Asahi Group Holdings Ltd · TSE:2502
Asahi — H1 2018 Earnings Presentation
32 slides from Asahi's earnings presentation, August 2018
Slide 1: Financial Results Presentation for H1 2018
Financial Results Presentation for H1 2018 H1 2018 Summary 2018 Forecast August 2018 Copyright © ASAHI GROUP HOLDINGS. All rights reserved.
Slide 2: Overview of Financial Results for H1 2018 & Full Year Targets
Overview of Financial Results for H1 2018 ＆ Full Year Targets
Slide 3: Financial Results 2018 Highlight
Financial Results 2018 Highlight (JPY billion) 2018 H1 (6months ended June 30) 2018 Revised Target (announced on August 2) Summary of Statement of Profit or Loss Against Inc./Dec. YoY Against Target Inc./Dec. YoY Initial Target Alcohol Beverages Business 420.6 - 19.5 - 4.4% - 19.7 942.6 - 15.8 - 1.6
Slide 4: Alcohol Beverages Business (Sales Volume of Beer-type)
Alcohol Beverages Business (Sales Volume of Beer-type) <Sales Volume> (Millions of cases) ＜Market Total＞ 2018 H1 (6months ended June 30) 2018 Revised Target (announced on August 2) Jan. - Jun. Annual Forecast Against Inc./Dec. YoY Against Target Inc./Dec. YoY Initial Target YoY YoY Beer 41.53 - 3.18
Slide 5: Alcohol Beverages Business (Revenue)
Alcohol Beverages Business (Revenue) <Revenue> (JPY billion) 2018 H1 (6months ended June 30) 2018 Revised Target (announced on August 2) Against Inc./Dec. YoY Against Target Inc./Dec. YoY Initial Target Beer 228.9 - 14.3 - 5.9% - 12.4 533.8 - 12.2 - 2.2% - 13.8 Happoshu 25.4 - 2.1 - 7.6% - 0.7 54.6
Slide 6: Alcohol Beverages Business (Core Operating Profit)
Alcohol Beverages Business (Core Operating Profit) <Core Operating Profit> (JPY billion) 2018 H1 (6months ended June 30) 2018 Revised Target (announced on August 2) Against Inc./Dec. YoY Against Target Inc./Dec. YoY Initial Target Beer-type - Decrease in sales volume - - 6.3 - 6.6 - - 4.4 - 7.0 Chan
Slide 7: Soft Drinks Business (Sales Volume)
Soft Drinks Business (Sales Volume) <Sales Volume> (Millions of cases) <Market Total> 2018 H1 (6months ended June 30) 2018 Revised Target (announced on August 2) Jan. - Jun. Against Inc./Dec. YoY Against Target Inc./Dec. YoY Initial Target YoY Carbonated drinks 31.67 2.36 8.0% 0.99 66.33 4.26 6.9% 0
Slide 8: Soft Drinks Business (Core Operating Profit)
Soft Drinks Business (Core Operating Profit) <Core Operating Profit> (JPY billion / Millions of cases) 2018 H1 (6months ended June 30) 2018 Revised Target (announced on August 2) Against Inc./Dec. YoY Against Target Inc./Dec. YoY Initial Target Sales Volume Total 124.97 3.17 2.6% 1.43 263.50 7.52 2.
Slide 9: Food Business (Revenue / Core Operating Profit)
Food Business (Revenue / Core Operating Profit) <Revenue> (JPY billion) 2018 H1 (6months ended June 30) 2018 Revised Target (announced on August 2) Against Inc./Dec. YoY Against Target Inc./Dec. YoY Initial Target Asahi Group Foods 62.3 1.3 2.2% 1.3 126.3 0.2 0.2% - Other / elimination - 0.0 0.0 - -
Slide 10: Overseas Business (Revenue)
Overseas Business (Revenue) <Revenue> (JPY billion) 2018 H1 (6months ended June 30) 2018 Revised Target (announced on August 2) Against Inc./Dec. YoY Against Target Inc./Dec. YoY Initial Target Europe business 229.8 87.2 61.1% 20.6 449.5 75.9 20.3% 10.6 Oceania business 81.0 5.0 6.6% - 3.9 177.2 4.0
Slide 11: Overseas Business (Core Operating Profit)
Overseas Business (Core Operating Profit) <Core Operating Profit> (JPY billion) 2018 H1 (6months ended June 30) 2018 Revised Target (announced on August 2) Against Inc./Dec. YoY Against Target Inc./Dec. YoY Initial Target Europe business 35.7 19.8 123.9% 6.1 76.5 25.5 49.9% 3.3 Oceania business 3.8
Slide 12: Europe Business (Revenue / Core Operating Profit)
Europe Business (Revenue / Core Operating Profit) <Revenue> (JPY billion) 2018 H1 (6months ended June 30) 2018 Revised Target (announced on August 2) Against Inc./Dec. YoY Against Target Inc./Dec. YoY Initial Target Western Europe 71.5 10.6 17.4% 3.5 145.3 10.2 7.6% - Central Europe (from April 2017
Slide 13: Operating Profit / Profit Attributable to Owners of Parent
Operating Profit / Profit Attributable to Owners of Parent (JPY billion) 2018 H1 (6months ended June 30) 2018 Revised Target (announced on August 2) Summary of Statement of Profit of Loss Against Inc./Dec. YoY Against Target Inc./Dec. YoY Initial Target Revenue 1,005.1 67.7 7.2% 7.1 2,140.0 55.1 2.6
Slide 14: Overview of Business Results for H1 2018 & Future Business Strategy
Overview of Business Results for H1 2018 & Future Business Strategy
Slide 15: Executive Summary
Executive Summary Overview of Results for H1 2018 ◆ Finished above target with YoY increase in revenue and profit due to favorable performance of Overseas Business, despite stagnation of Alcohol Beverages Business ・Finished below target in Alcohol Beverages Business due to the market contraction mor
Slide 16: Overview of Alcohol Beverages Business
Overview of Alcohol Beverages Business <Sales Volume> (Millions of cases) H1 Market H2 Revised Forecast Market Full Year Revised Forecast Market YoY YoY YoY YoY YoY YoY Beer 41.53 - 7.1% -6～7％ 54.33 - 1.7% around -4% 95.85 - 4.1% around -5% Happoshu 6.67 - 6.5% around -8% 7.67 - 2.5% -4～5％ 14.35 - 4
Slide 17: Overview of Alcohol Beverages Business (Beer-Type)
Overview of Alcohol Beverages Business (Beer-Type) ◆ Initiatives for Revitalizing Beer Market Full Development of <Value Improvement of Super Dry> European Premium Brands Shunrei Karakuchi Product for Marketing Activities toward Revitalizing Activities for Young Generation Tokyo Olympics / Paralympi
Slide 18: Overview of Alcohol Beverages Business (Other than Beer-Type)
Overview of Alcohol Beverages Business (Other than Beer-Type) ◆ Revenue and Composition Trend of Categories other than Beer-type (JPY billion) Non-Alcohol Shochu Wine RTD Whiskey Note: Revenue figures are based on J GAAP ◆ RTD: Revenue and Market Share Trend ◆ Non-Alcohol Beer Taste Beverages: (JPY
Slide 19: Overview of Soft Drinks Business
Overview of Soft Drinks Business ◆ Revenue and Core OP margin Trend ◆ Wilkinson and Calpis Sales Volume Trend (Million cases) (CAGR) ＋4.9％ ＋16.5％ <J GAAP> <IFRS> ◆ Main Profitability Improvement Driver ◆ Facilitation of Health Field 2014 CAGR 2018 (E) Contribution for tackling the social issues link
Slide 20: Overview of Food Business
Overview of Food Business ◆ Revenue and Core OP margin Trend ◆ MINTIA Revenue and Market Share Trend (JPY billion) (CAGR) ＋10.0％ <J GAAP> <IFRS> Source : Intage ◆ Revenue Trend of Core Brands (JPY billion) Freeze Dried Miso Soup Baby Food Infant Formula Dear Natura MINTIA 17 Copyright © ASAHI GROUP
Slide 21: Western Europe Business
Western Europe Business ◆ 2018 H1 Results and 2018 Forecast (excluding foreign exchange impacts associated with conversion of local currencies into Euro) khl、million Euro 2018 H1 Against 2018 Against YoY*2 YoY*2 Results Target *3 Revised Target Initial Budget Sales Volume 4,462 8% 3% 9,119 4% - Net
Slide 22: Central Europe Business
Central Europe Business ◆ 2018 H1 Results and 2018 Forecast (excluding foreign exchange impacts associated with conversion of local currencies into Euro) khl、million Euro 2018 H1 YoY*2 Against 2018 YoY*2 Against Results （6 months basis) Target *3 Revised Target （Full year basis) Initial Target Sales
Slide 23: Creating Synergies
Creating Synergies ◆ Progress of Revenue Synergy - Asahi Super Dry development in Europe - Driving premiumisation by new marketing strategy ◆ Favorable performance in Italy, UK, and France (from Jan.) ◆ Starting sales in all home markets including Netherlands and Czech (until Jun.) - European brands
Slide 24: Overview of Oceania Business
Overview of Oceania Business ◆ Revenue and Core OP Margin Trend ◆ Cost Reduction (including integration synergies): (based on local currency: AUD) Result & Forecast 2018 2016-2018 (JPY billion) 2016 2017 forecast 3year forecast Cost 1.8 3.2 1.0 Over 5.0 Reduction ◆ Initiatives in Growing Categories
Slide 25: ESG Initiatives
ESG Initiatives ◆ Initiatives for ESG Reinforcement and Progress of Major Initiatives Strategy for Sustainability <Progress of Initiatives> <Expand Positive Impact> ・Expansion of agricultural material leveraging beer yeast cell walls Create corporate value with a focus on social issues ・Enhancement
Slide 26: Initiatives for Environment
Initiatives for Environment ◆ Challenge for “Asahi CARBON ZERO” <Medium to Long Term Targets to Reduce CO2 emissions> 2015 2030 (Target) 2050 (Target) CO2 emissions amount compared with 2015 Base year for Aim for zero 30% reduction annual Scope 1, 2 (challenge target) CO2 emissions emission amounts
Slide 27: Initiatives for Governance Reform
Initiatives for Governance Reform ◆ Changes in Governance Structure Red Letters : Changed Items <Nomination Committee> <Compensation Committee> Outside Officers Outside Officers 2→3 2→3 2017 2018 2017 2018 Naoki Izumiya ◎ Naoki Izumiya ○ Katsutoshi Katsutoshi ○ ○ Takahashi Takahashi Akiyoshi Koji ○
Slide 28: Review of Medium-Term Management Policy Guidelines
<Reference> Review of Medium-Term Management Policy Guidelines ◆ Key Performance Indicator (KPI) Concept and Guidelines FY2017 Guidelines for next 3 years out JPY 2,084.9 ・Stable growth from existing businesses – Business restructuring + Revenue billion New M&As JPY 196.4 Core OP ・CAGR : mid to high
Slide 29: Review of Financial and Cash Flow Strategy
<Reference> Review of Financial and Cash Flow Strategy ◆ Financial and Cash Flow Strategy and Guidelines Guidelines for next 3 years out ・FCF : above 140.0 JPY billion (annual average) Cash Flow ・impact of business restructuring : approx. 100.0 JPY billion (FY2018 forecast) ・Net debt / EBITDA : arou
Slide 30: Earnings Structure Reform and Sales Promotion Expenses in Asahi Breweries
<Reference> Earnings Structure Reform and Sales Promotion Expenses in Asahi Breweries ◆ Progress of Earnings Structure Reform 2016 2017 2018 2016-2018 (JPY billion) Initiatives Results Results Forecast 3 year Target Reduce cost of raw materials such as malt and auxiliary materials Alcohol Beverages
Slide 31: Impact of Foreign Exchange Rate
<Reference> Impact of Foreign Exchange Rate ◆ Key Currencies and the Company’s ◆ Impact of Foreign Exchange Rates on Average Exchange Rates Trend Statement of Profit or Loss (JPY billion) 2018 H1 2018 Reference Business Currency Against Against YoY Initial Target YoY Initial Target Europe Euro 166 6
Slide 32: Information in this material is not intended to solicit sale or purchase of shares
Information in this material is not intended to solicit sale or purchase of shares in Asahi Group Holdings. 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 accuracy of s