Asahi Europe & International
European Business Strategy Briefing Session
14th June 2024

Agenda• Asahi Europe & International Overview• Portfolio• Profit• People• Planet• Purpose• Close and Q&AⒸ ASAHI EUROPE & INTERNATIONAL. All rights reserved.

2

Asahi Europe & International Overview

AEI Leadership Team

Paolo Lanzarotti
Chief Executive Officer

Catherine Sinclair
Chief Human
Resources Officer

Pavlína Kalousová
Chief Corporate Affairs
OfficerDavid Bidau
Chief Supply Chain
OfficerAndrew Bailey
Chief Financial Officer

Nathalie Pfaff
Chief Growth Officer

Takefumi Takano
AEI Business Liaison
LeaderIgor Tikhonov
MD Poland & Hungary

Gábor BékefiMD Dreher BreweriesⒸ ASAHI EUROPE & INTERNATIONAL. All rights reserved.

Michał Mrowiec
MD Romania

Dragos Constantinescu
MD Czech, Slovakia,
Germany & Austria

Enrico Galasso
MD Italy

Emily Pittman
MD Netherlands & France

Tim Clay
MD UK & Ireland

Kinyi Choo
MD
Asia PacificVictoria Segebath
MD EMEA& Americas

4

We’re centred in Europe, but manage the complexity of global
expansion

19 production
facilities in 8
countries

2022

2023

41.3mHL 42.2mHL
€2.9b
€3.4b

40.8mHL€3.8b

2021
VolumeNPR

10,000+ people

90+ marketsⒸ ASAHI EUROPE & INTERNATIONAL. All rights reserved.

Financials presented in constant currency based on 2023

5

Strategy Recap

6

Our overarching Purpose is clear, with a strategy based on four pillarsⒸ ASAHI EUROPE & INTERNATIONAL. All rights reserved.

7

Ⓒ ASAHI EUROPE & INTERNATIONAL. All rights reserved.

8

Macro data is starting to show less challenging conditions
Inflation rate has been significantly
decreasing over past year

GDP growth rate rebounding
since the end of 2023

Retail sales value growing
at a moderate pace
113.9

16.5

3.5

111.3
2.4

2.2
03/23

03/24

2021

2022

-0.2

-0.1

2023
Q1

2023
Q2

0.2

0.3

2023
Q4

2024
Q1 F

-0.6
2023
Q3

04/23

03/24

118.3

8.7
115.9
10.1

4.3
3.2

0.2

0.0

0.0
-0.1

-0.3

6.9
5.6

15.2

131.4
2.1
2.7

0.5
-0.4

Ⓒ ASAHI EUROPE & INTERNATIONAL. All rights reserved.

Sources: Eurostat, national banks, national statistical offices

129.3

1.0

-0.6

Note: index vs 2021 (CZ, PL), index vs 2019 (UK)9

Category development is under long term pressure
Volume growth index(2019=100)

Volume – AEI Europe region total(mil.hl)
OFF trade
ON trade

AEI –Europe reg.
total

2019

2020

2021

2022

Ⓒ ASAHI EUROPE & INTERNATIONAL. All rights reserved.

2020

2021

2022

2023

92

93

98

93

94

91

96

95

83

88

98

94

95

94

96

89

2023
10

Despite pressure on consumer spending, we still see the trend topremiumisation at the regional level and across most markets
AEI – Europe reg. total

8%
18%

8%
19%

8%
19%

Superpremium
Premium
Mainstream
Affordable

24%

25%

26%

10%

9%

10%

15%

16%

16%

MAT MAT MAT
03/22 03/23 03/24

47%

47%

48%

MAT
03/202226%

MAT
03/202326%

MAT
03/2024Ⓒ ASAHI EUROPE & INTERNATIONAL. All rights reserved.

Sources: consolidated data sources

29%

9%

10%

10%

19%

19%

19%

28%

MAT MAT MAT
03/22 03/23 03/24

36%

35%

12%

12%

12%

24%

24%

23%

MAT MAT MAT
03/22 03/23 03/24

18%

18%

19%

10%

10%

11%

8%

8%

8%

MAT MAT MAT
03/22 03/23 03/24

Premiumisation visible in full year view with Premium+ share
growing in the mix driven by Premium brands

24%

27%

28%

36%

7%

24%
6%

22%
6%

18%

18%

16%

MAT MAT MAT
03/22 03/23 03/24

30%

30%

8%

8%

8%

20%

22%

23%

28%

MAT MAT MAT
03/22 03/23 03/24

36%

36%

36%

10%

11%

11%

25%

25%

25%

MAT MAT MAT
03/22 03/23 03/24

23%
6%

25%
6%

26%
6%

17%

19%

20%

MAT MAT MAT
03/22 03/23 03/24
11

Premiumisation is generally holding in Q1 with continued pressure on
Affordable
AEI – Europe reg. total
7%
17%

48%

7%
17%

48%

7%
17%

34%

Superpremium
Premium
Mainstream
Affordable

22%

23%

22%

9%

9%

9%

14%

14%

13%

Q1
2022

Q1
2023

Q1
2024

27%

27%

27%

9%

9%

9%

18%

18%

18%

Q1
2022

Q1
2023

Q1
2024

12%

22%

Q1
2022

Q1 202228%

Q1 2023

28%

Q1 2024

Affordable continues to be under pressureⒸ ASAHI EUROPE & INTERNATIONAL. All rights reserved.

Sources: consolidated data sources

35%

12%

12%

23%

22%

Q1
2023

Q1
2024

32%

33%

10%

11%

19%

17%

17%

11%

10%

9%

8%

8%

8%

Q1
2022

Q1
2023

Q1
2024

24%

23%

5%

5%

22%

18%

18%

16%

Q1
2022

Q1
2023

Q1
2024

47%

34%

27%

36%

22%

21%

21%

5%

5%

6%

16%

16%

16%

Q1
2022

Q1
2023

Q1
2024

28%

28%

27%

8%

7%

7%

11%

21%

21%

20%

23%

22%

22%

Q1
2022

Q1
2023

Q1
2024

Q1
2022

Q1
2023

Q1
2024

6%

12

The market is innovating – with the focus on premium segments, andincreasingly outside of the clear lager segment
In the last 12 months, we see the majority of newofferings being launched into the Premium andSuper Premium segments.

8%
19%

Innovation focus is outside of clear lager, with flavoured
products being key. These innovations are generally at 2030% premium to mainstream lager.

13%

21%

42%

"New Categories"
Clear Alc. Lager

30%
48%

87%
32%

26%
Total
MAT 3/2024

17%
Newcomers
2023-24
MAT 3/2024Ⓒ ASAHI EUROPE & INTERNATIONAL. All rights reserved.

Sources: consolidated data sourcesSuperpremium
Premium
Mainstream
Affordable

58%

Total
MAT 3/2024

Newcomers
2023-24
MAT 3/2024
13

Our portfolio strategy is aligned to these category trends

1

2

Scale our Global
BrandsScale local craft
brands4

3

Expand NAB and win
leading shareⒸ ASAHI EUROPE & INTERNATIONAL. All rights reserved.

Sustain health of local
hero brands

Build regional
portfolio of“flavoured” brands

5

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And in 2023 we saw strong performance in the Global Brands & NAB
segments

1

2

Scale our Global
BrandsScale local craft
brands4

3

Expand NAB and win
leading shareⒸ ASAHI EUROPE & INTERNATIONAL. All rights reserved.

Sustain health of local
hero brands

Build regional
portfolio of“flavoured” brands

515

These two segments outperformed total AEI volume growth

Total AEI

Total
GlobalBrandsPeroni
NastroAzzurro

Asahi
Super
Dry

NABs

-3%

+4%

-1%

+35%

+1%

Ⓒ ASAHI EUROPE & INTERNATIONAL. All rights reserved.

Source: Volume performance vs 2022; Internal AEI data (volume outside of the home market)

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We have invested in incredible partnerships for our two focus Global
BrandsⒸ ASAHI EUROPE & INTERNATIONAL. All rights reserved.

17

PERONI NASTRO AZZURRO 0.0% X SCUDERIA FERRARI
2024Ⓒ ASAHI EUROPE & INTERNATIONAL. All rights reserved.

WE SET INDUSTRY BEST PRACTICE AND BECAME THE MOST TALKED ABOUT BRAND PARTNER IN FORMULA ONE™ BEFORE THE
2024 SEASON STARTED – OUR MOST SUCCESSFUL PIECE OF BRAND COMMUNICATIONS EVER….

Ⓒ ASAHI EUROPE & INTERNATIONAL. All rights reserved.

Ⓒ ASAHI EUROPE & INTERNATIONAL. All rights reserved.

WE CONTINUE TO ACCELERATE BRAND FAME THROUGH THE BIGGEST
Asahi SuperDry has been
seen over times acrossCLUBIN WORLDFOOTBALLKEY INSIGHTS

social channelsⒸ ASAHI EUROPE & INTERNATIONAL. All rights reserved.

And our newest brewey, Octopi, provides a platform for growth inNorth America
Octopi Overview
Background• New build brewery, packaging andwarehouse facility. Opened as beer copacker in 2014
• Has gone through multiple expansions andshifted increasingly into beer alternative
categories (e.g. RTDs, non alc drinks)

Strategic Rationale
Asahi USA and Canada Brand Growth• Transforms the economics and profitability ofparticipation in both the US and Canada• Improved margin structure allows increased
brand investment. Key competitors alreadyproduce locally• Allows greater pack flexibility, new beer brandlaunches, as well as stepped-up participationin RTD and non alc beverages

Facility

Supply chain flexibility• Based in Waunakee, Wisconsin, USA• Enables shorter lead times, higher levels ofcustomer responsiveness and the ability toreact to market dynamics and opportunities• 2023 production of 600kHL with headroom togrow to > 1mHL on existing site
• Flexible production capability. Additional
investment will enable Asahi USA and
Canada’s mid term production requirements• Site is well positioned geographicallyTeam & Community

Business Case•

Currently c. 250 employees•

Strong senior team•Opportunity to create an integrated backoffice•

Taproom onsite that is open to the public
and serves as a way of engaging the
local communityⒸ ASAHI EUROPE & INTERNATIONAL. All rights reserved.

• Delivers significant Ocean Freight savings• Improves our Carbon footprint (Scope 3
Logistics reduction)• Drives incremental EBITA• Continuing co-packing volumes ensure
efficient facility utilisation• Grows USA volumes

Ⓒ ASAHI EUROPE & INTERNATIONAL. All rights reserved.

23

Input cost pressures continue to soften but still not back to pre-war
levelsKey inputs price indices
C19 = 100

Key reasons for slower pricerecovery to pre-war levels

350

BarleyPower
Natural Gas
Aluminum

300
250
200
150
100
50
0

2019

2020

2021

Ⓒ ASAHI EUROPE & INTERNATIONAL. All rights reserved.

Source: Internal estimations

2022

2023

2024

BARLEY• Supply disruption due to war in Ukraine• Poor crop 23 performance in EU• Inflationary trend in EU (main source of malting
quality barley)– Labor cost increase– Fertilizers price growth• High malting premiums vs. feed barley• No substitute on market compared to othergrains (wheat/corn)
UTILITIES• Power strongly connected to NatGas which
experienced strong disruption by war in UKR• Despite correction vs. the peak in 2022 andlower demand the NatGas price stabilized atmore than +50% vs. pre-war level24Labor cost pressure expected to continue
Average wage indicators development, 2019-2023 cumulative
60

Wage growth, % nominal
CPI, %
Real wage growth, %

50
40
30
20
10
0
-10

EU19

CZE

GER

ITA

POL

Despite high nominal wage growth the real average wage has declined over the last 4 years inmajority of AEI key markets, leading to increased future labor cost pressureⒸ ASAHI EUROPE & INTERNATIONAL. All rights reserved.

Source: Eurostat

25

A reminder of our strong Revenue Management principles•

Our Revenue function is called Profitable Revenue GrowthManagement (‘PRGM’) to remind us that we need toconsider profit and revenue•

When evaluating price we’re not just directly pricing for input
costs, but considering brand strength, elasticity, mix andprofitability•

Our brand strength and our broad portfolio, across price andpack segments, has supported us at this time, with reusable
packaging proving it’s value from both a planet and profit
perspectiveⒸ ASAHI EUROPE & INTERNATIONAL. All rights reserved.

26

We demonstrated our ability to take price when we needed to. We are
now returning to "normalised" environment
Retailers have largely chosen to pass our price moves to their shoppers
Example of two Asahi brands in one of our CEE markets

Numbers reflect shelf price moves for single SKU for each brand, each brand has index 100 for 2019. Source, AEI Sales Rep on-shelf price audit, HM/SM channelⒸ ASAHI EUROPE & INTERNATIONAL. All rights reserved.

27

We continue to used technology to accelerate knowledge sharing andfacilitate faster, better decision-making for Promotional Effectiveness• Automated Promotional Effectiveness Tool will be in 7 of our 8 EU brewing markets by end of the year
• 5 of these markets have a tool (TPO) that utilises prescriptive technology to optimise price promotional spend• These tools deliver speed of analysis and breath of scale to evaluate all SKUs
• Pricing reports already shared inside our Insight Knowledge Bank and we expanding their use

Pricing reports integrated into our Insights Knowledge BankⒸ ASAHI EUROPE & INTERNATIONAL. All rights reserved.

Implementing Trade Promotion Optimisation tool across our markets
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Q1 results show good revenue gains, driven by pricing and goodshare performance across scale markets
40

30

20

10

0

-10

-20

AEI

Czech Republic

PolandRomania
VolumeⒸ ASAHI EUROPE & INTERNATIONAL. All rights reserved.

Numbers are Q1, constant currency, non-organic. Bars represent range and not specific values

Hungary

Netherlands

Italy

Revenue29Based on MAT share data we continue to see strong shareperformance across our scale markets

Position

1

1

1

1

1

3

3

#5

Change(MAT)+170bps+10bps+100bps+210bps+70bps+50bps-20bps-20bpsⒸ ASAHI EUROPE & INTERNATIONAL. All rights reserved.

Off Trade Value market share, MAT to end Q1 2023 vs. Q1 2022

30

Strong focus on costs to unlock profit leverageValueengineering

Supply Chain
optimization

Fixed costs
efficiency• High level of scrutiny on COGS
area

• RTM revision to unlock cost
opportunities• Strong focus on fixed costs
control• Focusing on efficiency inproduction process• Optimization of supply chain
grid• Benchmarking across markets• Leveraging on strongprocurement organization• Automation technology
deploymentⒸ ASAHI EUROPE & INTERNATIONAL. All rights reserved.

Automation &Digitalization• Customer interaction
digitalization (B2B platform,
customer portal)• Asahi Business Services
introduction to standardize &
automate processes

31

Ⓒ ASAHI EUROPE & INTERNATIONAL. All rights reserved.

32

Our People Strategy has four pillars and we’re making good progress
A modern, diverse
inclusive culture thatdrive successAccelerate thegrowth of talent

28% women executives

41 Go Graduates across AEI over 3 years.

Inclusive Leadership training completed
across AEI for 180 leaders internally

Record number of internal moves
across our region, and between Asahi
regions.

Shifted DE&I beyond gender: LBGTQ,Disabilities ERGs and GenNext YouthCouncil

New Employee Branding “You are our
future legacy” in all countries.
New Talent Acquisition Policy andsupporting Playbooks aimed at
improving the candidate experience,

Raised profile of “Women in Beer”
focusing on Integrated Supply Chain
Integrated conscious inclusion practices
into our Talent Acquisition processes toensure fairer representation of womenand minorities.

Ⓒ ASAHI EUROPE & INTERNATIONAL. All rights reserved.

Build a learning consumer
focused organisation
Leadership Development Programmes(FL-EDGE & L-EDGE) and new Leading
Leaders
Refreshed Go Graduate Development
Experiences
Competency frameworks completed anddigital learning Platform in placeAwarded EMCC Global Gold status for ourmentoring programme recognizing its
design and its contribution to thedevelopment of participants
Revenue Management learning pathway
and Sustainability Academy.

Support the Health &Wellbeing of all our
peopleSenior leaders completed mental healthtraining and cascaded to all managers
Mental health team breakfasts initiativewith GenNext, across entities to haveinitial conversations with employees
Partnership with Affinity as our mental
health regional partner using maturity
mapping for longer term planning

I Care Safety Leadership programme
launched with 100% of senior leaders
attended and cascading down into the
local operating business.
New EAP provider selected ensuringconsistent support for all employees andfamily members across all countries

Ⓒ ASAHI EUROPE & INTERNATIONAL. All rights reserved.

34

AEI SUSTAINABILITY JOURNEY

2040
CARBON NEUTRAL/ NET ZEROACROSS OUR VALUE CHAIN

2023
FOCUS ON
RENEWABLE ELECTRICITY(Towards 2025 Target)

RENEWABLE HEAT

(Due-diligence & implementation towards
2030 Target)

2025
100% RENEWABLE
ELECTRICITY

PACKAGING(EU Directives & Due-diligence &implementation towards 2030 Target)

2030
100% CARBON NEUTRALITY IN BREWERIES
30% SCOPE 3 REDUCTION
2.75 l OF WATER PER LITRE OF BEER
BREWED
100% INGREDIENTS SUSTAINABLY SOURCED
100% PACKAGING REUSABLE, OR
RECYCLABLE
EQUAL SHARE OF WOMEN IN LEADERSHIP

2022

BRAND MAPPING - LEGACY 2030 COMING TO LIFE
THROUGH OUR BRANDSⒸ ASAHI EUROPE & INTERNATIONAL.
All rights reserved.
TARGETS,COMMITMENTS, PLATFORMS, BRANDING &VISIBILITY, THOUGHT LEADERSHIP

20% SHARE OF NON-ALCOHOLIC PRODUCTS
35

Legacy 2030 – Our Progress & Looking Forward
Active Participation & Thought
Leadership through Partnerships

Progress• In the Netherlands, Poland 100% of electricity in our
breweries now comes from renewable sources• In Italy & UK, SK we have signed Renewable electricity
VPPA contracts to start from 2025.
• Our Grolsch brewery in the Netherlands & Plzen
brewery in Czechia uses 100% renewable heat
• Together with Microsoft, academia and otherpartners, we are supporting hop growers in the
Czechia to address climate related water issues• We have reducing water consumption throughefficiency & we performed Water Risk Assessment
for all our markets.
• In the Netherlands, now using cardboard patented
top-clip packaging for can multipacks• In Czechia and Slovakia we have discontinued PETplastic bottles and PU plastic labels and aluminum
foil replaced with 100% recyclable paper labels, SK
is fully circular, DRS running or in prep in mostmarkets• 100% of the barley we use in CZ, SK and Italy issourced locally, mostly directly from farmers• We have ForHops, ForBarley projects in CZ and
Campus Peroni project in IT to work onsustainable sourcing with farmers.

Ⓒ ASAHI EUROPE & INTERNATIONAL. All rights reserved.

36

PurposeⒸ ASAHI EUROPE & INTERNATIONAL. All rights reserved.

37

We introduced our rediscovered Purpose in 2022

Ⓒ ASAHI EUROPE & INTERNATIONAL. All rights reserved.

38

Our Purpose isn‘t just a story-line

CZ - Radegast raised awareness ofwater scarcity in nature with beer
brewed from humidity in the air

PL - Zubr works with partners to
support endangered species andcontribute at establishing new
sanctuaries

CZ - For HOPS is linking experts
using state-of-the-art
technologies, to help growers
irrigate hop yards efficiently

UK - PNA 0,0% partnered at Ascot
and made NAB a more sociallyacceptable solution

CZ - Birell is addressing bias
connected with drinking culture
through commercial proposition

PL – Tyskie and Lech Premium
sold 330 ml CANs in two retailers
to decrease CO2 emissionsⒸ ASAHI EUROPE & INTERNATIONAL. All rights reserved.

39

Closing RemarksⒸ ASAHI EUROPE & INTERNATIONAL. All rights reserved.

40

Despite the difficult economic climate, we remain cautiously
optimistic for 2024 performance• No change to previous guidance on Revenue (+7.6%) and COP (+1.3%).
• The outlook for consumers remains difficult especially due to real wages
development, but the worst expectations of late 2022 haven’t yetmaterialised• The outlook for commodity and energy costs is improving even though still
not back to pre-war levels – our hedging policy limits volatility on both
upside and downside• Market pricing in line with expectationsⒸ ASAHI EUROPE & INTERNATIONAL. All rights reserved.

2024 Financial Forecast based on details shared in 2023 FY Results (published 13/02/2024)

41

Questions & Answers

42