English Translation of Original JapaneseThis is a translation of the original notice in Japanese. In the event of any discrepancy, the original
notice in Japanese shall prevail.

ASAHI GROUP HOLDINGS, LTD.
(Securities Code: 2502)
Dear Shareholders:
You are cordially invited to attend the 92nd Annual General Meeting of
Shareholders of Asahi Group Holdings, Ltd. (the “Company”), which
will be held as described in the Particulars below.
Sincerely,
March 2, 2016
Naoki Izumiya,President and Representative Director, CEO
ASAHI GROUP HOLDINGS, LTD.
23-1, Azumabashi 1-chome, Sumida-ku, Tokyo

CONVOCATION NOTICE OF
THE 92nd ANNUAL GENERAL MEETING OF SHAREHOLDERS
PARTICULARS
1. DATE AND TIME
March 24 (Thursday), 2016, at 1:00 p.m. (JST) (Reception start time: 11:30 a.m.)
2. PLACE
Banquet Room “Tsuru”, Banquet Floor of “The Main” of Hotel New Otani, 4-1, Kioi-cho,
Chiyoda-ku, Tokyo(Please note that if Banquet Room “Tsuru” becomes full, you will be guided to another venue.)
3. PURPOSES
Items to Be Reported:
Business Report, Consolidated Financial Statements, Non-Consolidated Financial
Statements and reports of the audit results of the consolidated financial statements by
the Independent Accounting Auditor and the Board of Corporate Auditors for the 92nd
term, from January 1, 2015 to December 31, 2015.
Items to Be Resolved:
Item 1: Appropriation of surplus
Item 2: Partial amendments to the Articles of Incorporation
Item 3: Election of ten (10) Directors
Item 4: Election of one (1) Corporate Auditor
Item 5: Decision of Amount and Details of Stock Compensation for Directors
Corrections to Reference Materials for General Meeting of Shareholders, Business Report, Consolidated Financial Statements, and
Non-Consolidated Financial Statements, if any, will be posted on the Company’s website.
http://www.asahigroup-holdings.com/

1Please exercise your voting right, which is the right to participate in the Company’s management.


Guide to Exercising Voting Rights
A voting right at the General Meeting of Shareholders is an important right that entitles shareholders to participate in
the Company’s management. Please refer to the following and exercise your voting rights by either method.

Attending the General Meeting of Shareholders in person
Date and time of the General Meeting of Shareholders:March 24 (Thursday), 2016, at 1:00 p.m. (JST) (Reception start time: 11:30 a.m.)zzzzPlease submit the voting form at the reception desk at the venue.
Please also bring this notice with you, to help us preserve resources.
You are advised to arrive at the venue early, as the reception desk is expected to become
extremely crowded immediately before the commencement of the meeting.
Please note that anyone other than a shareholder who is entitled to exercise voting rights (e.g.,
non-shareholding proxy, person accompanying the shareholder) will not be allowed inside thevenue.

Not attending the General Meeting of Shareholders in person
If you are unable to attend the meeting in person, you may exercise your voting rights via either postal mail or Internet. Please
review the attached “REFERENCE MATERIALS FOR ANNUAL GENERAL MEETING OF SHAREHOLDERS”, and exercise
your voting rights no later than 5:30 p.m., March 23 (Wednesday), 2016 (JST) by following the “Guide to Exercising Voting
Rights” on pages 2 and 3.

Deadline for exercising voting rights:
No later than 5:30 p.m., March 23 (Wednesday), 2016 (JST)(1) Voting via Postal Mail
Please indicate your consent/dissent concerning the items shown on the voting form, and sendback the form so that it will arrive no later than the deadline for exercising voting rights.
* If you submit a voting form without indicating your consent/dissent with respect to each item,
you will be deemed to have voted in favor of the Company’s proposal(s).
<Guide to filling in the voting form for exercising voting rights>
Please indicate your consent/dissentwith respect to each item here.
Items 1, 2, 4 and 5
If you consent:
Mark a 䕿in the box marked 䇾㈶䇿
If you dissent:
Mark a 䕿in the box marked 䇾ྰ䇿Your “voting code” (㆟Ỵᶒ⾜౑䝁䞊䝗)and “password” (䝟䝇䝽䞊䝗), which arenecessary for exercising voting right, arestated here.

Item 3For all candidates
If you consent:
If you dissent:
Mark a 䕿Mark a 䕿in the box marked 䇾㈶䇿
in the box marked 䇾ྰ䇿2For certain candidates
If you selectively veto certain
candidates:
Mark a 䕿 in the in the box
marked 䇾㈶䇿
and write the number of eachcandidate you choose to veto.

(2) Voting via Internet
Online voting website: http://www.web54.net
Please input your consent/dissent concerning each item no later than the deadline for exercising
voting rights. For details, please refer to following pages.

Guide to Exercising Voting Rightsvia the Internet* The online voting website and Help Desk information are available only in Japanese.
If you intend to exercise your voting rights by online voting, please access the website noted below
from a computer, smartphone or cellular phone and follow the instructions on the screen.

Online voting website: http://www.web54.net
Deadline for exercising voting rights via the Internet:
No later than 5:30 p.m., March 23 (Wednesday), 2016 (JST)* If your smartphone or cellular phone is equipped with a barcode reader,
you may use the two-dimensional code at left in order to access the online
voting website. For more detailed information on that procedure, pleaserefer to the user manual of your smartphone or cellular phone.

Accessing Procedures
The following charts display PC screens.

1. Access the online voting website
http://www.web54.net
Click on䇾ḟ䜈䛩䛩䜐䇿(䇾NEXT䇿).

2. Log inEnter the 䇾voting code䇿(㆟Ỵᶒ⾜౑䝁䞊䝗) indicated on
the voting form and click on 䇾䝻䜾䜲䞁䇿(䇾Log in䇿).
*Shareholders who have not specified a “password” forthemselves are required to register a new password.

3. Enter the password
Enter the 䇾password䇿 (䝟䝇䝽䞊䝗) indicated on the voting
form and click on 䇾ḟ䜈䇿(䇾NEXT䇿).
* Please note that shareholders who received the Convocation
Notice of the Annual General Meeting of Shareholders for the
fiscal year under review by e-mail will not find the“password” on their voting form. Such shareholders are asked
to enter the “password” that they specified when registering
their e-mail addresses.
4. Indicate your consent/dissent concerning each item byfollowing the instructions displayed on the screen.
3Q1. What will happen if I exercise my voting right not only via postal mail but also via theInternet?
A. If you exercise your voting right in duplicate (i.e., voting online as well as voting by using
the voting form), only the online vote will be counted.
Q2. I can exercise my voting right online more than once. Will all my voting attempts beconsidered valid?
A. If you exercise your voting right online more than once, only the most recent vote will becounted.

Inquiries for Online Voting
Please contact the following Help Desk for inquiries about online voting.
Sumitomo Mitsui Trust Bank, Limited
Stock Transfer Web Support Phone No.
Toll-free (within Japan): 0120-652-031 (9:00 a.m. to 9:00 p.m.) (JST)Note:
Shareholders who wish to receive the convocation notices of Annual General Meetings ofShareholders by e-mail beginning with the next meeting may so register on the e-mail address
registration website noted below. Please note that the site cannot be accessed via cellular phone.
E-mail address registration website: http://www.web5106.net

4REFERENCE MATERIALSFOR GENERAL MEETING OF SHAREHOLDERS
Agenda Items and Reference Information
Item 1: Appropriation of surplus
The Company proposes the appropriation of surplus in the following manner:
Year-end dividends
As a holding company of the Group (the Company, its subsidiaries and its affiliates arecollectively referred as the “Group” or the “Asahi Group”), under the “Medium-Term
Management Plan 2015” to be completed in the fiscal year under review, the Company was giving
top priority to utilizing free cash flows generated by the Group to fund investments in growth,
including expansion in our business networks worldwide. In terms of shareholder returns, given
the Company’s improved surplus investment funding position due to a stronger cash flow
generation capacity and an increase of equity capital, the Company aimed to steadily increase
dividends, targeting a dividend payout ratio of around 30% by the fiscal year under review. Efforts
were also be made to enhance total shareholder returns by targeting a total return ratio, including
acquisition of treasury shares, of 50% or higher.
Based on the aforementioned policy and taking into consideration a variety of factors, including
the Company’s consolidated financial condition and achievement for the fiscal year under review,
the Company proposes a year-end dividend of ¥26 per share, as follows:(1) Type of dividend asset
Cash(2) Allocation of dividend assets to shareholders and total amount of allocation¥26 per share of common stock
Total amount of payout: ¥11,905,648,638
Since the Company previously paid out ¥24 per share as an interim-period dividend, theannual dividend for the fiscal year under review will amount to ¥50 per share, which is anincrease of ¥5 per share from the previous fiscal year.
(3) Effective date of dividends of surplus
March 25, 2016
5


Item 2: Partial amendments to the Articles of Incorporation
The Company proposes to amend the Articles of Incorporation of the Company as follows:
1. Reason for Amendments(1) In view of the spread of the Internet, to make it possible to disclose by the Internet a part ofthe matters in the reference materials, etc. for general meeting of shareholders in accordancewith the provisions of the Ordinance of the Ministry of Justice, the Company will set forth
Article 15 (Disclosure of reference materials, etc. for general meeting of shareholders via
the Internet and deemed provision) in the Articles of Incorporation to this effect.
(2) Following the enforcement of the Act for Partial Revision of the Companies Act (Act No.
90, 2014), which changed the scope of the Directors and Corporate Auditors of theCompany with which companies can enter into agreements limiting liability and therefore
enabled companies to enter into agreements limiting liability with Directors with noexecutive functions and Corporate Auditors other than Outside Corporate Auditors, theCompany will make partial amendment respectively to Article 25 (Agreement limiting
liability with Outside Directors) and Article 33 (Agreement limiting liability with Outside
Corporate Auditors) of the Company’s current Articles of Incorporation so that these
Directors and Corporate Auditors can fulfill their expected roles. All members of Corporate
Auditors have consented to the submission to this Annual General Meeting of Shareholdersof the part of the proposal relating to amendment to Article 25 of the current Articles ofIncorporation in this proposal.

2. Substance of Amendments
The proposed amendments are as follows:
(Amended parts are indicated by underlining)
Current Articles

Proposed Amendment

Chapter 3. General meeting of shareholders
Article 12.~14.
(Text omitted)

Chapter 3. General meeting of shareholders
Article 12.~14.
(Text unchanged)
Article 15. Disclosure of reference materials, etc. forgeneral meeting of shareholders via the Internet anddeemed provision
When convening a general meeting ofshareholders, it shall be deemed that theCompany has provided shareholders withnecessary information that should be described orpresented in reference materials for the general
meeting of shareholders, business reports, andnon-consolidated and consolidated financial
statements, if they are disclosed via the Internet
in accordance with the Ministry of JusticeOrdinance.

(Inserted)

Article 15.~16.

(Text omitted)

Article 16.~17.

6(Text unchanged)

Current Articles

Proposed Amendment

Chapter 4. Directors and Board of Directors
Article 17.~24.
Article 25.
Directors

Chapter 4. Directors and Board of Directors(Text omitted)

Article 18.~25.
Article 26.

Agreement limiting liability with Outside

The Company may, in accordance with theprovisions of Paragraph 1, Article 427 of theCompanies Act, conclude agreements with
Outside Directors to limit the liability fordamages pursuant to Paragraph 1, Article 423,of the Companies Act. Provided, however, thatthe liability limit amount under such agreements
shall be the higher of either a predeterminedamount of not less than 10 million yen or theminimum liability amount provided for by laws
and regulations.

(Text unchanged)

Agreement limiting liability with Directors

The Company may, in accordance with theprovisions of Paragraph 1, Article 427 of theCompanies Act, conclude agreements with
Directors (excluding Executive Directors, etc.) tolimit the liability for damages pursuant toParagraph 1, Article 423, of the Companies Act.
Provided, however, that the liability limit amountunder such agreements shall be the higher of
either a predetermined amount of not less than 10
million yen or the minimum liability amountprovided for by laws and regulations.

Chapter 5. Corporate Auditors and Board of Auditors Chapter 5. Corporate Auditors and Board of Auditors
Article 26.~32.

(Text omitted)

Article 27.~33.
Article 34.
Auditors

Article 33. Agreement limiting liability with Outside
Corporate Auditors
The Company may, in accordance with theprovisions of Paragraph 1, Article 427 of theCompanies Act, conclude agreements with
Outside Corporate Auditors to limit the liability
for damages pursuant to Paragraph 1, Article 423,of the Companies Act. Provided, however, thatthe liability limit amount under such agreements
shall be the higher of either a predeterminedamount of not less than 10 million yen or theminimum liability amount provided for by laws
and regulations.

Agreement limiting liability with Corporate

The Company may, in accordance with theprovisions of Paragraph 1, Article 427 of theCompanies Act, conclude agreements with
Corporate Auditors to limit the liability fordamages pursuant to Paragraph 1, Article 423,of the Companies Act. Provided, however, thatthe liability limit amount under such agreements
shall be the higher of either a predeterminedamount of not less than 10 million yen or theminimum liability amount provided for by laws
and regulations.

Chapter 6. Independent Accounting Auditors
Article 34.~36.

Chapter 6. Independent Accounting Auditors(Text omitted)

Article 35.~37.

Chapter 7. Accounts
Article 37.~39.

(Text unchanged)
Chapter 7. Accounts(Text omitted)

Article 38.~40.

7

(Text unchanged)(Text unchanged)

Item 3: Election of ten (10) Directors
At the conclusion of this Annual General Meeting of Shareholders, the terms of office of allnine (9) Directors will expire. In order to enhance the management system, the Company wishes
to increase the number of Directors by one (1) person. The Company therefore asks theshareholders to elect ten (10) Directors.
The candidates for the position of Director are as follows. Concerning candidates who are
candidates for the positions of independent Outside Director, the Company deems that,
according to the “Criteria for independence of Outside Directors and Outside Corporate
Auditors” of the Company, they therefore maintain sufficient independence with no potential
conflict of interests occurring between them and the general shareholders. Moreover, as theymeet the requirements for independent directors/auditors as defined by the Tokyo Stock
Exchange, the Company has reported them as independent directors/auditors to the saidexchange.

CandidatenumberName (Age)Position

Responsibilities

Numberof Boardof
Directors
meetings
attended

Naoki Izumiya (67)

President andRepresentative
Director
CEO

Overall Group Management
Group International Operations

12/12

1
Reappointment
Katsutoshi Takahashi (61)2Reappointment

Yoshihide Okuda (60)3Reappointment

Procurement Section
Production Section
Logistics Section
Managing Director Research & Development Section
and Managing
Agribusiness Development Section
Corporate Officer Intellectual Property Section
Quality Assurance Section
Group Soft Drinks Business

12/12

Audit Section
Managing Director
General & Legal Affairs Management Section
and Managing
Secretary Section
12/12
Corporate Officer
Finance Section(CFO)
Information Technology Section

Akiyoshi Koji (64)4Director

Group Alcoholic Beverages Business

12/12

Reappointment
Mariko Bando (69)5Reappointment

Outside Director

—

12/12

Outside Director

—

12/12

—

—

—

Candidate for independent
Outside Director
Naoki Tanaka (70)6Reappointment
Candidate for independent
Outside Director
Noboru Kagami (57)7
New candidate8Candidate
numberName (Age)Position

Responsibilities

Numberof Boardof
Directors
meetings
attended

—

—

—

—

—

—

—

—

—

Kenji Hamada (52)8
New candidate
Ryoichi Kitagawa (52)9
New candidate
Tatsuro Kosaka (63)10

New candidate
Candidate for independent
Outside Director

Note: The age, position and responsibilities are as of this Annual General Meeting of Shareholders.

9[Reference] Criteria for independence of Outside Directors and Outside Corporate
Auditors
The Company has established standards as set forth below for objectively assessing theindependence of its Outside Directors and Outside Corporate Auditors (herein this section the“Outside Directors/Corporate Auditors”) and accordingly deems that an Outside
Director/Corporate Auditor lacks sufficient independence for the Company if any of thefollowing apply, such that he or she is:
1. A party who serves as an executive*1 of the Company or a subsidiary of the Company(herein this section collectively referred to as the “Group”) or has served as an executive of
the Group in the past;
2. A party for whom the Group is a major business partner*2 (or if the business partner is anincorporated entity, an executive thereof);
3. A party who is a major business partner of the Group*3 (or if the business partner is anincorporated entity, an executive thereof);
4. A consultant, certified public accountant or other accounting professional, or an attorney atlaw or other legal professional who has been paid substantial amounts of money or otherfinancial benefits*4 other than Directors’ and Corporate Auditors’ remuneration paid by theGroup (or if the party receiving such financial benefits is an incorporated entity,
association or other organization, then persons belonging to such organization);
5. A certified public accountant who belongs to the auditing firm which serves as the
Accounting Auditor of the Group;
6. A major shareholder*5 of the Group (or if the major shareholder is an incorporated entity,
an executive thereof);
7. An executive of an incorporated entity that is a major shareholder of the Group;
8. An executive of a company which has a relationship involving cross-assumption of officeof Outside Directors/Corporate Auditors*6;
9. A party who receives substantial donations*7 from the Group (or if the party receiving such
donations is an incorporated entity, association or other organization, then an executive
thereof);
10. A close relative*9 of a party who falls under any of the above items from 1 to 9 (limited toimportant persons*8, with the exception of item 1);
11. A party who has fallen under any of the above items from 2 to 10 during the past five (5)years;
12. A party who has exceeded the tenure for Outside Directors/Corporate Auditors stipulatedby the Company*10; or
13. Notwithstanding the provisions of the respective items above, a party with respect towhom there are special grounds for deeming there to be potential for conflict of interests
with general shareholders.
*1. “Executive” refers to an executive as defined in Item 6, Paragraph 3, Article 2 of the Ordinance for
Enforcement of the Companies Act, and includes both executive directors and employees, but does not include
Corporate Auditors.
*2. “Party for whom the Group is a major business partner” refers to a party whose transactions in the most recent
fiscal year amount to 2% or more of the consolidated net sales of the business partner’s group.
*3. “Party who is a major business partner of the Group” refers either to a party whose transactions in the mostrecent fiscal year amount to 2% or more of the Company’s consolidated net sales, or a party who loans to theGroup an amount equivalent to 2% or more of the Company’s consolidated assets as of the end of the mostrecent fiscal year.
*4. “Substantial amounts of money or other financial benefits” refers to money and other financial benefits
amounting to 10 million yen or more annually, excluding Directors’ and Corporate Auditors’ remuneration, forthe most recent fiscal year (if such financial benefits are obtained by an incorporated entity, association or otherorganization, it refers to money or other financial benefits amounting to 2% or more of such organization’s
total revenues for the most recent fiscal year).
10*5. “Major shareholder” refers to a person or incorporated entity that directly or indirectly holds 10% or more of
the Company’s total voting rights.
*6. “Relationship involving cross-assumption of office of Outside Directors/Corporate Auditors” refers to a
relationship where an executive of the Group serves as an outside director/corporate auditor of anothercompany, and an executive of that company serves as an Outside Director/Corporate Auditor of the Company.
*7. “Substantial donations” refers to annual donations of 10 million yen or more made during the most recent fiscal
year.
*8. “Important person” refers to directors (excluding outside directors), executive officers, corporate officers, andother executives in positions of general manager or above; certified public accountants belonging to auditing
firms or accounting offices; attorneys at law belonging to law firms; councilors, directors, auditors or otherofficers belonging to incorporated foundations, incorporated associations, educational institutions and otherincorporated entities; and other persons objectively and reasonably deemed to be in positions of similar
importance.
*9. “Close relative” refers to a spouse or persons within the second degree of consanguinity.
*10. “Tenure of Outside Directors/Corporate Auditors stipulated by the Company” means ten (10) years withrespect to Directors and twelve (12) years with respect to Corporate Auditors.

11Candidate
NumberName

Note to Appointment

1

Naoki Izumiya

Reappointment

Date of Birth (Age)Owned Shares of the Company
Attended BOD meetings
Tenure (at the conclusion of this Annual
General Meeting of Shareholders)
Position
Responsibilities
Career Summary

Reasons for recommending Naoki
Izumiya as a candidate for Director

Candidates’ special interests in the
Company

August 9, 1948 (67 years old)
51,50012/12
13 yearsPresident and Representative Director
CEO
Overall Group Management, Group International Operations
Apr. 1972
Entered the Company
Mar. 2000 Corporate Officer, Senior General Manager of GroupManagement Strategy Headquarters
Oct. 2000
Corporate Officer, Senior General Manager of Strategy
Planning Headquarters
Sep. 2001
Corporate Officer, Deputy General Manager of Tokyo
Metropolitan Headquarters, General Manager of Tokyo
BranchMar. 2003 Director
Mar. 2004 Managing Director
Mar. 2006 Managing Director, Managing Corporate Officer, Senior
General Manager of Sales & Marketing Headquarters for
Alcoholic Beverages
Mar. 2009 Senior Managing Director, Senior Managing Corporate
OfficerMar. 2010 President and Representative Director
Mar. 2014 President and Representative Director, CEO(to the present)
Naoki Izumiya fulfills his duties as a Director on the basis of a trackrecord encompassing his experience in exercising strong leadershipgeared to achieving objectives of the medium-term management planand enhancing corporate value, since being appointed as President andRepresentative Director of the Company in March 2010.
Accordingly, we deem that he maintains capabilities appropriate forcarrying out business execution as the Company promotes global
management of operations while pursuing sustainable growth andincrease of corporate value, and thus we recommend his reappointment
as a Director.
There are no special interests between Naoki Izumiya and the Company.

12Candidate
NumberName

Note to Appointment

2

Katsutoshi Takahashi

Reappointment

Date of Birth (Age)Owned Shares of the Company
Attended BOD meetings

September 24, 1954 (61 years old)
6,000
12/12

Tenure (at the conclusion of this Annual
General Meeting of Shareholders)
Position
Responsibilities

Career Summary

Significant Concurrent Positions

3 years
Managing Director and Managing Corporate Officer
Procurement Section, Production Section, Logistics Section,
Research & Development Section, Agribusiness Development Section,
Intellectual Property Section, Quality Assurance Section
Group Soft Drinks Business
Apr. 1977
Entered Yoshida Kogyo K.K. (current YKK Corporation)
May 1991 Entered the Company
Mar. 2008 Corporate Officer, Senior Deputy General Manager of
Production Headquarters, General Manager of Production
Technology Department
Jul. 2011
Corporate Officer, Senior Deputy General Manager ofResearch & Development-Production Headquarters,
General Manager of Production Strategy Department of
Asahi Breweries, Ltd.
Mar. 2012 Corporate Officer, General Manager of the Production
Section of the Company
Corporate Officer, Senior Deputy General Manager ofResearch & Development-Production Headquarters,
General Manager of Production Strategy Department of
Asahi Breweries, Ltd.
Sep. 2012
Corporate Officer, General Manager of the Production
Section of the Company
Corporate Officer, Senior Deputy General Manager ofResearch & Development-Production Headquarters of
Asahi Breweries, Ltd.
Mar. 2013 Director, Corporate Officer of the Company
Mar. 2015 Managing Director, Managing Corporate Officer of theCompany(to the present)
Director of Asahi Soft Drinks Co., Ltd.
Director of LB Co., Ltd.

13
Reasons for recommending Katsutoshi
Takahashi as a candidate for Director

Katsutoshi Takahashi fulfills his duties as a Director on the basis of a
track record encompassing his experience in exercising leadership withrespect to developing new mechanisms covering overseas expansion in
the areas of procurement, production, logistics and quality assurance, andintegrating operations in the soft drinks segment, since being appointed
to the Company’s Director.
Accordingly, we deem that he maintains capabilities appropriate forcarrying out business execution as the Company promotes global
management of operations while pursuing sustainable growth andincrease of corporate value, and thus we recommend his reappointment
as a Director.

Candidates’ special interests in the
Company

There are no special interests between Katsutoshi Takahashi and theCompany.

14Candidate
NumberName

Note to Appointment

3

Yoshihide Okuda

Reappointment

Date of Birth (Age)Owned Shares of the Company
Attended BOD meetings
Tenure (at the conclusion of this Annual
General Meeting of Shareholders)
Position
Responsibilities
Career Summary

Significant Concurrent Positions

January 3, 1956 (60 years old)
5,600
12/12
3 years
Managing Director and Managing Corporate Officer (CFO)
Audit Section, General & Legal Affairs Management Section,
Secretary Section, Finance Section, Information Technology Section
Apr. 1978
Entered Konishiroku Photo Industry Co., Ltd. (current
Konica Minolta, Inc.)
Sep. 1988
Entered the Company
Mar. 2010 Corporate Officer, General Manager of Finance
Department
Mar. 2011 Corporate Officer, General Manager of Finance
Department of the Company
Senior Managing Director of Asahi Management Services
Co., Ltd. (current Asahi Professional Management Co.,
Ltd)
Jul. 2011
Corporate Officer, General Manager of Finance Sectionof the Company
Senior Managing Director of Asahi Management Services
Co., Ltd.
Sep. 2012
Corporate Officer in charge of promoting efficiency(administrative sections overall) of the Company
Senior Managing Director of Asahi Professional
Management Co., Ltd.
Mar. 2013 Director, Corporate Officer of the Company
Mar. 2015 Managing Director, Managing Corporate Officer of theCompany(to the present)
President and Representative Director of Asahi Professional
Management Co., Ltd.

Reasons for recommending Yoshihide
Okuda as a candidate for Director

Yoshihide Okuda fulfills his duties as a Director on the basis of a trackrecord encompassing his experience implementing transformative
initiatives involving financial and capital policy acting as Chief Financial
Officer, since being appointed to the Company’s Director.
Accordingly, we deem that he maintains capabilities appropriate forcarrying out business execution as the Company promotes global
management of operations while pursuing sustainable growth andincrease of corporate value, and thus we recommend his reappointment
as a Director.

Candidates’ special interests in the
Company

There are no special interests between Yoshihide Okuda and theCompany.

15Candidate
NumberName

Note to Appointment

4

Akiyoshi Koji

Reappointment

Date of Birth (Age)Owned Shares of the Company
Attended BOD meetings
Tenure (at the conclusion of this Annual
General Meeting of Shareholders)
Position
Responsibilities
Career Summary

Significant Concurrent Positions
Reasons for recommending Akiyoshi
Koji as a candidate for Director

Candidates’ special interests in the
Company

November 8, 1951 (64 years old)
15,10012/12
9 years
Director
Group Alcoholic Beverages Business
Apr. 1975
Entered the Company
Sep. 2001
Corporate Officer
Mar. 2003 Managing Director, Senior General Manager of Planning
Division of Asahi Soft Drinks Co., Ltd.
Mar. 2006 Senior Managing Director,
Senior General Manager of Planning Division of Asahi
Soft Drinks Co., Ltd.
Mar. 2007 Managing Director, Managing Corporate Officer of theCompany
Jul. 2011
Director of the Company
President and Representative Director of Asahi
Breweries, Ltd.
(to the present)
President and Representative Director of Asahi Breweries, Ltd.
Akiyoshi Koji fulfills his duties as a Director on the basis of a trackrecord encompassing his contributions to strengthening the alcoholic
beverages segment and improving profitability acting as President andRepresentative Director of the Group’s core company Asahi Breweries,
Ltd., since being appointed to the Company’s Director.
Accordingly, we deem that he maintains capabilities appropriate forcarrying out business execution as the Company promotes global
management of operations while pursuing sustainable growth andincrease of corporate value, and thus we recommend his reappointment
as a Director.
There are no special interests between Akiyoshi Koji and the Company.

16Candidate
NumberName

5

Mariko Bando

Note to Appointment
Reappointment

Date of Birth (Age)Candidate for independent
Outside Directors
August 17, 1946 (69 years old)䇷Owned Shares of the Company
Attended BOD meetings
Tenure (at the conclusion of this Annual
General Meeting of Shareholders)
Position
Career Summary

Significant Concurrent Positions

Reasons for recommending Mariko
Bando as a candidate for Outside
Director

12/12
8 years
Outside Director
Jul. 1969 Joined staff of Prime Minister’s Office
Oct. 1985 Councilor of Cabinet Secretariat
Jul. 1989 Director of Consumer Statistics Division, Statistics
Bureau, Management and Coordination Agency
Apr. 1995 Vice-Governor of Saitama Prefecture
Jun. 1998 Consul General of Brisbane, Australia
Jan. 2001 Director General of Gender Equity Bureau, Cabinet
OfficeOct. 2003 Director of Educational Corporation Showa Women’s
University
Apr. 2007 President of Showa Women’s University(to the present)
Mar. 2008 Director of the Company(to the present)
Apr. 2014 Chancellor of Educational Corporation Showa Women’s
University(to the present)
Chancellor of Educational Corporation Showa Women’s University
President of Showa Women’s University
Director of The Institute of Women’s Culture, Showa Women’s
University
Outside Director, BroadBand Tower, Inc.
Mariko Bando fulfills her duties as an Outside Director of the Company
on the basis of her wide range of knowledge as an educator in addition
to her diverse experience in public administration both in Japan andoverseas.
Accordingly, we deem that she maintains capabilities appropriate foroverseeing business execution as the Company promotes global
management of operations while pursuing sustainable growth andincrease of corporate value, and thus we recommend her reappointment
as an Outside Director.
Although Mariko Bando has not been involved in company
management other than as an Outside Director/Corporate Auditor, theBoard of Directors has concluded that she will be able to perform her
duties properly as an Outside Director of the Company based on thereasons noted above.

17Views on independence

Candidates’ special interests in the
Company
Regarding agreements limiting theliability

The Group maintains transactional relationships with neither Mariko
Bando nor entities where she concurrently serves, and based on the“Criteria for independence of Outside Directors and Outside Corporate
Auditors” which have been established by the Company as a means ofobjectively assessing independence thereof, the Company has deemedthat she maintains sufficient independence with no potential for conflictof interests with general shareholders, and thus we have registered
Mariko Bando as an independent directors/auditors as stipulated by the
Tokyo Stock Exchange.
There are no special interests between Mariko Bando and the Company.
To enable her to contribute fully in her role as an Outside Director, theCompany has entered into an agreement with Mariko Bando that limits
her liability for damages as prescribed in Paragraph 1, Article 423 of
the Companies Act. Under the terms of this agreement, her liabilities
are limited to ¥20 million or to the minimum limited amount stipulated
by applicable laws and regulations, whichever is higher. If her election
is approved, the current agreement will be extended.

18Candidate
NumberName

6

Naoki Tanaka

Note to Appointment
Reappointment

Date of Birth (Age)Candidate for independent
Outside Director
September 1, 1945 (70 years old)䇷Owned Shares of the Company
Attended BOD meetings
Tenure (at the conclusion of this Annual
General Meeting of Shareholders)
Position
Career Summary

12/12
7 years
Outside Director
Jan. 1971
Senior Fellow of Kokumin Keizai Research InstituteApr. 1997
President of the 21st Century Public Policy InstituteApr. 2007
President of Center for International Public Policy Studies(to the present)
Mar. 2009

Significant Concurrent Positions

Director of the Company(to the present)
President of Center for International Public Policy Studies

Reasons for recommending Naoki
Tanaka as a candidate for Outside
Director

Naoki Tanaka fulfills his duties as an Outside Director of the Company
on the basis of his abundant experience as a member of government
councils and his broad knowledge as a specialist deeply versed indomestic and international economic policy.
Accordingly, we deem that he maintains capabilities appropriate foroverseeing business execution as the Company promotes global
management of operations while pursuing sustainable growth andincrease of corporate value, and thus we recommend his reappointment
as an Outside Director.

Views on independence

The Group maintains transactional relationships with neither Naoki
Tanaka nor entities where he concurrently serves, and based on the“Criteria for independence of Outside Directors and Outside Corporate
Auditors” which have been established by the Company as a means ofobjectively assessing independence thereof, the Company has deemedthat he maintains sufficient independence with no potential for conflictof interests with general shareholders, and thus we have registered Naoki
Tanaka as an independent directors/auditors as stipulated by the Tokyo
Stock Exchange.

Candidates’ special interests in the
Company
Regarding agreements limiting theliability

There are no special interests between Naoki Tanaka and the Company.
To enable him to contribute fully in his role as an Outside Director, theCompany has entered into an agreement with Naoki Tanaka that limits
his liability for damages as prescribed in Paragraph 1, Article 423 of theCompanies Act. Under the terms of this agreement, his liabilities arelimited to ¥20 million or to the minimum limited amount stipulated byapplicable laws and regulations, whichever is higher. If his election isapproved, the current agreement will be extended.

19Candidate
NumberName

Note to Appointment

7

Noboru Kagami

New candidate

Date of Birth (Age)November 29, 1958 (57 years old)

Owned Shares of the Company
Position
Career Summary

3,898䇷
Apr. 1982
Apr. 2009
Sep. 2012
Jan. 2013

Entered the Company
Senior Officer, General Manager of Fukushima Breweryof the Company
Corporate Officer, General Manager of Fukushima
Brewery of Asahi Breweries, Ltd.
Corporate Officer, General Manager of Hakata Breweryof Asahi Breweries, Ltd.
(to the present)

Reasons for recommending Noboru
Kagami as a candidate for Director

Noboru Kagami primarily engages in operations involving R&D andproduction, and has abundant relevant experience and knowledge that
includes currently serving as Corporate Officer and General Manager of
Hakata Brewery of Asahi Breweries, Ltd. where he is in charge ofoverseeing factory operations.
Accordingly, we deem that he maintains capabilities appropriate forcarrying out business execution as the Company promotes global
management of operations while pursuing sustainable growth andincrease of corporate value, and thus we recommend that he be newly
appointed to serve as a Director.

Candidates’ special interests in the
Company

There are no special interests between Noboru Kagami and theCompany.

20Candidate
NumberName

Note to Appointment

8

Kenji Hamada

New candidate

Date of Birth (Age)January 7, 1964 (52 years old)

Owned Shares of the Company
Position
Career Summary

2,150
䇷
Apr. 1986
Apr. 2011
Jul. 2011
Oct. 2011

Sep. 2012
Mar. 2014

Reasons for recommending Kenji
Hamada as a candidate for Director

Candidates’ special interests in the
CompanyEntered the Company
Senior Officer, General Manager of Corporate Strategy
Department of the Company
Senior Officer, General Manager of Corporate Strategy
Section of the Company
Senior Officer, General Manager of Corporate Strategy
Section, General Manager of Business Development
Section of the Company
Senior Officer, General Manager of Corporate Strategy
Section of the Company
Corporate Officer, General Manager of Corporate
Strategy Section of the Company(to the present)

Kenji Hamada primarily engages in operations involving corporate
planning, and has abundant relevant experience and knowledge that
includes currently serving the Company as a Corporate Officer andGeneral Manager of the Corporate Strategy Section where he is in chargeof overseeing planning of the business strategy for the Group.
Accordingly, we deem that he maintains capabilities appropriate forcarrying out business execution as the Company promotes global
management of operations while pursuing sustainable growth andincrease of corporate value, and thus we recommend that he be newly
appointed to serve as a Director.
There are no special interests between Kenji Hamada and the Company.

21Candidate
NumberName

Note to Appointment

9

Ryoichi Kitagawa

New candidate

Date of Birth (Age)June 29, 1963 (52 years old)

Owned Shares of the Company
Position
Career Summary

4,381䇷
May 1987
Sep. 1993
Apr. 2013
May 2013

Sep. 2013
Mar. 2014

Entered Hokkaido Asahi Breweries Co., Ltd.
Transferred to the Company
Senior Officer, General Manager of Business
Development Section of the Company
Senior Officer, General Manager of Business
Development Section, General Manager of International
Business Section of the Company
Senior Officer, General Manager of Business
Development Section of the Company
Corporate Officer, General Manager of Business
Development Section of the Company(to the present)

Reasons for recommending Ryoichi
Kitagawa as a candidate for Director

Ryoichi Kitagawa primarily engages in operations involving finance aswell as international and corporate alliances, and has abundant relevant
experience and knowledge that includes currently serving the Company
as a Corporate Officer and General Manager of the Business
Development Section where he is in charge of overseeing capital andbusiness alliances both in Japan and abroad.
Accordingly, we deem that he maintains capabilities appropriate forcarrying out business execution as the Company promotes global
management of operations while pursuing sustainable growth andincrease of corporate value, and thus we recommend that he be newly
appointed to serve as a Director.

Candidates’ special interests in the
Company

There are no special interests between Ryoichi Kitagawa and theCompany.

22Candidate
NumberName

10

Tatsuro Kosaka

Note to Appointment
New candidate
Candidate for independent
Outside Directors

Date of Birth (Age)January 18, 1953 (63 years old)䇷Owned Shares of the Company
Position
Career Summary

Significant Concurrent Positions

䇷
Apr. 1976
Oct. 2002

Entered Chugai Pharmaceutical Co., Ltd.
Vice President, General Manager of Corporate Planning
Dept. of Chugai Pharmaceutical Co., Ltd.
Oct. 2004
Senior Vice President, General Manager of Corporate
Planning Dept. of Chugai Pharmaceutical Co., Ltd.
Mar. 2005
Senior Vice President, Deputy Managing Director of
Sales & Marketing Group of Chugai Pharmaceutical Co.,
Ltd.
Jul. 2005
Senior Vice President, Head of Strategic Marketing Unitof Chugai Pharmaceutical Co., Ltd.
Mar. 2008
Senior Vice President, Head of Lifecycle Management &Marketing Unit of Chugai Pharmaceutical Co., Ltd.
Mar. 2010
Director, Executive Vice President of Chugai
Pharmaceutical Co., Ltd.
Mar. 2012
Representative Director, President of Chugai
Pharmaceutical Co., Ltd.
(to the present)
Representative Director, President of Chugai Pharmaceutical Co., Ltd.

Reasons for recommending Tatsuro
Kosaka as a candidate for Outside
Director

Tatsuro Kosaka serves as the Chief Operating Officer of a global
corporation, and has abundant experience and broad knowledge that
includes implementing the medium-term management plan and various
other business reforms.
Accordingly, we deem that he maintains capabilities appropriate foroverseeing business execution as the Company promotes global
management of operations while pursuing sustainable growth andincrease of corporate value, and thus we recommend that he be newly
appointed to serve as an Outside Director.

Views on independence

The Group maintains transactional relationships with neither Tatsuro
Kosaka nor entities where he concurrently serves, and based on the“Criteria for independence of Outside Directors and Outside Corporate
Auditors” which have been established by the Company as a means ofobjectively assessing independence thereof, the Company has deemedthat she maintains sufficient independence with no potential for conflictof interests with general shareholders, and thus we have registered
Tatsuro Kosaka as an independent directors/auditors as stipulated by the
Tokyo Stock Exchange.

23Candidates’ special interests in the
Company
Regarding agreements limiting theliability

There are no special interests between Tatsuro Kosaka and the Company.
If election of Tatsuro Kosaka is approved, the Company plans to newly
enter into an agreement with him that limits his liability for damages asprescribed in Paragraph 1, Article 423 of the Companies Act in order toenable him to contribute fully in his role as an Outside Director. Under
the terms of this agreement, such liability will be limited to ¥20 million
or to the minimum limited amount stipulated by applicable laws andregulations, whichever is higher.

24Item 4: Election of one (1) Corporate Auditor
At the conclusion of this Annual General Meeting of Shareholders, the term of office ofCorporate Auditor Yoshihiro Tonozuka will expire. The Company therefore asks theshareholders to elect one (1) Corporate Auditor.
The candidate for the position of Corporate Auditor is as follows.
This proposal is submitted with the prior consent of the Board of Corporate Auditors.

Name

Note to Appointment

Tetsuo Tsunoda

New candidate

Date of Birth (Age)April 17, 1956 (59 years old)

Owned Shares of the Company
Career Summary

11,400
Apr. 1980
Apr. 2007
Sep. 2007
Sep. 2009
Jan. 2010

Mar. 2011

Jul. 2011

Sep. 2012
Mar. 2013
Mar. 2014

Reasons for recommending Tetsuo
Tsunoda as a candidate for Corporate
AuditorEntered the Company
Senior Officer, General Manager of Kobe Branch of theCompany
Senior Officer, General Manager of Wine Business
Department of the Company
Senior Officer, General Manager of General & Legal
Affairs Management Department of the Company
Senior Officer, General Manager of General & Legal
Affairs Management Department of the Company,
Director of Asahi Management Service Co., Ltd. (current
Asahi Professional Management Co., Ltd.)
Corporate Officer, General Manager of General & Legal
Affairs Management Department of the Company,
Director of Asahi Management Service Co., Ltd.
Corporate Officer, General Manager of General & Legal
Affairs Management Section of the Company, Senior
Managing Director of Asahi Management Services Co.,Ltd.
Director of Asahi Soft Drinks Co., Ltd.
Managing Director of Asahi Soft Drinks Co., Ltd.
Executive Vice President and Director of Asahi
Professional Management Co., Ltd.
(to the present)

Tetsuo Tsunoda primarily engages in operations involving sales andgeneral affairs and has abundant relevant experience and knowledge
that includes currently serving as the Executive Vice President of Asahi
Professional Management Co., Ltd. where he is in charge ofoverseeing the diversity promotion for the Group.
Accordingly, we deem that he maintains capabilities appropriate forcarrying out auditing duties as the Company promotes global
management of operations while pursuing sustainable growth andincrease of corporate value, and thus we recommend that he be newly
appointed to serve as a Corporate Auditor.

25
Candidates’ special interests in the
Company

There are no special interests between Tetsuo Tsunoda and theCompany.

Notes:
1. The age is as of this Annual General Meeting of Shareholders.
2. Tetsuo Tsunoda currently serves as Executive Vice President and Director of Asahi Professional Management Co., Ltd.,but plans to retire from that position before the conclusion of this Annual General Meeting of Shareholders.

26Item 5: Decision of Amount and Details of Stock Compensation for Directors
1. Reason for the proposal and reasons justifying such compensation
Remuneration, etc. for the Directors of the Company comprises basic remuneration (a fixed monthly
amount) and bonuses (yearly performance-linked amounts). In addition to the short-term performancelinked bonuses, the Asahi Group asks the shareholders to approve the introduction of a new PerformanceLinked Stock Compensation Plan (hereinafter referred to as the “Plan”) as a long-term performancelinked scheme. This is to increase motivation to work toward the sustainable growth and the increase of
corporate value over the mid- to long-term of the Company.
The Plan would not only motivate the Directors excluding Outside Directors to strive harder toaccomplish their performance goals but also help them share the benefits and risks of stock pricefluctuations with the Shareholders because stock price movements will significantly impact the actual
amount of remuneration to be received by the Directors under the Plan. The Company believes the Plan tobe an appropriate scheme to be adopted by the Company.
Concerning the amount and details of compensation for Directors related to the Plan, the Company will
grant to Directors a new stock compensation, of which amount will be treated as separate from the total
amount of remunerations, etc. of Directors that was approved at the 83rd Annual General Meeting of
Shareholders held on March 27, 2007 (annual amount of ¥760 million of which ¥50 million is allocated to
Outside Directors; provided, however, that this excludes the employee salary portion received by
Directors also employed by the Company as employees).
Currently there are six (6) Directors who are eligible to receive payment of compensation under the Plan.
If the shareholders approve Item 3 “Election of ten (10) Directors” as originally proposed, the Directors
eligible to receive compensation under the Plan will be seven (7).


2. Amount and contents of compensation under the Plan
(1) Overview of the Plan
The Plan is a performance-lined stock compensation system for the Directors (excluding Outside
Directors) (hereinafter referred to as the “Directors”) of the Company whereby the Company will grant
points according to the level of the achievements of the Directors’ targeted performance benchmarks
outlined in the “Medium-Term Management Plan” and, at the time of their retirement, will distribute tothem such number of shares of common stock of the Company as would be equivalent to the cumulative
number of points theretofore granted to them.
In introducing the Plan, the Company will adopt a structure of a Stock Distribution Trust for Officers(hereinafter referred to as the “Trust”) where the Company will create such Trust by contributing cash,
the Trust will acquire shares of common stock of the Company and will then distribute such shares toeligible Directors. The timing for distributing shares of common stock of the Company to the eligible
Directors will be when they retire from their office.
(2) Performance-linked benchmark
The Company will use earnings per share for the fiscal year (“EPS” (*)) as the performance-linked
benchmark, which will be linked to the number of points to be granted. EPS is one of the major
benchmarks set in its “Medium-Term Management Plan,” and the Company finds EPS suitable as abenchmark for determining part of the remuneration for the Directors of the Company, each of whombears a responsibility for the enhancement of the enterprise value of the Asahi Group as a whole.
average total number of shares outstanding during the term(*) Earnings per share (EPS) = net income /(excluding treasury shares)(3) Method of calculating points to be granted to each Director
Pursuant to the Stock Distribution Regulations prescribed by its Board of Directors, on the date of themeeting of the Board of Directors convened for the purpose of approving financial results for each fiscal
year during the period of the Trust , the Company will grant to each Director a certain number of points
27according to his/her executive rank and the level of achievement of the targeted EPS for the Company’s
fiscal year ended most recently, on the basis of the following calculation formula; provided, however, thatthe aggregate number of points to be granted by the Company to the eligible Directors shall be up to alimit of twenty one thousand (21,000) points for each fiscal year.
[Calculation formula]
Base points based on executive rank (*1) u performance-linked payment rate (*2)(*1) Base points based on executive rank will be calculated by multiplying basic remuneration with acertain ratio assigned to each executive rank of the Director concerned, and by dividing the
product by a per-share book value of the shares of common stock of the Company held by theTrust.
(*2) Performance-linked payment rate will be set within the range of 0% to 150% according to thelevel of achievement of targeted EPS.
(4) Upper limit on the amount of Trust Money to be contributed to the Trust as a source of fundswith which to acquire shares of common stock of the Company
During the period of the Trust (three years), the Company will create the Trust for the Directors fulfillingcertain specific eligibility requirements as Beneficiaries by contributing cash of up to a limit of two
hundred and twenty million yen (¥220,000,000) as funds for acquiring shares of common stock of theCompany that need to be distributed to such eligible Directors under the Plan. The Trust will use the cash
left in trust by the Company (*) as the source of funds to acquire shares of common stock of the Company
either through the stock market or by undertaking disposal of treasury shares of the Company.
At the time of expiration of the period of the Trust, the Board of Directors of the Company may resolve tokeep the Plan in place by extending the period of the Trust every three years, in which case, with respect
to each of the extended periods of the Trust, the Company will contribute cash of up to a limit of two
hundred and twenty million yen (¥220,000,000) to the Trust as funds for acquiring additional shares ofcommon stock of the Company that would need to be distributed to eligible Directors under the Plan;
provided, however, that in cases where such an additional contribution is made and where any residual
shares and/or cash exist within the trust property as of the last day of the period of the Trust prior to suchextension(s), the upper limit of the amount of additional contributions will be ¥220,000,000 less anamount equivalent to such residual shares and/or residual cash. Furthermore, in such a case of extension,
the Company will continue to assign the points set forth in (3) above and distribute shares of its common
stock as prescribed in (5) below within the extended period of the Trust.
However, even where the Company does not continue to grant the points as above, if, at the time of
expiration of the period of the Trust, there is any Director who is granted points but is not yet retired, theCompany may decide to extend the period of the Trust until such time as he/she is retired and distributionof shares of common stock of the Company is completed.
(*)

The actual amount of cash to be left in trust by the Company will be equal to the sum of theabovementioned funds for acquisition of the shares of common stock of the Company andassociated necessary expenses including trust fee and fee for the Trust Administrator.

(5) Distribution of shares of common stock of the Company to each Director
The number of shares of common stock of the Company to be distributed to each Director will be thenumber of points granted to him/her multiplied by a factor of one (1); provided, however, that if any share
split, reverse share split or any other event for which it would be considered reasonable to adjust the
number of shares occurs with respect to the shares of common stock of the Company, then the Company
will make reasonable adjustments depending on the ratio of such stock split or reverse stock split.
Shares of common stock of the Company will be distributed from the Trust to each eligible Director after
he/she performs the established beneficiary determination procedures at the time of his/her retirement.
However, a certain specific portion of such shares will be sold and converted into cash within the Trust,and will be distributed in cash instead of the shares. If the shares of common stock of the Company left
within the Trust are converted into cash such as when a tender offer is accepted and settled with respect tosuch shares, the Company may make a distribution in money instead of the shares.
28(6) Overview of the Trust(i) Name: Stock Distribution Trust for Officers(ii) Settlor: Asahi Group Holdings, Ltd.
(iii) Trustee: Sumitomo Mitsui Trust Bank, Limited (scheduled)(iv) Beneficiaries: Eligible Directors fulfilling requirements of the Beneficiaries(v) Trust Administrator: The Company selects a third party who does not have any interest in the
Company, the Company’s subsidiaries, or any director and corporate auditor, or corporate officer
belonging thereto (scheduled)(vi) Trust type: Trust of money other than money trust (third-party-benefit trust)(vii) Date of Trust Agreement: May 2016 (scheduled)(viii) Date on which cash will be entrusted: May 2016 (scheduled)(ix) Trust period: From May 2016 (scheduled) to May 2019 (scheduled)
A. Structure of the Trust[Settlor](2) Creation of trust(third-party-benefit trust) (cash trust)

Stock market

Asahi Group Holdings, Ltd.
(3) Payment(3-a) Purchase price[Trustee] (scheduled)
Sumitomo Mitsui Trust Bank, Limited
Stock distribution trust(3) Disposal oftreasury shares(5) Grant

Shares of common
stock of the Company

of points

Cash(4) Instruction not to exercise
voting rights(1) Establishment ofstock distribution
regulations(3-a) Purchase ofshares(6) Sale of shares(6) Sale proceeds(6) Shares or cash

Trust Administrator[Beneficiaries]
Directors(Note) Dotted lines denote the movements of shares.

1.


The Board of Directors of the Company will establish Stock Distribution Regulations intended for
its Directors (excluding Outside Directors).

2.

The Company will create a stock distribution trust (third-party-benefit trust) for Directors as
Beneficiaries. When doing so, the Company will leave such amount of cash as to be equivalent tothat for funds to acquire shares (limited to an amount within the purview approved by the
Shareholders’ Meeting) in trust with the Trustee.

3.

The Trustee will acquire, in one lump, a sufficient enough number of shares of common stock of
the Company that are expected to be distributed in future (either through the stock market or
disposing of treasury shares).

4.

Throughout the period of the Trust, the Company will appoint a Trust Administrator (to be limited
to be a party independent of the Company, the Company’s subsidiaries, or any director andcorporate auditor, or corporate officer belonging thereto) who is responsible for protecting theinterests of the Beneficiaries who are covered by the Stock Distribution Regulations andsupervising the Trustee. Throughout the period of the Trust, the Trust Administrator will give
instructions not to exercise any voting rights associated with the shares of common stock of theCompany kept within the Trust.

5.

Pursuant to the Stock Distribution Regulations, the Company will grant points to the eligible
Directors.
29



6.

The Directors fulfilling requirements prescribed in the Stock Distribution Regulation and theTrust Agreement will receive, as Beneficiaries of the Trust, a distribution of shares of common
stock of the Company equivalent to the cumulative number of points from the Trustee. In certain
specific cases set forth in advance in the Stock Distribution Regulations and the Trust Agreement,
the Company will sell part of the distributable shares kept within the Trust in the stock market anddistribute cash.

B. Creation of the Trust
Subject to approval of the proposed introduction of the Plan being given by this Annual General
Meeting of Shareholders, the Company will create the Trust by contributing the funds necessary for the
Trust to acquire, in advance for a certain specific period of time, such number of shares of common
stock of the Company as is reasonably expected to be required for distribution pursuant to (5) above. As
discussed in Item D below, the Trust will acquire, in one lump, shares of common stock of the Company
by applying the funds contributed by the Company as a source of its funds.
C. Period of the Trust
The period of the Trust will be approximately three years, starting in May 2016 (scheduled) and endingin May 2019; provided however, as stated in (4) above, this period of the Trust may be extended.
D. Method of Acquisition by the Trust of Shares of Common Stock of the Company
The Company plans to have the Trust initially acquire shares of its common stock through the stock
market or by disposing of treasury shares held by the Company within the upper limit on the amount ofTrust Money as stipulated in (4) above, but will resolve at the Board of Directors meeting and disclose
further details of the acquisition method after obtaining approval at this Annual General Meeting of
Shareholders.
If, during the period of the Trust, due to an increase in the number of Directors or any other cause, thenumber of shares of common stock of the Company kept within the Trust becomes short of that
corresponding to the number of points to be granted to the eligible Directors during the period of theTrust, the Company may have the Trust acquire additional shares by leaving additional cash in trust
within the scope of the upper limit on the trust money approved by this Annual General Meeting of
Shareholders as stated in (4) above.
E. Exercise of the Voting Rights
Pursuant to the instructions of the Trust Administrator who will be independent of the Company and its
Directors and Corporate Auditors, the voting rights associated with the shares kept within the Trust will
not be exercised without exception, which will assure the neutrality of the Company’s management inrelation to exercise of the voting rights of such shares.
F. Handling of Dividends
Dividends on the shares of common stock of the Company kept within the Trust will be received by theTrust, and will be applied towards payment for acquisition of the shares of common stock of theCompany, trust fees for the Trustee associated with the Trust, etc.
G. Handling of Trust Property at the Time of Termination of the Trust
Of the residual property left within the Trust at the time of termination of the Trust, the Company plansto acquire all of the residual shares of its common stock without charge and retire them by a resolutionof the Board of Directors. Of the residual property left within the Trust at the time of termination of theTrust, pursuant to the provisions of the Stock Distribution Regulations and the Trust Agreement, theCompany plans to donate a certain amount of residual cash to specified public-service promotion
corporations who does not have any interest in the Company, the Company’s subsidiaries, or any
Director and Corporate Auditor, or Corporate Officer belonging thereto.

30
BUSINESS REPORT
From January 1, 2015 to December 31, 2015

1. Overview of Operations of the Asahi Group(1) Business Progress and Results
During the fiscal year under review, while business conditions in emerging countries including
China slowed down, the global economy continued to follow an overall pattern of modest growth,mirroring the increase in the number of employed workers and the expansion of personal
consumption in the United States, as well as a modest business recovery in Europe.
In the Japanese economy, business conditions remained on track for a mild recovery primarily
as a result of improved corporate earnings triggered by the increased demand from foreign visitors,
as well as steady personal consumption against a backdrop of improved employment and income
environments.
Against this backdrop, the Asahi Group worked on increasing its corporate value by promoting“Value and Network Management”, under the “Medium-Term Management Plan 2015” that wascompleted in the fiscal year under review. In Value and Network Management, the Group promoted
initiatives aimed at attaining long-term stable growth by further expanding its domestic and overseas
networks, in addition to focusing on the “strengths” that it developed and acquired over the years,
such as its brands, technologies and cost competitiveness, and leveraging them for the creation of
new values and innovation. Giving utmost priority to growth of its sales and profit, the Group has
worked together for the continual increase in key performance indicators ROE (return on equity) andEPS (earnings per share) by improving capital efficiency through such means as increase ofshareholder returns.
As a result, the Asahi Group posted net sales of ¥1,857,418 million, a year-on-year increase of
4.0%. Operating income increased by 5.3% year on year to ¥135,119 million, and ordinary income
rose by 9.6% to ¥145,946 million. Net income totaled ¥76,427 million, an increase of 10.6%
compared with the previous year.
‫ ڦ‬Business performance of the Asahi Group31
Overview by Business Segment for 92nd Term
‫ ڦ‬Asahi Group Breakdown of Net Sales
Million yen, except percentages

Segment

91st term
FY2014nd

92 term
FY2015(under review)

Change inpercentage

Alcoholic Beverages¥941,953¥972,924¥30,971

3.3%

Soft Drinks

471,456

490,186

18,7294.0

Foods

110,024

115,035

5,011

4.6

International Operations

233,184

249,734

16,550

7.1

Other Businesses

28,85929,537

677

2.3

Total

1,785,478

1,857,418

71,9394.0

Note: The above figures exclude intra-Group sales.

32Change inamountAlcoholic Beverages Segment

Main products: Beer, happoshu (low-malt beer), new genre (malt-type), whisky and other spirits,wine, low-alcohol beverages, shochu, beer-taste beverages, etc.

In the alcoholic beverages segment, as diverse values and lifestyles are expected to proliferate
further, the Group made efforts to expand demand by breaking away from its dependence onsummer-time demand and creating “Koto” consumption—a new-type consumption induced byinvisible values such as experience, memories and services, not by the desire for possession— under
the slogan of “aiming to become the strongest partner company with proposals on a variety ofalcoholic beverages”.
In the beer-type beverages sector, we worked on enhancing the brand value of “Asahi Super
Dry” by pursuing further “evolution” of the flavor relative to substantial volume and enhanced
sharpness in taste and by launching products with seasonal package design and a limited-time“Asahi Super Dry – Extra Sharp”, brewed super dry to have a high fermentation and alcohol content.
Against the backdrop of rising health awareness, we have also made efforts to expand its productlineup to meet diverse consumer needs by releasing a purine bodies-free, derivative product of the
carbohydrate-free happoshu (low-malt beer) “Asahi Style Free” and “Clear Asahi – Toshitsu Zero
(Carbohydrate-Free)” in the new genre (malt-type) category.
In the sector of alcoholic beverages other than the beer-type beverages, the whisky and otherspirits category including the “Taketsuru” and “Black Nikka” brands and imported wines such as“SANTA HELENA Alpaca” from Chile performed strongly.
In the alcohol-taste beverages sector, sales grew sharply from those of the previous year mainly
due to the release of a beer-taste beverage, “Asahi Dry Zero Free”, that brought consumers “purine
bodies-free” in addition to “calorie-free” and “carbohydrate-free”.
Furthermore, the Group strengthened the operating base of its alcoholic beverages segment byadding ENOTECA CO., LTD., an importer and distributor of wines, as a new consolidated
subsidiary in March 2015.
Although sales volume for the alcoholic beverages segment fell due to the contraction of theoverall beer-type beverages market, sales of alcoholic beverages other than the beer-type beverages
and of alcohol-taste beverages exceeded those of the previous year, and the business performance ofthe new consolidated subsidiary also provided an additional contribution. As a result, the alcoholic
beverages segment posted net sales of ¥972,924 million, up 3.3% from those of the previous year.
Operating income before amortization of goodwill, etc.* increased by 2.2% year on year to¥119,496 million due mainly to the sales growth and reduced manufacturing costs, despite anincrease in promotion expenses. (Operating income after amortization of goodwill, etc. stood at¥118,732 million, representing a year-on-year increase of 1.5%.)* Operating income before amortization of goodwill, etc. = Operating income + Amortization of goodwill andamortization of intangible assets resulting from acquisitions

33
Soft Drinks Segment

Main products: Carbonated drinks, coffee, tea, milk-based beverages, lactic acid beverages,
mineral water, fruit drinks, etc.

In the soft drinks segment, the Group moved ahead to further enhance its brand value andreform its earnings structures by concentrating marketing investments on its mainstay brands,
making proposals for new value, and establishing optimal production and logistics systems.
In the “MITSUYA” brand, we sought to enhance brand value by releasing “MITSUYA Fruit
Cider” series, a carbonated drink containing fruit juice, on a full-scale basis. In the “WONDA” brand,
the Group launched, and made efforts to enhance the market visibility of, new products such as“WONDA GRAND WONDA” series, offered in bottle type can with a twist-off cap and “WONDA
Extra Shot” which introduced a depth of taste and “zero-sugar.” In the “Calpis” brand, the Groupendeavored to strive to stimulate the brands’ power by renewing the flagship products of “Calpis
Water” and “Calpis Soda” and by performing SNS-based sales promotional activities.
Furthermore, the Group worked on proposing new value by renewing “MITSUYA Cider Plus”
and “Asahi Shokujito Isshoni Juroku-Cha W,” both of which are Foods for Specified Health Uses,and by releasing “Ameal Water” and “Asahi Memehana-Cha,” both of which are Foods with
Functional Claims.
With respect to chilled soft drinks, the black tea category performed well, mirroring the
expansion of the product lineup for the “Otona no Kocha Premium” series, and the distribution
channels for small-capacity products were expanded in response to market needs.
As a result, the soft drinks segment posted net sales of ¥490,186 million, up 4.0% from those of
the previous year, as net sales of Asahi Soft Drinks Co., Ltd. and LB Co., Ltd. exceeded those of theprevious year.
In spite of sales growth, operating income before amortization of goodwill, etc. decreased by
3.1% year on year to ¥25,596 million due to active budget spending on promotion expenses anddeterioration in profitability caused by variations of the component ratio of products categories andsize and type of containers. (Operating income after amortization of goodwill, etc. stood at ¥22,409
million, representing a year-on-year increase of 5.1%.)

34
Foods Segment

Main products: Confectionery, nutritional snacks, supplements, quasi-drugs, infant formula,baby foods, freeze-dried miso soup, etc.

In the foods segment, the Group companies strove to concentrate on brands and businesses inwhich they have “strengths”, and to attain steady sales growth and improve profitability byreviewing production processes and reducing manufacturing costs.
At Asahi Food & Healthcare Co., Ltd., sales remained well thanks to the upgrading andexpansion of its product lineup including “MINTIA,” a tablet-type confectionary, and “Ippon
Manzoku Bar,” a nutritional snack. In addition, in the category of dietary supplement “Dear-Natura,”
Asahi Food & Healthcare launched “Dear-Natura Gold,” a Food with Functional Claims, andconducted storefront sales promotional activities in tandem with advertising.
Wakodo Co., Ltd. released a renewal version of “Eiyo Marché,” an in-container baby foods aswell as a new product in the category of the combined seasoning “Oyako de Gohan,” and stepped up
sales promotional activities for infant formula. In addition, Wakodo moved ahead on winning new
business partners in the contract manufacturing of professional-use products by bolstering its
capabilities for business propositions.
Amano Jitsugyo Co., Ltd. sought to enhance the market visibility of the “Amano” brand by
expanding the number of mass retailer handling “Itsumono Omisoshiru,” one of its mainstay
freeze-dried miso soup products. Moreover, Amano Jitsugyo introduced new products such as the“Mitsuboshi Kitchen” pasta series and the “Freeze Dry no Osozai” series aiming to capture markets
for a broad range of dinner styles.
As a result, the foods segment posted net sales of ¥115,035 million, up 4.6% from those of theprevious year, as each of the three companies performed better than in the previous year.
Operating income before amortization of goodwill, etc. increased by 30.2% year on year to¥8,446 million due to increased sales, efficient spending of advertising and sales promotion expenses
and reduced manufacturing costs. (Operating income after amortization of goodwill, etc. stood at¥8,074 million, representing a year-on-year increase of 33.5%.)35
International Operations Segment

Main products: Beer, low-alcohol beverages, carbonated drinks, mineral water, sport drinks, tea,condensed milk, etc.

In the international operations segment, the Group endeavored to expand overall segmental
sales and profitability by reinforcing its platform for business growth in each geographical region
and creating an integrated synergy in Oceania.
In the Oceania business segment, in the soft drinks sector, the Group made efforts to bolster
sales in the mainstay carbonated drinks category such as “Schweppes” and “Solo,” and conducted
aggressive sales promotional activities in the mineral water category for which the market isexpanding by drawing on a diverse product lineup including “Cool Ridge” and “Frantelle.” In thealcoholic beverages sector, “Somersby” in the growing category of cider (sparkling apple wine)
performed strongly. Meanwhile, the Group sought to enhance the market visibility of the “Asahi”
brand by running TV advertisements for “Asahi Super Dry” and by launching “Asahi Soukai,” abeer for exclusive distribution within Australia.
In the Southeast Asia business segment, “Mountain Dew,” the mainstay carbonated drink for
Malaysia, performed strongly. In addition, the Group endeavored to enhance its market presence by
aggressively conducting sales promotional activities for the Group’s own brand products such as“WONDA” in Malaysia and “ICHI OCHA” in Indonesia.
In the China business segment, as the sales volume of “Asahi Super Dry” offered in restaurants
including Chinese and Korean restaurants exceeded that of the previous year, the Group aspired tofirmly establish the “Asahi” brand by expanding to distribute its products through local massretailers.
As a result, the international operations segment posted net sales of ¥249,734 million, up 7.1%
from those of the previous year, as the business in each geographical region remained solid and the
Etika Group’s business performance provided an additional contribution.
Operating income before amortization of goodwill, etc. increased by 21.7% year on year to¥15,468 million, thanks to increased sales and the Group’s efforts at maximizing an integrated
synergy through self-manufacturing of PET bottles and streamlining of logistics costs in Oceania.
(Operating income after amortization of goodwill, etc. improved by ¥4,723 million year on year to¥3,519 million.)36Other Businesses Segment

Main services: Cargo transportation, etc.

In the other businesses segment, net sales increased by 2.3% year on year to ¥29,537 million,
mainly due to increase in the contracts in logistics operations overall.
Operating income before amortization of goodwill, etc. increased by 545.8% year on year to¥1,305 million. (Operating income after amortization of goodwill, etc. stood at ¥1,305 million,
representing a year-on-year increase of 545.8%.)(2) Financial and Profit/Loss Indicators

Net sales
Operating income
Ordinary income
Net income
Operating margin
EBITDA*1
Earnings per share*2
Total assets
Net assets
Net assets per share*2
ROE(Return On Equity)

92nd term
FY201589th term
FY201290th term
FY201391st term
FY2014(under review)(yen)

1,579,076
108,437
114,82157,1836.9
170,981122.75
1,732,187
726,879
1,553.35

1,714,237
117,467
123,61261,7496.9
183,695
135.73
1,791,555
827,481
1,772.47

1,785,478
128,305
133,168
69,118
7.2
192,308
148.92
1,936,609
896,510
1,904.64

1,857,418
135,119
145,946
76,427
7.3
197,993166.25
1,901,554
891,829
1,916.69

(%)

8.4

8.0

8.1

8.8

(million yen)(million yen)(million yen)(million yen)(%)(million yen)
(yen)(million yen)(million yen)

*1

EBITDA is equal to the sum of operating income before amortization of goodwill, etc., and depreciation.

*2

Earnings per share (EPS) is calculated based on the average total number of shares outstanding during the term.
Net assets per share is calculated based on the total number of shares outstanding at term-end. The number ofshares outstanding is exclusive of treasury shares.

37(3) Capital Investment Activities
Consolidated capital expenditures in the year under review totaled ¥56,830 million, the segment
breakdown of which is as follows. A large portion of the capital expenditures represented
investments made to upgrade existing facilities and implement energy conservation measures.
Amount of capital expenditure(Million yen)

Business segment
Alcoholic Beverages

18,095

Soft Drinks

16,637

Foods

5,359

International Operations

15,680

Other Businesses

201

Company-wide (common)

855
Total

56,830(4) Financing Activities
The Company financed the capital investments detailed in item 3. above and other capitalrequirements through loans from financial institutions, the issuance of commercial papers and bonds.
(The Company issued the 7th unsecured bonds (5-year bonds: ¥25.0 billion) and the 8th unsecured
bonds (7-year bonds: ¥10.0 billion) on May 28, 2015.)
Funds required for companies’ businesses of the Asahi Group are primarily sourced by theCompany.

(5) Status of Principal Lenders(As of December 31, 2015)

Outstanding balance(Million yen)

LenderSumitomo Mitsui Banking Corporation

61,001

Mizuho Bank, Ltd.

19,042

Sumitomo Mitsui Trust Bank, Limited

15,214The Norinchukin Bank

15,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

11,12238
(6) Principal Subsidiaries
Company name
Asahi Breweries, Ltd.
Asahi Soft Drinks Co., Ltd.
LB Co., Ltd.
Asahi Food & Healthcare Co., Ltd.
Wakodo Co., Ltd.
Amano Jitsugyo Co., Ltd.
Asahi Holdings (Australia) Pty Ltd

Capital(Million yen)
20,000Shareholdings

11,081
487
3,200
2,918
67
132,697

100.0
100.0
100.0
100.0
100.0
100.0

(%)
100.0

(AUD 1,806,901 thousand)Asahi Beer (China) Investment Co.,
Ltd.

9,996

100.0

(CNY 737,487 thousand)Main operations
Production and marketing of alcoholic
beverages
Production and marketing of soft drinks
Production and marketing of soft drinks
Production and marketing of foods
Production and marketing of foods
Production and marketing of foods
Overseeing soft drinks and alcoholic
beverages operations in Oceania
Overseeing alcoholic beverages
operations, and marketing of alcoholic
beverages in China
Contracting of clerical work

Asahi Professional Management50
100.0Co., Ltd.
Notes:
1.
Shareholding percentages include shares held indirectly.
2.
There were 118 consolidated subsidiaries of the Company as of the end of the fiscal year under review,
including those listed above. There were 126 entities accounted for using equity method, including Tsingtao
Brewery Co., Ltd. and Tingyi-Asahi Beverages Holding Co., Ltd.
3.
There are no wholly owned specified subsidiaries as of the end of the fiscal year under review.

(7) Significant Developments such as Corporate Reorganization
As of March 31, 2015, the Company acquired all the shares of ENOTECA CO., LTD. throughthe intermediary of Asahi Breweries, Ltd., a wholly owned subsidiary.

(8) Principal Offices and Factories(As of December 31, 2015)

1) Asahi Group Holdings, Ltd.
(Head office)23-1, Azumabashi 1-chome, Sumida-ku, Tokyo(Laboratory)
Research & Development Center (Moriya City, Ibaraki Prefecture)2)

Subsidiaries

Businesssegment

Alcoholic
Beverages

Company name

Asahi Breweries,
Ltd.

Major establishments
Head office
Regional sales
offices
Production
facilities
Laboratories

23-1, Azumabashi 1-chome, Sumida-ku, Tokyo
Tokyo Metropolitan Headquarters (Chuo-ku,
Tokyo), etc.
Ibaraki Brewery (Moriya City, Ibaraki Prefecture),etc.
Development Laboratories for Alcoholic
Beverages (Moriya City, Ibaraki Prefecture), etc.

39Businesssegment

Company name

Asahi Soft Drinks
Co., Ltd.

Soft Drinks

Head office
Regional sales
offices
Production
facilities
Laboratories
Head office

LB Co., Ltd.

Asahi Food &Healthcare Co.,
Ltd.

Foods

Major establishments

Wakodo Co., Ltd.

Amano JitsugyoCo., Ltd.

Regional sales
offices
Production
facilities
Laboratories
Head office
Regional sales
offices
Production
facilities
Laboratories
Head office
Regional sales
offices
Production
facilities
Laboratories
Head office
Regional sales
offices
Production
facilities
Laboratories
Head office

Asahi HoldingsInternational (Australia) Pty Ltd
Operations Asahi Beer (China) Head office
Investment Co., Ltd.

23-1, Azumabashi 1-chome, Sumida-ku, Tokyo
Tokyo Metropolitan Headquarters (Chuo-ku,
Tokyo), etc.
Akashi Plant (Akashi City, Hyogo Prefecture), etc.
Products Research & Development Laboratory(Moriya City, Ibaraki Prefecture), etc.
3469-1, Aza Sakuragaoka, Ooaza Kurohama,
Hasuda City, Saitama Prefecture
CVS Marketing Department (Taito-ku, Tokyo),etc.
Hasuda Plant (Hasuda City, Saitama Prefecture),etc.
Marketing Department (Hasuda City, Saitama
Prefecture)
4-1, Ebisuminami 2-chome, Shibuya-ku, Tokyo
Food Sales Section I for Chain Stores (Chuo-ku,
Tokyo), etc.
Osaka Plant (Suita City, Osaka Prefecture), etc.
Products Research & Development Laboratory(Chuo-ku, Tokyo), etc.
4-1, Ebisuminami 2-chome, Shibuya-ku, Tokyo
Tokyo Branch (Shinjuku-ku, Tokyo), etc.
Tochigi Plant (Sakura City, Tochigi Prefecture)
Research Laboratory (Chofu City, Tokyo)
9-10, Dosan-cho, Fukuyama City, Hiroshima
Prefecture
East Japan Branch (Chiyoda-ku, Tokyo), etc.
Okayama Factory (Asakuchi-gun, Okayama
Prefecture)
R&D Center (Asakuchi-gun, Okayama Prefecture)
Victoria, Australia
Shanghai, China(9) Employees(As of December 31, 2015)

Number of
employees
5,666
3,998
1,368
8,737
1,915
510
22,194

Business segment
Alcoholic Beverages
Soft Drinks
Foods
International Operations
Other Businesses
Company-wide (common)
Total
40


Increase (decrease) fromthe end of the previous term
555
(82)
1
480
55
8
1,017

(Reference)
Effective January 1, 2016, the Group reorganized its soft drinks segment and foods segment with aview to bolstering their business platforms in Japan.
 The soft drinks segment excluding chilled soft drinks was integrated into Asahi Soft Drinks Co., Ltd.
x Calpis Co., Ltd. now specializes in the soft drinks manufacturing and dairy products businesses.
x Calpis Co., Ltd.’s functional foods business (mail-order business and functional raw material)and feedstuffs business were transferred and succeeded to Asahi Calpis Wellness Co., Ltd.
 The foods segment was integrated into Asahi Group Foods, Ltd.
x Asahi Food & Healthcare Co., Ltd., Wakodo Co., Ltd. and Amano Jitsugyo Co., Ltd. continue
their respective businesses performing manufacturing functions.

41(Reference)<Group Companies as of January 1, 2016>
Company-wide (Common)
Asahi Group Holdings, Ltd.
Asahi Professional Management Co., Ltd.
and others.
Alcoholic Beverages Segment
Asahi Breweries, Ltd.
The Nikka Whisky Distilling Co., Ltd.
ENOTECA CO., LTD.
Asahi Draft Marketing, Ltd.
Asahi Food Create, Ltd.
Nadaman Co., Ltd.
Masuda Co., Ltd.
Asahi Beer Malt, Ltd.
Asahi Beer Feed Co., Ltd.
Sainte Neige Wine Co., Ltd.
Satsumatsukasa Shuzo Co., Ltd.
Hokkaido Nikka Service Co., Ltd.
Sendai Nikka Service Co., Ltd.
Asahi Beer U.S.A., Inc.
LOTTE Asahi Liquor Co., Ltd.
and others.

International Operations Segment
Asahi Holdings (Australia) Pty Ltd
Schweppes Australia Pty Limited
Independent Liquor (NZ) Limited
Asahi Premium Beverages Pty Ltd
The Better Drinks Co Limited
Mountain H2O Pty Ltd
Asahi Group Holdings Southeast Asia Pte. Ltd.
Permanis Sdn. Bhd.
Etika Dairies Sdn. Bhd.
PT Asahi Indofood Beverage Makmur
Asahi Loi Hein Company Limited
Asahi Beer (China) Investment Co., Ltd.
Beijing Beer Asahi Co., Ltd.
Yantai Beer Tsingtao Asahi Co., Ltd.
Shandong Asahi Green Source Hi-Tech Farm Co., Ltd.
Shandong Asahi Green Source Milk Products Co., Ltd.

Buckinghamshire Golf Co., Ltd.
and others.

Soft Drinks Segment
Asahi Soft Drinks Co., Ltd.
LB Co., Ltd.
Calpis Co., Ltd.
Asahi Calpis Beverage Co., Ltd.
Asahi Orion Calpis Inryo Co., Ltd.
and others.

Other Businesses Segment
Asahi Calpis Wellness Co., Ltd.
Asahi Logistics Co., Ltd.
East Japan AB Cargo Co., Ltd.
West Japan AB Cargo Co., Ltd.

Foods Segment
Asahi Group Foods, Ltd.
Asahi Food & Healthcare Co., Ltd.
Wakodo Co., Ltd.
Amano Jitsugyo Co., Ltd.
and others.

42(Reference)
Summary of Medium-Term Management Plan 2015
In Medium-Term Management Plan 2015, launched in 2013, the Company adopted growth in
ROE and EPS as key performance indicators (KPI). Under the plan, the Company has worked toenhance corporate value through capital efficiency improvement to increase shareholder returns,
while placing the highest priority on sales and profit growth.
In an tough business environment both in Japan and overseas during the term of Medium-Term
Management Plan 2015, the Group undertook value creation focused on strengths, network
expansion, earning structure reforms results exceeding targets, and substantial shareholder returns
and was able to achieve its targets as shown below.
At the same time, in an increasingly fierce competitive environment, issues that remain to beaddressed include further high value addition and creation of new demand in the mainstay alcohol
beverages and soft drinks businesses. Overseas business, acceleration of growth for Oceania andSoutheast Asia and expansion of the global foundations for growth are urgent priorities.

z

Key Performance Indicators (KPI)

ROE
Adjusted
ROE*
Adjusted
ROE (before
goodwill
amortization)
EPS(growth rate)*

FY2012(actual)

FY2013(actual)

FY2014(actual)

FY2015(actual)

8.4%

8.0%

8.1%

8.8%

Average
growthrate forthree years
–

8.6%

8.7%

9.4%

10.4%

–

11.2%

11.9%

12.6%

13.1%

–

About 12%

¥122

¥135
(10.6%)¥148(9.7%)¥166(11.6%)

10.6%

Average annual
growth rate of 10%
or moreMedium-Term
Plan target
FY2015

About 10%Adjusted ROE: In light of the rapid yen depreciation and share price hike, adjusted ROE is calculated after
excluding “foreign currency translation adjustment” and “valuation difference on available-for-sale securities”
from “equity.”<KPI-based Guidelines>
FY2012(actual)

FY2013(actual)

FY2014(actual)

FY2015(actual)¥1,714.2
billion(8.6%)¥183.6billion(7.4%)¥61.7
billion(8.0%)¥1,785.4
billion(4.2%)¥192.3billion(4.7%)¥69.1
billion(11.9%)¥1,857.4
billion(4.0%)¥197.9billion(3.0%)¥76.4
billion(10.6%)

6.9%

6.9%

7.2%

22.8%

31.7%

22.8%

80.5%

Net sales(growth rate)¥1,579.0
billion

EBITDA(growth rate)*¥170.9billion

Net income(growth rate)¥57.1
billionOperatingmarginDividend
payout ratio
Total return
ratio
*

5.6%

Average annual
growth rate of 3%

5.0%

Average annual
growth rate of 6%

10.2%

Average annual
growth rate of 7%

7.3%

–

8% or more

30.2%

30.1%

–

About 30%

102.8%

56.1%–

50% or more

EBITDA is equal to the sum of operating income before amortization of goodwill, etc. and depreciation.
43



AverageMedium-Term Plan
growthguideline
rate for
FY2015three years

(10) Management Perspectives
1)

Management Basic Policy
Under the group-wide corporate philosophy of “The Asahi Group aims to satisfy its customers
with the highest levels of quality and integrity, while contributing to the promotion of healthyliving and the enrichment of society worldwide,” the Group conducts business activities in the“Alcoholic Beverages,” “Soft Drinks” and “Foods” segments and the “International Operations” ofsuch segments, under the command of Asahi Group Holdings, Ltd., a pure holding company.
In addition, the Group makes efforts to resolve social issues through our business activities inthe three business activity domains of “Food and Health,” “The Environment” and “People andSociety,” and set out the respective material issues (priority themes) in each domain, toward therealization of a “sustainable society,” which is essential for developing our corporate activities.
2)

Future Changes in Business Environment
In the business environment surrounding the Asahi Group, as the twenty-year struggle toescape from deflation reaches a crucial stage in Japan, the increase of consumption tax and revisionof the liquor tax are expected to result in further diversification of consumption. Overseas, at a timeof slowing of growth in emerging economies, a wide variety of risks and opportunities are expected
to emerge, including continuation of large-scale global industry realignment.
Furthermore, in response to formulation of the Japan’s Stewardship Code and Corporate
Governance Code, the management approach of Japanese companies and perspectives ofshareholders and other stakeholders are likely to shift more toward sustainable growth and theincrease of corporate value over the mid- to long-term.
3)Long-Term Vision
In light of the foregoing, the Asahi Group has revised the “Long-Term Vision 2020” that it
developed in 2012 and formulated the new Long-Term Vision, which incorporates a vision of the
future ten years or so while following the basis of the Long-Term Vision 2020. The Groupenvisions what the entire Group desires to be and prescribed the vision for each of stakeholders byadvancing the rallying calls of “Striving to be a corporate group trusted around the world throughthe Kando of food (deliciousness, happiness and innovation)” and “Seek ‘sustained corporate valueenhancement’ by pursuing satisfaction for all stakeholders.”
4)

Medium-Term Management Policy
Concurrently with the renewal of the “Long-Term Vision,” the Group plans to amend theexisting “Medium-Term Management Plan” as a “Medium-Term Management Policy.” The Policy
is to indicate guidelines for KPI for the coming three years on a rolling basis in accordance withchanges in the business environment. In addition, the Group will strive to further develop“Management for Corporate Value Enhancement” by setting the following three key priorities:
A Strengthening of power of earnings generating by positioning the domestic profit base as
the cornerstone of earnings and the overseas business as a growth engine
y Promotion of innovation and demonstration of leadership in the industry with high value
addition and differentiation as key areas of focus
y Earning structure reforms and business model evolution through business integration andvalue chain sophisticationy Acquisition of foundations for growth, mainly in overseas markets, leveraging strengths
originating in Japan
B Asset and capital efficiency improvement that takes into consideration capital costy Capital efficiency improvement with an emphasis on equity spread (ROE  cost ofshareholders’ equity)y Business administration and business portfolio restructuring utilizing ROIC (rate of returnon invested capital) as a performance indicator
C Reinforcement of ESG (environmental, social, and governance) initiatives to increase44sustainabilityy Upgrading of “hidden capital assets” such as nature, social and relationship capital, andpersonnel and its development toward a CSV* strategy
y Implementation of “active corporate governance” that contributes to the practice ofmanagement to enhance corporate value*CSV: creating shared value
Going forward, the Company will deepen dialogue with the shareholders, investors and otherstakeholders and aim at sustained corporate value enhancement by positioning the Long-Term
Vision and Medium-Term Management Policy as a stakeholder engagement agenda.
The Group cordially requests shareholders’ continuing encouragement and support.

45
Corporate Philosophy of the Asahi GroupThe Asahi Group aims to satisfy its customers with the highest levels of quality and integrity,
while contributing to the promotion of healthy living and the enrichment of society worldwide.
Long-Term Vision
Striving to be a corporate group trusted around the world through the Kando of food(deliciousness, happiness and innovation)
As a comprehensive beverage and food business group whose core business is alcohol
beverages, aim to be an industry leader in Japan with high value addition as a key areaof focus and establish a unique position as a global player that leverages strengths
originating in Japan.
Seek “sustained corporate value enhancement” by pursuing satisfaction for all stakeholders
Vision for Stakeholders
Customers
Business
partners
Society
Employees
Shareholders

Continue to create new value based on strengths nurtured in Japan and achieve theNo. 1 ranking for customer satisfaction in Japan and each region of the world.
Develop relationships with our business connections and alliance partners thatenable mutual growth through new value creation.
Contribute to the resolution of social problems through the Group’s businesses inareas such as development of a wholesome food culture.
Develop an environment in which employees experience both personal andcorporate growth and can work vigorously.
Enhance corporate value (equity value) through sustained profit creation andshareholder returns.

Medium-Term Management Policy
Further development of management to enhance corporate value in order to achieve sustainable growth
Key Performance Indicator (KPI) Guidelines
FY2015 actual

Guidelines for FY2016 to FY2018

Net sales¥1,857.4 billion

y Stable growth from main businesses – Business restructuring+ New M&A

Operating income¥135.1 billion

y Existing businesses (Average annual growth rate in the highsingle digits) + Impact of new M&A

EPS

¥166

y Average annual growth of approx. 10%

ROE

8.8㸣

y Maintenance and increase to 10% or higher

Notes: 1.

Guidelines for each indicator take into account the impact of International Financial Reporting Standards (IFRS)transition at the end of FY2016.
2. The calculation basis excludes special factors such as foreign exchange impact and one-off extraordinary items.

Financial and Cash Flow Guidelines
FY2016 to FY2018 cumulative guidelines
Cash flow (CF)

Growth investment

Shareholder returns

y Generated cash flow: ¥470.0 billion or more (Operating cash flow +Maximization measures + Assets review)y Capital expenditures: ¥180.0 to ¥220.0 billion
y Active investment in M&As and alliances to acquire foundations for growth(Maximum D/E ratio* of approx. 1.0 time acceptable if major capitaldemands arise)y Stable dividend increases with the aim of a dividend payout ratio of 30%(IFRS basis) by FY2018
y Flexible acquisition of treasury shares taking into account an appropriatebalance with growth investment* D/E ratio (debt equity ratio) = interest-bearing debt / equity46(Reference) CSR Activities of the Asahi GroupThe Asahi Group aims to be a trustworthy corporate group by proactively making efforts to resolve
social issues through our business activities in the three business activity domains of “Food and Health”,“The Environment” and “People and Society”.
 Food and Health
Wakodo Awarded by Consumer Affairs Agency for Activities in Assisting Childrearing
Wakodo, dealing in baby items, has been sending nutritionists
across Japan and conducting childcare consultation, ahead of its
competitors, for more than 55 years. Furthermore, Wakodo has, incooperation with the government, been transmitting information forbabies’ healthy, safe and secure life. In recognition of such activities
performed for a long time, Wakodo earned the “Best Consumer
Supporter Award” for 2015 at the Consumer Affairs Agency-hosted
ceremony to present the commendations for contributors to consumer
support, where individuals and entities participating actively in theprotection and promotion of consumer interests were commended.
Going forward, Wakodo will continue to advance its businessactivities while concurrently conducting CSR activities in order to realize sustainable society,valuing the corporate philosophy it has had since its inception: “We support the healthy growth ofbabies and the well-being life of everyone.”
 The Environment
Asahi Group Holdings Wins Highest Rating on “Water Resource Management” and“Response to Climate Change” by CDP
By CDP (previously called “Carbon Disclosure
Project”), an international non-profit organization, theCompany was awarded the highest “A” rating for each of
the “water resource management” and “response to climatechange” categories in 2015. CDP performs annual
evaluations of the impact of corporate activities on theenvironment and natural resources with a view to requesting,for and on behalf of institutional investors, that corporations
disclose and take actions regarding such impact. Thesefavorable ratings are considered to be attributable to theGroup-wide initiatives and efforts as listed below.
The Group will strive to realize a sustainable society
by continuing to work on environmental challenges.
<Initiatives and efforts relating to “water
resource management”>
y Environmental preservation
activities at water sources tofactoriesy Reduction of water usage inproduction processes and wastewater
emission controly Analysis of risks to water andevaluation of economic impact ofsuch risks on business from theviewpoint of major materials
purchasing<Initiatives and efforts relating to“response to climate change”>
y Reduction of greenhouse-effect gas,such as use of green electricity,
introduction of a co-generation
system, and active deployment ofenergy-saving vending machinesy Construction of an environmental datasystem within the Group, promotionof its disclosure, and implementationof third-party verification47
(Reference) People and Society“Barley-of-Hope Project” off to Full-Scale Startup
The Company started the “Barley-of-Hope Project” jointly with “Higashimatsushima Organization
for Progress and Economy, Education, Energy” with the aim of creating new industries and employment
in one of the areas stricken by the Great East Japan Earthquake by growing barley with the know-how,
technologies, and networks held with research institutes, by the Asahi Group. The Company formed a
coalition encompassing business, administration, academic and civil sectors with the City of HigashiMatsushima, Tohoku University, local citizens, and others. In April 2014, the project team commenced
demonstration experiments at three locations in Higashi-Matsushima, Miyagi Prefecture, and harvested
barley for the first time in 2015. Furthermore, the project is moving ahead to play an active role inbringing bread-and-butter jobs and diminished street bustle back to the disaster areas by developing
products made from harvested barley and expanding growing area by using a former park site near thecoast from October onwards.

Asahi Group Holdings Chosen as “Health & Productivity Stock Selection”
Asahi Group Holdings was chosen by the Ministry of Economy, Trade andIndustry and by the Tokyo Stock Exchange as a “Health & Productivity Stock
Selection” for two consecutive years in FY 2015 and 2016. Chosen from among
the TSE-listed issues, a “Health & Productivity Stock Selection” represents a
corporation which considers the healthcare of its employees from the managerial
perspective and strategically puts such considerations into practice. At Asahi
Breweries as the core company of the Asahi Group, the rallying call goes:“Health is the foundation for everything, and each one of us will make efforts toprevent disease and promote physical and mental health.” Asahi Breweries
undertook initiatives to support such efforts, and we believe that Asahi Group Holdings was chosen inrecognition of such initiatives.
Going forward, the Asahi Group will continue to drive “health and productivity management” sothat its employees may work with vigor and enthusiasm with an optimistic outlook toward the future,create an environment for living a healthy and fulfilling life, and “contribute to the promotion of healthyliving and the enrichment of society worldwide” as pledged in its corporate philosophy.

48
2. Corporate Governance System(1) Basic Concept
With the belief that “growth-oriented governance” by which to make transparent, fair, swift andbold decisions is indispensable for striving to achieve sustainable growth and increase a corporate
value over the mid- to long-term, the Company has established its Corporate Governance Guidelines,
and makes efforts primarily in the following areas:
1) Ensuring rights of and equality among shareholders
Recognizing that “a shareholder is equal in accordance with his/her equity interest”, theCompany strives to ensure substantial equality of shareholders and conduct appropriate
information disclosure by posting various information for shareholders and/or individual
investors with updates, as needed, on its website. Information disclosure is also ensured foroverseas investors using the English website, as well as the issuance of the English-version
Convocation Notice of the General Meeting of Shareholders in view of the convenience of
exercising of shareholders’ rights by foreign shareholders. Furthermore, the Company has
streamlined a system that allows for employees assigned to assist the Board of Corporate
Auditors, who are not be subject to directives or orders from Directors or employees, under thecontrol of the Board of Corporate Auditors, so that Corporate Auditors can handle claims fromany minority shareholders against the Company or any Director and Corporate Auditor,
independently from management to ensure the substantial rights of minority shareholders.
2) Appropriate Collaboration with Stakeholders
The Company has identified corporate value as a summation of six types of capital: financial
capital, manufacturing capital, intellectual capital, human capital, social and relationship capitaland natural capital, and has set its vision vis-à-vis its customers, business partners, society,employees and shareholders as stakeholders as described below. The Company has appropriately
put into practice its collaboration with stakeholders based on such vision:
Customers:
Continue to create new value based on strengths nurtured in Japan andachieve the No. 1 ranking for customer satisfaction in Japan and each regionof the world.
Business partners: Develop relationships with our business connections and alliance partners
that enable mutual growth through new value creation.
Society:
Contribute to the resolution of social problems through the Group’sbusinesses in areas such as development of a wholesome food culture.
Employees:
Develop an environment in which employees experience both personal andcorporate growth and can work vigorously.
Shareholders:
Enhance corporate value (equity value) through sustained profit creation andshareholder returns.
3) Ensuring Proper Information Disclosure and Transparency Thereof
The Company formulated the “Disclosure Policy” and proactively addresses the voluntary
disclosure of information. The Company strives to provide well-balanced information disclosure
between financial information, such as accounting, and non-financial information, such as
management strategies, risks and governance, by publicizing the Integrated Report, in addition to
the statutory disclosure, timely disclosure and other information disclosures on the website.
4) Responsibilities of the Board of Directors
The Company’s Board of Directors appropriately fulfills their roles and responsibilities toensure the sustainable growth and the increase of corporate value over the mid- to long-term of
the Company, as well as to promote the improvement of earning capacity and capital efficiency
by taking into account their fiduciary responsibility and accountability to shareholders. Suchinitiatives include determining the Long-Term Vision and medium-term management policies
and promoting their execution, while also properly supporting management’s risk taking bystreamlining the internal control system and risk management system.
The Board of Directors, in deliberating management strategies etc., mainly prepared bymanagement, takes care to plan the meetings as a venue for constructive discussion by avoiding
ritual discussion with measures such as sharing information with Outside Directors and a49
preliminary explanation of agenda items thereto in the review process or receiving reports on the
results of discussion from the Board of Corporate Auditors, thereby aiming for the sustainablegrowth and the increase of corporate value over the mid- to long-term of the Company.
5) Dialogues with Shareholders
For promoting constructive dialogues with shareholders, the Company shall appoint an officer
as a responsible executive in charge of dialogues with shareholders and ensure well-organizedcollaboration among the auxiliary departments by providing the information for the dialogues. In
addition, the Company shall endeavor to understand the shareholder structure and conductvarious explanatory meetings by Representative Directors of the Company, visits todomestic/overseas investors and/or factory tours for shareholders.
(2) Characteristics of Current Systems
As a company with a Board of Corporate Auditors, the Company audits the execution of duties by
the Directors utilizing the Board of Corporate Auditors, of which a majority of the board members
are independent Outside Corporate Auditors, while taking advantage of the corporate auditor systemwith its independence, and in which the power of final decision making is given to each person andwhich has Standing Corporate Auditors. In addition, the Nomination Committee and theCompensation Committee have been established to act as advisory bodies to the Board of Directors,of which half the members of each committee are independent Outside Directors. Under the systemof these discretional bodies, the Company is creating a structure that allows independent Outside
Directors/Corporate Auditors to monitor the management of the Company with high effectiveness.
(3) Structure of the Board of Directors
The Board of Directors includes three or more Outside Directors who have been elected fromamong corporate managers and/or experts in view of their experience, insight and professional
background to ensure the balance and diversity in terms of knowledge, experience and ability of theentire board. The Board of Directors comprehensively evaluates and judges the candidates’
experience, insight and professional background with reference to the requirements for Directors,
which are determined based on the management strategies of the Company, such as the “Corporate
Philosophy of the Asahi Group” and the “Asahi Group’s Corporate Action Guidelines.” The number
of Directors is fixed to be up to fifteen in total of both outside and internal directors.
(4) Evaluation of Effectiveness of the Board of Directors
To contribute to the creation of corporate value over the mid- to long-term, the Company analyzes
and evaluates the effectiveness of the Board of Directors, and discloses the summary of theevaluation results of Fiscal 2015.
(5) Requirements for Directors and Corporate Auditors
In appointing candidates for Directors and Corporate Auditors, the Board of Directors appoints
candidates who have a wealth of experience, excellent insight and expertise, which are appropriate
for such positions of the Company for the purpose of realizing effective corporate governance.
Also, in the interests of higher fairness and transparency in determining the personnel affairs ofofficers, the Board of Directors has established the Nomination Committee to act as an advisory
body, of which half the committee members are Outside Directors, for the consultation of all queries
related to candidates for Directors, Corporate Auditors and Corporate Officers of the Company.

50(6) Succession Plan and Training
Pursuant to the requirements demanded of its Directors, the Company has identified the matters ofsuccession (cultivation of successors) and pipeline (personal resources of successors) of its Directors
and Corporate Officers as the highest priorities, and plans to develop a succession plan for the CEO,etc. during Fiscal 2016. The Board of Directors will properly supervise the development of such a
succession plan.
In addition, the Company sets the requirements for each of Directors and Corporate Auditors
according to his/her executive stage, and conducts training conducive to enhancement of Directors
and Corporate Auditors as a whole in accordance with such requirements. On the occasions of their
appointments, the Company provides Outside Directors/Corporate Auditors with information
relating to the overview of the Asahi Group including its operations, financial affairs andorganizations, and implements measures, such as factory tours, to facilitate their understanding of
the Group as needed.
(7) Criteria for judgment of independence of Outside Directors/Corporate Auditors
The criteria for judgment of independence of Outside Directors/Corporate Auditors are as
described on pages 10 and 11.
(8) System chart
The corporate governance system of the Company is shown in the chart below.

51(9) Roles and compositions of the advisory bodies
The roles and compositions of the advisory committees and deliberative bodies are as described
below:
1) Nomination Committee
The Nomination Committee provides reports on its findings and views about candidates for
Directors, Corporate Auditors and Corporate Officers in response to the inquiries referred fromthe Board of Directors. The Committee consists of two Outside Directors and two internal
Directors, and an internal Director is co-operatively appointed as its chairperson. The Committee
held two meetings during Fiscal 2015, and provided reports on its findings and views primarily
about personnel affairs of officers.
2) Compensation Committee
The Compensation Committee provides reports on its findings and views about the
remuneration system and amount of remuneration for Directors and Corporate Officers in
response to the inquiries referred from the Board of Directors. The Committee consists of two
Outside Directors and two internal Directors, and an Outside Director is co-operatively appointed
as its chairperson. The Committee held a total of nine meetings during Fiscal 2015, and provided
reports on its findings and views primarily about officers’ bonuses.
3) Information Disclosure Committee
The Information Disclosure Committee is responsible for centrally managing and controlling
corporate information disclosure, and provides reports on its findings and views about proposals
for fair, prompt and widespread information disclosure in response to the inquiries referred fromthe President and Representative Director. The Committee consists of internal Directors andCorporate Officers excluding the President and Representative Director, and the Director in
charge of public relations serves as its chairperson. The Committee held a total of twelve
meetings during Fiscal 2015, analyzed the contents of relevant information, and provided reports
on its findings and views about the need or otherwise, contents, methods, etc. of information
disclosure in light of the Timely Disclosure Rules of the Tokyo Stock Exchange.
4) Risk Management Committee
The Risk Management Committee provides reports on its findings and views about policies on
overall risk management activities based on the results of risk surveys and the priority ranking of
measures against main risks in response to the inquiries referred from the President andRepresentative Director. The Risk Management Committee consists of internal Directors, external
attorneys at law and the Director in charge of general and legal affairs serves as its chairperson.
The Committee held a total of four meetings during Fiscal 2015, and provided reports on its
findings and views about periodic risk surveys, operation and analysis of the Clean Line System,etc.
5) Corporate Strategy Board
The Corporate Strategy Board provides reports on its findings and views about evaluation of
the objectivity, reasonableness and legality of substantive matters in response to the inquiries
referred from the President and Representative Director, in order to promptly convert his/herdecisions into tangible forms. The Board consists of internal Directors and Corporate Officers,
and the President and Representative Director serves as its chairperson. The Board held a total of
fifty meetings during Fiscal 2015, and provided reports on its findings and views primarily aboutdevelopment of corporate strategies and status of business executions by Group companies.

52(As of December 31, 2015)

Category

Directors

Name

Information
Risk
Nomination Compensation
Disclosure Management
Committee
Committee
Committee
Committee

Naoki Izumiya‫۔‬Katsuyuki
Kawatsura

ࠐ

ࠐ

‫۔‬

‫۔‬

ࠐ

ࠐ

Shiro Ikeda

ࠐ

ࠐ

ࠐ

ࠐ

Katsutoshi
Takahashi
Yoshihide
Okuda

ࠐ

ࠐ

ࠐ

ࠐ

ࠐ

‫۔‬

ࠐ

ࠐ

ࠐ

ࠐ

observerobserverobserverobserverAkiyoshi Koji

Corporate
Auditors

Corporate
Strategy
Board*Mariko
Bando

ࠐ

ࠐ

*Naoki Tanakaࠐ‫۔‬*Ichiro Ito
Yoshihiro
Tonozuka
Akira Muto
*TadashiIshizaki*Katsutoshi
Saito*YumikoWasedaNote: *denotes Outside Directors/Corporate Auditors ‫۔‬committee chairpersons ࠐcommittee members.

533. Systems to Ensure Appropriate Execution of Directors’ Duties in Conformity
With Laws and Regulations and the Articles of Incorporation, and Other
Systems to Ensure Appropriate Business Operations
Overview of the resolution regarding systems to ensure appropriate business operations
The Board of Directors passed the following resolution with respect to the above-mentioned
systems. Also, in light of revisions to the Companies Act and other related laws and regulations,through a resolution made by the Board of Directors on April 30, 2015, the contents of the above
mentioned systems have been revised.
The Company has adopted the following corporate philosophy of the Asahi Group: “The Asahi
Group aims to satisfy its customers with the highest levels of quality and integrity, while
contributing to the promotion of healthy living and enrichment of society worldwide”. To makethese aims a reality, the Company shall:y establish, in accordance with the Companies Act and the Enforcement Regulations of theCompanies Act, the following basic policies (the “Basic Policies”) to improve systems designed
to ensure the appropriate execution of Directors’ duties in conformity with laws and regulations
and the Articles of Incorporation of the Company and its subsidiaries (herein this section the“Group Companies”) and ensure the appropriate business operations of the Group Companies(herein this section the “Internal Control System”);
y recognize that it is the Representative Director(s) who shall assume the ultimate responsibility
for the improvement of the Internal Control System in accordance with this resolution anddemand the Representative Director(s) to cause the Directors and Corporate Officers, throughthe respective departments and organizations they are in charge of, to develop and fully enforce
individual internal regulations that will be applied to the Company and the entire Asahi Groupand are required based on the Basic Policies; andy take steps to maintain and enhance the effectiveness of the Internal Control System by reviewing
the Basic Policies and relevant internal regulations that will be applied to the Company and theentire Asahi Group in a timely and appropriate manner in accordance with changes in conditions
and circumstances.
(1) System to ensure execution of duties by Directors and employees of the Company and theGroup Companies in conformity with laws and regulations and the Articles ofIncorporation of the Company and the Group Companies
1) In accordance with a statement of “Fair and Transparent Corporate Ethics” as stipulated in“Asahi Group’s Corporate Action Guidelines”, the Company shall establish “Regulations on
Corporate Ethics for the Asahi Group” and “Asahi Group Corporate Ethics Guidelines” andprocure its Directors, Corporate Auditors and employees abide by these regulations.
2) In accordance with “Asahi Group Risk Management Regulations”, the Company shallestablish the “Risk Management Committee”, which will oversee the compliance and risk
management of the Asahi Group. One of the committee’s members shall be an external
attorney at law.
3) An Officer of the Company in charge shall have authority over compliance and risk
management within the Asahi Group. The sections in charge of general and legal affairs shallhandle day-to-day compliance and risk management tasks.
4) The Company shall assign responsible persons in charge of compliance and risk managementin the Company and the Group Companies. The responsible person shall make efforts toprioritize compliance in all aspects of business activities at each Group Company.
5) The Company shall establish a “Clean Line System” for employees of the Asahi Group,
enabling them to blow the whistle on illicit behavior of others.
6) The Company shall establish “Asahi Group’s Basic Policy on Procurement” addressing
mutual cooperation for fair deals and social responsibilities between the each Group
Company and suppliers and system that enables suppliers to blow a whistle on breaches of
54


7)

8)

the Policy as necessary. The Company shall inform and spell out these measures to its
suppliers to enable the Company to develop an Internal Control System in cooperation with
its suppliers.
To ensure antisocial forces do not exert any undue influence on the Group, all relevant
information shall be shared within the Asahi Group and the Company shall establish aninternal system on the measures. The Company shall also cooperate closely with industry
bodies, local communities, the police and other external specialist organizations in this area.
The operational details of the aforementioned agencies and systems shall be spelled out undera separately prepared set of internal regulations that will be applied to the Company and theentire Asahi Group.

(2) System to ensure the preservation and management of information related to executionof duties by Directors
1) Information related to execution of duties by Directors shall be properly preserved andmanaged in accordance with “Document-Management Regulations” and other related
internal regulations that will be applied to the Company and the entire Asahi Group.
2) The aforementioned information shall be preserved and managed in a way accessible byDirectors and Corporate Auditors for inspection at any time.
3) Control over the clerical tasks related to preservation and management of the aforementioned
information shall be determined in accordance with internal regulations that will be applied
to the Company and the entire Asahi Group.
(3) Regulations and other organizational structures of the Asahi Group to manage risk ofloss1) The Company shall develop and adopt “Asahi Group Risk Management Regulations” andshall affirm them as the highest standards governing risk management within the Asahi
Group. It shall also establish a manual on the Regulations and disseminate the same among
all over the Group.
2) In addition to having the appropriate sections manage risk in their respective areas, the “RiskManagement Committee” shall perform comprehensive risk management across the entire
Asahi Group. The “Risk Management Committee” shall periodically analyze and evaluate
risks in accordance with the “Asahi Group Risk Management Regulations” and, whennecessary, carry out comprehensive reviews of the risk management system. Utmost attention
shall be paid to the risk of failing to maintain product quality. As a food and drink
manufacturing group, the Asahi Group strongly recognizes their social responsibility toconsumers to ensure the safety of their products.
3) In the event of any major accident, disaster or scandal, the Company shall establish
a “Crisis-Response Meeting” chaired by a Representative Director.
(4) System to ensure efficient execution of duties by Directors of the Company and theGroup Companies
1) To ensure efficient performance of duties by Directors, the Board of Directors shall divide
duties in a reasonable way to be delegated to different Directors and shall appoint appropriate
persons as Corporate Officers in charge of different sections.
2) The Company shall establish “Regulation of Authority” and “Asahi Group’s Regulation of
Authority” stipulating rules of delegation of power and for a mutual checks-and-balances
mechanism among different sections and among Group Companies.
3) The Company shall ensure the effective utilization of the “Corporate Strategy Board”,
consisting of the Company’s internal Directors and Corporate Officers for formulating the
Asahi Group’s corporate strategy and implementing progress management, etc.
4) To maximize operational efficiency, the Company shall utilize indices that provide an
objective and rational way of measuring its management and control of operations; and it
shall employ a unified system of follow-up and evaluation.
55


5)

To use funds efficiently, a cash management system among the Company and the Group
Companies is introduced.

(5) System to ensure appropriate operations of the Asahi Group
1) All systems required for the Internal Control, including those for compliance and risk
management, shall apply comprehensively across the entire Asahi Group. As the holding
company, the Company shall manage the said systems of the Group Companies while
respecting their autonomy, and supporting the development and operation of the Internal
Control System, in accordance with the conditions and circumstances individual companies
are facing.
2) The section in charge of internal auditing in the Company shall get a grasp of and evaluate
the Internal Control System and discipline in day-to-day tasks within the Asahi Group by
directly and indirectly auditing the Group Companies. In addition, regarding the Internal
Control related to financial reporting, the organization in charge of evaluation establishedwithin the Asahi Group shall conduct the evaluation on the Internal Control System of theGroup Companies and submit the relevant reports.
3) Decision-making authority related to business activities of the Group Companies shall be
subject to the document entitled “Asahi Group’s Regulation of Authority”.
4) Each of the Group Companies will provide reports at the “Corporate Strategy Board” one ormore times each quarter on performance of its operations including risk-related information.
(6) Securement of employees in the event that Corporate Auditors request staff to assist in
their auditing duties
The “Board of Corporate Auditors” shall appoint staff to serve the Board of Corporate Auditors,
for assistance in the day-to-day activities of the Corporate Auditors.
(7) Independence of employees assigned to assist the Corporate Auditors from the Directors
and ensuring the effectiveness of instructions received by relevant staff
1) When a member of the staff who serves the Board of Corporate Auditors, as stipulated in theprevious paragraph, receives an order from a Corporate Auditor in relation to auditing duties,
he/she shall not be subject to directives or orders from Directors or other employees
regarding that order.
2) Any issuance of orders to, personnel transfers of, merit evaluations of, or reprimands of amember of the staff who serves the Board of Corporate Auditors shall require the priorconcurrence of Corporate Auditors.
(8) System for Directors’ and employees’ reporting to Corporate Auditors
1) Directors and employees shall report regularly to Corporate Auditors on matters related to theInternal Control System, and shall report on an as-needed basis when a significant event
occurs. When necessary, the Corporate Auditors shall be entitled to request reports from the
Directors and employees (including from Directors and employees of the Group Companies).
2) Directors shall ensure that Corporate Auditors have every opportunity to participate indiscussions of important bodies, etc. such as the Board of Directors meetings, the “Corporate
Strategy Board” meetings and the “Risk Management Committee” meetings. Directors shallprovide details of the agenda items of such meetings beforehand for Corporate Auditors.
3) Corporate Auditors shall at all times have the right to review the minutes of important
meetings, documents of approval, etc.
(9) System for reporting by the Group Companies’ Directors, Corporate Auditors,
employees or persons receiving such reports to the Company’s Corporate Auditors
1) The Group Companies’ Directors, Corporate Auditors, employees or persons receiving
reports from them shall report regularly to the Company’s Corporate Auditors on matters
56


2)

3)

4)

related to the Internal Control System and, shall report on an as-needed basis when asignificant event occurs. When necessary, the Corporate Auditors shall be entitled to request
reports from the Directors and employees of the Group Companies.
The Company’s or the Group Companies’ sections in charge of internal auditing shall report
the results of the Group Companies’ internal audits to the Corporate Auditor of the Company
without delay.
The whistle-blowing contacts under the Clean Line System shall be the Company’s
Corporate Auditors, section in charge of general and legal affairs, or attorneys at law
designated by the Company (“external attorneys at law”), and the information reported to theCompany’s section in charge of general and legal affairs and the external attorneys at law
shall be reported to the Company’s Corporate Auditors.
The Company prohibits any party from treating the whistle-blower prescribed in thepreceding item and this item in any manner disadvantageous to him/her on the ground of thewhistle-blow.

(10) Policy on procedures for advance or reimburse expenses incurred in association with
Corporate Auditors’ execution of their duties, and treatment of other expenses or debts
incurred in association with the execution of their duties
To defray expenses incurred in association with the Corporate Auditors’ execution of their duties,
the Company shall secure a certain specific amount of budget and shall, in response to the requestof the Board of Corporate Auditors or the Standing Corporate Auditor, advance or reimburse
expenses or otherwise dispose of debts incurred in association with the Corporate Auditors’
execution of their duties.
(11) Other systems ensuring effective auditing by Corporate Auditors
To ensure the effectiveness of auditing activities, Directors shall ensure opportunities for
Corporate Auditors to exchange information and opinions regularly with members of the section in
charge of internal auditing of the Company and with the Independent Accounting Auditor.
Overview of operation of systems to ensure appropriate business operations(1) Overall Internal Control System
1) In order to develop and operate the Internal Control Systems of the Company and the Group
Company and effectively achieve the objectives of internal control, the sections of theCompany in charge of internal auditing cooperate with the internal auditing organ establishedwithin the Asahi Group in conducting audits to determine whether audit operations are
executed properly and efficiently in accordance with annual audit plans. During Fiscal 2015,
a total of 25 Group Companies were audited.
2) With respect to internal control over financial reporting, the evaluating organ establishedwithin the Asahi Group performs evaluation of the Group Companies’ internal control
activities pursuant to the “Basic Regulations for the Evaluation and Reporting of Internal
Control for Financial Reporting.”(2) Compliance System
1) The Company tries hard its newly recruited employees informed about the “Regulations on
Corporate Ethics for the Asahi Group” and the “Asahi Group Ethics Guidelines” byproviding training on compliance.
2) The Company promotes awareness of compliance by putting managers responsible forcompliance and risk management in place in the Company and the Group Companies andconducting education and training by job class. During Fiscal 2015, the principal focus was
the themes of “harassment” and “information management”.
3) The Company conducts multifaceted and multilayered surveys of compliance awareness andbehavior by conducting an anonymous “Compliance Questionnaire” annually to theemployees of the Company and the Group Company. In Fiscal 2015, the questionnaire results57
revealed that “overall compliance awareness level stood at a high level and was generally on
track towards improvement.”(3) Risk Management System
1) The Company conducts cross-sectional risk management for the entire Asahi Group throughthe “Risk Management Committee” as the highest-ranking risk management
deliberation/promotion organ. During Fiscal 2015, the Committee met for a total of fourtimes to conduct cross-sectional analyses and evaluations under the themes of “compliance,”“information,” “quality,” “environment/disaster,” “management/organization/labor affairs,”“crime,” “financial affairs/assets,” etc. on the basis of the findings of periodic risk surveys
conducted by departments concerned.
2) By keeping in place the “Clean Line System,” the Company detects and resolves risk
problems early, and effectively prevents risk problems themselves from occurring. During
Fiscal 2015, Corporate Auditors were added as a new whistle-blowing contact, which helped
enhance the effectiveness of the System.
3) The Company makes it a policy to deal with any major accident, disaster, scandal, etc. by
establishing a “Crisis-Response Meeting” chaired by the Representative Director. No major
accident, disaster or scandal occurred during Fiscal 2015.
(4) Business Management of Group Companies
1) With respect to the Group Companies’ business management, the Company has put in place asystem whereby, pursuant to the “Asahi Group’s Regulation of Authority,” the Group
Companies’ business executions are subject to the approval of the Board of Directors or anindividual Director of the Company, depending on the degree of their importance.
2) Once a month, the “Corporate Strategy Board” receives reports from main Group Companies
on the status of their business executions.
(5) Execution of Directors’ Duties
In order to ascertain the efficiency of Directors’ duties, the Board of Directors conducts rational
assignment sharing of services to be performed by Directors and Corporate Officers, and has each
Director and Corporate Officer report on the status of his/her business execution once every threemonths.
(6) Execution of Corporate Auditors’ Duties
1) Corporate Auditors attend meetings of the Board of Directors, the “Corporate Strategy
Board,” the “Risk Management Committee” and other important organs, thereby confirming
the status of development and operation of the Internal Control System.
2) Corporate Auditors enhance the effectiveness of auditing by finding regular opportunities forexchanging information and views with the section in charge of internal auditing, theindependent accounting auditors, etc. During Fiscal 2015, Corporate Auditors had regular
opportunities to exchange information and views with the section in charge of internal
auditing for a total of three times, with the independent accounting auditors for a total ofeight times, and with an organ within the Asahi Group in charge of evaluations on internal
control for financial reporting for a total of three times.
3) The Company ensures that Corporate Auditors will be able to smoothly perform their duties
by posting three dedicated employees to the Board of Corporate Auditors.

584. Basic Policy Concerning the Persons Who Control Decisions on the Company’s
Financial and Business Policy(1) Basic policy
According to the Company’s view, the persons who control decisions on its financial andbusiness policy must properly grasp various matters concerning its business, including theinitiatives to “create appealing products”, to “care about quality and craftsmanship” and to “convey
the sense of joy to customers”, which form the source of the corporate value of the Asahi Group,and other tangible and intangible management resources thereof, potential effects of forwardlooking measures and other items that constitute the corporate value, and must enable to maintainand increase the Asahi Group’s corporate value as well as the common interests of shareholders
continuously and sustainably.
Upon facing a proposal of large-scale share purchases, the Company is not always in aposition to automatically object to the purchases if it is a so-called hostile takeover, which ispursued without approval from the Board of Directors provided that such takeover is intended tocontribute to the increase of the corporate value and the common interests of shareholders of theCompany. Also, the Company recognizes that the final decision as to whether to accept a proposal
for an acquisition of shares in the Company that would lead to a transfer of control of the Company
should be made based on the will of the shareholders as a whole.
It shall be noted, however, that there are not a few cases of large-scale share purchases thatwould not contribute to the increase of the corporate value and the common interests ofshareholders of a company, including ones that would, in light of their purposes, cause obvious
damage to the corporate value and the common interests of shareholders or could effectively coerce
shareholders to sell their shares, ones that the purchaser does not provide information and/or time
reasonably necessary for the target company’s board of directors and shareholders to review andexamine details of the proposed purchase or for the target company’s board of directors to make analternative proposal, and ones where the target company’s board of directors would have to
conduct negotiation with the purchaser so as to seek more favorable terms than those initially
proposed by the purchaser.
The person who intends to conduct a large-scale purchase of shares in the Company must havean understanding of the source of the Asahi Group’s corporate value and have the capability tomaintain and enhance it in the medium and long term; otherwise, the Asahi Group’s corporate
value and the common interests of shareholders would be damaged.
The Company thus believes that it is necessary to protect the Asahi Group’s corporate value,
and in turn, the common interests of shareholders, from such large scale share purchases.
(2) Framework that contributes to realization of the basic policy
1) Special Measures Contributing to Realization of the Basic Policy
In its “Long-Term Vision 2020”, formulated in 2013, the Company sets out its aim: “Striving
to be a corporate group trusted around the world through the Kando of food (deliciousness,happiness and innovation)”. To fulfill this Vision, initiatives in its three-year plan “Medium-Term
Management Plan 2015” were carried out on a group-wide scale, aimed at enhancing corporate
value through the promotion of “Value and Network Management”.
In light of the general overview of the “Medium-Term Management Plan 2015” and changes
in the business environment, the Company, while following its Basic Policy, renewed its “LongTerm Vision 2020” in February of this year as a new “Long-Term Vision” to which a delineationof its future business a decade from now is added. In addition, the Company has amended the“Medium-Term Management Plan” to “Medium-Term Management Policy,” and has shifted fromthe previous action-plan-driven contents to a format focusing on medium-term orientation aimed
at the realization of the Company’s Vision. The contents of the “Long-Term Vision” and the“Medium-Term Management Policy” are as described on pages 44-46.
The Company believes that it will be able to assure the flexibility of its corporate strategy by
setting and carrying out such a Management Policy and will be able to increase its sustainable59corporate value and ultimately secure common interests of its shareholders by setting such a
policy as “Engagement Agenda” (agenda for constructive dialogs) and making dialogs with thestakeholders even more firm.
The Company is striving to further strengthen its corporate governance for the
aforementioned measures.
By introducing a corporate officer system on March 30, 2000, the Company separated the
management decision-making and execution functions with a view to speeding up execution ofbusiness decisions and endeavored to strengthen the supervisory function of the Board of
Directors. In addition, the Company has appointed three Outside Directors and three Outside
Corporate Auditors as independent directors/auditors as defined by the Tokyo Stock Exchange
and reported to the exchange to that effect.
Furthermore, the Company operates a system that facilitates checks by Outside
Directors/Corporate Auditors by establishing the “Nomination Committee” and the“Compensation Committee”, both of which act as an advisory body to the Board of Directors andinclude Outside Directors as members.
In order to further clarify the accountability of the management to shareholders, theCompany shortened the term of office of its Directors from two years to one year at the 83rd
Annual General Meeting of Shareholders held on March 27, 2007.
By transitioning to a pure holding company structure on July 1, 2011, the Company
strengthened its business platforms through the pursuit of specialization and the clarification of
authorities and responsibilities of each business section, as well as promoted the expansion ofdomestic and overseas business networks in order to enhance its corporate value.
2) Efforts to prevent decisions on the Company’s financial and business policy from being
controlled by any person who is inappropriate according to the basic policy
The Company will take appropriate measures against any person who attempts to make alarge-scale purchase to the extent permitted by the Financial Instruments and Exchange Act, theCompanies Act and other related laws and regulations such as requesting provision of necessary
and sufficient information for shareholders to properly determine whether to approve ordisapprove the large-scale purchase, disclosing the opinions, etc. of the Board of Directors of theCompany and endeavoring to secure enough time for shareholders to contemplate the large-scalepurchase.
(3) Judgment of the Company’s Board of Directors regarding the specific measures andreasons therefor
The measures described above in 1) of (2) conform to the basic policy of the Company as
described above (1), are fully compatible with the corporate value and the common interests ofshareholders of the Asahi Group including the Company, and are never implemented for the
purpose of maintaining the status of Directors and Corporate Auditors of the Company.

605. Overview of the Company(1) Shares Outstanding (As of December 31, 2015)
1)

Total number of authorized shares

2)

Total number of issued shares

3)

Total number of shareholders

4)

Major shareholders

972,305,309(common stock)483,585,862(including 25,676,299 treasury shares)
106,712(Decreased by 1,810 from the end of the previous term)

The Master Trust Bank of Japan, Ltd. (Trust Account)
Japan Trustee Services Bank, Ltd. (Trust Account)
Asahi Kasei Corporation
The Dai-ichi Life Insurance Company, Limited
Fukoku Mutual Life Insurance Company
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
JPMorgan Securities Japan Co., Ltd.
STATE STREET BANK WEST CLIENT – TREATY 505234
THE BANK OF NEW YORK MELLON SA/NV 10

Number ofshares held(in hundreds)
292,084
205,792
187,853
169,200
155,000
90,28081,26066,37463,81862,364

Total

1,374,026

Name of shareholder

Percentage ofshares held (%)
6.4
4.5
4.1
3.7
3.4
2.0
1.8
1.4
1.4
1.4
30.0

Notes:
1.
The Company holds treasury shares numbering 256,762 hundred shares. However, the Company is excluded
from the above list of major shareholders.
2.
Shareholding percentages are calculated based on the total number of issued shares less the number of treasury
shares.

5)

Other significant matters related to shares
The Company acquired 4,982,100 shares of common stock of the Company pursuant to theresolution at the meeting of the Board of Directors held on April 30, 2015.

61(2) Status of Stock Acquisition Rights, etc. (as of December 31, 2015)
Stock acquisition rights to shares held by Directors and Corporate Auditors of the Company
Date of issuance resolution
Number of stock acquisition rights
Class and number of shares subject to stockacquisition rights
Fee for exercise of stock acquisition rights
Exercisable period
Conditions for exercise of stock acquisition rights

Fourth issue of stock acquisition rights
March 30, 2006
300
Shares of common stock: 30,000¥1,688 per share
March 30, 2008 to March 29, 2016y The options are exercisable even after the
resignation of Directors or Corporate Auditors,
as the case may be.
y The options may be passed on to heirs.
y Any assignment or transfer of the stockacquisition rights is subject to approval of theBoard of Directors.

Number of stock acquisition rights:
Number of shares subject to stockacquisition rights:
Number of holders:Number of stock acquisition rights:
Number of shares subject to stock
Outside Directors
acquisition rights:
Number of holders:Number of stock acquisition rights:
Number of shares subject to stock
Corporate Auditors
acquisition rights:
Number of holders:
Directors(except Outside
Directors)

Situation concerning theholding of stock acquisitionrights by Directors andCorporate Auditors

62


200
20,000
2–––
100
10,0001

(3) Directors and Corporate Auditors of the Company
1)

Directors and Corporate Auditors(As of December 31, 2015)

Name
Naoki Izumiya

Katsuyuki Kawatsura

Shiro Ikeda

Katsutoshi Takahashi

Position
President andRepresentative Director
CEO
Executive Vice President
andRepresentative Director

Managing Director
Managing Corporate
OfficerManaging Director
Managing Corporate
Officer

Areas of responsibility
and significant concurrent positions
Overall Group Management
Group International Operations
Public Relations Section, Human Resources Section,
Corporate Social Responsibility Section
Group Food BusinessDirector of Asahi Food & Healthcare Co., Ltd.
Director of Wakodo Co., Ltd.
Director of Amano Jitsugyo Co., Ltd.
Director of Asahi Professional Management Co., Ltd.
Group International Operations (Indonesia)
Director of Asahi Holdings (Australia) Pty Ltd
Procurement Section, Production Section, Logistics
Section, Research & Development Section,
Agribusiness Development Section, Intellectual
Property Section, Quality Assurance Section
Group Soft Drinks BusinessYoshihide Okuda

Akiyoshi Koji

Mariko Bando

Naoki Tanaka
Ichiro Ito
Yoshihiro Tonozuka
Akira Muto

Tadashi Ishizaki

Managing Director
Managing Corporate
Officer(CFO)
Director

Outside Director

Director of Asahi Soft Drinks Co., Ltd.
Director of LB Co., Ltd.
Audit Section, General & Legal Affairs
Management Section, Secretary Section, Finance
Section, Information Technology Section
President and Representative Director of
Asahi Professional Management Co., Ltd.
Group Alcoholic Beverages BusinessPresident and Representative Director of
Asahi Breweries, Ltd.
Chancellor of Educational Corporation Showa
Women’s University

President of Showa Women’s University
Director of The Institute of Women’s Culture,
Showa Women’s University
Outside Director of BroadBand Tower, Inc.
Outside Director
President of Center for International Public Policy
Studies
Outside Director
Chairman and Director of Asahi Kasei Corporation
Standing Corporate
Corporate Auditor of Asahi Breweries, Ltd.
AuditorCorporate Auditor of Amano Jitsugyo Co., Ltd.
Standing Corporate
Corporate Auditor of Asahi Soft Drinks Co., Ltd.
AuditorCorporate Auditor of Asahi Food & HealthcareCo., Ltd.
Corporate Auditor of Wakodo Co., Ltd.
Outside Corporate Auditor Professor of Faculty of Management and Culture,
Shoin University
Professor Emeritus, Chuo University

63Katsutoshi Saito

Yumiko Waseda

Outside Corporate Auditor Chairman and Representative Director of
The Dai-ichi Life Insurance Company, Limited
Outside Director of Imperial Hotel, Ltd.
Outside Corporate Auditor of TOKYUCORPORATION
Outside Corporate Auditor Partner and Attorney at Law of Tokyo Roppongi
Law & Patent Offices
Outside Corporate Auditor of Kao Corporation

Notes:
1. Directors Mariko Bando, Naoki Tanaka and Ichiro Ito are Outside Directors as defined in Item 15, Article 2 of
the Companies Act.
2. Corporate Auditors Tadashi Ishizaki, Katsutoshi Saito and Yumiko Waseda are Outside Corporate Auditors as
defined in Item 16, Article 2 of the Companies Act.
3. The Company designated Outside Directors Mariko Bando, Naoki Tanaka and Ichiro Ito and Outside Corporate
Auditors Tadashi Ishizaki, Katsutoshi Saito and Yumiko Waseda as Independent Directors/Auditors as definedby the Tokyo Stock Exchange and reported to the said exchange.
4. Although the Asahi Group has business transactions with the respective groups of Asahi Kasei Corporation, theDai-ichi Life Insurance Company, Limited, Imperial Hotel, Ltd., TOKYU CORPORATION and Kao
Corporation, as the transaction value for each is minimal, less than 1% of consolidated net sales for the Company
and the respective companies, there is no special business relationship that could have impact on the Company’s
management.
5. Corporate Auditor Akira Muto was formerly General Manager of Finance Department of the group company of
the Company and has considerable expertise in finance and accounting.
6. Corporate Auditor Tadashi Ishizaki has carried out research on accounting for many years as a university
professor; he has considerable expertise in finance and accounting.
7. Corporate Auditors Yukio Kakegai and Naoto Nakamura retired upon the expiry of their terms of office at theconclusion of the 91st Annual General Meeting of Shareholders held on March 26, 2015. Also, Akira Muto andYumiko Waseda were newly elected as Corporate Auditors and assumed their offices at the same meeting.
8. In addition to the above, the retirement from significant concurrent positions by Directors or Corporate Auditors
during the year under review are detailed below.

Name
Mariko Bando

Yoshihiro Tonozuka

Significant concurrent positions
Date of retirement
upon retirement
Outside Director
Chairman of the Board of Rural
May 12, 2015
Women Empowerment and Life
Improvement Association
Standing Corporate Corporate Auditor of Asahi Food & March 20, 2015
Auditor
Healthcare Co., Ltd.
Position2)

Policies concerning the setting of remunerations paid to Directors and Corporate
Auditors
It is the basic policy for Directors’ and Corporate Auditors’ remunerations of the Company toensure that its remunerations are conducive to acquiring superior human resources, suitable for themagnitude of their roles and the scope of their responsibilities for each executive position,
motivational for the Company’s corporate value enhancement and sustainable growth; and thattransparency and objectivity will be assured with respect to the remuneration-setting procedures.
Based on the foregoing policy, Directors’ remunerations are set in line with a resolution at a
meeting of the Board of Directors, and Corporate Auditors’ remunerations are set by discussion by
the Corporate Auditors within the total amount of remunerations resolved in advance at a General
Meeting of Shareholders. When remuneration-related resolutions are being made by the Board of
Directors, the Compensation Committee, having Outside Directors making up half of its
membership and Outside Director being appointed as its chairperson, acts as an advisory body to
the Board of Directors, evaluating the content of said resolutions in the interests of greatertransparency and objectivity.
It should be noted that the retirement bonus system and stock option system were both
discontinued in 2007.
64


A

Directors’ remunerations
Remunerations for a Director consist of basic remuneration (monthly and fixed) andbonuses (annual and performance-linked), forming a scheme giving consideration to motivation
for sustained enhancement of corporate performance and value. The level of each item is set
according to his/her job responsibilities and status distinction between internal and outside andby drawing on outside expert organs’ survey data.
His/her basic remuneration is determined on the basis of his/her executive position andmagnitude of his/her role, and an increase or decrease in his/her bonuses is determined bycomparing consolidated operating income for the fiscal year under review with that for theprevious fiscal year.
B Corporate Auditors’ remunerations
Remunerations for a Corporate Auditor consists only of basic remuneration (monthly and
fixed), and the level of such basic remunerations is set subject to a mutual consultation of
Corporate Auditors according to his/her job responsibilities and status distinction between
internal and outside and by drawing on outside expert organs’ survey data.

3)

Remunerations paid to Directors and Corporate Auditors

Basic remuneration
Bonus
Total amount
Numberof
NumberofCategory
Total amount
Total amount(yen)
persons
persons
paid (yen)paid (yen)remunerated
remunerated
Directors
8
251,580,000
898,800,000 350,380,000[of which, Outside Directors][3][31,200,000][3] [14,400,000] [45,600,000]
Corporate Auditors
7
96,180,000––
96,180,000[of which, Outside Corporate[4][32,400,000][–][–] [32,400,000]
Auditors]
Notes:
1. The figures above include Corporate Auditor Yukio Kakegai and Outside Corporate Auditor Naoto Nakamura,
who retired upon the expiry of their terms of office at the conclusion of the 91st Annual General Meeting of
Shareholders held on March 26, 2015.
2. A resolution authorizing payments associated with the termination of the retirement bonus system to be paid at
the time of retirement was passed at the 83rd Annual General Meeting of Shareholders held on March 27, 2007.
As of the end of the fiscal year under review, the anticipated total amount of future payments was as follows:¥19,000,000 to one Director¥3,400,000 to one Outside Corporate Auditor
3. The total amount of Directors’ remunerations is ¥760 million (including ¥50 million for Outside Directors) per
year according to the resolution passed at the 83rd Annual General Meeting of Shareholders held on March 27,
2007.
4. The total amount of Corporate Auditors’ remunerations is ¥120 million (including ¥40 million for Outside
Corporate Auditors) per year according to the resolution passed at the 83rd Annual General Meeting of
Shareholders held on March 27, 2007.

654) Outside Directors and Outside Corporate Auditors
A Major activities of Outside Directors and Outside Corporate Auditors

Category

Name

Number of
Board ofDirectors
meetings
attended

OutsideDirectors

Mariko Bando

12/12

Naoki Tanaka

12/12

Ichiro Ito

11/12

TadashiIshizaki

12/12

Katsutoshi
Saito

12/12

YumikoWaseda9/10

OutsideCorporate
Auditors

Number of
Board ofCorporate
Form of participation
Auditors
meetings
attended–
Mariko Bando participated in discussions asnecessary, primarily from the perspective ofher wealth of experience as an educator anddiversity promotion.
–
Naoki Tanaka participated in discussions asnecessary, primarily from the perspective of
his wealth of experience as an expert ineconomic policy.
–
Ichiro Ito participated in discussions asnecessary, primarily from the perspective of
his wealth of experience as a manager.
7/7
Tadashi Ishizaki participated in discussions
as necessary, primarily from his expert
perspective as a scholar of accounting.
7/7
Katsutoshi Saito participated in discussions
as necessary, primarily from the perspectiveof his wealth of experience as a manager.
5/5
Yumiko Waseda participated in discussions
as necessary, primarily from her expert
perspective as an attorney at law.

Note: As Corporate Auditor Yumiko Waseda was newly elected at the 91st Annual General Meeting of Shareholders
held on March 26, 2015, the above number of Board of Directors meetings and Board of Corporate Auditors
meetings held that she could attend is different from other Directors and Corporate Auditors.

B

Summary of agreements limiting liability
The Company has entered into an agreement with each of its Outside Directors and Outside
Corporate Auditors limiting his/her liability for damages as prescribed in Paragraph 1, Article 423of the Companies Act, to either ¥20,000,000 or the minimum amount stipulated by applicablelaws and regulations, whichever is higher.

66(4) Independent Accounting Auditor
1)

Name of the Independent Accounting Auditor
KPMG AZSA LLC

2)Remunerations paid to the Independent Accounting Auditor for the fiscal year underreview

Category
Remunerations paid for the fiscal year under review
Total of cash and other financial profits payable by the Company and its
subsidiaries to the Independent Accounting Auditor

Amount payable¥136 million¥465 million

Notes:
1. In its agreement with the Independent Accounting Auditor, the Company makes no distinction between the
remunerations that it pays for auditing services governed by the Companies Act and for auditing services
governed by the Financial Instruments and Exchange Act. Consequently, the amount ¥136 million shown above
is a sum of these two amounts.
2. Having performed the necessary verifications on the contents of the Independent Accounting Auditor’s audit
plan, evaluation and analysis of the audits actually conducted during the previous fiscal year, status of executionof accounting audit duties, and reasonableness of the basis for calculation of remuneration, the Board of
Corporate Auditors has consented to the amount of remunerations for the Independent Accounting Auditor.

3)

Nature of non-audit professional services provided by the Independent Accounting
Auditor
The Company also assigns professional duties to the Independent Accounting Auditor that are
not statutory auditing duties as stipulated in Paragraph 1, Article 2 of the Certified Public
Accountants Law. These non-audit services include “guidance and advisory services for conversion
to International Financial Reporting Standards”.

4)Company Policy regarding dismissal of or decision not to reappoint the Independent
Accounting Auditor
If the Independent Accounting Auditor is found to correspond to any of the items prescribed in
Paragraph 1, Article 340 of the Companies Act, the Board of Corporate Auditors shall be entitled todismiss the Independent Accounting Auditor subject to the consent of all Corporate Auditors, inwhich case the Corporate Auditor appointed by the Board of Corporate Auditors reports on the factthat said Independent Accounting Auditor has been dismissed and the reason for dismissal, at thefirst General Meeting of Shareholders held after such dismissal. When it is reasonably recognizedthat the Independent Accounting Auditor is no longer able to execute its duties in an appropriatemanner, the Board of Corporate Auditors shall determine the contents of a proposal for dismissing
or not re-appointing said Independent Accounting Auditor to be submitted to the General Meetingof Shareholders. On the basis of this determination by the Board of Corporate Auditors, the Boardof Directors shall offer to the General Meeting of Shareholders a resolution to dismiss or not toreappoint the Independent Accounting Auditor.









Note: The stated amounts in the Business Report are the figures after truncating fractions less than the
representative unit, and the stated percentages are the figures after rounding off fractions to therepresentative unit.
67

CONSOLIDATED FINANCIAL STATEMENTSCONSOLIDATED BALANCE SHEETSMillion yen

ASSETS
Current assets:
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Non-current assets:
Property, plant and equipment:
Buildings and structures
Machinery, equipment and vehicles
Tools, furniture and fixtures
Land
Leased assets
Construction in progress
Other
Total property, plant and equipment
Intangible assets:
Goodwill
Other
Total intangible assets
Investments and other assets:
Investment securities
Long-term loans receivable
Long-term prepaid expenses
Net defined benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets


68


As of
December 31, 2015

As ofDecember 31, 2014
(Reference)

48,210362,240
91,20041,114
15,04847,546(4,861)65,064
353,704
82,11742,431
13,01253,042(5,529)600,498

603,842

165,364
134,91461,049193,891
17,394
9,339
144

169,283
135,064
56,993202,051
21,294
20,617
109

582,098

605,415

145,104
90,444

195,859
99,930235,549

295,790

422,469
2,458
11,90524,574
8,183
16,388(2,571)

375,044
2,335
12,49019,252
9,448
16,116(3,124)483,408
1,301,056
1,901,554

431,561
1,332,767
1,936,609

CONSOLIDATED BALANCE SHEETSMillion yen

LIABILITIESCurrent liabilities:
Notes and accounts payable - trade
Short-term loans payable
Commercial papers
Current portion of bonds
Lease obligations
Accrued alcohol tax
Accrued consumption taxes
Income taxes payable
Accounts payable - otherAccrued expenses
Deposits received
Provision for bonuses
Other
Total current liabilities
Non-current liabilities:
Bonds payable
Long-term loans payable
Lease obligations
Provision for directors’ retirement benefits
Net defined benefit liability
Deferred tax liabilities
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
NET ASSETS
Shareholders’ equity:
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income:
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

69


As of
December 31, 2015

As ofDecember 31, 2014
(Reference)

126,800
156,239
63,00030,0007,567
110,044
17,85723,46069,521
76,655
18,076
4,917
11,053

130,402
184,879
76,00020,0008,486
110,361
26,61727,39673,097
71,137
18,2554,685
6,054

715,193757,374

118,000
47,69011,590237
23,37754,445441
38,748113,000
40,846
14,810302
26,525
48,611430
38,198294,5311,009,725

282,724
1,040,099

182,531
120,524
524,859(77,377)

182,531
143,339
477,427(58,176)

750,537

745,120

45,799(82)
81,259157

28,850(218)
107,832(492)

127,134
14,157
891,829
1,901,554

135,970
15,419896,510
1,936,609

CONSOLIDATED STATEMENTS OF INCOME
Million yen

For the year ended
December 31, 2015
1,857,418
1,100,519
756,899
621,779
135,119
19,389583
2,112–
14,1672,526

For the year ended
December 31, 2014
(Reference)
1,785,478
1,073,439
712,039583,733
128,305
13,161
453
1,840
1,404
8,025
1,437

Non-operating expenses
Interest expenses
Other
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on step acquisitions
Settlement received
Other

8,562
3,615
4,947
145,946
7,961
833
1,011
5,932
–
184

8,299
3,686
4,612
133,168
34,09916,243611–
16,994250

Extraordinary losses
Loss on sales and retirement of non-current assets
Loss on sales of investment securities
Loss on valuation of investment securities
Impairment loss
Business integration expenses
Other
Income before income taxes and minority interests
Income taxes - current
Income taxes - deferred
Income before minority interests
Minority interests in income (loss)
Net income

41,157
4,903
157
2,619
21,336
8,049
4,090
112,750
42,532(4,920)75,138(1,288)76,427

38,131
4,166
28
23
23,701
5,686
4,525
129,136
52,018
7,934
69,183
65
69,118Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Share of profit of entities accounted for using equity method

Other



70


CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETSFor the year ended December 31, 2015

Million yen
Shareholders’ equity

Balance at beginningof current period

Capital stock

Capital surplus

Retained earnings

Treasury shares

182,531

143,339

477,427(58,176)(22,443)(7,365)

120,895

470,061

Cumulative effects
of changes inaccounting policies
Restated balance

182,531

Total shareholders’equity745,120(29,809)(58,176)

715,311

Changes of items
during period
Dividends of surplus(21,629)(21,629)

Net income

76,42776,427Purchase of treasury
shares
Disposal of treasury
shares(20,031)(20,031)

831

460

(370)

Net changes of
items other thanshareholders’ equity
Total changes of
items during period
Balance at end ofcurrent period

–

(370)

54,798(19,200)

35,226

182,531

120,524

524,859(77,377)

750,537

Accumulated other comprehensive income
Valuationdifference on
available-forsale
securities
Balance at beginningof current period

28,850

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensive income(218)

107,832(492)

135,970

Cumulative effects
of changes inaccounting policies
Restated balance(277)
28,850(218)

107,554

Minority
interests

Total net
assets15,419896,510

(277)
(492)

135,693(30,086)
15,419866,423

Changes of items
during period
Dividends ofsurplus(21,629)

Net income

76,427Purchase of treasury
shares(20,031)

Disposal of treasury
shares460

Net changes of
items other thanshareholders’ equity

16,949136(26,295)

650(8,558)(1,261)(9,820)Total changes of
items during period

16,949136(26,295)

650(8,558)(1,261)

25,406

Balance at end ofcurrent period

45,799(82)

81,259157

127,134

14,157

891,82971
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1.

Basis for Preparation of Consolidated Financial Statements(1) Items in the scope of the consolidation
1) Consolidated subsidiaries

a. Number of consolidated subsidiaries: 118
b. Principal consolidated subsidiaries
Please see Item 1 of the “Business Report” (“Overview of Operations of the Asahi Group,
section (6) ‘Principal Subsidiaries’”), for a summary of the current status of principal
consolidated subsidiaries.
c. Changes in the scope of consolidation
Companies added to the scope of consolidation during the consolidated fiscal year underreview were ENOTECA CO., LTD. and four (4) other companies, and Mountain Goat Beer
Pty Ltd due to the acquisition of their shares; China Foods Investment Corp., due to anincrease in voting rights held by the Company following the acquisition of treasury stock;
LOTTE Asahi Liquor Co., Ltd. due to an increase in voting rights held by the Company
following the additional acquisition of its shares; and Asahi Group Foods, Ltd., Asahi
Calpis Wellness Co., Ltd., Calpis Vietnam Co., Ltd, and Calpis Beverage U.S.A., Inc. dueto their incorporation.
2) Non-consolidated subsidiaries
a. Principal non-consolidated subsidiary
Demball Limitedb. Rationale for exclusion from the scope of consolidation:
The non-consolidated subsidiary is small in terms of total assets, sales, net profit or loss,
and retained earnings (amount corresponding to equity ownership); it has no material
impact as a whole on the consolidated financial statements and is thus excluded from thescope of consolidation.
(2) Items concerning application of the equity method
1) Number of companies subject to application of the equity method: 126
a. Non-consolidated subsidiaries subject to application of the equity method: 2
Asahi Group Engineering Co., Ltd. and The Mill Retail Holdings Limitedb. Affiliates subject to application of the equity method: 124
These include Asahi Business Solutions Corp., Shenzhen Tsingtao Beer Asahi Co., Ltd.,
Asahi & Mercuries Co., Ltd., Tsingtao Brewery Co., Ltd., Tingyi-Asahi Beverages
Holding Co., Ltd. and 114 other affiliated companies, one (1) affiliated company ofMountain H2O Pty Ltd., Shanghai Jiayou Investment Management Co., Ltd., PT Indofood
Asahi Sukses Beverage, Asahi Beer Communications, Ltd. and Nippon Shoni-iji
Shuppansha Co., Ltd.
Seven (7) affiliates of Tingyi-Asahi Beverages Holding Co., Ltd. became subject toapplication of the equity method during the consolidated fiscal year under review due totheir incorporation. China Foods Investment Corp. and LOTTE Asahi Liquor Co., Ltd.
were excluded from the scope of application of the equity method due to the inclusion of
the both companies in the scope of consolidation.

72


2)

Principal non-consolidated subsidiaries and affiliates not subject to application of theequity method

a. Principal non-consolidated subsidiary:

Demball Limitedb. Principal affiliate:

Asahi Business Produce Co., Ltd.

c. Rationale for not applying the equity method to the non-consolidated subsidiaries andaffiliates:
The companies not subject to application of the equity method have an extremely slight
impact on net profit or loss and retained earnings (amount corresponding to the Company’s
equity ownership); they have no material impact as a whole on the consolidated financial
statements and thus the equity method was not applied.
(3) Accounting period of the consolidated subsidiaries
Among the consolidated subsidiaries, the closing date of Asahi Beer U.S.A., Inc., and two (2)companies of the Etika group is September 30, that of TERROIR CO., LTD. and Asahi Loi
Hein Company Limited is March 31 and that of Nadaman Hong Kong Company Limited is
January 31. Because these closing dates are different from that of the Company, a provisional
fiscal year ending at December 31 was used for these companies for consolidation purposes.
All other consolidated subsidiaries have the same closing date as the Company.
(4) Significant accounting policies
1) Basis and methods of valuation for significant assets
a. Valuation basis and method for securities
Available-for-sale securities:
Securities with market value
Carried at the average market value for the month immediately preceding theconsolidated balance sheet date (related valuation differences are directly charged or
credited to net assets, and the cost of securities sold is computed by the movingaverage method).
Securities without market value
Stated at cost based on the moving-average method.
b. Valuation basis and method for derivatives
Market price method
c. Valuation basis and method for inventories
Merchandise and finished goods
Stated at cost determined mainly by the weighted-average method (write-downs to net
selling value regarded as decreased profitability).
Raw materials and supplies
Stated at cost determined mainly by the moving-average method (write-downs to net
selling value regarded as decreased profitability).
2) Depreciation methods for major assets
Property, plant and equipment (excluding leased assets):
Property, plant and equipment are mainly depreciated using the straight-line method.
The estimated useful lives of the assets are based mainly on the same standards as thosespecified in the Corporation Tax Act.
73


Intangible assets (excluding leased assets):
Intangible assets are amortized using the straight-line method.
The estimated useful lives of the assets are based mainly on the same standards as thosespecified in the Corporation Tax Act.
Software for internal use is amortized by the straight-line method over a useful life of five(5) years. Trademark right is mainly amortized over twenty (20) years using the straightline method.
Leased assets:
Finance leases that do not transfer ownership rights are amortized to a residual value ofzero using the straight-line method, with the lease period as the estimated useful life.
3) Accounting criteria for major allowances
Allowance for doubtful accounts:
The allowance for doubtful accounts consists of the individually estimated uncollectible
amounts with respect to certain identified doubtful receivables and the amounts calculatedusing the rate of actual collection losses with respect to the other receivables.
Provision for bonuses:
A provision for bonuses is provided at the estimated amount applicable to the consolidated
fiscal year under review.
Provision for directors’ retirement benefits:Some of the consolidated subsidiaries calculate the required amount as of the end of theconsolidated fiscal year under review, based on internal regulations, in preparation for
payment of retirement benefits to Directors and Corporate Auditors.
4) Accounting method concerning retirement benefits
a. Method of attributing projected retirement benefits to periods of service
In calculating retirement obligations, the benefit formula basis is mainly applied for
attribution of projected benefits to the periods of service until the end of the fiscal year
under review.
b. Method of amortization of actuarial gain or loss and prior service costs
Actuarial gain or loss is amortized using the straight-line method over the determined years(mainly 10 years) within the average remaining years of service at the time of occurrence,
beginning from the fiscal year following the year of occurrence. Prior service costs areamortized using the straight-line method over the determined years (mainly 10 years)
within the average remaining years of service at the time of occurrence.
Unrecognized actuarial gains and losses and unrecognized prior service costs arerecognized in remeasurements of defined benefit plans, after adjusting for tax effects,
under accumulated other comprehensive income of net assets.
5) Significant hedge accounting method
a. Hedge accounting method
The Company defers gains or losses on its hedges.
For foreign exchange contracts, the Company allocates differences in the values of hedging
instruments when such hedges meet all requirements for such allocations. For interest rate
swaps, the Company applies exceptional treatment when the swap in question meets theconditions for application of such exceptional treatment.

74b. Hedging instruments and hedged items
Hedging instruments:

Foreign exchange contracts, interest rate swaps andcommodity swaps

Hedged items:

Interest on borrowings, transactions in foreign currencies,
and purchases of raw materialsc. Hedging policy
Derivative transactions are used to avoid risks associated with fluctuations in foreignexchange markets, interest rates and raw materials costs and to reduce the costs offinancing. It is the Company’s policy not to engage in speculative transactions that deviate
from real demand or in highly leveraged transactions.
d. Method of evaluating the effectiveness of hedging
The Company assesses the effectiveness of its hedges by comparing changes in the market
values of the hedged items and of the hedging instruments over the entire period of thehedge.
When the Company allocates differences in the values of hedging instruments or when it
accounts for the value of swaps under exceptional treatment, these determinations allow it
to forgo evaluation of the effectiveness of hedges in these cases.
6) Method and period of amortization of goodwill
Goodwill is amortized by the straight-line method over a five (5) to twenty (20) years period.
However, immaterial goodwill is entirely amortized for the fiscal year of occurrence.
7) Other significant items associated with the preparation of consolidated financial
statements
Treatment of consumption taxes
Consumption taxes are mainly excluded from the statements of income, except in the case ofnon-deductible consumption taxes related to non-current assets that are charged when incurred.

75


2.

Notes on Changes in Accounting Policies

Changes in Accounting Policies

1) Application of the Accounting Standard for Retirement Benefits
Regarding the “Accounting Standard for Retirement Benefits” (ASBJ Statement No. 26,
May 17, 2012) and “Guidance on Accounting Standard for Retirement Benefits” (ASBJ
Guidance No. 25, March 26, 2015), effective from the consolidated fiscal year under review,
the Company has applied the provisions of the main clauses of Paragraph 35 of the
Accounting Standard for Retirement Benefits and Paragraph 67 of Guidance on AccountingStandard for Retirement Benefits, reviewed its calculation method for retirement benefit
obligations and current service costs, and changed its method of attributing expected
benefits to periods from the straight-line basis to the benefit formula basis. In addition, theCompany has changed the method for determining the discount rate from one that uses a
discount rate based on the period of years approximate to the estimated average remaining
working lives of employees to one that uses a single weighted average discount rate
reflecting the estimated timing and amount of benefit payments.
Application of the Accounting Standard for Retirement Benefits and Guidance on
Accounting Standard for Retirement Benefits is in line with the transitional measuresprovided in Paragraph 37 of the Accounting Standard for Retirement Benefits, and the effectof the revision to the calculation method for retirement benefit obligations and current
service costs has been added to or deducted from retained earnings as of the beginning of
the consolidated fiscal year under review. As a result, as of the beginning of the consolidated
fiscal year under review, net defined benefit asset increased by ¥159 million, net defined
benefit liability decreased by ¥2,653 million and retained earnings increased by ¥1,835
million. The effects of these changes on operating income, ordinary income and income
before income taxes and minority interests for the consolidated fiscal year under review,
however, were immaterial.

2) Application of Accounting Standard for Business Combinations, etc.
Effective from the beginning of the fiscal year starting on or after April 1, 2014, theCompany was able to adopt the “Accounting Standard for Business Combinations” (ASBJ
Statement No. 21, September 13, 2013), the “Accounting Standard for Consolidated
Financial Statements” (ASBJ Statement No. 22, September 13, 2013) and the “AccountingStandard for Business Divestitures” (ASBJ Statement No. 7, September 13, 2013), and has
accordingly adopted these accounting standards effective from the consolidated fiscal year
under review (except for the provisions of Paragraph 39 of the Accounting Standard forConsolidated Financial Statements). Under the adopted accounting standards, the difference
arising from the change in the Company’s ownership interests in subsidiaries is accounted
for as capital surplus as long as the Company retains control over its subsidiaries, andacquisition-related costs are recognized as expenses in the consolidated fiscal year in which
the costs are incurred. Furthermore, for business combinations carried out on or after the
beginning of the consolidated fiscal year under review, the adjustments of the provisional
acquisition cost allocation for a business combination due to the completed measurement are
retrospectively reflected as if the accounting for the business combination had been
completed at the acquisition date.
For the application of the Accounting Standard Business Combinations, etc., in accordancewith the transitional treatment prescribed in Paragraph 58-2 (3) of the Accounting Standard
for Business Combinations, in Paragraph 44-5 (3) of the Accounting Standard forConsolidated Financial Statements and in Paragraph 57-4 (3) of the Accounting Standard forBusiness Divestitures, the cumulative effects of the retrospective application of the changes
in accounting policies were added to or deducted from capital surplus and retained earnings76as of the beginning of the consolidated fiscal year under review.
As a result, at the beginning of the consolidated fiscal year under review, goodwill, capitalsurplus, retained earnings and foreign currency translation adjustment decreased by ¥31,922
million, ¥22,443 million, ¥9,201 million and ¥277 million, respectively. Meanwhile, for the
consolidated fiscal year under review, operating income increased by ¥1,801 million, andordinary income as well as income before income taxes and minority interests bothincreased by ¥2,225 million. In addition, resulting from the cumulative effect of theaforementioned retrospective application on net assets, capital surplus, retained earnings andforeign currency translation adjustment of Consolidated Statements of Changes in Net
Assets decreased by ¥22,443 million, ¥9,201 million, and ¥277 million, respectively, as of
the beginning of the consolidated fiscal year under review.

3.

Notes to the Consolidated Balance Sheets(1) Pledged assets and secured liabilities

The following assets have been provided as collateral for short-term loans payable of ¥404
million and long-term loans payable of ¥331 million:
Machinery, equipment and vehicles:¥1,119 million(2) Accumulated depreciation of property, plant and equipment:(3) Contingent liabilities
Guarantees:¥800,450 million¥3,431 million(4) Matured notes at term-end

The balance sheet date for the term fell on a bank holiday, and trade notes with maturity on
the balance sheet date were cleared on the clearing houses the next business day. Current
assets and current liabilities thus respectively include notes receivable and notes payable withmaturity on the balance sheet date as follows:4.

Notes receivable:¥209 million

Notes payable:¥97 million

Notes to the Consolidated Statements of Changes in Net Assets(1) Total number of the issued shares as of the end of the consolidated fiscal year underreview

Common stock

483,585,862 shares(2) Dividends of surplus distributed during the consolidated fiscal year under review
1) It was resolved at the 91st Annual General Meeting of Shareholders of March 26, 2015
as follows:

Item related to dividends on common stock
Total amount of dividends:¥10,639 million

Dividend per share:¥23.00Record date:

December 31, 2014

Effective date:

March 27, 2015

77


2)

It was resolved at the Board of Directors Meeting of August 5, 2015, as follows:

Item related to interim dividends on common stock
Total amount of interim dividends:¥10,989 million

Interim dividend per share:¥24.00Record date:June 30, 2015

Effective date:

September 1, 2015

(3) Dividends of surplus to be distributed after the final day of the consolidated fiscal year
under review
The following item has been placed on the agenda for approval at the 92nd Annual General
Meeting of Shareholders scheduled for March 24, 2016.

Item related to dividends on common stock
Source of dividends:

Retained earnings

Total amount of dividends:¥11,905 million

Dividend per share:¥26.00Record date:

December 31, 2015

Effective date:

March 25, 2016(4) Number of shares subject to stock acquisition rights upon exercise thereof at the end of
the consolidated fiscal year under review
The Fourth Issue of stock acquisition rights (issued March 30, 2006)

Number of stock acquisition rights:

2,881

Class and number of shares subject to the stock acquisition rights:
288,100 shares of common stock
Amount to be paid in per share upon exercise of the stock acquisition rights:
Exercise period:

March 30, 2008 to March 29, 201678


¥1,688(5) Treasury shares
Type of stock
Common stock

Number of shares
Increase during Decrease during Number of shares
as of Jan. 1, 2015
this fiscal year
this fiscal year as of Dec. 31, 2015
20,984,062
4,990,397
298,160
25,676,299(Reasons for change)
The increase in the number of shares was the result of the following:
Increase resulting from purchases of Less-than-One-Unit Shares from shareholders uponrequest:8,297 shares

Increase resulting from acquisition of treasury shares

4,982,100 shares

The decrease in the number of shares was the result of the following:
Decrease resulting from sales of Less-than-One-Unit Shares to shareholders upon request:
160 shares
Decrease resulting from exercise of stock options:

5.

298,000 shares

Notes on Financial Instruments(1) Financial instruments
1) Policy on handling of financial instruments

The Company and its principal consolidated subsidiaries procure necessary funds via loans
from financial institutions and by issuing commercial papers and bonds while taking into
account the changing business environment. In doing so, the Company and its principal
consolidated subsidiaries consider the balance between direct or indirect financing as well as
short and long-term debt based on fund procurement costs and risk diversification. Looking
to use funds efficiently, the Group introduced a cash management system among theCompany and its principal consolidated subsidiaries to reduce consolidated interest-bearing
debt. If surplus funds are generated temporarily, as a result, the Company invests it only insafe financial instruments.
The Company’s policy is to use derivatives trading only to hedge risks to be discussed later,and not for speculation.
2) Details of financial instruments and risks
Trade receivables of the Group companies, including notes and accounts receivable - tradeand long-term loans receivable, are exposed to client credit risks. Additionally, foreign
currency-based trade receivables are exposed to currency fluctuation risk as well.
Investment securities of the Company and the Group companies include stocks and bonds
regarding business partners and are thus exposed to risks of the stock or bond issuer (i.e., thebusiness partner) as well as market price fluctuation risk. Of these, foreign currency-based
investment securities are exposed to currency fluctuation risk as well.
Trade payables of the Group companies, including notes and accounts payable - trade andaccounts payable - other, generally have a due date of one (1) year or less. Foreign currencybased trade payables are exposed to currency fluctuation risk as well.
Commercial papers, borrowings, and bonds are exposed to liquidity risk, the risk of being
unable to make payment on the due date due to deterioration in the funds procurement
environment. Some of the Company’s borrowings are based on variable interest rates, forwhich the Company hedges risks using interest rate swaps.
Foreign currency-based borrowings are exposed to currency fluctuation risk as well.
79Derivatives trades include foreign exchange contracts to hedge against foreign exchange
fluctuation risks related to foreign-currency based receivables and payables, interest rate
swap transactions to hedge against interest rate risks on borrowings, and commodity swap
transactions to hedge against price fluctuation risks when consolidated subsidiaries procure
raw materials.
For hedging instruments, hedged items, hedging policy, and method of evaluating theeffectiveness of the hedging for the hedge accounting, please see “Significant hedge
accounting method” within “Significant accounting policies” discussed earlier.
3) Risk management system relating to financial instruments
a. Credit risk management (managing risks related to business partners not fulfilling
contract obligations)
In accordance with accounting rules and their detailed regulations, each business section orsales management section of the Group companies regularly monitors trade receivables
and long-term loans to major business partners. The above sections also routinely checkthe management status of deadlines and balances for each business partner. In
collaboration with each of the sales sections, the Group companies monitor nonperforming assets and their collection status.
When executing derivatives transactions, the Company as a rule limits its transactions tofinancial institutions with high credit ratings to minimize credit risk.
b. Managing market risks (foreign exchange and interest rate fluctuation risks)
Looking to reduce foreign exchange fluctuation risks on future foreign currency-based
cash flows ascertained by each currency, the Company and its principal consolidated
subsidiaries mainly use foreign exchange contracts. The Company and its principal
consolidated subsidiaries also engage in interest rate swap transactions to avoid interest
rate fluctuation risks relating to borrowings, and in commodities swap transactions to avert
risks of fluctuations in raw materials prices.
For investment securities, each of the Group companies regularly monitors their market
values and financial status of the issuers (the Group company’s business partners) andreviews the Group company’s holdings on a consistent basis based on its relationship withbusiness partners.
The Company’s Finance Section engages in derivatives transactions in accordance with thederivatives transaction management rules which stipulate the transaction policy and trading
authority and reports the transactions to the executives in charge of finance pursuant to theregulation of authority. Consolidated subsidiaries also manage their trading according to
the Company’s rules.
c. Managing liquidity risk related to funds procurement (risk of being unable to makepayment on the due date)Since the Company and its principal consolidated subsidiaries have introduced the cash
management system, the Company manages liquidity risks of those companies
participating in this system.
Based on reports from each section and each company, the Company’s Finance Section
manages liquidity risk by creating and updating its cash management plan as necessary andby engaging in efficient fund procurement while reducing short-term liquidity.
(2) Market value of financial instruments
The amount recorded on the consolidated balance sheets at the end of the consolidated fiscal
year under review, the market value and the difference between the two are shown below foreach financial instrument.
Financial instruments with respect to which the Company considers deriving the market value
to be extremely difficult are not included in the table (see Note 2).
Million yen

80(1) Cash and deposits(2) Notes and accounts receivable trade
Allowance for doubtful accounts (*1)
Notes and accounts receivable trade (net)(3) Investment securities
A. Shares of subsidiaries andassociates
B. Available-for-sale securities(4) Long-term loans receivable (*2)
Allowance for doubtful accounts (*3)
Long-term loans receivable (net)Total assets(1) Notes and accounts payable - trade(2) Short-term loans payable(3) Commercial papers(4) Accounts payable - other(5) Deposits received(6) Bonds payable (*4)(7) Long-term loans payable (*5)(8) Lease obligations (*6)
Total liabilities
Derivatives (*7)

Amounts recordedon the consolidatedbalance sheets
48,210Market value

Difference

48,210–360,297

360,297–

98,886

142,530

43,644

147,7946,146(2,442)
3,704
658,891
126,800
148,750
63,00069,521
18,076
148,000
55,17919,157648,486(37)

147,794–

3,562
702,394
126,800
148,750
63,00069,521
18,076
148,927
56,164
19,531
650,771(37)(141)
43,502
–
–
–
–
–
927
984
373
2,285
–

362,240(1,943)(*1) Allowances for doubtful accounts recorded under notes and accounts receivable - trade are excluded.
(*2) Long-term loans receivable within one (1) year are included.
(*3) Allowances for doubtful accounts recorded individually under long-term loans receivable are excluded.
(*4) Current portion of bonds are included.
(*5) Long-term loans payable due within one (1) year are included.
(*6) Lease obligations (current liabilities) are included.
(*7) The net amount of receivables and payables accrued from derivatives transactions are indicated.
Note 1. Calculation methods for deriving market values of financial instruments, items relating to securities andderivatives transactions
Assets(1) Cash and deposits, (2) Notes and accounts receivable - tradeBook value is used because these items are settled in a short time, making their market value about equivalent totheir book value.
(3) Investment securities
Market value at financial instruments exchange is used for stock.
(4) Long-term loans receivable
The market value of long-term loans receivable is calculated by discounting the expected value of principal andinterest receivable by the interest rate expected if a similar new loan were to be issued, thereby deriving thepresent value.

81Liabilities(1) Notes and accounts payable - trade, (2) Short-term loans payable, (3) Commercial papers, (4) Accounts
payable - other, and (5) Deposits received
Book value is used because these items are settled in a short time, making their market value about equivalent totheir book value.
(6) Bonds payable
The market value of the bonds the Company issues, that have market value, is the market price thereof.
(7) Long-term loans payable
The market value of long-term loans payable is calculated by taking the total amount of principal and interest anddiscounting it by the interest rate expected if a new borrowing were to be taken out. Long-term loans payable withvariable interest rates are subject to exceptional treatment for interest rate swaps. These are calculated bydiscounting the total amount of principal and interest involved in the interest rate swap concerned by the interest
rate deemed appropriate if a similar borrowing were to be taken out, thereby deriving the present value.
(8) Lease obligations
The market value of lease obligations is calculated by taking the present value of the obligation concerned –discounting the total amount of principal and interest by the interest rate expected if a similar, new lease obligation
were to be incurred.
Derivatives transactions
The Company considers the price indicated by the financial institution, etc. with which it does business as themarket value. However, since derivatives transactions subject to exceptional treatment for interest rate swaps areprocessed as part of long-term loans payable subject to hedging, the market value of these derivative transactions
are recorded as part of the market value of the long-term loans payable concerned.
Note 2. Of available-for-sale securities and shares of subsidiaries and associates, those that are unlisted (¥175,789
million recorded on the consolidated balance sheets) do not have a market price and estimating future cash
flow is not possible. The Company thus considers deriving their market value as being extremely difficultand does not include these securities under“(3) Investment securities”.

6.

Notes to per share information(1) Net assets per share:(2) Earnings per share (Net income per share):7.

¥ 1,916.69¥166.25

Significant subsequent events

Transactions under common control
The Company passed resolutions at a meeting of Board of Directors held on June 3, 2015 toreorganize its domestic soft drinks and food businesses, and executed the reorganization
effective as of January 1, 2016.
(1) Purpose of the business reorganization
The business reorganization was implemented as part of the effort to strengthen domestic
businesses, and resulted in a structure that increases the speed of decision-making, more rapidly
responds to changes in the business environment and maximizes synergies within businesses bymore clearly defining areas of responsibility.
(2) Summary of the planned business reorganization
1) Reorganization of domestic soft drinks businessy Name of the company involved in business combination
Calpis Co., Ltd.
y Name and description of businesses involved and legal form of business combination
Calpis Foods Service Co., Ltd., a wholly owned subsidiary of Calpis Co., Ltd. that engages inthe sale of dairy products, succeeded the domestic soft drink manufacturing business anddairy products business, including milk purchasing, of Calpis Co., Ltd. in an absorption-type
split.
Asahi Calpis Wellness Co., Ltd., a wholly owned subsidiary of the Company, succeeded thefunctional foods business (mail-order business, functional raw material) and feedstuffs
business of Calpis Co., Ltd. in an absorption-type split.
82
After the business successions above, Calpis Co., Ltd. was absorbed in a merger with Asahi
Soft Drinks Co., Ltd. as the surviving company.
Calpis Foods Service Co., Ltd. changed its name to Calpis Co., Ltd.
y Name of the company after the business combination
Asahi Soft Drinks Co., Ltd.
Asahi Calpis Wellness Co., Ltd.
Calpis Co., Ltd. (former Calpis Foods Service Co., Ltd.)y Other items regarding outline of transaction
The Company made the transaction to enhance its business competitiveness by integrating thestrengths of each of the companies involved such as brands, product lines, technologies, sales
networks and human resources aiming to realize to be a growth company in domestic softdrinks industry with high-quality and customer-oriented product lines.
2) Reorganization of food business in Japany Name and description of businesses involved and legal form of business combination
Asahi Group Foods, Ltd., a wholly owned subsidiary of the Company, succeeded all thebusiness excluding the operations relating to the manufacturing and the control of the
products (including the purchase operation of merchandise) of Asahi Food and Healthcare Co.,
Ltd., Wakodo Co., Ltd. and Amano Jitugyo Co., Ltd. in an absorption-type split.
y Name of the company after the business combination
Asahi Group Foods, Ltd.
y Other items regarding outline of transaction
The reorganization was implemented with the goals of creating a management structure that
increases the speed of decision-making and more rapidly responds to change by more clearly
defining areas of business, as well as the goal of maximizing synergies within businesses.
(3) Outline of accounting procedures applied
The transaction was accounted for as a transaction under common control in accordance withthe “Accounting Standard for Business Combinations” (ASBJ Statement No. 21, September 13,2013) and the “Guidance on Accounting Standard for Business Combinations and AccountingStandard for Business Divestitures” (ASBJ Guidance No. 10, September 13, 2013).
8.

Other notes

The stated amounts are the figures after truncating fractions less than the representative unit.

83Reference: CONSOLIDATED STATEMENTS OF CASH FLOWS (Summary)Million yen

Cash flows from operating activities:
Income before income taxes and minority interests
Depreciation
Amortization of goodwill
Increase (decrease) in net defined benefit asset andliability
Increase (decrease) in allowance for doubtful
accounts
Loss (gain) on step acquisitions
Settlement received
Decrease (increase) in notes and accounts receivable- tradeDecrease (increase) in inventories
Increase (decrease) in notes and accounts payable trade
Increase (decrease) in accrued alcohol tax payable
Other
SubtotalInterest and dividend income received
Interest expenses paid
Settlement package received
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Purchase of non-current assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of subsidiaries stocks and others resulting
in change in scope of consolidation
Payments for transfer of business
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Increase (decrease) in financial liabilities
Purchase of treasury shares
Cash dividends paid
Other
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of period
Increase (decrease) in cash and cash equivalents
resulting from change of scope of consolidation
Cash and cash equivalents at end of period84For the year ended
December 31, 2015

For the year ended
December 31, 2014

112,750
60,682
10,564

129,136
59,05014,247(5,308)(3,908)(1,148)(29)(5,932)––(16,994)(12,775)(26,223)(4,721)(838)(3,030)

5,748

(173)
25,321
176,227
8,798(3,644)–(68,616)
112,765(80)
26,739186,846
8,329(3,676)
20,306(65,022)
146,783(51,508)(3,822)2,279(64,036)(18,147)
3,405(21,257)(28,563)–(1,275)(75,583)(2,408)17,567(92,183)(21,612)(20,031)(21,629)(9,770)(73,044)(4,558)(40,421)
62,23541,852(50,378)(20,353)(6,962)(35,842)2,361
21,118
41,116

21,476–43,29062,235

NON-CONSOLIDATED FINANCIAL STATEMENTS
NON-CONSOLIDATED BALANCE SHEETSMillion yen

As ofDecember 31, 2015

As ofDecember 31, 2014
(Reference)

22,840292,996
793
242
4,266
7,507
(1,947)

21,744319,116
790
366
9,903
6,698
(1,478)

Total current assets
Non-current assets:
Property, plant and equipment:
Buildings
Structures
Machinery and equipment
VehiclesTools, furniture and fixtures
Land
Leased assets
Construction in progress

326,700

357,140

13,408
279
240
0
816
15,037489
744

13,575
293
254
1
605
15,037471
390

Total property, plant and equipment
Intangible assets:
Right of using facilities
Trademark right
SoftwareLeased assets
Other

31,01730,62940
12,82812,184289
940
13,788
11,501355
025,352

25,68653,577464,397

48,904
460,172

6,226

6,226

730

1,290

6,858
1,477
(215)

9,286
1,229
(202)

533,052
589,423
916,123

526,907583,223
940,364

ASSETS
Current assets:
Cash and deposits
Short-term loans receivable
Prepaid expenses
Deferred tax assets
Income taxes receivable
Other
Allowance for doubtful accounts

Total intangible assets
Investments and other assets:
Investment securities
Shares of subsidiaries and associates
Investments in capital of subsidiaries andassociates
Long-term loans receivable from subsidiaries andassociates
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
85NON-CONSOLIDATED BALANCE SHEETSMillion yen

LIABILITIESCurrent liabilities:
Short-term loans payable
Commercial papers
Current portion of bonds
Lease obligations
Accounts payable - otherAccrued expenses
Deposits received
Provision for bonuses
Provision for directors’ bonuses
Other
Total current liabilities
Non-current liabilities:
Bonds payable
Long-term loans payable
Lease obligations
Other
Total non-current liabilities
Total liabilities
NET ASSETS
Shareholders’ equity:
Capital stock
Capital surplus
Legal capital surplus
Other capital surplus
Retained earnings
Other retained earnings
General reserve
Retained earnings brought forward
Treasury shares
Total shareholders’ equity
Valuation and translation adjustments:
Valuation difference on available-for-salesecurities
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets


86


As of
December 31, 2015

As ofDecember 31, 2014
(Reference)

129,800
63,00030,000
283
528
3,407
20,806158
98
367

157,200
76,00020,000
280
556
3,603
25,842
131
89
433

248,451

284,138

118,000
30,200547
1,415

113,000
24,200594
29

150,163
398,615

137,824
421,962

182,531
151,985
130,292
21,693247,945247,945
195,000
52,945(77,377)
505,085

182,531
152,356
130,292
22,064232,953
232,953
195,000
37,953(58,176)
509,665

12,422

8,737

12,422
517,508
916,123

8,737
518,402940,364

NON-CONSOLIDATED STATEMENTS OF INCOME
Million yen

For the year ended
December 31, 2015
Operating revenue
Operating income of the Group
Rent income of real estate
Dividends from subsidiaries and associates

70,40929,384
1,589
39,435For the year ended
December 31, 2014
(Reference)
87,51928,502
1,581
57,435

Operating expenses
Operating income
Non-operating income
Interest and dividend income
Foreign exchange gains
Other

29,51940,889
1,976
1,937
–
38

25,746
61,772
2,311
2,149
120
42

Non-operating expenses
Interest expenses
Provision of allowance for doubtful accounts
Other
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities

2,976
1,346
481
1,148
39,889
37
0
37

2,474
1,474
87
912
61,609
61
0
61

311
310

46,736455–

44,994–039,616
1,521
1,473
36,621765
520
14,9342,003(152)
13,084Extraordinary losses
Loss on sales and retirement of non-current assets
Loss on valuation of shares of subsidiaries andassociates
Loss on write-off of loans receivable from affiliates
Other
Income before income taxes
Income taxes - current
Income taxes - deferred
Net income87NON-CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETSFor the year ended December 31, 2015

Million yen
Shareholders’ equity
Capital surplus

Retained earnings
Other retained earnings
Generalreserve

Retainedearnings
brought
forwardTotal
retainedearnings

195,000

37,953232,953

Dividends ofsurplus(21,629)(21,629)

Net income

36,621

36,621

Capital stock Legal capital Other capitalsurplussurplus

Balance at beginningof current period

182,531130,292

22,064

Total capitalsurpluses

152,356

Changes of items
during period

Purchase of treasury
shares
Disposal of treasury
shares

(370)

(370)

Net changes of
items other thanshareholders’ equity
Total changes of
items during period
Balance at end ofcurrent period

–

–

(370)

(370)

–

14,992

14,992

182,531130,292

21,693

151,985

195,000

52,945247,945

Shareholders’ equity
Treasury shares
Balance at beginningof current period(58,176)

Valuation and translation adjustments

Total shareholders’equity509,665

Valuationdifference on
available-for-salesecurities
8,737

Total valuation andtranslation
adjustments
8,737

Total net assets

518,402

Changes of items
during period
Dividends ofsurplus(21,629)(21,629)

Net income

36,621

36,621

Purchase of treasury
shares(20,031)(20,031)(20,031)

Disposal of treasury
shares

831

460

460

Net changes of
items other thanshareholders’ equity

3,685

3,685

3,685

Total changes of
items during period(19,200)(4,579)

3,685

3,685

(894)

Balance at end ofcurrent period(77,377)

505,085

12,422

12,422

517,50888
NOTES TO THE NON-CONSOLIDATED FINANCIAL STATEMENTS
1.

Notes to Significant Accounting Policies(1) Valuation basis and method for securities
Shares in subsidiaries and affiliates:
Stated at cost based on the moving-average method.
Available-for-sale securities
Securities with market value:
Carried at the average market value for the month immediately preceding the balance sheet
date (related valuation differences are directly charged or credited to net assets, and thecost of securities sold is computed by the moving-average method).
Securities without market value:
Stated at cost based on the moving-average method.
(2) Valuation basis and method for derivatives
Market price method(3) Valuation basis and method for inventories
Supplies:
Stated at cost based on the moving-average method (write-downs to net selling value
regarded as decreased profitability).
(4) Depreciation methods for non-current assets
Property, plant and equipment (excluding leased assets):
Property, plant and equipment are depreciated using the straight-line method.
The estimated useful lives of the assets are based on the same standards as those specified in
the Corporation Tax Act.
Intangible assets (excluding leased assets):
Intangible assets are amortized using the straight-line method.
The estimated useful lives of the assets are based on the same standards as those specified in
the Corporation Tax Act.
Software for internal use is amortized by the straight-line method over a useful life of five(5) years. Trademark right is mainly amortized over twenty (20) years using the straight-line
method.
Leased assets:
Finance leases that do not transfer ownership rights are amortized to a residual value of zerousing the straight-line method, with the lease period as the estimated useful life.
(5) Accounting criteria for allowances
Allowance for doubtful accounts:
The allowance for doubtful accounts consists of the individually estimated uncollectible
amounts with respect to certain identified doubtful receivables and the amounts calculatedusing the rate of actual collection losses with respect to the other receivables.
Provision for bonuses:
A provision for bonuses is provided at the estimated amount applicable to the fiscal year
under review.
Provision for directors’ bonuses:
A provision for directors’ bonuses is provided at the estimated amount applicable to thefiscal year under review.

89(6) Hedging accounting method
1) Hedging accounting method
The Company defers gains or losses on its hedges.
For foreign exchange contracts, the Company allocates differences in the values of hedging
instruments when such hedges meet all requirements for such allocations. For interest rate swaps,
the Company applies exceptional treatment when the swap in question meets the conditions forapplication of such exceptional treatment.
2) Hedging instruments and hedged items

Hedging instruments:

Foreign exchange contracts and interest rate swaps

Hedged items:

Loans receivable in foreign currencies and interest on
borrowings

3)

Hedging policy

Derivative transactions are used to avoid risks associated with fluctuations in foreign exchange
markets and in interest rates and to reduce the costs of financing. It is the Company’s policy not
to engage in speculative transactions that deviate from real demand or in highly leveragedtransactions.
4) Method of evaluating the effectiveness of hedging
The Company assesses the effectiveness of its hedges by comparing changes in the market
values of the hedging instruments and of the hedged items over the entire period of the hedge.
When the Company allocates differences in the values of hedging instruments or when it
accounts for the value of swaps under exceptional treatment, these determinations allow it toforgo evaluation of the effectiveness of hedges in these cases.
(7) Other significant items associated with the preparation of non-consolidated financial
statements

Treatment of consumption taxes
Consumption taxes are excluded from the statements of income, except in the case of nondeductible consumption taxes related to non-current assets that are charged when incurred.
2.

Notes to the Non-Consolidated Balance Sheets(1) Accumulated depreciation on property, plant and equipment(2) Contingent liabilities
1) Guarantees, etc., against bank borrowings, etc.
Guarantees:2)¥30,303 million¥31,925 million

Guarantees against derivatives

Guarantees:
Contract amount, etc.:¥3,692 million

Unrealized gains (losses):¥(443) million(3) Monetary claims and obligations with affiliates (excluding those classified separately in
the Balance Sheets)
Short-term monetary claims on affiliates:¥300,350 million

Short-term monetary obligations to affiliates:¥20,645 million

90


3.

Notes to the Non-Consolidated Statements of Income
Transactions with affiliates

4.

Operating revenue:¥70,320 million

Operating expenses:¥3,381 million

Transactions other than operating transactions:¥1,334 million

Notes to the Non-Consolidated Statements of Changes in Net Assets
Treasury shares
Type of stock

Common stock

Number of shares
Increase during Decrease during Number of shares
as of Jan. 1, 2015
this fiscal year
this fiscal year as of Dec. 31, 2015
20,984,062
4,990,397
298,160
25,676,299(Reasons for change)
The increase in the number of shares was the result of the following:

Increase resulting from purchases of Less-than-One-Unit Shares from shareholders uponrequest:8,297 shares

Increase resulting from acquisition of treasury shares:

4,982,100 shares

The decrease in the number of shares was the result of the following:

Decrease resulting from sales of Less-than-One-Unit Shares to shareholders upon request:
160 shares
Decrease resulting from exercise of stock options:
5.

298,000 shares

Notes to tax effect accounting(1) Breakdown of main reasons for deferred tax assets and liabilities(Deferred tax assets)
Shares of subsidiaries and associates due to restructuring:
Allowance for doubtful accounts, in excess of tax-deductible amount:
Provision for bonuses, non-tax deductible:
Loss on valuation of investment in subsidiaries, non-tax deductible:
Loss on valuation of investment securities, non-tax deductible:
Loss on valuation of capital contributions for subsidiaries, non-tax
deductible:
Deferred loss on transfer of business between consolidated corporations:
Others:Subtotal deferred tax assets:
Valuation allowance:
Total deferred tax assets(Deferred tax liabilities)
Valuation difference on available-for-sale securities
Deferred gain on transfer of business between consolidated corporations:
Total deferred tax liabilities¥1,071 million¥220 million¥48,009 million¥(29,697) million¥18,312 million¥(5,916) million¥(5,295) million¥(11,211) million¥7,100 million

Net deferred tax assets:91
¥17,598 million¥697 million¥52 million¥22,662 million¥651 million¥5,055 million

(2) Breakdown of main items which caused the difference between the statutory tax rate andthe effective tax rate after adoption of tax effect accounting
Statutory effective tax rates:(Adjustments)
Permanent difference (non-deductible), including entertainment expenses:
Valuation allowance:
Permanent difference (non-taxable), including dividend income:Difference due to changes in tax rate
Tax credit:
Others:
Effective tax rates after adoption of tax effect accounting:

6.

35.6%
1.4%
0.5%
(33.0)%
3.5%(0.4)%(0.1)%
7.6%

Notes to related party transactions

Subsidiaries and affiliates
Million yen

TypeSubsidiary

Subsidiary

Subsidiary

Subsidiary

Subsidiary

Percentage
Relationship Description
Balance asof votingTransaction AccountCompany
with relatedofof Dec.
rights, etc.
amountitem
partytransaction
31, 2015
held
Asahi
100%
Interlocking Operating
37,958––Breweries,
directof directors/ revenueLtd.
ownership corporate(Note 1)
auditors
Loaning(23,608) Short-term
217,703
funds
loans(Note 2)
receivable
Asahi Soft100%
Interlocking Loaning
3,265 Short-term
30,602
Drinksdirectof directors/ funds
loansCo., Ltd.
ownership corporate(Note 2)
receivable
auditors
AI Beverage 100%
Interlocking Loaning(3,768) Short-term
19,798
Holding
directof directors/ funds
loansCo., Ltd.
ownership corporate(Note 2)
receivable
auditors
Asahi
100%
Interlocking Guarantees
11,781––
Holdings
directof directors/ for(Australia) ownership corporate
liabilities
Pty Ltd
auditors(Note 3)
Asahi
100%
Interlocking Outsourcing
2,816
–
–
Professional directof directors/ indirect
Management ownership corporate
services,Co., Ltd.
auditors
etc.
(Note 4)

Terms and conditions of transaction and policy, etc. on determination thereof
Note 1: Operating revenue is determined in accordance with certain reasonable standards in order to provide
supervision, guidance, etc., regarding business management.
Note 2: The interest rate for the loans receivable is reasonably determined, taking the market interest rate into
consideration.
For the transaction amount, the amount of net increase (decrease) in the fiscal year under review is stated.
Note 3: The Company guaranteed bank loans in the amount of AUD134 million.
Note 4: The amount of outsourced indirect services, etc. is determined based on certain reasonable criteria.

92


7.

Notes to per share information(1) Net assets per share:(2) Earnings per share (Net income per share):8.

¥1,130.15¥79.66

Other notes

The stated amounts are the figures after truncating fractions less than the representative unit.

93AUDIT REPORT
Independent accounting auditor’s report on consolidated financial statements
Independent Auditor’s ReportFebruary 4, 2016
The Board of Directors
ASAHI GROUP HOLDINGS, LTD.
KPMG AZSA LLC
Hiroyuki Takanami (Seal)
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant
Hirotaka Tanaka (Seal)
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant
Kei Sakayori (Seal)
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant
We have audited the consolidated financial statements, comprising the consolidated balance sheet,the consolidated statement of income, the consolidated statement of changes in net assets and therelated notes of ASAHI GROUP HOLDINGS, LTD. as at December 31, 2015, and for the year fromJanuary 1, 2015 to December 31, 2015 in accordance with Article 444-4 of the Companies Act.
Management’s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with accounting principles generally accepted in Japan, and for suchinternal control as management determines is necessary to enable the preparation of consolidated
financial statements that are free from material misstatements, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on the consolidated financial statements based on our
audit as independent auditor. We conducted our audit in accordance with auditing standards
generally accepted in Japan. Those standards require that we plan and perform the audit to obtainreasonable assurance about whether the consolidated financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the consolidated financial statements. The procedures selected depend on our judgement,
including the assessment of the risks of material misstatement of the consolidated financial
statements, whether due to fraud or error. In making those risk assessments, we consider internal
control relevant to the entity’s preparation and fair presentation of the consolidated financial
statements in order to design audit procedures that are appropriate in the circumstances, while theobjective of the financial statement audit is not for the purpose of expressing an opinion on theeffectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of accounting estimates made by management, as
well as evaluating the overall presentation of the consolidated financial statements.
94We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
OpinionIn our opinion, the consolidated financial statements referred to above present fairly, in all material
respects, the financial position and the results of operations of ASAHI GROUP HOLDINGS, LTD.
and its consolidated subsidiaries for the period, for which the consolidated financial statements wereprepared, in accordance with accounting principles generally accepted in Japan.
Other Matter
Our firm and engagement partners have no interest in the Company which should be disclosed
pursuant to the provisions of the Certified Public Accountants Law of Japan.
Notes to the Reader of Independent Auditor’s Report:
The Independent Auditor’s Report herein is the English translation of the Independent Auditor’sReport as required by the Companies Act.

95


Independent accounting auditor’s report on non-consolidated financial statements
Independent Auditor’s ReportFebruary 4, 2016
The Board of Directors
ASAHI GROUP HOLDINGS, LTD.
KPMG AZSA LLC
Hiroyuki Takanami (Seal)
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant
Hirotaka Tanaka (Seal)
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant
Kei Sakayori (Seal)
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant
We have audited the non-consolidated financial statements, comprising the non-consolidated balance
sheet, the non-consolidated statement of income, the non-consolidated statement of changes in net
assets and the related notes, and the supplementary schedules of ASAHI GROUP HOLDINGS, LTD.
as at December 31, 2015 and for the year from January 1, 2015 to December 31, 2015 in accordancewith Article 436-2-1 of the Companies Act.
Management’s Responsibility for the non-consolidated Financial Statements and Others
Management is responsible for the preparation and fair presentation of the non-consolidated
financial statements and the supplementary schedules in accordance with accounting principles
generally accepted in Japan, and for such internal control as management determines is necessary toenable the preparation of non-consolidated financial statements and the supplementary schedules
that are free from material misstatements, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on the non-consolidated financial statements and the
supplementary schedules based on our audit as independent auditor. We conducted our audit inaccordance with auditing standards generally accepted in Japan. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether the non-consolidated
financial statements and the supplementary schedules are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the non-consolidated financial statements and the supplementary schedules. The procedures
selected depend on our judgement, including the assessment of the risks of material misstatement of
the non-consolidated financial statements and the supplementary schedules, whether due to fraud or
error. In making those risk assessments, we consider internal control relevant to the entity’s
preparation and fair presentation of the non-consolidated financial statements and the supplementaryschedules in order to design audit procedures that are appropriate in the circumstances, while theobjective of the financial statement audit is not for the purpose of expressing an opinion on theeffectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of96accounting policies used and the reasonableness of accounting estimates made by management, as
well as evaluating the overall presentation of the non-consolidated financial statements and the
supplementary schedules.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
OpinionIn our opinion, the non-consolidated financial statements and the supplementary schedules referred
to above present fairly, in all material respects, the non-consolidated financial position and theresults of operations of ASAHI GROUP HOLDINGS, LTD. for the period, for which the nonconsolidated financial statements and the supplementary schedules were prepared, in accordancewith accounting principles generally accepted in Japan.
Other Matter
Our firm and engagement partners have no interest in the Company which should be disclosed
pursuant to the provisions of the Certified Public Accountants Law of Japan.
Notes to the Reader of Independent Auditor’s Report:
The Independent Auditor’s Report herein is the English translation of the Independent Auditor’sReport as required by the Companies Act.

97


REPORT OF THE BOARD OF CORPORATE AUDITORS
Audit Report
The Board of Corporate Auditors has prepared the following report based on the audit reports
prepared by individual Corporate Auditors related to the Directors’ execution of their duties during
the 92nd fiscal year, the period from January 1, 2015 to December 31, 2015, after due discussions
and consultations among the Corporate Auditors.
1. Methods used in audits by the individual Corporate Auditors and by the Board of
Corporate Auditors and content of audits(1) The Board of Corporate Auditors determined the audit policies and division of duties, andreceived reports from each Corporate Auditor regarding the status and results of the audits, aswell as reports from the Directors and Independent Accounting Auditor on the execution of
their duties, and requested explanations of those reports when necessary.
(2) Each Corporate Auditor sought to achieve mutual understanding with the Directors, sections incharge of internal audit and other employees, and strove to collect information and create an
audit environment in accordance with the audit policies and division of duties based on theaudit standards established by the Board of Corporate Auditors. The Corporate Auditors also
attended meetings of the Board of Directors and other important meetings, received reports
from Directors and other employees regarding the execution of their duties and requested
explanations when necessary, reviewed documents related to important decisions, andinspected the operations and property of the head office and other locations. With respect to“systems to ensure appropriate execution of Directors’ duties in conformity with laws andregulations and the Articles of Incorporation, and other systems to ensure appropriate business
operations (internal control systems)” (Item 6, Paragraph 4, Article 362 of the Companies Act
and Paragraph 1 and 3, Article 100 of the Ordinance for Enforcement of the Companies Act)
that is included in the Business Report, the Board of Corporate Auditors received reports
regularly from Directors and other employees regarding the status of the establishment andimplementation of the systems, sought additional explanations as necessary and expressed
opinions thereon. As regards “basic policy concerning the persons who control decisions on the
Company’s financial and business policies” (Item 3, Article 118 of the Ordinance for
Enforcement of the Companies Act) included in the Business Report, based on discussions with
the Board of Directors and other parties. With respect to subsidiaries, the Corporate Auditors
took steps to facilitate communications with the Directors and Corporate Auditors ofsubsidiaries and, when necessary, received reports from subsidiaries on the status of theirbusinesses. Using the foregoing methods, the Corporate Auditors reviewed the Business Report
and the supplementary schedules for the fiscal year under review.
(3) The Board of Corporate Auditors oversaw and verified that the Independent Accounting
Auditor maintained its independence and carried out appropriate audits, moreover, andreceived reports from the Independent Accounting Auditor regarding the execution of its duties
and requested explanations when necessary. The Board of Corporate Auditors also received
notifications from the Independent Accounting Auditor to the effect that “a system for the
maintenance of appropriate execution of duties” (included in Article 131 of the Corporate
Calculation Regulations) in accordance with the “standards for quality control of audits”(Business Accounting Council; October 28, 2005), and requested explanations when necessary.
Based on the above activities, the Board of Corporate Auditors examined the non-consolidated
financial statements (non-consolidated balance sheets, non-consolidated statements of income,non-consolidated statements of changes in net assets, and notes to the non-consolidated
financial statements), the supplementary schedules, and the consolidated financial statements(consolidated balance sheets, consolidated statements of income, consolidated statements ofchanges in net assets, and notes to the consolidated financial statements) for the business year
under review.

982. Results of the Audit(1) Results of audit of the Business Reportx In our opinion, the Business Report and the supplementary schedules present the situation of theCompany fairly, in compliance with the provisions of applicable laws and regulations and the
Articles of Incorporation.
x In our opinion, there are no wrongful acts or material violations of applicable laws andregulations or the Articles of Incorporation in the execution of their duties by the Directors.
x In our opinion, the content of the resolution by the Board of Directors regarding internal control
systems is appropriate, and, furthermore, content of the Business Report regarding the internal
control systems and the execution by the Directors have been appropriate.
x In our opinion, the Company’s basic policy concerning the persons who control decisions on the
Company’s financial and business policies in the Business Report is appropriate. We
acknowledge that the measures implemented to achieve this basic policy are consistent with thebasic policy, will not harm the common interest of the Company’s shareholders, and will notserve the purpose of maintaining the positions of the Company’s Directors and Corporate
Auditors.
(2) Results of the audit of non-consolidated financial statements and the supplementaryschedules
In our opinion, the auditing methods used by KPMG AZSA LLC, the Independent Accounting
Auditor, and the results of its audit are appropriate.
(3) Results of the audit of consolidated financial statements
In our opinion, the auditing methods used by KPMG AZSA LLC, the Independent Accounting
Auditor, and the results of its audit are appropriate.
February 5, 2016
Board of Corporate Auditors
Asahi Group Holdings, Ltd.
Yoshihiro Tonozuka(Seal)
Standing Corporate
AuditorAkira Muto (Seal)
Standing Corporate
Auditor
Tadashi Ishizaki (Seal)
Outside Corporate Auditor
Katsutoshi Saito (Seal)
Outside Corporate Auditor
Yumiko Waseda
Outside Corporate Auditor

99




