Kirin : Click here to download the entire reportKIRIN INTEGRATED REPORT 2024 DOWNLOA

INTEGRATED REPORT

2 0 2 4

For the period ended December 2023

Editorial Policy

The Kirin Group Vision 2027 (KV2027) sets the Long-Term Management Vision for the Group to become a global leader in CSV, creating value across our world of Food & Beverages and Pharmaceuticals domains. We hope this report will help readers understand how we are using our strengths in fermentation and biotechnology that have been cultivated through our beer business since its foundation, to create value in the Food & Beverages, Pharmaceuticals, and Health Science domains.

• Coverage

Kirin Holdings Company and the Kirin Group companies

• Period

Period covered is fiscal 2023 (January 1, 2023 to December 31, 2023). Certain activities occurred in fiscal 2024.

• Contact

Kirin Holdings, Corporate Communications Department

• Referenced Guidelines

The integrated report was prepared with reference to the International Integrated Reporting Framework of the International Integrated Reporting Council (IIRC) and the Guidance for Integrated Corporate Disclosure and Company-Investor Dialogues for Collaborative Value Creation of the Ministry of Economy, Trade and Industry.

Cautionary statement regarding forward-looking statements

Statements in this report that are not historical facts are forward-looking statements based on plans and expectations for the future. Accordingly, these forward-looking statements are subject to risks, uncertainties, and other unpredictable factors, and may differ considerably from actual results, business performance, and other future events.In addition, forecasts of fiscal 2024 financial results were decided as of the disclosure of financial results on February 14, 2024.

Publications Available on Kirin's Global Website

Environmental Report (Publication every June)

The report details the Kirin Group's annual environmental activities as well as unique business-driven initiatives. It presents the Kirin Group's annual environmental activities and how it makes use of the unique characteristics of its businesses in environmental

initiatives.https://www.kirinholdings.com/en/investors/library/env_report/

2022-2024Medium-Term Business Plan webpage (Published in February 2022)

The webpage features the 2022-2024Medium-Term Business Plan, the Group's first three-year plan focused on realizing the KV2027 long-term management vision.

https://www.kirinholdings.com/en/purpose/management_plan/#headline-1615513803

Consolidated Financial Statements (Publication every March 31)

Compiled in accordance with Article 24-1 of the Financial Instruments and Exchange Act of Japan, the report includes Kirin Holding's financial statements along with an overview of its recent performance, business results, facilities, and operations.

https://www.kirinholdings.com/en/investors/library/financial_results/

ESG Data (Periodically updated)

Kirin Holdings presents environment, society, and governance (ESG) data for recent years at the following website.

https://www.kirinholdings.com/en/investors/esg/esg/

Corporate Governance Report (Publication Every April)

The report provides information on the Group's approach to and system of corporate governance, maintained in compliance with the Corporate Governance Code of Japan.

https://www.kirinholdings.com/en/purpose/files/pdf/governance_report.pdf

Data Book (Periodically updated)

The book presents data about the Group's business markets, pharmaceuticals development pipeline, and historical financial data.

https://www.kirinholdings.com/en/investors/library/databook/beer_region/

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I N T E G R AT E D R E P O R T 2 0 2 4
Contents
Editorial Policy /
Publications Available on Kirin's Global Website	.....................	02
Contents	04
01 Message from Top Management	06
Message from CEO
Refine CSV Management to Maximize Corporate
Value from a Medium- to Long-term Perspective
Yoshinori Isozaki
Representative Director
of the Board & CEO
Kirin Holdings Company, Limited

Message from COO

Drawing on Experience in Three Domains to Steadily Implement Strategies and Demonstrate Results

Takeshi Minakata

Representative Director of the Board

President & COO

Kirin Holdings Company, Limited

02 Overview of the Kirin Group

About Kirin Group........................................................................... 14

History of Business Development............................................... 18

CSV Management and the Value Creation Model .................... 20

Long-Term Management Vision /

Medium-TermBusiness Plan ....................................................... 22

Message from

the Senior Executive Officer of CSV Strategy........................... 26

Demonstrating Our Presence as a Global Leader in CSV through Practical Initiatives and

Progressive Disclosure of Non-financial Information

Hiroshi Fujikawa

Senior Executive Officer

Kirin Holdings Company, Limited

Message from Director of the Board,

Senior Executive Officer of Financial Strategy......................... 30

Continue to Review the Business Portfolio to Achieve Kirin Group Vision 2027

While Striving to Grow and Improve Profitability of

Each Business Domain

Shinjiro Akieda

Director of the Board,

Senior Executive Officer, CFO

Kirin Holdings Company, Limited

03 INPUT

Foundations for driving innovations

Diversity and Inclusion, Culture for Innovation ......................... 34

Core Technology that Assures Value Creation ......................... 38

Consumer Centric Marketing Expertise ..................................... 40

ICT Accelerating Value Creation.................................................. 42

04 BUSINESS

The Kirin Group is activating business synergies to approach social issues as opportunities for business growth

Overview .......................................................................................... 44

Example 1 (Food & Beverages domain)

Revitalizing Farming Communities with

Craft Beer Made from Sustainable Barley ................................. 46

Example 2 (Pharmaceuticals domain)

Building a Structure and System

That Continually Creates Groundbreaking, New Drugs ........... 48

Example 3 (Health Science domain)

Raising Awareness of the Importance of Good-qualitySleep through Promoting Sales of Sleep Range.................................. 50

05 OUTPUT

The Group is leveraging its foundation for driving innovation that enable its businesses to help society around the world settle the issues

Financial targets / Non-financial targets	....................................	52

06 OUTCOME

The Kirin Group gives values back to the society it serves............. 53

Example 1 (Health and Well-Being)

Accelerating the Spread of Immune Care Awareness and Action Building a Foundation of Health for People .............................. 54

Example 2 (The Environment)

Our Grape Production Leads to Nature Positive....................... 55

Example 3 (Community Engagement)

Contribute to Cultivating New Human Connections

with a Diverse Range of Beers ..................................................... 56

Example 4 (A Responsible Alcohol Producer)

Providing New Options for Non-alcoholic Beverages

and Promoting Responsible Drinking ......................................... 57

07 Special feature

Special feature 1

Example of Business Activities Based on

the Value Creation Model ............................................................. 58

Special feature 2

Message from Director of the Board,

Senior Executive Officer of Health Science Strategy ............... 60

Aiming to Be One of

Asia-Pacific's Largest Health Science Companies

by Leveraging Our Proprietary Materials and Technologies, Including LC-Plasma

Toru Yoshimura

Director of the Board,

Senior Executive Officer

Kirin Holdings Company, Limited

Special feature 3

Kirin Group Human Rights Policy ................................................ 62

Special feature 4

Interview with Independent Non-executive Directors .............. 64

Providing a Unique Outside Perspective and

Stimulating Discussion on Achievement of Growth Strategies

Shinya Katanozaka

Independent Non-executive

Director of the Board

(Member of the Nomination and

Remuneration Advisory Committee)

08 Corporate Governance

Corporate Governance Structure /
Response to the Corporate Governance Code	68
Board of Directors /
Evaluation of the Board of Director's Effectiveness	................	69
Management	70
Succession Plan for Executive Directors	72
Basic Policy for the Remuneration of Executive Officers /
Composition of the Remuneration / Procedures for
Determining the Remunerations of Executive Officers /
Policy on Cross-shareholdings	73
Risk Management	74

09 Strategies and Reviews of

Operating Companies

Kirin Brewery ................................................................................... 76

Lion ................................................................................................... 77

Four Roses / Coca-Cola Beverages Northeast ......................... 78

Kirin Beverage................................................................................. 79

Kyowa Kirin...................................................................................... 80

Blackmores / Kyowa Hakko Bio .................................................. 81

10 Disclosure Based on the TCFD and

TNFD Frameworks ................................................... 82

11 Reference

10-Year Summary of Key Financial Data.................................... 88

Overall Business Conditions /

Performance by Reportable Segment ........................................ 90

Changes in Disclosure Segment /

Calculation Method for Kirin Group's GHG Emissions

(Scope 1&2)..................................................................................... 91

Non-financial Information (2023 CSV Commitments) ............ 92

Company & Group Information .................................................... 96

Statement of Responsibility ......................................................... 97

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Message from Top Management Overview of the Kirin Group

INPUT

BUSINESS

OUTPUT / OUTCOME

Special Feature

Governance

Strategies and Reviews of

TCFD・TNFD

Reference

Operating Companies

Refine CSV Management

to Maximize Corporate Value from a Medium-

to Long-term Perspective

Achieved record-high normalized operating profit through CSV-oriented business portfolio management

Yoshinori Isozaki

Representative Director

of the Board & CEO

Kirin Holdings Company, Limited

The year 2023 was also full of many environmental changes. In an unstable international situation with heightened geopolitical risks, soaring raw material and energy costs, global inflation, and significant exchange rate fluctuations are affecting operations. There is also a strong concern about the loss of natural capital and increased risk of disease outbreaks due to climate change. The COVID-19 pandemic has finally subsided, but the pandemic encouraged the diversification of people's consumption behaviors and work styles. Additionally, the rapid evolution of digital ICT (information and communication technology) is significantly changing the way we live and work.

In times of increasing uncertainty, the Kirin Group has set Creating Shared Value (CSV) as the compass of its management. We aim to maximize corporate value through CSV management, in which we use the Group's strengths to solve society's issues and at the same time create economic value as a corporation. In the Long-Term Management Vision, Kirin Group Vision 2027 (KV2027), we declared we would "become a global leader in CSV." We believe that a company should constantly evolve through continuous market creation by innovating in response to social changes and achieve sustainable growth while having a positive impact on society.

Now, regarding business performance, we have achieved our highest-ever normalized operating profit in 2023. We believe this is the result of our unique business portfolio of Alcoholic/Non-alcoholic Beverages, Pharmaceuticals, and Health Science businesses, leveraging our strengths in fermentation and biotechnology, and our flexibility in responding to severe changes in the operating environment.

In particular, Kyowa Kirin, which is responsible for the Pharmaceuticals business, was a major profit driver. Looking back, the Kirin Group entered the Pharmaceuticals business more than 40 years ago with an eye on the future of the domestic alcoholic beverage market, leveraging

its strengths in genetic modification, fermentation, and biotechnology. Although not all were in favor of the move at the time, as it was not profitable for about 10 years, the current Kyowa Kirin was formed in 2008 and has grown to become a major contributor to the Kirin Group's business performance. This is the achievement of ambidextrous management, which is developing the Pharmaceutical business as the second pillar of our operations while the Alcoholic/Non-alcoholic Beverages business remains strong. The Pharmaceuticals business is an important business for the Kirin Group that embodies CSV management, as it solves social issues and at the same time creates economic value as a company.

Additionally, the Kirin Group has a history of taking on the challenge of expanding overseas from early on. We invested in what is now Coca-Cola Beverages Northeast more than 40 years ago and in Australia's Lion and the Philippines' San Miguel Brewery about 20 years ago. In addition, the Pharmaceuticals business is also growing overseas. Today, overseas operations account for more than half of the Group's normalized operating profit and EPS (earnings per share), and the Group's globalization is expected to accelerate in the future. We have not limited ourselves to the domestic Alcoholic/Non-alcoholic Beverage business, but have taken on the challenge of diversifying our business and expanding overseas in the past, which is why we have achieved the results we have today.

CEO Message

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The CEO and COO will work together to further promote CSV management

Message from Top Management Overview of the Kirin Group

INPUT

BUSINESS

OUTPUT / OUTCOME

CEO Message

Pursuing an optimal business portfolio that maximizes corporate value

Special Feature	Governance	Strategies and Reviews of	TCFD・TNFD	Reference
		Operating Companies

Business portfolio approach in the short, medium, and long term

Until Now

Short Term	Medium Term
(2024)	(~2027)

Long Term

(After 10 Years~)

The Kirin Group's Alcoholic/Non-alcoholic Beverages, Pharmaceuticals, and Health Sciences businesses are all at different stages of their business development and play different roles in the short-,medium-, and long-term.

The Alcoholic/Non-alcoholic Beverage business supports the current group management, but since it mainly targets mature markets, we have long predicted that these markets would shrink due to a declining population and changing consumer values. Therefore, we

Value investments in

the human capital responsible for executing strategies

Market environment has changed due to population decline and diversification of tastes and preferences

Entered 40 years ago,

considering the future of the Alcoholic business

Alcoholic &

Non-Alcoholic

Beverages Business

Pharmaceuticals

Business

Health Science

Business

Improve profit contribution by increasing unit price to increase revenue and improving productivity

Aim to maximize the value of global strategic products and launch products in the final phase of development, while expanding the pipeline

Efforts to expand scale and improve profitability to make it a future source of profit

Aim for long-term growth, but there are uncertainties of market decline and risks of new drug development

Expand

profit

contribution

started the Pharmaceuticals business and grew it to what it is now. Looking ahead to the next 10 to 20 years, we believed that nurturing the Health Science business as our third pillar would further ensure the Kirin Group's growth. We solved a big

piece of the puzzle when we added Australia's Blackmores to our Group in 2023. With this, we think that we are now better positioned to execute our growth strategy not only in Japan, but also in the Asia-Pacific and other global markets, and to better define our path toward KV2027.

To achieve our Group's growth, investing in the "human capital" which is responsible for implementing strategies is of the utmost importance. The Kirin Group practices "human capital management" and focuses on developing human capital that are highly specialized so that they can respond to changes in the business

Ongoing initiatives	Structural Reforms	Organizational	Review of the Business Portfolio
across the Group	Capability enhancement

Shifting to a new management structure and enhancing execution

We will pursue an optimal business portfolio that maximizes corporate value by appropriately allocating management resources to each business at different stages. While maintaining financial discipline to achieve an ROIC of 10% or more* from the perspective of investment efficiency, we will execute M&A investments to achieve our medium- to long-term growth strategy and strengthen organizational capabilities through investments in intangible assets.

*We will aim for an ROE of approximately 15%

environment and diverse enough to make the most of different perspectives and values. In particular, we have no time to waste in acquiring human capital that can take charge of DX (digital transformation). Nevertheless, we have been attracting diverse human capital with high expertise not only in the digital field but also in other fields regardless of nationality, motivated by their empathy with the Kirin Group's CSV management. I am convinced that our decision to adopt CSV management in 2013 and to continue it for more than 10 years has not been a mistake.

I served as Kirin Holdings' representative director of the board, president & CEO for nine years since 2015, but we have shifted to a new management structure. Mr. Takeshi Minakata has assumed the new position of representative director of the board, president & COO, and I have taken up the role of representative director of the board and CEO. We will work together to further promote CSV management.

As CEO, I will oversee the entire Group with a bird's eye view and will strive to enhance our corporate value. Specifically, I will enhance dialogue

and long-term by solving social issues and reinvesting the cash obtained as economic value in further growth. We will strive to maximize corporate value by achieving sustainable growth as a company while contributing to the sustainability of society.

We will continue to meet the expectations of our investors by taking steps to become a global leader in CSV. We look forward to your continued support.

Changing Business Environment

with our various stakeholders, including

KV����

����

Record high NOP

Ongoing increase in raw materials and other costs and fluctuation of foreign exchange rates

Revision of liquor taxes in Japan and overseas, NHI price revision, etc.

Changes in economic conditions and demand due to geopolitical risks and inflation in various countries

Increased competition in each market

Health Science

Business

Alcoholic &	Pharmaceu-
Non-Alcoholic
ticals
Beverages
Business
Business

shareholders and investors, and further deepen our relationships with strategic partners to evolve our business portfolio management. As COO, Mr. Minakata will oversee each of the Group's businesses and head office functions, focusing on execution on the ground to refine our businesses and enhance the Group's earning power.

The business environment will continue to change rapidly

We will leverage the Group's organizational capabilities and assets to enhance corporate value

from both short- and medium- to long-term perspectives

8 KIRIN INTEGRATED REPORT 2024

By refining the Kirin Group's CSV management, we will create a cycle that maximizes corporate value not only in the short-term but also in the medium-

KIRIN INTEGRATED REPORT 2024

9

Message from Top Management Overview of the Kirin Group

INPUT

BUSINESS

OUTPUT / OUTCOME

Takeshi Minakata

Special Feature	Governance		Strategies and Reviews of	TCFD・TNFD		Reference
				Operating Companies

Drawing on Experience in Three Domains to Steadily Implement Strategies and Demonstrate Results

Thoughts on new appointment and my background

Representative Director of the Board

President & COO

Kirin Holdings Company, Limited

I was appointed to the position of president & COO by Mr. Isozaki, who used strong leadership to lead the changes at the Kirin Group. Our Group is operating business in the three domains of Food & Beverages, Pharmaceuticals, and Health Science. In addition to progressing the transformation of the business portfolio, it is also necessary to take on the challenge of changing the business model and creating new value in the Health Science domain, our new pillar, and the existing businesses in the Food & Beverages and Pharmaceuticals domains. With my experience and knowledge in the three domains, I will stand at the forefront and achieve the Long-Term Management Vision, Kirin Group Vision 2027 (KV2027). I will implement CSV management that generates social and economic value and, with a strong determination, will grow our business so that our Group's significance will be recognized globally.

I joined Kirin Brewery Company in 1984. I was first assigned to Toride Brewery, after which I was involved in beer brewing at many breweries, gained experience working abroad at Kirin Europe and Lion, and managed the Japanese Alcoholic Beverages and Non-alcoholic Beverages businesses as general manager of the Corporate Strategy Department.

I acted as the president of Myanmar Brewery Limited from 2016. At the time, the democratization of Myanmar was progressing. Everyone at the worksite was

full of energy, and I experienced the joy of sharing values, upholding a vision, and changing the organizational culture with everyone to grow the business as one team.

From 2018, as president of Kyowa Hakko Bio, I tackled quality issues and organizational revitalization head-on with all of the employees. As the president of the Health Science Business Division, I pushed the growth of the Lactococcus lactis strain Plasma [postbiotic] (LC- Plasma) business from 2022. Starting the same year, I made many trips to Blackmores Limited in Australia to make direct negotiations and gain their trust, resulting in the successful acquisition of the company in 2023. Going forward, Kirin Holdings will implement a growth strategy as the company in the Asia-Pacific region with the strongest presence.

Furthermore, as a director at Kyowa Kirin, I was directly involved in a highly specialized business with a managerial perspective, and I supported the growth of Kyowa Kirin as a Global Specialty Pharmaceutical Company.

Upon reflecting on my many years of experience working on production sites, I have realized the importance of going to the gemba, or actual worksites, seeing the actual things happening, and knowing the actual situation. This "three-actuals" principle is the core of my management vision.

Supporting the challenges of employees and creating new innovations

COO Message

Working in each of the Food & Beverages, Pharmaceuticals, and Health Science domains, I have seen what the strengths of the Kirin Group are. They are the Group's sincere commitment to technology, with the fermentation and biotechnology passed down for over a century at its center; our dedication to the quality, safety, and security that have been inherited throughout our long history, and our ability to deliver alluring products and services to consumers and patients through our marketing capabilities.

The Pharmaceuticals business, to which we applied the fermentation and biotechnology we cultivated in our Alcoholic Beverages business, has become our Group's second pillar since it was started more than 40 years ago. The Health Science business that we are developing as our third pillar was also born from these core technologies.

Additionally, our Group has manufacturing that defies conventions and consumer- and patient-oriented challenges in its DNA. I have witnessed moments in

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Message from Top Management Overview of the Kirin Group

INPUT

BUSINESS

OUTPUT / OUTCOME

COO Message

Special Feature	Governance	Strategies and Reviews of	TCFD・TNFD	Reference
		Operating Companies

which innovations were created through technical breakthroughs a number of times, such as KIRIN ICHIBAN, which is created without using second-pressing wort; Kirin Nodogoshi Nama, which is made without malt; Crysvita, a

That being said, I am aware that our Group's challenges are falling short and that we must aim higher. In the Alcoholic Beverages business, it is imperative that we provide value with higher added value based on a

Issues and challenges facing the Kirin Group

representative medicine that creates life-changing value for patients; and LC-Plasma, discovered for the first time ever as a material that activates a leader of the immune cells. The feelings of enjoyment in manufacturing and happiness received from seeing the joy of consumers and patients that come from these innovations are shared throughout all worksites, in all business domains, driving us to take on more challenges.

deeper understanding of consumers if we are to survive the shrinking market. We must also further globalize the Pharmaceuticals business and develop its pipeline. As for the Health Science business, it is vital that we are constantly creating new innovations and quickly achieving their profitability. My role is to lead and support each and every one of these businesses so that they grow autonomously and improve their profitability.

The results of the business portfolio management the Kirin Group implemented in 2023 showed that our businesses achieved record-high profitability. They also clearly revealed the issues we should tackle next.

In the Alcoholic Beverages businesses, such as Kirin Brewery and Lion, we will aim to achieve sustainable growth by promoting the growth and premiumization of focus brands and improving productivity. We still have a ways to go in the important task of improving our brand's strength, but we have begun to see good signs and to get

organization and lead to medium- and long-term growth. As the most important topic of management, we will actively invest in human capital in order to realize the Long-Term Management Vision, Kirin Group Vision 2027 and sustainable growth for the Kirin Group.

One of the keys in human capital management is a leader who can draw out the power of worksites. How do we acquire and develop leaders who can take the initiative in implementing strategies in key positions in the organization and draw out the strengths of members?

What I value

a good response. Kirin Brewery's flagship brand, KIRIN ICHIBAN, as well as Kirin Beer Harekaze, which launched in April, have been very successful. Lion's brand Hahn,

As COO, it is my role to assess the actual status of the organization, check the degree to which leadership is being demonstrated, and assign the right people to the

I believe that the key to management is to connect these three elements-strategy, internal processes, and employee mindset and behavior-and implement them. Particularly important of all of these are the mindsets and actions of employees. The gemba worksites that make up the value chain are what generate value, and the creation of this value comes down to the execution ability of each individual.

But how does one raise their ability to execute? There is no magic wand. It is all about each employee taking it into their own hands, having high aspirations and passion, thinking on their own, and acting autonomously. The accumulation of these actions will be a great strength. In other words, the employees play the leading role in management, and the ones supporting the company are the worksites.

My creed in promoting organizational operations is to "value the worksites." The origin of this creed is the thrill and failure I experienced in manufacturing together with my Group colleagues at the many worksites I worked in. I have strived to visit all worksites, regardless of

whether domestic or overseas, to face each challenge head-on, and to be sincere in tackling them. At this year's new employee entrance ceremony in Japan, I told all new employees to "Go to the gemba." "Gemba" is Japanese for worksite, the front lines. The duty of management is to resolve any obstacles at worksites, if there are any, and to rethink internal processes, as necessary. I will value my gut instinct while seeking out real issues and improve the speed at which I introduce countermeasures.

Even when developing management strategies, we must think from the viewpoints of worksites, consumers, and patients. I feel management issues and hints are especially present at worksites. In this era of information overload, it is difficult to get the information we need if we don't understand what kind of information is truly necessary. By making our way to worksites to learn the truth, we can understand the gap between reality and our management goals and then establish a strategy to address it. It is this kind of interactive management that I aim to create.

a health-conscious brand, has also grown significantly. These results are due to focusing investments on priority brands, and we will continue to strive to nurture strong brands.

Regarding Non-alcoholic Beverages businesses such as Kirin Beverage and Coca-Cola Beverages Northeast, we will revise prices in response to the business environment, promote digitalization, optimize the organizational structure, and take other initiatives to improve profitability.

The Pharmaceuticals business will work toward achieving the continuous growth of global strategic products, such as Crysvita, and further developing their pipeline. Additionally, Kyowa Kirin succeeded in acquiring Orchard Therapeutics in January of this year.

In this way, we will put the Health Science business as a new business on a growth trajectory while putting the foundations of existing businesses on a firm footing. We are successfully expanding the LC-Plasma business every year by utilizing it in the foundation of the Group's business: beverages, yogurt, and supplements. Moreover, the PMI (post-merger integration) of Blackmores, acquired last year, is progressing very well, so

right positions, either from within the Kirin Group or from outside.

Another essential in organizational management is the promotion of diversity. In my position as director of Kyowa Kirin, which I held until recently, I realized that Kyowa Kirin's rapid globalization was supported by its management, which had a diverse background and was highly specialized. This is the way the Kirin Group should be, and we will accelerate the creation of a culture in which diversity is a strength in other businesses as well.

My goal is to contribute to society through the Food & Beverages, Pharmaceuticals, and Health Science businesses, and, above all else, I want employees to feel value in and be excited about work because of our unique business portfolio. The innovations that emerge from these businesses will be valued by society, and this will lead to the Group's sustainable growth. In order to become a true global leader in CSV, I will have deeper dialogue with all stakeholders and quickly reflect essentials in

our management while balancing both new and existing businesses and achieving profitable growth.

Becoming a company that contributes to health in various aspects of life

we expect it to be a driver of the Group's growth. The Health Science business is still in its early investment period, and we are aiming to make it profitable as soon as possible.

Going forward, the Kirin Group intends to achieve sustainable growth by contributing to people's health in a variety of ways. We will operate in the three domains of Food & Beverages, Pharmaceuticals, and Health Science, so that we can make contact with our consumers in all aspects of their lives and enhance their quality of life (QOL). Now that we have solidified the direction of this strategy, it is now up to us to execute it and deliver results.

The Alcoholic Beverages and Non-alcoholic Beverages businesses of the Food & Beverages domain bring people together and bring positivity to people's

hearts and society. The Pharmaceuticals domain provides new medicines and services to bring smiles to those battling illnesses. And in regard to the Health Science business, it is contributing to the building of a foundation of health, such as immunity, and the resolution of individual health issues so that people can avoid getting sick. The Kirin Group will grow as a corporation by providing value only it can provide and contributing

to society. It is precisely because we have these three domains that we can realize the CSV management that we are aiming for.

We will continue to make the most of the Group's unique business portfolio assets and strengths, which include R&D, quality assurance, marketing, and other head office functions to improve our corporate value.

What supports our growth is human capital. An organization is its people, and human capital is the true origin of value creation and our competitive edge. Just as I believe in the creed I mentioned previously, raising the capabilities and awareness of each and every employee will empower the entire

I will balance both new and existing businesses

and realize profitable growth.

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Message from Top Management Overview of the Kirin Group

INPUT

BUSINESS

OUTPUT / OUTCOME

Special Feature

Governance

Strategies and Reviews of

TCFD・TNFD

Reference

Operating Companies

Overview of the Kirin Group

The Kirin Group's Businesses

	Health Science domain
	103.4 billion yen
-12.5
billion yen	Pharmaceuticals domain
	442.2 billion yen

About changes in the disclosure segment

The disclosure segments have been changed to include Alcoholic Beverages, Non-Alcoholic

Beginning with the fermentation and biotechnology that the Kirin Group polished through our founding beer business for over a century, we have a globally unique business portfolio that expands the three domains of Food & Beverages, Pharmaceuticals, and Health Science.

Kirin Holdings Company, Limited

Food & Beverages domain (Alcoholic Beverages business)

1045.1 billion yen

	Revenue
	(outer circle)
	billion
	96.0
119.9	2134.4 yen
billion
billion	Normalized OP	yen
yen
	(inner circle)
	billion
	201.5yen
			Food & Beverages domain

Beverages, Pharmaceuticals, and Health Science to suit the Group's strategy since the financial results of FY2023 were announced. The Health Science segment only includes operating companies that are mostly involved with health-related products and services, thus does not include revenue or normalized operating profit of health-related products in the Alcoholic and Non-alcoholic Beverages businesses.

Head Office: NAKANO CENTRAL PARK SOUTH, 10-2, Nakano 4-chome,	Number of Employees: 977 (individual), 30,183 (consolidated)
Nakano-ku, Tokyo 164-0001, Japan	Code Number: 2503 (Listed Stock Market = Tokyo Stock Exchange (TSE) Prime)
Yoshinori Isozaki, Representative Director of the Board & CEO	Number of Consolidated Subsidiaries: 171
Takeshi Minakata, Representative Director of the Board, President & COO	Number of Affiliates: 30
Date of Incorporation: February 23, 1907	(As of December 31, 2023)

52.4	(Non-Alcoholic Beverages business)
billion yen	516.2 billion yen
	(As of December 31, 2023)

P91 See page 91 for details

Food & Beverages domain	Food & Beverages domain
(Alcoholic Beverages business)	(Non-Alcoholic Beverages business)
Revenue	Normalized OP	Revenue	Normalized OP
1,045.1yen	119.9yen	516.2 yen	52.4 yen
billion	billion	billion	billion

This business domain, which includes our founding brewing business, constitutes the backbone of the Group. Since the 1990s onward, we have expanded our Food & Beverages Business into Asia, Oceania, and other parts of the world, manufacturing and marketing products under a broad range of value-added brands.

Main subsidiaries	Main subsidiaries
Kirin Brewery (8 other companies)	Kirin Beverage (10 other companies)
Lion (47 other companies)	Coca-Cola Beverages Northeast
Four Roses

Pharmaceuticals domain

Revenue	Normalized OP
442.2 yen	96.0 yen
billion	billion

We combined our proprietary fermentation and cultivation technologies acquired from the brewing business with biotechnologies to launch research and development of pharmaceutical products in the 1980s. The Pharmaceuticals business has since grown to become one of the Group's core businesses, marketing biomedicines and other products in the global arena.

Providing pharmaceuticals that	Main subsidiaries
Kyowa Kirin
meet unmet medical needs
	(46 other companies)

Health Science domain

Revenue	Normalized OP
103.4 yen	-12.5yen
billion	billion

Our years of research in the Food & Beverages domain, into naturally derived materials, as well as into fermentation and cultivation, have led to the discoveries of Lactococcus lactis strain Plasma (LC-Plasma) and other substances proven to be beneficial to the human body. We intend to continue to make the best use of these assets to evolve the Health Science business into a growth driver for the Group.

Main subsidiaries

Blackmores

Kyowa Hakko Bio (10 other companies)

The fermentation and biotechnology at the root of all three domains

We have combined biotechnology with the technologies for controlling fermentation and culture that originated from beer brewing and applied these to the cultivation of various microorganisms, including lactic acid bacteria. This has led to the discovery and extraction of various useful substances (functional substances) in the field of health sciences. It is also used for the cultivation of animal and human cells in the Pharmaceuticals business, and forms the basis of the Kirin Group's technological capabilities.

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Message from Top Management Overview of the Kirin Group

INPUT

BUSINESS

OUTPUT / OUTCOME

Overview of the Kirin Group

Financial and Non-financial Highlights

Special Feature	Governance		Strategies and Reviews of	TCFD・TNFD		Reference
				Operating Companies

Corporate Policy

Key financial performance indicators

ROIC	Normalized EPS
8.0%	177yen
2024 Guidance → 8.0%	2024 Guidance → 177 yen

*For information on Kirin Group's GHG emissions calculation method and footnotes one through six, please refer to

Key non-financialperformance indicators P91 "Supplemental information for Calculation Method for Kirin Group's GHG Emissions (Scope 1&2)

Environment	Environment	Environment
Climate Change	Containers and Packaging	Water Resources
Reduction ratio of	Percentage of recycled resin	Water use intensity at manufacturing
GHG emission	used in PET bottles*1	sites with high water stress*2
(Scope 1+2) (compared with 2019)	28%	(Water use intensity = Water usage / Production amount)
31%	3.3 kl/kl	Lion
(Australia)
2024 Target → 23%	2024 Target → 38%	2024 Target → Under 3.0 kl/kl
2030 Target → 50%	2027 Target → 50%	2025 Target → Under 2.4 kl/kl
Health Progress of mid-term health science strategy	Employees
Achievement level in supporting the maintenance of immune function	Organizational Culture

Corporate Philosophy

Kirin's enduring, long-term significance

in society

KIRIN brings joy to society by crafting

food and healthcare products

inspired by the blessings of nature and the insights of our customers.

We pride ourselves on offering products based on what people want. We pride ourselves on our ability to harness the blessings of nature through innovative technology. We pride ourselves on delivering tangible satisfaction and quality in everything we make. All of which ensures that we exceed customers' expectations. And naturally, we do not stop there. As we look forward with vision and dreams, we aim to continue offering food and healthcare products that bring new joy to people's lives everywhere. Always a step ahead, the Kirin Group supports health, pleasure and comfort in your life.

"One KIRIN" Values

The way of thinking and feelings that we value as members of the Kirin Group

"Passion. Integrity.

Diversity."

Passion Our determination to continuously provide our customers and society with new value propositions based on innovative ideas, and our enthusiasm to meet goals with pride in the companies we work for and the brands we offer.

Integrity Our gratitude to our stakeholders for always helping us move forward, and our promise to remain honest and humble in every business activity to serve them better.

Diversity Our respect for different perspectives and values that enable constructive discussions, and our belief that the "differences" have the power to change the world and create better solutions.

Corporate Slogan

A simple expression of Kirin's raison d'etre

in the eyes of customers and society

Joy brings us together

Recognition rate of	Number of people continuing	Employee engagement score
LC-Plasma function in Japan	to take LC-Plasma	70%
31%	780,000people
2024 Target	→ 45%	2024 Target → 1,900,000 people	2024 Target → 75%
2027 Target → 50%

Management Issues

for Sustainable Growth P21 (Group Materiality Matrix)

Important challenges to be addressed to operate and develop sustainably with society

*Reviewed and revised with the formulation of each medium-term business plan (every three years)

Long-Term Management Vision

Kirin Group Vision 2027 P22 (KV2027)

A strategy to realize becoming "A global leader in CSV, creating value across our world of Food & Beverages to Pharmaceuticals" by 2027

Employees	Diversity	Employees
Achievement level in "Increasing diversity"	Occupational health and safety
Ratio of female managers in Japan*3	Ratio of mid-career hires in japan*4	Lost time injury frequency rate*5
13.6%	45.4%	1.36
2024 Target → 15%	2024 Target → 30%	2024 Target → 0.95 (0.40 in Japan)

(Results in 2023)

CSV Purpose P21

Guidelines for jointly creating value with society and achieving sustainable growth that act as long-termnon-financial goals for KV2027

CSV Commitment P92

An action plan to realize the CSV Purpose

Kirin Group 2022-2024

Medium-Term Business Plan P22

(2022 MTBP)

A concrete three-year plan for realizing KV2027

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Message from Top Management Overview of the Kirin Group

INPUT

BUSINESS

OUTPUT / OUTCOME

History of Business Development

Special Feature	Governance		Strategies and Reviews of	TCFD・TNFD		Reference
				Operating Companies

1907-1980

Spanning the years from

the foundation of Kirin Brewery to the expansion of the Food & Beverages business

1981-2005

Diversifying into

the Pharmaceuticals and Health Science business

2006-2015

Aggressively pursuing M&A opportunities to become a major player in the global arena

2016-2018 2019-

Restructuring and	Evolving to become
revitalizing Kirin Group	a global leader in CSV

Social events

Company-wide events

Food &

Beverages

1923 Yokohama Yamate Plant damaged due to the Great Kanto Earthquake and relocated to Namamugi, Yokohama (now Yokohama Brewery, Kirin Brewery Company, Limited).

1975 Formulates "Transformation Initiative 1975."

1885 Japan Brewery Co., Ltd. established.

1888 Kirin Beer introduced.

1907 Kirin Brewery Co., Ltd. established.

1928 Kirin Lemon introduced.

1943 Kirin Science Institute (the forerunner of Kirin Central Research Institute) established.

1963 Vending Machine Services Co., Ltd. (the forerunner of Kirin Beverage Co., Ltd.) established.

1972 Kirin Seagram Co., Ltd. (the forerunner of Kirin Distillery Co., Ltd.) established.

1976 Koiwai Dairy Products Co., Ltd. established.

1977 KW Inc. (the forerunner of Coca-Cola Beverages Northeast, Inc.) established.

Pharmaceuticals

Health Science

1981 Formulates the Long-Term Management Vision.

1983 Kirin City Co., Ltd. established.

1998 Acquires a stake in Lion Nathan Limited (now Lion Pty Limited) in Australia.

2002 Acquires business rights of Four Roses in the United States.

2002 Acquires a stake in San

Miguel Corporation in the Philippines.

1982 Establishes Kirin Brewery's Research and Development Division and begins research and development in the Pharmaceuticals domain.

1984 Kirin-Amgen, Inc. established.

1990 Kirin Brewery introduces ESPO®, an erythropoietin (EPO) medicine effective on nephrogenic anemia.

1983 A health food project team is formed under Kirin Brewery's Business Development Division.

1983 Launches Refle, a nutritional food made of beer yeast.

1988 Supported the establishment of La Jolla Institute for Immunology (the forerunner of La Jolla Institute for Allergy and Immunology).

2002 Discovers Lactobacillus paracasei KW3110.

2006 Formulates the Long-Term Management Vision "Kirin Group Vision 2015" (KV2015).

2011 Starts to support areas affected by the Great East Japan Earthquake and begins to adopt CSV management.

2012 Formulates the Long-Term Management Vision "Kirin Group Vision 2021" (KV2021).

2013 Establishes Japan's first CSV-specialized department.

2006 Makes Mercian Corporation a consolidated subsidiary.

2007 Kirin Pharma Co., Ltd. established.

2008 Kyowa Hakko Kirin Co., Ltd. (the forerunner

of Kyowa Kirin Co., Ltd.) established.

2008	Kyowa Hakko Bio Co., Ltd. established.
	Lactococcus lactis strain Plasma discovered.
2010
	Kyowa Hakko Bio's Thai subsidiary, Thai
2015
	Kyowa Biotechnologies Co., Ltd. completes
	construction of amino acid production plant.

2016 Revises to new Long-Term Management Vision "Kirin Group Vision 2021"

(new KV2021).

New Long-Term Management Vision "Kirin Group Vision 2021" (new KV2021).

2016

MTBP

2017 Transfer of Brasil Kirin's Shares.

2018 Launches global strategy products Crysvita and Poteligeo in Europe.

2017 Launches a new brand iMUSE.

2019 Formulates the Long-Term Management Vision "Kirin Group Vision 2027" (KV2027).

2019 Kirin Group's CSV Purpose formulated.

Formulates the Long-Term Management Vision

"Kirin Group Vision 2027" (KV2027).

2019	2022	2025
MTBP	MTBP	MTBP

2020 Makes New Belgium Brewing Company, Inc. a wholly owned subsidiary.

2021 Makes Fermentum Pty Ltd a wholly owned subsidiary.

2022 Makes Bell's Brewery Inc. a wholly owned subsidiary.

*Absorbed by and merged with New Belgium Brewing Company, Inc., in December 2023.

2023 Begins selling Crysvita in vending machines in North America

2024 Orchard Therapeutics becomes a wholly-owned subsidiary.

2019 Kirin Holdings Company establishes the iMUSE Health Science Factory, a new base for manufacturing lactic acid bacteria raw materials, and commences production.

2019 Make a capital and business alliance with FANCL Corporation.

2020 iMUSE accepts notification as Japan's first* foods with function claims for immune function support.

2023 Makes Blackmores Limited a consolidated subsidiary.

*The first-ever Japanese brand to be publicly announced as foods with function claims for immune function support.

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