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Management Interview with an Outside Director Financial and Non-financial Highlights Past and Present KIRIN REPORT 2018 Message from Top Management Discussion with Management, Part1 Discussion with Management, Part2 Interview with an Outside Director CASE1 Kirin Ichiban Shibori Relaunch and Craft Beer Market Development CASE2 Pharmaceuticals for Worldwide Markets CASE3 Lactococcus lactis strain Plasma Stars in New Products CASE4 Advanced High-Efficiency Facilities at Myanmar Brewery History of the Kirin Group The Kirin Group Today Overview by segment and business for fiscal 2017 Management's discussion & analysis Financial & Non-Financial Highlights KIRIN REPORT 2016 To Our Stakeholders Long-Term Management Vision and Medium-Term Business Plan CFO’s Message Overview of the Kirin Group’s Business Kirin’s Foundation for Value Creation Interview with an Outside Director KIRIN REPORT 2015 KEY POINTS ABOUT KIRIN Long-Term Management Vision and Medium-Term Business Plan KIRIN’S GROWTH 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Research Projects 2011 Fellow's Research Projects 2010 Fellow's Research Projects 2009 Fellow's Research Projects Close Home Domains Health Science domain Koiwai Dairy Products Co., Ltd. Integrated Report Contents Integrated Report TopPage About Kirin Group Long-term Management Vision and Medium-Term Business Plan CSV Purpose&Commitments Message from Top Management Message from the Chief Financial Officer Message from Senior Executive Officer of CSV Strategy Scenario Analysis (TCFD) Holistic Approach to environmental issues Message from Senior Executive Officer of Health Science Strategy Interview with Independent Non-executive Directors INPUT INPUT Diversity and inclusion, culture for innovation Core-technology that assures value creation Consumer centric marketing expertise ICT accelerating value creation BUSINESS BUSINESS Food & Beverages domain Health Science domain Pharmaceuticals domain OUTPUT OUTPUT Financial and Non-financial Highlights Management Analysis Of Financial Position, Operating Results, And Cash Flows OUTCOME OUTCOME Health and well-being Community Engagement The Environment A Responsible Alcohol Producer Corporate Governance Corporate Governance Overview Management Structure Management, Leadership & Advisory Remuneration System for Executive Officers Compliance Kirin Group Tax Policy Risk Management Koiwai Dairy Products Co., Ltd. Since its establishment in 1891 as Koiwai Farm, Koiwai Dairy Products Co., Ltd. has painstakingly developed the barren wilderness at the southern foot of Mt. Iwate into a lush green environment and pioneered livestock farming and dairy products in Japan. Over the last 120 years, we have cherished the indomitable challenger spirit of our predecessors and their sincere efforts cultivated in harmony with the environment. Through meticulous manufacturing, we deliver safe, secure, and valuable products. We strive to pursue “Koiwai’s unique value” and nurture relationships with our consumers while proposing creative, attractive, and valuable products that contribute to a rich dietary life by meeting more consumers’ expectations for delicious and delightful products. June 5, 2023 To address our inability to expand our customer base due to diminished brand value and limited opportunities for consumption, it is essential to continue effectively communicating product value and enhancing brand value. We will therefore focus on improving profitability and expanding consumer touchpoints. 2022 Year in Review Despite a slight decline in the markets for fermented milk (yogurt) and dairy products (butter, margarine, and cheese), our efforts to strengthen the Koiwai brand paid off, with our mainstay Koiwai Namanyu 100% yogurt series and two Koiwai margarine products growing at a steady pace. Sales of the Koiwai iMUSE yogurt series increased significantly, up approximately 40% from the previous year. We were able to increase sales despite rising prices of raw and packaging materials, logistics, and energy costs by swiftly implementing price revisions. 2023 Initiatives With our reliable manufacturing, which harnesses the blessings of milk cultivated since the establishment of Koiwai Farm, we will proactively work on enhancing brand value and nurturing personnel who support our goal of delivering unique deliciousness and creating healthy and enjoyable moments for our consumers. We will strive to grow fermented milk (yogurt) and improve profitability of dairy products (butter, margarine, and cheese). For fermented milk, we aim to increase the number of new consumers and core users by promoting the taste, function, and quality of our products and creating more opportunities for consumers to try them. We will be offering recipes for our mainstay Koiwai Namanyu 100% yogurt with added fruit, as well as relaunching our Koiwai Fat-free yogurt made only with fresh milk, now with a less acidic and more delicious taste. Additionally, for our Koiwai iMUSE yogurt series, which contains 100 billion Kirin Holding’s unique Lactococcus lactis strain Plasma (LC-Plasma), we will be launching the Koiwai iMUSE yogurt Sugar-Free line with three options: low sweetness, low fat, and sugar-free. With the growth of the LC-Plasma business, sales of ingredients as a BtoB enterprise have also been robust. To further enhance our LC-Plasma production capabilities, we will be operating a new LC-Plasma line at our Tokyo Plant. In dairy products, we will be relaunching margarine series to strengthen sales. To foster employee development and growth, we will visualize the necessary skills for each department and implement systematic human resource training programs to create workplaces where employees can work with energy and enthusiasm. Value proposition of products including Koiwai Namanyu 100% yogurt There is no doubt that price affects consumer purchases, and raising prices generally reduces demand. As a result of the recent rise in consumer prices, the importance of brand value has increased. In such a difficult market environment, we assumed that some consumers who have been purchasing Koiwai Namanyu 100% yogurt might either stop buying or buy less frequently due to the price increase. Therefore, we did not rely solely on price policies but implemented measures to encourage as many consumers as possible to experience the deliciousness of the product and recognize its value, even if the price is a little higher. First, we created an opportunity for consumers to taste the deliciousness of our product. We conducted sampling activities at feasible supermarkets where consumers could experience the low acidity, milkiness, and smoothness of our yogurt and its delicious taste. Since it is difficult to convey the taste in words, we believe it is important to have people try the yogurt. Second, we strengthened recipe proposals in stores and on our media. In response to the growing momentum to use yogurt as an ingredient following the spread of COVID-19, we improved our website to make it easier for consumers to post and view comments on recipes and products. We also enhanced our proposal appeal through in-store advertising and Instagram. We hope that consumers who are temporarily deterred by the price increase or who have not yet tasted our product will be motivated to purchase it by experiencing its great taste. We aim to contribute to the mental and physical health of our consumers and increase our sales through the value of the taste and functionality of 100% fresh milk. Integrated Report Share Please do not forward or share information about alcoholic beverages with anyone under the legal drinking age. 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