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Main Q&As at FY2019 Q2 Financial Results briefing

What is your rationale to acquire the CUB business in Australia?
We aim to expand the global foundation for growth based on newly established group philosophy and Medium Term Management Policy. The target business possesses the brands and marketing capabilities contributing to the strategy. FMCG markets have become more borderless environment. In these circumstances, we will build a global management platform anchored by the three regional pillars of Japan, Europe, and Australia thanks to the acquisition. We will also organize the management system to promote our glocal growth strategy.
How will you promote the future growth of the CUB business?
We have already operated the business in Australia, where the sustained economy growth has continued, since 2009, and accumulated the market know-how there. The premium beer market in Australia has grown continuously. In the circumstances, we will aim at increasing both revenue and core OP driven by the creation of synergies with the existing business, in addition to the growth centering on the diversified brand portfolio of the CUB business.
What areas do you think to create synergies in when you integrate the CUB business into the existing business?
We aim at creating synergies with the existing business which is the same sales scale as the target business, centered on supply chain areas including procurement and logistics. In addition to that, we will welcome the talented people in the CUB business. We will enhance the whole group management resources including the expansion of glocal talent management.
What factors have driven the steady profit growth in Europe business?
Premiumization strategy in each country has progressed steadily, and the overall cost optimization including streamlining marketing investments has continued. These have led the profit growth, and achieved our target, despite the sales volume stagnation in some countries due to the unfavorable weather in the first half this year.
How do you accelerate the global development of Asahi Super Dry in the future?
We held the global conference for Asahi Super Dry where the brand managers in each area gathered for the first time this May. They shared the vision and mission of the brand there. From now on, we have strengthened the appealing of the shared brand equity for the target customers in on-premise markets in focused areas. While enhancing the brand equities, we have promoted the sales expansion in off-premise markets.
What initiatives do you work including the response to the consumption tax hike in Alcohol Beverages Business in the future?
We are concerned about the stagnation of consumer sentiment after the tax hike. We aim at boosting the consumption demand through various sales promotions. We have enhanced initiatives especially focused on re-strengthening of the brand equity of Asahi Super Dry. We have focused on increasing the contact points for consumers to enjoy drinking beer in light of the next year’s events including Olympic and Paralympic Games Tokyo 2020 and liquor tax revisions.