Asahi Group Holdings Ltd · TSE:2502
Asahi — FY2010 Earnings Presentation
18 slides from Asahi's earnings presentation, February 2011
Slide 1: Asahi Breweries, Ltd. February 2011
February 2011 Asahi i ASAHI BREWERIES, LTD.
Slide 2: Contents
Contents Overview of 2010 Financial Results... ce ce cece sees 1 2011 Performance Forecast....... 0.0.0. etree QD Overview of 2010 and Future Strategy................ cee ceee cece eeeeeeee cence 3 2010 Beer-type Beverages Sales Performance............::ccceeceeeees 4 2011 Beer-type Beverages Market
Slide 3: Overview of 2010 Financial Results
Overview of 2010 Financial Results Exceeded sales and profit growth targets in Medium-Term Management Plan 2012’ s inaugural year (billions of yen) 2010 2009 Operating income mam Net income —g—Net sales Result Result Inc./Dec. [Alcoholic Beverages 963.3 985.5 -22.2 Soft drinks YoY Overseas Net Sales
Slide 4: 2011 Performance Forecast
2011 Performance Forecast Pursuing truly global group management with the Alcoholic Beverages Business as a cash cow — (billions of yen) 2011 2010 _ Operating income mum Net income —&—Net sales Target Result e/Dec. YoY |Alcoholic Beverages 9575 963.3 58 A% Soft drinks 327.8 315.2 12.6 4% 107.6 100.5
Slide 5: Overview of 2010 and Future Strategy
-&_ Overview of 2010 and Future Strategy @ Achieved profit targets by virtue of profit structure reforms (1) Boosted efficiency in all Group divisions, particularly the Alcoholic Beverage Business (2) Finalized decision to restructure breweries @ Expanded growth foundations of Group businesses (Soft
Slide 6: 2010 Beer-type Beverages Sales Performance
2010 Beer-type Beverages Sales Performance Asahi @ Beer-type beverages: taxable sales volume (Jan — Dec 2010) (milion cases) Industry total Asahi Breweries Cases YoY Composition Cases YoY Market share | Change Beer 230.48 (3.6)% 50.2% 116.65. (3.6)% 50.6% 0.0% Happoshu 78.07 (17.7)% 17.0% 18.75 (25.
Slide 7: 2011 Beer-type Beverages Marketing Strategy
%. 2011 Beer-type Beverages Marketing Strategy Asahi @ Beer-type Beverages Marketing Strategy Hf Build portfolio of products that generate constant revenue streams + Strengthen and develop key brands in each category/genre, with a central focus on Super Dry and Clear Asahi @ Develop products designe
Slide 8: Beer-type Beverages Brand Strategy
Joog i as] 3 5 B = O1U93 MON Continue promoting our product to our core demographics and step up promotion to emerging customer segments (younger people, women) TD Rator~'-19-.} EXTR Continuation of the Refreshingly Sustainable Project Wider promotion of [= the Extra Cold Increased quality from earl
Slide 9: Other Alcohol Category Overview and Future Strategy
Other Alcohol Category Overview and Future Strategy Asahi @ Overview of 2010 and Strategy for 2011 @ Sales expanded in response to launch of highball cans, beer-flavored beverages, and other products (1) Profitability improved on strengthening of core brands (2) Expanded market presence for W-Zero @
Slide 10: Profit Structure Reform in Alcoholic Beverages Business
@ Overview of 2010 @ Efficiency gains totaling ¥13.0 billion @ Decided to consolidated Kansai-region breweries (slated for September 2011) - From 9 breweries to 8 breweries (boost capacity utilization to around 97%) @ 2011 Plan @ Reduce in manufacturing (by ¥3.1bn) + Raw material, Improve production
Slide 11: Asahi Soft Drinks
Asahi Asahi Soft Drinks @ Growth strategy @ Record-high net sales for 8th consecutive year on impact of summer heat wave and newly launched TeaO and Rokko no Oishii Mizu Aim for 10% market share and strength three key brands as well as TeaO, mineral water offerings, Rokujo Mugi-cha, and Wilkinson @
Slide 12: Food Business Overview and Strategy
Asahi # ©_ Food Business Overview and Strategy <Past Performance and 2011 Plan> Asahi Food and Healthcare E WAsahi Food andHealthcare —™Wakodo - a — : © @Amano Jitsugyo EB @Sanwell @ Steady growth of key brands; efficiency gains in production costs etc. —O— Operating margin (Food total) *Expand inve
Slide 13: 2010 Overseas Business
‘fi 2010 Overseas Business A E A * Chinese largest packed food manufacturing and Ting Hsin Holding distribution group Tingyi-Asahi Beverages Holding * No. 2 Chinese soft drinks manufacture Tsingtao Brewery * No.2 Chinese beer manufacture Yantai Beer Tsingtao Asahi 51% | 4 Hangzhou Xihu Beer Asahi 55
Slide 14: Australian Soft Drinks Business Overview and Strategies
australia m@ Schweppes Australia Past Performance and Plan schweppes @ 2010 Overview + Successfully delivered revenue & profit growth in 2010 *Local currency basis, full-year figures (AUD milons) (AUD milions) © B Operating income —OmeNet sales (in AUD) through pricing and expansion of higher sales
Slide 15: Chinese Beer Business Overview and Strategy
Chinese Beer Business Overview and Strategy Asahi @ 2010 Overview @ Improve profitability through, e.g., contracted production of Tsingtao brand products at all breweries @ Tsingtao Brewery posted strong performance, boosting our income from equity-method affiliates *Local currency basis, full-year
Slide 16: Chinese Soft Drink Business Overview and Strategy
Asahi Mi Tingyi-Asahi Beverages Holding’ s Performance (Soft Drink Segment) *Local currency basis, full-year figures Summary for Jan—Sep 2010 au RT Net sales sat @ Net sales (+41%), EBIT (+28%) + Substantial growth in tea and fruit juice reflecting 300 impact of promotional campaigns + Streamlined a
Slide 17: Medium-Term Management Plan 2012
Asahi @ Medium- and long-term sales guidelines 25,000 New investments Long-term Vision 2015 Existing business y 20.000 |- @ Aim to achieve sales of ¥2-2.5 trillion and join the ranks of the top-10 global food companies - Achieve stable growth of existing businesses and expand investment in domestic
Slide 18: Asahi
Asahi LDH. DrbH), Information in this material is not intended to solicit sale or purchase of shares in Asahi Breweries. The views, estimates and other information expressed in this document are based on the company's judgment at the time of publication, and no guarantees are provided regarding the