July 25, 2011
We offer our heartfelt sympathies to all those affected by the Great East Japan Earthquake, which struck the Tohoku region of Japan on March 11, 2011, and pray for the earliest possible reconstruction of the affected areas.
Regarding the impact of the disaster on the Kirin Group, our first statement on March 14, 2011 and the Summary of Consolidated Financial Results for the Three Months Ended March 31, 2011 that was released on May 6 disclosed a summary and amount of special expenses that were recognized at that point in time. Please find below a statement regarding the situation of the Group subsequently.
1. State of production facilities and other structures
(1) Kirin Brewery Company, Limited
Major damage included damage to facilities, buildings, and product stocks at our Sendai Plant and Toride Plant. Repair work is proceeding favorably at the Toride Plant, and operations were resumed in early April. Operations have been suspended at the Sendai Plant, which suffered the most significant damage. Cleaning work and facility inspections have been carried out, and the power supply for the plant resumed in July. We are currently carrying out trial runs of facilities with the goal of resuming operation of the beer brewing in late September and completing our first shipment in early November.
(2) Other domestic group companies
No major damage was sustained by our domestic group companies including Mercian Corporation; Kirin Beverage Company, Limited; and Kyowa Hakko Kirin Co., Ltd. Currently, all business activities are being conducted as usual.
2. Impact on business performance
We recorded ¥5.1 billion as special expenses related to the Great East Japan Earthquake during the first quarter. We plan to report the total cumulative amount recorded for the second quarter at the announcement of the Summary of Consolidated Financial Results for the Six Months Ended June 30, 2011 scheduled for August 5.