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KYOWA HAKKO Europe Gesellschaft mit beschränkter Haftung

Düsseldorf

Befreiender Konzernabschluss zum Geschäftsjahr vom 01.01.2021 bis zum 31.12.2021

SUMMARY OF CONSOLIDATED FINANCIAL RESULTS FOR THE YEAR ENDED DECEMBER 31,2021 (UNDER IFRS) (UNAUDITED)

(English Translation)

Fiscal year ended December 31, 2021

KIRIN HOLDINGS COMPANY, LIMITED

NAKANO CENTRAL PARK SOUTH, 10-2, Nakano 4-chome, Nakano-ku, Tokyo, Japan (URL https://www.kirinholdings.com/en/)

Code No.:	2503
Shares Listed:	Tokyo, Nagoya, Sapporo and Fukuoka
Representative:	Mr. Yoshinori Isozaki, President and CEO
For further information, please contact:	Mr. Nobuhiko Hori,
	General Manager of Corporate Communications Department
	Telephone: +81-3-6837-7015 from overseas

Scheduled date of general meeting of shareholders held:	March 30, 2022
Commencement date of dividend distribution scheduled:	March 31, 2022
Submission date of securities report scheduled	March 30, 2022
Preparation of supplementary documents to the financial results:	Yes
Holding of financial results presentation (for institutional Investors and analysts):	Yes

1. Consolidated business results and financial position for the current fiscal year (January 1, 2021 - December 31, 2021)

					[Unit: Japanese yen (¥)]
(1) Results of operations:				(Amounts are rounded to the nearest ¥1 million.)
	(Percentage change compares current results with those of the same period of the previous year)
	Revenue	Percentage change	Normalized operating profit	Percentage change	Profit before tax	Percentage change
	(¥ millions)	(%)	(¥ millions)	(%)	(¥ millions)	(%)
Fiscal year ended
December 31, 2021	1,821,570	(1.5)	165,430	2.0	99,617	(20.0)
December 31, 2020	1,849,545	(4.7)	162,115	(15.0)	124,550	6.6

	Profit	Percentage change	Profit attributable to owners of the Company	Percentage change	Total comprehensive	Percentage change
	(¥ millions)	(%)	(¥ millions)	(%)	(¥ millions)	(%)
Fiscal year ended
December 31, 2021	68,424	(31.5)	59,790	(16.9)	117,316	27.7
December 31, 2020	99,842	22.6	71,935	20.6	91,834	16.4

	Basic earnings per share	Diluted earnings per share	Ratio of profit to equity attributable to owners of the Company	Ratio of profit before tax to total assets	Ratio of normalized operating profit to revenue
	(¥)	(¥)	(%)	(%)	(%)
Fiscal year ended
December 31, 2021	71.73	71.70	6.9	4.0	9.1
December 31, 2020	85.57	85,54	8.2	5.1	8.8
Reference: Share of profit of equity-accounted investees			Fiscal year ended December 31, 2021		¥34.490 million
			Fiscal year ended December 31, 2020		¥24,752 million

Operating profit	Fiscal year ended December 31, 2021	¥68,084 million	(33.8%)
	Fiscal year ended December 31, 2020	¥102,919 million	17.3%
Ratio of operating profit to revenue	Fiscal year ended December 31, 2021	3.7%
	Fiscal year ended December 31, 2020	5.6%

^* Normalized operating profit is a profit indicator for measuring recurring performance which is calculated by deducting cost of sales and selling, general and administrative expenses from revenue.

(2) Financial position:

	Total assets	Total equity	Equity attributable to owners of the Company	Equity ratio attributable to owners of the Company	Equity per share attributable to owners of the Company
	(¥ millions)	(¥ millions)	(¥ millions)	(%)	(¥)
As of
December 31, 2021	2,471,933	1,147,990	894,179	36.2	1,072.69
December 31, 2020	2,459,363	1,095,939	838,584	34,1	1,005.96

(3) Cash flows:

	Cash flows from operating activities	Cash flows from Investing activities	Cash flows from financing activities	Cash and cash equivalents at end of year
	(¥ millions)	(¥ millions)	(¥ millions)	(¥ millions)
Fiscal year ended December 31, 2021	219,303	(56,408)	(180,463)	149,488
Fiscal year ended December 31, 2020	164,839	(115,981)	(52,474)	161,667

2. Dividends

	Annual dividends
	First quarter	Second quarter	Third quarter	Year-end	Total
	(¥)	(¥)	(¥)	(¥)	(¥)
Fiscal year ended December 31, 2020	-	32.50	-	32.50	65.00
Fiscal year ended December 31, 2021	-	32.50	-	32.50	65.00
Fiscal year ending December 31, 2022 (Forecast)	-	32.50	-	32.50	65.00

	Total amount of dividends (¥ millions)	Dividend pay-out ratio (%)	Ratio of dividends to equity attributable to owners of the Company (%)
Fiscal year ended December 31, 2020	54,185	76.0	6.3
Fiscal year ended December 31, 2021	54,208	90.6	6.3
Fiscal year ending December 31, 2022 (Forecast)		47.3

3. Forecast consolidated business results for the next fiscal year (January 1, 2022 - December 31, 2022)

(Percentage change compares forecast results with actual results of the previous year)

	Revenue	Percentage change	Normalized operating profit	Percentage change	Profit before tax	Percentage change
	(¥ millions)	(%)	(¥ millions)	(%)	(¥ millions)	(%)
Fiscal year ending December 31,2022	1,950,000	7.1	166,000	0.3	177,000	77.7

	Profit	Percentage change	Profit attributable to owners of the Company	Percentage change	Basic earnings per share
	(¥ millions)	(%)	(¥ millions)	(%)	(¥)
Fiscal year ending December 31, 2022	139,500	103.9	114,500	91.5	137.36

Reference:

Operating profit

Fiscal year ending December 31, 2022

¥143,000 million

110.0%

^* Notes

(1) Changes in significant subsidiaries for the fiscal year ended December 31, 2021	Yes
(Changes in specified subsidiaries accompanying change in scope of consolidation):

Newly included:-

Excluded: 2 companies

Lion-Dairy & Drinks Pty Ltd

Berri Pty Limited

(2) Changes In accounting policies and changes in accounting estimates

i. Changes in accounting policies required by IFRS:	None
ii. Changes in accounting policies due to other reasons:	None
iii. Changes in accounting estimates:	Yes

For details, please see "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CHANGES IN ACCOUNTING ESTIMATES)" on page 19.

(3) Number of shares outstanding (ordinary shares)

i. Number of shares outstanding at the end of the period (including treasury shares)
As of December 31, 2021	914,000,000 shares
As of December 31, 2020	914,000,000 shares
ii. Number of treasury shares at the end of the period
As of December 31, 2021	80,414,185 shares
As of December 31, 2020	80,385,352 shares
iii. Average number of shares during the period
For the fiscal year ended December 31, 2021	833,598,578 shares
For the fiscal year ended December 31, 2020	840,688,862 shares

Note: Number of treasury shares at the end of the period includes shares held in the BIP (Board Incentive Plan) Trust (385,135 shares at December 31, 2021 and 388,000 shares at December 31, 2020).

These shares are excluded in calculation of the average number of shares during the period,

^* The summary of consolidated financial results Is not subject to audit by certified public accountants or an audit corporation.
^* Information about proper usage of forecast business results, and other special instructions
⁽¹⁾ The statements concerning future performance that are presented In this document are based on judgments using information available to Kirin Holdings and the Kirin Group as of the release date of this material. Certain risks and uncertainties could cause the results of Kirin Holdings and the Kirin Group to differ materially from any projections presented herein. These risks and uncertainties include, but are not limited to, the economic circumstances surrounding the Company's businesses, market trends, and exchange rates.
⁽²⁾ The Company will post the Supplementary Documents to the Financial Results today, Monday, February 14, and will post the presentation materials and the main Q&A from the financial results presentation content (video) to be held on Tuesday, February 15, on the Company's website as soon as possible, (URL of the Company's website) https://www.kirinholdings.com/en/investors/

INDEX

1. KIRIN GROUP'S CURRENT BUSINESS PERFORMANCE

(1) STATEMENT OF BUSINESS ACTIVITIES AND RESULTS

(2) FINANCIAL POSITION

(3) BASIC POLICY AND DISTRIBUTION OF PROFITS AND DIVIDEND FOR 2021 AND 2022

2. BASIC RATIONALE FOR SELECTION OF ACCOUNTING STANDARDS

3. CONSOLIDATED FINANCIAL STATEMENTS

(1) CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(2) CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND COMPREHENSIVE INCOME

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(3) CONSOLIDATED STATEMENT OF CHANGES IN EQUITY.

(4) CONSOLIDATED STATEMENT OF CASH FLOWS

(5) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(GOING CONCERN ASSUMPTION)

(CHANGES IN ACCOUNTING ESTIMATES)

(SEGMENT INFORMATION)

(PER SHARE INFORMATION)

(SIGNIFICANT SUBSEQUENT EVENTS)

4. OTHER

CHANGE OF DIRECTORS AND BOARD MEMBERS

1. KIRIN GROUP'S CURRENT BUSINESS PERFORMANCE

(1) STATEMENT OF BUSINESS ACTIVITIES AND RESULTS

Like 2020, 2021 was greatly affected by COVID-19. A new COVID-19 variant is spreading worldwide, and the virus is still not under control. In this environment, the Kirin Group moved forward toward becoming a leading global CSV'1 company based on its Kirin Group Vision 2027 (KV 2027), long-term management statement. Seeing the solving of social issues as opportunities for growth, Kirin Holdings has sought to achieve both social and economic value in the three domains of Food & Beverages, Pharmaceuticals, and Health Science, which Kirin Holdings has cultivated through its strengths in fermentation - from its beginnings as a beer business - and biotechnology.

1. Food & Beverages Domain

In the Food & Beverages business, Kirin Holdings built a strong brand system by concentrating investment in core products, while focusing on providing products and services that lead to the creation of new value, thereby mitigating the decline in earnings caused by COVID-19.

2. Pharmaceuticals Domain

In the Pharmaceuticals field, the global strategic products grew steadily as a result of the 'ongoing transformation to a global organizational structure' that began in 2019. Kirin Holdings also made steady progress in the development of next-generation strategic products.

3. Health Science Domain

This was a year in which Kirin Holdings' efforts to date to promote ingredient research and product development using R&D technology - one of its strengths - yielded great results. LC-Plasma ^*2 (Lactococcus lactis strain Plasma), a strategic ingredient in the immunology field, took the Gold Prize the '1st STOP Infectious Disease Grand Prix in the '1st Japan Resilience Awards 2021' conducted by the Resilience Japan Promotion Council ^*3. LC-Plasma was highly commended for factors including its discovery, product development into a functional food. In addition, Kirin Holdings expanded its lineup of products containing LC-Plasma, and with the rise in health consciousness, sales grew significantly, up 50% from the previous year, contributing to solving consumers' health issues.

Despite the above efforts, consolidated revenue decreased due to the impact of the re-emergence of COVID-19 on sales of alcohol beverages and soft drinks in Japan and overseas, and the sale of Lion's dairy drinks business.

The Japan Beer and Spirits business and Myanmar Brewery ^*4 posted a decrease in profits, Coke Northeast ^*4 the Oceania Adult Beverages business, as well as Kyowa Hakko Bio ^*4 all saw an increase in profits, resulting in an overall increase in normalized operating profit ^*5.

Profit attributable to owners of the Company decreased due to the recording of an impairment loss in the Myanmar business.

On the other hand, Kirin Holdings received high marks from society in terms of ESG (Environment, Society, and Governance). In the Environment area, Kirin Holdings has been working to reduce GHG ^*6 emissions, promote the use of renewable energy, and recycle and promote a virtuous 'cycle of recycling'among other initiatives in line with the Kirin Group Environmental Vision 2050 formulated in February 2020. As a result. Kirin Holdings received the Gold Award in the Environmentally Sustainable Company category at the Finance Awards Japan (Minister of the Environment Award). In addition. Kirin Holdings has been selected for the CDP's ^*7 'A List' in both climate change and water security for the third year in a row.

In the Society area, Kirin Holdings was selected as a 'Nadeshiko Brand' among publically listed companies that excel in promoting the advancement of women. For the fifth year in a row, Kirin Holdings was recognized as a 'Certified Health & Productivity Management Outstanding Organization (Large Enterprise Category [White 500])' (Ministry of Economy, Trade and Industry) for practicing particularly excellent health management.

Furthermore, Kirin Holdings has received high praise for its overall ESG initiatives, with a focus on Governance, The company's overall ESG initiatives - with a focus on governance - were highly commended; and for the third year in a row it received the highest ranking in the Nikkei Research Inc.'s SDGs Management Survey, which commends corporate efforts to meet the Sustainable Development Goal's (SDGs). In the MSCI ESG Index ^*8 - which is calculated by Morgan Stanley Capital International (MSCI) and is also used by Japan's Government Pension Investment Fund - Kirin Holdings received the 'AA' rating, which is in line with the world's leading CSV companies. In the midst of an uncertain social climate, Kirin Holdings has been able to increase employee engagement ^*9 in its management by promoting the significance of its CSV management initiatives.

Employee engagement ^*9 , which is a key performance indicator in the Kirin Group 2019-2021 Medium-Term Business Plan (2019-2021 MTBP), was at the same level as in 2020, when the score had improved significantly. In the midst of an uncertain social climate, Kirin Holdings has worked to disseminate the significance of its commitment to CSV management, which has increased employee engagement with management and helped Kirin Holdings achieve the goals set in the 2019-2021 MTBP.

¹ Creating Shared Value: Combined added value for consumers as well as for society at large.
² Lactococcus lactis strain Plasma is a lactic acid bacterium that supports the maintenance of immune function in healthy people. Named after plasma cytold dendritic cells (pDCs), which are immune cells, the Kirin Group has published many papers and presented at many conferences in collaboration with universities and research institutions in Japan and overseas.
³ The JRPJC is an organization established for the purpose of building a resilient nation through the collective efforts of industry, academia, government, and the private sector. Its goal is to promote and achieve the Japanese government's Fundamental Plan for National Land Resilience - itself based on the Basic Act for National Resilience Contributing to Preventing and Mitigating Disasters for Developing Resilience in the Lives of the Citizenry.

⁴ Myanmar Brewery, Kyowa Hakko Bio, and Coke Northeast are subsidiaries listed in the "Other Buiness" segment.

⁵ This is a profit indicator that measures the ordinary performance of the business by deducting the cost of sales and selling, general and administrative expenses from revenue.

⁶ Greenhouse gas.

⁷ CDP Is a global non-profit that runs the world's environmental disclosure system for companies, cities, states and regions. Founded in 2000 and working with more than 590 investors with over $110 trillion in assets, CDP pioneered using capital markets and corporate procurement to motivate companies to disclose their environmental impacts, and to reduce greenhouse gas emissions, safeguard water resources and protect forests. Over 14,000 organizations around the world disclosed data through CDP in 2021, including more than 13,000 companies worth over 64% of global market capitalization, and over 1,100 cities, states and regions. Fully TCFD aligned. CDP holds the largest environmental database in the world, and CDP scores are widely used to drive investment and procurement decisions towards a zero carbon, sustainable and resilient economy. CDP is a founding member of the Science Based Targets initiative, We Mean Business Coalition, The Investor Agenda and the Net Zero Asset Managers initiative.

⁸ A measure of a company's resilience to significant long-term environmental, social and governance risks in the industry and is rated AAA-CCC.

⁹ An indicator of the degree of trust employees have in the company and their willingness to voluntarily contribute to the company by empathizing with its direction.

Consolidated revenue	1,821.6 billion yen, down 1.5%
Consolidated normalized operating profit	165.4 billion yen, up 2.0%
Consolidated profit before tax	99.6 billion yen, down 20.0%
Consolidated profit attributable to owners of the Company (Key performance indicators)	59.8 billion yen, down 16.9%
ROIC	4.2%
Normalized EPS ^*	156 yen, up 14.7%

^* Normalization: Non-recurring items such as Other operating income or expenses, etc. have been removed to more accurately reflect actual earnings.
Normalized EPS = Normalized profit / Average number of shares outstanding during period.
Normalized profit = Profit attributable to Owners of the Company+Other operating income and expenses and other items after income taxes

Results by segment are as follows.

Japan Beer and Spirits Business (Kirin Brewery Company, Limited)

In the domestic alcoholic beverage market, sales of products for the on-premise market continued to be sluggish and off- premise sales grew due to effects of COVID-19 - as in the previous year - however the beer segment expanded following tax reductions in the October 2020 revision of the liquor tax. At Kirin Brewery Company, Limited, canned KIRIN ICHIBAN, the mainstay brand, as well as KIRIN ICHIBAN Zero Sugar ^*10 - which captured growing health consciousness - performed well. As a result, sales volume of canned KIRIN ICHIBAN brand products grew significantly, up 20% year on year.

With more time spent at home due to COVID-19, there is also a need to make that time more fulfilling. Canned craft beer SPRING VALLEY Hojun 496 captured this demand, selling 1 million cases ^*11 in just six months after its launch - growing at an unusually fast pace for a craft beer. In addition, the number of KIRIN Home Tap (which allows people to enjoy authentic craft beer at home) subscribers, providing more than 100,000 customers with the special taste of beer directly from the brewery.

In the on-premise market, Kirin Brewery worked closely with on-premise establishments to provide Kirin's unique value propositions, such as TAPPY, which can provide fresh and tasty draft beer, and Tap Marché, which can provide four types of craft beer in one unit. As a result, although the beer category's overall sales volume decreased due to the decline in the onpremise market, these efforts helped Kirin Brewery outperform the market trend for the fourth consecutive year. In the RTD ^*12 category - which is mainly for home use - the Kirin Hyoketsu Sugar-Free performed very well, and the Kirin Hyoketsu® brand ^*13 achieved record sales, surpassing 16 billion cans in cumulative sales. Kirin Koji Lemon Sour, as well as the Kirin HonshiboriTM Chuhai high value-added brand that focuses on ingredients and manufacturing methods also performed well, with total RTD category sales volume increasing year on year.

As a result, sales volume of beer increased in off-premise channel, and sales volume of total beer products outperformed the market. Revenue increased due to higher sales volumes of beer, happo-shu, RTD and non-alcohol beverages.

Normalized operating profit decreased due to an increase in selling expenses as a result of strengthened investment in brands from a long-term perspective.

¹⁰ According to food labeling standards products containing less than 0,5g of sugar per 100ml can be labeled "zero sugar."

¹¹ 633ml x 20 per case.

¹² Abbreviation for Ready to Drink, a canned cocktall.

¹³ 250ml conversion.

Japan Beer and Spirits Business 2021 results:

Consolidated revenue	661.3 billion yen, up 1.5%
Consolidated normalized operating profit	70.5 billion yen, down 6.6%

Japan Non-alcoholic Beverages Business: Kirin Beverage Company, Limited

The domestic beverage market saw a gradual recovery in sales volume from April onward with the gradual lifting of the state of emergency declaration, but the re-emergence of COVID-19 and unseasonable weather conditions resulted in only a slight increase over the previous year. In addition, FOSHU and foods with functional claims as well as the sugar-free and low-sugar categories continued to expand due to the further rise in health consciousness.

Kirin Beverage Company, Ltd. (Kirin Beverage) focused on the health science domain as one of the pillars of its business in addition to its existing beverage business and invested aggressively in health-focused initiatives based on a 'post-COVID recovery based on CSV thinking.

In the existing beverage business, Kirin Beverage took the growing demand for sugar-free products as an opportunity to strengthen the lineup of the Kirin Gogo-no-Kocha Oishii Muto (sugar-free) series under the Kirin Gogo-no-Kocha brand. In addition to focusing on the health area, Kirin Beverage also focused on environmental initiatives. For the Kirin Nama-cha brand, Kirin Beverage launched Kirin Nama-cha In R100 PET bottles, which are made of 100% recycled PET plastic, as well as labelless PET bottles to cater to growing consumer environmental awareness.

In the health science domain, Kirin Beverage worked to instill an 'immune care' habit in consumers by rolling out beverages that contain LC-Plasma, labeled as foods with functional claims for immune function. In addition to reinforcing the iMUSE brand. Kirin Beverage launched Kirin Gogo-no-Kocha Milk Tea Plus and Kirin Nama-cha Life Plus Immune Assist to make it easier for people who want more access to immunity-related products to get LC-Plasma. As a result, Kirin Beverage was able to achieve the annual sales target of 5 million cases of beverages containing LC-Plasma, which Kirin Beverage revised upward during the term.

While the operating environment remained severe due to the impact of COVID-19 and other factors, overall sales volume of soft drinks decreased slightly, but Kirin Beverage worked to improve profitability through structural reforms in the vending machine business and further focusing on small-sized PET products.

As a result, revenue decreased due to a decline in sales volume. In addition, despite efforts to reduce sales promotion and advertising expenses, normalized operating profit decreased due to a decline in sales volume and difference of change in products mix and in composition ratio of containers, etc. caused by the worsening competitive environment.

Japan Non-alcoholic Beverages Business 2021 results:

Consolidated revenue	244.4 billion yen, down 3.1%
Consolidated normalized operating profit	21.1 billion yen, down 3.0%

Oceania Adult Beverages Business: Lion Pty Limited (Lion)

Following the sale of the dairy beverage business in January 2021, sales revenue for Lion Pty Limited (Lion) declined significantly. In the alcoholic beverages business, the on-premise market in Australia and New Zealand was affected by COVID-19, however the market has been recovering since mid-October with the gradual lifting of COVID-related movement restrictions, and sales volume in the premium beer and craft beer categories increased year on year.

In Lion's craft beer business - positioned as a future growth area - New Belgium Brewing in the United States' Voodoo Ranger, which is highly popular among young people, accurately captured demand for home use and sales were strong.

In addition, to further solidify the Australian craft beer business Lion also completed the acquisition of Fermentum, Australia's largest independent craft brewer, and announced the acquisition of Bell's Brewery in the United States to create synergies in Lion's overseas craft beer business. In these ways, Kirin Holdings achieved an increase in profit through progress in its craft beer strategy and cost reduction efforts.

Oceania Adult Beverages Business 2021 results:

Consolidated revenue	216.3 billion yen, down 26.0%
Consolidated normalized operating profit	26.6 billion yen, up 20.0%

Pharmaceuticals Business: Kyowa Kirin Co., Ltd.

In the first year of the 2021 Medium Term Business Plan, Kyowa Kirin Co., Ltd. (Kyowa Kirin) has established a new mission statement to guide it through to 2030 ^*14 , and worked to achieve growth as a Japan-based Global Specially Pharmaceutical company ^*15.

In 2021, while the global pharmaceutical environment continued to be affected by COVID-19 as in the previous year - limiting Kyowa Kirin's business activities - Kyowa Kirin steadily grew its global strategic products, including Crysvita ^*16 and Poteligeo ^*17.

Kyowa Kirin also made steady progress in the development of next-generation strategic products such as KHK4083 ^*18 and ME-401 ^*19 (zandelisib) in the field of oncology. On the other hand. Kyowa Kirin was unable to obtain approval for the KW-6002 ^*20 (istradefylline) global strategic product in Europe. Kyowa Kirin will continue to closely monitor the decisions of the authorities in each country and respond appropriately for the products that are pending filing and approval.

Kyowa Kirin has positioned this 'contributing to the health and well-being of people around the world' as CSV management, and as part of its patient-centered approach to addressing healthcare needs. Kyowa Kirin is continuously engaged in disease awareness-raising activities to increase public understanding of kidney disease, as well as rickets and osteomalacia, among others, which are not widely recognized as diseases themselves.

As a result, revenue increased due to an increase in overseas pharmaceutical sales, particularly of global strategic products. Despite an increase in selling, general and administrative expenses related to sales of global strategic products, normalized operating profit increased due to an increase in gross profit resulting from higher revenue.

¹⁴ Kyowa Kirin will realize the successful creation and delivery of life-changing value that ultimately makes people smile, as a Japan-based Global Specialty Pharmaceutical company built on the diverse team of experts with shared passion for innovation.

¹⁵ A pharmaceutical company that continuously creates, develops, and markets innovative new drugs on a global scale using cutting-edge biotechnologies centered on antibody technologies in the fields of nephrology, oncology, immunology/allergy, and central nervous system.

¹⁶ A drug for the treatment of rare diseases that cause disorders of bone growth and metabolism mainly due to genetic causes. In Japan, it is marketed under the CRYSVITA product name.

¹⁷ A drug for the treatment of certain types of leukemia. It is already marketed in Japan under the POTELIGEO brand name.

¹⁸ A drug for the treatment of atopic dermatitis,

¹⁹ A drug for the treatment of certain types of leukemia.

²⁰ A treatment for Parkinson's disease. Sold as Nourlanz in the United States and as Nouriast In Japan.

Pharmaceuticals Business 2021 results:

Consolidated revenue	351.7 billion yen, up 10.7%
Consolidated normalized operating profit	61.2 billion yen, up 3.7%

Other Businesses

Consolidated revenue	347.9 billion yen, up 3.5%
Consolidated normalized operating profit	31.3 billion yen, up 7.0%
Revenue Composition	19.1%

• KYOWA HAKKO BIO CO., LTD. (Kyowa Hakko Bio)

Since receiving administrative punishment for deviating from manufacturing methods at the end of 2019, Kyowa Hakko Bio has rebuilt its entire business system with quality as the basis for all operations.

Kyowa Hakko Bio has positioned 2021 as a year to move from revitalization to growth. With quality as the foundation of all its operations, Kyowa Hakko Bio has worked to restore the trust of consumers by gradually reviving its manufacturing volume.

At the end of December, Kyowa Hakko Bio transferred control of its consumer products business to Kirin Holdings, and by concentrating on BtoB business, Kyowa Hakko Bio established an operating structure that will accelerate the development of new ingredients by utilizing cutting-edge fermentation technologies and biotechnology knowhow it has cultivated over many years.

Despite challenges such as the sharp rise in raw material and fuel costs, etc. due to the impact of COVID-19, Kyowa Hakko Bio worked to reform its organizational culture, improve its product portfolio, and reform its operating structure, among others, resulting in a return to profitability in 2021.

• Mercian Corporation (Mercian)

Mercian worked to expand the number of wine drinkers and improve profitability In the off-premise (home) wine market. In the midst of diversifying consumer wine tastes due to environmental changes such as the impact of COVID-19. Mercian debuted MOCK Bar, a non-alcoholic sangria that offers the luxury of fruit juice and the lingering taste of wine. In addition, development of high-quality products in the organic wine category that are environmentally friendly were well-received by consumers. In the Chateau Mercian business, the Mariko Winery was selected as one of the World's Best Vineyards 2021 ^*21 for the second year in a row.

²¹ The awards are presented by William Reed Business Media, the UK-based organizer of the world's premier wine competition, the International Wine Challenge. In 2021, more than 2,000 wineries were nominated, and Chateau Mercian Mariko Winery was ranked 33rd in the world.

• Myanmar Brewery Ltd. (Myanmar Brewery)

In Myanmar, the off-premise market declined significantly due to the reemergence of COVID-19 and the political changes that occurred in February 2021. In Myanmar, the beer market shrank by about 20% due to the effects of financial and supply chain disruptions. In addition, due to a decrease in production volume caused by material shortages and other factors, as well as restrictions on sales activities, Myanmar Brewery's sales volume decreased by approximately 30% compared to the same period of the previous year.

● Coca-Cola Beverages Northeast, Inc. (Coke Northeast)

The United States beverage market overall sales volume increased due to the expansion of e-commerce sales and a significant increase in household consumption due to the impact of COVID-19, as well as a recovery in the on-premise market associated with an increase in the COVID-19 vaccination rate. On the other hand, inflation occurred as the supply of goods and services could not keep up with the recovery in consumer spending. In the midst of these market changes, Coke Northeast achieved the highest profit in its history through price revisions, continuous cost reduction, and operational efficiency.

- Outlook for 2022 -

In the 2022-2024 MTBP, KV2027's basic direction will remain unchanged and Kirin Holdings will continue to strengthen its existing businesses and create new value by promoting CSV as the core of its management. Specifically, Kirin Holdings will make growth investments and strategic investments in the following three domains: (1) Increase profit in the Food & Beverages Domain, (2) Strengthen the operating base of the Pharmaceuticals Domain's global base, and (3) Scaling up the Health Science Domain, aiming for sustainable growth.

To achieve these goals, Kirin Holdings will continue to work on strengthening the Kirin Group's organizational capabilities towards innovation. In addition, Kirin Holdings will build a solid organizational foundation by thoroughly adhering to the Kirin Group's DNA of focusing on quality, building an SCM ^*1 system that balances efficiency and sustainability, and strengthening governance to support value creation. Through these efforts, Kirin Holdings will achieve its financial targets of a normalized EPS CAGR of at least 11% by 2024 ^*2 and ROIC of at least 10% as of 2024, and ride a new growth track toward achieving KV2027.

¹ An abbreviation for Supply Chain Management, which refers to the efficient establishment and management of the supply chain, including the procurement of raw materials, production at factories, and the supply, demand, and distribution of products.

² Standard is FY2021.

Consolidate Earnings Forecasts for the Fiscal Year 2022:

Consolidated revenue	1,950.0 billion yen, up 7.1 %
Consolidated normalized operating profit	166,0 billion yen, up 0.3 %
Consolidated profit before tax	177.0 billion yen, up 77.7%
Consolidated profit attributable to owners of the Company (Key performance indicators)	114.5 billion yen, up 91.5%
ROIC	8.3%
Normalized EPS ^*	157 yen, up 0.6%

1. Food & Beverages Domain

In the Food & Beverages Domain, Kirin Holdings will build a strong brand system, strengthen the Kirin Group's profitability and financial base, and explore as well as expand new businesses.

Kirin Brewery, will build a strong brand system by strengthening investment in its mainstay KIRIN ICHIBAN brand, KIRIN ICHIBAN Zero Sugar, which caters to health-conscious consumers, and SPRING VALLEY Hojun 496, a high-value-added, highly profitable brand, KIRIN Home Tap appeal will further be enhanced through strengthening its craft beer lineup, with the aim of revitalizing the craft beer market and make it more attractive. In the RTD category, Kirin Brewery will boost the development of high-value-added products that meet the needs of people who want to enjoy quality time when at home.

Lion will focus on improving profitability through marketing reform and supply chain optimization. Moreover, Lion will promote the integration of its acquired craft beer businesses and create synergies in order to accelerate the growth of the craft beer business in North America and Australia.

Mercian will launch Mercian Wines as a new imported wine brand, Mercian will reinstill the inherent value of wine in Japan, make the wine market more attractive to consumers, and co-create high-quality imported wines that suit the Japanese palate with wineries that are sincerely committed to sustainable winemaking - including consideration for the environment.

Kirin Beverage will further promote CSV management and strengthen the profitability of the existing beverage business through focusing on its strengths. At the same time, Kirin Beverage will strengthen its Health Science domain by transforming itself into a beverage company with health as a new company pillar.

For the mainstay Gogo-no-Kocha brand, Kirin Beverage will focus on developing Kirin Gogo-no-Kocha Oishii Muto (sugar-free) and achieve renewed growth of the brand by expanding low-sugar product offerings. Kirin Beverage will promote the use of sustainable PET plastic in the development of Kirin Nama-cha products, aiming to win the goodwill of society and consumers as a brand that contributes to their health and the environment.

In the Health Science field, Kirin Holdings will contribute to better consumer health and open up new markets by expanding the development of beverages containing LC-Plasma. This includes the addition of Kirin iMUSE Morning Immune Care, a yogurttasting beverage in a 100ml PET bottle, to be launched nationwide in March, and further development of beverages containing LC-Plasma in collaboration with FANCL ("fahn-kell") Corporation.

Coke Northeast will build a structure capable of generating stable and high profits on an ongoing basis. Coke Northeast will continue to further increase its share of the highly profitable carbonated beverage market and cater to distribution needs with a sense of urgency, keeping an eye on trends in other beverage categories. In addition, Coke Northeast will adapt to changes in customer needs and strengthen DX'3 to promote internal operational efficiency.

³ An abbreviation for 'digital transformation.' It is the transformation of people's lives for the better through the penetration of advanced digital technologies.

2. Pharmaceuticals Domain

The environment surrounding the pharmaceutical industry in recent years has undergone severe changes, including the promotion of measures to curb drug costs, a decrease in spending on pharmaceuticals due to the promotion of generics, and increased costs and complexity of processes in the new drug development, etc. At the same time, there are also moves to encourage the development of new drug discovery methods that enable innovative treatments through advances in science and technology.

In addition, breakthrough drugs for unmet medical needs ^*4 are still eagerly awaited around the world. Moreover, new medical needs are emerging as the overall social environment undergoes major changes, such as the development and penetration of digital technology and the diversification of consumer touchpoints.

In this environment, Kyowa Kirin will achieve further growth as a Global Specialty Pharmaceutical company by promoting the development of next-generation global strategic products such as KHK4083, ME-401 (zandelisib), and KW-6356 ^*5 in addition to the Crysvita, Poteligeo and Nourianz global strategic products. Kirin Holdings will also promote the development of new drugs for the domestic market, such as KHK-7791 ^*6 (Tenapanor), and RTA402 ^*7 (bardoxolone methyl).

⁴ Refers to medical needs for diseases for which no cure has yet been found.

⁵ Next generation of KW-6002 (Nourianz in the United States, Nouriast in Japan) drugs for Parkinson's disease.

⁶ A treatment that inhibits phosphorus absorption for hemodialysis patients.

⁷ A treatment for patients with Alport syndrome and diabetic kidney disease

Kyowa Kirin will achieve business growth as a Japan-based Global Specially Pharmaceutical Company by implementing Kyowa Kirin's New Vision for 2030, which was announced in February 2021 in conjunction with the five-year mid-term business plan, and strategies for achieving this vision.

3. Health Science Domain

In KV2027, the Kirin Group launched the Food & Beverage, Pharmaceuticals, and Health Science Business, which is important for CSV management, As COVID-19 continues to expand on a global scale after 2020, interest in health and disease prevention is increasing even more. Seeing this as a new opportunity, Kirin Holdings will strengthen its investment in the Health Science domain and expand the domain's scale in the 2022-2024 MTBP. Kirin Holdings will also explore new growth opportunities for further business growth. In particular, Kirin Holdings will use the expansion of LC-Plasma in the immunology field as a springboard for growth in the brain function and intestinal environment fields.

In 2022, the first year of the mid-term plan, Kirin Holdings will continue to focus on accelerating the expansion of the LC-Plasma business. Kirin Holdings will also boost the development of yogurt and supplements that are easy to take up as a daily habit, aiming to further instill an 'immune care' habit. In line with the expansion of the Kirin Group's business, Kirin Holdings will increase LC-Plasma production facilities and increase the beverage production line at the Kirin Beverage's Shonan Plant. In addition, Kirin Holdings will proceed with verifying of the effect of LC-Plasma on tropical infectious diseases at the research base of the University of Malaya.

In overseas markets, Kyowa Hakko Bio will accelerate its B-to-B business, focusing on mainly in the United States and Southeast Asia for LC-Plasma, and boosting overall sales of Citicoline ^*8 will be sold in the United States. In 2022, Kyowa Hakko Bio will begin production of human milk oligosaccharides ^*9 - in which Kyowa Hakko Bio succeeded in developing the world's first production technology using its proprietary fermentation technology - at its plant in Thailand with the aim of launching the product overseas.

Kirin Holdings will continue to engage in joint research and new product development with FANCL, utilizing the ingredients and technologies of both companies. In addition, Kirin Holdings will aim to create synergies by utilizing the knowledge of the online shopping business, which is one of FANCL's strengths, within the Kirin Group and by strengthening organizational capabilities through personnel exchanges.

In order to contribute to the health and well-being of consumers, Kirin Holdings will vigorously pursue business development in the areas of physical vitality centered on ornithine, as well as move forward with new business exploration, internal ventures, and corporate venture capital. In addition, Kirin Holdings will move forward with new business exploration, intrapreneurial ventures, and corporate venture capital ^*10 to solve social issues related to the health of consumers at all touchpoints.

In order to increase the scale of these initiatives, Kirin Holdings will establish a Health Science Business Headquarters in the spring of 2022 to oversee strategy and business collaboration in the Health Science domain. This will strengthen the governance structure to create synergies within the Group and improve the speed of promoting company strategy understanding internally and implementation.

⁸ An ingredient found in the body that maintains the cell membranes of the brain and nerve cells, and has been used for many years around the world in medicines for brain diseases and health foods that support the improvement of cognitive functions. In Japan, it is currently classified as a pharmaceutical product,

⁹ A generic term for oligosaccharides contained in breast milk. More than 250 types of oligosaccharides are currently contained in breast milk, and the results of research contribution to "immunity" and "brain function" have been reported.

¹⁰ Refers to an organization for operating companies to contribute their own funds to form a fund to invest in startup companies or to invest in startup companies. Many operating companies invest in companies that are related to their own business, aiming to create synergies and new businesses.

About Myanmar Business

With regard to the business of Myanmar Brewery Company Limited, over the following year, Kirin Holdings took every measure to find a way forward that would allow it to continue to contribute to Myanmar's economy and society through the beer business. These included discussions with Myanma Economic Holdings Public Company Limited (MEHPCL) and filing for arbitration in Singapore, seeking to terminate the joint venture. In the end, Kirin Holdings determined that it would be difficult to quickly terminate the joint venture in the manner it desires.

Therefore, Kirin Holdings has now commenced and is proceeding with discussions with MEHPCL in order to withdraw from the business in Myanmar, giving top priority to the termination of the joint venture as soon as possible.

In Closing

Finally, in order to achieve KV2027 and sustainable corporate growth, Kirin Holdings' Board of Directors regularly will discusses the optimal business portfolio. Kirin Holdings will accelerate creating value in areas ranging from Food & Beverages to Pharmaceuticals by applying its highly-acclaimed governance to transform its business portfolio.

Kirin Holdings sincerely thanks the Kirin Group's shareholders for their continued understanding and support.

(2) FINANCIAL POSITION

Total assets at the end of the current consolidated fiscal year were 2,471.9 billion yen, an increase of 12.6 billion yen from the end of the previous consolidated fiscal year mainly due to an increase in inventories, goodwill, and trade and other receivables which more than offset a decrease in assets held for sale from sale of subsidiary.

Equity increased by 52.1 billion yen from the end of the previous consolidated fiscal year to 1,148.0 billion yen mainly due to an increase in reserves due to foreign exchange fluctuations.

Liabilities decreased by 39.5 billion yen from the end of the previous consolidated fiscal year to 1,323.9 billion yen mainly due to a decrease in bonds and borrowings caused by a decrease in commercial papers, etc.

The balance of cash and cash equivalents (hereinafter referred to as "net cash") at the end of the current consolidated fiscal year was 149,5 billion yen, a decrease of 12.2 billion yen from the end of the previous consolidated fiscal year. Consolidated cash flows were as follows:

Cash flows from operating activities

Net cash provided by operating activities increased by 54.5 billion yen year on year to 219,3 billion yen. Outflow of working capital increased by 20.6 billion yen, while income taxes paid decreased by 25,0 billion yen.

Cash flows from investing activities

Net cash used in investing activities decreased by 59.6 billion yen year on year to 56.4 billion yen. Outflow for acquisition of property, plant and equipment and intangible assets decreased by 6,7 billion yen year on year to 86.3 billion yen. Outflow of 45.5 billion yen for acquisition of shares of subsidiaries were incurred while there was inflow of 42.9 billion yen for sale of shares of subsidiaries and 22.1 billion yen for sale of investments.

Cash flaws from financing activities

Net cash used in financing activities increased by 128.0 billion yen year on year to 180.5 billion yen. While proceeds of 70.0 billion yen were received from issuance of bonds, outflow of 82.0 billion yen for decrease in commercial paper, 65.4 billion yen for dividends paid, 50.0 billion yen for repayment of long-term borrowings, and 40.0 billion yen for redemption of bonds were incurred.

(3) BASIC POLICY AND DISTRIBUTION OF PROFITS AND DIVIDEND FOR 2021 AND 2022

Based on the capital policy formulated in the 2022-2024 MTBP, Kirin will allocate resources to its businesses and distribute profits to its shareholders as set out below.

Regarding resource allocation to businesses, giving top priority to investments that contribute to further developing businesses with a focus on the Heath Science domain, Kirin will make investments that contribute to enhancement of existing businesses and profit improvement. Kirin will also Implement a stable and continuous allocation of resources to intangible assets (such as brands, research and development, information and communication technology (ICT), and human resources) that sustain the growth of future cash flows. Kirin will take a disciplined approach to investments in terms of maintaining and improving the Kirin Group's capital efficiency.

Kirin also views the appropriate distribution of profits to shareholders as a key management matter. Kirin has stably and continuously provided dividends based on a consolidated dividend payout ratio on normalized EPS of at least 40%. In addition, Kirin will consider opportunities to acquire treasury shares as additional shareholder returns, comprehensively taking into account various factors including optimum capital structure, market conditions and reserve funds after investments.

With regard to the distribution of surplus funds for 2021, based on a consolidated dividend payout ratio on normalized EPS of at least 40%, Kirin's Board of Directors made a resolution for an interim dividend of 32.5 yen per share and a year-end dividend of 32,5 yen per share, for an annual dividend totaling 65 yen per share. The year-end dividend of 32.5 yen will be determined at the 183rd General Meeting of Shareholders scheduled for March 30, 2022.

As for the distribution of surplus funds for 2022, Kirin aims for a consolidated dividend payout ratio on normalized EPS of at least 40%, and plans to pay a full-year dividend of 65 yen per share.

2. BASIC RATIONALE FOR SELECTION OF ACCOUNTING STANDARDS

The Kirin Group has adopted International Financial Reporting Standards ("IFRS") from the fiscal year ended December 31, 2017 to enhance the international comparability of its financial information in the capital market.

3. CONSOLIDATED FINANCIAL STATEMENTS

(1) CONSOLIDATED STATEMENT OF FINANCIAL POSITION

		(¥ millions)
	At December 31, 2020	At December 31, 2021
Assets
Non-current assets
Property, plant and equipment	521,919	533,859
Goodwill	245,709	264,225
Intangible assets	209,291	196,341
Equity-accounted investees	387,467	399,367
Other financial assets	105,740	117,431
Other non-current assets	21,162	24,736
Deferred tax assets	101,533	109,354
Total non-current assets	1,592,821	1,645,313
Current assets
Inventories	217,176	247,229
Trade and other receivables	372,146	387,921
Other financial assets	7,948	7,910
Other current assets	33,941	34,071
Cash and cash equivalents	161,667	149,488
(Sub-total)	792,878	826,620
Assets held for sale	73,664	-
Total current assets	866,542	826,620
Total assets	2,459,363	2,471,933

		(¥ millions)
	At December 31, 2020	At December 31, 2021
Equity
Share capital	102,046	102,046
Share premium	24,940	25,104
Retained earnings	980,903	998,177
Treasury shares	(201,783)	(201,801)
Reserves	(67,522)	(29,347)
Equity attributable to owners of the Company	838,584	894,179
Non-controlling interests	257,355	253,811
Total equity	1,095,939	1,147,990
Liabilities
Non-current liabilities
Bonds and borrowings	393,610	449,970
Other financial liabilities	140,343	145,453
Defined benefit liability	66,890	61,954
Provisions	4,456	4,707
Liabilities from application of equity method	-	19,426
Other non-current liabilities	3,408	32,875
Deferred tax liabilities	17,243	10,606
Total non-current liabilities	625,950	724,990
Current liabilities
Bonds and borrowings	249,033	101,502
Trade and other payables	220,277	229,552
Other financial liabilities	63,781	65,907
Current tax liabilities	8,707	22,162
Provisions	3,961	1,901
Other current liabilities	164,692	177,929
(Sub-total)	710,451	598,953
Liabilities directly associated with assets held for sale	27,024	-
Total current liabilities	737,475	598,953
Total liabilities	1,363,424	1,323,943
Total equity and liabilities	2,459,363	2,471,933

(2) CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND COMPREHENSIVE INCOME CONSOLIDATED STATEMENT OF PROFIT OR LOSS

		(¥ millions)
	Year ended December 31, 2020	Year ended December 31, 2021
Revenue	1,849,545	1,821,570
Cost of sales	1,045,662	998,728
Gross profit	803,883	822,842
Selling, general and administrative expenses	641,768	657,412
Normalized operating profit	162,115	165,430
Other operating income	6,376	8,239
Other operating expenses	65,572	105,585
Operating profit	102,919	68,084
Finance income	5,400	4,087
Finance costs	8,521	7,044
Share of profit of equity-accounted investees	24,752	34,490
Profit before tax	124,550	99,617
Income tax expense	24,709	31,193
Profit	99,842	68,424
Profit attributable to:
Owners of the Company	71,935	59,790
Non-controlling interests	27,907	8,634
Profit	99,842	68,424
Earnings per share (Yen)
Basic earnings per share	85.57	71.73
Diluted earnings per share	85.54	71.70

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

		(¥ millions)
	Year ended December 31, 2020	Year ended December 31, 2021
Profit	99,842	68,424
Other comprehensive income
Items that will not be reclassified to profit or loss
Net change in equity instruments measured at fair value through other comprehensive income	(10,513)	(1,824)
Remeasurements of defined benefit plans	512	6,592
Share of other comprehensive income of equity-accounted investees	(139)	203
Items that are or may be reclassified to profit or loss
Foreign currency translation differences on foreign operations	(1,028)	31,843
Cash flow hedges	407	1,185
Share of other comprehensive income of equity-accounted investees	2,754	10,892
Total other comprehensive income	(8,008)	48,891
Comprehensive income	91,834	117,316
Comprehensive income attributable to:
Owners of the Company	64,028	109,631
Non-controlling interests	27,806	7,685
Comprehensive income	91,834	117,316

(3) CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Year ended December 31, 2020

						(¥ millions)
	Equity attributable to owners of the Company
					Reserves
	Share capital	Share premium	Retained earnings	Treasury shares	Net change in equity instruments measured at fair value through other comprehensive income	Remeasurements of defined benefit plans
Balance at January 1, 2020	102,046	24,853	958,292	(124,999)	41,410	-
Profit		-	71,935	-	-	-
Other comprehensive income	-	-	-	-	(10,095)	(554)
Comprehensive income	-	-	71,935	-	(10,095)	(554)
Dividends from surplus	-	-	(55,326)	-	-	-
Acquisition of treasury shares	-	-	-	(76,796)	-	-
Disposal of treasury shares	-	(1)	-	3	-	-
Share-based payments	-	28	-	9	-	-
Changes in the ownership interest in a subsidiary without a loss of control	-	60	-	-	(0)	-
Transfer from reserves to retained earnings	-	-	6,003	-	(6,557)	554
Other	-	1	-	-	-	-
Total transactions with owners of the Company	-	87	(49,323)	(76,784)	(6,558)	554
Balance at December 31, 2020	102,046	24,940	980,903	(201,783)	24,757	-

	Equity attributable to owners of the Company
	Reserves
	Foreign currency translation differences on foreign operations	Cash flow hedges	Total	Total	Non-controlling interests	Total equity
Balance at January 1, 2020	(94,043)	(983)	(53,615)	906,576	240,249	1,146,825
Profit	-	-	-	71,935	27,907	99,842
Other comprehensive income	2,337	406	(7,907)	(7,907)	(101)	(8,008)
Comprehensive income	2,337	406	(7,907)	64.028	27,806	91,834
Dividends from surplus	-	-	-	(55,326)	(10,946)	(66,273)
Acquisition of treasury shares	-	-	-	(76,796)	-	(76,796)
Disposal of treasury shares	-	-	-	2	-	2
Share-based payments	-	-	-	38	(155)	(118)
Changes in the ownership interest in a subsidiary without a loss of control	4	-	3	63	371	434
Transfer from reserves to retained earnings	-	-	(6,003)	-	-	-
Other	0	-	0	1	31	32
Total transactions with owners of the Company	4	-	(6,000)	(132,020)	(10,700)	(142,720)
Balance at December 31, 2020	(91,702)	(577)	(67,522)	838,584	257,355	1,095,939

Year ended December 31, 2021

						(¥ millions)
	Equity attributable to owners of the Company
					Reserves
	Share capital	Share premium	Retained earnings	Treasury shares	Net change in equity instruments measured at fair value through other comprehensive Income	Remeasurements of defined benefit plans
Balance at January 1, 2021	102,046	24,940	980,903	(201,783)	24,757	-
Profit	-	-	59,790	-	-	-
Other comprehensive income	-	-	-	-	(1,251)	6,137
Comprehensive income	-	-	59,790	-	(1,251)	6,137
Dividends from surplus	-	-	(54,184)	-	-	-
Acquisition of treasury shares	.	.	.	(27)	-	-
Disposal of treasury shares	-	(0)	-	1	-	.
Share-based payments	-	83	2	7	-	-
Changes in the ownership interest in a subsidiary without a loss of control	-	81	-	-	-	-
Transfer from reserves to retained earnings	-	-	11,666	-	(5,529)	(6,137)
Other	-	-	-	-	-	-
Total transactions with owners of the Company	-	164	(42.516)	(18)	(5,529)	(6,137)
Balance at December 31, 2021	102,046	25,104	998,177	(201,801)	17,978	-

	Equity attributable to owners of the Company
	Reserves				Non- controlling interests
	Foreign currency translation differences on foreign operations	Cash flow hedges	Total	Total	Non-controlling interests	Total equity
Balance at January 1, 2021	(91,702)	(577)	(67,522)	838,584	257,355	1,095,939
Profit	-	-	-	59,790	8,634	68,424
Other comprehensive Income	43,767	1,187	49,841	49,841	(950)	48,891
Comprehensive income	43,767	1,187	49,841	109,631	7,685	117,316
Dividends from surplus	-	-	-	(54,184)	(11,182)	(65,366)
Acquisition of treasury shares	-	-	-	(27)	-	(27)
Disposal of treasury shares	-	-	-	1	-	1
Share-based payments	-	-	-	92	(181)	(89)
Changes in the ownership interest in a subsidiary without a loss of control	-	-	-	81	104	185
Transfer from reserves to retained earnings	-	-	(11,666)	-	-	-
Other	-	-	-	-	31	31
Total transactions with owners of the Company	-	-	(11,666)	(54,036)	(11,228)	(65,265)
Balance at December 31, 2021	(47,935)	610	(29,347)	894,179	253,811	1,147,990

(4) CONSOLIDATED STATEMENT OF CASH FLOWS

		(¥ millions)
	Year ended December 31, 2020	Year ended December 31, 2021
Cash flows from operating activities
Profit before tax	124,550	99,617
Depreciation and amortization	82,109	81,130
Impairment losses	29,619	77,390
Interest and dividends received	(2,752)	(2,718)
Share of profit of equity-accounted investees	(24,752)	(34,490)
Interest paid	4,890	4,448
Gain on sale of property, plant and equipment and intangible assets	(1,629)	(3,061)
Loss on disposal and sale of property, plant and equipment and intangible assets	1,704	1,782
Gain on sale of shares of subsidiaries	(42)	(23)
(Increase) decrease in trade receivables	3,781	(9,106)
(Increase) decrease in inventories	(6,081)	(20,353)
Increase (decrease) in trade payables	(1,106)	3,514
Increase (decrease) in liquor taxes payable	(392)	1,586
Other	(7,100)	32,289
Sub-total	202,800	232,004
Interest and dividends received	21,470	21,036
Interest paid	(4,791)	(4,145)
Income taxes paid	(54,641)	(29,592)
Cash flows from (used in) operating activities	164,839	219,303

		(¥ millions)
	Year ended December 31, 2020	Year ended December 31, 2021
Cash flows from investing activities
Acquisition of property, plant and equipment and intangible assets	(93,026)	(86,335)
Proceeds from sale of property, plant and equipment and intangible assets	2,083	6,977
Acquisition of investments	(606)	(2,907)
Proceeds from sale of investments	19,401	22,122
Acquisition of shares of subsidiaries, net of cash acquired	(39,628)	(45,455)
Proceeds from sale of shares of subsidiaries, net of cash disposed of	18	42,886
Acquisition of equity-accounted investees	(1,885)	(162)
Proceeds from sale of equity-accounted investees	-	5,101
Other	(2,339)	1,365
Cash flows from (used in) investing activities	(115,981)	(56,408)
Cash flows from financing activities
Increase (decrease) in short-term borrowings	356	4,641
Increase (decrease) in commercial paper	28,003	(81,994)
Proceeds from long-term borrowings	135,000	1,000
Repayment of long-term borrowings	(86,570)	(50,000)
Proceeds from issuance of bonds	60,000	70,000
Payment for redemption of bonds	(20,000)	(40,000)
Repayment of lease liabilities	(16,554)	(18,420)
Payment for acquisition of treasury shares	(76,811)	(34)
Payment for acquisition of treasury shares by a consolidated subsidiary	(14)	(23)
Payment for settlement of derivatives	(5,091)	-
Dividends paid	(55,326)	(54,184)
Dividends paid to non-controlling interests	(14,815)	(11,182)
Other	(652)	(266)
Cash flows from (used in) financing activities	(52,474)	(180,463)
Effect of exchange rate changes on cash and cash equivalents	(388)	5,388
Net increase (decrease) in cash and cash equivalents	(4,004)	(12,180)
Cash and cash equivalents at beginning of year	165,671	161,667
Cash and cash equivalents at end of year	161,667	149,488

(5) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(GOING CONCERN ASSUMPTION)

There are no matters to report under this item.

(CHANGES IN ACCOUNTING ESTIMATES)

Alcoholic Beverages business in Myanmar has been facing a continuing high level of uncertainty for the operating environment due to the circumstances in Myanmar in turmoil caused by the coup d'état which occurred in February 2021, and Kirin Holdings has started negotiations with MEHPCL on the premise that Kirin Holdings will withdraw from the business in Myanmar. An impairment test was performed for certain business assets related to the Alcoholic Beverages business in Myanmar based on the latest available information and possible risks. As a result, the recoverable amount was measured at zero, thus impairment losses of non-current assets of 68,049 million yen were recognized for the fiscal year ended December 31, 2021.

(SEGMENT INFORMATION)

(1) Summary of reportable segments

The reportable segments of the Group are determined based on the operating segments which are constituent units of the Group whose separate financial information is readily available, and which are periodically examined by the Board of Directors for the purpose of deciding the allocation of management resources and evaluating the business results. The Group has identified four reportable segments, namely, "Japan Beer and Spirits Businesses," "Japan Nonalcoholic Beverages Business," "Oceania Adult Beverages Business" and "Pharmaceuticals Business."

"Japan Beer and Spirits Businesses," for which Kirin Brewery Company, Limited oversees the operations, conducts production and sale of alcoholic beverages, such as beer, happo-shu, new genre, wine, whiskey and spirits, in Japan. "Japan Non-alcoholic Beverages Business," for which Kirin Beverage Company, Limited oversees the operations, conducts production and sale of soft drinks in Japan.

"Oceania Adult Beverages Business," for which Lion Pty Limited oversees the operations, conducts production and sale of beer, whiskey, spirits and other products in the Oceanla region.

"Pharmaceuticals Business," for which Kyowa Kirin Co., Ltd. oversees the operations, conducts production and sale of pharmaceutical products.

Accounting policies for segment information are generally the same as those in the Company's consolidated financial statements.

Inter-segment revenue is based on actual market prices.

(2) Explanation of renaming of Reportable segment

The Group identified the reportable segments, namely, "Japan Beer and Spirits Businesses," "Japan Non-alcoholic Beverages Business," "Oceania Integrated Beverages Business" and "Pharmaceuticals Business" until the year ended December 31, 2020, Since the transfer of the Oceania Non-alcoholic Beverages Business was completed on January 25, 2021, "Oceania Integrated Beverages" segment has been renamed "Oceania Adult Beverages" segment from the year ending December 31, 2021.

This name change of the reportable segment has no impact of the presented financial figures. In addition, the reportable segment for the year ended December 31, 2020 is also presented by the changed name.

(3) Information on reportable segments

Information related to each reportable segment is set out below.

At and for the fiscal year ended December 31, 2020

(¥ millions)

	Reportable segment
	Japan Beer and Spirits	Japan Nonalcoholic Beverages	Oceania Adult Beverages	Pharmaceuticals	Others (Note 1)	Adjustment (Note 2)	Consolidated
Revenue from unaffiliated customers	651,424	252,173	292,120	317,797	336,030	-	1,849,545
Inter-segment revenue	2,022	2,046	46	554	72,519	(77,187)	-
Total revenue	653,446	254,219	292,167	318,352	408,550	(77,187)	1,849,545
Segment income (Note 3)	75,491	21.758	22,130	59,015	29,291	(45,569)	162,115
Other operating income							6,376
Other operating expenses							65,572
Finance income							5,400
Finance costs							8,521
Share of profit of equity- accounted investees							24,752
Profit before tax							124,550

(¥ millions)

	Reportable segment
	Japan Beer and Spirits	Japan Non-alcoholic Beverages	Oceania Adult Beverages	Pharmaceuticals	Others (Note 1)	Adjustment (Note 2)	Consolidated
Segment assets	424,416	149,864	471,312	741,697	871,649	(199,574)	2,459,363
Other items
Depreciation and amortization	14,107	7,170	14,021	19,112	20,462	7,156	82,109
Impairment losses (excluding financial assets)	-	1,277	20,258	2,857	5,228	-	29,619
Equity-accounted investees	12,342	-	8,632	9,463	357,030	-	387,467
Capital expenditures	12,701	8,207	14,475	35,888	28,440	19,124	118,835

Notes:

^1. "Others" includes the Wine business in Japan, the Alcoholic Beverages business in Myanmar, the Non-alcoholic Beverage business in North America, and the Bio-chemicals business, etc.
^2. Adjustments are as follows:
⁽¹⁾ Adjustment in segment income mainly includes inter-segment eliminations and corporate expenses not attributable to any reportable segment. The expenses are mainly group administrative expenses incurred in the Company, a holding company, and administrative expenses relating to some reportable segments incurred in shared services companies.
⁽²⁾ Adjustment in segment assets includes inter-segment asset and liability eliminations and corporate assets not attributable to any reportable segment. The assets mainly consist of surplus funds (cash), long-term investments (equity instruments) and assets of the administrative department of the Company, a holding company, and shared services companies.
^3. Segment income represents normalized operating profit which is calculated by deducting the total of cost of sales and selling, general and administrative expenses from revenue.

At and for the fiscal year ended December 31, 2021

(¥ millions)

	Reportable segment
	Japan Beer and Spirits	Japan Nonalcoholic Beverages	Oceania Adult Beverages	Pharmaceuticals	Others (Note 1)	Adjustment (Note 2)	Consolidated
Revenue from unaffiliated customers	661,326	244,386	216,256	351,696	347,902	-	1,821,570
Inter-segment revenue	1,784	2,208	55	550	70,293	(74,890)	-
Total revenue	663,111	246,594	216,314	352,246	418,196	(74,890)	1,821,570
Segment income (Note 3)	70,541	21,099	26,562	61,197	31,334	(45,303)	165,430
Other operating income							8,239
Other operating expenses							105,585
Finance income							4,087
Finance costs							7,044
Share of profit of equity- accounted investees							34,490
Profit before tax							99,617

(¥ millions)

	Reportable segment
	Japan Beer and Spirits	Japan Nonalcoholic Beverages	Oceania Adult Beverages	Pharmaceuticals	Others (Note 1)	Adjustment (Note 2)	Consolidated
Segment assets	432,806	139,176	475,861	862,091	859,811	(297,812)	2,471,933
Other items
Depreciation and amortization	15,053	7,100	13,337	19,341	20,021	6,279	81,130
Impairment losses (excluding financial assets)	-	70	624	5,286	69,679	1,730	77,390
Equity-accounted investees	13,343	-	8,837	-	377,188	-	399,367
Capital expenditures	24,739	7,212	13,298	29.258	25,959	18,522	118,987

Notes:

^1. "Others" includes the Wine business in Japan, the Alcoholic Beverages business in Myanmar, the Non-alcoholic Beverage business in North America, and the Bio-chemicals business, etc.
^2. Adjustments are as follows:
⁽¹⁾ Adjustment in segment income mainly includes inter-segment eliminations and corporate expenses not attributable to any reportable segment. The expenses are mainly group administrative expenses incurred in the Company, a holding company, and administrative expenses relating to some reportable segments incurred in shared services companies.
⁽²⁾ Adjustment in segment assets Includes inter-segment asset and liability eliminations and corporate assets not attributable to any reportable segment. The assets mainly consist of surplus funds (cash), long-term investments (equity instruments) and assets of the administrative department of the Company, a holding company, and shared services companies.
^3. Segment income represents normalized operating profit which is calculated by deducting the total of cost of sales and selling, general and administrative expenses from revenue.

(4) Geographic information

1) Revenue

(¥ millions)

	Year ended December 31, 2020	Year ended December 31, 2021
Japan	1,180,205	1,167,445
Oceania	257,469	175,048
America	249,313	318,221
Others	162,560	160,856
Total	1,849,545	1,821,570

Note: Revenue is classified by country or area based on customer location.

2) Non-current assets

(¥ millions)

	At December 31, 2020	At December 31, 2021
Japan	489,489	510,385
Oceania	219,214	277,730
America	107,271	119,266
Others	162,625	90,626
Total	978,599	998,008

Note: Non-current assets exclude financial instruments, deferred tax assets and defined benefit assets.

(5) Major customer

The unaffiliated customer which accounted for 10% or more of revenue on the consolidated statement of profit or loss was as follows:

(¥ millions)

	Related segment	Year ended December 31, 2020	Year ended December 31, 2021
Mitsubishi Shokuhin Co., Ltd.	Japan Beer and Spirits, Japan Non-alcoholic Beverages, and other	223,675	225,518

(PER SHARE INFORMATION)

(1) Basis of calculation of basic earnings per share

The basis of calculation of basic earnings per share was as follows:

1) Profit attributable to ordinary shareholders of the Company (basic)

(¥ millions)

	Year ended December 31, 2020	Year ended December 31, 2021
Profit attributable to owners of the Company	71,935	59,790
Profit not attributable to ordinary shareholders of the Company	-	-
Profit attributable to ordinary shareholders of the Company	71,935	59,790

2) Weighted-average number of ordinary shares (basic)

(Thousands of shares)

	Year ended December 31, 2020	Year ended December 31, 2021
Weighted-average number of ordinary shares	840,689	833,599

(2) Basis of calculation of diluted earnings per share

Diluted earnings per share were calculated as follows based on profit attributable to ordinary shareholders of the Company and weighted-average number of ordinary shares outstanding after adjustment for the effects of all potentially dilutive ordinary shares:

1) Profit attributable to ordinary shareholders of the Company (diluted)

(¥ millions)

	Year ended December 31, 2020	Year ended December 31, 2021
Profit attributable to ordinary shareholders of the Company	71,935	59,790
Adjustments for potential ordinary shares issued by subsidiary	(22)	(18)
Profit attributable to ordinary shareholders of the Company (diluted)	71,913	59,772

2) Weighted-average number of ordinary shares (diluted)

(Thousands of shares)

	Year ended December 31, 2020	Year ended December 31, 2021
Weighted-average number of ordinary shares (basic)	840,689	833,599
Effect of dilution	-	-
Weighted-average number of ordinary shares (diluted)	840,689	833,599

(SIGNIFICANT SUBSEQUENT EVENTS)

(Acquisition of shares of the Company)

At the meeting of the Board of Directors held on February 14, 2022, the Company resolved to acquire shares of the Company based on the provisions of Article 156 of the Companies Act, as applied mutatis mutandis pursuant to the provisions of Article 165, Paragraph 3 of the Act.

1) Reason for the acquisition of shares of the Company

The Company will repurchase shares to enhance shareholder returns.

2) Details of the acquisition

1. Class of shares to be acquired	Shares of common stock of the Company
2, Maximum number of shares to be acquired	30,000,000 shares (representing 3.6% of total outstanding shares (excluding treasury shares))
3. Total acquisition cost	Up to ¥50,000 million
4. Period for acquisition	February 15, 2022 to February 14, 2023

Change of Directors and Board Members

Kirin Holdings Company, Limited hereby announces the change of Directors and Board Members as follows (Scheduled at the end of March 2022).

1. Change of Representatives

(1) New Representative Director

None

(2) Retiring Representative Director

None

Note: Yoshinori Isozaki (President & CEO) and Keisuke Nishimura (Representative Director of the Board, Executive Vice President) are scheduled to be reappointed.

2. Changes of Other Directors of the Board

(1) New Director of the Board

Name	New	Current
Takeshi Minakata	Director of the Board, Senior Executive Officer of Kirin Holdings	Senior Executive Officer of Kirin Holdings.

(2) Retiring Director of the Board

Name	New	Current
Noriaki Kobayashi		Director of the Board, Senior Executive Officer of Kirin Holdings

Note: (i) Toshiya Miyoshi, Norlya Yokota; and (ii) Masakatsu Mori, Hiroyuki Yanagi, Chieko Matsuda, Noriko Shiono, Rod Eddington, George Olcott, Kaoru Kato are scheduled to be reappointed as (i) Director of the Board, Senior Executive Officer, and (ii) Nonexecutive Director of the Board, respectively.

3. Change of Audit & Supervisory Board Members

(1) New Audit & Supervisory Board Members

Name	New	Current
Shobu Nishitani	Standing Audit & Supervisory Board Member of Kirin Holdings	Executive Officer, General Manager, Internal Audit Department of Kirin Holdings
Kenichi Fujinawa	Audit & Supervisory Board Member of Kirin Holdings	Senior Counsel of Nagashima Ohno & Tsunematsu

(2) Retiring Audit & Supervisory Board Members

Name	New	Current
Akihiro Ito		Standing Audit & Supervisory Board Member of Kirin Holdings
Nobuo Nakata		Audit & Supervisory Board Member of Kirin Holdings

Note: Keijl Kuwata as Standing Audit & Supervisory Board Member, and Yoshiko Ando, and Kaoru Kashima as Audit & Supervisory Board Member are during their term of office.

Profile of candidates for the new Director of the Board

Takeshi Minakata

Date of birth:	December 31, 1961
Experience:
March 2020-present	Senior Executive Officer of Kirin Holdings Company, Limited
March 2018	Director of the Board, President and CEO of Kyowa Hakko Bio Company, Limited (Retirement in December 2021)
April 2016	President and CEO of Myanmar Brewery Company, Limited
March 2016	Senior Executive Officer of Kirin Holdings Company, Limited (Retirement in March 2018)
March 2015	Senior Executive officer, Corporate Strategy Director of Kirin Holdings Company, Limited and Senior Executive officer, General Manager, Corporate Planning Department of Kirin Company, Limited
January 2013	Executive officer, General Manager, Corporate Planning Department of Kirin Company, Limited and Kirin Brewery Company, Limited
March 2012	General Manager, Corporate Planning Department of Kirin Brewery Company, Limited
April 1984	Joined Kirin Brewery Company, Limited

Profile of the candidate for the new Audit & Supervisory Board Member

Shobu Nishitani

Date of birth:	November 29, 1963
Experience:
April 2019-present	Executive Officer, General Manager, Internal Audit Department of Kirin Holdings Company, Limited
March 2019-present	Audit & Supervisory Board Member of China Resources Kirin Beverages (Greater China) Company, Limited
March 2017	Executive Officer, General Manager, Accounting Department of Kirin Company, Limited
April 2016	General Manager, Accounting Department of Kirin Company, Limited
March 2016	Director of the Board of Lion (Australia)
March 2014	Group Finance Director of Kirin Holdings Company, Limited
October 2011	Director of the Board of San Miguel Brewery Inc.
April 1987	Joined Kirin Brewery Company, Limited

Kenichi Fujinawa

Date of birth:	February 18, 1955
Experience:
January 2020-present	Senior Counsel of Nagashima Ohno & Tsunematsu
January 2015	Chairman of Nagashima Ohno & Tsunematsu
January 2004	Managing Partner of Nagashima Ohno & Tsunematsu
January 2000	Partner of Nagashima Ohno & Tsunematsu
October 1988	Partner of Nagashima & Ohno
April 1980	Registered as lawyer in Japan
	Joined Nagashima & Ohno

Supplementary Documents to the Consolidated Financial Statements for the Year Ended December 31, 2021

1. Summary of Consolidated Statement of Financial Position

2. Summary of Consolidated Statement of Profit or Loss, Indices, etc.

3. Revenue Details

4. Profit Details

5. Summary of Consolidated Statement of Cash Flows

1 .SUMMARY OF CONSOLIDATED STATEMENT OF FINANCIAL POSITION

				(¥ billions)
	As of December 31, 2021, Actual	As of December 31, 2020, Actual	Increase (decrease)	Description of changes
Non-current assets	1,645.3	1,592.8	52.5
Property, plant and equipment	533.9	521.9	11.9
Goodwill	264.2	245.7	18.5
Intangible assets	196.3	209.3	(13.0)
Equity-accounted investees	399.4	387.5	11,9
Other	251.5	228.4	23.1
Current assets	826.6	866.5	(39.9)
Inventories	247.2	217.2	30.1
Trade and other receivables	387.9	372.1	15.8
Cash and cash equivalents	149.5	161.7	(12.2)
Other	42.0	115.6	(73.6)	Assets held for sale, etc.
Total assets	2,471.9	2,459.4	12.6
Equity	1,148.0	1,095.9	52.1
Equity attributable to owners of the Company	894.2	838.6	55.6
Non-controlling interests	253.8	257.4	(3,5)
Non-current liabilities	725.0	625.9	99.0
Bonds and borrowings	450.0	393.6	56.4	Increase due to new borrowings, etc.
Other	275.0	232.3	42.7
Current liabilities	599.0	737.5	(138.5)
Bonds and borrowings	101.5	249.0	(147.5)	Decrease in commercial paper, etc.
Trade and other payables	229.6	220.3	9.3
Other	267.9	268.2	(0.3)
Total liabilities	1,323.9	1,363.4	(39.5)
Total equity and liabilities	2,471.9	2,459.4	12,6

2.SUMMARY OF CONSOLIDATED STATEMENT OF PROFIT OR LOSS, INDICES, etc.

(1) Summary of Statement of Profit or Loss, Indices, etc.

				(¥ billions)
	Year ended December 31, 2021, Actual	Year ended December 31, 2020, Actual	Increase (decrease)
Revenue	1,821.6	1,849.5	(28.0)	(1.5%)
Gross profit	822.8	803.9	19.0	2.4%
Selling, general and administrative expenses	657.4	641.8	15.6	2.4%
Normalized operating profit	165.4	162.1	3.3	2.0%
Other operating income	8.2	6.4	1.9	29.2%
Other operating expenses	105.6	65.6	40.0	61.0%
Operating profit	68.1	102.9	(34.8)	(33.8%)
Finance income	4.1	5.4	(1.3)	(24.3%)
Finance costs	7.0	8.5	(1.5)	(17.3%)
Share of profit of equity-accounted investees	34.5	24.8	9.7	39.3%
Profit before tax	99.6	124.6	(24.9)	(20.0%)
Income tax expense	31.2	24.7	6.5	26.2%
Profit	68.4	99.8	(31.4)	(31.5%)
Owners of the Company	59.8	71.9	(12.1)	(16.9%)
Non-controlling interests	8.6	27.9	(19.3)	(69.1%)
ROIC	4.2%	6.0%
Normalized EPS	¥156	¥136	¥20	14.7%
Revenue (excluding liquor tax)	1,536.0	1,572.6	(36.6)	(2,3%)
Normalized operating profit ratio (excluding liquor tax)	10.8%	10.3%
ROE	6.9%	8.2%
Normalized EBITDA	245.9	244.0	1.9	0.8%
Grass Debt Equity Ratio	0.62	0.77

(Reference) Indices excluding the impact of fluctuation in exchange rate ^*

	Year ended December 31, 2021, Actual
Normalized operating profit	163.2
ROIC	3.6%
Normalized EPS	¥151

^* Converted foreign currency amounts of the actual results at the exchange rate of the initial forecast announced on February 15, 2021.

ROIC= Profit after tax before interest / (Average total interest-bearing liabilities at beginning and end of the period + Average total equity at beginning and end of the period)

Normalized EPS = Normalized profit / Average number of shares outstanding during period

Normalized profit = Profit attributable to Owners of the Company ± Other operating income and expenses and other items after income taxes

Normalized EBITDA = Normalized operating profit + Depreciation and amortization ^* + Dividends received from equity-accounted investees

^* Depreciation and amortization exclude those from right-of-use assets.

(2) Exchange Rate for the Consolidation of Profit or Loss of the Major Overseas Companies

		(¥)
	Year ended December 31, 2021, Actual	Year ended December 31,2020, Actual
Lion (AUD)	82.67	75,09
Myanmar Brewery (MMK ('000))	68.36	77.87
Coke Northeast (USD)	110.37	106.43

(3) Period for the Consolidation of Profit or Loss of the Major Overseas Company

	Year ended December 31, 2021, Actual	Year ended December 31, 2020, Actual
San Miguel Brewery	From October 2020 to September 2021	From October 2019 to September 2020

3. REVENUE DETAILS

(1) Revenue Details

				(¥ billions)
	Year ended December 31, 2021, Actual	Year ended December 31, 2020, Actual	Increase (decrease)
Revenue	1,821.6	1,849.5	(28.0)	(1.5%)
Japan Beer and Spirits	661.3	651.4	9.9	1.5%
Kirin Brewery	638.3	632.2	6.1	1.0%
Other and elimination	23.0	19.3	3.8	19.6%
Japan Non-alcoholic Beverages	244.4	252.2	(7.8)	(3.1%)
Kirin Beverage	246.6	254.2	(7.6)	(3.0%)
Elimination	(2.2)	(2.0)	(0.2)	-
Oceania Adult Beverages	216.3	292.1	(75.9)	(26.0%)
Lion	216.3	292.2	(75.9)	(26.0%)
Elimination	(0.1)	(O.0)	(0.0)	-
Pharmaceuticals	351.7	317.8	33.9	10.7%
Kyowa Kirin	352.2	316.4	33.9	10.6%
Elimination	(0.5)	(0.6)	0.0	-
Other	347.9	336.0	11.9	3.5%
Mercian	57.9	62.1	(4.2)	(6.8%)
Myanmar Brewery	19.3	31.8	(12.5)	(39.3%)
Coke Northeast	154.9	129.4	25.5	19.7%
Kyowa Hakko Bio	53.0	57.3	(4.3)	(7.5%)
Other and elimination	62.8	55.4	7.4	13.3%

Oceania Integrated Beverages has been renamed Oceania Adult Beverages due to the sale of Lion Dairy and Drinks business, effective from 2021.

In addition, the descriptions of "Beer, Spirits, and Wine" and "Dairy and Drinks" of Lion have been omitted from 2021.

(Reference) Revenue excluding liquor tax

		(¥ billions)
	Year ended December 31, 2021, Actual	Year ended December 31, 2020, Actual
Kirin Brewery	371.3	373.1

(2) Sales Volume Details of Major Business Companies a.Kirin Brewery

	Year ended December 31, 2021		Year ended December 31, 2020
	Actual	Increase (decrease)	Actual	Increase (decrease)
Sales volume	Thousand KL		Thousand KL
Beer	475	4.1%	456	(18.6%)
Happo-shu	387	0.9%	384	(2.1%)
New genre	709	(11.2%)	798	4.6%
Sub-total	1,571	(4.1%)	1,638	(4.5%)
RTD	449	4.7%	429	12.3%
Non-alcohol beverages	49	10.9%	44	10.8%

The above sales volume excludes exports and liquor tax exempts.

b. Kirin Beverage Group

	Year ended December 31, 2021		Year ended December 31,2020
	Actual	Increase (decrease)	Actual	Increase (decrease)
Category	10,000 cases		10,000 cases
Black tea	4,991	(1.4%)	5,064	(11.3%)
Japanese tea	3,104	(4,7%)	3,257	(4.7%)
Coffee	2,585	10.7%	2,334	(15.4%)
Fruit and vegetable juice	2,407	4.0%	2,314	(5,7%)
Carbonated beverage	1,313	(14.2%)	1,529	(20.7%)
Functional beverage	1,177	3.1%	1,141	(0.2%)
Water	3,673	(11.9%)	4,169	(2.0%)
Other	1,525	(6.5%)	1,630	(14.7%)
Total	20,775	(3.1%)	21,439	(9.1%)
Container Type
Can	2,421	(7.0%)	2,603	(17.8%)
Large-sized PET bottles (2L, 1.5L, etc.)	6,726	(11.8%)	7,624	(3.1%)
Small-sized PET bottles (500ml, 280ml, etc.)	9,726	3.3%	9,416	(10.8%)
Other	1,903	5.9%	1,796	(10.3%)
Total	20,775	(3.1%)	21,439	(9.1%)

4. PROFIT DETAILS

(1) Normalized Operating Profit Details

				(¥ billions)
	Year ended December 31, 2021, Actual	Year ended December 31, 2020, Actual	Increase (decrease)
Normalized operating profit	165.4	162.1	3,3	2.0%
Japan Beer and Spirits	70.5	75.5	(5.0)	(6.6%)
Kirin Brewery	68.0	73.2	(5.2)	(7.1%)
Others	2.6	2.3	0.3	11.0%
Japan Non-alcoholic Beverages	21,1	21.8	(0.7)	(3.0%)
Kirin Beverage	21.1	21.8	(0.7)	(3.0%)
Oceania Adult Beverages	26.6	22.1	4.4	20.0%
Lion	26.6	22.1	4.4	20.0%
Pharmaceuticals	61.2	59.0	2.2	3.7%
Kyowa Kirin	61.2	59.0	2.2	3.7%
Other	31.3	29.3	2.0	7.0%
Mercian	2.3	3.6	(1.2)	(35.1%)
Myanmar Brewery	6.6	13.8	(7.2)	(52.2%)
Coke Northeast	16.5	9.3	7.2	78.3%
Kyowa Hakko Bio	0.4	(2.3)	2.6	-
Others	5.6	4.9	0.6	13.0%
Corporate expenses and inter-segment eliminations	(45,3)	(45.6)	0,3	-

Each normalized operating profit In each segment is calculated by adding back management fees paid to the Company to normalized operating profit.

Oceania Integrated Beverages has been renamed Oceania Adult Beverages due to the sale of Lion Dairy and Drinks business, effective from 2021. In addition, the descriptions of "Beer, Spirits, and Wine," "Dairy and Drinks" and "Corporate" of Lion have been omitted from 2021.

(2) Normalized Operating Profit Breakdown of Major Business Companies

			(¥ billions)
Company name	Major factors	Increase (decrease)	Description
Kirin Brewery	Increase in marginal profit of alcohol beverages, etc.	0.7	Total beer products (3.9)
			Sales increase in beer 19 thousand KL
			Sales Increase in happo-shu 4 thousand KL
			Sales decrease in new genre (90) thousand KL
			Total other than beer products 2.0
			Sales increase in RTD 20 thousand KL
			Sales increase in non-alcohol beverages 5 thousand KL, etc.
			Difference of change in composite of products, etc. 2.6
	Increase in raw material cost of alcohol beverages	(0,4)
	Increase In selling expenses	(7.3)	Increase in sales promotion (2.0), increase in advertising (5.2) (Total 59.2->66.5)
	Decrease in other expenses	1.8
Total		(5.2)
Kirin Beverage	Decrease in marginal profit of soft drink beverages	(4.2)	Decrease in sales volume (6.63) million cases (3.1) Difference of change in products mix and composition ratio of containers, etc. (1.1)
	Increase in raw material cost, etc.	(0.4)	Increase in raw material cost (0.8), decrease in material cost 0.7, Increase in processing cost (0.3)
	Decrease in selling expenses	3.4	Decrease in sales promotion 3,4, advertising 0.0 (Total 30.7→27.2)
	Decrease in other expenses	0.5
Total		(0.7)

(3) Other Operating Income and Other Operating Expenses

			(¥ billions)
	Year ended December 31, 2021, Actual	Year ended December 31,2020, Actual	Increase (decrease)
Other operating income	8.2	6.4	1.9
Gain on sale of property, plant and equipment and intangible assets	3.1	1.6	1.4
Gain on sale of shares of subsidiaries	0.0	0.0	(0.0)
Other	5.2	4.7	0,4
Other operating expenses	105.6	65.6	40.0
Impairment losses	77.4	29.6	47.8
Business restructuring expenses	2.0	7.1	(5.1)
Software development expenses	14.8	14.4	0.4
Loss on disposal and sale of property, plant and equipment and intangible assets	2.0	1.9	0.1
Other	9.3	12.5	(3.2)

(4) Finance Income, Finance Costs, Share of Profit of Equity-accounted Investees, etc.

			(¥ billions)
	Year ended December 31, 2021, Actual	Year ended December 31, 2020, Actual	Increase (decrease)
Finance income	4.1	5.4	(1.3)
Interest income	2.0	1.6	0,4
Dividend Income	0.7	1.1	(0.4)
Foreign exchange gains (net)	0.9	-	0.9
Other	0.5	2.6	(2.2)
Finance costs	7.0	8.5	(1.5)
Interest paid	4.4	4.9	(0.4)
Foreign exchange losses (net)	-	1.2	(1.2)
Change in the fair value of contingent consideration	1.3	-	1.3
Other	1.3	2.4	(1.1)
Share of profit of equity-accounted Investees	34.5	24.8	9.7
San Miguel Brewery	21.7	19.1	2.6
Others	12.8	5.7	7.1

5. SUMMARY OF CONSOLIDATED STATEMENT OF CASH FLOWS

(1) Summary of Statement of Cash Flows

			(¥ billions)
	Year ended December 31, 2021, Actual	Year ended December 31, 2020, Actual	Increase (decrease)
Cash flows from operating activities	219.3	164.8	54,5
Profit before tax	99.6	124.6	(24.9)
Depreciation and amortization	81.1	B2.1	(1.0)
Other	38.6	(41,8)	80.4
Cash flows from investing activities	(56,4)	(116.0)	59.6
Acquisition of property, plant and equipment and Intangible assets	(86.3)	(93.0)	6.7
Other	29.9	(23.0)	52.9
Cash flows from financing activities	(180.5)	(52.5)	(128.0)
Increase (decrease) in interest-bearing liabilities	(96.4)	116.8	(213.1)
Dividends paid	(65.4)	(70.1)	4.8
Other	(18.7)	(99.1)	80,4
Exchange rate changes.	5.4	(0.4)	5.8
Net increase (decrease) in cash and cash equivalents	(12.2)	(4.0)	(8.2)

(2) Information by Segment

As of December 31, 2021, Actual

							(¥ billions)
	Japan Beer and Spirits	Japan Non-alcoholic Beverages	Oceania Adult Beverages	Pharmaceuticals	Others	Adjustment	Total
Depreclation and amortization	12.4	6.3	10.3	15,9	16.2	1.3	62.4
Acquisition of property, plant and equipment and intangible assets	17.4	8.0	9.3	19.3	18.5	13.9	86,3
Normalized EBITDA	82.9	27.	36.8	77.1	65.5	(44.0)	245.9

Depreciation and amortization exclude those from right-of-use assets.

As of December 31, 2020, Actual

							(¥ billions)
	Japan Beer and Spirits	Japan Non-alcoholic Beverages	Oceania Adult Beverages	Pharmaceuticals	Others	Adjustment	Total
Depreciation and amortization	12.7	6.4	10.6	15.8	16.7	2.2	64.4
Acquisition of property, plant and equipment and intangible assets	11.2	6.6	8.2	32.8	19.3	14.9	93.0
Normalized EBITDA	88.2	28.2	32.7	74.8	63.4	(43.3)	244.0

Depreciation and amortization exclude those from right-of-use assets.

Supplementary Documents to the Forecast Consolidated Business Results for the Year Ending December 31, 2022

1. Summary of Consolidated Statements of Profit or Loss, Indices, etc.

2. Revenue Details

3. Profit Details

4. Information by Segment

1. SUMMARY OF CONSOLIDATED STATEMENT OF PROFIT OR LOSS, INDICES, etc.

(1) Summary of Statement of Profit or Loss, Indices, etc.

				(¥ billions)
	Year ending December 31, 2022, Forecast	Year ended December 31, 2021, Actual	Increase (decrease)
Revenue	1,950.0	1,821.6	128.4	7.1 %
Normalized operating profit	166.0	165.4	0.6	0.3%
Other operating income	3.1	8.2	(5.1)	(62.5%)
Other operating expenses	26.1	105.6	(79.5)	(75.3%)
Operating profit	143.0	68.1	74.9	110.0%
Finance income	2.1	4.1	(2.0)	(47.9%)
Finance costs	4.5	7.0	(2.5)	(35.8%)
Share of profit of equity-accounted investees	36.4	34.5	1.9	5.5%
Profit before tax	177.0	99.6	77.4	77.7%
Income tax expense	37.5	31.2	6.3	20.2%
Profit	139.5	68.4	71.1	103.9%
Owners of the Company	114.5	59.8	54.7	91.5%
Non-controlling interests	25.0	8.6	16.4	189.5%
ROIC	8.3%	4.2%
Normalized EPS	¥157	¥156	¥1	0.6%
Revenue (excluding liquor tax)	1,637.0	1,536.0	101.0	6.6%
Normalized operating profit ratio (excluding liquor tax)	10.1%	10.8%
ROE	12.6%	6.9%
Normalized EBITDA	250.6	245.9	4.7	1.9%
Gross Debt Equity Ratio	0.56	0.62

ROIC = Profit after tax before interest / (Average total interest-bearing liabilities at beginning and end of the period + Average total equity at beginning and end of the period)

Normalized EPS = Normalized profit / Average number of shares outstanding during period

Normalized profit = Profit attributable to Owners of the Company ± Other operating income and expenses and other items after income taxes

Normalized EBITDA = Normalized operating profit + Depreciation and amortization ^* + Dividends received from equity-accounted investees

^* Depreciation and amortization exclude those from right-of-use assets.

(2) Exchange Rate for the Consolidation of Profit or Loss of the Major Overseas Companies

		(¥)
	Year ending December 31, 2022, Forecast	Year ended December 31, 2021, Actual
Lion (AUD)	82.00	82.67
Coke Northeast (USD)	113.00	110.37

(3) Period for the Consolidation of Profit or Loss of the Major Overseas Company

	Year ending December 31, 2022, Forecast	Year ended December 31, 2021, Actual
San Miguel Brewery	From October 2021 to September 2022	From October 2020 to September 2021

2. REVENUE DETAILS

(1) Revenue Details

				(¥ billions)
	Year ending December 31, 2022, Forecast	Year ended December 31, 2021, Actual	Increase (decrease)
Revenue	1,950.0	1,821.6	128.4	7.1%
Japan Beer and Spirits	721.7	661,3	80.4	9.1%
Kirin Brewery	695.5	638.3	57.2	9.0%
Other and elimination	26.2	23.0	3.1	13.6%
Japan Non-alcoholic Beverages	256.7	244.4	12.3	5.0%
Kirin Beverage	258.8	246.6	12.2	4.9%
Elimination	(2.1)	(2.2)	0.1	-
Oceania Adult Beverages	239.9	216.3	23.6	10.9%
Lion	239.9	216.3	23.6	10.9%
Elimination	(0.0)	(0.1)	0.0	-
Pharmaceuticals	379.3	351.7	27.6	7.9%
Kyowa Kirin	380.0	352.2	27.8	7.9%
Elimination	(0.7)	(0.5)	(0.1)	-
Other	352.4	347.9	4.5	1.3%
Mercian	60.4	57.9	2.5	4.3%
Myanmar Brewery	-	19.3	(19.3)	-
Coke Northeast	160.3	154.9	5.5	3.5%
Kyowa Hakko Bio	55.6	53.0	2.6	4.9%
Other and elimination	76.1	62.8	13.3	21.2%

Business forecast for Myanmar Brewery Limited includes significant uncertainty. Considering the possible events that will occur in the future, the financial impact of Myanmar Brewery Limited is not expected to be material, thus both sales revenue and normalized operating profit is set nil, leading to be included in 'Other and elimination' from 2022.

(Reference) Revenue excluding liquor tax (¥ billions)

	Year ending December 31, 2022, Forecast	Year ended December 31, 2021, Actual
Kirin Brewery	404.4	371.3

(2) Sales Details of Major Business Companies a. Kirin Brewery

	Year ending December 31, 2022		Year ended December 31, 2021
	Forecast	Increase (decrease)	Actual	Increase (decrease)
Sales volume	Thousand KL		Thousand KL
Beer	598	25.9%	475	4.1%
Happo-shu	361	(6.8%)	387	0.9%
New genre	716	1.0%	709	(11.2%)
Sub-total	1.675	6.6%	1,571	(4.1%)
RTD	492	9.5%	449	4.7%
Non-alcohol beverages	58	17.8%	49	10.9%

The above sales volume excludes exports and liquor tax exempts.

b.Kirin Beverage Group

	Year ending December 31. 2022		Year ended December 31, 2021
	Forecast	Increase (decrease)	Actual	Increase (decrease)
Category	10.000 cases		10,000 cases
Black tea	5,541	11.0%	4,991	(1.4%)
Japanese tea	3,381	8.9%	3,104	(4.7%)
Coffee	2,584	(0.0%)	2,585	10.7%
Fruit and vegetable Juice	2,345	(2.6%)	2,407	4.0%
Carbonated beverage	1,369	4.3%	1,313	(14.2%)
Water	3,301	(10.1%)	3,673	(11.9%)
Other	2,618	(3.1%)	2,702	(2.5%)
Total	21,138	1.7%	20,775	(3.1%)
Container Type
Can	2,534	4.7%	2,421	(7.0%)
Large-sized PET bottles (2L, 1,5L, etc.)	6,309	(6.2%)	6,726	(11.8%)
Small-sized PET bottles (500ml, 280ml, etc.)	10,417	7.1%	9,726	3.3%
Other	1,878	(1.3%)	1,903	5.9%
Total	21,138	1.7%	20,775	(3.1%)
Domain
Food & Beverage domain	18.820	0.4%	18,739	(5.1%)
Health science domain	2,318	13.9%	2,036	20.9%
Lactococcus lactis strain Plasma	758	45.0%	523	65.1%
Total	21,138	1.7%	20,775	(3.1%)

' Functional beverage' is included in 'Other' from 2022.

3. PROFIT DETAILS

(1) Normalized Operating Profit Details

				(¥ billions)
	Year ending December 31, 2022, Forecast	Year ended December 31, 2021, Actual	Increase (decrease)
Normalized operating profit	166.0	165.4	0.6	0.3%
Japan Beer and Spirits	82.5	70.5	11.9	16,9%
Kirin Brewery	80.0	68.0	12.0	17.7%
Others	2.5	2.6	(0.1)	(3.3%)
Japan Non-alcoholic Beverages	18,0	21.1	(3.1)	(14.7%)
Kirin Beverage	18.0	21.1	(3.1)	(14.7%)
Oceania Adult Beverages	34.5	26.6	7.9	29.8%
Lion	34.5	26.6	7.9	29.8%
Pharmaceuticals	64.0	61.2	2.8	4.6%
Kyowa Kirin	64.0	61.2	2.8	4.6%
Other	23.5	31.3	(7.9)	(25.1%)
Mercian	1.5	2.3	(0.8)	(34.2%)
Myanmar Brewery	-	6.6	(6.6)	-
Coke Northeast	17.2	16.5	0.7	4.0%
Kyowa Hakko Bio	0.5	0.4	0.1	38.0%
Others	4.3	5.6	(1.3)	(22.9%)
Corporate expenses and inter-segment eliminations	(56.4)	(45.3)	(11.1)	-

(2) Normalized Operating Profit Breakdown of Major Business Companies

			(¥ billions)
Company name	Major factors	Increase (decrease)	Description
Kirin Brewery	Increase in marginal profit of alcohol beverages, etc.	19.5	Total beer products 16.2 Sales increase in beer 123 thousand KL Sales decrease in happo-shu (26) thousand KL Sales increase in new genre 7 thousand KL Total other than beer products 4.8 Sales increase in RTD 43 thousand KL Sales increase in non-alcohol beverages 9 thousand KL, etc. Difference of change in composite of product etc. (1.5)
	Increase in raw material cost of alcohol beverages	(3.0)	Increase in market prices, etc.
	Increase in selling expenses	(0.6)	Increase in sales promotion and advertising (0.6) (Total 66.5→67.1), etc.
	Increase in other expenses	(3.9)	Increase in expenditures, etc.
Total		12.0
Kirin Beverage	Increase in marginal profit of soft drink beverages	7.6	Increase in sales volume 3.62 million cases 1.7 Difference of change in products mix and composition ratio of containers, etc. 5.9
	Increase in raw material cost, etc.	(5.3)	Increase in raw material cost (3.7), increase in material cost (0.5), increase in processing cost (1.1)
	Increase in selling expenses	(2.5)	Increase in sales promotion and advertising (2.5) (Total 27.2-29.7)
	Increase in other expenses	(2.9)	Increase in sales equipment cost (0.8) and increase in business consignment expenses (0.8).
Total		(3.1)

4. INFORMATION BY SEGMENT

Year ending December 31, 2022, Forecast

							(¥ billions)
	Japan Beer and Spirits	Japan Non-alcoholic Beverages	Oceania Adult Beverages	Pharmaceuticals	Others	Adjustment	Total
Depreciation and amortization	12.7	7.3	8.9	16.8	14.9	6.2	66.9
Acquisition of property, plant and equipment and intangible assets	16.9	10.9	16.4	25.6	33.3	5.3	108.5
Normalized EBITDA	95.2	25.3	43.4	80.8	56.1	(50.2)	250.6

Depreciation and amortization exclude those from right-of-use assets.

Year ended December 31,2021, Actual

							(¥ billions)
	Japan Beer and Spirits	Japan Non-alcoholic Beverages	Oceania Adult Beverages	Pharmaceuticals	Others	Adjustment	Total
Depreciation and amortization	12.4	6.3	10.3	15.9	16.2	1.3	62.4
Acquisition of property, plant and equipment and intangible assets	17.4	8.0	9.3	19.3	18.5	13.9	86,3
Normalized EBITDA	82.9	27.4	36.8	77,1	65,5	(44.0)	245.9

Depreclation and amortization exclude those from right-of-use assets.

2d:T6e7d4,

KYOWA HAKKO Europe Gesellschaft mit beschränkter Haftung

Düsseldorf

Befreiender Konzernabschluss zum Geschäftsjahr vom 01.01.2023 bis zum 31.12.2023

KIRIN Holdings Company, Limited

Tokio/Japan

SUMMARY OF CONSOLIDATED FINANCIAL RESULTS FOR THE YEAR ENDED DECEMBER 31, 2023 (UNDER IFRS) (UNAUDITED)

(English Translation)

Fiscal year ended December 31, 2023

KIRIN HOLDINGS COMPANY, LIMITED

NAKANO CENTRAL PARK SOUTH, 10-2, Nakano 4-chome, Nakano-ku, Tokyo, Japan (URL https://www.kirinholdings.com/en/)

Code No.:	2503
Shares Listed:	Tokyo
Representative:	Mr. Yoshinori Isozaki, President and CEO
For further information, please contact:	Mr. Hidefumi Matsuo, General Manager of Finance Department
	Telephone: +81-3-6837-7015 from overseas

Scheduled date of general meeting of shareholders held:	March 28, 2024
Commencement date of dividend distribution scheduled:	March 29, 2024
Submission date of securities report scheduled:	March 28, 2024
Preparation of supplementary documents to the financial results:	Yes
Holding of financial results presentation (for institutional investors and analysts):	Yes

1. Consolidated business results and financial position for the current fiscal year

(January 1, 2023 - December 31, 2023)

[Unit: Japanese yen (¥)]

(1) Results of operations:

(Amounts are rounded to the nearest ¥1 million)

(Percentage change compares current results with those of the same period of the previous year)

	Revenue	Percentage change	Normalized operating profit	Percentage change	Profit before tax	Percentage change
	(¥ millions)	(%)	(¥ millions)	(%)	(¥ millions)	(%)
Fiscal year ended
December 31, 2023	2,134,393	7.3	201,495	5.4	197,049	3.0
December 31, 2022	1,989,468	9.2	191,159	15.6	191,387	92.1

	Profit	Percentage change	Profit attributable to owners of the Company	Percentage change	Total comprehensive	Percentage change
	(¥ millions)	(%)	(¥ millions)	(%)	income (¥ millions)	(%)
Fiscal year ended
December 31, 2023	150,438	4.6	112,697	1.5	261,801	19.1
December 31, 2022	143,771	110.1	111,007	85.7	219,836	87.4

	Basic earnings per share	Diluted earnings per share	Ratio of profit to equity attributable to owners of the Company	Ratio of profit before tax to total assets	Ratio of normalized operating profit to revenue
	(¥)	(¥)	(%)	(%)	(%)
Fiscal year ended
December 31, 2023	139.16	139.15	10.7	7.3	9.4
December 31, 2022	135.08	135.07	11.8	7.6	9.6

Reference: Share of profit of equity-accounted investees	Fiscal year ended December 31, 2023	¥32,773 million
	Fiscal year ended December 31, 2022	¥22,780 million

Operating profit	Fiscal year ended December 31, 2023	¥150,294 million	29.5%
	Fiscal year ended December 31, 2022	¥116,019 million	70.4%
Ratio of operating profit to revenue	Fiscal year ended December 31, 2023	7.0%
	Fiscal year ended December 31, 2022	5.8%

^* Normalized operating profit is a profit indicator for measuring recurring performance which is calculated by deducting cost of sales and selling, general and administrative expenses from revenue.

(2) Financial position:

	Total assets	Total equity	Equity attributable to owners of the Company	Equity ratio attributable to owners of the Company	Equity per share attributable to owners of the Company
	(¥ millions)	(¥ millions)	(¥ millions)	(%)	(¥)
As of
December 31, 2023	2,869,585	1,425,838	1,132,581	39.5	1,398.47
December 31, 2022	2,542,263	1,253,203	980,022	38.5	1,210.16

(3) Cash flows:

	Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of year
	(¥ millions)	(¥ millions)	(¥ millions)	(¥ millions)
Fiscal year ended December 31, 2023	203,206	(226,091)	35,909	131,399
Fiscal year ended December 31, 2022	135,562	(10,399)	(167,835)	88,060

2. Dividends

	Annual dividends
	First quarter	Second quarter	Third quarter	Year-end	Total
	(¥)	(¥)	(¥)	(¥)	(¥)
Fiscal year ended December 31, 2022	-	32.50	-	36.50	69.00
Fiscal year ended December 31, 2023	-	34,50	-	36.50	71.00
Fiscal year ending December 31, 2024 (Forecast)	-	35.50	-	35.50	71.00

	Total amount of dividends	Dividend pay-out ratio	Ratio of dividends to equity attributable to owners of the Company
	(¥ millions)	(%)	(%)
Fiscal year ended December 31, 2022	56,381	51.1	6.0
Fiscal year ended December 31, 2023	57,637	51.0	5.4
Fiscal year ending December 31, 2024 (Forecast)		43.9

3. Forecast consolidated business results for the next fiscal year (January 1, 2024 - December 31, 2024)

(Percentage change compares forecast results with actual results of the previous year)

	Revenue	Percentage change	Normalized operating profit	Percentage change	Profit before tax	Percentage change
	(¥ millions)	(%)	(¥ millions)	(%)	(¥ millions)	(%)
Fiscal year ending December 31, 2024	2,270,000	6.4	202,000	0.3	219,000	11.1

	Profit	Percentage change	Profit attributable to owners of the Company	Percentage change	Basic earnings per share
	(¥ millions)	(%)	(¥ millions)	(%)	(¥)
Fiscal year ending December 31, 2024	161,000	7.0	131,000	16.2	161.75

Reference:

Operating profit

Fiscal year ending December 31, 2024

¥185,000 million

23.1%

* Notes

(1) Changes in significant subsidiaries for the fiscal year ended December 31, 2023

Yes

(Changes in specified subsidiaries accompanying change in scope of consolidation):

Newly included: 3 companies

	Blackmores Limited
	Excluded: -
	Kirin Health Science Australia Pty Ltd
	Kirin Holdings Australia Pty Ltd

(2) Changes in accounting policies and changes in accounting estimates

i. Changes in accounting policies required by IFRS:	Yes
ii. Changes in accounting policies due to other reasons:	None
iii. Changes in accounting estimates:	Yes

Note: For details, please see "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CHANGES IN ACCOUNTING POLICIES)" and "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CHANGES IN ACCOUNTING ESTIMATES)" on page 19.

(3) Number of shares outstanding (ordinary shares)

i. Number of shares outstanding at the end of the period (including treasury shares)
As of December 31, 2023	914,000,000 shares
As of December 31, 2022	914,000,000 shares
ii. Number of treasury shares at the end of the period
As of December 31, 2023	104,126,200 shares
As of December 31, 2022	104,171,578 shares
iii. Average number of shares during the period
For the fiscal year ended December 31, 2023	809,853,429 shares
For the fiscal year ended December 31, 2022	821,755,308 shares

Note: Number of treasury shares at the end of the period includes shares held in the BIP (Board Incentive Plan) Trust (1,911,065 shares at December 31, 2023 and 1,965,900 shares at December 31, 2022). These shares are excluded in calculation of the average number of shares during the period.

* The summary of consolidated financial results is not subject to audit by certified public accountants or an audit corporation.

* Information about proper usage of forecast business results, and other special instructions

(1)

The statements concerning future performance that are presented in this document are based on judgments using information available to Kirin Holdings and the Kirin Group as of the release date of this material. Certain risks and uncertainties could cause the results of Kirin Holdings and the Kirin Group to differ materially from any projections presented herein. These risks and uncertainties include, but are not limited to, the economic circumstances surrounding the Company's businesses, market trends, and exchange rates.

(2)

The Company will post the Supplementary Documents to the Financial Results today, Wednesday, February 14, and will post the presentation materials from the financial results presentation to be held on Thursday, February 15, the presentation content (video) and the main Q&A at the meeting as soon as possible on the Company's website.

(URL of the Company's website)

https://www.kirinholdings.com/en/investors/

INDEX

1. KIRIN GROUP'S CURRENT BUSINESS PERFORMANCE

(1) STATEMENT OF BUSINESS ACTIVITIES AND RESULTS

(2) FINANCIAL POSITION

(3) BASIC POLICY AND DISTRIBUTION OF PROFITS AND DIVIDEND FOR 2023 AND 2024

2. BASIC RATIONALE FOR SELECTION OF ACCOUNTING STANDARDS

3. CONSOLIDATED FINANCIAL STATEMENTS

(1) CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(2) CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND COMPREHENSIVE INCOME

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(3) CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(4) CONSOLIDATED STATEMENT OF CASH FLOWS

(5) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(GOING CONCERN ASSUMPTION)

(CHANGES IN ACCOUNTING POLICIES)

(CHANGES IN ACCOUNTING ESTIMATES)

(SEGMENT INFORMATION)

(PER SHARE INFORMATION)

(SIGNIFICANT SUBSEQUENT EVENTS)

(ADDITIONAL INFORMATION)

4. OTHER

CHANGES OF REPRESENTATIVE DIRECTORS AND BOARD MEMBERS

1. KIRIN GROUP'S CURRENT BUSINESS PERFORMANCE

1) STATEMENT OF BUSINESS ACTIVITIES AND RESULTS

In 2023, COVID-19 was moved to Category 5 under the Infectious Diseases Control Law in Japan, and social and working life has changed once again. People's mobility has become more active, and cities are becoming more lively. Meanwhile, geopolitical risks have increased in various regions of the world, and global inflation and exchange rate fluctuations have continued. In addition, the risk of new infectious diseases is increasing due to global warming, and IT technologies, including generative Al, are rapidly evolving.

Since its founding, the Kirin Group has consistently focused on fermentation and biotechnology as its core technologies, and continues to evolve into a corporate group that is unique, with strengths not only in alcoholic beverages and non-alcoholic beverages businesses, but also in pharmaceuticals businesses.

Backed by this core technology, we have been working since 2019 on the health science business utilizing distinctive materials such as Lactococcus lactis strain Plasma (LC-Plasma)*1.

We will use the strengths of the Kirin Group to solve not only health and well-being issues, but also other issues facing society, while at the same time creating economic value as a company and maximizing corporate value.

In 2023, the Kirin Group steadily produced results even in an environment of increasing uncertainty. Under the Long-Term Management Vision Kirin Group Vision 2027 (KV2027), the Kirin Group promoted the increase of profits in the Food & Beverages domain, the strengthening of the global foundation in the Pharmaceuticals domain, and the expansion of the Health Science domain in order to achieve the goals of the Kirin Group 2022- 2024 Medium-Term Business Plan (2022 MTBP).

In 2023, we pushed forward with the following initiatives to enhance our ability to execute toward the achievement of KV2027.

1. Food & Beverages Domain

In the Alcoholic beverages and Non-alcoholic beverages business, Kirin Holdings worked to strengtheng its mainstay brands in Japan and overseas and expand high-value-added products to nurture new growth engines. In addition, we responded to the severe environment, including soaring raw material prices, by cutting costs and revising prices, and worked to improve profitability.

2. Pharmaceuticals Domain

Kyowa Kirin Co., Limited focused on maximizing the value of global strategic products. In addition, we worked to strengthen our foundation for sustainable growth as a Japan-based global specialty pharmaceutical company*2, including signing an agreement to acquire shares of Orchard Therapeutics plc (Orchard Therapeutics), a UK-based biopharmaceutical company, in order to expand our next-generation pipeline and meet future medical needs.

3. Health Science Domain

Centered on the LC-Plasma-related business, we expanded the scale of our business through aggressive development of our own group products such as non-alcoholic beverages and supplements, as well as through product development by external partner companies. In addition, we acquired shares in Blackmores Limited (Blackmores), an Australian company that develops health food (natural health) businesses, including supplements in the Asia-Pacific region, thereby strengthening our structure to accelerate the growth of our Health Science domain.

1.	A lactic acid bacterium that supports the maintenance of immune function in healthy people. Named after plasmacytoid dendritic cells (pDCs), which are immune cells, the Kirin Group has published many papers and presented at many conferences in collaboration with universities and research institutions in Japan and overseas.
2.	A pharmaceutical company that continuously creates, develops, and markets innovative new drugs on a global scale by utilizing cutting-edge biotechnology.

We have achieved many results in terms of ESG and won high acclaim both domestically and internationally.

The Environmental Report 2023, published in July was recognized as a pioneering effort by investors and other stakeholders around the world for its example of integrated disclosure of environmental management information on the TCFD*3 and TNFD*4.

Kirin Brewery Company, Limited achieved 100% renewable energy for purchased electricity at all of its breweries and sales offices in Japan*5. At Mercian Corporation, the Chateau Mercian Mariko Vineyard was officially recognized by the Ministry of the Environment as a socio-ecological production landscapes and seascapes site (SEPLS) that contributes to the 30 by 30 Alliance for Biodiversity (30by30)*6 global goal of halting and restoring biodiversity loss..

In the Health Science domain, Kirin Holdings was highly acclaimed for its contribution to society through the discovery and commercialization of LC-Plasma, and the company received the Imperial Invention Award*7 at the 2023 National Commendation for Invention, the first time in 59 years for a food company and the first for a health and well-being ingredient.

In addition, the company received the highest ranking in the 7th Nikkei Smart Work Management Survey for the seventh consecutive year. This was in recognition of the diverse and flexible work styles and employee engagement areas. In the 5th Nikkei SDGs Management Survey, we also received the highest ranking for the fifth consecutive year. This award was given in recognition of the results of our efforts to create economic value through our business, sustainable resource utilization, and biodiversity initiatives conservation through our business activities.

3.	Taskforce on Climate-related Financial Disclosures
4.	Abbreviation of Taskforce on Nature-related Financial Disclosures, an international initiative that requires financial institutions and corporations to disclose information on business opportunities and risks in terms of natural capital and biodiversity
5.	Achieved in January 2024
6.	This goal was agreed upon in the G7 2030 Nature Compact and adopted as a new global goal at the 15th Conference of the Parties (COP15) to the UN Convention on Biological Diversity in December 2022, which aims to effectively conserve at least 30% of the land and oceans as healthy ecosystems by 2030.
7.	The awards are given to inventions, devices, and designs that have made significant contributions to the advancement of science and technology and the development of industry, as well as to inventions that are expected to make significant contributions in the future.

Consolidated revenue	2,134.4 billion yen	up 7.3%
Consolidated normalized operating profit	201.5 billion yen	up 5.4%
Consolidated profit before tax	197.0 billion yen	up 3.0%
Consolidated profit attributable to owners of the Company (Key performance indicators)	112.7 billion yen	up 1.5%
ROIC	8.0%
Normalized EPS*	177 yen	up 3.5%

Normalization: Non-recurring items such as Other operating income or expenses, etc. have been removed to more accurately reflect actual earnings.

Normalized EPS = Normalized profit / Average number of shares outstanding during period.

Normalized profit = Profit attributable to Owners of the Company + Other operating income and expenses and other items after income taxes

Results by segment are as follows.

Japan Beer and Spirits Business: Kirin Brewery Company, Limited (Kirin Brewery)

In the domestic alcoholic beverages market, amid the impact of soaring raw material prices, many companies proceeded with price revisions to secure profitability. Liquor tax revisions and price revisions in October led to a reduction in the price gap between beer and other alcoholic beverages such as happoshu and new genre*8 products. As a result, the beer category was brisk.

Kirin Brewery saw strong sales of its mainstay brand KIRIN ICHIBAN and the health-conscious KIRIN ICHIBAN Zero Sugar,*9 which were both renewed, and in addition to the firm (market) performance and the recovery of the on-premise market also provided a tailwind, and overall sales volume of the KIRIN ICHIBAN brand increased by 5% from the previous year.

In the craft beer category, a new growth engine, we strengthened the lineup by launching SPRING VALLEY Japan Ale [Aroma] from the SPRING VALLEY brand and SPRING VALLEY Afterdark [Black], a limited edition product. We also worked with distributors and craft beer makers to expand sales outlets for craft beer. In the on-premise market, we expanded the number of outlets handling Tap Marché, a beer server for restaurants, to provide customers with opportunities to experience craft beer.

Kirin Brewery's whiskey production began in 1973 when the FUJI GOTEMBA DISTILLERY started operation, and we celebrated its 50th anniversary in 2023. FUJI, our flagship brand, has expanded its sales performance by 2.7 times over the previous year, and we expanded overseas, increasing the number of European countries FUJI is sold in.

In the RTD*10 category, the mainstay Kirin Hyoketsu brand sold well. In particular, sales of the Kirin Hyoketsu Sugar Free series grew significantly, up 35% from the previous year, with the annual sales target being achieved in October. In addition, Kirin Jojo Shochu Soda, a high value-added RTD product, was launched in October, cultivating new demand as an RTD that goes well with meals.

8.	Classification under the Liquor Tax Law has been changed to happoshu (2) effective October 1, 2023.
9.	According to food labeling standards products containing less than 0.5g of sugar per 100ml can be labeled "zero sugar."
10.	Abbreviation for Ready to Drink, a canned cocktail.

Japan Beer and Spirits Business 2023 results:

Consolidated revenue	684.9 billion yen	up 3.2%
Consolidated normalized operating profit	77.7 billion yen	up 4.1%

Japan Non-alcoholic Beverages Business: Kirin Beverage Company, Limited (Kirin Beverage)

Despite the environment in the domestic non-alcoholic beverages market being difficult due to soaring raw material prices, summer demand and the health market expanded due to the extremely hot summer and growing health and well-being awareness.

In the Kirin Gogo-no-Kocha brand, we renewed the mainstay Kirin Gogo-no-Kocha to increase summer demand. In addition, we strengthened our unsweetened black tea lineup with the launch of Kirin Gogo-no-Kocha Oishii Muto Milk Tea, resulting in a 2% increase in overall sales of the Kirin Gogo-no-Kocha brand compared to the previous year. From the Kirin Nama-cha brand, Kirin Nama-cha Rich was launched in September and sold more than 10 million bottles in the first two weeks of sales.

In the Health Science domain, where we are focusing our efforts, we introduced a variety of products to the market, centered on non-alcoholic beverages containing LC-Plasma, to meet the needs of consumers and to make immune care a habit. The newly launched Kirin Oishii Immune Care series, which also includes Kirin Oishii Immune Care Calorie-Off and Kirin Oishii Immune Care Sleep, increased sales volume of small-volume PET bottled non-alcoholic beverages by 3.4 times over the previous year compared to the same container from 2022 for the small volume PET bottled beverage. In addition, the iMUSE brand was strengthened in November with the renewal of the well-received Kirin iMUSE Yogurt Taste, in preparation for winter, when health and wellbeing awareness is on the rise. As a result of these efforts, sales volume of LC-Plasma beverages increased significantly, up 35% from the previous year.

With FANCL CORPORATION we created synergies through the joint development of KIRIN x FANCL Calolimit Apple Sparkling and KIRIN x FANCL Calolimit Blended Tea and other products.

Japan Non-alcoholic Beverages Business 2023 results:

Consolidated revenue	255.0 billion yen	up 4.8%
Consolidated normalized operating profit	16.9 billion yen	down 10.1%

Oceania Adult Beverages Business: Lion Pty Limited (Lion)

the Australian alcoholic beverages market, the impact of COVID-19 has subsided, and inflation remained at a high level. In this environment, Lion Pty Ltd. worked to strengthen its mainstay brands, and as a result, sales of Hahn, which meets increasing health consciousness and well-being needs were strong, as were sales of "XXXX" (pronounced "four-ex") and other products.

In the growing RTD category, Kirin Brewery began manufacturing the Kirin Hyoketsu brand in Australia and began selling it in Australia and New Zealand.

In the craft beer business, our focus in North America, sales remained strong due to continued strong sales of New Belgium Brewing Company's Voodoo Ranger and the effect of the integration of Bell's Brewery and New Belgium Brewing Company.

Oceania Adult Beverages Business 2023 results:

Consolidated revenue	281.0 billion yen	up 9.8%
Consolidated normalized operating profit	32.4 billion yen	up 2.7%

Pharmaceuticals Business: Kyowa Kirin Co., Ltd. (Kyowa Kirin)

In 2023, the third year of the company's 2021-2025 Medium-Term Business Plan, Kyowa Kirin continued its efforts for growth as a Japan-based global specialty pharmaceutical company.

The global strategic product Crysvita*11 began sales in North America and showed steady growth with a 20% increase over the previous year.

Regarding the development pipeline, KHK4083 (generic name: rocatlinlimab*12) and other products are progressing well, while the development of RTA 402*13, has been ceased. In addition, in order to strengthen our ability to create new drugs in the future, we signed an agreement to acquire shares of Orchard Therapeutics plc (Orchard Therapeutics), which has products and product development using hematopoietic stem cell gene therapy*14 and establishes a platform necessary for the business.

11.	A drug for the treatment of rare diseases that cause disorders of bone growth and metabolism mainly due to genetic causes. In Japan, it is marketed under the CRYSVITA product name.
12.	A drug for the treatment of atopic dermatitis. Clinical trials for asthma are also planned.
13.	Developed for the treatment of Alport syndrome, diabetic kidney disease, and autosomal dominant polycystic kidney disease. Kyowa Kirin announced the discontinuation of development in May 2023.
14.	This treatment for diseases caused by abnormal genes aims to restore normal function by introducing normal genes into hematopoietic stem cells taken from patients and returning them to the body.

Pharmaceuticals Business 2023 results:

Consolidated revenue	441.9 billion yen	up 11.1%
Consolidated normalized operating profit	96.0 billion yen	up 16.4%

Other Businesses

• KYOWA HAKKO BIO CO., LTD. (Kyowa Hakko Bio)

Kyowa Hakko Bio focused on specialty materials and undertook structural reforms to improve profitability. Sales of overseas-sold Cognizin*15 for use in health and well-being foods remained strong, and regulatory approvals for human milk oligosaccharides (HMOs)*16, progressed in the countries where we plan to expand. On the other hand, the business environment remained challenging, particularly in the amino acid business, due to intensifying competition in the market and soaring raw material and fuel prices.

15.	Brand name for Citicoline. An ingredient found in the body that maintains the cell membranes of the brain and nerve cells, and has been used for many years around the world in medicines for brain diseases and health foods that support the improvement of cognitive functions. In Japan, it is currently classified as a pharmaceutical product.
16.	A generic term for oligosaccharides contained in breast milk. More than 200 kinds are contained in breast milk, and the results of research contributing to immunity and brain function, among others, have been reported.

• Mercian Corporation (Mercian)

Mercian continued to nurture its own highly profitable brands while its mainstay wine business was severely affected by the impact of the weak yen on imported wines and raw materials.

In the Chateau Mercian Japan wine category, Chateau Mercian Mariko Winery won the highest ranking in Asia in the "World's Best Vineyards 2023" competition and began exporting its wines to Italy.

Under the Mercian Wines brand, the sparkling wine Cantiamo and the small-volume size Sunnyside Organic Sparkling Can were launched and sold well.

• Coca-Cola Beverages Northeast, Inc. (Coke Northeast) *17

In the non-alcoholic beverages market in the U.S., consumption remained firm even as prices continued to rise due to inflation. At Coke Northeast*17, sales of mainly carbonated non-alcoholic beverages and premium mineral water remained steady. In addition, operational reforms, including structural reforms at facilities and distribution centers and the introduction of ICT, as well as the effects of price revisions, further improved the high profitability of the company.

17.	Company that operates a soft drink manufacturing and sales business in the northeastern United States, centered on Coca-Cola bottling.

<Outlook for 2023>

Conflicts continue to rage in many parts of the world, negatively impacting social and economic life. Although the four-year-long COVID-19 crisis is coming to an end, outbreaks of infectious diseases are inevitable in the future. The environment is becoming more complex with the increasing severity of global warming. It is precisely in times like these that the Kirin Group will face social issues head-on and practice CSV management, which creates economic value while solving problems, in order to contribute to a sustainable society and pursue sustainable growth for the Kirin Group. In the Food & Beverages domain, the Pharmaceuticals domain, and the Health Science domain, in particular, we will promote a global business structure with the addition of Blackmores Limited.

The Kirin Group's growth is supported by organizational capabilities, including: human resources, ICT, in addition to technological capabilities based on fermentation and biotechnology.

With regard to human resources, we aim to develop human resources with expertise and diversity through diverse business experience in the Kirin Group's business portfolio, while at the same time fostering an organizational culture that will continue to generate innovation.

In regard to respect for human rights initiatives, under the revised Kirin Group Human Rights Policy, we are promoting human rights due diligence, an integrated approach that includes identification of negative human rights impacts in the value chain, including raw material suppliers, prevention and reduction of such impacts, monitoring, and information disclosure.

In the area of ICT, we will promote business process reform and efficiency improvement through the use of digital technologies such as generative Al in various fields such as sales, product development, procurement, production, and logistics.

Through these efforts, we aim to achieve our financial targets of Normalized EPS and ROIC, as well as achieve our non-financial targets for the environment, health and well-being, and employees.

Beginning in FY2024, the business segments will be renamed Alcoholic beverages business, Non-alcoholic beverages business, Pharmaceuticals Business, Health Science business, and Other businesses.

Consolidate Earnings Forecasts for the Fiscal Year 2024:

Consolidated revenue	2,270.0 billion yen	up 6.4%
Consolidated normalized operating profit	202.0 billion yen	up 0.3%
Consolidated profit before tax	219.0 billion yen	up 11.1%
Consolidated profit attributable to owners of the Company (Key performance indicators)	131.0 billion yen	up 16.2%
ROIC	8.0%
Normalized EPS*	177 yen	-

1. Food & Beverages Domain (Alcoholic beverages and Non-alcoholic beverages businesses)

In the Food & Beverages domain, we will continue to establish a strong brand system centered on our mainstay brands and work to increase profitability by nurturing high-value-added, high-unit-price products.

Kirin Brewery will propose the appeal and enjoyment of the brand with a diverse lineup centered on KIRIN ICHIBAN. Honkirin will be renewed, and we will continue to communicate the brand's value. We will also aim to establish a strong brand lineup by launching a new brand in the beer category this spring.

We will also continue our efforts to expand our craft beer offerings, with the renewal of the SPRING VALLEY brand in March to provide more opportunities for people to become more familiar with beer and to communicate the diverse ways in which beer can be enjoyed. In addition, the brand's SPRING VALLEY BREWERY TOKYO (Shibuya-ku, Tokyo) will be completely renovated to provide an opportunity for customers to casually experience craft beer. Through these efforts, we will work to steadily grow the business and brand by providing new value. irin Beverage will work to revitalize the black tea category and make the unsweetened tea category more attractive by developing high value-added products from the Kirin Gogo-no-Kocha and Kirin Nama-cha brands. In April, we will renew Kirin Nama-cha to strengthen the brand. We will also continue to focus on LC-Plasmacontaining beverages. In addition to the renewal of Oishii Immune Care and Oishii Immune Care Calorie Off, we aim to expand the "immune care" market by introducing new products that meet consumers' lifestyles and needs and further promote the "immune care" habit.

Lion will focus on strengthening its brands, including its flagship beer brand XXXX (four-ex) in Australia and Kirin Hyoketsu, which is newly launched in Australia and New Zealand. Lion will also continue to expand its craft beer business in Australia and North America.

Mercian will focus its efforts on its Chateau Mercian Japanese wine products to strengthen profitability.

Coke Northeast will maintain a highly profitable structure by utilizing IT to increase supply chain productivity while achieving sales growth.

2. Pharmaceuticals Domain (Pharmaceuticals Business)

Kyowa Kirin aims to achieve further growth of its global strategic products, Crysvita and Poteligeo*1. In addition, Kyowa Kirin will make steady progress in the global development of its key pipeline products, KHK4083 (generic name: rocatlinlimab) and KHK4951 (generic name: tivozanib)*2, and move forward with integration and collaboration with Orchard Therapeutics.

A drug for the treatment of certain types of leukemia. It is already marketed in Japan under the POTELIGEO brand name.

This product was developed for the treatment of exudative age-related macular degeneration (a disease in which abnormal vascularization occurs in the macula, where photoreceptor cells are closely connected, causing rapid vision loss) and diabetic macular edema (a complication of a disease in which the retina is damaged due to high blood sugar, resulting in damage to capillaries in the macula, which causes edema in the macula and vision loss).

3. Health Science Domain (Health Science business)

After COVID-19, people are becoming more health and well-being conscious. We will further enhance the Group's strengths in consumer-centric marketing expertise and value-creating technologies, and promote global expansion with a focus on the Asia-Pacific region. We will establish a unique business model for the entire Kirin Group by leveraging the brand power of Blackmores Limited and FANCL CORPORATION.

In Japan, we will continue to work on expanding "immune care" needs in 2024 and aim to grow the "LC-Plasma" related business. With FANCL CORPORATION, we will expand group synergies by developing the CALOLIMIT brand in Kirin Group companies, improving efficiency by sharing know-how in the e-commerce business, and promoting joint research.

Overseas, we will strengthen our position in the growing market of Southeast Asia, centered on the Australiabased Blackmores. Kyowa Hakko Bio will also promote the development of products utilizing LC-Plasma.

In Closing

In 2024, the final year of the 2022-2024 MTBP, the Kirin Group will further enhance its ability to execute its strategies through the challenge and ingenuity of all Group employees, and move forward to become one of the world's leading CSV companies. We will further enhance our ability to execute our strategies through the challenge and ingenuity of all Group employees and move forward to become a world leader in CSV.

We look forward to the continued understanding and support of our shareholders.

(2) FINANCIAL POSITION

Total assets at the end of the current consolidated fiscal year were 2,869.6 billion yen, an increase of 327.3 billion yen from the end of the previous consolidated fiscal year mainly due to an increase in goodwill and intangible assets due to the acquisition of Blackmores Limited.

Equity increased by 172.6 billion yen from the end of the previous consolidated fiscal year to 1,425.8 billion yen mainly due to an increase in reserves due to foreign exchange fluctuations.

Liabilities increased by 154.7 billion yen from the end of the previous consolidated fiscal year to 1,443.7 billion yen mainly due to an increase in bonds and borrowings (Non-current liabilities) due to the acquisition of Blackmores Limited.

The balance of cash and cash equivalents (hereinafter referred to as "net cash") at the end of the current consolidated fiscal year was 131.4 billion yen, an increase of 43.3 billion yen from the end of the previous consolidated fiscal year. Consolidated cash flows were as follows:

Cash flows from operating activities

Net cash provided by operating activities increased by 67.6 billion yen year on year to 203.2 billion yen. Outflow of working capital decreased by 14.9 billion yen, and income taxes paid decreased by 32.2 billion yen.

Cash flows from investing activities

Net cash used in investing activities increased by 215.7 billion yen year on year to 226.1 billion yen. There was an inflow of 24.0 billion yen for sale of equity-accounted investees and 8.0 billion yen for sale of shares of subsidiaries, while there was an outflow of 162.1 billion yen for acquisition of subsidiaries and 113.8 billion yen for acquisition of property, plant and equipment and intangible assets, representing an increase by 15.3 billion yen year on year.

Cash flows from financing activities

Net cash from (used in) financing activities was an inflow of 35.9 billion yen compared to an outflow of 167.8 billion yen in the previous consolidated fiscal year. There was an outflow of 71.2 billion yen for dividends paid, 63.5 billion yen for repayment of long-term borrowings, 55.0 billion yen for payment for redemption of bonds, and 18.6 billion yen for repayment of lease liabilities, while there were proceeds of 171.5 billion yen from longterm borrowings and 93.0 billion yen from issuance of bonds.

(3) BASIC POLICY AND DISTRIBUTION OF PROFITS AND DIVIDEND FOR 2023 AND 2024

Based on the capital policy formulated in the 2022-2024 MTBP, Kirin will allocate resources to its businesses and distribute profits to its shareholders as set out below.

Regarding resource allocation to businesses, giving top priority to investments that contribute to further developing businesses with a focus on the Heath Science domain, Kirin will make investments that contribute to enhancement of existing businesses and profit improvement. Kirin will also implement a stable and continuous allocation of resources to intangible assets (such as brands, research and development, information and communication technology (ICT), and human resources) that sustain the growth of future cash flows. Kirin will take a disciplined approach to investments in terms of maintaining and improving the Kirin Group's capital efficiency.

With regard to the distribution of surplus funds for 2023, based on a consolidated dividend payout ratio on normalized EPS of at least 40%, Kirin's Board of Directors made a resolution for an interim dividend of 34.5 yen per share and a year-end dividend of 36.5 yen per share, for an annual dividend totaling 71 yen per share (an increase of 2 yen per share from the previous year). The year-end dividend will be determined at the 185th General Meeting of Shareholders scheduled for March 28, 2024.

Regarding the distribution of surplus funds for 2024, Kirin aims for a consolidated dividend payout ratio on normalized EPS of at least 40%, and plans to pay a full-year dividend of 71 yen per share.

2. BASIC RATIONALE FOR SELECTION OF ACCOUNTING STANDARDS

3. CONSOLIDATED FINANCIAL STATEMENTS

(1) CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(¥ millions)

	At December 31, 2022	At December 31, 2023
Assets
Non-current assets
Property, plant and equipment	560,642	592,928
Goodwill	289,526	390,568
Intangible assets	200,900	303,540
Equity-accounted investees	361,764	370,720
Other financial assets	103,380	105,346
Other non-current assets	27,700	39,340
Deferred tax assets	111,330	109,322
Total non-current assets	1,655,242	1,911,764
Current assets
Inventories	290,171	330,984
Trade and other receivables	409,168	444,940
Other financial assets	8,376	8,944
Other current assets	41,128	37,552
Cash and cash equivalents	88,060	131,399
(Sub-total)	836,903	953,818
Assets held for sale	50,117	4,004
Total current assets	887,021	957.821
Total assets	2,542,263	2,869,585

(¥ millions)

	At December 31, 2022	At December 31, 2023
Equity
Share capital	102,046	102,046
Share premium	25,519	21,150
Retained earnings	1,063,823	1,128,541
Treasury shares	(251,788)	(251,675)
Reserves	40,423	132,519
Equity attributable to owners of the Company	980,022	1,132,581
Non-controlling interests	273,181	293,257
Total equity	1,253,203	1,425,838
Liabilities
Non-current liabilities
Bonds and borrowings	408,662	555,725
Other financial liabilities	129,662	82,914
Defined benefit liability	58,084	55,228
Provisions	3,292	4,316
Liabilities from application of equity method	15,529	13,966
Other non-current liabilities	27,572	19,921
Deferred tax liabilities	13,564	38,871
Total non-current liabilities	656,365	770,941
Current liabilities
Bonds and borrowings	114,459	100,673
Trade and other payables	265,185	306,670
Other financial liabilities	59,824	61,720
Current tax liabilities	4,611	9,687
Provisions	2,970	4,153
Other current liabilities	177,530	189,904
(Sub-total)	624,579	672,806
Liabilities directly associated with assets held for sale	8,116	-
Total current liabilities	632,695	672,806
Total liabilities	1,289,060	1,443,747
Total equity and liabilities	2,542,263	2,869,585

(2) CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND COMPREHENSIVE INCOME

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

(¥ millions)

	Year ended December 31, 2022	Year ended December 31, 2023
Revenue	1,989,468	2,134,393
Cost of sales	1,083,755	1,170,927
Gross profit	905,713	963,466
Selling, general and administrative expenses	714,554	761,971
Normalized operating profit	191,159	201,495
Other operating income	29,454	28,835
Other operating expenses	104.594	80,036
Operating profit	116,019	150,294
Finance income	10,978	9,035
Finance costs	6,478	10,523
Share of profit of equity-accounted investees	22,780	32,773
Gain on sale of equity-accounted investees	48,088	15,470
Profit before tax	191,387	197,049
Income tax expense	47,615	46,611
Profit	143,771	150,438
Profit attributable to:
Owners of the Company	111,007	112,697
Non-controlling interests	32,764	37,741
Profit	143,771	150,438
Earnings per share (¥)
Basic earnings per share	135.08	139.16
Diluted earnings per share	135.07	139.15

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(¥ millions)

	Year ended December 31, 2022	Year ended December 31, 2023
Profit	143,771	150,438
Other comprehensive income Items that will not be reclassified to profit or loss
Net change in equity instruments measured at fair value through other comprehensive income	1,937	7,854
Remeasurements of defined benefit plans	5,126	6,273
Share of other comprehensive income of equity-accounted investees	694	(1,504)
Items that are or may be reclassified to profit or loss
Foreign currency translation differences on foreign operations	48,639	93,125
Cash flow hedges	(1,600)	(1,100)
Share of other comprehensive income of equity-accounted investees	21,269	6,715
Total other comprehensive income	76,065	111,362
Comprehensive income	219,836	261,801
Comprehensive income attributable to:
Owners of the Company	189,195	214,321
Non-controlling interests	30,641	47,480
Comprehensive income	219,836	261,801

(3) CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Year ended December 31, 2022

(¥ millions)

	Equity attributable to owners of the Company
					Reserves
	Share capital	Share premium	Retained earnings	Treasury shares	Net change in equity instruments measured at fair value through other comprehensive income	Remeasurements of defined benefit plans
Balance at January 1, 2022	102,046	25,104	998,177	(201,801)	17,978	-
Profit	-	-	111,007	-	-	-
Other comprehensive income	-	-	-	-	1,881	5,386
Comprehensive income	-	-	111,007	-	1,881	5,386
Dividends from surplus	-	-	(53,778)	-	-	-
Acquisition of treasury shares	-	-	-	(50,018)	-	-
Disposal of treasury shares	-	(0)	-	1	-	-
Share-based payments	-	229	(1)	30	-
Changes in the ownership interest in a subsidiary without a loss of control	-	186	-	-	-	-
Transfer from reserves to retained earnings	-	-	8,419	-	(3,033)	(5,386)
Other	-	-	-	-	-
Total transactions with owners of the Company	-	415	(45,361)	(49,987)	(3,033)	(5,386)
Balance at December 31, 2022	102,046	25,519	1,063,823	(251,788)	16,826	-

	Equity attributable to owners of the Company
	Reserves
	Foreign currency translation differences on foreign operations	Cash flow hedges	Total	Total	Non-controlling interests	Total equity
Balance at January 1, 2022	(47,935)	610	(29,347)	894,179	253,811	1,147,990
Profit	-	-	-	111,007	32,764	143,771
Other comprehensive income	72,520	(1,598)	78,188	78,188	(2,124)	76,065
Comprehensive income	72,520	(1,598)	78,188	189,195	30,641	219,836
Dividends from surplus	-	-	-	(53,778)	(11,688)	(65,466)
Acquisition of treasury shares	-	-	-	(50,018)	-	(50,018)
Disposal of treasury shares	-	-	-	1	-	1
Share-based payments	-	-	-	257	(196)	62
Changes in the ownership interest in a subsidiary	-	-	-	186	632	818
without a loss of control Transfer from reserves to retained earnings	-	-	(8,419)	-	-	-
Other	-	-	-	-	(20)	(20)
Total transactions with owners of the Company	-	-	(8,419)	(103,352)	(11,271)	(114,623)
Balance at December 31, 2022	24,585	(988)	40,423	980,022	273,181	1,253,203

Year ended December 31, 2023

(¥ millions)

	Equity attributable to owners of the Company
					Reserves
	Share capital	Share premium	Retained earnings	Treasury shares	Net change in equity instruments measured at fair value through other comprehensive income	Remeasurements of defined benefit plans
Balance at January 1, 2023	102,046	25,519	1,063,823	(251,788)	16,826	-
Profit	-	-	112,697	-	-	-
Other comprehensive income	-		-	-	7,318	4,503
Comprehensive income	-	-	112,697	-	7,318	4,503
Dividends from surplus	-	-	(57,500)	-	-	-
Acquisition of treasury shares	-	-	-	(21)	-	-
Disposal of treasury shares		(0)	-	2	-	-
Change in scope of consolidation	-	-	-	-	-	-
Share-based payments	-	220	(7)	132	-	-
Changes in the ownership interest in a subsidiary without a loss of control	-	(4,589)	-	-	-	-
Transfer from reserves to retained earnings	-	-	9,528	-	(5,025)	(4,503)
Total transactions with owners of the Company	-	(4,369)	(47,978)	113	(5,025)	(4,503)
Balance at December 31, 2023	102,046	21,150	1,128,541	(251,675)	19,119	-

	Equity attributable to owners of the Company
	Reserves
	Foreign currency translation differences on foreign operations	Cash flow hedges	Total	Total	Non-controlling interests	Total equity
Balance at January 1, 2023	24,585	(988)	40,423	980,022	273,181	1,253,203
Profit	-	-	-	112,697	37,741	150,438
Other comprehensive income	90,077	(275)	101,624	101,624	9,739	111,362
Comprehensive income	90,077	(275)	101,624	214,321	47,480	261,801
Dividends from surplus	-	-	-	(57,500)	(13,742)	(71,242)
Acquisition of treasury shares	-	-		(21)	-	(21)
Disposal of treasury shares	-	-	-	1	-	1
Change in scope of consolidation	-	-	-	-	(18,726)	(18,726)
Share-based payments	-	-	-	346	(117)	229
Changes in the ownership interest in a subsidiary without a loss of control	-	-	-	(4,589)	5,181	592
Transfer from reserves to retained earnings	-	-	(9,528)	-	-	-
Total transactions with owners of the Company	-	-	(9,528)	(61,762)	(27,403)	(89,166)
Balance at December 31, 2023	114.662	(1,263)	132,519	1,132,581	293,257	1,425,838

(4) CONSOLIDATED STATEMENT OF CASH FLOWS

(¥ millions)

	Year ended December 31, 2022	Year ended December 31, 2023
Cash flows from operating activities
Profit before tax	191,387	197,049
Depreciation and amortization	85,937	87,227
Impairment losses	66,200	29,987
Gain on reversal of impairment losses	(13,152)	(64)
Interest and dividends received	(4,497)	(4,120)
Share of profit of equity-accounted investees	(22,780)	(32,773)
Interest paid	4,894	5,932
Gain on sale of property, plant and equipment and intangible assets	(9,512)	(6,119)
Loss on disposal and sale of property, plant and equipment and intangible assets	4,571	2,616
Gain on sale of shares of subsidiaries		(14,822)
Loss on sale of shares of subsidiaries	250	19,358
Gain on sale of equity-accounted investees	(48,088)	(15,470)
(Increase) decrease in trade receivables	(8,455)	(13,365)
(Increase) decrease in inventories	(39,490)	(20,063)
Increase (decrease) in trade payables	18,384	10,972
Increase (decrease) in liquor taxes payable	(7,383)	434
Other	(34,251)	(29,339)
Sub-total	184.014	217,440
Interest and dividends received	24,731	27,855
Interest paid	(4,367)	(5,441)
Income taxes paid	(68,815)	(36,647)
Cash flows from (used in) operating activities	135,562	203,206

(¥ millions)

	Year ended December 31, 2022	Year ended December 31, 2023
Cash flows from investing activities
Acquisition of property, plant and equipment and intangible assets	(98,479)	(113,810)
Proceeds from sale of property, plant and equipment and intangible assets	11,324	7,465
Acquisition of investments	(2,425)	(1,380)
Proceeds from sale of investments	7,884	7.990
Acquisition of shares of subsidiaries, net of cash acquired	(46,183)	(162,097)
Payment for sale of shares of subsidiaries, net of cash disposed of	(442)	(5,006)
Proceeds from sale of shares of subsidiaries, net of cash disposed of	-	8,024
Acquisition of equity-accounted investees	(9,382)	(18)
Proceeds from sale of equity-accounted investees	122,249	24,017
Other	5,054	8,723
Cash flows from (used in) investing activities	(10,399)	(226,091)
Cash flows from financing activities
Increase (decrease) in short-term borrowings	(6,083)	(1,900)
Increase (decrease) in commercial paper	(55,009)	(18,000)
Proceeds from long-term borrowings	71,851	171,532
Repayment of long-term borrowings	(67,612)	(63,478)
Proceeds from issuance of bonds	20,000	93,000
Payment for redemption of bonds	-	(55,000)
Repayment of lease liabilities	(19,387)	(18,621)
Payment for acquisition of treasury shares	(50,040)	(25)
Payment for acquisition of treasury shares by a consolidated subsidiary	(11)	(10)
Proceeds from settlement of derivatives	4,072	-
Dividends paid	(53,778)	(57,500)
Dividends paid to non-controlling interests	(11,688)	(13,660)
Other	(151)	(428)
Cash flows from (used in) financing activities	(167,835)	35,909
Effect of exchange rate changes on cash and cash equivalents	6,728	4,832
Net increase (decrease) in cash and cash equivalents	(35,944)	17,855
Cash and cash equivalents at beginning of year	149,488	88,060
Net increase (decrease) in cash and cash equivalents resulting from transfers to assets held for sale	(25,484)	25,484
Cash and cash equivalents at end of year	88,060	131,399

(5) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (GOING CONCERN ASSUMPTION)

There are no matters to report under this item.

(CHANGES IN ACCOUNTING POLICIES)

(Amendments to IAS 12 Income Taxes)

The Company has adopted the 'International Tax Reform - Pillar Two Model Rules (Amendments to IAS 12)' published on May 23, 2023, from the year ended December 31, 2023. The Company applies the exception stipulated in the amended IAS 12 and does not recognize or disclose information about deferred tax assets and liabilities related to income taxes arising from tax law enacted or substantively enacted to implement the Pillar Two model rules. This change in accounting policy is not expected to have a material impact on the Group's consolidated financial statements.

(CHANGES IN ACCOUNTING ESTIMATES)

(Bio-chemicals business)

In light of an increase in utility costs, intensifying competitive environment, and uncertainty for the timing of obtaining certification around the world for new materials, an impairment test was performed for business assets related to the Bio-chemicals business. As a result, 15,670 million yen of impairment losses for noncurrent assets of the Bio-chemicals business was recognized for the year ended December 31, 2023. The recoverable amount was measured at value in use which was calculated by considering past experience and external information, and discounting the forecast cash flows over the remaining useful life of the assets based on the management approved business plan to the present value.

(SEGMENT INFORMATION)

(1) Summary of reportable segments

The reportable segments of the Group are determined based on the operating segments which are constituent units of the Group for which separate financial information is readily available, and which are periodically examined by the Board of Directors for the purpose of deciding the allocation of management resources and evaluating the business results. The Group has identified four reportable segments, namely, "Japan Beer and Spirits Businesses, " "Japan Non-alcoholic Beverages Business," "Oceania Adult Beverages Business" and "Pharmaceuticals Business. "

"Japan Non-alcoholic Beverages Business," for which Kirin Beverage Company, Limited oversees the operations, conducts production and sale of soft drinks in Japan.

"Oceania Adult Beverages Business," for which Lion Pty Limited oversees the operations, conducts production and sale of beer, whiskey, spirits and other products in the Oceania region.

"Pharmaceuticals Business," for which Kyowa Kirin Co., Ltd. oversees the operations, conducts production and sale of pharmaceutical products.

Accounting policies for segment information are generally the same as those in the Company's consolidated financial statements.

Inter-segment revenue is based on actual market prices.

(2) Information on reportable segments

Information related to each reportable segment is set out below.

At and for the fiscal year ended December 31, 2022

(¥ millions)

	Reportable segment
	Japan Beer and Spirits	Japan Nonalcoholic Beverages	Oceania Adult Beverages	Pharmaceuticals	Others (Note 1)	Adjustment (Note 2)	Consolidated
Revenue from unaffiliated customers	663,522	243,257	255,900	397,863	428,925		1,989,468
Inter-segment revenue	1,976	2,513	91	507	74,819	(79,907)	-
Total revenue	665,498	245,770	255.991	398,371	503,744	(79,907)	1,989,468
Segment income (Note 3)	74,660	18,786	31,545	82,462	37,545	(53,838)	191,159
Other operating income							29,454
Other operating expenses							104,594
Finance income							10,978
Finance costs							6,478
Share of profit of equity accounted investees							22,780
Gain on sale of equity accounted investees							48,088
Profit before							191,387

(¥ millions)

	Reportable segment
	Japan Beer and Spirits	Japan Nonalcoholic Beverages	Oceania Adult Beverages	Pharmaceuticals	Others (Note 1)	Adjustment (Note 2)	Consolidated
Segment assets	432,140	133.184	546,729	880.281	885,775	(335,845)	2,542,263
Other items
Depreciation and amortization	16,409	6,982	15,106	18,319	18,922	10,199	85,937
Impairment losses (excluding financial assets)	-	-	3,525	17.979	44,696	-	66,200
Gain on reversal of impairment losses	-	-	231	-	12,921	-	13,152
Equity-accounted investees	10,090	-	8,960	-	342,714	-	361,764
Capital expenditures	17,940	9.326	13,107	33,298	30,421	12,708	116.799

Notes: 1. "Others" mainly includes the Wine business in Japan, the Non-alcoholic Beverage business in North America, and the Bio-chemicals business.

2. Adjustments are as follows:

⁽¹⁾ Adjustment in segment income mainly includes inter-segment eliminations and corporate expenses not attributable to any reportable segment. The expenses are mainly group administrative expenses incurred by the Company, a holding company, and administrative expenses relating to some reportable segments incurred by shared services companies.
⁽²⁾ Adjustment in segment assets includes inter-segment asset and liability eliminations and corporate assets not attributable to any reportable segment. The assets mainly consist of surplus funds (cash), long-term investments (equity instruments) and assets of the administrative department of the Company, a holding company, and shared services companies.
^3. Segment income represents normalized operating profit which is calculated by deducting the total of cost of sales and selling, general and administrative expenses from revenue.

At and for the fiscal year ended December 31, 2023

(¥ millions)

	Reportable segment
	Japan Beer and Spirits	Japan Nonalcoholic Beverages	Oceania Adult Beverages	Pharmaceuticals	Others (Note 1)	Adjustment (Note 2)	Consolidated
Revenue from unaffiliated customers	684,863	255,028	280,990	441,882	471,630	-	2,134,39
Inter-segment revenue	2,148	2,771	86	351	75,840	(81,196)	-
Total revenue	687,010	257,799	281,077	442,233	547,470	(81,196)	2,134,393
Segment income (Note 3)	77,741	16,887	32,398	95,968	32,364	(53,863)	201,495
Other operating income							28,835
Other operating expenses							80,036
Finance income							9,035
Finance costs							10,523
Share of profit of equity-accounted investees							32,773
Gain on sale of equity-accounted investees							15,470
Profit before tax							197,049

(¥ millions)

	Reportable segment
	Japan Beer and Spirits	Japan Non-alcoholic Beverages	Oceania Adult Beverages	Pharmaceuticals	Others (Note 1)	Adjustment (Note 2)	Consolidated
Segment assets	443.135	147,721	607,203	971,375	1,182,039	(481,888)	2,869,585
Other items
Depreciation and amortization	17,817	7,073	14,836	20,938	17,244	9,318	87,227
Impairment losses (excluding financial assets)	-	-	22	10,843	19,122	-	29,987
Gain on reversal of				64	-	-	64
impairment losses				64
Equity-accounted investees	10,487	-	1,252	12,357	346,624	-	370,720
Capital expenditures	17,864	10.398	15,970	33,273	31,958	10,283	119,745

Notes: 1. "Others" mainly includes the Wine business in Japan, the Non-alcoholic Beverage business in North America, and the Bio-chemicals business.

2. Adjustments are as follows:

3 Segment income represents normalized operating profit which is calculated by deducting the total of cost of sales and selling, general and administrative expenses from revenue.

(3) Geographic information

1) Revenue

(¥ millions)

	Year ended December 31, 2022	Year ended December 31, 2023
Japan	1,159,427	1,183,300
Oceania	184,343	213,876
America	459,346	539,076
Others	186,353	198,140
Total	1,989,468	2,134,393

Note: Revenue is classified by country or area based on customer location.

2) Non-current assets

(¥ millions)

	At December 31, 2022	At December 31, 2023
Japan	486,545	482.720
Oceania	300,413	463,968
America	202.612	229,863
Others	67,572	118,904
Total	1,057,142	1,295,455

Note: Non-current assets exclude financial instruments, deferred tax assets and defined benefit assets.

(4) Major customer

The unaffiliated customer which accounted for 10% or more of revenue on the consolidated statement of profit or loss was as follows:

(¥ millions)

	Related segment	Year ended December 31, 2022	Year ended December 31, 2023
Mitsubishi Shokuhin Co., Ltd.	Japan Beer and Spirits, Japan Non-alcoholic Beverages, and others	220,074	230.872

(PER SHARE INFORMATION)

(1) Basis of calculation of basic earnings per share

The basis of calculation of basic earnings per share is as follows:

1) Profit attributable to ordinary shareholders of the Company (basic)

(¥ millions)

	Year ended December 31, 2022	Year ended December 31, 2023
Profit attributable to owners of the Company	111.007	112,697
Profit not attributable to ordinary shareholders of the Company	-	-
Profit attributable to ordinary shareholders of the Company	111,007	112,697

2) Weighted-average number of ordinary shares (basic)

(Thousands of shares)

	Year ended December 31, 2022	Year ended December 31, 2023
Weighted-average number of ordinary shares	821.755	809,853

(2) Basis of calculation of diluted earnings per share

Diluted earnings per share is calculated as follows based on profit attributable to ordinary shareholders of the Company and weighted-average number of ordinary shares outstanding after adjustment for the effects of all potentially dilutive ordinary shares:

1) Profit attributable to ordinary shareholders of the Company (diluted)

(¥ millions)

	Year ended December 31, 2022	Year ended December 31, 2023
Profit attributable to ordinary shareholders of the Company	111,007	112,697
Adjustments for potential ordinary shares issued by a subsidiary	(15)	(6)
Profit attributable to ordinary shareholders of the Company (diluted)	110,992	112,691

2) Weighted-average number of ordinary shares (diluted)

(Thousands of shares)

	Year ended December 31, 2022	Year ended December 31, 2023
Weighted-average number of ordinary shares (basic)	821,755	809,853
Effect of dilution	-
Weighted-average number of ordinary shares (diluted)	821,755	809,853

(SIGNIFICANT SUBSEQUENT EVENTS)

(Acquisition of a company, through the purchase of shares/Regarding the purchase of shares in Orchard Therapeutics plc [making it into a subsidiary])

At a meeting of the Board of Directors held on October 5, 2023, Kyowa Kirin Co., Ltd., a subsidiary of the Company, resolved to acquire 100% of the issued shares of the UK-based biopharmaceutical company Orchard Therapeutics plc (hereinafter referred to as "Orchard"). The acquisition of all Orchard shares through a Scheme of Arrangement procedure under the UK Companies Act 2006 was completed on January 24, 2024. With this acquisition, Orchard has become a wholly owned subsidiary of Kyowa Kirin Co., Ltd.

(1) Purpose and reason of the share acquisitions

This acquisition of shares marks an important step toward the "creation of innovative pharmaceutical products," which Kyowa Kirin Co., Ltd. has selected as a materiality (key management issue) for the fulfillment of its 2030 Vision. The gene therapy approach pioneered by Orchard harnesses the unique power of a patient's own genetically modified hematopoietic stem cells (HSCs) to potentially correct the underlying cause of a genetic disease using a single administration. As a leading provider of hematopoietic stem cell gene therapy (HSC-GT), Orchard is steadily building a track record in this field, having already released an HSC-GT product for the treatment of lysosomal disease in Europe. The product is also under review for approval in the United States. Kyowa Kirin Co., Ltd. seeks to combine its strengths in bio-pharmaceuticals with Orchard's strengths related to cellular gene therapy research to develop pharmaceuticals to meet future unmet needs and create life-changing value.

(2) Name, description of business, and size of company whose shares were acquired

(i) Name	Orchard Therapeutics plc
(ii) Location	245 Hammersmith Road, 3rd Floor London W6 8PW United Kingdom
(iii) Job title and name of representative	Chief Executive Officer: Bobby Gaspar
(iv) Description of business	Development and commercialization of hematopoietic stem cell gene therapy
(v) Share capital	US$29,463 thousand (as of September 30, 2023)
(vi) Year of establishment	2015

(3) Timing of the acquisition

January 24, 2024

(4) Number of shares acquired and acquisition price

(i) Number of shares held before change	0 shares (Number of voting rights: 0 rights) (Ownership ratio of voting rights: 0%)
(ii) Number of shares acquired	22,817,354 shares (Number of voting rights: 18,246,822)
(iii) Acquisition price	US$16.00 per ADS, approx. US$387.6 million (approx. ¥57.4 billion)
(iv) Number of shares held after change	22,817,354 shares (Ratio of voting rights held: 100%)

Notes: 1. Calculated at an exchange rate of 1 US dollar to 148 Japanese yen.

2. The number of shares acquired is based on the assumption that all ordinary shares were converted to ADSs. The acquisition price represents the amount required to make payments on all outstanding ordinary shares, ADSs, options, Restricted Stock Units, and other securities. In addition, if the FDA approves OTL-200 for sale in the US, shareholders will be entitled to receive an additional US$1.00 per ADS. An additional US$1.00 will be paid for an acquisition price of US$17.00 per ADS, or approximately US$477.8 million (¥70.7 billion) if the conditions are met.

(ADDITIONAL INFORMATION)

(Change in reportable segments)

For the year ended December 31, 2023, the Group identified its reportable segments as "Japan Beer and Spirits Businesses," "Japan Non-alcoholic Beverages Business," "Oceania Adult Beverages Business" and "Pharmaceuticals Business." From the year ending December 31, 2024, the Group has reorganized its reportable segments into "Alcoholic Beverages Business," "Non-alcoholic Beverages Business," "Pharmaceuticals Business," and "Health Science Business."

"KV2027" sets the Long-Term Management Vision for the Group to become a global leader in CSV, creating value across our world of Food & Beverages and Pharmaceuticals domains. To achieve the Long-Term Management Vision, the Company is working on making the Health Science domain a third pillar of the Company's business and acquired 100% of the shares of Blackmores Limited, an Australianbased company, to make it a subsidiary during the year ended December 31, 2023. With this acquisition, the Group will expand its business scale in the Health Science domain. Accordingly, the Board meeting held on November 20, 2023 resolved a change in the internal monitoring units of the Group from the year ending December 31, 2024.

Therefore, the Group determined "Alcoholic Beverages Business," "Non-alcoholic Beverages Business," (Food & Beverages domain) "Pharmaceuticals Business," (Pharmaceuticals domain) and "Health Science Business." (Health Science domain) to be disclosed separately as reportable segments from the year ending December 31, 2024.

Information on revenue and income or expenses of each reportable segment for the year ended December 31, 2023 based on the new segments is as follows:

At and for the fiscal year ended December 31, 2023

(¥ millions)

	Reportable segment
	Alcoholic Beverages	Non-alcoholic Beverages	Pharmaceuticals	Health Science	Others (Note 1)	Adjustment (Note 2)	Consolidated
Revenue from unaffiliated customers	1,045,138	516,171	441.882	103,354	27,847	-	2,134,393
Inter-segment revenue	2,336	2,771	351	4,694	66.241	(76,393)	-
Total revenue	1,047,473	518,942	442,233	108.048	94,089	(76,393)	2,134,393
Segment income (Note 3)	119,939	52,358	95,968	(12,535)	(60)	(54,175)	201,495

Notes: 1 . "Others" includes segments which are not included in the reportable segments.

2 . Adjustments are as follows:

A djustment in segment income mainly includes inter-segment eliminations and corporate expenses not attributable to any reportable segment. The expenses are mainly group administrative expenses incurred by the Company, a holding company, and administrative expenses relating to some reportable segments incurred by shared services companies.

3 . Segment income represents normalized operating profit which is calculated by deducting the total of cost of sales and selling, general and administrative expenses from revenue.

Changes of Representative Directors and Board Members

Kirin Holdings Company, Limited ("Kirin Holdings") hereby announces the change of Representative Directors and Directors of the Board Members and Audit & Supervisory Board Members who were unofficially appointed at the Board Meeting held today, as well as the unofficial appointment of executive roles of its subsidiaries based on the report of the Nomination and Remuneration Advisory Committee.

1. Changes of Representative Directors and Directors of the Board and Audit & Supervisory Board Members of Kirin Holdings

(1) Reason for Change

Under the long-term management vision, "Kirin Group Vision 2027 (KV2027)," the Kirin Group is working to expand its business by solving social issues, based on three growth scenarios of "Strengthen the earnings capability of Food & Beverages businesses," "Leape of Pharmaceuticals business" and "Establish and foster the Health Science business."

To further ensure the realization of KV2027, we must strengthen our portfolio management, clarify investment priorities and focus management resources, and further enhance corporate value in the three domains of Food & Beverages, Pharmaceuticals, and Health Science, based on our "Organizational capabilities for innovation."

In order to further enhance the execution of these initiatives, we will introduce a "CEO" and "COO" structure to accelerate group-wide efforts and change the group management structure with the aim of generational change in the executive structure to achieve sustainable growth.

(2) Changes of Representative Directors of the Board

Name	New appointment	Current tittle
Yoshinori Isozaki	Representative Director of the Board & CEO of Kirin Holdings	Representative Director of the Board, President & CEO of Kirin Holdings
Takeshi Minakata	Representative Director of the Board, President & COO of Kirin Holdings	Director of the Board, Senior Executive Officer and President of Health Science Business Division of Kirin Holdings
Keisuke Nishimura	Retirement	Representative Director of the Board, Senior Executive Vice President of Kirin Holdings

(3) Changes of Directors of the Board

Name	New appointment	Current tittle
Junko Tsuboi	Director of the Board, Senior Executive Vice President of Kirin Holdings	Director of the Board, Senior Executive Officer of Kirin Holdings
Toru Yoshimura	Director of the Board, Senior Executive Officer and President of Health Science Business Division of Kirin Holdings	Senior Executive Officer of Kirin Holdings and President & CEO of Kirin Beverage
Shinjiro Akieda	Director of the Board, Senior Executive Officer of Kirin Holdings	Senior Executive Officer of Kirin Holdings
Yoshiko Ando	Non-executive Director of the Board of Kirin Holdings	Audit & Supervisory Board Member of Kirin Holdings
Toshiya Miyoshi	Retirement	Director of the Board, Senior Executive Officer of Kirin Holdings
Chieko Matsuda	Retirement	Non-executive Director of the Board of Kirin Holdings

- Reappointed Directors of the Board

Name	New appointment/Current tittle
Masakatsu Mori	Non-executive Director of the Board of Kirin Holdings
Hiroyuki Yanagi	Non-executive Director of the Board of Kirin Holdings
Noriko Shiono	Non-executive Director of the Board of Kirin Holdings
Rod Eddington	Non-executive Director of the Board of Kirin Holdings
George Olcott	Non-executive Director of the Board of Kirin Holdings
Shinya Katanozaka	Non-executive Director of the Board of Kirin Holdings

(4) Changes of Audit & Supervisory Board Members

Name	New appointment	Current tittle
Yoko Dochi	Audit & Supervisory Board Member of Kirin Holdings	Outside Director of NIPPO LTD. Outside Director of Rinnai Corporation
Yoshiko Ando	Retirement (Non-executive Director of the Board of Kirin Holdings)	Audit & Supervisory Board Member of Kirin Holdings

- Reappointed Audit & Supervisory Board Members

Name	New appointment/Current tittle
Kaoru Kashima	Audit & Supervisory Board Member of Kirin Holdings

Remaining-in-office Audit & Supervisory Board Members

Name	New appointment/Current tittle
Shobu Nishitani	Standing Audit & Supervisory Board Member of Kirin Holdings
Toru Ishikura	Standing Audit & Supervisory Board Member of Kirin Holdings
Kenichi Fujinawa	Audit & Supervisory Board Member of Kirin Holdings

(5) The Profile of candidates of Representative Directors and new Director of the Board Members and new Audit & Supervisory Board Members

Attached at the end.

(6) The Date of Appointment

The official appointments are subject to the approval at the Ordinary General Meeting of Shareholders to be held on March 28, 2024, and their titles and responsibilities will be determined at the Board meeting and Audit & Supervisory Board following the Ordinary General Meeting of Shareholders.

2. Appointment of Executive Roles of subsidiaries of Kirin Holdings

(1) Unofficial appointment of Executive Roles of subsidiaries of Kirin Holdings

	President & CEO
Kirin Brewery	Hideki Horiguchi (Re-appointment)
Kirin Beverage	Kazuhiro Inoue (New)
Mercian	Masamitsu Otsuka (New)
Kyowa Hakko Bio	Koji Fukada (New)

(2) Changes of Representative Directors of subsidiaries of Kirin Holdings

Name	New appointment	Current tittle
Kazuhiro Inoue	Senior Executive Officer of Kirin Holdings and President & CEO of Kirin Beverage	Senior Executive Officer, General Manager of Off-Premise Head Office of Marketing Division of Kirin Brewery
Masamitsu Otsuka	President & CEO of Mercian	General Manager, International Management Office, International Business Division of FANCL Corporation Director, Head of Administration Division of FANCL(Shanghai) Trading Limited Deputy Director, International Business Development of FANCL Corporation
Koji Fukada	Senior Executive Officer of Kirin Holdings and President & CEO of Kyowa Hakko Bio	Senior Executive Officer and President of Research & Development Division of Kirin Holdings
Toru Yoshimura	Director of the Board, Senior Executive Officer and President of Health Science Business Division of Kirin Holdings	Senior Executive Officer of Kirin Holdings and President & CEO of Kirin Beverage
Michio Nagabayashi	Retirement	President & CEO of Mercian
Yuki Kanzaki	Retirement	Senior Executive Officer of Kirin Holdings and President & CEO of Kyowa Hakko Bio

(3) The Date of Appointment

The official appointments are subject to the approval at the Ordinary General Meeting of Shareholders of each subsidiary to be held on March 28, 2024.

^* Attachment The Profile of candidates of Representative Directors and new Directors of the Board Members and new Audit & Supervisory Board Members
^* Reference materials List of officers scheduled to be appointed at Kirin Holdings

The Profile of candidate of Representative Director & CEO (Kirin Holdings)

Yoshinori Isozaki

Date of birth:	August 9, 1953
Birthplace	Kanagawa Pref. Japan
Number of shares held:	71,948 shares
Experience:
September 2021	President & CEO of Kirin Brewery Company, Limited (retired in January 2022)
March 2015-present	Representative Director of the Board, President & CEO of Kirin Holdings Company, Limited
January 2013	President & CEO of Kirin Company, Limited
March 2012	President & CEO of Kirin Brewery Company, Limited (retired in January 2015)
March 2010	Managing Director of Kirin Holdings Company, Limited (retired in March 2012)
March 2009	Senior Executive Officer and General Manager of Corporate Planning Department of Kirin Holdings Company, Limited
March 2008	Executive Officer and General Manager of Corporate Planning Department of Kirin Holdings Company, Limited
July 2007	General Manager of Corporate Planning Department of Kirin Holdings Company, Limited
March 2007	General Manager of Corporate Planning Department of Kirin Brewery Company, Limited
March 2004	Director of San Miguel Corporation
April 1977	Joined Kirin Brewery Company, Limited

The Profile of candidate of new Representative Director, President & COO (Kirin Holdings)

Takeshi Minakata

Date of birth:	December 31, 1961
Birthplace	Hiroshima Pref. Japan
Number of shares held:	8,835 shares
Experience:
August 2023-present	Director of the Board of Blackmores Limited
April 2022-present	Director of the Board, Senior Executive Officer and President of Health Science Business Division of Kirin Holdings Company, Limited
March 2022-present	Director of the Board of Kyowa Kirin Co., Ltd.
March 2022	Director of the Board, Senior Executive Officer of Kirin Holdings Company, Limited
March 2020	Senior Executive Officer of Kirin Holdings Company, Limited President & CEO of Kyowa Hakko Bio Co., Ltd. (retired in December 2021)
March 2018	President & CEO of Kyowa Hakko Bio Co., Ltd.
April 2016	President and CEO of Myanmar Brewery Limited
March 2016	Senior Executive Officer of Kirin Holdings Company, Limited (retired in March 2018)
March 2015	Senior Executive Officer and Director of Group Strategy Planning of Kirin Holdings Company
	Senior Executive Officer and General Manager of Corporate Planning Department of Kirin Company, Limited
January 2013	Executive Officer and General Manager of Corporate Planning Department of Kirin Company, Limited
	Executive Officer and General Manager of Corporate Planning Department of Kirin Brewery Company, Limited
March 2012	General Manager, Corporate Planning Department of Kirin Brewery Company, Limited
April 1984	Joined Kirin Brewery Company, Limited

The Profile of candidate of Director of the Board, Senior Executive Vice President (Kirin Holdings)

Junko Tsuboi

Date of birth:	August 8, 1962
Experience:
March 2023-present	Director of the Board, Senior Executive Officer of Kirin Holdings Company, Limited
March 2022	Senior Executive Officer of Kirin Holdings Company, Limited
June 2020-present	Outside Director of FANCL Corporation
March 2019	Senior Executive Officer, General Manager of Strategic Branding Department of Kirin Holdings Company, Limited
March 2014	Executive Officer, General Manager of Strategic Branding Department, CSV Division of Kirin Company, Limited
January 2013	General Manager of Strategic Branding Department, CSV Division of Kirin Company, Limited
November 2012	General Manager of Corporate Communications Department of Kirin Holdings Company, Limited
March 2012	General Manager of CSR Promotion Department and Corporate Communications Department of Kirin Holdings Company, Limited
March 2010	President and CEO of Yokohama Akarenga Inc..
March 2005	General Manager of Corporate Communications Department of Kirin Beverage Company, Limited
April 1985	Joined Kirin Brewery Company, Limited

The Profile of candidate of new Director of the Board (Kirin Holdings)

Toru Yoshimura

Date of birth:	June 8, 1964
Experience:
January 2022-present	Senior Executive Officer of Kirin Holdings Company, Limited President and CEO of Kirin Beverage Company, Limited
March 2021	Director of the Board of Kirin Brewery Company, Limited
March 2019	Director of the Board of Kirin Beverage Company, Limited
March 2019	Senior Executive Officer, General Manager of Corporate Strategy Department of Kirin Holdings Company, Limited
March 2018	Senior Executive Officer, General Manager of Corporate Strategy Department of Kirin Company, Limited Executive Officer, Director in Charge of Group Alliance Strategy of Kirin Holdings Company, Limited
March 2017	Executive Officer, General Manager of Corporate Strategy Department of Kirin Company, Limited Director in Charge of Group Alliance Strategy of Kirin Holdings Company, Limited
March 2016	General Manager of Corporate Strategy Department of Kirin Company, Limited
September 2012	Kirin Strategy & Technical Liaison Director of Lion Pty Ltd
March 2004	Resident Brewmaster of Fukuoka Brewery of Kirin Brewery Company, Limited
April 1988	Joined Kirin Brewery Company, Limited

The Profile of candidate of new Director of the Board (Kirin Holdings)

Shinjiro Akieda

Date of birth:	July 18, 1965
Experience:
March 2023-present	Senior Executive Officer of Kirin Holdings Company, Limited
March 2022	Senior Executive Officer, General Manager of Corporate Strategy Department of Kirin Holdings Company, Limited
January 2022	Director of the Board of Kirin Brewery Company, Limited
January 2022	Executive Officer, General Manager of Corporate Strategy Department of Kirin Holdings Company, Limited
March 2020	Executive Officer, General Manager of Corporate Strategy Department and DX Strategy Office of Kirin Holdings Company, Limited
March 2019	Executive Officer, General Manager of Corporate Strategy Department of Kirin Holdings Company, Limited
March 2018	Executive Officer, General Manager of Corporate Planning Department of Kirin Brewery Company, Limited
March 2017	Senior Executive Officer, General Manager of Corporate Planning Department of Kirin Beverage Company, Limited
March 2015	Executive Officer, General Manager of Corporate Planning Department of Kirin Beverage Company, Limited
March 2013	Executive Officer, General Manager of Corporate Planning Department of Mercian Corporation
March 2010	Chairman and President of Taiwan Kirin Company, Limited
April 1988	Joined Kirin Brewery Company, Limited

The Profile of candidate of new Director of the Board (Kirin Holdings)

Yoshiko Ando

Date of birth:	March 17, 1959
Experience:
June 2020-present	Outside Director of JFE Holdings, Inc.
June 2019-present	Outside Director of Sansei Technologies, Inc.
March 2019-present	Audit & Supervisory Board Member of Kirin Holdings Company, Limited
July 2017	Director-General for Human Resources Development of the Ministry of Health, Labour and Welfare
June 2016	Director-General for Statistics and Information Policy of the Ministry of Health, Labour and Welfare
October 2015	Director-General for Labour Policy Planning of the Ministry of Health, Labour and Welfare
July 2014	Director-Gneral of Equal Employment, Children and Families Bureau of the Ministry of Health, Labour and Welfare
July 2013	Director-Gneral of Industrial Accident Compensation Dept. of Labour Standards Bureau of the Ministry of Health, Labour and Welfare
July 2011	Director-General of the Saitama Labor Bureau of the Ministry of Health, Labour and Welfare
July 2006	Director of Equal Employment Policy Div. of Equal Employment, Children and Families Bureau of the Ministry of Health, Labour and Welfare
April 2003	Lieutenant governor of Shiga prefecture
April 1982	Entered the Ministry of Labor

The Profile of candidate of new Audit & Supervisory Board Member (Kirin Holdings)

Yoko Dochi

Date of birth:	October 3, 1964
Experience:
June 2023-present	Outside Director, Rinnai Corporation
June 2020-present	Outside Director, NIPPO LTD.
February 2020	Managing Partner, SoftBank Group International Ltd.
November 2018	Managing Director, Global Head of Investor Relations, SoftBank Group Corp.
March 2018	Principal Investor Relations Officer, Accounting Division, Toyota Motor Corporation
January 2015	General Manager, Global Treasury & Investor Relations, Toyota Motor Europe NV/SA.
May 2001	Joined Toyota Motor Europe NV/SA.
September 1996	Joined World Bank Group
April 1987	Joined The Bank of Tokyo, Ltd. (currently MUFG Bank, Ltd.)

The Profile of candidate of new President & CEO

(Kirin Beverage)

Kazuhiro Inoue

Date of birth:	January 6, 1966
Experience:
March 2021-present	Senior Executive Officer, General Manager of Off-Premise Head Office, Marketing Division of Kirin Brewery Company, Limited
March 2019	Senior Executive Officer, General Manager of National Distribution Division, Marketing Division of Kirin Brewery Company, Limited
March 2018	Executive Officer, General Manager of National Distribution Division, Marketing Division of Kirin Brewery Company, Limited
January 2017	General Manager of National Distribution Division, Marketing Division of Kirin Brewery Company, Limited
March 2016	General Manager of National Distribution Division of Kirin Brewery Marketing Company, Limited
March 2015	General Manager of Marketing Department of Kirin Brewery Company, Limited
June 2009	Executive Officer Sales Director Sales Department of Diageo Kirin Company, Limited
September 2007	Sales Director Sales Department of Yakult Nextstage Company, Limited
April 2003	Senior Manage Metropolitan Area Distribution Department 3, Metropolitan Area Regional Head Office, Alcoholic beverages Sales Division of Kirin Brewery Company, Limited
April 1988	Joined Kirin Brewery Company, Limited

The Profile of candidate of new President & CEO (Mercian)

Masamitsu Otsuka

Date of birth:	December 30, 1969
Experience:
March 2023-present	General Manager, International Management Office, International Business Division of FANCL Corporation
	Director, Head of Administration Division of FANCL(Shanghai) Trading Limited
	Deputy Director, International Business Development of FANCL Corporation
June 2022	General Manager, International Business Division of FANCL Corporation
October 2018	Director of the Board, China Resources Enterprise, Limited
August 2006	Transferred to Kirin (China) Investment Company, Limited
April 1993	Joined Kirin Brewery Company, Limited

The Profile of candidate of new President & CEO (Kyowa Hakko Bio)

Koji Fukada

Date of birth:	January 20, 1966
Experience:
March 2023-present	Senior Executive Officer, President of Research & Development Division of Kirin Holdings Company, Limited
March 2022-present	Director of the Board of Kyowa Hakko Bio Co., Ltd.
March 2022	Senior Executive Officer of Kirin Holdings Company, Limited
April 2019	Executive Officer, General Manager of Quality Assurance Department of Kirin Holdings Company, Limited
March 2017	General Manager of Quality Assurance Department of Kirin Company, Limited
April 2015	Deputy General Manager of Alcoholic Beverages Technology Research Institute, Research & Development Division of Kirin Company, Limited
March 2010	Brewing Manager of Yokohama Brewery of Kirin Brewery Company, Limited
March 2007	Brewing Manager of Kobe Brewery of Kirin Brewery Company, Limited
January 2004	Transferred to Lion Nathan Pty Ltd. (currently Lion Pty Ltd.)
April 1990	Joined Kirin Brewery Company, Limited

[Reference] List of officers scheduled to be appointed at Kirin Holdings (As of March 28, 2024)

Title	Name	Area of Responsibility
Representative Director of the Board & CEO	Yoshinori Isozaki	Group Management Control Member of the Nomination and Remuneration Advisory Committee
Representative Director of the Board, President & COO	Takeshi Minakata ^*	Group Business Execution Control, Member of the Nomination and Remuneration Advisory Committee
Director of the Board, Senior Executive Vice President	Junko Tsuboi	Chief People Officer (Group Human Capital Management), Chief Legal Officer
Director of the Board, Senior Executive Officer	Toru Yoshimura ^*	Health Science Strategy, President of Health Science Business Division
Director of the Board, Senior Executive Officer	Shinjiro Akieda ^*	Chief Financial Officer (Financial Strategy, IR)
Senior Executive Officer	Mitsuharu Yamagata	Brand Strategy, Marketing Strategy, Digital/IT Strategy, Kirin Brewery (Senior Executive Vice President in charge of Marketing)
Senior Executive Officer	Hiroshi Fujikawa ^*	CSV Strategy, Public Relations Strategy, General Manager of CSV Strategy Department
Senior Executive Officer	Akiyoshi Iwasaki ^*	SCM Strategy, Production Technology Strategy
Senior Executive Officer	Akihito Yokoyama ^*	R&D Strategy, President of R&D Division
Senior Executive Officer	Kazufumi Nagashima ^*	Chief Quality Assurance Officer, General Manager of Quality Assurance Department
Senior Executive Officer	Hideki Mitsuhashi ^*	Business Alliance/Investment Strategies, Chief Risk Management Officer, Overseas Responsibilities including Overseas Craft Beer Strategy
Senior Executive Officer	Hideki Horiguchi	President & CEO of Kirin Brewery
Senior Executive Officer	Kazuhiro Inoue ^*	President & CEO of Kirin Beverage
Senior Executive Officer	Koji Fukada	President & CEO of Kyowa Hakko Bio
Non-executive Director of the Board	Masakatsu Mori
Non-executive Director of the Board	Hiroyuki Yanagi	Chairperson of the Board
Non-executive Director of the Board	Noriko Shiono	Member of the Nomination and Remuneration Advisory Committee (Committee Chair)
Non-executive Director of the Board	Rod Eddington
Non-executive Director of the Board	George Olcott
Non-executive Director of the Board	Shinya Katanozaka	Member of the Nomination and Remuneration Advisory Committee
Non-executive Director of the Board	Yoshiko Ando ^*	Member of the Nomination and Remuneration Advisory Committee
Standing Audit & Supervisory Board Member	Shobu Nishitani
Standing Audit & Supervisory Board Member	Toru Isikura
Audit & Supervisory Board Member	Kaoru Kashima
Audit & Supervisory Board Member	Kenichi Fujinawa
Audit & Supervisory Board Member	Yoko Dochi ^*

^*: New Representative Director of the Board, Director of the Board, Audit & Supervisory Board Member and Senior Executive Officer

Supplementary Documents to the Consolidated Financial Statements for the Year Ended December 31, 2023

1. Summary of Consolidated Statement of Financial Position

2. Summary of Consolidated Statement of Profit or Loss, Indices, etc.

3. Revenue Details

4. Profit Details

5. Summary of Consolidated Statement of Cash Flows

February 14,2024

KIRIN HOLDINGS COMPANY, LIMITED

1.SUMMARY OF CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(¥ billions)

	As of December 31, 2023, Actual	As of December 31, 2022, Actual	Increase (decrease)	Description of changes
Non-current assets	1,911.8	1,655.2	256.5
Property, plant and equipment	592.9	560.6	32.3
Goodwill	390.6	289.5	101.0	Acquisition of a subsidiary, etc
Intangible assets	303.5	200.9	102.6	Acquisition of a subsidiary, etc.
Equity-accounted investees	370.7	361.8	9.0
Other	254.0	242.4	11.6
Current assets	957.8	887.0	70.8
Inventories	331.0	290.2	40.8
Trade and other receivables	444.9	409.2	35.8
Cash and cash equivalents	131.4	88.1	43.3
Other	50.5	99.6	(49.1)
Total assets	2,869.6	2,542.3	327.3
Equity	1,425.8	1,253.2	172.6
Equity attributable to owners of the Company	1,132.6	980.0	152.6	Increase in foreign currency translation differences arising from yen depreciation, etc.
Non-controlling interests	293.3	273.2	20.1
Non-current liabilities	770.9	656.4	114.6
Bonds and borrowings	555.7	408.7	147.1	Increase due to new borrowings, etc.
Other	215.2	247.7	(32.5)
Current liabilities	672.8	632.7	40.1
Bonds and borrowings	100.7	114.5	(13.8)
Trade and other payables	306.7	265.2	41.5
Other	265.5	253.1	12.4
Total liabilities	1,443.7	1,289.1	154.7
Total equity and liabilities	2,869.6	2,542.3	327.3

2.SUMMARY OF CONSOLIDATED STATEMENT OF PROFIT OR LOSS, INDICES, etc.

(1) Summary of Statement of Profit or Loss, Indices, etc.

(¥ billions)

	Year ended December 31, 2023, Actual	Year ended December 31, 2022, Actual	Increase (decrease)
Revenue	2,134.4	1,989.5	144.9	7.3%
Gross profit	963.5	905.7	57.8	6.4%
Selling, general and administrative expenses	762.0	714.6	47.4	6.6%
Normalized operating profit	201.5	191.2	10.3	5.4%
Other operating income	28.8	29.5	(0.6)	(2.1%)
Other operating expenses	80.0	104.6	(24.6)	(23.5%)
Operating profit	150.3	116.0	34.3	29.5%
Finance income	9.0	11.0	(1.9)	(17.7%)
Finance costs	10.5	6.5	4.0	62.4%
Share of profit of equity-accounted investees	32.8	22.8	10.0	43.9%
Gain on sale of equity-accounted investees	15.5	48.1	(32.6)	(67.8%)
Profit before tax	197.0	191.4	5.7	3.0%
Income tax expense	46.6	47.6	(1.0)	(2.1%)
Profit	150.4	143.8	6.7	4.6%
Owners of the Company	112.7	111.0	1.7	1.5%
Non-controlling interests	37.7	32.8	5.0	15.2%
ROIC	8.0%	8.5%
Normalized EPS	¥177	¥171	¥6	3.5%
Revenue (excluding liquor tax)	1,854.9	1,705.0	149.9	8.8%
Normalized operating profit ratio (excluding liquor tax)	10.9%	11.2%
ROE	10.7%	11.8%
Normalized EBITDA	293.0	277.7	15.3	5.5%
Gross Debt Equity Ratio	0.58	0.53

(Reference) Indices excluding the impact of fluctuation in exchange rate ^*

	Year ended December 31, 2023, Actual
Normalized operating profit	188.1
ROIC	7.6%
Normalized EPS	¥164

^* Converted foreign currency amounts of the actual results at the exchange rate of the initial forecast announced on February 14, 2023.

ROIC= Profit after tax before interest / (Average total interest-bearing liabilities at beginning and end of the period + Average total equity at beginning and end of the period)

Normalized EPS = Normalized profit / Average number of shares outstanding during period

Normalized profit = Profit attributable to Owners of the Company # Other operating income and expenses and other items after income taxes

Normalized EBITDA = Normalized operating profit + Depreciation and amortization ^* + Dividends received from equity-accounted investees * Depreciation and amortization exclude those from right-of-use assets.

(2) Exchange Rate for the Consolidation of Profit or Loss of the Major Overseas Companies

(¥)

	Year ended December 31, 2023 Actual	Year ended December 31, 2022, Actual
Lion (AUD)	93.64	91.18
Coke Northeast (USD)	141.20	132.08

(3) Period for the Consolidation of Profit or Loss of the Major Overseas Company

	Year ended December 31, 2023, Actual	Year ended December 31, 2022, Actual
San Miguel Brewery	From October 2022 to September 2023	From October 2021 to September 2022

3. REVENUE DETAILS

(1) Revenue Details

(¥ billions)

	Year ended December 31, 2023, Actual	Year ended December 31, 2022 Actual	Increase (decrease)
Revenue	2,134.4	1,989.5	144.9	7.3%
Japan Beer and Spirits	684.9	663.5	21.3	3.2%
Kirin Brewery	648.1	635.1	13.0	2.0%
Other and elimination	36.8	28.4	8.3	29.3%
Japan Non-alcoholic Beverages	255.0	243.3	11.8	4.8%
Kirin Beverage	257.8	245.8	12.0	4.9%
Elimination	(2.8)	(2.5)	(0.3)	-
Oceania Adult Beverages	281.0	255.9	25.1	9.8%
Lion	281.1	256.0	25.1	9.8%
Elimination	(0.1)	(0.1)	0.0
Pharmaceuticals	441.9	397.9	44.0	11.1%
Kyowa Kirin	442.2	398.4	43.9	11.0%
Elimination	(0.4)	(0.5)	0.2	-
Other	471.6	428.9	42.7	10.0%
Mercian	64.4	60.5	3.9	6.5%
Coke Northeast	250.1	216.2	34.0	15.7%
Kyowa Hakko Bio	51.4	51.1	0.4	0.8%
Other and elimination	105.6	101.2	4.4	4.4%

(Reference) Revenue excluding liquor tax (¥ billions)

	Year ended December 31, 2023, Actual	Year ended December 31, 2022, Actual
Kirin Brewery	392.2	373.0

(2) Sales Volume Details of Major Business Companies

a.Kirin Brewery

	Year ended December 31, 2023		Year ended December 31, 2022
	Actual	Increase (decrease)	Actual	Increase (decrease)
Sales volume	Thousand KL		Thousand KL
Total beer products	1,442	(5.9%)	1,532	(2.5%)
RTD	424	(2.4%)	435	(3.3%)
Non-alcohol beverages	43	(6.6%)	46	(6.9%)
Sales volume by main brands	Thousand KL		Thousand KL
KIRIN ICHIBAN brand family total	370	5.4%	351	3.1%
SPRING VALLEY brand total	21	0.1%	21	15.5%
Kirin Tanrei Green Label	146	(7.6%)	158	(7.4%)
Honkirin	194	(9.6%)	215	(7.0%)
Kirin Hyoketsu brand total	288	6.6%	270	6.1%

The above sales volume excludes exports and liquor tax exempts.

b. Kirin Beverage Group

	Year ended December 31, 2023		Year ended December 31, 2022
	Actual	Increase (decrease)	Actual	Increase (decrease)
	10,000 cases		10,000 cases
Non-Alcoholic Beverages Total	19.394	(4.4%)	20,293	(2.3%)
Health Science products	2,460	17.2%	2,099	3.1%
LC-Plasma products	893	35.3%	660	26.2%
Container Type	10,000 cases		10,000 cases
Can	2,146	(7.5%)	2,319	(4.2%)
Large-sized PET bottles (2L, 1.5L, etc.)	5,210	(15.7%)	6,182	(8.1%)
Small-sized PET bottles (500ml, 280ml, etc.)	10,239	3.4%	9,905	1.8%
Other	1,799	(4.7%)	1,887	(0.8%)
Total	19,394	(4.4%)	20,293	(2.3%)

	Year ended December 31, 2023		Year ended December 31, 2022
	Actual	Increase (decrease)	Actual	Increase(decrease)
Brands	10,000 cases		10,000 cases
Kirin Gogo-no-Kocha	5.092	2.0%	4,995	-
Kirin Nama-cha	2,781	(1.8%)	2.832	-

4. PROFIT DETAILS

(1) Normalized Operating Profit Details

(¥ billions)

	Year ended December 31, 2023, Actual	Year ended December 31, 2022, Actual	Increase (decrease)
Normalized operating profit	201.5	191.2	10.3	5.4%
Japan Beer and Spirits	77.7	74.7	3.1	4.1%
Kirin Brewery	72.9	71.5	1.4	1.9%
Others	4.8	3.1	1.7	54.5%
Japan Non-alcoholic Beverages	16.9	18.8	(1.9)	(10.1%)
Kirin Beverage	16.9	18.8	(1.9)	(10.1%)
Oceania Adult Beverages	32.4	31.5	0.9	2.7%
Lion	32.4	31.5	0.9	2.7%
Pharmaceuticals	96.0	82.5	13.5	16.4%
Kyowa Kirin	96.0	82.5	13.5	16.4%
Other	32.4	37.5	(5.2)	(13.8%)
Mercian	0.8	(0.6)	1.4	-
Coke Northeast	33.9	26.3	7.6	29.0%
Kyowa Hakko Bio	(8.5)	(3.9)	(4.6)	-
Others	6.1	15.7	(9.6)	(61.3%)
Corporate expenses and inter-segment eliminations	(53.9)	(53.8)	(0.0)	--

Normalized operating profit in each segment is calculated by adding back management fees paid to the Company to normalized operating profit.

(2) Normalized Operating Profit Breakdown of Major Business Companies

(¥ billions)

Company name	Major factors	Increase (decrease)	Description
Kirin Brewery	Increase in marginal profit of alcohol beverages, etc.	26.2	Total beer products (8.1) Sales decrease in total beer products (90) thousand KL Total products other than beer products (0.3) Sales decrease in RTD (11) thousand KL Sales decrease in non-alcohol beverages (3) thousand KL, etc. Impact of price revision and difference of change in composition of products, etc. 34.0
	Increase in raw material cost of alcohol beverages	(15.8)	Increase in market prices, etc.
	Increase in selling expenses	(4.7)	Increase in advertising (4.7), (Total 57.6 - 62.3)
	Increase in other expenses	(4.3)	Increase in expenditures, etc.
Total		1.4
Kirin Beverage	Increase in marginal profit of soft drink beverages	11.2	Decrease in sales volume (8.99) million cases (4.0) Difference of change in products mix and composition ratio of containers, etc. 15.2
	Increase in raw material cost, etc.	(10.4)	Increase in raw material cost (3.9), increase in material cost (4.8), and increase in processing cost (1.6)
	Increase in selling expenses	(2.6)	Increase in sales promotion(0.3), increase in advertising (2.3) (Total 23.0->25.6)
	Increase in other expenses	(0.1)
Total		(1.9)

(3) Other Operating Income and Other Operating Expenses

(¥ billions)

	Year ended December 31, 2023, Actual	Year ended December 31,2022, Actual	Increase (decrease)
Other operating income	28.8	29.5	(0.6)
Gain on sale of property, plant and equipment and intangible assets	6.1	9.5	(3.4)
Gain on sale of shares of subsidiaries	14.8		14.8
Gain on reversal of impairment losses	0.1	13.2	(13.1)
Other	7.8	6.8	1.0
Other operating expenses	80.0	104.6	(24.6)
Impairment losses	30.0	66.2	(36.2)
Business restructuring expenses	2.8	0.7	2.0
Software development expenses	0.3	7.1	(6.8)
Loss on disposal and sale of property, plant and equipment and intangible assets	2.8	5.0	(2.3)
Loss on sale of shares of subsidiaries	19.4	-	19.4
Other	24.9	25.5	(0.7)

(4) Finance Income, Finance Costs, Share of Profit of Equity-accounted Investees, etc.

(¥ billions)

	Year ended December 31, 2023 Actual	Year ended December 31, 2022, Actual	Increase (decrease)
Finance income	9.0	11.0	(1.9)
Interest income	3.5	4.0	(0.5)
Dividend income	0.6	0.5	0.1
Foreign exchange gains (net)	4.3	5.3	(1.0)
Other	0.6	1.2	(0.6)
Finance costs	10.5	6.5	4.0
Interest paid	5.9	4.9	1.0
Change in the fair value of contingent consideration	3.9	0.7	3.3
Other	0.6	0.9	(0.3)
Share of profit of equity-accounted investees	32.8	22.8	10.0
San Miguel Brewery	30.3	25.4	4.9
Others	2.5	(2.7)	5.1
Gain on sale of equity-accounted investees	15.5	48.1	(32.6)

5. SUMMARY OF CONSOLIDATED STATEMENT OF CASH FLOWS

(1) Summary of Statement of Cash Flows

(¥ billions)

	Year ended December 31, 2023, Actual	Year ended December 31, 2022, Actual	Increase (decrease)
Cash flows from operating activities	203.2	135.6	67.6
Profit before tax	197.0	191.4	5.7
Depreciation and amortization	87.2	85.9	1.3
Other	(81.1)	(141.8)	60.7
Cash flows from investing activities	(226.1)	(10.4)	(215.7)
Acquisition of property, plant and equipment and intangible assets	(113.8)	(98.5)	(15.3)
Other	(112.3)	88.1	(200.4)
Cash flows from financing activities	35.9	(167.8)	203.7
Increase (decrease) in interest-bearing liabilities	126.2	(36.9)	163.0
Dividends paid	(71.2)	(65.5)	(5.7)
Other	(19.1)	(65.5)	46.4
Exchange rate changes.	4.8	6.7	(1.9)
Net increase (decrease) in cash and cash equivalents	17.9	(35.9)	53.8
Net increase (decrease) in cash and cash equivalents resulting from transfers to assets held for sale	25.5	(25.5)	51.0

(2) Information by Segment

As of December 31, 2023, Actual

(¥ billions)

	Japan Beer and Spirits	Japan Non-alcoholic Beverages	Oceania Adult Beverages	Pharmaceuticals	Others	Adjustment	Total
Depreciation and amortization	13.6	6.3	12.0	17.2	13.0	5.4	67.6
Acquisition of property, plant and equipment and intangible assets	13.5	12.4	13.2	33.6	32.0	9.1	113.8
Normalized EBITDA	91.3	23.2	44.4	113.2	69.4	(48.4)	293.0

Depreciation and amortization exclude those from right-of-use assets.

As of December 31, 2022, Actual (¥ billions)

-	Japan Beer and Spirits	Japan Non-alcoholic Beverages	Oceania Adult Beverages	Pharmaceuticals	Others	Adjustment	Total
Depreciation and amortization	13.1	6.3	11.9	14.5	14.8	5.7	66.3
Acquisition of property, plant and equipment and intangible assets	16.9	6.4	11.5	28.5	26.7	8.5	98.5
Normalized EBITDA	87.7	25.0	43.4	97.0	72.6	(48.1)	277.7

Depreciation and amortization exclude those from right-of-use assets.

Supplementary Documents to the Forecast Consolidated Business Results for the Year Ending December 31, 2024

1. Summary of Consolidated Statements of Profit or Loss, Indices, etc.

2. Revenue Details

3. Profit Details

4. Information by Segment

1. SUMMARY OF CONSOLIDATED STATEMENT OF PROFIT OR LOSS, INDICES, etc.

(1) Summary of Statement of Profit or Loss, Indices, etc.

(¥ billions)

	Year ending December 31, 2024, Forecast	Year ended December 31, 2023, Actual	Increase (decrease)
Revenue	2,270.0	2,134.4	135.6	6.4%
Normalized operating profit	202.0	201.5	0.5	0.3%
Other operating income	9.6	28.8	(19.3)	(66.8%)
Other operating expenses	26.6	80.0	(53.5)	(66.8%)
Operating profit	185.0	150.3	34.7	23.1%
Finance income	7.2	9.0	(1.9)	(20.7%)
Finance costs	7.2	10.5	(3.3)	(31.5%)
Share of profit of equity-accounted investees	34.1	32.8	1.3	3.9%
Gain on sale of equity-accounted investees	-	15.5	(15.5)	-
Profit before tax	219.0	197.0	22.0	11.1%
Income tax expense	58.0	46.6	11.4	24.4%
Profit	161.0	150.4	10.6	7.0%
Owners of the Company	131.0	112.7	18.3	16.2%
Non-controlling interests	30.0	37.7	(7.7)	(20.5%)
ROIC	8.0%	8.0%
Normalized EPS	¥177	¥177		-
Revenue (excluding liquor tax)	1,978.0	1,854.9	123.1	6.6%
Normalized operating profit ratio (excluding liquor tax)	10.2%	10.9%
ROE	11.3%	10.7%
Normalized EBITDA	300.3	293.0	7.3	2.5%
Gross Debt Equity Ratio	0.65	0.58

ROIC = Profit after tax before interest / (Average total interest-bearing liabilities at beginning and end of the period + Average total equity at beginning and end of the period)

Normalized EPS = Normalized profit / Average number of shares outstanding during period

Normalized profit = Profit attributable to Owners of the Company ± Other operating income and expenses and other items after income taxes

Normalized EBITDA = Normalized operating profit + Depreciation and amortization ^* + Dividends received from equity-accounted investees

^* Depreciation and amortization exclude those from right-of-use assets.

(2) Exchange Rate for the Consolidation of Profit or Loss of the Major Overseas Companies

(¥)

	Year ending December 31, 2024, Forecast	Year ended December 31, 2023, Actual
Lion (AUD)	93.00	93.64
Four Roses Distillery (USD)	140.00	141.20
Coke Northeast (USD)	140.00	141.20
Blackmores (AUD)	93.00	95.73

(3) Period for the Consolidation of Profit or Loss of the Major Overseas Company

	Year ending December 31, 2024. Forecast	Year ended December 31, 2023, Actual
San Miguel Brewery	From October 2023 to September 2024	From October 2022 to September 2023

2. REVENUE DETAILS

(1) Revenue Details

(¥ billions)

	Year ending December 31, 2024, Forecast	Year ended December 31, 2023, Actual	Increase (decrease)
Revenue	2,270.0	2,134.4	135.6	6.4%
Alcoholic Beverages	1,092.8	1,045.1	47.7	4.60%
Kirin Brewery	676.6	648.1	28.5	4.4%
Lion	296.3	281.1	15.2	5.4%
Australia & NZ	204.9	198.8	6.1	3.1%
US Craft etc.	91.4	82.3	9.1	11.1%
Four Roses Distillery	26.5	24.5	1.9	7.89
Other and elimination	93.5	91.4	2.0	2.2%
Non-alcoholic Beverages	544.2	516.2	28.1	5.4%
Kirin Beverage	276.6	257.8	18.8	7.3%
Coke Northeast	259.0	250.1	8.9	3.5%
Other and elimination	8.7	8.2	0.4	5.2%
Pharmaceuticals	473.0	441.9	31.1	7.0%
Kyowa Kirin	473.0	442.2	30.8	7.0%
Elimination		(0.4)	0.4
Health Science	146.8	103.4	43.5	42.1%
Blackmores	67.4	32.0	35.4	110.6%
Kyowa Hakko Bio	58.9	51.4	7.5	14.5%
Other and elimination	20.6	19.9	0.6	3.2%
Other	13.1	27.8	(14.7)	(52.8%)

(Reference) Revenue excluding liquor tax (¥ billions)

	Year ending December 31, 2024, Forecast	Year ended December 31, 2023, Actual
Kirin Brewery	409.3	392.2

(2) Sales Details of Major Business Companies

a. Kirin Brewery

	Year ending December 31, 2024		Year ended December 31, 2023
	Forecast	Increase (decrease)	Actual	Increase (decrease)
Sales volume	Thousand KL		Thousand KL
Total beer products	1,479	2.6%	1,442	(5.9%)
RTD	429	1.3%	424	(2.4%)
Non-alcohol beverages	46	7.9%	43	(6.6%)
Sales volume by main brands	Thousand KL		Thousand KL
KIRIN ICHIBAN brand family total	370	(0.0%)	370	5.4%
SPRING VALLEY brand total	26	20.3%	21	0.1%
Kirin Tanrei Green Label	147	0.9%	146	(7.6%)
Honkirin	188	(3.5%)	194	(9.6%)
Kirin Hyoketsu brand total	273	(5.2%)	288	6.6%

The above sales volume excludes exports and liquor tax exempts.

b. Kirin Beverage Group

	Year ending December 31, 2024		Year ended December 31, 2023
	Forecast	Increase (decrease)	Actual	Increase (decrease)
	10,000 cases		10,000 cases
Non-Alcoholic Beverages Total	19,516	0.6%	19,394	(4.4%)
Health Science products	2,816	14.5%	2,460	17.2%
LC-Plasma products	1,242	39.1%	893	35.3%
Container Type	10,000 cases		10,000 cases
Can	2,146	0.0%	2,146	(7.5%)
Large-sized PET bottles (2L, 1.5L, etc.)	4.822	(7.4%)	5.210	(15.7%)
Small-sized PET bottles (500ml, 280ml, etc.)	10,904	6.5%	10,239	3.4%
Other	1,644	(8.6%)	1,799	(4.7%)
Total	19,516	0.6%	19,394	(4.4%)

	Year ending December 31, 2024		Year ended December 31, 2023
	Forecast	Increase (decrease)	Actual	Increase (decrease)
Brands	10,000 cases		10,000 cases
Kirin Gogo-no-Kocha	5,104	0.2%	5,092	2.0%
Kirin Nama-cha	2,767	(0.5%)	2,781	(1.8%)

3. PROFIT DETAILS

(1) Normalized Operating Profit Details

(¥ billions)

	Year ending December 31, 2024, Forecast	Year ended December 31, 2023, Actual	Increase (decrease)
Normalized operating profit	202.0	201.5	0.5	0.3%
Alcoholic Beverages	124.2	119.9	4.3	3.6%
Kirin Brewery	73.5	72.9	0.6	0.8%
Lion	35.3	32.4	2.9	9.1%
Australia & NZ	24.5	22.1	2.4	11.1%
US Craft etc.	10.8	10.3	0.5	4.8%
Four Roses Distillery	9.8	9.0	0.8	9.2%
Others	5.6	5.7	(0.0)	(0.3%)
Non-alcoholic Beverages	55.2	52.4	2.9	5.5%
Kirin Beverage	19.0	16.9	2.1	12.5%
Coke Northeast	35.0	33.9	1.1	3.2%
Others	1.2	1.5	(0.3)	(19.5%)
Pharmaceuticals	82.0	96.0	(14.0)	(14.6%)
Kyowa Kirin	82.0	96.0	(14.0)	(14.6%)
Health Science	(2.6)	(12.5)	9.9
Blackmores	5.8	(0.5)	6.3	-
Kyowa Hakko Bio	(3.0)	(8.5)	5.5
Others	(5.4)	(3.6)	(1.8)
Other	(1.1)	(0.1)	(1.0)	-
Corporate expenses and inter-segment eliminations	(55.8)	(54.2)	(1.6)	-

(2) Normalized Operating Profit Breakdown of Major Business Companies

(¥ billions)

Company name	Major factors	Increase (decrease)	Description
Kirin Brewery	Increase in marginal profit of alcohol beverages, etc.	11.9	Total beer products 5.7 Sales increase in total beer products 37 thousand KL Total other than beer products 0.3 Sales increase in RTD 5 thousand KL Sales increase in non-alcohol beverages 3 thousand KL, etc. Impact of price revision and difference of change in composition of products, etc. 5.9
	Increase in raw material cost of alcohol beverages	(7.2)	Increase in market prices, etc.
	Increase in selling expenses	(3.2)	Increase in sales promotion and advertising (Total 62.3->65.4)
	Increase in other expenses	(0.9)	Increase in expenditures, etc.
Total		0.6
Kirin Beverage	Increase in marginal profit of soft drink beverages	15.2	Increase in sales volume 1.22 million cases 0.6 Difference of change in products mix and composition ratio of containers, etc. 14.7
	Increase in raw material cost, etc.	(7.7)	Increase in raw material cost (2.8), increase in material cost (3.1), and increase in processing cost (1.8)
	Increase in selling expenses	(2.4)	Increase in sales promotion and advertising (2.4) (Total 25.6->28.0)
	Increase in other expenses	(3.0)	Increase in sales equipment cost and increase in business consignment expenses ,etc.
Total		2.1

4. INFORMATION BY SEGMENT

Year ending December 31, 2024, Forecast (¥ billions)

	Alcoholic Beverages	Non-alcoholic Beverages	Pharmaceuticals	Health Science	Others	Adjustment	Total
Depreciation and amortization	27.7	13.2	17.5	8.1	1.0	7.0	74.6
Acquisition of property, plant and equipment and intangible assets	45.9	23.2	60.3	15.0	10.4	8.2	163.0
Normalized EBITDA	174.3	68.5	99.5	6.8	(0.1)	(48.7)	300.3

Depreciation and amortization exclude those from right-of-use assets.

Year ended December 31, 2023, Actual

(¥ billions)

	Alcoholic Beverages	Non-alcoholic Beverages	Pharmaceuticals	Health Science	Others	Adjustment	Total
Depreciation and amortization	28.0	11.4	17.2	4.6	0.9	5.4	67.6
Acquisition of property, plant and equipment and intangible assets	32.1	26.3	33.6	12.1	2.8	6.9	113.8
Normalized EBITDA	170.6	63.8	113.2	(6.6)	0.9	(48.8)	293.0

Depreciation and amortization exclude those from right-of-use assets.

Independent Auditor's Report on the Financial Statements and Internal Control Over Financial Reporting

March 28, 2024

KPMG AZSA LLC Tokyo Office, Japan

To the Board of Directors of Kirin Holdings Company, Limited:

Isao Kamizuka, Designated Limited Liability Partner, Engagement Partner, Certified Public Accountant

Masahiro Sasaki, Designated Limited Liability Partner, Engagement Partner, Certified Public Accountant

Yoshihiro Fujioka, Designated Limited Liability Partner, Engagement Partner, Certified Public Accountant

Report on the Audit of the Consolidated Financial Statements

Opinion

We have audited the accompanying consolidated financial statements of Kirin Holdings Company, Limited ("the Company") and its consolidated subsidiaries (collectively referred to as "the Group") provided in the "Financial Information" section in the company's Annual Securities Report, which comprise the consolidated statement of financial position as at December 31, 2023, and the consolidated statements of profit or loss, comprehensive income, changes in equity and cash flows for the year then ended, and notes, in accordance with Article 193-2(1) of the Financial Instruments and Exchange Act of Japan.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2023, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board prescribed in Article 93 of "the Regulation on Terminology, Forms, and Preparation Methods of Consolidated Financial Statements" (IFRS Accounting Standards).

Basis for Opinion

We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Japan, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

We determined that "Reasonableness of the valuation of the equity-accounted investments in FANCL CORPORATION," which is mentioned below, was a key audit matter in our audit of the consolidated financial statements for the current fiscal year.

For "Reasonableness of the valuation of goodwill allocated to the Bio-chemicals business and its property, plant and equipment," which was the key audit matter from the previous fiscal year, we assessed the risk of material misstatement was mitigated because the qualitative and quantitative materiality of the relevant goodwill and property, plant and equipment decreased after the recognition of an impairment loss on them for the previous fiscal year. In addition, the estimation uncertainty and subjectivity of the Company's management decreased in the current fiscal year resulting from our risk assessment based on our understanding of the Company and its business environment. As a result, the relative materiality decreased in our audit of the consolidated financial statements, and accordingly, we determined the matter no longer a key audit matter for the current fiscal year.

Reasonableness of the valuation of equity-accounted investments in FANCL CORPORATION

The key audit matter

How the matter was addressed in our audit

As described in Note 36. "Equity-accounted investees" to the consolidated financial statements, Kirin Holdings Company, Limited (the "Company") recognized investments in FANCL CORPORATION ("FANCL") of ¥128,723 million (4.5% of total assets) at the end of the current fiscal year
Equity-accounted investments need to be tested for impairment whenever there is an impairment indicator. In the impairment testing, when the recoverable amount is less than the carrying amount, the carrying amount is reduced to the recoverable amount, and the resulting decrease in the carrying amount is recognized as an impairment loss.
As fair value of the investments in FANCL has decreased from the acquisition cost over time and there was an impairment indicator for the investments, the Company performed impairment testing at the end of the current fiscal year. After reviewing the results of the impairment testing, the Company recognized no impairment loss, as the recoverable amount exceeded the carrying amount.
The recoverable amount of the equity-accounted investments in FANCL in the impairment testing was measured based on the value in use. The value in use was calculated by discounting the estimated future cash flows based on management's approved business plan of FANCL to the present value.
The business plan used as the basis for calculating the value in use included significant assumptions for the recovery of inbound demand from China and other countries, and the increase in sales of the domestic online shopping channel and overseas markets.
As the estimates thereof involved uncertainty, they had a significant effect on the calculation of the value in use. In addition, selecting appropriate models and input data for determining the discount rate and perpetual growth rate used to calculate the value in use required a high degree of valuation expertise. We, therefore, determined that our assessment of the reasonableness of the valuation of the equity-accounted investments in FANCL was one of the most significant matters in our audit of the consolidated financial statements for the current fiscal year, and accordingly, a key audit matter.

The primary procedures we performed to assess the reasonableness of the valuation of goodwill related to the equity-accounted investments in FANCL included the following:
(1) Internal control testing We tested the design and operating effectiveness of certain of the Company's internal controls relevant to the calculation of the value in use used in the impairment testing of equity-accounted investments, with a particular focus on the controls to validate the reasonableness of the estimated future cash flows.
(2) Assessment of the reasonableness of the estimated value in use In order to assess the appropriateness of key assumptions underlying the business plan of FANCL used as the basis for calculating the value in use, we:
• inquired of management of FANCL about the rationales for key assumptions and inquired of management of the Company about the details of the assessment of the appropriateness of the assumptions;
• assessed the consistency of assumptions regarding the recovery of inbound demand from China and other countries with the most recent available external information on market forecasts for the number of passengers, and conducted trend analysis based on the past years' actual results;
• assessed the consistency of assumptions regarding the increase in sales of the domestic online shopping channel with online shopping market forecasts published by external organizations, and conducted trend analysis based on the past years' actual results; and
• assessed the consistency of assumptions regarding the increase in sales of overseas markets with overseas market forecasts published by external organizations.
In addition, we performed the following procedures by involving valuation specialists within our network firms who assisted with our evaluation of the discount rate and perpetual growth rate used to calculate the value in use:
• evaluated the appropriateness of the models used for determining the discount rate and perpetual growth rate based on the requirements of the accounting standards; and
• compared input data used for determining the discount rate and perpetual growth rate with market data published by external organizations obtained by the valuation specialists.

Other Information

The other information comprises the information included in the Annual Securities Report , but does not include the consolidated financial statements, the financial statements, and our auditor's reports thereon. Management is responsible for the preparation and presentation of the other information. Audit & Supervisory Board Members and the Audit & Supervisory Board are responsible for overseeing the directors' performance of their duties with regard to the design, implementation and maintenance of the reporting process for the other information.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Responsibilities of Management and Audit & Supervisory Board Members and the Audit & Supervisory Board for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS Accounting Standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern in accordance with IFRS Accounting Standards and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Audit & Supervisory Board Members and the Audit & Supervisory Board are responsible for overseeing the directors' performance of their duties with regard to the design, implementation and maintenance of the Group's financial reporting process.

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with auditing standards generally accepted in Japan will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of our audit in accordance with auditing standards generally accepted in Japan, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

•	Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The selection and application of audit procedures depends on the auditor's judgment.
•	Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, while the objective of the audit is not to express an opinion on the effectiveness of the Group's internal control.
•	Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
•	Conclude on the appropriateness of management's use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.
•	Evaluate whether the presentation and disclosures in the consolidated financial statements are in accordance with IFRS Accounting Standards, the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
•	Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with Audit & Supervisory Board Members and the Audit & Supervisory Board regarding, among other matters, the planned scope and timing of the audit, significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide Audit & Supervisory Board Members and the Audit & Supervisory Board with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated with Audit & Supervisory Board Members and the Audit & Supervisory Board, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on the Audit of the Internal Control Report

Opinion

We also have audited the accompanying internal control report of Kirin Holdings Company, Limited as at December 31, 2023, in accordance with Article 193-2(2) of the Financial Instruments and Exchange Act of Japan.

In our opinion, the accompanying internal control report, which states that the internal control over financial reporting was effective as at December 31, 2023, presents fairly, in all material respects, the results of the assessments of internal control over financial reporting in accordance with assessment standards for internal control over financial reporting generally accepted in Japan.

Basis for Opinion

We conducted our audit of the Internal Control Report in accordance with auditing standards for internal control over financial reporting generally accepted in Japan. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Internal Control Report section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the internal control report in Japan, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of Management and Audit & Supervisory Board Members and the Audit & Supervisory Board for the Internal Control Report

Management is responsible for the design and operation of internal control over financial reporting and the preparation and fair presentation of the internal control report in accordance with assessment standards for internal control over financial reporting generally accepted in Japan.

Audit & Supervisory Board Members and the Audit & Supervisory Board are responsible for overseeing and examining the design and operation of internal control over financial reporting.

Internal control over financial reporting may not completely prevent or detect financial statement misstatements.

Auditor's Responsibilities for the Audit of the Internal Control Report

Our objectives are to obtain reasonable assurance about whether the internal control report is free from material misstatement based on our audit of the internal control report and to issue an auditor's report that includes our opinion.

As part of our audit in accordance with auditing standards for internal control over financial reporting generally accepted in Japan, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

•	Perform procedures to obtain audit evidence about the results of the assessments of internal control over financial reporting in the internal control report. The procedures for the audit of the internal control report are selected and performed, depending on the auditor's judgment, based on significance of effect on the reliability of financial reporting.
•	Evaluate the overall presentation of the internal control report, including the appropriateness of the scope, procedures and results of the assessments that management presents.
•	Obtain sufficient appropriate audit evidence about the results of the assessments of internal control over financial reporting in the internal control report. We are responsible for the direction, supervision and performance of the audit of the internal control report. We remain solely responsible for our audit opinion.

We communicate with Audit & Supervisory Board Members and the Audit & Supervisory Board regarding, among other matters, the planned scope and timing of our audit of the internal control report, the results thereof, material weaknesses in internal control identified during our audit of internal control report, and those that were remediated.

Fee-related Information

Fees paid or payable to our firm and to other firms within the same network as our firm for audit and non-audit services provided to the Company and its subsidiaries are described in CORPORATE GOVERNANCE, (3) [AUDITS] included in "INFORMATION ABOUT REPORTING COMPANY ."

Interest required to be disclosed by the Certified Public Accountants Act of Japan

Our firm and its designated engagement partners do not have any interest in the Company and its subsidiaries which is required to be disclosed pursuant to the provisions of the Certified Public Accountants Act of Japan.

Notes to the Reader of Audit Report:

The Independent Auditor's Report herein is the English translation of the Independent Auditor's Report as required by the Financial Instruments and Exchange Act of Japan.

(Cover)

(Document filed)	Internal Control Report (Naibutosei Hokokusho)
(Clause of stipulation)	Article 24-4-4, Paragraph 1 of the Financial Instruments and Exchange Act
(Filed to)	Director-General, Kanto Local Finance Bureau
(Filing date)	March 28, 2024
(Company name)	Kirin Holdings Kabushiki Kaisha
(Company name in English)	Kirin Holdings Company, Limited
(Title and name of representative)	Takeshi Minakata, President & Chief Operating Officer
(Title and name of Chief Financial Officer)	Shinjiro Akieda, Director of the Board & Senior Executive Officer
(Address of registered head office])	10-2, Nakano 4-chome, Nakano-ku, Tokyo, Japan
(Place for public inspection)	Tokyo Stock Exchange, Inc. (2-1, Nihombashi Kabutocho, Chuo-ku, Tokyo)

1. BASIC FRAMEWORK OF INTERNAL CONTROL OVER FINANCIAL REPORTING

Takeshi Minakata, President & Chief Operating Officer, and Shinjiro Akieda, Director of the Board & Senior Executive Officer, are responsible for designing and operating effective internal control over financial reporting of Kirin Holdings Company, Limited (the "Company") and have designed and operated internal control over financial reporting in accordance with the basic framework for internal control set forth in the report "On the Setting of the Standards and Practice Standards for Management Assessment and Audit concerning Internal Control Over Financial Reporting (Council Opinions)" released by the Business Accounting Council.

The internal control system is designed to achieve its objectives to the extent reasonable through the effective function and combination of its basic elements. Therefore, there is a possibility that misstatements may not be completely prevented or detected by internal control over financial reporting.

2. ASSESSMENT SCOPE, TIMING AND PROCEDURES

The assessment of internal control over financial reporting was performed as of December 31, 2023 which is the end of the fiscal year under review. The assessment was performed in accordance with assessment standards for internal control over financial reporting generally accepted in Japan.

In conducting this assessment, we evaluated internal controls which may have a material effect on our overall financial reporting on a consolidated basis ("entity-level controls") and based on the results of this assessment, we selected business processes to be tested. We analyzed these selected business processes, identified key controls that may have a material impact on the reliability of the Company's financial reporting, and assessed the design and operation of these key controls. These procedures have allowed us to evaluate the effectiveness of the internal controls of the Company.

We determined the required scope of assessment of internal control over financial reporting for the Company, as well as its consolidated subsidiaries and equity-accounted investees, from the perspective of the materiality that may affect the reliability of their financial reporting. The materiality that may affect the reliability of the financial reporting is determined by taking into account the materiality of quantitative and qualitative impacts on financial reporting. In light of the results of assessment of entity-level controls conducted for the Company, its consolidated subsidiaries and equity-accounted investees, we reasonably determined the scope of assessment of internal controls over business processes. Consolidated subsidiaries and equity-accounted investees determined to have an insignificant quantitative and qualitative influence on the reliability of financial reporting are not included in the scope of assessment of entity-level controls.

For the scope of assessment for internal control over business processes, five business locations of the Group were selected as significant business locations by aggregating revenue planned for the fiscal year under review for each business location until their aggregated amount accounted for two thirds of consolidated revenue planned for the fiscal year (after the elimination of transactions between consolidated companies). At selected significant business locations targeted for assessment, our scope of assessment included business processes leading to revenue, accounts receivable, trade and inventories as significant accounts that may have a material impact on the business objectives of the Company. Further, in addition to selected significant business locations, we also included in the scope of assessment for other business locations, as business processes having greater materiality, business processes relating to (i) greater likelihood of material misstatements and/or (ii) significant accounts involving estimates and the management's judgment and/or (iii) a business or operation dealing with high-risk transactions, taking into account their impact on the financial reporting.

3. RESULTS OF ASSESSMENT

The above assessments determined that the Company's internal control over financial reporting was effective as of the last day of the fiscal year under review.

4. SUPPLEMENTARY INFORMATION

Not applicable.

5. OTHER

Not applicable.

2e:T15362,

KYOWA HAKKO Europe Gesellschaft mit beschränkter Haftung

Düsseldorf

Jahresabschluss zum Geschäftsjahr vom 01.01.2023 bis zum 31.12.2023

Bestätigungsvermerk des unabhängigen Abschlussprüfers

An die KYOWA HAKKO Europe Gesellschaft mit beschränkter Haftung, Düsseldorf

Prüfungsurteile

Wir haben den Jahresabschluss der KYOWA HAKKO Europe Gesellschaft mit beschränkter Haftung, Düsseldorf, - bestehend aus der Bilanz zum 31. Dezember 2023 und der Gewinn- und Verlustrechnung für das Geschäftsjahr vom 1. Januar bis zum 31. Dezember 2023 sowie dem Anhang, einschließlich der Darstellung der Bilanzierungs- und Bewertungsmethoden - geprüft. Darüber hinaus haben wir den Lagebericht der KYOWA HAKKO Europe Gesellschaft mit beschränkter Haftung für das Geschäftsjahr vom 1. Januar bis zum 31. Dezember 2023 geprüft.

Nach unserer Beurteilung aufgrund der bei der Prüfung gewonnenen Erkenntnisse

•

entspricht der beigefügte Jahresabschluss in allen wesentlichen Belangen den deutschen, für Kapitalgesellschaften geltenden handelsrechtlichen Vorschriften‌‌ und vermittelt unter Beachtung der deutschen Grundsätze ordnungsmäßiger Buchführung ein den tatsächlichen Verhältnissen entsprechendes Bild der Vermögens- und Finanzlage der Gesellschaft zum 31. Dezember 2023 sowie ihrer Ertragslage für das Geschäftsjahr vom 1. Januar bis zum 31. Dezember 2023 und

•

vermittelt der beigefügte Lagebericht insgesamt ein zutreffendes Bild von der Lage der Gesellschaft. In allen wesentlichen Belangen steht dieser Lagebericht in Einklang mit dem Jahresabschluss, entspricht den deutschen gesetzlichen Vorschriften und stellt die Chancen und Risiken der zukünftigen Entwicklung zutreffend dar.

Gemäß § 322 Abs. 3 Satz 1 HGB erklären wir, dass unsere Prüfung zu keinen Einwendungen gegen die Ordnungsmäßigkeit des Jahresabschlusses und des Lageberichts geführt hat.

Grundlage für die Prüfungsurteile

Wir haben unsere Prüfung des Jahresabschlusses und des Lageberichts in Übereinstimmung mit § 317 HGB unter Beachtung der vom Institut der Wirtschaftsprüfer (IDW) festgestellten deutschen Grundsätze ordnungsmäßiger Abschlussprüfung durchgeführt. Unsere Verantwortung nach diesen Vorschriften und Grundsätzen ist im Abschnitt "Verantwortung des Abschlussprüfers für die Prüfung des Jahresabschlusses und des Lageberichts" unseres Bestätigungsvermerks weitergehend beschrieben. Wir sind von dem Unternehmen unabhängig in Übereinstimmung mit den deutschen handelsrechtlichen und berufsrechtlichen Vorschriften und haben unsere sonstigen deutschen Berufspflichten in Übereinstimmung mit diesen Anforderungen erfüllt. Wir sind der Auffassung, dass die von uns erlangten Prüfungsnachweise ausreichend und geeignet sind, um als Grundlage für unsere Prüfungsurteile zum Jahresabschluss und zum Lagebericht zu dienen.

Verantwortung der gesetzlichen Vertreter für den Jahresabschluss und den Lagebericht

Die gesetzlichen Vertreter sind verantwortlich für die Aufstellung des Jahresabschlusses, der den deutschen, für Kapitalgesellschaften geltenden handelsrechtlichen Vorschriften in allen wesentlichen Belangen entspricht, und dafür, dass der Jahresabschluss unter Beachtung der deutschen Grundsätze ordnungsmäßiger Buchführung ein den tatsächlichen Verhältnissen entsprechendes Bild der Vermögens-, Finanz- und Ertragslage der Gesellschaft vermittelt. Ferner sind die gesetzlichen Vertreter verantwortlich für die internen Kontrollen, die sie in Übereinstimmung mit den deutschen Grundsätzen ordnungsmäßiger Buchführung als notwendig bestimmt haben, um die Aufstellung eines Jahresabschlusses zu ermöglichen, der frei von wesentlichen falschen Darstellungen aufgrund von dolosen Handlungen (d. h. Manipulationen der Rechnungslegung und Vermögensschädigungen) oder Irrtümern ist.

Bei der Aufstellung des Jahresabschlusses sind die gesetzlichen Vertreter dafür verantwortlich, die Fähigkeit der Gesellschaft zur Fortführung der Unternehmenstätigkeit zu beurteilen. Des Weiteren haben sie die Verantwortung, Sachverhalte in Zusammenhang mit der Fortführung der Unternehmenstätigkeit, sofern einschlägig, anzugeben. Darüber hinaus sind sie dafür verantwortlich, auf der Grundlage des Rechnungslegungsgrundsatzes der Fortführung der Unternehmenstätigkeit zu bilanzieren, sofern dem nicht tatsächliche oder rechtliche Gegebenheiten entgegenstehen.

Außerdem sind die gesetzlichen Vertreter verantwortlich für die Aufstellung des Lageberichts, der insgesamt ein zutreffendes Bild von der Lage der Gesellschaft vermittelt sowie in allen wesentlichen Belangen mit dem Jahresabschluss in Einklang steht, den deutschen gesetzlichen Vorschriften entspricht und die Chancen und Risiken der zukünftigen Entwicklung zutreffend darstellt. Ferner sind die gesetzlichen Vertreter verantwortlich für die Vorkehrungen und Maßnahmen (Systeme), die sie als notwendig erachtet haben, um die Aufstellung eines Lageberichts in Übereinstimmung mit den anzuwendenden deutschen gesetzlichen Vorschriften zu ermöglichen und um ausreichende geeignete Nachweise für die Aussagen im Lagebericht erbringen zu können.

Verantwortung des Abschlussprüfers für die Prüfung des Jahresabschlusses und des Lageberichts

Unsere Zielsetzung ist, hinreichende Sicherheit darüber zu erlangen, ob der Jahresabschluss als Ganzes frei von wesentlichen falschen Darstellungen aufgrund von dolosen Handlungen oder Irrtümern ist, und ob der Lagebericht insgesamt ein zutreffendes Bild von der Lage der Gesellschaft vermittelt sowie in allen wesentlichen Belangen mit dem Jahresabschluss sowie mit den bei der Prüfung gewonnenen Erkenntnissen in Einklang steht, den deutschen gesetzlichen Vorschriften entspricht und die Chancen und Risiken der zukünftigen Entwicklung zutreffend darstellt, sowie einen Bestätigungsvermerk zu erteilen, der unsere Prüfungsurteile zum Jahresabschluss und zum Lagebericht beinhaltet.

Hinreichende Sicherheit ist ein hohes Maß an Sicherheit, aber keine Garantie dafür, dass eine in Übereinstimmung mit § 317 HGB unter Beachtung der vom Institut der Wirtschaftsprüfer (IDW) festgestellten deutschen Grundsätze ordnungsmäßiger Abschlussprüfung‌ durchgeführte Prüfung eine wesentliche falsche Darstellung stets aufdeckt. Falsche Darstellungen können aus dolosen Handlungen oder Irrtümern resultieren und werden als wesentlich angesehen, wenn vernünftigerweise erwartet werden könnte, dass sie einzeln oder insgesamt die auf der Grundlage dieses Jahresabschlusses und Lageberichts getroffenen wirtschaftlichen Entscheidungen von Adressaten beeinflussen.

Während der Prüfung üben wir pflichtgemäßes Ermessen aus und bewahren eine kritische Grundhaltung. Darüber hinaus

•	identifizieren und beurteilen wir die Risiken wesentlicher falscher Darstellungen im Jahresabschluss und im Lagebericht aufgrund von dolosen Handlungen oder Irrtümern, planen und führen Prüfungshandlungen als Reaktion auf diese Risiken durch sowie erlangen Prüfungsnachweise, die ausreichend und geeignet sind, um als Grundlage für unsere Prüfungsurteile zu dienen. Das Risiko, dass aus dolosen Handlungen resultierende wesentliche falsche Darstellungen nicht aufgedeckt werden, ist höher als das Risiko, dass aus Irrtümern resultierende wesentliche falsche Darstellungen nicht aufgedeckt werden, da dolose Handlungen kollusives Zusammenwirken, Fälschungen, beabsichtigte Unvollständigkeiten, irreführende Darstellungen bzw. das Außerkraftsetzen interner Kontrollen beinhalten können.
•	gewinnen wir ein Verständnis von dem für die Prüfung des Jahresabschlusses relevanten internen Kontrollsystem und den für die Prüfung des Lageberichts relevanten Vorkehrungen und Maßnahmen, um Prüfungshandlungen zu planen, die unter den gegebenen Umständen angemessen sind, jedoch nicht mit dem Ziel, ein Prüfungsurteil zur Wirksamkeit dieser Systeme der Gesellschaft abzugeben.
•	beurteilen wir die Angemessenheit der von den gesetzlichen Vertretern angewandten Rechnungslegungsmethoden sowie die Vertretbarkeit der von den gesetzlichen Vertretern dargestellten geschätzten Werte und damit zusammenhängenden Angaben.
•	ziehen wir Schlussfolgerungen über die Angemessenheit des von den gesetzlichen Vertretern angewandten Rechnungslegungsgrundsatzes der Fortführung der Unternehmenstätigkeit sowie, auf der Grundlage der erlangten Prüfungsnachweise, ob eine wesentliche Unsicherheit im Zusammenhang mit Ereignissen oder Gegebenheiten besteht, die bedeutsame Zweifel an der Fähigkeit der Gesellschaft zur Fortführung der Unternehmenstätigkeit aufwerfen können. Falls wir zu dem Schluss kommen, dass eine wesentliche Unsicherheit besteht, sind wir verpflichtet, im Bestätigungsvermerk auf die dazugehörigen Angaben im Jahresabschluss und im Lagebericht aufmerksam zu machen oder, falls diese Angaben unangemessen sind, unser jeweiliges Prüfungsurteil zu modifizieren. Wir ziehen unsere Schlussfolgerungen auf der Grundlage der bis zum Datum unseres Bestätigungsvermerks erlangten Prüfungsnachweise. Zukünftige Ereignisse oder Gegebenheiten können jedoch dazu führen, dass die Gesellschaft ihre Unternehmenstätigkeit nicht mehr fortführen kann.
•	beurteilen wir Darstellung, Aufbau und Inhalt des Jahresabschlusses insgesamt einschließlich der Angaben sowie ob der Jahresabschluss die zugrunde liegenden Geschäftsvorfälle und Ereignisse so darstellt, dass der Jahresabschluss unter Beachtung der deutschen Grundsätze ordnungsmäßiger Buchführung ein den tatsächlichen Verhältnissen entsprechendes Bild der Vermögens-, Finanz- und Ertragslage der Gesellschaft vermittelt.
•	beurteilen wir den Einklang des Lageberichts mit dem Jahresabschluss, seine Gesetzesentsprechung und das von ihm vermittelte Bild von der Lage des Unternehmens.
•	führen wir Prüfungshandlungen zu den von den gesetzlichen Vertretern dargestellten zukunftsorientierten Angaben im Lagebericht durch. Auf Basis ausreichender geeigneter Prüfungsnachweise vollziehen wir dabei insbesondere die den zukunftsorientierten Angaben von den gesetzlichen Vertretern zugrunde gelegten bedeutsamen Annahmen nach und beurteilen die sachgerechte Ableitung der zukunftsorientierten Angaben aus diesen Annahmen. Ein eigenständiges Prüfungsurteil zu den zukunftsorientierten Angaben sowie zu den zugrunde liegenden Annahmen geben wir nicht ab. Es besteht ein erhebliches unvermeidbares Risiko, dass künftige Ereignisse wesentlich von den zukunftsorientierten Angaben abweichen.

Wir erörtern mit den für die Überwachung Verantwortlichen unter anderem den geplanten Umfang und die Zeitplanung der Prüfung sowie bedeutsame Prüfungsfeststellungen, einschließlich etwaiger bedeutsamer Mängel im internen Kontrollsystem, die wir während unserer Prüfung feststellen.

Düsseldorf, den 25. Juli 2024

KPMG AG
Wirtschaftsprüfungsgesellschaft

Litmathe, Wirtschaftsprüfer

Deerberg, Wirtschaftsprüfer

Bilanz zum 31. Dezember 2023

Aktiva

	31.12.2023		31.12.2022
	EUR	EUR	EUR	EUR
A. Anlagevermögen
I. Immaterielle Vermögensgegenstände
1. Entgeltlich erworbene Software	2.252,00		25.438,00
2. Geleistete Anzahlungen	0,00	2.252,00	460.134,52	485.572,52
II. Sachanlagen
Betriebs- und Geschäftsausstattung		29.600,00		35.136,00
III. Finanzanlagen
Anteile an verbundenen Unternehmen		4.002.790,01		4.002.790,01
		4.034.642,01		4.523.498,53
B. Umlaufvermögen
I. Vorräte
Waren		20.978.075,04		16.040.619,28
II. Forderungen und sonstige Vermögensgegenstände
1. Forderungen aus Lieferungen und Leistungen	4.635.931,57		6.020.422,04
2. Forderungen gegen verbundene Unternehmen	5.123,11		3.019.969,21
3. Sonstige Vermögensgegenstände	1.394.861,22	6.035.915,90	1.438.113,23	10.478.504,48
III. Kassenbestand und Guthaben bei Kreditinstituten		5.232.625,20		3.200.383,25
		32.246.616,14		29.719.507,01
C. Rechnungsabgrenzungsposten		80.647,63		74.264,51
		36.361.905,78		34.317.270,05

Passiva

	31.12.2023	31.12.2022
	EUR	EUR
A. Eigenkapital
I. Gezeichnetes Kapital	1.030.000,00	1.030.000,00
II. Kapitalrücklage	8.433.581,22	8.433.581,22
III. Gewinnvortrag	11.660.229,81	11.652.215,59
IV. Jahresüberschuss	1.129.745,05	1.988.014,22
	22.253.556,08	23.103.811,03
B. Rückstellungen
Sonstige Rückstellungen	462.882,30	447.852,36
C. Verbindlichkeiten
1. Erhaltene Anzahlungen auf Bestellungen	692.025,00	0,00
2. Verbindlichkeiten aus Lieferungen und Leistungen	145.099,49	190.113,54
3. Verbindlichkeiten gegenüber verbundenen Unternehmen	12.808.342,91	10.575.493,12
	13.645.467,40	10.765.606,66
	36.361.905,78	34.317.270,05

Gewinn- und Verlustrechnung für die Zeit vom 1. Januar bis 31. Dezember 2023

	2023	2022
	EUR	EUR
1. Umsatzerlöse	49.866.640,91	45.157.161,58
2. Sonstige betriebliche Erträge	470.953,98	889.446,67
- davon Erträge aus der Währungsumrechnung EUR 368.437,18 (i. Vj. EUR 877.777,98) -
3. Materialaufwand
Aufwendungen für bezogene Waren	-44.933.301,39	-39.587.529,51
4. Personalaufwand
a) Löhne und Gehälter	-2.302.767,60	-2.068.196,91
b) Soziale Abgaben	-338.938,54	-314.503,83
5. Abschreibungen auf immaterielle Vermögensgegenstände des Anlagevermögens und Sachanlagen	-511.700,38	-63.045,00
6. Sonstige betriebliche Aufwendungen	-2.606.993,24	-2.396.024,43
- davon Aufwendungen aus der Währungsumrechnung EUR 525.047,60 (i. Vj. EUR 607.773,85) -
7. Erträge aus Beteiligungen	1.580.000,00	850.000,00
- davon Erträge aus verbundenen Unternehmen EUR 1.580.000,00 (i. Vj. EUR 850.000,00) -
8. Sonstige Zinsen und ähnliche Erträge	154.086,40	59.388,41
9. Zinsen und ähnliche Aufwendungen	-249.342,28	-1.413,73
10. Steuern vom Einkommen und vom Ertrag	1.107,19	-537.269,03
11. Ergebnis nach Steuern/Jahresüberschuss	1.129.745,05	1.988.014,22

Anhang für das Geschäftsjahr 2023

Allgemeine Hinweise

Sitz der KYOWA HAKKO Europe Gesellschaft mit beschränkter Haftung (im Folgenden auch: KHEU) ist Düsseldorf. Die Gesellschaft ist unter der Nummer HRB 3689 im Register des Amtsgerichts Düsseldorf eingetragen.

Der vorliegende Jahresabschluss wurde gemäß §§ 242 ff. und 264 ff. HGB sowie nach den einschlägigen Vorschriften des GmbHG aufgestellt. Es gelten die Vorschriften für große Kapitalgesellschaften.

Die Gewinn- und Verlustrechnung ist nach dem Gesamtkostenverfahren gegliedert.

Um die Klarheit der Darstellung zu verbessern, wurden die Davon-Vermerke zu einzelnen Bilanzposten in diesem Anhang gemacht.

Bilanzierungs- und Bewertungsgrundsätze

Für die Aufstellung des Jahresabschlusses waren die nachfolgenden Bilanzierungs- und Bewertungsmethoden maßgebend.

Entgeltlich erworbene immaterielle Vermögensgegenstände des Anlagevermögens sind zu Anschaffungskosten bilanziert und werden, sofern sie der Abnutzung unterliegen, entsprechend ihrer voraussichtlichen wirtschaftlichen Nutzungsdauer (i.d.R. drei Jahre) um planmäßige Abschreibungen (lineare Methode) vermindert.

Die Vermögensgegenstände des Sachanlagevermögens sind zu Anschaffungskosten angesetzt und werden nach Maßgabe der voraussichtlichen wirtschaftlichen Nutzungsdauer (i.d.R. zwischen 3 und 10 Jahren) linear abgeschrieben. Geringwertige Anlagegüter bis zu einem Netto-Einzelwert von EUR 250,00 sind im Jahr des Zugangs voll abgeschrieben bzw. als Aufwand erfasst worden; ihr sofortiger Abgang wurde unterstellt. Für Anlagegüter mit einem Netto-Einzelwert von mehr als EUR 250,00 bis EUR 1.000,00, wurde der jährlich steuerlich zu bildende Sammelposten aus Vereinfachungsgründen in die Handelsbilanz übernommen und pauschalierend jeweils 20 % p. a. im Zugangsjahr und den vier darauffolgenden Jahren abgeschrieben. Die Abschreibungen auf Zugänge des Sachanlagevermögens werden im Übrigen zeitanteilig vorgenommen.

Die Finanzanlagen sind mit ihren Anschaffungskosten bzw. mit ihren niedrigeren beizulegenden Werten angesetzt.

Handelswaren sind zu Anschaffungskosten oder niedrigeren Marktpreisen bilanziert. Alle erkennbaren Risiken im Vorratsvermögen, die sich aus überdurchschnittlicher Lagerdauer, geminderter Verwertbarkeit und niedrigeren Wiederbeschaffungskosten ergeben, sind durch angemessene Abwertungen berücksichtigt.

Die Forderungen und die sonstigen Vermögensgegenstände werden zum Nennwert angesetzt. Allen risikobehafteten Posten ist durch die Bildung angemessener Einzelwertberichtigungen Rechnung getragen.

Der Kassenbestand und die Guthaben bei Kreditinstituten werden zum Nennwert angesetzt.

Die sonstigen Rückstellungen berücksichtigen alle erkennbaren und quantifizierbaren Risiken, ungewissen Verbindlichkeiten und drohenden Verluste aus schwebenden Geschäften. Sie sind in Höhe des nach vernünftiger kaufmännischer Beurteilung notwendigen Erfüllungsbetrags (d. h. einschließlich zukünftiger Kosten- und Preissteigerungen) angesetzt.

Für Verluste aus Liefer- und Abnahmeverpflichtungen sind in angemessener Höhe Rückstellungen gebildet.

Die Verbindlichkeiten sind mit ihren Erfüllungsbeträgen angesetzt.

Grundsätze für die Währungsumrechnung

Vermögensgegenstände und Verbindlichkeiten in fremder Währung werden zum Devisenkassamittelkurs am Abschlussstichtag bewertet. Bei Vermögensgegenständen und Verbindlichkeiten mit einer Restlaufzeit von einem Jahr oder weniger werden gemäß § 256a Satz 2 HGB das Anschaffungskostenprinzip und das Realisationsprinzip nicht angewendet.

Erläuterungen zur Bilanz

Anlagevermögen

Die Entwicklung des Anlagevermögens im Geschäftsjahr 2023 ist unter Angabe der Abschreibungen des Geschäftsjahres im Anlagenspiegel dargestellt.

Angaben zum Anteilsbesitz

	Währung	Beteiligung	Eigenkapital	Ergebnis
		%	TEUR	TEUR
KYOWA HAKKO BIO ITALIA S.r.I., Mailand, Italien	EUR	100	21.575	1.410

Die Angaben basieren auf dem letzten verfügbaren - und ungeprüften - Jahresabschluss für das Geschäftsjahr 2023.

Die im August 2018 erworbene Aktie der Thai Kyowa Biotechnologies Co., Ltd. in Rayong/ Thailand (TK), einem verbundenen Unternehmen der KYOWA HAKKO BIO CO., LTD., Tokio/Japan (KHB), wird nach wie vor zum Kaufpreis von EUR 15 ausgewiesen. TK hat insgesamt 2,0 Mio Aktien ausgegeben.

Forderungen und sonstige Vermögensgegenstände

Die Forderungen gegen verbundene Unternehmen entfallen mit TEUR 0,4 (i. Vj. TEUR 87,9) auf Forderungen aus Lieferungen und Leistungen gegenüber der KYOWA HAKKO BIO ITALIA S.r.l., Mailand/Italien. TEUR 4,7 (i. Vj. TEUR 96,5) entfallen auf sonstige Forderungen, hiervon TEUR 4,7 (i. Vj. TEUR 38,7) gegen die Alleingesellschafterin und TEUR 0 (i. Vj. TEUR 57,8) gegen die KYOWA HAKKO USA, Inc. New York, USA.

Seit April 2021 wurde erneut das Cash Pooling System eingeführt. Zum Bilanzstichtag beträgt die Forderung aus dem Cash Pooling Darlehen gegenüber der KIRIN HOLDINGS Company, Ltd. TEUR 0 (i. Vj. TEUR 2.835,6).

Sämtliche Forderungen haben wie im Vorjahr eine Restlaufzeit von bis zu einem Jahr.

Von den sonstigen Vermögensgegenständen haben TEUR 118,9 (i. Vj. TEUR 112,2) eine Restlaufzeit von mehr als einem Jahr. Es handelt sich hierbei um die Mietsicherheiten.

Gewinnvortrag

	TEUR
Stand 1. Januar 2023	11.652
Jahresüberschuss 2022	1.988
Dividendenausschüttung 2023	1.980
Stand 31. Dezember 2023	11.660

Gewinnverwendung

Die Geschäftsführung schlägt vor, den Jahresüberschuss 2023 in Höhe von TEUR 1.129,7 auf neue Rechnung vorzutragen.

Sonstige Rückstellungen

Die sonstigen Rückstellungen wurden im Wesentlichen für Urlaubsansprüche und Sondervergütungen (TEUR 108, i. Vj. TEUR 154), Berufsgenossenschaftsbeiträge (TEUR 6, i. Vj. TEUR 6), ausstehende Lieferantenrechnungen (TEUR 86, i. Vj. TEUR 77) und Rechts- und Beratungskosten (TEUR 72, i. Vj. TEUR 66), gebildet.

Verbindlichkeiten

Sämtliche Verbindlichkeiten sind, wie im Vorjahr, innerhalb eines Jahres fällig.

Die Verbindlichkeiten gegenüber verbundenen Unternehmen resultieren in Höhe von TEUR 6.246,1 (i. Vj. TEUR 10.524,1) aus Lieferungen und Leistungen, wovon TEUR 2.940,2 (i. Vj. TEUR 6.057,0) auf die Alleingesellschafterin entfallen.

Ferner sind sonstige Verbindlichkeiten aus dem Cash Pooling Darlehen gegenüber der KIRIN HOLDINGS Company, Ltd. In Höhe von TEUR 6.562,2 (i. Vj. TEUR 0) enthalten.

Sonstige finanzielle Verpflichtungen

	Restlaufzeiten
	bis 1 Jahr	1 bis 5 Jahre	über 5 Jahre
	TEUR	TEUR	TEUR
Verpflichtungen aus Miet- und Leasingverträgen	312	778	0

Die Operating Leasingverhältnisse betreffen im Wesentlichen Leasingverhältnisse zur Miete von Immobilien und Fahrzeugen. Risiken aus diesen Verpflichtungen sind derzeit nicht erkennbar. Als Vorteil wird die Entlastung der Bilanzstruktur gesehen.

Erläuterungen zur Gewinn- und Verlustrechnung

Umsatzerlöse

Von den Umsatzerlösen in Höhe von insgesamt TEUR 49.866,6 (i. Vj. TEUR 45.157,2) entfallen TEUR 18.735,1 (i. Vj. TEUR 20.252,2) auf das Inland und TEUR 31.131,5 (i. Vj. TEUR 24.905,0) auf das Ausland.

Die Umsatzerlöse resultieren unverändert im Wesentlichen aus Verkäufen von aktiven pharmazeutischen Wirkstoffen, vornehmlich Aminosäuren.

Sonstige betriebliche Erträge

Die sonstigen betrieblichen Erträge enthalten periodenfremde Erträge in Höhe von TEUR 0 (i. Vj. TEUR 1,3).

Abschreibungen auf immaterielle Vermögensgegenstände des Anlagevermögens und Sachanlagen

Abschreibungen auf immaterielle Vermögensgegenstände des Anlagevermögens und Sachanlagen enthalten außerplanmäßige Abschreibungen auf immaterielle Vermögensgegenstände in Höhe von TEUR 464.

Sonstige betriebliche Aufwendungen

In den sonstigen betrieblichen Aufwendungen sind keine periodenfremden Aufwendungen enthalten.

Sonstige Angaben

Mitarbeiter

Im Jahresdurchschnitt waren 23 Angestellte einschließlich des Geschäftsführers bei der Gesellschaft beschäftigt (i. Vj. 21), zehn (i. Vj. zehn) weibliche und dreizehn (i. Vj. elf) männliche Angestellte.

Geschäfte mit nahestehenden Unternehmen und Personen

Die nachfolgende Tabelle zeigt sämtliche wesentliche Geschäfte mit nahestehenden Unternehmen im Geschäftsjahr:

Art des Geschäfts	Bezug von Waren	Bezug von Dienstleistunge	Erbringung von Dienstleistunge	Inanspruchnahme von Darlehen
Art der Beziehung	in Mio. EUR	in Mio. EUR	in Mio. EUR	in Mio. EUR
Gesellschafter	18,4	0	0	6,6
Tochterunternehmen	0	0	0	0
übrige verbundene Unternehmen	31,1	0	0	0
Personen in Schlüsselpositionen	0	0	0	0

Art des Geschäfts	Bezug von Gehalt	Weiterbelastung von Kosten
Art der Beziehung	in Mio. EUR	in Mio. EUR
Gesellschafter	0	0,1
Tochterunternehmen	0	0,1
übrige verbundene Unternehmen	0	0,2
Personen in Schlüsselpositionen	0	0

Geschäftsführung

Zu Geschäftsführern waren im Geschäftsjahr bestellt:

•	Herr Kazuo Hibi, kaufmännischer Geschäftsführer, Düsseldorf, Deutschland, einzelvertretungsberechtigt
•	Herr Ryusuke Okada, Geschäftsführender Direktor der Abteilung Vertrieb und Marketing, Kanagawa, Japan
•	Herr Tsuyoshi Shimose, Stellvertretender Generaldirektor der Abteilung Strategie, Tokio, Japan

Der Geschäftsführer Herr Kazuo Hibi (seit 1. Oktober 2022) übt die Tätigkeit hauptberuflich aus. Die anderen Geschäftsführer sind bei der KYOWA HAKKO BIO CO., LTD. in Tokio angestellt.

Auf die Angabe der Geschäftsführerbezüge wird gemäß § 286 Abs. 4 HGB verzichtet, da nur ein Geschäftsführer von der Gesellschaft Bezüge erhält.

Prüfungs- und Beratungsgebühren

Das für das Geschäftsjahr berechnete Gesamthonorar des Abschlussprüfers beträgt TEUR 53,0 und entfällt ausschließlich auf Abschlussprüfungsleistungen.

Konzernverhältnisse

Die Anteile an der Gesellschaft werden zum Bilanzstichtag zu 100 % durch die KYOWA HAKKO BIO CO., LTD., Tokio/Japan, gehalten.

Die KYOWA HAKKO Europe Gesellschaft mit beschränkter Haftung wird in den Konzernabschluss der KIRIN HOLDINGS Company, Ltd., Tokio/Japan, einbezogen, die in Japan einen Konzernabschluss für den größten und kleinsten Konsolidierungskreis aufstellt und veröffentlicht. Dieser Konzernabschluss ist am Sitz der Obergesellschaft erhältlich und wird im japanischen EDINET (Electric Disclosure for Investor's NETwork) unter der Nummer E00395 veröffentlicht.

Die KYOWA HAKKO Europe Gesellschaft mit beschränkter Haftung macht in Übereinstimmung mit § 292 HGB von der Möglichkeit Gebrauch, den Konzernabschluss der Konzernobergesellschaft (KIRIN HOLDINGS Company, Ltd., Tokio/Japan) nach internationalen Rechnungslegungsstandards (IFRS) offenzulegen, der nach deutschem Recht von der Konzernabschlusspflicht befreit. Der befreiende Konzernabschluss wird durch die Gesellschaft im elektronischen Unternehmensregister in englischer Sprache offengelegt.

Nachtragsbericht

Wesentliche Vorgänge von besonderer Bedeutung nach Schluss des Geschäftsjahres, die zu einer veränderten Beurteilung der Vermögens-, Finanz- und Ertragslage führen könnten, sind nicht eingetreten.

Düsseldorf, 25. Juli 2024

KYOWA HAKKO Europe Gesellschaft mit beschränkter Haftung

Kazuo Hibi, Geschäftsführer

Ryusuke Okada, Geschäftsführer

Tsuyoshi Shimose, Geschäftsführer

Entwicklung des Anlagevermögens im Geschäftsjahr 2023

	Anschaffungskosten
	1.1.2023	Zugänge	Abgänge	31.12.2023
	EUR	EUR	EUR	EUR
I. Immaterielle Vermögensgegenstände
1. Entgeltlich erworbene Software	308.932,64	3.119,00	0,00	312.051,64
2. Geleistete Anzahlungen	460.134,52	3.369,65	0,00	463.504,17
	769.067,16	6.488,65	0,00	775.555,81
II. Sachanlagen
Betriebs- und Geschäftsausstattung	500.524,34	16.355,21	0,00	516.879,55
III. Finanzanlagen
Anteile an verbundenen Unternehmen	4.002.790,01	0,00	0,00	4.002.790,01
	5.272.381,51	22.843,86	0,00	5.295.225,37

	Kumulierte Abschreibungen
	1.1.2023	Zugänge	Abgänge	31.12.2023
	EUR	EUR	EUR	EUR
I. Immaterielle Vermögensgegenstände
1. Entgeltlich erworbene Software	283.494,64	26.305,00	0,00	309.799,64
2. Geleistete Anzahlungen	0,00	463.504,17	0,00	463.504,17
	283.494,64	489.809,17	0,00	773.303,81
II. Sachanlagen
Betriebs- und Geschäftsausstattung	465.388,34	21.891,21	0,00	487.279,55
III. Finanzanlagen
Anteile an verbundenen Unternehmen	0,00	0,00	0,00	0,00
	748.882,98	511.700,38	0,00	1.260.583,36

	Buchwerte
	31.12.2023	31.12.2022
	EUR	EUR
I. Immaterielle Vermögensgegenstände
1. Entgeltlich erworbene Software	2.252,00	25.438,00
2. Geleistete Anzahlungen	0,00	460.134,52
	2.252,00	485.572,52
II. Sachanlagen
Betriebs- und Geschäftsausstattung	29.600,00	35.136,00
III. Finanzanlagen
Anteile an verbundenen Unternehmen	4.002.790,01	4.002.790,01
	4.034.642,01	4.523.498,53

Lagebericht für das Geschäftsjahr 2023

I. Makroökonomisches und sektorspezifisches Umfeld

Die europäische Wirtschaft im Allgemeinen stagniert im Jahr 2023 aufgrund der Inflation. (Quelle: Winterprognose 2023 der Europäischen Kommission)

Vor allem die pharmazeutische Industrie, die zu unseren Hauptabnehmern zählt, hatte Ende 2023 Schwierigkeiten, das Produktionsniveau aufrechtzuerhalten, da der Absatz zurückging. (Quelle: Verband der Chemischen Industrie e.V. Vierteljahresbericht 3.2023)

Auf der anderen Seite erwarten wir, dass der Markt für Nahrungsergänzungsmittel in Europa wachsen wird. Die Größe des Marktes für Nahrungsergänzungsmittel wird für 2023 auf USD 40,73 Milliarden geschätzt und soll von 2024 bis 2030 mit einer jährlichen Wachstumsrate von 7,0 % wachsen (Quelle: Grand View Research, Europe Dietary Supplements Market Size, Share Report, 2024- 2030 (grandviewresearch.com))

Als KYOWA HAKKO EUROPE Gesellschaft mit beschränkter Haftung haben wir uns auf den Ausbau unseres Umsatzes im Marktsegment der Nahrungsergänzungsmittel konzentriert, da die von unserer Unternehmensgruppe in letzter Zeit entwickelten neuen Produkte vorwiegend in diesem Marktsegment eingesetzt werden. Da der pharmazeutische Markt jedoch weiterhin den größten Teil unseres Umsatzes ausmacht, müssen wir beide Marktumfelder im Auge behalten. Die gestiegene Inflation hat zu einem Rückgang beim Kauf von nicht zwingend zum täglichen Bedarf zählenden Lebensmitteln geführt, so dass sich unser Geschäft mit Nahrungsergänzungsmitteln langsamer entwickelt als erwartet.

II. Geschäftsverlauf und Lage der Gesellschaft

Die KYOWA HAKKO EUROPE Gesellschaft mit beschränkter Haftung (nachstehend KHEU) ist eine hundertprozentige Tochtergesellschaft der KYOWA HAKKO BIO CO., LTD., Tokio/ Japan (KHB), einem verbundenen Unternehmen der KIRIN HOLDINGS Company, Ltd., Tokio/ Japan (KH).

KHEU besitzt 100 % der Anteile an der Tochtergesellschaft KYOWA HAKKO BIO ITALIA S.r.l. (KHIT) in Mailand/Italien.

KHEU deckt in Europa die Vertriebs- und Marketingaktivitäten in West-, Mittel-, Nord- und Osteuropa (außer der Ukraine) ab, während KHIT die Aktivitäten in Südeuropa, der Ukraine, dem Nahen Osten und den afrikanischen Ländern abdeckt.

Die Produkte von KHEU werden nahezu ausschließlich von KHB und ihren Tochtergesellschaften in Übersee bezogen. Daher ist die ausreichende Versorgung durch die angeschlossenen Unternehmen der wichtigste Faktor für die Sicherung des Geschäfts von KHEU.

KHEU verkauft und vertreibt Aminosäuren, Nukleinsäuren und verwandte Verbindungen, die hauptsächlich als APIs (Active Pharmaceutical Ingredients) zur Herstellung von Arzneimitteln wie auch als Rohstoffe/Zutaten für Zellkulturmedien, Ernährung, Kosmetika usw. verwendet werden. Im Allgemeinen ist die Nachfrage nach Aminosäuren auf den oben genannten Märkten stetig gestiegen, aber die besondere Situation einer rückläufigen Nachfrage führte in diesem Jahr zu einem schwierigen Verkaufsumfeld.

Die Lieferfähigkeitsprobleme, die durch die im September 2019 aufgedeckte Nichteinhaltung der c-GMP-Anforderungen (current Good Manufacturing Practice) ausgelöst wurden, haben sich im Laufe des Jahres 2021 allmählich erholt, und die GMP-Zertifikate, die damals widerrufen wurden, wurden Mitte 2022 für alle Produkte wiedererlangt. Obwohl das Warnschreiben der US-Behörde noch offen ist und die korrespondierende Re-Inspektion für 2024 geplant ist, waren die Auswirkungen auf das Geschäft in diesem Jahr nicht mehr wesentlich, und wir erwarten auch für 2024 keine größeren Probleme hinsichtlich der Nichteinhaltung der c-GMP-Anforderungen.

Wie in Abschnitt I erwähnt, haben wir uns in letzter Zeit auf die Ausweitung des Absatzes im Bereich von Lebensmittelzutaten und Nahrungsergänzungsmitteln unter neuen Marken konzentriert. Diese Produkte stammen nicht nur von unserer direkten Muttergesellschaft KHB, sondern auch von KH, der Muttergesellschaft von KHB.

III. Betriebsergebnisse

1. Umsatzerlöse

Die Umsatzerlöse für den Zeitraum erreichten EUR 49,9 Mio. Der Gesamtumsatz stieg im Vergleich zum Vorjahr um EUR 4,71 Mio oder 10,4 %. Der Grund dafür ist vor allem die positive Auswirkung der Erholung unseres Absatzes an unsere pharmazeutischen Kunden in der ersten Jahreshälfte. Da jedoch mehrere Kunden ihre eigenen Lagerbestände in der zweiten Jahreshälfte 2023 reduzierten, erzielten wir weniger Umsatz als in unserer Planung vorgesehen (EUR 71 Mio).

2. Rohertrag

Im Gegensatz dazu sank der Rohertrag von EUR 5,57 Mio auf EUR 4,93 Mio, was auf mehrere Faktoren zurückzuführen ist. Die Rohertragsquote sank von 12,3 % auf 9,9 %, was auf den Preiswettbewerb und die Inflation zurückzuführen ist. Einerseits stiegen die Einkaufspreise für Waren und Ausgaben durch die Inflation, andererseits konnten wir die Verkaufspreise aufgrund des Wettbewerbs nicht in gleichem Maße anheben, so dass wir einen Rückgang des Rohertrags verzeichneten.

3. Sonstige betriebliche Erträge

Die sonstigen betrieblichen Erträge verringerten sich von EUR 0,9 Mio auf EUR 0,4 Mio, hauptsächlich aufgrund geringerer Erträge aus der Währungsumrechnung.

4. Personalkosten

Die Personalkosten stiegen um 10,9 %, was hauptsächlich auf allgemeine Gehaltserhöhungen zurückzuführen ist. Außerdem stieg die durchschnittliche Zahl der Beschäftigten von 21 auf 23.

5. Abschreibungen

Die Abschreibungen erhöhten sich aufgrund von außerplanmäßigen Abschreibungen auf immaterielle Vermögensgegenstände um EUR 0,4 Mio auf EUR 0,5 Mio.

6. Sonstige betriebliche Aufwendungen

Die sonstigen betrieblichen Aufwendungen stiegen von EUR 2,4 Mio auf EUR 2,6 Mio, was im Wesentlichen auf einen Anstieg der Fracht- und Lageraufwendungen auf EUR 0,9 Mio (i. Vj. EUR 0,8 Mio) und der sonstigen Aufwendungen auf EUR 0,6 Mio (i. Vj. EUR 0,5 Mio) zurückzuführen ist.

7. Erträge aus Kapitalanlagen

Die Erträge aus Beteiligungen resultieren aus Dividendenerträgen von KHIT und stiegen im Vergleich zum Vorjahr von EUR 0,9 Mio auf EUR 1,6 Mio.

8. Ergebnis nach Steuern

Der Gewinn nach Steuern für das Jahr 2023 belief sich auf EUR 1,1 Mio. Es verringerte sich gegenüber dem Vorjahr um EUR 0,9 Mio. Dies ist hauptsächlich auf den rückläufigen Rohertrag in Höhe von EUR 4,9 Mio (i. Vj. EUR 5,6 Mio) und eine außerplanmäßige Abschreibung der Anzahlungen für Softwareprojekte in Höhe von EUR 0,5 Mio zurückzuführen, die in den Abschreibungen auf immaterielle Vermögenswerte enthalten ist.

IV. Finanzielle Lage

Die Bilanzsumme zum 31. Dezember 2023 beläuft sich auf EUR 36,4 Mio und ist gegenüber dem Vorjahr (EUR 34,3 Mio) um 6,0 % gestiegen. Die Bankguthaben stiegen um EUR 2,0 Mio und die Vorräte um EUR 5,0 Mio, während die Forderungen und sonstigen Vermögensgegenstände um EUR 4,4 Mio zurückgingen, was hauptsächlich auf geringere Forderungen gegen verbundene Unternehmen und ein geringeres Umsatzvolumen im Dezember gegenüber dem Vorjahr zurückzuführen ist. Das Umlaufvermögen macht 88,7 % (i. Vj. 86,6 %) der Bilanzsumme aus. Bei den Finanzanlagen handelt es sich hauptsächlich um unsere Anteile an der Tochtergesellschaft KHIT.

Zum Ende des Geschäftsjahres 2023 stiegen die Verbindlichkeiten und Rückstellungen um EUR 2,9 Mio bzw. 25,8 % gegenüber dem vorangegangenen Geschäftsjahr und beliefen sich auf EUR 14,1 Mio. Der Hauptgrund für den Anstieg sind um EUR 2,3 Mio höhere Verbindlichkeiten gegenüber verbundenen Unternehmen. Das Unternehmen finanziert sich hauptsächlich durch Verbindlichkeiten gegenüber den verbundenen Unternehmen und Eigenkapital. Seit 2003 wurden keine Bankverbindlichkeiten mehr aufgenommen. Der Kassenbestand erhöhte sich auf EUR 5,2 Mio (i. Vj. EUR 3,2 Mio). Zum Bilanzstichtag beträgt die Verbindlichkeit aus dem Cash-Pooling-Darlehen gegenüber der KIRIN HOLDINGS Company, Ltd. TEUR 6.557. Im Vorjahr wies die Gesellschaft eine Forderung aus Cash-Pooling in Höhe von TEUR 2.835 aus.

Im Jahr 2023 war KHEU stets in der Lage, seinen Zahlungsverpflichtungen nachzukommen.

Das Eigenkapital verringerte sich gegenüber dem Ende des vorangegangenen Geschäftsjahres um EUR 3,7 % auf EUR 22,25 Mio bedingt durch die Dividendenausschüttung an die KHB und den geringeren Gewinn des laufenden Jahres. Die Eigenkapitalquote im Verhältnis zur Bilanzsumme sank um 6,1 Prozentpunkte von 67,3 % auf 61,2 %.

Alles in allem war das Jahr 2023 aus Sicht der Einnahmen ein enttäuschendes Jahr, das weit von den ursprünglich prognostizierten entfernt war. Aufgrund der Marktlage wurde die Nachfrage schwach und der Wettbewerb stark. Der Gewinn nach Steuern war trotz des Beitrags der KHIT-Dividende niedriger als im Vorjahr, lag zudem aufgrund der oben genannten Faktoren weit unter unseren ursprünglichen Erwartungen.

V. Finanzielle Leistungsindikatoren

Jeden Monat melden wir der KHB die neuesten Finanzergebnisse, einschließlich der wichtigsten finanziellen Leistungsindikatoren. Bei KHEU sind vor allem die folgenden Finanzindikatoren relevant:

•	Umsatzerlöse
•	Gewinn nach Steuern

Diese Indikatoren sind direkt von den Buchhaltungszahlen abgeleitet. Die Umsatzerlöse stiegen auf EUR 49,9 Mio und lagen damit 29,7 % unter unserer Erwartung für 2023 von EUR 71,0 Mio, da der Pharmamarkt, wie bereits erwähnt, aufgrund des harten Wettbewerbs stagnierte. Der Gewinn nach Steuern in Höhe von EUR 1,1 Mio lag unter unserer letztjährigen Erwartung für 2023 in Höhe von EUR 3,6 Mio, hauptsächlich aufgrund eines stärkeren Rückgangs des Rohertrags und eines höheren Anstiegs der Abschreibungen sowie der sonstigen betrieblichen Aufwendungen als erwartet.

Die Unternehmensleitung verwendet keine nicht-finanziellen Leistungsindikatoren als Richtschnur für das Tagesgeschäft.

VI. Forschung und Entwicklung

Forschung und Entwicklung werden ausschließlich von unserer Muttergesellschaft durchgeführt. Wir erwarten, dass unsere neue Verkaufsproduktgruppe HMO (Human Milk Oligosaccharide), bald auf den Markt kommt. Als Verkaufs- und Vertriebsgesellschaft werden wir die Einführung der neuen Produktgruppe auf dem europäischen Markt unterstützen.

VII. Mitarbeiter

Die Gesamtzahl der Mitarbeiter beträgt 23 (einschließlich des Geschäftsführers mit Sitz in Düsseldorf, Deutschland) zum 31. Dezember 2023.

VIII. Risiken

Unser Risikomanagement umfasst in der Regel Bereiche wie Forderungsmanagement, Überwachung der Vorräte, Planung/Budgetierung, Kostenanalyse, Qualitätsmanagement und Informationssicherheit.

Vor dem oben genannten Hintergrund sehen wir insbesondere die folgenden Geschäftsrisiken, die in absteigender Reihenfolge nach ihrer Bedeutung für KHEU beschrieben sind. Die Risiken werden auf der Grundlage ihrer erwarteten Eintrittswahrscheinlichkeit und ihres potenziellen Schadensausmaßes analysiert und bewertet.

•	Risiken des Verlustes der derzeitigen Marktposition in bestimmten Geschäftsbereichen aufgrund der Marktexpansion von Wettbewerbern mit hoher Wettbewerbsfähigkeit.
•	Es besteht die Gefahr, dass die Chance verpasst wird, neue Geschäfte zu gewinnen, insbesondere auf den wachsenden Märkten
•	Das Risiko, dass die europäischen Vorschriften in Bezug auf unser Geschäft strenger werden, was unseren Geschäftsbetrieb erschweren könnte.

Unter Berücksichtigung dieser potenziellen Risiken erörtern wir mit KHB unsere Gegenmaßnahmen, um die Eintrittswahrscheinlichkeit dieser Risiken zu minimieren. Insgesamt werden keine Risiken gesehen, die den Fortbestand des Unternehmens gefährden könnten.

IX. Chancen und Ausblick

Wir verkaufen weiterhin pharmazeutische Aminosäureprodukte an unsere Kunden, zu denen wir über viele Jahre hinweg enge Beziehungen aufgebaut haben.

Wie in Abschnitt I beschrieben, versuchen wir, unser Geschäft mit gesundheitsfördernden Inhaltsstoffen parallel zu unserem pharmazeutisch orientierten Geschäft auszubauen, was unserem Unternehmen Stabilität und Wachstum verleiht. In diesem Sinne haben wir uns bemüht, unsere Verkäufe in den ernährungsbezogenen Märkten in Europa zu steigern, indem wir Jahr für Jahr neue Markenprodukte mit gesundheitsfördernden Inhaltsstoffen, sogenannte Spezialprodukte, einführen. Konkret werden wir in 2024 mehrere neue gesundheitsfördernde Produkte für die Segmente Immunsystem und Kognition verkaufen, die aufgrund der hohen Marktakzeptanz nach der Covid-19 Pandemie und des gestiegenen Bewusstseins für die Bedeutung eines guten Immunsystems und des Erhalts der kognitiven Fähigkeiten als interessante Produkte für die Aufrechterhaltung der Lebensqualität (QOL) der Menschen betrachtet werden können.

Zusätzlich zu unseren bestehenden Produkten wurden in unserem Schwesterunternehmen in Thailand neue Anlagen für neue gesundheitsfördernde Inhaltsstoffe, nämlich HMOs (Human Milk Oligosaccharide) gebaut, die 2023 die Produktion aufgenommen haben und unser künftiges Produktportfolio diversifizieren werden. Außerdem haben wir in diesem Jahr damit begonnen, zusätzliche pharmazeutische Produkte eines Schwesterunternehmens zu vertreiben, da wir das Geschäft von einem anderen Händler übernommen haben.

In Anbetracht der Tatsache, dass die Wirtschaft in unserem Hauptabnehmerland Deutschland für das Geschäftsjahr 2024 stagniert, erwarten wir ein geringes Wachstum der Umsatzerlöse und des Gewinn im Vergleich zu 2023. Wir wollen jedoch die wirtschaftliche Entwicklung stets im Auge behalten und unsere Budgets erreichen, indem wir jeden Artikel entsprechend seiner spezifischen Merkmale fördern.

Düsseldorf, 25. Juli 2024

KYOWA HAKKO Europa Gesellschaft mit beschränkter Haftung

Kazuo Hibi, Geschäftsführer

Ryusuke Okada, Geschäftsführer

Tsuyoshi Shimose, Geschäftsführer

2f:T63af2,

KYOWA HAKKO Europe Gesellschaft mit beschränkter Haftung

Düsseldorf

Befreiender Konzernabschluss zum Geschäftsjahr vom 01.01.2022 bis zum 31.12.2022

KIRIN Holdings Company, Limited

Tokio/Japan

February 14, 2023

SUMMARY OF CONSOLIDATED FINANCIAL RESULTS FOR THE YEAR ENDED DECEMBER 31, 2022 (UNDER IFRS) (UNAUDITED)

(English Translation)

Fiscal year ended December 31,2022

KIRIN HOLDINGS COMPANY, LIMITED

NAKANO CENTRAL PARK SOUTH, 10-2, Nakano 4-chome, Nakano-ku, Tokyo, Japan (URL https://www.kirinholdings.com/en/)

Code No.:	2503
Shares Listed:	Tokyo, Nagoya, Sapporo and Fukuoka
Representative:	Mr. Yoshinori Isozaki, President and CEO
For further information, please contact:	Mr. Nobuhiko Hori,
	General Manager of Corporate Communications Department
	Telephone: +81-3-6837-7015 from overseas
Scheduled date of general meeting of shareholders held:	March 30, 2023
Commencement date of dividend distribution scheduled:	March 31, 2023
Submission date of securities report scheduled:	March 30, 2023
Preparation of supplementary documents to the financial results:	Yes
Holding of financial results presentation (for institutional investors and analysts):	Yes

1. Consolidated business results and financial position for the current fiscal year (January 1, 2022 - December 31, 2022)

(1) Results of operations:



		(Percentage change compares current results with those of the same period of the previous year)
	Revenue	Percentage change	Normalized operating profit
	(¥ millions)	( %)	(¥ millions)
Fiscal year ended
December 31,2022	1,989,468	9.2	191,159
December 31, 2021	1,821,570	(1.5)	165,430

		[Unit: Japanese yen (¥)]
	(Amounts are rounded to the nearest ¥1 million.)
	(Percentage change compares current results with those of the same period of the previous year)
	Percentage change	Profit before tax	Percentage change
	( %)	(¥ millions)	( %)
Fiscal year ended
December 31,2022	15.6	191,387	92.1
December 31, 2021	2.0	99,617	(20.0)

	Profit	Percentage change	Profit attributable to owners of the Company
	(¥ millions)	( %)	(¥ millions)
Fiscal year ended
December 31,2022	143,771	110.1	111,007
December 31,2021	68,424	(31.5)	59,790

	Percentage change	Total comprehensive income	Percentage change
	( %)	(¥ millions)	( %)
Fiscal year ended
December 31,2022	85.7	219,836	87.4
December 31,2021	(16.9)	117,316	27.7

	Basic earnings per share	Diluted earnings per share	Ratio of profit to equity attributable to owners of the Company	Ratio of profit before tax to total assets	Ratio of normalized operating profit to revenue
	(¥)	(¥)	( %)	( %)	( %)
Fiscal year ended
December 31, 2022	135.08	135,07	11.8	7.6	9.6
December 31, 2021	71.73	71.70	6.9	4.0	9.1

Reference: Share of profit of equity-accounted investees	Fiscal year ended December 31, 2022	¥22,780 million
	Fiscal year ended December 31, 2021	¥34,490 million

Operating profit	Fiscal year ended December 31, 2022	¥116,019 million	70.4 %
	Fiscal year ended December 31, 2021	¥68,084 million	(33.8 %)
Ratio of operating profit to revenue	Fiscal year ended December 31, 2022	5.8 %
	Fiscal year ended December 31, 2021	3.7 %

^* Normalized operating profit is a profit indicator for measuring recurring performance which is calculated by deducting cost of sales and selling, general and administrative expenses from revenue.

(2) Financial position:

	Total assets	Total equity	Equity attributable to owners of the Company	Equity ratio attributable to owners of the Company	Equity per share attributable to owners of the Company
	(¥ millions)	(¥ millions)	(¥ millions)	( %)	(¥)
As of
December 31,2022	2,542,263	1,253,203	980,022	38.5	1,210.16
December 31,2021	2,471,933	1,147,990	894,179	36.2	1,072.69

(3) Cash flows:

	Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of year
	(¥ millions)	(¥ millions)	(¥ millions)	(¥ millions)
Fiscal year ended December 31,2022	135,562	(10,399)	(167,835)	88,060
Fiscal year ended December 31, 2021	219,303	(56,408)	(180,463)	149,488

2. Dividends

	Annual dividends
	First quarter	Second quarter	Third quarter	Year-end	Total
	(¥)	(¥)	(¥)	(¥)	(¥)
Fiscal year ended December 31, 2021	-	32.50	-	32.50	65.00
Fiscal year ended December 31,2022	-	32.50	-	36.50	69.00
Fiscal year ending December 31,2023 (Forecast)	-	34.50	-	34,50	69.00

	Total amount of dividends (¥ millions)	Dividend pay-out ratio ( %)	Ratio of dividends to equity attributable to owners of the Company ( %)
Fiscal year ended December 31,2021	54,208	90.6	6.3
Fiscal year ended December 31,2022	56,381	51.1	6.0
Fiscal year ending December 31, 2023 (Forecast)		49.5

3. Forecast consolidated business results for the next fiscal year (January 1, 2023 - December 31, 2023)

		(Percentage change compares forecast results with actual results of the previous year)
	Revenue	Percentage change	Normalized operating profit
	(¥ millions)	( %)	(¥ millions)
Fiscal year ending December 31, 2023	2,115,000	6.3	192,000

	(Percentage change compares forecast results with actual results of the previous year)
	Percentage change	Profit before tax	Percentage change
	( %)	(¥ millions)	( %)
Fiscal year ending December 31, 2023	0.4	196,000	2.4

	Profit	Percentage change	Profit attributable to owners of the Company	Percentage change	Basic earnings per share
	(¥ millions)	( %)	(¥ millions)	( %)	(¥)
Fiscal year ending Decemher31,2023	148,500	3.3	113,000	1.8	139.54

Reference:

Operating profit

Fiscal year ending December 31, 2023

¥169,000 million

45.7 %

^* Notes

(1) Changes in significant subsidiaries for the fiscal year ended December 31,2022	None
(Changes in specified subsidiaries accompanying change in scope of consolidation):
Newly included: -	Excluded: -

(2) Changes in accounting policies and changes in accounting estimates

i. Changes in accounting policies required by IFRS:	None
ii. Changes in accounting policies due to other reasons:	None
iii. Changes in accounting estimates:	Yes

For details, please see "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CHANGES IN ACCOUNTING ESTIMATES)" on page 19.

(3) Number of shares outstanding (ordinary shares)

i. Number of shares outstanding at the end of the period (including treasury shares)

As of December 31, 2022	914,000,000 shares
As of December 31,2021	914,000,000 shares
ii. Number of treasury shares at the end of the period
As of December 31, 2022	104,171,578 shares
As of December 31,2021	80,414,185 shares
iii. Average number of shares during the period
For the fiscal year ended December 31,2022	821,755,308 shares
For the fiscal year ended December 31, 2021	833,598,578 shares

Number of treasury shares at the end of the period includes shares held in the BIP (Board Incentive Plan) Tiust (1,965,900 Note: shares at December 31, 2022 and 385,135 shares at December 31, 2021). These shares are excluded in calculation of the average number of shares during the period.

^* The summary of consolidated financial results is not subject to audit by certified public accountants or an audit corporation.
^* Information about proper usage of forecast business results, and other special instructions

(1)

(2)

The Company will post the Supplementary Documents to the Financial Results today, Tuesday, February 14, and will post the presentation materials from the financial results presentation to be held on Wednesday, February 15, the presentation content (video) and the main Q&A at the meeting as soon as possible on the Company's website. (URL of the Company's website) https://www.kirinholdings.com/en/investors/

ATTACHED MATERIALS

INDEX

1. KIRIN GROUP'S CURRENT BUSINESS PERFORMANCE

(1) STATEMENT OF BUSINESS ACTIVITIES AND RESULTS

(2) FINANCIAL POSITION

(3) BASIC POLICY AND DISTRIBUTION OF PROFITSAND DIVIDEND FOR 2022 AND 2023

2. BASIC RATIONALE FOR SELECTION OF ACCOUNTING STANDARDS

3. CONSOLIDATED FINANCIAL STATEMENTS

(1) CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(2) CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND COMPREHENSIVE INCOME

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(3) CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(4) CONSOLIDATED STATEMENT OF CASH FLOWS

(5) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(GOING CONCERN ASSUMPTION)

(CHANGES IN ACCOUNTING ESTIMATES)

(SEGMENT INFORMATION)

(PER SHARE INFORMATION)

(SIGNIFICANT SUBSEQUENT EVENTS)

4. OTHER

CHANGES OF DIRECTORS AND BOARD MEMBERS

1. KIRIN GROUP'S CURRENT BUSINESS PERFORMANCE

1) STATEMENT OF BUSINESS ACTIVITIES AND RESULTS

In 2022, in addition to the prolonged COVID-19 pandemic, the emergence of geopolitical risks, global inflation, and the weak yen, among others had a significant impact on corporate management. In terms of consumer behavior, it was a year of major changes in society, including a further increase in health consciousness and further polarization of consumption.

In this environment, the Kirin Group accelerated its efforts to respond to changes in society under its Kirin Group Vision 2027 (KV2027) long-term management plan, including increasing profits in the Food & Beverages domain, strengthening the global foundation of the Pharmaceuticals domain, and expanding the Health Science domain. Kirin Holdings has been developing its pharmaceutical business for more than 40 years on the strength of fermentation and biotechnology cultivated through the beer business, which has continued for more than 100 years since its founding, and Kirin Holdings is promoting its health science business, newly launched under KV2027, by leveraging these core technologies. Kirin Holdings believes that using its superior fermentation technologies and biological knowledge to grow the health science business - leading to solutions to health issues - will ensure the future of the Kirin Group's continued existence and sustainable growth as a company.

Kirin Holdings will use the strengths of the Kirin Group to solve not only health issues, but also other issues facing society, while at the same time creating economic value as a company and maximizing corporate value.

During the year under review, Kirin Holdings pursued the following initiatives under the Kirin Group 2022-2024 Medium-Term Business Plan (2022-2024 MTBP), the second of three medium-term business plans toward achieve KV2027.

1. Food & Beverages Domain

While building a strong brand system by concentrating on its mainstay brands, Kirin Holdings also worked to expand products and services that offer new value propositions. In response to soaring prices of raw materials and fuel prices, each Group company worked to improve profitability through productivity improvements and product price revisions.

2. Pharmaceuticals Domain

As a Japan-based Global Specialty Pharmaceutical company*1, Kirin Holdings worked to strengthen the foundation in Japan as well as overseas. In addition to steadily growing global strategic products, Kirin Holdings promoted the development of next-generation strategic products.

3. Health Science Domain

Kirin Holdings accelerated the development of Lactococcus lactis strain Plasma*2 (LC-Plasma) to expand its business domain. In addition to the development of its own group products such as beverages and supplements, Kirin Holdings promoted sales of raw material to external partner companies and expanded the number of functional food products. As a result, the sales amount of LC-Plasma-related business increased 40 % from the previous year. In addition, Kirin Holdings continued its efforts to raise awareness of "immune care" and contributed to solving consumers' health issues.

1 A pharmaceutical company that continuously creates, develops, and markets innovative new drugs on a global scale by utilizing cutting-edge biotechnology with antibody technology at its core in the fields of nephrology, oncology, immunology/allergy, and the central nervous system.

2 A lactic acid bacterium that supports the maintenance of immune function in healthy people. Named after plasma cytoid dendritic cells (pDCs), which are immune cells, the Kirin Group has published many papers and presented at many conferences in collaboration with universities and research institutions in Japan and overseas.

Kirin Holdings has also received high praise from outside the company in terms of ESG. For the second year in a row, Kirin Holdings received an "AA" rating in the MSCI ESG Ratings*3 by the U.S.-based Morgan Stanley Capital International (MSCI), Inc. on a par with the world's leading CSV*4 companies. In a survey conducted by CDP*5, an international non-profit organization, Kirin Holdings also received the highest rating of "A-List" in the two themes of "climate change" and "water security" for four consecutive years. In Japan, Kirin Holdings also received the highest overall ranking in the Nikkei SDGs Management Survey for four consecutive years, as well as the "SDGs Strategy and Economic Value Award" at the 4th Nikkei SDGs Management Grand Prix.

In response to increasing demands for disclosure of non-financial information, Kirin Holdings has been proactive in disclosing non-financial indicators. Kirin Holdings has set non-financial targets in the areas of "Environment," "Health," and "Employees" as key performance indicators in the 2022-2024 MTBP, and have promoted specific initiatives.

3 A rating by Morgan Stanley Capital International (MSCI), Inc. of the United States, as measured by resilience to significant long-term environmental, social, and governance risks, with a scale of AAA-CCC.

4 Creating Shared Value: combined added value for consumers as well as for society at large.

5 A non-profit organization that, at the request of institutional investors and major purchasing companies around the world, requires companies and municipalities to disclose information regarding their measures to combat climate change, protect water resources, preserve forests, and other environmental issues, and encourages them to take action.

Consolidated revenue	1,989.5 billion yen, up 9.2 %
Consolidated normalized operating profit	191.2 billion yen, up 15.6 %
Consolidated profit before tax	191.4 billion yen, up 92.1 %
Consolidated profit attributable to owners of the Company (Key performance indicators)	111.0 billion yen, up 85.7 %
ROIC	8.5 %
Normalized EPS*	171 yen, up 9.6 %

Normalization: Non-recurring items such as Other operating income or expenses, etc. have been removed to more accurately reflect actual earnings.

Normalized EPS = Normalized profit / Average number of shares outstanding during period.

Normalized profit = Profit attributable to Owners of the Company + Other operating income and expenses and other items after income taxes

Results by segment are as follows.

Japan Beer and Spirits Business: Kirin Brewery Company, Limited (Kirin Brewery)

The domestic alcoholic beverages market was affected by soaring raw material and fuel prices as well as the prolonged COVID-19, but overall the market was on a recovery trend. Kirin Brewery focused on its mainstay brand KIRIN ICHIBAN and KIRIN ICHIBAN Zero Sugar*6," to capture health-conscious consumers. As a result, overall sales volume of the KIRIN ICHIBAN brand increased 3 % year-on-year. In the craft beer category, Kirin Brewery focused on efforts to broaden the appeal of a variety of beers. From the SPRING VALLEY brand, in addition to SPRING VALLEY Hojun <496>, SPRING VALLEY Silk Ale [White] was newly launched. Kirin Home Tap, a beer server for home use that allows consumers to enjoy authentic draft and craft beer at home, delivered the taste of freshly brewed beer to consumers nationwide. The Tap Marche beer server for restaurants, which can serve four kinds of craft beer from various regions of Japan, brought the enjoyment of a wide range of craft beer to consumers with 14 participating breweries.

In addition, Kirin Brewery has been rolling out TAPPY, a next-generation beer server that maintains the freshness of beer and helps reduce food loss, and the number of restaurants that have installed TAPPY has surpassed 10,000.

In the RTD*7 category, the mainstay Kirin Hyoketsu® brand sold well. In particular, the Hyoketsu® Sugar Free series received strong support, with sales exceeding 14 million cases*8, approximately 1.2 times the target set at the beqinning of the year.

In the non-alcoholic beer-taste beverage category, Kirin Brewery revamped Kirin GREENS FREE, which helped revitalize the market.

6 According to food labeling standards products containing less than 0.5g of sugar per 100ml can be labeled "zero sugar."

7 Abbreviation for Ready to Drink, a canned cocktail.

8 Equivalent to 24 bottles of 250ml each

Japan Beer and Spirits Business 2022 results:

Consolidated revenue	663.5 billion yen, up 0.3 %
Consolidated normalized operating profit	74.7 billion yen, up 5.8 %

Japan Non-alcoholic Beverages Business: Kirin Beverage Company, Limited (Kirin Beverage)

The domestic beverage market is on a recovery trend due to increased opportunities to go out, but the external environment surrounding the market became more intense due to soaring raw material and fuel prices, etc.

At Kirin Beverage, sales of mainstay brands were strong, with sales of both Kirin Gogo-no-Kocha and Kirin Nama-cha exceeding those of the previous year. In particular, sales of Kirin Gogo-no-Kocha Oishii Muto (sugar free) were up 17 % from the previous year. In the Health Science area, where Kirin Beverage is focusing its efforts, Kirin iMUSE Morning Immune Care, a small-volume PET-bottled beverage, was launched nationwide to strengthen efforts to make "immune care" a habit in consumers. In addition, Kirin Beverage renewed and strengthened sales of Kirin iMUSE Lemon and Kirin iMUSE Yogurt Taste, resulting in a 23 % year-on-year growth in sales volume of beverages containing LC-Plasma. On top of that, KIRIN naturals, a service for corporate consumers to promote health management, was renewed as a service to improve employees' lifestyle habits and raise their health awareness.

Japan Non-alcoholic Beverages Business 2022 results:

Consolidated revenue	243.3 billion yen, down 0.5 %
Consolidated normalized operating profit	18.8 billion yen, down 11.0 %

Oceania Adult Beverages Business: Lion Pty Limited (Lion)

In the Australian alcoholic beverage market, while the on-premise market was recovering from the impact of COVID-19, the off-premise market remained soft. Lion strengthened marketing activities centered on its mainstay XXXX ("four-ex") and worked to revitalize the brand. In the craft beer business, which is positioned and focused as a growth area, Lion acquired Fermentum Pty Ltd. in Australia in 2021 and expanded its premium portfolio. In 2022, Lion acquired Bell's Brewery, Inc. in the United States, and together with New Belgium Brewing Company, proceeded to build a craft platform in North America.

Oceania Adult Beverages Business 2022 results:

Consolidated revenue	255.9 billion yen, up 18.3 %
Consolidated normalized operating profit	31.5 billion yen, up 18.8 %

Pharmaceuticals Business: Kyowa Kirin Co., Ltd. (Kyowa Kirin)

In 2022, the second year of the company's 2021-2025 Medium Term Business Plan, Kyowa Kirin continued its efforts to grow as a Japan-based Global Specialty Pharmaceutical company.

While the global therapeutic environment is changing due to COVID-19, global strategic products Crysvita*9 and Poteligeo*10 continued to show steady growth. As for next-generation strategic products, development of KHK4083 (generic name: Rocatinlimab)*11" and KHK7791 (generic name: Tenapanor Hydrochloride)*12" made steady progress. On the other hand, the development of KW-6356*13 was discontinued, and the decision was made to discontinue the development of ME-401*14 outside Japan. In Kyowa Kirin's "patient advocacy" activities, which aim to resolve business and social issues by listening to the voices of people facing illnesses, Kyowa Kirin actively promoted support for rare and intractable diseases in Japan and overseas, including participation in the community of ASrid, a Japanese non-profit organization.

9 A drug for the treatment of rare diseases that cause disorders of bone growth and metabolism mainly due to genetic causes. In Japan, it is marketed under the CRYSVITA product name.

10 A drug for the treatment of certain types of leukemia. It is already marketed in Japan under the POTELIGEO brand name.

11 A drug for the treatment of atopic dermatitis.

12 A treatment that inhibits phosphorus absorption for hemodialysis patients.

13 The next-generation KW-6002 product (Japanese product name: Nouriast), used for the treatment of Parkinson's disease.

14 A drug for the treatment of certain types of leukemia.

Pharmaceuticals Business 2022 results:

Consolidated revenue	397.9 billion yen, up 13.1 %
Consolidated normalized operating profit	82.5 billion yen, up 34.7 %
Other Businesses
	428.9 billion yen, up 23.3 %
Consolidated revenue
Consolidated normalized operating profit	37.5 billion yen, up 19.8 %
Share of Revenue	21.6 %

• KYOWA HAKKO BIO CO., LTD. (Kyowa Hakko Bio)

Kyowa Hakko Bio was forced to suspend manufacturing at its Shanghai plant in China (SHANGHAI KYOWA AMINO ACID CO., LTD.), one of its production bases, following the spread of a new COVID-19 strain, and sales were also constrained. In addition, sales of Citicoline*15, a key ingredient, were weak due to factors such as the impact of inflation in the United States, the largest dietary supplement market. Profitability was also affected by soaring raw material and fuel prices. On the R&D front, Kyowa Hakko Bio built a foundation for medium- to long-term growth in the Kirin Group's Health Science domain. On the other hand, despite the severe business environment, Kyowa Hakko Bio completed a production facility for HMOs*17 (human milk oligosaccharides) - for which demand is expected to grow worldwide - in its own factory in Thailand (THAI KYOWA BIOTECHNOLOGIES CO., LTD.).

15 An ingredient found in the body that maintains the cell membranes of the brain and nerve cells, and has been used for many years around the world in medicines for brain diseases and health foods that support the improvement of cognitive functions. In Japan, it is currently classified as a pharmaceutical product. 17 A generic term for oligosaccharides contained in breast milk. More than 200 kinds are contained in breast milk, and the results of research contributing to immunity and brain function, among others, have been reported.

• Mercian Corporation (Mercian)

At Mercian, while its mainstay wine business was greatly affected by the sharp depreciation of the yen, it worked to nurture its own highly profitable brands. Mercian began developing a new brand, Mercian Wines, co-created with winemakers around the world, and responded to ethical consumption which has been on the rise in recent years.

In Japanese wines, Mercian has strengthened its efforts with the Chateau Mercian flagship brand. Mercian also launched a consulting business to raise the standard of the Japanese wine industry as a whole. Mercian aims to grow Chateau Mercian while contributing to local economies.

M Myanmar Brewery Ltd. (Myanmar Brewery)

With regard to Myanmar Brewery Kirin Holdings reached an agreement to transfer all shares of Myanmar Brewery held by its subsidiary Kirin Holdings Singapore Pte, Ltd. (Myanmar Brewery's acquisition of its own shares). Accordingly, a share transfer agreement was signed with Myanmar Brewery on January 23, 2023, and the transfer was completed.

• Coca-Cola Beverages Northeast, Inc. (Coke Northeast)

In the United States, the beverage market grew significantly, as strong consumer demand continued despite rising inflation. Coke Northeast also worked to increase demand while revising product prices, and as a result, sales remained strong. The company also improved profitability by working on a more profitable product mix.

<Outlook for 2023>

While social activities are recovering from the effects of COVID-19, outbreaks of infectious diseases will continue to be unavoidable. In addition, heightened geopolitical risks may cause raw material and fuel prices to soar and other commodity prices to rise, making the business environment increasingly unpredictable. Against this backdrop, the Kirin Group will work to grow in the Pharmaceutical and Health Science domains and to improve profitability in the Food & Beverages domain while facing social issues head-on.

The Kirin Group's growth is supported by four organizational capabilities: human resources, ICT, marketing, in addition to technological capabilities based on fermentation and biotechnology. In the area of human capital, which has been attracting increasing attention in recent years, Kirin Holdings will increase the number of highly specialized and diverse human capital and reform the Group's human capital strategy to foster an organizational culture that enables growth through taking on challenges. Under the new strategy, Kirin Holdings will link investment in human capital to increased corporate value.

Kirin Holdings will also strengthen human rights initiatives in its global supply chain. It will reduce human rights risks by conducting human rights due diligence on tea plantations in Sri Lanka and other raw material suppliers, and by utilizing the grievance mechanism of the Japan Center for Engagement and Remedy on Business and Human Rights (JaCER).

Under the new strategy, Kirin Holdings will link investment in human capital to the enhancement of corporate value. In addition, Kirin Holdings will promote initiatives aimed at creating a positive impact on a global level to address environmental issues that must be addressed on a global scale.

Through these efforts, Kirin Holdings aims to achieve its financial targets of an average annual growth rate of at least 11 % in Normalized EPS by 2024*1 and an ROIC of 10 % by 2024, as well as its non-financial targets for the environment, health, and employees.

1 Standard is for FY2023.

Consolidate Earnings Forecasts for the Fiscal Year 2023:

Consolidated revenue	2,115.0 billion yen, up 6.3 %
Consolidated normalized operating profit	192.0 billion yen, up 0.4 %
Consolidated profit before tax	196.0 billion yen, up 2.4 %
Consolidated profit attributable to owners of the Company (Key performance indicators)	113.0 billion yen, up 1.8 %
ROIC	8.5 %
Normalized EPS*	171 yen, -

1. Food & Beverages Domain

In the Food & Beverages domain, Kirin Holdings will continue to build a strong brand system, nurture growth engines, and improve profitability.

Kirin Brewery will work to "make beer more appealing" in response to rising demand for beer due to the upcoming liquor tax revision in October, Focusing on the renewal of KIRIN ICHIBAN, we will strengthen our mainstay brands such as KIRIN ICHIBAN, KIRIN ICHIBAN Zero Sugar, and the Kirin Hyoketsu® RTD. In craft beer, which is positioned as a growth engine, Kirin Brewery will focus on the SPRING VALLEY brand, strengthen partnerships with other craft breweries, and expand the Tap Marché and Kirin Home Tap services.

Kirin Beverage has positioned "Health with good taste for everyone's daily life" as its pledge to its consumers in response to growing health consciousness. Kirin Beverage will focus on expanding the immune care market by strengthening its lineup of LC-Plasma-containing beverages, centered on the newly launched Kirin Oishii Immune Care. In its mainstay brands, Kirin Beverage will work to enhance the intrinsic value of black tea through the Kirin Gogo-no-Kocha mainstay brand and will also work on evolving taste and reducing environmental impact with Kirin Nama-cha.

Lion will strengthen marketing activities in priority brands such as XXXX. In the well-performing craft beer area, Lion will focus on strengthening its operating base in Australia and the United States. Lion will also pursue sustainable growth through transformation to a new business operation model.

Mercian will focus on Mercian Wines and Chateau Mercian to strengthen profitability.

Coke Northeast will work to build a continuous, stable, and highly profitable structure.

2. Pharmaceuticals Domain

Kyowa Kirin aims to maximize the value of its global strategic products, Crysvita and Poteligeo. For Crysvita in particular, Kyowa Kirin will switch its sales promotion activities in North America from Ultragenyx, its previous outsourcing partner, to in-house, aiming for further growth and improved profitability.

The pharmaceutical industry is experiencing severe changes in the business environment, such as reduced spending on pharmaceuticals due to measures to control drug costs and promote the use of generics, as well as increased costs in new drug development. At the same time, there are moves to encourage new drug discovery methods that will enable innovative treatments.

We will steadily conduct clinical trials for KHK4083 and KHK4951 (generic name: Tibozanib)*2, which are being co-developed with Amgen, along with promoting R&D to further enhance the product pipeline.

2 A treatment for exudative age-related macular degeneration (a disease that causes abnormal angiogenesis in the area called the macula, where photoreceptor cells are densely located, resulting in rapid vision loss).

3. Health Science Domain

While the effects of COVID-19 linger, people's interest in health and wellness is growing year by year, and in 2023, Kirin Holdings will continue its efforts to raise awareness of "immune care," which enhances people's innate immune ability.

In addition to Kirin Holdings' own products, it will work with external partners to develop a wide range of functional food products, such as beverages, candies, and supplements containing LC-Plasma, to expand the environment in which consumers can easily and habitually take care of their immune systems. Kirin Holdings will utilize the knowledge gained from selling its own products to develop a proposal-based B-to-B business that is not limited to sales of raw material. Overseas, Kirin Holdings will accelerate expansion to Southeast Asia, the U.S., Europe, and other regions to convey the importance of "immune care'' to people around the world.

Kyowa Hakko Bio will strengthen sales of Citicoline in the United States, and will aim to roll out HMOs (human milk oligosaccharides), a nutritional ingredient unique to breast milk, in Southeast Asia.

Kirin Holdings will accelerate joint research and new product development with FANCL by leveraging the strengths of both companies. In addition to expanding synergies by broadening the scope of joint research and increasing synergies, Kirin Beverage will utilize FANCL's Calolimit® brand to develop high value-added products. In addition, by sharing FANCL's expertise in e-commerce sales, Kirin Holdings will enhance its ability to respond to and make proposals to consumers.

In Closing

The Kirin Group will promote CSV management that creates social and economic value in the areas of Food & Beverages, Pharmaceuticals, and Health Science domains, centered on its strengths in fermentation and biotechnology. The foundation of the business portfolio aimed for in KV2027 is being built, and Kirin Holdings aims to achieve sustainable growth and increase corporate value by accelerating growth and increasing the degree of strategy execution in each domain.

Kirin Holdings sincerely thanks the Kirin Group's shareholders for their continued understanding and support.

(2) FINANCIAL POSITION

Total assets at the end of the current consolidated fiscal year were 2,542.3 billion yen, an increase of 70.3 billion yen from the end of the previous consolidated fiscal year mainly due to an increase in inventories, property, plant and equipment, and goodwill which more than offset a decrease in equity-accounted investees.

Equity increased by 105.2 billion yen from the end of the previous consolidated fiscal year to 1,253.2 billion yen mainly due to an increase in reserves due to foreign exchange fluctuations.

Liabilities decreased by 34.9 billion yen from the end of the previous consolidated fiscal year to 1,289.1 billion yen mainly due to a decrease in bonds and borrowings principally caused by a decrease in commercial papers.

The balance of cash and cash equivalents (hereinafter referred to as "net cash") at the end of the current consolidated fiscal year was 88.1 billion yen, a decrease of 61.4 billion yen from the end of the previous consolidated fiscal year. Consolidated cash flows were as follows:

Cash flows from operating activities

Net cash provided by operating activities decreased by 83.7 billion yen year on year to 135.6 billion yen. Outflow of working capital increased by 12.6 billion yen, while income taxes paid increased by 39.2 billion yen.

Cash flows from investing activities

Net cash used in investing activities decreased by 46.0 billion yen year on year to 10.4 billion yen. There was an inflow of 122.2 billion yen for sale of equity-accounted investees and 11.3 billion yen for sale of property, plant and equipment and intangible assets, while there was an outflow of 98.5 billion yen for acquisition of property, plant and equipment and intangible assets, representing an increase by 12.1 billion yen year on year, and 46.2 billion yen for acquisition of shares of subsidiaries.

Cash flows from financing activities

Net cash used in financing activities decreased by 12.6 billion yen year on year to 167.8 billion yen. Proceeds of 71.9 billion yen was received from long-term borrowings and 20.0 billion yen from issuance of bonds, while there was an outflow of 67.6 billion yen for repayment of long-term borrowings, 65.5 billion yen for dividends paid, 55.0 billion yen for decrease in commercial paper, and 50.0 billion yen for acquisition of treasury shares.

(3) BASIC POLICY AND DISTRIBUTION OF PROFITS AND DIVIDEND FOR 2022 AND 2023

Based on the capital policy formulated in the 2022-2024 MTBP, Kirin will allocate resources to its businesses and distribute profits to its shareholders as set out below. Regarding resource allocation to businesses, giving top priority to investments that contribute to further developing businesses with a focus on the Heath Science domain, Kirin will make investments that contribute to enhancement of existing businesses and profit improvement. Kirin will also implement a stable and continuous allocation of resources to intangible assets (such as brands, research and development, information and communication technology (ICT), and human resources) that sustain the growth of future cash flows. Kirin will take a disciplined approach to investments in terms of maintaining and improving the Kirin Group's capital efficiency.

Kirin also views the appropriate distribution of profits to shareholders as a key management matter. Kirin has stably and continuously provided dividends based on a consolidated dividend payout ratio on normalized EPS of at least 40 %. In addition, Kirin will consider opportunities to acquire treasury shares as additional shareholder returns, comprehensively taking into account various factors including optimum capital structure, market conditions and reserve funds after investments.

With regard to the distribution of surplus funds for 2022, based on a consolidated dividend payout ratio on normalized EPS of at least 40 %, Kirin's Board of Directors made a resolution for an interim dividend of 32.5 yen per share and a year-end dividend of 36.5 yen per share, for an annual dividend totaling 69 yen per share (an increase of 4 yen per share from the previous year). The year-end dividend will be determined at the 184th General Meeting of Shareholders scheduled for March 30,2023.

Regarding the distribution of surplus funds for 2023, Kirin aims for a consolidated dividend payout ratio on normalized EPS of at least 40 %, and plans to pay a full-year dividend of 69 yen per share.

2. BASIC RATIONALE FOR SELECTION OF ACCOUNTING STANDARDS

3. CONSOLIDATED FINANCIAL STATEMENTS

(1) CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(¥ millions)

	At December 31, 2021	At December 31, 2022
Assets
Non-current assets
Property, plant and equipment	533,859	560,642
Goodwill	264,225	289,526
Intangible assets	196,341	200,900
Equity-accounted investees	399,367	361,764
Other financial assets	117,431	103,380
Other non-current assets	24,736	27,700
Deferred tax assets	109,354	111,330
Total non-current assets	1,645,313	1,655,242
Current assets
Inventories	247,229	290,171
Trade and other receivables	387,921	409,168
Other financial assets	7,910	8,376
Other current assets	34,071	41,128
Cash and cash equivalents	149,488	88,060
(Sub-total)	826,620	836,903
Assets held for sale	-	50,117
Total current assets	826,620	887,021
Total assets	2,471,933	2,542,263

(¥ millions)

	At December 31, 2021	At December 31, 2022
Equity
Share capital	102,046	102,046
Share premium	25,104	25,519
Retained earnings	998,177	1,063,823
Treasury shares	(201,801)	(251,788)
Reserves	(29,347)	40,423
Equity attributable to owners of the Company	894,179	980,022
Non-controlling interests	253,811	273,181
Total equity	1,147,990	1,253,203
Liabilities
Non-current liabilities
Bonds and borrowings	449,970	408,662
Other financial liabilities	145,453	129,662
Defined benefit liability	61,954	58,084
Provisions	4,707	3,292
Liabilities from application of equity method	19,426	15,529
Other non-current liabilities	32,875	27,572
Deferred tax liabilities	10,606	13,564
Total non-current liabilities	724,990	656,365
Current liabilities
Bonds and borrowings	101,502	114,459
Trade and other payables	229,552	265,185
Other financial liabilities	65,907	59,824
Current tax liabilities	22,162	4,611
Provisions	1,901	2,970
Other current liabilities	177,929	177,530
(Sub-total)	598,953	624,579
Liabilities directly associated with assets held for sale	-	8,116
Total current liabilities	598,953	632,695
Total liabilities	1,323,943	1,289,060
Total equity and liabilities	2,471,933	2,542,263

(2) CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND COMPREHENSIVE INCOME CONSOLIDATED STATEMENT OF PROFIT OR LOSS

(¥ millions)

	Year ended December 31, 2021	Year ended December 31, 2022
Revenue	1,821,570	1,989,468
Cost of sales	998,728	1,083,755
Gross profit	822,842	905,713
Selling, general and administrative expenses	657,412	714,554
Normalized operating profit	165,430	191,159
Other operating income	8,239	29,454
Other operating expenses	105,585	104,594
Operating profit	68,084	116,019
Finance income	4,087	10,978
Finance costs	7,044	6,478
Share of profit of equity-accounted investees	34,490	22,780
Gain on sale of equity-accounted investees	-	48,088
Profit before tax	99,617	191,387
Income tax expense	31,193	47,615
Profit	68,424	143,771
Profit attributable to:
Owners of the Company	59,790	111,007
Non-controlling interests	8,634	32,764
Profit	68,424	143,771
Earnings per share (Yen)
Basic earnings per share	71.73	135,08
Diluted earnings per share	71.70	135.07

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(¥ millions)

	Year ended December 31, 2021	Year ended December 31, 2022
Profit	68,424	143,771
Other comprehensive income
Items that will not be reclassified to profit or loss
Net change in equity instruments measured at fair value through other comprehensive income	(1,824)	1,937
Remeasurements of defined benefit plans	6,592	5,126
Share of other comprehensive income of equity-accounted investees	203	694
Items that are or may be reclassified to profit or loss
Foreign currency translation differences on foreign operations	31,843	48,639
Cash flow hedges	1,185	(1,600)
Share of other comprehensive income of equity-accounted investees	10,892	21,269
Total other comprehensive income	48,891	76,065
Comprehensive income	117,316	219,836
Comprehensive income attributable to
Owners of the Company	109,631	189,195
Non-controlling interests	7,685	30,641
Comprehensive income	117,316	219,836

(3) CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Year ended December 31, 2021

(¥ millions)

	Equity attributable to owners of the Company

	Share capital	Share premium	Retained earnings	Treasury shares
Balance at January 1, 2021	102,046	24,940	980,903	(201,783)
Profit	-	-	59,790	-
Other comprehensive income	-	-	-	-
Comprehensive income	-	-	59,790	-
Dividends from surplus	-	-	(54,184)	-
Acquisition of treasury shares	-	-	-	(27)
Disposal of treasury shares	-	(0)	-	1
Share-based payments	-	83	2	7
Changes in the ownership interest in a subsidiary without a loss of control	-	81	-	-
Transfer from reserves to retained earnings	-	-	11,666	-
Other	-	-	-	-
Total transactions with owners of the Company	-	164	(42,516)	(18)
Balance at December 31, 2021	102,046	25,104	998,177	(201,801)

	Equity attributable to owners of the Company
	Reserves
	Net change in equity instruments measured at fair value through other comprehensive income	Remeasurements of defined benefit plans
Balance at January 1, 2021	24,757	-
Profit	-	-
Other comprehensive income	(1,251)	6,137
Comprehensive income	(1,251)	6,137
Dividends from surplus	-	-
Acquisition of treasury shares	-	-
Disposal of treasury shares	-	-
Share-based payments	-	-
Changes in the ownership interest in a subsidiary without a loss of control	-	-
Transfer from reserves to retained earnings	(5,529)	(6,137)
Other	-	-
Total transactions with owners of the Company	(5,529)	(6,137)
Balance at December 31, 2021	17,978	-

	Equity attributable to owners of the Company
	Reserves
	Foreign currency translation differences on foreign operations	Cash flow hedges	Total	Total
Balance at January 1,2021	(91,702)	(577)	(67,522)	838,584
Profit	-	-	-	59,790
Other comprehensive income	43,767	1,187	49,841	49,841
Comprehensive income	43,767	1,187	49,841	109,631
Dividends from surplus	-	-	-	(54,184)
Acquisition of treasury shares	-	-	-	(27)
Disposal of treasury shares	-	-	-	1
Share-based payments	-	-	-	92
Changes in the ownership interest in a subsidiary without a loss of control	-	-	-	81
Transfer from reserves to retained earnings	-	-	(11,666)	-
Other	-	-	-	-
Total transactions with owners of the Company	-	-	(11,666)	(54,036)
Balance at December 31, 2021	(47,935)	610	(29,347)	894,179



	Non-controlling interests	Total equity
Balance at January 1,2021	257,355	1,095,939
Profit	8,634	68,424
Other comprehensive income	(950)	48,891
Comprehensive income	7,685	117,316
Dividends from surplus	(11,182)	(65,366)
Acquisition of treasury shares	-	(27)
Disposal of treasury shares	-	1
Share-based payments	(181)	(89)
Changes in the ownership interest in a subsidiary without a loss of control	104	185
Transfer from reserves to retained earnings	-	-
Other	31	31
Total transactions with owners of the Company	(11,228)	(65,265)
Balance at December 31, 2021	253,811	1,147,990

Year ended December 31, 2022

(¥ millions)

	Equity attributable to owners of the Company

	Share capital	Share premium	Retained earnings	Treasury shares
Balance at January 1, 2022	102,046	25,104	998,177	(201,801)
Profit	-	-	111,007	-
Other comprehensive income		-	-	-
Comprehensive income	-	-	111,007	-
Dividends from surplus	-	-	(53,778)	-
Acquisition of treasury shares	-	-	-	(50,018)
Disposal of treasury shares	-	(0)	-	1
Share-based payments	-	229	(1)	30
Changes in the ownership interest in a subsidiary without a loss of control	-	186	-	-
Transfer from reserves to retained earnings	-	-	8,419	-
Other	-	-	-	-
Total transactions with owners of the Company	-	415	(45,361)	(49,987)
Balance at December 31, 2022	102,046	25,519	1,063,823	(251,788)

	Equity attributable to owners of the Company
	Reserves
	Net change in equity instruments measured at fair value through other comprehensive income	Remeasurements of defined benefit plans
Balance at January 1, 2022	17,978	-
Profit	-	-
Other comprehensive income	1,881	5,386
Comprehensive income	1,881	5,386
Dividends from surplus	-	-
Acquisition of treasury shares	-	-
Disposal of treasury shares	-	-
Share-based payments	-	-
Changes in the ownership interest in a subsidiary without a loss of control	-	-
Transfer from reserves to retained earnings	(3,033)	(5,386)
Other	-	-
Total transactions with owners of the Company	(3,033)	(5,386)
Balance at December 31, 2022	16,826	-

	Equity attributable to owners of the Company
	Reserves
	Foreign currency translation differences on foreign operations	Cash flow hedges	Total	Total
Balance at January 1, 2022	(47,935)	610	(29,347)	894,179
Profit	-	-	-	111,007
Other comprehensive income	72,520	(1,598)	76,188	78,188
Comprehensive income	72,520	(1,598)	78,188	189,195
Dividends from surplus	-	-	-	(53,778)
Acquisition of treasury shares	-	-	-	(50,018)
Disposal of treasury shares	-	-	-	1
Share-based payments	-	-	-	257
Changes in the ownership interest in a subsidiary without a loss of control	-	-	-	186
Transfer from reserves to retained earnings	-	-	(8,419)	-
Other	-	-	-	-
Total transactions with owners of the Company	-	-	(8,419)	(103,352)
Balance at December 31, 2022	24,585	(988)	40,423	980,022



	Noncontrolling interests	Total equity
Balance at January 1, 2022	253,811	1,147,990
Profit	32,764	143,771
Other comprehensive income	(2,124)	76,065
Comprehensive income	30,641	219,836
Dividends from surplus	(11,688)	(65,466)
Acquisition of treasury shares	-	(50,018)
Disposal of treasury shares	-	1
Share-based payments	(196)	62
Changes in the ownership interest in a subsidiary without a loss of control	632	818
Transfer from reserves to retained earnings	-	-
Other	(20)	(20)
Total transactions with owners of the Company	(11,271)	(114,623)
Balance at December 31, 2022	273,181	1,253,203

(4) CONSOLIDATED STATEMENT OF CASH FLOWS

(¥ millions)

	Year ended December 31, 2021	Year ended December 31,2022
Cash flows from operating activities
Profit before tax	99,617	191,387
Depreciation and amortization	81,130	85,937
Impairment losses	77,390	66,200
Gain on reversal of impairment losses	-	(13,152)
Interest and dividends received	(2,718)	(4,497)
Share of profit of equity-accounted investees	(34,490)	(22,780)
Interest paid	4,448	4,894
Gain on sale of property, plant and equipment and intangible assets	(3,061)	(9,512)
Loss on disposal and sale of property, plant and equipment and intangible assets	1,782	4,571
Gain on sale of shares of subsidiaries	(23)	-
Gain on sale of equity-accounted investees	-	(48,088)
(Increase) decrease in trade receivables	(9,106)	(8,455)
(Increase) decrease in inventories	(20,353)	(39,490)
Increase (decrease) in trade payables	3,514	18,384
Increase (decrease) in liquor taxes payable	1,586	(7,383)
Other	32,289	(34,002)
Sub-total	232,004	184,014
Interest and dividends received	21,036	24,731
Interest paid	(4,145)	(4,367)
Income taxes paid	(29,592)	(68,815)
Cash flows from (used in) operating activities	219,303	135,562

(¥ millions)

	Year ended December 31,2021	Year ended December 31, 2022
Cash flows from investing activities
Acquisition of property, plant and equipment and intangible assets	(86,335)	(98,479)
Proceeds from sale of property, plant and equipment and intangible assets	6,977	11,324
Acquisition of investments	(2,907)	(2,425)
Proceeds from sale of investments	22,122	7,884
Acquisition of shares of subsidiaries, net of cash acquired	(45.455)	(46,183)
Proceeds from sale of shares of subsidiaries, net of cash disposed of	42,886	-
Acquisition of equity-accounted investees	(162)	(9,382)
Proceeds from sale of equity-accounted investees	5,101	122,249
Other	1,365	4,612
Cash flows from (used in) investing activities	(56,408)	(10,399)
Cash flows from financing activities
Increase (decrease) in short-term borrowings	4,641	(6,083)
Increase (decrease) in commercial paper	(81,994)	(55,009)
Proceeds from long-term borrowings	1,000	71,851
Repayment of long-term borrowings	(50,000)	(67,612)
Proceeds from issuance of bonds	70,000	20,000
Payment for redemption of bonds	(40,000)	-
Repayment of lease liabilities	(18,420)	(19,387)
Payment for acquisition of treasury shares	(34)	(50,040)
Payment for acquisition of treasury shares by a consolidated subsidiary	(23)	(11)
Proceeds from settlement of derivatives	-	4,072
Dividends paid	(54,184)	(53,778)
Dividends paid to non-controlling interests	(11,182)	(11,688)
Other	(266)	(151)
Cash flows from (used in) financing activities	(180,463)	(167,835)
Effect of exchange rate changes on cash and cash equivalents	5,388	6,728
Net increase (decrease) in cash and cash equivalents	(12,180)	(35,944)
Cash and cash equivalents at beginning of year	161,667	149,488
Net increase (decrease) in cash and cash equivalents resulting from transfers to assets held for sale	-	(25,484)
Cash and cash equivalents at end of year	149,488	88,060

(5) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(GOING CONCERN ASSUMPTION)

There are no matters to report under this item.

(CHANGES IN ACCOUNTING ESTIMATES)

(Bio-chemicals business)

In light of a decline in profitability due to the impact of an increase in raw material and fuel prices globally caused by the COVID-19 pandemic and the emergence of geopolitical risks, an impairment test was performed for certain business assets related to the Bio-chemicals business. As a result, 42,957 million yen of impairment losses for non-current assets of the Bio-chemicals business was recognized for the year ended December 31, 2022. The recoverable amount was measured at value in use which was calculated considering past experience and external information, and discounting the forecast five-year cash flows based on the management approved business plan to the present value.

(Alcoholic Beverages business in Myanmar)

Since there was an indication from the share transfer process that the amount of impairment losses recognized in prior years related to the Alcoholic Beverages business in Myanmar had decreased, the recoverable amount of the Alcoholic Beverages business in Myanmar was estimated at December 31, 2022. As a result, a gain of 12,921 million yen on reversal of impairment losses for non-current assets (excluding goodwill) of the Alcoholic Beverages business in Myanmar was recognized for the year ended December 31, 2022. The recoverable amount was measured at fair value less costs of disposal which was calculated based on the share transfer price mutually agreed in the transfer process.

(SEGMENT INFORMATION)

(1) Summary of reportable segments

The reportable segments of the Group are determined based on the operating segments which are constituent units of the Group whose separate financial information is readily available, and which are periodically examined by the Board of Directors for the purpose of deciding the allocation of management resources and evaluating the business results. The Group has identified four reportable segments, namely, "Japan Beer and Spirits Businesses," "Japan Non-alcoholic Beverages Business," "Oceania Adult Beverages Business" and "Pharmaceuticals Business."

"Japan Non-alcoholic Beverages Business," for which Kirin Beverage Company, Limited oversees the operations, conducts production and sale of soft drinks in Japan.

"Oceania Adult Beverages Business,'' for which Lion Pty Limited oversees the operations, conducts production and sale of beer, whiskey, spirits and other products in the Oceania region.

"Pharmaceuticals Business," for which Kyowa Kirin Co., Ltd. oversees the operations, conducts production and sale of pharmaceutical products.

Accounting policies for segment information are generally the same as those in the Company's consolidated financial statements.

Inter-segment revenue is based on actual market prices.

(2) Information on reportable segments

Information related to each reportable segment is set out below.

At and for the fiscal year ended December 31, 2021

(¥ millions)

	Reportable segment
	Japan Beer and Spirits	Japan Nonalcoholic Beverages	Oceania Adult Beverages	Pharmaceuticals	Others (Note 1)	Adjustment (Note 2)	Consolidated
Revenue from unaffiliated customers	661,326	244,386	216.258	351,696	347,902	-	1,821,570
Inter-segment revenue	1,784	2,208	55	550	70,293	(74,890)	--
Total revenue	663,111	246,594	216,314	352,246	418,196	(74,890)	1,821,570
Segment income (Note 3)	70,541	21,099	26,562	61,197	31,334	(45,303)	165,430
						Other operating income	8,239
						Other operating expenses	105,585
						Finance income	4,087
						Finance costs	7,044
						Share of profit of equity- accounted investees	34,490
						Profit before tax	99,617

(¥ millions)

	Reportable segment
	Japan Beer and Spirits	Japan Nonalcoholic Beverages	Oceania Adult Beverages	Pharmaceuticals
Segment assets	432,806	139,176	475,861	862,091
Other items
Depreciation and amortization	15,053	7,100	13,337	19,341
Impairment losses (excluding financial assets)	-	70	624	5,286
Equity-accounted investees	13,343	-	8,837	-
Capital expenditures	24,739	7,212	13,298	29,258


	Others (Note 1)	Adjustment (Note 2)	Consolidated
Segment assets	859,811	(297,812)	2,471,933
Other items
Depreciation and amortization	20,021	6,279	81,130
Impairment losses (excluding financial assets)	69,679	1,730	77,390
Equity-accounted investees	377,188	-	399,367
Capital expenditures	25,959	18,522	118,987

Notes: 1. "Others" mainly includes the Wine business in Japan, the Non-alcoholic Beverage business in North America, and the Bio-chemicals business.

2. Adjustments are as follows:

(1)	Adjustment in segment income mainly includes Inter-segment eliminations and corporate expenses not attributable to any reportable segment. The expenses are mainly group administrative expenses incurred in the Company, a holding company, and administrative expenses relating to some reportable segments incurred in shared services companies.
(2)	Adjustment in segment assets includes inter-segment asset and liability eliminations and corporate assets not attributable to any reportable segment. The assets mainly consist of surplus funds (cash), long-term investments (equity instruments) and assets of the administrative department of the Company, a holding company, and shared services companies.

3 . Segment income represents normalized operating profit which is calculated by deducting the total of cost of sales and selling, general and administrative expenses from revenue.

At and for the fiscal year ended December 31, 2022

(¥ millions)

	Reportable segment
	Japan Beer and Spirits	Japan Nonalcoholic Beverages	Oceania Adult Beverages	Pharmaceuticals
Revenue from unaffiliated customers	663,522	243,257	255,900	397,863
Inter-segment revenue	1,976	2,513	91	507
Total revenue	665,498	245,770	255,991	398,371
Segment income (Note 3)	74,660	18,786	31,545	82,462


	Others (Note 1)	Adjustment (Note 2)	Consolidated
Revenue from unaffiliated customers	428,925	-	1,989,468
Inter-segment revenue	74,819	(79,907)	-
Total revenue	503,744	(79,907)	1,989,468
Segment income (Note 3)	37,545	(53,838)	191,159
		Other operating income	29,454
		Other operating expenses	104,594
		Finance income	10,978
		Finance costs	6,478
		Share of profit of equity- accounted investees	22,780
		Gain on sale of equity-accounted investees	48,088
		Profit before tax	191,387

(¥ millions)

	Reportable segment
	Japan Beer and Spirits	Japan Nonalcoholic Beverages	Oceania Adult Beverages	Pharmaceuticals
Segment assets	432,140	133,184	546,729	880,281
Other items
Depreciation and amortization	16,409	6,982	15,106	18,319
Impairment losses (excluding financial assets)	-	-	3,525	17,979
Gain on reversal of impairment losses	-	-	231	-
Equity-accounted investees	10,090	-	8,960	-
Capital expenditures	17,940	9,326	13,107	33,298


	Others (Note 1)	Adjustment (Note 2)	Consolidated
Segment assets	885,775	(335,845)	2,542,263
Other items
Depreciation and amortization	18,922	10,199	85,937
Impairment losses (excluding financial assets)	44,696	-	66,200
Gain on reversal of impairment losses	12,921	-	13,152
Equity-accounted investees	342,714	-	361,764
Capital expenditures	30,421	12,708	116,799

Notes: 1. "Others" mainly includes the Wine business in Japan, the Non-alcoholic Beverage business in North America, and the Bio-chemicals business.

2. Adjustments are as follows:

(1)	Adjustment in segment income mainly includes inter-segment eliminations and corporate expenses not attributable to any reportable segment. The expenses are mainly group administrative expenses incurred in the Company, a holding company, and administrative expenses relating to some reportable segments incurred in shared services companies.
(2)	Adjustment in segment assets includes inter-segment asset and liability eliminations and corporate assets not attributable to any reportable segment. The assets mainly consist of surplus funds (cash), long-term investments (equity instruments) and assets of the administrative department of the Company, a holding company, and shared services companies.

3. Segment income represents normalized operating profit which is calculated by deducting the total of cost of sales and selling, general and administrative expenses from revenue.

(3) Geographic information

1) Revenue

(¥ millions)

	Year ended December 31, 2021	Year ended December 31,2022
Japan	1,167,445	1,159,427
Oceania	175,048	184,343
America	318,221	459,346
Others	160,856	186,353
Total	1,821,570	1,989,468

Note: Revenue is classified by country or area based on customer location.

2) Non-current assets

(¥ millions)

	At December 31,2021	At December 31, 2022
Japan	510,385	486,545
Oceania	277,730	300,413
America	119,266	202,612
Others	90,626	67,572
Total	998,008	1,057,142

Note: Non-current assets exclude financial instruments, deferred tax assets and defined benefit assets.

(4) Major customer

The unaffiliated customer which accounted for 10 % or more of revenue on the consolidated statement of profit or loss was as follows:

(¥ millions)

	Related segment	Year ended December 31, 2021	Year ended December 31, 2022
Mitsubishi Shokuhin Co., Ltd.	Japan Beer and Spirits, Japan Non-alcoholic Beverages, and others	225,518	220,074

(PER SHARE INFORMATION)

(1) Basis of calculation of basic earnings per share

The basis of calculation of basic earnings per share was as follows:

1)	Profit attributable to ordinary shareholders of the Company (basic)

(¥ millions)

	Year ended December 31, 2021	Year ended December 31,2022
Profit attributable to owners of the Company	59,790	111,007
Profit not attributable to ordinary shareholders of the Company	-	-
Profit attributable to ordinary shareholders of the Company	59,790	111,007

2) Weighted-average number of ordinary shares (basic)

(Thousands of shares)

-	Year ended December 31,2021	Year ended December 31, 2022
Weighted-average number of ordinary shares	833,599	821,755

(2) Basis of calculation of diluted earnings per share

1) Profit attributable to ordinary shareholders of the Company (diluted)

(¥ millions)

	Year ended December 31,2021	Year ended December 31, 2022
Profit attributable to ordinary shareholders of the Company	59,790	111,007
Adjustments for potential ordinary shares issued by subsidiary	(18)	(15)
Profit attributable to ordinary shareholders of the Company (diluted)	59,772	110,992

2) Weighted-average number of ordinary shares (diluted)

(Thousands of shares)

	Year ended December 31,2021	Year ended December 31, 2022
Weighted-average number of ordinary shares (basic)	833,599	821,755
Effect of dilution	-	-
Weighted-average number of ordinary shares (diluted)	833,599	821,755

(SIGNIFICANT SUBSEQUENT EVENTS)

(Share Transfer of Alcoholic Beverages Business in Myanmar)

Kirin reached an agreement with Myanma Economic Holdings Public Company Limited (MEHPCL), a joint venture partner of its consolidated subsidiaries, Myanmar Brewery Limited (MBL) and Mandalay Brewery Limited (MDL), to transfer all shares of MBL and MDL held by Kirin Holdings Singapore Pte (KHSPL), a subsidiary of Kirin Holdings, representing 51 % of MBL and MDL's outstanding shares, and completed the share transfer in a share buyback transaction on January 23, 2023.

The total share transfer price is approximately 20.5 billion yen and approximately 19.0 billion yen of loss on sale of shares of subsidiaries is expected to be recognized for the three months ending March 31, 2023.

Assets and liabilities of the Alcoholic Beverages business in Myanmar at the end of the year were transferred to assets held for sale and liabilities directly associated with assets held for sale, respectively.

Changes of Directors and Board Members

Kirin Holdings Company, Limited hereby announces the changes of Directors and Board Members as follows (Scheduled at the end of March 2023).

1. Changes of Representatives

(1) New Representative Director

None

(2) Retiring Representative Director

None

Note: Yoshinori Isozaki (President & CEO) and Keisuke Nishimura (Representative Director of the Board, Executive Vice President) are scheduled to be reappointed.

2. Changes of Other Directors of the Board

(1) New Director of the Board

Name	New appointment	Current tittle
Junko Tsuboi	Director of the Board, Senior Executive Officer of Kirin Holdings	Senior Executive Officer of Kirin Holdings
Shinya Katanozaka	Non-executive Director of the Board of Kirin Holdings	Chairman of the Board of Directors, ANA HOLDINGS INC.

(2) Retiring Director of the Board

Name	New appointment	Current tittle
Noriya Yokota	Retirement	Director of the Board, Senior Executive Officer of Kirin Holdings
Kaoru Kato	Retirement	Non-executive Director of the Board of Kirin Holdings

Note: (i) Toshiya Miyoshi, Takeshi Minakata; and (ii) Masakatsu Mori, Hiroyuki Yanagi, Chieko Matsuda, Noriko Shiono, Rod Eddington, George Olcott are scheduled to be reappointed as (i) Director of the Board, Senior Executive Officer, and (ii) Non-executive Director of the Board, respectively.

3. Changes of Audit & Supervisory Board Members

(1) New Audit & Supervisory Board Members

Name	New appointment	Current tittle
Toru Ishikura	Standing Audit & Supervisory Board Member of Kirin Holdings	Executive Officer, General Manager of Health Science Business Department, Health Science Business Division of Kirin Holdings

(2) Retiring Audit & Supervisory Board Members

Name	New appointment	Current tittle
Keiji Kuwata	Retirement	Standing Audit & Supervisory Board Member of Kirin Holdings

Note: Shobu Nishitani as Standing Audit & Supervisory Board Member, and Kaoru Kashima and Kenichi Fujinawa as Audit & Supervisory Board Member are during their term of office, and Yoshiko Ando are scheduled to be reappointed as Audit & Supervisory Board Member.

Profile of candidates for the new Director of the Board

Junko Tsuboi

Date of birth:	August 8, 1962
Experience:
March 2022-present	Senior Executive Officer of Kirin Holdings Company, Limited
June 2020-present	Non-executive Director of the Board, FANCL CORPORATION
March 2019	Senior Executive Officer, General Manager of Strategic Branding Department of Kirin Holdings Company, Limited
March 2014	Executive Officer, General Manager of Strategic Branding Department, CSV Division of Kirin Company, Limited
January 2013	General Manager of Strategic Branding Department, CSV Division of Kirin Company, Limited
November 2012	General Manager of Corporate Communications Department of Kirin Holdings Company, Limited
March 2012	General Manager of CSR Promotion Department And Corporate Communications Department of Kirin Holdings Company, Limited
March 2010	Director of the Board, President and CEO of Yokohama Akarenga Inc..
March 2005	General Manager of Corporate Communications Department of Kirin Beverage Company, Limited
April 1985	Joined Kirin Brewery Company, Limited

Shinya Katanozaka

Date of birth:	July 4, 1955
Experience:
April 2022-present	Chairman of the Board of Directors, ANA HOLDINGS INC.
June 2020-present	Outside Director, Tokio Marine Holdings, Inc.
April 2017	Chairman, ALL NIPPON AIRWAYS CO., LTD
April 2015	Representative Director, President & Chief Executive Officer, ANA HOLDINGS INC.
April 2013	Representative Director, Senior Executive Vice President, ANA HOLDINGS INC.
June 2009	Member of the Board of Directors, Executive Vice President, ALL NIPPON AIRWAYS CO., LTD.
April 2007	Executive Vice President, ALL NIPPON AIRWAYS CO., LTD.
April 2004	Director of Personnel, ALL NIPPON AIRWAYS CO., LTD.
April 1979	Joined ALL NIPPON AIRWAYS CO., LTD.

Profile of candidate for the new Audit & Supervisory Board Member

Toru Ishikura

Date of birth:	November 30, 1963
Experience:
April 2022-present	Executive Officer, General Manager of Health Science Business Department , Health Science Business Division of Kirin Holdings
April 2020	Executive Officer, General Manager of Health Business Strategy Office , Corporate Strategy Department of Kirin Holdings
March 2020	Director of the Board, Kyowa Hakko Bio Co., Ltd.
April 2019	Executive Officer, Vice President of Research & Development Division and General Manager of Research & Development Strategy Department of Kirin Holdings.
March 2018	Executive Officer, General Manager of Research & Development Strategy Department of Research & Development Division of Kirin Company, Limited
April 2015	General Manager of Research & Development Strategy Department of Research & Development Division of Kirin Company, Limited
March 2015	Deputy General Manager of Technology Management Department of Research & Development Division of Kirin Company, Limited
April 1989	Joined Kirin Brewery Company, Limited

Supplementary Documents to the Consolidated Financial Statements for the Year Ended December 31,2022

1. Summary of Consolidated Statement of Financial Position

2. Summary of Consolidated Statement of Profit or Loss, Indices, etc.

3. Revenue Details

4. Profit Details

5. Summary of Consolidated Statement of Cash Flows

1. SUMMARY OF CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(¥ billions)

	As of December 31, 2022, Actual	As of December 31, 2021, Actual	Increase (decrease)	Description of changes
Non-current assets	1,655.2	1,645.3	9.9
Property, plant and equipment	560.6	533,9	26.8
Goodwill	289.5	264.2	25.3
Intangible assets	200.9	196.3	4.6
Equity-accounted investees	361.8	399.4	(37.6)
Other	242.4	251.5	(9.1)
Current assets	887.0	826,6	60.4
Inventories	290.2	247.2	42.9
Trade and other receivables	409.2	387.9	21,2
Cash and cash equivalents	88.1	149.5	(61.4)	Transfer to assets held for sale. Decrease in funds for acquisition of subsidiary , etc.
Other	99.6	42.0	57.6	Assets held for sale, etc.
Total assets	2,542.3	2,471.9	70.3
Equity	1,253.2	1,148.0	105.2
Equity attributable to owners of the Company	980.0	894.2	85.8	Increase in foreign currency translation differences arising from depreciation of yen, etc.
Non-controlling interests	273.2	253.8	19.4
Non-current liabilities	656.4	725.0	(68.6)
Bonds and borrowings	408.7	450.0	(41.3)
Other	247.7	275.0	(27.3)
Current liabilities	632.7	599.0	33.7
Bonds and borrowings	114.5	101.5	13.0
Trade and other payables	265,2	229.6	35.6
Other	253.1	267.9	(14.8)
Total liabilities	1,289.1	1,323.9	(34.9)
Total equity and liabilities	2,542.3	2,471.9	70.3

2.SUMMARY OF CONSOLIDATED STATEMENT OF PROFIT OR LOSS, INDICES, etc.

(1) Summary of Statement of Profit or Loss, Indices, etc.

(¥ billions)

	Year ended December 31, 2022, Actual	Year ended December 31, 2021, Actual	Increase (decrease)
Revenue	1,989.5	1,821.6	167.9	9.2 %
Gross profit	905.7	822.8	82.9	10.1 %
Selling, general and administrative expenses	714.6	657.4	57.1	8.7 %
Normalized operating profit	191.2	165.4	25.7	15.6 %
Other operating income	29.5	8.2	21.2	257.5 %
Other operating expenses	104.6	105.6	(1.0)	(0.9 %)
Operating profit	116.0	68.1	47.9	70.4 %
Finance income	11.0	4,1	6.9	168.6 %
Finance costs	6.5	7.0	(0.6)	(8.0 %)
Share of profit of equity-accounted investees	22.8	34.5	(11.7)	(34.0 %)
Gain on sale of equity-accounted investees	48.1	-	48.1	-
Profit before tax	191,4	99.6	91.8	92.1 %
Income tax expense	47.6	31.2	16.4	52.6 %
Profit	143.8	68.4	75.3	110.1 %
Owners of the Company	111.0	59.8	51.2	85.7 %
Non-controlling interests	32.8	8.6	24.1	279.5 %
ROIC	8.5 %	4.2 %
Normalized EPS	¥171	¥156	¥15	9.6 %
Revenue (excluding liquor tax)	1,705.0	1,536.0	169.1	11.0 %
Normalized operating profit ratio (excluding liquor tax)	11.2 %	10.8 %
ROE	11.8 %	6.9 %
Normalized EBITDA	277.7	245,9	31.8	12.9 %
Gross Debt Equity Ratio	0.53	0.62

(Reference) Indices excluding the impact of fluctuation in exchange rate ^*

	Year ended December 31, 2022, Actual
Normalized operating profit	171.3
ROIC	7,8 %
Normalized EPS	¥153

^* Converted foreign currency amounts of the actual results at the exchange rate of the initial forecast announced on February 14, 2022.

ROIC= Profit after tax before interest / (Average total interest-bearing liabilities at beginning and end of the period + Average total equity at beginning and end of the period)

Normalized EPS = Normalized profit / Average number of shares outstanding during period

Normalized profit = Profit attributable to Owners of the Company ± Other operating income and expenses and other items after income taxes

Normalized EBITDA = Normalized operating profit + Depreciation and amortization ^* + Dividends received from equity-accounted investees

^* Depreciation and amortization exclude those from right-of-use assets.

(2) Exchange Rate for the Consolidation of Profit or Loss of the Major Overseas Companies

(¥)

	Year ended December 31,2022, Actual	Year ended December 31,2021, Actual
Lion (AUD)	91.18	82.67
Coke Northeast (USD)	132.08	110.37

(3) Period for the Consolidation of Profit or Loss of the Major Overseas Company

	Year ended December 31, 2022, Actual	Year ended December 31,2021, Actual
San Miguel Brewery	From October 2021 to September 2022	From October 2020 to September 2021

3. REVENUE DETAILS

(1) Revenue Details

(¥ billions)

	Year ended December 31,2022, Actual	Year ended December 31, 2021, Actual	Increase (decrease)
Revenue	1,989.5	1,821.6	167.9	9.2 %
Japan Beer and Spirits	663.5	661.3	2.2	0.3 %
Kirin Brewery	635.1	638.3	(3.2)	(0.5 %)
Other and elimination	28.4	23.0	5.4	23.5 %
Japan Non-alcoholic Beverages	243.3	244,4	(1.1)	(0.5 %)
Kirin Beverage	245.8	246.6	(0.8)	(0.3 %)
Elimination	(2.5)	(2.2)	(0.3)	-
Oceania Adult Beverages	255.9	216,3	39.6	18.3 %
Lion	256.0	216.3	39.7	18.3 %
Elimination	(0.1)	(0,1)	(0,0)	-
Pharmaceuticals	397.9	351.7	46.2	13.1 %
Kyowa Kirin	398.4	352.2	46.1	13.1 %
Elimination	(0.5)	(0.5)	0.0	-
Other	428.9	347.9	81.0	23.3 %
Mercian	60.5	57,9	2.6	4.5 %
Coke Northeast	216.2	154,9	61.3	39.6 %
Kyowa Hakko Bio	51.1	53,0	(2.0)	(3.7 %)
Other and elimination	101.2	82.1	19.1	23.2 %

Myanmar Brewery is included in 'Other and elimination' in 'Other' from 2022.

(Reference) Revenue excluding liquor tax

(¥ billions)

	Year ended December 31,2022, Actual	Year ended December 31, 2021, Actual
Kirin Brewery	373,0	371.3

(2) Sales Volume Details of Major Business Companies

a. Kirin Brewery

	Year ended December 31, 2022		Year ended December 31,2021
	Actual	Increase (decrease)	Actual	Increase (decrease)
Sales volume	Thousand KL		Thousand KI.
Beer	492	3.7 %	475	4,1 %
Happo-shu	367	(5.3 %)	387	0.9 %
New genre	673	(5.1 %)	709	(11.2 %)
Sub-total	1,532	(2.5 %)	1,571	(4.1 %)
RTD	435	(3.3 %)	449	4.7 %
Non-alcohol beverages	46	(6.9 %)	49	10.9 %

The above sales volume excludes exports and liquor tax exempts.

b. Kirin Beverage Group

	Year ended December 31. 2022		Year ended December 31, 2021
	Actual	Increase (decrease)	Actual	Increase (decrease)
Category	10,000 cases		10,000 cases
Black tea	5,177	3.7 %	4,991	(1.4 %)
Japanese tea	3,061	(1.4 %)	3,104	(4.7 %)
Coffee	2,461	(4.8 %)	2,585	10.7 %
Fruit and vegetable juice	2,280	(5.3 %)	2,407	4.0 %
Carbonated beverage	1,232	(6.2 %)	1,313	(14.2 %)
Water	3,214	(12,5 %)	3,673	(11.9 %)
Other	2,868	6,2 %	2,702	(2.5 %)
Total	20,293	(2.3 %)	20,775	(3.1 %)
Container Type
Can	2.319	(4.2 %)	2,421	(7.0 %)
Large-sized PET bottles (2L, 1.5L, etc.)	6,182	(8.1 %)	6,726	(11.8 %)
Small-sized PET bottles (500ml, 280ml, etc.)	9,905	1.8 %	9,726	3.3 %
Other	1,887	(0.8 %)	1,903	5.9 %
Total	20,293	(2.3 %)	20,775	(3.1 %)
Domain
Food & Beverage domain	18,194	(2.9 %)	18,739	(5.1 %)
Health science domain	2,099	3.1 %	2,036	20.9 %
Lactococcus lactis strain Plasma	660	26.2 %	523	65.1 %
Total	20,293	(2.3 %)	20,775	(3.1 %)

'Functional beverage' is included in 'Other' in 'Category' from 2022.

4. PROFIT DETAILS

(1) Normalized Operating Profit Details

(¥ billions)

	Year ended December 31, 2022, Actual	Year ended December 31, 2021, Actual	Increase (decrease)
Normalized operating profit	191.2	165.4	25.7	15,6 %
Japan Beer and Spirits	74.7	70.5	4.1	5.8 %
Kirin Brewery	71.5	68.0	3.5	5.2 %
Others	3.1	2.6	0,6	22.7 %
Japan Non-alcoholic Beverages	18.8	21.1	(2.3)	(11.0 %)
Kirin Beverage	18.8	21.1	(2.3)	(11.0 %)
Oceania Adult Beverages	31.5	26.6	5.0	18.8 %
Lion	31.5	26.6	5.0	18.8 %
Pharmaceuticals	82,5	61.2	21.3	34.7 %
Kyowa Kirin	82.5	61.2	21.3	34.7 %
Other	37.5	31.3	6.2	19.8 %
Mercian	(0.6)	2.3	(2.9)	-
Coke Northeast	26.3	16.5	9.8	59.3 %
Kyowa Hakko Bio	(3.9)	0.4	(4.2)	-
Others	15.7	12.2	3.5	28.8 %
Corporate expenses and inter-segment eliminations	(53,8)	(45.3)	(8.5)	-

Each normalized operating profit in each segment is calculated by adding back management fees paid to the Company to normalized operating profit.

'Myanmar Brewery' is included in 'Others' in 'Other' from 2022.

(2) Normalized Operating Profit Breakdown of Major Business Companies

(¥ billions)

Company name	Major factors	Increase (decrease)	Description
Kirin Brewery	Increase in marginal profit of alcohol beverages, etc.	0.7	Total beer products (4.0)
			Sales increase in beer 18 thousand KL
			Sales decrease in happo-shu (21) thousand KL
			Sales decrease in new genre (36) thousand KL
			Total other than beer products (0.3)
			Sales decrease in RTD (15) thousand KL
			Sales decrease in non-alcohol beverages (3) thousand KL, etc.
			Impact of price revision and difference of change in composite of products, etc. 5.0
	Increase in raw material cost of alcohol beverages	(5.7)	Increase in market prices, etc.
	Decrease in selling expenses	8.9	Increase in sales promotion (1.9), decrease in advertising 10.9 (Total 66.5->57.6)
	Increase in other expenses	(0.4)	Increase in electricity and fuel prices, etc.
Total		3.5
Kirin Beverage	Increase in marginal profit of soft drink beverages	1.9	Decrease in sales volume (4.83) million cases (2.2) Difference of change in products mix and composition ratio of containers, etc. 4.1
	Increase in raw material cost, etc.	(8.0)	Increase in raw material cost (4.4), increase in material cost (1.8), Increase in processing cost (1.8)
	Decrease in selling expenses	4.2	Decrease in sales promotion 2.9, decrease in advertising 1.3 (Total 27.2 → 23.0)
	Increase in other expenses	(0.4)
Total		(2.3)

(3) Other Operating Income and Other Operating Expenses

(¥ billions)

	Year ended December 31, 2022, Actual	Year ended December 31, 2021, Actual	Increase (decrease)
Other operating income	29.5	8.2	21.2
Gain on sale of property, plant and equipment and intangible assets	9.5	3.1	6.5
Gain on sale of shares of subsidiaries	-	0.0	(0.0)
Gain on reversal of impairment losses	13.2	-	13.2
Other	6.8	5.2	1.6
Other operating expenses	104.6	105.6	(1.0)
Impairment losses	66.2	77.4	(11.2)
Business restructuring expenses	0.7	2.0	(1,3)
Software development expenses	7.1	14.8	(7.7)
Loss on disposal and sale of property, plant and equipment and intangible assets	5.0	2.0	3.0
Other	25.5	9.3	16.2

(4) Finance Income, Finance Costs, Share of Profit of Equity-accounted Investees, etc.

(¥ billions)

	Year ended December 31, 2022, Actual	Year ended December 31, 2021, Actual	Increase (decrease)
Finance income	11.0	4.1	6.9
Interest income	4.0	2.0	2.0
Dividend income	0.5	0.7	(0.2)
Foreign exchange gains (net)	5.3	0.9	4.4
Other	1.2	0.5	0.7
Finance costs	6.5	7.0	(0.6)
Interest paid	4.9	4.4	0.4
Change in the fair value of contingent consideration	0.7	1.3	(0.6)
Other	0.9	1.3	(0.4)
Share of profit of equity-accounted investees	22.8	34.5	(11.7)
San Miguel Brewery	25.4	21.7	3.7
Others	(2.7)	12.8	(15.4)
Gain on sale of equity-accounted investees	48.1	-	48.1

5. SUMMARY OF CONSOLIDATED STATEMENT OF CASH FLOWS

(1) Summary of Statement of Cash Flows

(¥ billions)

	Year ended December 31, 2022, Actual	Year ended December 31, 2021, Actual	Increase (decrease)
Cash flows from operating activities	135.6	219.3	(83.7)
Profit before tax	191.4	99.6	91.8
Depreciation and amortization	85.9	81.1	4.8
Other	(141.8)	38.6	(180.3)
Cash flows from investing activities	(10.4)	(56.4)	46.0
Acquisition of property, plant and equipment and intangible assets	(98.5)	(86.3)	(12.1)
Other	88.1	29.9	58.2
Cash flows from financing activities	(167.8)	(180.5)	12.6
Increase (decrease) in interest-bearing liabilities	(36.9)	(96.4)	59.5
Dividends paid	(65.5)	(65.4)	(0.1)
Other	(65.5)	(18.7)	(46.8)
Exchange rate changes.	6.7	5.4	1.3
Net increase (decrease) in cash and cash equivalents	(35.9)	(12.2)	(23.8)
Net increase (decrease) in cash and cash equivalents resulting from transfers to assets held for sale	(25.5)	-	(25.5)

(2) Information by Segment

As of December 31, 2022, Actual

(¥ billions)

	Japan Beer and Spirits	Japan Non-alcoholic Beverages	Oceania Adult Beverages	Pharmaceuticals	Others	Adjustment	Total
Depreciation and amortization	13.1	6.3	11.9	14.5	14.8	5.7	66.3
Acquisition of property, plant and equipment and intangible assets	16.9	6.4	11.5	28.5	26.7	8.5	98.5
Normalized EBITDA	87.7	25.0	43.4	97.0	72.6	(48.1)	277.7

Depreciation and amortization exclude those from right-of-use assets.

As of December 31, 2021, Actual

(¥ billions)

	Japan Beer and Spirits	Japan Non-alcoholic Beverages	Oceania Adult Beverages	Pharmaceuticals	Others	Adjustment	Total
Depreciation and amortization	12.4	6.3	10.3	15.9	16.2	1.3	62.4
Acquisition of property, plant and equipment and intangible assets	17.4	8.0	9.3	19.3	18.5	13.9	86.3
Normalized EBITDA	82.9	27.4	36.8	77.1	65.5	(44.0)	245.9

Depreciation and amortization exclude those from right-of-use assets.

Supplementary Documents to the Forecast Consolidated Business Results for the Year Ending December 31, 2023

1. Summary of Consolidated Statements of Profit or Loss, Indices, etc.

2. Revenue Details

3. Profit Details

4. Information by Segment

1. SUMMARY OF CONSOLIDATED STATEMENT OF PROFIT OR LOSS, INDICES, etc.

(1) Summary of Statement of Profit or Loss, Indices, etc.

(¥ billions)

	Year ending December 31, 2023, Forecast	Year ended December 31, 2022, Actual	Increase (decrease)
Revenue	2,115.0	1,989.5	125.5	6.3 %
Normalized operating profit	192.0	191.2	0.8	0.4 %
Other operating income	19.4	29.5	(10.0)	(34.0 %)
Other operating expenses	42.4	104.6	(62.2)	(59.4 %)
Operating profit	169.0	116.0	53.0	45.7 %
Finance income	4.2	11.0	(6.8)	(62.2 %)
Finance costs	5.8	6.5	(0.7)	(10.1 %)
Share of profit of equity-accounted investees	28.7	22.8	5.9	25.9 %
Gain on sale of equity-accounted investees	-	48.1	(48.1)	-
Profit before tax	196.0	191.4	4.6	2.4 %
Income tax expense	47.5	47.6	(0.1)	(0.2 %)
Profit	148.5	143.8	4,7	3.3 %
Owners of the Company	113.0	111.0	2,0	1.8 %
Non-controlling interests	35.5	32.8	2.7	8.3 %
ROIC	8.5 %	8.5 %
Normalized EPS	¥171	¥171	-	-
Revenue (excluding liquor tax)	1,824.0	1,705.0	119.0	7.0 %
Normalized operating profit ratio (excluding liquor tax)	10.5 %	11.2 %
ROE	11.2 %	11.8 %
Normalized EBITDA	286.7	277.7	9.0	3.3 %
Gross Debt Equity Ratio	0.50	0.53

ROIC = Profit after tax before interest / (Average total interest-bearing liabilities at beginning and end of the period + Average total equity at beginning and end of the period)

Normalized EPS = Normalized profit / Average number of shares outstanding during period

Normalized profit = Profit attributable to Owners of the Company ± Other operating income and expenses and other items after income taxes

Normalized EBITDA= Normalized operating profit + Depreciation and amortization ^* + Dividends received from equity-accounted investees

^* Depreciation and amortization exclude those from right-of-use assets.

(2) Exchange Rate for the Consolidation of Profit or Loss of the Major Overseas Companies

(¥)

	Year ending December 31, 2023, Forecast	Year ended December 31, 2022, Actual
Lion (AUD)	90.00	91.18
Coke Northeast (USD)	130.00	132.08

(3) Period for the Consolidation of Profit or Loss of the Major Overseas Company

	Year ending December 31, 2023, Forecast	Year ended December 31, 2022, Actual
San Miguel Brewery	From October 2022 to September 2023	From October 2021 to September 2022

2. REVENUE DETAILS

(1) Revenue Details

(¥ billions)

	Year ending December 31, 2023, Forecast	Year ended December 31, 2022, Actual	Increase (decrease)
Revenue	2.115.0	1,989.5	125.5	6.3 %
Japan Beer and Spirits	709.3	663.5	45.7	6.9 %
Kirin Brewery	675.3	635.1	40.2	6.3 %
Other and elimination	34.0	28.4	5.5	19.5 %
Japan Non-alcoholic Beverages	271,7	243.3	28.4	11.7 %
Kirin Beverage	274.1	245.8	28.4	11.5 %
Elimination	(2.5)	(2.5)	0.1	-
Oceania Adult Beverages	284.3	255.9	28.4	11.1 %
Lion	284.3	256.0	28.3	11.1 %
Elimination	(0.0)	(0.1)	0.1	-
Pharmaceuticals	425.2	397.9	27.4	6.9 %
Kyowa Kirin	426.0	398.4	27.6	6.9 %
Elimination	(0.8)	(0.5)	(0.3)	-
Other	424,6	428.9	(4.4)	(1.0 %)
Mercian	65.5	60.5	5.0	8.2 %
Coke Northeast	218.4	216,2	2.2	1.0 %
Kyowa Hakko Bio	62.8	51.1	11.8	23.1 %
Other and elimination	77.9	101.2	(23.3)	(23.1 %)

(Reference) Revenue excluding liquor tax

(¥ billions)

	Year ending December 31, 2023, Forecast	Year ended December 31, 2022, Actual
Kirin Brewery	407.5	373.0

(2) Sales Details of Major Business Companies

a. Kirin Brewery

	Year ending December 31, 2023		Year ended December 31, 2022
	Forecast	Increase (decrease)	Actual	Increase (decrease)
Sales volume	Thousand KL		Thousand KL
Beer	537	9.1 %	492	3.7 %
Happo-shu	350	(4.7 %)	367	(5.3 %)
New genre	626	(7.0 %)	673	(5.1 %)
Sub-total	1,513	(1.3 %)	1,532	(2.5 %)
RTD	444	2.1 %	435	(3.3 %)
Non-alcohol beverages	53	15.4 %	46	(6.9 %)

The above sales volume excludes exports and liquor tax exempts.

b.Kirin Beverage Group

	Year ending December 31, 2023		Year ended December 31, 2022
	Forecast	Increase (decrease)	Actual	Increase (decrease)
Category	10,000 cases		10,000 cases
Black tea	5,612	8.4 %	5,177	3.7 %
Japanese tea	3,423	11.8 %	3,061	(1.4 %)
Coffee	2,515	2.2 %	2,461	(4.8 %)
Fruit and vegetable juice	2,192	(3.9 %)	2,280	(5.3 %)
Carbonated beverage	1,331	8.1 %	1,232	(6.2 %)
Water	2,616	(18.6 %)	3,214	(12.5 %)
Other	3,074	7.2 %	2,868	6.2 %
Total	20,763	2.3 %	20,293	(2.3 %)
Container Type
Can	2,305	(0.6 %)	2,319	(4.2 %)
Large-sized PET bottles (2L, 1.5L, etc.)	5,767	(6.7 %)	6,182	(8.1 %)
Small-sized PET bottles (500ml, 280ml, etc.)	10,899	10.0 %	9,905	1.8 %
Other	1,792	(5.0 %)	1,887	(0.8 %)
Total	20,763	2.3 %	20,293	(2.3 %)
Domain
Food & Beverage domain	17,930	(1.5 %)	18,194	(2.9 %)
Health science domain	2,834	35.0 %	2,099	3.1 %
Lactococcus lactis strain Plasma	1,006	52.5 %	660	26.2 %
Total	20,763	2.3 %	20,293	(2.3 %)

3. PROFIT DETAILS

(1) Normalized Operating Profit Details

(¥ billions)

	Year ending December 31, 2023, Forecast	Year ended December 31, 2022, Actual	Increase (decrease)
Normalized operating profit	192.0	191.2	0.8	0.4 %
Japan Beer and Spirits	78.3	74.7	3.6	4.9 %
Kirin Brewery	75.0	71.5	3.5	4.8 %
Others	3.3	3.1	0.2	5.2 %
Japan Non-alcoholic Beverages	19.0	18.8	0.2	1.1 %
Kirin Beverage	19.0	18.8	0.2	1.1 %
Oceania Adult Beverages	35.1	31.5	3.6	11.3 %
Lion	35.1	31.5	3.6	11.3 %
Pharmaceuticals	85.0	82.5	2.5	3.1 %
Kyowa Kirin	85.0	82.5	2.5	3.1 %
Other	30.1	37.5	(7.5)	(19.9 %)
Mercian	0.8	(0.6)	1.4	-
Coke Northeast	26.7	26.3	0.4	1.4 %
Kyowa Hakko Bio	(4.0)	(3.9)	(0.1)	-
Others	6.6	15.7	(9.0)	(57.6 %)
Corporate expenses and inter-segment eliminations	(55.5)	(53.8)	(1.6)	-

(2) Normalized Operating Profit Breakdown of Major Business Companies

(¥ billions)

Company name	Major factors	Increase (decrease)	Description
Kirin Brewery	Increase in marginal profit of alcohol beverages, etc.	30.5	Total beer products 0.9
			Sales increase in beer 45 thousand KL
			Sales decrease in happo-shu (17) thousand KL
			Sales decrease in new genre (47) thousand KL
			Total other than beer products 2.2
			Sales increase in RTD 9 thousand KL
			Sales increase in non-alcohol beverages 7 thousand KL, etc.
			Impact of price revision and difference of change in composite of products, etc. 27.4
	Increase in raw material cost of alcohol beverages	(13.9)	Increase in market prices, etc.
	Increase in selling expenses	(6.4)	Increase in sales promotion and advertising (6.4) (Total 57.6 - 64.0)
	Increase in other expenses	(6.7)	Increase in expenditures, etc.
Total		3.5
Kirin Beverage	Increase in marginal profit of soft drink beverages	20.0	Increase in sales volume 4.70 million cases 2.1
			Difference of change in products mix and composition ratio of containers, etc. 17.9
	Increase in raw material cost, etc.	(13.6)	Increase in raw material cost (4.6), increase in material cost (5.2), increase in processing cost (3.8)
	Increase in selling expenses	(5.2)	Increase in sales promotion and advertising (5.2) (Total 23.0→28.2)
	Increase in other expenses	(1.0)
Total		0.2

4. INFORMATION BY SEGMENT

Year ending December 31, 2023, Forecast

(¥ billions)

	Japan Beer and Spirits	Japan Non-alcoholic Beverages	Oceania Adult Beverages	Pharmaceuticals	Others	Adjustment	Total
Depreciation and amortization	15.1	6.8	13.2	16.6	16.5	6.6	74.8
Acquisition of property, plant and equipment and intangible assets	15.6	14.2	16.3	46.7	44.9	8.6	146.3
Normalized EBITDA	93.4	25.8	48.3	101.6	66.6	(48.9)	286.7

Depreciation and amortization exclude those from right-of-use assets.

Year ended December 31, 2022, Actual

(¥ billions)

	Japan Beer and Spirits	Japan Non-alcoholic Beverages	Oceania Adult Beverages	Pharmaceuticals	Others	Adjustment	Total
Depreciation and amortization	13.1	6.3	11.9	14.5	14.8	5.7	66.3
Acquisition of property, plant and equipment and intangible assets	16.9	6.4	11.5	28.5	26.7	8.5	98.5
Normalized EBITDA	87.7	25.0	43,4	97.0	72.6	(48.1)	277.7

Depreciation and amortization exclude those from right-of-use assets.

Independent Auditor's Report on the Financial Statements and Internal Control Over Financial Reporting

March 30, 2023

To the Board of Directors of Kirin Holdings Company, Limited:

KPMG AZSA LLC

Tokyo Office, Japan

Masakazu Hattori

Designated Limited Liability Partner

Engagement Partner

Certified Public Accountant

Masahiro Sasaki

Designated Limited Liability Partner

Engagement Partner

Certified Public Accountant

Yoshihiro Fujioka

Designated Limited Liability Partner

Engagement Partner

Certified Public Accountant

Report on the Audit of the Consolidated Financial Statements

Opinion

We have audited the accompanying consolidated financial statements of Kirin Holdings Company, Limited ("the Company") and its consolidated subsidiaries (collectively referred to as "the Group") provided in the "Financial Information" section in the company's Annual Securities Report, which comprise the consolidated statement of financial position as at December 31, 2022, and the consolidated statements of profit or loss, comprehensive income, changes in equity and cash flows for the year then ended and notes, in accordance with Article 193-2(1) of the Financial Instruments and Exchange Act of Japan.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31,2022, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards prescribed in Article 93 of "the Regulation on Terminology, Forms, and Preparation Methods of Consolidated Financial Statements" (hereinafter referred to as "IFRS").

Basis for Opinion

Key Audit Matters

Reasonableness of the valuation of goodwill allocated to the Bio-chemicals business and its property, plant and equipment

The key audit matter

As described in Note 9. "Impairment of non- financial assets" to the consolidated financial statements, Kirin Holdings Company, Limited (the "Company") recognized an impairment loss of ¥42,957 million on goodwill allocated to a group of cash-generating units related to the Bio-chemicals business and its property, plant and equipment at the end of the current fiscal year.

A group of cash-generating units to which goodwill is allocated needs to be tested for impairment annually and whenever there is an impairment indicator. In the impairment testing, when the recoverable amount is less than the carrying amount, the carrying amount is reduced to the recoverable amount, and the resulting decrease in the carrying amount is recognized as an impairment loss. The recoverable amount of the Bio-chemicals business in the annual impairment test for goodwill for the current fiscal year was measured based on the value in use. The value in use was calculated by discounting the estimated future cash flows based on the business plan for the business approved by the Company's management to the present value.

The business plan used as the basis for calculating the value in use included significant assumptions, such as the expansion of the market size as well as the increase in market share of the core products and new products. As the estimates thereof involved uncertainty, they had a significant effect on the calculation of the value in use. For the current fiscal year, the Bio-chemical business was severely affected by the suspension of production due to the Shanghai lockdown and increased competition in the sales market, which also had a significant effect on the above significant assumptions.

In addition, selecting appropriate models and input data for the discount rate used to calculate the value in use required a high degree of valuation expertise. We, therefore, determined that our assessment of the reasonableness of the valuation of goodwill allocated to a group of cash-generating units related to the Bio-chemicals business and its property, plant and equipment was one of the most significant matters in our audit of the consolidated financial statements for the current fiscal year, and accordingly, a key audit matter.

How the matter was addressed in our audit

The primary audit procedures we performed to assess the reasonableness of the valuation of goodwill allocated to the group of cash-generating units related to the Bio-chemicals business and its property, plant and equipment included the following:

(1) Internal control testing

We tested the design and operating effectiveness of certain of the Company's internal controls relevant to the calculation of the value in use used in the impairment testing of a group of cash-generating units to which goodwill is allocated, with a particular focus on controls to validate the reasonableness of the estimated future cash flows.

(2) Assessment of the reasonableness of the estimated value in use

In order to assess the appropriateness of key assumptions underlying the business plan of the Biochemicals business as the basis for calculating the value in use, we:

•	inquired of management about the rationales for key assumptions;
•	assessed the consistency of assumptions regarding the expected expansion of the market size of the core products and new products with the most recent available external information on market forecasts;
•	assessed the appropriateness of assumptions regarding the expected increase in market share of the core products by conducting a trend analysis on the core products based on the past years' actual sales results and evaluating the competitiveness of the core products over competing products; and
•	assessed the appropriateness of assumptions regarding the expected acquisition of market share of new products by evaluating the competitiveness of the new products over competing products and the expected timing of new product sales.

In addition, we performed the following procedures by involving valuation specialists within our network firms who assisted our evaluation of the discount rate used to calculate the value in use:

•	evaluated the appropriateness of the models used for determining the discount rate based on the requirements of the accounting standards; and
•	compared input data used for determining the discount rate with market data published by external organizations obtained by the valuation specialists.

Reasonableness of the valuation of equity-accounted investments in FANCL CORPORATION

The key audit matter

Equity-accounted investments need to be tested for impairment whenever there is an impairment indicator. In the impairment testing, when the recoverable amount is less than the carrying amount, the carrying amount is reduced to the recoverable amount, and the resulting decrease in the carrying amount is recognized as an impairment loss.

As fair value of the investments in FANCL has decreased from the acquisition cost over time and there was an impairment indicator for the investments, the Company performed impairment testing at the end of the current fiscal year. After reviewing the results of the impairment testing, the Company recognized no impairment loss as the recoverable amount exceeded the carrying amount. The recoverable amount of the equity-accounted investments in FANCL in the impairment testing was measured based on the value in use. The value in use was calculated by discounting the estimated future cash flows based on the business plan of FANCL approved by its management to the present value.

The business plan used as the basis for calculating the value in use included significant assumptions for the recovery of inbound demand and the increase in sales of the domestic online shopping channel and overseas markets. As the estimates thereof involved uncertainty, they had a significant effect on the calculation of the value in use.

In addition, selecting appropriate models and input data for determining the discount rate used to calculate the value in use required a high degree of valuation expertise.

We, therefore, determined that our assessment of the reasonableness of the valuation of the equity- accounted investments in FANCL was one of the most significant matters in our audit of the consolidated financial statements for the current fiscal year, and accordingly, a key audit matter.

How the matter was addressed in our audit

The primary procedures we performed to assess the reasonableness of the valuation of goodwill related to the equity-accounted investments in FANCL included the following:

(1) Internal control testing

We tested the design and operating effectiveness of certain of the Company's internal controls relevant to the calculation of the value in use used in the impairment testing of equity-accounted investments, with a particular focus on the controls to validate the reasonableness of the estimated future cash flows.

(2) Assessment of the reasonableness of the estimated value in use

In order to assess the appropriateness of key assumptions underlying the business plan of FANCL used as the basis for calculating the value in use, we:

•	inquired of management of FANCL about the rationales for key assumptions and inquired of management of the Company about the details of the assessment of the appropriateness of the assumptions;
•	assessed the consistency of assumptions regarding the recovery of inbound demand with the most recent available external information on market forecasts for the number of passengers, and conducted trend analysis based on the past years' actual results;
•	assessed the consistency of assumptions regarding the increase in sales of the domestic online shopping channel with online shopping market forecasts published by external organizations, and conducted trend analysis based on the past years' actual results; and
•	assessed the consistency of assumptions regarding the increase in sales of overseas markets with overseas market forecasts published by external organizations.

In addition, we performed the following procedures by involving valuation specialists within our network firms who assisted our evaluation of the discount rate used to calculate the value in use:

•	evaluated the appropriateness of the models used for determining the discount rate based on the requirements of the accounting standards; and
•	compared input data used for determining the discount rate with market data published by external organizations obtained by the valuation specialists.

Other Information

The other information comprises the information included in the Annual Securities Report but does not include the consolidated financial statements, the financial statements, and our auditor's reports thereon. Management is responsible for the preparation and presentation of the other information. Audit & Supervisory Board Members and the Audit & Supervisory Board are responsible for overseeing the directors' performance of their duties with regard to the design, implementation and maintenance of the reporting process for the other information.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Responsibilities of Management and Audit & Supervisory Board Members and the Audit & Supervisory Board for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern in accordance with IFRS and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements

As part of our audit in accordance with auditing standards generally accepted in Japan, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

•	Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The selection and application of audit procedures depends on the auditor's judgment.
•	Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, while the objective of the audit is not to express an opinion on the effectiveness of the Group's internal control.
•	Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
•	Conclude on the appropriateness of management's use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.
•	Evaluate whether the presentation and disclosures in the consolidated financial statements are in accordance with IFRS, the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
•	Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

Report on the Audit of the Internal Control Report

Opinion

We also have audited the accompanying internal control report of Kirin Holdings Company, Limited as at December 31, 2022, in accordance with Article 193-2(2) of the Financial Instruments and Exchange Act of Japan.

In our opinion, the accompanying internal control report, which states that the internal control over financial reporting was effective as at December 31, 2022, presents fairly, in all material respects, the results of the assessments of internal control over financial reporting in accordance with assessment standards for internal control over financial reporting generally accepted in Japan.

Basis for Opinion

Responsibilities of Management and Audit & Supervisory Board Members and the Audit & Supervisory Board for the Internal Control Report

Audit & Supervisory Board Members and the Audit & Supervisory Board are responsible for overseeing and examining the design and operation of internal control over financial reporting.

Internal control over financial reporting may not completely prevent or detect financial statement misstatements.

Auditor's Responsibilities for the Audit of the Internal Control Report

•	Perform procedures to obtain audit evidence about the results of the assessments of internal control over financial reporting in the internal control report. The procedures for the audit of the internal control report are selected and performed, depending on the auditor's judgment, based on significance of effect on the reliability of financial reporting.
•	Evaluate the overall presentation of the internal control report, including the appropriateness of the scope, procedures and results of the assessments that management presents.
•	Obtain sufficient appropriate audit evidence about the results of the assessments of internal control over financial reporting in the internal control report. We are responsible for the direction, supervision and performance of the audit of the internal control report. We remain solely responsible for our audit opinion.

Interest required to be disclosed by the Certified Public Accountants Act of Japan

Our firm and its designated engagement partners do not have any interest in the Company and its subsidiaries which are required to be disclosed pursuant to the provisions of the Certified Public Accountants Act of Japan.

Notes to the Reader of Audit Report:

The Independent Auditor's Report herein is the English translation of the Independent Auditor's Report as required by the Financial Instruments and Exchange Act of Japan.

[Cover]

[Document filed]	Internal Control Report (Naibutosei Hokokusho)
[Clause of stipulation]	Article 24-4-4, Paragraph 1 of the Financial Instruments and Exchange Act
[Filed to]	Director-General, Kanto Local Finance Bureau
[Filing date]	March 30, 2023
[Company name]	Kirin Holdings Kabushiki Kaisha
[Company name in English]	Kirin Holdings Company, Limited
[Title and name of representative]	Yoshinori Isozaki, President & Chief Executive Officer
[Title and name of Chief Financial Officer]	Shinjiro Akieda, Senior Executive Officer
[Address of registered head office]	10-2, Nakano 4-chome, Nakano-ku, Tokyo, Japan
[Place for public inspection]	Tokyo Stock Exchange, Inc.
	(2-1, Nihombashi Kabutocho, Chuo-ku, Tokyo)
	Nagoya Stock Exchange, Inc.
	(8-20, Sakae 3-chome, Naka-ku, Nagoya)
	Securities Membership Corporation Fukuoka Stock Exchange
	(14-2, Tenjin 2-chome, Chuo-ku, Fukuoka)
	Securities Membership Corporation Sapporo Securities Exchange
	(14-1, Minami-ichijo-nishi 5-chome, Chuo-ku, Sapporo)

1. BASIC FRAMEWORK OF INTERNAL CONTROL OVER FINANCIAL REPORTING

Yoshinori Isozaki, President & Chief Executive Officer, and Shinjiro Akieda, Senior Executive Officer, are responsible for designing and operating effective internal control over financial reporting of Kirin Holdings Company, Limited (the "Company") and have designed and operated internal control over financial reporting in accordance with the basic framework for internal control set forth in the report "On the Setting of the Standards and Practice Standards for Management Assessment and Audit concerning Internal Control Over Financial Reporting (Council Opinions)" released by the Business Accounting Council.

2. ASSESSMENT SCOPE, TIMING AND PROCEDURES

The assessment of internal control over financial reporting was performed as of December 31, 2022 which is the end of the fiscal year under review. The assessment was performed in accordance with assessment standards for internal control over financial reporting generally accepted in Japan.

For the scope of assessment for internal control over business processes, five business locations of the Group were selected as significant business locations in descending order of revenue planned for the fiscal year under review for each business location until their aggregated amount accounted for two thirds of consolidated revenue planned for the fiscal year (after the elimination of transactions between consolidated companies). At selected significant business locations targeted for assessment, our scope of assessment included business processes leading to revenue, accounts receivable, trade and inventories as significant accounts that may have a material impact on the business objectives of the Company. Further, in addition to selected significant business locations, we also included in the scope of assessment for other business locations, as business processes having greater materiality, business processes relating to (i) greater likelihood of material misstatements and/or (ii) significant accounts involving estimates and the management's judgment and/or (iii) a business or operation dealing with high-risk transactions, taking into account their impact on the financial reporting.

3. RESULTS OF ASSESSMENT

The above assessments determined that the Company's internal control over financial reporting was effective as of the last day of the fiscal year under review.

4. SUPPLEMENTARY INFORMATION

Not applicable.

5. OTHER

Not applicable.

30:T5dfa6,

KYOWA HAKKO Europe Gesellschaft mit beschränkter Haftung

Düsseldorf

Befreiender Konzernabschluss zum Geschäftsjahr vom 01.01.2022 bis zum 31.12.2022

KIRIN Holdings Company, Limited

Tokio/Japan

KIRIN HOLDINGS COMPANY, LIMITED SUMMARY OF CONSOLIDATED FINANCIAL RESULTS FOR THE YEAR ENDED DECEMBER 31, 2022 (UNDER IFRS) (UNAUDITED)

(English Translation)

Fiscal year ended December 31,2022

KIRIN HOLDINGS COMPANY, LIMITED

February 14, 2023

NAKANO CENTRAL PARK SOUTH, 10-2, Nakano 4-chome, Nakano-ku, Tokyo, Japan (URL https://www.kirinholdings.com/en/)

Code No.:	2503
Shares Listed:	Tokyo, Nagoya, Sapporo and Fukuoka
Representative:	Mr. Yoshinori Isozaki, President and CEO
For further information, please contact:	Mr. Nobuhiko Hori, General Manager of Corporate Communications Department Telephone: +81-3-6837-7015 from overseas

Scheduled date of general meeting of shareholders held:	March 30, 2023
Commencement date of dividend distribution scheduled:	March 31, 2023
Submission date of securities report scheduled:	March 30, 2023
Preparation of supplementary documents to the financial results:	Yes
Holding of financial results presentation (for institutional investors and analysts):	Yes

1. Consolidated business results and financial position for the current fiscal year (January 1, 2022 - December 31, 2022)


(1) Results of operations:
		(Percentage change compares current results with those of the same period of the previous year)
	Revenue	Percentage change
	(¥ millions)	(%)
Fiscal year ended
December 31,2022	1,989,468	9.2
December 31, 2021	1,821,570	(1.5)

			[Unit: Japanese yen (¥)]
(1) Results of operations:		(Amounts are rounded to the nearest ¥1 million.)
	(Percentage change compares current results with those of the same period of the previous year)
	Normalized operating profit	Percentage change	Profit before tax	Percentage change
	(¥ millions)	(%)	(¥ millions)	(%)
Fiscal year ended
December 31,2022	191,159	15.6	191,387	92.1
December 31, 2021	165,430	2,0	99,617	(20.0)

	Profit (¥ millions)	Percentage change (%)	Profit attributable to owners of the Company (¥ millions)
Fiscal year ended
December 31, 2022	143,771	110.1	111,007
December 31, 2021	68,424	(31.5)	59,790

	Percentage change (%)	Total comprehensive income (¥ millions)	Percentage change (%)
Fiscal year ended
December 31, 2022	85.7	219,836	87.4
December 31, 2021	(16.9)	117,316	27.7

	Basic earnings per share	Diluted earnings per share	Ratio of profit to equity attributable to owners of the Company	Ratio of profit before tax to total assets	Ratio of normalized operating profit to revenue
	(¥)	(¥)	(%)	(%)	(%)
Fiscal year ended
December 31, 2022	135.08	135.07	11.8	7.6	9.6
December 31, 2021	71.73	71.70	6.9	4.0	9.1
Reference: Share of profit of equity-accounted investees			Fiscal year ended December 31, 2022		¥22,780 million
			Fiscal year ended December 31, 2021		¥34,490 million

Operating profit	Fiscal year ended December 31, 2022	¥116,019 million	70.4%
	Fiscal year ended December 31, 2021	¥68,084 million	(33.8%)
Ratio of operating profit to revenue	Fiscal year ended December 31, 2022	5.8%
	Fiscal year ended December31,2021	3.7%

^* Normalized operating profit is a profit indicator for measuring recurring performance which is calculated by deducting cost of sales and selling, general and administrative expenses from revenue.

(2) Financial position:

	Total assets	Total equity	Equity attributable to owners of the Company	Equity ratio attributable to owners of the Company	Equity per share attributable to owners of the Company
	(¥ millions)	(¥ millions)	(¥ millions)	(%)	(¥)
As of
December 31, 2022	2,542,263	1,253,203	980,022	38.5	1,210.16
December 31, 2021	2,471,933	1,147,990	894,179	36.2	1,072.69

(3) Cash flows:

	Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of year
	(¥ millions)	(¥ millions)	(¥ millions)	(¥ millions)
Fiscal year ended December 31, 2022	135,562	(10,399)	(167,835)	88,060
Fiscal year ended December 31, 2021	219,303	(56,408)	(180,463)	149,488

2. Dividends

	Annual dividends
	First quarter	Second quarter	Third quarter	Year-end	Total
	(¥)	(¥)	(¥)	(¥)	(¥)
Fiscal year ended December 31, 2021	-	32.50	-	32.50	65.00
Fiscal year ended December 31, 2022	-	32.50	-	36.50	69.00
Fiscal year ending December 31, 2023 (Forecast)	-	34.50	-	34.50	69.00

	Total amount of dividends	Dividend pay-out ratio	Ratio of dividends to equity attributable to owners of the Company
	(¥ millions)	(%)	(%)
Fiscal year ended December 31, 2021	54,208	90.6	6.3
Fiscal year ended December 31, 2022	56.381	51.1	6.0
Fiscal year ending December 31, 2023 (Forecast)		49.5

3. Forecast consolidated business results for the next fiscal year

(January 1, 2023 - December 31, 2023)

	(Percentage change compares forecast results with actual results of the previous year)
	Revenue	Percentage change	Normalized operating profit
	(¥ millions)	(%)	(¥ millions)
Fiscal year ending December 31, 2023	2,115,000	6.3	192,000

	(Percentage change compares forecast results with actual results of the previous year)
	Percentage change	Profit before tax	Percentage change
	(%)	(¥ millions)	(%)
Fiscal year ending December 31, 2023	0.4	196,000	2.4

	Profit	Percentage change	Profit attributable to owners of the Company
	(¥ millions)	(%)	(¥ millions)
Fiscal year ending December31,2023	148,500	3.3	113,000
Reference: Operating profit		Fiscal year ending December 31, 2023

	Percentage change	Basic earnings per share
	(%)	(¥)
Fiscal year ending December31,2023	1.8	139.54
Reference: Operating profit		¥169,000 million	45.7%

^* Notes

⁽¹⁾ Changes in significant subsidiaries for the fiscal year ended December 31, 2022 (Changes in specified subsidiaries accompanying change in scope of consolidation):	None
Newly included: - Excluded: -
⁽²⁾ Changes in accounting policies and changes in accounting estimates
i. Changes in accounting policies required by IFRS:	None
ii. Changes in accounting policies due to other reasons:	None
iii. Changes in accounting estimates:	Yes

For details, please see "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CHANGES IN ACCOUNTING ESTIMATES)" on page 19.

⁽³⁾ Number of shares outstanding (ordinary shares)

i. Number of shares outstanding at the end of the period (including treasury shares)

As of December 31, 2022	914,000,000 shares
As of December 31, 2021	914,000,000 shares
ii. Number of treasury shares at the end of the period
As of December 31, 2022	104,171,578 shares
As of December 31, 2021	80,414,185 shares
iii. Average number of shares during the period
For the fiscal year ended December 31, 2022	821,755,308 shares
For the fiscal year ended December 31, 2021	833,598,578 shares

Note: Number of treasury shares at the end of the period includes shares held in the BIP (Board Incentive Plan) Trust (1,965,900 Note: shares at December 31, 2022 and 385,135 shares at December 31, 2021). These shares are excluded in calculation of the average number of shares during the period.

^• The summary of consolidated financial results is not subject to audit by certified public accountants or an audit corporation.
^* Information about proper usage of forecast business results, and other special instructions
⁽¹⁾ The statements concerning future performance that are presented in this document are based on judgments using information available to Kirin Holdings and the Kirin Group as of the release date of this material. Certain risks and uncertainties could cause the results of Kirin Holdings and the Kirin Group to differ materially from any projections presented herein. These risks and uncertainties include, but are not limited to, the economic circumstances surrounding the Company's businesses, market trends, and exchange rates.
⁽²⁾ The Company will post the Supplementary Documents to the Financial Results today, Tuesday, February 14, and will post the presentation materials from the financial results presentation to be held on Wednesday, February 15, the presentation content (video) and the main Q&A at the meeting as soon as possible on the Company's website. (URL of the Company's website) https://www.kirinholdings.com/en/investors/

ATTACHED MATERIALS

INDEX

1. KIRIN GROUP'S CURRENT BUSINESS PERFORMANCE

(1) STATEMENT OF BUSINESS ACTIVITIES AND RESULTS

(2) FINANCIAL POSITION

(3) BASIC POLICY AND DISTRIBUTION OF PROFITSAND DIVIDEND FOR 2022 AND 2023

2. BASIC RATIONALE FOR SELECTION OF ACCOUNTING STANDARDS

3. CONSOLIDATED FINANCIAL STATEMENTS

(1) CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(2) CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND COMPREHENSIVE INCOME

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(3) CONSOLIDATED STATEMENT OF CHANGES IN EQUITY.

(4) CONSOLIDATED STATEMENT OF CASH FLOWS

(5) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(GOING CONCERN ASSUMPTION)

(CHANGES IN ACCOUNTING ESTIMATES)

(SEGMENT INFORMATION)

(PER SHARE INFORMATION)

(SIGNIFICANT SUBSEQUENT EVENTS)

4. OTHER

CHANGES OF DIRECTORS AND BOARD MEMBERS

1. KIRIN GROUP'S CURRENT BUSINESS PERFORMANCE

1) STATEMENT OF BUSINESS ACTIVITIES AND RESULTS

1. Food & Beverages Domain

2. Pharmaceuticals Domain

As a Japan-based Global Specialty Pharmaceutical company ^*1 , Kirin Holdings worked to strengthen the foundation in Japan as well as overseas. In addition to steadily growing global strategic products, Kirin Holdings promoted the development of next-generation strategic products.

3. Health Science Domain

Kirin Holdings accelerated the development of Lactococcus lactis strain Plasma ^*2 (LC-Plasma) to expand its business domain. In addition to the development of its own group products such as beverages and supplements, Kirin Holdings promoted sales of raw material to external partner companies and expanded the number of functional food products. As a result, the sales amount of LC-Plasma-related business increased 40% from the previous year. In addition, Kirin Holdings continued its efforts to raise awareness of "immune care" and contributed to solving consumers' health issues.

Kirin Holdings has also received high praise from outside the company in terms of ESG. For the second year in a row, Kirin Holdings received an "AA" rating in the MSCI ESG Ratings ^*3 by the U.S.-based Morgan Stanley Capital International (MSCI), Inc. on a par with the world's leading CSV ^*4 companies. In a survey conducted by CDP ^*5 , an international non-profit organization, Kirin Holdings also received the highest rating of "A-List" in the two themes of "climate change" and "water security" for four consecutive years. In Japan, Kirin Holdings also received the highest overall ranking in the Nikkei SDGs Management Survey for four consecutive years, as well as the "SDGs Strategy and Economic Value Award" at the 4th Nikkei SDGs Management Grand Prix.

4 Creating Shared Value: combined added value for consumers as well as for society at large.

Consolidated revenue	1,989.5 billion yen, up 9.2%
Consolidated normalized operating profit	191.2 billion yen, up 15.6%
Consolidated profit before tax	191.4 billion yen, up 92.1%
Consolidated profit attributable to owners of the Company (Key performance indicators)	111.0 billion yen, up 85.7%
ROIC	8.5%
Normalized EPS ^*	171 yen, up 9.6%

Normalization: Non-recurring items such as Other operating income or expenses, etc. have been removed to more accurately reflect actual earnings.

Normalized EPS = Normalized profit / Average number of shares outstanding during period.

Normalized profit = Profit attributable to Owners of the Company + Other operating income and expenses and other items after income taxes

Results by segment are as follows.

Japan Beer and Spirits Business: Kirin Brewery Company, Limited (Kirin Brewery)

The domestic alcoholic beverages market was affected by soaring raw material and fuel prices as well as the prolonged COVID-19, but overall the market was on a recovery trend. Kirin Brewery focused on its mainstay brand KIRIN ICHIBAN and KIRIN ICHIBAN Zero Sugar ^*6 ," to capture health-conscious consumers. As a result, overall sales volume of the KIRIN ICHIBAN brand increased 3% year-on-year. In the craft beer category, Kirin Brewery focused on efforts to broaden the appeal of a variety of beers. From the SPRING VALLEY brand, in addition to SPRING VALLEY Hojun <496>, SPRING VALLEY Silk Ale [White] was newly launched. Kirin Home Tap, a beer server for home use that allows consumers to enjoy authentic draft and craft beer at home, delivered the taste of freshly brewed beer to consumers nationwide. The Tap Marche beer server for restaurants, which can serve four kinds of craft beer from various regions of Japan, brought the enjoyment of a wide range of craft beer to consumers with 14 participating breweries.

In the RTD ^*7 category, the mainstay Kirin Hyoketsu® brand sold well. In particular, the Hyoketsu® Sugar Free series received strong support, with sales exceeding 14 million cases ^*8 , approximately 1.2 times the target set at the beginning of the year.

In the non-alcoholic beer-taste beverage category, Kirin Brewery revamped Kirin GREENS FREE, which helped revitalize the market.

6 According to food labeling standards products containing less than 0.5g of sugar per 100ml can be labeled "zero sugar."

7 Abbreviation for Ready to Drink, a canned cocktail.

8 Equivalent to 24 bottles of 250ml each

Japan Beer and Spirits Business 2022 results:

Consolidated revenue	663.5 billion yen, up 0.3%
Consolidated normalized operating profit	74.7 billion yen, up 5.8%

Japan Non-alcoholic Beverages Business: Kirin Beverage Company, Limited (Kirin Beverage)

At Kirin Beverage, sales of mainstay brands were strong, with sales of both Kirin Gogo-no-Kocha and Kirin Nama-cha exceeding those of the previous year. In particular, sales of Kirin Gogo-no-Kocha Oishii Muto (sugar free) were up 17% from the previous year. In the Health Science area, where Kirin Beverage is focusing its efforts, Kirin iMUSE Morning Immune Care, a small-volume PET-bottled beverage, was launched nationwide to strengthen efforts to make "immune care" a habit in consumers. In addition, Kirin Beverage renewed and strengthened sales of Kirin iMUSE Lemon and Kirin iMUSE Yogurt Taste, resulting in a 23% year-on-year growth in sales volume of beverages containing LC-Plasma. On top of that, KIRIN naturals, a service for corporate consumers to promote health management, was renewed as a service to improve employees‛ lifestyle habits and raise their health awareness.

Japan Non-alcoholic Beverages Business 2022 results:

Consolidated revenue	243.3 billion yen, down 0.5%
Consolidated normalized operating profit	18.8 billion yen, down 11.0%

Oceania Adult Beverages Business: Lion Pty Limited (Lion)

Oceania Adult Beverages Business 2022 results:

Consolidated revenue	255.9 billion yen, up 18.3%
Consolidated normalized operating profit	31.5 billion yen, up 18.8%

Pharmaceuticals Business: Kyowa Kirin Co., Ltd. (Kyowa Kirin)

In 2022, the second year of the company's 2021-2025 Medium Term Business Plan, Kyowa Kirin continued its efforts to grow as a Japan-based Global Specialty Pharmaceutical company.

While the global therapeutic environment is changing due to COVID-19, global strategic products Crysvita ^*9 and Poteligeo ^*10 continued to show steady growth. As for next-generation strategic products, development of KHK4083 (generic name: Rocatinlimab) ^*11 " and KHK7791 (generic name: Tenapanor Hydrochloride) ^*12 " made steady progress. On the other hand, the development of KW-6356 ^*13 was discontinued, and the decision was made to discontinue the development of ME-401 ^*14 outside Japan. In Kyowa Kirin's "patient advocacy" activities, which aim to resolve business and social issues by listening to the voices of people facing illnesses, Kyowa Kirin actively promoted support for rare and intractable diseases in Japan and overseas, including participation in the community of ASrid, a Japanese non-profit organization.

9 A drug for the treatment of rare diseases that cause disorders of bone growth and metabolism mainly due to genetic causes. In Japan, it is marketed under the CRYSVITA product name.

10 A drug for the treatment of certain types of leukemia. It is already marketed in Japan under the POTELIGEO brand name.

11 A drug for the treatment of atopic dermatitis.

12 A treatment that inhibits phosphorus absorption for hemodialysis patients.

13 The next-generation KW-6002 product (Japanese product name: Nouriast), used for the treatment of Parkinson's disease.

14 A drug for the treatment of certain types of leukemia.

Pharmaceuticals Business 2022 results:

Consolidated revenue	397.9 billion yen, up 13.1%
Consolidated normalized operating profit	82.5 billion yen, up 34.7%

Other Businesses

Otner Businesses	428.9 billion yen, up 23.3%
Consolidated revenue
Consolidated normalized operating profit	37.5 billion yen, up 19.8%
Share of Revenue	21.6%

• KYOWA HAKKO BIO CO., LTD. (Kyowa Hakko Bio)

Kyowa Hakko Bio was forced to suspend manufacturing at its Shanghai plant in China (SHANGHAI KYOWA AMINO ACID CO., LTD.), one of its production bases, following the spread of a new COVID-19 strain, and sales were also constrained. In addition, sales of Citicoline ^*15 , a key ingredient, were weak due to factors such as the impact of inflation in the United States, the largest dietary supplement market. Profitability was also affected by soaring raw material and fuel prices. On the R&D front, Kyowa Hakko Bio built a foundation for medium- to long-term growth in the Kirin Group's Health Science domain. On the other hand, despite the severe business environment, Kyowa Hakko Bio completed a production facility for HMOs ^*17 (human milk oligosaccharides) - for which demand is expected to grow worldwide - in its own factory in Thailand (THAI KYOWA BIOTECHNOLOGIES CO., LTD.).

• Mercian Corporation (Mercian)

• Myanmar Brewery Ltd. (Myanmar Brewery)

• Coca-Cola Beverages Northeast, Inc. (Coke Northeast)

-Outlook for 2023-

Through these efforts, Kirin Holdings aims to achieve its financial targets of an average annual growth rate of at least 11% in Normalized EPS by 2024 ^*1 and an ROIC of 10% by 2024, as well as its non-financial targets for the environment, health, and employees.

1 Standard is for FY2023.

Consolidate Earnings Forecasts for the Fiscal Year 2023:
Consolidated revenue	2,115.0 billion yen, up 6.3%
Consolidated normalized operating profit	192.0 billion yen, up 0.4%
Consolidated profit before tax	196.0 billion yen, up 2.4%
Consolidated profit attributable to owners of the Company (Key performance indicators)	113.0 billion yen, up 1.8%
ROIC	8.5%
Normalized EPS ^*	171 yen, -

1. Food & Beverages Domain

In the Food & Beverages domain, Kirin Holdings will continue to build a strong brand system, nurture growth engines, and improve profitability.

Mercian will focus on Mercian Wines and Chateau Mercian to strengthen profitability.

Coke Northeast will work to build a continuous, stable, and highly profitable structure.

2. Pharmaceuticals Domain

We will steadily conduct clinical trials for KHK4083 and KHK4951 (generic name: Tibozanib) ^*2 , which are being co-developed with Amgen, along with promoting R&D to further enhance the product pipeline.

3. Health Science Domain

In Closing

Kirin Holdings sincerely thanks the Kirin Group's shareholders for their continued understanding and support.

(2) FINANCIAL POSITION

Equity increased by 105.2 billion yen from the end of the previous consolidated fiscal year to 1,253.2 billion yen mainly due to an increase in reserves due to foreign exchange fluctuations.

Cash flows from operating activities

Cash flows from investing activities

Cash flows from financing activities

(3) BASIC POLICY AND DISTRIBUTION OF PROFITS AND DIVIDEND FOR 2022 AND 2023

Based on the capital policy formulated in the 2022-2024 MTBP, Kirin will allocate resources to its businesses and distribute profits to its shareholders as set out below.

Regarding resource allocation to businesses, giving top priority to investments that contribute to further developing businesses with a focus on the Heath Science domain, Kirin will make investments that contribute to enhancement of existing businesses and profit improvement. Kirin will also implement a stable and continuous allocation of resources to intangible assets (such as brands, research and development, information and communication technology (ICT), and human resources) that sustain the growth of future cash flows. Kirin will take a disciplined approach to investments in terms of maintaining and improving the Kirin Group's capital efficiency.

With regard to the distribution of surplus funds for 2022, based on a consolidated dividend payout ratio on normalized EPS of at least 40%, Kirin's Board of Directors made a resolution for an interim dividend of 32.5 yen per share and a year-end dividend of 36.5 yen per share, for an annual dividend totaling 69 yen per share (an increase of 4 yen per share from the previous year). The year-end dividend will be determined at the 184th General Meeting of Shareholders scheduled for March 30, 2023.

Regarding the distribution of surplus funds for 2023, Kirin aims for a consolidated dividend payout ratio on normalized EPS of at least 40%, and plans to pay a full-year dividend of 69 yen per share.

2. BASIC RATIONALE FOR SELECTION OF ACCOUNTING STANDARDS

3. CONSOLIDATED FINANCIAL STATEMENTS

(1) CONSOLIDATED STATEMENT OF FINANCIAL POSITION

		(¥ millions)
	At December 31, 2021	At December 31, 2022
Assets
Non-current assets
Property, plant and equipment	533,859	560,642
Goodwill	264,225	289,526
Intangible assets	196,341	200,900
Equity-accounted investees	399,367	361,764
Other financial assets	117,431	103,380
Other non-current assets	24,736	27,700
Deferred tax assets	109,354	111,330
Total non-current assets	1,645,313	1,655,242
Current assets
Inventories	247,229	290,171
Trade and other receivables	387,921	409,168
Other financial assets	7,910	8,376
Other current assets	34,071	41,128
Cash and cash equivalents	149,488	88,060
(Sub-total)	826,620	836,903
Assets held for sale	-	50,117
Total current assets	826,620	887,021
Total assets	2,471,933	2,542,263

		(¥ millions)
	At December 31, 2021	At December 31, 2022
Equity
Share capital	102,046	102,046
Share premium	25,104	25,519
Retained earnings	998,177	1,063,823
Treasury shares	(201,801)	(251,788)
Reserves	(29,347)	40,423
Equity attributable to owners of the Company	894,179	980,022
Non-controlling interests	253,811	273,181
Total equity	1,147,990	1,253,203
Liabilities
Non-current liabilities
Bonds and borrowings	449,970	408,662
Other financial liabilities	145,453	129,662
Defined benefit liability	61,954	58,084
Provisions	4,707	3,292
Liabilities from application of equity method	19,426	15,529
Other non-current liabilities	32,875	27,572
Deferred tax liabilities	10,606	13,564
Total non-current liabilities	724,990	656,365
Current liabilities
Bonds and borrowings	101,502	114,459
Trade and other payables	229,552	265,185
Other financial liabilities	65,907	59,824
Current tax liabilities	22,162	4,611
Provisions	1,901	2,970
Other current liabilities	177,929	177,530
(Sub-total)	598,953	624,579
Liabilities directly associated with assets held for sale	-	8,116
Total current liabilities	598,953	632,695
Total liabilities	1,323,943	1,289,060
Total equity and liabilities	2,471,933	2,542,263

(2) CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND COMPREHENSIVE INCOME CONSOLIDATED STATEMENT OF PROFIT OR LOSS

		(¥ millions)
	Year ended December 31, 2021	Year ended December 31, 2022
Revenue	1,821,570	1,989,468
Cost of sales	998,728	1,083,755
Gross profit	822,842	905,713
Selling, general and administrative expenses	657,412	714,554
Normalized operating profit	165,430	191,159
Other operating income	8,239	29,454
Other operating expenses	105,585	104,594
Operating profit	68,084	116,019
Finance income	4,087	10,978
Finance costs	7,044	6,478
Share of profit of equity-accounted investees	34,490	22,780
Gain on sale of equity-accounted investees	-	48,088
Profit before tax	99,617	191,387
Income tax expense	31,193	47,615
Profit	68,424	143,771
Profit attributable to:
Owners of the Company	59,790	111,007
Non-controlling interests	8,634	32,764
Profit	68,424	143,771
Earnings per share (Yen)
Basic earnings per share	71.73	135,08
Diluted earnings per share	71.70	135,07

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

		(¥ millions)
	Year ended December 31, 2021	Year ended December 31, 2022
Profit	68,424	143,771
Other comprehensive income
Items that will not be reclassified to profit or loss
Net change in equity instruments measured at fair value through other comprehensive income	(1,824)	1,937
Remeasurements of defined benefit plans	6,592	5,126
Share of other comprehensive income of equity-accounted investees	203	694
Items that are or may be reclassified to profit or loss
Foreign currency translation differences on foreign operations	31,843	48,639
Cash flow hedges	1,185	(1,600)
Share of other comprehensive income of equity-accounted investees	10,892	21,269
Total other comprehensive income	48,891	76,065
Comprehensive income	117,316	219,836
Comprehensive income attributable to:
Owners of the Company	109,631	189,195
Non-controlling interests	7,685	30,641
Comprehensive income	117,316	219,836

(3) CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Year ended December 31, 2021


	Equity attributable to owners of the Company

	Share capital	Share premium
Balance at January 1,2021	102,046	24,940
Profit	-	-
Other comprehensive income	-	-
Comprehensive income	-	-
Dividends from surplus	-	-
Acquisition of treasury shares	-	-
Disposal of treasury shares	-	(0)
Share-based payments	-	83
Changes in the ownership interest in a subsidiary without a loss of control	-	81
Transfer from reserves to retained earnings	-	-
Other	--	-
Total transactions with owners of the Company	-	164
Balance at December 31, 2021	102,046	25,104

				(¥ millions)
	Equity attributable to owners of the Company
			Reserves
	Retained earnings	Treasury shares	Net change in equity instruments measured at fair value through other comprehensive income	Remeasurements of defined benefit plans
Balance at January 1,2021	980,903	(201,783)	24,757	=
Profit	59,790	-	-	-
Other comprehensive income	-	-	(1,251)	6,137
Comprehensive income	59,790	-	(1,251)	6,137
Dividends from surplus	(54,184)	-	-	-
Acquisition of treasury shares	-	(27)	-	-
Disposal of treasury shares	-	1	-	-
Share-based payments	2	7	-	-
Changes in the ownership interest in a subsidiary without a loss of control	-	-	-	-
Transfer from reserves to retained earnings	11,666	-	(5,529)	(6,137)
Other	-	-	-	-
Total transactions with owners of the Company	(42,516)	(18)	(5,529)	(6,137)
Balance at December 31, 2021	998,177	(201,801)	17,978	-

	Equity attributable to owners of the Company
	Reserves
	Foreign currency translation differences on foreign operations	Cash flow hedges	Total
Balance at January 1,2021	(91,702)	(577)	(67,522)
Profit	-	-	-
Other comprehensive income	43,767	1,187	49,841
Comprehensive income	43,767	1,187	49,841
Dividends from surplus	-	-	-
Acquisition of treasury shares	-	-	-
Disposal of treasury shares	-	-	-
Share-based payments	-	-	-
Changes in the ownership interest in a subsidiary without a loss of control	-	-	-
Transfer from reserves to retained earnings	-	-	(11,666)
Other	-	-	-
Total transactions with owners of the Company	-	-	(11,666)
Balance at December 31, 2021	(47,935)	610	(29,347)

	Equity attributable to owners of the Company

	Total	interests	Total equity
Balance at January 1,2021	838,584	257,355	1,095,939
Profit	59,790	8,634	68,424
Other comprehensive income	49,841	(950)	48,891
Comprehensive income	109,631	7,685	117,316
Dividends from surplus	(54,184)	(11,182)	(65,366)
Acquisition of treasury shares	(27)	-	(27)
Disposal of treasury shares	1	-	1
Share-based payments	92	(181)	(89)
Changes in the ownership interest in a subsidiary without a loss of control	81	104	185
Transfer from reserves to retained earnings	-	-	-
Other	-	31	31
Total transactions with owners of the Company	(54,036)	(11,228)	(65,265)
Balance at December 31, 2021	894,179	253,811	1,147,990

Year ended December 31, 2022


	Equity attributable to owners of the Company

	Share capital	Share premium	Retained earnings
Balance at January 1, 2022	102,046	25,104	998,177
Profit Other comprehensive income	-	-	111,007
Comprehensive income	-	-	111,007
Dividends from surplus	-	-	(53,778)
Acquisition of treasury shares	-	-	-
Disposal of treasury shares	-	(0)	-
Share-based payments	-	229	(1)
Changes in the ownership interest in a subsidiary without a loss of control	-	186	-
Transfer from reserves to retained earnings	-	-	8,419
Other	-	-	-
Total transactions with owners of the Company	-	415	(45,361)
Balance at December 31. 2022	102,046	25,519	1,063,823

			(¥ millions)
	Equity attributable to owners of the Company
		Reserves
	Treasury shares	Net change in equity instruments measured at fair value through other comprehensive income	Remeasurements of defined benefit plans
Balance at January 1, 2022	(201,801)	17,978	-
Profit Other comprehensive income	-	1,881	- 5,386
Comprehensive income	-	1,881	5,396
Dividends from surplus	-	-	-
Acquisition of treasury shares	(50.018)	-	-
Disposal of treasury shares	1	-	-
Share-based payments	30	-	-
Changes in the ownership interest in a subsidiary without a loss of control	-	-	-
Transfer from reserves to retained earnings	-	(3,033)	(5,386)
Other	=	-	-
Total transactions with owners of the Company	(49,987)	(3,033)	(5,386)
Balance at December 31. 2022	(251,788)	16,826	-

	Equity attributable to owners of the Company
	Reserves
	Foreign currency translation differences on foreign operations	Cash flow hedges	Total
Balance at January 1, 2022	(47,935)	610	(29,347)
Profit	-	-	-
Other comprehensive income	72,520	(1,598)	78,188
Comprehensive income	72,520	(1,598)	78,188
Dividends from surplus	=	-	-
Acquisition of treasury shares	-	-	-
Disposal of treasury shares	-	-	-
Share-based payments	-	-	-
Changes in the ownership interest in a subsidiary without a loss of control	-	-	-
Transfer from reserves to retained earnings	-	-	(8,419)
Other	-	-	-
Total transactions with owners of the Company	-	-	(8,419)
Balance at December 31, 2022	24,585	(988)	40,423

	Equity attributable to owners of the Company

	Total		Total equity
Balance at January 1, 2022	894,179	253,811	1,147,090
Profit	111,007	32,764	143,771
Other comprehensive income	78,188	(2,124)	76,065
Comprehensive income	189,195	30,641	219,836
Dividends from surplus	(53,778)	(11,688)	(65,466)
Acquisition of treasury shares	(50,018)	-	(50,018)
Disposal of treasury shares	1	-	1
Share-based payments	257	(196)	62
Changes in the ownership interest in a subsidiary without a loss of control	186	632	818
Transfer from reserves to retained earnings	-	-	-
Other	-	(20)	(20)
Total transactions with owners of the Company	(103,352)	(11,271)	(114,623)
Balance at December 31, 2022	980,022	273,181	1,253,203

(4) CONSOLIDATED STATEMENT OF CASH FLOWS

		(¥ millions)
	Year ended December 31, 2021	Year ended December 31, 2022
Cash flows from operating activities
Profit before tax	99,617	191,387
Depreciation and amortization	81,130	85,937
Impairment losses	77,390	66,200
Gain on reversal of impairment losses	-	(13,152)
Interest and dividends received	(2,718)	(4,497)
Share of profit of equity-accounted investees	(34,490)	(22,780)
Interest paid	4,448	4,894
Gain on sale of property, plant and equipment and intangible assets	(3,061)	(9,512)
Loss on disposal and sale of property, plant and equipment and intangible assets	1,782	4,571
Gain on sale of shares of subsidiaries	(23)	-
Gain on sale of equity-accounted investees	-	(48,088)
(Increase) decrease in trade receivables	(9,106)	(8,455)
(Increase) decrease in inventories	(20,353)	(39,490)
Increase (decrease) in trade payables	3,514	18,384
Increase (decrease) in liquor taxes payable	1,586	(7,383)
Other	32,289	(34,002)
Sub-total	232,004	184,014
Interest and dividends received	21,036	24,731
Interest paid	(4,145)	(4,367)
Income taxes paid	(29,592)	(68,815)
Cash flows from (used in) operating activities	219,303	135,562

		(¥ millions)
	Year ended December 31, 2021	Year ended December 31, 2022
Cash flows from investing activities
Acquisition of property, plant and equipment and intangible assets	(86,335)	(98,479)
Proceeds from sale of property, plant and equipment and intangible assets	6,977	11,324
Acquisition of investments	(2,907)	(2,425)
Proceeds from sale of investments	22,122	7,884
Acquisition of shares of subsidiaries, net of cash acquired	(45.455)	(46,183)
Proceeds from sale of shares of subsidiaries, net of cash disposed of	42,886	-
Acquisition of equity-accounted investees	(162)	(9,382)
Proceeds from sale of equity-accounted investees	5,101	122,249
Other	1,365	4,612
Cash flows from (used in) investing activities	(56,408)	(10,399)
Cash flows from financing activities
Increase (decrease) in short-term borrowings	4,641	(6,083)
Increase (decrease) in commercial paper	(81,994)	(55,009)
Proceeds from long-term borrowings	1,000	71,851
Repayment of long-term borrowings	(50,000)	(67,612)
Proceeds from issuance of bonds	70,000	20,000
Payment for redemption of bonds	(40,000)	-
Repayment of lease liabilities	(18,420)	(19,387)
Payment for acquisition of treasury shares	(34)	(50,040)
Payment for acquisition of treasury shares by a consolidated subsidiary	(23)	(11)
Proceeds from settlement of derivatives	-	4,072
Dividends paid	(54,184)	(53,778)
Dividends paid to non-controlling interests	(11,182)	(11,688)
Other	(266)	(151)
Cash flows from (used in) financing activities	(180,463)	(167,835)
Effect of exchange rate changes on cash and cash equivalents	5,388	6,728
Net increase (decrease) in cash and cash equivalents	(12,180)	(35,944)
Cash and cash equivalents at beginning of year	161,667	149,488
Net increase (decrease) in cash and cash equivalents resulting from transfers to assets held for sale	-	(25,484)
Cash and cash equivalents at end of year	149,488	88,060

(5) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(GOING CONCERN ASSUMPTION)

There are no matters to report under this item.

(CHANGES IN ACCOUNTING ESTIMATES)

(Bio-chemicals business)

(Alcoholic Beverages business in Myanmar)

(SEGMENT INFORMATION)

(1) Summary of reportable segments

"Oceania Adult Beverages Business" and "Pharmaceuticals Business."

"Japan Non-alcoholic Beverages Business," for which Kirin Beverage Company, Limited oversees the operations, conducts production and sale of soft drinks in Japan.

"Oceania Adult Beverages Business,'' for which Lion Pty Limited oversees the operations, conducts production and sale of beer, whiskey, spirits and other products in the Oceania region.

"Pharmaceuticals Business," for which Kyowa Kirin Co., Ltd. oversees the operations, conducts production and sale of pharmaceutical products.

Accounting policies for segment information are generally the same as those in the Company's consolidated financial statements.

Inter-segment revenue is based on actual market prices.

(2) Information on reportable segments

Information related to each reportable segment is set out below.

At and for the fiscal year ended December 31, 2021


	Reportable segment
	Japan Beer and Spirits	Japan Nonalcoholic Beverages	Oceania Adult Beverages	Pharmaceuticals
Revenue from unaffiliated customers	661,326	244,386	216.258	351,696
Inter-segment revenue	1,784	2,208	55	550
Total revenue	663,111	246,594	216,314	352,246
Segment income (Note ³ )	70,541	21,099	26,562	61,197

			(¥ millions)

	Others (Note ¹ )	Adjustment (Note ² )	Consolidated
Revenue from unaffiliated customers	347,902	-	1,821,570
Inter-segment revenue	70,293	(74,890)	-
Total revenue	418,196	(74,890)	1,821,570
Segment income (Note ³ )	31,334	(45,303)	165,430
	Other operating income		8,239
	Other operating expenses		105,585
	Finance income		4,087
	Finance costs		7,044
	Share of profit of equity accounted investees		34,490
	Profit before tax		99,617


	Reportable segment
	Japan Beer and Spirits	Japan Nonalcoholic Beverages	Oceania Adult Beverages
Segment assets	432,806	139,176	475,861
Other items
Depreciation and amortization	15,053	7,100	13,337
Impairment losses (excluding financial assets)	-	70	624
Equity-accounted investees	13,343	-	8,837
Capital expenditures	24,739	7,212	13,298

				(¥ millions)
	Reportable segment
	Pharmaceuticals	Others (Note ¹ )	Adjustment (Note ² )	Consolidated
Segment assets	862,091	859,811	(297,612)	2,471,933
Other items
Depreciation and amortization	19,341	20,021	6,279	81,130
Impairment losses (excluding financial assets)	5,286	69,679	1,730	77,390
Equity-accounted investees	-	377,188	-	399,367
Capital expenditures	29,258	25,959	18,522	118,987

^{Notes: 1.} "Others" mainly includes the Wine business in Japan, the Non-alcoholic Beverage business in North America, and the Bio-chemicals business.
^2. Adjustments are as follows:
⁽¹⁾ Adjustment in segment income mainly includes inter-segment eliminations and corporate expenses not attributable to any reportable segment. The expenses are mainly group administrative expenses incurred in the Company, a holding company, and administrative expenses relating to some reportable segments incurred in shared services companies.
⁽²⁾ Adjustment in segment assets includes inter-segment asset and liability eliminations and corporate assets not attributable to any reportable segment. The assets mainly consist of surplus funds (cash), long-term investments (equity instruments) and assets of the administrative department of the Company, a holding company, and shared services companies.
^3. Segment income represents normalized operating profit which is calculated by deducting the total of cost of sales and selling, general and administrative expenses from revenue.

At and for the fiscal year ended December 31, 2022


	Reportable segment
	Japan Beer and Spirits	Japan Nonalcoholic Beverages	Oceania Adult Beverages
Revenue from unaffiliated customers	663,522	243,257	255,900
Inter-segment revenue	1,976	2,513	91
Total revenue	665,499	245,770	255,991
Segment income (Note ³ )	74,660	18,786	31,545

				(¥ millions)
	Reportable segment
	Pharmaceuticals	Others (Note ¹ )	Adjustment (Note ² )	Consolidated
Revenue from unaffiliated customers	397,863	428,925	-	1,989,468
Inter-segment revenue	507	74,819	(79,907)	-
Total revenue	398,371	503,744	(79,907)	1,989,468
Segment income (Note ³ )	82,462	37,545	(53,838)	191,159
		Other operating income		29,454
		Other operating expenses		104,594
		Finance income		10,978
		Finance costs		6,478
		Share of profit of equity-accounted investees		22,780
		Gain on sale of equity-accounted investees		48,088
		Profit before tax		191,387


	Reportable segment
	Japan Beer and Spirits	Japan Nonalcoholic Beverages	Oceania Adult Beverages
Segment assets	432,140	133,184	546,729
Other items
Depreciation and amortization	16,409	6,982	15,106
Impairment losses (excluding financial assets)	-	--	3,525
Gain on reversal of impairment losses	-	-	231
Equity-accounted investees	10,090	-	8,960
Capital expenditures	17,940	9,326	13,107

				(¥ millions)
	Reportable segment
	Pharmaceuticals	Others (Note ¹ )	Adjustment (Note ² )	Consolidated
Segment assets	880,281	885,775	(335,845)	2,542,263
Other items
Depreciation and amortization	18,319	18,922	10,199	85,937
Impairment losses (excluding financial assets)	17,979	44,696	-	66,200
Gain on reversal of impairment losses	-	12,921	-	13,152
Equity-accounted investees	-	342,714	-	361,764
Capital expenditures	33,298	30,421	12,708	116,799