Japan Business Strategy
March 14, 2023
Asahi Group Japan, Ltd.

ⒸASAHI GROUP JAPAN. ALL rights reserved.

1

Business Overview for 2022
Concept of the plan for 2023

ⒸASAHI GROUP HOLDINGS. All rights reserved.

2

Japan: Overview and Direction(JPY billion)

2022
Results

Revenue

1,301.7

82.3

Core OP

108.9

5.5

Changevs Forecast

2023
Forecast

6.8%- 15.7

1,351.0

49.3

3.8%

5.3%

- 2.5

112.0

3.1

2.8%

YoY

ChangeYoY＜Overview for 2022＞⚫ Asahi Group Japan, Ltd. Launched, commenced on efficiency improvement through supply chain
restructuring, and sustainability strategy enhanced⚫ Price realization, mainly in Alcohol Beverages Business through growth in canned beer category,

new value propositions, and price revision effects, etc.

＜Direction for 2023＞⚫ Maximize effects of price revisions in each business and execute marketing strategyemphasizing product mix improvements⚫ Generate integration synergies as “One Asahi”, continue with strategic investments targetingsustainable growthⒸASAHI GROUP HOLDINGS. All rights reserved.

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Japan (Alcohol Beverages Business): Main Initiatives⚫ Growth in Excess of the Market in the Expanding Canned Beer Market
・Beer Can Composition in Off-premise market

FY2022(YoY, volume basis)

・Number of Asahi Super Dry consumers
As of Dec 31, 2022
20.67 millionpeople

Market:+Mid single digit

Asahi:+13%* Source: Asahi Group Holdings* 12-month moving average・Source: Intage SRI+ data for composition of canned beer, happoshu and new genre product markets
Estimated YoY sales volume for Jan 2019–Dec 2022
Seven channels: supermarkets, convenience stores, discount liquor stores, home improvement stores,
drugstores, general liquor stores, and wholesale liquor stores⚫ Initiatives to Strengthen Brands<Asahi Super Dry>
・Leveraging Rugby World Cup 2023 ・Strengthen advertising and sales
promotion of Nama Jokki CanPartnershipsⒸASAHI GROUP HOLDINGS. All rights reserved.

<Asahi Nama Beer “Maru F”>
・Proposition of various ways to drink ・Expansion of drinking
occasions by adding SKUs

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Japan (Non-Alcohol Beverages Business): Main Initiatives⚫ Responding to Changing Consumer Needs
・Unsweetened carbonated Wilkinson grew faster than the market

・Expanded label-less products mainly through EC channel

Label-lessE-commercechannel+49%+25%

FY2022(YoY, volume basis)⚫ Strengthening New Value Propositions
・ Reinforcing the growth of #sober series・ Launch a new green tea Sou

Scheduled to launch on Apr 4.

Sales plan for 2023

5 million casesⒸASAHI GROUP HOLDINGS. All rights reserved.

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Future Strategy for Japan BusinessⒸASAHI GROUP HOLDINGS. All rights reserved.

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Projected Changes in the Business Environment in the Medium-Term
We anticipate the following points to keep an eye on in the medium-term changes surrounding ourbusiness. Recognizing changes in the environment as opportunities, we will promote our growth strategy
by continuously monitoring it.
Declining birthrate andincreasing elderly population（Accelerating population decline）

Further acceleration of healthconsciousness

Geopolitical risks（Tensions in East Asia and other regions）(Headwinds against alcohol beverages)

Major changes in theway we work

Further increase in sustainabilityorientation（Growth, satisfaction and diversity of employees）(Corporate sustainability initiatives become the norm)

Further Advancement of Technology（Merchandising with new techniques and materials.
New commercial distribution through the evolutionof IT technology）

Convergence of industries(Shakeout of competitors,rise of cross-industry disrupters)

Diversification of values（Individual values are diversified and prioritized）ⒸASAHI GROUP JAPAN. ALL rights reserved.

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8Asahi Group and AGJ Management Policy
Basic concept behind Asahi Group long-term strategy

Contribute to sustainable society and respond to changing conceptions of wellbeing throughdelivering great taste and fun

Basic concept behind Japan business strategy

Grow and thrive harmoniously with society as One Asahi by proactively addressing needs
and changes through a consumer-oriented approach
1. Discover and create opportunities by addressing new needs
and occasion through understanding the market with aconsumer-oriented approach

4. World-class standards in efficiency and cost competitiveness2. Deliver experience and emotional value together with taste,quality and functionality

6. Sustainability through coexisting with society while creating value

3. Pursue Asahi’s uniqueness in addition to scale

5. Speed and agility to proactively address consumer and market
needs

7. Eliminate silos and boundaries between companies as One Asahi

3 Strategic Pillars

GrowthⒸASAHI GROUP HOLDINGS. All rights reserved.

Cost

Sustainability
8Future Strategy for Japan BusinessMaximize corporate value by interrelating priority measures that support the 3 strategic pillars.

Priority Initiatives to Drive 3 Strategic Pillars
GrowthCost

1 Growth opportunity discovery

42

Brand portfolio
optimization

53

Accountmanagement

6& creation in the consumeroriented way

8910ⒸASAHI GROUP HOLDINGS. All rights reserved.

Sustainability

Consolidation ofsourcing function
Production / logistics network redesign
S&OP enhancement
SG&A streamlining

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Incorporating sustainabilityinto business value
Leadership in achieving
neutrality

Talent reskilling

IT infrastructure enhancement and DX acceleration

9Overall Picture of Enhancements to Implement the Strategy
Strengthen the three pillars that support the strategy:"growth," "cost," and "sustainability" to enhance the execution of the strategy.

Specialized divisions tocreate new growth
areas
Created “FutureCreation
Headquarters”（Jan 1, 2023）ⒸASAHI GROUP HOLDINGS. All rights reserved.

Consolidate functions toenhance and accelerate
volume benefits andcost savings“Consolidate andstrengthen
procurementfunctions”（Jan 1, 2023）Consolidation ofenvironmental
management andawareness activities
from operatingcompanies“Enhancement ofSustainabilityFunctions”（Apr 1, 2023）

Strengthen financial planning function“Newly established Finance Division”（Apr 1, 2023）

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GrowthⒸASAHI GROUP HOLDINGS. All rights reserved.

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Brand Portfolio Optimization
Maximize corporate value by forming a brand portfolio that focuses on "new growth areas from theconsumer's perspective" in addition to promoting "Smart Drinking" and "Super Premium" while leveraging
the superiority of our core brands from the consumer's perspective.

Core Brands
Creating new lifestyle value while maintaining
the superiority of the brand

Smart Drinking“One Asahi” and industry-wide promotion ofsmart drilling

New Growth Areas

New growth area for consumer-driven products
Brand development utilizing functionalingredientsYeastⒸASAHI GROUP HOLDINGS. All rights reserved.

Super Premium
GO to Market Design andInternational Expansion

Lactic acid bacteria

12Super Premium✓ The whiskey market continues to boom worldwide, and Japanese whiskey is highly regarded both domestically andinternationally.
✓ Whiskey exports from Japan in 2022 totaled 56.1 billion yen (46.1 billion yen in 2021); the Japanese government's target
for 2025 is 68 billion yen.
✓ Strengthen the NIKKA brand, a Japanese whisky, and expand the Super Premium strategy to the world✓ From 2023, the overseas business will be transferred to Nikka (Global Marketing & Sales Department was newly established)
to focus on rapidly growing overseas markets.
Export Trends of Japanese Alcohol Beverages

Nikka Whisky Export Trends
From 2016~2020, the volume of shipments was curbed in order toprioritize the storage of raw whisky; from 2021, growth resumed.

Sales CAGR of
26% from 2020to 2022

ⒸASAHI GROUP HOLDINGS. All rights reserved.

Source: Trade Statistics, Ministry of Finance13Super Premium✓ The Asian wine market is expected to expand steadily from 2023-2025.
✓ In addition to sustained growth in Japan, we will accelerate growth in Asia and "continue toevolve into a strong Enoteca" by strengthening our brand power and leveraging our multicountry and multi-channel strengths.
Growth Leveraging Multi-country and Multi-channel Strengths

Wine Markets in Asia
CAGR 3%Asian
6 areas, 37 stores

160,000
140,000

Area development

Established in 201011 stores

120,000

Strengthening
EC Channels

Established in 2011
6 storesＦＣ

100,000
80,000Established in 2009
9 stores60,00040,00020,000Local incorporation

02022
JapanHong Kong

2023
China

Source: IWSR

Korea

2024
Singpore

TaiwanUnit: 1,000 c/s (9L equivalent)ⒸASAHI GROUP HOLDINGS. All rights reserved.

2025
ThaiVietnam（Growth in Overseas Sales）*Steel + Sparkling total

2011

2022

2025

2030

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New Growth Areas -Yeast✓ ・In the short term, we plan to increase manufacturing capacity by bringing yeast extract production in-house in Japan,
followed by the establishment of an overseas business base.
✓ ・In the medium term, we will enter new business areas. In the long term, we will optimize costs and strengthen ourcompetitive advantage through "two-wheeled management" of "existing" and "new" businesses.
Short-term

Mid-term

Expand yeast extract
business
Market in 2027
320 billion JPY
existingbusinessYeast Extract
Business
twowheeled
Yeast Extract ResidueNewBusiness(Multiple)

Cell wall business• Continued expansion of yeast
extract businessstarting up• Development and enhancement ofin-house core technologies• Refining our core technologies• Identifying promising areas• Entry into promising areas

2 trillion JPY market that can be entered: feed additives, flavoringmaterials, oral hygiene products, andbasic cosmetics, supplements,
plant-based foods...

Cost optimization through"two-wheeled management• Continued expansion of yeast
extract business• Strengthen cost competitivenessCompletion• Full-scale development of newbusiness areas･･･ⒸASAHI GROUP JAPAN. All rights reserved.

exploring･･･

Yeast and Lactic
Acid Bacteria NewBusiness• In-house production of yeast
extracts in Japan• Expansion of production facilities atdomestic plants• Establishment of overseas business
infrastructure

Entry into new businessareas

Long-term• Consideration of business concepts
and alliances• Entry into new business areas

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New Growth Areas-L-92 (Immune Function Material) Across the Group✓ Notification of functional foods in the immunological field by three Group companies has been accepted,
and plans are underway to market products using L-92 Lactobacillus, which helps maintain immune
function in healthy people.Starting with Asahi Soft Drinks Co., Ltd., the plan is to expand to Asahi GroupFoods, Ltd. and Asahi Breweries, Ltd.

Asahi Group Japan

Asahi Breweries

Asahi Soft Drinks

Asahi Group Foods

Plans to renew

Renewal launch scheduledⒸASAHI GROUP HOLDINGS. All rights reserved.

In Jun 2023.

Scheduled to go on sale after Aug 2023
(general retail and in-house mail order)16

Account Management
× IT Infrastructure Enhancement and DX Acceleration✓ Strengthening IT infrastructure" to aggregate customer and other data to reveal latent value.
✓ Furthermore, we will promote consumer-oriented and data-driven business actions (digital transformation) by "developingdata-driven organizations and human resources" and "introducing data science technologies" to effectively utilize thisfoundation.

Consumer-oriented anddata-driven business actions

Data-driven organization andHuman Resource Development

Ｄ Ｘ
IT infrastructure
Revealing latent value

Aggregating data
ⒸASAHI GROUP HOLDINGS. All rights reserved.

Data Science
Technology

Customer Data
Internal Data

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Strengthening Functions to Support Growth-Future Creation HeadquartersAwarenessof theIssues

ResponsePolicy

Immediate response to inconvenient truths and increasing uncertainty• Declining drinking population, diverse local conditions/changes, big/fast/fine changes in lifestyle• Changes in business partners' conditions, intensified competition across industries and business categories, etc.

Establishment of new value creation function under AGJ (Separation of execution and future creation)• Resolving medium- to long-term cross-business issues, driving the creation of new value and new businesses• Establish a mechanism that enables the discovery of business opportunities from the consumer's perspective and themobilization of the assets of each company.

Establishment ofnew organization

Future Creation Headquarters①Fusion••Flexible involvement of human resources fromwithin and outside the group
Amoeba-type organization by combining wisdom①FusionSupportofficeStructureandFunctions②By
Function
ValueCreationOffice

Data&Innovation
Office②By FunctionⒸASAHI GROUP HOLDINGS. All rights reserved.

Priority
Priority・・・
measuresmeasures③By Measure③By
Measure•FCH management/strategy formulation, designof mechanisms such as surveys and experiments,
securing resources and building systems•Creation of new businesses that are not boundby existing domains, and construction ofincubation functions•Structuring/implementation of data utilizationfrom the consumer's point of view•

Primary target area: Cross-group projects•

Create new business for each company, deepen
customer relationships, and strengthenmarketing measures18

CostⒸASAHI GROUP HOLDINGS. All rights reserved.

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Consolidation of Sourcing Function-Aim of Functional Enhancement• Aiming to reduce costs by 15 billion yen in 2025 compared to 2022, despite headwinds such as raw
material market conditions, energy price hikes, and yen depreciation.

• Strengthen management to optimize total procurement costs for direct materials (raw materials andpackage) and indirect materials.
Cost reduction＋Controlling
cost increases

Directmaterials

Indirectmaterials

2022ⒸASAHI GROUP HOLDINGS. All rights reserved.

Unprecedented
Cost increase

Inflation
Increased activity
Cost increase

Directmaterials

Directmaterials

Further
Cost increaserisk

IndirectInflationmaterials Increased activity

Cost reduction＋Controlling
cost increases

Indirectmaterials

Cost increase

2023

2025
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Consolidation of Sourcing Function-Procurement Reforms to Respond to Environmental Changes• The internal and external procurement environment surrounding the Japanese business has changed significantly, and the procurement
function needs to be reformed in response to these changes.
• A wide range of procurement issues have emerged, not to mention costs, and we will comprehensively strengthen the competitiveness of ourprocurement function by resolving these issues.

Internal and External
Environment

Direction of Procurement Reform• Ongoing cost containment and other controls• Diversification of consumer needs

・・・Development of new value-added products• Risk of increased procurement costs
・・・Market conditions, FX, energy

Conventionalareas• Risk of stable procurement

・・・Climate change, business restructuring• Geopolitical risks

・・・Rapid environmental change• Sustainability agenda

Strengthening
Efforts

・・・Human rights violations by suppliers• Procurement of new raw materials for newvalue-added products• Advancement of risk management- Stable procurement for each process in the supplychain- Cost stabilization through hedge management• Reinforcement of sustainability agenda
initiatives• Risks specific to Japan business• ・・・- Environment, Human Rights, Agricultural Products

Enhancement of functions
in response toenvironmental changesⒸASAHI GROUP HOLDINGS. All rights reserved.

- Cost planning, development purchasing, specification
changes・・・- New initiatives such as industry and suppliercollaboration“One Asahi” procurement system in Japan
Strengthening the Group's mobility
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Production / Logistics Network Redesign
SCM reorganization is progressing as planned. Accelerating efforts to improve cost competitiveness andachieve carbon negatives at Tosu Factory.
Implement nationwide supply chain transformation,
starting with Kansai, Kanto, and Kyushu areas
Beer production sites

Soft drink production sites

Improvement of cost competitiveness

RTD production sites

Cost reduction of about 3 billion yenin 2026 (compared to 2021)
CompletedKansai

Nation-wide•

Consolidate beer production at theShikoku Factory to other plants (2023)••

Consolidate RTD production at theNishinomiya Factory to the Suita Factory(2024)

Deployment of the Tosu
Factory's high-efficiency
model to factories
nationwide

Achieve carbon negatives at the Tosu factory

IbarakiNishinomiya
HakataTosu

SuitaKanagawa

Shikoku

Kanto•

CompletedConsolidate beer production at theKanagawa Factory to other factories(2023)

Kyusyu•Move from Hakata Factory to Tosu Factory and start hybrid
production (beer, soft drink, RTD) (2026)ⒸASAHI GROUP HOLDINGS. All rights reserved.

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S&OP Enhancement• Aiming to improve the accuracy of demand forecasting, we are working on the construction of a sales forecasting model, which will be first
implemented at Asahi Breweries from October 2022.

• The system and knowledge will be deployed within the Group, including Asahi Soft Drinks, starting this year.

Building a sales forecasting model• Calculate predictions from a variety of inputs. Repeat validation and develop models that contribute to actual operations.

• Streamline the development of tools by diverting databases from existing infrastructure environments.
• Reduce man-hours, standardize operations, and de-personalize forecasting operations while ensuring a certain degree offorecasting accuracy.

＜Development of forecasting models＞＜Development of forecasting tools＞

Select appropriate inputs and build predictive models

Efficient development by diverting and modifying
existing mechanismsⒸASAHI GROUP HOLDINGS. All rights reserved.

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Strengthening Functions to Support Growth-ProcurementCreate group synergies by strengthening “One Asahi” initiatives
１．Create cost synergies through "volume discounting" by consolidating procurement functions and "costsaving" by strengthening category managers
２．Responding to changes in the business environment with “One Asahi”

Creation of group synergies“One Asahi”

Costsaving

Asahi Group Japan
Category
manager

Volumediscount

Asahi
BreweriesⒸASAHI GROUP HOLDINGS. All rights reserved.

Category
manager

Category
manager

Respondingto changes inthe internaland external
environment

Consolidation
Asahi SoftDrinks

Asahi Group
Foods

From Jan 2023

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Strengthening Functions to Support Growth-FinanceStrengthening our approach from a financial perspective to increase corporate value andachieve our plans
1. Strengthen verification of strategies and measures from a financial perspective to ensure appropriate reallocation ofmanagement resources for sustainable improvement of corporate value.
2. Strengthen quantitative and financial monitoring to ensure rapid PDCA cycle in developing new measures.
3.

Upgrading of mechanisms and management accounting systems to carry out the above initiatives, and development
of FP&A human resources
Conventional
Business and Corporate Planning

FP＆A

Conventional
Finance（Financial Planning & Analysis）
Problem Solving
ProjectsⒸASAHI GROUP HOLDINGS. All rights reserved.

Business Management

Financial PlanningManagement PlanKPIMonitoring
Management Structure

Financial Planning
Financial Analysis
Financial Indicator Monitoring
Management Accounting

Strengthen financial
management functions

Institutional Accounting
Taxation
Cash Management

From Apr 2023

25

SustainabilityⒸASAHI GROUP HOLDINGS. All rights reserved.

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Sustainability Initiatives for Japan Business Linked toGroup Strategies
Execute specific actions in the Japan business in conjunction with the Group's sustainability strategy andthe new Environmental Vision 2050.

Asahi Group Sustainability Strategy
Sustainability Stories
VisionCreate lasting brandvalue

PolicyObjectives

Adapt to the future

Actively embracechangeOur promise to thefuture

Realizing sustainability across the value chain.
As a group, we aim to manage risk and create opportunities while aspiring to make a positive impact for businessand society with our products and services.

Material Issues, Key Initiatives

Initiative

HumanRights

Reduction inInappropriate
Drinking

Respond to Climate
ChangeSustainable
Agricultural Raw
Materials

Sustainable Packaging

Sustainable Water
Resources

Realize Sustainable Communities through theCreation of People-to-People Connections

Solution of Alcohol-Related
Issues through Creation ofNew Drinking Opportunities

Revised Environmental Vision 2050

Create Value of HealthCo-creation with Stakeholders

ResultsEngagement

Creating business and social impact by incorporating into business and functions

CommunicationⒸASAHI GROUP HOLDINGS. All rights reserved.

Dialogue with investors, etc.

Disclosure

Website, Integrated Report, etc.

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Management Based on Sustainability
Sustainability management based on "financial and non-financial" and "positive value creation and neutralization”
Both financial and non-financial, new business models are also in view
2１

Creation ofFinancial

Positive Value

Providing value through newproducts and services

Providing social value

Management Basedon Sustainability

Achieving both environmental
friendliness and cost reduction

Neutralization3

Non-financial

4

Responding to social needs

Practice on existing business base
ⒸASAHI GROUP HOLDINGS. All rights reserved.

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Examples of Initiatives- (1) Providing Value Through New Products and Services
Developing new markets and providing value through products❖ Asahi YOU. US
Sustainable products❖ Asahi Breweries
Local products❖ Asahi Soft Drinks
Health-value products❖ Asahi Group Foods
Health-value productsⒸASAHI GROUP HOLDINGS. All rights reserved.

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Examples of Initiatives- (2) Providing Social Value
Providing social value through social contribution activities❖ Asahi Group Japan
Asahi Forest❖ Asahi Breweries
Volunteer activities around the offices❖ Asahi Soft Drinks
Vending machines with disaster
preparedness and security cameras❖ Asahi Group Foods
Supporting food banksⒸASAHI GROUP HOLDINGS. All rights reserved.

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Examples of Initiatives- (3) Achieving Both Environmental Friendliness and Cost Reduction
Achieve both environmental friendliness and cost savings through reduced use of rawmaterials and energy along the value chain.
❖ Asahi Logistics
Joint distribution of food andalcohol beverages❖ Asahi Breweries
Lightweight container❖ Asahi Soft Drinks
Simple labels and label-less products❖ Asahi Group Foods
Development of reduced plastic containerⒸASAHI GROUP HOLDINGS. All rights reserved.

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Examples of Initiatives- (4) Responding to Social Needs
Company-wide efforts to fulfill our social responsibilities.
❖ Company-wide efforts
Use of renewable energy- Respond to climate change❖ Asahi Breweries
Promoting responsible drinking❖ Company-wide efforts
Investigation of human rights risks
in production and logistics」❖ Asahi Group Foods
Use of RSPO certified palm oilⒸASAHI GROUP HOLDINGS. All rights reserved.

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Strengthening Functions to Support Growth-SustainabilityImplementation of Group-wide Sustainability Management
１．Strengthen strategic functions for overall sustainability activities and promote group-wide sustainability management
２．Consolidation of "environmental management" and "enlightenment" functions to strengthen consistent group activities andinformation dissemination.

Sustainability Management as a GroupOne Asahi

Asahi Group Japan
Overall SustainabilityStrategyEnvironmental
Management

Asahi
BreweriesⒸASAHI GROUP HOLDINGS. All rights reserved.

Consolidation
Asahi SoftDrinks

Enlightenment

Asahi GroupFoods

From Jan 2023
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 thetime of publication, and no guarantees are provided regarding the accuracy of such information. This information issubject 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.

ⒸASAHI GROUP HOLDINGS. All rights reserved.

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