Message from Top Management

Overview of the Kirin Group

INPUT

BUSINESSOUTPUT / OUTCOME

Special FeatureSpecial feature 1

Example of Business Activities Based on the Value Creation Model

INPUT

BUSIN E SS

As infrastructure that creates innovation,
the following resources were invested

OUTPUT

Social issues

In order to resolve social issues in the food service
industry, the Sales Department and Corporate Planning
Department, Kirin Brewery, and the members of theInstitute for Packaging Innovation, Kirin Holdings
Company, Limited, gathered to collaborate on a project anddeveloped TAPPY, a next-generation beer server.

Since COVID-19 was reclassified as a Class 5 infectious disease, food service demandhas recovered, but while restaurants are becoming busier, several issues such as worker
shortages and logistics issues are coming to surface in the food service industry. To
create a sustainable food service industry, it is vital that these social issues are resolved.

OUTPUTKIRIN INTEGRATED REPORT 2024

OUTCOME
Received support of restaurants andalcoholic-beverage retailers and createdeconomic and social value.

Improved the experience ofdrinking KIRIN ICHIBAN

Expanded the number ofretailersSocial value

Reduction of worker shortages in thebusiness market
Reduction of food loss (loss of beerduring cleaning, etc.)
Reduction of worker shortages inrestaurants and logistics
Reduction of GHG fromtransportation

Consumer centric marketing expertise

58

Reference

In business activities, the Kirin Group uses the Value Creation Model, which sustainably
amplifies social and economic value through a cycle from INPUT to OUTCOME. In
this special feature, we look at TAPPY , small dispensers, of Kirin Brewery Company,
Limited, and how it is creating value.

Social issues that will be resolved

DLC Coating, the Kirin Group’s proprietary gas barrier technology, is used on the inside surface of the plastic bottle
containers for the beer used with TAPPY. This coating
prevents oxygen infiltration, suppresses beer oxidation, andenables the beer to maintain its quality for an extended
period. TAPPY incorporates a series of unique designs in
its beer flow path for rapid cleaning.

In addition to in-person sales activities conducted by Kirin
Brewery’s sales representative, Kirin Brewery is also making
efforts in new sales activities using digital technology. They
are also digitalizing negotiation methods and tools, such as
using social media advertisements to guide consumers to
the TAPPY website, leading to transactions, and creating QR
codes that connect to explanatory videos for TAPPY.

TCFD・TNFD

Economic valueCore technology that assures value creation

ICT accelerating value creation

Strategies and Reviews ofOperating Companies

Took social issues as opportunities for growth,
leveraged INPUT, and engaged in business.
As a result, TAPPY ,a solution to social issues, was born.

Diversity and inclusion, culture for innovation

With the diversification of consumers’ tastes, there has
been a reduction in the amount of beer being orderedat restaurants and of opportunities to eat out. This hascaused it to take longer for a barrel of beer (minimum of 7L) to be consumed, creating the possibility of serving beerthat has lost its quality. In order to provide customers withfresh, delicious beer, Kirin Brewery developed a service
using small 3 L plastic bottle containers.

GovernanceValue for consumers
Contribute to resolving social issues, such as by securing sufficientprofits in the entire food service industry, revitalizing the beer and foodservice markets, and reducing the burden on logistics and food loss.
Small plastic bottle
containers that arequickly replaced makes it

Light bottles and easycleaning makes it

Nearly negligible
beer loss makes it

De l i c i o u s

S i m pl e

Eco n o m i cal

Bottles hold 3 L. They
are changed after
about 10 servings, so
it’s always fresh.

Small, light bottles
makes it easy tocarry and change
them.

Almost no beer is lost
after bottle replacement
or when rinsing theserver with water.

Bottles are
consistently chilled
after opening, so they
are slow to expire.

Cleaning thedispenser is now
much easier.

Reduces the yearlycosts of a restaurant by
about 160,000 yen.**According to Kirin Brewery

Delicious KIRIN ICHIBAN can beenjoyed at even more locations

Value enjoyed by TAPPY partners

Restaurants

Increased sales from improved
quality, less burden on workers,
and larger profits from less beerloss during cleaning and lesslabor

Alcoholic-beverage retailers& exclusive distributors

PDF/PC 兼用

Less burden on workers andlarger profits from reduced
logistics and labor costs

Now available at more than 20,000
locations in Japan since national launch
2.5 years ago!

Due to the recent rise in the number of restaurants with few staff
members, drink service and low-cost operations are important toefficiently operate the restaurant and secure sales and profit. TAPPY,
which provides everyone with easy access to delicious beer, is alsoeasy to introduce at small restaurants. It has thus continued to be
adopted by more restaurants in Japan since its national launch,exceeding 20,000 locations in just 2.5 years!

Number of locations using TAPPY
05,000 10,000 15,000 20,000 25,000

End of 2021

End of 2022

End of 2023

KIRIN INTEGRATED REPORT 2024

59

Message from Top Management

Overview of the Kirin Group

INPUT

BUSINESSOUTPUT / OUTCOME

Special feature 2

The Kirin Group is aiming to be a global leader in CSV andis committed to resolving social issues through business.
As can be seen from the impact of COVID-19, the social
issue of health is an area of great significance in termsof both social and economic value. Our Group’s expertisein fermentation and biotechnology, honed through morethan a century of experience in the beer industry, enabled
us to enter the pharmaceutical market 40 years ago. Now,
we are applying these technologies to the Health Science
domain to tackle global health challenges.
Furthermore, what we value in resolving healthissues is our Group’s unique approach to enhance innate
human capabilities. This strategy involves pursuing boththe “building a foundation of health” approach that targets
immunity, which is important to all people regardless ofrace, gender, or age, and the resolution of individual healthissues such as lifestyle disease and brain function.

domain is our ability to maximize our Group’s capacity
for operating our businesses in the three domains ofFood & Beverages, Pharmaceuticals, and Health Science.
In addition to the fermentation and biotechnology
mentioned earlier, we are also maximizing thedemonstration of our consumer relationship-building
skills cultivated in the Food & Beverages domain andour knowledge in the Pharmaceuticals domain in the
Health Science domain. Particularly since establishing
the Health Science Business Department in 2022,
collaboration between operating companies has becomesmoother not only in R&D but also in various other areas,and each company involved in the Health Science domain
is heading toward a shared goal with a sense of speed.
For example, businesses utilizing LC-Plasma,
our Group’s unique material, collaborated with Group
companies and domestic and overseas partnercompanies to develop a varied lineup so that moreconsumers can easily take part in “immune care” any

Maximizing strengths and synergies ofeach company and accelerating progress
forward as one GroupThe strength of our Group’s Health Science

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KIRIN INTEGRATED REPORT 2024

Strategies and Reviews ofOperating Companies

TCFD・TNFD

Reference

Prevention oflifestyle-relateddiseases (obesity)

Brain function
maintenanceSkin health(beauty)

Infection
controlmeasuresStress relief,vitality, etc.

Individual health issues
We resolve issues that impair healthand well-being by leveraging
the Group’s strengths in everythingfrom materials to services.

The innate power of

immunity*Foundationin humans

Diet(nutrition)

Exercise

Director of the Board,
Senior Executive Officer
Kirin Holdings Company, Limited

Aiming to Be One of Asia-Pacific’s Largest Health
Science Companies by Leveraging Our Proprietary
Materials and Technologies, Including LC-Plasma

A unique approach that addresses
building a foundation of health andindividual health issues

What will lead to fundamental
and effective solutions are notconventional treatments forindividual health issues, but
unique approaches from theperspectives of building afoundation of health and individual health issues based on
the concept of enhancing
innate human capabilities.

Governance

Toru Yoshimura

Message from
Director of the Board,
Senior Executive Officer
of Health Science Strategy

Solving health issues
through uniqueapproaches

Special Feature

Rest

Immunecare*Among the innate capabilities of human beings,
immunity is essential to all people,
regardless of race, gender, or age, like a software that controls health.

We build a foundation for healthby approaching immunity with materials
and products such as Lactococcus lactis strain
Plasma (LC-Plasma) and HMOs, and lifestylesupport such as intestinal microflora testing.

place at any time. There is now a total of 59 products
from 16 companies that are infused with LC-Plasma inJapan and is sold as a finished product in 11 countries
around the world.
As a result of several Group companies’ efforts,
including Kirin Beverage, which labels the Health Science
domain as a growth driver, creating a new market; Koiwai
Dairy greatly contributing to the production of yogurt
and LC-Plasma bacteria; Kyowa Hakko Bio, which has
played an important role in global regulatory complianceand sales; FANCL building a foundation for consumer
contact in health foods; and the Group working to
spread products from partner companies in a variety of
categories, we achieved a sales revenue of 20 billion yen
in 2023.
Going forward, we hope to further enhance Groupinitiatives like the above and to promote business with agreater sense of speed. In 2024, we will be focusing on
expanding our brand business based on B2C consumer
business, which is one of our Group's strengths, further
strengthened by the acquisition of Blackmores in 2023.
By concentrating our resources in areas of strength,
we will maximize the strengths and synergies of each
operating company to achieve business results asquickly as possible. Additionally, we will aim to become
one of Asia-Pacific’s largest health science companies
contributing to solving the health issues of manycustomers in Asia-Pacific, including Japan.
However, this will be supported, as always, by theGroup's unique R&D capabilities and its ability to build
relationships with customers. We will also utilize our
new knowledge acquired from Blackmores to developfunctional materials and products that meet consumer
needs and will strengthen each organizational capability
necessary to deliver them. As part of these efforts, wewill continue to prioritize the revitalization of Kyowa
Hakko Bio and the building of their strong operating baseas a priority issue, and we will concentrate on promoting
structural reform and our specialty businesses, as well as
rebuilding the trust in our business.

Grow the Health Science domain into a
new pillar of support for the Kirin GroupThe Health Science domain is a new business within
our Group. There is difficulty in not rushing to grow thebusiness well, but we are taking it on with comprehensive
support from our Group and the fiery passion of those
involved in the business. Even I, who was appointed thepresident of the Health Science Division this spring, am
feeling a strong sense of mission and excitement. Thisis because, beyond the health value we will provide bymaking the most of our Group’s unique strengths, are thejoy and smiles of our consumers. To start, we will bringhealth and smiles to more consumers around the world
by establishing an operating base in the Asia-Pacific,
improving profitability while accumulating organizational
capabilities, expanding into areas expected to achieve
new growth and be profitable in the medium- to long-term,
including North America, and improving our product andservice portfolio through innovation. We will deliver healthand smiles to even more consumers around the world.
Then, with this in mind, we will grow the Health Science
domain into a new pillar that supports our Group’s
operations.

KIRIN INTEGRATED REPORT 2024

61

Message from Top Management

Overview of the Kirin Group

INPUT

BUSINESSOUTPUT / OUTCOME

Commitment in
Respect for
Human Rights

Kirin Group Human Rights Policy
The Kirin Group revised the Kirin Group Human Rights Policy in October 2023 in order to step up its human rights efforts tothe level of global best practices, taking into account changes in the global environment surrounding human rights and ourexperience in Myanmar.
We continually evolve initiatives to generate positive impacts on society.

joint venture there. Through our experience in Myanmar, we
recognized that there were challenges in terms of the current
human rights efforts. Believing that it was our responsibility
to pass down the lessons learned, we revised the Kirin Group
Human Rights Policy (hereinafter “Human Rights Policy”) in
October 2023 with the aim of stepping up our human rights
efforts to the level of global best practices.

Junko Tsuboi
CPO (Group Human CapitalManagement)
Director of the Board, Senior
Executive Vice President
Kirin Holdings Company, Limited

Generating more positive impacts
on society

Aiming to be at the level ofglobal best practices

Our approach has conventionally focused on the perspectiveof value protection, with our main efforts on mitigating
negative impacts on human rights. Going forward, we will also
incorporate the perspective of bringing about positive impacts
on society in the form of economic development by making
efforts to address respect for human rights. Additionally, until
now, efforts have been centered around the Alcoholic Beverages,
Non-alcoholic Beverages, and Pharmaceuticals businesses, butwith the expansion of business domains, we stepped up ourefforts so that they can be leveraged at all Group companies,
including those in the Health Science business, in the future.
When revising the Human Rights Policy, we exchanged opinionswith not only labor unions, but also external human rights
experts, and included their feedback in the revisions.
There are three key points of the Kirin Group Human
Rights Policy. The first is that this policy is our Group’s

Since the United Nations (UN) adopted the Guiding Principles
on Business and Human Rights in 2011, the environment
surrounding human rights has greatly changed, now requiring
all companies to fulfill their responsibility to respect humanrights. The Kirin Group, who has been committed to humanrights awareness activities for more than 40 years, also views
business and human rights as management issues and has
placed “respect for human rights” in the top row of the GMM.*
In addition, we established the Kirin Group Human Rights Policy
in 2018, one of the first Japanese companies to do so, and haveaimed to address human rights in line with global standards.
After the coup d’état broke out in Myanmar in February
2021, it was in accordance with the Kirin Group Human Rights
Policy that we immediately announced the dissolution of our

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・Coup d’état breaks out, Groupannounces dissolution of joint
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・Revises Kirin Group
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Sustainable
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International (����)・Establishes CSV Strategy

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KIRIN INTEGRATED REPORT 2024

����・Japan decides to establish
National Action Plan (����)* Questions on contributions made for humanitarian aid in the Rakhine State war** Human rights grievance mechanism required of the UN Guiding Principles on Business and Human Rights

62

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・UK establishes Modern Slavery Act (����)・Group decides to expand overseas,
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・Buraku directories

Governance

Strategies and Reviews ofOperating Companies

TCFD・TNFDKey Points of the Kirin Group Human Rights Policy Revisions

Special feature 3���� ���� ���� ����Special Feature

・Launches Supplier
Hotline homepage(����)

・Joins JaCER**(����)

Exchanging ideas with external human rights experts

With All
Stakeholders
on the Value Chain

Compliance with
Global Standards

This Human Rights Policy is our Group
commitment to respect human rights.

We have developed and reﬁned thecontent of the policy compared to

In addition to applying the policy toall oﬃcers and employees ofhuman rights violations), we haveclearly stated that we will create

on Business and Human Rights* andexamples of leading companies.

that we require our various business
partners involved in our entire

In addition to reducing negative
impacts on human rights (such as
more positive impacts on society.

To realize this goal, we will prioritize
our eﬀorts in order of priority,
starting with areas with the greatest
challenges.

the ���� version by referring to theUnited Nations Guiding Principles*Formulated by the United Nations in ����.
Internationally used as a guideline forrespecting human rights in corporate activities.

Reference

domestic and overseas Group
companies, we have clearly statedbusiness (value chain), including R&D,
procurement, manufacturing,logistics, sales, distribution, anddisposal, to understand and comply
with this policy.

commitment to respect human rights. The Human Rights Policy
has been positioned as the top-level policy for all documents andstandards related to efforts to respect human rights in Groupbusiness activities and aims to reduce the negative impacts onhuman rights as well as bring about positive impacts on society.
The second is that the policy conforms to global
standards. This Human Rights Policy aims to support andimplement the contents of international human rights standards,
such as the International Bill of Human Rights, the Declaration
on Fundamental Principles and Rights at Work, and the Tripartite
Declaration of Principles concerning Multinational Enterprises
and Social Policy (MNE Declaration) of the International Labour
Organization (ILO).
The third is that the Human Rights Policy requires all relatedparties throughout the value chain to understand and comply with
it. The Human Rights Policy clearly states that understanding andcompliance are required of not only Group officers and employees
inside and outside of Japan, but also of business partners involvedin our entire business, including R&D, procurement, manufacturing,logistics, sales, distribution, and disposal.

Evaluating human rights risks
throughout the value chain
Until now, our Group has identified important human rights
issues and performed on-site audits in the supply chain basedon human rights risk evaluations toward building a foundation
for the Group’s human rights due diligence. Furthermore, weestablished a cross-group meeting beneath the Group CSV
Committee and built a governance structure.
In order to continue to transform our human rights
initiatives beyond 2024, we will review internal rules andregulations and contracts with business partners and, as we rollthem out, we will analyze and evaluate human risks throughout
the entire value chain.
As the base of these efforts to respect human rights, wewill continue our human rights awareness training for officers
and employees so as to create understanding and practicalimplementation. On top of that, we will fulfill our responsibility
as a company while bringing about positive impacts andcontributing to the realization of a sustainable society throughrespect for the human rights of society and communities.
*Group Materiality Matrix. Identifies management issues for sustainablegrowth. Details on page 21

ExampleHuman rights awareness training for
officers and employees
When it comes to efforts to respect human rights, understanding andimplementation by officers and employees are essential. We are continuing theannual implementation of training at different levels and human rights awarenesstraining for all employees to instill the Human Rights Policy, create a great place towork , deepen understanding of business and human rights, and so that everyone
respects the human rights of all our stakeholders, including our business
partners. One of our particularly unique efforts is our annual human rights
awareness training for presidents and officers of Group companies in Japan. We
invite external lecturers to help top management deepen their understanding ofcontemporary human rights issues and recognize the importance of embedding
respect for human rights in the management foundation, with the aim ofreflecting these insights in their management practices.
Additionally, each Group company has appointed a human rights
contact person to provide consultation services. The assigned person will attend
internal and external training programs, etc. to polish their skills in order to offer
effective consultation services and improve each company’s human rights
awareness. In order to confirm the effectiveness of these services, we implement
yearly human rights awareness surveys and analyze the results to gain anunderstanding of changes in awareness and issues that need to be addressed.

On-site audits by third-party organizations
In the upstream supply chain, where risks are high, we have prioritized andperformed detailed checks on the status of human rights compliance at raw
material suppliers. In regard to Sri Lankan black tea leaves, we performed thirdparty on-site audits at the topmost black tea plantation, whose results showedsome issues in the work environment. Thereafter, we introduced corrective
actions and performed follow-up audits. We will prevent the recurrence of
these issues through continual monitoring going forward.

Joining JaCER(external grievance mechanism)
In 2023, we joined JaCER, an external organization that responds to grievancesand reports from various stakeholders about human rights in English andJapanese. In response to the reports received by JaCER’s consultation desk, we
carry out investigations based on the results of JaCER’s initial investigation of
the report’s contents. We then implement the necessary dialogues regarding thereport and corrective action (including recurrence prevention and responses toopposition). We are committed to resolving human rights issues by fairly andtransparently handling grievances and appropriately responding to reports.
The progress regarding these efforts is available on our
corporate information website.

KIRIN INTEGRATED REPORT 2024

63

Message from Top Management

Overview of the Kirin Group

INPUT

BUSINESSOUTPUT / OUTCOME

Special Feature

Governance

Strategies and Reviews ofOperating Companies

TCFD・TNFD

ReferenceSpecial feature 4

Shinya Katanozaka
Independent Non-executive Directorof the Board(Member of the Nomination andRemuneration Advisory Committee)

Interview with IndependentNon-executive Directors
Assessing the Group’s Entrance Into the New Health Science Business——One year has passed since you were appointed a
non-executive director of the board. How would you
assess Kirin’s business portfolio management?
The Kirin Group has built a business portfolio from its
existing Alcoholic Beverages, Non-alcoholic Beverages,
and Pharmaceuticals businesses and their new Health
Science business, with their founding business’
fermentation and biotechnology at its core. If looking
at the Food & Beverages, Pharmaceuticals, and Health
Science businesses separately, there are corporations
with bigger business than the Kirin Group, but there isno other company centered on the above three at thesame time. I believe this is what makes the Group’sbusiness portfolio incredibly unique.
Currently, the Kirin Group is stepping up
investment in its new Health Science business, but asof the end of FY2023, the Health Science business has
not produced clear results, and Kyowa Hakko Bio has
posted impairment losses for two consecutive years,
which has raised harsh comments from shareholders
and others in capital markets. It is true that themonetization of the Health Science business—labeleda driver of medium- to long-term growth—is delayed, so
it is not surprising that we are hearing stark criticism
from all our investors. Thus, the Board of Directors
is focusing on the progress of the Health Science

64

KIRIN INTEGRATED REPORT 2024

business and its future growth strategies, taking up alarge portion of our discussions. We especially spenttime on the topic in FY2023 due to the acquisition ofBlackmores Limited.
I believe that in the age of VUCA (volatility,
uncertainty, complexity, and ambiguity), it is difficult
for a company to grow further if it only stays in its
existing businesses, and in some cases, it may evendecline. Hence, I have no qualms about the Kirin
Group's policy of entering and investing in new Health
Science businesses. However, it takes time for new
initiatives to produce results, and until then, I think it isnatural that stakeholders may not be all in favor of the
Health Science business.
Looking back on my own experience, ANA
Holdings Inc., at which I am chairman of the board,experienced a similar situation when they started
scheduling regular international flights as a new
business 38 years ago. At the time, ANA Holdings
boasted the largest share of the existing domestic
flight business at 50%. However, in the international
flight business, there was already a leading company
with a monopoly on the business, and due to ANA
Holdings’ status as a latecomer, awareness of thecompany’s name continued to be low overseas. For
this reason, the belief that it was unnecessary toattempt new business with such risks was the trend

Providing a Unique Outside
Perspective andStimulating Discussion on
Achievement of Growth
Strategies

Shinya Katanozaka
Member of the board, chairman, ANA
Holdings Inc. (current).
Assumed position of director (outside
director), Tokio Marine Holdings, Inc., in 2020,
and as independent non-executive directorof the board (member of the Nomination andRemuneration Advisory Committee) of Kirin
Holdings Company, Limited, in 2023.

Japanese shares have grown from approximately
30% to more than 50%, indicating the company’s
recognition as a global airline company both by Japanand overseas. However, when the COVID-19 virus
spread in 2020, ANA Holdings faced severe financial
difficulties as the movement of people on both
domestic and international flights came to a halt.
However, there is no telling how long thesecircumstances will continue. It is for this reason
that, in addition to their existing airline and cargobusinesses, ANA Holdings will continue to take on
new challenges to drive continued growth. These
challenges include ANA Avatar, which will be usedin transportation as a measure to help reduce CO2
emissions, development of a flying car to achieve
emission-free urban air transportation, and otherefforts.
This trend is common with that of the Kirin
Group. The Pharmaceuticals business that has
now cemented its position as a pillar within the
Kirin Group's continued
Group was launched in 1982, and it took timecommitment to taking
to embrace the introduction of fermentation
and biotechnology into pharmaceuticals. But,
on new business challenges
looking back at it now, it can be said that top
management’s decision at the time was thecorrect one.
Based on this history, I am sympathetic to the
Kirin Group's approach to new businesses with aneye to the future. I am also confident that, in thenear future, a time will come when stakeholders
will agree with the Kirin Group’s decision to enter
the Health Science business.

for a while, and many people, both outside and inside
the company, argued that ANA Holdings should
withdraw from the international flight business.
Despite this past, however, ANA Holdings'
absolute position in the domestic flight business
was shaken 16 years later when the second and thirdlargest competitors increased their domestic flightmarket share significantly through mergers and thewave of new airline companies entered the market.
Under such circumstances, the international
flight business was now what was supporting ANA
Holdings’ management. In addition to being highly
praised for their courteous, Japanese-style hospitality
services, the company’s awareness grew throughtie-ups, such as Pokémon Air Adventures. Inbounddemand has also become favorable, and non-

KIRIN INTEGRATED REPORT 2024

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Message from Top Management

Overview of the Kirin Group

INPUT

BUSINESSOUTPUT / OUTCOME

Special Feature

Governance

Strategies and Reviews ofOperating Companies

TCFD・TNFD

ReferenceSpecial feature 4
04

Interview
with Independent Non-executive Directors
社外取締役インタビュー

Continuing to assess performance ofthe Kirin Group as

Sufficient information is provided during the board’s deliberations—— How do you feel about participating in Kirin’s Boardof Directors?
The Kirin Group's Board of Directors is unique in that it
is chaired by a non-executive director. While there arecompanies in Japan where a non-executive director chairs
the board, the Kirin Group's system is new to me because
ANA Holdings, for which I serve as chairman of the board,
and Tokio Marine Holdings, for which I serve as outside
director, are chaired by internal directors. Thus, I find thestructure of the Kirin Group’s board to be refreshing. If thechairperson comes from within the company, it is easy topositively approach the implementation and achievementof the agenda due to having desires similar to those of theexecutives. On the other hand, non-executive directors of theboard can calmly approach them from a non-biased position.
Another feature of the Kirin Group’s Board of
Directors is that, generally, directors in charge directly
respond to questions received from non-executive directors.
I was also surprised that the CEO does not speak morethan is necessary. I understand that this is so that he does
not guide the direction of discussions. Of course, the CEO
clearly states his views on important issues and questions
that should be answered by top management. Because weare able to openly exchange opinions, regardless of beingfrom within or outside the company, I do not see any major
shortcomings in the current Board of Directors’ method of
discussion.
This issue has already been resolved, but until
last fiscal year, the Kirin Group did not record comments
made during opinion exchanges, information sharing,or other discussions held outside of board meetings on
topics outside of issues to be resolved and reported in
the minutes in order to encourage free speech. However,
all non-executive directors of the board, including myself,
are freely sharing our honest opinions, and I felt that theyshould be recorded. This is because it is better for the
Board of Directors to be more transparent and to makethe discussions had and decisions made more accessible.
Furthermore, by leaving minutes, people are more likely to
speak with a greater sense of responsibility.
Other non-executive directors of the board were of
the same opinion, and, from this April, we held discussions
with the board about some matters of opinion exchanges
and decided to record minutes. I am encouraged by the66

KIRIN INTEGRATED REPORT 2024

an non-executive director

Kirin Group's ability to act quickly.
——Is sufficient information being shared with nonexecutive directors?
At the Kirin Group, an agenda and documents for board
meetings are distributed about a week in advance. Alongwith these documents, I was very surprised to see videos
of each executive, each leader, and others explaining theagenda items. It is a great system in which the people incharge can explain the topics in their own words, clearlycommunicating their passion.
As opportunities to engage with Group members,
I also participated in Group President Meetings, which
are attended by top leaders of each Group company,
and observed factories/breweries, offices, research
centers, and other Group company facilities. During
these observations, I had opportunities to socialize withGroup members, such as by listening to presentations
on projects being implemented by employees at eachlocation and more. Additionally, my visits to multiple
retailers to observe actual product sales, sales spacecreation, and more were great opportunities.
Through such initiatives, I am able to gain a deeper
understanding of the agenda. I am also very impressedwith the sufficient sharing of information with nonexecutive directors. Rather, the amount of information anddocuments provided is about double or triple that of othercompanies. It’s almost too much (laughs).
To raise the level of information provision toanother level, we believe that it would be effective toprovide additional information on the status of opinions infavor of or against proposals made at meetings held withineach Group company prior to their submission to the Boardof Directors. Say that a proposal was unanimously agreed
upon at a Group company meeting—this would point to
the high possibility that the proposal is one that shouldbe implemented by the Kirin Group. Therefore, we must
be more careful in determining whether the decision to
implement the proposal deviates from the opinions ofsociety and shareholders. Knowing how decisions weremade during company discussions and why people inthe company were against agenda items would help
to deepen discussions with the board, so I want thisinformation to be shared in addition.

New structure expresses seriousness in achieving KV2027—— How do you rate Kirin’s governance structure?
It is generally accepted that Japan began governanceefforts after the first corporate governance code wasenacted in 2015. The Kirin Group has been strengthening
governance efforts since more than 10 years prior to that,and I think that is wonderful.
Furthermore, in addition to the chairperson of
the board being an independent non-executive director, I
am impressed by the directors’ wide variety of skills andthat many of the auditors are experts in their field. The
Pharmaceuticals and Health Science domains are highly
specialized areas, and I often find governance in theseareas to be difficult because they are far outside myfield. However, I am encouraged by the fact that there aremembers of the board, including non-executive directorsof the board, that are experts in these fields.
In addition to the above, the discussions are
based on the opinions of investors, which is why we areconvinced that Mr. Masakatsu Mori, independent nonexecutive director (chairman of the Board of Directors*
at the time) and Ms. Noriko Shiono, independent nonexecutive director (member of the Nomination andRemuneration Advisory Committee), are correct in statingin the FY2023 Integrated Report 2023 that “Kirin Group’s
corporate governance initiatives are world class.”
Takeshi Minakata was appointed as the new p
resident & COO in FY2024. In the Integrated Report 2023,
Mr. Minakata shared his vision for the business from his

standpoint as the then-officer in charge of health sciencestrategy, in addition he is also the director in charge ofBlackmores. The fact that the officer in charge of the
Health Science domain—which is a new area of focus
for the Kirin Group—was appointed as the new president
shows the Group’s seriousness about growing the
Health Science domain while strengthening the existing
business.
The new president was selected by the board aftersufficient discussion on a succession plan and receivinga report from the Nomination and Remuneration Advisory
Committee. The Board of Directors also has appointment
and supervision responsibilities and will continue tosupervise and oversee thoroughly.
As CEO and representative director of the board,
Mr. Yoshinori Isozaki will be responsible for developing
a long-term vision and strategy for KV2027 and beyond,driving the growth of the organization, and strengthening
relationships with non-executive stakeholders. I willkeep a close eye on whether the CEO and COO can work
together to quickly produce results.
This fiscal year, I will continue to fulfill myduties as a non-executive director of the board and willleverage my personal experiences and views to evaluate
the business portfolio resource allocation and CSV
commitment targets and performance that form the baseof Kirin’s management.

KIRIN INTEGRATED REPORT 2024

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