Asahi Group Holdings Ltd · TSE:2502
Asahi — FY2020 Earnings Presentation
40 slides from Asahi's earnings presentation, February 2021
Slide 1: Financial Results Presentation for 2020
Financial Results Presentation for 2020 2020 Overview 2021 Direction February 2021 Copyright © ASAHI GROUP HOLDINGS. All rights reserved.
Slide 2: Executive Summary
Executive Summary 2020 Summary ◆ Revenue down 3%, core operating profit down 21% YoY due to impact of COVID-19 pandemic ・ Negative impact on our strengths expanded, such as Alcohol Beverage Business’s on-premise demand, Soft Drink Business’s vending machine sales, Food Business’s Mintia, etc. ・ Resi
Slide 3: Overview of Medium-Term Management Policy
3 Overview of Medium-Term Management Policy Enhancing “Glocal Value Creation Management” based on Asahi Group Philosophy ◆ Strengthening earnings power by further enhancing added value and earnings structure reform ・Promoting the premiumization strategy by enhancing high- added-value brands in all b
Slide 4: Key Performance Indicator (KPI) Guidelines
Key Performance Indicator (KPI) Guidelines ◆ Key Performance Indicator Guidelines 2017 Result Guidelines from 2018 in 3 years out 2020 Result ・Stable growth from existing businesses Revenue JPY 2,084.9 billion － – Business restructuring + New M&As Core Operating JPY 196.4 billion ・CAGR : mid to high
Slide 5: Financial and Cash Flow Guidelines (Revised in 2021)
Financial and Cash Flow Guidelines （Revised in 2021） ◆ Financial and Cash Flow Guidelines Guidelines from 2021 onward ・FCF: above ¥200.0 billion or higher (annual average) Cash Flow (FCF = operating cash flow – investment cash flow) *Excluding M&A and other business restructuring. Investment for ・FC
Slide 6: Efficiency Improvement Plan in Profit Structure Reforms
Efficiency Improvement Plan in Profit Structure Reforms ◆ Breakdown of efficiency improvement plan 2021-2023 Initiatives 3-year forecast -Improve efficiency of advertisement and sales promotion expenses and production efficiency Alcohol by concentrating on core brands and new value products Beverage
Slide 7: Sustainability Strategy Overview
Sustainability Strategy Overview ◆ Integrating sustainability in our management Initiatives and results for 2020 Basic Policy and Vision on Sustainability Jan. 31 Issued IARD Joint Statement Jul. 6 Formulated Basic Policy and Vision on Sustainability, renewed material issues, built promotion framewo
Slide 8: Reference: Material issues (Environment)
Reference: Material issues (Environment) ◆ Response to climate change: Aiming for zero CO2 emissions by 2050 with “Asahi Carbon Zero” Updated “Asahi Carbon Zero” targets ＜Japan＞ ・Expanding use of “green electricity” to production of 2030 emission reduction Asahi Super Dry in 500 ml cans target revis
Slide 9: Reference: Material issues (Community)
Reference: Material issues (Community) ◆ Strengthening “Sustainable Community” Initiatives Revitalizing connections between people and 【Major initiatives】 their communities that have been weakened by economic development, COVID-19, etc. ＜Italy: Birra Peroni＞ To support farmers, “Campus Peroni” proje
Slide 10: Reference: Material issues (Responsible Drinking)
Reference: Material issues (Responsible Drinking) Global Slogan：Responsible Drinking Ambassador ◆ To eliminate harmful drinking and generate new drinking opportunities, we promote non-alcohol beverage strategies across the entire Group. As a signatory to the IARD, an international NPO, we work toget
Slide 11: Overview of Business for 2020 / Business Strategy for 2021
Overview of Business for 2020 Business Strategy for 2021
Slide 12: Financial Results Highlights (constant currency basis)
Financial Results Highlights (constant currency basis) ◆ Core operating profit for 2020 decreased by 21.1% due to the spread of COVID-19. (constant currency basis) ・Alcohol： YoY decline in revenue and profits due to the sales decrease mainly in the on-premise channel, despite promoting sales for the
Slide 13: Financial Results Highlights (actual currency basis)
Financial Results Highlights (actual currency basis) ＜Revenue and Core operating profit （actual currency basis）＞ (JPY billion) 2020 2021 forecast YoY (Amount / %) Against Target YoY (Amount / %) Alcohol Beverages Business 758.3 - 128.6 - 14.5% - 7.3 782.5 35.5 4.8% Soft Drinks Business 353.4 - 23.5
Slide 14: Operating Profit/Profit attributable to owners of parent
Operating Profit/Profit attributable to owners of parent (JPY billion) 2020 2021 forecast YoY (Amount / %) Against Target YoY (Amount / %) Revenue 2,027.8 - 61.3 - 2.9% 20.8 2,296.0 268.2 13.2% Core operating profit 167.8 - 45.1 - 21.2% 20.8 217.5 49.7 29.6% Adjustment item - 32.7 - 21.1 - - 9.7 - 1
Slide 15: Statement of Financial Position and Statement of Cash Flow
Statement of Financial Position and Statement of Cash Flow (JPY billion) 2020 2021 forecast YoY (Amount / %) Against Target YoY (Amount / %) Total Assets 4,439.4 1,298.6 41.3% 105.4 4,320.0 - 119.4 - 2.7% Total Equity 1,517.8 269.5 21.6% 313.8 1,522.0 4.2 0.3% Interest-bearing debt 1,823.6 880.4 93.
Slide 16: COVID-19 Impacts (by Region)
COVID-19 Impacts (by Region) ◆Monthly Beer Sales in the Key Businesses 【Domestic Alcohol Business】 30% 【European Business】 【Australian Existing Business *Beer-type beverages value basis *Volume basis and CUB】*Volume basis Annual value YoY in 2020：▲15.7％ Annual volume YoY in 2020 ：▲6％ Annual volume Y
Slide 17: Overview and Direction for Alcohol Beverages Business
Overview and Direction for Alcohol Beverages Business (JPY billion) 2020 2021 forecast YoY (Amount / %) Against Target YoY (Amount / %) Revenue 758.3 - 128.6 - 14.5% - 7.3 782.5 35.5 4.8% Core OP 80.4 - 25.1 - 23.8% 0.1 87.0 4.0 4.9% 2020 Overview ◆ Promoted prioritization of investment in core bran
Slide 18: Initiatives for Asahi Super Dry
Initiatives for Asahi Super Dry ◆ Initiatives for Asahi Super Dry Invigoration of Asahi Super Dry and enhancement of brand value by offering the highest levels of quality and new consumption opportunities ・ Off-premise: Strengthen appeal of beer’s great taste and enjoyableness through new containers
Slide 19: Initiatives for Other Products than Beer
Initiatives for Other Products than Beer ◆ New genre standard brands ◆ Zero sugar brands Clear Asahi: Strengthen year-round sales promotion Style Free: In response to increased consumer health Asahi THE RICH: Increase promotional communications consciousness, strengthening sales promotion via digita
Slide 20: Overview and Direction for Soft Drinks Business
Overview and Direction for Soft Drinks Business (JPY billion) 2020 2021 forecast YoY (Amount / %) Against Target YoY (Amount / %) Revenue 353.4 - 23.5 - 6.2% - 2.6 372.4 19.1 5.4% Core OP 27.8 - 5.6 - 16.9% 1.6 29.5 1.7 6.3% 2020 Overview ◆ Improved category mix with focus on bolstering carbonated b
Slide 21: Soft Drinks Business
Soft Drinks Business ◆ Initiatives for Carbonated drinks Aiming to achieve further growth and take on Growth continues to outpace the market new challenges, leveraging the strength of - MITSUYA and WILKINSON set new records for centenarian brands sales volume Jan.-Dec. - Developing products and mark
Slide 22: Overview and Direction for Food Business
Overview and Direction for Food Business (JPY billion) 2020 2021 forecast YoY (Amount / %) Against Target YoY (Amount / %) Revenue 123.5 - 5.5 - 4.2% - 1.1 128.7 5.2 4.2% Core OP 11.0 - 2.7 - 19.9% 0.1 11.3 0.3 2.8% 2020 Overview ◆ Promoted marketing suited to health-conscious lifestyles and stay-at
Slide 23: Food Business
Food Business ◆ Initiatives of Mintia Mintia" in the age of new lifestyles New products for new lifestyles -Reforming into “No. 1 brand for refreshing the mind” -Special products for wearing masks -Launch of Food with Nutrient Function Claims Value that will continue Essential items for the mind of
Slide 24: Overview and Direction for Europe Business
Overview and Direction for Europe Business *constant currency basis (based on previous year's FX rates) (JPY billion) 2020 2021 forecast YoY (Amount / %) Against Target YoY (Amount / %) Revenue 352.0 - 36.3 - 9.3% 3.5 481.2 70.2 17.1% Core OP 59.6 - 18.1 - 23.3% 2.9 71.6 11.3 18.7% 2020 Overview ◆ G
Slide 25: Europe Business
Europe Business ◆ 2020 Results ※constant currency basis ◆ 2021 Forecast ※constant currency basis ＜Europe Business（Before integration）＞ ＜Europe Business（After integration ）＞ Against khl、million Euro 2020 Result YoY*2 khl、million Euro 2021 Target YoY*2 Target*3 Sales Volume 39,964 △ 6% 0% Sales Volume
Slide 26: Reference: COVID-19 Impacts (Europe)
Reference: COVID-19 Impacts (Europe) 【Czech】 *Volume basis On-premise ratio: mid-double digit 【Poland】 *Volume basis On-premise ratio: mid single digit 10% Annual volume YoY in 2020 ：▲7％ Annual volume YoY in 2020 ：▲5％ 10% 0% Mar. Apr. May Jun. Jul. Aug. Sep. Oct Nov Dec 0% Mar. Apr. May Jun. Jul. Au
Slide 27: Overview and Direction of Oceania Business
Overview and Direction of Oceania Business *constant currency basis (based on previous year's FX rates) (JPY billion) 2020 2021 forecast YoY (Amount / %) Against Target YoY (Amount / %) Revenue 344.0 165.2 92.4% 26.8 447.7 108.6 32.0% Core OP 33.2 17.9 117.7% 9.4 70.3 37.3 113.3% 2020 Overview ◆ Int
Slide 28: Oceania Business
Oceania Business ◆ Break down of Oceania Business <Revenue and Core OP *constant currency basis (based on previous year's FX rates)> (JPY billion) 2020 2021 forecast YoY (Amount / %) 予想比 YoY (Amount / %) Existing business 178.7 - 0.1 - 0.1% - 2.3 - - - CUB business (from June 2020) 165.3 165.3 - 29.
Slide 29: Creating Synergies in Oceania Business
Creating Synergies in Oceania Business ◆ Efforts and Targets for Synergy Creation ＜Top-line synergies＞ Growth opportunities to provide full multi-beverage solutions across alcohol and non-alcohol (including post-mix) in key channels and customers Expanding our presence, especially in the super-premi
Slide 30: REFERENCE Overview of Financial Results for 2020 & Full Year Forecasts for 2021
REFERENCE Overview of Financial Results for 2020＆ Full Year Forecasts for 2021 * The effects of change from 1 to 5 below resulting from business reorganization effective January 1, 2021 were reflected in figures from the beginning of 2021 and comparable previous year’s results in 2020. 1 We transfer
Slide 31: Alcohol Beverages Business (Revenue of Beer-typed/Sales Volume by Brands)
Alcohol Beverages Business (Revenue of Beer-typed/Sales Volume by Brands) <Sales Volume by Brands> (Millions of cases) <Market Trend> (Volume basis) 2020 2021 forecast 2020 2021 YoY (Amount / %) Against Target YoY (Amount / %) YoY Est. YoY Super Dry 65.17 - 18.38 - 22.0% - 1.23 71.00 5.83 8.9% Beer
Slide 32: Alcohol Beverages Business (Revenue)
Alcohol Beverages Business (Revenue) <Revenue> (JPY billion) 2020 2021 forecast YoY (Amount / %) Against Target YoY (Amount / %) Asahi Breweries Revenue 745.2 - 118.2 - 13.7% - 9.1 780.5 35.3 4.7% Other/elimination in segment 13.1 - 10.4 - 44.3% 1.8 1.9 0.2 10.5% Revenue total 758.3 - 128.6 - 14.5%
Slide 33: Alcohol Beverages Business (Core OP)
Alcohol Beverages Business (Core OP) <Core Operating Profit> (JPY billion) 2020 2021 forecast YoY (Amount / %) Against Target YoY (Amount / %) Change in sales, category and container mix - - 38.5 - 4.0 - 17.5 Cost reduction in manufacturing - 1.9 - 0.4 - 4.8 Cost increase in manufacturing - - 2.8 -
Slide 34: Soft Drinks Business (Sales Volume)
Soft Drinks Business (Sales Volume) <Sales Volume> (Millions of cases) <Market Trend> 2020 2021 forecast 2020 2021 forecast YoY (Amount / %) Against target YoY (Amount / %) YoY YoY Carbonated drinks 78.20 5.22 7.2% - 0.51 81.59 3.39 4.3% Approx. -4％ - Lactic acid drinks 43.79 - 5.08 - 10.4% - 1.21 4
Slide 35: Soft Drinks Business (Core OP)
Soft Drinks Business (Core OP) <Core Operating Profit> (Millions of cases / JPY billion) 2020 2021 forecast YoY (Amount / %) Against Target YoY (Amount / %) Sales Volume Total 248.67 - 16.47 - 6.2% - 7.13 262.00 13.33 5.4% Revenue Total 353.4 - 23.5 - 6.2% - 2.6 372.4 19.1 5.4% Change in sales, cate
Slide 36: Food Business (Revenue/Core OP)
Food Business (Revenue/Core OP) <Revenue> (JPY billion) 2020 2021 forecast YoY (Amount / %) Against Target YoY (Amount / %) Asahi Group Foods 112.4 - 5.3 - 4.5% - 0.9 128.4 5.2 4.2% Other / elimination 11.1 - 0.2 - 1.9% - 0.2 0.3 0.0 15.1% Revenue 123.5 - 5.5 - 4.2% - 1.1 128.7 5.2 4.2% <Core Operat
Slide 37: Overseas Business (Revenue constant currency basis)
Overseas Business (Revenue ※constant currency basis) <Revenue (including liqour tax) *constant currency basis (based on previous year's FX rates)> (JPY billion) 2020 2021 forecast YoY (Amount / %) Against Target YoY (Amount / %) Europe business 352.0 - 36.3 - 9.3% 3.5 481.2 70.2 17.1% Oceania busine
Slide 38: Overseas Business (Core OP constant currency basis)
Overseas Business (Core OP ※constant currency basis) <Core OP *constant currency basis (based on previous year's FX rates)> (JPY billion) 2020 2021 forecast YoY (Amount / %) Against Target YoY (Amount / %) Europe business 59.6 - 18.1 - 23.3% 2.9 71.6 11.3 18.7% Oceania business * 33.2 17.9 117.7% 9.
Slide 39: Reference: FX Impact
＜Reference＞FX Impact ◆ FX impact on P/L (result and forecast) ◆ FX sensitivity for 2021 (JPY billion) <Impact of 1 yen change (full year)> 2020 2021 (JPY billion) Business Currrency Results Forecast Currency Assumption Revenue Core OP Europe Euro -0.4 4.4 Euro 123.0 ±3.9 ±0.6 Oceania AUD -4.9 20.1 A
Slide 40: 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