Enhancing Glocal Value Creation Management Based on the New Group Philosophy
We have undertook further development of management for corporate value enhancement based on the Long Term Vision, revised in 2016 and the Medium-Term Management Policy under which we have aimed at realizing the Long-Term Vision.
Especially in 2018, we faced the severe business environment including the domestic beer-type market contraction more than expected. Under these circumstances, we have strengthened brand equities in the three domestic businesses and steadily promoted the earnings structure reform. Overseas, we have expanded the foundation for growth in premium beer market centered on European beer business. Through these efforts, we have enhanced our Group’s total earning power.
In the external environment, the sense of uncertainty surrounding the global economy heightens. On the other hand, a wide variety of opportunities and risks have expanded in the context of value variation and premiumization in the consumption structure. Additionally, we comprehensively need to disclose the integrated information rooted in the corporate philosophy and also face the imperative of enhancing constructive dialogue with all stakeholders in response to factors including the revision of Japan’s Corporate Governance Code.
Since 2016, we have implemented major M&As in Europe and swift business portfolio restructuring. As the result, the profit of the Overseas Business accounts for almost 40% of our entire core operating profit and more than half of Group employees are from countries other than Japan. We are now equipped with the necessary competitive edge and foundation to take on the challenge of becoming a truly global company. Now that we have reached a new stage in its growth, we established “Asahi Group Philosophy (AGP)” for getting our employees worldwide to have the same goal towards creating our unique value. We also updated the Medium-Term Management Policy embodying the philosophy expansively.
We set three key priorities under the updated Medium-Term Management Policy, 1) Strengthening earning power, 2) Sophisticating management resources, 3) Reinforcing ESG initiatives, and have enhanced Glocal Value Creation Management based on AGP. We also set the key priorities as engagement agendas and enhance constructive dialogues for further sophisticating each initiative. We will aim to achieve sustainable growth and improve our corporate value in the medium to long term through these efforts.
We request your continued guidance and support in the coming years.
President and Representative Director, CEO