CentralEurope
EuropeBusinessBusinessCentralMay 2019

Asahi Breweries Europe Group – a reminder#1

PolandKompania Piwowarska
Population
38.4 mMarket size 36.9 mhl
Market share 36%
PCC
99 l

#1CzechPlzeňský Prazdroj
Population
10.6 mMarket size 14.9 mhl
Market share 48%
PCC
143 l

#2

SlovakiaPlzeňský Prazdroj
Slovensko
Population
5.4 m
Market size 4.4 mhl
Market share 37%
PCC
76 l

Bialystok

PoznanPilsen Nosovice
Popovice#1

Romania

Ursus Breweries
Population
19.8 mMarket size 18.5 mhl
Market share 37%
PCC
94 l

Tychy

#1

HungarySaris
Budapest
Timisoara

Brasov
Buzau

Dreher Sörgyárak Zrt.
Population
9.8 m
Market size 7.0 mhl
Market share 33%
PCC
57 l
Europe (Export)
Asahi Brands EuropeBrewery

Asia-Pac (Export)
AE Brands Korea

Source: Czech: CBMA monthly data, Slovakia: internal estimates, Poland: GUS dom. *excl. NAB, Romania: Deloitte, Hungary: internal estimates.
Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

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We are a diverse international team based in Prague

Paolo Lanzarotti
CEOCountries worked in:
UK, Italy, France, India,Slovakia, Czech RepublicCompanies worked for:
ExxonMobil, SABMiller,Asahi
Languages spoken:
English, Italian, French

Catherine Sinclair
HR Director
Countries worked in:
UK, Australia, New
Zealand, Switzerland,
Czech RepublicCompanies worked for:Thames Water, Cadbury,
SABMiller, Asahi

Drahomíra Mandíková
CA Director

Charles Jourdain
Supply Chain DirectorNiël Malan
IS Director

Andrew Bailey
CFO

Countries worked in:
Slovakia, India, Czech
Republic

Countries worked in:
Brazil, USA, Colombia,
Czech RepublicCountries worked in:South Africa, Colombia,
Czech RepublicCountries worked in:
UK, New Zealand, Russia,
Poland, Czech RepublicCompanies worked for:Investment &Development Bank,SABMiller, Asahi

Companies worked for:Cervejarias Kaiser Brasil,Molson, SABMiller, Asahi

Companies worked for:Eskom Holdings, Vibrom
Systems, SABMiller,
Asahi

Companies worked for:
PwC, Sony, SABMiller,
Asahi

Languages spoken:
English, Spanish, Italian,Portuguese, French

Languages spoken:
EnglishLanguages spoken:
Slovak, Czech, English,
German, Russian

Grant McKenzie
Marketing Director

Igor Tikhonov
MD Poland

Grant Liversage
MD Czech & Slovakia

Paul Barnett
MD Asahi Brands EuropeRaymond StarkMD Asia PacificCountries worked in:
UK, Hungary, Spain,Romania, Czech RepublicCountries worked in:
Russia, Ukraine, Belarus,
Kazakhstan, Slovakia,Romania, Poland

Countries worked in:South Africa, Hong Kong,
Botswana, Swaziland,Zambia, Ghana, India,
Mozambique, Czech
Republic

Countries worked in:Czech Republic,
Switzerland, Singapore,
Australia

Countries worked in:Australia, Korea, Hong
Kong, Vietnam, Ghana,Zambia, Botswana,
Swaziland, South Africa

Companies worked for:Mars, SABMiller, Asahi
Languages spoken:
English, Spanish, Czech

Companies worked for:Mars, SABMiller, Asahi

Languages spoken:
Russian, English,
UkrainianCompanies worked for:
KPMG, Barlow Group,SABMiller, Asahi
Languages spoken:
EnglishCopyright © ASAHI GROUP HOLDINGS. All rights reserved.

Companies worked for:Johnson&Johnson,
Nestle, Bauer MediaGroup, SABMiller, Asahi
Languages spoken:
English, Chinese

Languages spoken:
English, Afrikaans

Companies worked for:
KPMG, SABMiller, Asahi
Languages spoken:
EnglishLanguages spoken:
EnglishDragos Constantinescu
MD Romania & Hungary
Countries worked in:
UK, Belgium, Sweden,
Netherlands, Poland,Romania
Companies worked for:British American
Tobacco, Asahi
Languages spoken:
Romanian, English,
Dutch, Polish, Spanish

3

We are bringing the new group philosophy to life

COMMITTED

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

BOLD

COOPERATIVEEMPOWERINGCURIOUS

4

Global trends & foresights confirm our strategic choices

Health & wellness
touches everything

Variety is enjoyedby moreNeed for simple
and genuine

Sustainability
turned mainstream

Personal responsibility forpreventative medicine: Eatwell, live well.

New generations cook and eat
diversely driven by availabilityof ingredients, online video
lessons and ethnic casual foodgrowth.

In contrast to a complex world,
consumers want some
simplicity and the comfort ofstability.

Consumers increasingly
expect that companies looklonger term and support
societal issues.

Demand for Retro and Local
products is increasing.

Quality is standard andconsumers increasingly wantto buy from brands thatmirror their values.

Increasing self-control associal media remembers.
Physical health based on
informed and moderatechoices. Mental healthincreasingly valued.

Need for authentic drinks toaccompany and partner withall kinds of food.

Socializing beer moment
represents a time off fromdecision-making.

Macro economic conditions across the region remain positive, but global tensions andregional regulatory dynamics will prove challenging
Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

5Performance consistently delivers Value growth

From FY2018 Financial Results Presentation (Feb14, 2019)◆ 2018 Results•Above target Sales driven across all geographies, with strong performance in premium, focused execution and assisted bygood weather.

•Profit increased above target driven by brand/segment mix improvement, price and cost optimisation programs.

◆ 2019 Forecast•

Revenue growth ahead of volume with strong leverage to Core OP in line with our overarching strategic drivers.

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

6

Some country level flavour across the portfolio
C18

C19 Q1Poland• NPR/hl growth• Relaunch of Lech and Tyskie••

Good performance of Książęce & Kozel
Launch of B-Life and growth of Lech Free 0.0

CZ/SK• Growth in the On-Trade by over 2% in CZ• Strong growth of Pilsner Urquell in Slovakia••

Growth of NAB portfolio across both markets
Return to growth of Gambrinus in CZ• Strong revenue growth even with limited grid••

Launch of B-Life (fourth market)
Season preparation while building new capacity

Hungary• Portfolio premiumization including ASD launch• Exit of Economy & positive NPR/hl in Mainstream••

Kozel repositioning and relaunch
Dreher Craft extended & Dreher Gold relaunched

ABE• Strong Germany performance – PU and Tyskie• Growth of Kozel across multiple markets••

Prioritization of key growth marketsTargeted ATL support for PU and Kozel• Good growth in Korea, driven by Kozel• Distribution gains in Taiwan, Hong Kong,Singapore, Thailand, Vietnam••

Launch of Kozel Dark NAB in Korea
Continued distribution gains in other markets acrossAsia Pacific (x10, x6, x3)

Romania • Launch of Ursus Retro (premium to premium)

Korea &APAC

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

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Our growth strategy remains unchanged◆ Our global mission
To deliver on our great taste promise and bring more fun to life
◆ 3 key strategic priorities

Premiumizing
our scaleScaling ourpremiumization

Simplifying
to intensify

Focus on domestic(90% of NPR)

Focus on international(10% of NPR)

Focus everywhere

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

8

Premiumizing our scale◆ The rise of brewed adult soft drinks•

Opportunity goes well beyond “negative choice” into the CSD category•

Our portfolio covers both beer brand extensions and stand-alone brands•

There is still space to grow – our share lags the category in Poland andHungary

5% of total NPRPolandCzech Republic & Slovakia

Relaunch of Lech Free 0.0%
Launch of B-Life Botanicals

Relaunch of Birell flavoured
Birell Botanicals new variant

YoY category growth: 83%
YoY NPR growth: 73%
Share of category: 22%

YoY category growth: 26% (CZ), 18% (SK)YoY NPR growth: 25% (CZ), 11% (SK)Share of category: 65% (CZ), 27% (SK)

HungaryRomania

Relaunch of Dreher 24

Launch of B-Life Botanicals
Ursus Cooler new variant

YoY category growth: 20%
YoY NPR growth: 29%
Share of category: 8%

YoY category growth: 27%
YoY NPR growth: 49%
Share of category: 39%

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

9Premiumizing our scale◆ Uptrading and innovation around core portfolio• Seeking to deliver beer culture and craft experience for all• Revenue management central to our success• End to End process – from strategy to execution
Upgrades of scale brands

70% of total NPR
3% NPR/hl growthCore lager innovations

150th anniversary of Gambrinus
On-Trade launch of Gambrinus 11

Building of unpasteurized segment with Ursus
RetroRelaunch of Tyskie
Upgrade of LechLaunch of Kozel Mistrův ležák

Relaunch of Dreher GoldCopyright © ASAHI GROUP HOLDINGS. All rights reserved.

10Premiumizing our scale◆ Bringing variety with complex new styles outside of lager• Seeking to deliver craft experience for all• Experimenting with new styles in premium andsuper-premium price range

1% of total NPR
69% YoY NPR growth

Crafted innovations outside lager
Volba sládků programme introducing new beer style every month
Introduction of IPA, Porter, Weizen into Książęce entry-craft range
Relaunch of Dreher craft range incl. new Dreher Pale Ale & Dreher Red Ale
Launch of Šariš EjlCopyright © ASAHI GROUP HOLDINGS. All rights reserved.

11Premiumizing our scale◆ Building our world lager subcategory in Central Europe•International lagers are growing all around Central Europe, growth outperforming the overallbeer market in our domestic markets

Asahi Super Dry in Hungary

Peroni in Romania

2018 was the first year in the market

18% YoY NPR growth in 2018

Testing full mix model, which includes On-Trade and OffTrade distribution, key opinion leader activation, digitalcommunication, ATL and BTL support

Strong marketing support, including Casa di Peroni andRiviera Peroni activations in the season
Introduction of new bottle and glass design

Seeding in Asian restaurants and key bars in other markets

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

12Premiumizing our scale◆ Accessing wine & spirits occasions
Ciders in the Czech Republic
Two brands in the portfolio:• Kingswood for apple-based ciders• Frisco for flavoured ciders
50% share of category

Spirit-flavoured beer in Poland
Launch of a new brand in autumn 2018
•Captain Jack, beer flavoured with rum

Plans in place to reach 20% of market
leader’s sales in 201911% YoY NPR growth

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Scaling our premiumization◆ Pilsner Urquell growing globally• Super-premium proposition exclusively from single source• Pilsner Urquell defines the Czech category worldwide• 131 tank pubs outside of the Czech Republic• Over 120 international tapsters trained, operating in 17 countries
Domestic markets

International

Solid growth in Poland and Hungary

Launch in Japan and China

Developing the Czech beer category in Romania

Seeding in Asia – focus on distribution gains

1.5 mhl0.5 mhl

0.7 mhl

Czech Republic

Other domestic markets

International+2% YoY+14% YoY+10% YoY

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Scaling our premiumization◆ Making Kozel Velky (big in “Czech” …outside Czech)• Kozel provides scale for the Czech category at premium• Playful brand with a full mix of liquids – dark, pale, non-alco• Growth model is to move to local production as soon as possible
Highlights

5Kozel volume performance (Million HL)

4

Repositioning in Hungary, supported by full mixmarketingStrengthening of marketing support in Poland
ATL in Croatia, Slovenia, Austria and Finland

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2
10

2002
2003
2004
2005
2006
20072008
20092010
2011
2012
2013
2014
2015
2016
2017
2018

Introduction of Kozel Pale in South Korea

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Simplifying to intensify

Simplify

Intensify• Reporting and process rationalization• Talent management process globally• Reduction in unproductive meetings• Leadership development programs• Streamlining of strategic planning
process• Focus on Sustainability and Circular
Economy• Operational decision making processes• Building brand equity through longterm investment• Organisation in Supply Chain• IT cost structure and vendor mapoptimisation• Focus on diversity and inclusion• Health & Safety and GovernanceKey cost optimisation initiatives
IT architecture & infrastructure

ISM: our version of ZBB

Procurement: cost savings & cost avoidance

Value Engineering in Economy and packaging

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

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So, as we look forward

Growth opportunities

Headwinds•

Disproportionate growth in NAB across theregion•

Unpredictable political environment in mostcountries•

Accelerated growth of the Czech segments
both in Europe and Asia•

Competitive labour market in the region•

Commodity increases and unpredictability,e.g. hops, aluminium, forex•

Crafted portfolio growth across the region•

Growth of premium segment across theregion•

Channel drift from On-Trade to Off-Tradeacross the region•

Cost synergy potential with Group•

Competitive landscape intensifying•

Sustainable Development agenda•

Indirect impact of global politics

Mid term financial guidanceContinued confidence in delivering low/mid single digit revenue andhigh single digit Core OP CAGR growth over next 3 years
Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

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In conclusion• Scale is good, premium scale is better. We have both in our domestic markets• NAB is by far the biggest near-term opportunity• Top line growth continues to come through further local premiumization, local and regionalinnovation and accelerated international expansion• Bottom line growth is being enhanced through a fit-for-purpose cost mentality• Performance has been constantly good over the last two years, thanks to focused strategy,great execution and positive weather• We have strength in depth across the approx. 7,400 people that work in our markets andbreweries, but we need to intensify efforts to improve diversity• Our people are a resource for us, but also for Group, as it evolves• Mid term financial guidance is achievable. Our belief is strong and credibility is there given
consistent performance.

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

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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.