“Asahi IR Day ESG initiatives”
for Analysts and Investors

June 2021

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

Asahi Group Corporate Value Creation Model
Integration of sustainability and management,
Place sustainability at the heart of management andlink it to business growth

Strengthening governance to support
sustainable value creation processes

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

1

Progress in Sustainability Initiatives

Sustainability Promotion Structure
Progress status

Integration of sustainability and management•

At the first meeting of 2020,
decided to revise upward the2030 interim target for Asahi
Carbon Zero, which aims for zerocarbon emissions by 2050

Corporate Strategy Board•

Global Sustainability Committee
Chairperson: Asahi Group Holdings CEO•

At the first meeting of 2021,
discussed a promotion structure
review and sustainability
governance in management, etc.
Discussed a roadmap to raise the2030 interim target for carbon
emissions reductions

Board of Directors

Sustainability Execution Conference•
Sustainability Task ForceRegular global meetings held foreach of the environment,
community, and responsible
drinking to share best practices
and discuss specific initiatives

Build a structure for applying global targets at the regional
level in both the strategy and implementation phases
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2

Cycle of Integration of sustainability and management:(1) Contribute to business growth
Strengthen efforts to resolve social issues throughout our business activities tocontribute to business growth and produce our desired outcome- Outcome Sustainable living for
consumers

Sustainability
story⚫ Our goal:
Carbon zero by 2050
Halve carbon emissions by 2030
⚫ Action:
Increase use of renewableenergies in factories[Starting point]
Social issue:

Climate change- Business impact Sales and profits
increase- Output Provision of ethicalproducts

3

Cycle of Integration of sustainability and management:(2) Reduce business risk
Strengthen efforts to resolve social issues throughout our business activities toreduce business risk and create outcome- Outcome Use of products that
protect human rights

Sustainability
story[Starting point]⚫ Our goal:
Reduce human rights risks
throughout our businessactivities⚫ Action:
Ensure supplier human rights
due diligence

Social issue:

Human rights- Output Elimination of forcedlabor and child labor- Business impact Potential business risk
reducedHumanrightsissues４

Why Invest in Sustainability?
Sustainability is not about cost—it is investment in the future. By addressing sustainability
not from a short-term but rather a medium- to long-term perspective, we aim to secure
investment returns, reduce risk, and boost corporate value.

Our approach to sustainability investment
Strategic capital investment

Marketing investment

Operations andmanagement investment

E.g. investment in solar power
generation

E.g. investment in ethicalproducts

E.g. investment in addressing
human rights risks

Shortterm

Cash flow
worsens

Shortterm

Production costs
worsen (introductionof renewable energy)

Shortterm

Fixed/Variable
costs worsen

Mediumto longterm

Merits reaped
post-depreciation

Mediumto longterm

Sales and profits
increase

Mediumto longterm

Medium- to long-term
O&M risk reduced

Merit

Merit

Merit

・・・

Depr.

Depr.

Depr.

InvestAfter
depreciation
Depreciation
periodperiodCopyright © ASAHI GROUP HOLDINGS. All rights reserved.

Rising market
demand by creating
new markets
Merit
Initial cost
increase

Risk
visualization
Investment
in risk response

Risk
reducedNo investment
in risk response

HumanrightsissuesReputation risk
Boycotts

５

Top priority areas of materiality

Environment

Community

Responsible
Drinking

In particular, climate change will have a negative impact
on our important raw materials, such as water, barley andhops, and biodiversity conservation.
It will also have a significant impact on the sustainabilityof our business.

Social trends are weakening connections between people,
people and communities, communities and other ones withcreating various community issues. The decline of community
also impacts heavily on business sustainability.

Alcohol issues are directly linked to our core business,
impacting heavily on business sustainability.

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

６

Environment: Asahi Group Environmental Vision 2050

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

Zero environmental impact(“Neutral”)
1
Respond to climatechange“Asahi Carbon Zero”
Reduce CO2 emissions
to zero2
Make sustainable useof resources(Agricultural raw materials,
containers and packaging ,water)

Reduce business risks

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

Creating environmental value(“Plus”)
3
Utilize microorganisms
and fermentation
technologies

4
Process innovation

Create new environmental
value by leveraging Group
strengths

Create groundbreaking newtechnologies and systems

７

Environment: Climate Change

Scope 1 and 2 targets for 2030 revised upward
New target

50%

Old target

SBT1.5℃ validated

reduction（compare with 2019）30% reduction （compare with 2015）
Joined RE100

The Asahi Carbon Zero medium- to long-term target for reducing CO2
emissions has been revised upward, accelerating our efforts to achievecarbon neutrality by 2050.
Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

８

Environment: Climate Change 2050 Roadmap
2050

Asahi Carbon Zero —The Asahi Group’s Medium- to Long-Term Target for Reducing CO2 Emissions
Reduce our CO2 emissions in Scope 1, 2, and 3 to zero, thereby realizing carbon neutral

Asahi Carbon Zero —The Asahi Group’s Medium- to Long-Term Target for Reducing CO2 Emissions
Reduce CO2 emissions in Scope 1 and 2 by 50% (compared with 2019)
Reduce CO2 emissions in Scope 3 by 30% (compared with 2019)
2030

2025

Japan

EuropeOceaniaSoutheast Asia

Reduce CO2 emissions
every year by 1% ormore over the previous
year

Reduce CO2 emissions in Scope
1 and 2 to zero by introducing
renewable energy at plants,
thereby becoming carbon
neutralReduce CO2 emissions in
Scope 1 and 2 by 50%(compared with 2019)

Reduce CO2 emissions in
Scope 1 and 2 every
year by 2% or more overthe previous year

Japan

EuropeOceaniaSoutheast Asia

Shift to 100% renewableenergy for the electricity
used at plants

Shift to 100% renewableenergy for the electricity
used in Australia and New
Zealand

Reduce CO2 emissions in
Scope 1 and 2 every
year by 2% or more overthe previous year

•Use renewable energy for
100% of electricity
purchased at all
production bases•Reduce CO2 emissions
every year by 1% or more
over the previous year

Reflect the Asahi Carbon Zero medium- to long-term target for reducing CO2
emissions in regional targets and implement our roadmap for achieving that target
Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

９

Environment: Climate Change
Strengthening sales of ethical products

Use of 100% renewable energy※Excluding in-house power generation

EuropeAustralia

Japan

Strengthen sales of ethical products to meet growing demand, looking
ahead to future markets to seize business growth opportunities
Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

10Environment: Climate Change
Pursuing the TCFD recommendations
Rising price ofagricultural raw
materials due todecline in harvests

Rising production
costs due tocarbon tax
introduction

Rising PET bottle
cost due to carbon
tax transfer pricing

Corn
Coffee2030
2050¥6.23 billion¥1.97 billion¥2.66 billion¥6.47 billion¥6.43 billion

Response measures•••

Work with suppliers
Assist farmers
Use Asahi Grouptechnologies••

Revise upward the 2030•
target for carbon emissions
reduction•
Use Asahi Grouptechnologies

Change to recycled PET
bottles
Reduce PET bottle weight

In 2020, we undertook scenario analysis for our beverage and alcohol (beer, etc.)
businesses, visualizing the risk of greater costs due to declining agricultural raw material
harvests and carbon tax introduction and considering response measures.

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

11

People: Upgrading Human Capital
Asahi Group Philosophy
Foster a corporate culture in which the company and our people grow together

People Statement

Learning, growing, achieving TOGETHER
Safety and
Well-being
is our biggest priority

Everyone
Matters
is our core belief

Growth throughLearning
individually and collectively

Better together
Collaboration fuels our growth

Learning, growing, achieving TOGETHER
There’s a feeling of excitement when you’re growing, learning, doing great work and delivering results. And when we do this
together, the magic really happens.
This is how we work at Asahi -We are respectful, trusting, humble and inclusive. This fuels the way we work together, ourcare for one another and drives our outstanding results.
We connect, we grow, and we chase learning opportunities together – even if they come from mistakes we’ve made; andtogether we ‘deliver on our great taste promise and bring more fun to life’ which is what we stand for as a global Group.
We care deeply for one another – with our safety and physical & mental well-being always our highest priority.
We unite in our passion for excellence and respect, not just for ourselves and our teams, but also for our customers, ourconsumers, our communities and our planet.

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

12

Community: Key Issues
Global activity slogan”RE:CONNECTION”
Connections between people, people and communities,
and communities and other ones

Key “Community” issues
Food

Regional
Environment

Disaster Relief

Resolve food-related issues torevisit the connection
between people and food andboost local sustainability

Connect nature and society tocreate the conditions forcoexistence, helping to resolve
regional environmental issues(nature, ecosystems)

Assist those whose daily lives
and businesses have beenheavily impacted by disaster,
reconnecting them with daily
lives

Sharing happy times with local community members, contributing tocreating sustainable community “Bringing more fun to life”
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13

Community: Food
Partnership among industry,
government, academia and thecommunity“Barley-of-Hope” (beer and sticky barley)
harvest volumes

Area cultivated (ha)Trial cultivationof 30 types ofbarley in thehome fields of
HOPE staff (April
2014)

0.6 1.2

1.4

June 2015

June 2016

Cultivation starts
in October 2015
on affected land

Feb. 2016
launch of
GRAND
HOPE
(Yakurai
Beer)

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

5.7

54.6

Harvest (t)

12.4
4.4

71.8

18.4

15.4

7.8

1.4
June 20172016
First Barley ofHope alelaunched

June 2018

June 2019Nov. 2017: Clear Asahi Toretate no Zeitaku
Oct. 2018: Clear Asahi Tohoku no Megumi
July 2019: Clear Asahi Tohoku no Megumi
Nov. 2019: Clear Asahi Tohoku no Megumi
Nov. 2020 Clear Asahi Tohoku no Megumi

June 2020

April 2020:
Asahi Super Dry“Support the Tohoku
Recovery” can2021-

As of 2021, initiatives
begin to produce abarley-based whisky

14Community: Food
The Campus Peroni agricultural support project in Italy uses cocreation with stakeholders to produce sustainable malt

An initiative launched in partnership with amalt factories, the national agriculturalresearch center, and local universities'
agriculture departments to explore thecultivation of barley
Promotes research, training, innovation, andexchange between agricultural producers
Social sustainability + business sustainability= business growth

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15

Community: Food
Brewing process

Effective use of by-products

By-product
Malt feed

Variousby-products
are generated
in thebrewing process

Effective use of
by-products
Surplus
yeast

Malt feed

Feed Stuff

Extract

Seasoning

Yeastcell wall

Products for
agriculture
Ebios(Healthtablets)

Sweet potato cultivation on
soil with poor drainage(1.3 times up on previous year)

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16

Responsible Drinking

Global Activity Slogan

Responsible Drinking Ambassador
Japan“Smart Drinking” Declaration
・Aiming to realize a society where those who drink andthose who do not can respect each other’s perspectives
・Aiming for a sales volume ratio of 20% for low-alcoholand non-alcohol beverages by 2025

EuropeOceania

Promoting premiumization to expand
growth opportunities･ Aiming for a sales volume ratio of 20% for
non-alcohol beverages by 2030

Developing the market through brand use･ By launching non-alcohol beers from core
brands such as Great Northern and Carlton,
aiming for a sales volume ratio of 25% for lowalcohol and non-alcohol beverages by 2025

* Low-alcohol beverage: Alcohol content of 3.5% or less
* Non-alcohol beverage: Based on the laws and regulations foreach sales region

To eliminate inappropriate drinking and create new drinking opportunities,
we promote non-alcohol beverage strategies across the entire Group
Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

17

Responsible Drinking:Creation of New Drinking Opportunities
Advocating for Diversity in Drinking

Smart Drinking

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

•

By June 2021, the website of Asahi Breweries, Ltd.
disclosed the absolute amount of alcohol contained in
the main alcoholic products commercially available
from Asahi Breweries, Ltd. in Japan in grams. In
addition, Asahi Breweries Ltd. will disclose the amountof pure alcohol on the labels of products to belaunched or renewed in and after August of 2021. By
disclosing the absolute amount of alcohol in a productin grams, Asahi Breweries will ensure that customers
are able to choose the alcohol product most suitable
for them.

•

Asahi Breweries is aiming to have its low-alcohol
products containing 3.5% or less alcohol and nonalcoholic beverages reach 20% of the total volume ofbeer, RTDs and non-alcoholic products sold by 2025, alittle more than three times the 2019 figure.

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

18

Responsible Drinking:Reduction in Inappropriate Drinking
As a member of the global NPO IARD, we are working to build
a social system to eliminate inappropriate drinking

Working in partnership with other industries in a cross-society approach
Collaboration with digital platforms

Collaboration with e-commerce
platforms
Createmechanisms toprevent minors
from buying
alcohol, check age
at time of delivery,
and not deliver tointoxicatedpersons

Createmechanisms toprevent the
exposure ofminors toalcohol
advertising

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

19

Progress in Governance Initiatives

Framework for improving the effectivenessof the Board of Directors
The Asahi Group considers a highly effective Board of Directors to be one that continuously
enhances corporate value over the medium-to long-term .
Enhancing corporate value over the medium to long term
Improving the effectiveness of the Board of Directors

Highly effective decision-making

Highly effective supervision

Timely decision-making
×
Effective discussions
×
Appropriate selection of themes

Timely supervision of the executive
×
Effective discussions
×
Appropriate selection of themes

Operations
contributing
to effectiveness• Provision of information• Securing time, etc.

Decision-making ability

Ability to supervise the executive(objective/condition)

Skill matrix of the Board of Directors＜<Skills that enable Directors to contribute to improving effectiveness>＞
Long-term
Outlook &Strategic
MindsetManagement
Skill bothglobally andlocally

Considerationof
Sustainability
Management

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

Promotion of
Discontinuous
GrowthManagementof theCompany’s
Business

Finance,
Accounting &Internal
Control

Human
Resource
Management

20

Previous initiatives aimed at enhancing corporate governance
Policies to enhance the substance of corporate governance
Towards
greater
substance

Main
recentinitiatives

Succession Plan of CEO and
Directors
Discussions on ultra-long-term
megatrends

The skill matrix of the Board of
Directors and the skill set ofCEO
Annual plan of Board of
Directors, Formulation of
agenda, Shift to PDCA

The evaluation of the effectiveness of the Board of Directors
values its substance over formality
The CXO system was introduced.
Chairman to step down from Representative Director role and give his
undivided attention to chairing the Board of Directors (supervisory function)
The third-party evaluation of the effectiveness of the
Audit & Supervisory Board was commenced.
The third-party evaluation of the effectiveness of
the Board of Directors was commenced.
The Nomination Committee and the Compensation
Committee are chaired by Outside Directors.
Evaluations of the effectiveness of the Audit &Supervisory Board were commenced.
Performance-linked stock compensation
was introduced.
Evaluations of the effectiveness of theBoard of Directors were commenced.

Corporate Governance Guidelines were formulated.
The Company transitioned to a pure holding company structure.
Terms of Directors were shortened.
Diversity of the Board of Directors was enhanced.
Nomination Committee and Compensation
Committee were established.

Number of Outside
Directors was increased.

2000
Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

2018

2019

2020

21

The Results of Evaluation of the Effectiveness in Fiscal 2020

◆ Evaluation of the Effectiveness of the Company’s Board of Directors —Summary of Results
Viewpoints of evaluation① Identifying themes to be carried out andsetting targets for deliberating and monitoring

In fiscal 2020, progress was made on submitting anddiscussing megatrends, global governance,sustainability and other important matters that had
not been sufficiently addressed in the past regarding
the long-term improvement of corporate value.

Conclusion
The Board of Directors concluded that theBoard of Directors in fiscal 2020 has theeffectiveness necessary for sustainable growth
and the increase of corporate value of theCompany over the medium-to long-term, andcontinues to improvethe base of that effectiveness.

② Deliberating and monitoring under the
structure needed for the Board of Directors
In fiscal 2020, the Company established a framework(PDCA) for decision-making and monitoring by
setting an agenda for priority initiatives and othermeasures. As a result, deliberations on importantmatters proceeded in a timely and appropriatemanner.

Future initiatives
It is important to address the issues identified
based on the evaluation and further improvethe effectiveness.

◆ Developmental Issues to Be Addressed in Fiscal 2021
1. Discussions related to strategies and businessportfolios that anticipate ultra-long-term andlong-term megatrends

3. Discussions and monitoring of integrating thesustainability strategies and management
strategies

2. Discussions on sophisticating Group global
governance and the crisis management

4. Discussions on sophisticating the Board of
Directors’ functions for a global company

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

22【Reference】
Overview of Directors’ opinions on the key points of the evaluation

１

２

３

４

Strategy
focused on thelong-term andultra-long-termGroup global
governance

Sustainability

Election andremuneration of
directors andseniormanagement

General(With regard to theeffectivenessof the Board of
Directors)◎◎

Beginning discussions on megatrends, and having a rolling annual plan, constitutes major progress
The way of thinking has shifted from “defensive strategy” to “strategy to take the initiative proactively”✓

Discussions between directors based on materials has inherent limitations, and we need to incorporate
knowledge from human resources with different experiences and backgrounds to those of the directors, such as
experts and younger employees✓

We need to commit more time to discussing the optimization of the business portfolio◎

There has been an increase in discussions related to governance, and things that were not seen before havenow become visible
There has been an increase in discussions related to governance, and things that were not seen before havenow become visible◎✓

We need to return to the discussion of what constitutes optimal governance for a globalizing business✓We must clarify the approach taken by the Board of Directors to monitor risk management◎◎

We have debated every kind of sustainability issues, and have also overhauled the way we approach materiality
We have accomplished some substantial discussions based on the exchange of diverse opinions✓

With regard to building long-term policies, discussions need to be even more closely integrated withmanagement strategy✓

Policies and strategies need to be integrated, and communicated as a coherent narrative◎

Appropriate measures have been established for the CEO election, dismissal and succession, and for Directors’
incentives✓

Discussion is required in relation to remuneration systems right across the board in the Group for management
and employees.

◎

The frequency and level of discussions of important issues by the Board of Directors in relation has improved
significantly
There has been rapid progress, and an enhancement of the substance of discussions. One of the most forwardlooking Boards of Directors among Japanese companies◎✓

In order to respond to globalization, achieve sustainable growth and enhance corporate value, we need to once
again debate and form a consensus on what it is that Board of Directors discussions should focus✓

There needs to be more clarity about the mechanism used to trace important decisions, and the methods used
to monitor them

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23

【Reference】 Skill Matrix of the Board of Directors
Decision-Making Skill
Long-term
Outlook &Strategic
MindsetManagement
Skill bothglobally andlocally

Akiyoshi Koji〇〇

Atsushi Katsuki〇〇

Ryoichi Kitagawa〇

Taemin Park

Considerationof
Sustainability
Management

Supervisory Skill
Promotion of
Discontinuous
GrowthManagementof theCompany’s
Business

Finance,
Accounting &Internal
Control

Human
Resource
Management

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

Keizo Tanimura

〇

〇

〇

Tatsuro Kosaka

〇

〇

〇

〇

〇

〇

Yasushi Shingai

〇

〇

〇

〇

〇

〇

Christina L.Ahmadjian

〇

〇

〇

〇

〇

〇

① Long-term Outlook & Strategic Mindset： Ability to assess societal changes over the long term and manage
business through a backcasting-focused strategic mindset

DecisionMaking Skill② Management Skill both globally and locally：Ability to comprehensively manage business at the global and regional
level by taking a globally minded management approach and optimizing management locally③ Consideration of Sustainability Management：Ability to manage business by viewing sustainability and management
as one and the same and integrating medium- to long-term strategies with resolutions to social issues④ Promotion of Discontinuous Growth：Ability to manage business by promoting discontinuous growth throughtechnological innovation and business restructuring① Management of the Company’s Business：Ability to accurately assess the status of business execution and raiseissues in accordance with the Medium-Term Management Policy on the basis of the AGP

Supervisory
Skill② Finance, Accounting & Internal Control：Ability to perform finance and accounting duties from a managerial
perspective and implement internal control that facilitates more substantial Group governance③ Human Resource Management：Ability to manage diverse human resources and maximize the potential ofeach employee—key elements for value creation both globally and locally.

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

24【Reference】 Skill Set of CEO
The Company has formulated the “skill set of CEO,” the written list of essential and importantskills as CEO, in order to enhance the sustainability of management and proceed the succession
planning of CEO based on fair and transparent processes.
Personal Image
Ideal perceptions from inside and outside the Company, and ideal presence⚫ A leader who, as a representative of Asahi Group, thinks the most deeply about AGP,
embodying a sense of mission and an ethical code
⚫ A leader who, regardless of any business environment, always exhibits a clear vision that
leads employees, and unshakeable code of values⚫ A leader who actively encourages different thinking and achieves growth if employees andthe Company through maximizing the capabilities of employees

Necessary
Skills of CEO

Character

Capabilities

Performance record

Personality, attitude andstance conductive toserving duties

Knowledge, ability,
expertise required toaccomplish duties

Necessary experience andsuccesses⚫ Foresight, decisiveness,competency⚫ Organizational leadership⚫ Learning skills⚫ Experience as a top
management ofoperating company of
RHQ*⚫ Experience ininternational operations⚫ Experience in addressing
discontinuous growth⚫ Sincerity and humility⚫ Mental toughness⚫ Open-mindedness

Skills required
as Director

Long-term Outlook& Strategic
MindsetManagement Skillboth globallyand locallyManagement of theCompany’s
Business

Finance,
Accounting &Internal Control*RHQ: Regional Headquarters
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25

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.