Main Q&As at Strategy Conference(Sustainability and DX)

Sustainability Conference

A.Sustainability-related efforts should be judged after collecting data for at least three years, not a single year, or they may lead to results that fall short of evidence. Although the value-related diagram shows the linkages among the elements, we are not yet certain of these linkages. For example, we were able to confirm the connection between the improvement of ESG external evaluation through proactive dialogue and the improvement of brand value through the promotion of environmental considerations. On the other hand, there are various other factors that affect sales, such as the link between initiatives that contribute to Scope 1 and 2 reductions and sales increases, and it is necessary to continue verifying the relationship between these factors. We will continue to accumulate data and seek measurement methods that can eliminate factors other than those targeted for analysis in order to further improve the accuracy of our analysis.

A.We recognize that a major challenge is that we have not yet accumulated sufficient know-how to provide direct support to farms, which we have been doing in the past. We also need to allocate more resources than ever before to recycling-oriented society and biodiversity initiatives. The newly revised "Environmental Vision 2050" incorporates these ideas, and based on this, we intend to respond by quickly identifying types and areas of risk.

A.Visualization of costs and returns is currently being formulated. For example, we are putting together an investment policy from a long-term perspective, such as establishing an internal carbon price and making investment decisions while taking into account the impact of any future carbon taxes that may be required.

A.We are still in the process of analyzing this information based on a variety of sources, and as we move into the stage of actually inspecting the site, we believe that additional research will be required as the situation requires.

A.Currently, it accounts for 10% of our group's total sales, which is on track to meet our target. We believe that we can achieve further growth in the future by strengthening our value proposition to expand the variety of drinking opportunities beyond the existing target group.

A.Since each region scores differently and has different issues, each region formulates specific action plans for items with low scores and takes measures to address them. In addition, as a global headquarters, we are monitoring the situation through monthly execution reports from each region. Overall, operational efficiency, especially in the decision-making process, is an issue that needs to be improved in the future. The engagement survey has only been in place for two years, so there is also a need to look at it at a more secular level.

A.We recognize that sustainable procurement is an area where we need to further strengthen our efforts. On the other hand, we are making steady progress in our efforts to reduce CO2 emissions, with the goal of a 70% reduction by 2030 under Scope 1 and 2. Also, the Group is united in its efforts to strengthen responsible drinking, and we hope to lead the industry in this area. Differences in efforts within the group are due in part to the strict regulations in each country, and in some cases, other countries are more advanced. For example, support for hop farmers and app-based water management in the Czech Republic, and direct farmer contracts in Australia are examples of advanced practices.

A.First, we recognize that the problem is not the alcohol itself, but the improper consumption of alcohol, and the first pillar of our approach to responsible drinking is to eradicate it. The second pillar is not only to eradicate the negative but also to create new opportunities for responsible drinking. One of the major developments in the future discussion on alcohol is the UN General Assembly High-Level Meeting on Non-Communicable Diseases to be held in 2025, in which alcohol will be one of the topics on the agenda. We intend to promote responsible drinking not only through us, but also through collaboration with our competitors and in cooperation with the WHO as an industry as a whole.

DX Conference

A.Currently, we are in a period of transition in various processes, and the situation differs from region to region. For the supply chain, a system has been established to share best practices and know-how in each region, starting from globally standardized KPIs.

A.In the last few years, we have digitized sales status management. However, since sales know-how differs greatly in each country due to market structure and customs, there are some parts that do not need to be shared. Therefore, we are trying to collaborate on areas where we can refer to each other.

A.To avoid risks, we are building a structure, including human resource development, in which people with the appropriate skills can manage risks. We do not undertake long-term projects that take more than two to three years to complete, but rather build systems by adding small functions little by little, so that we can respond agilely and flexibly to changing circumstances. The scale of the financial return is currently being calculated, but the company will aim for a return on investment that meets or exceeds current capital investment standards by introducing a system for verifying effectiveness along with setting KPIs for investments.

A.Specific quantitative effects are currently under examination. The amount of investment after 2026 will also be examined closely from now on.

A.We believe that the source of our competitive advantage is to organically link our business portfolio strategy, core strategy, and other strategies for strengthening our strategic foundation, which are set forth in the "Medium- to Long-term Management Policies," so that we can move forward with what we can do with a sense of unity and increased effectiveness. Therefore, in order to further improve productivity in the future, it will be important not only to develop systems, but also to optimize the human resources who use them, global communication, connections among employees, and the organization, including working styles.

A.There are currently no plans to consolidate the systems of each region into one large common system. We will use a loosely coupled approach, based on the current system, to which functions and systems will be added and combined in the future. Data from existing systems and new functions and systems will be consolidated into a single database, and the necessary data will be accessed from the front end and used in business operations.