Plan for 2028 & Financial Strategy / Our 3-year plan towards 2028 and The Financial Strategy to Drive It ForwardPDF: 1,455KBPDFファイルをダウンロードする

Our 3-year plan towards 2028 and

The Financial Strategy to Drive It Forward

FEBRUARY 13, 2026

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

Investment in Growth Businesses

Cash

Cycle

Unlock valuation

Returns from investment

Achieve upside through stronger earnings (EPS) and

improved PER

Improved PER

Strong EPS Growth

Will consider share buybacks when sufficient cash is

available but investment timing is not optimal

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 shareholders

• High-single-digit %

  EPS growth

• ROIC ≥ 10%

• Balanced, resilient profit portfolio across three core businesses

© Kirin Holdings Company, Limited 2

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.

JPY 120.0 bn*

by Q2 2026

© 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.

EPS growth

Use of One-time Cash Proceeds from Business Divestment

Share Buybacfi

Cancellation of Treasury Stocfi

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

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.

Cash-In

Returns from investment

Investment in Growth Businesses

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

EPS Growth

Improved PER

Enhancing Each Business Earning Power

through a Long-term & Multi-dimensional Approach

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.

Enhance sustainable

Cash generation capacity

Multi-dimensional perspective

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

Example Items to be Considered

CAPEX

(New / Renewal)

M&A

Patent Cliff

10 years ahead

9

KIRIN HEXAGON-VIEW

Growth

8

7

Make decisions for the next 6

• Revenue & Profit CAGR

  three years while taking into account a financial model extending 10 years ahead

  5

  4

  Year 3

  Year 2

  Improving EPS Contribution and ROIC by Business

• Organizational capabilities such as

  People and R&D

  • DER,

    Net Debt Multiple Equity Ratio

• Each Profit/

  Profit margin Indicator

• Free CF, Operating/ Investing CF

  Year 1

  • ROIC, ROE

    Return on Investment

    © Kirin Holdings Company, Limited 55

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

    
    
    
    
    

    Improved PER

    EPS Growth

    EPS Growth by Segment Toward 2028

    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

EPS growth

EPS Contribution by Region

Increase the Asia-Pacific contribution

by growing Health Science EPS toward 2028.

Japan

EPS Contribution

2026:

Approx.

30％

2028: Approx.

Domestic alcoholic beverage business will maintain its contribution

Achieve growth through strengthening

the FANCL brand

Strengthen Kyowa Kirin (Japan)'s drug discovery process

EPS Contribution

Asia

-Pacific

US, etc

2026:

Approx.

25％

EPS Contribution

2026:

Approx.

45％

2028: Approx.

2028: Approx.

Achieve brand growth through integrated overseas Health Science operations

Lion and San Miguel will also increase their EPS Contribution

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

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

© Kirin Holdings Company, Limited 7

EPS growth

Financial Targets: EPS/ROIC Targets

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

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

Normalized OP Health Science & Non-Alcoholic 3-Year CAGR Beverage Business

High-single-digit%

Alcoholic Beverages Business

Slight increase

Pharmaceutical Business

Slight decrease

Exercise cost discipline below NOP line

* 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.

© Kirin Holdings Company, Limited 8

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.

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.

Strong EPS Growth

Improved PER

• High-single-digit % EPS growth

• ROIC ≥ 10%

• Balanced, resilient profit portfolio across three core businesses

3 trillion yen Line

Market Cap（trillion yen）

Reach

Around JPY 250

by 2030

Aim for

Approx. 15 x

© Kirin Holdings Company, Limited

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

FY25 FY26

182 yen 193 yen

FY30

250 yen

Future EPS Growth

FY35

300yen

9

Achieve ROIC of 10% or Higher

Steadily improve ROIC across each segment,

Alcoholic Beverages Business

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

• Business management focused on bottom-line profits

• Streamline small-scale non-core assets

aiming to consistently achieve a level of 10% or higher

ROIC Target

10%

FY2035

FY2035

FY2035

Group

Approx.

6%

WACC

Alcoholic

Beverages Business

Pharmaceutical

Business

FY2028

Health Science ＆ Non-Alcoholic Beverages Businesses

Future Milestones for ROIC by Segment

Health Science & Non-Alcoholic Beverages Businesses

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

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

• Efficient brand management across the entire APAC

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.

Capital Efficiency ( ROIC)

© Kirin Holdings Company, Limited 11

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

Cash-Out

Cash-In

Cash

Cycle

Returns from investment

Investment in Growth Businesses

Post-dividend operating cash flow will be allocated to CAPEX and repaying interest-bearing debt to secure financial health that enables future growth investments (M&A) in the coming years

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

Stable Dividends*

240.0 bn yen

Operating

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.

Determine priorities from a long-term perspective

Appropriately control capital

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.

CF

840.0 bn yen

CAPEX

440.0 bn yen

Previously announced cash-out portion for 2026 onwards.

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

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

Investments already announced

Debt Repayment

Divestment of businesses and cash

generation from financial strategy**

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

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)

P r i o r i t y

L o w

© Kirin Holdings Company, Limited

*Group Total

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

Key non-financial indicators: Indicators and targets (2026&2028)

*Specific indicators and target levels are not disclosed in the strategy because they include content related to intellectual property.

© Kirin Holdings Company, Limited 13

Group Materiality Matrix (GMM)

(Reference) Revised Management Issues for Sustainable Growth

Impact on Stakeholders

Large

Responsible Alcohol Producer

Health and Well-Being

Community Engagement

Medium

Small

Small

Medium

Impact on the Group's Business Large

© Kirin Holdings Company, Limited 14

Reference Information Links

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 15

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