Asahi Group Holdings Ltd · TSE:2502
Asahi — H1 2019 Earnings Presentation
26 slides from Asahi's earnings presentation, August 2019
Slide 1: Financial Results Presentation for H1 2019
Financial Results Presentation for H1 2019 H1 2019 Summary 2019 Forecast August 2019 Copyright © ASAHI GROUP HOLDINGS. All rights reserved.
Slide 2: Executive Summary
Executive Summary Overview of Results for H1 2019 ◆ Finished in line with target and YoY increase in profit due to favorable performance of Overseas Business, despite stagnation of Alcohol Beverages Business ・Finished below target in Alcohol Beverages Business due to the beer-type market contraction
Slide 3: Alcohol Beverages Business: Initiatives for Asahi Super Dry
Alcohol Beverages Business: Initiatives for Asahi Super Dry ◆ Enhancing the brand equity of Asahi Super Dry Implementing integrated marketing initiatives for creating new markets with marketing 4P: Appealing coherent messages in advertisement, promotion, and point-of-purchase display <Appeal the cor
Slide 4: Alcohol Beverages Business: Initiatives for New Genre and Other than Beer-type
Alcohol Beverages Business: Initiatives for New Genre and Other than Beer-type ◆ Initiatives for New Genre Clear Asahi Asahi Gokujyo <Kireaji> ・Renewed marketing strategy with ・Revised up the full year forecast from products renewal three million cases to four million cases ・Aiming at increasing cus
Slide 5: Soft Drinks Business Overview
Soft Drinks Business Overview ◆ Activation of 100-years Brands ◆ WILKINSON and CALPIS Sales Volume Trend (Million cases) (CAGR) CALPIS 100 years ＋6.4％ Deliver fun and joy, and smiles for 100 years and more ＋20.4％ MITSUYA WILKINSON 135 years 115 years ◆ Main Profitability Improvement Driver ◆ Facilit
Slide 6: Food Business Overview
Food Business Overview ◆ Revenue and Core OP Margin Trend ◆ Revenue and Market Share Trend in Baby Food (JPY billion) (CAGR) ＋7.6％ <J GAAP> ＜IFRS＞ Source : Intage ◆ Core Brands Revenue Trend (JPY billion) Freeze Dried Miso Soup Baby Food Infant Formula Dear Natura MINTIA Copyright © ASAHI GROUP HOLD
Slide 7: Western Europe Business Overview
Western Europe Business Overview ◆ H1 Results and Full Year Forecast (excluding foreign exchange impacts associated with conversion of local currencies into Euro) khl、million Euro 2019 2019 H1 Against Against YoY*2 Revised YoY*4 Results Target *3 Initial Taget*3 Target Sales Volume 4,665 1% 2% 10,29
Slide 8: Central Europe Business Overview
Central Europe Business Overview ◆ H1 Results and Full Year Forecast (excluding foreign exchange impacts associated with conversion of local currencies into Euro) khl、million Euro 2019 2019 H1 Against Against YoY*2 Revised YoY*4 Results Target *3 Initial Taget*3 Target Sales Volume 16,438 -2% 1% 33,
Slide 9: Globalization of Our Premium Brands
Globalization of Our Premium Brands ◆ Cross-selling initiatives of our global premium brands ◆ Growth Target: CAGR around +10% (3 brands total) ◆ Target Area: Super premium beer markets other than home markets including UK <Jan.-June, 2019 Growth Rate by Brand, on a volume basis> Asahi Super Dry Per
Slide 10: Agreement of Acquisition of CUB Business in Australia
Agreement of Acquisition of CUB Business in Australia ◆ Rationale for Acquisition ・ Expand the global overseas foundation for growth based on AGP and Mid-Term Management Policy ・ Create a global business platform with three core pillars in Japan, Europe and Australia ・ Create synergies with the exis
Slide 11: Performance of Target Business
Performance of Target Business Performance Trend (Note: forex rate 1AUD = JPY75.6 as of July 18 th, 2019) 2017-2019 Unit: Million AUD 2019 forecast 2018 2017 CAGR Net Revenue 2,407 (JPY182.0 billion) 2,294 (JPY173.4 billion) 2,217 (JPY167.6 billion) 4.2% EBIT 1,034 (JPY78.2 billion) 990 (JPY74.8 bil
Slide 12: Financing Plan and Financial Soundness
Financing Plan and Financial Soundness ◆ Rationale and Overview of Financing Plan (Permanent Financing of JPY1.2 trillion) ・ Considering to raise JPY300.0 billion of equity credit attributes in order to secure financial soundness and maintain current credit rating ・ Minimizing dilution for existing
Slide 13: <Reference> 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 (yen) (JPY billion) 2019 H1 2019 Reference Business Currency Against Against YoY Initial Target YoY Initial Target Europe Euro
Slide 14: Overview of Financial Results for H1 2019 & Full Year Targets
Overview of Financial Results for H1 2019 ＆ Full Year Targets
Slide 15: Financial Results for H1 2019 Highlight
Financial Results for H1 2019 Highlight (JPY billion) 2019 H1 (6months ended June 30) 2019 Revised Target (announced on August 1) Summary of Statement of Profit or Loss Against Inc./Dec. YoY Against Target Inc./Dec. YoY Initial Target Alcohol Beverages Business 410.9 - 7.1 - 1.7% - 24.2 902.2 - 11.2
Slide 16: Alcohol Beverages Business (Sales Volume of Beer-type)
Alcohol Beverages Business (Sales Volume of Beer-type) <Sales Volume> (Millions of cases) ＜Market Total＞ 2019 H1 (6months ended June 30) 2019 Revised Target (announced on August 1) Jan. - Jun. Annual Forecast Against Inc./Dec. YoY Against Target Inc./Dec. YoY Initial Target YoY YoY Beer 39.55 - 1.98
Slide 17: Alcohol Beverages Business (Revenue)
Alcohol Beverages Business (Revenue) <Revenue> (JPY billion) 2019 H1 (6months ended June 30) 2019Revised Target (announced on August 1) Against Inc./Dec. YoY Against Target Inc./Dec. YoY Initial Target Asahi Breweries Revenue 400.1 - 6.8 - 1.7% - 23.7 877.6 - 11.7 - 1.3% - 38.4 Other/elimination in
Slide 18: Alcohol Beverages Business (Core Operating Profit)
Alcohol Beverages Business (Core Operating Profit) <Core Operating Profit> (JPY billion) 2019 H1 (6months ended June 30) 2019 Revised Target (announced on August 1) Against Inc./Dec. YoY Against Target Inc./Dec. YoY Initial Target Change in sales, category and container mix - - 1.5 - 8.3 - - 1.5 - 1
Slide 19: Soft Drinks Business (Sales Volume)
Soft Drinks Business (Sales Volume) <Sales Volume> (Millions of cases) <Market Total> 2019 H1 (6months ended June 30) 2019 Revised Target (announced on August 1) Jan. - Jun. Against Inc./Dec. YoY Against Target Inc./Dec. YoY Initial Target YoY Carbonated drinks 35.26 3.59 11.3% 1.78 72.76 5.51 8.2%
Slide 20: Soft Drinks Business (Core Operating Profit)
Soft Drinks Business (Core Operating Profit) <Core Operating Profit> (JPY billion / Millions of cases) 2019 H1 (6months ended June 30) 2019 Revised Target (announced on August 1) Against Inc./Dec. YoY Against Target Inc./Dec. YoY Initial Target Sales Volume Total 127.85 2.88 2.3% 0.28 267.20 1.07 0.
Slide 21: Food Business (Revenue/Core Operating Profit)
Food Business (Revenue/Core Operating Profit) <Revenue> (JPY billion) 2019 H1 (6months ended June 30) 2019 Revised Target (announced on August 1) Against Inc./Dec. YoY Against Target Inc./Dec. YoY Initial Target Asahi Group Foods 56.3 - 0.2 - 0.3% - 1.4 118.0 2.0 1.7% - Other / elimination - 0.0 - 0
Slide 22: Overseas Business (Revenue)
Overseas Business (Revenue) <Revenue> (JPY billion) 2019 H1 (6months ended June 30) 2019 Revised Target (announced on August 1) Against Inc./Dec. YoY Against Target Inc./Dec. YoY Initial Target Europe business 224.5 - 6.5 - 2.8% 0.8 477.7 9.8 2.1% 11.0 Oceania business 74.7 - 6.3 - 7.8% - 2.0 175.0
Slide 23: Overseas Business (Core Operating Profit)
Overseas Business (Core Operating Profit) <Core Operating Profit> (JPY billion) 2019 H1 (6months ended June 30) 2019 Revised Target (announced on August 1) Against Inc./Dec. YoY Against Target Inc./Dec. YoY Initial Target Europe business 38.2 2.4 6.7% 2.2 85.2 3.9 4.9% 0.7 Oceania business 4.1 0.3 8
Slide 24: Europe Business (Revenue and Core OP)
Europe Business (Revenue and Core OP) <Revenue (excluding foreign exchange impacts associated with conversion of local currencies into JPY) > (JPY billion) 2019 H1 (6months ended June 30) 2019 Revised Target (announced on August 1) Against Inc./Dec. YoY Against Target Inc./Dec. YoY Initial Target We
Slide 25: Operating Profit/Profit Attributable to Owners of Parent
Operating Profit/Profit Attributable to Owners of Parent (JPY billion) 2019 H1 (6months ended June 30) 2019 Revised Target (announced on August 1) Summary of Statement of Profit of Loss Against Inc./Dec. YoY Against Target Inc./Dec. YoY Initial Target Revenue 983.8 - 21.2 - 2.1% - 26.2 2,120.5 0.2 0
Slide 26: 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