1

September 2009

KIRIN HOLDINGS COMPANY, LIMITED

Kirin 2009: Taking action for qualitative expansion

Bank of America Merrill LynchJapan Conference 2009

2

20002000 2002009984 yen (‘08)70 yen (‘07)33 yen (‘00)EPS:

M&A: Lion Nathan / San Miguel2000 2009

Mercian / National Foods Kyowa Hakko / Dairy FarmersSan Miguel Brewery

Focused on beer in a traditional and maturing Japanese market

Cash rich; dividend 12 yen

Volume and competitor driven

Consumer and profit driven—clear leader in Japan’s alcohol market growth categories

Strong business segmentsin soft drinks and food, pharmaceuticals

Significant international portfolio

Lean balance sheet getting leaner;forecast dividend 23 yen

Range of Business

Strategy

Financial Strategy

Kirin has changedKirin has changed

Further reference: www.kirinholdings.co.jp/english/company/profile/index (Company and Group information)www.kirinholdings.co.jp/english/ir/library/index.html#management (Management plans and business strategy)

3

Approx. 30%18%Sales excl. liquor taxOverseas

composition

OP margin

Sales (yen)

Approx. 30%

10% plus

2.5 trillion

3 trillion

2015

27%Operating income

9%Excl. liquor tax

1.27 trillionExcl. liquor tax

1.68 trillionIncl. Liquor tax

2006KV2015 targets

Kirin group Vision 2015 (KV 2015)Kirin group Vision 2015 (KV 2015) (announced May 2006)(announced May 2006)

・ Nurture close links with customers through products that provide the enjoyment of food and health・ Integrate our expertise in fermentation and biotechnology, manufacturing, and research and marketing to

create value and offer distinctive products of the highest quality・ Be a leading company in Asia and Oceania, with alcohol beverages, soft drinks and pharmaceuticals as

our core business

KV2015 Group Vision

① Become an integrated beverage group

② Pursue further internationalization

③ Establish health food and functional food business that will follow alcohol beverages, soft drinks and pharmaceutical businesses

Strengthen foundations by achieving growth in Kirin’s

core domestic alcohol business

Unit: billion yen

Quantum growth trajectory

Current trajectory

0

500

1,000

1,500

2,000

2,500

3,000

1997 98 99 00 01 02 03 04 05 06 Est. 20150

50

100

150

200

250

300Sales (left axis)

Operating income (right axis)New growth trajectory

Historic growthline

4

• Pursuing major growth model under KV2015 and on track to meet 2015 targets• Japan’s most internationalized comprehensive beverages company• Focusing development on Asia and Oceania

• Strong businesses in alcohol, soft drinks, foods and pharmaceuticals• Owner of leading brands that generate substantial cash flow• Unique business model: alcohol and soft drinks as a value chain continuum

Kirin has jumped to a new growth trajectoryKirin has jumped to a new growth trajectory

¥1,922 billion

20082006Year:

Net salesExcl. liquor tax

¥1,263 billion

Further reference: www.kirinholdings.co.jp/english/company/profile/index (Company and Group information)http://www.kirinholdings.co.jp/english/company/profile/vision.html (KV2015 plan)

+52%2 years

5

Balanced business segments: itBalanced business segments: it’’s a bigger pies a bigger pieDomestic alcohol remains Kirin’s core business and primary cash generator, but Kirin Group sales and earnings are becoming more balanced and geographically diversified

Sales

Operating income

Alcohol• Kirin’s core business• Very strong domestic brands• #1 in multiple categories• Stable source of cash flow• Supports Group growth

Soft drinks and foods• No. 3 in domestic soft drinks• Strong core brands• Pursuing integration with alcohol

business• Major dairy food & beverage business

in Australia

Pharmaceuticals• Profitable and growing• Now Kyowa Hakko Kirin Co. with

enhanced product line-up and pipeline• Becoming global specialist in

antibody pharmaceuticals

海 外

2006: ¥1.66 tn 2008: ¥2.30 tn 2009e: ¥2.30 tn

66%24%

4%

Other

6%

72%17%

10%

1%

51%31%

8%10%

48%33%

9%10%

68%4%

17%

11%

Alcohol

SD and foods

Pharma

Further reference: http://www.kirinholdings.co.jp/english/ir/library/index.html (Financial results presentations)

2006: ¥116.3 bn 2008: ¥145.9 bn 2009e: ¥125.0 bn

65%

7%

24%

4%

6

* 100% Dairy Farmers

Major growth initiatives have continuedMajor growth initiatives have continued

Further reference:http://www.kirinholdings.co.jp/english/news (News releases on acquisitions and business initiatives)

2009 * 100% Lion Nathan* 48% San Miguel Brewery

International sales on track to reach 30% by 2015

20082007 * 100% National Foods

* Kyowa Hakko* Mercian Corporation

7

Clearly different from global peersClearly different from global peers

Beer business model comparison

Beer Soft drinks

Global local

KirinMajor global peers

Business model Multiple global beer brands

Integrated alcohol and soft drinks

Scale Focus on scale economies within categories

Generate economies beyond individual categories

Strengths/opportunities

Mainly efficiency (bottom line)

Innovation and efficiency(top and bottom line)

Global local

Beer Soft drinks

Fusing the alcohol and soft drink value chains to create value

・ Diversifying consumer preferences are blurring the alcohol/soft drinks boundary・ Kirin is organically integrating the alcohol and soft drinks value chains

Pursuing technology-based group synergies for top-line growth and cost

saving synergies for bottom-line growth

=Greater growth potential

Realizing synergies to create a Group Premium

Priority issues for creating synergies have been clarified:

Ex. Procurement, Distribution, Marketing

Further reference: www.kirinholdings.co.jp/english/ir/library/index.html#management(Management plans and business strategy)

8San MiguelAlcohol Soft drinksLion Nathan

Dalian Daxue Brewery Co., Ltd.

Kirin Holdings

Kirin (China) Investment Co., Ltd.

Hangzhou Qiandaohu Brewery Co., Ltd.Kirin Brewery (Zhuhai) Co., Ltd.

San Miguel Brewery

Lion Nathan

J. Boag & Son Pty Limited

National Foods Limited

Taiwan Kirin Co., Ltd.

Vina Kirin Acecook Beverage Co., Ltd. (Vietnam)Siam Kirin Beverage

Shanghai Jin Jiang Kirin Beverage & Food

・ Pursue unique business model that combines alcohol and soft drinks operations and aim to maximize synergies

・ Advance business expansion in East Asia economic sphere and Oceania・ Pursue alliances with local partners to propose products and services that

reflect regional cultures and needs

Net sales (excl. alcohol tax) composition

海 外

2006：18%

2015 target: approx. 30%

2008：27%

Domestic

Overseas

Domestic Domestic

OverseasOverseas

Kirin group strategy in Asia and OceaniaKirin group strategy in Asia and Oceania

Beijing Flying Kirin Beverage

Pharmaceuticals

Dairy Farmers Limited

9

Kirin Group Total in OceaniaSales： A$5,603mm EBIT： A$ 636mm

Major dairy product and soft drink

company

FY2008 1

Sales：A$3,509mEBIT： A$129m

National FoodsDairy Farmers (100% equity)

No. 2 alcohol company in Oceania

FY2008 2

Sales：A$2,094mEBIT： A$507m

Lion Nathan

（46%⇒100％ equity）

KirinKirin’’s strongs strong presence in Oceaniapresence in OceaniaKirin enhanced its presence in attractive markets of Oceania with multiple complementary investments

1 National Foods financials sourced from Kirin FY08 Results presentation dated 10 February 2009. Dairy Farmers financials sourced from investor presentation dated 25 August 2008 relating to Dairy Farmers acquisition

2 LN FY08 Annual Report

10

1 (37%)

1(27%)

1(46%)

2,166,000kL

Yogurts 2

A$726M

A$181M

2(25%)

2(28%)

3(5%)

3(17%)

(12%)

4(8%)

4(11%)

2(30%)

1 (53%)

1(36%)

A$352M

A$543M

3(4%)

2 (13%)

2(21%)

A$290M1

(52%)

Milk 1

Dairy desserts

Chilled juice

Ambient juice

Specialty Cheese

3

Source: National Foods (2007 estimation)

Product Category/Market size

Manufacturer

National Foods and Dairy FarmersNational Foods and Dairy Farmers:: Market positionsMarket positionsKIRIN Group

1 Certain parts of fresh milk operations in NSW and SA are to be sold from NFL to Parmalat in compliance with a condition imposed by the ACCC (Australian Competition & Consumer Commission) on NFL's acquisition of Dairy Farmers .2 SKI brand license was sold from NFL to Fonterra in January 2009.3 The numbers above include PB produced by each manufacturer.

11

Kirin Holdings (“KH”) has reached an agreement to increase the shareholdings in Lion Nathan (“LN”) from 46.13% to 100% in May, 2009.

Make Lion Nathan a Make Lion Nathan a wwhollyholly--oowned wned ssubsidiaryubsidiary

Capital Composition Pre transaction

KH

LN

AXN

46.13%

KH

100%

【Strategic Rationale】

LN is one of the 2 major breweries in Oceania and its sustainable growth and strong profitability enable KIRIN to strengthen its offshore earnings base.

Accelerate to generate group synergies with National Foods and enhance the comprehensive beverage group strategy in Australia.

EPS expected to be accretive on a pre-goodwill amortization basis

Cash Flows； 46% of dividends → 100% of net income

53.87%※listed in AXN

LN

Capital Composition Post transaction

LN owns a strong portfolio of brands which cover the full spectrum of beer and wine categories.Specialty Brands

Premium Wine

Premium Brands1

Nationwide Brands

(Power Brands)

Selected Major LN Brands

12

Kirin Holdings (“KH”) sold off its shareholdings in San Miguel Corporation (“SMC”) and newly acquired 48% of the shares in San Miguel Brewery, Inc. (“SMB”) in May, 2009 while SMC, which established SMB as its domestic beer company, made its fully fledged entry into infrastructure business.

Strategic alliance with San Miguel BreweryStrategic alliance with San Miguel Brewery

Capital Composition Pre transaction

Capital Composition Post transaction

95%

KH

SMB

SMC19.91%

51%

KH

SMB

SMC

48%

【Strategic Rationale】

Strengthen alcohol beverages operations in Asia

Pursue strategy of becoming a comprehensive beverages maker in Asia and Oceania

Consolidate the profitable business (Operating Margin 32% FY2008)

SMC granted an exclusivity for the share acquisition of its overseas beer companies to be negotiated by KH, SMB and SMC

EPS before goodwill amortization expected to increase from first year

2008 Dividend from SMC: Approx. ¥2bn ⇒ Dividend from SMB: expected to increase

SMB’s 4 core brands comprise a 95% market share

Red Horse53.4%

Gold Eagle

8.1%

Colt 452.9% Other

0.3%

Beer na Beer2.0%

San MigLight

10.7%

Pale Pilsen22.6%

13

NNew developmental stage ew developmental stage ：：Qualitative shiftQualitative shiftMajor investments have lifted Group sales growth ahead of schedule. Now focusing strongly on increasing profitability through group infrastructure, synergies, efficiency, human resources and profit-oriented strategic investment. Growing through bank, brands and brainsGrowing through bank, brands and brains

Further reference: http://www.kirinholdings.co.jp/english/ir/library/index.html#management(Management plans and business strategy)

Growth stages of Kirin Group

Profitability

Business scale

Shift focus to qualitative expansion

Prioritize acquisitions and growth of business scale

Use increased cash flow for further expansion

07 mid-term

plan 2ndhalf

and beyond07 m

id-term

plan 1sthalf

Current stage

BANKKirin has acquired a fundamentally sound, profitable portfolio of businesses with strong cash flows and organic growth potential• Major M&A now largely complete• Further acquisitions considered as appropriate

BRANDS and BRAINSNow pursuing organic growth and synergies for a qualitative shift in earnings• Developing our powerful brands to grow top-line sales• Using our smart people to realize group synergies and ensure best possible management

—New presidents at KB, KBC, ME

—Clear synergy targets

14

Absolute commitment throughout organization for stronger intra-group collaboration

・ Specified 14 priority issues for creating synergies• Cross-company teams have begun extensive synergy project covering 8 areas:

• Sales and marketing• Manufacturing and distribution• R&D• Procurement • Asset reduction and cash flow management• Human resources infrastructure• Business integration• IT

• Working across divisions, companies and regions• Specific milestones and targets are being identified• All activities being run through PDCA (plan—do—check—act) cycles• Synergy outcomes being incorporated into KPI for all managers

Creating Group synergies is a core growth strategy for Kirin

Maximizing group synergiesMaximizing group synergies

15

Addressing key issuesAddressing key issues

KIRIN BREWERY• Reducing sales and marketing expenses to increase

margins• Renewed Ichiban Shibori and Nodogoshi supported

strong 1Q—ahead of plan• Regained 1Q #1 position in beer/happo-shu/new

genre• As having started its partnership with Diageo in

Japan to expand sales of its premium brands such as Guinness and Smirnoff Ice.

• Expects to establish its brand portfolio of spirits and liqueurs to generate synergies with beer and RTD products.

• The World First Product, Alcohol 0.00% Beer-taste Beverage “ KIRIN FREE” is performing very well and revised upward its sales target.

NATIONAL FOODS• Business environment improving with stabilizing

input costs• Focusing on margins• Already seeing integration benefits with Dairy

Farmers

KYOWA HAKKO KIRIN• Achieving growth in existing products• Accelerating integration of R&D, production, etc.

under new company structure• Research focus on antibody medicines

KIRIN BEVERAGE• Emphasizing profit generation in a severe market

environment• Deepening alliance with Kirin Brewery to pursue

comprehensive beverage strategy• Pursuing business in high-growth Asian regions

16

Results and targets: 2007Results and targets: 2007——2009e2009e——2015 targets2015 targets

・ 2009 H1 results exceeded targets・ Likely to fall short of upwardly revised MTMP targets・ Fast progress toward sales targets for 2015, with focus now on qualitative expansion Additional investments in SMB and LN are purely qualitative: no impact on sales and OP but from

2010 will contribute significantly to cash EPS and cash flow at Kirin Holdings

Medium-term management plan and KV2015 targets

¥63

¥85

252.26.2%6.5%5.4%

125.0

1,930.02,300.0

2009 annual forecast

Approx. ¥85

Approx. ¥105

330.07% plus

8.3% plus7% plus

175.0

2,100.02,500.0

2009 MTMP targets(upwardly revised August

2008)

8% plus6.7%OP ratio incl. liquor tax

3,000.01,801.1Sales incl. liquor tax

—¥70EPS (after goodwill amortization for investments since 2007)

—¥70EPS (prior to goodwill amortization for investments since 2007)

—213.1EBITDA10.0%6.5%ROE

8.6%

120.6

1,400.6

2007 results

10.0% plus

250.0

2,500.0

2015 targets

Sales excl. liquor tax

Operating income

OP ratio excl. liquor tax

Year

Further reference: http://www.kirinholdings.co.jp/english/ir/library/index.html#presentation(Financial results presentation materials)

17

Growth strategy supported by strong cash flowsGrowth strategy supported by strong cash flows

Growth strategyGrowth strategy

Cash flowCash flowP/LP/L 07-09 operating CF¥390.0 bn

07-09 operating CF¥390.0 bn

Improve capital efficiencyImprove capital efficiency

B/SB/S

Shareholder returns

Shareholder returns

■ Target operating CF in 2009 ¥143.0 bn (up ¥11.8 bn from 2008)

■ Investment for qualitative expansion means negative FCF of ¥140.0 bn in 2009■ LN and SMB will contribute CF (more than ¥10.0 bn) to Kirin Holdings, increase

cash EPS (10% plus) and ultimately improve shareholder returns

Investment for growth:

¥910.0 bn(LN, SMB, KHK, etc)07-09 capex: ¥310.0 bn

Consolidated payout ratio

Over 30%Further growth

Liquidated assets¥230.0 bn

Liquidated assets¥230.0 bn

Financing¥700.0 bnFinancing¥700.0 bn Offset financing needs by

further asset liquidation of¥100.0 bn plus

Create profitCreate profit

Share buybacksConsidered in context of financial position and investment needed for growth

18

Sound financial fundamentalsSound financial fundamentals

AssetsAssets

LiabilitiesLiabilities

CapitalCapital■ Sell non-core assets・Investment securities・Unused real estate・Business portfolio

■ Secure liquidity on hand (issue CP, etc. )

■ Watch credit ratings: ensure financial health

■ Continue mainly debt financing for growth investment

■ Target 0.5 D/E ratio long-term

■ Increase dividends indexed to profit; consider share buybacks

■ Reduce accounts receivable and inventory

■ Focusing on asset efficiency and B/S management■ Using strong cash flows (e.g. 100% ownership of LN) and asset sales to repay debt

Improve ROE to 10% by 2015Improve ROE to 10% by 2015

■ D/E ratio will rise temporarily at year end but then improve rapidly

19

Kirin: on track and hungry for further successKirin: on track and hungry for further success

• Kirin owns the right companies in the right places• Promising start to the year in an adverse environment• Strong commitment to higher profitability• Becoming a truly international group in management approach and

business portfolio• On the move and actively addressing key issues

Further reference: http://www.kirinholdings.co.jp/english/ir(Investor relations website for Kirin Holdings Company, Limited)

2010 MTP2010 MTP(2010(2010--2012)2012)

““Three years to improve performance and profitsThree years to improve performance and profits””

Three stages to realizing the long-term goals of KV2015

2007 MTP(2007-2009)

The 2010 mediumThe 2010 medium--term business plan is the second stage in realizing KV2015, and term business plan is the second stage in realizing KV2015, and is centered on promoting a shift from is centered on promoting a shift from sales expansion to profit improvementsales expansion to profit improvement

2013 MTP(2013-2015)

““Three years to kickThree years to kick--start growthstart growth””

20

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.

1

Supplementary MaterialsSupplementary Materials

2

Selected Kirin group brandsSelected Kirin group brands

Alcohol Soft drinks and foods

Pharmaceutical Other

2

33

Three patterns for growth in 2009 Three patterns for growth in 2009 Toward further growth through organic linksToward further growth through organic links

Promote comprehensive beverages group strategy by creating organic links in value chains of alcohol beverage business and soft drink business

Quantify and manage objectives for synergies, and optimize the Group’s operational bases

Continue investment in soft drink and alcohol beverage businesses mainly in Asia and Oceania that show strong synergy potential in terms of product and geographical region, and optimize business portfolio.

■ Enter a stage of further growth through inter-pattern initiatives

44

Maximizing group synergiesMaximizing group synergies■ Specified and announced 14 priority issues for creating synergies in revised medium-term

business plan in August 2008

Sales channels expansionProduction technology, cost reduction

Product development

Sell, marketDistributeProducePurchaseDevelop

Priority issues for creating synergies

Material development

Operating companies

Holding company

KH: Kirin Holdings

KB: Kirin Brewery

ME: Mercian

KBC: Kirin Beverage Corp.

KCI: Kirin (China) Investment

KFT: Kirin Food-Tech

NFL: National Foods Limited

LN: Lion Nathan

KHK: Kyowa Hakko Kirin

KLC: Kirin Logistics Corp.

KMD: Kirin Merchandising

Strengthen sales channels in domestic alcohol beverage (KB, ME, domestic alcohol Group companies)

Promote cooperation in domestic comprehensive soft drinks production & distribution (KB, KBC, KLC, ME)

Restructure China operations (KCI, KB, KBC etc.)

Promote comprehensive Asia beverage operations (KH, local business)

Promote health foods and functional foods operations (KH,KBC, KB, ME, KFT, Kyowa Hakko Bio etc.)

Promote comprehensive Japan, Australia soft drinks operations (domestic: KBC, Aus: NFL)

Promote comprehensive Australia beverage operations (KH, LN, NFL)

Integrate pharmaceuticals operations (KHK)

R&D personnel structure

Strengthen Group sales capabilities, channel functions

Review production, distribution locations

Group internal/external purchasing

Pursue human resources measures

Integrate back office functions

55

Assignment ~4 key issues~Assignment ~4 key issues~

1. Create Group synergiesSet quantitative and qualitative targets, including PMI for M&A, and initiate PDCA cycle. 2. Create renewed growth in the domestic alcohol beverage businessImprove popularity among customers and enhance profitability3. Advance domestic comprehensive beverages group strategy・Reinforce earnings base at KBC and strengthen competitiveness along new axes・Create value by forming alliances in the value chains of KBC and KB ・Develop health food and functional food business centered on beverages4. Advance international comprehensive beverages group strategyFormulate comprehensive beverages group strategy in Asia and Oceania⇒Execute strategy mainly at KC, KBC, NFL, and LN. Increase corporate value at NFL in particular.

Key issues

KBC: Kirin Beverage Corp., KB: Kirin Brewery, KCI: Kirin (China) Investment, NFL: National Foods Limited, LN: Lion Nathan

■ Basic management strategies for 2009Based on three core growth strategies, strengthen Kirin’s business foundations and realize a quantum leapin growth1.Create renewed growth in the domestic alcohol beverage business 2.Pursue a domestic comprehensive beverages group strategy 3.Internationalize Kirin’s business under an international comprehensive beverages group strategy 4.Develop the health food and functional food business 5.Accelerate growth inpharmaceuticals business 6.Further develop existing businesses 7.Improve cost competitiveness・ Realize Group synergies in the context of global competition・ Adopt an optimum group management structure and enhance operational capabilities with the aim of

maximizing corporate value・ Pursue Kirin Group CSR

6

Internal management (balanced scorecard, shortened PDCA cycle)Internal management (balanced scorecard, shortened PDCA cycle)

D[Shorten PDCA cycle and revise plan]

D

A

PLAN

ACT

DO

CHECK

PLAN

DO

CHECK

ACT

PLAN

DO

CHECK

ACT

PLAN

DO

CHECK

ACT

PLAN

DO

CHECK

Time,level

P

C

P

Short PDCA cycle

Long PDCA cycle

[Group management system]~BSC (Balanced scorecard)~

■ BSC: Link strategies, bolster cooperation, stress commitment to targets, and focus on process management ■ PDCA: Shorten cycle, prioritize plan execution in deteriorating environment, and quickly revise challenges

Quickly and frequently feed results back, and update and improve strategy (MAP)

Enhance head office disclosure

Communicate at local level

Provide fun

Initiatives to make reality

Reflect customer opinion

Nurture next generationand protect ecosystem

Financial

Customers

Processes

Learn,･develop

[Learn, develop 3]

[Process 12]

[Process 3]

[Process 11]

[Process 13]

[Process 5]

[Process 6]

[Learn, develop 1]

[Process 7]

[Process 4]

[Process 1]

[Process 2]

[Process 14]

[Process 15]

[Learn, develop 4]

[Process 10]

Communication

[Learn, develop 2]

[Process 9]

6

7

Domestic alcohol business: Domestic alcohol business: Kirin breweryKirin brewery’’s s initiativesinitiatives

Continue industry leadership• Create viable industry structure for long term that reflects new environment• Restore profitability through price increases• Control marketing costs for rational competition

Become No. 1 in beer categoryAlready leading the growth categories of happu-shu and new genre.

Approx. 16%

Approx. 17%

Approx. 20%

Marketing costs/Sales excl. liquor tax

Approx. 11%2008

Approx. 10%

Approx. 6%

Operating Profit /Sales excl. liquor tax

2001

2009e

29%

22%

49%

Percentage of combined category (As of May, 2009)

Clear No. 1

Clear No. 1

No. 2

Kirin’s current position

➹New genre

➸

➷

Market direction

Beer

Happo-shu

Marketing costs have been cut drastically since peaking in 2001

8

Liquor tax and VAT on beer are high in Japan compared to internaLiquor tax and VAT on beer are high in Japan compared to international tional levelslevels

Note: For France, Germany, US and UK, taxes are as of June 2008 Exchange rates for the above: 168.07 yen/ €, 106.42 yen/ US$, 212.35 yen/ ₤ as of June 2008 VAT for beer (Japan) is based on retail prices at major convenience stores, indicative only Source: Beer Manufacturers Association

Liquor tax: International liquor tax comparisonsLiquor tax: International liquor tax comparisons

139.0

16.0

12.0

35.0

9.0

30.0

13.0

18.0

98.0

59.0

0

20

40

60

80

100

120

140

160

Japan (Beer) France Germany US (NY) UK

Liquor tax VAT

155.0

47.0 39.031.0

157.0 (¥ per 633ml)

345.0Retail price(¥ per 633ml) :

214.0 186.0 233.0 395.0

9

Return to core brands→1.Strengthening flagship

products

・ Strengthening flagship products such as Kirin Ichiban Shibori, Tanrei, Nodogoshi Nama , etc.

Changes to alcohol market→3. Expanding overall demand・ Strengthening the RTD category・ Strengthening business interface

areas・ Developing new and innovative

category brands

Increasing health awareness→2. Strengthening approach to

health awareness・ Developing new products in light of a

growing health awareness・ Further strengthening existing

products such as ZERO

Developing evidence-based marketing*A marketing technique that promotes products by providing customers with easy-to-understand evidence and product value leading to sense of comfort

Improving Kirin brand value

9

Domestic alcohol business: Domestic alcohol business: Kirin Kirin beer product strategybeer product strategy

10

西寧

成都

昆明

南寧

海口

貴陽

長沙 南昌福州

台北

武漢杭州

合肥南京鄭州

蘭州

呉忠

西安

太原

青島

沈陽

長春

ハルビン

包頭

張家口

青海省

四川省

雲南省

広西省

広東省

貴州省湖南省

江西省

福建省

台湾

湖北省 安徽省

上海

江蘇省河南省

甘粛省

寧夏省

陝西省

山東省

遼寧省

吉林省

黒龍江省

内モンゴル

天津

北京

河北省山西省

浙江省重慶

広州広州

••

••

Kirin Brewery (Zhuhai)

•

Dalian Daxue BreweryProduction Capacity: 280.000KL

Hangzhou Qiandaohu BreweryProduction Capacity: 160.000KL

Kirin (China) Investment

Building business platform in three areas in China

●Northeast China ：Dalian Daxue Brewery●Yangtze River Delta： Hangzhou Qiandaohu Brewery

Kirin (China) Investment ●Pearl River Delta：Kirin Brewery (Zhuhai)

Overseas alcohol business:Overseas alcohol business: Focus areas in ChinaFocus areas in China

Production Capacity: 200.000KL

*Production Capacity as of end of December 2008

11

SD categorySD category

Market shareMarket share

Sales Sales channelschannels

ContainerContainer

Black tea6%

Oters7%

Vegetablejuice1%

Sports/Functionaldrink

8%

Fruit juice12%

MW10%

Soda12%

Sugar-freet22%

Coffee22%

Other20%

Cans30%

PET bottles50%

Other12%

CVS20%

GMS andmass

retallers33%

VendingMachines

35%

Suntory16%

Other

20%

Dydo3% Otsuka

4%Asahi7%

Itoen8%

Kirin10%

Coca-Cola (JP)25%

Kagome2%

Calpis2%

Pokka1%

Sapporo1%

UCC1%

Source for market share chart:Foods Marketing Research Center, covering packaged foods (excluding syrups) and chilled foods (excluding white/ yakult)Others: Kirin Beverage estimate

Domestic soft drinks business: Market overview (2008)Domestic soft drinks business: Market overview (2008)

12

Domestic soft drinks business: Breakdown of market shareDomestic soft drinks business: Breakdown of market share

18123.5Sapporo Beverage12

38144.1Kagome8

1006

222

4589

1118

29

Market share （

％）

10030.8Pokka Corporation10

100104.8Other1299

93

92

9693

103104

100101

100

YoYchange

(％）

27.5JT11

69.8Dydo Drinco7

41.0Calpis9

654

32

1

1,740.0Total

82.0Otsuka Pharma.133.6Asahi Soft Drinks160.0Itoen

192.9Kirin Beverage315.5Suntory

511.5Coca-Cola Group

Sales volume (million case)

Company

Sales volumes of major manufacturers: 2008

Suntory18%

Other6%

Dydo4%

Otsuka5%

Asahi8%

Itoen9%

Kirin11%

Coca-Cola(JP)29%Kagome

3%

Calpis2%

Pokka2%

JT2%

Sapporo1%

Source: Beverage Business magazine, published by Inryo Soken

The above does not include the data on syrup/ powder products served in paper cups by vending machines, but it does include chilled beverages (excluding white milk, coffee flavored milk and Yakult), and is based on actual shipment volumes.

13

2008 Sales volumes by category

Source: Japan Soft Drinks Association

The soft drinks market recorded steady growth from the mid-90’s largely due to the penetration of PET bottle green tea and growing consumption of mineral water. However, sales growth in tea beverages and mineral water has slowed due to a recent weakening in consumption. Meanwhile, categories with high added value that address consumer preferences are showing growth.

0

50000

100000

150000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Domestic soft drinks: SalesNo. of cases

No. of cases

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007Coffee Tea Green tea Carbonated Fruit-basedVegetable juice Fruit and vegetable Sports drinks Mineral water

Domestic soft drinks: Sales by product

13

Domestic soft drinks business: Market Domestic soft drinks business: Market trendstrends

Source for market share chart:Foods Marketing Research Center, covering packaged foods (excluding syrups) and chilled foods (excluding white/ yakult)

Black tea6%

Oters7%

Vegetablejuice1%

Sports/Functionaldrink

8%

Fruit juice12%

MW10%

Soda12%

Sugar-freetea22%

Coffee22%

14

Domestic soft drinks business: Domestic soft drinks business: Kirin BeverageKirin Beverage’’s brands portfolios brands portfolio

Expand core brands＆ Develop new category ＝ Strengthening of brands portfolio X

Move further toward becoming a comprehensive beverages business

Kirin Alcali-Ion no Mizu

Volvic

2007 Volume by category

Kirin Namacha Kirin Fire

KIRIN NUDAKIRIN LEMON

Kirin LOVESSPORTS

ToropicanaKirin Gogono Kocha

Koiwai

Other8%Soda

5%Fruit&Vegitablejuice13%

Sugarless tea17% Coffee

19%

Black tea19%

Mineral water19%

Data as of end 2008

Junsui Series

15

Generating Kirin Group synergies:Promoting a consolidated beverages group strategy

Generating Kirin Group synergies:Generating Kirin Group synergies:Promoting a consolidated beverages group strategyPromoting a consolidated beverages group strategy

Revenue structure

■ Revising the revenue structure and profit management system■ Enhancing research marketing related to generating customer value■ Strengthening customer relations through Group cooperation and

formulating a framework for R&D technologies and SEEDS creation■ Pursuing M&As and alliances aiming for dramatic growth■ Formulating a business model for the overseas beverages business

◆◆2009 Key points2009 Key points◆◆

■ Developing high value added products

■ Strengthening market research functionalities■ Improving R&D structure■ Bolstering overseas business operating base

■ Using M&A for dramatic growth

■ Developing high value added products

■ Strengthening market research functionalities■ Improving R&D structure■ Bolstering overseas business operating base

■ Using M&A for dramatic growth

■ Using of sales costs effectively

■ Improving sales productivity

■ Formulating business models specificto each channel

■ Promoting SCM efficiencies

■ Using of sales costs effectively

■ Improving sales productivity

■ Formulating business models specificto each channel

■ Promoting SCM efficiencies

Creating new competitive advantages

15

Domestic soft drinks business: Domestic soft drinks business: Kirin BeverageKirin Beverage’’s s strategy in 2009strategy in 2009

16

Why break into AustraliaWhy break into Australia

Japan ;21%

Ch ina ;14%

Korea,Republ ic of ;

8%ASEAN ;

10%

India ;6%

United Statesof America ;

5%

New Zealand ;4%

United Kingdom;

4%

Other EU6%

Other22%

Total 22422$ Millions

2008

GDP per Capita

・Australia’s GDP has shown sudden drop in 2008 as impacted by foreign currency. Stable growth in real GDP・60% of export has made towards Asia and already have a good relationship.

Source: Mitsubishi UFJ Securities based on IMF World Economic Outlook 04/09 Source: Mitsubishi UFJ SecuritiesThe above is calculated by accumulating monthly data provided byAustralian Bureau of Statistics

Australia's Merchandise Exports, Country and Country Groups, FOB Value

0

10000

20000

30000

40000

50000

60000

80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14

Australia

Germany

Hong Kong SAR

Japan

Singapore

United Kingdom

United States

$

IMF staff estimates

Australia

17

Market Trend for Dairy Products in AustraliaMarket Trend for Dairy Products in Australia

2,571 2,701 2,850 2,873 2,958 3,071 3,148 3,232 3,347 3,4683,676

3,8924,122

4,356

2,000

2,500

3,000

3,500

4,000

4,500

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

(A$ in mm)

3.4% CAGR

5.4% CAGR

Growth in the Australia Milk Market by Value

1,145 1,140 1,154 1,162 1,197 1,229 1,267 1,291 1,3161,365

1,4191,475

1,5371,599

1,000

1,100

1,200

1,300

1,400

1,500

1,600

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

(A$ in mm)

1.7% CAGR

4.0% CAGR

Growth in the Australia Juice Market by Value

・All Dairy Products Market growing steadily and more rapid growth expected especially in

Milk and Juice Market from 2006.

378 424 477 526 566 628 684 729 783 850 935 1,024 1,118 1,213

0

250

500

750

1,000

1,250

1,500

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

(A$ in mm)

9.5% CAGR

9.1% CAGR

Growth in the Australia Yogurt Market by Value

898 955 1,006 1,097 1,180 1,244 1,297 1,335 1,378 1,434 1,515 1,596 1,681 1,764

0

500

1,000

1,500

2,000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

(A$ in mm)

5.5% CAGR5.1% CAGR

Growth in the Australia Cheese Market by Value

18

National Foods and Dairy FarmersNational Foods and Dairy FarmersNational Foods (NFL) acquired Dairy Farmers (DF) in November 2008Key opportunities include:• Expanding Kirin’s business domain throughout Asia and Oceania• Developing the health foods/functional foods market (dairy foods and biotechnology)• Using strong market position in Australia as springboard to Asia, where demand for milk and milk-related products is growing strongly. Northern

TerritoryQueensland

New South Wales

Victoria

South Australia

Western Australia

Tasmania

Approx. A$220m EBIT growthNFL organic growth approx. A$100mDF organic growth approx. A$50mSynergies approx. A$70m

Approx. A$220m EBIT growthNFL organic growth approx. A$100mDF organic growth approx. A$50mSynergies approx. A$70m

$300～350m

$104m

NFL:110

DF: minus 6

2010 2011$0

$50

$100

$150

$200

$250

$300

2009 forecast

2012 guideline

Integration benefits from DF expected to be reflected in NFL EBIT from 2010

NFL’s (NFL+DF) forecast for 2009:Raw milk prices increases continuing to ease in 2009. However, National Foods forecast raw milk cost rise from existing contracts. Retail prices being increased steadily to counteract costs.

In spite of sale of some businesses and payment of restructuring costs expected, local currency based EBIT/ EBITDA are forecasted to increase In 2009. NFL+DF EBIT growth image

18

19

Integration increased in Major CategoriesIntegration increased in Major Categories

Alcohol Beverages

Soft Drinks

Foods

Dairy Foods

Retailer

Burns Philip ArnottsGoodman Fielder

20

• Established Kyowa Hakko Kirin in October 2008 by merge of Kyowa Hakko and Kirin Pharma. • Integration of the Pharmaceuticals businesses

Key areas (Cancer, Kidney, Immunology) Integrate cutting-edge anti-body technologies

Pharmaceuticals: Pharmaceuticals: Business integration of Kyowa Hakko and Kirin Business integration of Kyowa Hakko and Kirin PharmaPharma

Further reference: (Alliance with Kyowa Hakko)http://www.kirinholdings.co.jp/english/news/2007/1022_01.html

Kyowa Hakko Kirin Pharma

R&D

Production

Sales

POTELLIGENT R

COMPLEGENT TM

Clinical use antibody manufacturing facilities

MR 950 staff

KM Mouse

HSKi technology

MR 450 staff

Approximately ¥20 billionAllelock

Approximately ¥20 billionConiel

Approximately ¥15 billionGRAN

Approximately ¥50 billionNESP/ESPO

Kyowa Hakko Kirin Pharma

R&D

Production

Sales

POTELLIGENT R

COMPLEGENT TM

Clinical use antibody manufacturing facilities

MR 950 staff

KM Mouse

HSKi technology

MR 450 staff

Approximately ¥20 billionAllelock

Approximately ¥20 billionConiel

Approximately ¥15 billionGRAN

Approximately ¥50 billionNESP/ESPO

EXPOC technology

R

TM

● MR 450 staff

¥25.8 billion¥22.4 billion

Number of MR staffs: as of Dec. 31, 2008Sales of each product: FY2009 forecast

● Manufacturing technology for bio-pharmaceutical products

20

¥44.4 billion¥16.6 billion

21

Basic strategy in pharmaceuticals Synergy targets (billions of yen)

Sales synergies (operating income base) Cost synergies

Research and Development Generate innovative candidate products for development (Each year,

two antibody compounds and two low-molecular-weight compounds to enter clinical development)

Establish an optimal international development framework (integrate USdevelopment operations)

Pursue the creation of unique technology (Polyclonal antibodies, etc.)

Restructure US-based R&D facilities

Production Construct antibody production facilities to create an efficient production

framework (to be completed in February 2010)

Domestic sales Focus resource allocation in the Renal area; win the leading market

share in ESA (Erythropoiesis Stimulating Agents) market

Overseas business Establish the foundations for long-term profits in Asia Consider developing an in-house sales capability in Europe and the U.S. Aim to maximize the value of the antibodies business

1.5

6.0

11.5

13.0

0.21.5

6.58.0

1.3

4.5

5.0

5.0

0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2008 target

2009 target

2010 target

2011 Published

target

Pharmaceuticals: basic strategy & synergy targetsPharmaceuticals: basic strategy & synergy targets(Medium-term business plan of Kyowa Hakko Kirin; Released on April 28, 2008)

21

2222

Promoting CSR activitiesPromoting CSR activities

Kirin Brewery has been endorsed as an ‘eco-first’ company

Planting trees near Kirin’s water source

KWN (Kirin Women’s Network) aims to promote women’s activities

■ Kirin Group believes in the importance of coexisting harmoniously with nature and society, and keeps CSR firmly in mind when conducting all corporate activities.

■ With respect to “CSR through Business,” we work hard to enhance compliance in our activities and to strengthen quality assurance systems to ensure the safety and security of our products. In 2009, we will start a long-term Group-wide program aimed at becoming “Low Carbon Cooperate Group”.

■ With respect to “CSR as a Corporate Citizen,” we promote social contribution activities, including efforts to protect the environment and supporting sports, that transcend the domain of business activities.

23

While Drunk driving is recognized as big social problem, it is responsible as corporations to prevent drunk driving.

Development AlcoholDevelopment Alcohol--free product :Backgroundfree product :Background

Conscious on drunk-driving

Q.「 Drunk driving can’t never be accept .」

Agree

９９％

平成15年5月 交通安全に関する世論調査（内閣府） 0 20 40 60 80 100

すべての飲食店にビールテイスト飲料が置いてあると良いと思う

アルコール分が全くない、ビールテイスト飲料が商品化されると

良い

飲んでも運転できるビールテイスト飲料が商品化されると

良い

ビールメーカーも、飲酒問題に対して対策を取るべきだ

非常にそう思う そう思う

Expectations to manufactures

October 2008 ＷＥＢ investigation （n=800)

Manufactures also need To take any action to prevent

drunk driving

Wishing new beer-taste beverage which is available

before driving

Wishing new beer-taste beverage without any alcohol

Wishing all the restauranthave beer-taste beverage

Strongly agree agree

24

New formula & process of manufacture for perfectly non alcohol ＜Applying 3 patents＞

Experiment of Driving simulator

Invention of Alc. 0.00%

Referring the paper issued from Scientific Police laboratory of National Police Agency,KIRIN confirmed driving ability with KIRIN FREE drinking by experiment using driving simulator.

The worldThe world’’s first producs first product, t, ’’Alcohol 0.00%Alcohol 0.00%’’ BeerBeer--taste beveragetaste beverage,,

KIRIN FREEKIRIN FREE

Product informationProduct information

Perfectly non alcohol beer-taste malt beverage which is available anytime, even before driving!

Revised sales target upward by more than double !

Launch date： April 8th 【nation-wide】

25

Kirin Group CSRKirin Group CSR and R&D activitiesand R&D activities

Ecojiro – symbol of Kirin’s environmental activitiesCheck the Information for Our CSR activities:

http://www.kirinholdings.co.jp/english/csr/pdf/report2008/csr_report2008e.pdf

And Our R&D activities:

http://www.kirinholdings.co.jp/english/rd/technology/pdf/all.pdf

* 2009 CSR report to be updated on Website in August 2009.

For more details on IR issues, please refer to http://www.kirinholdings.co.jp/english/ir/index.html

26

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