: Overview of Long-Term Strategies
Basic Concept behind Long-Term Strategies
Contribute to sustainable society and respond to changing conceptions of wellbeing through delivering great taste and fun
Ideal Business Portfolio: Sustainable growth of existing businesses centered on beer category while expanding into new areas
- Growth driven by global brands and premiumization in existing operating regions; expansion into new markets.
- Growth in adjacent categories to capture demand from trends such as increasing health consciousness; creation and development of new businesses that draw on the Group’s capabilities.
Core Strategies: Promote core strategies aimed at achieving sustainable growth
- Integrate sustainability into management in order to positively impact both society and the Group’s businesses; contributing to solving societal issues.
- Achieve innovation in three key areas (processes, organization, and business models) by pursuing BX (business transformation) through DX (digital transformation).
- Increase the value of existing products and create new products and markets through bolstering R&D (research & development).
Strategic Foundation Strengthening: Consolidate the management foundations underpinning long-term strategies
- Advance human resource for executing core strategies and building an ideal business portfolio.
- Enhance Group governance in order to create an optimal organizational structure; Group-wide sharing of best practices.
Medium-Term Guidelines for KPIs
| 2021 Results | Guidelines from 2022 for Next 3 Years | |
|---|---|---|
| Core Operating Profit | JPY 217.9 billion | ・CAGR: High single digit*1 |
| Earnings Per Share (Adjusted*2) | JPY 305.2 | ・CAGR: High single digit |
| Free Cash Flow*3 | JPY 319.1 billion | ・Annual average of JPY 200 billion or higher |
Constant Currency Basis in 2021
The earnings per share guideline is on an adjusted basis excluding special temporary factors, such as business portfolio restructuring and impairment losses.
Free Cash Flow = Cash flows from operating activities – Cash used in investing activities (excluding M&A and other business restructuring)
Medium-Term Guidelines for Financial Policy
| Guidelines from 2022 Onward | |
|---|---|
| Investment for Growth / Debt Reduction | ・Prioritize allocation of free cash flow to the reduction of debt and work to enhance capacity for growth investments ・Aim for Net Debt/EBITDA of around 3 times or less in 2024 (after deducting 50% of outstanding subordinated debt from net debt) |
| Shareholder Returns | ・Stable dividend increases with the aim of achieving a payout ratio of 35% (aiming for future payout ratio of 40%) |
The Group will upwardly revise free cash flow in 2021 and beyond from ¥170.0 billion to ¥200.0 billion or higher (CAGR, compound annual growth rate), and will place priority on allocating free cash flow to debt reduction in order to increase the Group’s future investment capability for the growth. The Group will stably increase dividends with the aim of a dividend payout ratio of approximately 35%, and aim for its 40% in the future.
Note: This document is a press release to announce withdrawal of the shelf registration of issuance of new shares of the Company, and it does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States and it has not been prepared for the purpose of soliciting investments. The securities referred to in this press release have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “Securities Act”). The securities may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. The securities referred to above will not be publicly offered or sold in the United States.