The Kirin Group CSR Report 2008 Inquiries Kirin Holdings Company, Limited CSR Management Dept. 10-1 Shinkawa 2-chome, Chuo-ku, Tokyo 104-8288, Japan Tel: +81-3-5540-3454 Fax: +81-3-5540-3550 http://www.kirinholdings.co.jp/english/index.html Publication information Latest publication: July 2008 Next scheduled publication: July 2009 Company Profile Editorial Policy The Kirin Group has positioned CSR as a subject of approaches Trade Name Kirin Holdings Company, Limited for remaining trusted by society at large, and is pursuing various activities to this end. In this report, which was prepared February 23, 1907 to depict the facts of these activities, we incorporated the On July 1, 2007, accompanying the shift to a pure holding Date of Incorporation company structure, Kirin Holdings Company, Limited comments of many Group employees and endeavored to profile changed its name from Kirin Brewery Company, Limited. what we value in plain and simple terms. 10-1 Shinkawa 2-chome, Chuo-ku, Tokyo Location of Head We also included the views expressed by third parties on each Office 104-8288, Japan Tel: +81-3-5541-5321 (Information desk) activity. President and CEO Kazuyasu Kato ● Period reported FY2007 (January 1 to December 31, 2007 including some activities and initiatives taken in 2008) Paid-in Capital 102,045,793,357 yen ● Scope of this report Sales Consolidated: 1,801,164 million yen Kirin Holdings Company, Limited and its main operating (January 1 to December 31, 2007) companies Strategic management and oversight of Main Businesses Group, and provision of specialized services ● Guidelines referenced “Environmental Reporting Guidelines 2007” by the Ministry of 256 the Environment Number of Employees (Group’s consolidated employee number : 27,543) “Sustainability Reporting Guidelines (version 3)” by the GRI (Global Reporting Initiative) Consolidated Group Consolidated subsidiaries: 345 Companies Affiliates under the equity method: 22 The comparison table for the GRI guidelines is available on our website. (as of December 31, 2007) ● Next scheduled publication Sales (consolidated) May 2009 (100 million yen) 20,000 18,011 16,659 15,975 16,548 16,322 15,000 10,000 5,000 2003 2004 2005 2006 2007 Number of employees (consolidated) (Employees) 30,000 27,543 23,332 25,000 22,852 22,160 22,089 20,000 15,000 10,000 5,000 2003 2004 2005 2006 2007 Ordinary income (consolidated) (100 million yen) 1,500 1,208 1,233 1,148 1,200 1,065 946 900 600 300 2003 2004 2005 2006 2007 Kirin Group CSR Report 2008 About the Kirin Group CSR Report Index Contents キ リ ン グ ル ー プ CS R レ ポ ー ト 2 0 0 8 わたしたちが大切にしていること Along with our transition to a pure holding 2 Company Profile and Editorial Policy company structure in July 2007, Kirin Holdings is 3 About the Kirin Group CSR Report/ Environment Report going to lead publication of the Kirin Group CSR of Operating Companies/ INDEX Report beginning with this year’s edition. Detailed 4 information on the Group’s wide-ranging activities Commitment of Top Management can be found on the website of Kirin Holdings. Dialogue among Kirin Group Executives This report sets forth the major such activities in Outline of the Kirin Group fiscal 2007. Management Commitment of Top Commitment of Top For more details, please access our website at the following URL. 8 The Kirin Group’s CSR http://www.kirinholdings.co.jp/ Stakeholder Meeting The Kirin Group’s CSR The Kirin Group’s Features of the website (Only available in Japanese) 11 2008 Highlights ● Emphasis on comprehensiveness and display of more items ① Approaches to Food Safety ● More detailed infomation on the Commitment of Top Management and ② Measures for a Customer-Focused Approach Highlights 2008 Highlights ③ Approaches to Respect for Diversity ● Profile of the specific activities of Kirin Holdings and each Group company ● Editorial arrangement facilitating access to the target information 18 Together with Our Customers ● Periodic updating to provide the latest CSR information and timely Practice of a customer-focused approach and information disclosure steady focus on quality Increase in customer satisfaction Customers Involvement with clients with Our Together Approaches to improvement of quality 21 Together with Our Shareholders Communication with Shareholders and Investors Shareholders Together with Our Together 22 Together with Society Approaches to the Global Environment and Social Contribution Approaches to the environment Approaches to alcohol-related problems Environment Report of Operating Companies Approaches to dietary culture Support for sports with Society Together Social activities by Group companies Environment reports regarding our main operating companies such as Kirin Brewery, Kirin Beverage, and Mercian Corp. are available 32 Together with Our Employees in Japanese on their website as below. Making Kirin a Great Place to Work Employees Kirin Brewery Environment Report by Society Approaches for Remaining Trusted http://www.kirin.co.jp/csr/env/report/ with Our Together KIRIN Beverage Environment Report 34 http://www.beverage.co.jp/csr/environment/index.html Management system Corporate governance and CSR promotion structure Risk management/compliance Mercian Corp. Environmental Report http://www.mercian.co.jp/company/eco/index.html Management System INDEX Commitment of Top Management Dialogue among Kirin Group Executives Senji Miyake Ken Yamazumi President, President and Chairman of the Board Kirin Brewery Co., Ltd. of Directors, Kirin Pharma Co., Ltd. Dialogue among Kirin Group Executives Commitment of Top Commitment of Top Management Kazuyasu Kato Shinji Saito Yuji Okabe President and CEO, President, President and CEO, Kirin Holdings Co., Ltd. Kirin Beverage Co., Ltd. Mercian Corporation improved productivity make up the third trunk What the word “trust” on the right. While deploying the business strategy as the means to the Kirin Group core element, the Group’s employees and companies must comply with all pertinent In July 2007, the Kirin Group established Kirin Holdings Company, Limited laws and regulations by retaining a keen and shifted to a pure holding company structure. Perceiving this change sense of ethics, the former as responsible as a fresh start for the Group, the executives of Kirin Holdings and major adults and the latter as good corporate operating companies came together to share views on the meaning of citizens. They must also do their utmost to “trust” in the Group. erect a scheme for perfect quality control in accordance with Kirin Brewery’s guidelines for quality. Building on this basis, it is also vital to —The Kirin Group constructed Kirin of its founding, and we want to remain a take action on social issues such as the Group Vision 2015 (KV2015)(*1) as its long- corporate group that will still be trusted by eradication of drunken driving and promotion term business framework. How does it our customers another 100 years from now. of proper enjoyment of alcoholic beverages position CSR activities in the context of To this end, I am convinced that we must tie in keeping with our responsibilities as a this vision? all of our business activities into the fabric of manufacturer of the same. CSR activities. In other words, I think it is critical for us to Kato For the Kirin Group, CSR is not just Miyake Kirin Holdings and we operating consider what Kirin Brewery can accomplish another component within the KV2015 companies share objectives on KISMAP(*2), in light of the Group guidelines for CSR scenario; I would identify it with the very the Group’s strategic map. There are three key activities and then to take concrete action to practices that keep us trusted by society as “trunk” elements in the process of attaining those ends in our business operations. a whole. It is one and the the ultimate goal. The first is the business Yamazumi Kirin Pharma is a pharmaceutical same as our activities per se. This is a question of how to approach company, and our outlook on CSR and “trust” at the foundation of customers and reach the goal, and constitutes perhaps differs to some degree from those the entire target vision. the central trunk. The other two trunks are on among other Kirin Group companies handling In 2007, Kirin Brewery both sides. Specifically, the CSR trunk is on food and beverages. But at the same time, celebrated the centennial the left, and tasks such as cost reduction and we are a member of the Kirin Group, and Kirin Group CSR Report 2008 (*1) [KV2015] (*2) [KISMAP] The long-term business framework for the Group extending to 2015. An acronym for the Kirin Innovative & Strategic Management Action Amid the momentous changes under way in the social environment, Program, a management mechanism applying balance score cards. the Group is committed to ongoing and continuous provision of value to its customers. Formulated from a long-term perspective, KV2015 articulates the target vision for the Group to serve as the basis of its management over the coming years. therefore also differ somewhat from an and supplying products in the form of When they finally reach the hands of our ordinary pharmaceutical company. consumer goods, and I think the customers, our products help to enrich their We define our customers as all people fighting trustworthiness of our products per se is the lifestyle by providing satisfying flavors, good disease. This includes physicians and nurses basic requirement. Without it, we could never cheer, and happy times. In my opinion, the Management as well as patients. It also encompasses hope to be trusted by customers. slogan “tastes that make you smile” is a Commitment of Top the families of patients who are fighting the Throughout its 100-year history, the Kirin Group verbal expression of the ideal to which Kirin Dialogue among Kirin Group Executives disease together with them.