New Kirin Group 2022-2024 Medium-Term Business Plan

  • IR
  • CSV

February 14, 2022

Kirin Holdings Company, Limited

● A NEW TRACK towards achieving set 2027 growth goals by focusing resources on the “three domains”
● Increase corporate value in Food & Beverages, Pharmaceuticals, and Health Science through focused investment and portfolio management
● Accelerate growth by implementing business structure reforms and creating new value with an eye to post-COVID-19

TOKYO, February 14, 2022 - Kirin Holdings Company, Limited (Kirin Holdings) has formulated the Kirin Group 2022-2024 Medium-Term Business Plan (2022-2024 MTBP) , which is the second stage towards achieving the goals in the Kirin Group Vision 2027 (KV2027), a long-term vision statement.

The economic outlook remains uncertain due to turmoil in the market caused by COVID-19 and other rapid changes in the environment. Against this backdrop, the Kirin Group has been able to minimize the impact by facing and solving new social issues. Kirin Holdings believe that it is precisely because it is in an age where the future is difficult to prediet that CSV*1 management,which creates economic value while solving social issues,is important.

At the start of the new medium-term business plan, Kirin Holdings has re-evaluated its Management Issues for Sustainable Growth (Group Materiality Matrix) in order to correspond to changes in the social environment, looking 10 years ahead through dialogue with various stakeholders. In addition, Kirin Holdings will revise the CSV Purpose and further promote CSV management in the three domains of Food&Beverages, Pharmaceuticals, and Health Science in order to achieve the newly set CSV Commitment.

1: Creating Shared Value. Combined added value for consumers as well as for society at large.

Kirin Group 2022-2024 Medium-Term Business Plan

In the 2022-2024 MTBP, the basic direction of KV2027 will remain unchanged, and Kirin Holdings will continue to strengthen existing businesses and create new value by placing CSV at the core of the Kirin Group’s management. The 2022-2024 MTBP will be the stage for shifting to a new growth track, different from the 2019-2021 Medium-term Business PlanPDF:1.73MB, which laid the foundations for reform, and laid the foundations for solidifying the growth story toward achieving the goals set out int KV2027.

Specifically, the strategy is based on the following three pillars: 1. Increase profit in Food & Beverages domain, 2. strengthen the operating base of the Pharmaceuticals domain’s global base and 3. Scaling up the Health Science domain. Kirin Holdings aims to increase corporate value through growth in the three domains by concentrating Kirin Holdings’ management resources through strengthening portfolio management and clarifying investment priorities.

At the same time, Kirin Holdings will build a solid organizational foundation by strengthening its’ organizational capabilities to achieve innovation with an eye on post-COVID-19, thoroughly utilizing the Kirin Group's DNA of focusing on quality, building an SCM*2 system that balances efficiency and sustainability, and strengthening governance to support value creation.

2: Abbreviation for Supply Chain Management. The term "supply chain management" refers to the efficient construction and management of the supply chain, including the procurement of raw materials, production at factories, and the supply, demand, and distribution of products.

Positioning the 2022 Medium-Term Business Plan (2022-2024 MTBP)

Basic Policy

Accelerate growth by implementing business structure reforms and creating new value with an eye to post-COVID-19.

Three Important Commitments

(1) Increase profit in Food & Beverages domain
(2) Strengthen global base in Pharmaceuticals domain
(3) Scale up business in Health Science domain


Financial targets*3
・Normalized*4 EPS
CAGR 11%+ (vs. FY2021)
Fiscal year 2024 10%+

3: Financial indicators are evaluated by excluding the impact of exchange rate fluctuations when overseas subsidiaries are consolidated, etc.
4: By removing other operating income or expenses, etc. and other non-recurring items, it is adjusted to reflect actual earnings more accurately.
5: ROIC = Earnings before interest and after tax /(Average interest bearing debt between the beginning and the end of the FY + average total equity between the beginning and the end of the FY)

Non-financial targets

Item Theme Non-financial targets Connection to economic value
Environment Climate change Reduction rate of GHG emissions 23%(50% by 2030)
(Scope 1+2 vs. 2019)
Reduction of cost increase when carbon tax is introduced due to energy saving effect
and Packaging
Recycling rate of plastic for PET bottles
38%(50% by 2027)
Profit generation through value creation, stable procurement of PET materials
Water use intensity at manufacturing sites with high water stress
Lion: 3.0 kL/kL(2.4kL/kL by 2025)
Reduction of manufacturing costs
Reduction of manufacturing cost, reduction of manufacturing risk due to drought
Health Progress of
health science
Achievement level in supporting the maintenance of immune function
・Recognition rate of Lactococcus lactis strain Plasma (LC-Plasma) function in Japan
45%(50% by 2027)
・Number of people continuously consuming LC- Plasma in their daily diet
1,900,000 people
Expansion of sales revenue and business profit
New value creation in the immunity, brain function, and intestinal environment domains.
Collaboration with pharmaceuticals domain
Profit creation by satisfying unrealized needs
Generating profits by creating new health value
Employees Organizational
Employee engagement score: 75% Profit generation through value creation and productivity improvement
Diversity Level of achievement in increasing diversity
Ratio of female managers in Japan 15%
Ratio of mid-career hires in Japan 30%
Profit generation through value creation and productivity improvement
health and safety
Lost time injury frequency rate
0.95 (Japan: 0.40)
Improving the working environment to increase motivation and productivity improvement

Initiatives to address key issues

1. Increase profit in Food & Beverages Domain

Kirin Holdings will build a strong brand system, strengthen Kirin Holdings’ profitability and financial base, explore and expand new businesses.

Kirin Brewery Company, Limited

Kirin Brewery will build a strong brand system by strengthening investment in its mainstay KIRIN ICHIBAN brand, KIRIN ICHIBAN Zero Sugar, which caters to health-conscious consumers, and SPRING VALLEY Hojun <496>, a high-value-added, highly profitable brand. Kirin Home Tap’s appeal will further be enhanced through strengthening its craft beer lineup, with the aim of revitalizing the craft beer market and making it more attractive. In the RTD*6 category, Kirin Brewery will boost the development of high-value-added products that meet the needs of people who want to enjoy quality time when at home.

6: Abbreviation for Ready to Drink, a canned cocktail.

Kirin Beverage Company, Limited

Kirin Beverage will further promote CSV management and strengthen the profitability of the existing beverage business through focusing on its strengths. At the same time, Kirin Beverage will strengthen its Health Science area by transforming itself into a beverage company making health as a new company pillar.

In the Health Science domain, Kirin Holdings will contribute to better consumer health and open up new markets by expanding the development of beverages containing LC-Plasma. This includes the addition of Kirin iMUSE Morning Immune Care, a yogurt-tasting beverage in a 100ml PET bottle, to be launched nationwide in March, and further development of beverages containing LC-Plasma in collaboration with FANCL.

Lion Corporation

Lion will focus on improving profitability through marketing reform and supply chain optimization. Moreover, Lion will promote the integration of its acquired craft beer businesses and create synergies in order to accelerate the growth of the craft beer business in North America and Australia.

2. Strengthen global base in Pharmaceuticals Domain

As the environment surrounding the pharmaceutical industry changes drastically, Kyowa Kirin - in charge of the pharmaceuticals domain - will continue its efforts to continuously create innovative drugs that meet the medical needs for diseases for which there is still no effective treatment. Kyowa Kirin will also work to maximize the value of its three global strategic products, as well as promote the development of next-generation strategic products and new drugs for the domestic market.

Kyowa Kirin will achieve business growth as a Japan-based Global Specialty Pharmaceutical Company by implementing Kyowa Kirin’s New Vision for 2030PDF:102KB*7, which was announced in February 2021 in conjunction with the five-year mid-term business plan, and strategies for achieving this vision.

7: Kyowa Kirin will realize the successful creation and delivery of life-changing value that ultimately makes people smile, as a Japan-based Global Specialty Pharmaceutical company built on the diverse team of experts with shared passion for innovation.

3. Scale up business in Health Science Domain

As interest in health and illness prevention continues to grow, seeing this as a new opportunity, Kirin Holdings will strengthen its investment in the Health Science domain and expand the domain’s scale. In particular, Kirin Holdings will use the expansion of LC-Plasma in the immunology field as a springboard for growth in the brain function and intestinal environment fields. At the University of Malaya's research base, Kirin Holdings will also confirm the effects of LC-Plasma on tropical infectious diseases.

In overseas markets, Kyowa Hakko Bio will accelerate its B-to-B business, focusing on mainly in the United States and Southeast Asia for LC-Plasma, and boosting overall sales of Citicoline*8 will be sold in the United States. In 2022, Kyowa Hakko Bio will begin production of human milk oligosaccharides*9 (HMO) – in which Kyowa Hakko Bio succeeded in developing the world's first mass-production HMO technology using its proprietary fermentation technology - at its plant in Thailand with the aim of launching the product outside of Japan.

8: An ingredient found in the body that maintains the cell membranes of the brain and nerve cells, and has been used for many years around the world in medicines for brain diseases and health foods that support the improvement of cognitive functions. In Japan, it is currently classified as a pharmaceutical product.
9: A generic term for oligosaccharides contained in breast milk. More than 250 types of oligosaccharides are currently contained in breast milk, and the results of research contributing to immunity and brain function have been reported.

In order to contribute to the health and well-being of consumers, Kirin Holdings will vigorously pursue business development in the areas of physical vitality centered on ornithine, as well as move forward with new business exploration, internal ventures, and corporate venture capital*10 (CVC). In addition, Kirin Holdings will move forward with new business exploration, interpreneurial ventures, and CVCs to solve social issues related to the health of consumers at all touchpoints. Kirin Holdings will also continue to work with FANCL to create synergies.

10: Refers to an organization for operating companies to contribute their own funds to form a fund to invest in startup companies or to invest in startup companies. Many operating companies invest in companies that are related to their own business, aiming to create synergies and new businesses.

In order to increase the scale of these initiatives, Kirin Holdings will establish a Health Science Business Headquarters in the spring of 2022 to oversee strategy and business collaboration in the Health Science domain. This will strengthen the governance structure to create synergies within the Group and improve the speed of promoting company strategy understanding internally and implementation.

For Reference
Financial Results (Financial Results/Presentations/Financial Statements)
CSV Purpose
CSV Commitment
Group Materiality Matrix

About Kirin Holdings

Kirin Holdings Company, Limited is an international company that operates in the Food & Beverages domain (Food & Beverages businesses), Pharmaceuticals domain (Pharmaceuticals businesses), and Health Science domain (Health Science business), both in Japan and across the globe.

Kirin Holdings can trace its roots to Japan Brewery which was established in 1885. Japan Brewery became Kirin Brewery in 1907. Since then, the company expanded its business with fermentation and biotechnology as its core technologies, and entered the pharmaceutical business in the 1980s, all of which continue to be global growth centers. In 2007, Kirin Holdings was established as a pure holding company and is currently focusing on boosting its Health Science domain.

Under the Kirin Group Vision 2027 (KV 2027), a long-term management plan launched in 2019, the Kirin Group aims to become “A global leader in CSV*, creating value across our world of Food & Beverages to Pharmaceuticals.” Going forward, the Kirin Group will continue to leverage its strengths to create both social and economic value through its businesses, with the aim of achieving sustainable growth in corporate value.

* Creating Shared Value: combined added value for consumers as well as for society at large.


News Releases