Asahi Group Holdings, Ltd. (the “Company”), taking its Management Philosophy as the starting point, has updated the Long-Term Vision, which articulates foresight into the future for the entire Asahi Group, and formulated the Medium-Term Management Policy aimed at further development of the Group’s ongoing initiative of management for corporate value enhancement.
• 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 (KPIs). Under the plan, the Company has worked to enhance 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 ROE and EPS targets. At the same time, in an increasingly fierce competitive environment, issues that remain to be addressed include further high value addition and creation of new demand in the mainstay domestic alcohol beverages and soft drinks businesses. Overseas business, acceleration of growth for Oceania and Southeast Asia and expansion of the global foundations for growth are urgent priorities.
• Future Changes in the External Environment
In the external business environment surrounding the Company, as the twenty-year struggle to escape from deflation reaches a crucial stage in Japan, an additional consumption tax increase and revision of the liquor tax are expected to result in further diversification of consumption. Overseas, at a time of 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 of shareholders and other stakeholders are likely to shift more toward sustained growth and enhancement of corporate value over the medium to long term.
• Formulation of the Long-Term Vision and Medium-Term Management Policy
In light of the outcomes of the previous medium-term management plan and impending changes in the external environment, the Company has revised Long-Term Vision 2020, established 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 Company has also revised the Medium-Term Management Plan and formulated the Medium-Term Management Policy, changing from the previous model of action plan focused to a format with emphasis placed on the medium-term direction for realizing the new business vision.
The Policy is to indicate guidelines for KPIs for the coming three years on a rolling basis in accordance with changes in the business environment, not set fixed quantitative targets with clearly defined deadlines.
Setting these policies will ensure strategic flexibility. The Company will deepen dialogue with stakeholders and aim at sustained corporate value enhancement by positioning the Long-Term Vision and Medium-Term Management Policy as a stakeholder engagement agenda.
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 area of focus and establish a unique position as a global player that leverages strengths originating in Japan.