Plan for 2028 & Financial Strategy / Our 3-year plan towards 2028 and The Financial Strategy to Drive It Forward with ScriptPDF: 1,557KBPDFファイルをダウンロードする

Plan for 2028

& Financial Strategy

Our 3-year plan towards 2028 and

The Financial Strategy to Drive It Forward

FEBRUARY 13, 2026

• Good morning, everyone. This is Akieda from Kirin Holdings.

• I will first outline our three-year plan toward 2028 and the financial strategy for driving it, followed by an overview of our financial results.

  Cash Allocation for Enhancing Corporate Value

  The Kirin Group will continue to unlock corporate value through EPS × PER expansion by driving its cash cycle Cash Cycle of Growth Companies

  Cash-Out

  Cash-In

  Cash Cycle

  Unlock valuation

  Achieve upside through stronger earnings (EPS) and improved PER

  Will consider share buybacks when sufficient cash is available but investment timing is not optimal

  Strong EPS Growth

  • High-single-digit %

    EPS growth

  • ROIC ≥ 10%

  Improved PER

  • Balanced, resilient profit portfolio across three core businesses

  As the foundation of shareholder returns, we will maintain stable dividends under a progressive dividend policy, targeting a DOE of 5%, and will continue to return growth to

  © Kirin Holdings Company, Limited

  shareholders

  2

  Returns from investment

  Investment in Growth Businesses

  
  
  

  Returns from investment

  Investment in Growth Businesses

• Let me begin with the overall approach.

• Kirin Group has been advancing its business portfolio transformation with the aim of achieving long-term, sustainable growth.

• We are confident in our capability to achieve our profit growth by leveraging our strengths in "people and technology."

• We intend to enhance the efficiency of its existing businesses to generate stable cash flow, which will be reinvested into growth opportunities, creating a virtuous cycle of continued Group-wide value creation.

• Shareholder returns will be anchored by stable, progressive dividends based on DOE, and supplemented by share repurchases when there is a timing mismatch between cash inflows and investment opportunities.

• By strengthening our earnings capability, we aim to consistently deliver high single-digit % EPS growth, and to raise our PER by building investor expectations through disciplined growth investments.

• Through the combined expansion of EPS and PER, Kirin Group aims to deliver sustainable corporate value growth as a true growth company, and we hope to earn the continued expectations of our investors.

  
  
  

  Business Portfolio Review

  and the Strategic Rationale for Divesting Four Roses

  Improved PER

  Looking ahead to the next 10 years, the business portfolio will be continuously reviewed and the balance sheet optimized.

  The divestment of Four Roses is part of this initiative.

  Divestment of Four Roses

  Since our acquisition of Four Roses, the business has achieved strong growth.

  However, the Group's priorities did not allow for sufficient investment, which constrained growth potential..

  The decision was made to transfer the business to another owner who is better positioned to drive its growth

  We will continue to review all areas without exception, but at this stage, no further major portfolio changes are anticipated

  Transfer Price

  Closing Scheduled

  Up to approx.

  The portfolio will shift toward businesses that can leverage the strengths of the Kirin Group to contribute to mental and physical well-being of consumers worldwide

  Build a business portfolio designed to generate higher multiples, focusing exclusively on businesses where Kirin can be the best owner.

  Approach to reviewing the business portfolio

JPY 120.0 bn*

© Kirin Holdings Company, Limited

*Of this amount, approx. JPY 8.0 bn represents consideration that may become receivable contingent 3

upon Four Roses achieving certain net revenue targets following the completion of the transfer.

• I would like to reiterate the Kirin Group's approach to its business portfolio.

• Our portfolio is built on technological synergies derived from fermentation and biotechnology.

• Each year, we reassess cash allocation by considering factors such as the growth potential of each business and our competitive positioning in each market.

• In some cases, it is more suitable to entrust a business to the "best owner" capable of accelerating its growth when we cannot allocate sufficient capital ourselves.

• The divestment of Four Roses aligns exactly with this initiative.

• Since its acquisition in 2002, Four Roses has achieved significant growth by leveraging the Kirin Group's organizational capabilities.

• As Kirin Group increasingly shifts capital toward the Health Science businesses, we determined that Four Roses would generate greater corporate value under Gallo, which is better positioned to drive its next stage of growth.

• While we will continue to conduct ongoing reviews of our business portfolio, we do not currently anticipate major portfolio changes other than smaller adjustments.

  Use of One-time Cash Proceeds from Business Divestment

  EPS growth

  Share Buyback

  Cancellation of Treasury Stock

  Will be executed a JPY 80.0 bn share buyback. Plans to utilize the sale proceeds as additional shareholder returns

  as there will be a time lag until the next growth investment

  Nearly all of the treasury stock held will be canceled

  Current Cash Cycle Status

  Cash-Out Cash-In

  Cash Cycle

  In the near term, we will

  focus on value creation in the Health Science

  and new investments will be considered after that

  © Kirin Holdings Company, Limited

  4

  Returns from investment

  Investment in Growth Businesses

  Operating Cash Flow from Held Assets

  Sufficient financial capacity for growth investments is expected to be secured through operating cash flow over the next several years driven by the growth of the Health Science Business.

  Cash Inflow from the Business Divestment

  Prioritize share buybacks given the clear visibility on future financial capacity.

  As a result of this share buyback, the EPS impact from the divestment will be largely offset.

  
  
  

  Operating Cash Flow from Held Assets

  Cash Inflow from the Business Divestment

  Investment in Growth Businesses

  Returns from investment

• This section outlines how Kirin intends to use the cash generated from the divestment of Four Roses.

• We are currently prioritizing the PMI of Blackmores and FANCL and is focusing on integrating the Health Science operations centered around these two businesses.

• While we continue to explore future M&A opportunities in the Health Science business, it expects that additional time is required before these investments can be executed due to capability constraints, including talent.

• Meanwhile, rising operating cash flow has enabled steady debt repayment, and we expect to fully restore its capacity for the next round of investments within next few years.

• Given these conditions, we determined that allocating all cash to debt repayment would not be optimal and concluded that repurchasing its undervalued our shares would be an appropriate use of cash.

• As a result, the share repurchase will also help offset the temporary EPS dilution associated with the divestment.

• We have also resolved to cancel nearly all treasury stocks, including those currently held.

  ending 10 years ahe

  Improving EPS Contribution and ROIC by Business

  10 years ahead

  9

  8

  7

  6

  5

  4

  Year 3 Im

  Co

  2

  ext

  55

  ad

  • Organizational capabilities such as

  People and R&D

  • Each Profit/ Profit margin

  Indicator

  Year

  proving EPS ntribution and ROIC by Business

  • DER,

  Net Debt Multiple Equity Ratio

  • Free CF, Operating/ Investing CF

  Year 1

  • ROIC, ROE

  Return on Investment

  © Kirin Holdings Company, Limited

  * The graphic lists the key indicators monitored under each of the six perspectives.

  Make decisions for the next

  three years while taking into account a financial model

  KIRIN HEXAGON-VIEW

  Growth

  • Revenue & Profit CAGR

  Patent Cliff

  M&A

  (New / Renewal)

  Multi-dimensional perspective

  Monitor each business from six perspectives to improve the Group's EPS and ROIC

  Enhance sustainable

  ty

  Cash generation capaci

  Long-term perspective

  Make cash allocation decisions based on short- and medium- to long-term perspectives, using a 10-year financial model for each business.

  CAPEX

  Enhance business earning power through backcasting from financial models, combined with monitoring

  across six key perspectives.

  This will enable disciplined decision-making without being driven by short-term P&L considerations.

  Improved PER

  EPS Growth

  Enhancing Each Business Earning Power

  through a Long-term & Multi-dimensional Approach

  
  
  

  Example Items to be Considered

• This page introduces our framework for planning and monitoring.

• To avoid short-term P&L thinking, each business develops a 10-year financial model, which serves as the basis for rolling three-year detailed plans that are updated annually.

• By incorporating a high-level schedule for CAPEX and M&A etc., we can formulate our plans aligned with long-term cash allocation.

• In addition, each business applies the "Kirin Hexagon View" to ensure balanced management that does not over-rely on revenue or Normalized OP only, enabling disciplined oversight of investment efficiency.

• These mechanisms have strengthened our organizational capabilities to deliver improvements in EPS and ROIC-two external commitments.

  EPS Growth by Segment Toward 2028

  EPS Growth

  Improved PER

  Increase the EPS contribution by driving profit growth for the Health Science Business

  while ensuring steady EPS growth in the Alcoholic Beverages and Pharmaceuticals Business

  Alcoholic Beverages

  Health Science &

  Non-Alcoholic Beverages

  Pharmaceuticals

  EPS

  Contribution

  2026: Approx.

  55%

  2028:

  Approx.

  55%

  EPS

  Contribution

  2026: Approx.

  20%

  2028:

  Approx.

  25%

  EPS

  Contribution

  2026: Approx.

  25%

  2028:

  Approx.

  20%

• Build out a distinctive Kirin Group product portfolio that creates the future of mental and physical well-being

• Establish a competitive advantage through innovation, alongside price optimization and cost control

  • Begin direct sales operations in China and Southeast Asia

  • Create added value in the domestic and overseas market by leveraging the Group's products and sales channels

    2028 EPS Contribution
    	Kirin Brewery	San Miguel	Lion	New Belgium	Other	Non-Alcoholic Beverages	Health Science	Kyowa Kirin

  • Accelerate the shift toward science-based health and transition beyond the highly competitive Non-Alcoholic Beverages Business

  • Sustained growth of global strategic products and launching rocatinlimab etc. are expected to offset the decrease in royalty income once the U.S. Fasenra agreement concludes in May 2028.

  © Kirin Holdings Company, Limited

  *The above EPS contribution is calculated by subtracting the EPS from "Other" and "Corporate Expenses" from the total EPS base. 6

  
  
  

• This section explains EPS contribution by business segment.

• We aim to grow EPS at CAGR 6%, though the contribution mix to EPS across the three business domains will shift.

• Over the next three years through 2028, Health Science and Non-alcoholic Beverage Business will be the key drivers of EPS growth.

• However, this is based on the assumption that our Alcoholic Beverages Business will continue to produce stable profit.

• The Pharmaceuticals Business is expected to remain under pressure through 2028 due to the patent expiry of Fasenra and higher R&D & other expenses associated with changes to the Rocatinlimab scheme.

  7

  © Kirin Holdings Company, Limited

  Kyowa Kirin (North America, etc.) will achieve steady growth in Crysvita, etc.

  Coke Northeast and New Belgium etc. will maintain and improve profit margins

  Achieve brand growth through integrated overseas Health Science operations

  Lion and San Miguel will also increase their EPS Contribution

  2028: Approx.

  30%

  2028: Approx.

  30%

  2028: Approx.

  40%

  2026:

  Approx.

  45％

  US, etc

  2026:

  Approx.

  25％

  EPS Contribution

  Asia

  -Pacific

  Domestic alcoholic beverage business will maintain its contribution

  Achieve growth through strengthening the FANCL brand

  Strengthen Kyowa Kirin (Japan)'s drug discovery process

  2026:

  Approx.

  30％

  Japan

  EPS growth

  EPS Contribution by Region

  Increase the Asia-Pacific contribution by growing Health Science EPS toward 2028.

  EPS Contribution

  EPS Contribution

  
  
  

• This slide presents EPS contribution by region.

• Kirin Group aims to build a balanced business portfolio not only across business segments but also across regions, taking geopolitical risks into account.

• Over the next three years, we expect APAC to increase its contribution of total EPS, driven primarily by the growth of the Health Science Business.

  
  
  

  Financial Targets: EPS/ROIC Targets

  Achieve high-single-digit % EPS growth and improve ROIC

  EPS growth

  in both the short and medium- to long-term through our unique business portfolio, contributing to the mental and physical well-being of consumers.

  Financial Goals	2025 Actual	2026 Forecast	2028 Target	Long-Term Target
  Aim for ROIC to ROIC consistently exceeds the cost of capital (WACC)*	7.6%**	7.7%	8.0% +	10% +
  Based on EPS non-normalized EPS to better demonstrate underlying earning power	182 yen	193 yen*** （+6％）	3-year CAGR High-single-digit %**** (6% +)	CAGR High-single-digit %

  * The Group's current WACC is approximately 6%

  ** [Reference] ROE for FY2025 is 12.0%.

  *** The 2026 plan of ¥193 represents an average annual growth of 6% over a two-year period compared with the 2024 actual result (¥172).

  **** For comparison of the three-year EPS CAGR toward the 2028 target, we use the disclosed 2025 EPS target of ¥185.

  Health Science & Non-Alcoholic Beverage Business

  Alcoholic Beverages Business Pharmaceutical Business

  Normalized OP 3-Year CAGR

  High-single-digit% Slight increase Slight decrease

  © Kirin Holdings Company, Limited

  Exercise cost discipline below NOP line 8

• Next, I outline our financial targets.

• We sets a medium- to long-term ROIC benchmark of 10% to maintain investment discipline.

• However, because the Health Science Business is currently in an investment phase, ROIC for 2028 is expected to be 8%.

• EPS is expected to deliver CAGR 6% over the medium to long term, enabling sustainable growth.

• EPS for 2026 is projected at JPY 193, which represents a two-year average growth rate of 6% based on 2024 as the starting point.

• Normalized operating profit growth rates by business segment toward 2028 are shown in the lower-right section of the slide.

  © Kirin Holdings Company, Limited

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  FY35

  300yen

  FY30

  250 yen

  Future EPS Growth

  FY25 FY26

  182 yen 193 yen

  Aim for

  Approx. 15 x

  By growing the Health Science and Non-Alcoholic Beverages Businesses to a scale comparable to other businesses

  Reach

  Around JPY 250

  by 2030

  3 trillion yen Line

  • Balanced, resilient profit portfolio across three core businesses

  • High-single-digit % EPS growth

  • ROIC ≥ 10%

  Improved PER

  Strong EPS Growth

  Even with high-single-digit % EPS growth alone, market cap would reach JPY 3 trillion within 10 years, but multiple valuation expansion would enable earlier achievement.

  Toward Enhancing Corporate Value

  Unlock long-term corporate valuation through stronger EPS and improved PER. Aim for market cap of 3 trillion yen at an early stage.
  
  

  Market Cap（trillion yen）

• As reiterated earlier, Kirin Group aims to enhance corporate value by achieving sustainable EPS growth and improving PER.

• With consistent 6% annual EPS growth, our market cap would reach JPY 3 trillion within 10 years, even assuming the current valuation multiple remains unchanged.

• However, we aim to elevate investor expectations, raise our valuation multiple, and achieve a market cap of JPY 3 trillion at an earlier stage.

• Thereafter, Kirin will continue to deliver sustainable corporate value creation and further expand its market cap.

Appendix

11

© Kirin Holdings Company, Limited

Pharmaceuticals Business

Current: 8.4% → Aim for 10%+ by 2035

• Sustaining growth through new launches and label expansions despite key patent expirations.

• Active use of external resources such as strategic partnerships etc.

Health Science ＆ Non-Alcoholic Beverages Businesses

Growth Potential (Revenue CAGR)

Current: 4.4% → Aim for 12% level by 2035

• Rapid growth in profitability (NOP at 15% level)

• Efficient brand management across the entire APAC

Beverages Business Business

FY2028

Alcoholic Pharmaceutical

WACC

Approx.

6%

Health Science & Non-Alcoholic Beverages Businesses

Group

FY2035

Current: 8.6% → Aim for 12% level by 2035

• Business management focused on bottom-line profits

• Streamline small-scale non-core assets

FY2035

FY2035

ROIC Target

10%

Alcoholic Beverages Business

Future Milestones for ROIC by Segment

Achieve ROIC of 10% or Higher

Capital Efficiency (ROIC)

Investments already announced

Debt Repayment

Divestment of businesses and cash

generation from financial strategy**

Debt Repayment

M&A investment or Additional

Shareholder Returns

H i g h

Debt repayment will be implemented to secure financial health within three years. (Gross DE ratio of 0.4 to 0.6 is the target)

L o w

P r i o r i t y

© Kirin Holdings Company, Limited *Group Total

**Consider BS management, business portfolio replacement, etc. as needed 12

Previously announced cash-out portion for 2026 onwards.

Includes in-licensing of Kyowa Kirin's Ziftomenib, etc.

M&A capital is financed by divestment of businesses, etc., but a temporary DE ratio exceeding 1x is acceptable as far as financial health is expected to be restored within 2 to 3 years.

Execute JPY 80.0 billion share repurchase using a portion of the cash inflow from the divestment of Four Roses.

Determine priorities from a long-term perspective

Appropriately control capital investment over the next three years based on the 10-year financial model

CAPEX

440.0 bn yen

Operating

CF

840.0 bn yen

Shareholder returns will primarily be paid out through dividends

Continue to implement stable dividends through a DOE of 5% as a guide and a progressive dividend policy, while delivering growth-driven returns to shareholders.

Improve operating CF after investing in human capital, R&D, ICT, and marketing enhancement

Stable Dividends*

240.0 bn yen

Cash Allocation, Investment Discipline, and Shareholder Returns (FY2026 to FY2028)

Cash Cycle

Cash-In

Cash-Out

Returns from investment

Investment in Growth Businesses

Returns from investment

Investment in Growth Businesses

© Kirin Holdings Company, Limited

*The water use intensity maintain high target from 2026 R&D will also maintain high target from 2026 and consider further strengthening.

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Group Materiality Matrix (GMM)

Updated management themes based on the Group's business and strategy. Grow our business by creating a sustainable society.

Responsible Alcohol Producer

Health and Well-Being

Community Engagement

The Environment

Fundamentals of Corporation

© Kirin Holdings Company, Limited

14

Small Medium Impact on the Group's Business Large

Large

Impact on Stakeholders

Medium Small

Kirin Holdings IR Information

Kirin Holdings Investor's Guide*

Kirin Holdings Integrated Report

https://www.kirinholdings.com/en/investors/

https://www.kirinholdings.com/en/investors/guide/ https://www.kirinholdings.com/en/investo

rs/library/integrated/

© Kirin Holdings Company, Limited

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This material is intended for informational purposes only and is not a solicitation or offer to buy or sell securities or related financial instruments.