Western Europe Business

May 2019

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

Our Vision

Asahi Europe will become aglobal premium beer powerhouse

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

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AEL’s role for Asahi GroupAEL leads the growth of Asahi Group in internationalbeer business to be global player with local approachthrough•Premiumisation in mother country business and•Global brand expansion in international business

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

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How are we delivering our growth plans?

Growth Engines

Rockets• Full potential mindset andstrategies• Focus on global cities with highpremium consumption• Opportunity-led portfolios
and unified brand platforms• Global brand-led portfolios andunified brand platforms• Flawless and disciplined
execution• Influence on the “last mile”
through bespoke routes-to-market• Centers of excellence
focused on our corecapabilities• Adopters of “best practice” in corecapabilities

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

4

We are making strong progress against all priorities

Driving strong andsustainable
performance in“Growth Engines”

Positioning “Rockets”
for disproportional
long-term success

Creating unassailable
competitiveadvantages

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

•Executing long-term strategies to achieve our targets•

Growing “Core Brands” N.P.R. in all markets•

Penetrating into growth segments via Innovation•

Driving cost efficiencies across all Businesses•

Delivering strong growth in current geographic footprint•

Expanding beyond current footprint based on our ability to win•

Developing strong commercial partnerships•

Embedding our “Ways of Working”•Developing world-class commercial capabilities•

Enhancing and growing our talent base•Optimizing our cost efficient and scalable back office•

Embedding our winning “challenger” culture5

Guidelines for the next 3+ years

Revenue：Average annual growth rate in the high single digits
Core operating profit：Average annual growth of +/- 10%2017 Results and 2018 Forecast(excluding foreign exchange impacts associated with conversion of local currencies into Euro)khl million Euro

2017ResultsAgainst
Target*3

YoY*2

2018Forecast

YoY*4

8,786

7%

6%

9,1194%

Net Sales (exl. Alcohol tax)

859

9%

5%

9057%

Core OP*1

154

13%

3%

167

10%

-1436-1-114

Sales Volume

Once off cost
*1 Core OP before reduction of one-off cost

*2 Comparison in FX rate of 2016. 2016 result is estimated number due to before acquisition*3 Comparison in target FX rate

*4 Comparison in FX rate of 2017

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

6

Guidelines for the next 3+ years

Revenue：Average annual growth rate in the high single digits
Core operating profit：Average annual growth of +/- 10%2018 Results vs Prior Year and Budget(excluding foreign exchange impacts associated with conversion of local currencies into Euro)khl、million Euro

2018
ResultsAgainst
Target*3

YoY*2

9,351

6%

3%

Net Sales (exl. Alcohol tax)

929

9%

1%

Core OP*1

172

13%

2%

-1

130

Sales Volume

One-off cost
*1 Core OP before reduction of one-off cost

*2 Comparison in 2017 FX rate. 2017 result is estimated number due to before acquisition*3 Comparison in budget FX rate

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

7Rockets Strategy (Asahi Premium Brands)• Rockets strategy is based on 4 pillars:• Premium Global brands portfolio• Bespoke route-to-markets by territory• Uncompromising in-market execution• Margin enhancement for distributors and customers

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

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Birra Peroni (Italian Business)• Birra Peroni will continue to drive top-line growth whiledriving for industry-leading Core OP margin,• Increasing penetration and premiumization of key socialisingoccasions• Step-changing availability and visibility in the North• Achieving preferred status among key customers• Key enablers to achieve this ambition:• Enhancing commercial capabilities - brand building, accountdevelopment, in-market execution• Simplifying business processes and streamlining costs

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

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Royal Grolsch (Dutch Business)• Royal Grolsch aims to become the leading superpremium beer business in The Netherlands on its way tototal market leadership by,• Increasing its focus on high-potential market segments• Accelerating the organic growth of the Grolsch brand• Achieving superior execution at the point of purchase /consumption• Key enablers to achieve this ambition:• Enhancing commercial capabilities - brand building, accountdevelopment, in-market execution• Improving product cost efficiencies

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

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Asahi U.K.

• Asahi aims to become the leading premium beerbusiness in the U.K. by,• Sustainably driving Peroni Nastro Azzurro to its full potential• Growing share of Asahi Super Dry in the Super-Premium lager
segment• Driving disproportionate value growth in the On and Off-Tradechannels• Key enablers to achieve this ambition:• Shaping a high performance culture• Enhancing processes and routines to increase investment
effectiveness and efficiency
Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

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We are operationally ready to face Brexit• Hedging to mitigate GBPEUR exchange rate volatility• Establishing customs clearance processes with logistics providers• Maximising use of “London Gateway” to minimize impact of ports’ congestion• Increasing U.K. stocks of top-nine SKU’s by two weeks• Offsetting incremental logistics and warehousing costs• Mitigating potential limitations on U.K. bank account passporting via EU-based
accounts

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

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U.K Premium Market Performance

Premium segment continues to out-perform the Lager category
by a significant margin
VALUE RATE OF SALE
• Within an increasingly competitive market,
AUK continues to grow the Peroni brand:• Increasing Brand Power (from 7.9 to 8.2 inQ1) growing ahead of competition• Driving Value Rate of Sale ahead ofcompetition (~ 50% higher)• Maintaining significant premium pricing tothe premium+ category in both channels• On-trade:• Peroni continues to retain a higher quality
distribution base vs the category averageand competition• Off-trade:• Peroni secured a 35% SKU distribution
increase in our biggest customer, Tesco(from April)
Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

ON TRADE

OFF TRADE

£602

£190

£366

£105

£402

£97

£300

£59A
Company

B
CompanyC
Company

DRAUGHT DISTRIBUTION SPLIT BY
OUTLET QUALITY TIER
4%
PLATINUM

11%

31%

5%
39%

47%

GOLD

6%

48%

38%
SILVER

38%
35%

27%
BRONZE

26%PREMIUM
PREMIUM
LAGER

15%

18%

11%PNA

MORETTI

ESTRELLA

Company

CompanyAB

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Peroni Nastro Azzuro
Elevate the brand above competition through packaging
redesign, focusing on Style and Quality
DIGITAL FIRST APPROACH
SOCIAL MEDIA-LED

OFF TRADE

ON TRADE & EVENTS“Peroni Style Edit”
Collaboration with 5
influential content
creators from aroundthe world

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

14Peroni Libera
Elevating and premiumising the non-alcoholic beer segment
PR LAUNCH ACTIVITY

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COMMUNICATIONDRIVING TRIAL THROUGH KEY
PARTNERS AND EVENTS15Asahi Super Dry: Strategic Plan
Our ambition is to become the number 1 Super-Premium beerbrand in the world
FROM:TO:“THE JAPANESE ONE” ON THE BAR,ONLY ASSOCIATED WITH JAPANESE FOOD

INSPIRE THROUGH ASAHI SUPER DRY’SUNIQUE “KARAKUCHI” TASTEOBJECTIVE:DRIVE TRIAL WITH ENRICHMENT SEEKERS IN A DISTINCTIVE WAY

KEY TASKS:TASK 1: GROW SUPERPREMIUM MARKETPRESENCE AND TRADEADVOCACY

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

TASK 2: ELEVATEPURPOSE BEYOND
FUNCTIONAL KARAKUCHITO AN EMOTIONALASPIRATIONAL MIND-SETTASK 3: BRING THE
CONCEPT OFKARAKUCHI TO LIFE
THROUGH
EXPERIENCES

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Asahi Super DryPRESENCE:
TRADE ADVOCACYCopyright © ASAHI GROUP HOLDINGS. All rights reserved.

PURPOSE:COMMUNICATIONEXPERIENCES:
BRING KARAKUCHI TO LIFE

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Strategic Rationale for Fuller’s Acquisition• Fuller’s contributes to the achievement of the Asahi Europe Vision,• Enhances our premium brands portfolio• Generates incremental international expansion opportunities• Delivers above market average revenues• Fuller’s brands are complementary to our existing portfolio,• Provide access to new value pools (ales, cider, entry premium lager)• Offer the potential to access incremental consumer segments andmoments• Fuller’s aligns to our current business model and organisationalstrengths• Fuller’s will contribute to Asahi’s reputation
Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

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Guidelines for the next 3+ years

Revenue：Average annual growth rate in the high single digits
Core operating profit：Average annual growth of +/- 10%2018 Results and 2019 Forecast(excluding foreign exchange impacts associated with conversion of local currencies into Euro)khl、million Euro2019
ForecastYoY*2

9,3180%Net Sales (exl. Alcohol tax)

977

5%

Core OP*1

190

11%

01Sales Volume

One-off cost
*1 Core OP before reduction of one-off cost
*2 Comparison in FX rate of 2018.

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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.