Notice Regarding Launch of Kirin Sustainable Finance Framework

TOKYO, Friday February 14, 2025 - Kirin Holdings Company, Limited (Kirin Holdings) announces that, Kirin Holdings developed the "Kirin Social Finance Framework" ("this Framework")　*1 based on the four core components, that the "1. Use of Proceeds," "2. Process for Project Evaluation and Selection," "3. Management of Proceeds," and "4. Reporting," outlined in ICMA (International Capital Market Association)'s Principles, etc.

1.Background and Rationale of this Framework

Kirin Group positions fundraising through social finance as a means to achieve sustainable growth together with society. We believe this is an opportunity to communicate to our stakeholders about our CSV*2 management efforts, which simultaneously create social and economic value.

This time, we have revised the "Kirin Social Bond Framework" established in September 2023 and formulated this framework that designates acquisitions aimed at solving social issues of Health Science business as eligible projects, to help our stakeholders understand our commitment to our growth strategy and key areas.

Furthermore, looking ahead to the next 10 to 20 years, we believe that nurturing the Health Science business as our third pillar after Alcoholic & Beverages and Pharmaceutical business would further ensure the Kirin Group’s growth. Kirin Group aims to become the largest Health Science company in the Asia-Pacific region by developing materials using our core R&D technologies of Health Science business and reaching a wide range of people worldwide through our BtoC business as a brand business, contributing to solving health issues.

2.Summary of this Framework

This Framework corresponds to "social finance," which allocates raised funds to businesses that contribute to solving social issues. It sets M&A that contribute to solving health issues, such as improving access to nutritional supplements that promote health and maintain immune function for customers of various regions and age groups, as well as the research, development, sales, and distribution of healthier products as eligible criteria. Regarding the acquisition of shares in FANCL Corporation ("FANCL"), which is an eligible project, the amount of funds allocatable to this acquisition will be calculated and set based on the proportion of business segments and product sales that comply with the social bond principles, and a portion of the allocatable funds will be raised through social finance.

We have obtained a second party opinion*3 and ANNEX second party opinion*4 from DNV BUSINESS ASSURANCE JAPAN K.K. ("DNV"), an independent external reviewer, that this Framework is aligned with Social Bond Principles 2023 (SBP) set by the ICMA, the Social Loan Principles 2023 (SLP) set by the Loan Market Association (LMA) and others, and Social Bond Guidelines 2021 (SBGL) set by the Financial Services Agency of Japan.

By executing Kirin Social Finance based on this Framework, the Kirin Group will promote our CSV management and accelerate our efforts to solve social issues.

1 For details on the Kirin Social Finance Framework, please refer to our company's website.
https://www.kirinholdings.com/en/impact/files/pdf/social_finance_framework_en.pdfPDF：1,338KB
2 Creating Shared Value: combined added value for consumers as well as for society at large.
3 For details on the Second Party Opinion, please refer to our company's website.
https://www.kirinholdings.com/en/impact/files/pdf/social_second_party_opinion_en.pdfPDF：615KB
4 For details on the ANNEX Second Party Opinion, please refer to our company's website.
https://www.kirinholdings.com/en/impact/files/pdf/social_annex_second_party_opinion_en.pdfPDF：270KB

For Reference

For an overview of Long-Term Management Vision for 2027 “Kirin Group Vision 2027”, please refer to our company's website.
Long-Term Management Vision and Medium-Term Business Plan | Purpose | Kirin Holdings

About Kirin Holdings

Kirin Holdings Company, Limited is an international company that operates in the Food & Beverages domain (Food & Beverages businesses), Pharmaceuticals domain (Pharmaceuticals businesses), and Health Science domain (Health Science business), both in Japan and across the globe.

Kirin Holdings can trace its roots to Japan Brewery which was established in 1885. Japan Brewery became Kirin Brewery in 1907. Since then, the company expanded its business with fermentation and biotechnology as its core technologies, and entered the pharmaceutical business in the 1980s, all of which continue to be global growth centers. In 2007, Kirin Holdings was established as a pure holding company and is currently focusing on boosting its Health Science domain.

Under the Kirin Group Vision 2027 (KV 2027), a long-term management plan launched in 2019, the Kirin Group aims to become “A global leader in CSV*, creating value across our world of Food & Beverages to Pharmaceuticals.” Going forward, the Kirin Group will continue to leverage its strengths to create both social and economic value through its businesses, with the aim of achieving sustainable growth in corporate value.
* Creating Shared Value: combined added value for consumers as well as for society at large