Japan Business Strategy
March 19, 2024
Asahi Group Japan, Ltd.

2023 Overview
2024 DirectionⒸASAHI GROUP JAPAN. All rights reserved.

2

Japan: Overview and DirectionRevenueCore OPCore OPMargin

2023 Results

+6.3%

+9.8%

11.3%

2024 Forecasts

+2.0%

+1.9%

11.3%

* Revenue and Core Operating Profit figures are YoY* Excludes liquor tax＜Overview for 2023＞⚫ Achieved better-than-expected performance thanks to appropriate pricing strategies
and enhanced investment in core brands, etc.
⚫ Expanded synergies as a “One Asahi” organization, promoted environmental, smart
drinking, and other sustainability initiatives＜Direction for 2024＞⚫ Enhance core brands that satisfy changing needs, expand new value proposition andhigh value-added categories⚫ Further strengthen management base by advancing human capital andorganizational functions across Japan and accelerating sustainabilityⒸASAHI GROUP JAPAN. All rights reserved.

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Japan (Alcohol Beverages Business): Main Topics⚫ Ongoing Beer Regression Analysis
Canned beer market by category⚫ Brand Investment Reaps Benefits
Asahi canned beer sales

2023 sales volume (vs. 2020)

Canned beer +18%
※Super Drycanned beer+9%*2020：Super Dry core product2023：Super Dry core product,
Nama Jokki cans, and Dry Crystal

Source: Intage SRI+ data for composition of canned beer, happoshu and new genre product markets
Estimated YoY sales volume for Jan 2019–Dec 2022
Seven channels: supermarkets, convenience stores, discount liquor stores, home improvement stores, drugstores,general liquor stores, and wholesale liquor stores⚫ Strengthening High-value Category
Asahi SHOKUSAI

Mirai no Lemon SourMarch 5: Nationwide release
June 11: Limited volume release in Tokyofor all channels
Metropolitan area and Kanto Shinetsu regionⒸASAHI GROUP JAPAN. All rights reserved.

⚫ Growing Smart Category (Smart Drinking)Asahi ZERO

April 9: Nationwidelaunch

Growing awareness of Smart Drinking

Source: Asahi Breweries

4Japan (Non-Alcohol Beverages, Food Business): Main Topics⚫ Non-Alcohol Beverages Business2023 Topics

2024 Topics• Launched Asahi Sou green tea brand• Measures to mark Mitsuya andWilkinson anniversaries (refreshedproducts, new product launches)• Strengthened health-conscious value
proposition
2023 sales
volume (YoY)

Total health drinks*＋2％*Foods with Functional Claims and Food for Specified Health Uses
such as Calpis-derived Lactic Acid Bacteria Science Series• Strengthening highly profitable small
PET bottle drinks• Expand label-less drinks
Total label-less2024 sales
products
volume forecast(YoY)⚫ Food Business
Rising Mintia sales
2023 sales (YoY)

2024 sales
forecast (YoY)ⒸASAHI GROUP JAPAN. All rights reserved.

Source: AGH sales volume composition ratio＋19％＋23％＋ 6％
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Future Strategy for theJapan BusinessⒸASAHI GROUP JAPAN. All rights reserved.

6Surrounding Business Environment• In a changing business environment, it is increasingly important to formulate
strategies that closely reflect the evolving values of consumers
Declining birthrate andincreasing elderly population（Accelerating population decline）

Further acceleration of healthconsciousness

Geopolitical risks（Tensions in East Asia and other regions）(Headwinds against alcohol beverages)

Further increase in sustainability
orientation

Major changes in theway we work

(Corporate sustainability initiatives become the norm)（Growth, satisfaction and diversity of employees）

Further Advancement of Technology（Merchandising with new techniques and materials.
New commercial distribution through the evolution ofIT technology）

Convergence of industries(Shakeout of competitors,
rise of cross-industry disrupters)

Diversification of valuesⒸASAHI GROUP JAPAN. All rights reserved.

（Individual values are diversified and prioritized）

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Future Strategy for the Japan Business• Optimize corporate value by connecting the ３+１ strategic pillars and 10 priority measures
Strategic concept

Anticipate needs and change from our consumers’ perspective, secure growth bycreating future value as One Asahi, and prosper alongside the society we serve
Three strategic pillars and priority measures
Growth1

Cost

Growth opportunity discovery &creation in the consumer-oriented way

4

Brand portfolio
optimization
Accountmanagement

52
3

910
ⒸASAHI GROUP JAPAN. All rights reserved.

Sustainability

Consolidation ofsourcing function
Production / logistics network redesign

6S&OP enhancement

8

SG&A streamlining
Talent reskilling

7 Incorporating sustainability
into business value
Leadership in achieving
neutrality

Stronger platforms

IT infrastructure enhancement and DX acceleration8

Today’s Menu of Topics• Today, I would like to explain our FY2024 initiatives, which coincide with the 3rd year
and the implementation phase of our regional headquarters (RHQ) structure.
Strategic concept

Anticipate needs and change from our consumers’ perspective, secure growth bycreating future value as One Asahi, and prosper alongside the society we serve
Three strategic pillars and priority measures
GrowthCosts
Sustainability
growth of existing
生活者起点での1 Sustainablebusinesses/brands
成長機会の探索と開発
ブランドポートフォリオ
2 Create
new value and businessin line with 最適化
changing markets

436

顧客マネジメント
Exploreand develop growth

opportunities from a consumer
perspective

9調達機能の統合

Enhance procurement functions

Achieve sustainability across ourvalue chain
Production/ logistics networkentire
redesign
Strengthen sales
and operationalplanning (S&OP)

5

S&OP強化Strengthen financial planning andanalysis (FP&A)
販売費・一般管理費

8

スリム化

7

サステナビリティのIncorporate
sustainability into
事業価値への反映
product concepts

ニュートラル化でのリーダーシップ

Stronger platforms

Talent reskilling
Develop more sophisticated human capital and organizational functions

10ⒸASAHI GROUP JAPAN. All rights reserved.

Promote DX
IT基盤強化とDXの推進
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Growth Strategy

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Sustainable Existing Business/Brand Growth• Invest profits generated from the stable growth of existing businesses and brands
into the following growth areas

Core brands
Further strengthen existingcore brands. Invest profits
generated by stable growth
into future growth areas

Smart drinking

High-value
Newvalue,
newgrowthⒸASAHI GROUP JAPAN. All rights reserved.

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Sustainable Existing Business/Brand Growth‐Increase Investment in Nikka Whisky‐• In order to further strengthen the brand, we will increase production of the whisky
and develop marketing that befits this high value-added productⒸASAHI GROUP JAPAN. All rights reserved.

12

Create New Value and Business that Reflect Changing
Markets (1)• Create new value and business in line with changing markets, and conduct andmanage both existing and new areas with ambidexterity
Yeast

Lactic acid bacteria

Starting yeast production in Japan,
expand the use of yeast extract and yeast cell walls

Developing as a common material
brand across the Group,
selling as a food ingredient

Cultivating yeast at theAsahi Breweries Ibaraki
BreweryⒸASAHI GROUP JAPAN. All rights reserved.

Making commercial
yeast at Asahi Group
Foods Tochigi Koganei
Factory

Strengthening our presencein the B2B market13

Create New Value and Business that Reflect Changing
Markets (2)• Promote future-looking initiatives in the field of “AI-enhanced medical care” at ourFuture Creation Headquarters (FCH)
Aillis, Inc.

We are looking for potential
business partners in the field of
feeding and swallowing

Solving issues relating to oral hygiene and care.
Building healthy bodies and maximizing lifetime value (LTV)
Aillis, Inc., a startup that uses AI technology to provide
diagnostic support, is driven by a mission to create open
medical care that can be innovated by everyone togetherⒸASAHI GROUP JAPAN. All rights reserved.

14

Explore/Develop Growth Opportunities from a
Consumer’s Perspective ‐New Marketing Department‐• A functional corporate department with dedicated marketing expertise will support
business with a high level of specialist knowledge

Asahi Group Japan
Alcohol
Beverages
Business

Asahi Group Japan
Marketing Department

Strategy&InsightNon-alcohol
Beverages
Business

RHQs
FoodBusiness▪ Explore share of the drink and food market from a perspectivethat transcends individual business considerations▪ Analyze common food and drink trends, external environment▪ Develop a review system that considers our three businessportfolios from the same perspective

HumanResourceTraining▪ Develop systems that celebrate excellent marketing activities
that go beyond individual business considerations

Project▪ Build mechanisms that avoid the creation of gaps between
business segmentsⒸASAHI GROUP JAPAN. All rights reserved.

Europe,SE Asia, Oceania▪ Develop training programs that transcend businesses andencourage learning through the sharing of mutual knowledge▪ Strengthen Japanbusiness bysharing knowledge
and experiencefrom other regions▪ Contribute to otherregions

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Cost Strategy16

Enhance Procurement Functions• Pursue cost reductions totaling approximately JPY 15 billion for direct and indirectmaterials by 2025, compared to a 2022 base year.

ⒸASAHI GROUP JAPAN. All rights reserved.

17Strengthen S&OP
• Since our new model has proved effective at improving the accuracy of demand forecasting,
we intend to expand the scope of its use going forward to secure greater cost efficiencies
Supply planning
Supplier

Demand forecasting

Central DC
Asia PacificSupplier

Distributer

Supplementary plan
Local DC

Supplier

Customer

Supplier
Plant
Central DCEurope

Supplier

Customer

Plant

Supplier

Inventory 物流planningPlant

Customer

Local DC
Central DC
AmericasCustomer

Retailer

Single Data (One Number) Platform

Decision-making process

Control tower

Scenario planning

Target operations
Model FC area map

FC operations
Medium to long-termNewproducts

RTD

Existing

Other

ExistingⒸASAHI GROUP JAPAN. All rights reserved.

Short-term

Preparatory plan

1

Inventory/transportation plan

Production plan

Refine model 3and tools

2

Expand operational plan to S&OP/SCM fields

Expandforecasting
fieldsTarget category

Category
B

Existing
products

SCM, S&OP (profit, overall optimization)---------------18

Strengthen FP&A
• Assign finance and business partners to each operating company and function andpromote FP&A networking
Alcohol
Beverages
Business

NonAlcohol
Beverages
BusinessFoodBusiness

AGJ
functionaldepartments

AGJ Finance FP&A

Center of Excellence(CoE)DX, procurement, FCH, HR…

• We began assigning finance and business partners to deal with overall capital
investment management and high-priority DX, procurement, FCH, and HR
functions, and are starting to establish more solid financial governance• Enhance financial checks of each measure, introduce a gate check system tomonitor policy progress (DX), and other initiativesⒸASAHI GROUP JAPAN. All rights reserved.

19Sustainability

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Achieve Sustainability Across Entire Value Chain• We aim to ensure our corporate activities are environment-conscious, peoplesensitive, and sustainable well into the future

Procurement

Production

Logistics

Sale

Consumption

Specific examples

Environment

Humanrights

Purchase raw
materials with
low CO2emissionsSwitch fuel andelectric power
used in factories
to renewableenergyWork with otherfirms to promote amodal shift andreduce longdistance truck
transportation

Capture andutilize CO2
generated in thedistribution
process

Conduct activities
to encourage therecycling ofcontainers after
eating and drinking

Buy agricultural
products produced
in an environmentthat upholds humanrights

Create working
environments
where factory
workers feel safe
and secure

Improve situationof long working
hours due to driver
shortages

Deal with business
partners that heed
human rights intheir management
practices

Do business withrestaurants that
respect the humanrights of foreign
workersⒸASAHI GROUP JAPAN. All rights reserved.

21

Achieve Sustainability Across Entire Value Chain‐Some Example Activities‐• Promoting various measures to achieve sustainability across our entire value chain
Procurement

Sale
Briefing on environmental
initiatives:
Attended by approx. 100
people from 50 major Asahi
Group raw materials andother materials suppliers

Production

Consumption

PETbottleBottle to Bottle= horizontal recycling

PET
bottleCascade cycle
Textilee.g. clothing

Sheete.g. egg carton
Hakata brewery

Heat recovery
e.g. fuel for
power generation

Nikka Moji factory

Logistics
Suita
brewerySuita
freightterminal

Kanazawa
freightterminal

Kanazawa
DCConsumers

Company A
B breweryⒸASAHI GROUP JAPAN. All rights reserved.

22

Achieve Sustainability Across Entire Value Chain‐2024 Logistics Issues‐• We aim to realize sustainable distribution by promoting “white logistics” that aredesigned to alleviate the shortage of truck drivers
Classification

Future initiatives

Delivery to wholesalers✓Promote white logistics/level out workloads (suppress sales waves)

Transport✓Improve operational efficiency

Short distance ( up to 300km)
Medium/long distance (300km-700km)✓Build transportation relay systems

Ultra long distance (700km+)✓Consider alongside modal shift (cooperate with Japan Railways)

Strengthen vehicle collaboration

Improve
operationalefficiency✓Strengthen external sales through Asahi Logistics,
strengthen cooperation with consumers, supply vehicles, etc.

Actual utilization rate
How much can you increase
vehicle time on the road×

Actual vehicle rate
How far you candrive with full cargo load×

Loading rate

How to ensure a full load

*We introduced a dynamic management system to help quantify the current system.
Going forward, we will determine some KPIs and implement various initiativesⒸASAHI GROUP JAPAN. All rights reserved.

23

Incorporate Sustainability into Product Concepts• Asahi Group firms practice sustainability through their products and marketing activities
Asahi Breweries

Asahi Group Foods
Approx. 77%
reduction in paper
footprint（350ml can six pack）

Asahi Soft Drinks

Approx. 11%
reduction in plastic
usage(Mintia regular series)

Approx. 78%
reduction in plastic
usage

Simple eco label
RegularApprox. 33%
product reduction in plastic(Switched from containers
to refill pouches)

usageⒸASAHI GROUP JAPAN. All rights reserved.

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Stronger Platforms

25More Sophisticated Human Capital,Organizational Functions• Promote more sophisticated human capital, and return more value to employees byreforming our human resources systems

Evolveour institutional platforms
Enhance
professional development

Improve
employee engagement

Job-based
human resource
systemⒸASAHI GROUP JAPAN. All rights reserved.

AGJ transfers

26Promote DX ‐Upgrading critical systems‐• Building system infrastructure that can respond quickly and flexibly to environmental
changes and business requirements
SoR (System of Record)

SoE (System of Engagement)Core systems
SCM

Accounting

B2B/B2E…

Sales
support

B2C…

Web
infrastructureSoI (System of Insight)

Communication management
Email/chat/phone

Web conferencing/meeting room management

Groupwide data analysis platform

Data collection andprocessing…
Dataintegration

Genericinfrastructure

Gateway function

Operationalmanagement platform

Configuration
management database

Integrate and transform…

Zero Trust securityⒸASAHI GROUP JAPAN. All rights reserved.

27

Promote DX ‐Utilizing AI‐• Incorporate generative AI into our business systems, create an environment thatfacilitates autonomous operational changes

×User operated

System embedded

Seamless information provision

StoreSearch
Introduce
intonormaloperations

UseMonitor usageⒸASAHI GROUP JAPAN. All rights reserved.

Generate,analyze

Convey information/
hold study sessions

28Information in this material is not intended to solicit the sale or purchase of shares in Asahi Group Holdings. The views,
estimates and other information included 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 or inconveniencethat may be caused by or in conjunction with any part of these materials.

ⒸASAHI GROUP JAPAN. All rights reserved.