RNS Number:8982K
Kirin Brewery Co Ld
09 May 2003
KIRIN BREWERY COMPANY, LIMITED May 8, 2003
SUMMARY OF CONSOLIDATED FINANCIAL RESULTS FOR THE FIRST QUARTER
ENDED MARCH 31, 2003 (UNAUDITED)
(English Translation)
Fiscal year ending December 31, 2003
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 and Sapporo
For further information, please contact: Mr. Hideo Mori, General Manager,
Communications Dept.
Telephone: 81- 3- 5540- 3450 from overseas
1. Items pertaining to preparation of quarterly consolidated statements of income, etc.
Whether US GAAP is applied: None
Change in accounting policies: Yes (Please see "SEGMENT INFORMATION")
Changes in scope of consolidation and application of equity method:
Consolidation : Increase 8 companies ,Decrease 1 company
Equity method: Decrease 2 companies
2. Business results and financial positions for the first quarter of 2003 (January 1, 2003 - March 31, 2003)
(Unit: Japanese yen)
(1) Results of operations: (Fractions less than 1yen million have been omitted.)
Sales Percentage Operating Percentage Income before Percentage
(yen millions) change income change extraordinary items change
(%) (yen millions) (%) (yen millions) (%)
First quarter ended March 31,2003 315,239 3.8 9,973 179.4 8,520 345.0
First quarter ended March 31,2002 303,714 (1.8) 3,570 (38.3) 1,914 (61.9)
Year ended December 31, 2002 1,583,248 89,789 84,443
Net income Percentage Net income Net income
(yen millions) change per share per share
(%) primary diluted
(yen) (yen)
First quarter ended March 31,2003 807 - 0.84 -
First quarter ended March 31,2002 (238) - (0.24) -
Year ended December 31, 2002 32,540 33.26 -
Notes Percentage change means the ratio of increase or decrease in each item of business results for the first quarter
: ended March 31, 2003, to those for the first quarter ended March 31, 2002.
(2) Financial positions:
Total assets Shareholders' Ratio of shareholders' Shareholders'
(yen millions) equity equity to total assets equity per share
(yen millions) (%) (yen)
March 31, 2003 1,657,438 756,457 45.6 782.74
March 31, 2002 1,699,142 777,078 45.7 789.46
December 31, 2002 1,744,131 769,227 44.1 795.71
(3) Cash flows :
Cash flows Cash flows Cash flows Cash and
from operating from investing from financing cash equivalents
activities activities activities at end of period
(yen million) (yen million) (yen million) (yen million)
First quarter ended March 31,2003 (14,759) (12,566) 15,749 93,660
First quarter ended March 31,2002 (27,081) (126,045) 103,775 94,519
Year ended December 31, 2002 87,750 (175,377) 50,699 105,625
3. Forecast of business results for the current fiscal year (January 1, 2003-December 31, 2003)
Sales Income before Net income Net income
(yen million) extraordinary items (yen million) Per share
(yen million) (yen)
6 months ending June 30, 2003 770,000 36,000 11,000 11.38
Year ending December 31, 2003 1,670,000 98,000 39,000 40.35
Notes : Forecasted operating income
6 months ending June 30, 2003 36,000 yen
million
Year ending December 31, 2003 100,000 yen
million
Consolidated Results for the First Quarter of 2003
---------------------------------------------------------------------------------
During the first quarter of 2003 (January 1, 2003 - March 31, 2003), sales in the alcohol category were strong, and
favorable results were posted for the soft drinks and other businesses. As a result, consolidated net sales were 315.2
yen billion, an increase of 3.8% compared with the same period of the previous year.
Consolidated operating income increased 179.4% to 9.9 yen billion, and consolidated ordinary income increased 345.0% to
8.5 yen billion. Consolidated net income was 0.8 yen billion.
Alcohol Beverage Business
In the alcohol beverage business, amid development of a comprehensive alcohol business drawn from greater group
coordination, Kirin made strategic investments in growing categories and bolstered its sales and marketing.
In the happo-shu (low-malt beer) category, Kirin continued to strengthen its key Kirin Tanrei brand, as well as the
Tanrei Green Label and Gokunama brands, both launched in 2002. Other value-added happo-shu brands were also launched in
response to diversified customer needs, including Tanrei Alpha, which employs a newly-developed technology to remove 90%
(Kirin's comparison) of purine bodies, and the dark happo-shu Namakuro, which follows the same "easy-drinking and
inexpensive" concept behind Gokunama.
In the beer category, the Company developed new products around its key Kirin Lager and Kirin Ichiban Shibori brands
that offer added value and an individuality distinct from happo-shu. Kirin Lager's position as the Company's flagship
brand was bolstered by the launch of Kirin Classic Lager in cans in the Chugoku and Shikoku areas, and the launch of
Kirin Lager Blue Label, with 50% (Kirin's comparison) less sugar. For Ichiban Shibori, Kirin continued with its "food"
series of commercials that emphasize the beer's good taste, in order to secure its position as the representative draft
beer brand. Kirin also continued to focus on the value-added product Kirin Tarunama System , made available through the
Company's chilled distribution system to ensure quality, and allowing consumers to enjoy authentic draft beer at home.
In the growing chu-hi category, Kirin Chu-hi Hyoketsu continued to sell well. A new lime flavor was added to the lineup
in March, and freshness of Hyoketsu brand was improved though wide-scale sampling and other measures.
In the spirits and wine category, Kirin added to its lineup of everyday wines by beginning to import and sell wine
produced by a subsidiary of Kirin Group company Lion Nathan Limited. Kirin also expanded its business foundation in
February when it acquired the Japan sales rights of Frazia, the world's top-selling wine brand*.
*Greatest sales volume for a single brand (Source: IMPACT DATABANK 2002 EDITION)
In sales and marketing, Kirin Communication Stage Co., Ltd., which mainly handles in-store marketing for volume
retailers, widened its operational area to the Kinki region. This subsidiary has been operating in the Tokyo area since
it was established in September 2002. Kirin also continued with effective investment of marketing funds and strategic
allocation of resources in growing markets.
In the international beer business, Kirin Pure and Light, a new beer developed in cooperation with Lion Nathan's Chinese
subsidiary, Lion Nathan Beer & Beverages (Suzhou) Co., Ltd., and produced at its Suzhou Brewery, was launched in
Shanghai in January.
As a result of the above, net sales of the alcohol beverage business totaled 203.1 yen billion, an increase of 0.2%
compared with the same period of the previous year.
Soft Drink Business
In the soft drink business, Kirin undertook aggressive marketing to enhance and grow its key brands, Kirin Namacha,
Kirin Amino Supli, Kirin Fire, and Kirin Gogono-kocha, and began selling Volvic, the top import mineral water brand.
The Kirin Namacha brand was invigorated with the addition of Kuchidoke Namacha to the lineup. The Company also took
steps to reinforce the position of Kirin Amino Supli in the increasingly competitive market for amino acid drinks by
expanding its popular series of commercials and bolstering the product lineup.
Kirin MC Danone Waters Co., Ltd., established in November 2002, began full-scale marketing of Volvic in February,
showing an encouraging start.
In international businesses, the operations base was strengthened with the launch of Kirin Amino Supli and Kirin Kikicha
by Shanghai Jin Jiang Kirin Beverage & Food Co., Ltd. in early March, and the bolstering of the sales and production
structure.
As a result of the above, net sales of the soft drink business totaled 70.0 yen billion, an increase of 2.4% compared
with the same period of the previous year.
Pharmaceutical Business
In the pharmaceutical business, Kirin continued to conduct information sharing activities with Sankyo Co., Ltd. for
ESPO, a genetically engineered hormone that regulates red blood cell production, and for GRAN, an agent that stimulates
white blood cell production, as well as focused on exclusive marketing efforts in Japan for Rocaltrol Injection, a
treatment for secondary hyperparathyroidism. Approval for ESPO pre-filled syringes was received in October 2002, and the
product will be launched on April 7. Approval was received in January for the hyperphosphatemia agent PHOSBLOCK Tablets,
developed in cooperation with Chugai Pharmaceutical Co., Ltd., and listed on the National Health Insurance Drug Price
Standard on April 1.
As a result of the above, and factors such as the effect of price reductions for pharmaceuticals, net sales in the
pharmaceutical business totaled 8.8 yen billion, a decrease of 8.8% compared with the same period of the previous year.
Other Businesses
In agribio, Kirin began marketing the petunia hybrid Blue Wave, which was awarded prizes during 2003 in two major
international floriculture competitions. Kirin also developed an effective testing system that uses DNA markers to
identify chrysanthemum varieties resistant to White Rust (Albugo candida).
In nutrient food & feed, Takeda-Kirin Foods Corporation began marketing the beer yeast extract Komi, jointly developed
by the two companies, strengthening its seasoning product lineup.
As a result of the above, net sales of other businesses totaled 33.2 yen billion, an increase of 44.9% compared with the
same period of the previous year.
Reorganization of the Management Structure
As part of the reorganization of its management structure, Kirin reduced the number of members on its Board of
Directors, and implemented an executive officer system effective March 28, 2003. The aims of this reorganization are
quicker and more strategic management, a clearer distinction between the decision-making and operational functions, and
quicker implementation. Management transparency was also enhanced through the establishment of an Appointment Advisory
Committee and a Compensation Advisory Committee.
CONSOLIDATED BALANCE SHEETS (yen millions)
ASSETS At At Increase At
March 31,2003 March 31,2002 (Decrease) December 31, 2002
Amount Percentage Amount Percentage Amount Amount Percentage
over total over total over total
assets assets assets
Current Assets % % %
Cash 96,246 96,822 (576) 108,148
Notes and accounts receivable 203,115 212,805 (9,690) 269,106
Marketable securities 1,850 8,649 (6,799) 2,017
Inventories 96,146 75,263 20,883 83,949
Funds in trust - 13,711 (13,711) -
Other 54,946 60,611 (5,665) 65,820
Allowance for doubtful accounts (5,427) (1,973) (3,454) (5,456)
Total current assets 446,877 27.0 465,891 27.4 (19,014) 523,585 30.0
Fixed Assets
Property, Plant and Equipment
Buildings and structures 184,288 187,126 (2,838) 189,050
Machinery, equipment and 185,384 184,716 668 190,687
vehicles
Land 168,769 157,011 11,758 166,393
Construction in progress 18,913 23,133 (4,220) 13,290
Other 50,090 54,194 (4,104) 49,961
Total 607,446 36.6 606,181 35.7 1,265 609,382 35.0
Intangible Fixed Assets
Consolidation differences 44,755 44,986 (231) 45,513
Other 104,339 84,112 20,227 106,608
Total 149,094 9.0 129,098 7.6 19,996 152,122 8.7
Investments and Other Assets
Investment securities 320,005 364,751 (44,746) 330,905
Life insurance investments 35,659 34,427 1,232 35,093
Other 102,018 101,783 235 96,955
Allowance for doubtful accounts (3,663) (2,992) (671) (3,913)
Total 454,019 27.4 497,970 29.3 (43,951) 459,041 26.3
Total fixed assets 1,210,560 73.0 1,233,250 72.6 (22,690) 1,220,546 70.0
TOTAL ASSETS 1,657,438 100.0 1,699,142 100.0 (41,704) 1,744,131 100.0
(yen millions)
LIABILITIES, At At Increase At
MINORITY INTERESTS March 31,2003 March 31,2002 (Decrease) December 31, 2002
AND SHAREHOLDERS' EQUITY Amount Percentage Amount Percentage Amount Amount Percentage
over total over total over total
assets assets assets
Current Liabilities % % %
Notes and accounts payable 89,095 92,717 (3,622) 98,649
Short-term loans payable 65,573 52,778 12,795 47,824
Liquor taxes payable 58,483 81,374 (22,891) 113,660
Income taxes payable 7,518 3,463 4,055 15,599
Accrued expenses 57,791 63,349 (5,558) 59,573
Deposits received 55,416 57,425 (2,009) 61,227
Other 47,968 44,971 2,997 64,619
Total current liabilities 381,848 23.0 396,080 23.3 (14,232) 461,154 26.4
Long-term Liabilities
Bonds 130,197 129,984 213 129,948
Long-term debt 110,184 122,136 (11,952) 105,148
Pension and retirement benefits 93,419 98,321 (4,902) 95,414
Other reserves 9,058 8,740 318 9,808
Deposits received 76,491 80,663 (4,172) 78,567
Other 25,887 19,420 6,467 20,432
Total long-term liabilities 445,240 26.9 459,266 27.1 (14,026) 439,318 25.2
TOTAL LIABILITIES 827,088 49.9 855,346 50.4 (28,258) 900,473 51.6
MINORITY INTERESTS 73,892 4.5 66,716 3.9 7,176 74,431 4.3
Common Stock - - 102,045 6.0 (102,045) 102,045 5.8
Additional Paid-In Capital - - 70,868 4.2 (70,868) 70,868 4.1
Revaluation variance for Land - - (1,625) (0.1) 1,625 (1,627) (0.1)
Retained Earnings - - 601,118 35.4 (601,118) 630,744 36.2
Net unrealized holding gains on securities - - 18,006 1.1 (18,006) 6,132 0.4
Foreign currency translation adjustments - - (13,157) (0.8) 13,157 (25,308) (1.5)
Total - - 777,255 45.7 (777,255) 782,855 44.9
Treasury Stock - - (176) (0.0) 176 (13,628) (0.8)
TOTAL SHAREHOLDERS' EQUITY - - 777,078 45.7 (777,078) 769,227 44.1
Common stock 102,045 6.1 - - 102,045 - -
Capital reserve 70,868 4.3 - - 70,868 - -
Retained earnings 623,602 37.6 - - 623,602 - -
Revaluation variance for Land (1,627) (0.1) - - (1,627) - -
Net unrealized holding gains on securities 277 0.0 - - 277 - -
Foreign currency translation adjustments (24,818) (1.5) - - (24,818) - -
Treasury stock (13,890) (0.8) - - (13,890) - -
TOTAL SHAREHOLDERS' EQUITY 756,457 45.6 - - 756,457 - -
TOTAL LIABILTIES, MINORITY INTERESTS AND 1,657,438 100.0 1,699,142 100.0 (41,704) 1,744,131 100.0
SHAREHOLDERS' EQUITY
CONSOLIDATED STATEMENTS OF INCOME (yen millions)
First quarter ended First quarter ended Increase Year ended
March 31,2003 March 31,2002 (Decrease) December 31, 2002
Amount Percentage Amount Percentage Amount Amount Percentage
over sales over sales over sales
% % %
Sales 315,239 100.0 303,714 100.0 11,525 1,583,248 100.0
Cost of Sales 196,028 62.2 192,799 63.5 3,229 1,000,199 63.2
Gross Profit 119,211 37.8 110,915 36.5 8,296 583,048 36.8
Selling, General and 109,237 34.7 107,345 35.3 1,892 493,259 31.2
administrative Expenses
Operating Income 9,973 3.2 3,570 1.2 6,403 89,789 5.7
Non-operating Income
Interest income 147 248 (101) 1,147
Dividend income 496 50 446 2,614
Equity in earnings of affiliates 868 - 868 2,102
Other 1,223 1,045 178 4,353
Total 2,736 0.9 1,343 0.4 1,393 10,217 0.6
Non-operating Expenses
Interest expense 2,347 1,674 673 8,955
Equity in losses of affiliates - 213 (213) -
Other 1,841 1,111 730 6,607
Total 4,189 1.3 2,999 1.0 1,190 15,562 1.0
Income before Extraordinary 8,520 2.7 1,914 0.6 6,606 84,443 5.3
Items and Income Taxes
Extraordinary Income
Gain on sales of fixed assets 438 1,358 (920) 3,401
Reversal of allowance for doubtful accounts - 144 (144) -
Gain on sales of investment securities 12 - 12 420
Reversal of allowance for furnace overhaul - - - 700
Total 451 0.1 1,503 0.5 (1,052) 4,521 0.3
Extraordinary Expenses
Loss on disposal of fixed assets 597 649 (52) 6,715
Loss on sales of fixed assets 33 69 (36) 379
Loss on revaluation of investment securities - - - 2,236
Loss on sales of investment securities 10 - 10 7
Loss on devaluation of real estate in trust - - - 3,352
Premium on retirement benefits - - - 1,755
Total 640 0.2 719 0.2 (79) 14,447 0.9
Income before Income Taxes 8,330 2.6 2,699 0.9 5,631 74,517 4.7
and Minority Interests
Income Taxes 5,926 1.9 1,395 0.5 4,531 36,214 2.2
Minority Interests 1,595 0.5 1,542 0.5 53 5,762 0.4
Net Income 807 0.3 (238) (0.1) 1,045 32,540 2.1
CONSOLIDATED STATEMENTS OF CASH FLOWS (yen millions)
First First Increase Year ended
quarter quarter (Decrease) December
ended March ended March 31,
31,2003 31,2002 2002
Cash flows from operating activities
Income before income taxes and minority interests 8,330 2,699 5,631 74,517
Depreciation 17,478 15,749 1,729 75,206
Increase (decrease) in reserves (3,038) (2,315) (723) 635
Interest and dividend income and return on funds in trust (644) (298) (346) (3,972)
Interest expense 2,347 1,674 673 8,955
Decrease (increase) in notes and accounts receivable, trade 65,965 45,470 20,495 (6,164)
Decrease (increase) in inventories (11,825) (8,382) (3,443) (11,131)
Increase (decrease) in notes and accounts payable, trade (10,115) (13,801) 3,686 (11,265)
Increase (decrease) in liquor taxes payable (55,188) (37,501) (17,687) (6,107)
Other (12,529) (12,245) (284) 10,092
Sub-total 781 (8,949) 9,730 130,766
Interest, dividend and return on funds in trust received 1,197 528 669 6,227
Interest paid (2,376) (1,768) (608) (8,785)
Income taxes paid (14,361) (16,892) 2,531 (40,457)
Net cash provided by (used in) operating activities (14,759) (27,081) 12,322 87,750
Cash flows from investing activities
Payments for purchases of property, plant, equipment and intangible (12,146) (12,479) 333 (85,492)
fixed assets
Proceeds from sales of property, plant and equipment 1,452 1,621 (169) 5,278
Payments for purchases of marketable securities and (3,249) (104,980) 101,731 (103,832)
investment securities
Proceeds from sales and redemption of marketable securities and 3,344 3,697 (353) 11,075
investment securities
Proceeds from termination of funds in trust - 3,700 (3,700) 17,411
Payments for acquisition of shares of newly consolidated subsidiaries (313) - (313) (12,674)
Other (1,654) (17,604) 15,950 (7,144)
Net cash used in investing activities (12,566) (126,045) 113,479 (175,377)
Cash flows from financing activities
Increase (decrease) in loans 22,774 68,718 (45,944) 37,981
Proceeds from issue of bonds - 40,000 (40,000) 40,000
Payments for purchases of treasury stock (65) (90) 25 (13,542)
Cash dividends paid (3,935) (4,025) 90 (11,777)
Cash dividends paid to minority shareholders (2,834) (832) (2,002) (2,203)
Other (190) 4 (194) 239
Net cash provided by financing activities 15,749 103,775 (88,026) 50,699
Effect of exchange rate fluctuation on cash and cash equivalents 114 190 (76) (1,282)
Net increase (decrease) in cash and cash equivalents (11,462) (49,161) 37,699 (38,209)
Cash and cash equivalents at beginning of period 105,625 144,331 (38,706) 144,331
Cash and cash equivalents of newly consolidated subsidiaries at beginning (503) (650) 147 (495)
of period
Cash and cash equivalents at end of period 93,660 94,519 (859) (105,625)
(SEGMENT INFORMATION)
Business Segment Information
(yen millions)
First quarter ended March 31,2003
Alcoholic Soft drinks Pharma- Other Total Elimination/ Consolidated
beverages ceuticals Unallocation
Sales
1 Unaffiliated customers 203,153 70,008 8,818 33,260 315,239 - 315,239
2 Intersegment 550 2,229 - 18,337 21,117 (21,117) -
Total sales 203,703 72,238 8,818 51,598 336,357 (21,117) 315,239
Operating expenses 197,753 70,629 7,631 50,256 326,271 (21,005) 305,266
Operating income 5,949 1,608 1,186 1,341 10,086 (112) 9,973
Notes : 1. Types and nature of products are considered in classification of business segments.
2. Main products of sales by segment are as follows;
Sales by segment Main products
Alcoholic Beer, Sparkling malt liquor (Happoshu), Whiskey, Spirits, Wine etc.
beverages
Soft drinks Soft drinks, Other drinks
Pharmaceuticals Pharmaceutical products
Other Engineering, Logistics, Floriculture etc.
(Changes in reclassification of business segments and method of allocation of operating expenses)
The three previous business segments (Alcoholic Beverages, Soft Drinks and Other), were reclassified into four
segments (Alcoholic Beverages, Soft Drinks, Pharmaceuticals and Other) in the first quarter of 2003. In consideration of
the recent increase in importance of the Pharmaceuticals business, the Company reviewed its segments and made the change
in order to more clearly report segment information.
Following an additional review carried out on this occasion, the method of allocation used for companywide operating
expenses was changed from the previous standard of proportional allocation by number of employees to the standard of
proportional allocation by sales.
The change was made to more accurately reflect in segment information the actual conditions under which such expenses
are incurred under current group management.
Because of the change, in comparison with the previous method of allocation, operating expenses of the Alcoholic
Beverages segment increased by 1,047 yen million, operating expenses of the Soft Drinks segment decreased by 1 yen
million, operating expenses of the Pharmaceuticals segment decreased by 1,019 yen million, and operating expenses of the
Other segment decreased by 27 yen million in the first quarter of 2003.
Business segment information for the first quarter of 2002, restated to conform with the reclassification of business
segments and the method of allocation of operating expenses adopted in the first quarter of 2003, is as follows.
(yen millions)
First quarter ended March 31,2002
Alcoholic Soft drinks Pharma- Other Total Elimination/ Consolidated
beverages ceuticals Unallocation
Sales
1 Unaffiliated customers 202,726 68,359 9,670 22,957 303,714 - 303,714
2 Intersegment 698 536 - 17,033 18,268 (18,268) -
Total sales 203,425 68,896 9,670 39,990 321,983 (18,268) 303,714
Operating expenses 204,836 66,298 7,446 39,551 318,132 (17,987) 300,144
Operating income (1,411) 2,598 2,224 439 3,851 (280) 3,570
(PRODUCTION, ORDERS RECEIVED AND SALES)
(1) PRODUCTION PERFORMANCE
Production performance for the first quarter of the current fiscal year classified by the type of business segment is as
follows:
Business Segment First quarter ended March 31,2003 Percentage change (%)
Alcoholic beverages 192,906 (yen Millions) 0.7
Soft drinks 22,301 (yen Millions) (3.0)
Pharmaceuticals 11,249 (yen Millions) (8.5)
Other 13,895 (yen Millions) 37.1
Total 240,353 (yen Millions) 1.5
Notes : The amounts are calculated based on sales price without consumption taxes.
(2) ORDERS RECEIVED
Orders received for the first quarter of the current fiscal year classified by the type of business segment is as
follows:
The Company and its subsidiaries manufacture their products based on their projection for market demand except for
contract manufacture in "alcoholic beverages" and "soft drinks" segments and inspection machines and others in "other"
segment.
Business Segment Orders received during Percentage change (%) Backlog Percentage change (%)
period
Alcoholic beverages 180 (yen Millions) - - -
Soft drinks 503 (yen Millions) 123.9 - -
Pharmaceuticals - (yen Millions) - - -
Other 2,089 (yen Millions) 36.3 1,530 (yen Millions) (30.7)
Total 2,773 (yen Millions) 57.8 1,530 (yen Millions) (30.7)
Notes : The amounts are calculated based on sales price without consumption taxes.
(3) SALES PERFORMANCE
Sales performance for the first quarter of the current fiscal year classified by the type of business segment is as
follows:
Business Segment First quarter ended March 31,2003 Percentage change (%)
Alcoholic beverages 203,153 (yen Millions) 0.2
Soft drinks 70,008 (yen Millions) 2.4
Pharmaceuticals 8,818 (yen Millions) (8.8)
Other 33,260 (yen Millions) 44.9
Total 315,239 (yen Millions) 3.8
Notes : The amounts do not include the related consumption tax, etc.
For purposes of comparison, figures for the first quarter of 2002 have been restated to conform with the
reclassification of business segments in the first quarter of 2003.
KIRIN BREWERY COMPANY, LIMITED May 8, 2003
SUMMARY OF NON-CONSOLIDATED FINANCIAL RESULTS FOR THE FIRST QUARTER
ENDED MARCH 31, 2003 (UNAUDITED)
(English Translation)
Fiscal year ending December 31, 2003
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 and Sapporo
For further information, please contact: Mr. Hideo Mori, General Manager,
Communications Dept.
Telephone: 81- 3- 5540- 3450 from overseas
1. Items pertaining to preparation of quarterly non-consolidated statements of income, etc
Whether US GAAP is applied: None
Change in accounting policies: None
2. Business results and financial positions for the first quarter of 2003 (January 1, 2003 - March 31, 2003)
(Unit: Japanese yen)
(1) Results of operations: (Fractions less than 1 yen million have been omitted.)
Sales Percentage Operating Percentage Income before Percentage
(yen millions) change income change extraordinary items change
(%) (yen millions) (%) (yen millions) (%)
First quarter ended March 31,2003 176,361 (4.0) 264 - 6,035 -
First quarter ended March 31,2002 183,736 (5,015) (2,696)
Year ended December 31, 2002 999,920 44,024 53,831
Net income Percentage Net income Net income
(yen millions) change per share per share
(%) primary diluted
(yen) (yen)
First quarter ended March 31,2003 3,431 - 3.55 -
First quarter ended March 31,2002 (1,057) (1.07) -
Year ended December 31, 2002 26,380 26.96 -
Notes Percentage change means the ratio of increase or decrease in each item of business results for the first quarter
: ended March 31,2003, to those for the first quarter ended March 31, 2002.
(2) Financial positions:
Total assets Shareholders' Ratio of shareholders' Shareholders'
(yen millions) equity equity to total assets equity per share
(yen millions) (%) (yen)
March 31, 2003 1,206,947 671,353 55.6 694.53
March 31, 2002 1,246,016 683,470 54.9 694.36
December 31, 2002 1,280,112 679,770 53.1 703.18
3. Forecast of business results for the current fiscal year (January 1, 2003-December 31, 2003)
Sales Income before Net income Interim Year-end Dividend per
(yen millions) extraordinary (yenmillions) dividend per dividend per share for the
items share share year
(yen millions) (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
Notes : Forecasted operating income
6 months ending June 30, 2003 16,000 yen
million
Year ending December 31, 2003 57,000 yen
million
BALANCE SHEETS (yen millions)
ASSETS At At Increase At
March 31,2003 March 31,2002 (Decrease) December 31, 2002
Amount Percentage Percentage Amount Percentage
over total Amount over total Amount over total
assets assets assets
Current Assets % % %
Cash 54,814 52,603 2,211 54,838
Notes receivable 654 3,270 (2,616) 2,088
Accounts receivable 114,885 132,112 (17,227) 178,193
Marketable securities - 7,044 (7,044) 1,001
Inventories 43,554 36,730 6,824 36,851
Funds in trust - 13,711 (13,711) -
Other 29,523 28,193 1,330 35,268
Allowance for doubtful accounts (4,257) (1,034) (3,223) (4,327)
Total current assets 239,175 19.8 272,632 21.9 (33,457) 303,914 23.7
Fixed Assets
Property, Plant and Equipment
Buildings 118,423 125,263 (6,840) 120,449
Machinery and equipment 125,246 134,262 (9,016) 130,748
Land 113,259 113,338 (79) 113,263
Construction in progress 11,467 14,064 (2,597) 8,130
Other 28,320 29,784 (1,464) 28,759
Total 396,717 32.9 416,713 33.4 (19,996) 401,351 31.4
Intangible Fixed Assets 5,908 0.5 6,469 0.5 (561) 6,047 0.5
Investments and Other Assets
Investment securities 180,756 185,915 (5,159) 190,820
Investments in subsidiaries and 259,563 250,191 9,372 257,612
affiliates
Life insurance investments 35,550 34,238 1,312 34,985
Other 92,655 82,571 10,084 88,743
Allowance for doubtful accounts (3,379) (2,716) (663) (3,362)
Total 565,146 46.8 550,200 44.2 14,946 568,799 44.4
Total fixed assets 967,772 80.2 973,383 78.1 (5,611) 976,198 76.3
TOTAL ASSETS 1,206,947 100.0 1,246,016 100.0 (39,069) 1,280,112 100.0
(yen millions)
LIABILITIES At At Increase At
AND SHAREH OLDERS' EQUITY March 31,2003 March 31,2002 (Decrease) December31, 2002
Amount Percentage Amount Percentage Amount Amount Percentage
over total over total over total
assets assets assets
Current Liabilities % % %
Notes payable 1,299 734 565 592
Accounts payable 26,526 27,967 (1,441) 33,987
Short-term loans payable 44,400 32,250 12,150 17,500
Liquor taxes payable 55,835 79,614 (23,779) 111,206
Income taxes payable 3,998 2,395 1,603 8,467
Accrued expenses 27,859 35,737 (7,878) 37,566
Deposits received 53,422 55,737 (2,315) 59,386
Other 23,852 29,870 (6,018) 34,181
Total current liabilities 237,193 19.7 264,307 21.2 (27,114) 302,888 23.7
Long-term Liabilities
Bonds 110,000 110,000 - 110,000
Long-term debt 26,000 21,000 5,000 26,000
Pension and retirement benefits 79,593 84,232 (4,639) 81,385
Other reserves 926 1,162 (236) 1,414
Deposits received 66,147 72,363 (6,216) 68,301
Other 15,733 9,480 6,253 10,350
Total long-term liabilities 298,400 24.7 298,238 23.9 162 297,453 23.2
TOTAL LIABILITIES 535,594 44.4 562,546 45.1 (26,952) 600,341 46.9
Common stock - - 102,045 8.2 (102,045) 102,045 8.0
Additional paid-in capital - - 70,868 5.7 (70,868) 70,868 5.5
Legal reserve - - 25,511 2.1 (25,511) 25,511 2.0
Retained earnings
Voluntary earned surplus - 427,666 (427,666) 427,666
Unappropriated retained earnings - 39,692 (39,692) 61,255
Total retained earnings - - 467,359 37.5 (467,359) 488,922 38.2
Net unrealized holding gains - - 17,862 1.4 (17,862) 6,050 0.5
on securities
Treasury stock - - (176) (0.0) 176 (13,628) (1.1)
TOTAL SHAREHOLDERS' EQUITY - - 683,470 54.9 (683,470) 679,770 53.1
Common stock 102,045 8.4 - - 102,045 - -
Capital reserve
Additional paid-in capital 70,868 - 70,868 -
Total Capital reserve 70,868 5.9 - - 70,868 - -
Retained earnings
Legal reserve 25,511 - 25,511 -
Voluntary earned surplus 441,942 - 441,942 -
Unappropriated retained earnings 44,461 - 44,461 -
Total retained earnings 511,915 42.4 - - 511,915 - -
Net unrealized holding gains 217 0.0 - - 217 - -
on securities
Treasury stock (13,693) (1.1) - - (13,693) - -
TOTAL SHAREHOLDERS' EQUITY 671,353 55.6 - - 671,353 - -
TOTAL LIABILITIES 1,206,947 100.0 1,246,016 100.0 (39,069) 1,280,112 100.0
AND SHAREHOLDERS' EQUITY
STATEMENTS OF INCOME
First quarter First quarter Increase Year ended
ended ended (Decrease) December 31, 2002
March 31,2003 March 31,2002
Amount Percentage Amount Percentage Amount Amount Percentage
over sales over sales over sales
% % %
Sales 176,361 100.0 183,736 100.0 (7,375) 999,920 100.0
Cost of Sales 125,140 71.0 132,010 71.8 (6,870) 703,954 70.4
Gross Profit 51,220 29.0 51,726 28.2 (506) 295,965 29.6
Selling, General and 50,956 28.9 56,741 30.9 (5,785) 251,941 25.2
Administrative Expenses
Operating Income 264 0.1 (5,015) (2.7) 5,279 44,024 4.4
Non-operating Income
Interest income 115 172 (57) 858
Dividend income 5,278 2,150 3,128 9,318
Other 1,384 1,040 344 5,049
Total 6,777 3.8 3,364 1.8 3,413 15,226 1.5
Non-operating Expenses
Interest expense 512 128 384 1,961
Other 493 916 (423) 3,458
Total 1,006 0.6 1,045 0.6 (39) 5,419 0.5
Income before Extraordinary 6,035 3.4 (2,696) (1.5) 8,731 53,831 5.4
Items and Income Taxes
Extraordinary Income
Gain on sales of fixed assets 113 1,350 (1,237) 1,923
Other 199 174 25 400
Total 313 0.2 1,525 0.8 (1,212) 2,324 0.2
Extraordinary Expenses
Loss on disposal of fixed assets 393 541 (148) 5,474
Other 24 64 (40) 5,793
Total 418 0.2 606 0.3 (188) 11,268 1.1
Income before Income Taxes 5,931 3.4 (1,777) (1.0) 7,708 44,887 4.5
Income Taxes 2,500 1.4 (720) (0.4) 3,220 18,507 1.9
Net Income 3,431 1.9 (1,057) (0.6) 4,488 26,380 2.6
Retained earnings brought forward from the prior 41,030 40,750 280 40,750
fiscal year
Dividends (interim) - - - 5,874
Unappropriated retained earnings 44,461 39,692 4,769 61,255
This information is provided by RNS
The company news service from the London Stock Exchange
END
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