indication Formulation in-house or Remarks Product name Japan licensed countries Long-acting erythropoiesis stimulating protein KRN321 Filed ★Chemotherapy Injection Kirin-Amgen NESP Nov/2008 induced anemia

  16. Slide 16: Pipeline (As of April 2009) (Phase II and onwards)

     Pipeline (As ( of April 2009) (Phase II and onwards) Stage Code name/ Developed Category Other Indication Formulation in-house or Remarks Product name Japan licensed countries Filed in ★Clinical trials for Mono-Therapy： KW-6002 Phase II b USA Parkinson's disease Oral In-house Apr/2007 Phase II a,

  17. Slide 17: Pipeline (As of April 2009) (Phase I)

     Pipeline (As ( of April 2009) (Phase I) Code name/ Stage Formulati Developed in- Category Product Indication Remarks Japan Other countries on house or licensed name Phase KRN654 Essential thrombocythemia Oral Shire I/II Humanized monoclonal antibody Cancer (The exclusive right to develop and KW-07

  18. Slide 18: Antibody pharmaceutical pipeline (as of April 2009)

     Antibody pharmaceutical pipeline (as of April 2009) Overview of Development Pipeline Therapeutic area Pre-clinical Phase-I Phase-II KW-0761 KW-2871 (CCR4) BIW-8962 (GD3) Cancer (GM2) Life Science Pharmaceuticals KRN330 9 antibodies Immunology/ ASKP1240 AMG 761 MEDI-563 Allergy (of which 7 are (CD4

  19. Slide 19: POTELLIGENT technology related alliances

    POTELLIGENT® technology related alliances (as of April 2009) Technology license Joint R&D CSL Limited Sanofi-aventis Product level alliance Out-licensing In-licensing 18

  20. Slide 20: Progress in licensing-out (as of April 2009)

     Progress in licensing-out (as of April 2009) Pre- Phase Name Partner Remarks clinical I II III CEP-701 Cephalon Anticancer (acute myelocytic leukemia) Merck KW-3902 Congestive heart failure, Renal failure (NovaCardia) KW-2871 Anticancer Life Science (Low-fucose antibody) (malignant melanoma) BIW-8

  21. Slide 21: Progress in licensing-in (as of April 2009)

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

  22. Slide 22: Schedule

     Schedule  End July 2009 (planned): Announce Q1 results  End October 2009 (planned): Announce Q2 results,2010-2012, Investor presentation  End January 2010 (planned): Announce Fiscal 2009 results and 2010-2012 medium-term business plan, Investor presentation 21

  23. Slide 23: Appendix

    KYOWA KIRIN Appendix copyright© Kyowa Hakko Kirin Co.,Ltd. All Rights m2 )

  24. Slide 24: Pharmaceuticals: Major factors affecting results

     Pharmaceuticals: Major factors affecting results All listed factors are on a non-consolidated basis unless stated otherwise Fiscal 2007 Net sales Fiscal 2008 ¥138.3 bn +¥72.0 bn ¥210.4 bn Positive factors Consolidation of Kirin Pharma Onetime contract payment from Amgen Launched Coversyl, growth i

  25. Slide 25: 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 2007 Net sales Fiscal 2008 ¥86.8 bn +¥1.6 bn ¥88.4 bn Positive factors Increased bulk sales of raw materials for pharmaceutical and industrial use Increased sales of hea

  26. Slide 26: Chemicals business

     Chemicals business ¥ bn Fiscal 2007 Fiscal 2008 Change Net sales 108.0 89.2 -18.8 Operating 7.1 0 -7.2 income From the second half the rapid fall in fuel and raw material prices, and sharp fall in demand led to large decline in sales and profits  First half: Product price revisions implemented in

  27. Slide 27: Chemicals: Major factors affecting results

     Chemicals: Major factors affecting results All listed factors are on a non-consolidated basis unless stated otherwise Fiscal 2007 Net sales Fiscal 2008 ¥108.0 bn -¥18.8 bn ¥89.2 bn Positive factors － Negative factors Decline in demand due to recession Deteriorating product markets Operating income

  28. Slide 28: Food business

     Food business ¥ bn Fiscal 2007 Fiscal 2008 Change Net sales 43.3 42.4 -0.8 Operating 1.5 1.0 -0.4 income  Seasonings: Seasonings --Natural seasonings sluggish due to large rise in raw material prices and the effects of depressed consumer spending --Higher volumes of Umami seasonings, etc., led to

  29. Slide 29: Food: Major factors affecting results

     Food: Major factors affecting results All listed factors are on a non-consolidated basis unless stated otherwise Fiscal 2007 Net sales Fiscal 2008 ¥43.3 bn -¥0.8 bn ¥42.4 bn Positive factors Higher volumes of Umami seasonings Negative factors Lower volumes of natural seasonings Lower volumes of ba

  30. Slide 30: 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 29

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