October 5, 2011

Loss on devaluation of investment securities in the third quarter of the fiscal year ending December 31, 2011

In relation to other marketable securities held by Kirin Holdings Company, Limited where the market value has dropped significantly and there is little prospect of recovering the investment in the future, Kirin Holdings Company, Limited has decided to record a loss on devaluation of investment securities via impairment for the third quarter of the fiscal year ending December 31, 2011.
Impairment losses of investment securities for the quarter is based on reassessing losses on valuation of securities at the end of each fiscal quarter based on previous year-end book values. As such, the amount of special expenses is dependent on the market value as at the end of the December 2011 period, and it is even possible that no special expenses will be recorded.

1. Loss on devaluation of investment securities in the nine months ended September 30, 2011 (consolidated)

Total loss on devaluation of investment securities in the third quarter accounting period ended September 30, 2011 (July 1, 2011 through September 30, 2011) (= A - B)		18,807 million yen
	A: Total cumulative loss on devaluation of investment securities in the nine months ended September 30, 2011 (January 1, 2011 through September 30, 2011)	22,322 million yen
	B: Total cumulative loss on devaluation of investment securities in the six months ended June 30, 2011 (January 1, 2011 through June 30, 2011)	3,515 million yen

* Quarterly evaluation of securities is by reassessing losses on valuation of securities at the end of each fiscal quarter based on previous year-end book values.
* Account settlement is at December 31.

2. Future outlook

The above loss on devaluation of investment securities will be recorded as special expenses in the third quarter of the period ending December 31, 2011. Earnings forecasts for the entire fiscal year are currently under revision and will be released as soon as the information becomes available.