Plan for 2028 & Financial Strategy
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.
Approach to reviewing the business portfolio
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
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.
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.
30%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.
30%2028: Approx.
40%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.
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 % |
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
Appendix
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
Growth Potential ( Revenue CAGR)
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)
Category | Indicators | 2026 target | 2028 target | |
Health & Well-being | Social impact delivered through the Group's health science products (HS domain) | 155 million people | 175 million people | |
Market launch status of global products in key countries (pharmaceuticals domain) | Number of products sold by country and application | Number of products sold by country and application | ||
Environment | GHG reduction rate (Scope 1 + 2 (vs. 2019)) | 32% | 41% | |
Water use intensity at manufacturing sites with high water stress (LION) | Less than 2.5 L/L | Less than 2.5 L/L | ||
Community engagement | Achievement level of the business units' community activities | 7 out of 9 indicators achieved | 8 out of 9 indicators achieved | |
R&D | Number of ①patent applications, ②published papers, and ③conference presentations | Not disclosed* | Not disclosed* | |
Acquisition of hard-to-avoid patents (midterm target set for three years only) | Not disclosed* | Not disclosed* | ||
Digital | Improved operational productivity through the implementation of AI and the automation of operational processes at the individual and organizational levels | 15% | 25% | |
Human Capital | Employee engagement score | 76 | 76 | |
LTIR Score | 2.25 | 1.75 | ||
Percentage of women executives in Japan (KH hired employees) | 20% | 26% | ||
© 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. 13
Group Materiality Matrix (GMM)
(Reference) Revised Management Issues for Sustainable Growth
Updated management themes based on the Group's business and strategy. Grow our business by creating a sustainable society.Impact on Stakeholders
Large
Responsible Alcohol Producer
Health and Well-Being
Community Engagement
The Environment Fundamentals of Corporation
Improvement of access to nutrition | Initiating new approaches to meet medical needs that go beyond medicines | Support for the prevention of non-communicable diseases | Update Sustainable development of raw material production areas | Sustainable use of biological resources | Dealing with alcohol related problems | Ensuring food safety and security | Ensuring quality assurance and a supply of medicines | Creating and delivering Life-changing medicines | |
Sustainable use of water resources | Sustainable recycling of containers and packaging | Overcoming climate change | New Promoting responsible marketing | Update Revitalization of local economies and communities via interpersonal and societal ties | Respect for human rights | ||||
Ensuring freedom of food choice | Update Support for maintaining and improving internal and external health, as well as physical and mental performance | Ensuring compliance and ethics-oriented business practices | Support for maintaining the immune system | Ensuring occupational health and safety | Having human capital development for value creation | Promoting Diversity Equity & Inclusion | |||
Improving the effectiveness of corporate governance | Reinforcing risk management | Protection of personal information | |||||||
Ensuring tax transparency | Building sustainable logistics | Countermeasures against cyber attacks | Implementation of health and productivity management | Realizing a workplace where employees can work in a lively and active way | Strengthening group governance | ||||
Medium
Small
Small
Medium
Impact on the Group's Business Large
© Kirin Holdings Company, Limited 14
Reference Information Links
Kirin Holdings IR InformationKirin 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/
* The "Investor's Guide" is a document for investors that summarizes the Kirin Group's management plan, business overview, and the significance of holding each business.
© 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.