Long-Term Vision

Kirin Group‘s Long-Term Vision "Innovate2035!"

2035Vision

Innovate2035!Vitalize the world through innovation by our people and technology, as a global leader in Creating Shared Value (CSV).

Background to the Development of “Innovate2035!”

Under its long-term vision "KV2027", launched in 2019, the Kirin Group has pursued CSV*1 management – viewing societal challenges as growth opportunities – and expanded its business domains through the launch of its Health Science business. This aligns with its goal of becoming "A global leader in CSV, creating value across our world of Food & Beverages to Pharmaceuticals". The Health Science business is set to achieve profitability in 2025, establishing a robust portfolio of businesses encompassing alcoholic beverages, non-alcoholic beverages, pharmaceuticals, and health science.
Meanwhile, the environment surrounding the Kirin Group is expected to undergo even more intense change than before, driven by factors including the evolution of AI. People's values are also shifting significantly, and various social issues affecting management are becoming increasingly apparent both domestically and internationally.
To achieve sustainable growth in such an environment, we believe it is crucial for the Kirin Group to adapt to the changing landscape, further evolve our CSV management by addressing social issues, and advance the creation of both social and economic value.

  • *1
    Creating Shared Value: combined added value for consumers as well as for society at large.

Major Societal Shifts

  • Sustainability and health awareness increasing as expected; alcohol restrictions and the shift away from drinking among young people accelerating beyond expectations.
  • Rapid development of AI and shortage of human capital becoming key management issues

The Evolution of the KIRIN Group

  • Growing empathy and engagement with CSV, driving the advancement of CSV management.
  • Amid increasingly challenging business conditions across all domains, structural reforms will continue and tangible results will be delivered.
  • Steady progress in launching the Health Science (HS) business

Overall Framework of “Innovate2035!”

Celebrating its 120th anniversary in 2027, our group upholds the philosophy: "KIRIN brings joy to society by crafting food and healthcare products inspired by the blessings of nature and the insights of our customers." Through its founding beer business, it has continually refined its expertise in "fermentation and biotechnology". Food and health represent fundamental human needs that transcend any era. We shall contribute to realizing a 'heart-enriching society' by creating value that accompanies consumers throughout every stage of life.
This time, through "KV2027", we have formulated a new long-term vision, "Innovate2035!", to ensure continued growth for the next 100 years. This leverages the organizational capabilities cultivated across diverse business domains, focusing on autonomous business growth and growth through synergies of group assets. We will pursue our vision of "Vitalize the world through innovation by our people and technology, as a global leader in CSV".
Kirin positions its innovation as "To encourage behavioral change among consumers and create new lifestyle habits in society". We will establish a framework to continuously generate innovation by combining our technological capabilities in fermentation and biotechnology with organizational capabilities in consumer-centric marketing, alongside AI and external co-creation. Furthermore, we will enhance the certainty of innovation through talent development that supports, executes, and accelerates these initiatives.
To realize "Innovate2035!" and continuously generate innovation, it is essential that all employees thoroughly embed the mindset and actions to introduce novelty into their daily work. To facilitate this behavioral change, we have established "KIRIN WAY" as our group-wide shared values and behavioral principles.

The diagram shows the Kirin Group's Corporate Philosophy in the form of a pyramid. It consists of four layers from the bottom: "People and organizational culture embodying the KIRIN WAY," "Strengthening organizational capabilities to continuously create innovation," "Enhancement of corporate value," and "2035 Vision." On the right side, there are explanations for each layer. For "People and organizational culture embodying the KIRIN WAY," it presents the 3 Values and 6 Principles, along with the statement: "Each employee adds newness every day in their work - better today than yesterday, better tomorrow than today." For "Strengthening organizational capabilities to continuously create innovation," it explains that Co-creation with AI, Consumer-centric marketing, Global top-level R&D, and Co-creation with AI external partners are combined. For "Enhancement of corporate value," there is a diagram connecting Alcoholic Beverages, Non-alcoholic Beverages, Health Science, and Pharmaceuticals. Surrounding the diagram are the statements: "EPS: growth in the high single-digit range; ROIC: 10% or higher." "Achieve comparable profit scale across Alcoholic Beverages, Non-alcoholic Beverages & Health Science, and Pharmaceuticals." "Autonomous growth of businesses." "Growth through cross-domain collaboration." As well as the statement: "Through the value we create, consumers and patients change their behavior and new lifestyles emerge in society." For "2035 Vision," it states: "Vitalize the world through innovation by our people and technology, as a global leader in Creating Shared Value (CSV).

How will Kirin Redefine Innovation to Shape the Future?

The Kirin Group operates across the Alcoholic Beverages, Non-alcoholic Beverages & Health Science, and Pharmaceuticals domains, creating value that supports consumers throughout all stages of their lives. Through these efforts, we promote behavioral change and foster new lifestyle habits in society.

Beyond "Value only the Kirin Group can deliver" is the phrase "Supporting consumers and patients in their daily lives."is shown. For "Value only the Kirin Group can deliver," it states:Products and services that harness the people, technology, and knowledge across our unique business domains of Alcohol Beverages, Non-alcoholic Beverages & Health Science, and Pharmaceuticals. For "Supporting consumers and patients in their daily lives," two domains-"Mental health" and "Physical health"- are represented in a horizontally arranged area. On the left side, in the "Mental health" domain, there is a silhouette illustration of a family, with the text: Delicious, enjoyable, and fun experiences Nutritious and tasty options that reduce health burdens On the right side, in the "Physical health" domain, four stages are displayed horizontally: "Prevention - Solving individual health challenges. "Treatment" - Life-changing pharmaceuticals in targeted areas. "Prognosis" - Recovery support through nutrition and other means. At the bottom, as values that transcend both domains, the text reads: Building foundational health by unlocking innate potential Nutrition and Exercise and Rest and Immune Care

Establishing New Global Shared Values and Behavioral Principles

The "KIRIN WAY" comprises the values (3Values) cherished by the Kirin Group since its inception and the behavioral principles (6Principles) for continuously generating innovation. This marks the first time such shared values and behavioral principles have been established across the Group, transcending regions and businesses. By having each employee embody these in their daily activities, we aim to foster an innovative organizational culture. The Values (3Values) include "Consumer/Patient at Heart" and "Quality in Mind" – the Group's founding principles since its inception – alongside the newly added "Pioneer with Innovation". We wish to maintain the pioneering spirit, a fundamental strength of the Kirin Group, which involves continuously proposing new ideas to the world with free thinking and a playful spirit. Centered on "People", we will build a strong organization that drives innovation from the front lines.

KIRIN WAY Our fundamental Values:"Pioneer with Innovation"With creative thinking and a quality people expect spirit of curiosity, let' s keep proposing new ideas that move us forward."Consumer/Patient at Heart"Deeply connect with people' s lives and deliver value beyond what society anticipates."Quality in Mind"Approach all work with integrity and consistently deliver the With creative thinking and a quality people expect. | Our Principles:"Be Aspirational"Envision a future that excites and inspires us. Our personal passion and purpose arethe driving forces that unlock tomorrow."Leap Beyond"Break out and explore beyond the familiar! New possibilities await on the other side of the leap."Go to Gemba"Observe at the source to uncover truth and understand real needs.The starting point of our work should always begin where these needs exist."Unite as One Team"Turn our personal uniqueness into collective strength. By working together, we make the impossible possible."Act First, Learn Fast"Step forward boldly, even if the path is uncertain. There' s always something to learn from every outcome."Commit to Winning"Bring passion and commit to delivering results! Individual ownership fuels the value we deliver to the world.

Sustainable Enhancement of Corporate Value

To realize the 2035 Vision, we set financial targets of high single-digit percentage growth in EPS and ROIC of 10% or more. Furthermore, we establish non-financial indicators to capture the sources of sustainable growth that financial metrics alone cannot fully capture, visualizing progress towards our three-year targets. We will set targets across the following areas: "Health and Well-Being", "Community Engagement", "The Environment", and "Responsibility of Kirin Group which runs Alcoholic Beverage businesses" – based on the Kirin Group's "CSV Purpose" – alongside "R&D", "Digital", and "Human Capital" as sources of innovation. We will continuously enhance corporate value through the achievement of both financial and non-financial targets.

Innovate2035!2035 Vision. Vitalize the world through innovation by our people and technology, as a global leader in Creating Shared Value (CSV).