21th Series of Unsecured Corporate Bonds (Social Bonds)
Funding Allocation and Impact Reporting
Funding Allocation as of December 2022 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 abundant solid 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 mammalianorigin, 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 anHMOs industrial-scale mass-production system. Based on the expansion 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 the Thai Kyowa
production facility in November 2022, and start manufacturing approximately 300 metric tons per year
from FY 2023.

Amount Allocated:(Cumulative)

7.3 billion yen (86.8% Reﬁnanced)

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 health foods to support improved cognitive function. As the world s population continues toage, demand for this highperformance raw material is rapidly increasing. Kyowa Hakko Bio oﬀers
citicoline around the world as a health food additive or active pharmaceutical ingredient in accordance with the regulations in each country. Through this expansion of production capability, Kyowa
Hakko Bio will establish a stable global supply network of citicoline to pharmaceutical and health food
manufacturers.Manufacturing at the new production facilities is scheduled to start in summer of 2023,
and is expected to be able to produce about 2.5 times as much as before.

Amount Allocated:(Cumulative)

9.5 billion yen (58.7% Reﬁnanced)

Citicoline

21th Series of Unsecured Corporate Bonds (Social Bonds) Funding Allocation and Impact Reporting
Funding Allocation as of December 2022 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 powder
utilizing 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
in research papers that it is the ﬁrst in the world* to work on pDC (plasmacytoid dendritic cells), a leader of theimmune system. Kirin Holdings, KOIWAI DAIRY PRODUCTS CO., LTD., and KYOWA HAKKO BIO CO., LTD. have jointly
conducted research on this product, and with the cooperation of universities and research institutions in Japan andoverseas, 31 papers have been published and numerous presentations made at academic conferences. At the 11th
Technology Management and Innovation Awards (sponsored by the Association for Science, Technology and Economy), which recognizes outstanding examples of innovation that transform the world, Kirin Holdings received theMinister of Education, Culture, Sports, Science and Technology Award for the discovery, research, and commercialization of Lc-PLASMA.Kirin Holdings will expand manufacturing equipment at the iMUSE Health Science Factory (locatedin Saitama Prefecture, just north of Tokyo) - a manufacturing center for lactic acid bacteria raw material - in order tomeet the increasing demand of Lc-PLASMA. The new manufacturing equipment is scheduled to begin operating in2023, and will double the annual production capacity of Lc-PLASMA to approximately 28 tons in 2023.

Amount Allocated:(Cumulative)

3.2 billion yen (90.0% Reﬁnanced)

Lc-PLASMA* Lc-PLASMA was the ﬁrst lactic acid bacteria reported towork on pDC in humans (based on information published in
PubMed and the homepage of the Central Medical Journal).

Impact Reporting
Categories

Projects

OutputOutcome

FY ���� Commitment Results

Businesses that contribute to theachievement of a society of health andlongevity, mainlythrough infant andtoddler health improvement and disease
prevention□ Capital investment, operation, andprocurement of raw materials
contributing to the production of Human
Milk Oligosaccharide (HMO)□ Increase in HMO manufacturing capacity□ Increase in the number of users of products containing
HMO (infant formula, health foods, etc.) in Japan andoverseas. The products containing HMO contribute tothe health of a wide range of our customers.

Completion of Production Facility

Businesses that contribute to theachievement of a society of health andlongevity, through brain function
improvement and brain function decline
prevention□ Capital investment, operation, andprocurement of raw materials
contributing to the production ofCiticoline□ Increase in Citicoline manufacturing
capacity□ Increase in the number of users of products containing
Citicoline (pharmaceuticals,health foods, etc.) in Japanand overseas. The products containing Citicoline
contribute to brain function improvement and brain
function decline prevention of our customers.

Pharmaceuticals: �.�� million people
Health foods: �.�� million people

Businesses that contribute to theachievement of a society of health andlongevity, through the maintenance ofimmune function□ Capital investment,operation, andprocurement of raw materials
contributing to the production of raw
material powder utilizing LcPLASMA, andthe research 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 in Japan and overseas.
Lc-PLASMA contribute to the maintenance of immune
function of our customers.

�.�� million people