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2.Soft Drinks, Overseas Alcohol Business, Pharmaceuticals and Other Diversified Businesses
  In the soft drink business, centered on Kirin Beverage Corporation, Kirin will advance proposal-based product development that aims to increase the value of the Kirin brand through Group synergies. Kirin Beverage will release a new product Taishitsucha, which uses lactobacillus KW that is being promoted Groupwide. In addition to integrating the product development functions of Group companies and promoting joint distribution, Kirin aims to strengthen competitiveness by establishing new business schemes that leverage synergies in the domestic alcohol beverages and soft drink businesses, such as the production of Kirin Alkali-Ion-no-Mizu brand of mineral water at Kirin’s Hokuriku Brewery starting in 2006.
  In the overseas alcohol beverages business, Kirin aims to expand Group synergies in Asia and Oceania as target markets. Kirin concluded a capital participation agreement with Dalian Daxue Brewery Co., Ltd. in northeast China, a region we consider strategically important. In the Pearl River Delta region of southern China, Zhuhai Kirin President Brewery Co., Ltd. will release Kirin Chun Zhen Wei Beer, a new draft beer that uses the Ichiban Shibori production process. In the Yangtze River Delta region of eastern China, Kirin will establish Kirin (China) Investment Co., Ltd. in Shanghai as a holding company to manage its alcohol beverage operations throughout China. Kirin (China) Investment Co., Ltd. will be in charge of strategic planning for the whole of China, supervising Group companies and selling Kirin products in the Shanghai market in order to drive the alcohol beverages business forward in China. In addition, Kirin will strengthen its partnership with San Miguel Corporation in the Philippines through the acquisition of additional shares.
  In the pharmaceuticals business, Kirin will make the transition to 100% in-house sales of ESPO(EPO) and GRAN (G-CSF), the respective treatments for renal anemia and leukopenia, from April 2005, as well as continue upgrading its development pipeline such as KRN321, a new generation of renal anemia treatments, human antibody drugs and cell regeneration medication. Kirin also plans to launch full-fledged business development activities in the ASEAN market. In the agribio business, leveraging global Group capabilities, Kirin aims to strengthen the foundation of domestic operations by proposing high-quality, high-value-added products through the branding of production regions for fresh flowers such as Sakurajima Chrysanthemum, as well as sales of potatoes under the Cynthia brand. In the nutritional foods business, Takeda Kirin Foods Corporation, which is involved in the seasonings business, will strive to strengthen competitiveness by improving its ability to propose ingredients in the on-premise market. At the same time, Kirin Well-Foods Co., Ltd., which offers health foods, will promote sales of Kirin Noale, a product that uses lactobacillus KW.

3.Social Responsibility-Promoting Corporate Social Responsibility (CSR)
  Kirin will actively engage in communications with all stakeholders, and makes every effort to promote its own corporate social responsibility within the Group through the establishment of the CSR promoting organization.
  In our environmental activities, we aim to achieve our 2010 targets for reducing CO2 emissions by 2007 through the use of on-site natural gas power generation facilities and installing solar energy generation facilities at the Kobe Brewery in joint research with New Energy and Industrial Technology Development Organization (NEDO). Kirin is examining the business feasibility of natural energy usage with the government while promoting new schemes for environmental communication with NPOs and local governments. In addition, the Company is accelerating water preservation and afforestation activities, and with packaging materials, Kirin is introducing packaging with less impact on the environment and promoting the conservation of resources by reducing six-can packs. To encourage responsible drinking, Kirin is creating an improved video program to prevent underage drinking. Building its own risk model, Kirin is establishing preventative risk management practices. To reinforce compliance, Kirin is setting up training sessions over its intranet. With regard to food safety, Kirin continues to maintain and improve its quality management system throughout the Group. Kirin interacts with communities around its breweries, and continues sponsoring Japan's national soccer team. To promote beer culture, Kirin is exploring the roots of beer in Japan, tracing the origins of ancient Egypt beer and medieval Guruto beer as a part of the ‘Five Thousand Years of Beer’ research project.


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