Financial Results Presentationfor H1 2020
H1 2020 Summary
2020 Forecast
August 2020

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

Executive Summary
1H Result Overview◆ Revenue down 11%, core operating profit down 41% due to the COVID-19 pandemic
・ Alcohol Beverage Business on-premise demand contracted in Japan and overseas, sales for vending machines in Soft
Drinks Business and sales of Mintia in Food Business were weak.
⇒ The negative impact on the Group’s “strength” has expanded due to changes in the market structure caused by
the COVID-19 pandemic.

◆ Acquisition of Australian beer business expands “glocal” foundation for growth・ Completed acquisition of CUB business in Australia on June 1; to commence integration project to generate synergies⇒ Cash generation and financial soundness will be our issues in light of the large-scale acquisition under the
COVID-19 pandemic.

Future Direction◆ Full-year declines of 4% in revenue and 31% in core operating profit forecast due to continuation of
COVID-19 infection and CUB consolidation
・ Prioritize flexible marketing and channel strategies that respond to changing local conditions like down-trading・ Accelerate earnings structure reforms (including zero-based budgeting) and implement optimal financing plans andshareholder returns◆ Management emphasizing resilience, flexibility, robustness, and sustainability in the “new normal”
・ Continue with premiumization strategy by promoting high added value products; build global business platform withthree core pillars of Japan, Europe and Australia
・ Expand management reforms and sustainability strategies to adapt to structural changes in society such as changes
to consumer, channel and work-style trends
Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

1

COVID-19 Impacts (by Region)◆Monthly Beer Sales in the Key Businesses
30%【Domestic Alcohol Business】【European Business】*Beer-type beverages value basis*Volume basis【Australian Existing Business
and CUB】 *Volume basis

Jan. Feb. Mar. Apr. May June JulyJan. Feb. Mar. Apr. May June JulyJan. Feb. Mar. Apr. May June July

est.

est.

est.

20%
10%
0%
-10%

-20%
-30%
-40%

・ After the end of the declaration in May, salesof on-premise market are recovering.

・ Closure of on-trade partly in Mar, and fullyin April resulted in lower volume. Recovery
began slowly in May, as the on-tradechannel re-opened gradually across theregion excluding the UK.

・ Super Dry sales by container (Approx.):(Can) April: -20% → June: -7%(Keg) April: -80% → June: -35%
(Bottle) April: -80% → June: -50%

・ Off-Trade channel is growing andperformed well in the period, but not to theextent that it compensated for the loss ofon-trade sales.

・ Since March, sales had been sluggish due tothe declaration of a state of emergency.

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

・ In March, sales volume increased due to arush of demand in connection with the
lockdown.
・ Sales volumes decreased significantly in
April due to a rebound and the lockdown.
・ Since May, the lockdown has been lifted,
and sales volumes have been recovering.
・ A six-week lockdown was re-imposed insome areas of Melbourne from July 8.

2

COVID-19 Impacts (Soft Drinks and Food)
30%【Soft Drinks Business】 *Volume basis【Food Business】 *Value basis
30%

20%

20%

10%
10%
0%

0%
Jan.

Feb.

Mar.

Apr.

May

June

July

-10%

est.

-10%

Jan.

Feb.

Mar.

Apr.

May

June

July
est.

-20%
-30%

-20%

・ Overall sales volume has been on a recovery path, mainly in-30%
vending
machines and convenience stores, since the end of theemergency declaration in May.
(Vending machines) April: -32% → June: -22% (Approx.)(Convenience store) April: -13% → June: +12% (Approx.)-40%

・ Overall sales has begun to recover from June despite the weaksales
centered on Mintia.
-50%(Mintia) April: -48% → June: -36% (Approx.)-60%(Freeze-driedmiso soup) April: +15% → June: +7% (Approx.)◆ Sales assumptions for H2 of major businesses
H1

Q2

H2 Estimate

Domestic Alcohol

-17％

-24％

-11％

Europe-9％-11％-Mid single digit

Australia

-9％

-23％

-High single digit

Soft Drinks

-7％

-10％

-0％

Food

-4％

-12％

-3％

* Beer-type beverages only

* Existing business and CUB including Jan. - May* Value basis for domestic alcohol beverages and Food
Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

3

Response Policy for COVID-19◆ Building value together with all of our stakeholders, based on AGP (announced in April)
Employees:

Prioritize protecting health and safety of employees and their families; take measures topreserve employment as far as possible and provide appropriate support.

Consumers:

Keep all facilities worldwide in operation to fulfill our responsibility to supply our products.
Propose and develop products in response to changes in business environment.

Business partners:

Provide sustained support to customers and business partners facing what are adverse
operating environments such as on-premise amid government restrictions on outings.

Society:

Donate products and money to those on the frontlines such as Children’s Cafeterias andhealthcare workers.

Shareholders/Investors: Continue to disclose information in a timely and appropriate manner. Ensure financial
soundness position and maintain dividend policy.

◆ Focused response to each phase of COVID-19 pandemic
Spread of infection

RecoveryThe “new normal”

Continuation of restrictions
and self-restraint

Phased release
Continued social-distancing

New everyday
Changes in social structure

2020
Q1

Q2

・ Ensure safety of employees andtheir families
・ Support business partners and local
communities

・ Implement BCP (including SCM
measures)2021
Q3・ Prioritize marketing strategy
・ Ensure sufficient cash flow and soundfinancial position (curb capital
expenditure, fixed costs, etc.)

Q4

Q1・ Implement strategies focused onstrengths
・ Rapid response to the new normal
・ Take on the challenge of engaging
in disruption→ Focus efforts on regaining momentum by harnessing strengths such as brands, SCM, and human resources
Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

4

Direction of Reforms to Adapt to the “New Normal”
Implement management reforms emphasizing resilience, flexibility,
robustness, and sustainability to prepare for change

Consumers

Changes and predictions toward the “new normal”

Direction of reforms (short- and medium-term)

・ Some continue to refrain from outings; increased offtrade consumption・ Flexible review of resource allocation in response to downtrading

・ Polarization of consumption trends (down-trading vs.
premiumization)

・ Maintain focus on strong brands and continuation ofpremiumization strategy

・ Brands considered safe and reliable favored・ Increased “health & wellness” consumption

・ Growth of more sustainable products, including non-alcohol
beverages

・ Growing interest in sustainable products and services

・ Strengthen digital marketing by regional management hubs

・ Greater use of digital services (devices)

・ Focus on R&D to create new value and demandBusiness
partners

・ Progress with contraction and consolidation of onpremise channels (restaurants/leisure-related)

Employees andsociety・ Prioritize health and safety of employees and theirfamilies

・ Standardization of online channels (e-commerce, etc.)
・ Risk of supply chain disruption emerging

・ Spread of teleworking; progress with home/workplace
integration
・ Work-style diversification including in sales, production
and logistics fields

・ Increased importance of ESG in company valuations

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

・ Balance continued support and streamlining of on-premisechannels
・ Review sales and SCM operational models
・ Utilize e-commerce and pursue further digitalization

・ Consolidate shared functions in each region

・ Pursue more sophisticated crisis management
・ Digital transformation (DX) investment andorganizational/infrastructural reforms predicated on
teleworking
・ Redeploy group personnel and pursue greater diversity
・ Advance ESG initiatives and strengthen related
communications

5

Purpose and Outline of Acquisition of CUB Business◆ Purpose and meaning of acquisition
・ Expansion of global overseas growth bases by AGP and Medium-termManagement Policy
・ Building a global platform centered on Japan, Europe and Australia
・ Create synergies with existing businesses in Australia and enhance
management resources of human resources◆ Acquisition outline
・ Acquisition completion date：June 1, 2020
・ Transaction price：16 billion AUD（approx. 1,141.6 billion yen, *1 AUD = 71.35 yen）
CUB Cascade Brewery◆ CUB business performance and revenue composition（2019）＜Performance Summary＞
Sales volume
Revenue

7.83 million HL
2,257 million AUD＜Sales composition by category＞＜Sales volume composition bybeer category price range＞

Others 2%

Value
4%

Cider
3%

Premium
15%

Mainstream
24%

Core operating
profitEBITDA

888 million AUD
Beer

993 million AUD

95%

Upper
Mainstream
57%*Based on the internal data
Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

6

Australian Market and Major Brands◆ Australian beer market<Overview by price range: 2019>Market total 19.0mhl

Composition
Premium

37％＜Imported premium beer market
composition（2019）＞

ＣＡＧＲ（2014-19）＋2％

Others3%

36%

16% 6%

+3％

33%

17%

Budweiser 2%

CoronaCarlsberg 3%

36%

Stella Artois 3%

Mainstream

Miller

53％

48%

35%

7%

+2％

17%

Asahi Super
Dry

Discount

10％

52%

9%

-6％

47%

Asahi

Kirin Group

Molson Coors

AB InBev

Heineken

OthersHeineken
10%

Peroni11%

CoronaSource：Aztec

Source：Global Data

◆ Main beer brands

Victoria Bitter（Mainstream）

Great Northern（Mainstream）

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

Carlton Draught（Mainstream）

Carlton Dry（Mainstream）

Carlton Zero（Non-alcohol）

Pirate Life
（Craft beer）

7

Medium-term Strategy and Overview of Oceania Business◆ Mid-term strategy of Oceania business
Practice of "Value Creation Management" as acomprehensive alcohol and soft drink beverage company
・ Topline and cost synergy creation based on the “ALLIANCE FOR GROWTH” project・ Enhance growth resources such as human resources and know-how as a base for global platforms◆ Outline of Oceania business

Revenue（2019）

2,360 million AUD
1,969 million AUD （excl. liquor tax） 2,257 million AUD（excl. liquor tax）

Core operating profit（2019）

205 million AUD

888 million AUD

Number of
employees

Approx. 2,300

Approx. 1,700

Main categories

Beverage, beer, RTD, cider, etc.

Beer, cider, RTD

Number of
production bases

11（Of which, alcoholic beverages: 3）

6

Number oflogistics bases

13

13

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

8

Creating Synergies in Oceania Business◆ Efforts for Synergy Creation<Cost Synergies><Top-line synergies>

・ SCM: Establishing an optimal production anddistribution system by integrating and mutually
utilizing distribution centers.

・ Expanding our presence, especially in the superpremium market through accelerating the growth ofSuper Dry and Peroni by expanding sales channels.

・ Strengthening brand equity with a focus on valueenhancement by restructuring the portfolio strategy.
・ Creating new growth opportunities, such as expanding
sales channels for alcoholic beverages and soft drinks
other than beer.
・ Creating a growth driver by combining the marketingand product development capabilities of both companies.

・ Procurement: Strengthening and optimizing
procurement capabilities by leveraging scaleeconomies.

Brand equity
Market accessibility
Marketing ability
SCM Capacity
HR・ IT: Improving efficiency and optimization byreviewing infrastructure, systems, and functions.
15・ Other: Improving efficiency through consolidationof shared services sites and revision of operational
processes.

(JPY billion)

10

Cost synergies

Top-line sysnegies

5

0
2020

Integration of alcohol businessin Australia（from October）
Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

2021

2022

2023

2024

Synergy（～2024）：More than ¥10 billion
Cost (more than ¥10 billion) + Top line (quantified sequentially)

9

Overview of

Financial Results for H1 2020＆

Full Year Forecasts

Financial Results Highlights (constant currency basis)◆ H1 Core OP YoY decline by 40.4% due to the spread of COVID-19 since March（constant currency basis)• Alcohol：YoY decline in revenue and profits due to the decrease of the beer sales mainly in on-premise market, despite
improving efficiency in all costs.
• Soft Drinks：YoY decline in revenue and profits due to weak vending machine sales and the worsening mix by the self-restraint
policy, despite the strong sales of carbonated drinks.
• Food：YoY decline in revenue and profits due to the decrease in the sales of Mintia brand, despite the promotion tocontrol overall fixed costs such as advertising and other fixed costs.
• Overseas ： YoY decline in revenue and profits due to the sales decrease and worsening mix with the lock-down ofvarious countries, particularly Europe and Australia.
<Revenue and Core operating profit>*constant currency basis (based on previous year's FX rates)(JPY billion)

2020 H1 (6 months ended June 30)

2020 forecast (announced on August 5)

YoY (Amount / %)YoY (Amount / %)Alcohol Beverages Business

345.1- 65.9- 16.0%765.6- 121.2- 13.7%

Soft Drinks Business

166.6- 15.2- 8.4%

356.0- 20.9- 5.5%

Food Business

59.9

- 2.5

- 4.1%

124.6

- 4.4

- 3.4%

Overseas Business

319.8- 11.5- 3.5%

781.0

82.5

11.8%

Other Business

44.7

- 2.1

- 4.6%

92.9

- 4.5

- 4.6%- 45.6

3.8-- 96.0

3.6

-

890.4

- 93.4- 9.5%

2,024.1- 64.9- 3.1%

Alcohol Beverages Business

32.8- 10.0- 23.4%80.4- 25.2- 23.9%

Soft Drinks Business

9.9

- 7.0

- 41.5%

26.2

- 7.3

- 21.8%

Food Business

5.4

- 0.5

- 8.9%

10.9

- 2.8

- 20.4%

Overseas Business

27.3- 17.3- 38.8%83.6- 18.7- 18.3%

Other Business

0.0

- 0.8

- 95.8%

0.2

- 1.1

- 86.2%Adjustmenet (corporate and elimination)- 11.3- 0.4-- 24.0- 1.9-

Amortization of acquisition-related intangible assets- 10.7- 0.2-- 29.0

- 7.8

-

53.4

- 36.2- 40.4%148.2- 64.8- 30.4%

Adjustmenet (corporate and elimination)
RevenueCore operating profit

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

10

Financial Results Highlights (actual currency basis)＜Revenue and Core operating profit （actual currency basis）＞(JPY billion)

2020 H1 (6 months ended June 30)

2020 forecast (announced on August 5)

YoY (Amount / %)YoY (Amount / %)Alcohol Beverages Business

345.1- 65.9- 16.0%765.6- 121.2- 13.7%

Soft Drinks Business

166.6- 15.2- 8.4%

356.0- 20.9- 5.5%

Food Business

59.9

- 2.5

- 4.1%

124.6

- 4.4

- 3.4%

Overseas Business

303.6- 27.6- 8.3%

763.9

65.3

9.4%

Other Business

44.7

- 2.1

- 4.6%

92.9

- 4.5

- 4.6%- 45.6

3.8-- 96.0

3.6

-

874.3

- 109.5- 11.1%

2,007.0- 82.0- 3.9%

Alcohol Beverages Business

32.8- 10.0- 23.4%80.4- 25.2- 23.9%

Soft Drinks Business

9.9

- 7.0

- 41.5%

26.2

- 7.3

- 21.8%

Food Business

5.4

- 0.5

- 8.9%

10.9

- 2.8

- 20.4%

Overseas Business

26.1- 18.5- 41.5%82.0- 20.2- 19.8%Other Business

0.0

- 0.8

- 95.8%

0.2

- 1.1

- 86.2%Adjustmenet (corporate and elimination)- 11.3- 0.4-- 24.0- 1.9-

Amortization of acquisition-related intangible assets- 10.30.2-- 28.7- 7.5-Core operating profit

52.6- 37.0- 41.3%147.0- 66.0- 31.0%Operating profit

45.3- 43.1- 48.8%124.0- 77.4- 38.4%

Profit attributable to owners of parent

30.2- 31.3- 50.9%80.0- 62.2- 43.7%

Adjustmenet (corporate and elimination)
Revenue【Revenue】
・H1
・Forecast【Core OP】
・H1

・Forecast:YoY decline with -11.1% in the total due to the sluggish consumer demand with the spread of COVID-19.
:-3.9% YoY decline due to the sales decrease in three domestic businesses, despite the revenue of theinternational one is expected to increase due to the consolidation of the CUB business.
:YoY decline with -41.3% in the total due to the worsening mix and the sales decrease in on-premisemarket as a result of curfew restrictions in each country.
:-31.0% YoY decline due to the sales decrease in on-premise market and the worsening product mix, despite theconsolidation of the CUB business.

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

11

Operating Profit/Profit attributable to owners of parent(JPY billion)
2020 H1 (6 months ended June 30)

2020 forecast (announced on August 5)

YoY (Amount / %)YoY (Amount / %)874.3

- 109.5- 11.1%

Core operating profit

52.6- 37.0Adjustment item

- 7.3

- 6.2

3.4

Revenue

Gain (loss) on sales and retirement of
non current assets
Business integration expeses
Impairment loss
Others2,007.0- 82.0- 3.9%- 41.3%147.0- 66.0- 31.0%-- 23.0- 11.5

-

4.1

-

0.9

4.8

-

- 2.1

- 1.5

-

- 2.1

3.3

-

-

-

-

-

0.1

-

- 8.6

- 8.7

-

- 21.8- 19.7-45.3- 43.1- 48.8%124.0- 77.4- 38.4%

- 1.7

- 0.2

-

- 8.2

- 3.9

-

Share of profit (loss) of investments accounted forusing equity method

0.2

- 0.3

- 59.4%

0.0

- 0.9

- 98.8%Gain (loss) on sales of investments accounted forusing equity method

- 2.3

- 2.3

-

- 2.3

- 2.3

-

Others

- 0.4

- 0.3

-

- 1.5

- 0.9

-

Operating profit
Finance income or loss

41.1

- 46.3- 52.9%112.0- 85.4- 43.3%- 11.014.7-- 32.5

23.6

-

30.1

- 31.6- 51.2%79.5- 61.8- 43.7%

Profit attributable to owners of parent

30.2- 31.3- 50.9%80.0- 62.2- 43.7%

Profit attributable to non-controlling interests

- 0.1

- 0.2

-

- 0.5

0.4

-

Profit before tax
Income tax expense
Profit【Operating Profit】• H1:-48.8% YoY decline due to the increase of expenses such as “Others” including COVID-19 related costs, despite the control ofsales and disposal of fixed assets.
• 2020: Target -38.4% YoY decline due to the increase of expenses such as “Others” including costs of the reorganization in Oceanianand European businesses.
【Profit attributable to owners of parent】• H1:-50.9% YoY decline due to the losses on the sale of equity method investments, despite the decrease of income tax expenses.
• 2020: Target -43.7% YoY decline due to the deterioration in financial income and to the losses on the sale of equity method
investments.
Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

12

Alcohol Beverages Business(Revenue of Beer-typed/Sales Volume by Brands)<Sales Volume by Brands>(Millions of cases)

2020 H1 (6 months ended June 30)
YoY (Amount / %)Super Dry

27.87

Style Free

5.51

Clear Asahi

8.44- 9.58

H1 YoY

Full-year
Est. YoY

Beer

Approx. -26%

-23～24％

YoY (Amount / %)

66.40

0.28

5.4%

11.40

0.32

2.9%

HapposhuApprox. -1%

Approx. -3％- 0.46- 5.2%

17.90- 0.94- 5.0%New Genre

＋6～7％

＋6～7％

Total

-9～10％-8～9％- 17.152020 forecast (announced on August 5)

YoY (Amount / %)- 52.5- 20.5%(JPY billion)

2020 H1 (6 months ended June 30)

250.3(Volume basis)- 25.6%＜Revenue of Beer-type beverages＞

Beer-typebeverages total<Market Trend>2020 forecast (announced on August 5)- 17.3%

YoY (Amount / %)574.0

- 92.0- 13.8%【Market Total】
・H1：YoY contraction by -9 to -10% in the volume due to the contraction of the on-premise market and diversified
consumption in the off-premise one.
・2020
：YoY contraction by -8 to -9% in the volume expected due to the slump in the on-premise market and outflow to othercategories as a result of the liquor tax change.
【Revenue/Sales Volume by Brands】＜H1＞
・YoY decline with -17.3% due to the sales decrease in the on-premise market, despite the strong sales of Happoshu and New Genre.
＜Asahi Super Dry＞YoY decline with -25.6% due to the sales decrease in the on-premise market and the scale reduction of traditional events,
despite the results of new marketing.
＜Style Free＞ YoY increase with 5.4% due to the effective promotion to meet the growing health consciousness.
＜Clear Asahi＞ YoY decline with -5.2% due to the decrease in the on-premise market and competitive new products, despite strengthening
promotion along with brand renovation.
＜The Rich＞Total shipments in H1 reached 3.57 million boxes, surpassing 40% of the annual target, 8 million boxes, which was revised
upward in the first three and a half months of launch.
＜2020＞
・Target -13.8% YoY due to the sales decrease in the on-premise market, despite continuous promotion of sales expansion for off-premise one.
＜Asahi Super Dry＞Target -20.5% YoY due to the contraction of on-premise market, despite efforts to broaden the range of users throughenhanced communication.
＜Style Free＞ Target +2.9% YoY increase due to strengthening the value as a zero-carbohydrate brand to be enjoyed with meals.
＜Clear Asahi＞ Target -5.0% YoY due to the sales decrease in the on-premise market, despite methods to expand sales primarily in the
period before the liquor tax change and the demand is high.
＜The Rich＞Targeting total shipments of 2020 to reach 8million boxes by strengthening advertising and various promotional activities using
digital technologies.
Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

13

Alcohol Beverages Business (Revenue)<Revenue>(JPY billion)

Asahi Breweries Revenue

2020 H1 (6 months ended June 30)

2020 forecast (announced on August 5)

YoY (Amount / %)YoY (Amount / %)339.8

- 60.3- 15.1%754.3- 109.1- 12.6%

5.3

- 5.5

- 50.9%11.3- 12.2- 51.9%345.1- 65.9- 16.0%765.6- 121.2- 13.7%

Other/elimination in segment
Revenue total<Reference: Revenue by category (before rebate deduction)>
Whiskey and spirits

24.9

- 2.7

- 9.6%

51.8

- 6.3

- 10.9%RTD low-alcohol beverages

22.9

1.0

4.8%

47.0

1.6

3.4%

Wine

17.5

- 2.1

- 10.6%

37.7

- 4.4

- 10.4%Shochu

11.7

- 0.8

- 6.2%

22.9

- 3.5

- 13.4%Non-alcohol beverages

14.0

- 0.9

- 6.3%

31.7

- 1.4

- 4.3%【Revenue of Other Alcohol Beverages】
・H1：YoY decline in total due to the sales decrease in each category in the on-premise market, despite
the sales increase of RTD by strengthening “Zeitakushibori” brand.
:-6.3% YoY decline in Non-alcohol beverages due to the sales decrease in the on-premise market
and backlash from new products in the previous year, etc.
・2020

：YoY decrease in total due to the sales decrease in other categories than RTD category in which
Asahi aims to strengthen its proposition of products with unique value besides “Zeitakushibori” brand.
:-4.3% YoY decline in Non-alcohol beverages due to the sales decrease in the on-premise market,
despite measures such as the creation of new drinking opportunities.

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

14

Alcohol Beverages Business (Core OP)<Core Operating Profit>(JPY billion)
2020 H1 (6 months ended June 30)

2020 forecast (announced on August 5)

YoY (Amount / %)YoY (Amount / %)Change in sales, category and container mix-- 20.0-- 34.5

Cost reduction in manufacturing

-

1.2

-

2.2

Cost increase in manufacturing

-

- 1.8

-

- 2.5

Advertisement and Sales promotion expenses

-

4.7

-

6.5

Other expenses

-

6.7

-

6.5

Asahi Breweries

33.6

- 9.2

- 21.5%83.1- 21.8- 20.8%Other/elimination in segment

- 0.8

- 0.8

-

- 2.7

- 3.3

-

32.8

- 10.0- 23.4%80.4- 25.2- 23.9%Core Operating Profit【H1：Factors Contributing to Increase/Decrease】（JPY billion）＜Breakdown of main factors＞• Change in sales and others：-20.0(Sales decrease in bee-type -18.4, Sales decrease in other alcohol beverages -2.7, Change in category and container mix, and others）• Cost reduction in manufacturing: +1.2 (Raw materials +0.5, Transportation +0.3, etc. )• Cost increase in manufacturing: -1.8, (Raw materials -0.2, In other than beer -0.4, Transportation -0.6,etc.)• Decrease in sales promotion expenses：＋4.7（Advertisement ＋ 2.1, Promotion ＋2.6）（Beer-type -1.7, Other +3.0）• Other expenses：＋6.7（HR +0.3, Depreciation ＋0.2, Equipment for selling +1.0, Others +5.2）【2020： Factors Contributing to Increase/Decrease】（JPY billion）＜ Breakdown of main factors ＞• Change in sales and others：-34.5(Sales decrease in bee-type -31.2, Sales decrease in other alcohol beverages -6.2, Change in category and container mix, and others）• Cost reduction in manufacturing: +2.2 (Raw materials +0.6, Utilities +0.6, Transportation -0.5, etc. )• Cost increase in manufacturing: -2.5, (Raw materials -0.4, In other than beer -0.8, Transportation -0.7, etc.)• Decrease in sales promotion expenses：＋6.5（Advertisement ＋2.3, Promotion ＋4.2）（Beer-type ＋2.2, Other +4.3）• Other expenses：＋6.5（HR +0, depreciation ＋0.3, equipment for selling +1.5, others +4.7）

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

15

Basic policy for Alcohol Beverages Business◆ Basic policy for Alcohol Beverages BusinessAgile responsiveness to changes in the market environment and consumer sentiments; restore
robustness through accelerating value-focused management
・ In on-premise market, continue to support business continuity through new value propositions, etc., and prioritize
resource allocation in response to demand・ In off-premise market, strengthen marketing that responds to consumption polarization and growing health awareness・ Adopt flexible category strategy in preparation for Liquor Tax reforms and increase investment in measures that
stimulate beer demand in medium term

◆ Market trends of beer-type beverages, RTD
and non-alcohol beer taste beverages◆ Liquor Tax reforms (tax per 350 ml）

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Beer

Happoshu

New Genre

RTD

Non-alcohol beer taste beverages

Source: Company estimate (volume basis)

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

October
2020

October
2023

October2026

16

Initiatives for Asahi Super Dry◆ Initiatives for Asahi Super Dry
Enhance medium- to long-term brand value through initiatives that respond to“new normal” values and consumption styles
・ On-premise: Support for improving draft beer quality, strengthen brand appeal by providing optimal drinking experiences
・ Off-premise: Acquire new consumers by creating new drinking opportunities and strengthen integrated marketing thattargets those who also drink other alcohol beverage brands
・ Stimulate demand by providing optimum quality and creating new drinking opportunities in anticipation of Liquor Tax
reforms<Purchasing data of Asahi Super Dry can :YoY comparison with the market>
10%
5%

0%

Mar.

Apr.

May

June

-5%

-10%
Asahi Super Dry canBeer category can average

Source: INTAGE SCI beer market from March to June, 2020
Purchase volume per 100 people YoY

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

17

Initiatives for Happoshu, New Genre andOther Products than Beer-type◆ New genre standard brands
Sales up sharply YoY after launch of Asahi THE RICH in March<Total of the four new genre
standard brands *1>
9%＋2％
Jan.-June
cumulative
volume YoY

JAN.-MAR.

APR.-JUNE◆ RTD＜RTD can＞

-6%

＋10％

*1 New genre standard brands: Clear Asahi, Asahi THE RICH, Asahi Gokujo Kire Aji, and Prime Rich

Jan.-June
cumulative
volume YoY◆ Zero sugar brands
Sales of all three brands up YoY led by Style Free
<Total of the three zero sugarbrands*2>

8%・ Mainstay Zeitaku Shibori drives RTD beverage sales,
growing 12％ year-on-year January through June, 2020
・ Brisk sales of new products that provide unique value◆ Non-alcohol beer taste beverages
5%<Asahi Dry Zero can>＋7％Jan.-June
cumulative
volume YoY*2 Zero sugar brands: Style Free, Zeitaku Zero, and Asahi Off

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

＋2％
JAN.-MAR.

APR.-JUNE

Jan.-June
cumulative
volume YoY

18

Soft Drinks Business (Sales Volume)<Sales Volume>(Millions of cases)
2020 H1 (6 months ended June 30)

2020 forecast (announced on August 5)

YoY (Amount / %)<Market Trend>
Jan. - Jun.

YoY (Amount / %)YoY

Carbonated drinks

37.57

2.30

6.5%

78.71

5.73

7.9%

-3～4％

Lactic acid drinks

21.21- 2.86- 11.9%45.00- 3.88- 7.9%-11～12％

Coffee16.76- 3.61- 17.7%36.08- 5.06- 12.3%-11～12％

Tea

16.67

- 2.21- 11.7%36.75- 3.21- 8.0%-6～7％

Mineral Water

7.86- 1.65- 17.4%17.88- 2.04- 10.3%-4～5％

Fruit juice

6.96- 2.43- 25.9%15.43- 3.80- 19.7%-9～10％

Other drinks

11.73

1.37

13.2%

25.96

2.91

12.6%

-

Sales Volume

118.75- 9.10- 7.1%

255.80- 9.34- 3.5%-7～8％<Sales Volume by Brands><By container type>Jan. - Jun.

2020 H1 (6 months ended June 30)
YoY (Amount / %)<By channel>
YoY

Jan. - Jun.

YoY

Can

- 7.3%

Vending machine- 20.0%

MITSUYA CIDER

20.02

0.20

1.0%

PET total- 5.3%

CVS- 2.0%

WILKINSON

13.72

1.42

11.5%

Large PET

- 4.5%SM

4.0%

CALPIS18.18- 2.30- 11.2%

Small PET

- 5.8%

Others- 18.0%

WONDA

15.79

- 3.76- 19.2%

Glass bottle- 41.5%

Asahi Juroku-cha

10.20- 0.89- 8.0%

Others- 17.7%OISHII MIZU

7.86

- 1.65- 17.4%【Market Total】• H1: -7-8% YoY decline in total volume mainly due to the negative impacts of the sales decrease in vending machines andconvenience store channel, despite sales expanding in supermarkets caused by consumption from staying at home.
【Asahi Soft Drinks Sales Volume】
・H1：-7.1% YoY decline due to the sales decrease of Coffee and Lactic acid drinks, despite the sales increase in carbonated drinks.
・2020：Target -3.5% YoY due to the negative impacts of the sales decrease in vending machines caused by the self-restraint policy,
despite the sales increase in carbonated drinks.
Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

19

Soft Drinks Business (Core OP)<Core Operating Profit>(Millions of cases / JPY billion)
2020 H1 (6 months ended June 30)

2020 forecast (announced on August 5)

YoY (Amount / %)YoY (Amount / %)Sales Volume Total

118.75- 9.10- 7.1%

255.80△ 9.34- 3.5%

Revenue Total

166.6- 15.2- 8.4%

356.0- 20.9- 5.5%

Change in sales, category and container mix

-

- 7.3

-

- 10.2

Cost reduction in manufacturing

-

1.5

-

5.1

Cost increase in manufacturing

-

- 0.3

-

- 0.9

Advertisement and Sales promotion expenses

-

0.1

-

0.9

Other expenses

-

- 1.0

-

- 2.2

Asahi Soft Drinks

9.9

- 7.0

- 41.5%

26.2

- 7.3

- 21.8%

-

-

-

-

- 7.0

- 41.5%- 7.3- 21.8%Other/elimination in segment
Core Operating Profit

9.9

26.2

【H1：Factors Contributing to Increase/Decrease】（JPY billion）＜Breakdown of main factors＞• Change in sales, and others：-7.3（Sales volume decrease -6.0, Change in category and container mix, and others）• Cost reduction in manufacturing: +1.5
（Raw materials +0.1, Packages +0.9, Operational efficiency/in-house production +0.5, etc. ）• Cost increase in manufacturing: -0.3 (Raw materials -0.1, Packages -0.2, etc.)• Change in sales promotion expenses：+0.1（Advertisement +0.1）【2020：Factors Contributing to Increase/Decrease】（JPY billion）＜Breakdown of main factors＞• Change in sales and others：-10.2（Sales volume decrease -8.3, Change in category and container mix, and others）• Cost reduction in manufacturing: +5.1
（Raw materials +0.6, Packages +1.8, Operational efficiency/in-house production +2.7, etc. ）• Cost increase in manufacturing: -0.9, (Raw materials -0.7, Packages -0.2)• Change in sales promotion expenses：+0.9（Advertisement +0.8, Promotion +0.1 ）Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

20

Soft Drinks Business◆ Growth of carbonated drinks (YoY)◆ Sales Volume trends of WILKINSON and MITSUYA* Realized reliable growth compared to competitors(sales volume in the first half reached a record high)* Expected to set a new record high of annual sales volume(million boxes)(CAGR)＋1.2％＋16.4％*Source:Inryousoken◆ Measures under COVID-19 pandemic<EC channel growth>
H1 EC channel growth rate
+30% YoY(Label-less products +118% YoY)
Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

<Respond to demand forstaying at home><Strengthen profitability by improving
operational efficiency and in-houseproduction>

・ Suggestions for drinking at home time・ Production of carbonated drinks started
at Gunma Factory

・ Strengthening Calpis Conc・ In-house production of Monster Energy

21

Food Business (Revenue/Core OP)<Revenue>(JPY billion)
2020 H1 (6 months ended June 30)

2020 forecast (announced on August 5)

YoY (Amount / %)YoY (Amount / %)Asahi Group Foods

54.5

- 1.8

- 3.2%

113.3

- 4.4

- 3.7%

Other / elimination

5.4

- 0.7

- 12.0%

11.3

0.0

0.0%

59.9

- 2.5

- 4.1%

124.6

- 4.4

- 3.4%

Revenue<Core Operating Profit>(JPY billion)
2020 H1 (6 months ended June 30)

2020 forecast (announced on August 5)

YoY (Amount / %)YoY (Amount / %)Asahi Group Foods

5.3

- 1.1

- 17.6%

9.9

- 2.6

- 20.7%

Other / elimination

0.1

0.6

-

1.0

- 0.2

- 17.5%

Core Operating Profit

5.4

- 0.5

- 8.9%

10.9

- 2.8

- 20.4%【Revenue】
・H1：-4.1% YoY decline mainly due to the sales decrease of Mintia brand, despite the sales increase of freezedried foods caused by consumption from staying at home
・2020
：Target -3.4% YoY decline mainly due to the sales decrease of Mintia brand, despite promoting newmeasures to stimulate consumer demand centered on our main brands【Core OP】
・H1：-8.9% YoY decline due to the sales decrease and the worsening product mix, despite promoting tocontrol overall fixed costs such as advertising and other fixed costs.
・2020：Target -20.4% decline YoY due to the sales decrease, investing in sales promotion for the growth of ourcore brands and increase in manufacturing fixed costs.

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

22

Food Business◆ Future Initiatives for New Normal＜Stimulating new demand for Mintia＞
Traditional eating scenes

New eating scenes

Refresh at office and while
commuting, etc.

Refresh while teleworking or
working from home
Refresh with wearing a mask

Changing consumer needs

Changes in lifestyle
・ Increase in telework/work from home
・ Refraining from going out

・ Enrichment of time spent at home
・ Penetration of the idea of self-care, which is"to manage your own health"※ Rate of change is year-on-year. (value basis)＜Discovering demand for staying at home＞

Freeze-dried miso soupJan.-June
cumulative＋13％

As the No.1 brand*, promoting the features offreeze-drying, such as being able to be stockpiled andeasy preparing, for stimulating further demand* INTAGE SRI: freeze-dried miso soup, clear soup market
from July 2018 to June 2020 cumulative sales by maker

Food aimed atsenior citizens

Jan.-June
cumulative＋17％

Reinforce appeal delicious, safe food to reduce theburden of home care while staying at home

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

＜Strengthen product roll-out in response to increasing
health consciousness＞
Dear-Natura

Jan.-June
cumulative＋9％

Expand product lineup and strengthen advertisingand sales promotion according to purpose andlifestyle

Ippon Manzoku Bar

Jan.-June
cumulative＋62％

Strengthening the response to the needs formaintaining health through body building by
Expanding the development of protein-containing
products

23

Overseas Business (Revenue *constant currency basis)<Revenue *constant currency basis (based on previous year's FX rates)>(JPY billion)

2020 H1 (6 months ended June 30)

2020 forecast (announced on August 5)

YoY (Amount / %)YoY (Amount / %)Europe business

168.8- 23.0- 12.0%348.5- 39.8- 10.2%

Oceania business

100.5

25.8

34.5%

317.2

138.3

77.3%

Southeast Asia business

21.7

- 1.7

- 7.2%

43.6

- 1.2

- 2.7%

Asahi International

36.7

- 8.4

- 18.6%87.4- 16.9- 16.2%Other / elimination

△ 7.9

- 4.2

-

- 15.7

2.0

-

319.8

- 11.5- 3.5%

781.0

82.5

11.8%

- 27.6- 8.3%

763.9

65.3

9.4%

Revenue<Perfomance including foreign exchange imapct>
Revenue※

303.6

For the CUB business, described the result and the forecast from June 1st to December 31st.

【Revenue (constant currency basis)】＜H1＞• Europe: -12.0% YoY decline due to the sales decrease in the on-premise market with the lock-down of various countries.
• Oceania：+34.5% YoY growth driven by the consolidation of the CUB business and the sales increase of Non-Alcohol beverages
particularly in carbonated drinks.
• Southeast Asia：-7.2% YoY due to the sales decrease of beverages except for dairy products in Malaysia.
• Asahi International：-18.6% YoY due to the negative impact of the sales decrease mainly in the on-premise market in UK and other areas.
＜2020＞• Europe: -10.2% YoY decline due to the continuous sales decrease in the on-premise market, despite measures to revive demand in view of
deregulation in various countries.
• Oceania：+77.3% YoY growth driven by the consolidation of the CUB business, despite the sales decrease mainly due to sluggish salesof alcoholic beverages of our existing business in the on-premise market.
• Southeast Asia：-2.7% YoY decline due to the sales decrease of beverages except for dairy products, despite measures to revive demand in view of
deregulation• Asahi International：-16.2% YoY decline due to the continuous sales decrease in on-premise market, despite measures to revive demand mainly in
the UK.

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

24

Overseas Business (Core OP *constant currency basis)<Core OP *constant currency basis (based on previous year's FX rates)>(JPY billion)

2020 H1 (6 months ended June 30)

2020 forecast (announced on August 5)

YoY (Amount / %)YoY (Amount / %)Europe business

24.8- 10.2- 29.2%56.7- 21.1- 27.1%

Oceania business

2.3

- 1.8

- 43.8%

23.7

8.5

55.8%

Southeast Asia business

0.3

- 1.0

- 75.1%

1.3

- 0.8

- 39.1%

Asahi International

0.3

- 3.5

- 93.2%

2.8

- 4.3

- 61.0%

Other / elimination

- 0.4

- 0.8

-

- 0.9

- 1.0

-

27.3

- 17.3- 38.8%83.6- 18.7- 18.3%- 18.5△ 41.5%82.0- 20.2△ 19.8%

Revenue<Perfomance including foreign exchange imapct>
Core Operating Profit※

26.1

For the CUB business, described the result and the forecast from June 1st to December 31st.

【Core Operating Profit (constant currency basis)】＜H1＞• Europe: -29.2% YoY decline due to the sales decrease in the on-premise market and the worsening mix of various countries .
• Oceania：-43.8% YoY decline due to the worsening mix and sluggish sales of alcoholic beverages of our existing business in the onpremise market.
• Southeast Asia：-75.1% YoY decline due to the sales decrease, and the worsening mix and rising prices of raw materials.
• Asahi International：-3.5 JPY billion decline due to the sales decrease in on-premise market of the UK and the worsening mix.
＜2020＞• Europe：Target -27.1% YoY decline due to the sales decrease and the worsening mix, despite reviewing capital investments and otherfixed costs.
• Oceania：Target +55.8% YoY growth driven by the consolidation of the CUB business, despite the expected sales decrease in the onpremise market.
• Southeast Asia：Target -39.1% YoY decline due to mostly rising prices of raw materials, despite measures to improve the mix and production
efficiency.
• Asahi International：-61.0% YoY decline due to the sales decrease and the worsening mix , despite measures to improve efficiencies such as
promotional costs.

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

25

Reference: Oceanian Business(Revenue and Core OP *constant currency basis)◆ Breakdown<Revenue and Core Operating Profit>*constant currency basis (based on previous year's FX rates)(JPY billion)

2020 H1 (6 months ended June 30)

2020 forecast (announced on August 5)

YoY (Amount / %)YoY (Amount / %)Existing business

81.0

6.3

8.4%

181.0

2.1

1.2%

CUB business (from June 2020)

19.5

19.5

-

136.2

136.2

-

100.5

25.8

34.5%

317.2

138.3

77.3%

Existing business

2.1

- 2.0

- 49.4%

11.8

- 3.8

- 24.2%

CUB business (from June 2020)

4.4

4.4

-

23.6

23.6

-

- 4.2

- 4.2

-

- 11.6- 11.3

-

2.3

- 1.8

- 43.8%

23.7

8.5

55.8%

RevenueOnce off Cost
Core Operating Profit◆ CUB Non-consolidated Performance (only June) and Forecast (June-Dec.)*Local Currency Basis（Million AUD、Million HL）
H1（only June）

Refrence
YoY*

Forecast（June-Dec.）

Refrence
YoY*

Refrence:YoY*(full year basis)

Sales Volume

0.6

- 10%

4.1

- 8%

- 9%

Revenue (exl. Alcohol tax)

173

- 7%

1,165

- 7%

- 10%

Core Operating Profit

62

- 35%

326

- 26%

- 28%

One-off cost

- 58

-

- 160

-

*Approximate values are used for the previous year's results.

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

26

Europe Business & AIL Business◆ Europe Business

NAB (Non-Alcohol Beer)
Sales Volume Growth Ratio＜2020 Forecast (constant currency basis)＞khl、million Euro

2020 H1
Results

＋9％

YoY*2

2020
RevisedTargetYoY*3

Sales Volume

18,952-9%39,831-6%

Net Sales (exc liquor tax)

1,112

-11%

2,382

-8%

199

-28%

465

-25%

Core OP*1*1 Core OP before deduction of one-off cost

*2 Comparison in FX rate of H1 2019.

*3 Comparison in FX rate of 2020.

2019 1H

Off-premise market in the UK
Sales Volume Growth Ratio
Period: March 11th – July 4th＋62.8％◆ Asahi International Ltd＜2020 Forecast (constant currency basis)＞khl、million Euro

Sales Volume
Net Sales (exc liquor tax)

2020 H1
Results

YoY*2

2020
RevisedTarget

YoY*3

1,855

-12%

4,283

-4%

217

-20%

517

-17%

2

-93%

23

-63%

Core OP*1*1 Core OP before deduction of one-off cost2020 1H＋50.2％*2 Comparison in FX rate of H1 2019.

*3 Comparison in FX rate of 2020.

MarketAsahi

Source：Nielsen
Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

27

COVID-19 Impacts (Europe)【Czech】 *Volume basis On-premise ratio: approx. 40％【Poland】 *Volume basis On-premise ratio: mid single digit
0%

0%
Mar.

Apr.

May

June

Mar.

July

Apr.

May

June

July
est.

est.

-10%

-10%

・ Total Business: Significantly impacted by on-trade closure, off-trade notsufficient to compensate.

・ Total Business: Volumes reflect decline in category, also cycling good
weather impacts in prior year

・ Off-trade: Ahead of prior year, but slow-down in Q2-20%
・ On-trade: Started to recover slowly after opening of channel and easing ofrestrictions from mid-May

・ Off-trade: Impacted by category decline but holding share-20%
・ On-trade: Re-opened from end of May, recovery is slow as consumers
remain cautious【Italy】 *Volume basis

On-premise ratio: approx. 40％

20%【UK】 *Volume basis On-premise ratio: approx. 60％
20%*Including the effect from the acquisition of Fuller’s for March

10%
0%

-10%

0%

Mar.

Apr.

May

June

July

Mar.

Apr.

May

June

est.

-20%

July
est.

-20%

-30%
-40%

-40%

-50%
・-60%
Total Business: Significantly impacted by on-trade closure, off-trade notsufficient to compensate.

・ Total Business: Significant decrease in the on-premise, compensating a part-60%
of it in the off-premise.

・ Off-trade: Behind prior year but improving trend

・ Off-trade: Increased market share through key customers

・ On-trade: Recovering slowly as channel re-opened from mid-May with some
restrictions in place.

・ On-trade: Lockdown imposed since the end of March, started recovery as
restrictions eased in July subject to social distancing

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

28

Reorganization of Europe Business◆ Significance of the reorganization
Business integration of the Europe Business and AIL（from Nov. 2020）
・ Establishing a faster decision-making process and building a one-stop operation structure
・ Creating further cost synergies by the consolidation of duplicating headquarters
・ Accelerating the growth of premium brands by the flexible management resource allocationand the enhancement of marketing capabilities＜Future management system＞
Asahi Europe and International（Paolo Lanzarotti CEO）
Finance
Corporate
Affairs＜Business＞

CZ/SK/
Germany/
Austria

PolandRomania/
Hungary

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

Italy

Netherlands/FranceUK/
Ireland＜Function＞
MarketingInformation

Asia

SupplyChain

Human
Resource

Transformation

EMEA/
USA/
Canada29

Financing Plan
◆ Rationale and Overview of Financing Plan
・ Considering to raise JPY300.0 billion of equity credit attributes in order to secure
financial soundness and maintain current credit rating
・ Minimizing dilution for existing shareholders with combining issuance of common
stock including use of treasury share, and subordinated bondFunding Methods

Overview

Public Offering

Issuing common stock including use of treasury shares (Approx. 25.50 million
shares) *(Maximum amount: JPY 200.0 billion)

Subordinated
Bond

Issuing subordinated bond (assuming 50% equity credit attribute), which isconsidered as an equity regarding the credit ratings (Maximum amount:
JPY300.0 billion)

Debt

Considering to diversify funding methods in order to reduce total cost ofcapital and interest (Approx. JPY 700.0 - 800.0 billion)* Set up subordinated commitment syndicated loan facility (assuming 50% equity credit attribute), which is a
backup plan in case we cannot raise funds through the issuance of shares of common stock as planned.

→ For financial plans, consider flexibly reviewing the timing and balanceaccording to the stock market and procurement environment.
Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

30

Strengthening our sustainability promotion system◆ Formulation of Our Basic Policy and Vision on Sustainability
Asahi Group’s Sustainability Principles
1. The Asahi Group is striving to realize the tastiness of products and services that exceed consumer expectations, using theblessings of nature. We preserve finite nature to hand down the important blessings of nature to future generations.
2. The Asahi Group is striving to bring more fun to life through its products and services. We build a sustainable society toallow a better life to be inherited.
Asahi Group’s Sustainability Vision
Based on the Sustainability Principles, we will strive to create values toward a better future in all regions where we operate byincorporating “Environment,” “People,” “Communities,” “Health,” and “Responsible Drinking” into our corporate strategy.
Through these initiatives, we will continue to take on challenges and innovation to contribute to achieving the United Nations
Sustainable Development Goals (SDGs).

◆ Revision of Our Material Issues◆Environment Protect the gifts of nature
Climate change/Sustainable raw material procurement, containers/packaging and water resources/Circular economy◆People Uphold respect for human rights and maximize the potential of people
Respect for human rights/Human resources development/Diversity/Workforce health and safety◆Communities Connect people to create and share enjoyment
Create people-to-people connections/Realize sustainable supply chains◆Health Become a close part of people’s healthy lifestyles
Secure food safety & reliability/Create value of health◆Responsible Drinking Contribute to efforts to reduce harmful drinking and promote
the sound development of the alcohol beverage culture
Reduction in inappropriate drinking/Solution of social issues through creation of new drinking opportunities* For details of KPIs based on material issues, please see pages 54-55 of the Integrated Report 2019.
Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

31

Environment: Efforts to Respond to Climate Change(Endorsing the Recommendations of the TCFD)◆ Disclosure items based on the TCFD

◆ About endorsing the recommendations of the TCFD
The Asahi Group understands that evaluating the impact of climatechange-related risks and opportunities on its businesses and drafting
appropriate response measures are important matters in terms ofrealizing a sustainable society and ensuring business continuity.

Governance

Strategies

Risk Management
Structure

Indices and Targets* For details of disclosure, please see pages 58-61 of theIntegrated Report 2019.

◆ Strategy: Climate change risk/opportunity scenario analysis
We implemented scenario analysis using the following steps with the aim of examining the impact of climate change related risks
and opportunities on our beer businesses.

STEP1

STEP2

STEP3

STEP4

Evaluating the Significanceof Each Risk

Defining a Group of
Scenarios

Evaluating Business
Impacts

Examining Response
Measures

Laying out scenarios in which theearth’s temperature rises by 2ºC and
4ºC, respectively, by the end of the
21st century compared withtemperatures before the Industrial
Revolution

Business impacts:• Business costs• Earnings• Value chain• Suspended operations

Response measures:• Portfolio reform• Investment inresponse capabilities
and technologies

Political and
legal

Reputation

Market changes
and technologicalchanges

Physical risks◆ Evaluating the business impact for the matters which have a particularlyhigh impact on our businesses
Impact on Harvest Yield Amounts under the 2ºC
Scenario and the 4ºC Scenario<Impact from Decline inHarvest of Agricultural(Estimated values for 2050 using supply volume in 2018 as 100)Materials>
(%)
100

97
83

93 91

80

99 98

87
65

60
40
20

0

BarleyHops

2ºC scenario

Corn

Rice

4ºC scenario

Impact of a Carbon Tax under the 2ºC
Scenario(¥ billion)

・ Significantly higher
declines in the harvest
yields for barley and corn
under the 4ºC scenario
than the 2ºC scenario

8.0

・ We will continue to gather
information to improve
the accuracy of ourestimations.

2.0

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

6.0

7.0
5.7

In the event noactions were

<Impact from the Introduction of Carbon Tax>
・ Carbon tax reduction by implementing the
Asahi Carbon Zero initiative*: ¥1.4 billion in
2030 and ¥7.0 billion in 2050

taken to reduce * It aims for a 30% reduction in CO2 emissions

4.3

CO2 emissions

4.0

by 2030 and zero emissions by 2050.

・ We believe that the current strategies we are
pursuing have a strong resilience to cost
increases due to climate change and areactions were
therefore appropriate based on thattaken to reduce
perspective.

In the event

0.0
0.0

2030

2050

CO2 emissions

32

Global Social Support Activities
Supporting stakeholders

Donation【Japan】
・Donations of the Group's products such as"Calpis Water" to approx. 118,000 medical
workers nationwide
・Donations of disinfectant for medical institutions
and local governments【Malaysia】
・Providing more than 6,200 cartons of beverages
to healthcare professionals and others【Czech】
・Operates and plans an online platform that connects
restaurants and consumers, and sells vouchers in advance.
2,504 pubs registered.
【Hungary】
・Compensation for expired keg inventory for wholesalers,
hotels, restaurants, etc.
【Netherlands】
・A famous artist holds a live session from an unmanned
restaurant and appeals for support of restaurants throughthe purchase of coupons. (80,000 coupons sold)【Australia】
・Support for maintenance of equipment such as servers forrestaurants. Extension of payment deadline, collection ofunused kegs and refund.

Proposal of new style【New Zealand】
・Expanding the delivery area of ​our own EC site and strengthening the
product range【Malaysia】
・Holding a Ramadan session event in considerationof safety, supported by the GOODDAY brandCopyright © ASAHI GROUP HOLDINGS. All rights reserved.

33

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.