Page 8 - Kirin Holdings Teaching Note

quickly made a major decision – even with the Brazil

operation returning to profit Isozaki would write down the

value of its Brazil business by approximately 110 billion yen.

This meant that Kirin Holdings established in 1949 would

post its first ever annual loss. (2)

Isozaki decision to write down the investment was a hugely

courageous decision. In a sense starting the strategy of

creative destruction as he drove his new strategic plans

forward underpinned by the developing CSV initiative.

Isozaki introduced the first three-year plan 16MTBP (2016-
2018) which aimed to revitalise the company. The next step

was the 2019 to 2021 medium term business plan followed

by a long-term vision for 2027.

“A major pillar of our 2019 MTBP will launching and growing

businesses bridging pharmaceuticals and food & beverages.

Progress in this direction will mean further diversification

for the Group. From an investor’s viewpoint, I think the

unstated theme of our new Medium-Term Business Plan is

to earn a conglomerate premium. This calls for Kirin

Holdings to optimize its business portfolio and leverage the

Group’s management resources, such as capital, human

resources, and customer base. Here, it is important to

maximize intra-business synergies in unique ways, as only a

diversified business can. Worldwide we are seeing that

skilful business portfolio management is crucial to a

diversified company’s performance and its attractiveness to
investors. Since Kirin Holdings itself is an investor in its

several business domains, the financial markets demand a