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KIRIN CSV REPORT 2020

Value Creation Model

Enhancing economic and social value with the concept “creating shared value” positioned at the core of all management

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価値創造モデル

The Kirin Group’s Corporate Philosophy

KIRIN brings joy to society by crafting food and healthcare products inspired by the blessings of nature and the insights of our customers

INPUT

Foundations for driving innovations

Core technology that assures value creation 66.2 billion yen in R&D expenses in fiscal 2019 Core technology that assures value creation 66.2 billion yen in R&D expenses in fiscal 2019
Consumer centric marketing expertiseConsumer centric marketing expertise
Enhancing Kirin Beverage’s marketing capabilitiesEnhancing Kirin Beverage’s marketing capabilities
ICT accelerating
value creation 16.7 billion yen in ICT expenses in fiscal 2019 12.4 billion yen in ICT investment in fiscal 2019 ICT accelerating
value creation 16.7 billion yen in ICT expenses in fiscal 2019 12.4 billion yen in ICT investment in fiscal 2019
Diversity and
inclusion, culture for innovation 31,040 employees (consolidated) (As of December 31, 2019)Diversity and inclusion, culture for innovation 31,040 employees (consolidated) (As of December 31, 2019)
Development of our human resourcesDevelopment of our human resources
BUSINESS

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

Business domains

Food & Beverages (alcoholic and non-alcoholic beverages) PharmaceuticalsFood & Beverages (alcoholic and non-alcoholic beverages) Pharmaceuticals
Health Science Health Science
OUTPUT

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

Providing products and services to build bonds between people

Providing products and services to improve people’s quality of life

Continually developing innovative new drugs

 The indicators are used in the 2019 MTBP. Financial key performance indicators(ROIC,CAGR of
normalized EPS),Non-financial key performance indicators(CSV Commitment,Corporate brand value,Employee engagement score) The indicators are used in the 2019 MTBP. Financial key performance indicators(ROIC,CAGR of
normalized EPS),Non-financial key performance indicators(CSV Commitment,Corporate brand value,Employee engagement score)
OUTCOME

The Kirin Group gives value back to the society it serves

Economic value

Maximized cash flows

Social value

CSV Purpose

Health and Well-being

The Environment

Community
Engagement

A Responsible
Alcohol Producer

CSV Stories

By solving issues confronting people today and creating new value, the Kirin Group is aiming to evolve as a global leader in creating shared value (CSV). Toward that end, we formulated our CSV Purpose, which includes the Group’s long-term direction, and our CSV Commitment as a medium- to long-term action plan. This section introduces various business activities aimed at realizing the commitment and the Group’s framework for promoting CSV.

Kirin Group corporate governance

Corporate GovernanceCorporate Governance
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Message from the Chief Financial Officer Create a foundation for the Group aimed at achieving new growth Focusing on normalized EPS and ROIC to maximize corporate value Director of the Board, Senior Executive Officer & CFO Noriya Yokota
Corporate Governance Interview with the Non-executive Director Strengthening effectiveness of the Board’s
internal control to enhance value creation Non-executive Director Chairman of the Board Masakatsu Mori

Editorial Policy

The Kirin Group Vision 2027 (KV2027) sets the long-term management vision for the Group to become a Global Leader in CSV by creating value in the Food & Beverages and Pharmaceuticals domains. In the 2020 edition of the KIRIN CSV Report, the CEO and CFO of Kirin Holdings show the results of the first year under KV2027 and describe actions taken to strengthen the business foundation for fulfilling the medium-term business plan. The report also includes a special feature on the Company’s growth strategies in the Health Science domain applying our strengths in fermentation and biotechnology. In these changing and uncertain times, we are applying the KIRIN DNA and the Group’s capabilities as an organization to use our businesses to address social issues and to carry out CSV management. We hope this report will help readers understand the intentions and the aspirations of the Kirin Group.

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Value Creation Model

Segment and Business Overview

Risk Management

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