A Better Kirin

This website outlines our thoughts on Kirin Holdings Co Ltd ("Kirin") and how we think it is well within the grasp of Kirin’s Board to unlock the current substantial discount to fair value. The site contains a presentation which details our views on Kirin (in English and Japanese). You will also find a list of Frequently Asked Questions (FAQ’s) that we have received from various stakeholders, including other Kirin shareholders, and our responses to them. We hope you find the presentation relevant and useful, and encourage you to Contact Us if you have any questions of your own.

We have owned a position in Kirin on behalf of our clients since September 2014 and have been constructively engaging with Kirin’s management over the years. We believe Kirin has a fundamentally attractive collection of beer assets in Japan, Australia, Myanmar and the Philippines, and has options to expand some of the strong brands in this portfolio more globally. However, we also believe that these attractive assets are being obscured by non-core holdings in unrelated industries (the majority of which, by value, are independently listed) spanning the pharmaceutical, bio-pharmaceutical, skincare and soft drinks industries.

Kirin has put forward an ambitious plan to expand in these categories and create an entirely new category that "bridges" all of them. We think this plan lacks strategic logic, has limited financial visibility and lacks credibility given Kirin’s achievements in these efforts to date and, indeed, the lack of success with similar strategies from larger, more qualified consumer-focused peers.

As a result of this current conglomerate status, a misguided strategic vision and accompanying poor capital allocation decisions, we believe that Kirin’s share price suffers from a substantial discount to its fair value.

If you are a Kirin shareholder, we would urge you to use your voice as a co-owner of the company to encourage management and the Board to adopt a commercially sensible strategic vision and a capital allocation policy that maximises the value of your investment and the value of the company for all stakeholders.

Issued by Independent Franchise Partners, LLP, authorised and regulated by the Financial Conduct Authority in the United Kingdom. Independent Franchise Partners, LLP is registered with the United States Securities and Exchange Commission. The information displayed on this website is for eligible counterparties and professional clients only and is not for retail clients. The services described may not be available to you, or suitable for you. Nothing in this document constitutes investment advice nor does it represent any offer to provide services to buy or sell securities of any kind. Investments in the portfolios managed by Independent Franchise Partners, LLP may fall as well as rise and investors may not be able to recover their invested capital.

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