Page 9 - Kirin Holdings Case Study

social issues by combining its specialties in fermentation

technology and biotechnology developed through its
original beer business and the pharmaceutical and

biochemical technologies acquired through its

diversification strategy since 1980s. (5)

Part of this realignment of finances was a drive for asset
efficiency partly through disposals and the reduction of

company cross-shareholding. These along with reforms of

low-profit businesses had shown impressive results. Actions
like these, brought structural reform to the group at an

enhanced pace. As a result, the company achieved three-

year free cash flow targets laid out in Diagram 1.

Diagram 1; Source: Kirin Report 2018 (3)

The year 2017 also saw the Group's profits rise to record

levels as shown in Diagram 2.

In 2018, the final year of the 16MTBP, Kirin had achieved its

core business profit growth as well as reaching its

quantitative targets and guidance. In addition, it had
fortified the Group's management foundation with a view

toward maximizing shareholder value based on further

progress in corporate governance and strengthened

Creating Shared Value (CSV) management, based on its CSV