RNS Number:5647O
Kirin Brewery Co Ld
12 August 2003
PART 2
KIRIN BREWERY COMPANY, LIMITED August 8, 2003
SUMMARY OF NON-CONSOLIDATED INTERIM FINANCIAL STATEMENTS
AS OF JUNE 30, 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
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. Hideo Mori, General Manager,
Communications Dept.
Telephone: 81- 3- 5540- 3450 from overseas
Date of the Board of Directors' Meeting for the semi-annual operation results: August 8, 2003
Date of commencement of payment of interim dividend: September 12, 2003
1. Business results and financial positions for the current fiscal year
(January 1, 2003 - June 30, 2003) (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 extraordinary change
(%) (millions yen ) (%) items (%)
(millions yen )
6 months ended June 30, 2003 432,398 (5.9) 18,332 41.9 30,811 59.8
6 months ended June 30, 2002 459,422 (7.0) 12,917 (21.7) 19,285 (20.7)
Year ended December 31, 2002 999,920 44,024 53,831
Net income Percentage Net income
(millions yen ) change per share
(%) (yen)
6 months ended June 30, 2003 18,445 69.9 19.08
6 months ended June 30, 2002 10,857 (24.2) 11.04
Year ended December 31, 2002 26,380 26.96
Notes: (1) Average number of shares of common stock outstanding during the period:
June 30, 2003 966,611,027 shares
June 30, 2002 983,440,362 shares
December 31, 2002 978,318,065 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 6
months ended June 30,2003 to those for the 6 months ended June 30, 2002.
(2) Dividends:
Interim dividend Dividend per share
per share for the year
(yen) (yen)
6 months ended June 30, 2003 6.00 -
6 months ended June 30, 2002 6.00 -
Year ended December 31, 2002 - 12.00
(3) Financial positions:
Total assets Shareholders' Ratio of shareholders' Shareholders'
(millions yen ) equity equity to total assets equity per share
(millions yen ) (%) (yen)
June 30, 2003 1,243,477 694,983 55.9 719.04
June 30, 2002 1,297,890 692,995 53.4 707.76
December 31, 2002 1,280,112 679,770 53.1 703.18
Notes: (1) Number of shares of common stock issued and outstanding:
June 30, 2003 966,543,367 shares
June 30, 2002 979,140,556 shares
December 31, 2002 966,713,386 shares
(2) Number of treasury stock held:
June 30, 2003 17,965,020 shares
June 30, 2002 5,367,831 shares
December 31, 2002 17,795,001 shares
2. Forecast of business results for the current fiscal year (January 1, 2003-December 31, 2003)
Sales Income before Net income Dividend Including year-end
(millions yen ) extraordinary (millions yen ) per share dividend per share
items for the year (yen)
(millions yen ) (yen)
Year ending December 31, 2003 970,000 64,000 33,000 6.00 12.00
Note: Forecasted net income per share 34.14 yen
Forecasted operating income 48,000 million yen
Refer to Page 9 for the assumptions and other matters related to the above forecast.
SUMMARY OF NON-CONSOLIDATED INTERIM FINANCIAL STATEMENTS
AS OF JUNE 30, 2003 (UNAUDITED)
-------------------------------------------------------------------------------------
BALANCE SHEETS (millions yen)
ASSETS At At Increase At
June 30, 2003 June 30, 2002 (Decrease) December 31, 2002
(None) Amount Percentage Percentage Amount Percentage
over total Amount over total Amount over total
assets assets assets
Current Assets % % %
Cash 40,798 42,693 (1,895) 54,838
Notes receivable 810 2,855 (2,045) 2,088
Accounts receivable 148,521 171,894 (23,373) 178,193
Marketable securities - 5,571 (5,571) 1,001
Inventories 44,639 43,962 677 36,851
Other 28,024 31,944 (3,920) 35,268
Allowance for doubtful accounts (3,015) (2,764) (251) (4,327)
Total current assets 259,777 20.9 296,156 22.8 (36,379) 303,914 23.7
Fixed Assets
Property, Plant and Equipment (*1)
Buildings (*2) 117,162 124,212 (7,050) 120,449
Machinery and equipment 122,238 133,921 (11,683) 130,748
Land (*2) 113,125 113,194 (69) 113,263
Construction in progress 13,727 11,697 2,030 8,130
Other 28,288 30,006 (1,718) 28,759
Total 394,541 31.7 413,032 31.8 (18,491) 401,351 31.4
Intangible Assets 6,174 0.5 6,329 0.5 (155) 6,047 0.5
Investments and Other Assets
Investment securities (*2) 195,540 214,719 (19,179) 190,820
Investments in subsidiaries and 270,607 256,975 13,632 257,612
affiliates
Life insurance investments 35,084 33,742 1,342 34,985
Other 86,162 79,700 6,462 88,743
Allowance for doubtful accounts (4,411) (2,766) (1,645) (3,362)
Total 582,983 46.9 582,371 44.9 612 568,799 44.4
Total fixed assets 983,699 79.1 1,001,733 77.2 (18,034) 976,198 76.3
TOTAL ASSETS 1,243,477 100.0 1,297,890 100.0 (54,413) 1,280,112 100.0
(millions yen)
LIABILITIES At At Increase At
AND SHAREHOLDERS' EQUITY June 30, 2003 June 30, 2002 (Decrease) December 31, 2002
Amount Percentage Percentage Amount Percentage
(Note) over total Amount over total Amount over total
assets assets assets
Current Liabilities % % %
Notes payable 2,717 1,603 1,114 592
Accounts payable 33,884 38,016 (4,132) 33,987
Short-term loans payable 11,000 10,000 1,000 17,500
Liquor taxes payable 75,068 119,760 (44,692) 111,206
Income taxes payable 14,341 10,178 4,163 8,467
Accrued expenses 30,342 40,355 (10,013) 37,566
Deposits received 52,834 56,773 (3,939) 59,386
Other 27,812 33,396 (5,584) 34,181
Total current liabilities 248,001 19.9 310,084 23.9 (62,083) 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 77,516 82,190 (4,674) 81,385
Other reserves 969 1,246 (277) 1,414
Deposits received (*2) 65,517 70,980 (5,463) 68,301
Other 20,488 9,393 11,095 10,350
Total long-term liabilities 300,491 24.2 294,810 22.7 5,681 297,453 23.2
TOTAL LIABILITIES 548,493 44.1 604,895 46.6 (56,402) 600,341 46.9
Common stock - - 102,045 7.9 (102,045) 102,045 8.0
Additional paid-in capital - - 70,868 5.5 (70,868) 70,868 5.5
Legal reserve - - 25,511 2.0 (25,511) 25,511 2.0
Retained earnings
Voluntary earned surplus - 427,666 (427,666) 427,666
Unappropriated retained earnings - 51,607 (51,607) 61,255
Total retained earnings - - 479,274 36.9 (479,274) 488,922 38.2
Net unrealized holding gains on securities - - 19,920 1.5 (19,920) 6,050 0.5
Treasury stock - - (4,625) (0.4) 4,625 (13,628) (1.1)
TOTAL SHAREHOLDERS' EQUITY - - 692,995 53.4 (692,995) 679,770 53.1
Common stock 102,045 8.2 - - 102,045 - -
Capital reserve
Additional paid-in capital 70,868 - 70,868 -
Total Capital reserve 70,868 5.7 - - 70,868 - -
Retained earnings
Legal reserve 25,511 - 25,511 -
Voluntary earned surplus 441,942 - 441,942 -
Unappropriated retained earnings 59,476 - 59,476 -
Total retained earnings 526,929 42.4 - - 526,929 - -
Net unrealized holding gains on securities 8,913 0.7 - - 8,913 - -
Treasury stock (13,773) (1.1) - - (13,773) - -
TOTAL SHAREHOLDERS' EQUITY 694,983 55.9 - - 694,983 - -
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 1,243,477 100.0 1,297,890 100.0 (54,413) 1,280,112 100.0
STATEMENTS OF INCOME
6 months ended 6 months ended Increase Year ended
June 30, 2003 June 30, 2002 (Decrease) December 31, 2002
Amount Percentage Amount Percentage Amount Amount Percentage
over sales over sales over sales
% % %
Sales 432,398 100.0 459,422 100.0 (27,024) 999,920 100.0
Cost of Sales 302,467 70.0 322,243 70.1 (19,776) 703,954 70.4
Gross profit 129,931 30.0 137,178 29.9 (7,247) 295,965 29.6
Selling, General and Administrative 111,599 25.8 124,261 27.1 (12,662) 251,941 25.2
Expenses
Operating Income 18,332 4.2 12,917 2.8 5,415 44,024 4.4
Non-operating Income
Interest income 269 408 (139) 726
Return on funds in trust - 210 (210) 210
Dividend income 10,961 7,212 3,749 9,318
Other 4,355 2,348 2,007 4,971
Total 15,586 3.6 10,180 2.2 5,406 15,226 1.5
Non-operating Expenses
Interest expense 1,034 910 124 1,961
Other 2,072 2,901 (829) 3,458
Total 3,106 0.7 3,812 0.8 (706) 5,419 0.5
Income before Extraordinary 30,811 7.1 19,285 4.2 11,526 53,831 5.4
Items and Income Taxes
Extraordinary Income
Gain on sale of investment securities - 237 (237) 243
Other 1,759 2,045 (286) 2,080
Total 1,759 0.4 2,283 0.5 (524) 2,324 0.2
Extraordinary Expenses 926 0.2 2,211 0.5 (1,285) 11,268 1.1
Income before Income Taxes 31,645 7.3 19,357 4.2 12,288 44,887 4.5
Income Taxes 13,200 3.1 8,500 1.9 4,700 18,507 1.9
Net Income 18,445 4.3 10,857 2.4 7,588 26,380 2.6
Retained earnings brought forward from 41,030 40,750 280 40,750
the prior fiscal year
Dividends (interim) - - - 5,874
Unappropriated retained earnings 59,476 51,607 7,869 61,255
SIGNIFICANT ACCOUNTING POLICIES
1. Valuation of securities
Equity securities issued by subsidiaries and affiliated companies are stated 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 losses on these securities are reported, net of applicable income taxes, as a separate component of
shareholders' equity. Realized gains and losses on sale of such securities are computed using the moving-average method.
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 Inventories
Merchandise, finished goods and semi-finished goods are stated at cost determined by the average method.
Raw materials and supplies are 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 in Japan.
5. Amortization of intangible assets
Amortization of intangible assets is calculated on the straight-line method over estimated useful lives, in accordance
with the Corporate Income Tax Law in Japan.
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 the balance sheet date based on the
estimated amounts of projected benefit obligation and the fair value of the plan assets at the end of the current fiscal
year.
Actuarial differences are amortized by the straight-line method over the average estimated service period, which is 15
years, beginning from the following fiscal year.
8. 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.
9. Hedge accounting
If derivative financial instruments are used as hedges and meet certain hedging criteria, the Company defers recognition
of gains or losses resulting from the changes in fair value of derivative financial instruments until the related losses
or gains on the hedged items are recognized.
However, in cases where forward foreign exchange contracts are used as hedges and meet certain hedging criteria, foreign
currency receivables or payables are recorded at the contracted rates.
Also, if interest rate swap contracts are used as hedges and meet certain hedging criteria, the net amount to be paid or
received under the interest rate swap contracts is added to or deducted from the interest on the assets or liabilities
for which the swap contract was executed.
The Company uses derivative financial instruments only for the purpose of mitigating future risks of fluctuation of
foreign currency exchange rates with respect to foreign currency receivable and payable and interest rate fluctuation
with respect to loans receivable and payable.
The following summarizes hedging derivative financial instruments used by the Company and items hedged:
Hedging instruments Hedged items
Forward foreign exchange contracts Foreign currency receivables and payables, future transactions in foreign
etc. currencies
Interest rate swap contracts etc. Loans receivable and loans payable
The Company evaluates the effectiveness of hedging activities 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.
10. Consumption tax
Consumption tax is excluded from the revenue and expense accounts which are subject to such tax.
Consumption tax prepaid and accrued in relation to purchase and sales transactions are netted and presented as other
current liabilities.
CHANGE IN PRESENTATION:
(Statements of Income)
Gain on sales of investment securities of 9 million yen for the 6 months ended June 30, 2003, which was separately
presented in extraordinary income for the 6 months ended June 30, 2002 was included in "other" of extraordinary income
due to immateriality of its amount.
ADDITIONAL INFORMATION:
(Accounting for treasury stock and reversal of statutory reserve)
Effective from current interim accounting period, the Company totally adopted the new accounting standard for treasury
stock and reversal of statutory reserves (Accounting Standards Board Statement No.1,"Accounting Standard for Treasury
Stock and Reduction of Statutory Reserves", issued by the Accounting Standard Board of Japan on February 21, 2002). The
adoption of the new accounting standard had no impact on the accompanying statements of income for the 6 months ended
June 30, 2003.
As a result of adopting this new accounting standard and application of the related revised disclosure requirements,
shareholders' equity accounts in the accompanying balance sheets as of June 30, 2003 are presented differently from
prior fiscal year.
NOTES TO:
(NON-CONSOLIDATED BALANCE SHEETS)
*1 Accumulated depreciation (millions yen)
At At At
June 30, 2003 June 30, 2002 December 31, 2002
Accumulated depreciation 539,743 515,714 527,983
*2 Detail of Collateral
(1) Collateral (millions yen)
At At At
June 30, 2003 June 30, 2002 December 31, 2002
Buildings 954 1,032 1,032
Land 439 439 439
Investment securities 11 32 14
(2) Secured borrowing (millions yen)
At At At
June 30, 2003 June 30, 2002 December 31, 2002
Deposits received 2,296 2,296 2,296
Postage charge (facility limit) 11 29 13
3 Contingent liabilities
(1) Guarantees for subsidiaries and affiliated companies (millions yen,Foreign currency: thousands)
At At At
June 30, 2003 June 30, 2002 December 31, 2002
Kirin Lease Co.,Ltd. 6,636 10,096 12,004
Kirin International Trading Co., Ltd. 2,050 2,050 2,050
Marinenet Co., Ltd. 1,420 3,504 3,290
Other 4,810 7,336 5,609
(Number 14 17 15)
(Foreign currencies included above 3,212 4,128 3,232
USD 11,895 USD 19,378 USD 16,239
EUR 5,788 EUR 4,488 EUR 5,488
NTD 286,730 NTD 332,350 NTD 175,700
HKD 6,300
(2)Guarantees for employees' housing loan from banks (millions yen)
At At At
June 30, 2003 June 30, 2002 December 31, 2002
11,602 12,828 11,599
(3) Guarantees for bank loans of customers (millions yen)
At At At
June 30, 2003 June 30, 2002 December 31, 2002
132 404 144
(Number 2 3 2)
Total contingent liabilities 26,381 36,220 34,697
(Including agreements similar to guarantees) (3,434) (8,946) (9,420)
(NON-CONSOLIDATED STATEMENTS OF INCOME)
1. Depreciation (millions yen)
6 months ended 6 months ended Year ended
June 30, 2003 June 30, 2002 December 31, 2002
Property, Plant and Equipment 16,723 17,804 36,893
Intangible Assets 301 279 557
Total 17,024 18,083 37,451
2. Presentation of Income Taxes
The Company adopted simplified accounting method for income tax effect accounting in the interim financial statements.
Accordingly, deferred income taxes are not presented separately and are included in Income Taxes in current interim
statements of income.
(LEASE TRANSACTIONS)
Finance lease transactions without ownership transfer to lessee
(1) Purchase price equivalent, accumulated depreciation equivalent and book value equivalent of ( millions yen )
leased property
At At At
June 30, 2003 June 30, 2002 December 31, 2002
Machinery and equipment
Purchase price equivalent 155 180 179
Accumulated depreciation equivalent 67 66 69
Book value equivalent 88 113 109
Property, plant and equipment, other (Structures)
Purchase price equivalent - 7 7
Accumulated depreciation equivalent - 5 6
Book value equivalent - 2 0
Property, plant and equipment, other (Vehicles)
Purchase price equivalent 14 12 14
Accumulated depreciation equivalent 8 5 7
Book value equivalent 5 7 6
Property, plant and equipment, other (Tools)
Purchase price equivalent 6,809 8,124 7,054
Accumulated depreciation equivalent 3,636 3,966 3,504
Book value equivalent 3,173 4,157 3,549
Total
Purchase price equivalent 6,979 8,324 7,254
Accumulated depreciation equivalent 3,712 4,043 3,588
Book value equivalent 3,267 4,280 3,666
(2) Lease commitments ( millions yen )
At At At
June 30, 2003 June 30, 2002 December 31, 2002
Due within one year 1,417 1,589 1,462
Due over one year 1,958 2,775 2,304
Total 3,376 4,365 3,767
(3) Lease expenses, depreciation equivalent and interest expense equivalent ( millions yen )
6 months ended 6 months ended Year ended
June 30, 2003 June 30, 2002 December 31, 2002
Lease expenses 870 1,073 2,032
Depreciation equivalent 808 1,016 1,908
Interest expense equivalent 74 97 182
(4) Calculation method of depreciation equivalent
Depreciation equivalent is computed on the straight-line method over the lease terms without residual value.
(5) Allocation of interest expense equivalent
Differences between total lease expenses and acquisition costs of the leased property comprise interest expense
equivalent and insurance, maintenance and certain other operating costs.
Interest expense equivalent is allocated using the interest method over the lease terms.
Operating lease transactions ( millions yen )
Lease commitments
At At At
June 30, 2003 June 30, 2002 December 31, 2002
Due within one year 152 153 151
Due over one year 407 509 473
Total 560 663 625
(Securities)
Investment in subsidiaries and affiliates with available fair value.
At June 30, 2003
( millions yen )
Book value Fair value Difference
Investment in subsidiaries 101,754 163,566 61,811
Investment in affiliates 86,075 85,587 (487)
Total 187,830 249,153 61,323
At June 30, 2002
( millions yen )
Book value Fair value Difference
Investment in subsidiaries 101,754 144,399 42,644
Investment in affiliates 85,649 80,395 (5,254)
Total 187,404 224,794 37,389
At December 31, 2002
( millions yen )
Book value Fair value Difference
Investment in subsidiaries 101,754 154,094 52,339
Investment in affiliates 85,701 87,559 1,857
Total 187,456 241,654 54,197
FINANCIAL RESULTS for
THE HALF YEAR ended JUNE 30, 2003
SUPPLEMENTARY COMMENTS
---------------------------------------------------------------------------------
Parent
Results of Operations
(Billions yen)
2003 2002
The 1st half Forecast The 1st half Actual
Actual Actual
Sales 432.3 970.0 459.4 999.9
Operating Income 18.3 48.0 12.9 44.0
Income before Extraordinary Items and Income 30.8 64.0 19.2 53.8
Taxes
Net Income 18.4 33.0 10.8 26.3
Sales Details
(Billions yen)
2003 2002
The 1st half Actual Forecast The 1st half Actual Actual
Sales volume of alcholic
beverages business
thousand Increase thousand Increase thousand Increase thousand Increase
KL (Decrease) KL (Decrease) KL (Decrease) KL (Decrease)
Low Alcoholic beverages 1,177 (3.7%) 2,590 (3.2%) 1,223 (3.1%) 2,674 2.1%
Beer 559 (14.4%) 1,241 (13.6%) 653 (18.5%) 1,436 (14.0%)
Happo-shu 528 3.4% 1,121 3.3% 510 13.0% 1,084 21.6%
Subtotal 1,087 (6.6%) 2,362 (6.3%) 1,164 (7.1%) 2,521 (1.6%)
Chu-hi (Hyo-ketsu) 78 56.9% 200 49.5% 50 - 133 261.9%
Beer taste sperkling 4 3207.0% 11 524.3% 0 373.3% 1 2152.1%
beverages(*)
Other (Two-Dogs, etc) 7 (16.9%) 17 (2.9%) 8 2.9% 17 (2.7%)
Sales volume by major brands million Increase million Increase million Increase million Increase
cases (Decrease) cases (Decrease) cases (Decrease) cases (Decrease)
LAGER 23.11 (16.3%) 49.50 (15.1%) 27.61 (21.0%) 58.30 (17.7%)
ICHIBAN SHIBORI 19.24 (12.1%) 43.80 (12.7%) 21.89 (13.6%) 50.20 (8.1%)
TANREI 36.99 8.8% 77.90 5.8% 34.00 (1.5%) 73.60 10.1%
Breakdown of sales 432.3 (5.9%) 970.0 (3.0%) 459.4 (7.0%) 999.9 (2.8%)
Alcoholic Beverages 407.0 (6.2%) 910.0 (3.5%) 434.0 (7.3%) 943.2 (3.0%)
Low Alcoholic Beverages 394.1 (6.6%) 880.6 (3.9%) 421.9 (7.2%) 917.1 (3.0%)
Beer 224.2 (14.1%) 498.0 (13.9%) 261.2 (18.6%) 578.2 (13.9%)
Happo-shu 145.0 0.7% 320.0 8.2% 144.0 10.7% 295.7 15.0%
Subtotal 369.2 (8.9%) 818.0 (6.4%) 405.2 (10.2%) 873.9 (5.9%)
Chu-hi (Hyo-ketsu) 20.5 56.6% 53.5 50.5% 13.1 - 35.5 264.3%
Beer taste sperkling 1.4 2824.0% 3.0 345.1% 0.0 339.6% 0.6 2060.5%
beverages(*)
Other (Two-Dogs, etc) 2.7 (21.6%) 6.1 (11.0%) 3.5 (0.7%) 6.8 (6.1%)
Whiskey, Spirits and Wines etc. 12.9 6.8% 29.4 12.6% 12.0 (12.9%) 26.1 (1.7%)
Pharmaceuticals 22.9 7.5% 54.0 14.3% 21.3 (1.8%) 47.2 0.5%
Other 2.3 (40.0%) 6.0 (36.4%) 3.9 8.3% 9.4 6.7%
(*) Beer taste sperkling beverages include Buckler and Malt squash.
SUPPLEMENTARY COMMENTS
---------------------------------------------------------------------------------
2003 1st.Half Actual:Parent
PROFIT CHANGE FROM PRIOR YEAR
(billions yen)
Item 2003 2002 Increase Reference
The 1st half The 1st half (Decrease)
Actual Actual
Sales 432.3 459.4 (27.1)
Decrease in selling cost 11.2 Sales promotion and advertising : 10.1
Freight : 1.1
Decrease in material cost 3.9 Malt : (0.6), Barley : 0.2, Starch : 0.2,
of alcoholic beverages Cans and cartons : 2.6, Glass bottles : 0.9,
etc.
Decrease in fixed cost 1.3 Decrease in production of new kegs : 1.5,
at breweries Outsourcing of engineering division : (0.2),
etc.
Decrease in depreciation 1.0
Increase in labor cost (1.0)
Decrease in alcoholic (4.3) Decrease in beer business marginal profit :
beverages business profit (10.4)
Increase in happo-shu business marginal profit
: 1.8
Increase in Hyoketu business marginal profit :
2.3,
Decrease in Whiskey, Spirits and Wines
business marginal profit : (0.1),
Increase in resulting from product mix change
: 2.0, etc.
Effect from price reduction of (9.6)
happo-shu product
Other 2.9 Corporate communication cost : 1.0, R&D cost :
0.6,
Allowance for bad debt : 0.6, Pharmaceutical
business marginal profit : 0.6,
Operating expenses of Whiskey, Spirits and
Wines business : (0.6),
Increase in cost of selling consignment :
(0.7), etc.
Increase in Operating Income 18.3 12.9 5.4
Increase in non-operating 6.2 Increase in financial profit : 3.2, Gain on
income, net transactions related to gift coupon : 1.9,
Cost for issue of bonds : 0.2, etc.
Increase in Income before 30.8 19.2 11.6
Extraordinary
Items and Income Taxes
Increase in extraordinary 0.7 Increase in reversal of allowance for oubtful
income, net accounts : 1.3,
Decrease in loss of disposal of fixed assets :
1.2,
Decrease in gain on sales of fixed assets :
(1.6), etc.
Income taxes, etc (4.7)
Increase in Net Income 18.4 10.8 7.6
2003 Forecast:Parent
PROFIT CHANGE FROM PRIOR YEAR
(billions yen)
Item 2003 Forecast 2002 Actual Increase Reference
(Decrease)
Sales 970.0 999.9 (29.9)
Decrease in selling cost 9.9 Sales promotion and advertising : 8.7
Freight : 1.2
Decrease in material cost 9.0 Malt : (1.3), Barley : 0.6, Starch :
of alcoholic beverages 0.9,
Cans and cartons : 5.9, Glass bottles :
2.2, etc.
Decrease in depreciation 2.5
Decrease in fixed cost 1.6 Decrease in production of new kegs :
at breweries 1.2,
Outsourcing of engineering division :
(0.7),
Decrease in logistics cost at breweries
: 0.6, etc.
Increase in labor cost (1.3)
Decrease in alcoholic (9.4) Decrease in beer business marginal
beverages business profit profit : (22.5),
Increase in happo-shu business marginal
profit : 3.7,
Increase in Hyoketu business marginal
profit : 5.7,
Increase in Whiskey, Spirits and Wines
business marginal profit : 0.8,
Increase resulting from product mix
change : 2.9, etc.
Effect from price reduction of (9.6)
happo-shu product
Other 1.3 Increase in pharmaceutical business
marginal profit : 3.7
Decrease in corporate comunication cost
: 0.5,
Increase in R&D cost (0.7),
Operating expenses of Whiskey, Spirits
and Wines business : (0.6),
Increase in cost of selling consignment
: (1.4), etc.
Increase in Operating Income 48.0 44.0 4.0
Increase in non-operating 6.2 Increase in financial profit : 3.0,
income, net Gain on transactions related to gift
coupon : 1.9, Cost for issue of bonds :
0.2, etc.
Increase in Income before 64.0 53.8 10.2
Extraordinary
Items and Income Taxes
DIncrease in extraordinary (1.7) Loss on sales of fixed assets : (1.4)
income, net Loss on disposal of fixed assets :
(2.2)
Loss on devaluation of real estate in
trust : 3.3
Loss on revaluation of investment
securities : (1.1), etc
Income taxes, etc (1.8)
Increase in Net Income 33.0 26.3 6.7
Parent
Major Expenditures etc.
(billions yen)
2003 2002
The 1st half Forecast The 1st half Actual
Actual Actual
Sales promotion 23.8 88.9 31.6 65.8
Advertising 16.9 19.2 31.8
R&D 8.8 22.2 9.4 21.5
Labor Cost 40.6 81.0 39.6 79.7
Depreciation 17.0 34.9 18.0 37.4
Financial profit, net 10.1 11.4 6.9 8.4
Number of Employees 5,954 5,700 6,503 6,346
(Including secondees from group companies)
Capital Expenditures 9.5 28.9 13.0 25.7
(Major Items)
Renewal of Okayama plant 0.7 0.7 3.9 6.9
Renewal of Toride plant - - 1.3 2.0
Construction of facilities for Hyoketsu at - - 0.3 0.3
Okayama plant
Redevelopment subsequent to closing of 0.8 5.5 - -
Hiroshima plant
Construction of facilities at Takasaki 0.0 1.4 - -
pharmaceutical plant
Major Changes in Assets and Liabilities
(billions yen)
Item 2003 2002 Increase Reference
The 1st half The 1st half (Decrease)
Actual Actual
Accounts receivable 148.5 171.8 (23.3) Influence of the fact that the prior
balance sheet date was a bank holiday
and decrease in sales compared to the
prior fiscal year
Investment securities 195.5 214.7 (19.2) Decrement on revaluation of securities
as a result of drop of market value
Investments in subsidiaries 270.6 256.9 13.7 Due to Payment for investment in common
and affiliates stock of KIRIN DISTILLERY CO., Ltd.
Liquor taxes payable 75.0 119.7 (44.7) Influence of the fact that the prior
balance sheet date was a bank holiday
and decrease in sales compared to the
prior fiscal year
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UUSAROSRWARR