Electronic Provision Measures Commencement Date: February 22, 2024

Other Electronic Provision Measures Mattersof the 185th Ordinary General Meeting of Shareholders(Matters Omitted from the Convocation Noticeof the Ordinary General Meeting of Shareholders) Business Report
Accounting Auditor ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 1
Systems to ensure appropriate operation and the status of its implementation ꞏꞏꞏꞏꞏꞏꞏ 2

 Consolidated Financial Statements
Consolidated Statement of Changes in Equityꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 8
Notes to Consolidated Financial Statements ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 9

 Financial Statements
Statement of Changes in Net Assets ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 30
Notes to Financial Statements ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 31(Notes)1. This document has been translated from the Japanese original for reference purposes only. In theevent of any discrepancy between this translated document and the Japanese original, the Japaneseoriginal shall prevail.
2. “Audit & Supervisory Board Member(s)” and “Audit & Supervisory Board” described hereinmean “Kansayaku” and “Kansayaku-kai” stipulated in the Japanese Companies Act, respectively.

Kirin Holdings Company, Limited

Business Report
Accounting Auditor(1) Name of Accounting Auditor
KPMG AZSA LLC(2) Remuneration to the Accounting Auditor
1)
2)

Amount of remuneration paid for services as the Accounting
Auditor during this fiscal year
Total amount of money and other property benefits to be paidby the Company and its subsidiaries for services during thisfiscal year

¥211 million¥593 million(Notes) 1. The Company’s Audit & Supervisory Board has made the agreement mentioned in Article 399, paragraph 1of the Japanese Companies Act regarding remuneration to the Accounting Auditor. In agreeing to such
remuneration, the Company’s Audit & Supervisory Board has, in light of the “Guidance on Cooperation withAccounting Auditor” announced by the Japan Audit & Supervisory Board Members Association, deliberated
the adequacy of the scheduled audit hours and amount of remuneration proposed for this fiscal year, bycomparing the audit plans and the performance of the Accounting Auditor for the previous fiscal year and by
confirming the progression of the hours of audits and the amount of remunerations.
2. The audit agreement between the Accounting Auditor and the Company does not separately stipulate audit
remuneration for audit under the Japanese Companies Act or audit under the Financial Instruments andExchange Act. Furthermore, such remuneration is practically indivisible. Hence, the remuneration referred toat 1) above does not separate these two payments.
3. The Company pays the Accounting Auditor for services including support for the Internal Control Reporting
System (J-SOX), which are beyond the scope of operations stipulated in Article 2, paragraph 1 of the Certified
Public Accountants Act (non-audit operations).
4. Among the significant subsidiaries of the Company, the financial statements of Lion Pty Ltd., Coca-Cola
Beverages Northeast, Inc. and Blackmores Limited are audited (limited to audits stipulated in the JapaneseCompanies Act or the Financial Instruments and Exchange Act (including similar foreign laws)) by a certified
public accountant or an auditing firm (including overseas auditors possessing similar qualifications) otherthan the Accounting Auditor of the Company.

(3) Policy regarding decisions to dismiss or deny reappointment of Accounting Auditor
If the Company’s Audit & Supervisory Board determines that any of the items of Article 340,
paragraph 1 of the Japanese Companies Act apply with respect to the Accounting Auditor, theAudit & Supervisory Board shall dismiss the Accounting Auditor. Such dismissal shall require theunanimous agreement of all the Audit & Supervisory Board Members.
The Company’s Audit & Supervisory Board will determine the content of proposals calling for thedismissal or denial of reappointment of the Accounting Auditor, which shall be submitted to theGeneral Meeting of Shareholders if it is determined that a change of Accounting Auditor isnecessary for reasons such as having difficulty in execution of duties by the Accounting Auditor
as a result of a comprehensive evaluation from a perspective of qualification, expertise,independence from the Company, and other assessment standards.

1

Systems to ensure appropriate operation and the status of its implementation
1. Basic policies for the internal control system
The Company resolved at the Board Meeting to adopt the following basic systems (the internal
control system) to ensure the appropriate operation of the Company:(1) System to ensure compliance of performance of duties by the Directors, etc.* andemployees of Kirin Group companies with laws and the articles of incorporation(Compliance System)* Directors, etc., refers to Directors of the Board, Executive Officers and other businessadministrators. Also hereinafter.
The Directors of the Board of the Company shall decide upon the basic compliance policy for the
Kirin Group and promote the policy by developing effective structures and provisions to executethe policy and by integrating it with the activities in each Kirin Group company. In addition, theDirectors of the Board shall carry out educational programs on compliance, clarify procedures
concerning responses to breaches of compliance, and make those procedures public throughout
the Kirin Group companies. The Internal Audit Department of the Company (including the internal
audit divisions of each Kirin Group company) shall carry out internal auditing to ensure that thesesystems are properly developed and applied.
Also, the Directors of the Board shall establish internal control reporting system to ensure
reliability of the financial reports and conduct their operation and evaluation effectively andefficiently.
(2) System to ensure the proper preservation and maintenance of information regarding theperformance of duties by the Directors of the Board of the Company (System ofInformation Preservation and Maintenance)
The Directors of the Board of the Company shall preserve the following documents (including
electromagnetic record) together with the related materials for at least ten years and make themavailable for inspection as necessary.






Minutes of General Meeting of Shareholders
Minutes of Board Meetings
Minutes of the Group Executive Committee and other significant meetings
Approval applications (approval authority of General Managers and above)
Financial statements, business reports, and their detailed statements(3) Regulations and other systems related to the control of the risk of loss of the Kirin Group(Risk Management System)
The Directors of the Board of the Company shall establish basic policy on the risk managementof the Kirin Group and promote the policy by developing effective structures and provisions to
execute the policy and by integrating it with activities in each Kirin Group company. In addition,
the Directors of the Board shall implement educational programs on risk management, clarify
procedures concerning the disclosure of risks and responses to the occurrence of crises, and makethose procedures public throughout the Kirin Group companies. The Internal Audit Departmentof the Company (including the internal audit divisions of each Kirin Group company) shall carry2

out internal auditing to ensure that these systems are properly developed and applied in each Kirin
Group company.
(4) System to ensure the efficient performance of duties by the Directors, etc. of Kirin Group
companies (Efficient Performance System)
The Directors of the Board of the Company shall develop a management control systemcomprising the following items to ensure the efficient performance of duties by Directors, etc. of
the Kirin Group companies.
In addition to Board Meetings, organizing the Group Executive Committee to deliberatesignificant matters affecting the entire Kirin Group, thereby ensuring that decisions arereached carefully based on considerations of multi-dimensional aspects;
Appointing the Executive Officers, who are responsible for business administration, andalso dispatching directors to each Kirin Group company to oversee appropriate andefficient performance of duties and decision making when necessary;
Ensuring appropriate and efficient performance of duties according to the authority anddecision-making rules based on the regulations on work authority of the Company; andEstablishing quantitative and qualitative targets in the annual plan at each Kirin Group
company and monitoring their performance by way of quarterly monitoring, etc.

(5) System for reporting performance of duties by the Directors, etc. of Kirin Group
companies and other systems to ensure appropriate operations (System for Reporting
Performance of Duties and Other Group Internal Control System)
In order to report performance of duties by the Directors, etc. of Kirin Group companies and toensure other appropriate operations, the Directors of the Board of the Company shall develop rules
and standards to be applied to each Kirin Group company, including the following items, and carryout operations in compliance with these rules and standards.


Items related to the governance and monitoring of each Kirin Group company
Items related to guidance and management concerning the maintenance of the internal
control system for each Kirin Group company
Items related to the communication system* within the Kirin Group companies
Items related to the Group internal auditing system operated by the Internal Audit
Department of the Company* The system to share information within the Kirin Group, the compliance hotline
system, and other related items.

(6) Items regarding assignment of employees as support staff for Audit & Supervisory Board
Members of the Company when they request support staff (Audit & Supervisory Board
Member Related System)
The Directors of the Board of the Company shall assign its employees as support staff for Audit& Supervisory Board Members of the Company.
(7) Items related to the assurance that the employees assigned as support staff as in thepreceding provision remain independent from the Directors of the Board of the Company

3and to secure the effective implementation of directions by Audit & Supervisory Board
Members of the Company to these employees
In order to ensure the independence of the employees assigned as support staff from the Directorsof the Board of the Company, the consent of the Audit & Supervisory Board Members of theCompany shall be required for any decision related to personnel affairs, including the appointment,
transfer and assessment of such employees. Such employees shall not simultaneously assume anyother assignment related to the operation of business and shall only follow instructions of the
Audit & Supervisory Board Members of the Company.
(8) System to ensure reporting to Audit & Supervisory Board Members of the Company by
Directors, Audit & Supervisory Members and employees of the Kirin Group companies
The Directors of the Board of the Company shall report to the Audit & Supervisory Board
Members of the Company on matters specified by such members in advance in accordance withthe provisions of the Audit & Supervisory Board Members’ audit standard of the Company.
Principal items are as follows.


Any matter that may impose material damage to any Kirin Group company, upon
discovery
Matters that require the consent of Audit & Supervisory Board Members of theCompany under the applicable laws
The status of maintenance and implementation of internal control system of the Kirin
Group companies

The Audit & Supervisory Board Member of the Company may request the Directors of the Board,
Audit & Supervisory Board Members, and employees of each Kirin Group company to report onother matters any time as necessary.
The Directors of the Board, Audit & Supervisory Board Members, and employees of each Kirin
Group company (including those who receive reports from these Directors of the Board, Audit &Supervisory Board Members and employees) may directly report matters that they judge to beappropriate to the Audit & Supervisory Board Members of the Company in order to ensure theappropriate operation of each Kirin Group company.
Audit & Supervisory Board Members of the Company shall receive a quarterly update on theoperation of the compliance hotline system. Further, when necessary, they may request theimmediate report on the operation of the said system.
(9) System to ensure that anyone who reports to the Audit & Supervisory Board Members as
outlined in the preceding provision are not treated unfairly
The Directors of the Board of the Company shall prepare common regulations for the Kirin Group
companies to ensure that anyone who reports to the Audit & Supervisory Board Members as
outlined in the preceding provision are not treated unfairly for this reason, and shall make thoseregulations public throughout the Kirin Group companies and implement them appropriately.
(10) Policy for the pre-payment or reimbursement of expenses incurred in the performance of
duties of the Audit & Supervisory Board Members of the Company

4After discussions with Audit & Supervisory Board Members of the Company, the Directors of theBoard of the Company shall set the policy for the pre-payment or reimbursement of expenses
incurred in the performance of duties of the Audit & Supervisory Board Members of the Company.
(11) Other systems to ensure efficient auditing by Audit & Supervisory Board Members of
the Company
Audit & Supervisory Board Members of the Company shall hold a regular meeting with the
Representative Directors and Outside Directors of the Company for the exchange of opinions.
Further, the Directors of the Board of the Company shall establish systems to ensure effective
auditing by Audit & Supervisory Board Members of the Company. This will include ensuring that
Audit & Supervisory Board Members of the Company have the opportunity to attend the meetingsof each Kirin Group company, at the request from the Audit & Supervisory Board Members of
the Company.
2. Implementation of internal control system(1) System to ensure compliance of performance of duties by the Directors, etc. and employeesof Kirin Group companies with laws and regulations, and the articles of incorporation(Compliance System)
The Kirin Group has established “Passion. Integrity. Diversity.” as “One KIRIN” Values, thecommon values of the Kirin Group. Based on the spirit of these values, the Kirin Group has
developed “Kirin Group Compliance Guidelines”. The Kirin Group is making a concerted effort
to publicizing and promoting proper understanding of compliance requirements throughout the
Kirin Group.
Furthermore, the Kirin Group has formulated internal regulations on the compliance hotline
system in accordance with the revised Whistleblower Protection Act and reporting desks havebeen set up and are operated by each Kirin Group company. In addition to this, the Kirin Group is
working to make the reporting system more functional by establishing “Kirin Group Direct
Hotline to the Executive Officer in Charge of Compliance (Risk Management)” as a direct hotline
system for officers in charge and “Global Hotlines for Kirin Holdings” which enables employeesof overseas Kirin Group companies to report to the Company in their local language. These
regulations prohibit unfair treatment against whistleblowers for the reason of reporting to the
hotline.
(2) System to ensure the proper preservation and maintenance of information regarding theperformance of duties by the Directors of the Board of the Company (System ofInformation Preservation and Maintenance)
The Company appropriately stores Minutes of Meetings of Shareholders, Minutes of Board
Meetings and financial statements, etc., for the number of years pursuant to laws and regulations.
(3) Regulations and other systems related to the control of the risk of loss of the Kirin Group(Risk Management System)
The Kirin Group has established the “Group Risk Management Regulations” and the “Group Risk
Management System Manual”, which set out the purpose, system and methods of risk

5management, and the “Group Crisis Management Manual”, which sets forth procedures to betaken in the event of a crisis, and publicizes and applies these rules to each of the Kirin Group
companies. Additionally, at Board meetings and Group Risk and Compliance Committee meetings,
activities conducted regarding risk management are reviewed and future activity plans aredeliberated and reported.
(4) System to ensure the efficient performance of duties by the Directors, etc. of Kirin Group
companies (Efficient Performance System)
The Company has clarified its decision-making rules, including the rules on matters to be resolved
at the Board Meetings, based on the Rules of the Board. In this fiscal year, in addition to holding
Board Meetings, the Group Executive Committee Meetings were held to deliberate prescribedmatters. Additionally, the Company has adopted the executive officer system, in an effort toflexibly execute the strategies for each business and function, as well as to clarify the responsibility,and has been improving the efficiency of its decision-making.
The Company conducts performance management on each Kirin Group company throughquarterly monitoring, etc., based on the Medium-Term Business Plan (from 2022 to 2024) andannual plans.
(5) System for reporting performance of duties by the Directors, etc. of Kirin Group
companies and other systems to ensure appropriate operations (System for Reporting
Performance of Duties and Other Group Internal Control System)
The Company’s Board confirmed the status of development and operation of the internal control
system for this fiscal year.
Additionally, the Company has developed rules and standards related to the monitoring of each
Kirin Group company and each function based on the delegation policy, etc. of the Company andconducts monitoring on a quarterly basis.
(6) Items regarding employees as support staff for Audit & Supervisory Board Members of
the Company when they request assignment of such support staff (Audit & Supervisory
Board Member Related System)
The Company has established the Audit & Supervisory Board Support Section as a structure toassist duties of Audit & Supervisory Board Members in order to enhance the audit function of the
Audit & Supervisory Board Members.
(7) Items related to the assurance that the employees assigned as support staff under section(6) remain independent from the Directors of the Board of the Company and to secure theeffective implementation of instructions by Audit & Supervisory Board Members of theCompany to such employees
Dedicated employees who are assigned as support staff for the Company’s Audit & Supervisory
Board Members are independent from the performance of their duties of the Company, and do notreport to, or take instructions from, anyone other than the Company’s Audit & Supervisory Board
Members.

6

(8) System to ensure reporting to Audit & Supervisory Board Members of the Company by
Directors, Audit & Supervisory Members and employees of Kirin Group companies
Each Kirin Group company has developed a compliance hotline system, and regularly reports on
the status of its implementation to the Company’s Audit & Supervisory Board Members.
The Company is also aiming to establish an appropriate compliance hotline system for the entire
Kirin Group, through the implementation of the “Kirin Group Direct Hotlines to Audit &Supervisory Board Members”.
(9) System to ensure that persons who make reports to the Audit & Supervisory Board
Members as outlined in the preceding provision are not treated unfairly
The Kirin Group has established rules related to the development and operation of the “Kirin
Group Direct Hotlines to Audit & Supervisory Board Members”, in order to ensure this system
protects the anonymity of ones making reports as mentioned in the preceding provision and which
prohibits unfair treatment of such persons, and has implemented and publicized such rules
throughout each of the Kirin Group companies.
(10) Policy for the pre-payment or reimbursement of expenses incurred in the performance of
duties of the Audit & Supervisory Board Members of the Company
The Company has determined and appropriately implements policies related to prepayment or
reimbursement procedures for expenses incurred in the performance of duties of the Audit &Supervisory Board Members of the Company.
(11) Other systems to ensure efficient auditing by Audit & Supervisory Board Members of theCompany
During this fiscal year, the Company’s Audit & Supervisory Board Members had interviews with
our President & Chief Executive Officer and exchanged information with Outside Directors, aswell as participated in all of the Group Executive Committee Meetings held in this fiscal year.

7

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY(From January 1, 2023 to December 31, 2023)(¥ millions)
Equity attributable to owners of the Company

Balance at January 1,
2023
ProfitOther comprehensive
incomeComprehensive income
Dividends from surplus
Acquisition of treasury
shares
Disposal of treasury
sharesChange in scope of
consolidation
Share-based payments
Changes in ownershipinterest in a subsidiary
without loss of control
Transfer from reserves toretained earnings
Total transactions withowners of theCompany
Balance at December
31, 2023

Share capital

Share premium

Retainedearnings

Treasury shares

102,046

25,5191,063,823(251,788)

16,826

–

7,318

4,503

7,318

4,503

(5,025)(4,503)112,697––

112,697(57,500)

–
(21)

(0)

2

(7)

220

132

(4,589)9,528–(4,369)(47,978)

113(5,025)(4,503)102,046

21,1501,128,541(251,675)

19,119–Non-controllinginterests

Total equity

980,022

273,181

1,253,203

112,697

37,741

150,438

Equity attributable to owners of the Company
Reserves
Foreign currencytranslation
Total
Total
differences on Cash flow hedges
foreign
operations
Balance at January 1,
2023
ProfitOther comprehensive
incomeComprehensive income
Dividends from surplus
Acquisition of treasury
shares
Disposal of treasury
sharesChange in scope of
consolidation
Share-based payments
Changes in ownershipinterest in a subsidiary
without loss of control
Transfer from reserves toretained earnings
Total transactions withowners of theCompany
Balance at December
31, 2023

Reserves
Net change inequityinstruments
Remeasurements
measuredof definedat fair value
benefit plans
through othercomprehensive
income24,585(988)

40,42390,077(275)

101,624

101,624

9,739

111,362

90,077(275)

101,624

214,321(57,500)

47,480(13,742)

261,801(71,242)

(21)

(21)

1

1
(18,726)(18,726)

346

(117)

229

(4,589)

5,181

592

(9,528)

–

–

–

–

(9,528)(61,762)(27,403)(89,166)

114,662(1,263)

132,519

1,132,581

293,257

1,425,838*Amounts are rounded to the nearest ¥1 million.

8

Notes to Consolidated Financial Statements
Material Accounting Policies
1. Accounting standards of consolidated financial statements
The consolidated financial statements of Kirin Holdings Company, Limited (the“Company”) and its consolidated subsidiaries (collectively, the “Group”) are prepared inaccordance with International Financial Reporting Standards (“IFRS”), pursuant to
Article 120, Paragraph 1 of the Regulations on Corporate Accounting. Certain disclosure
items required by IFRS are omitted pursuant to the latter part of that paragraph.
2. Consolidation
Consolidated subsidiaries: 171 companies
Major consolidated subsidiaries: Kirin Brewery Company, Limited, Kirin Beverage
Company, Limited, Lion Pty Ltd, Kyowa Kirin Co., Ltd., Mercian Corporation, Kyowa
Hakko Bio Co., Ltd., Coca-Cola Beverages Northeast, Inc., Blackmores Limited
3. Equity method
Companies accounted for by the equity method: 30 companies
Major associate companies: FANCL CORPORATION, San Miguel Brewery Inc.
4. Accounting policies(1) Measurement of financial assets① Non-derivative financial assets
1) Initial recognition and measurement
Financial assets are classified into financial assets measured at fair value throughprofit or loss, at fair value through other comprehensive income, and at amortizedcost. The Group determines the classification at initial recognition of the financial
assets. A regular way purchase or sale of financial assets is recognized orderecognized at the transaction date.
(a) Financial assets measured at amortized cost
Financial assets are classified as financial assets measured at amortized cost if bothof the following conditions are met:
・The financial asset is held within a business model whose objective is to holdfinancial assets in order to collect contractual cash flows.
・The contractual terms of the financial asset give rise on specified dates to cash
flows that are solely payments of principal and interest on the principal amountoutstanding.
(b) Financial assets measured at fair value
Financial assets other than those measured at amortized cost are classified as
financial assets measured at fair value.
Of financial assets measured at fair value, each equity instrument is designated asmeasured at fair value through profit or loss or as measured at fair value throughother comprehensive income. Such designations are applied on an ongoing basis.
All financial assets, except for those classified into the category as measured at fairvalue through profit or loss, are measured at fair value plus transaction costs thatare directly attributable to the financial assets.

92) Subsequent measurement
After initial recognition, financial assets are measured based on classification as
follows:(a) Financial assets measured at amortized cost
Financial assets measured at amortized cost are measured at amortized cost using
the effective interest method.
(b) Financial assets measured at fair value
Financial assets other than those measured at amortized cost are measured at fairvalue. Changes in their fair value are recognized in profit or loss or in othercomprehensive income based on the classification of the financial assets.
Dividends on equity instruments designated as measured at fair value throughother comprehensive income are recognized in profit or loss. When the decline
in the fair value of the financial assets is significant or when they are
derecognized, the cumulative gain recognized as capital through othercomprehensive income is transferred to retained earnings.
3) Derecognition
Financial assets are derecognized when the rights to receive benefits from them
expire or are transferred, or when substantially all the risks and rewards ofownership are transferred.
4) Impairment of financial assets
An allowance for doubtful accounts is recognized for expected credit losses on
financial assets measured at amortized cost.
Expected credit losses are measured as the present value of the difference between
contractual cash flows due to the Group in accordance with the contract and the
cash flows that the Group expects to receive.
Changes in credit quality after the recognition of financial assets are recorded in
profit or loss as changes in estimates.
After initial recognition, financial instruments are classified into the following threestages at the reporting date to measure their expected credit losses:
Measurement method of
Explanation
expected credit losses
Financial instruments for which credit risk
12-month expectedStage 1 has not increased significantly since initialcredit loss
recognition
Financial instruments for which credit risk
Lifetime expectedStage 2 has increased significantly since initialcredit loss
recognition
Financial instruments for which there isLifetime expectedStage 3
evidence of credit impairment
credit loss
However, regardless of the above, for certain financial assets such as tradereceivables without a significant financing component, the allowance for doubtful
accounts is measured at an amount equal to lifetime credit expected losses (thesimplified approach).
Expected credit losses are measured using reasonable and supportable informationthat is available at the reporting date about past events, current conditions andforecasts of future economic conditions.
The Group, in principle, determines that the credit risk on a financial asset has
increased significantly since initial recognition if it is more than 30 days past due on
the contract, and that a financial asset is in default if it is more than 90 days past due.
When a financial asset is in default or when there is evidence of impairment
including significant financial difficulty of the issuer or borrower, the Group
determines that the financial asset is credit-impaired.

10

If the Group reasonably considers that there are no prospects of the full or partial
recovery of financial assets, the carrying amount of the financial assets is written off.
② Derivatives and hedge accounting
The Group utilizes derivatives, including forward foreign exchange contracts, currency
swaps, interest rate swaps and commodity swaps, to hedge foreign exchange risk,interest rate risk and commodity price risk. These derivatives are initially measured atfair value at inception, and are subsequently remeasured at fair value.
Changes in the fair value of derivatives are recognized in the consolidated statement of
profit or loss. However, the effective portion of cash flow hedges and hedges of net
investment in foreign operations are recognized as other comprehensive income.
At the inception of the hedge, the Group formally designates and documents the hedging
relationship to which hedge accounting is applied and the objectives and strategies ofrisk management for undertaking the hedge. The documentation includes specifichedging instruments, the hedged items or transactions, the nature of the risks being
hedged and how the effectiveness of changes in the fair value of hedging instruments is
assessed in offsetting the exposure to changes in the hedged item’s cash flows
attributable to the hedged risks. Even though these hedges are expected to be highly
effective in offsetting changes in cash flows, they are assessed on an ongoing basis todetermine whether they have actually been highly effective throughout the financial
reporting periods for which they were designated.
Hedges that meet the requirements for hedge accounting are classified in the following
categories and accounted for in accordance with IFRS 9:1) Cash flow hedge
The effective portion of gains or losses on hedging instruments is recognized as othercomprehensive income, while the ineffective portion is recognized immediately in the
consolidated statement of profit or loss.
The amounts of hedging instruments recorded in other comprehensive income arereclassified to profit or loss when the transactions of the hedged items affect profit orloss. In cases where hedged items result in the recognition of non-financial assets or
liabilities, the amounts recognized in other comprehensive income are accounted for
as adjustments to the original carrying amount of non-financial assets or liabilities.
When forecast transactions or firm commitments are no longer expected to occur, any
related cumulative gain or loss that has been recognized in equity through othercomprehensive income is reclassified to profit or loss. When hedging instruments
expire, are sold, terminated or exercised without the replacement or rollover of otherhedging instruments, or when the hedge designation is revoked, the amounts that havebeen recognized in equity through other comprehensive income continue to berecorded in equity until the forecast transactions or firm commitments occur.
2) Hedge of net investment in foreign operations
Exchange differences resulting from net investments in foreign operations areaccounted for similarly to cash flow hedges. The effective portion of gains or losses
on hedging instruments is recognized as other comprehensive income, while theineffective portion is recognized in the consolidated statement of profit or loss. At thetime of the disposal of the foreign operations, any related cumulative gain or loss thathas been recognized in equity through other comprehensive income is reclassified to
profit or loss.
(2) Measurement of inventories
Inventories are recorded at the lower of cost and net realizable value. The cost of
inventories is determined primarily based on the periodic average method and includes
costs of purchase, costs of conversion and other costs incurred in bringing theinventories to their present location and condition. Net realizable value is the estimatedselling price in the ordinary course of business less the estimated costs of completion11and the estimated costs necessary to make the sale.
(3) Measurement and depreciation or amortization of property, plant and equipment andintangible assets① Property, plant and equipment
Property, plant, and equipment is measured using the cost model after initial recognition
and is stated at cost less accumulated depreciation and accumulated impairment losses.
The cost includes any costs directly attributable to the acquisition of the asset and theinitial estimate of the costs of dismantling, removal and restoration.
The depreciation of assets other than land and construction in progress is recorded using
the straight-line method over their estimated useful lives.
The estimated useful lives of major assets by category are as follows:
Buildings and structures:
2–65 years
Machinery, equipment and vehicles: 2–30 years
Tools, fixtures and fittings:
2–20 years
Depreciation methods, useful lives and residual values are reviewed at each year-end,
and if any changes are required, such changes are applied prospectively as changes inaccounting estimates.
② Goodwill
Goodwill arising from a business combination is stated at cost less accumulated
impairment losses.
Goodwill is not amortized. It is allocated to cash-generating units or groups of cashgenerating units and is tested for impairment annually and whenever there is any
indication of impairment. Impairment losses on goodwill are recognized in profit or loss
and no subsequent reversal is made.
When the units for internal management purposes are revised, goodwill is reallocatedto each cash-generating unit or group of cash-generating units based on the revised units
for internal management purposes.
Goodwill is measured at initial recognition as the excess of (a) over (b) below:(a) the aggregate of:(i) the consideration transferred in the business combination;(ii) the amount of any non-controlling interest in the acquiree; and(iii) the acquisition-date fair value of the acquirer’s previously held equity interest in
the acquiree.
(b) the net amount of the identifiable assets acquired and the liabilities assumed at theacquisition date.
The consideration transferred in a business combination is calculated as the sum of theacquisition-date fair values of the assets transferred, the liabilities incurred, and theequity interests issued by the Group.
③ Intangible assets
Intangible assets are measured using the cost model after initial recognition and arestated at cost less any accumulated amortization and accumulated impairment losses.
The cost includes costs directly attributable to the acquisition of the asset, employee
benefit expenses incurred and costs related to services consumed in internallygenerating the intangible asset.
1) Intangible assets acquired separately
Intangible assets acquired separately are measured at cost at initial recognition.
2) Intangible assets acquired through business combinations
Intangible assets acquired through business combinations are measured at fair value
at the date of acquisition.
3) Internally generated intangible assets (development costs)
The Group’s research and development expenses are expensed when incurred,

12

except for expenditures on development activities for which the Group candemonstrate all of the following requirements for capitalization:
・The technical feasibility of completing the intangible asset so that it will beavailable for use or sale.
・Its intention to complete the intangible asset and use or sell it.
・Its ability to use or sell the intangible asset.
・How the intangible asset will generate probable future economic benefits.
・The availability of adequate technical, financial and other resources to complete
the development and to use or sell the intangible asset.
・Its ability to measure reliably the expenditure attributable to the intangible asset
during its development.
Major intangible assets of the Group are as follows:
1) Brands
Brands are initially recognized at cost. In principle, as intangible assets withindefinite useful lives, they are not amortized because it is not possible to foresee
the period over which their net cash inflows are expected to continue, and are tested
for impairment annually and whenever there is any indication of impairment.
2) Marketing rights
Marketing rights are initially recognized at cost. They are amortized using thestraight-line method over their estimated useful lives (5-20 years), and are tested for
impairment whenever there is any indication of impairment.
3) Software
Software is initially recognized at cost. It is amortized using the straight-line method
over its estimated useful lives (2-10 years), and is tested for impairment whenever
there is an indication of impairment.
4) Software in progress
Software in progress, which is software under development, is recognized at cost. It
is transferred to software at the completion of software and is amortized using thestraight-line method over its estimated useful life. It is tested for impairment
annually and whenever there is any indication of impairment.
5) Other
Other intangible assets are initially recognized at cost. Those with finite useful lives
are amortized using the straight-line method over their estimated useful lives, andare tested for impairment whenever there is any indication of impairment. Thosewith indefinite useful lives are not amortized and are tested for impairment annually
and whenever there is any indication of impairment.
Amortization methods, useful lives and residual values are reviewed at each year-end,
and if any changes are required, such changes are applied prospectively as changes inaccounting estimates.
④ Leases
Leases are recognized as right-of-use assets and lease liabilities at the leasecommencement date.
1) Right-of-use assets
Right-of-use assets are initially measured at cost, which mainly comprises theamount of the initial measurement of the lease liability, initial direct costs and theinitial estimate of the costs of dismantling, removing and restoring the underlying
asset.
Right-of-use assets are measured using the cost model after initial recognition andare stated at cost less accumulated depreciation and accumulated impairment losses,
and are included within the same line item in the consolidated statement of financial
position as that within which the corresponding underlying assets would bepresented if they were owned by the Group.

13

After initial recognition, the right-of-use assets are depreciated using the straightline method over the estimated useful lives of the underlying assets if the leasetransfers ownership of the underlying asset to the Group by the end of the lease termor when the cost of the right-of-use assets reflect that it is reasonably certain that theGroup will exercise a purchase option; otherwise, the right-of-use assets are
depreciated based on the straight-line method over the earlier of the lease term or
the estimated useful lives of the right-of-use assets.
2) Lease liabilities
Lease liabilities are initially recognized at the present value of the lease paymentsthat are not paid at the lease commencement date. The lease payments are discounted
using the interest rate implicit in the lease.
If that rate cannot be readily determined, the Group’s incremental borrowing rate isused. In general, the Group uses the incremental borrowing rate as the discount rate.
Lease liabilities are subsequently measured by increasing the carrying amounts toreflect interest on the lease liabilities and by reducing the carrying amounts to reflect
lease payments made, and are included in the line item “other financial liabilities”
in the consolidated statement of financial position.
For short-term leases or leases for which the underlying asset is of low value, theGroup recognizes the lease payments associated with those leases as an expense on astraight-line basis over the lease term unless another systematic basis is more
representative of the pattern of the Group’s benefit.
⑤ Impairment of non-financial assets
The Group tests goodwill and intangible assets with indefinite useful lives for
impairment at least annually, as well as whenever there is any indication of impairment.
At the reporting date, the Group determines whether there is any indication of
impairment for non-financial assets other than inventories, deferred tax assets anddefined benefit asset. Since goodwill that forms part of the carrying amount of equityaccounted investees is not separately recognized, it is not tested for impairment
separately. Instead, the entire carrying amount of equity-accounted investees isassessed for any indication of impairment and is tested for impairment as a single asset.
If there is any indication that an asset may be impaired, or in cases where an
impairment test is required to be performed annually, the recoverable amount of theasset is determined. In cases where the recoverable amount cannot be estimated for anindividual asset, it is estimated for the cash-generating unit to which the asset belongs.
The recoverable amount of an asset or cash-generating unit is measured at the higherof its fair value less costs of disposal and its value in use. Value in use is determinedby discounting estimated future cash flows to their present value using a discount ratethat reflects the time value of money and the risks specific to the asset.
An impairment loss is recognized in profit or loss for an asset or a cash-generating unit
only where its recoverable amount is less than its carrying amount and the carrying
amount is reduced to the recoverable amount.
The Group assesses at the reporting date whether there is any indication that an
impairment loss recognized in prior years for an asset other than goodwill may havedecreased or may no longer exist. If any such indication exists, the recoverable amountof the asset or cash-generating unit is estimated. In cases where the recoverable amountexceeds the carrying amount, the impairment loss is reversed up to the lower of therecoverable amount determined and the carrying amount (net of accumulated
depreciation or accumulated amortization) that would have been determined if noimpairment loss had been recognized in prior years. The reversal of the impairment
loss is immediately recognized in profit or loss.
(4) Income taxes
Income taxes are the sum of current taxes and deferred taxes.

14Current taxes are measured at the amount that is expected to be paid to or refunded fromthe taxation authorities. In determining the tax amount, the Group uses the tax rates andtax laws that have been enacted or substantively enacted by the reporting date. Current
taxes are recognized in profit or loss, except for taxes arising from items that arerecognized directly in other comprehensive income or in equity and taxes arising frombusiness combinations.
Deferred taxes are determined based on the temporary differences between the tax basefor assets and liabilities and their carrying amount for accounting purposes at thereporting date. Deferred tax assets are recognized for deductible temporary differences,
unused tax credits and unused tax losses to the extent that it is probable that future taxable
profits will be available against which they can be utilized. Deferred tax liabilities arerecognized, in principle, for all taxable temporary differences. However, deferred tax
assets or liabilities are not recorded for:・temporary differences arising from the initial recognition of goodwill;・temporary differences arising from the initial recognition of assets or liabilities in atransaction that is not a business combination and that, at the time of transaction,affects neither accounting profit nor taxable profit (tax loss);・deductible temporary differences related to investments in subsidiaries and associates,
and interests in joint arrangements to the extent that it is probable that the temporary
differences will not reverse in the foreseeable future or it is not probable that futuretaxable profits will be available against which the temporary differences can beutilized; and・taxable temporary differences related to investments in subsidiaries and associates, andinterests in joint arrangements to the extent that the Group is able to control the timingof the reversal of the temporary differences and it is probable that they will not reversein the foreseeable future.
Deferred tax assets and liabilities are measured at the tax rates that are expected to be
applied to temporary differences when they reverse, based on the tax rates and tax lawsthat have been enacted or substantively enacted by the reporting date. The deferred taxes
are recognized in profit or loss, except for taxes arising from items that are recognizeddirectly in other comprehensive income or in equity and taxes arising from businesscombinations.
Deferred tax assets and deferred tax liabilities are offset when there is a legally
enforceable right to set off current tax assets against current tax liabilities, and income
taxes are levied by the same taxation authority on the same taxable entity.
If it is probable that the tax authority will not accept uncertain tax treatments based underinterpretation of tax laws, the Group recognizes reasonably estimated amounts as assets
or liabilities.
The group tax sharing system is applied by the Company and certain subsidiaries.
(5) Provisions
Provisions are recognized when present legal or constructive obligations exist as a resultof past events; it is probable that an outflow of resources embodying economic benefits
will be required to settle the obligations; and a reliable estimate can be made of theamount of the obligations.
Explanation of the major provisions is as follows:・Allowance for loss on plants reorganization
The Group has been working on the reorganization of plants aimed at streamlining
manufacturing sites in Japan and overseas. Accordingly, the Group has determined andannounced plans including the removal of property, plant and equipment at some of thesites, and has recorded a provision at a reasonably estimated cost of removal.
The timing of the payment depends on circumstances such as future business plans.
・Asset retirement obligations
For property, plant and equipment held by the Group, asset retirement obligations are15

recognized if the retirement of such property, plant and equipment is required by laws,
regulations, contracts or anything equivalent thereto. Asset retirement obligations aremeasured by discounting the reasonably estimated amount of cash flows required forthe retirement of the asset using a risk-free rate before tax that reflects the time valueof money related to those cash flows.
(6) Employee benefits① Post-employment benefits
The Group has defined benefit-type and defined contribution-type pension plans andprovides lump-sum severance payment plans, defined benefit corporate pension plans
and employees’ pension fund plans as defined benefit-type plans.
For each defined benefit plan, the Group determines the present value of its defined
benefit obligations and the related current service cost and past service cost using the
projected unit credit method. The discount rate applied is determined by reference tomarket yields on high-quality corporate bonds at the year-end. The net defined benefit
liability (asset) is determined by deducting the fair value of any plan assets from thepresent value of the defined benefit obligations. Remeasurements of the net defined
benefit asset or liability are recognized collectively in other comprehensive income andreclassified to retained earnings for the period during which they were incurred.
Retirement benefit costs for defined contribution-type plans are expensed for the period
during which employees render services.
② Termination benefits
The Group provides termination benefits when the Group terminates an employee’s
employment before the normal retirement date or an employee voluntarily retires inexchange for the benefits. Termination benefits are expensed when the Group commits
to terminating the employment; provided that the Group has detailed official plans
related to the termination of the employee’s employment and can no longer withdraw
the offer of the benefits.
③ Short-term employee benefits
Short-term employee benefits are expensed on an undiscounted basis when the related
service is provided. Bonuses are recorded as liabilities for the amount estimated to be
paid in accordance with the applicable plans when the Group has present legal orconstructive obligations to pay as a result of past service rendered by employees, andthe obligations can be reliably estimated.
(7) Revenue from contracts with customers
Revenue is recognized based on the following five-step approach:
Step 1: Identify the contracts with a customer
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation
If the Group executes sales transactions as an agent of the tax authority, consumption
taxes, value added taxes, liquor taxes and other similar taxes are excluded fromconsideration, taking into account laws and regulations of each jurisdiction and theactual conditions of the transactions.

161) Japan Beer and Spirits Businesses, Japan Non-alcoholic Beverages Business, andOceania Adult Beverages Business
The Group conducts sales of beer, whiskey, spirits, soft drinks and other beverages in
the Japan Beer and Spirits Businesses, Japan Non-alcoholic Beverages Businesses, andOceania Adult Beverages Business.
Revenue from such sales is recognized when merchandise and finished goods aredelivered to customers since control over the merchandise and finished goods istransferred to the customers and performance obligations are satisfied at that point in
time.
Revenue generated from sale of merchandise and finished goods is measured bydeducting rebates and discounts based on sales volumes and amounts fromconsideration under sales contracts, and consideration which is expected to be refunded
to customers is stated as refund liabilities. The refund liabilities are estimated by using
the most likely amount method based on terms and conditions, past transactions andother factors.
Consideration under sales contracts for merchandise and finished goods is recovered
mainly within a month or two from the delivery of the merchandise and finished goods
to customers and includes no significant financing components.
2) Pharmaceuticals Business
The Group conducts sale of merchandise and finished goods and technology licensing
to customers in relation to pharmaceuticals in the Pharmaceuticals Business.
If the consideration from contracts with customers includes a variable amount, thevariable consideration is included in the transaction price only to the extent that it ishighly probable that a significant reversal of the cumulative amount of revenue
recognized will not occur when the uncertainty associated with the variableconsideration is subsequently resolved.
(i) Revenue from sale of merchandise and finished goods
Revenue under sales contracts for merchandise and finished goods with customers is
recognized when the merchandise and finished goods are delivered to the customers
since control over the merchandise and finished goods is transferred to the customers
and performance obligations are satisfied at that point in time.
Revenue generated from sale of merchandise and finished goods is measured bydeducting rebates and discounts based on sales volumes or amounts from consideration
under sales contracts, and consideration which is expected to be refunded to customers
is stated as refund liabilities. The refund liabilities are estimated by using the most
likely amount method based on terms and conditions, past transactions and other factors.
Consideration under sales contracts for merchandise and finished goods is received
mainly within one year from the delivery of the merchandise and finished goods tocustomers and includes no significant financing components.
(ii) Licensing revenue
The Group obtains up-front income, milestone revenue and running royalty revenue as
licensing revenue based on license agreements, such as granting third parties the rightto develop, produce and sell developed products.
In some cases, the license agreements do not involve the provision of goods or services
by the Group other than granting a license, while in other cases, the Group provides
goods or services such as provision of manufacturing technology and pharmaceuticals
in relation to development cooperation, regulatory authority approval, and joint sales
promotion.
When the Group does not provide significant goods or services other than granting alicense, up-front income is recognized as revenue at the time of granting the licensesince all of the significant performance obligations are usually satisfied at this time.
Milestone revenue, which is mainly received upon successful completion of17

development activities and regulatory approval, is recognized as revenue when it ishighly probable that the milestones agreed between the relevant parties will be achieved,
after assessing the probability of a significant reversal of revenue.
When the Group provides several goods or services, including granting a license, theGroup identifies one or more performance obligations, allocates transaction prices
comprised of up-front income and milestone revenue to each of the performanceobligations, records consideration received as contract liabilities, and recognizes
revenue over a period of time as the performance obligations are satisfied. For license
agreements in relation to development cooperation, the Group applies the input method
as an appropriate method for measuring progress in each of the licensing agreements.
Running royalty revenue and sales achievement milestone income received when total
pharmaceutical sales exceed a certain agreed amount correspond to a sales-based or
usage-based royalty, and are measured based on the sales recorded by the contract
counterparty. The Group recognizes revenue at the later of when the sale or usage
occurs and when the performance obligations to which the sales-based or usage-based
royalty has been allocated has been satisfied.
Consideration of license agreements is received mainly within one year from the timeof granting the license and the time agreed upon in the agreement such as theachievement of a specified milestone. Such contracts do not contain any significant
financing components.
(8) Foreign currency translation① Foreign currency transactions
Transactions in foreign currencies are translated into the functional currency using theexchange rate at the date of the transaction or a rate that approximates the actual rate.
At the end of the reporting period, foreign currency monetary items are retranslated
into the functional currency at the closing rate, and non-monetary items that aremeasured at fair value in a foreign currency are retranslated using the exchange rates
at the date when the fair value was measured.
Exchange differences arising from the translation and settlement are recognized in
profit or loss. However, exchange differences arising from financial assets measured
at fair value through other comprehensive income and cash flow hedges arerecognized in other comprehensive income.
② Foreign operations
The assets and liabilities in the statement of financial position of foreign operations
are translated using the exchange rate at the date of their respective statement offinancial position. Revenue and expenses in the statements of profit or loss and othercomprehensive income of foreign operations are translated using the average exchange
rates, unless exchange rates fluctuate significantly.
Exchange differences arising from the translation are recognized in othercomprehensive income. In cases where a foreign operation is disposed of, thecumulative amount of exchange differences related to the foreign operation istransferred to profit or loss in the period of disposal.

18

Notes on 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 notrecognize 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 theGroup’s consolidated financial statements.

Notes on Accounting Estimates
The following are items that have been recorded in the consolidated financial statements forthe current fiscal year based on accounting estimates and that may have a material impact
on the consolidated financial statements for the following and subsequent fiscal years:(1) Measurement of property, plant and equipment and intangible assets① Amount recorded in the consolidated financial statements for the current fiscal year
Property, plant and equipment: ¥592,928 million
Goodwill:¥390,568 million
Intangible assets:¥303,540 million
An impairment loss of ¥15,670 million is recognized in non-current assets associatedwith the Bio-chemicals business for the current fiscal year, and is included in otheroperating expenses in the consolidated statement of profit or loss.
② Details of accounting estimates
If there is any indication of impairment of property, plant and equipment, goodwill, andintangible assets, or in cases where an annual impairment test is required, the Groupestimates the recoverable amount of the assets or the cash-generating unit to which theassets belong.
The recoverable amount of the assets or the cash-generating unit to which the assets
belong is measured at the higher of its fair value less costs of disposal and its value in
use.
In measuring the recoverable amount, the Group makes certain assumptions aboutvariables such as future cash flows based on the business plan approved by management,
discount rates, and long-term growth rates.
These assumptions are determined based on management’s estimates and decisions. In
the event that assumed circumstances change, the actual recoverable amount may differ
from the estimate. This may have a material impact on the amount of property, plantand equipment and intangible assets in the consolidated statement of financial position
for the following and subsequent fiscal years.
(2) Recoverability of deferred tax assets① Amount recorded in the consolidated financial statements for the current fiscal year
Deferred tax assets:¥109,322 million② Details of accounting estimates
The Group recognizes deferred tax assets for deductible temporary differences andunused tax losses in consideration of the planned reversal of deferred tax liabilities,
estimated future taxable profits, and tax planning.
The Group considers deferred tax assets that have been recognized are likely to be19

recovered based on past taxable profit levels and estimated future taxable profits for theperiod when deferred tax assets are deductible.
If these estimates are affected by future changes in uncertain economic conditions,amendments to tax laws, or other factors, they may differ from the actual future taxable
profits. This may have a material impact on the amount of deferred tax assets in the
consolidated financial statements for the following and subsequent fiscal years.

Notes to the Consolidated Statement of Financial Position
1. Accumulated depreciation of property, plant and equipment
2. Pledged assets
Other financial assets¥1,295,639 million¥300 million

3. Allowance for doubtful accounts directly deducted from assets
Other financial assets
Trade and other receivables
4. Guarantee obligations
Guarantees for loan obligations of employees¥1,932 million¥1,535 million¥76 million

Notes to the Consolidated Statement of Changes in Equity
1. Type and number of shares outstanding and treasury shares(1) Shares outstanding
Type of shares outstanding
Number of shares at January 1, 2023
Increase in number of shares during the year ended
December 31, 2023
Decrease in number of shares during the year ended
December 31, 2023
Number of shares at December 31, 2023

Common stock
914,000,000 shares––
914,000,000 shares(2) Treasury shares
Type of treasury shares
Number of shares at January 1, 2023
Increase in number of shares during the year ended
December 31, 2023 (Note 1)
Decrease in number of shares during the year ended
December 31, 2023 (Note 2)
Number of shares at December 31, 2023 (Note 3)
Notes:

Common stock
104,171,578 shares
10,087 shares
55,465 shares
104,126,200 shares

1. Increase in the number of shares was due to purchases of 10,087
odd-lot shares.
2. Decrease in the number of shares was due to sale of 630 odd-lot
shares and disposal of 54,835 shares held in the Board Incentive Plan
(BIP) Trust.
3. Number of shares at December 31, 2023 includes 1,911,065 shares heldin the BIP Trust.

20

2. Dividends(1) Dividend payments
Approval by the Ordinary General Meeting of Shareholders held on March 30, 2023
was as follows:
Dividend on Common Stocka. Total amount of dividend (Note 1) ¥29,630 million
b. Dividend per share¥36.50c. Record date
December 31, 2022
d. Effective date
March 31, 2023
Approval by the Board of Directors’ Meeting held on August 8, 2023 was as follows:
Dividend on Common Stocka. Total amount of dividend (Note 2) ¥28,007 million
b. Dividend per share¥34.50c. Record dateJune 30, 2023
d. Effective date
September 5, 2023
Notes: 1. The total amount of dividend includes ¥72 million of dividend for theCompany’s shares held by the BIP Trust.
2. The total amount of dividend includes ¥66 million of dividend for theCompany’s shares held by the BIP Trust.
(2) Dividends for which the record date is attributable to, but to be effective after, the year
ended December 31, 2023.
Proposal at the Ordinary General Meeting of Shareholders to be held on March 28,2024 will be as follows:
Dividend on Common Stocka. Total amount of dividend (Note)¥29,630 million
b. Source of dividends
Retained earnings
c. Dividend per share¥36.50d. Record date
December 31, 2023
e. Effective date
March 29, 2024
Note: The total amount of dividend includes ¥70 million of dividend for theCompany’s shares held by the BIP Trust.

21

Notes on Financial Instruments
1. Overview of financial instruments(1) Capital management
The Group’s basic policy for capital management is to maintain an optimum capital
structure with a focus on providing shareholders with returns and securing a sound,flexible financial footing towards the objective of maximizing corporate value.
Aiming to improve profitability and efficiency, the Group utilizes cash flows which
are provided by activities such as generating Group synergies, promoting leanmanagement and reducing assets, in order to conduct business investments and capital
investments, provide shareholder returns, and repay interest-bearing liabilities.
(2) Risk management
The Group is exposed to financial risks, including credit risk, liquidity risk and market
risk, in its business activities. To reduce such risks, the Group practices risk
management based on established policies and procedures.
The Group limits the use of derivatives only to hedge financial risks, and does not use
derivatives for speculative purposes.
(a) Credit risk
In accordance with the internal policies for managing credit risk arising from tradereceivables, the Company and some of its subsidiaries have each of their sales
divisions monitor the credit worthiness of their main customers and counterparties
on a periodical basis and manage due dates and outstanding balances by individual
customer. In addition, efforts are made to early identify and mitigate risks of bad
debts from customers who are having financial difficulties.
The Group believes that the credit risk of derivatives is immaterial as it enters into
derivatives only with financial institutions that have a high credit rating.
(b) Liquidity risk
In accordance with the internal policies for managing financial risks, the Group
formulates fund procurement plans based on the business plan for each year toaddress liquidity risk. The Group also manages such risk by, for example, entering
into commitment lines with several financial institutions and achieving anappropriate balance between direct and indirect fund procurement as well as shortterm and long-term fund procurement.
(c) Market risk
1) Foreign exchange risk
The Group operates businesses globally and, therefore, is exposed to foreignexchange risk. The risk arises when the Group’s equity is affected by foreignexchange fluctuations as a result of transactions in currencies other than thefunctional currency and when financial statements of foreign operations areconsolidated upon translation into Japanese yen. To manage foreign exchangerisk, the Group hedges such risk mainly using foreign exchange contracts andcurrency swaps.
2) Interest rate risk
Interest-bearing liabilities with floating interest rates are exposed to interest raterisk. For those with long-term maturities, the Group uses interest rate swaps to
avoid interest rate fluctuation risk by converting floating interest into fixedinterest.
3) Price fluctuation risk
The Group is exposed to share price fluctuation risk arising from equity
instruments (shares). The Group regularly assesses fair value, the financial
conditions of the issuers and other relevant factors of the equity instruments, andcontinuously reviews the holding status of such instruments by taking into accountthe relationship with the issuer when the issuer is a customer of the Group.

222. Fair values of financial instruments
The following table shows the amounts of financial instruments recorded in the
consolidated statement of financial position at December 31, 2023 and their fair value. The
fair value of financial instruments measured at fair value on a recurring basis is equal totheir carrying amount, and the carrying amount of short-term financial assets and liabilities
measured at amortized cost approximates their fair value. Therefore, they are not includedin the table.
(¥ millions)
Amount recorded in the
consolidated statement ofFair value
financial position
Bonds (Notes 1 and 3)
297,197
296,196
Long-term borrowings(Notes 2 and 3)
358,499
357,879
Notes: 1. The fair value of bonds is determined as the present value calculated bydiscounting the combined total of principal and interest with an interest
rate that reflects the remaining maturity and credit risk of the bonds.
2. The fair value of long-term borrowings is determined as the present value
calculated by discounting the combined total of principal and interest withan assumed interest rate for similar new borrowings.
3. The amount includes the current portion of long-term borrowings.
3. Breakdown of financial instruments by fair value level
The fair value hierarchy categorizes financial instruments into the following levels 1
to 3:
Level 1: Fair values measured at quoted prices in active markets
Level 2: Fair values determined, either directly or indirectly, using other observable
inputs other than Level 1
Level 3: Fair values measured using valuation techniques, including inputs notbased on observable market data
In the event multiple inputs that have a significant impact on fair value measurement
are used, the fair value measurement is categorized in its entirety into the same levelof the fair value hierarchy as the lowest level input.
(1) Financial instruments measured at fair value(¥ millions)
Fair value
Level 2
Level 3

Level 1
Assets:Derivative assets (Note 1)
Shares (Note 2)
Other
Total
Liabilities:
Derivative liabilities(Note 1)
Other
Total

Total

–
33,105–
33,105

2,202
–
74
2,276

–
27,791(1,799)25,992

2,202
60,896(1,725)61,373

–

4,875

–

4,875

–
–

–
4,875

16,31016,31016,31021,185

Notes: 1. The fair value of derivatives is based on prices determined by counterparty
financial institutions and other parties calculated from market data, suchas exchange rates and interest rates.

23

2. The fair value of listed shares is determined based on quoted market prices.
The fair value of unlisted shares is determined using valuation techniques
based on market prices of similar entities.
(2) Financial instruments measured at amortized cost(¥ millions)
Fair value
Level 2
Level 3

Level 1Long-term borrowings(Note)
Bonds

Total

–

–

357,879

357,879–

296,196–

296,196

Note: Includes the current portion.
The carrying amount of short-term financial assets and liabilities measured at amortizedcost approximates their fair value.

24

Notes on Revenue Recognition
1. Disaggregation of revenue arising from contracts with customers
The following table shows the breakdown of revenue for the current fiscal year:(¥ millions)Fiscal year ended December 31, 2023
Japan Beer and Spirits

684,863

Japan Non-alcoholic Beverages

255,028

Oceania Adult Beverages

280,990

Pharmaceuticals

441,882

OthersWine in Japan
Non-alcoholic Beverages in North
America
Bio-chemicals

57,510250,142

Other

115,754

48,224

Total

471,630

Consolidated

2,134,393

2. Basic information for understanding revenue
See “Material Accounting Policies, 4. Accounting policies, (7) Revenue from contracts
with customers.”
3. Information for understanding the revenue amounts for the current fiscal year andsubsequent fiscal years(1) Balances of trade receivables and contract liabilities(¥ millions)Fiscal year ended December 31, 2023
Beginning balance
Notes and accounts receivable, trade(trade receivables)
Contract liabilities

Ending balance

390,734

425,308

35,666

27,706(2) Timing of satisfaction of performance obligations
The following table shows the total transaction price which is allocated to residual
performance obligations and periods when the revenue is expected to be recognizedunder agreements and other arrangements related to licensing revenue. The transactions
with initial expected remaining periods not exceeding one year are excluded since apractical expedient is applied.
(¥ millions)
At December 31, 2023
Due within 1 year

9,344

Between 1 and 2 years
Between 2 and 3 years
More than 3 years

8,936
9,015
411

Total

27,70625

Notes on Per Share Information
1. Equity per share attributable to owners of the Company:
2. Basic earnings per share:¥1,398.47¥139.16

Notes on Significant Subsequent Events(Acquisition of a company, through the purchase of shares/Regarding the purchase of sharesin 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., asubsidiary 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 (keymanagement issue) for the fulfillment of its 2030 Vision. The gene therapy approachpioneered 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 genetherapy (HSC-GT), Orchard is steadily building a track record in this field, having alreadyreleased an HSC-GT product for the treatment of lysosomal disease in Europe. The productis 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 Chief Executive Officer Bobby Gaspar
representative(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, 202426

(4) Number of shares acquired and acquisition price(i) Number of shares held 0 shares
before change(Number of voting rights: 0 rights)(Ownership ratio of voting rights: 0%)(ii) Number of shares 22,817,354 shares (Number of voting rights:
acquired
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 22,817,354 shares (Ratio of voting rights held: 100%)after change
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 amountrequired 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 priceof US$17.00 per ADS, or approximately US$477.8 million (¥70.7 billion) if theconditions are met.
Notes on Business Combinations(1) Overview of the business combination
On August 10, 2023, the Company acquired 100% of the outstanding shares and voting
rights to gain control of Blackmores Limited through its Australian subsidiaries, Kirin
Holdings Australia Pty Ltd and Kirin Health Science Australia Pty Ltd.
① Name and business of the acquiree
NameBlackmores Limited
Business
Manufacture and sale of nutritional supplements, etc.
② Principal reason for the business combination
The acquisition of Blackmores Limited will expand the product range and capabilitiesof the Health Science business and broaden its geographic reach. Furthermore, byleveraging Blackmores Limited’s access to a large number of consumers in the AsiaPacific region through its distribution network, its knowledge of consumer demands,
and its deep understanding of country-specific regulations, the Company may further
enhance its ability to propose solutions to issues. The acquisition is an opportunity to
evolve the Health Science business in both B2B and B2C domains, driving continuous
growth in the business and ultimately solving more health-related societal issues.
③ Date of the acquisition
August 10, 2023
④ How the acquirer obtained control of the acquiree
Acquisition of shares for cash consideration⑤ Percentage of equity interest acquired
100%⑥ Consideration for acquisition¥161,407 million27

(2) Assets acquired and liabilities assumed(¥ millions)
Item

AmountCurrent assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets

33,524
105,963
139,487
13,05030,646
43,697
95,791

The acquisition, including the fair values of assets acquired and liabilities assumed as ofthe date of the business combination, were accounted for on a provisional basis because
the recognition of identifiable assets and liabilities as of that date was still in progress,
and the allocation of the acquisition cost was not yet finalized as of December 31, 2023.

28

(3) Goodwill generated by the acquisition(¥ millions)
Item
AmountConsideration for the acquisition
161,407
Fair value of identifiable net assets acquired by the
94,722
Group
Goodwill generated by the acquisition
66,684
The amount of goodwill generated was accounted for on a provisional basis because therecognition of identifiable assets and liabilities as of the date of the business combination
was still in progress and the allocation of the acquisition cost was not yet finalized as ofDecember 31, 2023. Goodwill represents the excess earning power expected from futurebusiness development.
(4) Reconciliation between the consideration for the acquisition and the net amount paid forthe acquisition of the subsidiary’s shares(¥ millions)
Item
Consideration for the acquisition
Consideration for the acquisition consisting of cash
and cash equivalents
Cash and cash equivalents held by the acquiree
Net payment for acquisition of the subsidiary’s
sharesAmount161,407
161,407
4,818
156,589(5) Acquisition-related expenses
Acquisition-related expenses of ¥2,997 million were recorded in other operating expenses.
(6) Impact on the Group
Blackmores Limited generated revenue of ¥31,987 million and profit of ¥1,481 million
in the fiscal year ended December 31, 2023 since the acquisition date. Assuming thebusiness combination had been performed at the beginning of the current fiscal year,
revenue and profit for the fiscal year ended December 31, 2023 would have been
¥2,164,355 million and ¥150,068 million, respectively (pro-forma information). This proforma information has not been audited.

29

STATEMENT OF CHANGES IN NET ASSETS(From January 1, 2023 to December 31, 2023)(¥ millions)Shareholders’ equity
Capital surplus
Common Additional
stock
paid-in
capitalBalance at January 1, 2023
Changes of items during theperiod102,046

Retained earnings
Other retained earnings

Other
capitalsurplusTotal
capitalsurplusLegalreserve–

81,41225,511

81,412Retainedearnings
carriedforward506,368

486,240 1,018,119

Dividends from surplus
Dividends from surplus(interim dividends)
Net income
Acquisition of treasury shares
Disposal of treasury shares
Net changes of items otherthan shareholders’ equity
Total changes of items
during the period
Balance at December 31, 2023

3

(29,559)(29,559)(27,941)(27,941)

70,38670,386

12,886

12,886

3

–

–

3

3

–

–

102,046

81,412

3

81,41525,511

506,368

Shareholders’ equity

499,126 1,031,005

Valuation and translation
adjustments

Total
Net unrealized Total valuation Total net assets
Treasury shares shareholders’gains onand translation
adjustments
equitysecurities
Balance at January 1, 2023
Changes of items during the
Dividends from surplus
Dividends from surplus(interim dividends)
Net income
Acquisition of treasury shares
Disposal of treasury shares
Net changes of items otherthan shareholders’ equity
Total changes of items
during the period
Balance at December 31, 2023

(250,589)

(21)
109

950,988131131

951,119(29,559)(29,559)(27,941)(27,941)

70,386(21)
112

70,386
(21)
112
144

144

144

88

12,977

144

144

13,121(250,501)

963,965275

275

964,241*Amounts are rounded to the nearest ¥1 million.

30

Total
retainedearnings

GeneralreserveNotes to Financial Statements
Material Accounting Policies
1. Measurement of assets(1) Measurement of securities(a) Shares of subsidiaries and affiliates are stated at cost determined by the movingaverage method.
(b) Available-for-sale securities
1) Available-for-sale securities with market value are stated at fair value. Unrealized
gains and losses on these securities are reported, net of applicable income taxes, as aseparate component of net assets. Realized gains and losses on sale of such securities
are computed using the moving-average method.
2) Available-for-sale securities without market value are stated at the moving-averagecost.
(2) Derivative financial instruments
Derivative financial instruments are stated at fair value.
2. Property, plant and equipment and intangible assets(1) Property, plant and equipment (excluding leased assets) are stated at cost net ofaccumulated depreciation and accumulated loss from impairment. Depreciation ofproperty, plant and equipment (excluding leased assets) is calculated using the straightline method.
(2) Amortization of intangible assets (excluding leased assets) is calculated using thestraight-line method.
Amortization of software for internal use is calculated using the straight-line method
based on the estimated useful life, which is 10 years or less. Goodwill is amortizedevenly over the period for which it is expected to have an effect (10 years).
(3) Depreciation of leased assets pertaining to finance lease transactions without transfer ofownership is calculated using the straight-line method with the lease term as the usefullife and residual value at zero.
3. Allowances and reserves(1) Allowance for doubtful accounts
The Company provides an allowance for doubtful accounts in an amount sufficient tocover probable losses on collection. The allowance for doubtful accounts consists ofthe estimated uncollectible amount with respect to certain identified doubtfulreceivables and an amount calculated using the actual historic percentage of collection
losses with respect to general receivables.
(2) Allowance for employees’ bonuses
The Company provides an allowance for employees’ bonuses based on the estimatedamounts payable.
(3) Allowance for bonuses for directors and corporate auditors
The Company provides an allowance for bonuses for directors and corporate auditors
based on the estimated amounts payable.
(4) Reserve for retirement benefits
The Company provides an allowance for employees’ pension and retirement benefits
based on the estimated amounts of projected retirement benefit obligations at the endof the fiscal year. In calculating retirement benefit obligations, the benefit formula isused for attributing expected retirement benefits to periods up to the end of the fiscal
year. Past service costs are amortized by the straight-line method over a certain number31

of years (13 years) within the average remaining years of service at the time they are
incurred. Actuarial gains and losses are amortized by the straight-line method over acertain number of years (13 years) within the average remaining years of service at thetime they are incurred, beginning from the following fiscal year.
4. Recognition criteria for revenue and expenses
The Company has adopted the Accounting Standard for Revenue Recognition (ASBJ
Statement No. 29, March 31, 2020) and the Implementation Guidance on AccountingStandard for Revenue Recognition (ASBJ Guidance No. 30, March 26, 2021). The
Company recognizes revenue when control of promised goods or services is transferred
to a customer in an amount that reflects the consideration to which the Company
expects to be entitled in exchange for those goods or services. The Company’s revenue
consists primarily of management service fees from subsidiaries and dividend income.
The performance obligation for the management service is to provide a commissioned
service, and the Company therefore recognizes revenue when the service is provided
and thus the associated performance obligation is satisfied. For dividend income,revenue is recognized on the date such dividend becomes effective.
5. Other material matters serving as the basis for the preparation of financial statements(1) Hedge accounting
The Company adopts deferred hedge accounting in principle. However, if certain
hedging criteria are met, some items are translated at the corresponding rate for foreignexchange contracts, and interest rate swaps are accounted for using a special accounting
treatment.
(2) Application of the group tax sharing system
The Company applies the group tax sharing system.
Notes on Accounting EstimatesAmong the items whose values were recorded in the financial statements for the current
fiscal year based on accounting estimates, items that may have a significant impact on thefinancial statements for subsequent fiscal years are as follows:(Valuation of shares of subsidiaries and affiliates without market values)
1. Amounts recorded in the financial statements for the current fiscal year
Shares of subsidiaries: ¥1,337,691 million
Shares of affiliates:¥135,493 million
2. Details of accounting estimates
The carrying amount of shares of subsidiaries and affiliates without market values is statedat cost. However, in cases where the substantive value of the shares declines significantly
due to deterioration in the financial condition of the issuer, such shares are subject to therecognition of a valuation loss, unless there is sufficient evidence to support recoverability.
The substantive value of shares acquired at an amount reflecting excess earning power andother factors, is calculated by adding the estimated value of the excess earning power andother adjustments, to the net assets of the issuer.
The business plan on which the substantive value is based may be affected by the results offuture changes in uncertain economic conditions. In the event that future performance issignificantly lower than the business plan, the valuation results of the shares of subsidiaries
and affiliates may differ from the estimates, which may have a material impact on the
carrying amount of the shares of subsidiaries and affiliates in the financial statements for
subsequent fiscal years.

32

Notes to the Balance Sheet
1. Monetary debts due from and to subsidiaries and affiliates
Short-term monetary debts due from subsidiaries and affiliates
Long-term monetary debts due from subsidiaries and affiliates
Short-term monetary debts due to subsidiaries and affiliates
Long-term monetary debts due to subsidiaries and affiliates¥324,833 million¥5,294 million¥444,597 million¥182,123 million

2. Accumulated depreciation of property, plant and equipment¥25,652 million(Note) The accumulated depreciation above includes accumulated impairment losses on property,
plant and equipment.

3. Contingent liabilities
Guarantees for loans from banks and others of subsidiaries andaffiliates
Guarantees for employee loans from banks and others
Total¥2,834 million¥76 million¥2,911 million

Notes to the Statement of Income
Transactions with subsidiaries and affiliates (excluding those separately presented)
Operating revenue¥63,538 million
Operating expenses¥9,006 million
Transactions other than operating transactions¥6,004 million
Notes to the Statement of Changes in Net Assets
Type of treasury shares
Number of shares at January 1, 2023
Increase in number of shares during the year ended
December 31, 2023 (Note 1)
Decrease in number of shares during the year ended
December 31, 2023 (Note 2)
Number of shares at December 31, 2023 (Note 3)

Common stock
104,171,578 shares
10,087 shares
55,465 shares
104,126,200 shares

Notes: 1. Increase in the number of shares was due to purchases of 10,087 odd-lot
shares.
2. Decrease in the number of shares was due to sale of 630 odd-lot shares anddisposal of 54,835 shares held in the Board Incentive Plan (BIP) Trust.
3. Number of shares at December 31, 2023 includes 1,911,065 shares held in
the BIP Trust.

33

Notes on Deferred Income Taxes
1. Major components of deferred tax assets
Shares and other investments in capital ofsubsidiaries and affiliates
Unused tax losses
Other
Subtotal
Valuation allowance related to unused tax losses
Valuation allowance related to total deductible
temporary differences
Subtotal
Total deferred tax assets¥57,947 million¥9,562 million¥22,749 million¥90,258 million¥(9,349) million¥(65,563) million¥(74,912) million¥15,346 million

2. Major components of deferred tax liabilities
Net unrealized gains on securities
Other
Total deferred tax liabilities¥(31) million¥(507) million¥(538) million

3. Accounting for national and local income taxes, and tax effect accounting related tothose taxes
The Company applies the group tax sharing system. The Company accounts for anddiscloses national and local income taxes and tax effect accounting related to those taxes
in accordance with the Practical Solution on the Accounting and Disclosure under theGroup Tax Sharing System (ASBJ PITF No. 42, August 12, 2021).

Notes on Transactions with Related Parties
Relationship with the Company
Directors
andBusiness relationshipcorporateCompany name

Ratio of voting
rights held by theCompany

Subsidiary

Kirin Brewery
Company, Limited

Owned
directly
100%

Concurrent 1

Lending and borrowing offunds
Consignment ofmanagement services
Secondment of employees

Subsidiary

Mercian
Corporation

Owned
directly
100%–

Lending and borrowing offunds

Subsidiary

Kyowa Hakko BioCo., Ltd.

Owned
directly
100%

Concurrent 1

Lending and borrowing offunds

Subsidiary

Kyowa Kirin Co.,
Ltd.

Owned
directly
54%

Concurrent 2

Lending and borrowing offunds

Subsidiary

Coca-Cola
Beverages
Northeast, Inc.

Owned
directly
100%–

Lending and borrowing offunds

Subsidiary

Kirin Holdings
Singapore Inc.

Owned
directly
100%–

Lending and borrowing of
funds

Type

34

Type

Kirin Brewery
Subsidiary
Company, Limited

Subsidiary

Subsidiary

Transaction
amount(¥ millions)

Item

Balance at
end of year(¥ millions)Lending of funds(Notes 1 and 2)

104,902

Short-term
loans
receivable

131,692

Management service
fees(Note 4)

46,423

Accruedincome5,170

Settlement of
personnel expenses of
employees seconded
out(Note 5)

13,681

Advances
paid

1,984

Lending of funds(Notes 1 and 2)

28,401Company name

Mercian
Corporation

Kyowa Hakko BioCo., Ltd.

Lending of funds(Notes 1 and 2)

53,400

Short-term
loans
receivable
Short-term
loans
receivable
Other under
Investments andother assets(Note 6)

26,91857,0003,878

Borrowing of funds(Notes 1 and 3)

329,727

Short-termloans payable

380,030

Coca-Cola
Subsidiary Beverages
Northeast, Inc.

Borrowing of funds(Notes 1 and 3)

15,814

Short-termloans payable

23,212

Kirin Holdings
Subsidiary
Singapore Inc.

Borrowing of funds(Notes 1 and 3)
Borrowing of funds(Note 3)

Subsidiary

Kyowa Kirin Co.,
Ltd.

Transaction details

5,049
182,232

Short-termloans payable
Long-term
debt

14,665
181,278

Conditions of transactions and policy regarding determination of conditions of transactions
Notes:
1. As these lending and borrowing of funds are recurring transactions, amounts are basedon average outstanding balances during the fiscal year.
2. Interest rates of loans receivable are determined based on market interest rates.
3. Interest rates of loans payable are determined based on market interest rates.
4. Management service fees are determined upon mutual discussion taking into accountthe content of the services.
5. This item represents advance payments for personnel expenses of employees
seconded to subsidiaries.
6. An allowance for doubtful accounts is provided in the same amount.
7. Transaction amounts above do not include foreign exchange gain or loss. Transaction
amounts do not include consumption taxes.

Notes on Per Share Information
1. Net assets per share:
2. Net income per share:¥1,190.61¥86.9135