Behind the Boardroom with Group Chief Financial Officer, Kaoru Sakita

In this edition of "Behind the Boardroom," we sit down with Asahi Group’s Chief Financial Officer to explore his journey, the insights he's gained throughout his career, and how he's steering the company toward financial soundness and sustainable growth.

Why Asahi?

Q: Why did you join the Asahi Group, and what aspects of Asahi are you most proud of today?

KS: The main reason I joined Asahi Group was the people. During my interview, I met individuals who were forward-thinking and genuinely valued people, and I saw a strong sense of potential and an aggressive spirit in the company. I’m proud of our culture that enjoys tackling the hurdles of a new era, with individuals who are sincere, take their work seriously, and are always open to new ideas and challenges.

Strategic Investments for Sustainable Growth

Q: Over the past two years, the global economy has faced significant challenges, including rising costs and inflation. How has Asahi Group managed to maintain financial stability in this environment?

KS: Over the past couple of years, we've felt the pinch of global inflation. Costs of raw materials, energy, and labor have all gone up, creating an operating environment unlike any we've seen before. But, I'm proud to say that we exceeded our financial goals in fiscal 2023. We did this by carefully adjusting our pricing strategies, promoting premium offerings, and tightening our cost management. At the same time, we didn't pull back on strategic investments - we continued to bolster our brands with a focus on the long-term.

Our efforts paid off in terms of our cash flow as well, largely due to our increased profits and efficient supply management. We also improved our cash flow and reduced our debt, which helped us become more financially stable.

Looking ahead to the end of fiscal 2024, we anticipate having an improved Net Debt/EBITDA. This positive shift is not just anticipated to meet, but exceed our financial policy guidelines. This is a really good thing - it means we're managing our money better and becoming more financially secure. We're heading in the right direction, and I'm really excited about what the future holds for us.

Pursuing Ongoing Investment Focused on Medium- to Long-Term Growth

Q: With the improvements in financial soundness, how is Asahi Group planning to pursue growth investments moving forward?

KS: Our strengthened financial position now allows us to focus on growth investments for sustainable development. We're entering an investment-focused phase, prioritizing sustainability, R&D, digital transformation, and human capital, all crucial for our Medium to Long-term Management policy. We'll particularly focus on achieving our environmental targets within an accelerated time frame.

We'll continue to ensure each investment yields a strong return, and we're also considering M&A for inorganic growth. However, we'll prioritize opportunities that strengthen our existing operations, in beer-adjacent categories areas like non-alcohol and low-alcohol beverages, as well as in regions where we can implement our premium strategies.

Lastly, we recognize the growing demand for non-financial information disclosure. To not only meet these demands and enhance our overall corporate value, we must integrate sustainability into our investment decisions and Group-wide governance, converting risks into opportunities for sustainable growth.

Q: What is the best piece of work-related advice you’ve received?

KS: While I don’t have a single piece of advice that stands out, I’ve always been learning, both in good and challenging times. Throughout my finance career, I've learned a lot from diverse roles, including general affairs, management planning and M&A, even Post-Merger Integration overseas. What's truly enriched my experience is the people around me who have supported me in all these different settings. A crucial lesson I've gathered is the importance of preparing materials with the right perspective and setting clear goals for every agenda. It's not just about what you know, but how you use that knowledge to drive action.

As we conclude our "Behind the Boardroom" series, we hope you've gained valuable insights into the leadership driving Asahi Group forward. From finance to R&D and beyond, our Group CxOs have shared their visions, challenges, and strategies that shape the future of our company. Asahi Group's journey toward innovation, sustainability, and global growth is guided by these leaders who are deeply committed to our mission. Though this series comes to an end, our pursuit of excellence continues. Watch this space for more stories and updates!

For more information on the Asahi Group’s financials, our Group CFO delivers his message here.

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