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  4. Main Q&As at FY2020 Q2 Financial Results briefing

Main Q&As at FY2020 Q2 Financial Results briefing

Under the circumstances of the spread of COVID-19, what should Asahi focus on as management?
During an uncertain business environment, Asahi will increase its cost competitiveness as a group, with particular emphasis on resilience, flexibility, robustness and sustainability. Also, as the arrival of the new normal era, in which the social structure has changed significantly, Asahi will refine its ability to respond to changes in markets and consumption trends.
How will Asahi generate top-line synergies by leveraging the strength of its CUB business in Australia?
Asahi intends to create top-line synergies by leveraging the competitive advantage of the CUB business' sales network in the Australian on-premise beer market to expand the number of restaurants that handle Asahi's existing brands, including Asahi Super Dry and Peroni Nastro Azzurro, as well as alcohols other than beer and soft drinks.
How will Asahi improve the profitability of its alcoholic beverage business in Japan with the upcoming liquor tax changes this October?
In beer, Asahi will strengthen its integrated marketing of Asahi Super Dry to attract more new users. In new genres, Asahi will focus on its standard products Clear Asahi and The Rich, which was launched in March, to respond to diversifying consumer needs. In addition to improving the category mix, Asahi will also work to minimize SKU and improve the efficiency of promotional costs.
How will Asahi change the business model for vending machines in its beverage business?
The sales of vending machines in the industry as a whole, including Asahi's sales, have been declining due to an increase in remote work and restraint in going out. Moving forward, Asahi intends to improve the profitability of the beverage business as a whole by stimulating demand through the introduction of new vending machines with new functions, such as contactless machines, and by making a balanced allocation of management resources.
What should Asahi focus on so as to improve the profitability of its European business?
In Europe, demand for the off-premise market is increasing due to the impact of COVID-19. Under these circumstances, there has been a polarization of consumption due to a "return to demand for reliable and reassuring brands" and a "rise in health consciousness". Moving forward, Asahi will strive to improve its profit margins by promoting premiumisation in the off-premise market in addition to a recovery in demand for its top brands in the on-premise market of each country.