KIRIN CSV R E P O
R T 2 0 1 9 Kirin Holdings Company, Limited KIRIN CSV REPORT 2019
Printed in Japan Kirin Holdings Company, Limited Published June 28, 2019 Corporate slogan
About the legendary kirin
The KIRIN C the KIRIN It was portrayed as a merciful animal that could fly, keeping its feet off the ground to avoid stepping on insects and grass. The KIRIN Since first appearing on the Kirin Beer label in 1888, a KIRIN has been featured on Kirin products for over 130 years, C Inspired by this symbol, all members of the Kirin Group will Joy brings us together
This phrase captures the Kirin Group’s spirit, guiding us into the future. We believe that no matter how much the world may change, the joy of living a full and healthy life, in mind and body, brings us happiness -- for ourselves, for those we love, and for the whole society. Joy is the essence of what holds people and society together. Joy inspires us and generates positivity. The joy of healthy living. The joy of living in harmony with our local communities. The joy of connecting with other people. Kirin promises to keep working to spread the benefits of joy.
1 KIRIN CSV REPORT 2019 Corporate slogan
About the legendary kirin
The KIRIN C the KIRIN It was portrayed as a merciful animal that could fly, keeping its feet off the ground to avoid stepping on insects and grass. The KIRIN Since first appearing on the Kirin Beer label in 1888, a KIRIN has been featured on Kirin products for over 130 years, C Inspired by this symbol, all members of the Kirin Group will Joy brings us together
This phrase captures the Kirin Group’s spirit, guiding us into the future. We believe that no matter how much the world may change, the joy of living a full and healthy life, in mind and body, brings us happiness -- for ourselves, for those we love, and for the whole society. Joy is the essence of what holds people and society together. Joy inspires us and generates positivity. The joy of healthy living. The joy of living in harmony with our local communities. The joy of connecting with other people. Kirin promises to keep working to spread the benefits of joy.
KIRIN CSV REPORT 2019 2 KIRIN CONTENTS CSV 1 C Editorial Policy 4 Editorial Policy/Publications available on Kirin’s global website 2027 and the new 2019 – 2021 Medium-Term Business Plan REPORT CSV K CEO C O K Past and Present The report also features the Group’s model for creating 9 New Approach to Business K K 2019 Vision 2027, now in its first year in 2019. To signal its new Path to Sustainable Growth K R 11 Message from Top Management K 17 Value Creation Model K CSV R I K V 19 Interview with the Chief Financial Officer 22 N Publications available on Kirin’s global website 23 S O N Kirin’s global website offers a wide range of clearly presented information for stakeholders, including integrated reports published annually, data books, and reports covering environmental initiatives, corporate governance, and financial results. For detailed information about financial results, ESG-related data, and other aspects of the Kirin Group’s performance, please The Stories behind Kirin’s Commitment to Creating Shared Value Kirin Group CSV Purpose and CSV Commitment ESG Data webpage 31 CSV Report 2019 Periodically updated Case1 Health and Well-being: I Published in June 2019 The webpage shows various annual results related to Case2 Health and Well-being: This entire booklet version of this CSV R K https://www.kirinholdings.co.jp/english/csv/esg_gri/ 37 Case3 Community Engagement: Château Mercian featuring financial and non-financial 39 Case4 The Environment: R 2019 – 2021 Medium-Term Business Plan webpage by 1 billion yen through a switchover to electricity https://www.kirinholdings.co.jp/english/ Published in February 2019 Case5 A Responsible Alcohol Producer: S 41 ir/library/integrated/ The webpage features the 2019 – 2021 Medium-Term N Business Plan, a Group’s first three-year plan focused on realizing the Kirin Group Vision 2027 long-term Advances in Each Businesses and Risk Management Environmental Report 2019 https://www.kirinholdings.co.jp/english/ir/policy/medium.html 43 Fiscal 2018 Segment and Business Overview Scheduled for publication in July 2019 45 Fiscal 2019 Market Conditions and Strategies by Segment The report details the Kirin Group’s annual environmental Corporate Governance Report 50 Risk Management Published in April 2019 I K The report provides information on the Group’s approach Corporate Governance C C Discussion with Management https://www.kirinholdings.co.jp/english/csv/report/env/ https://www.kirinholdings.co.jp/english/ir/governance/pdf/ 57 E C S e_governance_report.pdf 58 C S 59 Directors, Audit & Supervisory Board Members, Data Book Consolidated Financial Statements and Executive Officers Periodically updated Published on March 31, 2019 61 I O The book presents financial results for the past 11 years Compiled in accordance with Article 24-1 of the Financial I E Enhancing Management Effectiveness includes Kirin Holding’s financial statements along with https://www.kirinholdings.co.jp/english/ir/library/integrated/ Financial Information https://pdf.irpocket.com/C2503/szUc/YyaT/xmRj.pdf 67 Management Analysis of Financial Position, Operating Results, C Cautionary statement regarding forward-looking statements 73 Investor Information/Company Information S 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 2019 financial results were decided as of the disclosure of financial 74 Third-Party Evaluations results on February 14, 2019.
3 KIRIN CSV REPORT 2019 KIRIN CONTENTS CSV 1 C Editorial Policy 4 Editorial Policy/Publications available on Kirin’s global website 2027 and the new 2019 – 2021 Medium-Term Business Plan REPORT CSV K CEO C O K Past and Present The report also features the Group’s model for creating 9 New Approach to Business K K 2019 Vision 2027, now in its first year in 2019. To signal its new Path to Sustainable Growth K R 11 Message from Top Management K 17 Value Creation Model K CSV R I K V 19 Interview with the Chief Financial Officer 22 N Publications available on Kirin’s global website 23 S O N Kirin’s global website offers a wide range of clearly presented information for stakeholders, including integrated reports published annually, data books, and reports covering environmental initiatives, corporate governance, and financial results. For detailed information about financial results, ESG-related data, and other aspects of the Kirin Group’s performance, please The Stories behind Kirin’s Commitment to Creating Shared Value Kirin Group CSV Purpose and CSV Commitment ESG Data webpage 31 CSV Report 2019 Periodically updated Case1 Health and Well-being: I Published in July 2019 The webpage shows various annual results related to Case2 Health and Well-being: This entire booklet version of this CSV R K https://www.kirinholdings.co.jp/english/csv/esg_gri/ 37 Case3 Community Engagement: Château Mercian featuring financial and non-financial 39 Case4 The Environment: R 2019 – 2021 Medium-Term Business Plan webpage by 1 billion yen through a switchover to electricity https://www.kirinholdings.co.jp/english/ Published in February 2019 Case5 A Responsible Alcohol Producer: S 41 ir/library/integrated/ The webpage features the 2019 – 2021 Medium-Term N Business Plan, a Group’s first three-year plan focused on realizing the Kirin Group Vision 2027 long-term Advances in Each Businesses and Risk Management Environmental Report 2019 https://www.kirinholdings.co.jp/english/ir/policy/medium.html 43 Fiscal 2018 Segment and Business Overview Scheduled for publication in July 2019 45 Fiscal 2019 Market Conditions and Strategies by Segment The report details the Kirin Group’s annual environmental Corporate Governance Report 50 Risk Management Published in April 2019 I K The report provides information on the Group’s approach Corporate Governance C C Discussion with Management https://www.kirinholdings.co.jp/english/csv/report/env/ https://www.kirinholdings.co.jp/english/ir/governance/pdf/ 57 E C S e_governance_report.pdf 58 C S 59 Directors, Audit & Supervisory Board Members, Data Book Consolidated Financial Statements and Executive Officers Periodically updated Published on March 31, 2019 61 I O The book presents financial results for the past 11 years Compiled in accordance with Article 24-1 of the Financial I E Enhancing Management Effectiveness includes Kirin Holding’s financial statements along with https://www.kirinholdings.co.jp/english/ir/library/integrated/ Financial Information https://pdf.irpocket.com/C2503/szUc/YyaT/xmRj.pdf 67 Management Analysis of Financial Position, Operating Results, C Cautionary statement regarding forward-looking statements 73 Investor Information/Company Information S 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 2019 financial results were decided as of the disclosure of financial 74 Third-Party Evaluations results on February 14, 2019.
KIRIN CSV REPORT 2019 4 Past and Present
Creating an optimal business portfolio in response
Building a unique business portfolio spanning from Food & Beverages to Pharmaceuticals
The Kirin Group has been able to flexibly adapt to changes in P P society and the marketplace throughout its history. In the Beverages, operating profit Japan Beer and 19 0 food and other products Spirits Japan Beer tandem with the country’s rapid economic growth, Kirin and Spirits Beer Brewery Co., Ltd., succeeded in greatly expanding its beer 7.7% 35.5% 2018 35.1% production, sales, and shipments. By 1972, the company had 92.3% Japan Non-Alcoholic secured a domestic market share of about 60% for Kirin brand Beverages Consolidated revenue Japan Non-Alcoholic Beverages beer, produced by its network of 12 breweries nationwide. 14.7% Leveraging its ability to adapt and respond to new market ¥1,930.5 billion 9.9% K 1980 Oceania Integrated Beverages Consolidated normalized Oceania Integrated Beverage Company, Ltd., in 1963, which went on to expand Revenue Operating profit Beverages the soft drink business. Then in 1972, the Group launched its ¥855.8 17.1% whiskey business with the establishment of the forerunner to 22.0% billion Pharmaceuticals and ¥199.3 billion Kirin Distillery Co., Ltd. Later, the Kirin Group created its first Bio-Chemicals Pharmaceuticals 19 1 and Bio-Chemicals 17.6% 25.0% diversify its business portfolio. Diversification included entry Others Others into the life sciences market, which was projected to grow 15.2% 8.1% ment of Kyowa Hakko Kirin Co., Ltd., in 2008. Through this New reportable segments steady expansion, the Kirin Group has continued to offer new The breakdown of operating profit by segment equivalent to an amount excluding company-wide expenses and intersegment eliminations spanning from beverages to pharmaceuticals. (amounting to approximately ¥36.3 billion). R
Kirin Brewery Company founded in 1907 amid intense competition in Japan’s beer industry 10.3% Operating profit margin Japan Brewery Co., Ltd., was set up in 1885 by a number of foreign residents in Yokohama’s Yamate district, who envisioned great promise for a beer industry in Japan. To produce a 6.7% style beer that suited the tastes of Japanese consumers, they imported 5.0% 4.8% ingredients and brewing equipment from Germany and hired a qualified German brewmaster. 2015 4.3% 2001 2008 Kirin Beer 1 kirin, a legendary creature from ancient Capital stake acquired Launch of Kirin Chu-hi Hyoketsu E in Myanmar Brewery Ltd. Chinese myths that is said to be a harbinger of good luck. When 1991 Kyowa Hakko Kirin Co., Ltd. Japan’s beer industry entered a time of intense competition after E 2005 Kirin Beverage Co., Ltd. Launch of Kirin Nodogoshi 2007 the turn of the century, a group representing the Iwasaki family One year after the product launch, the (new genre) Kirin Beer 1990 Establishment of Kirin Holdings Co., Ltd. and the companies Mitsubishi and Meidi-Ya took over Japan Brew 1998 1 9 Launch of extremely popular Capital stake acquired in 2006 ery and, while leaving the brewery’s operations intact, established features a larger image of the kirin. This Kirin Ichiban Capital stake acquired Lion Nathan Limited Normalized operating profit from 2017 label remains as the prototype for the (currently Lion Pty Ltd) in Mercian Corporation Kirin Brewery Company in 1907. Kirin Lager Beer label used today.
5 KIRIN CSV REPORT 2019 Creating an optimal business portfolio in response
Building a unique business portfolio spanning from Food & Beverages to Pharmaceuticals
The Kirin Group has been able to flexibly adapt to changes in P P society and the marketplace throughout its history. In the Beverages, operating profit Japan Beer and 19 0 food and other products Spirits Japan Beer tandem with the country’s rapid economic growth, Kirin and Spirits Beer Brewery Co., Ltd., succeeded in greatly expanding its beer 7.7% 35.5% 2018 35.1% production, sales, and shipments. By 1972, the company had 92.3% Japan Non-Alcoholic secured a domestic market share of about 60% for Kirin brand Beverages Consolidated revenue Japan Non-Alcoholic Beverages beer, produced by its network of 12 breweries nationwide. 14.7% Leveraging its ability to adapt and respond to new market ¥1,930.5 billion 9.9% K 1980 Oceania Integrated Beverages Consolidated normalized Oceania Integrated Beverage Company, Ltd., in 1963, which went on to expand Revenue Operating profit Beverages the soft drink business. Then in 1972, the Group launched its ¥855.8 17.1% whiskey business with the establishment of the forerunner to 22.0% billion Pharmaceuticals and ¥199.3 billion Kirin Distillery Co., Ltd. Later, the Kirin Group created its first Bio-Chemicals Pharmaceuticals 19 1 and Bio-Chemicals 17.6% 25.0% diversify its business portfolio. Diversification included entry Others Others into the life sciences market, which was projected to grow 15.2% 8.1% ment of Kyowa Hakko Kirin Co., Ltd., in 2008. Through this New reportable segments steady expansion, the Kirin Group has continued to offer new The breakdown of operating profit by segment equivalent to an amount excluding company-wide expenses and intersegment eliminations spanning from beverages to pharmaceuticals. (amounting to approximately ¥36.3 billion). R
Kirin Brewery Company founded in 1907 amid intense competition in Japan’s beer industry 10.3% Operating profit margin Japan Brewery Co., Ltd., was set up in 1885 by a number of foreign residents in Yokohama’s Yamate district, who envisioned great promise for a beer industry in Japan. To produce a 6.7% style beer that suited the tastes of Japanese consumers, they imported 5.0% 4.8% ingredients and brewing equipment from Germany and hired a qualified German brewmaster. 2015 4.3% 2001 2008 Kirin Beer 1 kirin, a legendary creature from ancient Capital stake acquired Launch of Kirin Chu-hi Hyoketsu E in Myanmar Brewery Ltd. Chinese myths that is said to be a harbinger of good luck. When 1991 Kyowa Hakko Kirin Co., Ltd. Japan’s beer industry entered a time of intense competition after E 2005 Kirin Beverage Co., Ltd. Launch of Kirin Nodogoshi 2007 the turn of the century, a group representing the Iwasaki family One year after the product launch, the (new genre) Kirin Beer 1990 Establishment of Kirin Holdings Co., Ltd. and the companies Mitsubishi and Meidi-Ya took over Japan Brew 1998 1 9 Launch of extremely popular Capital stake acquired in 2006 ery and, while leaving the brewery’s operations intact, established features a larger image of the kirin. This Kirin Ichiban Capital stake acquired Lion Nathan Limited Normalized operating profit from 2017 label remains as the prototype for the (currently Lion Pty Ltd) in Mercian Corporation Kirin Brewery Company in 1907. Kirin Lager Beer label used today.
KIRIN CSV REPORT 2019 6 Past and Present