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The Kyowa Kirin International Group (the “Group”) is a rapidly growing specialty pharmaceutical group engaged in the development and commercialisation of prescription medicines for the treatment of unmet therapeutic needs in major western markets. The Group is investing heavily in expanding into new markets and in launching new products such as Crysvita and Poteligeo. The Group is a 100% subsidiary of Tokyo-based Kyowa Hakko Kirin Co. Ltd.

The Group recognises that in each of the jurisdictions in which it operates, the taxes raised are a significant, and direct, contributory factor to the local government’s ability to influence the well-being and health of those who live there.

Clarity and predictability are our two guiding principles in relation to our taxes. The Group has a tax function that is intended to support the business and not to lead the business. This approach is key to ensuring that the substance of the business determines its tax footprint. The Group does not engage in artificial tax planning.

The Group seeks to take advantage of such tax reliefs and allowances as are made available to it by governments or fiscal authorities, but seeks to apply these in a manner consensually agreed with the relevant tax authorities. We seek to act within the letter and spirit of the legislation. Where appropriate we will seek Advance Pricing Agreements with the relevant tax authorities to provide both transparency and certainty to our affairs. The Group adopts a prudent approach to tax planning and does not engage in aggressive planning schemes.

Our intention is to have little more than a minimal level of tax associated risk present within the Group. Whilst some risk will inevitably arise, the Group will seek to find certainty in respect of this within a short but appropriate timescale.

The Group will continue to strengthen and deepen our relationships with HMRC (and her overseas equivalents) to allow for clarity and predictability in our tax affairs.

As part of our tax governance processes, we rely upon our in-house tax team, a network of external experts and our relationships within the industry to allow us to ensure our approach remains in line with best practice. Reviews of our processes, procedures and outputs are performed by internal and external auditors and all material tax positions require sign off by senior managers or directors.

The Group is fully committed to the implementation of the BEPS recommendations and keeping abreast of international tax developments. The Group takes seriously it’s responsibilities under the UK’s corporate criminal offense of the failure to prevent the facilitation of tax evasion legislation and has appointed a senior accounting officer to ensure The Group maintains appropriate tax accounting arrangements.

We review and update this policy annually. The Group regards this publication as complying with the duty under para 19(2) Sch19 FA2016. This strategy is the one adopted in the UK and applied throughout the wider Kyowa Kirin International Group.

It was last approved by the board of KKI plc on 10 December 2018 and published on 20 December 2018.