TOP 2009 First-half Financial Results and Future Business Strategy Contents 2009 First-half Financial Results Future Business Strategy First-half Sales of Beer-type Beverages Sales Forecasts for Beer-type Beverages Beer Brand Strategy Happoshu and New Genre Brand Strategy Other Alcohol Category Results and Future Strategy Streamlining Marketing Costs Asahi Soft Drinks Busiiness Overview and Future Strategy Food and Healthcare Business Overview and Future Strategy Overseas Business Overview and Future Strategy Growth of Tingyi-Asahi-Itochu Beverages Holding Co. Ltd. Acquisition of Schweppes Australia Investment in Tsingtao Brewery Back Cover Our Chinese beer business failed to meet its sales and profit forecasts as it faced fierce competition from national brands in Hangzhou and encountered delays in obtaining approval for Yantai Beer to start producing Tsingtao beer. However, Yantai Beer's tie-up with Tsingtao Brewery has yielded definite results since May. We expect to see solid improvements in profitability throughout our Chinese operations in the second half of this year as we work to further strengthen our ties with Tsingtao Brewery while keeping a tight rein over costs. Haitai Beverage of South Korea is finally making progress in its efforts to cut fixed costs by consolidating operations and production facilities. But it failed to meet its targets as the weak won impacted on raw materials prices while sales of the core Sunkist brand at a relatively high price point fell short of expectations. Upward pressure on raw materials prices should ease, and we will continue reforming our earnings structure and plan to renew the Sunkist brand and launch a number of new products in the second half of this year. We expect to be able to meet our second-half targets by virtue of these key efforts and thereby decisively improve profitability. We will discuss this year's investments in Schweppes Australia and Tsingtao Brewery on pages 14 and 15.