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Main Q&As at FY2018 Year-end Financial Results briefing

What factors drive the steady profit growth in total?
Each business has increased royal user ratio for our brands by strengthening marketing activities centered on the enhancement of core brands equities. We have also promoted earning structure reform driven by implementing cost reductions more than planned. Thorough these efforts, we have increased each business’s profitability. We have also enhanced our operational management level and established the sustainable foundations for growth.
How does Asahi realize the future profit growth in light of the guidelines of the Medium Term Management Policy?
Our forecast this fiscal year includes the negative impacts of forex and raise of raw materials costs. In response to this headwinds, we have worked to increase the revenue centered on promoting high added value products and enhance further earning structure reform by leveraging zero based budgeting. We aim at achieving the guidelines steadily and meet the market expectations.
In the domestic Alcohol Beverages Business, how does Asahi realize the sustainable growth of Asahi Super Dry?
We have worked to revitalize beer consumption environment by reinforcing the promotions including the proposal of special jugs related to Tokyo 2020 Olympic and Paralympic Games for HORECA channel. We also appeal the core equity of Asahi Super Dry further driven by increasing the communication opportunities for consumers through such means as the major sampling for 3 million people of Asahi Super Dry.
How does Asahi demonstrate its unique strength in the field of digital marketing?
We have developed digital marketing strategy with taking advantage of our top brands, such as Asahi Super Dry, CALPIS and MINTIA in each business. We aim at improving the proposal level for new values leveraging the large consumption data related to our top brands.
What risks do you anticipate in Europe market this year and how do you respond to them?
We follow the situations related to Brexit. In the event of the failure for the UK to agree a deal related to the terms of its withdrawal from the EU, we anticipate the delays in the customs procedures. We are now implementing some initiatives to avoid the opportunity loss related to out of stock due to factors including the logistics disruption.