At Kyowa Hakko Kirin, strategy will be focused on enhancing the product line-up and pipeline in its core therapeutic areas and accelerating the development of strong competitive positions in these areas. Global development will continue to be advanced by strengthening operations in the US and Europe and implementing strategies in Asia that reflect the prevailing environment in each country. In R&D, Kyowa Hakko Kirin will continue efforts to create innovative therapeutic agents to address unmet medical needs.

At Kyowa Hakko Bio, strategy will be focused on achieving further technical developments and enhancing the supply structure, centered on the expanding global market for high added value amino acids.

At Kirin Kyowa Foods, the business will be extended from its current core of processed foods to encompass retail and restaurant food and business development in China. At the same time, continuous measures will be taken to reduce manufacturing costs and improve earnings.

Kirin will take a number of steps to strengthen its management structure in pursuit of long-term global growth. This includes restructuring the Group internally to create Kirin Company as the headquarters in Japan for domestic integrated beverage business. Along with the existing regional headquarters in Oceania, Brazil and Southeast Asia, this will facilitate autonomous development and fast-moving management of companies in close alignment with their local consumers. Kirin Holdings will function as global headquarters to promote synergies by allocating resources and sharing functions across businesses and borders.

A further initiative is the establishment of an International Advisory Board (IAB) to provide advice and recommendations on strategy and governance in respect of the Kirin Group outside Japan, reporting in to Kirin Holdings President and CEO. This board comprises non-executive directors from Lion and Schincariol, and will draw on their broad global business experience to propose ideas and advise on global development.

Kirin aims to enhance returns to shareholders, increasing dividends in accordance with growth in EPS using a target consolidated payout ratio of 30% of normalized EPS. By adopting the concept of normalized EPS, Kirin aims to ensure closer alignment between cash flow generation and dividends, using EPS growth as a management index and as a basis for assessing dividends.

Debt repayment will be balanced with enhancement of shareholder returns and undertaken progressively to improve financial flexibility.

Dividend payments and debt repayment will be prioritized, and additional shareholder returns, including share buybacks, will also be considered.

In support of Kirin’s brand-centered management approach, through which Kirin aims to deepen engagement with stakeholders and take its CSR activities to the next level, Kirin is adopting a “CSV” (Creating Shared Value) approach to business. CSV is a management concept that combines two ideas: engaging in societal issues to create social value, and improving a company’s competitive position. With CSV, Kirin aims to co-create value with a wide range of stakeholders, primarily through its overall business activities along the value chain. Kirin’s defined stakeholder groups are the same throughout the organization: customers, employees, shareholders and investors, business partners, communities, and the environment. From among the issues pertinent to each stakeholder group, Kirin will address four core themes (protecting the environment, improving food safety and security, protecting human rights and working conditions, and prevention of corruption in all its forms) and two additional themes associated specifically with Kirin (promoting health, and strengthening bonds between people and society).