Kirin Holdings Co. Ltd. · TSE:2503

Kirin — Merger or Acquisition (August 2011)

14 slides from Kirin's merger presentation, Aug 2, 2011

  1. Slide 1: Consolidation of Schincariol

    Consolidation of Schincariol August 2, 2011 Kirin Holdings Company, Limited Page 0

  2. Slide 2: Transaction Overview

    Transaction Overview Kirin signed a share purchase agreement to acquire all outstanding shares of Aleadri, a company that holds 50.45% of the outstanding shares of Schincariol Participações e Representações S.A. Transaction was completed on August 2  Kirin Holdings Company, Limited (hereafter, “Kir

  3. Slide 3: Strategic Rationale

    Strategic Rationale While Asia and Oceania remain Kirin’s most important regions, this transaction provides us with a solid base in a promising emerging market and supports our international integrated beverages group strategy  Acquire an operational base in the large and high growth Brazilian beer

  4. Slide 4: Kirin's Global Expansion

    Kirin’s Global Expansion While Kirin continues to implement its international integrated beverages group strategy in the Asia and Oceania regions, Kirin is also pursuing opportunities to expand its business platform to new profitable and high growth markets, and decided to invest in Brazil Kirin Eur

  5. Slide 5: Schincariol Group Overview

    Schincariol Group Overview Overview Geographic Footprint (13 Production Units) Recife/Pernambuco Company Name Schincariol Participações e Representações S.A. Production Capacity: 5,104,884 HL/year Start of Operations: 2003 Headquarters Itu, Sao Paulo, Brazil  n  n  n  n  n  n Alagoinhas/Bahia

  6. Slide 6: Schincariol Group Key Products and Brands

    Schincariol Group Key Products and Brands Schincariol Group’s major beer brands include Nova Schin, Devassa Bem Loura, Glacial, Baden Baden, and Eisenbahn. Schincariol Group’s soft drinks business is centered around the Schin and Skinka brands Beer Premium (2.1%) Standard (90.8%) Economy (7.1%) Deva

  7. Slide 7: Schincariol Group Financial Highlights

    Schincariol Group Financial Highlights 3/2011 LTM Consolidated bases 12/2010 (Unaudited, Management accounting (BRL millions / ¥ billions1) (Audited) base) Net Revenues 2,854 (143.7) 2,988 (150.5) EBITDA (standardized)2 509 (25.6) 550 (27.6) Net Income 54 (2.7) － Total Asset 4,463 (224.7) － Net Debt

  8. Slide 8: Valuation and Funding

    Valuation and Funding Based on the purchase price of BRL 3.95 billion1, implied EV/EBITDA multiple (3/2011 LTM) is c. 15.7x. The multiple is in line with precedent acquisitions of beverage companies in emerging markets  Firm Value BRL 8.654 billion = Equity Value (100% base) BRL 7.825 billion + Net

  9. Slide 9: Appendix

    BOULEH RMU KIRIN Page 8

  10. Slide 10: Brazilian Beer Market (1)

    Brazilian Beer Market (1) Top Global Beer Markets (2010) Brazilian Beer Market Size (Million Kilolitres) (Value in Billion Reais1 , Volume in Million Kilolitres) 45.4 .8% 90.4 2: 9 R C AG 83.2 E – ’15 ’10 76.0 69.5 % 63.3 2: 1 2.1 GR 56.7 ’ CA 0 23.9 ’–1 50.3 06 44.6 40.4 35.9 12.6 9.6 8.8 Value 6.9

  11. Slide 11: Brazilian Beer Market (2)

    Brazilian Beer Market (2) Brazilian Beer Market by Category Brazilian Beer Market by Channel (Billion Reais1) (Million Kilolitres) Low/Non-Alcohol Beer Off-trade On-Trade 90.4 Dark Beer Economy Lagar 12.6 Standard Lagar 83.2 Premium Lagar 11.8 11.3 76.0 10.9 69.5 10.2 63.3 56.7 8.1 7.7 50.3 7.5 76.9

  12. Slide 12: Brazilian Soft Drinks Market

    Brazilian Soft Drinks Market Brazilian Soft Drinks Market (by Category) CSD Market Size2 (Value in Billion Reais1 , Volume in Million Kilolitres) 3 11.2% (Value Terms) 5E C AGR : Sports and ’10–’1 32.4 RTD Tea Energy Drinks 2.3% 29.4 GR : 1 3 Value 26.4 1.0% 4.2% ’10 CA 23.8 Bottled Water ‘06– 19.1

  13. Slide 13: Brazilian Economy: Overview

    Brazilian Economy: Overview Nominal GDP Population (Billion USD) (Millions) R: 0.9% ’10–’15E CAG 2% : 8. 3,103.0 1.0% GR CAGR: E CA ‘06–’10 – ’15 2,914.0 ’10 2,735.3 194.9 196.5 198.0 200.1 202.2 191.5 193.3 187.6 189.6 2,576.2 185.6 2,421.6 % 17.6 R : 2,090.3 CAG 0 –’1 ‘06 1,655.1 1,600.8 1,378.2 1

  14. Slide 14: This material is intended for informational purposes only

    この資料は投資判断の参考となる情報の提供を目的としたものであり、投資勧誘を目的としたものではありません。 銘柄の選択、投資の最終決定は、ご自身の判断でなさるようにお願いいたします。 This material is intended for informational purposes only and is not a solicitation or offer to buy or sell securities or related financial instruments. Page 13

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