English Translation of Original JapaneseThis is a translation of the original documents in Japanese. In the event of any discrepancy, the original
documents in Japanese shall prevail.

Items Disclosed on the Internet in Relation to the
Convocation Notice of the 97th Annual General Meeting of Shareholders

TABLE OF CONTENTSCONSOLIDATED STATEMENT OF CHANGES IN EQUITYNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NON-CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETSNOTES TO THE NON-CONSOLIDATED FINANCIAL STATEMENTS

1
3
19
20

Above items have been provided to our shareholders by posting them on the Company’s
website in accordance with the provisions of relevant laws and regulations and the Article
15 of the Company’s Articles of Incorporation.

ASAHI GROUP HOLDINGS, LTD.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended December 31, 2020

(million yen)
Equity attributable to owners of parent
Other components of equity

Balance at beginningof current period

Issued capital

Share premium

182,531

119,163

Retainedearnings

Treasury shares

918,523(77,011)

Changes in fairvalue of financial
instruments
Remeasurements
measured at fairof defined benefit
value through
plans
other
comprehensive
income63,354–(22,267)668(22,267)668(1,482)(668)

Comprehensive
incomeProfit92,826

Other comprehensive
incomeTotal comprehensive
income––37,51337,51392,826–

Transfer to nonfinancial assets
Transactions withownersIssuance of newsharesDividends(46,265)

Purchase of treasury
shares(309)

Disposal of treasury
shares

5,018

76,289Changes throughsales of consolidated
subsidiaries
Share-based paymenttransaction

88

Transfer from othercomponents ofequity to retained
earnings

2,151

Other increase(decrease)

(0)

(6)

Total contributions
by owners anddistribution toowners37,51342,620(44,120)

75,979

(1,482)(668)

Total transactions
with owners

37,51342,620(44,120)

75,979

(1,482)(668)

Balance at end ofcurrent period

220,044

161,783

967,230(1,031)

39,605–1

Equity attributable to owners of parent
Other components of equity
Cash flow
hedgesBalance at beginningof current period

32,797

Costs ofhedging(1,125)

Translationdifferences on
foreign
operations

Total othercomponentsof equity

Total equity
attributable toowners ofparentNoncontrollinginterests

Total equity

8,080

103,107

1,246,314

1,965

1,248,279–

92,826(241)

92,584Comprehensive
incomeProfitOther
comprehensive
income(42,088)351

118,659

55,32555,325(146)

55,178

Total comprehensive
income(42,088)351

118,659

55,325

148,151(388)

147,763

Transfer to nonfinancial assets

11,816

11,816

11,816

11,816

Issuance of newshares–75,02775,027

Dividends–(46,265)

Purchase of treasury
shares

–

(309)

(309)

Disposal of treasury
shares–81,30781,307

Changes throughsales of consolidated
subsidiaries––

Share-based
payment transaction

–

88

88

Transfer from othercomponents ofequity to retained
earnings(2,151)

–

–

–

(6)

200

194

Transactions withownersOther increase(decrease)

(23)

(62)

(46,289)(62)

Total contributions
by owners anddistribution toowners–––(2,151)

109,842

114

109,956

Total transactions
with owners

–

–

–

(2,151)

109,842

114

109,956

Balance at end ofcurrent period

2,526

(773)

126,739

168,097

1,516,124

1,691

1,517,816

2

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. Basis for Preparation of Consolidated Financial Statements(1) Basis of consolidated financial statements
The Company and subsidiaries of the Company (hereinafter collectively referred to as the “Group”)
have prepared their consolidated financial statements in accordance with International Financial
Reporting Standards (hereinafter referred to as “IFRS”), pursuant to the provisions of Article 1201 of the Regulation on Corporate Accounting. The latter part of the Article 120-1 prescribes someomissions of disclosure items required under IFRS.
(2) Consolidation
Number of consolidated subsidiaries: 206
Please see Item 1 of the “Business Report” (“Overview of Operations of the Asahi Group,
section (5) Status of Major Establishments and Principal Subsidiaries”), for a summary of thecurrent status of principal consolidated subsidiaries.
CUB Australia Holding Pty Ltd (Company name changed from ABI Australia Holding Pty
Ltd on August 7, 2020.) and 54 other companies were added to the scope of consolidation thisfiscal year due to the acquisition of their shares.
(3) The equity method
Number of companies accounted for using the equity method: 25
Principal affiliates accounted for using the equity method were Asahi Business Solutions Corp.
and Asahi Beer Communications, Ltd.
(4) Significant accounting policies
1) Financial assets(i)

Initial recognition and measurement
The Group recognizes financial assets when it becomes a party to the contract. Financial assets
purchased or sold in a regular way are recognized on the transaction date. Financial assets aresubsequently classified as financial assets measured at amortized cost or financial assets
measured at fair value.
Financial assets measured at fair value through profit or loss are initially recognized at fair value.
Financial assets measured at fair value through other comprehensive income and financial
assets measured at amortized cost are initially recognized at fair value plus transaction costs
that are directly attributable to the acquisition. However, trade receivables that do not contain asignificant financing component are initially recognized at the transaction price.
a. Financial assets measured at amortized cost
Financial assets are classified as financial assets measured at amortized cost only when
the requirements that the objective of the Group’s business model is to hold assets in order
to collect the contractual cash flows and that the contractual terms of the financial assets
give rise on specific dates to cash flows that are solely payments of principal and intereston the principal amount outstanding are both met.
b. Financial assets measured at fair value
Financial assets that do not satisfy either of the 2 requirements above are classified as
financial assets measured at fair value.
With regard to financial assets measured at fair value, the Group decides to irrevocably
designate each financial instrument as measured at fair value through other comprehensive
income, except for equity instruments held for trading, which must be measured at fair3

value through profit or loss. Equity instruments that are not designated are measured atfair value through profit and loss.
Information on derivatives is provided in “11) Derivatives and hedge accounting.”(ii) Subsequent measurement
Financial assets are subsequently measured based on the classification of the asset as follows:a. Financial assets measured at amortized cost
These financial assets are measured at amortized cost using the effective interest method.
b. Financial assets measured at fair value
These financial assets are measured at fair value at the reporting date.
Changes in fair value of such financial assets are recognized in profit or loss or othercomprehensive income, depending on their classification.
Dividend income arising from equity instruments designated as measured at fair value
through other comprehensive income is recognized in profit or loss. If the fair value
decreases significantly or the equity instrument is disposed of, the accumulated othercomprehensive income is transferred to retained earnings.
(iii) Derecognition
Financial assets are derecognized when the contractual rights to receive cash flows from thefinancial assets expire or are transferred in a transaction in which substantially all the risks andrewards of ownership of the financial assets are transferred to another entity.
(iv) Impairment of financial assets
The Group estimates expected credit losses at the end of each fiscal year for recoverability offinancial assets measured at amortized cost.
For financial instruments of which the credit risk has not increased significantly after initialrecognition, expected credit losses within the next 12 months are recognized as loss allowance.
For financial instruments of which the credit risk has increased significantly after initialrecognition, lifetime expected credit losses are recognized as loss allowance. However, for tradereceivables, loss allowance is always measured based on lifetime expected credit losses.
Interest income for financial assets whose credit risk has significantly increased and there is anobjective evidence of impairment is measured by applying the effective interest rate to the net
carrying amount of the financial asset, less loss allowances.
If all or part of a financial asset cannot be recovered, or is judged to be extremely unlikely tobe recovered, it is deemed to be in default.
In determining whether any objective evidence of impairment exists, the Group uses thefollowing requirements:● Significant financial difficulties of the issuer or the borrower;● A breach of contract, such as default or past due event in interest or principal payments;● The lender(s) of the borrower, for economic or contractual reasons relating to theborrower’s financial difficulty, having granted to the borrower a concession(s) that thelender(s) would not otherwise consider;● It is becoming probable that the borrower will enter bankruptcy or other financial
reorganization; or● The disappearance of an active market for that financial asset because of financial
difficulties.
The Group directly reduces the gross carrying amount of a financial asset when there is no
reasonable expectation of recovering the financial asset in its entirety or a portion thereof.
Subsequent changes in loss allowance are recognized as impairment gains or impairment losses in
profit and loss.

42) Inventories
Inventories are measured at the lower of cost and net realizable value. The cost is calculated mainly
using the weighted-average method for merchandise, finished goods and semi-finished goods, andmainly using the moving-average method for raw materials and supplies. The cost of merchandise,finished goods and semi-finished goods consists of raw material costs, direct labor costs, otherdirect costs and related production overhead costs (based on the normal production capacity). Net
realizable value is determined at the estimated selling price in the ordinary course of business lessthe relevant estimated selling expenses.
3) Property, plant and equipment
Buildings and structures, machinery and vehicles, tools, furniture and fixtures, and land mainly
consist of production and processing equipment and facilities for the head office. Property, plantand equipment are recognized at cost, and carried at cost less accumulated depreciation andaccumulated impairment losses. The cost includes the purchase price, the costs directly related toacquisition of the asset, costs for asset dismantlement and removal and site restoration, andborrowing costs that are required to be capitalized.
Concerning expenditure after acquisition, in cases when it is highly probable that future economic
benefit relating to the item will flow to the Group, and the item has a cost that can be measured
reliably, such costs are recognized either together in the carrying amount of the asset, or when
deemed appropriate, as a separate asset. The carrying amounts of parts that are replaced are
derecognized. Other repair and maintenance costs are recognized in profit or loss in the accounting
period in which the cost was incurred.
Land is not depreciated. The amount of depreciation of other assets is calculated by allocating thecost of each asset less the residual value using the straight-line method over the following major
estimated useful lives:
Buildings and structures
3 to 50 years
Machinery and vehicles
2 to 15 years
Tools, furniture and fixtures
2 to 20 years
Residual values, useful lives and depreciation methods of property, plant and equipment are
reviewed at the end of each fiscal year, and revised where necessary.
Gains or losses on disposal are computed by comparing the carrying amount with the proceedsfrom disposal, and then recognized in profit or loss.
4)

Goodwill and intangible assets(i)

Goodwill
Goodwill is tested for impairment annually, and the carrying amount is the cost lessaccumulated impairment losses. Impairment losses of goodwill are not reversed. Gain or loss
on sales of business operations includes carrying amount of goodwill related to the business
operation.
Goodwill is allocated to cash-generating units or groups of cash-generating units that are
expected to benefit from the business combination.

(ii) Trademarks
Separately acquired trademarks are recognized at cost. Trademarks acquired through businesscombinations are recognized at fair value as of the acquisition date. Trademarks, for which a
certain useful life is determined, except for those with indefinite useful lives, are recorded atcost less accumulated amortization and accumulated impairment losses. The amount ofamortization is calculated by allocating the cost of trademarks using the straight-line method
mainly over the estimated useful life of 20 to 40 years.

5

(iii) Software
Software is carried at cost less accumulated amortization and accumulated impairment losses.
Development costs directly related to design and testing of the Group’s proprietary softwareare recognized as intangible assets only when they are reliably measurable, they are technicallyfeasible, it is highly probable to generate future economic benefits, and the Group has anintention and adequate resources to complete the development and use the assets.
Other development costs that do not satisfy these requirements are recognized as expenses as
incurred. Development costs previously recognized as expenses are not recognized as assets insubsequent fiscal years.
Software is amortized mainly using the straight-line method over the estimated useful life of 5
years.
Expenses related to maintenance of software are recognized as expenses as incurred.
(iv) Other intangible assets
Other intangible assets are initially recognized at cost. The costs of intangible assets acquired
through a business combination and recognized separately from goodwill are measured at fairvalue at the acquisition date. Other intangible assets, for which a certain useful life is determined,
are carried at the cost less accumulated amortization and accumulated impairment losses.
However, some intangible assets (such as leasehold interests in land) are determined to haveindefinite useful lives and are not amortized, because they exist fundamentally as long as thebusiness continues. The amount of amortization is calculated by allocating the cost of eachother intangible asset using the straight-line method over the estimated useful life.
Residual values, useful lives and amortization methods of intangible assets are reviewed at theend of each fiscal year, and revised where necessary.
5) Leases(i) Leases as Lessee
The Group recognizes the right-of-use asset and the lease liability at the commencement dateof the lease. The right-of-use asset is initially measured at cost. The cost of the right-of-use
asset is measured using the amount of the initial measurement of the lease liability adjusted forany lease payments made at or before the commencement date, plus any initial direct costs
incurred and an estimate of costs to dismantle and remove the underlying asset or to restore theunderlying asset or the site on which it is located, less any lease incentives received. In its
consolidated statement of financial position, the Group presents right-of-use assets in “Property,
plant and equipment” and lease liabilities in “Other financial liabilities.”
The right-of-use asset is subsequently depreciated using the straight-line method from thecommencement date to the earlier of the end of the useful life of the right-of-use asset or theend of the lease term. The estimated useful lives of the right-of-use assets are determined on
the same basis as those of the equivalent property, plant and equipment. In addition, the rightof-use asset is reduced by impairment losses, if any, and adjusted for certain remeasurementsof the lease liability.
Lease liabilities are initially measured at the present value of the lease payments that are notpaid at the commencement date, discounted using the interest rate implicit in the lease or, if thatrate cannot be readily determined, the Group’s incremental borrowing rate. Generally, theGroup uses its incremental borrowing rate as the discount rate.
The Group applies the recognition exemption on short-term leases and leases for which theunderlying asset is of low value. Furthermore, the Group has adopted “COVID-19-Related Rent
Concessions (Amendment to IFRS 16).” When the practical expedient is applied, eligible rent
concessions that are direct consequences of the COVID-19 pandemic do not require an
assessment of whether the concessions are lease modifications. The Group applies the practical
expedient consistently to contracts with similar characteristics and in similar circumstances. For
rent concessions to which the Group chooses not to apply the practical expedient or that do not
qualify for the practical expedient, the Group assesses whether there is lease modification.
6

(ii) Leases as Lessor
For leases where the Group is the lessor, it determines whether each lease is a finance lease oran operating lease at contract inception.
When classifying each lease, the Group makes an overall assessment of whether the leasetransfers substantially all the risks and rewards of ownership of the underlying asset. The leaseis classified as a finance lease in cases where the risks and rewards are transferred and as an
operating lease in cases where they are not transferred. As part of this assessment, the Groupconsiders certain indicators, such as whether the lease period covers the major part of theeconomic useful life of the underlying asset.
When the Group is an intermediate lessor, it accounts for its interests in the head lease and thesublease separately. It assesses the lease classification by reference to the right-of-use asset
arising from the head lease, not by reference to the underlying asset.
If the head lease is a short-term lease to which the Group applies the exemption described above,
then it classifies the sublease as an operating lease. In its consolidated statement of financial
position, the Group presents finance leases of the lessor pertaining to the sublease under “tradeand other receivables” and “other non-current assets.”
6) Impairment of non-financial assets
Goodwill and intangible assets with indefinite useful lives are not subject to amortization and aretested for impairment annually. Other non-financial assets are examined for impairment if there isan indication that the carrying amount may not be recovered due to occurrence of an event orchange in the circumstances. When the carrying amount of an asset exceeds its recoverable amount,
an impairment loss is recognized at the excess amount. The recoverable amount is the higher of
its fair value less costs of disposal of the asset and value in use. To assess impairment, an asset isgrouped at the smallest unit which generates separately identifiable cash flows (cash-generating
unit). Non-financial assets for which impairment losses are recognized, excluding goodwill, arereassessed at the end of each fiscal year for the possibility that the impairment losses may bereversed.
7) Provisions
The Group recognizes provisions when it has a present legal or constructive obligation as a resultof past events, it is probable that an outflow of resources will be required to settle the obligation,and the amount can be reliably estimated.
Where there are a number of similar obligations, the probability that an outflow of resources will
be required in settlement is determined taking into account the similar obligations as a whole.
Provisions are recognized even if the likelihood of the outflow is low for 1 item in the similar
obligations.
Provisions are measured as the present value of expenditures expected to be required to settle theobligation, using the pre-tax discount rate that reflects current market assessments of the timevalue of money and the risks specific to the obligation. An increase in provisions due to passageof time is recognized as interest expense.
8)

Employee benefits(i)Post-employment benefits
The Group companies have various pension plans. The Group has adopted defined benefit plans,and certain consolidated subsidiaries have established a retirement benefit trust. In addition tothese plans, certain consolidated subsidiaries have introduced defined contribution plans andretirement benefit prepayment plans.
Defined benefit plans are post-employment benefit plans other than defined contribution plans.
Defined contribution plans are post-employment benefit plans in which the employer pays fixed
contributions to other separate entities and has no legal or constructive obligations to makefurther contributions.

7

In defined benefit plans, the present value of defined benefit obligations is calculated separately
for each plan by estimating the amount of future benefits that employees have earned in
exchange for their service rendered in the prior fiscal years and the current fiscal year anddiscounting that amount. The Group recognizes the amount calculated by deducting fair valueof plan assets from the present value of defined benefit obligations as net defined benefit
liability (asset).
Defined benefit obligations are calculated using the projected unit credit method. The discountrates are determined based on market yields of high quality corporate bonds at the end of the
fiscal year that correspond to the discount period, which is set on the basis of a period up to theestimated date of benefit payment for each future year.
Contributions to the plans are determined based on periodic actuarial calculation and are usually
paid to the funds managed by insurance companies or trust companies.
In case that the Group has a surplus in the defined benefit plans as a result of calculation, thenet defined benefit asset is measured to the extent of the present value of economic benefits
available in the form of a future refund from the plan or a reduction in future contributions to
the plan. In calculating the present value of economic benefits, the Group takes into account
minimum funding requirements applicable to its plan. Economic benefits shall be available to
the Group, if the economic benefits can be realized during the life of the plan or at the time
when the pension liabilities are settled.
The Group recognizes remeasurements of the net defined benefit liability (asset) arising fromthe defined benefit plans in other comprehensive income and immediately reclassifies them toretained earnings.
Contributions to the defined contribution plan are recognized as employee benefits expense inprofit or loss in the period during which employees render their service.
(ii) Short-term employee benefits
Short-term employee benefits are measured on an undiscounted basis and recognized as
expenses when the related service is rendered. Bonuses are recognized as a liability at theamount estimated to be paid under the plans, when the Group has present legal or constructive
obligations to pay as a result of past service rendered by employees, and the amount of
obligations can be reliably estimated.
9) Revenue
The Group recognizes revenue based on the following 5 step approach.
Step 1: Identify the contract with a customer
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognize revenue when the entity satisfies a performance obligation
For sales of goods, as the customer obtains control over the goods upon delivery, the performanceobligation is determined to have been satisfied and revenue is therefore recognized upon deliveryof the goods. Revenue is measured using the net amount after eliminating goods returned, rebatesand discounts.
Because the period from satisfaction of the performance obligation to receipt of consideration isusually within 1 year or less, the Group uses the practical expedient and does not adjust thepromised amount of consideration for the effects of a significant financing component for suchreceivables.
The Group’s view is that acting as a principal if it controls promised goods before transferring
them to a customer and recognizes revenue in the gross amount of consideration to which it expects
to be entitled in exchange for the specified goods to be transferred.

810) Foreign currency translation(i)Functional currency and presentation currency
Items included in financial statements of each company of the Group are measured using thecurrency of the primary economic environment in which the company operates (hereinafterreferred to as the “functional currency”). The consolidated financial statements are presented
in Japanese Yen, which is the presentation currency of the Group.

(ii) Transactions and balances
Foreign currency transactions are translated into functional currencies using the exchange rate
at the date of the transactions. Foreign exchange differences arising from settlement oftransactions and those arising from the translation of monetary assets and liabilities
denominated in foreign currencies using the exchange rate at the end of the fiscal year are
recognized in profit or loss. However, exchange differences arising from financial assets
measured through other comprehensive income, qualifying cash flow hedges and hedges of net
investments in foreign operations are recognized in other comprehensive income.
(iii) Foreign operations
Operating results and financial position of all the foreign operations using a functional currency
that is not the presentation currency are translated into the presentation currency in the ways
described below. Among the foreign operations, there is no company that uses a currency of a
hyperinflationary economy.
a. Assets and liabilities are translated using the closing rate as of the end of the fiscal year.
b. Income and expenses are translated using the average rate (unless the average rate is not areasonable approximation of the cumulative effect of the exchange rates prevailing on thetransaction date, in which case income and expenses are translated using the rate on thetransaction date).
c. All resulting exchange differences are recognized in other comprehensive income andaccumulated in exchange differences on foreign operations, which is other components ofequity.
When a foreign operation is partially disposed of or sold, the exchange differences recognizedin other comprehensive income are recognized in profit or loss as part of a gain or loss on thesale.
11) Derivatives and hedge accounting
Derivatives are initially recognized at fair value on the date when the derivative contract isconcluded and subsequently remeasured at fair value at the end of each fiscal year. The method ofrecognizing gains or losses arising as a result of the remeasurement depends on whether thederivative is designated as a hedging instrument, and if it was designated as a hedging instrument,on the nature of the hedged item.
The Group designates certain derivatives as hedging instruments of cash flow hedges (hedge of aparticular risk associated with recognized assets or liabilities, or highly probable forecast
transactions) and certain borrowings denominated in foreign currencies and bonds denominatedin foreign currencies as hedging instruments of net investments in foreign operations.
The Group documents the relationship between the hedging instrument and the hedged item andthe risk management objective and strategy for exercising the hedging transactions at the inceptionof the transaction. The Group also documents its assessment, both at the inception and on an
ongoing basis, of whether the derivatives or non-derivative hedging instruments used in hedging
transactions are effective in offsetting changes in cash flows of hedged items or foreign exchange
fluctuations in net investments in foreign operations.
The Group assesses the effectiveness of hedges on an ongoing basis, and determines that a hedge
is effective when the requirement that there is an economic relationship between the hedged item
and the hedging instrument, the requirement that the effect of credit risk does not significantly
dominate the value changes that result from the economic relationship, and the requirement that9the hedge ratio of the hedging relationship is the same as the ratio resulting from the quantities of
the hedged item actually hedged and the hedging instrument actually used are all satisfied.
The effective portion of changes in fair value of derivatives that are designated as a hedging
instrument of cash flow hedges and satisfy the requirements as the hedging instrument isrecognized in other comprehensive income. Gains or losses on the ineffective portion are
immediately recognized in profit or loss.
Accumulated gains or losses recognized through other comprehensive income are transferred to
profit or loss in the period during which cash flows arising from the hedged item affect profit orloss. However, when a forecast transaction as the hedged item results in the recognition of nonfinancial assets (e.g. inventories or property, plant and equipment), gains or losses previously
deferred in other comprehensive income are transferred and included in the initial measurementof the cost of the assets. The deferred amount is eventually recognized as cost of sales forinventories, and as depreciation expense for property, plant and equipment.
Application of hedge accounting is discontinued prospectively when the hedge no longer qualifies
for hedge accounting due to expiry, sale of the hedging instrument and other reasons. When thehedged future cash flows are still expected to occur, accumulated gains or losses recognized inother comprehensive income remain as accumulated other comprehensive income. When aforecast transaction is no longer expected to occur and in other cases, accumulated gains or losses
recognized in other comprehensive income are immediately transferred to profit or loss.
With regard to derivatives or non-derivative hedging instruments, including borrowings, held forhedging foreign exchange risk in net investments in foreign operations, the portion of foreignexchange differences deemed effective as a hedge is recognized in other comprehensive income
as hedging of net investments in foreign operations. Of exchange differences for derivatives or
non-derivative hedging instruments, the portion deemed ineffective as a hedge and not subject tothe assessment of hedging effectiveness are recognized in profit or loss.
Accumulated gains or losses recognized in other comprehensive income through net investment
hedges are transferred to profit or loss upon disposal of foreign operations.
12) Accounting for consumption taxes
Consumption taxes that are received from customers and paid to tax authorities are excluded fromrevenue, cost of sales, and expense on the consolidated statement of profit or loss.
(5) Changes in accounting policies(Leases)
The Group has early adopted “COVID-19-Related Rent Concessions (Amendment to IFRS 16)”
issued on May 28, 2020. The amendment introduces an optional practical expedient for lease
contracts in which the Group is the lessee – i.e. for lease contracts to which the practical expedientis applied, eligible rent concessions that are direct consequences of the COVID-19 pandemic do
not require an assessment of whether there is lease modification. The Group applies thisamendment retrospectively. The amendment has no impact on retained earnings at January 1, 2020.

10

2. Notes to Consolidated Statement of Financial Position(1) Pledged assets and secured liabilities
The following assets are pledged as collateral for borrowings and other current liabilities of ¥2,522
million.
Property, plant and equipment¥1,038 million

Cash and cash equivalents¥284 million(2) Accumulated depreciation on property, plant and equipment(3) Bad debt provisions directly deducted from assets
Trade and other receivables¥963,835 million¥7,029 million

Other financial assets¥874 million(4) Contingent liabilities
Guarantees:¥962 million

3. Notes to Consolidated Statement of Changes in Equity(1) Total number of the issued shares as of the end of this fiscal year
Common stock

507,003,362 shares(2) Dividends during this fiscal year
1) It was resolved at the 96th Annual General Meeting of Shareholders of March 25, 2020
as follows:
Dividends on common stock
Total amount of dividends:¥21,989 million

Dividend per share:¥48

Record date:

December 31, 2019

Effective date:
March 26, 2020
Total amount of dividends includes dividends of ¥1 million for shares of the Company held by
Custody Bank of Japan, Ltd. as the trust assets of a stock compensation plan.
2)

It was resolved at the Board of Directors Meeting of August 5, 2020, as follows:
Interim dividends on common stock
Total amount of interim dividends:¥24,279 million

Interim dividend per share:¥53

Record date:June 30, 2020

Effective date:

September 1, 2020

Total amount of interim dividends includes dividends of ¥1 million for shares of the Company
held by Custody Bank of Japan, Ltd. as the trust assets of a stock compensation plan.

11

(3) Dividends after the end of this fiscal year
The following item has been placed on the agenda for approval at the 97th Annual General Meetingof Shareholders scheduled for March 25, 2021.
Dividends on common stock
Source of dividends:

Retained earnings

Total amount of dividends:¥26,861 million

Dividend per share:¥53

Record date:

December 31, 2020

Effective date:

March 26, 2021

Total amount of dividends includes dividends of ¥5 million for shares of the Company held by
Custody Bank of Japan, Ltd. as the trust assets of a stock compensation plan.
4. Notes on Financial Instruments(1) Status of financial instruments
1) Capital management
The Group’s purpose for capital management is to maintain its ability to continue as a going
concern in order to provide returns to shareholders, grant benefits to other stakeholders andmaintain the most appropriate capital structure for reducing capital cost.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends
paid to shareholders, redeem the capital to shareholders, issue new shares, or sell assets to reduce
debts.
The Group monitors the capital based on the capital and liabilities ratio. This ratio is calculated by
dividing the amount of net liabilities by the capital. The amount of net liabilities is calculated bydeducting cash and cash equivalents from interest-bearing debts. The capital shall be the “equity”
presented in the consolidated statement of financial position (equity attributable to owners ofparent).
2) Risk management
The Group’s activities are exposed to various financial risks such as market risks (including
foreign exchange risk, price risk and interest rate risk), credit risks and liquidity risks. The Group’s
risk management policy focuses on the unpredictability of financial markets and minimize thepotentially adverse impact on the Group’s financial performance. The Group uses derivativetransactions to hedge certain risk exposures.
The Company and its principal consolidated subsidiaries procure necessary funds via loans fromfinancial institutions and by issuing commercial papers and bonds, while taking into account thebalance between direct and indirect financing or the balance between short- and long-term debt
from the perspective of fund procurement cost and risk diversification in response to changes inthe business environment. To use funds efficiently in the entire Group, the Company and its
principal consolidated subsidiaries have introduced a cash management system to reduce
consolidated interest-bearing debt. If surplus funds are generated temporarily, the Company
invests it only in safe financial instruments.
The Group uses derivative transactions to the extent of balances of foreign currency denominatedassets and liabilities and bonds and borrowings, as means to mitigate foreign exchange risk, pricerisk of raw materials and others and interest rate risk, as well as to reduce fund procurement cost.
When using derivative transactions, in principle, the Company trades only with financial
institutions with high credit ratings.
At the Company, the Finance Section is in charge of executing and managing derivativetransactions, in accordance with internal rules.

12

Contracts on each derivative transaction are entered into after approval is received in accordancewith the Company’s authorization criteria. The Finance Section reviews the status of derivativetransactions including the content and balances, and reports it to the General Manager of the
Finance Section and the officer in charge of finance as needed.
The consolidated subsidiaries also enter into such agreements in accordance with the Group’s
authorization criteria, and the Company reviews their status based on reports submitted by themon a regular basis.
(i)

Market risk
a. Foreign exchange risk
The Group conducts business activities internationally and is exposed to foreign exchange
risk mainly related to US dollar, Euro, Czech Koruna and Australian dollar. Foreignexchange risk arises from forecast transactions such as future purchase, sale, financing andrepayment or assets and liabilities that have already been recognized.
The Group uses foreign exchange contracts and currency swaps to mitigate foreignexchange risk. Hedge accounting is applied to the transactions that qualify for hedge
accounting. When designating hedging instruments, the Group classifies the currency
basis spread of currency swaps and the forward element of forward exchange contracts ascosts of hedging for accounting treatment, and records them as costs of hedging, which
are an independent item of other components of equity.
Although receivables, payables and others denominated in a foreign currency have a riskof foreign exchange fluctuations, the impact is limited since the risk is offset with theexchange contracts.
b. Price risk
The Group is exposed to price risk of equity instruments since it holds investments
classified as the category measured at fair value in the consolidated statement of financial
position. To manage price risk arising from investments in equity instruments, the Groupregularly keeps track of fair value, financial conditions of issuers and others, and also
reviews the overall status on an ongoing basis.
The Group has no equity instruments held for short-term trading and does not intend toactively trade these investments.
Furthermore, the Group is exposed to price risk of raw materials since prices of major raw
materials used in its products fluctuate according to weather, natural disaster and otherfactors. The Group engages in commodity swap transactions to mitigate risks offluctuations in raw materials prices. Although commodity swap transactions used by theGroup have risks of fluctuations in market prices of commodities, price risk is limited
because these risks are offset with risks of fluctuations in market prices of commodities inassociation with trade payables of those commodities that the Group has.
c. Interest rate risk
The Group raises funds with variable interest rates and is exposed to interest rate risk.
Interest rate risk mainly arises from non-current borrowings.
The Group uses interest rate swaps, which substantially fix interest rates, to mitigate
interest rate risk. Hedge accounting is applied to the transactions that qualify for hedge
accounting.

(ii) Credit risk
The Group is exposed to credit risks for trade receivables (notes and accounts receivable-trade),other receivables (accounts receivable-other) and other financial assets (operating loans andothers).
In accordance with the accounting regulations, the Group regularly monitors the status of major
business partners for trade receivables and operating loans and routinely checks the
management status of deadlines and balances for each business partner. The Group also
monitors credit-impaired financial assets and their collection status.

13

When executing derivative transactions, in principle, the Group trades only with financial
institutions with high credit ratings to mitigate credit risk.
The Group classifies receivables based on credit risk profile to calculate loss allowance.
For trade receivables, loss allowance is always recognized at the amount equal to lifetime
expected credit losses. For receivables other than trade receivables, loss allowance is recognizedat the amount equal to 12-month expected credit losses, in principle. However, in cases such as
overdue, because the credit risk is considered to have significantly increased from the initialrecognition, loss allowance is recognized at the amount equal to lifetime expected credit losses.
The amount of loss allowance is calculated as follows:● Trade receivables
The simplified approach is applied. The Group categorizes receivables according to credit
risk profile of the counterparty and calculates loss allowance by multiplying thereceivables by the provision rate, which is determined by adding projection of future
economic conditions and others to the historical rate of credit losses calculated according
to the category.
● Receivables other than trade receivables
The general approach is applied. Loss allowance for receivables for which the credit risk
is not considered to have significantly increased is calculated by multiplying the carrying
amount by the provision rate, which is determined by adding projection of future economic
conditions and others to the historical rate of credit losses for similar assets. For assets forwhich the credit risk is considered to have significantly increased and credit-impaired
financial assets, loss allowance is calculated as difference between the amount of thepresent value, which is computed by discounting estimated future cash flows using theoriginal effective interest rate of the asset, and the carrying amount.
(iii) Liquidity risk
The Group raises funds via loans and by issuing commercial papers and bonds, and is exposed
to liquidity risk, which means there is a possibility the Group fails to make payment on the due
date due to deterioration in the fund procurement environment.
Since the Company and its principal consolidated subsidiaries have introduced the cash
management system, the Company manages liquidity risks of those companies participating inthis system.
Based on reports from each Group company, the Company creates its cash management planand updates the plan on a timely basis. The Group monitors an ongoing forecast for funddemand, while always maintaining sufficient margin in the unused portion of the contractual
credit line and ensuring that all loan agreements do not conflict with the borrowing limits orcovenants (if applicable). In these forecasts, the Group takes into account its borrowing andfinancing plan, compliance with covenants, adherence to internal targets for the statements offinancial position ratio as well as applicable external regulatory and statutory requirements,
such as a regulation of currency, if any.
Surplus that the Company and its principal consolidated subsidiaries hold in excess of thebalance necessary for management of working capital is managed at the Group level under the
cash management system. The Group chooses financial instruments with appropriate maturity
and liquidity, and makes investments in current deposits, time deposits, money market deposits
and marketable securities to ensure a sufficient margin determined in the above forecast.

14

(2) Fair value of financial instruments
In fair value measurement, the Group uses observable market data whenever available. The fairvalue measurement is categorized into any of the following levels based on the level of the input:
Level 1: Input consisting of unadjusted quoted prices in active markets for identicalassets and liabilities
Level 2: Input consisting of directly or indirectly observable prices other than market
prices used in level 1
Level 3: Input that is not based on observable market data
Reclassification between levels in the fair value hierarchy is recognized on the date of the event orchange in circumstances that caused the reclassification.
The carrying amounts and fair values of financial instruments not measured at fair value are as
follows:(million yen)
Carrying amount
Fair value
Long-term loans receivable
Long-term borrowings

1,649

1,572

190,143

190,069

Bonds
961,404
973,579
Each of the amounts in the above table includes the portion scheduled to be collected, repaid, orredeemed within 1 year.
Financial instruments for which the carrying amount is reasonably approximate to the fair value,and lease liabilities, are not included in the table above.
The fair value of long-term loans receivable is calculated by discounting the expected amount ofprincipal and interest receivable by the interest rate expected if a similar new loan were to be issued,
thereby deriving the present value.
The fair value of long-term borrowings is calculated by discounting the total amount of principal
and interest by the interest rate expected if a similar new borrowing were to be taken out, thereby
deriving the present value.
The fair value of bonds is set to market prices when market prices are available.
In the above fair value measurement, bonds are classified into Level 2, while others are classified
into Level 3. For bonds in Level 2, fair value is estimated using the reference trading statistics ofJapan Securities Dealers Association and others. Fair value of financial instruments in Level 3 ismeasured by discounting contractual cash flows using the market interest rate, and the differencewith carrying amount is due to a difference between the market interest rate and the contractualinterest rate.
5. Per Share Information(1) Equity attributable to owners of parent per share(2) Basic earnings per share¥2,992.06¥196.52

6. Notes on Business Combinations(1) Outline of the transaction
1) Name and business of the acquiree
NameBusiness description

CUB Australia Holding Pty Ltd
Holding company
54 other companies: Manufacturing, sales and distribution of beer and cider, etc.

152) Reasons for the business combination
The group philosophy “Asahi Group Philosophy” (hereinafter referred to as the “AGP”) articulates
Asahi’s vision of “Be a value creator globally and locally, growing with high-value-added brands.”
Asahi also aims to drive sustainable group growth centered on promoting premiumization andexpanding cross-selling initiatives in Overseas Business under Asahi’s Medium-Term
Management Policy renewed based on the AGP.
As part of the strategy, Asahi aims to establish a firm global management platform centered on
three regions of operation: Japan, Europe, and Australia by acquiring CUB business and otherrelated assets.
The CUB business has remarkable capabilities for marketing and product development as well as
the top brands in the Australian beer market such as “Carlton” and “Great Northern.” In addition,
the CUB business has realized stable profitability with its firm brand portfolio and efficiency
improving method.
In Australia, where economic growth has continued, Asahi has enhanced business acquisitions
since 2009 and promoted sales not only in Soft Drinks Business, but also in Alcohol Beverages
Business with Asahi’s global premium brands such as “Asahi Super Dry,” “Peroni” and “Pilsner
Urquell.” Going forward, combining Asahi’s existing business in Australia, which is ofcomparable size to CUB, with the CUB business, Asahi will make use of economies of scale inareas such as procurement as well as its expansive distribution network. In addition, Asahi will
work to secure outstanding human resources by promoting talent management both globally andlocally.

3) Acquisition dateJune 1, 2020
4) Legal form of the business combination
The Group purchased shares with cash consideration
5)

Ratio of voting rights acquired
Name

Ratio of voting rights

CUB Australia Holding Pty Ltd

100.00%(2) Effect on the Group
Revenue and operating profit arising from CUB Australia Holding Pty Ltd and other 54 companies
after the acquisition date was ¥165,326 million and ¥31,909 million, respectively.
(3) Consideration transferred and its details
The consideration transferred was ¥1,168,241 million, all of which was paid in cash.
(4) Acquisition-related costs
Acquisition-related costs amounted to ¥5,880 million were included in “Selling, general andadministrative expenses.”16

(5) Acquisition-date fair value of assets and liabilities and goodwill(million yen)
Total current assets
54,404
Total non-current assets

343,195

Total assets

397,599

Total current liabilities(45,971)

Total non-current liabilities(116,528)

Total liabilities(162,500)

Consideration paid

(1,168,241)

Goodwill

933,142

The amounts of goodwill and the assets acquired and liabilities assumed at the date of the businesscombination are provisional as of the end of this fiscal year because the review to verify theidentifiable assets and liabilities at the acquisition date is still in progress and the allocation of
consideration is yet to be completed.
Goodwill is primarily composed of synergies with the Group’s businesses and excess profitability
that are expected to occur from the acquisition.
7. Additional Information(Accounting estimates associated with the impact of the spread of COVID-19)
The estimates and underlying assumptions are reviewed on an ongoing basis. The effect of a changein accounting estimates is recognized in the accounting period in which such change occurs as wellas the accounting periods to be affected in the future.
As of the end of this fiscal year, the Group has also made estimates and judgments that havesignificant impact on the amounts of the consolidated financial statements, taking into account the
impact of the spread of COVID-19.
8. Significant Subsequent Events
With regard to the partial sale of beer and cider brands (the “Sale”) to Heineken N.V. (“Heineken”),
Asahi Holdings (Australia) Pty Ltd – the subsidiary controlling Oceania business operations under
the Group’s corporate umbrella – obtained the approval from the Australian Competition &Consumer Commission (“ACCC”) on November 17, 2020 and from the Foreign Investment Review
Board (“FIRB”) on December 21, 2020.
The brands subject to the divestment were the following brands purchased from Anheuser-BuschInBev (“AB InBev”) on June 1, 2020.
1) Beer brands: “Stella Artois” and “Beck’s” (both licensed from AB InBev)
2) Cider brands: “Strongbow,” “Little Green” and “Bonamy’s”
The Sale is in relation to “Announcement regarding completion of acquisition of the Australianbusiness of Anheuser-Busch InBev and shelf registration of newly issued stock” that was disclosed
on June 1, 2020 pursuant to the remedy approved by ACCC at the time of the purchase of theAustralian businesses of AB InBev completed on June 1, 2020.
The Group satisfied the conditions precedent to execute the transaction, including the approvals from
ACCC and FIRB, and completed the sale of these brands to Heineken on January 5, 2021.
As of the end of this fiscal year, these brands have been recorded using their fair value less costs ofdisposal as ¥17,652 million in “Assets held for sale” and ¥134 million in “Liabilities directly
associated with assets held for sale.”
The effect of the Sale on the consolidated financial results for the fiscal year ending December 31,
2021 is immaterial.
179. Other
The stated amounts are the figures after truncating fractions less than the representative unit.

18

NON-CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETSFor the year ended December 31, 2020

(million yen)
Shareholders’ equity
Capital surplus

Retained earnings
Other retained earnings

Share capital Legal capital Other capitalsurplussurplus
Balance at beginningof current period

182,531

50,292

37,68537,685

101,391

Total capitalsurpluses

151,683

Generalreserve

Retainedearnings
brought
forward

Total retained
earnings

195,000

406,846

601,846

Changes of items
during period
Issuance of newshares

37,685

Dividends(46,269)(46,269)

Profit147,806

147,806

Purchase of treasury
shares
Disposal of treasury
shares

5,141

5,141

Net changes of items
other thanshareholders’ equity
Total changes of items
during period

37,68537,6855,141

42,827–

101,537

101,537

Balance at end ofcurrent period

220,216

87,977

106,533

194,511

195,000

508,383

703,383

Shareholders’ equity

Balance at beginningof current period

Treasury shares

Total
shareholders’equity(77,011)859,049

Valuation and translation adjustments
Valuation
Total valuationdifference on Deferred gains or
and translation
available-for- losses on hedges
adjustments
sale securities
3,641

33,95437,596

Total net assets

896,646

Changes of items
during period
Issuance of newshares75,37075,370

Dividends(46,269)(46,269)

Profit147,806

147,806

Purchase of treasury
shares

(309)

(309)

(309)

Disposal of treasury
shares76,28981,431

81,431

Net changes of items
other thanshareholders’ equity(4,099)(37,039)(41,139)(41,139)

Total changes of items
during period

75,979258,029(4,099)(37,039)(41,139)

216,890

Balance at end ofcurrent period(1,031)

1,117,079(458)(3,085)(3,543)

1,113,536

19

NOTES TO THE NON-CONSOLIDATED FINANCIAL STATEMENTS
1. Notes to Significant Accounting Policies(1) Valuation basis and method for securities
Shares in subsidiaries and affiliates:
Stated at cost based on the moving-average method
Available-for-sale securities
Securities with market value:
Carried at the average market value for the month immediately preceding the balance sheet date(related valuation differences are directly charged or credited to net assets, and the cost of
securities sold is computed by the moving-average method.)
Securities without market value:
Stated at cost based on the moving-average method(2) Valuation basis and method for derivatives
Market price method(3) Depreciation methods for non-current assets
Property, plant and equipment (excluding leased assets):
Property, plant and equipment are depreciated using the straight-line method.
The estimated useful lives of the assets are based on the same standards as those specified in
the Corporation Tax Act.
Intangible assets (excluding leased assets):
Intangible assets are amortized using the straight-line method.
The estimated useful lives of the assets are based on the same standards as those specified in
the Corporation Tax Act.
Software for internal use is amortized by the straight-line method over a useful life of 5 years.
Trademark right is mainly amortized over 20 years using the straight-line method.
Leased assets:
Finance leases that do not transfer ownership rights are amortized to a residual value of zerousing the straight-line method, with the lease period as the estimated useful life.
(4) Accounting criteria for allowances
Allowance for doubtful accounts:
The allowance for doubtful accounts consists of the individually estimated uncollectible amounts
with respect to certain identified doubtful receivables and the amounts calculated using the rate ofactual collection losses with respect to the other receivables.
Provision for bonuses:
A provision for bonuses is provided to prepare for the bonus payment to employees at theestimated amount applicable to this fiscal year out of the estimated future bonus payment amount.
Provision for bonuses for directors (and other officers):
A provision for bonuses for directors (and other officers) is provided to prepare for the bonus
payment to officers at the estimated amount applicable to this fiscal year out of the estimatedfuture bonus payment amount.

20

(5) Hedging accounting method
1) Hedging accounting method
The Company defers gains or losses on its hedges.
For foreign exchange contracts and currency swaps, the Company allocates differences in thevalues of hedging instruments when such hedges meet all requirements for such allocations. Forinterest rate swaps, the Company applies exceptional treatment when the swap in question meetsthe conditions for application of such exceptional treatment.
2) Hedging instruments and hedged items
Hedging instruments:

Foreign exchange contracts, interest rate swaps, currency
swaps, borrowings denominated in foreign currencies andbonds denominated in foreign currencies

Hedged items:

Forecasted foreign currency transactions, loans receivable inforeign currencies, interest on borrowings, bonds denominatedin foreign currencies and investments in foreign subsidiaries

3)

Hedging policy

Derivatives are used to avoid risks associated with fluctuations in foreign exchange markets andin interest rates and to reduce the costs of financing. It is the Company’s policy not to engage in
speculative transactions that deviate from real demand or in highly leveraged derivatives.
4) Method of evaluating the effectiveness of hedging
The Company assesses the effectiveness of its hedges by comparing changes in the market valuesof the hedging instruments and of the hedged items over the entire period of the hedge.
When the Company allocates differences in the values of hedging instruments or when it accounts
for the value of swaps under exceptional treatment, these determinations allow it to forgo
evaluation of the effectiveness of hedges in these cases.
(6) Other significant items associated with the preparation of non-consolidated financial
statements
Treatment of consumption taxes
Consumption taxes are excluded from the statement of income, except in the case of nondeductible consumption taxes related to non-current assets that are charged when incurred.
2.

Notes to the Non-Consolidated Balance Sheet(1) Accumulated depreciation on property, plant and equipment¥31,125 million(2) Contingent liabilities
1)

Guarantees against bank loans

Guarantees:2)¥10,366 million

Guarantees against derivatives

Guarantees:¥111 million(3) Monetary claims and obligations with associates (excluding those classified separately in
the Balance Sheet)
Short-term monetary claims on associates:¥256,044 million

Short-term monetary obligations to associates:¥146,499 million

21

3.

Notes to the Non-Consolidated Statement of Income(1) Gain on sales of shares of subsidiaries and associates
The gain on sales of shares of subsidiaries and associates is the gain on sale for the transfer ofshares when the Company responded to the acquisition of own shares of the Company’s
subsidiary Asahi Soft Drinks Co., Ltd., which operates a production and marketing of soft drinks
business in Japan.
(2) Transactions with associates
Operating revenue:¥191,222 million

Operating expenses:¥8,729 million

Transactions other than operating transactions:
4.

¥902 million

Notes to the Non-Consolidated Statement of Changes in Net Assets
Treasury shares(shares)Number of shares
Increase during Decrease during Number of shares
Type of stock
as of Jan. 1, 2020
this fiscal year
this fiscal year as of Dec. 31, 2020
Common stock
25,509,372
79,04025,300,458
287,954(Outline of reason for change)
The increase in the number of shares was the result of the following:
Increase resulting from purchases of Less-than-One-Unit Shares from shareholders uponrequest:4,340 shares
Increase resulting from purchase by the trust for the share-based payment plans: 74,700 shares
The decrease in the number of shares was the result of the following:
Decrease resulting from sales of Less-than-One-Unit Shares to shareholders uponrequest:458 shares
Decrease resulting from disposal of treasury shares through public offering 25,300,000 shares
Treasury shares include 110,442 shares of the Company’s common stock held by Custody Bankof Japan, Ltd. as the trust assets of a stock compensation plan.

22

5. Notes to Tax Effect Accounting(1) Breakdown of main reasons for the accrual of deferred tax assets and liabilities(Deferred tax assets)
Shares of subsidiaries and associates due to restructuring:
Allowance for doubtful accounts, in excess of tax-deductible amount:
Loss on valuation of shares of subsidiaries, non-tax deductible:
Loss on valuation of capital contributions for subsidiaries, non-tax
deductible:
Loss on valuation of investment securities, non-tax deductible:
Tax loss carry forwards
Deferred losses on hedges
Deferred loss on transfer of business between consolidated corporations:
Others:Subtotal deferred tax assets:
Valuation allowance:
Total deferred tax assets(Deferred tax liabilities)
Deferred gain on transfer of business between consolidated corporations:
Others:Total deferred tax liabilities
Net deferred tax assets¥16,703 million¥1,757 million¥32,289 million¥4,558 million¥3,522 million¥1,534 million¥1,150 million¥791 million¥611 million¥62,920 million¥(43,232) million¥19,688 million¥(5,026) million¥(12) million¥(5,039) million¥14,648 million(2) Breakdown of main items which caused the difference between the statutory effective tax
rate and the effective tax rate after adoption of tax effect accounting
Statutory effective tax rate:(Adjustments)
Permanent difference (non-deductible), including entertainment expenses:
Valuation allowance:
Permanent difference (non-taxable), including dividend income:
Others:
Effective tax rate after adoption of tax effect accounting:23

30.62%
3.34%
2.88%(37.81)%(0.01)%(0.98)%

6. Notes to Related Party Transactions
Subsidiaries and affiliates
Type
Subsidiary

Subsidiary

Subsidiary

Subsidiary

Subsidiary

Subsidiary

Company
Asahi
Breweries,
Ltd.

Asahi Soft
Drinks Co.,
Ltd.

Percentage
of votingrights held

Relationship
Description
with relatedof transaction
party

100% direct Interlocking
ownership of directors/
corporate
auditors

100% direct Interlocking
ownership of directors/
corporate
auditors

Transaction
amount(million yen)
Balance as
Account
of Dec. 31,
item
2020

Operatingrevenue(Note 1)

84,057Other(current
assets)4,472

Loaning
funds(Note 2)

(14,672)

Short-term
loans
receivable

132,333

Operatingrevenue(Note 1)49,665(Note 8)Other
(current
assets)2,374

Loaning
funds(Note 2)

2,533

Short-term
loans
receivable

25,231

5,928

Short-term
loans
receivable

33,726

49

Asahi Group
Foods, Ltd.

100% direct Interlocking
ownership of directors/
corporate
auditors

Loaning
funds(Note 2)

Asahi
Breweries
Europe Ltd

100% directownership

Operatingrevenue(Note 1)40,944Other(current
assets)Borrowing offunds(Note 3)(36,102)

Short-termborrowings–

Deposits
received(Note 3)35,264

Deposits
received

63,081

Deposits
received(Note 3)62,201

Deposits
received

63,732

Guarantees
for liabilities(Note 4)

6,307

–

–

Subscription
to capitalincrease(Note 5)

1,186,864––

Outsourcing
indirect
services,
etc.
(Note 6)

3,812

–

Asahi
100% direct Interlocking
Holdings
ownership of directors/(Australia) Pty
corporate
Ltdauditors

Asahi
Professional
Management
Co., Ltd.

100% direct Interlocking
ownership of directors/
corporate
auditors

SubsidiaryAccruedexpenses1

Asahi Quality 100% direct Interlocking Outsourcing& Innovations, ownership of directors/ research
Accrued
3,801
588
Ltd.
corporateservices, etc.
expensesauditors(Note 7)
Terms and conditions of transaction and policy on determination thereof
Note 1: Operating revenue is determined in accordance with certain reasonable standards in order to provide
supervision and guidance, etc. regarding business management.
Note 2: The interest rate for the loans receivable is reasonably determined, taking the market interest rate into
consideration.
For the transaction amount, the amount of net increase (decrease) in this fiscal year is stated.
Note 3: The interest rates for the deposits received and short-term borrowings are reasonably determined, taking themarket interest rate into consideration.
For the transaction amount, the amount of net increase (decrease) in this fiscal year is stated.
Note 4: The Company guaranteed bank loans in the amount of AUD80 million.
24

Note 5:Note 6:Note 7:Note 8:Subscription to capital increase represents the subscription to capital increases carried out by the subsidiary.
The amount of outsourced indirect services, etc. is determined based on certain reasonable standards.
The amount of outsourced research services, etc. is determined based on certain reasonable standards.
Asahi Soft Drinks Co., Ltd. was the surviving company in an absorption-type merger with CHINA FOODSINVESTMENT CORP conducted on December 1, 2020. The amounts of the transactions carried out withCHINA FOODS INVESTMENT CORP before the merger are included in the stated amount.

7. Notes to per Share Information(1) Net assets per share:(2) Earnings per share (Profit per share):8.

¥2,197.56¥312.91

Other(1) Application of consolidated taxation system
In this fiscal year, the Company applied for approval of the adoption of the consolidated taxation
system and it is to be adopted from the following fiscal year. Therefore, from this fiscal year, theCompany has adopted an accounting method that assumes the adoption of the consolidated taxation
system for tax effect accounting. As for items regarding the transition to the group tax sharing
system introduced in the “Act Partially Amending the Income Tax Act” (Act No. 8 of 2020), theCompany has not applied the provisions of paragraph 44 of the “Guidance on Accounting Standard
for Tax Effect Accounting” (Accounting Standards Board of Japan (ASBJ) Guidance No. 28,
February 16, 2018) as allowed by the provisions of paragraph 3 of the “Tax Effect Accounting for
the Transition from the Consolidated Taxation System to the Group Tax Sharing System” (ASBJ
PITF No. 39, March 31, 2020). Accordingly, amounts of deferred tax assets and deferred tax
liabilities are determined in accordance with the provisions of the tax law before the revision.
(2) Unit of measurement
The stated amounts are the figures after truncating fractions less than the representative unit.

25