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30 Jan 2023

Kirin's response

  1. Has your company completed its withdrawal from Myanmar? Can you briefly describe the nature, sector, scale, and geographic area of any of your remaining business operations or investments in Myanmar?

Kirin Holdings has completed its withdrawal from the Myanmar business.

(Reference release)

・Completion of Myanmar Brewery Limited Share Transfer (January 23, 2023)


2. In the process of your company’s withdrawal:

a. What have been the key considerations informing this decision and did you consult with your workers and/or other affected stakeholders as part of your decision-making process?

Key considerations were taken into account: how to enable an early withdrawal from the Myanmar business, and how to minimize the impact on local employees, business partners, and other stakeholders in order to make a responsible withdrawal.

In making this decision, Kirin Holdings sought input from a wide range of experts and specialists from both within and outside the company.

Kirin Holdings sincerely explained its approach toward a responsible withdrawal to local employees as appropriate during the decision-making process and sought their understanding.

Kirin Holdings also communicated appropriately and as needed with its business partners.

The decision-making process leading to the withdrawal from the Myanmar business is described below.

Kirin Holdings expressed its regret over the actions of the military seizing power by force in Myanmar, which is fundamentally against its business norms and against its Human Rights Policy. Given this, Kirin Holdings also immediately announced it would terminate its joint venture partnership with MEHPCL, which has business relations with the military, at the earliest possible date.

In terminating the joint venture, Kirin Holdings aimed to continue contributing to the development of Myanmar's society and economy on the premise of minimizing the negative impact on local employees, business partners, and other stakeholders. However, after approximately one year of negotiations with MEHPCL, Kirin Holdings determined that it would be difficult to quickly terminate the joint venture in the manner it desired and decided to withdraw from the Myanmar business.

When considering the withdrawal method, Kirin Holdings took into account multiple scenarios based on the premise of terminating the joint venture as soon as possible while minimizing the negative impact on stakeholders; and as a result, Kirin Holdings decided that the transfer of shares held in Myanmar Brewery Limited (MBL) back to MBL (MBL share buyback) was the most appropriate method. The share transfer agreement was completed, and the shares were transferred back to MBL. The same has been completed for Mandalay Brewery Limited (MDL), another joint venture with MEHPCL.

(Reference release)

・Statement on the situation in Myanmar (February 5, 2021)


・Withdrawal from the Myanmar Business (February 14, 2022)

https://pdf.irpocket.com/C250 3/OMfg/VvCP/LpVE.pdf

・Basic Agreement on Myanmar Brewery Limited Share Transfer (June 30, 2022)


b. What are the immediate and longer-term steps that your company has taken or is prepared to take to mitigate any negative impacts of your exit on affected communities and your workers, including addressing any loss of income?

Through MBL's share repurchase, Kirin Holdings sought to minimize the negative impact on local employees and business partners by ensuring that MBL's business would continue to exist after its withdrawal, and through determination and effort was able to gain agreement from MBL and MEHPCL to take the following measures to ensure the best possible treatment of local employees.

(1) Ensure freedom of choice in regards to employment

(2) Prohibition of disadvantageous changes in salary and other treatment for one year

(3) Provision equivalent to three months' salary for MBL employees (already disbursed prior to the share transfer)

3. If your company, subsidiary, or affiliate chooses to continue operating in Myanmar, what human rights due diligence has been undertaken and how are you planning to mitigate harm in Myanmar in your operations?

Kirin Holdings has completed its withdrawal from the Myanmar business.

4. What kind of due diligence measures does your company use to ensure that it does not have any business relationships with the Myanmar junta?

Kirin Holdings has completed its withdrawal from the Myanmar business.

Part of the following timelines

Myanmar: Kirin withdraws from Myanmar after allegations that subsidiaries have business ties with Myanmar's military conglomerate; co. responds to NGO's criticism of being "irresponsible"

Myanmar: Survey of companies that have expressed withdrawal or suspension of operations since the attempted coup