Nomura Investment Forum 2012 - Kirin Holdings · 6 Recent results and outlook FY12 Guidance - Unchanged Strong performance in overseas integrated beverage business Consolidated 3Q

Increase enterprise value through organic growthNomura Investment Forum 2012

December 5, 2012

Senji MiyakePresident and CEO

Kirin Holdings Company, Limited

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Agenda

Introduction

KIRIN at a glance and recent results

Strategic overview

KV2021, Medium-Term Business Plan 2013-2015

Q&A

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IntroductionIntroductionIntroduction

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Beer #2Black tea #1

Beer #1Dairy #1

Beer #2Carbonated #3

Developed～Stable・High growth～

Emerging～Large scale・High growth～

Well-balanced, global business portfolio

Emerging ～High growth～

*Source： Taxation figures etc.

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Secured overseas integrated beverages business foundation

Strengthened cost competitiveness and increased efficiency

Realized integration synergies in pharmaceuticals business

Stepping Out

2019-2021

Moving Forward

Grow Japanese integrated beverages business

Pursue organic growth at overseas acquisitions

Deepen synergies within integrated beverages group strategy

2016-2018

2013-2015

2010-2012

2007-2009

KV2015 KV2021

Building on KV2015 with a new stage to produce steady, strong results

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Recent results and outlook

FY12 Guidance - Unchanged

Strong performance in overseas integrated beverage business

Consolidated 3Q FY12 GuidanceSales 1,606.1 2,220.0Operating income 105.2 155.0Net income 25.3 48.0Normalized EPS* - 116yen

（Billion yen）

* Normalization: Removing extraordinary gains and losses and other non-operating items to reflect actual earnings more accuratelyFor definitions of normalized EBITDA, EPS and consolidated payout ratio please see slide 22FY2012 estimated normalized EBITDA is ¥315.7 bn; Normalized EPS ¥116

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Strategic overviewStrategic overviewStrategic overview

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KV2021 Business model

Sustainably increase enterprise value through organic growth～Leverage diversity and co-create brand value with consumers and communities～

High value

Sustainable

Diverse within “One Kirin” Values

Insightful & Innovative

OrganicOrganic Pursue organic growth within the areas developed under KV2015

Produce strong results and increase enterprise value

Generate sustainable growth through a virtuous cycle of growth and investment

Achieve deep insight into consumers and society to co-create brand value

Underpinned by shared values, leverage Kirin’s diversity to enable autonomous management by businesses closely aligned with customers in each region

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3-year shift to organic growth

Generate stable cash flow Target: Mid single-digit CAGR in normalized EBITDA*Guidance (to be updated every year) : Consolidated sales ¥2,300bn plus, operating income ¥180bn plus

Increase shareholder value Target: High single-digit CAGR in normalized EPS*through stronger earnings

Enhance shareholder returns Increase dividend with 30% consolidated payout ratio on normalized EPS*

Growth strategy / 2013-2015 MTBP

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Dividend per share

17yen

21 23 23 25 27 27 Increase dividend with 30% consolidated payout ratio on normalized EPS*

Deliver results aligned with the business stage of each region

Achieve growth in the Japanese integrated beverages business

OOrganicrganic

* Normalization: Removing extraordinary gains and losses and other non-operating items to reflect actual earnings more accuratelyFor definitions of normalized EBITDA, EPS and consolidated payout ratio please see slide 22FY2012 estimated normalized EBITDA is ¥315.7 bn; Normalized EPS ¥116

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Operating Cash Flow

Investment Cash Flow

¥700bn plus(Higher than previous MTBP)

Approximately ¥300bn

Enhance returns to shareholders

Increase dividends in line with growth in normalized EPSConsolidated payout ratio of 30%

FCF¥400bn+

<Cash flow during 2013MTBP>

Increase financial flexibility by steadily reducing debt

Additional returns to shareholders, including share buybacks, will also be considered

Enhance shareholder returns Steadily reduce debt and increase financial flexibility

Repay debt

Financial strategy / 2013-2015 MTBP

(Excluding strategic investment for growth)

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Japan integrated beverages businessJapan integrated Japan integrated beverages businessbeverages business

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Further growth through fostering strong brands

＜New management structure (Jan 2013～）＞

Optimize resource allocation beyond alcohol and soft drinks categories

Soft drinksKirin Beverage

Kirin Company

Pursue brand-centered management (strong products, strong KIRIN brand)~ Manage brands based on deeper customer insight to strengthen core brands and stimulate innovation Increase specialist capabilities and strengthen organizational capabilities Allocate strategic resources to optimize overall performance, beyond

alcohol and soft drink framework Free up resources by integrating overlapping functions and increasing

efficiency

Kirin Brewery

Alcohol beveragesMercian

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Innovation

“A new draft beer experience—frozen to minus 5 degrees to sustain icy cold drinking pleasure over 30 minutes”

Innovation

World first!Recognized as functional food that limits the absorption of dietary fat

Kirin Mets Cola

Kirin Ichiban Frozen Draft

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Overseas integrated beverages business:Oceania・Brazil・Asia

Overseas integrated Overseas integrated beverages business:beverages business:OceaniaOceania・・BrazilBrazil・・AsiaAsia

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James Squire

Boost market presence through appeal of strengthened brand portfolio

<Achievements under 2010 MTBP> Secured leading share in Australian beer market Grew XXXX Gold to become Australia’s No. 1 beer brand Enhanced line-up in growth categories

- introduced Corona and other international premium brands

- secured No.1 share in craft beers

Corona Stella Artois

Guinness

Little Creatures

InternationalPremium

InternationalPremium

Craft BeerCraft Beer

Alcohol beverages

Soft drink beverages

Oceania

Australia’s No.1 beer brandAustralia’s No.1 beer brand

Improve profitability by optimizing manufacturing network and route to market

Broaden scope of high added value products Allocate appropriate resources to establish NARTD brand

as source of future growth

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Brazil

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Boost sales in line with market growth while improving efficiency to reduce costs Realize a significant increase in earnings

Construct strong brand portfolioFine-tune distribution network to ensure optimal service to expanding customer touch pointsReform value chain processes to achieve low cost operations

Beer Secure a strong No.2 market position

Soft drink Increase presence in carbonated category and drive innovation

Progress since acquisition by KIRIN in November 2011

Steady progress toward annual sales targets<Beer> Annual target: On par with market (+2.8%) / 3Q: +5.3%<Soft drink> Annual target: Greater than market (+3.8%) / 3Q: +10.8%

Strong ongoing presence in high-growth northeast region Good progress in PMI (post-merger integration)

Brazil

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Asia Southeast Asia (excl. Philippines)

Build a business foundation in each market, centered on Vietnam & Thailand, under Kirin Holdings Singapore Note: The existing business relationship with Fraser & Neave is currently under review

Soft drinks Vietnam

- Strengthen well-known Interfood brands (Wonderfarm) in the soft drinks market- Create new categories centered on a new KIRIN brand axis- Revise and strengthen sales structure Thailand

- Further promote the KIRIN brand (Tea Break)- Reform cost structure with measures to lower cost price

BeerActively develop KIRIN as a premium brand

The Philippines (San Miguel Brewery)

Maintain dominant domestic beer market share by ensuring optimal brand portfolio

China

Soft drinks Construct a countrywide soft drinks platform through JV with China Resources Enterprise (China Resources Kirin Beverages), aiming for dramatic growth

Beer Stabilize revenue base and achieve continued growth in sales of KIRIN brand products

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画像orパイプライン？

Pharmaceuticals & bio-chemicals business (Kyowa Hakko Kirin)

Pharmaceuticals business

Bio-chemicals business

Note: Kyowa Hakko Kirin’s new Medium-term Business Plan is due to be announced in January 2013

Enhance product line-up and pipeline in core therapeutic areas and accelerate development of strong competitive positions in each market region

Continue to advance global development by strengthening operations in the US and Europe and implementing strategies in Asia that reflect the prevailing business environment in each country

In R&D, continue initiatives to create innovative new agents that address unmet medical needs

At Kyowa Hakko Bio, focus on achieving further technical developments and enhancing the supply structure, centered on the expanding global market for high added value amino acids

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CSR policy

Shareholder groups and value co-creation

In support of Kirin’s brand-centered management approach, through which Kirin aims to deepen engagement with stakeholders and take its CSR activities to the next level, Kirin is adopting a “CSV” (Creating Shared Value*) approach to business. With CSV, Kirin aims to create value together with a wide range of stakeholders through its overall business activities along the value chain

*CSV is a management concept that combines two ideas: engaging in societal issues to create social value, and improving a company’s competitive position

Take a broader approach to the concept of corporate responsibility by aiming to create value together with customers and communities

Engage in value co-creation with stakeholders throughout the value chain, rather than positioning CSR as a separate activity

Establish six stakeholder groups common to Kirin’s entire organization

Pursue shared themes- Based on the UN Global Compact:* Environment; quality; human rights; labor; anti-corruption- Based on Kirin’s business characteristics:Promoting health; strengthening bonds between people and society

Key elements of revised CSR policy

*The United Nations Global Compact is a UN initiative for corporations to adopt 10 core principles. Kirin joined the compact in 2005.

CustomersCustomers

EnvironmentEnvironmentCommunityCommunity

EmployeesEmployees

Business partnersBusiness partners

Shareholders, Investors

Shareholders, Investors

KirinGroupKirin

GroupCo-create values with various communities

Develop mutual trust and collaboration

Co-create value through a brand centered management approach

Create a sustainable society

Achieve sustainable growth of enterprise value

Co-creation with employees and organization

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Management summary

Under KV2015, Kirin has developed as an integrated beverages group, making aquantum leap in growth to create an expanded, global business base

Reflecting changes to the operating environment and business issues facing the Group, Kirin has developed a new roadmap for progress Kirin Group Vision 2021 (KV2021), Kirin Group’s long-term business outlook

The focus of KV2021 is to increase Kirin’s capacity for organic growth through creating brand value with customers and communities, and sustainably increase enterprise value with world-class management excellence

The 2013 MTBP is positioned as three years to shift to organic growth, establishing “Brand-centered management” to maintain superior competitive positions

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For reference: Definitions of terms and indices

<EBITDA>As revised Normalized EBITDA = operating income + depreciation + goodwill amortization

+ dividends received from equity method affiliated companies

Previous EBITDA = operating income + gains or losses on equity method investments + depreciation ＋ goodwill amortization ＋ extraordinary gains or losses

<EPS>As revised Normalized EPS = adjusted net income / average number of shares outstanding during period

*Adjusted net income = net income ＋ amortization of goodwill etc. ± extraordinary gains or losses after income taxes, etc.

Previous EPS before amortization of goodwill etc. = net income ＋ amortization of goodwill, etc. ＋ goodwill impairment and other adjustments / average number of shares outstanding during period

<Payout ratio>As revised Consolidated payout ratio of 30% based on the profit level ( = Normalized EPS: net income for period after restoration of

amortization of all goodwill, etc. and extraordinary gains or losses after income taxes, etc.)

Previous Consolidated payout ratio of 30%+ taking into account the impact of amortization of goodwill, etc. associated with investment for growth since 2007

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