Asahi Breweries, Ltd.
Future Management Strategy

March 2021
President and Representative Director
Kenichi Shiozawa

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

1. Vision and Management Strategy
2. 2021 Initiatives

3. Efforts to Enhance Profitability
4. Sustainability-Related Initiatives

VisionA great future
for all of our customers
The value Asahi Breweries provides to customers
Creating more moments of happiness for our customers byleveraging our strengths and technologies to deliver on ourgreat taste promise through creating products and services
that surpass expectationsCopyright © ASAHI GROUP HOLDINGS. All rights reserved.

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Value-Focused Management

The Asahi Group Philosophy
Our Mission“Deliver on our great taste promise and bring more fun to life.”
The Asahi Breweries Vision“A great future for all of our customers”

Long-Term Management Policy“Transform toward Value-Focused Management”③ Achieve growth① Strengthen earnings power② Invest earned
・Improve overall product mix
capital・Management streamlining

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

④ Sustainedgrowth・Create new markets andnew value・Sustainability

2Changes to External Environment, Our Strengths

Changes to external environment
Liquor tax revisions

Increasing consumer healthconsciousness

Polarization of consumption
Diversification of consumer values

Contraction of on-premise market

Lifestyle changes (includingchanges to workstyles)

Increased interest in
ESG-related considerations

Our strengths◆ Strong brand portfolio in all product categories◆ Ability to successfully implement the strategies we formulate◆ High-quality manufacturing technologies and efficient supply chain management◆ Co-creation capabilities based on strong relationships with business partners

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

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1. Vision and Management Strategy
2. 2021 Initiatives

3. Efforts to Enhance Profitability
4. Sustainability-Related Initiatives

Overview and Direction for Asahi Breweries’ Business2020 Overview◆ Promoted prioritization of investment in core brands and revision of cost structure

in light of the COVID-19 pandemic◆ Challenges included revitalization of beer market and offering new value following
liquor tax revisions, and structural reform of sales channels

Direction for 2021
◆ Strengthening of new value offered through core brands, creation of new markets
in anticipation of changes in consumption structure◆ Promotion of fundamental earnings structure reforms, including improvements inchannel/category mix

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

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Initiatives for Asahi Super Dry◆ Initiatives for Asahi Super Dry
Invigoration of Asahi Super Dry and enhancement of brand value by offering thehighest levels of quality and new consumption opportunities
・ Off-premise: Strengthen appeal of beer’s great taste and enjoyableness through new containers and byproviding new drinking opportunities and experiences・ On-premise: Support for enhancing keg draft product quality, strengthening appeal of the brand throughpremium drinking experiences, etc.

"Savor the Freshness"packs fresh from thebrewery

Enhancing quality of
on-premise keg beer

Asahi Super Dry
Nama Jokki Can(Draft Beer Can)Tap for home use「ASAHI SUPER DRY
VIRTUAL BAR」

The highest levels of quality
New consumption opportunities
Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

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Features of “Asahi Super Dry Draft Beer Can”

Unopened

Finer foam head

Immediately
after opening

Malt aroma &pour volume

Nama Jokki Can

Normal can

Draft Beer
Can

Normal can,poured into glass

Draft BeerCan

Normal can

Approx. 0.1mm

Approx. 0.5mm

Approx. 90ml

Approx. 65ml

Several seconds
after opening

Carbonation pressure

Tap→ glass

Draft Beer
Beer Normal can
Draft
CanCan→ glass

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Innovations Behind “Asahi Super Dry Draft Beer Can”

Foam-producing can wall *Patent pending

Close-up cross section

Normal canInterior wall of can(foam-production
mechanism

Aluminum only, smoothflat surface

Foam produced due to pressure
difference when opened (onlyvery small amount of foam)

Wide-mouth lid with safe edges
・ Unique Japanese technology
・ This kind of edge processing has been used
for cans of high-priced food products etc.,
but this is first time it has been used on
beverage cans

Normal widemouth can

Sharp edges

Can wallDraft Beer Can

Aluminum with special
coating
Caldera-shaped
protrusions**Since coating is baked on,
there is no risk of coating
dissolving

Foam volume boosted by roughcoating
Foam wells upward

Interior coating film

Can wall

Safe edges
on both lid& can rim

Safe edges toprevent cuts
to hands andmouth

Draft BeerCan
Safe edges

7Initiatives for Happoshu & New genre◆ Initiatives for Happoshu & New genre
・ Strong portfolio of brands meeting needs of health-conscious consumers, and consumers
seeking sharp and refreshing or rich and flavorsome beverages
Health-consciousness

Sharp and refreshingRich and flavorsome

2020 volume(YoY)2020 volume(YoY)2020 volume(YoY)

11.65 M Cases（＋5.1％）

17.68 M Cases（▲6.2％）

7.82 M Cases（－）

2021 forecast(YoY)

2021 forecast(YoY)

2021 forecast(YoY)

12.50 M Cases（＋7.3％）

17.80 M Cases（＋0.7％）

11.50 M Cases（＋47.1％）Further boosting of consumer brandrecognition through first TV
commercials in 3 years with the aimof expanding customer base

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

Boosting year-round sales
promotion efforts to achieve
competitive advantage within“sharp and refreshing” category

Brand investment exceeding thatat the time of the release of Asahi
the Rich in 2020 with the aim ofachieving further growth andexpanding customer base

8Responsible drinking-related initiatives

Toward a society where people respect diversity of drinking styles“Smart Drinking”
Eliminate harmful drinking,expand drinking style options for abroad range of people in various
situations, and help bring about asociety that is more accepting ofdrinking style diversity◆ Online disclosure of net alcohol quantities (in grams) by June 2021
For canned products such as major beers and RTDs, start disclosing of net alcohol quantities from the end of March 2021.

◆ Aiming for a sales volume ratio of 20% for products with an alcohol by volume (ABV)level of 3.5% or lower by 2025
Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

9Creating a low alcohol category◆ Creating a low alcohol (alcohol content <1%) category
・ Offering options to those who can’t or don’t drink・ “BEERY” will be launched as the first product（Pre-sale in Tokyo and 9 prefectures from March 30, nationwide sale from June 29）
Population in20s-60s
Approx. 80 million people
Those whodrink lessthan once amonthApprox. 60 million people

Approx. 40 million people

Delicious malty flavor andaroma. Satisfying mouth
feel despite the low alcohol
level (0.5%), with a richand sharp taste.
Even though it has arobustly malty flavor, there
is no alcohol sting, making
it easy to drink.
Source : Company research
Period: September 2020, Men and women in their 20s-50s
n=150

Non-drinkers
・Those who can’t drink
・Those who don’t drink

Source : Company estimate

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

101. Vision and Management Strategy
2. 2021 Initiatives

3. Efforts to Enhance Profitability4. Sustainability-Related Initiatives

Marginal Profit Ratio Enhancement (mix improvement)

・Mix improvements across multiple categories→Leverage liquor tax revisions as a tailwind to revitalize beer market and stimulate
demand for canned beer・Mix improvements within individual categories→Expand range of high-value-added product offerings, and develop premium brandproducts

・Mix improvements through creation of new markets<Revision of Liquor Tax >Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

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Marginal Profit Ratio Enhancement (lowering variable costs)

・Cost-cutting targeting materials and ingredients→Pursue Group-wide global procurement, container improvements, and optimizationof procurement specifications

・Cutting waste through inventory adjustment based on SKU reduction→Bolster selection and focus of core brands particularly RTDs and Shochu, further
narrow the range of limited-edition products

・Enhance productivity through brewery hybridization→Production of soft drinks products in PET plastic bottles to commence in May 2021

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

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Streamlining of Fixed Costs

・Streamlining of advertising and sales promotion expenses→Bolster investment for future growth on the one hand while implementing thoroughprofitability management and pursuing overall streamlining

・Streamlining of sales equipment-related expenses→Cost cutting through expanded use of maintenance machines, insourcing of repair
work

・Streamlining of costs through pursuing new remote working styles→Cross-Group consolidation of business sites, remote monitoring and remotetechnical support for production sites

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

131. Vision and Management Strategy
2. 2021 Initiatives

3. Efforts to Enhance Profitability
4. Sustainability-Related Initiatives

Environment-related initiatives

Asahi Group Environmental Vision 2050
◆ Pass on the nature’s gift to the next generation based on
the “Neutral and Plus” concept

Climate change

Water resources

Entire Group：

Asahi Breweries：

Reduce CO2 emissions to zero by 2050 to achieve “Asahi Carbon Zero”

Realize water neutrality at（ Reduce CO2 emissions 50% by 2030 in Scope 1 ,2 and 3）

breweries by 2025

Reduce CO2 emissions

Use of “green electricity”

Used for product manufacturing in thefood industry for the first time in 2009
『Asahi Super Dry in 350/500 ml cans 』『Dry Zero in 350ml cans』

Shortening of the Asahi
Super Dry boiling process
expected to reduce CO2emissions by 2,000 tons
annually

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

Cut CO2 emissions
through reduction of
total transportdistances and modal
shiftsIn addition to cutting the volumeof water used at breweries,
strengthen the groundwater
recharge functions of Asahi Forest

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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 of publication, 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 orinconvenience that may be caused by or in conjunction with any part of these materials.