Asahi Group Holdings Ltd · TSE:2502
Asahi — Q2 2024 Earnings Presentation
27 slides from Asahi's earnings presentation, Aug 8, 2024
Slide 1: Q2 2024 Financial Results Presentation
Q2 2024 Financial Results Presentation (H1 Business Overview, Future Direction) August 8, 2024
Slide 2: Executive Summary
Executive Summary ◆ Overview of H1 2024 ➢ Achieved 3.8% growth in revenue and 6.2% growth in Core Operating Profit (constant currency basis) ・While profit from our business in Oceania declined, overall profit outstripped our plan following strong performances in Japan and Europe ・Unit sales prices c
Slide 3: 2024 Shareholder Returns and Upcoming Stock Split
2024 Shareholder Returns and Upcoming Stock Split ➢ Aim to enhance shareholder returns and improve capital efficiency in addition to investing in growth, with a view to achieving the financial soundness goal. ➢ Plan to announce financial and capital policies for 2025 onward in February 2025 based on
Slide 4: Reference: Previous Financial Policy and Progress
Reference: Previous Financial Policy and Progress Guidelines for 2022 onward ・Prioritize free cash flow allocations for reducing debt, and work to enhance Growth investment and growth investment capacity Debt Reduction ・Aim for Net Debt/EBITDA *1 of roughly 3 times in 2024 (Calculated after deductin
Slide 5: Premium Strategy Progress
Premium Strategy Progress ⚫ Beer-Type Beverages + Non-Alcohol Beer H1 2024 Results (YoY) Japan Europe Oceania Total Improvement in unit sales price (excluding liquor tax) +4.4% +4.4% +2.2% +3.3% Revenue +3.5% +5.1% −3.9% +2.7% Sales volume −0.8% +0.7% −6.0% −0.6% *The above figures are calculated ba
Slide 6: Japan: H1 Overview and Future Direction
Japan: H1 Overview and Future Direction 2024 Vs Initial 2024 H1 Change YoY Revised Change YoY Forecast (JPY billion) Forecast Revenue 630.1 8.1 1.3% 1,362.7 - 0.2 - 0.0% - 15.3 Core OP 56.3 3.3 6.3% 125.0 5.5 4.6% 3.2 Overview for H1 2024 ⚫ Achieved better-than-expected performance in Core Operating
Slide 7: Japan: Key Topics
Japan: Key Topics ⚫ Ongoing Beer Regression Analysis ⚫ Stimulating Beer Demand Canned beer market by category Concept shop Super Dry smart can 70% Beer Can New Genre Happoshu 60% 50% Collaborating on 40% content that is 30% popular with young 20% people 10% 0% Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec.
Slide 8: Europe: H1 Overview and Future Direction
Europe: H1 Overview and Future Direction 2024 Vs Initial 2024 H1 Change YoY Revised Change YoY Forecast (JPY billion) Forecast Revenue 379.5 18.9 6.0% 776.2 34.6 5.0% - 17.7 Core OP 42.7 3.8 11.1% 96.3 5.2 6.1% 4.0 * Figures of the YoY change for Constant Currency Basis are calculated by converting
Slide 9: Europe: Key Topics
Europe: Key Topics ⚫ Growth Rate by Segment (H1 2024) ⚫ Beer Volume Share in Major Countries Total Beer ＋0.2pt YoY （＋0.8pt vs.2022) Premium ＋1.0pt YoY （＋2.0pt vs.2022) Source: Asahi estimates, aggregated figures shown for 8 key European markets (CZ, HU, IT, NL, PL, RO, SK, UK) ⚫ Premium Category Ini
Slide 10: Oceania: H1 Overview and Future Direction
Oceania: H1 Overview and Future Direction 2024 Vs Initial 2024 H1 Change YoY Revised Change YoY Forecast (JPY billion) Forecast Revenue 329.7 13.2 4.6% 737.2 36.0 5.5% - 4.7 Core OP 41.0 - 4.9 - 11.7% 120.5 1.9 1.7% - 9.0 * Calculated by excluding the foreign exchange effects of local currencies and
Slide 11: Oceania: Key Topics
Oceania: Key Topics ⚫ Australia Alcohol Beverages Volumes Main Initiatives ・Promoted the expansion of our low-alcohol category with the launch of Carlton Dry 3.5% in March 2024 ・Sought to reinvigorate Victoria Bitter brand power with new TV ads and other proactive marketing activities ⚫ Upgrading Ou
Slide 12: Sustainability: Environment
Sustainability: Environment ⚫ Formulated a new roadmap to help attain Asahi Group Environmental Vision 2050 ⚫ Earned SBTi approval of net zero CO2 emissions targets across the value chain by 2040 We formulated a roadmap to help achieve the Asahi Group Roadmap: Climate Change Environmental Vision 205
Slide 13: Sustainability: Social
Sustainability: Social ⚫ Launched a new global reporting system In May 2024, we launched a new Speak Up reporting system to help us recognize and respond to any compliance issues or human rights violations at an early stage. The system functions in the local language of all the countries in which we
Slide 14: Summary of H1 2024 Financial Results and Full-Year Forecasts
Summary of H1 2024 Financial Results and Full-Year Forecasts
Slide 15: Financial Highlights (Revenue and Core Operating Profit)
Financial Highlights (Revenue and Core Operating Profit) (Constant Currency Basis) (Constant Currency Basis) H1 Results 2024 ➢ Revenue: +3.8 YoY. All businesses reported Vs Initial (JPY Billion) H1 Change YoY Revised Change YoY higher revenue thanks primarily to the impact of Forecast Forecasts pric
Slide 16: Operating Profit/Profit Attributable to Owners of Parent
Operating Profit/Profit Attributable to Owners of Parent (Actual Currency Basis) (Actual Currency Basis) H1 Results 2024 (JPY Billion) H1 Change YoY Revised Change YoY Vs Initial ➢ Operating profit: +8.4% YoY. Thanks to higher Forecast Forecasts Core Operating Profit, despite increases in Revenue 1,
Slide 17: Statement of Financial Position / Statement of Cash Flow
Statement of Financial Position / Statement of Cash Flow H1 Results 2024 ➢ B/S: Total assets increased by JPY 417.2 billion Vs Initial (JPY billion) H1 Change YoY Revised Change YoY Forecast compared to end December 2023 as goodwill Forecasts and intangible assets rose on the back of a Total assets
Slide 18: Japan
Japan 2024 Vs Initial (JPY Billion) H1 Change YoY Revised Change YoY Forecast Forecasts H1 Results Alcohol Beverages Business 369.1 5.8 1.6 % 813.3 2.0 0.2 % -7.7 Non-Alcohol Beverages Business 183.2 5.6 3.2 % 389.8 7.6 2.0 % -0.9 ➢ Revenue: +1.3% YoY. The overall YoY increase in Food Business 63.7
Slide 19: Europe
Europe 2024 Vs Initial （EUR Million） H1 Change YoY Revised Change YoY Forecast Forecasts H1 Results Revenue 2,304 129 6.0 % 4,704 228 5.0 % -118 ➢ Revenue: +6.0% YoY. Rose on the back of premium category growth, and the impact of the Core Operating Profit 260 26 11.1 % 584 34 6.1 % 26 newly consolid
Slide 20: Oceania
Oceania 2024 Vs Initial (AUD Million) H1 Change YoY Revised Change YoY H1 Results Forecast Forecasts ➢ Revenue: +4.6% YoY. While beer sales declined Revenue 3,288 144 4.6 % 7,372 386 5.5 % -51 due to a deterioration in the market environment Core Operating Profit 409 -54 -11.7 % 1,205 20 1.7 % -98 a
Slide 21: Reference
Reference
Slide 22: FX Impact (H1 Results)
FX Impact (H1 Results) (Actual Currency Basis) (Constant Currency Basis) Exchange Rate Trends (JPY billion) H1 Prev. Year Change YoY FX Impact Change YoY 2024 H1 2023 H1 (JPY) Results Results Japan 630.1 622.0 8.1 1.3 % - 8.1 1.3 % EUR 164.7 145.9 Europe 379.5 315.3 64.2 20.3 % 45.3 18.9 6.0 % AUD 1
Slide 23: FX Impact (2024 Forecasts)
FX Impact (2024 Forecasts) (Actual Currency Basis) (Constant Currency Basis) Exchange Rate Trends 2024 (JPY billion) Revised Prev. Year Change YoY FX Impact Change YoY 2024 2023 Forecasts (JPY) Revised Results Forecasts Japan 1,362.7 1,362.9 -0.2 -0.0 % - -0.2 -0.0 % EUR 165.0 152.1 Europe 776.2 688
Slide 24: Japan (Alcohol Beverages: Revenue/Sales Volume)
Japan (Alcohol Beverages: Revenue/Sales Volume) 2024 (JPY Billion) Vs Initial H1 Change YoY Revised Change YoY *Before rebate deduction Forecast Forecasts Beer-type beverages 266.5 -2.3 -0.9 % 594.4 -16.7 -2.7 % -26.5 Whiskey and spirits 33.8 3.0 9.7 % 69.8 3.5 5.3 % 8.1 RTD 20.2 3.1 18.3 % 44.1 7.3
Slide 25: Japan (Non-Alcohol Beverages: Sales Volume)
Japan (Non-Alcohol Beverages: Sales Volume) 2024 Vs Initial (Millions of cases) H1 Change YoY Revised Change YoY Forecast Forecasts Carbonated drinks 41.37 1.49 3.7 % 88.00 1.42 1.6 % 3.20 Lactic acid drinks 20.16 0.21 1.0 % 43.80 0.13 0.3 % 0.30 Coffee 13.68 -1.57 -10.3 % 27.50 -1.91 -6.5 % -2.20 T
Slide 26: Quarterly Results
Quarterly Results (Constant Currency Basis) (Constant Currency Basis) (JPY Billion) Q1 Change YoY Q2 Change YoY H1 Change YoY Japan 282.7 8.9 3.3 % 347.4 -0.8 -0.2 % 630.1 8.1 1.3 % Europe 144.6 8.0 6.7 % 234.8 10.9 5.5 % 379.5 18.9 6.0 % Oceania 169.0 6.0 4.0 % 160.7 7.2 5.3 % 329.7 13.2 4.6 % Sout
Slide 27: Information in this material is not intended to solicit the sale or purchase of
Information in this material is not intended to solicit the sale or purchase of shares in Asahi Group Holdings. The views, estimates and other information included in this document are based on the company's judgment at the time of publication, and no guarantees are provided regarding the accuracy o