Asahi Group Holdings Ltd · TSE:2502
Asahi — Asahi Breweries — FY2009 Earnings Presentation
24 slides from Asahi's earnings presentation, February 2010
Slide 1: February 2010
February 2010 Asabi 2&9 ASAHI BREWERIES, LTD.
Slide 2: Contents
Contents Overview Of 2009: Results i.cci.cicicciiicinarnsinaccnncnciiministeninivinernmntunnniceneiitetats Summary of 2009 Group Operations Long-term Vision 2015 .. Overview of Medium-term Management Plan 2012 Medium-Term Management Plan 2012 (Quantitative Targets) 2010 Performance Forecast 2009 Bee
Slide 3: Overview of 2009 Results
O i f 2009 R It verview g esults Operating income m™=mNetincome —#Netsales (billions of yen) 1,446.4 1,430.0 1,464.1 1,462.7 1472.5 2005 2006 2007 2008 2009 (billions of yen) 2009 2008 Inc. Results Results Dec. [Alcoholic beverages 985.5 1,019.6 34.1 3% 296.9 296.6 40.3 40% 96.3 81.7 +146 +18% 43.3
Slide 4: Summary of 2009 Group Operations
Summary of 2009 Group Operations CU EY I Expanded Alcoholic Beverage and Soft Drinks Businesses’ international networks «Strengthened business foundation by acquisition of Schweppes Australia and investment in Tsingtao Brewery @ Executed profit-structure reforms ahead of plan + Optimized production
Slide 5: Long-term Vision 2015
Long-term Vision 2015 Delight consumers’ taste buds with nature’ s SouMy- - Pursue customer satisfaction by capitalizing on strong manufacturing capabilities that utilize natural ingredients. - Gain consumers’ trust by all-inclusively upgrading product quality to a world-class level and tailoring pr
Slide 6: Overview of Medium-term Management Plan 2012
$_ Overview of Medium-term Management Plan 2012 Asahi | We aim to boost existing businesses profitability to achieve our @ We aim to increase operating margin to around 8% (12% based on sales net of alcohol taxes) «In the Alcoholic Beverage Business, we aim to achieve an operating margin of at least
Slide 7: Quantitative targets and sales guidelines for existing businesses
Quantitative targets and sales guidelines for existing businesses (billions of yen) 2012 2009 ce id U Guidelines Results Lisle cb Alcoholic beverages 975.0 985.5 -10.5 Approx. £0% (547.0) (534.5) (12.5) = Soft drinks 335.0 296.9 38.1. Approx. 4% Food 115.0 96.3 18.7 Overseas 105.0 78.5 26.5 Approx.
Slide 8: 2010 Performance Forecast
(billions of yen) 2010 2009 Inc Targets Results Dec. 971.5 985.5 -14.0 1% 308.9 296.9 412.0 +4% 103.1 YoY Operating income MMMM Net income —&—Sales (billions of yen) 14641 14,627 14725 14,464 945 6 887 870 828 Equity metod income 448 448 Ordinary income oe «=O BEE 09% 2010(E) | BREWERIES,LTD. All ri
Slide 9: 2009 Beer-type Sales
E &. 2009 Beer-type Sales lf Beer-type beverages: taxable sales volume (Jan — Dec 2009) Industry total YoY changes (millions of cases) Asahi Breweries Cases YOY changes | Market share Beer 6.7% 50.6% 120.98 6.4% 50.6%| +0.1% Happoshu 94.88 -15.6% 20.1% 25.27 13.4% 26.6%] +0.7% New genre 29.3% 30.95
Slide 10: 2010 Beer-type Sales Targets
_ 2010 Beer-type Sales Targets @ 2010 Marketing policies Strengthen our presence Offer new valle Stimulate latent demand TilGWieatbianalneroars propositions inthe for beer 2 increasingly diverse new product categories genre marketsegment i 2010 Sales targets by brand (milions of cases) @ 2010 Market
Slide 11: Stimulate Latent Demand for Beer
Stimulate Latent Demand for Beer We will stimulate demand among potential users in addition to increasing loyalty among existing users Increasing loyalty among existing users Stimulate late ers’ demand Refreshingly Vancouver Olympics sales promotions Proposals of new ways to drink Super Dry Sustaina
Slide 12: Strengthen Presence in Low-Carb and No-Carb Product Categories
Strengthen Presence in Low-Carb and No-Carb s Product Categories We will intensify advertising and sales promotion activity emphasizing "great taste and zero carbs" /*\ ray iN * 20 y ‘e “eee Consumer campaign linked A, ad ve —_ eogl oats ¥ December 2009 to TV commercials sy i / 21.3% Wises BREFRESTE
Slide 13: Offer New Value Propositions in the Increasingly Diverse New Genre Market Segment
Offer New Value Propositions in the Increasingly &. Diverse New Genre Market Segment bi Clear Asahi . Advertising and sales promotion campaign emphasizing that Asahi Clear was the top-selling barley-based new genre beer for two straight years New genre market shares Consumer campaign =O Sov-based =
Slide 14: General Alcoholic Beverages Results and Strategy
General Alcoholic Beverages Results and Strategy Asahi @ Overview of 2009 + Core brand sales grew briskly, with Kanoka and Black Nikka Clear Blend’s unit sales growing year on year for 16 consecutive years and 30 consecutive months, respectively + Ultra-low-calorie Slat, launched in February 2009, s
Slide 15: Profit Structure Reform in Alcoholic Beverages Business
Asai &. Profit Structure Reform in Alcoholic Beverages Business Medium-term Management Plan 2012: Profit Structure Reform Targets @ We intend to realize ¥25-30 billion in cost savings from structural reform over 3 years in the aim of realizing an operating margin of at least 10% (18% based on sales
Slide 16: Soft Drinks Business: 2009 Overview
Soft Drinks Business: 2009 Overview Growth Strategies @ Market share by category Carbonated beverages 17.6% 16.3% 16.0% @ We achieved record unit sales for a 7th 14.8% - > nae . consecutive year through intensive investment in 13.3% 5 , 12.1% RTD Coffee our core Mitsuya and Wonda brands | 91% 94% @
Slide 17: Soft Drinks Business: 2010 Policies
Soft Drinks Business: 2010 Policies We aim to boost profitability and develop strong brands to achieve a 10% share by 2012 @ Growth Strategies + We aim to increase Mitsuya sales to 40 million cases by continuing to emphasize "transparent value" and cultivating All Zero. - We aim to further strengthe
Slide 18: Food Business's Results and Strategies
Asahi © Food Business’s Results and Strategies @ Past performance and 2010 plan sation oryen Asahi Food and Healthcare Co., Ltd. _ B= -SAsahi Food and Healthcare = -SWakedo = Achieved above-target sales growth by strengthening core brands Amano Jitsugyo = Sanwell and expanding direct marketing opera
Slide 19: Overseas Business's Results and Strategies
achieve profitability Chinese beer business + Operating income improved year on year by virtue of alliance with Tsingtao Brewery f = and progress in improving efficiency i => We will partner with Tsingtao at all breweries and rebuild earnings foundation to Overview of 2309 Yantai Beer Tsingtao Asahi
Slide 20: Tsingtao Brewery's Current Status and Future Course
Tsingtao Brewery’s Current Status and Future Course Asahi i Tsingtao Brewery’s Current Status Teingtao Erewory Pastiyerformance omen ig income MM Net income @ Jan-Sept 2009 sales growth rate a 0 (millions of yuan) Pp g 15,784 *Local-currency basis REED 16,000 i e 44,735 ) 2,000 | Netsales | Operatin
Slide 21: Tingyi-Asahi Beverages Holding's Current Status and Future Course
Tingyi-Asahi Beverages Holding’s Current Status and Future Course Hf Tingyi (Caymans Islands) Holding Corp. Soft Drink Business current Status @ Jan-Sept 2009 sales gross rate *Local-currency basis EBIT Net sales YoY changes +32.8% +19.3% *EBIT: ordinary income - interest expense @ Market shares Tot
Slide 22: Schweppes Australia's Current Status and Future Course
Schweppes Australia’s Current Status and Future Coursegfc ght} @ Schweppes Australia 2009 performance Schweppes Australia past performance (Klin 1,000s) (millions of AUD) Jan-Dec = = Opearating income —=O— Netsdles “Results = YoY | = 1,000 5 80 Sales volume | Jan-Mar Apr-Dec Schweppes 42 113 155. —«
Slide 23: Financial and Cash Flow Policies
_ Financial and Cash Flow Policies roceeds trom asset monetization sive al ¥360 billion or more @ Capital investment (Investment in production and logistics optimization, efficiency improvements, and environmental mitigation) => approx. ¥100 billion (2010: ¥35 billion) @ Form capital/operational all
Slide 24: Asa
Asa LDEHe. bDYrbH), 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 th