RNS Number:9112H
Kirin Brewery Co Ld
25 February 2003
PART 2
SUPPLEMENTARY COMMENTS
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2002 Actual:Consolidated
PROFIT CHANGE FROM PRIOR YEAR
(Billions yen)
Item '02Actual '01Actual Difference Reference
Sales 1,583.2 1,561.8 21.4
Increase in Parent's 9.1
operating income
Increase in other consolidated 4.4 LION NATHAN LTD.:2.8,etc.
subsidiaries' operating income
Increase in KIRIN BEVERAGE'S 1.2
operating income
Increase in 89.7 75.0 14.7
Operating Income
Increase in equity in earnings 0.3 SAN MIGUEL
of affiliates CORPORATION:0.7,etc.
Increase in Parent's non-operating 0.2
income, net
Increase in other consolidated 0.0 LION NATHAN LTD.:0.2,etc.
subsidiaries' non-operating
income, net
Decrease in KIRIN BEVERAGE'S (0.1)
non-operating income, net
Increase in Income Before 84.4 69.3 15.1
Special Items and Income Taxes
Increase in KIRIN BEVERAGE'S 1.5
special income, net
Decrease in minority interests (1.2)
Decrease in Parent's (2.3)
special income, net
Decrease in other consolidated (3.7) LION NATHAN LTD.:(1.6),etc.
subsidiaries' special income, net
Increase in Net Income 23.1 32.5 (9.4)
SUPPLEMENTARY COMMENTS
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2003 Forecast:Consolidated
PROFIT CHANGE FROM CURRENT YEAR
(Billions yen)
Item '03Forecast '02Actual Difference Reference
Sales 1,670.0 1,583.2 86.8
Increase in Parent's 13.0
operating income
Increase in KIRIN BEVERAGE'S 0.7
operating income
Decrease in other consolidated (3.4) Kirin Logistics Co.,Ltd.:(2.4)
subsidiaries' operating income Kirin Engineering Co,.Ltd.:(0.6)
,etc.
Increase in 100.0 89.7 10.3
Operating Income
Increase in Parent's non- 4.2
operating income, net
Increase in equity in earnings 2.1
of affiliates
Decrease in other consolidated (3.0) Elimination of dividend income
subsidiaries' non-operating ,etc.
income, net
Increase in Income Before 98.0 84.4 13.6
Special Items and Income Taxes
Increase in KIRIN BEVERAGE'S 1.0
special income, net
Increase in other consolidated 0.4
subsidiaries' special income, net
Decrease in minority interests (1.0)
Decrease in Parent's (7.5)
special income, net
Increase in Net Income 39.0 32.5 6.5
Consolidated
Forecast of consolidated financial performance
Results of operations (Billions yen)
2003 Forecast 2002 Actual 2001 Actual
Sales 1,670.0 1,583.2 1,561.8
Operating Income 100.0 89.7 75.0
Income before Special 98.0 84.4 69.3
items
Net income 39.0 32.5 23.1
Scope of consolidation and application of equity method (Number of companies)
2003 Forecast 2002 Actual 2001 Actual
Consolidated subsidiaries 305 305 261
Unconsolidated subsidiaries applied by equity 1 1 1
method
Affiliates applied by equity method 16 16 15
Analysis of operating income by business segment (Billions yen)
Fluctuation between 2002 Actual and 2001 Actual
Alcoholic Soft drinks Other Elimination/ Total
beverages Unallocation
Operating income - 2001 Actual 46.4 17.1 15.8 (4.3) 75.0
Increase (Decrease) in gross profit 9.8 7.4 6.1 (2.2) 21.1
Decrease (Increase) in selling expenses 18.4 (4.3) (0.6) - 13.5
Decrease (Increase) in operations, and (15.5) (1.3) (6.4) 3.3 (19.9)
general and administrative expenses
Increase (Decrease) in operating income 12.7 1.8 (0.9) 1.1 14.7
Operating income - 2002 Actual 59.1 18.9 14.9 (3.2) 89.7
Fluctuation between 2003 Forecast and 2002 Actual (Billions yen)
Alcoholic Soft drinks Other Elimination/ Total
beverages Unallocation
Operating income - 2002 Actual 59.1 18.9 14.9 (3.2) 89.7
Increase (Decrease) in gross profit 10.3 24.6 5.1 0 40.0
Decrease (Increase) in selling expenses 1.9 (18.6) (2.7) - (19.4)
Decrease (Increase) in operations, and 0.6 (5.1) (5.0) (0.8) (10.3)
general and administrative expenses
Increase (Decrease) in operating income 12.8 0.9 (2.6) (0.8) 10.3
Operating income - 2003 Forecast 71.9 19.8 12.3 (4.0) 100.0
Consolidated
Sales and Major Expenditures etc.
(Billions yen)
2003 2002 2001
Forecast Actual Actual
Sales volume
Alcoholic beverages thousand KL Increase thousand KL Increase thousand KL Increase
(Decrease) (Decrease) (Decrease)
Beer and Happoshu 3,604 0.2% 3,595 (0.8%) 3,626 (6.2%)
million cases million cases million cases
Soft drinks 213 10.1% 193 3.0% 187 5.7%
Sales by business segments 1,670.0 5.5% 1,583.2 1.4% 1,561.8 (1.2%)
Total
Alcoholic beverages 1,097.0 2.6% 1,069.5 (8.0%) 1,078.0 (3.0%)
Beer and Happoshu 991.0 0.3% 987.5 (3.8%) 1,026.9 (7.6%)
Whiskey, Spirits, wines and 106.0 29.4% 81.9 60.4% 51.0 -
chu-hi etc.
Soft drinks 383.0 11.7% 342.9 3.0% 332.9 4.7%
Other business 190.0 11.3% 170.7 13.2% 150.9 0.0%
Pharmaceutical 57.5 15.9% 49.6 1.1% 49.0 5.0%
Agribio 23.5 28.2% 18.3 41.1% 12.9 (15.7%)
Functional Foods 38.0 43.5% 26.4 143.0% 10.8 46.7%
Other 71.0 (1.8%) 76.3 (2.1%) 77.9 (4.2%)
Sales promotion 208.0 136.3 139.8
Advertising 56.6 61.2
R&D 24.5 23.0 23.0
Depreciation 73.0 75.2 73.5
Financial profit, net (6.0) (4.9) (5.6)
Capital Expenditures 76.0 85.4 71.4
Cash flows 6.0 (38.2) 79.9
Operating activities 129.0 87.7 71.1
Investing activities (82.0) (175.3) (12.1)
Financing activities (41.0) 50.6 20.8
Consolidated
Major Changes in Assets and Liabilities
(Billions yen)
2002 2001 Increase Reference
Actual Actual (Decrease)
Cash 108.1 143.5 (35.4) Disbursements for investments
Investment securities 330.9 263.0 67.9 Investments in SAN MIGUEL CORPORATION,etc.
Short-term loans payable 152.9 100.6 52.3 Financing for investments in SAN MIGUEL
and Long-term debt CORPORATION,etc.
Bonds 129.9 87.4 42.5 Issue of bonds by the company
SUPPLEMENTARY COMMENTS
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Consolidated
Changes in Sales and Operating Income of Major Companies
Sales (Billions yen)
2002 Actual 2001 Actual Increase (Decrease)
Kirin brewery Company,Limited 999.9 1,028.4 (28.5)
(Subsidiary)
Kirin Beverage Corporation 319.2 304.0 15.2
LION NATHAN LTD. 111.3 93.8 17.5
The Coca-Cola Bottling Company 31.5 30.2 1.3
Of Northern New England ,Inc
Kirin Logistics Co.,Ltd. 78.7 75.4 3.3
Kirin Engineering Co,.Ltd. 31.4 57.4 (26.0)
(Affiliate)
Kinki Coca-Cola Bottling Co.,Ltd. 183.3 182.6 0.7
YONEKYU CORPORATION 89.3 88.9 0.4
SAN MIGUEL CORPORATION 329.2 - -
Operating Income (Billions yen)
2002 Actual 2001 Actual Increase (Decrease)
Kirin brewery Company,Limited 44.0 34.9 9.1
(Subsidiary)
Kirin Beverage Corporation 15.2 14.0 1.2
LION NATHAN LTD. 22.6 19.8 2.8
The Coca-Cola Bottling Company 3.7 3.0 0.7
Of Northern New England ,Inc
Kirin Logistics Co.,Ltd. 4.5 3.7 0.8
Kirin Engineering Co,.Ltd. 1.3 1.8 (0.5)
(Affiliate)
Kinki Coca-Cola Bottling Co.,Ltd. 5.4 8.0 (2.6)
YONEKYU CORPORATION 2.2 2.8 (0.6)
SAN MIGUEL CORPORATION 29.9 - -
KIRIN BREWERY COMPANY, LIMITED February 19, 2003
SUMMARY OF NON-CONSOLIDATED FINANCIAL STATEMENTS AS OF
DECEMBER 31, 2002 (UNAUDITED)
(English Translation)
Fiscal year ended December 31, 2002
KIRIN BREWERY COMPANY, LIMITED
10-1, Shinkawa 2-chome, Chuo-ku, Tokyo, Japan (URL http://www.kirin.co.jp/english/ )
Code No.: 2503
Shares Listed: Tokyo, Osaka, Nagoya, Fukuoka, Sapporo,
Interim dividend plan: Yes
Minimum numbers of shares to have voting rights: 1,000 shares
Representative: Mr. Koichiro Aramaki, President
For further information, please contact: Mr. Sumio Nagata, General Manager,
Communications Dept.
Telephone: 81- 3- 5540- 3450 from overseas
Date of the Board of Directors' Meeting for the annual operation results: February 19, 2003
Date of regular shareholders' meeting: March 28, 2003
1. Business results and financial positions for the current fiscal year
(January 1, 2002 - December 31, 2002) (Unit: Japanese yen )
(1) Results of operations: (Fractions less than 1 million yen have been omitted.)
Sales Percentage Operating Percentage Income before Percentage
(millions yen) change income change special items change
(%) (millions yen) (%) (millions yen) (%)
Year ended December 31, 2002 999,920 (2.8) 44,024 25.9 53,831 20.8
Year ended December 31, 2001 1,028,403 (3.6) 34,965 (36.5) 44,580 (33.8)
Net income Percentage Net income Net income Ratio of net Ratio ofordinary Ratio of
(millions yen) change per share per share income to income to ordinary
(%) primary diluted shareholders' total assets income to
(yen) (yen) equity (%) sales
(%) (%)
Year ended December 31, 2002 26,380 36.1 26.96 - 3.8 4.3 5.4
Year ended December 31, 2001 19,382 (38.4) 19.69 - 2.9 3.7 4.3
Notes: (1) Average number of shares of common stock outstanding during the year:
December 31, 2002 978,318,065 shares
December 31, 2001 984,485,996 shares
(2) Change in accounting policies: None
(3) Percentage change means the ratio of increase or decrease in each item of business results for the year
ended December 31, 2002, to those for the year ended December 31,2001.
(2) Dividends:
Dividend per Interim Year-end Dividend paid Dividend Ratio of
share for the dividend per dividend per for the year pay-out ratio dividends to
year share share (millions yen) (%) shareholders'
(yen) (yen) (yen) equity (%)
Year ended December 31, 2002 12.00 6.00 6.00 11,675 44.3 1.7
Year ended December 31, 2001 12.00 6.00 6.00 11,813 60.9 1.7
(3) Financial positions:
Total assets Shareholders' Ratio of shareholders' Shareholders'
(millions yen) equity equity to total assets equity per share
(millions yen) (%) (yen)
December 31, 2002 1,280,112 679,770 53.1 703.18
December 31, 2001 1,251,755 691,878 55.3 702.83
Notes: (1) Number of shares of common stock issued and outstanding:
December 31, 2002 966,713,386 shares
December 31, 2001 984,417,871 shares
(2) Number of treasury stock held:
December 31, 2002 17,795,001 shares
December 31, 2001 90,516 shares
2. Forecast of business results for the next fiscal year (January 1, 2003-December 31, 2003)
Sales Income before Net income Interim Year-end Dividend per
(millions yen) special (millions yen) dividend per dividend per share for the
items share share year
(millions yen) (yen) (yen) (yen)
6 months ending June 30, 2003 470,000 28,000 15,000 6.00 - -
Year ending December 31, 2003 1,030,000 71,000 36,000 - 6.00 12.00
Note: Forecasted net income per share 37.24 yen
Refer to page 8 - 9 for the assumptions and other matters related to the above forecast.
SUMMARY OF NON-CONSOLIDATED FINANCIAL STATEMENTS
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BALANCE SHEETS (millions yen)
ASSETS (Note) At Percentage At Percentage Increase
December 31, over total December 31, over total (Decrease)
2002 assets 2001 assets Amount
Amount Amount
Current Assets
Cash 54,838 89,776 (34,938)
Notes receivable 2,088 3,039 (951)
Accounts receivable 178,193 183,536 (5,343)
Marketable securities 1,001 7,562 (6,561)
Merchandise 4,477 1,137 3,340
Finished goods 6,171 4,917 1,254
Semi-finished goods 9,089 7,948 1,141
Raw materials 13,559 12,249 1,310
Containers 3,260 3,850 (590)
Supplies 294 831 (537)
Advances 488 241 247
Other accounts receivable 18,482 18,415 67
Deferred income taxes 12,168 13,000 (832)
Funds in trust - 17,411 (17,411)
Other 4,128 4,976 (848)
Allowance for doubtful accounts (4,327) (1,164) (3,163)
Total current assets 303,914 23.7 367,733 29.4 (63,819)
Fixed Assets
Property, Plant and Equipment (*1)
Buildings (*2) 120,449 126,131 (5,682)
Structures 18,514 19,677 (1,163)
Machinery and equipment 130,748 130,756 (8)
Vehicles 412 535 (123)
Tools 9,832 10,065 (233)
Land (*2) 113,263 113,655 (392)
Construction in progress 8,130 19,047 (10,917)
Total 401,351 31.4 419,869 33.5 (18,518)
Intangible Fixed Assets
Leasehold rights 661 661 -
Utility rights 5,385 5,947 (562)
Total 6,047 0.5 6,609 0.5 (562)
Investments and Other Assets
Investment securities (*2) 190,820 188,614 2,206
Investments in subsidiaries and affiliates (capital 257,612 164,592 93,020
stock)
Other investments 199 1,634 (1,435)
Investments in equity of subsidiaries and affiliates 8,184 8,184 -
(other than capital stock)
Long-term loans 3,719 2,862 857
Long-term loans to employees 4 0 4
Long-term loans to affiliates 13,041 2,550 10,491
Life insurance investments 34,985 33,604 1,381
Deposits paid 16,610 17,515 (905)
Real estate in trust 3,729 7,324 (3,595)
Deferred income taxes 39,075 29,546 9,529
Other 4,177 3,873 304
Allowance for doubtful accounts (3,362) (2,759) (603)
Total 568,799 44.4 457,543 36.6 111,256
Total fixed assets 976,198 76.3 884,022 70.6 92,176
TOTAL ASSETS 1,280,112 100.0 1,251,755 100.0 28,357
BALANCE SHEETS (millions yen)
LIABILITIES AND SHAREHOLDERS' (Note) At December 31, Percentage over At December 31, Percentage over Increase
EQUITY 2002 Amount total assets 2001 Amount total assets (Decrease)
Amount
Current Liabilities
Notes payable 592 708 (116)
Accounts payable 33,987 37,665 (3,678)
Short-term loans payable 17,500 11,500 6,000
Beer taxes payable 111,206 117,123 (5,917)
Other accounts payable 13,030 18,182 (5,152)
Consumption tax payable 9,549 7,506 2,043
Income tax payable 8,467 11,749 (3,282)
Accrued expenses 37,566 40,470 (2,904)
Deposits received 59,386 62,889 (3,503)
Deposits received for 1,545 1,792 (247)
containers
Other 10,056 6,180 3,876
Total current liabilities 302,888 23.7 315,770 25.2 (12,882)
Long-term Liabilities
Bonds 110,000 70,000 40,000
Long-term debt 26,000 1,000 25,000
Pension and retirement benefits 81,385 85,959 (4,574)
Retirement benefits for 1,414 1,581 (167)
directors and corporate auditors
Deposits received (*2) 68,301 76,090 (7,789)
Other 10,350 9,476 874
Total long-term liabilities 297,453 23.2 244,107 19.5 53,346
TOTAL LIABILITIES 600,341 46.9 559,877 44.7 40,464
Common Stock (*4) 102,045 8.0 102,045 8.2 -
Additional Paid-In Capital 70,868 5.5 70,868 5.7 -
Legal Reserve 25,511 2.0 25,511 2.0 -
Retained Earnings: 488,922 38.2 474,416 37.9 14,506
Voluntary Earned Surplus
Transfer to reserve for 217 279 (62)
special depreciation
Reserve for deferred gain on 14,631 14,047 584
sale of property
Reserve for dividends 6,450 6,450 -
General reserve 406,367 389,367 17,000
Unappropriated Retained 61,255 64,272 (3,017)
Earnings
Net unrealized holding gains on 6,050 0.5 19,122 1.5 (13,072)
securities
Treasury Stock (13,628) (1.1) (86) (0.0) (13,542)
TOTAL SHAREHOLDERS' EQUITY 679,770 53.1 691,878 55.3 (12,108)
TOTAL LIABILTIES AND 1,280,112 100.0 1,251,755 100.0 28,357
SHAREHOLDERS' EQUITY
STATEMENTS OF INCOME (millions yen)
(Note) Year ended Percentage Year ended Percentage Increase
December 31, over sales December 31, over sales (Decrease)
2002 Amount 2001 Amount Amount
Sales 999,920 100.0 1,028,403 100.0 (28,483)
Cost of Sales 703,954 70.4 730,267 71.0 (26,313)
Gross Profit 295,965 29.6 298,136 29.0 (2,171)
Selling, General and Administrative Expenses (*1,2) 251,941 25.2 263,170 25.6 (11,229)
Operating Income 44,024 4.4 34,965 3.4 9,059
Non-operating Income
Interest income 726 643 83
Security interest 131 375 (244)
Return on funds in trust 210 558 (348)
Dividend income 9,318 7,863 1,455
Rent income 2,771 2,037 734
Other 2,068 2,997 (929)
Total 15,226 1.5 14,476 1.4 750
Non-operating Expenses
Interest expense 1,199 1,306 (107)
Interest on bonds 761 72 689
Other 3,458 3,481 (23)
Total 5,419 0.5 4,861 0.5 558
Income before Special Items and Income Taxes 53,831 5.4 44,580 4.3 9,251
Special Income
Gain on sales of fixed assets (*3) 1,923 2,667 (744)
Reversal of provision for doubtful 157 71 86
accounts
Gain on sale of securities 243 9,959 (9,716)
Gain on securities contributed to pension - 4,599 (4,599)
and retirement benefits trust
Total 2,324 0.2 17,298 1.7 (14,971)
Special Expenses
Loss on disposal of fixed assets (*4) 5,474 4,422 1,052
Loss on sale of fixed assets (*5) 136 86 50
Loss on revaluation of investment 2,215 3,041 (826)
securities
Loss on sale of securities - 1,299 (1,299)
Write-down of investment in subsidiaries 88 3,514 (3,426)
and affiliates
Loss on devaluation of golf club (*6) - 1,991 (1,991)
membership
Amortization of net transition obligation - 13,464 (13,464)
of accountingstandard for severance and
pension benefits
Loss on devaluation of real estate in 3,352 - 3,352
trust
Total 11,268 1.1 27,820 2.7 (16,552)
Income before Income Taxes 44,887 4.5 34,058 3.3 10,829
Income Taxes(Current) 17,700 22,600 (4,900)
Income Taxes(Deferred) 807 1.9 (7,924) 1.4 8,731
Net Income 26,380 2.6 19,382 1.9 6,998
Retained earnings brought forward from the 40,750 50,796 (10,046)
prior fiscal year
Dividends(interim) 5,874 5,907 (33)
Unappropriated retained earnings 61,255 64,272 (3,017)
STATEMENTS OF RETAINED EARNINGS (millions yen)
Year ended December 31, 2002 Year ended December 31, 2001
Unappropriated retained earnings 61,255 64,272
Transfer from reserve for special depreciation 52 72
Transfer from reserve for deferred gain on sale of property 1,328 395
Total 62,636 64,740
Appropriations:
Dividends 5,800 5,906
Bonuses paid to directors and corporate auditors 149 92
(corporate auditors' portion included above 14 10)
Voluntary earned surplus
Transfer to reserve for special depreciation 31 10
Transfer to reserve for deferred gain on sale of property 624 980
Transfer to general reserve 15,000 17,000
Retained earnings to be carried forward to the next fiscal 41,030 40,750
year
Note 1: Interim dividends of 5,874,843,336 yen(6 yen per share) was paid on September 12, 2002.
Note 2: Transfer from/to reserve for special depreciation and transfer from/to reserve for deferred gain on sale of
property are pursuant to the Special Taxation Measures Law of Japan.
SIGNIFICANT ACCOUNTING POLICIES
1. Valuation of securities
Equity securities issued by subsidiaries and affiliated companies are valued at cost determined by the moving-average
method.
Available-for-sale securities with fair market values are stated at fair market value as of the balance sheet date.
Unrealized gains and unrealized losses on these securities are reported, net of applicable income taxes, as a separate
component of shareholders'f equity. Realized gains and losses on sale of such securities are computed using the
moving-average method.
Debt securities without fair market value are stated at amortized cost, net of the amount considered not collectible.
Other securities without fair market value are stated at cost determined by the moving-average method.
2. Valuation of derivative financial instruments
Derivative financial instruments are stated at fair values.
3. Valuation of Inventorie
Merchandise, finished goods and semi-finished goods are mainly stated at cost determined by the average method.
Raw materials and supplies are mainly stated at cost determined by the moving average method.
4. Depreciation of property, plant and equipment
Depreciation of property, plant and equipment is calculated on the declining balance method, except for buildings
(excluding building fixtures) acquired on and after April 1, 1998, where depreciation is calculated on the straight-line
method in accordance with the Corporate Income Tax Law of Japan.
5.Amortization of intangible fixed assets
The straight-line method is used for intangible fixed assets over estimated useful lives.
6. Allowance for doubtful accounts
Allowance for doubtful accounts is provided in an amount sufficient to cover probable losses on collection. It consists
of the estimated uncollectible amount with respect to certain identified doubtful receivables and an amount calculated
using the actual percentage of collection losses.
7. Pension and retirement benefits
The Company provides allowance for employees' pension and retirement benefits at December 31,2002 based on the estimated
amounts of projected benefit obligation and the fair value of the plan assets at the date. Actuarial differences are
amortized by the straight-line method over the average estimated service period, which is 15 years, beginning from the
next fiscal year.
8. Retirement benefits for directors and corporate auditors
Provision for retirement benefits for directors and corporate auditors represents 100% of such retirement benefit
obligations calculated in accordance with policies of the Company.
9. Leases
Finance leases, except for those leases under which the ownership of the leased assets is considered to be transferred
to the lessee, are accounted for in the same manner as operating leases.
10. Hedge accounting
Where certain hedging criteria are met, the Company defers the recognition of gains and losses resulting from the
changes in fair value of derivative financial instruments until the related losses or gains on the hedged items are
recognized.
For forward foreign exchange contracts used for hedging purposes, the foreign currency receivables or payables are
recorded at the contracted forward rates. In addition, for interest rate swap contracts meeting certain hedging
criteria, the net amount to be paid or received under the interest rate swap contracts is added to or to be deducted
from the interest on the assets or liabilities for which the swap contract was executed.
The Company uses forward foreign currency contracts and interest rate swap contracts as derivative financial instruments
only for the purpose of mitigating future risks of fluctuation of foreign currency exchange rates with respect to
foreign currency receivables and payables from operations and interest rate increases with respect to borrowings, within
the amounts of foreign currency borrowings or receivables.
The following summarizes hedging derivative financial instruments used by the Company and items hedged:
Hedging instruments Hedged items
Forward foreign exchange contracts etc. Foreign currency trade receivables and trade payables
Interest rate swap contracts etc. Interest on foreign currency bonds and loans payable
The Company evaluates the hedging effectiveness semi-annually by comparing the cumulative changes in cash flows from or
the changes in fair value of hedged items and the corresponding changes in the hedging derivative instruments.
11. Consumption tax
Consumption tax is excluded from the revenue and expense accounts, which are subject to such tax.
NOTES TO:
(NON-CONSOLIDATED BALANCE SHEETS)
1 Accumulated depreciation (millions yen)
At At
December 31, 2002 December 31, 2001
Accumulated depreciation 527,983 505,799
2 Detail of Collateral
(1) Collateral (millions yen)
At At
December 31, 2002 December 31, 2001
Buildings 1,032 1,118
Land 439 439
Investment securities 14 33
(2) Secured borrowing (millions yen)
At At
December 31, 2002 December 31, 2001
Deposits received 2,296 2,296
Postage charge (facility limit) 13 29
3 Receivables from and payables to subsidiaries and affiliates (millions yen)
At At
December 31, 2002 December 31, 2001
Accounts payable, short term loans payable and 29,228 26,191
accrued expenses etc.
4 Shares authorized and issued (shares)
At At
December 31, 2002 December 31, 2001
Number of stock authorized 1,732,026,000 1,732,026,000
Number of stock issued 984,508,387 984,508,387
SUMMARY OF NON-CONSOLIDATED FINANCIAL STATEMENTS
---------------------------------------------------------------------------------
NOTES TO:
(NON-CONSOLIDATED BALANCE SHEETS)
5 Contingent liabilities
(1) Guarantees for subsidiaries and affiliated companies (millions yen, Foreign currency: thousand)
At At
December 31, 2002 December 31, 2001
Kirin Lease Co.,Ltd. 12,004 10,046
Marinenet Co.,Ltd. 3,290 3,675
Kirin International Trading Co.,Ltd. 2,050 2,050
Kirin Brewery of America LLC 839 1,240
(USD 7,000) (USD 9,400)
Koiwai Dairy Products Co.,Ltd. 800 1,650
Yokohama Arena Co.,Ltd. 574 890
Other 3,396 3,586
(Number 12 11)
(Foreign currencies included above 2,393 2,654
USD 9,239 USD 9,500
EUR 5,488 NLG 2,000
NTD 175,700 EUR 3,780
NTD 226,810)
(2) Guarantees for employee's housing loan from banks (millions yen)
At At
December 31, 2002 December 31, 2001
11,599 13,378
(3) Guarantees for bank loans of customers (millions yen)
At At
December 31, 2002 December 31, 2001
144 414
Number 2 3
Total contingent liabilities 34,697 36,931
(Including agreements similar to contingent 9,420 9,100
liabilities)
6 Restriction on dividends payment
(At December 31,2002)
Available-for-sale securities with market value are remeasured at market values. Unrealized holding gains on these
securities are reported, net of applicable income taxes, as a separate component of shareholders' equity. Such
unrealized holding gains amounting to 6,050 million yen are restricted for appropriation of dividends in accordance with
the Japanese Commercial Code.
(At December 31,2001)
Financial instruments with market value are remeasured at market values at balance sheet date, which increase net
assets by 19,014 million yen. The increase is reported in the balance sheet, net of applicable income taxes, as a part
of unappropriated retained earnings (deduction of 107 million yen) and unrealized holding gains on securities of 19,122
million yen as a separate component of shareholders' equity. Such increase of net assets is restricted for appropriation
of dividends in accordance with the Japanese Commercial Code.
NOTES TO:
(NON-CONSOLIDATEDSTATEMENTSOFINCOME)
1 Major elements ofselling, general and administrative expenses (millions yen)
Year ended Year ended
December 31,2002 December 31,2001
Sales promotion 65,863 76,480
Freight 24,274 24,688
Advertising 31,895 38,871
Payroll 38,448 38,372
Pension and retirement benefit costs 7,843 6,230
Expense for retirement benefits for directors and corporate 339 404
auditors
Welfare 9,220 9,048
Depreciation 3,145 3,652
Research and development 21,565 22,122
Doubtful accounts expense 3,845 367
Percentage of selling expenses over selling, general and 73% 75%
administrative expenses
2 Research and development expenseincludedinselling, general andadministrative (millions yen)
expenses andcost of sales
Year ended Year ended
December 31,2002 December 31,2001
Total research and development expense 21,565 22,122
3 Gain onsales of fixed assets (millions yen)
Year ended Year ended
December 31,2002 December 31,2001
Land 1,915 2,665
Other 8 1
Total 1,923 2,667
4 Loss on disposal offixed assets (millions yen)
Year ended Year ended
December 31,2002 December 31,2001
Buildings 2,783 1,838
Machinery and equipment 2,058 2,171
Other 631 412
Total 5,474 4,422
5 Loss onsale of fixed assets (millions yen)
Year ended Year ended
December 31,2002 December 31,2001
Land 70 17
Other 65 68
Total 136 86
6 Loss on devaluation of golfclubmembership
Doubtful accounts expenseforsecurity deposit of golfclub membership
7 Matters related to subsidiaries andaffiliates (millions yen)
Year ended Year ended
December 31,2002 December 31,2001
Dividends received 6,740 6,018
Interest income, rent income and other 1,572 -
(LEASE TRANSACTIONS)
Finance lease transactions without ownership transfer to lessee
(1) Purchase price equivalents, accumulated depreciation equivalents and book value equivalents of (millions yen)
leased properties
At At
December 31,2002 December 31,2001
Structures
Purchase price equivalent 7 7
Accumulated depreciation equivalent 6 5
Book value equivalent 0 2
Machinery and equipment
Purchase price equivalent 179 180
Accumulated depreciation equivalent 69 57
Book value equivalent 109 123
Vehicles
Purchase price equivalent 14 13
Accumulated depreciation equivalent 7 7
Book value equivalent 6 5
Tools
Purchase price equivalent 7,054 7,678
Accumulated depreciation equivalent 3,504 3,887
Book value equivalent 3,549 3,791
Total
Purchase price equivalent 7,254 7,880
Accumulated depreciation equivalent 3,588 3,957
Book value equivalent 3,666 3,922
(2) Lease commitments (millions yen)
At At
December 31,2002 December 31,2001
Due within one year 1,462 1,670
Due after one year 2,304 2,417
Total 3,767 4,088
(3) Lease payments, depreciation equivalents and interest equivalents (millions yen)
Year ended Year ended
December 31,2002 December 31,2001
Lease payments 2,032 2,602
Depreciation equivalent 1,908 2,300
Interest equivalent 182 255
(4) Method of depreciation equivalent
Depreciation equivalent is computed on the straight-line method over the lease period without residual
value.
(5) Allocation of interest equivalent
Differences between total lease expenses and acquisition costs of the leased properties comprise interest
expenses and insurance, maintenance and certain other operating costs.
Interest expenses are allocated using interest method over the terms of leases.
Operating lease transactions (millions yen)
Lease commitments
At At
December 31,2002 December 31,2001
Due within one year 151 148
Due after one year 473 529
Total 625 677
(Securities )
Information on securities, except for those presented below, for current and prior period are presented with the
consolidated financial Statements.
(Investments in subsidiaries and affiliates with market value)
At December 31,2002 (millions yen )
Book value Market value Difference
Investment in subsidiaries 101,754 154,094 52,339
Investment in affiliates 85,701 87,559 1,857
At December 31,2001 (millions yen )
Book value Market value Difference
Investment in subsidiaries 101,754 144,760 43,005
Investment in affiliates 12,536 29,198 16,661
(Deferred income taxes)
1. Significant components of deferred tax assets and liabilities (millions yen )
At At
December 31, 2002 December 31, 2001
Deferred tax assets
Pension and retirement benefits 27,672 31,483
Deferred charges 9,045 8,695
Depreciation 6,283 6,592
Other 22,911 22,413
Total deferred tax assets 65,913 69,185
Deferred tax liabilities
Reserve for deferred gains on sales of fixed assets for (10,127) (10,638)
tax purposes
Other (4,542) (15,999)
Total deferred tax liabilities (14,669) (26,638)
Net deferred tax assets 51,243 42,546
2. As the difference between the statutory tax rate and the effective tax rate is less than 5% of the statutory,
reconciliation schedule of tax rate is omitted.
FINANCIAL RESULTS for THE YEAR ended DEC. 31, 2002
SUPPLEMENTARY COMMENTS
---------------------------------------------------------------------------------
2002 Actual:Parent
PROFIT CHANGE FROM PRIOR YEAR
(Billions yen)
Item '02Actual '01Actual Difference Reference
Sales 999.9 1,028.4 (28.5)
Decrease in selling cost 18.0 Sales promotion and advertising :17.6
Freight :0.4
Increase in alcoholic 8.9 Decrease in beer business marginal profit:(25.4)
beverages business profit Increase in happou-syu business
marginal profit:20.7
Increase in hyouketsu business marginal profit:8.0
Change of selling scheme for whiskey,spirits
and wines:5.2,etc
Decrease in fixed cost 2.4 Decrease in production of new kegs:0.7
at breweries Fuel:0.5,etc.
Decrease in beer and 1.6 Barley:1.3 cans:1.4
Happo-syu material cost Increase in production of new bottles:(1.6),etc.
Decrease in depreciation 0.2
Increase in labor cost (1.2)
Other (5.7) Doubtful account expense:(3.4)
Operating expenses for Spirits and Wines.Dpt:(1.9),etc
Effect from price reductions (15.1)
to happo-shu product
Decrease in 44.0 34.9 9.1
Operating Income
Financial profit, net 0.2
Decrease in Income Before 53.8 44.5 9.3
Special Items and Income Taxes
Decrease in special 1.6 Write-down of investment in
expenses, net subsidiaries and affiliates:3.4
Loss on devaluation of golf club membership:1.9
Loss on devaluation of real estate in trust:(3.3)
Income taxes, etc (3.9)
Increase in Net Income 26.3 19.3 7.0
SUPPLEMENTARY COMMENTS
---------------------------------------------------------------------------------
2003 Forecast:Parent
PROFIT CHANGE FROM CURRENT YEAR
(Billions yen)
Item '03Forecast '02Actual Difference Reference
Sales 1,030.0 999.9 30.1
Increase in alcoholic 9.7 Decrease in beer bisiness marginal profit:
beverages business profit (7.8)
Increase in happo-shu bisiness marginal
profit: 6.9
Increase in hyouketsu business marginal
profit:6.8
Change of selling scheme for whiskey,spirits
and wines:3.1,etc
Increase in beer and 7.7 Starch:0.9 Barley:0.6 cans:5.6
Happo-syu material cost Decrease in production of new bottles:0.4,etc.
Decrease in selling cost 3.0 Sales promotion and advertising cost : 3.0
Decrease in beer and 1.4 Decrease in production of new kegs:1.1,etc.
Happo-syu ingredient cost
Decrease in depreciation 1.1
Decrease in labor cost 0.6
Other (0.5) Operating expenses for Spirits and Wines.Dpt:
(0.6),etc.
Effect from price reductions (10.0)
to happo-shu product
Increase in 57.0 44.0 13.0
Operating Income
Financial profit, net 4.2
Increase in Income Before 71.0 53.8 17.2
Special Items and Income Taxes
Increase in special (0.5) Loss on disposal of fixed assets:(1.6)
income, net Loss on sale of fixed assets:(1.5)
Loss on sale of securities:(0.2)
Loss on devaluation of real estate in trust:
3.3,etc.
Income taxes, etc (7.0)
Increase in Net Income 36.0 26.3 9.7
Parent
Sales and Major Expenditures
(Billions yen)
2003 Forecast 2002 Actual 2001 Actual
Sales volume of alcoholic beverages thousand Increase thousand Increase thousand Increase
business KL (Decrease) KL (Decrease) KL (Decrease)
Total of low alcoholic beverages 2,740 2.5% 2,672 2.1% 2,617 (4.9%)
Beer 1,367 (4.9%) 1,436 (14.0%) 1,670 (12.3%)
Happo-shu 1,155 6.5% 1,084 21.6% 891 6.4%
Subtotal 2,522 0.0% 2,521 (1.6%) 2,562 (6.6%)
Hyoketsu-can 200 49.5% 133 261.9% 36 -
Other(Two Dogs,etc.) 18 5.6% 17 (2.7%) 17 101.4%
Sales volume by major brands million million million
cases cases cases
LAGER 53.70 (7.9%) 58.30 (17.7%) 70.80 (15.4%)
ICHIBAN SHIBORI 48.60 (3.2%) 50.20 (8.1%) 54.70 (4.2%)
TANREI 79.40 7.9% 73.60 10.1% 66.90 1.4%
Breakdown of sales 1,030.0 3.0% 999.9 (2.8%) 1,028.4 (3.6%)
Total of Alcoholic beverages 968.0 2.7% 942.5 (3.1%) 972.4 (4.2%)
Total of low alcoholic beverages 935.6 2.1% 916.4 (3.1%) 945.8 (6.4%)
Beer 550.0 (4.9%) 578.2 (13.9%) 671.6 (12.5%)
Happo-shu 326.0 10.2% 295.7 15.0% 257.0 6.5%
Subtotal 876.0 0.2% 873.9 (5.9%) 928.7 (7.9%)
Hyoketsu-can 52.6 48.0% 35.5 264.3% 9.7 -
Other(Two Dogs,etc.) 7.0 2.9% 6.8 (6.1%) 7.3 254.0%
Whiskey, Spirits and wines etc. 32.3 23.5% 26.1 (1.7%) 26.6 485.3%
Pharmaceuticals 55.0 16.5% 47.2 0.5% 47.0 4.6%
Other 7.0 (30.8%) 10.1 12.5% 8.9 (30.6%)
Sales Promotion 94.6 65.8 76.4
Advertising 31.8 38.8
Beer and Happo-shu 72.8 81.2 104.7
Hyoketsu-can 9.1 6.9 3.1
R&D 23.2 21.5 22.1
Labor Cost 79.1 79.7 78.5
Depreciation 36.3 37.4 37.6
Financial profit, net 10.4 8.4 8.0
Number of Employees 5,900 6,346 6,540
(Including seconded staff from group
companies)
Capital Expenditures 33.0 25.7 44.2
(Major Items)
Expansion of facilities - - 13.1
at Tochigi plant
Renewal of - 6.9 7.4
Okayama plant
Renewal of - 2.0 4.2
Toride plant
Redevelopment subsequent to 8.5 - -
closing of Hiroshima plant
Parent
Major Changes in Assets and Liabilities
(Billions yen)
2002 2001 Increase Reference
Actual Actual (Decrease)
Cash 54.8 89.7 (34.9) Disbursements for investments
Investments in subsidiaries 257.6 164.5 93.1 Investments in SAN MIGUEL
and affiliates CORPORATION,etc.
Short-term loans payable 43.5 12.5 31.0 Financing for investments in SAN
and Long-term debt MIGUEL CORPORATION,etc.
Bonds 110.0 70.0 40.0 6th issue of debenture bonds:
40billion
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR EAKASALNDEEE