Kyowa Hakko Kirin Co ., Ltd Fiscal 2008 First Half Results

October 30, 2008 President and Chief Executive Officer

Yuzuru Matsuda

Statements on results, forecasts and R&D status contained in this presentation represent judgments based on information available at the current time. Actual results may differ significantly due to a variety of factors such as economic conditions and exchange rate fluctuations. z Business structure (200810.1 ~)

Kirin Holdings Sep Kiri Kiri Mer Oth Ki co m r n n e c a in Food Brewery Beverage panies r busines ian Kyowa Hakko rate servi Kirin Co., Ltd. s c - es e Tech Other SPECI KYOW CHEMI KYOW KYOW Business integration

2009.4.1 Launched Kirin Kyowa Foods s s A A A A A C

ubsidiarie Held by Kirin HD: 65% LTIES HAKKO HAKKO HAKKO AL Held by Kyowa Kirin: 35%

2011.1.1 Will become a wholly owned subsidiary of Kirin Holdings F B s OOD IO

1 z Outline of Fiscal 2008 firstfirst halfhalf resultsresults

Operating Recurring (¥bn) Net sales Net income income income FY08 H1 247.7 29.1 30.3 8.2 +55.1 +10.9 +12.2 -2.7 Change (+28.6%) (+59.8%) (+67.9%) (-25. 0%)

FY07 H1 192.6 18.2 18.0 11.0

z Pharmaceuticals Sales and profits up due to Kirin Pharma integration, receipt of oneone--offoff payment from , etc. z Bio-Chemicals Sales and profits up due to growth in amino acids for intravenous liquids and pharmaceutical raw materials, and increased sales of health care products z Chemicals Sales up due to price revisions following rapid rise in fuel and raw materials prices but increased depreciation expense contributed to lower operating income z Food Sales and profits declined slightly affected by high raw material prices z Corporate tax Adjustment of ¥¥5.65.6 billion resulting from recognition of tax on planned sale of Kyowa Hakko Food Specialties z Extraordinary loss Resulting from integration-integration-relatedrelated expenses, including impairment losses on integration of R&D facilities 2 z Segmental sales changes: Fiscal 2008 interim

‹ Sales breakdown Pharmaceuticals: + ¥39.8bn Bio-Chemicals: + ¥1.9bn 1,100 September 2007 465 12% 1,000 450 10% 33% 800 900 435 700 420 405 24% 600 21% 390 500 375 Pharmaceu tica ls Bio- Chem ica ls Chemicals Food 400 Other 360 300 345 2007/9 2008/9 2007/9 2008/9 September 2008 14% Chemi cal s: + ¥61b6.1bn Food: - ¥01bn0.1 bn 580 210 8% 560 40% 208 540 206 520 204 500 202 480 21% 200 460 198 17% 440 196 Pharmaceuticals Bio-Chemicals 420 194 Chemicals Food Other 400 192 380 190 2007/9 2008/9 2007/9 2008/9

z Pharmaceuticals sales increased driven by integration with Kirin Pharma in addition to a oneone--timetime payment from Amgen, the launch of Coversyl, and continued growth in Patanol z BioBio--ChemicalsChemicals saw strong sales of amino acids for intrintravenousavenous liquids and pharmaceutical raw materials bbtut was a fftdbfffected by forei gn exch ange movement s. H ealth care prod uct s sh owed con tinue d grow th z Chemical product price rises were implemented in response to a higher indicated price for naphtha from ¥¥58,750/kl58,750/kl in fiscal 07 H1 to around ¥¥78,000/kl78,000/kl in fiscal 08 H1 z Segmental operating income changes: Fiscal 2008 interim

‹ Operating income breakdown Pharmaceuticals: + ¥9.9bn Bio-Chemicals: + ¥1.1bn

September 2007 200 53 50 180 140 4447 4% 2% 160 41 18% 120 54% 38 22% 100 35

80 32 6040 29 26 Pharmaceuticals Bio-Chemicals Chemicals 20 23 Food Other 0 20 2007/9 2008/9 2007/9 2008/9 September 2008 2% 2% Chemi cal s: - ¥03b0.3bn Food: - ¥01bn0.1 bn 10% 33 7 30 18% 6 27 21 24 5 18 4

68% 15 3 12 Pharmaceuticals Bio-Chemicals 9 2 Chemicals Food Other 6 1 3 0 0 2007/9 2008/9 2007/9 2008/9

Higher profits in Pharmaceuticals and BioBio--ChemicalsChemicals z Chemical product prices were raised against a background of higher raw material and fuel prices, but profits declined as capex resulted in higher depreciation expenses z Pharmaceuticals (Comparison of simple sum of both company’s FY07 and FY08 results)

FY 2007 Interim FY 2008 (¥bn) (Sum of two Change Interim companies) Net sales 103.5 108.7 +5.1 Operating income 16.1 24.0 +7.9

R&D expenses 24.8 23.0 -1.8 *Figures for FY 2008 Interim operating income is based on before amortization of goodwill related to the integration Higher sales and profits z Factors benefiting net sales and operating income included a one-time payment from the out-licensing of KWKW--0761*to0761*to Amgen , the ｌａｕｎｃｈ of Coversyl (April 2008) and REGPARA (January 2008), and continued growth in Patanol z Factors decreasing net sales and operating income included price revisions and the termination of Durotep sales z Sales of NESP/ESPO decreased from the effects of price revisions despite an increase in market share compared to FY07 H1 z FY08 interim R&D e xpenses were lo wer than the net total of the tw o companies for FY07 H1

Note: KWKW--07610761 is an antibody drug developed by Kyowa Hakko Kirin that utilizes our original strong-strong-actingacting antibody 5 ® technology (POTELLIGENT ) z Sales of core pharmaceutical products

Reference: Reference: Full year Full year (¥ bn) 2007/9 2008/9 forecast forecast (As of July 31) (Revised) NESP/ESPO 22. 5 21.3 46.8 43.0

Coniel 13.2 11.6 22.8 22.9

Alle loc k 959.5 9.6 23.3 23.1

Patanol 0.8 1.4 5.0 4.9

Gran/Neu-up* 959.5 9.1 18.2 18.3

Depakene 5.2 5.3 10.3 10.7

Navelbine 161.6 1.5 3.3 3.1

Durotep 7.1 －－－

Coversyl － 2.6 4.3 5.0

REGPARA － 1.9 6.9 4.2 Export and technology out- licensing revenues(*) 11. 6 22.8 29.5 29.7 Note: FY07/9 figures for Gran/Neu-up and for export and technology out-licensing revenues are the simple sum of figures for the two companies 6 z BioBio--ChemicalsChemicals

(¥bn) FY06 H1 FY07 H1 FY08 H1 Change from FY07 H1

Net sales 33. 3 43. 8 45. 7 +1. 9 Operating 1.5 4.0 5.2 +1.1 income

Sal es a nd p ro fits up due to g ro wt h in aaoacdsomino acids for intr av en ous an d con tin ued growth in sales of health care products z In industrial and pharmaceutical raw materials sales, sales of amino acids for intravenous liquids supported b y increased overseas demand were strong z Health care products saw increased revenues as sales of health food ingredients in the US and domestic mail order products were strong z Da iic hi Fine Chem ica l’s sa les o f v itam ins decrease d as a resu lt o f fierce compe tition

7 z Fiscal 2008 fullfull--yearyear forecasts (consolidated)

Operating Recurring (¥bn) Net sales Net income income income FY 2008 forecast 490. 0 50. 0 50. 0 17. 0 (Compared to forecast （ ） ） announced April 2008） -- (-12.3% (-10.7%) (-39.3%)

FY 2008 forecast 490. 0 57. 0 56. 0 28. 0 (announced April 2008) FY 2007 actual 392.1 39.3 37.9 23.4

PfitfProfit forecast s revi iddsed down d ue t o a revi ew of ff forecast tfs for renal area prod uct s and di increased expenses arising from active inin--licensinglicensing z InIn--licensedlicensed joint development rights for an antantibodyibody drug candidate, and RNAi pharmaceutical product (not included in forecast announced April 2008) z AidjilihHFTAcquired joint sales rights to HFT-290 (cancer pa in treatment ) from Hisam itsu Pharmaceut ica ls (not inc lu de d in forecast announced April 2008 ) z NESP/ESPO, REGPARA – Reduced sales forecasts z In the Bio-Chemicals segment sales of amino acids for industrindustrialial and pharmaceutical raw materials remained strong but severe price competition in vitamins are expected to result in only a small increase in profits compared to forecastforecast z In chemical products, carefully monitoring raw material prices will be continued ((¥¥70,000/kl70,000/kl naphtha price assumed for second half of fiscal year） z Extraordinary profits/losses: Expect to realize profit on sale of food business, but integration related expenses expected to increase 8 Pharmaceuticals

9 z R&D pipeline (As of October 2008)

Kyowa Hakko Kirin As of October 30, 2008

Code Name Stage In-house Category Indication FormulationOR Remarks Product Name Japan Other countries Licensed ☆ Long-acting erythropoiesis stimulating protein. Anemia KRN321 NESP Phase III Injection Kirin-Amgen Sales for anemia of CKD patients on dialysis were (After for cancer) launched in Japan in July 2007. Thrombocytopenia treatment Thrombopoiesis stimulating peptibody. The clinical AMG531 Phase III (Ideopathic thrombocytopenic Injection Kirin-Amgen development is being conducted by Amgen purpura) development KK under contract.

Sublingual KW-2246 Phase II Cancer pain Orexo tablet

KRN125 Phase II Neutropenia Injection Kirin-Amgen Long-acting G-CSF

Phase II in AGS-003 Canada and Renal Cell Carcinomia Injection Argos USA

Phase II in Immunity activation agent AGS-004 Injection Argos Canada (HIV cell therapy)

Cancer KRN654 Phase I/II Essential thrombocythemia Injection Shire

Humanized monoclonal antibody (The exclusive right Anticancer Developed to develop and commericalize for treatments other KW-0761 Phase I Injection (Hematologic tumor) In-house than cancer, and except in Japan, Korea, China and Tai wan, was trans ferre d to Amgen in Marc h 2008)

Developed KW-2449 Phase I in USA Anticancer Oral In-house

Phase I in Developed KW-2478 Anticancer Injection Europe In-house

ARQ197 Phase I Anticancer Oral ArQule

Developed KRN330 Phase I in USA Anticancer Injection Fully human monoclonal antibody In-house

Updated since April 28th, 2008 (Area, Stage, Filed, Approved, Launched etc.)

Notes: In Vietnam, an NDA of Pegfilgrastim (long acting G-CSF) has been filed for neutropenia and, 10 in the Philippines, an NDA of Filgrastim (G-CSF) has been filed for neutropenia. z R&D pipeline (As of October 2008)

Code Name Stage In-house Category Indication FormulationOR Remarks Product Name Japan Other countries Licensed PB94 Filed in China PHOSBLOCK Hyperphosphatemia Oral Chugai Launched in Japan (June 2008) (RENEGAL) Kidney ☆ Long-acting erythropoiesis stimulating protein. Sales Phase II in ☆Anemia (for CKD patients not KRN321 NESP Phase III Injection Kirin-Amgen for anemia of CKD patients on dialysis were launched China on dialysis) in Japan in July 2007. KW-4679 Filed in China Developed Antiallergic Oral Launched in Japan ALLELOCK (July 2008) In-house Oral (pH Z-206 Inflammatory bowel disease dependant Phase III Zeria Pharma Jointly developed with Zeria Pharma. Immunity / ASACOL (Crohn's disease) controlled- Allergy release formulation)

Phase I in NU206 Inflammatory bowel disease Injection Nuvelo Australia

Filed in USA Developed ☆ Clinical trials for Mono-Therapy: KW-6002 Phase II b Parkinson's disease Oral (April 2008) In-house Phase II a, in Japan CNS KW-6500 Phase II Parkinson's disease Injection Britannia Pharma ☆ Launched for Hypertension in KW-3049 File d in China DldDeveloped Cardiovascular ☆ Angina Oral China in December 2004: CONIEL (Sept. 2008) In-house （Launched in Japan）

Blood factor inhibitor Developed KN3357 Phase I (Disseminated intravascular Injection Recombinant antithrombin product In-house Others coagulation) Bowel disease Developed Developppgment program for Overactive / Urinar y KW-7158 Phase IIa OlOral (Irritable bowel syndrome) In-house incontinence was discontinued in September 2006

Updated since April 28th, 2008 (Area, Stage, Filed, Approved, Launched etc.)

Notes: In Vietnam, an NDA of Pegfilgrastim (long acting G-CSF) has been filed for neutropenia and, in the Philippi nes, an NDA of Fil grasti m (G- CSF) h as b een fil e d for neu tropen ia.

11 z Antibody pharmaceutical pipeline (As of October 2008)

Overview of Development Pipeline Therapeutic Pre-clinical Phase-1 Phase-2 area KW-0761 KW-2871 (()CCR4) (()GD3) Cancer Life Science KRN330 Pharmaceuticals

7 antibodies KW-0761 BIW-8405 Immunological （of which 5 are (CCR4) (IL-5R) / Allergy POTELLIGENT® ） antibodies (Kyowa Hakko Kirin Phase 1) Renal

Other areas : POTELLIGENT® Technology

12 z POTELLIGENT ® Technologyechnology--relatedrelated licensing (As of October 2008)

Technology license

Joint R&D

CSL CaloBios

Product level alliance

Out-licensing In-licensing

13 z Progress in licensinglicensing--outout (As of October 2008)

Phase Partner Pre-clinical Remarks ⅠⅡ Ⅲ

AtiAnticancer (acu te CEP-701 myelocytic )

KW-3902 Merck Congestive heart failure, (MK-7418) (NovaCardia) Renal failure

LY 2523355 Mitotic Kinesin Eg5 Eli Lilly (Eg5 inhibitor) inhibitor

KW-2871 Anticancer Life SiScience＊ Licensing (Low-fucose antibody) (malignant melanoma) -out KW-0761 Anti-CCR4 antibody Amgen (POTELLIGENT antibody) (Kyowa Kirin Phase 1)

BIW-8405 AstraZeneca IL-5R antibody (POTELLIGENT antibody) (MedImmune) KRN 951 AVEO VEGF receptor inhibitor (AV-951) LPA receptor inhibitor Debio 0719 Debio (Metastatic bone cancer)

KRN 7000 REGiMMUNE Immunosuppressant

* Life Science Pharmaceuticals 14 z Progress in licensinglicensing--inin (As of October 2008)

Phase Partner Pre-clinical Remarks ⅠⅡⅢ

KW-6500 Britannia* Anti-Parkinson’s disease (injection) Inflammatory bowel disease Zeria Asacol (Crohn’s disease) Pharmaceuticals Application filed for ulcerative colitis

ARQ197 ArQule Anticancer

RSV anti-infective ALN-RSV01 Alnylam (RNAi pharmaceutical) Licensing Anticancer -in ART104 arana (colonic cancer) Hisamitsu HFT-290 filed Skin patch for cancer pain Pharmaceuticals

KRN 654 Shire Thrombocytosis

NU 206 Nuvelo Inflammatory bowel disease

Renal cell carcinoma AGS-003 Argos (Kidney cell cancer)

AGS-004 Argos Renal cell carcinoma (HIV)

* Britannia Pharmaceuticals 15 z KWKW--07610761 Out-Out-licensinglicensing

‡ Out-licensed to Amgen

‡ OtOut-licensing conditions : z Granted exclusive license to develop and sell worldwide, except in Japan, Korea, China and Taiwan z Applies to all applications except anticancer zRegarding rights to anticancer agents, Amgen retains the option to assume these rights once drug effectiveness has been confirmed through U.S. clinical testing scheduled by Kyowa Hakko Kirin

‡ Financial conditions: z Lump-sum payment at contract time: US $100 million z Milestone： US $420 million (upon reaching development and sales milestones) z Royalty: Double digit percentage royalties on sales amount 16 z Reorganization of US subsidiary structure (Scheduled for January 1, 2009)

Kirin Holdings Kirin Holdings

Kyowa Hakko Kirin Kyowa Hakko Kirin

Kyowa Hakko Kirin America, Inc. Kyowa Hakko Kirin America, Inc.

Kyowa Hakko Kirin Kyowa Hakko Kirin BioWa KPI* KPUSA* HMT* BioWa Pharma, Inc. California, Inc. HMT (KKP) (KKC)

Business Development Research Research Business Development Research Research

Development Development Manufacturing Development Development Manufacturing

Princeton Princeton California South Dakota South PiPrince ton PiPrince ton Ca liforn ia GAC* Dakota

＊ GAC Operating efficiencies in America KPI: Kyowa Pharmaceutical, Inc. z KKP to concentrate on functional development (Princeton) KPUSA: Kirin Pharma USA, Inc. z KKC to specialize in functional research (California) HMT: Hematech, Inc. 17 z BioWa to specialize in the licensing business (Princeton) GAC：HematechHematech--GACGAC Venture, LLC z Kyowa Hakko Kirin antibody business strategy

KM-Mouse® Manufacturing Hematech of EXPOC POTELLIGENT® ThTechnol ogy G-CSF & Technology COMPLEGENTTM Technology Erythropoietin

Discover Produce and Non-clinical Clinical and assess develop Manufacture trials trials antigen antibodi es targets

Collaboration with Lonza Alliance with Ablynx Product Alliances with Arana, Astellas, MedImmune, Amgen, Livtech

Strengthen our antibody pipeline through cutting edge

antibody core technologies and strategic alliances 18 z Development stages of antibody businesses

Technology & Early-stage Early- & late-stage Late-stage & Fully integrated pipeline provider developer developer marketing biotech & pharma

Core technology Core technology Core technology & & & Development of Development of Development of candidate candidate candidate antibodies antibodies antibodies

Ablynx Early stage Early stage Early stage Early stage Crucell

Affibody Peregrine Late stage Late stage Raven Late stage Seattle Medarex Genetics Marketing Marketing ImClone Roche Eli Lilly Kyowa HkkHakko Abbott Amgen Kirin’s BMS current position

19 Integration of the food businesses

20 z Integration of the food busineses

KHkkFdSiltiCLtdKyowa Hakko Food Specialties Co., Ltd. Kir in F ood -ThCTech Company

Net sales ¥43.3 bn ¥27.2 bn Capital ¥3.0 bn ¥5.0 bn Staff 586 261 Business Manufacturing and sale of seasonings and bakery Manufacture and sale of seasonings for processing, products and ingredients commercial and household use, and other food additives Core Extract natural seasonings, Amino acid natural Ribotide, brewer’s yeast extract, Curdlan, Inoichiban, products seasonings, Fermented seasonings, Umami Sunett seasonings, Chinese food sauces, Daiya yeasts, Golden arrow, egg soup

Figures for Kyowa Hakko Food Specialties Co., Ltd. are consolidated figures as of March 31, 2008. Figures for Kirin Food Tech Company are as of December 31, 2007.

z Aiming to increase our presence in the food ingredients for industrial use area through fermentationfermentation--relatedrelated technologies developed by both companies z Significant scope to grow business value in the Asia/Oceania region z Aiming for dramatic growth in food and health as outlined in Kirin Group’s long- long- term business framework “Kirin Group Vision 2015”

21 z Integration of the food businesses

April 1, 2009 ～ December 31, 2010 January 1, 2011

Kirin Holdings Company Kirin Holdings Company

Kyowa Hakko Kirin Co. Ltd. Kirin Kyowa Foods Company Kyowa Hakko Kirin Co. Ltd. Kirin Kyowa Foods Company KYOWA HAK KYOWA HAK KYOWA H KYOWA Wholly owned New company merger ratio subsidiary of

Kirin Holdings: 65 % H K KO CHEMICAL AKKO BIO CO AKKO BIO AKKO BIO C AKKO BIO O CHEMICAL KHkkKii35%Kyowa Hakko Kirin: 35 % Kir in Ho ldings O C C . ., LTD. , LTD. O., LTD. O., LTD.

Steppp, 1: April 1, 2009 Kyowa Hakko Food Specialties Co., Ltd. and Kirin Food-Tech Company will merge to form Kirin Kyowa Foods Company. Kirin Holdings will hold 65%, and Kyowa Hakko Kirin will hold 35%. Kirin Kyowa Foods Company will become an equity method affiliate of Kyowa Hakko Kirin Co., Ltd. Steppy, 2: January 1, 2011 Kirin Holdings will acquire the entire 35% held by Kyowa Hakko Kirin Co., Ltd. and Kirin Kyowa Foods Company will become a wholly owned subsidiary of Kirin Holdings 22 APPENDIX

23 z Pharmaceuticals: Major factors effecting results

(All listed factors are on a non-consolidated basis unless otherwise noted) FY 2007 H1 Net sales FY 2008 H1 ¥68.9 bn +¥39.8 bn ¥108.7 bn Consolidation of Kirin Pharma Positive factors Onetime contract payment from Amgen Launched Coversyl, growth in sales of Patanol, etc. Effects of price revisions Negative factors Termination of Durotep sales Operating income ¥9.7 bn +¥9.9 bn ¥19.6 bn After amortization of integration- Positive factors Consolidation of Kirin Pharma related goodwill: ¥4.3 bn Onetime contract payment from Amgen Launched Coversyl, growth in sales of Patanol, etc. Negative factors Effects of price revisions

24 z BioBio--ChemicalsChemicals : Major factors effecting results

(All listed factors are on a non-consolidated basis unless otherwise noted) FY 2007 H1 Net sales FY 2008 H1 ¥43.8 bn +¥1.9 bn ¥45.7 bn Positive factors Increased bulk sales of raw materials for pharmaceutical and industrial use Increased mail-mail-orderorder sales of Remake series Negative factors Effects of foreign exchange Operating income ¥4.0 bn +¥1.1 bn ¥5.2 bn Positive factors Increased bulk sales of raw materials for After amortization of integration- pharmaceuticals (トル) and industrial use related goodwill: ¥0.3 bn Increased mail-mail-orderorder sales of Remake series Negative factors Effects of foreign exchange

25 z Chemicals

Change from FY06 H1 FY07 H1 FY08 H1 (¥bn) FY07 H1 Net sales 45. 8 51. 0 57. 2 +6. 1 Operating 1.6 3.2 2.9 -0.3 income

Price revisions were implemented against a background of higher raw material and fuel prices z Domestic: Sales increased with the implementation of product price revisions and despite sales volumes being lower than FY 2007 H1 z Exports: Sales were up as prices remained high in overseas markets for core products and sales volumes also increased z Specialty chemicals: Sales of raw materials for refrigerant lubricants continued to grow z Depreciation expense: Depreciation expenses increased following investments in production and research facilities

Naptha price trends FY 2008 H1 FY 2007 H1 (Forecast) ¥58,750/kl ¥78,000/kl 26 z Chemicals: Major factors effecting results

(All listed factors are on a non-consolidated basis unless otherwise noted) FY 2007 H1 Net sales FY 2008 H1 ¥51.0 bn +¥6.1 bn ¥57.2 bn Positive factors (Domestic) Price revisions of basic chemical products (Exports) Firm market, growth in specialty chemicals Negative factors Withdrawal of certain products (bulk acetone) Oppgerating income ¥3.2 bn -¥0.3 bn ¥2.9 bn After amortization of integration- Positive factors (Domestic) Price revisions of basic related goodwill: ¥0.02 bn chemical products (Exports) Firm market, growth in specialty chemicals Negative factors Increase in depreciation expenses

27 z Food

Change from FY06 H1 FY07 H1 FY08 H1 (¥bn) FY07 H1 Net sales 20.9 20.9 20.8 -0.1 Oppgerating 080.8 060.6 050.5 -010.1 income

Achieved results in line with as ppyrevious fiscal year amidst an environment of hi gh fuel and raw material prices. z Natural seasonings: Sales of fermented seasonings grew despite the impact from an environment of high raw material prices z Umami seasonings：Sales increased as a result of price revisions in response to the effects of high raw material prices and an increase in sales volumes z Bakery products and ingredients: Flavor enhances performed well but sales decreased as a result of the termination of sales of certain products in response to the effects of high prices for raw materials and other factors

28 z Food: Major factors effecting results

(All listed factors are on a non-consolidated basis unless otherwise noted) FY 2007 H1 Net sales FY 2008 H1 ¥20.9 bn -¥0.1 bn ¥20.8 bn Positive factors Increased sales volumes of fermented seasonings and Umami seasonings Negative factors Decreased sales volumes of bakery products and ingredients Operating income ¥0.6 bn -¥0.1 bn ¥0.5 bn After amortization of integration - Positive factors Revised prices for Umami seasonings related goodwill: ¥0.1 bn Review of bakery ingredient and product lineline--upup NtiftNegative factors IItnput cost tis increased

29 30