Asahi : Announcement of commencing negotiation process for the sale of Indonesia’s joint venture business

October 2, 2017

Company name: Asahi Group Holdings, Ltd. President and Representative Director: Akiyoshi Koji Securities Code: 2502

Stock Listings: Tokyo Stock Exchange, First Section Contact: Takayuki Tanaka

General Manager, Public Relations Section Phone: +81-3-5608-5126

Announcement of commencing negotiation process for the sale of Indon es ia 's j oin t ve ntur e business

Asahi Group Holdings, Ltd. ("Asahi" or "the Company") is pleased to announce that the Company concluded a non-binding Letter of Intent ("LOI") today, to start the negotiation of the sale of the entire stake in PT Asahi Indofood Beverage Makmur ("AIBM"), and PT Indofood Asahi Sukses Beverage ("IASB") that Asahi owns, held via our 100% subsidiary Asahi Group Holding Southeast Asia Ptd. Ltd. ("AGHSEA"), to PT Indofood CBP Sukses Makmur Tbk.,("ICBP"), our joint venture partner.

1. Rationale for the proposed sale ("Transaction")

   Asahi has established a 'Long-Term Vision' that envisages the future of the group and its businesses. The Company targets to further enhance the corporate value under the guideline of 'Mid-term Management Policy' which is contemplated to achieve such vision.

   The 'Long-Term Vision' is of a comprehensive beverage and food business group with the alcoholic beverage at its core. The group will be a domestic industry leader focused on high value addition, while establishing a unique position as a global player that leverages strengths originating in Japan.

   In addition, as one of the strategic imperatives for the international business segment under the 'Medium-Term Management Policy,' Asahi envisages growth centered on brand reinforcement and development in existing businesses, and the acquisition of new foundations for growth. In light of the above priorities, Asahi has successfully acquired SAB Miller plc's West European as well as Central and Eastern European businesses last year to accelerate the growth of the overseas business.

   At the same time, the Company has also sought to continuously enhance corporate value through business portfolio restructuring. To this end, Asahi has examined its investment in the Indonesia beverage business and decided to start the negotiation process to sell its entire equity stake.

2. Overview of the Transaction Negotiating Parties： Asahi, ICBP Target entities： AIBM, IASB

   AIBM's subsidiaries (PT Prima Cahaya Indobeverage (PCIB) and PT Tirta Sukses Perkasa (TSP)), and IASB's subsidiaries (PT Tirta Makmur Perkasa (TMP), PT Buana Distrindo (BDI)) will also be the target for sale indirectly

   Terms of Sale：Detailed terms will be negotiated between the parties

3. Overview of the Target Business

   (1) Company name	PT Asahi Indofood Beverage Makmur
   (2) Registered head office	Jakarta, Indonesia
   (3) Representative	Masatora Kitazaki, President
   (4) Business description	Manufacturing of beverages
   (5) Capital amount	1,210bn IDR (10.2bn JPY ) ※
   (6) Established	September, 2012
   (7) Current ownership	AGHSEA (Asahi) 51%, ICBP 49%

   (1) Company name	PT Indofood Asahi Sukses Beverage
   (2) Registered head office	Jakarta, Indonesia
   (3) Representative	Tjhie Tje Fie, President
   (4) Business description	Sale and distribution of beverages
   (5) Capital amount	1,290bn IDR (10.8bn JPY ) ※
   (6) Established	September, 2012
   (7) Current ownership	AGHSEA (Asahi) 49%, ICBP 51%

   ※Calculated at the rate of 1 IDR＝0.0084JPY(As of September 29, 2017)

4. Overview of the negotiating counter party

   (1) Company name	PT Indofood CBP Sukses Makmur Tbk
   (2) Registered head office	Jakarta, Indonesia
   (3) Representative	Anthoni Salim, President and CEO
   (4) Business description	Manufacturing, Sale and distribution of processed food (instant noodles, dairy products, seasonings, snack food, baby food)

5. Schedule

   Signing date of non-binding LOI

   Today

6. Current Capital Structure

AGHSEA ICBP

51%

AIBM

49%

MB＊１

49%

IASB

51%

99.99%

80%

20%

20%

80%

99.99%

PCIB

TSP TMP

BDI

1* MB is abbreviation of PT Multi Bahagia managed by the previous owner of local drinking water company, in which TSP and TMP inherited its asset in 2013