RNS Number:5646O
Kirin Brewery Co Ld
12 August 2003

PART 1

KIRIN BREWERY COMPANY, LIMITED                                                                            August 8, 2003
SUMMARY OF CONSOLIDATED INTERIM FINANCIAL STATEMENTS
AS OF JUNE 30, 2003 (UNAUDITED)
(English Translation)
Fiscal year ended 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
                   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
Whether US GAAP is applied: None

1. Business results and financial positions for the first half of 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 items       change
                                              (%)     (millions yen )    (%)          (millions yen )           (%)
6 months ended June 30,            732,812        0.7          37,576       11.2                    39,015          29.0
2003
6 months ended June 30,            727,889      (2.7)          33,799      (6.6)                    30,252        (13.7)
2002
Year ended December 31,          1,583,248                     89,789                               84,443
2002

                                           Net income          Percentage              Net income             Net income
                                                                 change                 per share              per share
                                         (millions yen )                                  primary                diluted
                                                                    (%)                   (yen)                  (yen)
6 months ended June 30,                        13,931                35.0                  14.42                      -
2003
6 months ended June 30,                        10,322              (27.4)                  10.50                      -
2002
Year ended December 31,                        32,540                                      33.26                      -
2002

Notes :      1.   Equity in earnings of affiliates:
                        June 30, 2003                        2,479 million yen
                        June 30, 2002                           87 million yen
                        December 31, 2002                    2,102 million yen
             2.   Average number of shares of common stock outstanding during the period(Consolidated):
                        June 30, 2003                       966,404,828 shares
                        June 30, 2002                       983,440,362 shares
                        December 31, 2002                   978,318,065 shares
             3.   Change in accounting policies: Yes

             4.   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) 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                1,712,634              780,951                               45.6                    808.16
June 30, 2002                1,779,274              775,637                               43.6                    792.16
December 31, 2002            1,744,131              769,227                               44.1                    795.71
Notes :      :Number of shares of common stock issued and outstanding (Consolidated):
                        June 30, 2003              966,337,168 shares
                        June 30, 2002              979,140,556 shares
                        December 31, 2002          966,713,386 shares

(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
                                  (millions yen )    (millions yen )        (millions yen )         (millions yen )
6 months ended June 30, 2003                23,528             (35,737)                (19,271)                   74,136
6 months ended June 30, 2002                26,708            (133,621)                  63,014                   99,692
Year ended December 31, 2002                87,750            (175,377)                  50,699                  105,625

(4)Scope of consolidation and application of equity method :
        Consolidated subsidiaries:                     315 companies
        Subsidiaries under equity method:                    -
        Affiliates applied by the equity method:       14 companies

(5)Changes in scope of consolidation and application of equity method :
          Consolidation:         Increase 11companies,          Decrease 1companies
          Equity method:         Increase -                     Decrease 3 companies

2. Forecast of business results for the current fiscal year (January 1, 2003-December 31, 2003)
                                                 Sales                  Income before                 Net income
                                            (millions yen )          extraordinary items            (millions yen )
                                                                       (millions yen )
Year ending December 31, 2003                        1,610,000                          87,000                    33,000
Note:       Forecasted net income per share 34.15 yen
            Forecasted operating income 90,000 million yen
Refer to Page 9 for the assumptions and other matters related to the above forecast.



                                                  MANAGEMENT POLICIES
       ---------------------------------------------------------------------------------

1. Basic Kirin Group Management Policies
Based on its philosophy of contributing to the health, happiness and comfort of people around the world, the Kirin Group
has established the following five management policies:
  (1)Priority on Customers and Quality
  (2)Open and Fair Behavior
  (3)Respect for People
  (4)Sound Management
  (5)Contribution to Society
Based on the above policies, the Kirin Group aims to be a corporate group that creates value to enrich the lives of
customers.

2. Fundamental Company Policy on Distribution of Profits
At Kirin, providing appropriate returns on income to shareholders is a top management priority, so that the Company has
never failed to provide an annual dividend without fail since its establishment in 1907. In the future as well, while
giving due consideration to matters such as strengthening the quality of management and business development, Kirin
believes that providing stable dividends is the way to meet shareholder demands. Retained earnings will be earmarked for
investment in businesses for future business investment.

3. Position and Policy on Reduction of the Stock Trading Unit
Kirin places importance on increasing its corporate value, expanding its shareholder base and increasing the liquidity
of its stock. The Company will seriously consider reducing the trading unit, taking into account the overall costs and
benefits.

4. Targeted Management Indicators
A key management objective is improving EVA * (a performance indicator) in order to strengthen the profit structure. By
investing in growth fields and strategically allocating resources to maximize efficacy and efficiency, the Kirin Group
aims to achieve its sales targets despite the turbulent market environment and build a solid corporate structure that
continues to generate earnings.
*EVA (Economic Value Added) is a registered trademark of Stern Stewart & Co.

5. Medium- to Long-term Management Strategy
The KG 21 Action Plan, a medium-term business plan covering the years 2001 to 2003, was announced in September 2000.
This plan will serve as the basis for structural reform of the entire Kirin Group, with the aim of creating a solid
management foundation. In addition, the domestic alcohol beverage business, centered on low-alcohol beverages, will be
restructured; Kirin Group companies will work together to be a business group that creates value to enhance the lives of
customers; and steps will be taken to strengthen product and marketing capabilities while increasing quality and
productivity.

6. Issues for the Kirin Group
(1) Structural Reform of the Kirin Group and Stronger Cooperation among Group Companies

Reorganization of Businesses
       To promote group management, increase the corporate value of the Kirin Group and boost profitability, Kirin's
       previous five main business segments and 15 business fields have been restructured into Core Businesses,
       Core-related Businesses and Diversified Businesses.

Reform of Corporate Structure
       Based on the new arrangement of businesses, begun in 2001, the structure of the Kirin Group's structure was
       reorganized into a holding company, with business companies and internal business units renamed "companies."
       Kirin Brewery operates both as a business company managing the domestic alcohol business, and as a holding
       company overseeing each business and strengthening group operations.

Reform of Corporate Management
       In 2001, EVA was adopted throughout the Kirin Group as a new performance indicator to evaluate the results and
       progress of each business company and internal company.

(2) Increasing Corporate Value by Strengthening Profitability, with Core Businesses as the Nucleus

Shifting to a Comprehensive Alcohol Beverage Company Centered on Low-Alcohol Beverages
       Kirin is focusing less on business limited to specific alcohol categories in favor of developing a comprehensive
       alcohol business emphasizing beer, happo-shu, chu-hi drinks and other low-alcohol beverages. This repositioning
       allows Kirin to satisfy the diverse tastes of its customers while providing maximum value.

Structural Reforms to Strengthen Group Competitiveness
       In marketing divisions, Kirin si aiming to strengthen sales capabilities by building a customer-oriented
       marketing structure adaptable to change in the business environment. In production divisions, new product
       development is being accelerated and more advanced technology introduced to support Kirin's shift to a
       comprehensive alcohol beverage company. Simultaneously, we will promote the creation of a highly efficient
       production system. In distribution divisions, structural reforms will be carried out for administrative
       operations.

Develop Diversified Businesses Centered on the Pharmaceutical Business
       In the pharmaceutical business, Kirin will further strengthen its domestic sales system. To enhance the product
       pipeline, we will concentrate resources in research, speed up development, and introduce new drug candidates
       through in-licensing. We will also take steps to strengthen the business platforms of the agribio and nutrient
       food and feed businesses.

(3) Coexistence with Society
       With society placing increasing demands on companies in the future to earn public trust, the Kirin Group will
       meet its social responsibility by conduct business activities in conformity with compliance measures. Kirin will
       also continue to reinforce environmental management and conducting educational activities to promote responsible
       drinking.


7. Policies Concerning the Management Structure
       As part of its management structure reform Kirin revised the makeup of the Board of Directors, introducing an
       executive officer system to clarify the responsibilities of the decision-making and operating functions. Reducing
       the number of Directors and the establishment of an advisory board will enhance the top-level decision-making
       function of the Board of Directors. The establishment of an Appointment Advisory Committee and Compensation
       Advisory Committee will help increase transparency in management, and the establishment of new meeting bodies
       will create a structure to support prompt decision-making by the executive officers.
            The Company's corporate governance structure is as follows:


                                     RESULTS OF OPERATIONS AND FINANCIAL POSITION
       ---------------------------------------------------------------------------------

1. Review of Operations
The Japanese economy showed a slight improvement in terms of corporate earnings, but the period was marked by
increasingly tight employment conditions and slow consumer spending, the country being unable to shake off the mood of
recession.

In the beer and happo-shu market, along with the long-term decline in consumption, the rise in the tax levied on
happo-shu, implemented in May as part of the reform of the tax structure, had a significant effect, as total demand fell
markedly from the same period of the previous year. The market for chu-hi and other low-alcohol beverages, however, rose
sharply from the same period of the previous year. In the wine, spirits and shochu market, sales of whiskey fell well
below the same period of the previous year. Sales of wine, on which taxes were raised, were flat compared to the same
period of the previous year, but sales of shochu continued to grow due to the drink's lower price and a change in
consumer preferences. The soft drinks market also suffered from the effects of a slowdown in consumption, overall demand
ended the period on par with that of the same period of the previous year. In the pharmaceutical industry, there were
lingering effects from lowering of drug prices implemented in April 2002.

Amid this difficult operating environment, Kirin continued to make efforts to increase customer support and achieve the
goals outlined in this final year of the three-year, medium-term business plan begun in 2001 (KG 21 Action Plan).

Consolidated sales for the period under review increased 0.7% from the same period of the previous year to 732.8 billion
yen, owing to an increase in sales in the soft drinks business, which offset a decline in beer sales. In terms of
profitability, although negative effects were felt from the lowering of prices for happo-shu, reform of the profit
structure led to a 11.2% increase in consolidated operating income to 37.5 billion yen, a 29.0% increase in income
before extraordinary items to 39.0 billion yen, and a 35.0% increase in net income to 13.9 billion yen.

The interim dividend was 6 yen per share.

Results by Business Segment

Alcohol Beverage Business
Kirin continued to strengthen cooperation within the Group in order to develop a comprehensive alcohol business, while
making strategic investments in resources and bolstering marketing.

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 limited release of Kirin Classic Lager in cans in the Chugoku and Shikoku areas, and the
launch of Kirin Lager Blue Label, with 50 percent less sugar, in response to a growing health consciousness. For Ichiban
Shibori, Kirin continued with its "food" series of commercials, aim of secure its position as the representative draft
beer brand. Kirin further strove to bring a new kind of fun to beer, by offering the Kirin Tarunama System, made
available through the Company's chilled distribution system to ensure quality, allowing consumers to enjoy authentic
draft beer at home. The sales area was increased for the unfiltered, live-yeast beer Maroyaka Kobo, which had been test
marketed the previous year, and a new product, Maroyaka Kobo Hana-kaori, featuring an even more opulent fragrance, was
launched on a limited basis.

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 last year. Other value-added happo-shu brands were also launched
to provide new value and respond to diversified customer needs, including Tanrei Alpha, which employs a newly-developed
technology to remove 90 percent (Kirin's comparison) of purine bodies, and the dark happo-shu Namakuro, a sister brand
of Gokunama. Kirin also launched on a limited basis a new happo-shu, Kirin Honey Brown, which delivers a new kind of
taste by using honey as one of its ingredients, in an aim to offer a new appeal for happo-shu.

In the beer taste sparkling beverage category, which has attracted much attention from customers since last year, Kirin
launched Malt Squash. This is not simply a substitute for beer, but a new kind of easy-drinking, refreshing and
unsweetened beverage. It is different from the traditional non-alcoholic beer scene, creating a new category of beer
taste sparkling beverage for adults.

In the chu-hi category, Kirin Chu-hi Hyoketsu continued to sell well. A new lime flavor was added to the lineup, and
Chardonnay Sparkling was launched as the first offering from the Premium Fruits series. By appealing with quality and
authenticity, and offering new value in the chu-hi drink category, Kirin is managing to include drinkers of wine and
cocktails in the class of chu-hi drinkers, and seeking to drastically change the image of chu-hi drinks. Brand freshness
was also improved though through aggressive promotions that included wide-scale sampling and other measures.

In the spirits and wine category, Kirin added to its lineup of everyday wines by importing and selling 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 to Franzia, the world's top-selling wine brand*.
*Greatest sales volume for a single brand (Source: Impact Databank 2002 Edition)

In an effort to create a new kind of shochu (Japanese distilled liquor made from grain) market last year, Kirin widened
the sales area for Mugi Shochu Pure Blue, released on a trial basis in select areas, and for Hyoketsu 21o Straight.

Kirin also conducted aggressive promotional campaigns, including "KIRIN Loves Sports Campaign 'Kachi-T' Present," a
nationwide campaign designed to show Kirin as a supporter of sports.

In sales and marketing, Kirin Communication Stage Co., Ltd., which mainly handles in-store marketing for volume
retailers, widened its operational area to include the Kinki region in January, and began operating nationwide in April.
This subsidiary has been operating in the Tokyo area since its establishment last September. Kirin also continued with
effective investment of marketing funds and strategic allocation of resources in growth 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. In May a new Kirin brand of beer produced by Lion Nathan, KIRIN ICHIBAN-First Press Beer, was
launched in Australia and New Zealand.

As a result of the above, net sales of the alcohol beverage business totaled 476.9 billion yen, an decrease of 3.9%
compared with the same period of the previous year.

Soft Drinks Business
Kirin Beverage Corporation, which operates Kirin's soft drinks business, undertook efforts to expand the scope of its
business, strengthening the product portfolio of its key brands and concentrating its sales activities in growth
markets.

By product, the new premium brand Kirin Kuchidoke Namacha was added to the Kirin Namacha lineup, and aggressive measures
including Internet campaigns were employed to increase the freshness of the brand. Improved taste and packaging for
Gogono-kocha ("afternoon tea"), carried out in April, resulted in improved sales. A greater variety of packaging for
Kirin Amino Supli was also introduced, increasing the volume drunk at home. To enhance its position in the growing
market for mineral water, the Company began selling Volvic, the top brand of imported mineral water.

In marketing, Kirin stepped up sales efforts to volume retailer channels, the most important strategic market. In
production, the Company continued to focus on cutting production costs and enhancing product quality management.

In the China business, conducted through local joint ventures, Kirin is strengthening its operating base, following
Kirin Gogono-kocha and Kirin Namacha with the launch of Kirin Amino Supli and Kirin Kikicha, and steadily improving
performance.

As a result of the above, net sales of the soft drink business totaled 164.1 billion yen, an increase of 4.3% compared
with the same period of the previous year.

Pharmaceuticals 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 the manufacture of ESPO pre-filled syringes was received in 
October 2002, and the product was launched in April. Approval was received in January for the hyperphosphatemia agent 
PHOSBLOCK Tablets, developed in cooperation with Chugai Pharmaceutical Co., Ltd., and launched in June.

Net sales in the pharmaceutical business, as a result of extention of Kirin's own marketing, totaled 24.0 billion yen,
an increase of 6.9% compared with the same period of the previous year.

Other Business
In agribio, Kirin began marketing the new color Blue in its Blue Wave series of petunia hybrid, which was awarded prizes
this year 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, Takeda-Kirin Foods Corporation began marketing their jointly developed beer yeast extract Komi,
strengthening its seasoning product lineup. Sales in the health food business were also strong.

Thus, net sales of other businesses totaled 67.6 billion yen, an increase of 31.3% compared with the same period of the
previous year.


2. Financial Position
Cash and cash equivalents ("cash") on a consolidated basis during the 2003 interim period was affected by capital
investment expenditures in the alcohol business and other acquisitions of property, plant and equipment, as well as
expenditures of cash for investing activities such as acquisition of shares in subsidiary companies following a change
in the scope of consolidation, but this was covered by available cash resources. As a result, cash decreased 31.4
billion yen from the previous fiscal year to 74.1 billion yen.
Consolidated cash flows are as follows:

Cash flow from operating activities
Although net income for the interim period before income taxes and minority interests increased by 8.6 billion yen, and
a 41.3 billion yen inflow of working capital due to increases and decreases in accounts receivable and inventories were
factors behind an increase in cash, there was an outflow of 39.7 billion yen in working capital due to changes in beer
taxes payable. As a result of these and other factors, net cash provided by operating activities decreased 3.1 billion
yen from the same period of the previous year to 23.5 billion yen.

Cash flow from investing activities
Payments for purchase of property, plant and equipment included capital investment in the domestic alcohol business,
declining by 10.6 billion yen from the same period of the previous year to 30.1 billion yen. An expenditure of 11.8
billion yen was also made for acquisition of shares in subsidiary companies, following a change in the scope of
consolidation. Proceeds from the sale and redemption of marketable securities and investments in securities, however,
totaled 3.5 billion yen. As a result of these and other factors, net cash used in investing activities declined by 97.8
billion yen from the same period of the previous year to 35.7 billion yen.

Cash flow from financing activities
Expenditures for cash dividends paid increased by 3.5 billion yen from the same period of the previous year to 11.5
billion yen. Expenditures for repayment of bank loans were 7.4 billion yen. As a result, net cash used in financing
activities was 19.2 billion yen, an increase of 82.2 yen billion over the same period of the previous year.

Trends in the Kirin Group's cash flow indicators are as follows:
                                                                        2002            2003               2002
                                                                      Interim          Interim           Year-end
Equity ratio (%)                                                        43.6            45.6               44.1
Market capitalization ratio (%)                                         46.2            47.6               41.8
Debt redemption (years)                                                  -                -                 4.0
Interest coverage ratio                                                  6.7             4.9               10.0

Notes
1. Equity ratio = Shareholders' equity / Total assets
2. Market capitalization ratio = Aggregate market value of shareholders' equity / Total assets
3. Debt redemption = Interest-bearing liabilities / Cash flow from operating activities (Not recorded for the interim
   period)
4. Interest coverage ratio = Cash flow from operating activities / Interest payments
*  Each indicator is calculated from consolidated financial data.
*. Market capitalization is calculated as the share price at the end of the fiscal period multiplied by the number of
   shares issued (excluding treasury stock)

Cash flow from operating activities is taken from the cash flow from operating activities on the consolidated statement
of cash flows. Interest-bearing liabilities reflects all liabilities with interest payable recorded on the liabilities
section of the consolidated balance sheets. The figure for interest payments is taken from the interest payments
recorded in the consolidated statement of cash flows.

3. Outlook
In the final year of the KG 21 Action Plan, Kirin is further strengthening coordination and cooperation among the Group
companies in order to achieve the goals of this plan. Additional efforts to reform the cost structure are being
undertaken to this end, based on the results of similar efforts made mainly in the domestic alcohol business in 2002,
aiming to forge a strong corporate structure where stable earnings can be maintained.

In the domestic alcohol business, strategic investments were made in growth categories such as happo-shu, chu-hi drinks,
shochu and wine, further strengthening the base of the comprehensive alcohol business, and providing customers with new,
attractive levels of value. Kirin will also streamline its distribution network and marketing structure and step up
sales efforts in response to the rise in the tax on happo-shu, liberalization of alcohol sales regulations, and other
changes in the market environment.

Product initiatives include further strengthening of the Lager, Ichiban Shibori and Tanrei brands, and providing
customers with new levels of added value. The Company will also strive to enhance its ability to offer a full line-up of
alcohol products, by further developing the Hyoketsu series and strengthening the spirits, wine and shochu businesses.

Sales measures will focus on achieving sales targets and protecting margins, which will be accomplished through further
strengthening of sales effectiveness and strategic distribution of resources into growth markets.

In production, Kirin has begun its renewal of the Fukuoka plant, aiming to build a more efficient production structure.
In the distribution division, Kirin will continue its efforts to improve the efficiency of distribution throughout the
Group.

In the soft drinks business, Kirin will pursue greater streamlining and efficiency throughout its operations,
strengthening its mainstay brands Kirin Namacha, and Kirin Gogono-kocha ("afternoon tea"), and entering a marketing
alliance for vending machines with Yakult Honsha Co., Ltd.

In the pharmaceutical business, Kirin will strengthen sales of existing products beginning with ESPO and GRAN, a
genetically engineered hormone that regulates red blood cell production and work to further increase the products in its
development pipeline. It will also continue to focus on R&D for human antibody and cell treatments.

In the agribio business, business will be expanded in the key fields of chrysanthemums and carnations, and further
enhancements to the operational base made both in Japan and overseas. In the nutrient food business, Kirin will pursue
development of high-value added products that use beer yeast.

As a result of the above, for the year ending December 31, 2003, Kirin projects consolidated sales of 1,610.0 billion
yen (a year-on-year increase of 1.7%), income before extraordinary items of 87.0 billion yen (a year-on-year increase of
3.0%), and net income of 33.0 billion yen (a year-on-year increase of 1.4%).

Cash dividends for 2003 are expected to total 12 yen per share, consisting of interim and year-end dividends of 6 yen
per share each.

4. Note Concerning Results Projections
The statements concerning future performance that are presented in this document are based on judgments using
information available to Kirin and the Kirin Group at the time of publication. Certain risks and uncertainties could
cause the results of Kirin and the Kirin Group to differ materially from any projections presented herein. These risks
and uncertainties include, but are not limited to, the economic circumstances surrounding the Company's businesses,
market trends, and exchange rates.

CONSOLIDATED BALANCE SHEETS                                                                               (millions yen)
ASSETS                                  (Note)          At                   At           Increase           At
                                                  June 30, 2003        June 30, 2002     (Decrease)  December 31, 2002
                                                Amount   Percentage           Percentage   Amount             Percentage
                                                         over total  Amount   over total             Amount   over total
                                                           assets               assets                          assets
Current Assets                                                    %                    %                               %
   Cash                                   (*2)    76,679              102,395              (25,716)   108,148
   Notes and accounts receivable          (*2)   243,219              266,379              (23,160)   269,106
   Marketable securities                           1,071                6,399               (5,328)     2,017
   Inventories                            (*2)   109,063              101,535                 7,528    83,949
   Other                                          56,670               60,931               (4,261)    65,820
   Allowance for doubtful accounts               (4,074)              (3,793)                 (281)   (5,456)
         Total current assets                    482,630       28.2   533,847       30.0   (51,217)   523,585       30.0
Fixed Assets
   Property, Plant and Equipment          (*1)
      Buildings and structures            (*2)   189,744              190,862               (1,118)   189,050
      Machinery, equipment and vehicles   (*2)   189,157              191,648               (2,491)   190,687
      Land                              (*2,4)   167,867              159,115                 8,752   166,393
      Construction in progress                    21,358               18,493                 2,865    13,290
      Other                               (*2)    50,007               54,126               (4,119)    49,961
                 Total                           618,135       36.1   614,246       34.5      3,889   609,382       35.0
   Intangible Assets
      Consolidation differences                   47,457               46,871                   586    45,513
      Other                               (*2)   109,508              107,325                 2,183   106,608
                 Total                           156,966        9.1   154,196        8.7      2,770   152,122        8.7
   Investments and Other Assets
      Investment securities               (*2)   328,566              354,998              (26,432)   330,905
      Life insurance investments                  35,194               33,946                 1,248    35,093
      Other                               (*2)    95,833               91,129                 4,704    96,955
      Allowance for doubtful accounts            (4,691)              (3,091)               (1,600)   (3,913)
                 Total                           454,902       26.6   476,983       26.8   (22,081)   459,041       26.3
          Total fixed assets                   1,230,004       71.8 1,245,426       70.0   (15,422) 1,220,546       70.0
TOTAL ASSETS                                   1,712,634      100.0 1,779,274      100.0   (66,640) 1,744,131      100.0

                                                                                                          (millions yen)
LIABILITIES, MINORITY INTERESTS AND    (Note)          At                   At           Increase           AT
SHAREHOLDERS' EQUITY                             June 30, 2003        June 30, 2002     (Decrease)  December 31, 2002
                                               Amount   Percentage  Amount   Percentage             Amount   Percentage
                                                        over total           over total   Amount             over total
                                                          assets               assets                          assets
Current Liabilities                                              %                    %                               %
  Notes and accounts payable                    108,568              116,752               (8,184)    98,649
  Short-term loans payable              (*2)     30,375               30,749                 (374)    47,824
  Liquor taxes payable                           78,890              123,797              (44,907)   113,660
  Income taxes payable                           20,206               16,339                 3,867    15,599
  Accrued expenses                               62,301               71,550               (9,249)    59,573
  Deposits received                              55,013               58,516               (3,503)    61,227
  Other                                          43,824               54,764              (10,940)    64,619
      Total current liabilities                 399,180       23.3   472,470       26.6   (73,290)   461,154       26.4
Long-term Liabilities
  Bonds                                         131,632              131,247                   385   129,948
  Long-term debt                        (*2)    118,036              121,742               (3,706)   105,148
  Pension and retirement benefits                94,712               96,518               (1,806)    95,414
  Other reserves                                  8,939                9,585                 (646)     8,607
  Deposits received                    (*2)      75,537               79,166               (3,629)    78,567
  Other                                          29,266               19,451                 9,815    21,633
     Total long-term liabilities                458,125       26.8   457,711       25.7        414   439,318       25.2
TOTAL LIABILITIES                               857,306       50.1   930,182       52.3   (72,876)   900,473       51.6
MINORITY INTERESTS                               74,377        4.3    73,454        4.1        923    74,431        4.3
Common Stock                                          -          -   102,045        5.7  (102,045)   102,045        5.8
Additional Paid-In Capital                            -          -    70,868        4.0   (70,868)    70,868        4.1
Revaluation variance for Land           (*4)          -          -   (1,625)      (0.1)      1,625   (1,627)      (0.1)
Retained Earnings                                     -          -   611,237       34.4  (611,237)   630,744       36.2
Net unrealized holding gains on                       -          -    20,124        1.1   (20,124)     6,132        0.4
securities
Foreign currency translation                          -          -  (22,388)      (1.2)     22,388  (25,308)      (1.5)
adjustments
                Total                                 -          -   780,262       43.9  (780,262)   782,855       44.9
Treasury Stock                                        -          -   (4,625)      (0.3)      4,625  (13,628)      (0.8)
TOTAL SHAREHOLDERS' EQUITY                            -          -   775,637       43.6  (775,637)   769,227       44.1
Common stock                                    102,045        6.0         -          -    102,045         -          -
Capital reserve                                  70,868        4.1         -          -     70,868         -          -
Retained earnings                               638,415       37.3         -          -    638,415         -          -
Revaluation variance for Land           (*4)    (1,666)      (0.1)         -          -    (1,666)         -          -
Net unrealized holding gains on                   9,075        0.5         -          -      9,075         -          -
securities
Foreign currency translation                   (23,815)      (1.4)         -          -   (23,815)         -          -
adjustments
Treasury stock                                 (13,971)      (0.8)         -          -   (13,971)         -          -
TOTAL SHAREHOLDERS' EQUITY                      780,951       45.6         -          -    780,951         -          -
TOTAL LIABILTIES, MINORITY INTERESTS          1,712,634      100.0 1,779,274      100.0   (66,640) 1,744,131      100.0
AND SHAREHOLDERS' EQUITY

CONSOLIDATED STATEMENTS OF INCOME                                                                         (millions yen)
                                         (Note)   6 months ended     6 months ended    Increase  Year ended December 31,
                                                  June 30, 2003      June 30, 2002    (Decrease)          2002
                                                Amount  Percentage Amount  Percentage   Amount     Amount    Percentage
                                                        over sales         over sales                        over sales
                                                                 %                  %                                  %
Sales                                           732,812      100.0 727,889      100.0      4,923  1,583,248        100.0
Cost of Sales                                   453,198       61.8 458,489       63.0    (5,291)  1,000,199         63.2
              Gross Profit                      279,614       38.2 269,399       37.0     10,215    583,048         36.8
Selling, General and Administrative       (*1)  242,037       33.0 235,600       32.4      6,437    493,259         31.2
Expenses
            Operating Income                     37,576        5.1  33,799        4.6      3,777     89,789          5.7
Non-operating Income
  Interest income                                   347                561                 (214)      1,147
  Return on funds in trust                            -                210                 (210)        210
  Dividend income                                 2,087              1,724                   363      2,614
  Equity in earnings of affiliates                2,479                 87                 2,392      2,102
  Gain on transactions related to gift    (*2)    1,974                  -                 1,974        453
coupon
  Other                                           2,239              2,044                   195      3,689
                 Total                            9,127        1.2   4,627        0.6      4,500     10,217          0.6
Non-operating Expenses
  Interest expense                                4,786              4,214                   572      8,955
  Other                                           2,901              3,959               (1,058)      6,607
                 Total                            7,688        1.0   8,173        1.1      (485)     15,562          1.0
 Income before Extraordinary Items and           39,015        5.3  30,252        4.2      8,763     84,443          5.3
              Income Taxes
Extraordinary Income
  Gain on sales of fixed assets           (*3)      705              1,936               (1,231)      3,401
  Gain on sales of investment securities             68                397                 (329)        420
  Reversal of allowance for doubtful              1,560                  -                 1,560          -
accounts
  Reversal of allowance for furnace                   -                  -                     -        700
overhaul
                 Total                            2,334        0.3   2,333        0.3          1      4,521          0.3
Extraordinary Expenses
  Loss on disposal of fixed assets        (*4)    1,180              2,243               (1,063)      6,715
  Loss on sales of fixed assets           (*5)       95                164                  (69)        379
  Loss on revaluation of investment                   -                  -                     -      2,236
securities
  Loss on sales of investment securities             10                  5                     5          7
  Business restructuring costs            (*6)    1,245                  -                 1,245          -
  Loss on devaluation of real estate in               -                  -                     -      3,352
trust
  Premium on retirement benefits                      -                  -                     -      1,755
                 Total                            2,531        0.3   2,414        0.3        117     14,447          0.9
Income before Income Taxes and Minority          38,818        5.3  30,171        4.1      8,647     74,517          4.7
Interests
Income Taxes                                     21,679        3.0  16,791        2.3      4,888     36,214          2.2
Minority Interests                                3,207        0.4   3,056        0.4        151      5,762          0.4
                  Net Income                     13,931        1.9  10,322        1.4      3,609     32,540          2.1

CONSOLIDATED STATEMENTS OF RETAINED EARNINGS                                                              (millions yen)
                                                                           6 months   6 months   Increase   Year ended
                                                                            ended      ended    (Decrease) December 31,
                                                                           June 30,   June 30,                 2002
                                                                             2003       2002
Retained earnings at beginning of period Increase in retained earnings             -    608,603  (608,603)       608,603
  Foreign currency translation adjustments of foreign subsidiaries and             -          -          -         1,167
affiliates
  Increase due to revaluation of property, plant and equipment of foreign          -          -          -         1,338
subsidiaries and affiliates
  Reversal of revaluation variance for land                                        -          -          -             1
                                  Total                                            -          -          -         2,507
Decrease in retained earnings
  Cash dividends paid                                                              -      5,906    (5,906)        11,781
  Bonuses paid to directors and corporate auditors                                 -        205      (205)           205
  (corporate auditors' portion included above                                      -         29       (29)           31)
  Decrease resulting from newly consolidated subsidiaries                          -        409      (409)           409
  Decrease due to exclusion of subsidiaries from the consolidation scope           -        511      (511)           511
  Foreign currency translation adjustments of foreign subsidiaries and             -        656      (656)             -
affiliates
                                  Total                                            -      7,689    (7,689)        12,907
Net income                                                                         -     10,322   (10,322)        32,540
Retained earnings at end of period                                                 -    611,237  (611,237)       630,744

                            (Capital reserve)
Capital reserve at beginning of period
  Additional paid-in capital at beginning of period                           70,868          -     70,868             -
Capital reserve at end of period                                              70,868          -     70,868             -

                           (Retained earnings)
Retained earnings at beginning of period
  Retained earnings at beginning of period                                   630,744          -    630,744             -
Increase in retained earnings
  Net income                                                                  13,931          -     13,931             -
  Increase resulting from newly consolidated subsidiaries                          2          -          2             -
  Foreign currency translation adjustments of foreign subsidiaries and           330          -        330             -
affiliates
                                  Total                                       14,264          -     14,264             -
Decrease in retained earnings
  Cash dividends paid                                                          5,800          -      5,800             -
  Bonuses paid to directors and corporate auditors                               268          -        268             -
  (corporate auditors'portion included above                                      34          -         34            -)
  Decrease due to exclusion of subsidiaries from the consolidation scope          94          -         94             -
  Decrease due to revaluation of property, plant and equipment of foreign        430          -        430             -
subsidiaries
                                  Total                                        6,593          -      6,593             -
Retained earnings at end of period                                           638,415          -    638,415             -


CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                     (millions yen)
                                                                6 months      6 months     Increase  Year ended December
                                                               ended June    ended June   (Decrease)      31, 2002
                                                                30, 2003      30, 2002
Cash flows from operating activities
    Income before income taxes and minority interests                38,818        30,171      8,647              74,517
    Depreciation                                                     36,770        35,837        933              75,206
    Amortization of consolidation differences                         1,592         1,525         67               3,034
    Increase (decrease) in pension and retirement benefits          (2,548)       (3,391)        843             (4,227)
    Interest and dividend income and return on funds in trust       (2,434)       (2,495)         61             (3,972)
    Interest expense                                                  4,786         4,214        572               8,955
    Gain on sales of fixed assets                                     (705)       (1,936)      1,231             (3,401)
    Gain on sales of marketable securities and investment              (68)         (397)        329               (420)
securities
    Loss on disposal or sales of fixed assets                         1,275         2,408    (1,133)               7,094
    Decrease (increase) in notes and accounts receivable             27,904       (2,448)     30,352             (6,164)
    Decrease (increase) in inventories                             (17,148)      (28,142)     10,994            (11,131)
    Increase (decrease) in notes and accounts payable                 6,067         5,376        691            (11,265)
    Increase (decrease) in liquor taxes payable                    (35,862)         3,898   (39,760)             (6,107)
    Other                                                          (15,396)         2,442   (17,838)               8,647
                            Sub-total                                43,052        47,062    (4,010)             130,766
    Interest, dividend and return on funds in trust received          3,924         3,629        295               6,227
    Interest paid                                                   (4,827)       (3,957)      (870)             (8,785)
    Income taxes paid                                              (18,620)      (20,026)      1,406            (40,457)
Net cash provided by operating activities                            23,528        26,708    (3,180)              87,750
Cash flows from investing activities
    Payments for purchases of property, plant, equipment and       (30,163)      (40,849)     10,686            (85,492)
intangible assets
    Proceeds from sales of property, plant and equipment              2,424         3,907    (1,483)               5,278
    Payments for purchases of marketable securities and             (2,815)     (102,050)     99,235           (103,832)
Investment securities
    Proceeds from sales and redemption of marketable                  3,557         6,279    (2,722)              11,075
securities and investment securities
    Proceeds from termination of funds in trust                           -        17,411   (17,411)              17,411
    Proceeds from termination of life insurance investment                -           588      (588)                   -
    Payments for acquisition of shares of newly consolidated       (11,803)       (9,845)    (1,958)            (12,674)
subsidiaries
    Other                                                             3,062       (9,063)     12,125             (7,144)
Net cash used in investing activities                              (35,737)     (133,621)     97,884           (175,377)
Cash flows from financing activities
    Increase (decrease) in short-term loans payable                 (5,256)       (3,075)    (2,181)               4,331
    Proceeds from long-term debt                                     11,848        49,411   (37,563)              67,977
    Repayments of long-term debt                                   (14,020)      (10,826)    (3,194)            (34,327)
    Proceeds from issue of bonds                                          -        40,000   (40,000)              40,000
    Payments for purchase of treasury stock                           (145)       (4,539)      4,394            (13,542)
    Cash dividends paid                                             (5,795)       (5,906)        111            (11,777)
    Cash dividends paid to minority shareholders                    (5,756)       (2,048)    (3,708)             (2,203)
    Other                                                             (146)             0      (146)                 239
Net cash provided by (used in) financing activities                (19,271)        63,014   (82,285)              50,699
Effect of exchange rate fluctuation on cash and cash                    494         (244)        738             (1,282)
equivalents
Net increase (decrease) in cash and cash equivalents               (30,985)      (44,143)     13,158            (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          (503)         (495)        (8)               (495)
at beginning of period
Cash and cash equivalents at end of period                           74,136        99,692   (25,556)             105,625

                                   SIGNIFICANT ACCOUNTING POLICIES FOR CONSOLIDATION
------------------------------------------------------------------------------------------------------------------------

The following is the table of scope of consolidation and application of equity method.
Classification                                                                                Number of companies
Consolidated subsidiaries (Note 1)                                                                                   315
Unconsolidated subsidiaries applied by the equity method (Note 2)                                                      -
Affiliated companies applied by the equity method (Note 3)                                                            14

(Consolidation)
 Note 1:
  (1) The names of main consolidated subsidiaries are KIRIN BEVERAGE CORPORATION and LION NATHAN LTD.

  (2) The changes of the scope of consolidation are as follows:
      (a) KIRIN DISTILLERY CO., LTD. and 8 other companies became consolidated subsidiaries due to acquisition of
          additional shares.
      (b) One company became a consolidated subsidiary due to new establishment.
      (c) SHANGHAI JINJIANG KIRIN BEVERAGE & FOOD CO., LTD. became a consolidated subsidiary due to the increase in
          importance on the consolidated financial statements.
      (d) Kirin Yamamura Container CO., LTD. was excluded from the consolidation scope due to liquidation.
  (3) Subsidiaries including KIRIN AGRIBIO USA, INC. are excluded from the consolidation scope because the effect of
      their sales, net income or losses, total assets and retained earnings on the accompanying consolidated financial
      statements are immaterial.
  (4) The following are the names of consolidated subsidiaries whose interim accounting period-ends are different from
      that of the Company.

Name of subsidiary                                       Interim accounting period-end
LION NATHAN LTD. and its subsidiaries                    March 31, 2003                                           (*)
TWYFORD INTERNATIONAL INC.                               March 31, 2003                                           (*)
and its subsidiaries
JAPAN POTATO CORPORATION                                 March 31, 2003                                           (*)
Kirin-Asupro Corporation                                 May 31, 2003                                             (*)
KIRIN FEED LIMITED                                       May 31, 2003                                             (*)
KIRIN-ASUPRO SALES CORPORATION                           May 31, 2003                                             (*)
EI SHO GEN CO., LTD.                                     September 30, 2002                                      (**)
Takeda-Kirin Foods Corporation                           September 30, 2002                                      (***)

   (*) Interim financial statements of the consolidated subsidiaries listed above as of their interim accounting period
       ends and for the 6 months then ended are used.
  (**) The company's adjusted financial statements as of June 30, 2003 and for the 6 months then ended are used for the
       purpose of consolidation and necessary adjustments are made for the purpose of consolidation.
 (***) The company's financial statements as of March 31, 2003 and for the 6 months then ended are used and necessary
       adjustments are made for the purpose of consolidation.

(Equity Method)
 Note 2
   (1) SHANGHAI JINJIANG KIRIN BEVERAGE & FOOD CO., LTD. became a consolidated subsidiary due to the increase in
       importance on the consolidated financial statements.

 Note 3:
  (1) The names of main affiliated companies under the equity method are KINKI COCA-COLA BOTTOLING CO., LTD., YONEKYU
      CORPORATION and SAN MIGUEL CORPORATION.
  (2) The changes of the scope of application of the equity method is as follows:
      (a) KIRIN DISTELLERY CO., LTD. and another company were no longer accounted for using the equity method, due to
          acquisition of additional shares and therefore becoming consolidated subsidiaries.
  (3) Certain investments in unconsolidated subsidiaries including KIRIN AGRIBIO USA, INC. and affiliates including
      Diamond Sports Club Co., Ltd. are not accounted for using the equity method, and are stated at cost because the
      effect of their net income or losses and retained earnings on the accompanying consolidated financial statements
      are immaterial.
  (4) Although the Company holds voting interest greater than 20% yet less than 50% in SOCIETE IMMOBILIERE ET FINANCIERE
      POUR L'ALIMENTATION, the Company does not have significant influence over this entity. Therefore the investment is
      not accounted for using the equity method.
  (5) Where accounting periods of the affiliated companies under the equity method are different from that of the
      Company, the Company used their financial statements for the most recent accounting periods without any
      adjustments for applying the equity method.
      Where the difference between an affiliate's period-end and that of the Company is more than 6 months, the Company
      used the affiliate's latest financial statements and necessary adjustments are made for applying the equity
      method.

1. Valuation of securities
Debt securities intended to be held to maturity are valued by the amortized cost 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 market value are stated at cost determined by 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 mainly stated at cost determined by the average method.
Raw materials and supplies are mainly stated at cost determined by the moving average method.
Construction in process is stated at cost determined by the specific identification 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. Leased assets are depreciated over each lease term based on the straight-line method with the estimated residual
value at the end of the lease term. Consolidated foreign subsidiaries adopt the straight-line method.

5. Amortization of intangible assets
Amortization of intangible assets is calculated on the straight-line method over estimated useful lives. Consolidated
foreign subsidiaries mainly adopt the straight-line method over 20 years.

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 and its consolidated subsidiaries provide 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 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.
Consolidated foreign subsidiaries mainly capitalize finance leases.

9. Hedge accounting
If derivative financial instruments are used as hedges and meet certain hedging criteria, the Company and its
consolidated subsidiaries defer 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 and currency swap 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 and its consolidated subsidiaries use 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,
interest rate fluctuation with respect to loans receivable and payable, and mitigating future risks of fluctuation of
commodity prices for raw materials such as aluminum.

The following summarizes hedging derivative financial instruments used by the Company and its consolidated subsidiaries
and items hedged:
  Hedging instruments                                   Hedged items

  Forward foreign exchange contracts and currency       Foreign currency receivables and payables, future transactions
  swap contracts etc.                                   in foreign currencies
  Interest rate swap contracts etc.                     Loans receivable and loans payable
  Commodity swap contracts etc.                         Commodity price

The Company and its consolidated subsidiaries evaluate 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.

11. Cash and cash equivalents
In preparing the consolidated statements of cash flows, cash on hand, readily available deposits and short-time highly
liquid investments with negligible risk of changes in value and maturities not exceeding 3 months at the time of
purchase are considered to be cash and cash equivalents.

CHANGE IN PRESENTATION:
(Consolidated Statements of Income)
  Gain on transactions related to gift coupon was presented separately because the amount exceeded 10% of total
  non-operating income. It was losses of 45 million yen and was included in "other" of non-operating expenses for the 6
  months ended June 30, 2002.

(Consolidated Statements of Cash Flows)
  Proceeds from termination of life insurance investment of 544 million yen for the 6 months ended June 30,2003, which
  was separately presented in cash flows from investing activities for the 6 months ended June 30, 2002, was included in
  "other" of cash flows from investing activities 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 and its subsidiaries 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 consolidated
  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
  consolidated balance sheets as of June 30, 2003 and consolidated statements of retained earnings for the 6 months
  ended June 30, 2003 are presented differently from prior fiscal year.

NOTES TO:

(CONSOLIDATED BALANCE SHEETS)                                                                            (millions yen )

*1 Accumulated depreciation
                                                          At                      At                       At
                                                     June 30, 2003           June 30, 2002         December 31, 2002
Accumulated depreciation                                        785,546                 745,919                  753,504

*2 Detail of collateral                                                                                  (millions yen )
(1) Collateral
                                                          At                      At                       At
                                                     June 30, 2003           June 30, 2002         December 31, 2002
Cash                                                                  -                       -                        0
Notes and accounts receivable                                       296                   1,447                      359
Inventories                                                       2,762                   2,396                    3,031
Buildings and structures                                          2,745                   1,380                    1,822
Machinery, equipment and vehicles                                 1,955                   1,362                    2,007
Land                                                              2,753                     931                      950
Other of property , plant and Equipment                              20                      10                       27
(Fixtures)                                                          148                     210                      149
Other of intangible fixed assets
Investments securities                                              152                     174                       29
                     Total                                       10,834                   7,914                    8,379
Following assets, which are included                              1,226                     284                      273
above, are pledged as factory foundation
collateral
Buildings and structures
Machinery, equipment and vehicles                                     -                      33                       33
Land                                                              2,058                     383                      383
                     Total                                        3,284                     701                      690

(2) Secured borrowing                                                                                    (millions yen )
                                                          At                      At                       At
                                                     June 30, 2003           June 30, 2002         December 31, 2002
Short-term loans payable                                          3,322                   4,095                    3,963
Long-term debt                                                    2,024                   2,166                    2,267
(include current maturities of long-term loans)
Deposits received                                                 3,408                   3,408                    3,408
Postage charge (facility limit)                                      11                      29                       13
                     Total                                        8,766                   9,701                    9,653
Following borrowings, which are included above,                   1,600                   2,200                    2,100
are guaranteed by factory foundation collateral
Short-term loans payable
Note: Factory foundation collateral consists of the Headquarters factory and Matsumoto factory of Nagano Tomato
Corporation.

3 Contingent liabilities                                                    (millions yen , Foreign currency: thousands)
(1) Guarantees for unconsolidated subsidiaries and affiliated companies
                                                          At                      At                       At
                                                     June 30, 2003           June 30, 2002         December 31, 2002
Koiwai Dairy Products Co.,Ltd.                                      700                   1,500                      800
Other                                                             1,015                   1,153                    1,025
(Number                                                               3                       5                       3)
Foreign currencies included above                                     -                      96                        -
                                                                                      HKD 6,300

(2) Guarantees for employee's housing loan from banks                                                    (millions yen )
                                                          At                      At                       At
                                                     June 30, 2003           June 30, 2002         December 31, 2002
                                                                 11,609                  12,844                   11,609

(3) Guarantees for bank loans of customers                                  (millions yen , Foreign currency: thousands)
                                                          At                      At                       At
                                                     June 30, 2003           June 30, 2002         December 31, 2002
Southeastern Container, Inc.                                      1,330                   1,326                    1,331
                                                           (USD 11,102)            (USD 11,102)             (USD 11,102)
Other                                                               979                   1,146                      924
(Number                                                              68                      62                      61)
Foreign currencies included above                                   847                     742                      780
                                                          AUD    11,725              AUD 10,458            AUD    11,704
                                                          NZD         5                                    NZD         5

Total contingent liabilities                                     15,634                  17,971                  15,691
(Including agreements similar to guarantees)                    (1,015)                 (1,019)                 (1,025)

*4 Revaluation of land

KIRIN BEVERAGE CORPORATION, a consolidated subsidiary, revalued land used for business on December 31, 2001, pursuant
tothe Law Concerning Land Revaluation (effective March 31, 1998) (the "Law") and related revision of the Law (effective
March 31,2001).
Due to revaluation of land in assets, the revaluation difference, net of tax, is accounted for as revaluation variance
for land inshareholders' equity, and tax portion is accounted for as deferred income taxes included in "other" of
investments and other assets.

Revaluation was performed by adjusting the road rating pursuant to Article 2, Paragraph 4 of the Enforcement Ordinance
for the LawConcerning Land Revaluation effective March 31, 1998.
Where the road rating is not provided, adjustment was made to the valuation of real estate tax prescribed in the Article
2, Paragraph 3of the Law.

(CONSOLIDATED STATEMENTS OF INCOME)
*1 Major elements of selling , general and administrative expenses                                       (millions yen )
                                                    6 months ended          6 months ended             Year ended
                                                     June 30, 2003           June 30, 2002         December 31, 2002
Sales promotion                                                  63,601                  62,134                  136,364
Freight                                                          20,733                  20,944                   45,023
Advertising                                                      32,669                  32,974                   56,626
Pension and retirement benefit costs                              6,454                   5,136                   10,290
Employee's compensation                                          43,966                  42,003                   88,378
Research and development                                          9,640                  10,069                   22,771
Depreciation                                                     11,873                  11,367                   24,143

*2 Gain on transactions related to gift coupon
Gain on transactions related to gift coupon includes expenses on issuance and collection and gain on reversal of
deposits received which had been remained outstanding for a certain period.

*3 Gain on sales of fixed assets                                                                         (millions yen )
                                                    6 months ended          6 months ended             Year ended
                                                     June 30, 2003           June 30, 2002         December 31, 2002
Buildings and structures                                            416                       -                        -
Land                                                                252                   1,912                    3,157
Other                                                                35                      24                      243
Total                                                               705                   1,936                    3,401

*4 Loss on disposal of fixed assets                                                                      (millions yen )
                                                    6 months ended          6 months ended             Year ended
                                                     June 30, 2003           June 30, 2002         December 31, 2002
Buildings and structures                                            273                     691                    3,323
Machinery, equipment and vehicles                                   782                   1,441                    3,114
Other                                                               124                     110                      277
Total                                                             1,180                   2,243                    6,715

*5 Loss on sales of fixed assets                                                                       (millions yen )
                                                   6 months ended          6 months ended            Year ended
                                                    June 30, 2003           June 30, 2002         December 31, 2002
Buildings and structures                                            41                       -                      80
Machinery, equipment and vehicles                                   38                      23                     197
Other                                                               15                     141                     101
Total                                                               95                     164                     379

*6 Business restructuring costs
Business restructuring costs incurred at a consolidated subsidiary, which consist of premium on retirement benefits
for early retirement, and loss resulting from recalculation of pension and retirement benefit obligation due to
retirement of significant number of employees.

7 Presentation of Income Taxes
The Company adopted simplified accounting method for income tax effect accounting in the consolidated interim
financial statements.Accordingly, deferred income taxes are not presented separately and are included in Income Taxes
in current interim consolidated statements of income.

(CONSOLIDATED STATEMENTS OF CASH FLOWS)
Reconciliation of cash in the consolidated balance sheets and cash and cash equivalents in the consolidated statements
of cash flows is as follows;
                                                                                                         (millions yen )
                                                          At                      At                       At
                                                     June 30, 2003           June 30, 2002         December 31, 2002
Cash                                                             76,679                 102,395                  108,148
Add : Marketable securities                                       1,071                   6,399                    2,017
Less : Fixed term deposit with maturities                       (2,542)                 (2,960)                  (2,522)
exceeding 3 months
Less: Marketable securities with maturities                     (1,071)                 (6,142)                  (2,071)
exceeding 3 months
Cash and cash equivalents                                        74,136                  99,692                  105,625

(LEASE TRANSACTIONS)
Lessee lease
(Finance lease transactions without ownership transfer to lessee)
(1) Purchase price equivalent, accumulated depreciation equivalent and book value equivalent of leased properties
                                                                                                         (millions yen )
                                                           At                       At                       At
                                                     June 30, 2003            June 30, 2002          December 31, 2002
Machinery, equipment and vehicles
      Purchase price equivalent                                    2,418                    2,825               2,468
      Accumulated depreciation equivalent                          1,329                    1,682               1,279
      Book value equivalent                                        1,088                    1,143               1,188
Property, plant and equipment, other (Tools)
      Purchase price equivalent                                    2,834                    3,381               2,953
      Accumulated depreciation equivalent                          1,621                    1,979               1,585
      Book value equivalent                                        1,213                    1,401               1,368
Total
      Purchase price equivalent                                    5,252                    6,207               5,422
      Accumulated depreciation equivalent                          2,950                    3,662               2,864
      Book value equivalent                                        2,301                    2,544               2,557

(2) Lease commitments
                                                                                                         (millions yen )
                                                           At                       At                       At
                                                     June 30, 2003            June 30, 2002          December 31, 2002
Due within one year                                                  907                      997                  960
Due over one year                                                  1,464                    1,614                1,657
 Total                                                             2,371                    2,612                2,617

(3) Lease expenses, depreciation equivalent and interest expense equivalent
                                                                                                         (millions yen )
                                                     6months ended            6months ended              Year ended
                                                     June 30, 2003            June 30, 2002          December 31, 2002
Lease expenses                                                       590                      700                1,350
Depreciation equivalent                                              524                      618                1,197
Interest expense equivalent                                           31                       39                   72

(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)
Lease commitments                                                                                        (millions yen )
                                                           At                       At                       At
                                                     June 30, 2003            June 30, 2002          December 31, 2002
Due within one year                                                1,959                    2,282                2,147
Due over one year                                                  7,760                    7,768                6,421
 Total                                                             9,720                   10,051                8,568


Lessee lease
(Finance lease transactions without ownership transfer to lessee)
(1) Purchase price, accumulated depreciation and book                                                  (millions yen )
value of leased properties
                                                         At                      At                      At
                                                    June 30, 2003           June 30, 2002         December 31, 2002
Property, plant and equipment, other (Leased
assets)
      Purchase price                                            17,115                  19,503                  18,313
      Accumulated depreciation                                  10,720                  12,056                  11,498
      Book value                                                 6,394                   7,446                   6,815
Intangible assets, other (Leased assets)
      Purchase price                                                 -                       -                       -
      Accumulated depreciation                                       -                       -                       -
      Book value                                                   786                     691                     739
Total
      Purchase price                                            17,115                  19,503                  18,313
      Accumulated depreciation                                  10,720                  12,056                  11,498
      Book value                                                 7,180                   8,137                   7,554

(2) Lease commitments                                                                                  (millions yen )
                                                         At                      At                      At
                                                    June 30, 2003           June 30, 2002         December 31, 2002
Due within one year                                              1,961                   2,063                   2,024
Due over one year                                                5,529                   6,281                   5,813
 Total                                                           7,491                   8,344                   7,838

(3) Lease revenue, depreciation and interest revenue                                                   (millions yen )
equivalentt
                                                    6months ended           6months ended            Year ended
                                                    June 30, 2003           June 30, 2002         December 31, 2002
Lease revenue                                                    1,443                   1,400                   2,860
Depreciation                                                     1,212                   1,224                   2,448
Interest revenue equivalent                                        177                     191                     381

(4) Allocation of interest equivalent
Interest revenue equivalent is allocated using the interest method over the lease terms.

(Securities)
At June 30,2003
1. Held-to-maturity debt securities with available fair values                                           (millions yen )
                                                      Book value              Fair value              Difference
(1)Governmental/municipal bonds                                   1,547                   1,568                      20
(2)Corporate bonds                                                1,140                   1,150                       9
(3)Other                                                              -                       -                       -
                     Total                                        2,688                   2,718                      29

2. Available-for-sale securities with available fair values                                              (millions yen )
                                                    Acquisition cost           Book value              Difference
(1)Shares                                                        136,289                 151,617                  15,327
(2)Bonds
    Governmental/municipal bonds                                      49                      53                       3
    Corporate bonds                                                    -                       -                       -
    Other                                                              -                       -                       -
(3)Other                                                              68                      68                       -
                     Total                                       136,408                 151,739                  15,331

3. Descriptions and book value of securities with no available fair values are as follows:
       Available-for-sale securities
          Unlisted securities                                              45,561 million yen

4. Impairment loss of securities
             Impairment losses of 578 million yen were recognized for available-for-sale securities for the 6 months
             ended June 30, 2003. Where the fair values of available-for-sale securities have declined by more than 30%
             from their acquisition costs, the values of those securities are considered to have "substantially declined
             " and the impairment losses are recorded on those securities, unless the values are considered recoverable.
             For available-for-sale securities without available fair value, when the substantive values of those
             securities have declined by more than 50% from their acquisition costs, the values of those securities are
             considered to have "substantially declined" and the impairment losses are recorded on those securities,
             except for the cases where the recoverability of the values of those securities in the future is supported
             by a reasonable ground.



At June 30,2002
1. Held-to-maturity debt securities with available fair values                                          (millions yen )
                                                      Book value              Fair value              Difference
(1)Governmental/municipal bonds                                   1,248                   1,278                      29
(2)Corporate bonds                                                1,643                   1,666                      22
(3)Other                                                              -                       -                       -
                     Total                                        2,891                   2,944                      52

2. Available-for-sale securities with available fair values                                             (millions yen )
                                                   Acquisition cost           Book value              Difference
(1)Shares                                                       137,703                 172,302                  34,598
(2)Bonds
    Governmental/municipal bonds                                     49                      55                       5
    Corporate bonds                                                  13                      14                       1
    Other                                                         3,499                   3,517                      17
(3)Other                                                          4,376                   4,402                      25
                     Total                                      145,642                 180,292                  34,649

3. Descriptions and book value of securities with no available fair values are as follows:
       Available-for-sale securities
          Unlisted securities                                              42,006 million yen

4. Impairment loss of securities
Impairment losses of 795 million yen were recognized for available-for-sale securities for the 6 months ended June 30,
2002. Where the fair values of available-for-sale securities have declined by more than 30% from their acquisition
costs, the values of those securities are considered to have "substantially declined" and the impairment losses are
recorded on those securities, unless the values are considered recoverable. For available-for-sale securities without
available fair value, when the substantive values of those securities have declined by more than 50% from their
acquisition costs, the values of those securities are considered to have "substantially declined" and the impairment
losses are recorded on those securities, except for the cases where the recoverability of the values of those
securities in the future is supported by a reasonable ground.

At December 31, 2002
1. Held-to-maturity debt securities with available fair values                                          (millions yen )
                                                      Book value              Fair value              Difference
(1)Governmental/municipal bonds                                   1,398                   1,424                      26
(2)Corporate bonds                                                1,341                   1,357                      15
(3)Other                                                              -                       -                       -
                     Total                                        2,739                   2,781                      41

2. Available-for-sale securities with available fair values                                             (millions yen )
                                                   Acquisition cost           Book value              Difference
(1)Shares                                                       136,526                 147,127                  10,601
(2)Bonds
    Governmental/municipal bonds                                     49                      54                       4
    Corporate bonds                                                  13                      14                       1
    Other                                                           999                   1,001                       1
(3)Other                                                          2,113                   2,106                     (6)
                     Total                                      139,702                 150,305                  10,602

3. Descriptions and book value of securities with no available fair values are as follows:
       Available-for-sale securities
          Unlisted securities                                              43,209 million yen

4. Impairment loss of securitie
Impairment losses of 2,236 million yen were recognized for available-for-sale securities for the year ended December
31, 2002. Where the fair values of available-for-sale securities have declined by more than 30% from their acquisition
costs, the values of those securities are considered to have "substantially declined" and the impairment losses are
recorded on those securities, unless the values are considered recoverable. For available-for-sale securities without
available fair value, when the substantive values of those securities have declined by more than 50% from their
acquisition costs, the values of those securities are considered to have "substantially declined" and the impairment
losses are recorded on those securities, except for the cases where the recoverability of the values of those
securities in the future is supported by a reasonable ground.

(DERIVATIVE TRANSACTIONS)

At June 30, 2003
Disclosure of derivative transactions is omitted, because hedge accounting applies to all of the derivative contracts
utilized by the Company and its consolidated subsidiaries.

At June 30, 2002
Disclosure of derivative transactions is omitted, because hedge accounting applies to all of the derivative contracts
utilized by the Company and its consolidated subsidiaries.

At December 31, 2002
Disclosure of derivative transactions is omitted, because hedge accounting applies to all of the derivative contracts
utilized by the Company and its consolidated subsidiaries.

(SEGMENT INFORMATION)
1. Business Segment Information                                                                          (millions yen )

                                              6 months ended June 30,2003
                                   Alcoholic  Soft drinks   Pharma-       Other       Total    Eliminations Consolidated
                                   beverages               ceuticals
Sales
  1 Unaffiliated customers            476,940     164,148       24,081      67,642     732,812            -      732,812
  2 Intersegment                        1,094         398            -      38,767      40,260     (40,260)            -
  Total sales                         478,035     164,546       24,081     106,409     773,073     (40,260)      732,812

Operating expenses                    451,858     160,536       18,110     103,779     734,285     (39,048)      695,236
Operating income                       26,176       4,010        5,970       2,630      38,787      (1,211)       37,576

                                                                                                         (millions yen )
                                              6 months ended June 30, 2002
                                                Alcoholic  Soft drinks    Other       Total    Eliminations Consolidated
                                                beverages
Sales
  1 Unaffiliated customers                         496,541     157,314      74,033     727,889            -      727,889
  2 Intersegment                                     1,624         516      43,557      45,698     (45,698)            -
  Total sales                                      498,166     157,830     117,590     773,587     (45,698)      727,889

Operating expenses                                 474,615     151,304     112,394     738,315     (44,224)      694,090
Operating income                                    23,550       6,526       5,195      35,272      (1,473)       33,799

                                                                                                         (millions yen )
                                              Year ended December 31, 2002
                                                Alcoholic  Soft drinks    Other       Total    Eliminations Consolidated
                                                beverages
Sales
  1 Unaffiliated customers                       1,069,521     342,946     170,780   1,583,248            -    1,583,248
  2 Intersegment                                     2,941         955     109,173     133,070    (113,070)            -
  Total sales                                    1,072,463     343,901     279,954   1,696,319    (113,070)    1,583,248

Operating expenses                               1,013,342     324,954     265,031   1,603,328    (109,869)    1,493,459
Operating income                                    59,120      18,946      14,923      92,991      (3,201)       89,789


Notes: 1. Business segments are classified based on type and nature of products.
       2. Main products of sales by segment are as follows;
       Business segments                                             Main products
       Alcoholic beverages                Beer, Sparkling malt liquor (Happoshu), Whiskey, Spirits, Wine etc.
       Soft drinks                        Soft drinks, Other drinks
       Pharmaceuticals                    Pharmaceutical products
       Others                             Engineering, Logistics, Floriculture etc.
       3. Unallocable operating expenses included in Eliminations mainly consist of the Company's costs for new business
       development and costs for research and development of new basic technologies.
             6 months ended June 30,2003 1,950 million yen
             6 months ended June 30,2002 1,855 million yen
             Year ended December 31,2002 3,583 million yen

(Changes in classification of business segments and method of allocation of operating expenses)

 In consideration of the recent increase in importance of the Pharmaceuticals business, the Company reviewed its
segmentation and made the change in classifications in order to more clearly report the business segment information. As
a result, the business segment information, which was previously presented by three segments (Alcoholic Beverages, Soft
Drinks and Others), was classified into four segments (Alcoholic Beverages, Soft Drinks, Pharmaceuticals and Others) for
the 6 months ended June 30, 2003
  Following the change described above, the Company considered more rational standard of allocation for companywide
operating expenses which better reflects the size of operations of each segment, as the Company promoted efficiency in
domestic alcoholic beverage business by downsizing its workforce. And, accordingly, the Company changed the method of
allocation for those expenses from the previous standard of proportional allocation based on numbers of employees for
each segment to the new standard of proportional allocation based on sales amount of each segment, in order to more
accurately reflect in segment information the actual conditions under which such expenses are incurred.
 Because of the change, in comparison with the previous presentation, operating expenses of the Alcoholic Beverages
segment increased by 2,302 million yen , operating expenses of the Soft Drinks segment increased by 6 million yen ,
operating expenses of the Pharmaceuticals segment decreased by 2,231 million yen , and operating expenses of the Others
segment decreased by 78 million yen for the 6 months ended June 30, 2003.
 Business segment information for the 6 months ended June 30, 2002 and for the year ended December 31, 2002, restated to
conform with the change of classifications for business segment information and the method of allocation of operating
expenses adopted for the 6 months ended June 30, 2003, was as follows.

                                                                                                        ( millions yen )
                                                                6 months ended June 30,2002
                                    Alcoholic  Soft drinks   Pharma-     Others       Total    Eliminations Consolidated
                                    beverages               ceuticals
Sales
  1 Unaffiliated customers             496,541     157,314      22,523      51,510     727,889            -      727,889
  2 Intersegment                         1,624         516           -      43,557      45,698     (45,698)            -
  Total sales                          498,166     157,830      22,523      95,067     773,587     (45,698)      727,889
Operating expenses                     476,803     151,315      17,074      93,121     738,315     (44,224)      694,090
Operating income                        21,363       6,514       5,448       1,945      35,272      (1,473)       33,799


                                                                                                        ( millions yen )
                                                                Year ended December 31,2002
                                    Alcoholic  Soft drinks   Pharma-     Others       Total    Eliminations Consolidated
                                    beverages               ceuticals
Sales
  1 Unaffiliated customers           1,069,521     342,946      49,617     121,163   1,583,248            -    1,583,248
  2 Intersegment                         2,941         955           -     109,173     113,070    (113,070)            -
  Total sales                        1,072,463     343,901      49,617     230,337   1,696,319    (113,070)    1,583,248
Operating expenses                   1,017,683     325,024      38,114     222,505   1,603,328    (109,869)    1,493,459
Operating income                        54,779      18,876      11,502       7,832      92,991      (3,201)       89,789

2. Geographical Segment Information
                                                                                                        ( millions yen )
                                                             6 months ended June 30, 2003
                                     Japan         Asia,        Others         Total      Eliminations   Consolidated
                                                  Oceania
Sales
  1 Unaffiliated customers             633,251        67,948        31,612       732,812              -        732,812
  2 Intersegment                         1,018           589           954         2,563        (2,563)              -
  Total sales                          634,270        68,538        32,567       735,376        (2,563)        732,812
Operating expenses                     608,959        57,082        29,813       695,855          (619)        695,236
Operating income                        25,311        11,455         2,753        39,521        (1,944)         37,576


                                                                                                        ( millions yen )
                                                             6 months ended June 30, 2002
                                     Japan         Asia,        Others         Total      Eliminations   Consolidated
                                                  Oceania
Sales
  1 Unaffiliated customers             636,651        61,573        29,664       727,889              -        727,889
  2 Intersegment                         1,065           613           741         2,419        (2,419)              -
  Total sales                          637,716        62,186        30,405       730,309        (2,419)        727,889
Operating expenses                     614,754        51,844        28,085       694,683          (593)        694,090
Operating income                        22,962        10,342         2,320        35,625        (1,826)         33,799


                                                                                                        ( millions yen )
                                                              Year ended December 31, 2002
                                     Japan          Asia,        Others         Total       Eliminations   Consolidated
                                                   Oceania
Sales
  1 Unaffiliated customers            1,404,629       121,769        56,849      1,583,248              -      1,583,248
  2 Intersegment                          2,035         1,223         1,518          4,777        (4,777)              -
  Total sales                         1,406,665       122,993        58,368      1,588,026        (4,777)      1,583,248
Operating expenses                    1,333,980       106,905        53,790      1,494,676        (1,216)      1,493,459
Operating income                         72,684        16,087         4,578         93,350        (3,561)         89,789

3. Overseas sales
                                                                                                        ( millions yen )
                                                                      6 months ended June 30, 2003
                                                     Asia, Oceania                Other                   Total
I Overseas sales                                                  68,889                  32,520                 101,410
II Consolidated sales                                                  -                       -                 732,812
III Percentage of overseas sales over                                9.4                     4.4                    13.8
consolidated sales(%)


                                                                                                        ( millions yen )
                                                                      6 months ended June 30, 2002
                                                     Asia, Oceania                Other                   Total
I Overseas sales                                                  61,702                  29,848                  91,550
II Consolidated sales                                                  -                       -                 727,889
III Percentage of overseas sales over                                8.5                     4.1                    12.6
consolidated sales(%)


                                                                                                        ( millions yen )
                                                                      Year ended December 31, 2002
                                                     Asia, Oceania                Other                   Total
I Overseas sales                                                 122,982                  58,073                 181,056
II Consolidated sales                                                  -                       -               1,583,248
III Percentage of overseas sales over                                7.8                     3.7                    11.4
consolidated sales(%)

Notes: 1.  Geographical distances are considered in classification of country or area.
       2.  Major countries or areas included in each segment are as follows;
           Asia, Oceania                   East Asia, Southeast Asia, Oceania
           Other                           USA, Europe
       3.  Overseas sales represent those of the Company and consolidated subsidiaries to countries and areas outside of
           Japan.

(PRODUCTION, ORDERS RECEIVED AND SALES)

(1) PRODUCTION PERFORMANCE
        Production performance for the 6 months ended June 30, 2003 classified by the type of business segment is as
     follows:

        Business Segment                  6 Months ended June 30,2003                Percentage change (%)
Alcoholic beverages                                    466,834  (Millions yen)                             (4.3)
Soft drinks                                              58,690 (Millions yen)                               3.0
Pharmaceuticals                                          27,773 (Millions yen)                               8.4
Other                                                    23,138 (Millions yen)                              20.3
Total                                                   576,436 (Millions yen)                             (2.3)
Notes:   The amounts are calculated based on sales price without consumption taxes.


(2) ORDERS RECEIVED
     Orders received for the 6 months ended June 30, 2003 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
                                          the period               (%)                                       (%)
Alcoholic beverages                     384 (millions yen )             247.2                       -                 -
Soft drinks                           1,321 (millions yen )              85.7                       -                 -
Pharmaceuticals                           - (millions yen )                 -                       -                 -
Other                                 3,661 (millions yen )            (13.2)   1,338 (millions yen )               6.9
Total                                 5,366 (millions yen )               6.5   1,338 (millions yen )               6.9
Notes:   The amounts are calculated based on sales price without consumption taxes.


(3) SALES PERFORMANCE
     Sales performance for the 6 months ended June 30, 2003 classified by the type of business segment is as follows:
        Business Segment                   Months ended June 30,2003                 Percentage change (%)
Alcoholic beverages                                     476,940 (Millions yen)                             (3.9)
Soft drinks                                             164,148 (Millions yen)                               4.3
Pharmaceuticals                                        24,018 ( Millions yen )                               6.9
Other                                                    67,642 (Millions yen)                              31.3
Total                                                   732,812 (Millions yen)                               0.7
Notes:   The amounts do not include the related consumption taxes, etc.

Percentage change means the ratio of increase or decrease in each item for the 6 months ended June 30, 2003 to those for
the 6 months ended June 30, 2002.
For purposes of comparison, figures for the 6 months ended June 30, 2002 have been restated to conform with the change
of classifications for business segments in the 6 months ended June 30, 2003.


(Per share information)

                                                                                                                 ( yen )
                                                          At                      At                       At
                                                     June 30, 2003           June 30, 2002         December 31, 2002
Shareholders' equity per share                                   808.16                  792.16                   795.71
Net income per share primary                                      14.42                   10.50                    33.26
Net income per share diluted                                          -                       -                        -


(ADDITIONAL INFORMATION)
Effective from current interim accounting period, the Company and its subsidiaries adopted the new accounting standard
for net income per share (Accounting Standards Board Statement No. 2, "Accounting Standard for Net Income per Share" and
Guidance for Adopting the Accounting Standards Board Statement No. 4, "Guidance for Adopting the Accounting Standard for
Net Income per Share", both issued by the Accounting Standards Board of Japan on September 25, 2002).
Per share information for 6 months ended June 30, 2002 and for the year ended December 31, 2002, restated to the conform
with the new accounting standard, was as follows.

                                                                                                    ( yen )
                                                                   At                        At
                                                              June 30, 2002           December 31, 2002
                      Shareholders' equity per share                       792.14                    795.43
                      Net income per share primary                          10.50                     32.99
                      Net income per share diluted                              -                         -
Notes:   (a)  Diluted net income per share is not presented because the Company has no dilutive potential of common
              stock.
         (b)  Calculation basis of net income per share is as follows :

                                                                                                        ( millions yen )
                                                    6 months ended          6 months ended             Year ended
                                                     June 30, 2003           June 30, 2002         December 31, 2002
Net income                                                       13,931                       -                        -
Less: Amount not attributable to                                      -                       -                        -
  shareholders included in net income
Balance: Net income attributable to                              13,931                       -                        -
  common stock
Average number of shares of common                              966,404                       -                        -
  stock outstanding during the period
  (thousands of shares)
Description of dilutive potential common                              -                       -                        -
  stock excluded from the calculation of
  diluted net income per share because
  it is antidilutive.



                                          CONSOLIDATED FINANCIAL RESULTS for
                                           THE HALF YEAR ended JUNE 30, 2003
                                                SUPPLEMENTARY COMMENTS
       ---------------------------------------------------------------------------------

Consolidated

                                                 Results of Operations
                                                                                                          (Billions yen)
                                                      2003              2003              2002              2002
                                                  The 1st half        Forecast        The 1st half         Actual
                                                     Actual                              Actual
Sales                                                       732.8           1,610.0             727.8           1,583.2
Operating Income                                             37.5              90.0              33.7              89.7
Income before Extraordinary Items and Income                 39.0              87.0              30.2              84.4
Taxes
Net Income                                                   13.9              33.0              10.3              32.5

                                Scope of consolidation and application of equity method
                                                                                                   (Number of companies)
                                                      2003              2003              2002              2002
                                                  The 1st half        Forecast        The 1st half         Actual
                                                     Actual                              Actual
Consolidated subsidiaries                                     315               314               297               305
  Unconsolidated subsidiaries applied by the                    -                 -                 1                 1
equity method
Affiliated companies applied by the equity                     14                14                16                16
method

                                                     Sales Details
                                                                                                          (Billions yen)
                                         2003                  2003                  2002                  2002
                                  The 1st half actual        Forecast         The 1st half actual         Actual
Sales volume
Alcoholic beverages               thousand   Increase   thousand   Increase   thousand   Increase   thousand   Increase
                                     KL     (Decrease)     KL     (Decrease)     KL     (Decrease)     KL     (Decrease)
    Beer and Happo-shu                1,619     (4.9%)      3,438     (4.4%)      1,702     (5.2%)      3,595     (0.8%)
                                    million               million               million               million
                                      cases                 cases                 cases                 cases
    Soft drinks                          95       8.4%        211       9.2%         88       3.0%        193       3.0%
Sales by business segments            732.8       0.7%    1,610.0       1.7%      727.8     (2.7%)    1,583.2       1.4%
Total
 Alcoholic beverages                  476.9     (3.9%)    1,048.0     (2.0%)      496.5     (5.0%)    1,069.5     (0.8%)
    Beer and Happo-shu                430.2     (7.2%)      942.0     (4.6%)      463.4     (7.7%)      987.5     (3.8%)
    Whiskey, spirits, wines and        46.6      40.9%      106.0      29.4%       33.0      61.9%       81.9      60.4%
    chuhai etc.
 Soft drinks                          164.1       4.3%      376.0       9.6%      157.3       3.6%      342.9       3.0%
    Pharmaceutical                     24.0       6.9%       56.0      12.9%       22.5     (0.8%)       49.6       1.1%
 Other business                        67.6      31.3%      136.0      12.2%       51.5       1.5%      121.1      18.9%
    Agribio                            14.0      25.8%       26.0      41.9%       11.1      32.6%       18.3      41.1%
    Nutrient Food & Feed               17.8     206.9%       37.5      41.6%        5.8      23.4%       26.4     143.0%
    Other                              35.7       3.5%       72.5     (5.0%)       34.4     (8.2%)       76.3     (2.1%)



                                                SUPPLEMENTARY COMMENTS
       ---------------------------------------------------------------------------------

2003 Actual:Consolidated

                                             PROFIT CHANGE FROM PRIOR YEAR
                                                                                                          (billions yen)
                  Item                          2003              2002            Increase             Reference
                                            The 1st half      The 1st half       (Decrease)
                                               Actual            Actual

Sales                                                 732.8             727.8               5.0
Increase in Parent's                                                                        5.4
  operating income
Increase in other consolidated                                                              0.7 LION NATHAN LTD.:
  subsidiaries' operating income                                                                1.4,etc.
Decrease in KIRIN BEVERAGE's                                                              (2.3)
  operating income
Increase in                                            35.7              33.7               3.8
  Operating Income
Increase in Parent's non-operating                                                          6.2
  income, net
Increase in equity in earnings                                                              2.3 KIRIN-AMGEN, INC. :
  of affiliates                                                                                 1.3, etc.
Increase in KIRIN BEVERAGE's                                                                0.1
  non-operating income, net
Decrease in other consolidated                                                            (3.6) Elimination of dividend
  subsidiaries' non-operating                                                                   income:
  income, net etc.                                                                              (3.2), etc.
Increase in Income Before                              39.0              30.2               8.8
  Extraordinary Items and Income Taxes
Increase in KIRIN BEVERAGE's                                                                0.6
  special income, net
Increase in minority interests                                                            (0.1)
Decrease in other consolidated                                                            (1.7) KIRIN DISTILLERY Co.,
  subsidiaries' extraordinary income, net                                                       Ltd.:(1.2)
Decrease in Parent's                                                                      (4.0)
  extraordinary income, net
Increase in Net Income                                 13.9              10.3               3.6

2003 Forecast:Consolidated

                                             PROFIT CHANGE FROM PRIOR YEAR
                                                                                                          (billions yen)
                  Item                          2003              2002             Increase             Reference
                                              Forecast           Actual           (Decrease)

Sales                                               1,610.0           1,583.2               26.8
Increase in Parent's                                                                         4.0
  operating income
Decrease in other consolidated                                                             (2.6) Kirin Logistics
  subsidiaries' operating income                                                                 Co.,Ltd.:(1.9),etc
Decrease in KIRIN BEVERAGE's                                                               (1.1)
  operating income
Increase in                                            90.0              89.7                0.3
  Operating Income
Increase in Parent's non-                                                                    6.2
  operating income, net
Increase in equity in earnings                                                               1.2 KIRIN-AMGEN, INC. :
  of affiliates                                                                                  1.0, etc.
Increase in KIRIN BEVERAGE's                                                                 0.4
  non-operating income, net
Decrease in other consolidated                                                             (5.5) Elimination of dividend
  subsidiaries' non-operating                                                                    income :
  income, net, etc.                                                                              (3.4), etc.
Increase in Income Before                              87.0              84.4                2.6
  Extraordinary Items and Income   Taxes
Increase in other consolidated                                                               2.4 Kirin Logistics
  subsidiaries' extraordinary                                                                    Co.,Ltd. : 1.4,etc
  income, net
Decrease in minority interests                                                               0.3
Decrease in KIRIN BEVERAGE's                                                               (1.3)
  extraordinary income, net
Decrease in Parent's                                                                       (3.5)
  extraordinary income, net
Increase in Net Income                                 33.0              32.5                0.5

Consolidated

                                                Major Expenditures etc.
                                                                                                          (billions yen)
                                                      2003              2003               2002              2002
                                                  The 1st half        Forecast         The 1st half         Actual
                                                     actual                               actual
Sales promotion                                              63.6             206.0               62.1             136.3
Advertising                                                  32.6                                 32.9              56.6
R&D                                                           9.7              23.5               10.1              23.0
Depreciation                                                 36.7              71.0               35.8              75.2
Financial profit, net                                       (2.3)             (4.5)              (1.7)             (4.9)
Capital Expenditures                                         30.1              69.0               40.8              85.4
Cash flows                                                 (31.4)               3.5             (44.6)            (38.2)
  Operating activities                                       23.5             108.0               26.7              87.7
  Investing activities                                     (35.7)            (70.0)            (133.6)           (175.3)
  Financing activities                                     (19.2)            (34.0)               63.0              50.6


                                        Major Changes in Assets and Liabilities
                                                                                                          (billions yen)
                                        2003         2002      Increase                     Reference
                                    The 1st half The 1st half (Decrease)
                                       Actual       Actual
Cash                                        76.6        102.3      (25.7) Kirin Brewery Company, Limited, Kirin Lease
                                                                          Co., Ltd., Takeda-Kirin Foods Corporation,
                                                                          etc.
Notes and accounts receivable              243.2        266.3      (23.1) 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                      328.5        354.9      (26.4) Decrement on revaluation of securities as a
                                                                          result of drop of market value, etc.
Liquor taxes payable                        78.8        123.7      (44.9) Influence of the fact that the prior balance
                                                                          sheet date was a bank holiday and decrease in
                                                                          sales compared to the prior fiscal year.

Consolidated

                                    Analysis of operating income by business segment
Fluctuation between the 1st half of 2003 Actual and the 1st half of 2002 Actual                           (billions yen)
                                   Alcoholic     Soft drinks      Pharma-        Others      Eliminations      Total
                                   beverages                     ceuticals
Operating income                           21.3            6.5            5.4           1.9          (1.4)          33.7
  - The 1st half of 2002 Actual
Increase (Decrease) in gross              (1.0)            6.7            0.8           2.4            1.2          10.2
profit
Decrease (Increase) in selling,             5.8          (9.2)          (0.3)         (1.7)          (1.0)         (6.4)
general and administrative
expenses
Increase (Decrease) in operating            4.8          (2.5)            0.5           0.7            0.2           3.8
income
Operating income                           26.1            4.0            5.9           2.6          (1.2)          37.5
  - The 1st half of 2003 Actual


Fluctuation between 2003 Forecast and 2002 Actual                                                         (billions yen)
                                   Alcoholic     Soft drinks      Pharma-        Others      Eliminations      Total
                                   beverages                     ceuticals
Operating income - 2002 Actual             54.7           18.8           11.5           7.8          (3.2)          89.7
Increase (Decrease) in gross                1.1           19.0            4.0           1.6              -          25.7
profit
Decrease (Increase) in selling,             1.2         (20.3)          (3.1)         (1.9)          (1.3)        (25.4)
general and administrative
expenses
Increase (Decrease) in operating            2.3          (1.3)            0.9         (0.3)          (1.3)           0.3
income
Operating income - 2003 Forecast           57.0           17.5           12.4           7.5          (4.5)          90.0

Consolidated

                                Changes in Sales and Operating Income of Major Companies
Sales                                                                                                     (billions yen)
                                                         2003                    2002                  Increase
                                                  The 1st half Actual     The 1st half Actual         (Decrease)
Kirin brewery Company,Limited                                     432.3                   459.4                  (27.1)
(Subsidiaries)
Kirin Beverage Corporation                                        158.4                   146.1                    12.3
LION NATHAN LTD.                                                   63.0                    56.4                     6.6
Kirin Logistics Co.,Ltd.                                           37.4                    36.9                     0.5
Kirin Engineering Co,.Ltd.                                          6.9                     5.6                     1.3
Takeda-Kirin Foods Corporation                                     13.0                       -                    13.0
(Affiliates)
Kinki Coca-Cola Bottling Co.,Ltd.                                  86.0                    86.7                   (0.7)
YONEKYU CORPORATION                                                46.6                    43.3                     3.3
SAN MIGUEL CORPORATION                                            160.9                   167.2                   (6.3)


Operating Income                                                                                          (billions yen)
                                                         2003                    2002                  Increase
                                                  The 1st half Actual     The 1st half Actual         (Decrease)
Kirin brewery Company,Limited                                      18.3                    12.9                     5.4
(Subsidiaries)
Kirin Beverage Corporation                                          2.7                     5.0                   (2.3)
LION NATHAN LTD.                                                   14.8                    13.4                     1.4
Kirin Logistics Co.,Ltd.                                            1.2                     1.9                   (0.7)
Kirin Engineering Co,.Ltd.                                          0.3                     0.3                     0.0
Takeda-Kirin Foods Corporation                                      0.4                       -                     0.4
(Affiliates)
Kinki Coca-Cola Bottling Co.,Ltd.                                   1.7                     2.1                   (0.4)
YONEKYU CORPORATION                                                 1.2                     0.8                     0.4
SAN MIGUEL CORPORATION                                             13.7                    15.3                   (1.6)







                      This information is provided by RNS
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