Interim report
Page 1
Joy brings us together KIRIN KIRIN HOLDINGS COMPANY , LIMITED SUMMARY OF CONSOLIDATED FINANCIAL RESULTS FOR THE SIX MONTHS ENDED JUNE 30 , 2026 ( UNDER IFRS ) ( UNAUDITED ) ( English Translation ) Fiscal year ending December 31 , 2026 KIRIN HOLDINGS COMPANY , LIMITED August 7 , 2026 NAKANO CENTRAL PARK SOUTH , 10-2 , Nakano 4 - chome , Nakano - ku , Tokyo , Japan ( URL https://www.kirinholdings.com/en/ ) Code No .: Shares Listed : Representative : 2503 Tokyo Mr. Takeshi Minakata , President and COO For further information , please contact : Mr. Hidefumi Matsuo , Executive Officer , General Manager of Finance Department Telephone : + 81-3-6837-7015 from overseas Submission date of semi - annual securities report scheduled : Commencement date of dividend distribution scheduled : Preparation of supplementary documents to the financial results : Holding of financial results presentation ( for institutional investors and analysts ) : August 7 , 2026 September 4 , 2026 Yes Yes 1. Consolidated business results and financial position for the first six months of the current fiscal year ( January 1 , 2026 - June 30 , 2026 ) ( 1 ) Results of operations ( cumulative ) : [ Unit : Japanese yen ( ¥ ) ] ( Amounts are rounded to the nearest ¥ 1 million ) ( Percentage change compares current results with those of the same period of the previous year ) Revenue Percentage Normalized change operating profit ( \ millions ) ( % ) ( \ millions ) Percentage change ( % ) Profit before tax ( \ millions ) Percentage change ( % ) Six months ended June 30 , 2026 1,217,876 7.2 128,303 36.1 150,855 80.1 June 30 , 2025 1,136,309 3.7 94,245 1.3 83,761 ( 22.8 ) Profit ( \ millions ) Percentage change ( % ) Profit attributable to owners of the Company ( \ millions ) Percentage change ( % ) Total comprehensive income ( \ millions ) Percentage change ( % ) Six months ended June 30 , 2026 June 30 , 2025 116,105 60,467 92.0 ( 18.5 ) 101,720 52,835 92.5 157,581 ( 7.7 ) 2,282 ( 99.0 ) Basic earnings per share ( ¥ ) Diluted earnings per share ( ¥ ) Six months ended June 30 , 2026 126.33 June 30 , 2025 65.23 Reference : Operating profit 65.22 Six months ended June 30 , 2026 Six months ended June 30 , 2025 ¥ 129,042 million ¥ 68,723 million 87.8 % ( 15.0 % ) * Normalized operating profit is a profit indicator for measuring recurring performance which is calculated by deducting cost of sales and selling , general and administrative expenses from revenue .
Page 2
(2)Financialposition: Totalassets (¥millions) Totalequity (¥millions) Equity attributableto ownersofthe Company (¥millions) Equityratio attributableto ownersofthe Company (%) Asof June30,2026 3,401,276 1,680,673 1,361,975 40.0 December31,2025 3,494,043 1,595,148 1,286,991 36.8 22222..... DDDDDiiiiivvvvviiiiidddddeeeeennnnndddddsssss Annualdividends Firstquarter (¥) Secondquarter (¥) Thirdquarter (¥) Year-end (¥) Total (¥) FiscalyearendedDecember31,2025 － 37.00 － 37.00 74.00 FiscalyearendingDecember31,2026 － 38.00 FiscalyearendingDecember31,2026 (Forecast) － 38.00 76.00 Note: Revisionoftheforecastfromrecentlyannouncedfigures:None 33333..... FFFFFooooorrrrreeeeecccccaaaaasssssttttt cccccooooonnnnnsssssooooollllliiiiidddddaaaaattttteeeeeddddd bbbbbuuuuusssssiiiiinnnnneeeeessssssssss rrrrreeeeesssssuuuuullllltttttsssss fffffooooorrrrr ttttthhhhheeeee cccccuuuuurrrrrrrrrreeeeennnnnttttt fffffiiiiissssscccccaaaaalllll yyyyyeeeeeaaaaarrrrr (((((JJJJJaaaaannnnnuuuuuaaaaarrrrryyyyy 11111,,,,, 22222000002222266666 ----- DDDDDeeeeeccccceeeeemmmmmbbbbbeeeeerrrrr 3333311111,,,,, 22222000002222266666))))) (Percentagechangecomparesforecastresultswithactualresultsofthepreviousyear) Revenue (¥millions) Percentage change (%) Normalized operatingprofit (¥millions) Percentage change (%) Profit beforetax (¥millions) Percentage change (%) Fiscalyearending December31,2026 2,480,000 1.9 253,000 0.5 259,000 8.9 Profit (¥millions) Percentage change (%) Profitattributableto ownersofthe Company (¥millions) Percentage change (%) Basicearnings pershare (¥) Fiscalyearending December31,2026 194,000 8.9 160,000 8.4 200.00 Note: Revisionoftheforecastfromrecentlyannouncedfigures:Yes Reference: Operatingprofit FiscalyearendingDecember31,2026 ¥230,000million 9.7%
Page 3
***** NNNNNooooottttteeeeesssss (1)Significantchangesinthescopeofconsolidationduringtheperiod: Yes Newlyincluded:- Excluded:1company FourRoses Distillery,LLC (2)Changesinaccountingpoliciesandchangesinaccountingestimates i. ChangesinaccountingpoliciesrequiredbyIFRS: None ii. Changesinaccountingpoliciesduetootherreasons: None iii. Changesinaccountingestimates: None (3)Numberofsharesoutstanding(ordinaryshares) i. Numberofsharesoutstandingattheendoftheperiod(includingtreasuryshares) AsofJune30,2026 816,000,000shares AsofDecember31,2025 914,000,000shares ii. Numberoftreasurysharesattheendoftheperiod AsofJune30,2026 19,108,880shares AsofDecember31,2025 103,851,881shares iii. Averagenumberofsharesduringtheperiod(cumulativefromthebeginningofthefiscalyear) ForthesixmonthsendedJune30,2026 805,218,516shares ForthesixmonthsendedJune30,2025 810,015,046shares Note: NumberoftreasurysharesattheendoftheperiodincludessharesheldintheBIP(BoardIncentivePlan)Trust(1,446,399 sharesatJune30,2026and1,599,007sharesatDecember31,2025). Thesesharesareexcludedincalculationoftheaveragenumberofsharesduringtheperiod. *Semi-annualfinancialresultsreportsareexemptfromreviewconductedbycertifiedpublicaccountantsoranauditfirm. *Informationaboutproperusageofforecastbusinessresults,andotherspecialinstructions (1) The statements concerning future performance that are presented in this document are based on judgments using information available to Kirin Holdings Company, Limited (hereinafter "the Company") and the Kirin Group (hereinafter "the Group") as of the release date of this material. Certain risks and uncertainties could cause the results of the Company and the Group to differ materially from any projections presented herein. These risks and uncertainties include, but are not limited to, the economic circumstancessurroundingtheCompany'sbusinesses,markettrends,andexchangerates. (2) TheCompanywillposttheSupplementaryDocumentstotheFinancialResults(thepresentationmaterialsforthefinancialresults presentation)today,Friday,August7,andwillpostthemainQ&Aatthemeetingfromthefinancialresultspresentationtobeheld onMonday,August10,assoonaspossibleontheCompany'swebsite. (URLoftheCompany'swebsite) https://www.kirinholdings.com/en/investors/
Page 4
1 AAAAATTTTTTTTTTAAAAACCCCCHHHHHEEEEEDDDDD MMMMMAAAAATTTTTEEEEERRRRRIIIIIAAAAALLLLLSSSSS IIIIINNNNNDDDDDEEEEEXXXXX 1.OVERVIEWOFBUSINESSPERFORMANCE................................................................................................................................... 2 2.CONDENSEDSEMI-ANNUALCONSOLIDATEDFINANCIALSTATEMENTS.................................................................................. 3 (1)CONDENSEDSEMI-ANNUALCONSOLIDATEDSTATEMENTOFFINANCIALPOSITION....................................................... 3 (2)CONDENSEDSEMI-ANNUALCONSOLIDATEDSTATEMENTSOFPROFITORLOSSANDCOMPREHENSIVEINCOME.. 5 (3)CONDENSEDSEMI-ANNUALCONSOLIDATEDSTATEMENTOFCHANGESINEQUITY....................................................... 7 (4)CONDENSEDSEMI-ANNUALCONSOLIDATEDSTATEMENTOFCASHFLOWS.................................................................... 9 (5)NOTESTOCONDENSEDSEMI-ANNUALCONSOLIDATEDFINANCIALSTATEMENTS......................................................... 11 (GOINGCONCERNASSUMPTION).............................................................................................................................................. 11 (SEGMENTINFORMATION)........................................................................................................................................................... 11 (CASHFLOWSTATEMENT).......................................................................................................................................................... 14 (ADDITIONALINFORMATION)....................................................................................................................................................... 15
Page 5
2 11111..... OOOOOVVVVVEEEEERRRRRVVVVVIIIIIEEEEEWWWWW OOOOOFFFFF BBBBBUUUUUSSSSSIIIIINNNNNEEEEESSSSSSSSSS PPPPPEEEEERRRRRFFFFFOOOOORRRRRMMMMMAAAAANNNNNCCCCCEEEEE Please refer to "Presentation Material" for Q2 under FY2026 scheduled to be published on the Company's websiteonAugust7th,2026. (URLoftheCompany'swebsite) https://www.kirinholdings.com/en/investors/
Page 6
3 22222..... CCCCCOOOOONNNNNDDDDDEEEEENNNNNSSSSSEEEEEDDDDD SSSSSEEEEEMMMMMIIIII-----AAAAANNNNNNNNNNUUUUUAAAAALLLLL CCCCCOOOOONNNNNSSSSSOOOOOLLLLLIIIIIDDDDDAAAAATTTTTEEEEEDDDDD FFFFFIIIIINNNNNAAAAANNNNNCCCCCIIIIIAAAAALLLLL SSSSSTTTTTAAAAATTTTTEEEEEMMMMMEEEEENNNNNTTTTTSSSSS (((((11111))))) CCCCCOOOOONNNNNDDDDDEEEEENNNNNSSSSSEEEEEDDDDD SSSSSEEEEEMMMMMIIIII-----AAAAANNNNNNNNNNUUUUUAAAAALLLLL CCCCCOOOOONNNNNSSSSSOOOOOLLLLLIIIIIDDDDDAAAAATTTTTEEEEEDDDDD SSSSSTTTTTAAAAATTTTTEEEEEMMMMMEEEEENNNNNTTTTT OOOOOFFFFF FFFFFIIIIINNNNNAAAAANNNNNCCCCCIIIIIAAAAALLLLL PPPPPOOOOOSSSSSIIIIITTTTTIIIIIOOOOONNNNN (¥millions) AtDecember31,2025 AtJune30,2026 Assets Non-currentassets Property,plantandequipment 738,987 739,034 Goodwill 533,321 549,572 Intangibleassets 694,668 689,769 Equity-accountedinvestees 228,794 233,637 Otherfinancialassets 95,058 92,046 Othernon-currentassets 49,213 45,612 Deferredtaxassets 83,092 84,113 Totalnon-currentassets 2,423,132 2,433,783 Currentassets Inventories 348,418 299,833 Tradeandotherreceivables 535,713 428,297 Otherfinancialassets 6,389 7,590 Othercurrentassets 55,099 63,698 Cashandcashequivalents 125,292 168,075 Totalcurrentassets 1,070,911 967,493 Totalassets 3,494,043 3,401,276
Page 7
4 (¥millions) AtDecember31,2025 AtJune30,2026 Equity Sharecapital 102,046 102,046 Retainedearnings 1,201,090 1,035,555 Treasuryshares (251,002) (48,604) Reserves 234,858 272,979 EquityattributabletoownersoftheCompany 1,286,991 1,361,975 Non-controllinginterests 308,156 318,698 Totalequity 1,595,148 1,680,673 Liabilities Non-currentliabilities Bondsandborrowings 842,434 802,575 Otherfinancialliabilities 84,883 81,955 Definedbenefitliability 46,289 39,806 Provisions 11,590 12,504 Othernon-currentliabilities 9,489 5,065 Deferredtaxliabilities 125,239 126,600 Totalnon-currentliabilities 1,119,924 1,068,506 Currentliabilities Bondsandborrowings 81,000 41,026 Tradeandotherpayables 381,487 336,011 Otherfinancialliabilities 63,014 55,878 Currenttaxliabilities 19,633 36,975 Provisions 11,184 17,210 Othercurrentliabilities 222,653 164,997 Totalcurrentliabilities 778,971 652,097 Totalliabilities 1,898,896 1,720,603 Totalequityandliabilities 3,494,043 3,401,276
Page 8
5 (((((22222))))) CCCCCOOOOONNNNNDDDDDEEEEENNNNNSSSSSEEEEEDDDDD SSSSSEEEEEMMMMMIIIII-----AAAAANNNNNNNNNNUUUUUAAAAALLLLL CCCCCOOOOONNNNNSSSSSOOOOOLLLLLIIIIIDDDDDAAAAATTTTTEEEEEDDDDD SSSSSTTTTTAAAAATTTTTEEEEEMMMMMEEEEENNNNNTTTTTSSSSS OOOOOFFFFF PPPPPRRRRROOOOOFFFFFIIIIITTTTT OOOOORRRRR LLLLLOOOOOSSSSSSSSSS AAAAANNNNNDDDDD CCCCCOOOOOMMMMMPPPPPRRRRREEEEEHHHHHEEEEENNNNNSSSSSIIIIIVVVVVEEEEE IIIIINNNNNCCCCCOOOOOMMMMMEEEEE CCCCCOOOOONNNNNDDDDDEEEEENNNNNSSSSSEEEEEDDDDD SSSSSEEEEEMMMMMIIIII-----AAAAANNNNNNNNNNUUUUUAAAAALLLLL CCCCCOOOOONNNNNSSSSSOOOOOLLLLLIIIIIDDDDDAAAAATTTTTEEEEEDDDDD SSSSSTTTTTAAAAATTTTTEEEEEMMMMMEEEEENNNNNTTTTT OOOOOFFFFF PPPPPRRRRROOOOOFFFFFIIIIITTTTT OOOOORRRRR LLLLLOOOOOSSSSSSSSSS SSSSSIIIIIXXXXX MMMMMOOOOONNNNNTTTTTHHHHHSSSSS EEEEENNNNNDDDDDEEEEEDDDDD JJJJJUUUUUNNNNNEEEEE 3333300000,,,,, 22222000002222266666 (¥millions) Sixmonthsended June30,2025 Sixmonthsended June30,2026 Revenue 1,136,309 1,217,876 Costofsales 603,934 625,148 Grossprofit 532,376 592,728 Selling,generalandadministrativeexpenses 438,131 464,426 Normalizedoperatingprofit 94,245 128,303 Otheroperatingincome 2,135 45,043 Otheroperatingexpenses 27,658 44,304 Operatingprofit 68,723 129,042 Financeincome 4,644 12,551 Financecosts 8,998 11,044 Shareofprofitofequity-accountedinvestees 19,392 20,306 Profitbeforetax 83,761 150,855 Incometaxexpense 23,294 34,750 Profit 60,467 116,105 Profitattributableto: OwnersoftheCompany 52,835 101,720 Non-controllinginterests 7,633 14,384 Profit 60,467 116,105 Earningspershare(¥) Basicearningspershare 65.23 126.33 Dilutedearningspershare 65.22 －
Page 9
6 CCCCCOOOOONNNNNDDDDDEEEEENNNNNSSSSSEEEEEDDDDD SSSSSEEEEEMMMMMIIIII-----AAAAANNNNNNNNNNUUUUUAAAAALLLLL CCCCCOOOOONNNNNSSSSSOOOOOLLLLLIIIIIDDDDDAAAAATTTTTEEEEEDDDDD SSSSSTTTTTAAAAATTTTTEEEEEMMMMMEEEEENNNNNTTTTT OOOOOFFFFF CCCCCOOOOOMMMMMPPPPPRRRRREEEEEHHHHHEEEEENNNNNSSSSSIIIIIVVVVVEEEEE IIIIINNNNNCCCCCOOOOOMMMMMEEEEE SSSSSIIIIIXXXXX MMMMMOOOOONNNNNTTTTTHHHHHSSSSS EEEEENNNNNDDDDDEEEEEDDDDD JJJJJUUUUUNNNNNEEEEE 3333300000,,,,, 22222000002222266666 (¥millions) Sixmonthsended June30,2025 Sixmonthsended June30,2026 Profit 60,467 116,105 Othercomprehensiveincome Itemsthatwillnotbereclassifiedtoprofit orloss Netchangeinequityinstruments measuredatfairvaluethroughother comprehensiveincome 1,619 (2,923) Remeasurementsofdefinedbenefit plans (1) (2) Shareofothercomprehensiveincome ofequity-accountedinvestees (80) 39 Itemsthatareormaybereclassifiedto profitorloss Foreigncurrencytranslationdifferences onforeignoperations (61,457) 39,784 Cashflowhedges (1,360) (349) Shareofothercomprehensiveincome ofequity-accountedinvestees 3,093 4,928 Totalothercomprehensiveincome (58,185) 41,477 Comprehensiveincome 2,282 157,581 Comprehensiveincomeattributableto: OwnersoftheCompany (700) 139,242 Non-controllinginterests 2,982 18,339 Comprehensiveincome 2,282 157,581
Page 10
7 (((((33333))))) CCCCCOOOOONNNNNDDDDDEEEEENNNNNSSSSSEEEEEDDDDD SSSSSEEEEEMMMMMIIIII-----AAAAANNNNNNNNNNUUUUUAAAAALLLLL CCCCCOOOOONNNNNSSSSSOOOOOLLLLLIIIIIDDDDDAAAAATTTTTEEEEEDDDDD SSSSSTTTTTAAAAATTTTTEEEEEMMMMMEEEEENNNNNTTTTT OOOOOFFFFF CCCCCHHHHHAAAAANNNNNGGGGGEEEEESSSSS IIIIINNNNN EEEEEQQQQQUUUUUIIIIITTTTTYYYYY SSSSSIIIIIXXXXX MMMMMOOOOONNNNNTTTTTHHHHHSSSSS EEEEENNNNNDDDDDEEEEEDDDDD JJJJJUUUUUNNNNNEEEEE 3333300000,,,,, 22222000002222255555 (¥millions) EquityattributabletoownersoftheCompany Sharecapital Sharepremium Retainedearnings Treasuryshares Reserves Netchangein equityinstruments measured atfairvalue throughother comprehensive income Remeasurements ofdefinedbenefit plans BalanceatJanuary1,2025 102,046 9,497 1,130,931 (251,376) 19,676 － Effectofchangesinaccounting policies － － (10,731) － － － BalanceatJanuary1,2025 reflectingchangesinaccounting policies 102,046 9,497 1,120,200 (251,376) 19,676 － Profit － － 52,835 － － － Othercomprehensiveincome － － － － 1,717 (80) Comprehensiveincome － － 52,835 － 1,717 (80) Dividendsfromsurplus － － (28,755) － － － Acquisitionoftreasuryshares － － － (9) － － Disposaloftreasuryshares － 7 － 0 － － Share-basedpayments － (77) (61) 392 － － Changesintheownership interestinasubsidiary withoutalossofcontrol － (19,872) － － － － Transferfromreservesto retainedearnings － － (14) － (66) 80 Transferfromretainedearnings tosharepremium － 10,444 (10,444) － － － Totaltransactionswith ownersoftheCompany － (9,497) (39,274) 384 (66) 80 BalanceatJune30,2025 102,046 － 1,133,761 (250,993) 21,327 － EquityattributabletoownersoftheCompany Non-controlling interests Totalequity Reserves Total Foreigncurrency translation differenceson foreignoperations Cashflowhedges Total BalanceatJanuary1,2025 169,311 1,440 190,427 1,181,525 352,189 1,533,714 Effectofchangesinaccounting policies － － － (10,731) － (10,731) BalanceatJanuary1,2025 reflectingchangesinaccounting policies 169,311 1,440 190,427 1,170,794 352,189 1,522,984 Profit － － － 52,835 7,633 60,467 Othercomprehensiveincome (53,792) (1,380) (53,535) (53,535) (4,650) (58,185) Comprehensiveincome (53,792) (1,380) (53,535) (700) 2,982 2,282 Dividendsfromsurplus － － － (28,755) (6,997) (35,752) Acquisitionoftreasuryshares － － － (9) － (9) Disposaloftreasuryshares － － － 8 － 8 Share-basedpayments － － － 254 (27) 227 Changesintheownership interestinasubsidiary withoutalossofcontrol － － － (19,872) (62,612) (82,484) Transferfromreservesto retainedearnings － － 14 － － － Transferfromretainedearnings tosharepremium － － － － － － Totaltransactionswith ownersoftheCompany － － 14 (48,374) (69,636) (118,011) BalanceatJune30,2025 115,519 59 136,906 1,121,720 285,535 1,407,255
Page 11
8 SSSSSIIIIIXXXXX MMMMMOOOOONNNNNTTTTTHHHHHSSSSS EEEEENNNNNDDDDDEEEEEDDDDD JJJJJUUUUUNNNNNEEEEE 3333300000,,,,, 22222000002222266666 (¥millions) EquityattributabletoownersoftheCompany Sharecapital Sharepremium Retainedearnings Treasuryshares Reserves Netchangein equityinstruments measured atfairvalue throughother comprehensive income Remeasurements ofdefinedbenefit plans BalanceatJanuary1,2026 102,046 － 1,201,090 (251,002) 23,836 － Profit － － 101,720 － － － Othercomprehensiveincome － － － － (2,978) 38 Comprehensiveincome － － 101,720 － (2,978) 38 Dividendsfromsurplus － － (29,975) － － － Acquisitionoftreasuryshares － － － (34,554) － － Disposaloftreasuryshares － 55 － 1 － － Cancellationoftreasuryshares － (236,572) － 236,572 － － Changeinscopeof consolidation － － － － － － Share-basedpayments － (134) (75) 379 － － Changesintheownership interestinasubsidiary withoutalossofcontrol － 88 － － － － Transferfromreservesto retainedearnings － － (643) － 637 (38) Transferfromretainedearnings tosharepremium － 236,563 (236,563) － － － Totaltransactionswith ownersoftheCompany － － (267,255) 202,398 637 (38) BalanceatJune30,2026 102,046 － 1,035,555 (48,604) 21,494 － EquityattributabletoownersoftheCompany Non-controlling interests Totalequity Reserves Total Foreigncurrency translation differenceson foreignoperations Cashflowhedges Total BalanceatJanuary1,2026 210,785 238 234,858 1,286,991 308,156 1,595,148 Profit － － － 101,720 14,384 116,105 Othercomprehensiveincome 40,816 (355) 37,522 37,522 3,955 41,477 Comprehensiveincome 40,816 (355) 37,522 139,242 18,339 157,581 Dividendsfromsurplus － － － (29,975) (7,864) (37,839) Acquisitionoftreasuryshares － － － (34,554) － (34,554) Disposaloftreasuryshares － － － 55 － 55 Cancellationoftreasuryshares － － － － － － Changeinscopeof consolidation － － － － 2 2 Share-basedpayments － － － 171 － 171 Changesintheownership interestinasubsidiary withoutalossofcontrol － － － 88 65 153 Transferfromreservesto retainedearnings － － 599 (44) － (44) Transferfromretainedearnings tosharepremium － － － － － － Totaltransactionswith ownersoftheCompany － － 599 (64,259) (7,797) (72,056) BalanceatJune30,2026 251,601 (117) 272,979 1,361,975 318,698 1,680,673
Page 12
9 (((((44444))))) CCCCCOOOOONNNNNDDDDDEEEEENNNNNSSSSSEEEEEDDDDD SSSSSEEEEEMMMMMIIIII-----AAAAANNNNNNNNNNUUUUUAAAAALLLLL CCCCCOOOOONNNNNSSSSSOOOOOLLLLLIIIIIDDDDDAAAAATTTTTEEEEEDDDDD SSSSSTTTTTAAAAATTTTTEEEEEMMMMMEEEEENNNNNTTTTT OOOOOFFFFF CCCCCAAAAASSSSSHHHHH FFFFFLLLLLOOOOOWWWWWSSSSS (¥millions) Sixmonthsended June30,2025 Sixmonthsended June30,2026 Cashflowsfromoperatingactivities Profitbeforetax 83,761 150,855 Depreciationandamortization 50,062 54,424 Impairmentlosses 674 9,439 Interestanddividendsreceived (4,103) (6,675) Shareofprofitofequity-accountedinvestees (19,392) (20,306) Interestpaid 4,891 6,735 Gainonsaleofproperty,plantandequipment andintangibleassets (464) (78) Lossondisposalandsaleofproperty,plant andequipmentandintangibleassets 807 2,166 Gainonsaleofsubsidiaries － (29,033) Gainonliquidationofsubsidiaries － (14,173) (Increase)decreaseintradereceivables 56,520 114,970 (Increase)decreaseininventories (18,509) (9,111) Increase(decrease)intradepayables (38,812) (31,019) Increase(decrease)inliquortaxespayable (26,744) (29,808) Increase(decrease)indepositsreceived 574 2,165 Other (21,889) (58,884) Sub-total 67,377 141,666 Interestanddividendsreceived 17,662 22,927 Interestpaid (4,289) (6,040) Incometaxespaid (13,497) (21,204) Cashflowsfrom(usedin)operatingactivities 67,253 137,349
Page 13
10 (¥millions) Sixmonthsended June30,2025 Sixmonthsended June30,2026 Cashflowsfrominvestingactivities Acquisitionofproperty,plantandequipment andintangibleassets (72,241) (65,255) Proceedsfromsaleofproperty,plantand equipmentandintangibleassets 1,221 156 Acquisitionofinvestments (674) (2,462) Proceedsfromsaleofinvestments 315 778 Proceedsfromsaleofsharesofsubsidiaries, netofcashdisposedof － 5,361 Proceedsfromtransferofmembership interestsinsubsidiaries － 114,479 Acquisitionofequity-accountedinvestees － (18) Considerationsfrombusinesstransfer 16,872 － Paymentsofcashsegregatedasdeposits (7,700) － Other 650 624 Cashflowsfrom(usedin)investingactivities (61,556) 53,663 Cashflowsfromfinancingactivities Increase(decrease)inshort-termborrowings 101 997 Increase(decrease)incommercialpaper 107,976 (15,995) Repaymentoflong-termborrowings (20,000) (25,000) Proceedsfromissuanceofbonds 100,000 － Paymentforredemptionofbonds (25,000) (40,000) Repaymentofleaseliabilities (9,506) (10,037) Paymentforacquisitionoftreasuryshares (9) (34,554) Paymentforacquisitionoftreasurysharesby aconsolidatedsubsidiary (4) (6) Dividendspaid (28,755) (29,975) Dividendspaidtonon-controllinginterests (6,988) (7,846) Paymentsforacquisitionofnon-controlling interests (81,605) － Other (385) (57) Cashflowsfrom(usedin)financingactivities 35,825 (162,473) Effectofexchangeratechangesoncashand cashequivalents (3,926) 14,244 Netincrease(decrease)incashandcash equivalents 37,596 42,783 Cashandcashequivalentsatbeginningof period 118,617 125,292 Effectofchangesinaccountingpolicies (10,731) － Cashandcashequivalentsatbeginningof periodreflectingchangesinaccountingpolicies 107,886 125,292 Netincrease(decrease)incashandcash equivalentsresultingfromtransferstoassets heldforsale (13,074) － Cashandcashequivalentsatendofperiod 132,408 168,075
Page 14
11 (((((55555))))) NNNNNOOOOOTTTTTEEEEESSSSS TTTTTOOOOO CCCCCOOOOONNNNNDDDDDEEEEENNNNNSSSSSEEEEEDDDDD SSSSSEEEEEMMMMMIIIII-----AAAAANNNNNNNNNNUUUUUAAAAALLLLL CCCCCOOOOONNNNNSSSSSOOOOOLLLLLIIIIIDDDDDAAAAATTTTTEEEEEDDDDD FFFFFIIIIINNNNNAAAAANNNNNCCCCCIIIIIAAAAALLLLL SSSSSTTTTTAAAAATTTTTEEEEEMMMMMEEEEENNNNNTTTTTSSSSS (((((GGGGGOOOOOIIIIINNNNNGGGGG CCCCCOOOOONNNNNCCCCCEEEEERRRRRNNNNN AAAAASSSSSSSSSSUUUUUMMMMMPPPPPTTTTTIIIIIOOOOONNNNN))))) Therearenomatterstoreportunderthisitem. (((((SSSSSEEEEEGGGGGMMMMMEEEEENNNNNTTTTT IIIIINNNNNFFFFFOOOOORRRRRMMMMMAAAAATTTTTIIIIIOOOOONNNNN))))) (1) Summaryofreportablesegments The reportable segments of the Group are determined based on the operating segments which are constituent units of the Group for which separate financial information is available, and which are periodicallyexaminedbytheBoardofDirectorsforthepurposeofdecidingtheallocationofmanagement resources and evaluating the business results. The Group has identified four reportable segments, namely, "Alcoholic Beverages Business," "Non-alcoholic Beverages Business," "Pharmaceuticals Business"and"HealthScienceBusiness." "Alcoholic Beverages Business," includes Kirin Brewery Company, Limited, Lion Pty Ltd, New Belgium BrewingCompany,Inc.andotherentitieswhichoperatebusinessesinJapanandoverseas.KirinBrewery Company, Limited conducts production and sale of alcoholic beverages such as beer and low alcohol drinksinJapanwhileLionPtyLtdconductsproductionandsaleofproductssuchasbeerandlowalcohol drinks in the Oceania region. New Belgium Brewing Company, Inc. conducts production and sale of productssuchascraftbeerinNorthAmerica. "Non-alcoholic Beverages Business," includes Kirin Beverage Company, Limited and Coca-Cola Beverages Northeast, Inc. and other entities which operate businesses in Japan and overseas. Kirin Beverage Company, Limited conducts production and sale of soft drinks in Japan while Coca-Cola BeveragesNortheast,Inc.conductsproductionandsaleofCoca-ColaproductsintheU.S. "Pharmaceuticals Business," includes Kyowa Kirin Co., Ltd. and other entities which conduct production andsaleofpharmaceuticalproductsinJapanandoverseas. "Health Science Business," includes FANCL Corporation, Blackmores Limited, and other entities which operate business such as natural health in Japan and overseas. FANCL Corporation conducts research and development, production and sale of health food and cosmetics. Blackmores Limited conducts production and sale of nutritional supplements and related products in Australia, Southeast Asia, China andotherregions. Accounting policies for segment information are generally the same as those for the Company's consolidatedfinancialstatements. Inter-segmentrevenueisbasedonactualmarketprices.
Page 15
12 (2)Informationonreportablesegments Informationrelatedtoeachreportablesegmentissetoutbelow. ForthesixmonthsendedJune30,2025 (¥millions) Reportablesegment Others (Note1) Adjustment (Note2) ConsolidatedAlcoholic Beverages Non-alcoholic Beverages Pharma- ceuticals Health Science Revenuefrom unaffiliatedcustomers 492,628 271,805 230,498 127,247 14,132 － 1,136,309 Inter-segmentrevenue 1,159 1,598 156 2,489 32,889 (38,291) － Totalrevenue 493,787 273,403 230,654 129,736 47,021 (38,291) 1,136,309 Segmentincome(loss) (Note3) 53,162 29,537 33,503 8,615 (591) (29,981) 94,245 Otheroperatingincome 2,135 Otheroperatingexpenses 27,658 Financeincome 4,644 Financecosts 8,998 Shareofprofitofequity- accountedinvestees 19,392 Profitbeforetax 83,761 Notes: 1. "Others"includessegmentswhicharenotincludedinthereportablesegments. 2. Adjustmentsareasfollows: Adjustment in segment income (loss) mainly includes inter-segment eliminations and corporate expenses not attributable to any reportable segment. The expenses are mainly group administrative expenses incurred by the Company, a holding company, and administrative expenses relating to multiple reportable segments incurred by sharedservicescompanies. 3. Segment income (loss) represents normalized operating profit which is calculated by deducting the total of cost of salesandselling,generalandadministrativeexpensesfromrevenue.
Page 16
13 ForthesixmonthsendedJune30,2026 (¥millions) Reportablesegment Others (Note1) Adjustment (Note2) ConsolidatedAlcoholic Beverages Non-alcoholic Beverages Pharma- ceuticals Health Science Revenuefrom unaffiliatedcustomers 517,844 294,884 263,489 128,843 12,816 － 1,217,876 Inter-segmentrevenue 1,267 1,789 139 2,260 33,440 (38,896) － Totalrevenue 519,111 296,673 263,629 131,103 46,256 (38,896) 1,217,876 Segmentincome(loss) (Note3) 62,094 30,965 60,540 10,403 (1,475) (34,225) 128,303 Otheroperatingincome 45,043 Otheroperatingexpenses 44,304 Financeincome 12,551 Financecosts 11,044 Shareofprofitofequity- accountedinvestees 20,306 Profitbeforetax 150,855 Notes: 1. "Others"includessegmentswhicharenotincludedinthereportablesegments. 2. Adjustmentsareasfollows: Adjustment in segment income (loss) mainly includes inter-segment eliminations and corporate expenses not attributable to any reportable segment. The expenses are mainly group administrative expenses incurred by the Company, a holding company, and administrative expenses relating to multiple reportable segments incurred by sharedservicescompanies. 3. Segment income (loss) represents normalized operating profit which is calculated by deducting the total of cost of salesandselling,generalandadministrativeexpensesfromrevenue.
Page 17
14 (((((CCCCCAAAAASSSSSHHHHH FFFFFLLLLLOOOOOWWWWW SSSSSTTTTTAAAAATTTTTEEEEEMMMMMEEEEENNNNNTTTTT))))) (Proceedsfromtransferofmembershipinterestsinsubsidiaries) (1)Overviewofthetransaction Pursuant to the membership interest transfer agreement entered into with E. & J. Gallo Winery on February6,2026(JapanStandardTime),KirinBeer&SpiritsofAmericaInc.,aconsolidatedsubsidiaryof the Company, transferred all interests in Four Roses Distillery, LLC (hereinafter “Four Roses”), its whollyownedsubsidiary,onApril2,2026(JapanStandardTime).Asaresult,theCompanylostcontrolof FourRoses. (2)Assetsandliabilitiesassociatedwiththelossofcontrol (¥millions) Amount Assetsatthedateoflossofcontrol Non-currentassets ¥28,062 Currentassets 68,222 Liabilitiesatthedateoflossofcontrol Non-currentliabilities 1,814 Currentliabilities 25,806 (3)Cashflowsarisingfromthelossofcontrol (¥millions) Amount Considerationforthesaleofinterests(Note1) ¥92,438 Collectionofloansreceivablefromthesubsidiaryoverwhichcontrolwaslost 22,871 Cashandcashequivalentsofthesubsidiaryoverwhichcontrolwaslost (830) Proceedsfromtransferofmembershipinterestsinsubsidiaries(Note2) 114,479 Notes: 1.Inadditiontotheaboveamount,theCompanymayreceivecontingentconsiderationofapproximately¥8.0 billion(USD50million),subjecttoFourRosesachievingcertainrevenuetargetsafterthesale. 2. Proceeds from transfer of membership interests in subsidiaries are included in cash flows from investing activities in the condensed semi-annual consolidated statement of cash flows for the six months ended June30,2026. (4)Gainorlossarisingfromthelossofcontrol Thegainonsalerecognizedinconnectionwiththeloss ofcontrol overFourRoses amountedto¥29,033 million, and was included in “Other operating income” in the condensed semi-annual consolidated statementofprofitorlossforthesixmonthsendedJune30,2026.
Page 18
15 (((((AAAAADDDDDDDDDDIIIIITTTTTIIIIIOOOOONNNNNAAAAALLLLL IIIIINNNNNFFFFFOOOOORRRRRMMMMMAAAAATTTTTIIIIIOOOOONNNNN))))) (ExecutionofShareAcquisitionAgreement) On August 7, 2026, the Company has decided to commence procedures to acquire 100% of the outstanding shares of Jamieson Wellness Inc. (hereinafter "Jamieson Wellness"), which manufactures, distributes,andsellsvitamins,minerals,andsupplements(VMS)productsprimarilyinNorthAmerica,and tomakeitawhollyownedsubsidiary. For this share acquisition, the Company plans to acquire the shares held by all shareholders of Jamieson Wellness for cash through a Plan of Arrangement (hereinafter "POA") under the Business Corporations Act (Ontario), which is a structure to acquire 100% of the shares of a Canadian listed company. Following resolutions at meetings of the boards of directors of the Company and Jamieson Wellness, the Company entered into an Arrangement Agreement with Jamieson Wellness on August 7, 2026,whichsetsforththetermsandconditionsoftheshareacquisition. TheimplementationofthePOAissubjecttothesatisfactionofcertainconditions,includingtheapproval oftheproposedshareacquisitionatashareholdermeetingofJamiesonWellnessandtheapprovalbythe court. Anoverviewofthisshareacquisitionisasfollows: Name of the company whose sharesaretobeacquired JamiesonWellnessInc. Scheduledacquisitiondate October2026orlater(expected) Total number of shares to be acquired 41,490,939shares(100%ofoutstandingshares) AcquisitionPrice CAD1,898million(approximatelyJPY218.3billion(Note)) (Note)CalculatedattherateofCAD1=JPY115