Asahi Soft Drinks Co., Ltd.
Future Management Strategy

President and Representative Director

Katsuhiko Kishigami

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

2019
June

1.Overview of Business Results in 2018
2.Formulation of New Corporate Slogan

3.Future Management Strategy

Overview in 2018
Formulated corporate vision and settled five key material issues

Aiming at a corporate growth centered on enhancementof financial values and social values

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

2Overview in 2018 (Enhancement of Financial Value)

Achieved 16 consecutive years growth in sales volume andcore OP margin of 10.3%
Sales Volume in 2018
Brand

Sales Volume(million cases)

Revenue and Core OP margin Trend※

MITSUYA CIDER

39.47

+5.2％

CALPIS

42.63+11.1％

WONDA

40.24

-3.4％

Asahi “Juroku-Cha”

24.08

+5.0％

OISHII MIZU

23.96

+2.1％

WILKINSON

22.25+11.8％

6 core brands total

192.63

+4.8％

Total

266.13+4.1％• Focused management resources on 6 core brands• Significant sales increases in MITSUYA, CALPIS, andWILKINSON• Set new sales volume records in CALPIS andWILKINSON• Commenced to settle vending machines with freezing
functions• Alliances with competitors in vending machines channel• Streamlined logistics and reduced environmental burden
Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

※including Taiwan CALPISYoYJ GAAP

IFRS

Sales Volume Trend

3

Overview in 2018 (Enhancement of Social Value)
Initiatives for social value enhancement
in five key material issues
HealthEnvironment

Dietary Education

HealthEnvironment

Partnership

SCM

New products launches in lactic acid bacteria drink category
Participation in FUN+WALK PROJECT promoted by Japan Sports Agency
Launches of label-less PET bottle products in OISHII MIZU
Launches of products using plant-derived materials for packaging in MITSUYAPartnership withLocal Communities

Promotion of initiatives for presymptomatic disease with Kanagawa prefecture
Donation of part of the profits from sales in MITSUYA and CALPIS to children nurturing initiatives

Dietary Education

Family dietary education events taking advantage of our unique techniques and know-hows

SCM

Establishment of new logistics center for efficient logistics and reduction of environmental burden

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

4

1.Overview of Business Results in 2018
2.Formulation of New Corporate Slogan

3.Future Management Strategy

Asahi Group Philosophy

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

6

Promises to Our Customers for realizing Our Vision“Promises to Our Customers”
Deliver fun and joy, and smiles
for 100 years and more
We clearly defined the values
we would propose for ourcustomers and society in orderto realize our Vision

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7

Promises to Our Customers for realizing Our Vision
Background for formulating our corporate slogan:“For 100 years and more” reflects our will to our customers. While the awareness of healthy
life is increasing, we wish our customers are sound in both mind and body, and become 100years old through our products and services.
It also shows our strength to hold 100-years long-selling brands.

Deliver fun and joy, and smiles for 100 years and more

人生100年時代を共に。あなたのココロとカラダに驚きや感動、そして、健康をお届けしたい。
いつも、そばに。これからも、ずっと笑顔を。
Together in The 100-Year Life. We wish to deliver excitements,
inspirations, and health to your mind and body.
We always stay with you and continue to deliver smiles.
Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

8

1.Overview of Business Results in 2018
2.Formulation of New Corporate Slogan

3.Future Management Strategy

Asahi Soft Drinks: Future Management Strategy
Medium-Term Management Policy“Aiming to be the leader in the soft drinks industry”“Industry-wide top-class profitability”, “Challenges for new categories”“Leadership for cooperation in non-competitive categories”, “Establishment of foundation for CSV management”

Management Strategy in 2019
“Enhancing brand equities and challenging with brands” is our overall activities’ guideline. We
will establish foundation for becoming the leader in the industry through initiatives including
building foundation for solid profitability and creating new values.

Targets in 2019

※ including Taiwan CALPIS(Unit: millions of cases)

Targets
Sales
Volume(millions ofcases)

Revenue(JPY billion)

Core OP269.202018
266.13

3.07
+1.2%

379.6

370.8

8.8
+2.4%

39.9

37.3

(JPY billion)(margin)YoY

2.7+7.2%(10.5％)(10.0％)

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

(+0.5％)

Brand

Sales Volume

YoY

MITSUYA

41.10

+4.1％

CALPIS

44.30

+3.9％

WONDA

40.40

+0.4％

Asahi “Juroku-cha”

24.40

+1.3％

OISHII MIZU

23.00

-4.0％

WILKINSON

24.50+10.1％

6 core brands

197.70

+2.6％

Total

269.20+1.2％

10Initiatives for External Environmental Changes

Further promoting our business growth through solving
issues by leveraging our unique strengths for opportunities
and risks generated by external environmental changes
Opportunities and Risks• Diversification of consumption patterns stemming from maturity of beverage
market and increasing health awareness• Changes to consumption and competition trends driven by e-commerce andother examples of sales channel diversification• Trend toward lower prices stemming from expansion of retailers’ private label
products• Ongoing increases in distribution, personnel, raw material, and other costs• Increasing attention to waste plastic and other environment-related social issues

Our Strengths• Multiple long-selling brands centered on growing categories• Industry-leading profitability achieved through optimal production and logistics
systems• Synergy-creation capabilities leveraging business integrations and alliances• Corporate culture of addressing health, environmental, and other social issues
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11

Activation of 100-years Brands
Further enhancing our 100-years brands’ intrinsic equities
as a company which promises to deliver fun and joy, andsmiles to the customers in the next 100 years
CALPIS
100 years

Asahi Soft Drinks Corporate Slogan

Deliver fun and joy, and smiles for 100 years and more

MITSUYA
135 years
Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

WILKINSON
115 years

12Activation of 100-years Brands (CALPIS)
Developing activities related to 100th anniversary, interlocking products,advertisement, sales promotion, and sales places.
Evaluating values for “Linking feelings to the future” and “Delicious and Healthy”
towards the next 100th anniversary

Supporting various anniversary events“Link feelings to the future”

Doll’sfestival

Graduation
ceremonyChildren’s
DayStarfestival

Obon
festival

PersonalanniversaryStar Festival in 2019

Link feelings which CALPIS has
nurtured in 100 year to the future“Delicious and Healthy”

Evaluate deliciousness and healthvalue of CALPIS, in addition to convey
the appeals of fermentation
Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

TVCM

SNSPlace

ProductPromotion“Fermentation Blend” Project
Platform for expanding Japanese fermentation culture andthe appeal of fermentation

ProductPlace

EventPartnership

Dietary
Education

13

Activation of 100-years Brands (MITSUYA)
Making proposals including new categories and high-added value
products centered on MITSUYA CIDER for creating new demands
Expansion of vending machines
Products matched with consumer tastes and needs

with freezing functions
Aiming at securing abetter position in thefreezing category

Establishing the unique valueCore category with hugemarkets

Partnership with local areas
Trend for light taste and nonsugar

Trend for rich and genuine
taste
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Nurturing a new pillar in thegrowing market

Using selected local fruits inJapan

Providing education classes on environment
in each local production area of fruit juice

14Activation of 100-years Brands (WILKINSON)
Pursuing strong and high quality stimulation
Leading the carbonated water category as a No.1 brandImprovement of perceived quality
aiming at the best carbonated water
Enhancing genuine value of carbonated water“Strengthen gas pressure”

Product strategy in 2019
Enhancing brand strength

Stimulating sense of hearing when opened“Strengthen sense ofcarbonation”

TANSANTANSANLEMONMost focused item
leading the brandsales

Leading the brand sales
growthFurther expanding carbonatedwater market
Acquiring new customers

TANSAN TEATANSAN EXTRA

Focused on millennial
generations

Foods with function claims

NEW
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15

Challenges for Creating New Category Centeredon HealthTaking on challenges for creating new categories in response
to social issues related on health as new drivers for growth
H1 in 2019revitalizing existing categories

H2 in 2019
Creating new categories

Providing solutions for social
issues related on healththrough soft drinks

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16

Contributions to Local Communities Centered onHealthAiming at solving health issues in local communities bycollaborating activities in each local community with our healthrelated products
Major activities for solving health issues inlocal communities
実施完了

実施完了

富山県入善町（北陸工場所在地）

町内の全幼稚園、小中学校の教員と生徒約
岡山県総社市2,500名に「守る働く（岡山工場所在地）乳酸菌」を提供
市内の保育園で働く全保育士約500名に「守る働く乳酸菌」を提供

群馬県館林市（群馬工場所在地）

実施完了

健康施設でシニア約500名に「届く強さの乳酸菌」を提供

取り組み実施中国頭村

沖縄県国頭村アサヒ飲料、アサヒオリオン飲料、昭和女子大学が村内・沖縄県内の様々なコミュニティと沖縄県を元気にするプロジェクトを展開

長野県
長野県が推進する

神奈川県普及を目的とした情報発信を当社がサポート

神奈川県の政策領域である「未病（ME-BYO）」の普及を目的に当社製品を活用した取り組みを展開

取り組み実施中 「信州ACEプロジェクト」のCopyright © ASAHI GROUP HOLDINGS. All rights reserved.

取り組み実施中17

Reconstruction of Optimal Production and LogisticsSystemAiming at reconstructing optimal production and logistics system in
response to increasing demands of PET bottle products andshortage of truck drivers

Enhancing production capacity inGunma factory

Enhancing production capacity by 1.3 times
in comparison with a conventional one① Building aseptic lines• Building one more line from 3 lines• Producing lactic acid drinks including CALPIS WATER• Scheduled to start operation on May 2020
② Renewing lactic acid fermentation facilities for
CALPIS• Space-saving, labor-saving, and automatic
operations in 24 hours• Scheduled to start operation on June 2019

Response to logistics issues
Reducing long-distance transportation bypromoting local production for local consumption• Improving the ratio of supply and demand in eachlogistics block
Promoting modal shift• Responding to the environmental changes including
shortage of drivers and trucks• Reducing environmental burden by lowering CO2emissions

環境負荷低減Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

18

Factory Tour in Gunma Factory
Opening regular factory tour in Gunma factory in response toCALPIS 100 th anniversary

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19Initiatives for Environmental Issues
Formulated “Containers and Packaging 2030” aiming at circularsociety in addition to reducing environmental burden towardrealizing sustainable society
Containers and Packaging 2030
Formulated “Containers and Packaging2030” for realizing sustainable containerand packaging use

Initiatives for reducing plastic
container and packaging
Participated in “Plastic Smart” campaign
promoted by Ministry of the Environment[Recycled PET and eco-friendly materials]
Aiming at using recycled PET, plant-derived
eco-friendly materials, and similar substancesfor 60% (by weight) of its plastic containers
and packaging (PET bottles, labels, caps,plastic bottles) by 2030
[Reduction]
Aiming at reducing the weight of plastic
containers and packaging by increasing its
use of label-less bottles and other means[Development of new environmental friendly
containers]
Engaging in R&D of containers made of new
eco-friendly materials and substances otherthan plastic
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Expanding label-less bottles

20Collaboration with competitors in competitive
and non-competitive region

Solving industry-wide issues by promotingcollaboration with competitors as a leading company
Sales exchanges in vending
machines with Dydo

Collaboration in repair ofvending machines andtransportation with Kirin

Sales exchanges in vending
machines with Itoen

Sales exchanges in vending

machines with Dydo

Collaboration expansion inrepair of vending machines

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21

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.