21th Series of Unsecured Corporate Bonds (Social Bonds)
Funding Allocation and Impact Reporting
Funding Allocation as of December 2023 Amount issued 20.0 billion yen (Fully allocated)

Lc-PLASMA
Project Name:

Capital investment, operation, and procurement of raw materials contributing to the production of raw material powderof Lc-PLASMA, and the research and development of Lc-PLASMA

Project Summary:

Lc-PLASMA is a lactic acid bacteria that supports the maintenance of immunity in healthy people. It has been reported inresearch
papers that it is the first in the world* to work on pDC (plasmacytoid dendritic cells), a leader of the immune system. Kirin
Holdings, KOIWAI DAIRY PRODUCTS CO., LTD., and KYOWA HAKKO BIO CO., LTD. have jointly conducted research on thisproduct, and with the cooperation of universities and research institutions in Japan and overseas, 33 papers have been publishedand numerous presentations made at academic conferences. In May 2023, Kirin received the Imperial Invention Award at the2023 National Commendation for Invention sponsored by the Japan Institute of Invention and Innovation. This award was given
in recognition of the invention and efforts related to the discovery and commercialization of LC-PLASMA. It was the first time thatLc-PLASMA

this award was given for a health food substance and the first time in 59 years that a food company received it. Receipt of theprestigious awards has led to further enhancement of the reputation of Lc-PLASMA as a reliable substance. To meet the increasing
demand for Lc-PLASMA, the production facilities of the "iMUSE Health Science Factory" (located in Sayama City, Saitama
Prefecture), which manufactures raw materials of Lc-PLASMA, have been expanded and completed. With this expansion, theannual production capacity of bacterial bodies has doubled compared to the fiscal year 2022. Going forward, Kirin Group willcontinue to develop products using " Lc-PLASMA," which originated from over 35 years of research, across the group, supporting
the health of each individual while promoting "immune care," and aiming to create a society where people can live brightly andhealthily.

Amount Allocated: 3.2 billion yen (90.0% Reﬁnanced)(Cumulative)* Lc-PLASMA was the ﬁrst lactic acid bacteria reported to work on pDC in humans ((based on information published in PubMed and the homepage of the Central
Medical Journal).

Impact Reporting
Categories

Projects

OutputOutcomeBusinesses that contributeto the achievement of asociety of health andlongevity, through themaintenance of immune
function□ Capital investment,operation,and procurement of raw
materials contributing to the
production of raw material
powder of LcPLASMA, and theresearch and development ofLc-PLASMA□ Increase in Lc-PLASMA
manufacturing capacity□ Number of published papers□ Number of conference
presentations□ Partnerships with Academia□ Increase in the number of people who
continue consuming Lc-PLASMA inJapan and overseas. Lc-PLASMA
contribute to the maintenance ofimmune function of our customers.

FY 2023 Commitment Results
0.78 million people

21th Series of Unsecured Corporate Bonds (Social Bonds) Funding Allocation and Impact Reporting
Funding Allocation as of December 2023 Amount issued 20.0 billion yen (Fully allocated)

Human Milk Oligosaccharides
Project Name:

Capital investment contributing to the production of Human Milk Oligosaccharide

Project Summary:

HMOs (Human Milk Oligosaccharides) are oligosaccharides found in breast milk. HMOs are the third most abundantsolid component of breast milk after lactose and lipids, and more than 200 HMOs have been found in breast milk.
Since HMOs are rarely found in cow's milk or milk of other mammalian origin, and are particularly abundant in
human colostrum, they are known to be an important component for infants. In 2000, Kyowa Hakko Bio became
the ﬁrst company in the world to establish an HMOs industrial-scale mass-production system. Based on theexpansion into Asia, where consumption is expected to grow, and on the advantages of being able to secure
excellent human resources and raw materials necessary for the production of HMOs, Kyowa Hakko Bio has built theThai Kyowa production facility in November 2022. In fiscal year 2023, Kirin have steadily progressed withapplications for sales in various countries around the world, including the United States and Europe, starting withthe completion of the first stage of safety evaluation for three HMO products in China. On the other hand, in thefinancial statements for the fiscal year ending in December 2023, Kirin recorded impairment losses related to thismaterial. The recognition of impairment was based on a conservative estimate considering intensified marketcompetition, rising costs, and the timing of acquiring the sales approval in each country, resulting in the revision offorecasts. This does not change the positioning of the project within Kirin. We will continue to strive for earlyacquisition of sales approval in each country, aiming to solve the health challenges of customers worldwide andcreate both social and economic value.

Amount Allocated: 7.3 billion yen (86.8% Reﬁnanced)(Cumulative)

Impact Reporting
Categories

Projects

Businesses that contributeto the achievement of asociety of health andlongevity, mainly throughinfant and toddler healthimprovement and disease
prevention□ Capital investment,operation, and procurementof raw materials contributing
to the production of Human
Milk Oligosaccharide (HMO)

OutputOutcome□ Increase in HMO
manufacturing capacity□ Increase in the number of users ofproducts containing HMO (infantformula, health foods, etc.) in Japanand overseas. The products containing
HMO contribute to the health of a wide
range of our customers.

FY 2023 Commitment Results
Completion of Production Facility21th Series of Unsecured Corporate Bonds (Social Bonds) Funding Allocation and Impact Reporting
Funding Allocation as of December 2023 Amount issued 20.0 billion yen (Fully allocated)

Citicoline
Project Name:

Capital investment, operation, and procurement of raw materials contributing to the production of Citicoline

Project Summary:

Citicoline is a substance that has long been used around the world to treat brain diseases. It is also used in healthfoods to support improved cognitive function. As the worldʼs population continues to age, demand for this highperformance raw material is rapidly increasing. Kyowa Hakko Bio oﬀers citicoline around the world as a health foodadditive or active pharmaceutical ingredient in accordance with the regulations in each country. Through thisexpansion of production capability, Kyowa Hakko Bio will establish a stable global supply network of citicoline topharmaceutical and health food manufacturers. The construction work for the facilities was completed in fiscal year
2023, and have started trial manufacturing for commercial production of health food. One the other hand, in thefinancial statements for the fiscal year ending in December 2023, Kirin recorded impairment losses related to thismaterial. The recognition of impairment was based on a conservative estimate considering intensified market
competition and rising costs, resulting in a revision of forecasts. This does not change the positioning of the project
within Kirin. Despite the challenging competitive environment, the overall market is expanding, and Kirin has
maintained a high market share in the United States, achieving the highest sales volume in fiscal year 2023. Kirin
will continue to focus on the growth of Citicoline to solve the health challenges of customers worldwide and create
both social and economic value.

Amount Allocated: 9.5 billion yen (58.7% Reﬁnanced)(Cumulative)Impact Reporting
Categories

Projects

Businesses that contributeto the achievement of asociety of health andlongevity, through brain
function improvement andbrain function decline
prevention□ Capital investment,
operation, and procurementof raw materials contributing
to the production of Citicoline

OutputOutcome□ Increase in Citicoline
manufacturing capacity□ Increase in the number of users ofproducts containing Citicoline(pharmaceuticals,health foods, etc.) inJapan and overseas. The products
containing Citicoline contribute to brain
function improvement and brain
function decline prevention of ourcustomers.

FY 2023 Commitment ResultsPharmaceuticals: 1.13 million people
Health foods:
0.78 million people