OMRON Corporation (hereinafter "OMRON"), headquartered in Kyoto, and Kirin Brewery Company, Limited (hereinafter "Kirin Brewery"), a Tokyo-based group company of Kirin Holdings Company, Limited (hereinafter "Kirin"), also based in the Japanese capital, announced on October 18 that they have signed a Stock Purchase Agreement regarding OMRON's investment in Kirin Techno-System Company, Limited (hereinafter "KTS"), based in Kawasaki, to supply safe and secure beverages. OMRON's equity stake will be 60%, and Kirin Brewery's 40%.

OMRON's logo: https://kyodonewsprwire.jp/img/202210208491-O2-IKwuMyAb

Kirin's logo: https://kyodonewsprwire.jp/img/202210208491-O1-8LEM0Ruz

Lately, as consumers' interest in the safety and security of food and beverages has increased, there is a growing need for advanced quality control and quality inspection to ensure the safety and security of such products at the manufacturing site. On the other hand, as the labor shortage in the manufacturing industry accelerates, automation of manual processes has become a management issue. In addition, reducing waste due to quality defects is also critical from the perspective of global environmental conservation in order to reduce plastic use. In addition to further improving productivity, which has been an issue for some time, there is an urgent need to achieve higher inspection accuracy, automation, and reduction of defective products in order to both ensure the safety and security of food and beverages and protect the global environment by reducing the use of plastics and use of production energy.

Through OMRON joining the investment in KTS, the two companies will jointly develop "Manufacturing DX (Digital Transformation)" solutions utilizing inspection data and contribute to the development of the food and beverage industry. Both companies will co-create new value (solutions) by combining OMRON's advanced control technology with KTS' inspection technology. Specifically, by identifying the causes of defects from inspection data and taking countermeasures, both companies aim to achieve manufacturing sites that do not produce in-process defects. By extending the solutions created through co-creation to customers in the beverage industry around the world, both companies will promote quality improvement and production innovation in the entire food and beverage industry and contribute to global environmental conservation by reducing the number of defective products.

Through the investment in KTS, OMRON aims to further enhance corporate value by leveraging the strengths of both companies to jointly develop value, providing safe and secure beverages, and contributing to the protection of the global environment.

- Comments from both companies

Junta Tsujinaga, Managing Executive Officer, Company President of Industrial Automation Company, OMRON Corporation

"OMRON's Automation Business is committed to 'Enriching the future for people, industries and the globe by innovative-Automation' under our long-term vision SF2030, launched this fiscal year. We are conducting our business to create a future society in which the sustainable development of industries that support the upper 'Medical,' 'Food' and 'Living Environment' and enrichment of the future for people and the globe are concurrently achieved. This capital alliance is positioned to contribute to the sustainable development of the food and beverage industry, which supports the 'Food.' Through this investment, OMRON will retain KTS' 'inspection machine,' which is becoming increasingly critical at production sites in the food and beverage industry. By integrating it with our value creation concept, 'innovative-Automation,' we will continue contributing to the safe, secure, and fulfilling 'Food.'"

Masao Maehara, Senior Executive Officer in charge of Supply Chain Management, Production Technology Strategy at Kirin Holdings

"Kirin Techno-System is a pioneering 'in-house venture company' that was incorporated based on optical technology developed by Kirin Brewery's Engineering Department; directed at maintaining the health and safety of consumers and has gained the trust of numerous domestic and international food, beverage, and pharmaceutical manufacturers. Under the Kirin Group Vision 2027, a long-term management vision launched in 2019, the Kirin Group aims to become 'A global leader in CSV (*),' creating value across our world of Food & Beverages to Pharmaceuticals, and Kirin Techno-System plays an important role in putting this vision into practice. Through this investment, we will evolve and expand the value provided by Kirin Techno-System and contribute to the health and safety of consumers worldwide."

(*) Creating Shared Value. Combined added value for consumers as well as for society at large.

About Kirin Holdings Company, Limited:

https://kyodonewsprwire.jp/attach/202210208491-O5-50Hl50X9.pdf

About Kirin Techno-System: https://kyodonewsprwire.jp/attach/202210208491-O2-44vU7DKh.pdf

About OMRON Corporation: https://kyodonewsprwire.jp/attach/202210208491-O6-lD0Ul4J0.pdf

About innovative-Automation: https://kyodonewsprwire.jp/attach/202210208491-O4-0Ca172vs.pdf