Promoting “Glocal Value Creation Management” through Constructive Dialogue
As a result of major acquisitions in Europe and swift business portfolio restructuring conducted since 2016, the Asahi Group’s foundations for growth are expanding as we prepare for true globalization: The ratio of core operating profit earned overseas has now risen to about 40% of the Group total, and more than half of Group employees are countries from other than Japan. Now that our Group has advanced to a new growth stage, in 2019 we established the “Asahi Group Philosophy” and updated the Medium-Term Management Policy to reflect this new philosophy. We have set three key priorities in the Medium-Term Management Policy to promote “Glocal Value Creation Management”: 1) Strengthening earnings power by further enhancing added value and earnings structure reform, 2) Enhancing management resources aimed at expanding new foundations for growth, and 3) Reinforcing ESG initiatives supporting our sustainable value creation process.
Last year, although we faced a severe business environment due to unfavorable weather during the peak selling season in Japan as well as weakening of the euro and Australian dollar, we promoted high added value strategy Group-wide by expanding our premium brands centered on the European beer market. We entered into an agreement to acquire Carlton & United Breweries, a major Australian brewer, in bid to expand new sources of growth. We also continued to engage in ESG initiatives, such as the establishment of Asahi Group Environmental Vision 2050 and implementation of corporate governance reforms aimed at increasing the effectiveness of the Board of Directors.
This year, the business environment surrounding our Group will bring a variety of additional risks and opportunities, such as the Olympic and Paralympic Games Tokyo 2020 and revision of the liquor tax. We are also increasingly expected to deepen our ESG initiatives, which underpin the value creation process. We intend to continue to pursue sustainable growth and seek to improve corporate value in the medium to long-term by ensuring that Group employees worldwide to have same goal towards creating our unique value in accordance with the “Asahi Group Philosophy”, and by striving for constructive dialogue with our stakeholders by positioning the Medium-Term Management Policy as an engagement agenda.
We request your continued guidance and support.
President and Representative Director, CEO