3. Management Information
  4. Medium-Term Management Policy

Medium-Term Management Policy

Overview of Revisions to Medium-Term Management Policy

Enhancing “Glocal Value Creation Management” based on Asahi Group Philosophy

1. Strengthening earnings power by further enhancing added value and earnings structure reform

  • Promoting the premiumization strategy by enhancing high- added-value brands in all businesses and expanding the five global brands*1
  • Reforming the earnings structure in response to changes in the business environment

    - Targeting the efficiency of improving earnings structure (total for 2021–2023): over ¥50.0 billion for reallocating on business performance recovery and investments in the enhancement of management resources and reinforcing of ESG initiatives.

: Asahi Super Dry, Peroni Nastro Azzurro, Kozel, Pilsner Urquell, Grolsch

2. Enhance management resources aimed at expanding new foundations for growth

  • Bolstering investment in intangible assets (R&D, human resources, etc.) with the aim of boosting innovation and new value creation
  • Constructing new operating model by accelerating DX (Digital Transformation)

3. Reinforce ESG initiatives supporting our sustainable value creation process

  • Integrating sustainability into management strategy through such initiatives as “Asahi Group Environmental Vision 2050” and “Sustainable Communities”
  • Enhancing risk management systems (enterprise risk management), strengthening global governance centered on the three pillars in Japan, Europe, and Australia
<Key Performance Indicator Guidelines>
  • Withdrawing existing guidelines in light of the impact of the COVID-19 pandemic, planning to establish new guidelines in 2022
  • Targeting a recovery to 2019 profit level*2 in 2022

: Based on 2019 operating performance with the inclusion of CUB business results (estimated figures from January to December)

<Financial and Cash Flow Guidelines>
  Guidelines from 2021 onward
Cash Flow ・FCF: above ¥200.0 billion or higher (annual average)
(FCF = operating cash flow – investment cash flow)
*Excluding M&A and other business restructuring.
Investment for Growth/Debt Reduction ・FCF will be allocated first to debt reduction to increase capacity for growth investment
・Net Debt/EBITDA: Around 3 times by 2024
(Calculated after excluding 50% of subordinated debt from Net Debt)
Shareholder Returns ・Stable dividend increases with the aim of a dividend payout ratio of 35% (aiming at dividend payout ratio of 40% in the future)

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.