Restructuring of Supply Chain
Management in Japan(Alcohol and Non-alcohol BeveragesBusinesses)
March 8, 2022

Contents• Vision for Asahi’s supply chain management– Background– Vision• Production site reforms– Reform schedule– Overview of measures– Shin-Kyushu Brewery model and specific measures• Expected benefitsⒸASAHI GROUP HOLDINGS. All rights reserved.

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Background
Although we have surplus production capacity for beer-type beverages, we expect further
profitability improvements through boosting manufacturing capabilities in growth categories

Beer-type beverages• Despite efforts to expand sales of beer and other products, sales volume will likely
remain flat or drop slightly due to the impact of the shrinking market• Revisions will be made to rectify surplus production capacity in response to theimpact of the contracting on-premise market
RTD low-alcohol beverages• We are targeting sharp growth in sales volume, given the rising demand in thismarket• Production capacity will be ramped up in line with sales volume growthNon-alcohol beverages• This market is trending up slightly, and we are targeting steady growth in sales
volume• Production capacity will be ramped up in line with sales volume growthⒸASAHI GROUP HOLDINGS. All rights reserved.

3Vision
Spearheaded by Asahi Group Japan, we will aim to be an industry leader in Japan and overseas
in terms of costs, growth, and sustainability

Strengthening
measures in growth areas

Streamlining of costsby around JPY3.0
billion*Roughly 30%
improvement in laborproductivity

Enhancing costcompetitiveness

Building a production system that can handle
multiple product types and containers tosupport growth in new value provided andnew beverage products

Accelerating
sustainability
strategy

Aiming to make production sitesof Asahi Breweries carbon
negative by 2029

Improvements in the execution and speed of Group-wide measures through synergies between
the Alcohol Beverages, Non-alcohol Beverages, and Food businesses, greater utilization of theGroup’s global scale and knowhow, and the concentration into Asahi Group Japan of strategic
decision-making concerning procurement, production, and distributionⒸASAHI GROUP HOLDINGS. All rights reserved.

*2026 full-year forecast (vs. 2021) for beer-type beverages only, after adjusting for increases in distribution costs, etc.

4Overview of Supply Chain Management Restructuring Plan
We will overhaul our procurement, production, and distribution systems across allof our domestic businesses, starting with production

Procurement

Production

Distribution• Centralize procurement foralcohol and non-alcohol
beverages and switch to global
procurement leveraging scale
and best practices• Rationalize production capacity
levels and business site
locations for domestic
businesses as a whole• Rationalize distribution
network in line with production
systems• Adopt decarbonization
measures in procurement, bymaking lighter cans, using
recycled materials, etc.
• Use environment-friendly raw
materials for plastic containersⒸASAHI GROUP HOLDINGS. All rights reserved.

• Shift to highly efficient
production and generate newvalue• Step up initiatives aimed atachieving carbon negativity• Maximize transportation
efficiency• Reduce CO2 emissions with theabove measures andimplement working-stylereforms for the distribution
workforce in 2024

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Contents• Vision for Asahi’s supply chain management– Background– Vision• Production site reforms– Reform schedule– Overview of measures– Shin-Kyushu Brewery model and specific measures• Expected benefitsⒸASAHI GROUP HOLDINGS. All rights reserved.

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Reform Schedule
Building an optimal supply chain management system with initiatives
spanning the Alcohol and Non-alcohol Beverages Businesses

Production Facilities
Breweries of Asahi Breweries, Ltd.
Of the above, those scheduled for end of operations

2022

2023

2024

2025

2026～

Of the above, those scheduled to be transferred

Factories of Asahi Soft Drinks Co., Ltd.
Hokkaido
January 2023:
End of operations
Kanagawa /Shikoku Brewery

March 2024: Endof operations(Nikka)Nishinomiya Plant

End-2024:
End of operations
Nishinomiyahigashi DC

End-2025:
End of operations
Hakata Brewery

2026: Start ofoperations
Shin-Kyushu Brewery(tentative name)Okayama• Shut down two Asahi Breweries production sites (Kanagawa Breweryand Shikoku Brewery) and migrate functions of the Hakata Brewery
to the new Shin-Kyushu Brewery (tentative name). Build out an
optimal production system for both alcohol and non-alcohol
beverages.
• Roll out the next-generation production system model of the ShinKyushu Brewery to other production sites.

Gunma

Akashi

Hokuriku
Rokko
NishinomiyaFukushimaHakata

IbarakiKanagawa
Fujiyoshida
SuitaFujisan

Shikoku
NagoyaNote: Production sites of Asahi Breweries include Nikka Whisky’s Nishinomiya Distillery (scheduled for closure)ⒸASAHI GROUP HOLDINGS. All rights reserved.

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Enhancing Group-wide Production Efficiency
Enhance Group-wide production efficiency through the building of an optimal supply chain
Seeking to improve profitability
through supply chain
restructuring

Optimization of domestic supply chain
Beer production site

• Enhance capacity utilization
through production site
consolidation and optimization ofproduction capacity

Non-alcohol production site
RTD production site•

Consolidation of beer production at Shikoku toother breweries•

Consolidation of RTD production at Nishinomiya to
Suita
Kansai

Nishinomiya•

Consolidation of beer production atKanagawa to other breweries

Kanto
Ibaraki

Suita

Shikoku

Kanagawa

Nishinomiya
Kanagawa

HakataShin-Kyushu
Brewery(tentativename).

Shikoku•

Move from Hakata to the new Shin-Kyushu (tentative name) to
manufacture beer, non-alcohol and RTD.

ⒸASAHI GROUP HOLDINGS. All rights reserved.

• Location of production sites
based on local market size ineach area (reducing
transportation costs throughlocal production for localconsumption)• Securing production capacity on
the back of sales growth in nonalcohol and RTD low-alcohol
beverages

10% increase in capacity
utilization

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Enhancing Cost Competitiveness(Transforming Production Operations)

The establishment of a central team structure will dramatically enhance operational efficiency
Measures for improving
operating efficiency

Transforming production operations
Operations up until now
Site B

Site C

Site A

Site B

Site C Site consolidation
3

1units and processes2• Site-wide work standardization:
Making work more efficient throughsite-wide coordination andmanagement, including production
support operations

MultiskillingMultiskillingMultiskilling

Site consolidation(planning and accounting)(integrated operationsfor brewing and packaging)2
Site-wide standardized work
practices(supervision, maintenance, etc.)ⒸASAHI GROUP HOLDINGS. All rights reserved.

Multi-tasking and1 • Multi-skilling:
integration of operations transcendingof sites: Work quality
3• Consolidation
enhancement and greater efficiency

Packaging

Brewing

Site A

Efficient cross-organizational working style
under a central team structure

Central teamstructurefrom the consolidation of planningand administrative tasks• Automation and energy-saving:
Minimizing work tasks by upgrading
to cutting-edge equipment and theuse of digital technologies

30% increase in laborproductivity9Bolstering Sustainability Initiatives(CO2 Emissions Reduction Target)

We will aim to make the entire operations of Asahi Breweries carbon negative, thus contributing
to the Group-wide target of a 70% reduction in emissions (vs. 2019 levels)

Main initiatives ofAsahi Group Japan

Asahi Group's CO2 emissions (%, compared to 2019)• Transforming production
methods and facilities– Overhauling production
processes– Making utility facilities
more efficient– Uninterrupted operations• Production powered byrenewable energy– Solar power– Biomass energy

2019

Asahi GroupJapan, Ltd.

Others (Europe, Oceania,and Southeast Asia)

2030• Switching to renewableenergy sources– RE100 electricityⒸASAHI GROUP HOLDINGS. All rights reserved.

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•

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Overview of Shin-Kyushu Brewery (Tentative Name)
Operations scheduled to come online in 2026. Will feature next-generation production systems
and operate as a model brewery for the Asahi Group
Bolstering EnvironmentalResponsiveness• Greater production range (expanded to 30
products from 10)• Capacity for manufacturing RTD beverages,
Taruhai Club, and soft drinks• Capacity for manufacturing multiple types ofcontainers

Improving CostCompetitiveness• 50% reduction in energy consumption• Productivity improvements with the installationof remote monitoring, automation, and othernew technologies• Improvements in overall cost efficiency,
including distribution

Bolstering Sustainability
Strategy• Innovation in manufacturing methods andgreater energy efficiency• Installation of CO2 recovery system and carbon
recycling technology• Installation of renewable energy facilities*Rendering• The brewery will be carbon negative (on a stand-alone basis) in 2026.
• Best practices of this brewery will be introduced to the Group’s other production bases.
ⒸASAHI GROUP HOLDINGS. All rights reserved.

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Accelerating Our Sustainability Strategy(Achieving Carbon Negativity)

We will aim to achieve carbon negativity by innovating manufacturing methods, powering production
with renewable energy, switching to renewable energy sources for electricity, and CO2 recovery

Hakata Brewery CO2 emissions (%, compared to 2019)

AInnovation of manufacturingmethods/facilities•

High-concentration
mashing•

Filling containers at
ordinary temperatures•

Downsizing anddispersing utility facilities(boilers, refrigerators,•etc.)

Continuous operations
24/7/365ⒸASAHI GROUP HOLDINGS. All rights reserved.

BCD

Production using
renewable energy

Switching to
renewable energy

CO2 recovery•

Solar power
generation/heatcollection•

Biomass energy
production with spentbarley•

RE100 electricity•

Recovery and sale ofemitted CO2 gas•

Increased
electrification rate,etc. CO2•

Methanation

Refining and use ofbiogas•12

Accelerating Our Sustainability Strategy(A: Innovation of Manufacturing Methods/Facilities)

Reducing CO2 emissions by making innovative changes to manufacturing methods and equipment

Initiative
取組 1Mashing

Wort chilling

Initiative 2Fermentation

Maturation

Filtration

Packaging

Initiative 3Shipping

Initiative 4Filling all containers atordinary temperatures

1 Streamlining across all processes

2 High concentration mashing

3 Fermentation tank maturation

4•••

Improve cooling efficiency byrethinking fermentation andmaturation processes••Significantly reduce power
needed to cool beer

Aim to fill all types of bottles,cans, and kegs at ordinary
temperatures (will be first timewith bottles and kegs for Asahi(already implemented for canlines))•

Reduce energy used to warm
products to prevent
condensation, recover “coldenergy” and use it for wort
cooling and other processes•

Reduce transportation loss bydownsizing and dispersing
utility facilities installed atproduction sites (boilers,refrigerators, etc.)
Make thermoelectric conversion
more efficient with use of heatpumps, etc.

ⒸASAHI GROUP HOLDINGS. All rights reserved.

Reduce amount of energy
needed for heating bymashing batches at a higher
concentration than before13

Accelerating Our Sustainability Strategy(B: Production Using Renewable Energy)

Reducing CO2 emissions by installing renewable energy facilities

Solar power• All rooftop space of new brewery to be covered
with solar power panels and heat collectionpanels– To be Asahi’s biggest such installation to date

Biomass energy• To start using methane gas produced throughfermentation of spent barley dregs– Newly installed technology at the Shin-Kyushu Brewery
Spent barley

Dehydration

Animal feedFermentation withmicroorganisms

BiogasSteamElectricpower• Refining biogas can expand the scope of biomass
application– Trials launched in October 2020 with the aim of establishingfuel cell power generation technology powered by biogas
derived from plant effluent

1 BreweryⒸASAHI GROUP HOLDINGS. All rights reserved.

Effluent

2 Effluent processing Bio methane gas

3 Gas refinement Refined biogas

4 Solid oxide fuel cell (SOFC)

Electricity

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Accelerating Our Sustainability Strategy(C: Switching to Renewable Energy)

Reducing CO2 emissions by increasing our electrification rate and the weighting of renewable energy
among the energy purchased from external sources

RE100 electricity

Increased electrification rate

• Switching purchased electricity to electricity
generated from renewable energy sources• Switching the energy used to power production
processes from fuel to electricity– We started using electricity from renewable energy sources in2009> Asahi Super Dry uses the most green power generated fromnatural energy of all products in Japan– We are currently working towards switching purchased
electricity at all production sites in Japan to green power byApril 2023

– We will pursue electrification (using heat pumps, etc.) byabsorbing heat from currently underutilized waste heat,
which can then be used to heat water or in productwarming processes
Simplified
diagramHeatabsorption

Evaporator Compressor Condenser

Electricpower

Energy recovery
from effluent

Heat
releaseUsed in product warming
to reduce fuel usage

Expansion valve

HeatabsorptionⒸASAHI GROUP HOLDINGS. All rights reserved.

Electricpower

Heatrelease15

Accelerating Our Sustainability Strategy(D: CO2 Recovery)

Reducing CO2 emissions with the installation of CO2 recovery systems and carbon recycling technology

CO2 capture technology

Methanation technology(synthetic methane fuel production)• CO2 emitted from boilers and the like is captured withhigh efficiency• Captured CO2 is used to synthesize methane by reacting
it with hydrogen• Applications: Raw material for synthetic methane (fuel);sold as liquefied carbon dioxide (as a coolant or for use inplant factories, etc.)• Applications: Fuel for boilers, cogeneration powersystems, and fuel cells; injection into utility gas pipelines
after calorific adjustment and odorization• Demonstration testing ongoing since January 2020 at theAsahi Group Research and Development Center (Moriya,Ibaraki Prefecture)• Demonstration testing ongoing since September 2021 atthe Asahi Group Research and Development Center(Moriya, Ibaraki Prefecture)ⒸASAHI GROUP HOLDINGS. All rights reserved.

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Strengthening Systems Underpinning Growth(Improving Area-specific Supply-and-demand Factor)

Through high-mix production, we will aim to raise the area-specific supply-and-demand factor to around 100% for beer-type
beverages, non-alcohol beer-taste beverages, and RTD low-alcohol beverages, with about 50% for non-alcohol beverages
Area-specific supply-and-demand factor in Kyushu （％）

HakataShin-Kyushu

Beer-type beverages +non-alcohol beer-tastebeverages

HakataShin-Kyushu

RTD low-alcoholbeverages (canned)

HakataShin-Kyushu

Non-alcohol beverages(canned)Note: Supply-and-demand factor for Kyushu area = Kyushu area production volume ÷ Kyushu area shipment volumeⒸASAHI GROUP HOLDINGS. All rights reserved.

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Contents• Vision for Asahi’s supply chain management– Background– Vision• Production site reforms– Reform schedule– Overview of measures– Shin-Kyushu Brewery model and specific measures• Expected benefitsⒸASAHI GROUP HOLDINGS. All rights reserved.

18

Expected Benefits
By enhancing Group production efficiency through supply chain management reorganization, we will aim to
reduce costs, establish supply systems in growth areas, and achieve carbon negativity at all Asahi
Breweries production sites by 2029

ShinKyushu
Brewery

50% reduction in energy per unit ofproduction
30% increase in labor productivity
Reduction in fixed costs owing toincrease in capacity utilization

Group product mix*

Carbon negativityIncrease from 10 products to30 products

Target year: 2026

Expanded deployment of nextgeneration production model

Asahi
Breweries
overall

Cost benefits of roughly
JPY3.0bn**

Supply system

Carbon negativity (all production sites)

Expanded high-product/container-mix
production

Target year: 2029

*Increase to 30 for beer-type beverages only; the number of RTD low-alcohol beverages and non-alcohol beverages will be also expanded in addition to this**By 2026
ⒸASAHI GROUP HOLDINGS. All rights reserved.

19Information in this material is not intended to solicit sale or purchase of shares in Asahi Group Holdings.
The views, estimates and other information expressed in this document are based on the company's judgment at the time ofpublication, and no guarantees are provided regarding the accuracy of such information. This information is subject to change without notice.
The company and its officers and representatives accept no responsibility or liability for any damage or inconvenience that may be caused by orin conjunction with any part of these materials.

ⒸASAHI GROUP HOLDINGS. All rights reserved.

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