The Kirin Group has been aggressively expanding its food and health business in Asia and Oceania. We pursue growth opportunities in these regions by working proactively and closely with our local corporate partners to achieve greater synergy. This approach enables us to continue to offer products and services that effectively meet local customer needs as well as to increase our corporate value. In addition, we have been implementing a business model built upon our strategy for becoming an integrated beverage group with the goal of generating 30%* of the Group's sales from overseas in 2015.

*Liquor tax excluded

We have merged our alcohol beverages business and soft drinks and foods business in Oceania under Lion Pty Ltd to drive our strategy of becoming an integrated beverage group in the region. Lion boasts a portfolio of market-leading, household-name brands in beer, wine, spirits, milk, fresh dairy foods, and juice in Oceania. To grow sociability and wellbeing, Lion is committed to continually innovating to meet the current and future needs of its consumers, and to drive value in the market through its brands, for the benefit of all our stakeholders.

Kirin (China) Investment Co., Ltd. oversees key operations of the Kirin Group's alcohol beverages business in China—the manufacture and marketing of alcohol beverage products under the Kirin and other brands in the Yangtze Delta and Zhu Jiang Delta regions. In August 2011, Kirin Holdings and China Resources Enterprise, Ltd. established China Resources Kirin Beverages (Greater China) Co., Ltd., a joint venture for the non-alcohol beverages business in China. Kirin has been marketing high-quality, great-tasting non-alcohol beverage products, including bottled black tea and canned coffee, in Shanghai, Guangzhou, and Beijing; China Resources Enterprise, Ltd. has been striving to expand its core bottled water business in Guangdong Province and in large cities in the rest of China. Both companies have brought substantial value to the joint venture in terms of resources and expertise, and they have joined forces to create new product categories in a compressed time frame in China's fast-growing non-alcohol beverage market.

Kirin works with Philippines-based San Miguel Brewery, Inc. to create synergy to pursue the alcohol beverages business in Southeast Asia, a region expected to see dramatic growth in beer consumption. In the non-alcohol beverages business, Kirin teams with Fraser and Neave Ltd., a Singapore-based leading beverage company, to create a broader business basis in the Singapore and Malaysian markets, and intends to offer juice and bottled-tea products to meet the needs of customers in Thailand and Vietnam. Kirin Holdings Singapore Pte. Ltd., a newly established regional headquarters responsible for the Southeast Asian market, accelerates business decision-making specific to the region.

The Kirin Group has been developing partnerships with local beverage companies throughout Asia and Oceania with the goal of becoming a leading company in the regions. At the same time, the Group has been pursuing opportunities to expand its business into other regions. In November 2011, Kirin Holdings acquired Schincariol in Brazil and made it a wholly-owned subsidiary. Schincariol has a broad portfolio of household beverage brands in diverse categories ranging from beer and soft drinks to juices and mineral water. As Kirin and Schincariol are engaged in the integrated business of developing, manufacturing, and marketing alcohol and non-alcohol beverage products, both companies have a lot they can do together to drive their businesses, including offering new value and joy to customers in Brazil.