Asahi Breweries, Ltd.
Future Management Strategy

President and Representative Director

Kenichi Shiozawa

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2019JuneAsahi Breweries’ Long-Term Vision Based on AGP「Long-Term Vision」
Continuing to offer value and appeal unique toalcohol beverages toward achieving the highest
levels of customer satisfaction
As evidenced by the success of Asahi Super Dry, we have created
new value and provided products and services that have exceeded
expectations in order to realize the highest levels of customer satisfaction.
We are constantly pursuing to realize the highest levels of customer
satisfaction. To that end, the essence of our business activities isto continue to take on new challenges.
The alcohol beverages that we manufacture and sell has been rooted
in the lifestyles and culture of people for thousands of years, andit has now become a part of people’s tradition. Accordingly, alcohol
beverages have the tremendous potential to further brighten
people’s lives, providing added fun and fulfillment.
Going forward, we aim to continue to be a company that offers value
and appeal unique to alcohol beverages as we work to continue tobring satisfaction our customers.

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My CredoPracticing “Always Good Things from Asahi”
・ Think and act on your own initiative
・ Speak up, listen, and engage in communication
・ Keep an open mind and approach your job
with a positive attitude

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2External Environment◆ Opportunities and Risks
・Maturity of beer-type beverage market and growing diversity ofpeople’s needs and values＜Revision of Liquor Tax＞

・Changes in demand structures and product portfolios following
reduction in tax rate disparity between beer-type beverages
・Ability to stimulate demand by taking advantage of position
as Gold Partner of the Olympic and Paralympic Games Tokyo 2020
・Ongoing increases in distribution, personnel, raw material,and other costs
・Diversification of consumption and competition trends arisingfrom advancement of digital technologies◆ Strengths
・Top share in beer-type beverage market centered on Asahi Super Dry
・Strong brand portfolio in all product categories
・High-quality manufacturing technologies and efficient supply chain management

・Co-creation capabilities manifesting from strong relationships with business partners

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Key Initiatives of the Medium-Term Management Policy◆Enhancing structure for innovation and cost reduction andestablishing the position as the leader in the domestic alcoholindustry
1) Implement integrated marketing strategy for new market creation
centered on future environmental changes and renovate core brand value
2) Promote zero-based budgeting and minimize costs and create resources
for investment for growth by building optimal production and logistics
system3) Refine product development process, expand new drinking opportunities,
and enhance business utilizing digital transformation

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4Overview of Market Creation Initiatives andIntegrated Marketing
By pursuing market creation initiatives and integrated marketing
utilizing 4P framework based on 3C and STP analyses,
we will aim to cultivate strong brand and create new value.

Selection of strategic
core brands

Visualization of needs
and insight within
consumer structure

Verification andmonitoring of key KPIs

ConsumerCompany(needs and insight)(Asahi Breweries)

Optimization of 4P
framework specific toeach target consumer
group

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Competitors

Clarification of order ofpriority for target
consumer group5Marketing Strategy for Asahi Super Dry (1)◆ Visualization of Consumer StructureGroup that primarily
consumes Asahi
Super Dry

Asahi Super Dry
consumers
Consumers
Non-consumers(including young
adults and women)

Loyal consumers (groupthat almost exclusively
consumes Asahi SuperDry)
Semi-loyal consumers(group that mainly
consumes Asahi SuperDry)

Group that consumes
Asahi Super Dry
along with otherbrands◆ Order of Priority for Target Consumer Groups

Primarily beer consumers(group that primarilyconsumes beer)Primarily new genreconsumers (group thatprimarily consumes newgenres of beverages)① Semi-Loyal Consumers (Primary consumers)
By clarifying the benefits of Karakuchi, our redefined core value, we will work to turn these groups
into loyal consumers through reinforced promotional activities related to Karakuchi.

② Primarily Beer Consumers (Group that consumes Asahi Super Dry along withother brands)
By promoting a unique world view, we will enhance shared awareness of our brands and work toincrease drinking opportunities.

③ New Consumers (Young adults and women)
By proposing new value that caters to various tastes and lifestyles, we will aim to cultivate loyal
consumers in the future.
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Marketing Strategy for Asahi Super Dry (2)＜Vision＞
Aiming for “THE JAPAN BRAND”—a trusted brand that garners
the wholehearted support of all consumers＜Direction of Initiatives over the Medium Term＞
We will clarify target consumers insights and promote functional andemotional value that caters to each group.

<Core Values＞ Functional = Karakuchi and freshness
Emotional = A world view that encourages people to live their own lives
and is emotionally uplifting
TargetSemi-Loyal Consumers

Primarily Beer Consumers

New Consumers (Youngadults and women)

Approach

Karakuchi, sharpness,and No. 1 beer brandBeer-enjoyment lifestyles
and highest levels ofquality

Another kind of Asahi
Super Dry = My Asahi
Super Dry

Continuous investment in advertising that communicates a clear,appealing message to each consumer

Initiatives that leverage our status as Gold Partner of the Olympic andParalympic Games Tokyo 2020
Initiatives

・Evolve “freshness packs”
・Renew packaging
・Implement efforts
by region andchannel type

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・Foster emotional value suchas compatibility with food,drinking occasions, andglobal challenges throughadvertising and shopfronts

・Introduce new proposals
for tastes, drinking methods,
drinking occasions, anddrinking styles
・Communicate information
utilizing digital technologies

7Marketing Strategy for New Genre＜Vision＞
Cultivating strong brands and creating new domains that ascertain
the needs of potential customers＜Direction of Initiatives over the Medium Term＞
Clear Asahi：Become the best brand to complement meals and thebrand with the highest number of consumers
Gokujyo <Kireaji>：Cultivate new domains unique to Asahi that combine“genuineness” and “sharpness”＜Examples of Future Initiatives＞
Clear Asahi
PrimaryTarget

・Semi-loyal consumers(primary consumers)

・By combining our brand message of “themost refined barley taste” with the appeal ofcomplementing meals, we will work toApproach entrench Clear Asahi in the daily lives ofconsumers, thereby increasing the consumer
base for the brand.
･Improve content quality through brandupdates

Initiatives ･Implement advertising and storefront

initiatives that promote Clear Asahi’s appealof complementing meals

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Gokujyo <Kireaji>
・Consumers who prefer a sharp
finish and stimulating taste・Work to expand the market for new domainsthat combine “genuineness” and “sharpness”･Aim to maximize trial consumers utilizing thenovelty and distinctiveness・Concentrate on efforts that facilitate productpurchases (advertising and communication,
target sampling utilizing digital technologies,
and sales promotions at storefronts, etc.)8Marketing Strategy for RTD and Non-alcohol beer
taste beverages＜Vision＞
RTD: Establishing a robust brand portfolio that centers on Asahi’s unique value
NAB: Becoming a representative Japanese brand that garners the wholehearted
support of all target consumers＜Direction of Initiatives over the Medium Term＞
RTD: Ascertain segment growth and enhance core value of brands geared towardtarget consumers
NAB: Invigorate the market by increasing drinking opportunities through the improvementof quality and proposal of added value, etc.
＜Examples of Future Initiatives＞

PrimaryTargetWilkinson RTD

Asahi Dry Zero・Consumers who prefer thirstquenching, high-alcohol beverages

・Primary consumers andyoung adults

・Carry out activities that promote the added
value of the Wilkinson brand, which is its highApproach carbonation and dry flavor, in order toencourage men who will likely stop drinking
beer to change over to Wilkinson RTD

Initiatives

・Strengthen advertising to promote Wilkinson
RTD as a completely new type of RTD unlike
any existing products
・Expand the lineup of products with 7% and
9% alcohol content

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・Work to increase the number of loyal consumers by
improving the taste of Asahi Dry Zero so that it is
as close to beer as possible
・Cultivate a base of young adults by proposing newdrinking occasions
・Increase consumption volume through brandrenewals・Expand drinking opportunities such as atrecreational facilities
・Roll out Asahi Dry Zero Spark PET bottle beverages

9logistics
logistics

Optimizing Supply Chain Management◆ Taking on the Challenge of Optimizing Supply Chain Management
・Structure optimal production and logistics system in response to demand shift among
categories and consumption diversification
・Reduce container weights and raw material costs by streamlining procurement areaand methods
・Promote coordination with competitors in the cooperation field such as logistics＜Examples of Specific Initiatives＞

・Promote hybrid factories based on Group-wide SCM optimization
・Optimize SCM in response to the growth in RTD volume, etc., and fluctuationsin the ratio of beer containers
・Promote globally shared procurement of raw materials, such as malt, together
with the Europe business・Promote a logistics structure that utilizes the modal shift of the four beer companies
as well as the joint collection of beer pallets

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Initiatives of Zero-Based Budgeting◆ Zero-Based Budgeting Initiatives
・ Ensuring all fixed costs including advertisement and sales promotion expenses and personnel costs tovisualize and clearly defining what initiatives to stop and finally prioritizing the budget allocation
・ Investing the resources from the impacts of stopping expenses in key initiatives in the Medium-Term
Management Policy in addition to increasing the profit◆ Examples of Initiatives under Examination
2019

2020

2021

Substantial ZBB initiatives over the medium to long term
ZBB over the short- andmedium-term＜Examples of ZBB Initiatives＞

・Review advertising production costs and campaigns for consumers. Through the ondemand offering of sales promotion goods, shift cost impacts to initiatives specific toeach region and sales channel as well as to digital marketing, etc.
・Revamp operational management, including the revision of national conferences
through the utilization of teleconferences, etc.

・Automate product inspections for imported wine, utilize maintenance machines for tap
beer dispensers, etc.
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Invigoration of the Domestic Alcohol Beverages Market

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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.