Medium- to Long-Term Management Policy

Overview of Long-Term Strategies

Contribute to sustainable society and respond to changing conceptions of well-being through delivering great taste and fun

Management Foundation That Realizes Our Transformation Capabilities and Sustainability

To date, the Asahi Group has formulated and implemented the necessary initiatives for sustainable growth while maintaining a medium- to long-term perspective. Underpinned by the management foundation it has built up throughout this process, the Group will strive to further boost its sustainability and steadily enhance corporate value by integrating sustainability into its management and evolving its business model through digital transformation and other measures.

Business Portfolio and Brand Foundation

We possess a diverse range of high-value-added brands across the domains of alcohol beverages, non-alcohol beverages, and food. By utilizing our global business foundation, we are promoting premiumization, centered on beer, and expanding our global brands while also creating new growth opportunities. In these ways, we are working to realize sustainable growth.
Sustainability Management Foundation

Through products and services created from the gifts of nature, we are delivering great taste and fun to people around the world. By promoting the integration of sustainability into our management, we will strive to ensure a healthy global environment, which serves as the foundation of our businesses, and realize a better future for the next generation.
Research and Development Foundation

Our research and development (R&D) activities represent the foundation through which we are able to offer products and services with unique value that meet the ever-diversifying needs of our customers. Drawing on our long-cultivated technologies and insight, we promote the creation of new ways of drinking and experiencebased value.
Human Resource Foundation

A multicultural and diverse organization is essential to realizing sustainable value creation. To that end, we work to foster a corporate culture in which all employees can play an active role. We also aim to enhance our human capital, who are the lifeblood of our competitive edge, by improving employee engagement.
Financial Foundation

Backed by our strong business foundation and high level of credibility, we possess a robust financial foundation that supports the stable creation of cash flows and optimized fundraising activities, among other aspects. By striving to further enhance our financial management and promoting the optimal allocation of cash, we will realize sustainable corporate value enhancement.

Medium-Term Guidelines for KPIs

	Guidelines (three-year horizon)	2022-2024 Forecasts
Core Operating Profit	・CAGR: High single digit ^*1	4.9％
Earnings Per Share (Adjusted ^*2)	・CAGR: high single digit ^*1	4.4％
Free Cash Flow ^*3	・Annual average of JPY 200 billion or higher	JPY 226 billion

Constant currency basis
The earnings per share guideline is on an adjusted basis excluding special temporary factors, such as business portfolio restructuring and impairment losses
Free Cash Flow = Cash flows from operating activities – Cash used in investing activities (excluding M&A and other business restructuring)

Medium-Term Guidelines for Financial Policy

	Guidelines for 2022 onward	2024 Forecasts
Investment for Growth / Debt Reduction	・Prioritize allocation of FCF to the reduction of debt and work to enhance capacity for growth investments ・Aim for Net Debt/EBITDA ^*1 of around 3x or less in 2024 （Calculated after deducting 50% of outstanding subordinated debt from net debt）	2.70x (2023: 3.08x)
Shareholder Returns	・Dividend payout ratio ^*2 : Steadily increase dividends with targeted payout ratio of approx. 35% (Expect ratio of 40% by 2025)	38.0％ (2023: 37.0%)

Net Debt to EBITDA ratio = (Gross debt − cash and equivalents)/EBITDA
Dividend payout ratio is calculated by deducting one-time gains/losses (after tax) relating to business portfolio restructuring and impairment losses from profit attributable to owners of the parent

Information in this material is not intended to solicit the sale or purchase of shares in Asahi Group Holdings. The views, estimates and other information included in this document are based on the company's judgment at the time of publication, and no guarantees are provided regarding the accuracy of such information. This information is subject to change without notice. The company and its officers and representatives accept no responsibility or liability for any damage or inconvenience that may be caused by or in conjunction with any part of these materials.

Medium- to Long-Term Management Policy