Asahi Group Holdings Ltd · TSE:2502
Asahi — H1 2014 Earnings Presentation
25 slides from Asahi's earnings presentation, August 2014
Slide 1: 2014 First Half Financial Results Briefing
August 2014 2014 First Half 2014 Financial Results Briefing Overview of First-Half Results Full-Year Business Strategy Copyright © ASAHI GROUP HOLDINGS. All rights reserved.
Slide 2: Executive Summary
Executive Summary First-Half Overview ◆ Sales and profit increases exceed the targets by mainly a product mix enhancement strategy focused on strengths ・Sales increase of 3.9% due to factors including maximization of Asahi Super Dry, Mitsuya Cider, and other strong brand assets ・Operating income inc
Slide 3: FY2014 1H Financial Results
FY2014 1H Financial Results Achieved sales and profits exceeding targets by the implementation of a product mix enhancement strategy and profit structure reforms Operating income Net income Net sales 2014 1H 2013 1H （billion yen） Billion yen Inc./Dec. YoY 50 811.3 Result Result 780.7 8 2 0 .0 Alcoho
Slide 4: FY2014 Full Year Target
FY2014 Full Year Target Achieve sales and profit increases in all businesses in the second year of the medium- term management plan and record high profits for a 14th consecutive year Operating income Net income Net sales 2014 2013 （billion yen） Billion yen Inc./Dec. YoY 1,783.0 Target Result 150 1,
Slide 5: Progress of Medium-Term Management Plan's Quantitative Targets
Progress of Medium-Term Management Plan’s Quantitative Targets On pace to achieve the targets in the medium-term management plan for KPIs (growth rate of adjusted ROE and EPS excluding special factors) ◆ Key Performance Indicators (KPIs) 2014 Medium-Term 2012 Result 2013 Result Progress Progress Tar
Slide 6: Alcohol Business Overview and Strategy
Alcohol Business Overview and Strategy 2014 First-Half Result 2014Revised Full Year Target Billion yen YoY Change (Amount/%) Against Plan YoY Change (Amount/%) Against Plan Net Sales 428.8 8.2 1.9% 101.8% 959.2 10.6 1.1% 100.7% Operating Income 43.0 2.5 6.0% 106.0% 116.6 2.8 2.5% 101.3% First-Half S
Slide 7: Beer-type Sales Results and Full Year Target
Beer-type Sales Results and Full Year Target ◆ Sales Results and Target by Brands 2014 1H Result 2014 Revised Full Year Target Million cases YoY Change (Amount/%) Against Plan YoY Change (Amount/%) Against Plan Super Dry Total 46.65 1.09 2.4% － 107.45 1.19 0.0% 101.1% Beer Total 47.73 0.89 1.9% 102.
Slide 8: Beer-Type Beverage Topics
Beer-Type Beverage Topics ◆Brand Reinforcement through Evolution of Super Dry Expansion of Extra Cold (Cumulative Number of Outlets) No. of Extra Cold Outlets (Cumulative) (Outlets) ・2014 first half: 8,264 ・2014 full-year target: 10,000 10,000 8,000 6,000 4,000 2,000 Gold Prize winner at World Beer
Slide 9: Happoshu and New Genre Initiatives
Happoshu and New Genre Initiatives ◆Expansion of Clear Asahi Brand Appeal Sales performance (cumulative volume) (Million cases) Clear Asahi Brand Everyone Wins a Prize campaign Left: 2013 Prime Rich Right: 2014 Apr. 18 to Jun. 16 Clear Asahi 15.00 10.00 5.00 - Jan. Feb. Mar. Apr. May Jun. ◆ Expansio
Slide 10: Other Alcohol and Dry Zero Overview
Other Alcohol and Dry Zero Overview ◆ Sales and Operating Margin Performance by Category （billion yen） 200.0 10% 10% 11% 7% 6% 6% 150.0 3.9 7.0 25.3 Others 22.4 4.8 21.1 100.0 48.3 31.4 Shochu 50.3 40.3 31.6 32.7 27.4 27.6 RTD 30.6 31.2 28.2 28.8 50.0 13.6 Wine 12.0 12.4 11.5 10.6 11.5 30.4 30.8 37.
Slide 11: Soft Drink Business Overview and Strategy
Soft Drink Business Overview and Strategy 2014 First-Half Result 2014 Revised Full Year Target Million cases YoY Change (Amount/%) Against Plan YoY Change (Amount/%) Against Plan Asahi Soft Drinks (pre-consolidation) 166.9 5.6 3.5% 100.2% 348.6 8.2 2.4% 100.0% Calpis (pre-consolidation) 40.6 40.6 -
Slide 12: Asahi Soft Drinks: Sales Results and Target
Asahi Soft Drinks: Sales Results and Target ◆Sales Results and Target by Brands and Category 2014 First-Half Result 2014 Revised Full Year Target Million cases YoY Change (Amount/%) Against Plan YoY Change (Amount/%) Against Plan Carbonated Drinks Total 27.33 2.07 8.2% 102.3% 57.22 2.98 5.5% 101.1%
Slide 13: Asahi Soft Drinks: Reasons for the Profit Increase and Synergies
Asahi Soft Drinks: Reasons for the Profit Increase and Synergies ◆ 2014 First Half – OP variance analysis ◆ 2014 Full Year – OP variance analysis 4.9 15.0 Increase in sales volume 1.7 Increase in sales volume 2.9 Change in production composition, etc. 0.3 Change in production composition, etc. 0.4 C
Slide 14: Food Business Overview and Strategy
Food Business Overview and Strategy 2014 First-Half Result 2014 Revised Full Year Target Billion yen YoY Change (Amount/%) Against Plan YoY Change (Amount/%) Against Plan Asahi Food and Healthcare 28.4 1.9 7.4% 105.5% 55.8 0.8 1.4% 99.6% Wakodo 17.3 0.3 1.9% 98.8% 37.2 0.4 1.2% 96.6% Amano Jitsugyo
Slide 15: Overseas Business Overview and Strategy
Overseas Business Overview and Strategy 2014 First-Half Result 2014 Revised Target Billion yen YoY Change (Amount/%) Against Plan YoY Change (Amount/%) Against Plan Oceania Business 73.2 1.3 1.9% 98.9% 160.8 8.1 5.3% 102.7% China Business 9.5 2.8 41.6% 124.6% 18.0 3.2 21.9% 113.6% Permanis 12.5 1.0
Slide 16: Oceania Business Overview and Strategy (1)
Oceania Business Overview and Strategy (1) ◆Results and Plans for the Oceania Business (based on local currencies) FY 2014 First Half Result FY 2014 Target (Million AUD) Against Initial Against Initial YoY Change (amount/%) Target YoY Change (amount/%) Target Net sales 781 138 5.4% 97.0% 1,701 84 5.
Slide 17: Oceania Business Overview and Strategy (2)
Oceania Business Overview and Strategy (2) Full-Year Business Strategy ◆Integration Synergies （Businesses in Oceania Overall) ・Create integration synergies, focusing on upgrade of the supply chain by consolidating production and distribution footprint ・Increase cost efficiency and accelerate decisio
Slide 18: Oceania Business Overview and Strategy (3)
Oceania Business Overview and Strategy (3) Alcohol beverage category ◆Alcohol Beverage Business (Growth Category Strategy) breakdown for Australia (value) Spirits Australia 1% Contract ・Continue to strengthen the brand portfolio through launch of the first Asahi Super Dry production 10% TV commercia
Slide 19: Chinese Beer Business and Permanis Overview and Strategy
Chinese Beer Business and Permanis Overview and Strategy ◆Chinese Beer Business（Local Currency Basis） 2014 First-Half Result 2014 Revised Target Million yuan YoY Change (Amount/%) Against Plan YoY Change (Amount/%) Against Plan Net sales 573 138 31.8% 119.8% 1,090 163 17.6% 110.1% Operating income 4
Slide 20: Business Foundation Expansion in Southeast Asia
Business Foundation Expansion in Southeast Asia ◆Soft Drinks Business in Indonesia First-Half Summary and Full-Year Business Strategy ・Business foundation development through the sale and production of own brands and mineral water, for which an acquisition was completed in January ・Expansion and upg
Slide 21: Performance Overview of Equity Method Affiliates in China
Performance Overview of Equity Method Affiliates in China ◆Tsingtao Brewery Performance Overview 2013 Results and Activities Period 2014 First-Half Results and Activities Period 2012 4Q 2013 1Q 2013 2Q（※） 2013 3Q 2013 4Q 2014 1Q Million yuan 実績 YoY 実績 YoY 実績 YoY 実績 YoY 実績 YoY 実績 YoY Net sales 3,986
Slide 22: Reference Information
Reference Information
Slide 23: Profit Structure Reforms and Advertising and Promotion Expenses in the Alcohol Beverage Business
<Reference Information> Profit Structure Reforms and Advertising and Promotion Expenses in the Alcohol Beverage Business ◆ Profit Structure Reforms (Three-Year Cumulative Efficiency Targets） Medium-term billion yen 2013 result 2014 target plan target Initiatives Alcoholic ・ Reduction in depreciation
Slide 24: Reference: Foreign Exchange Impact
<Reference> Foreign Exchange Impact ◆Key Currencies and the Company’s Average ◆Impact of Exchange Rates on P&L Exchange Rates （billion yen） 2014 1H 2014 Bussiness Currency Remarks Result Target （Ｙｅｎ） Oceania business AUD -2.5 0.2 120 Chinese business RMB 0.7 0.6 USD AUD Permanis MYR 0.1 0.4 MYR \97.
Slide 25: 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