Asahi Group Holdings Ltd · TSE:2502

Asahi — FY2019 Earnings Presentation

29 slides from Asahi's earnings presentation, February 2020

1. Slide 1: Financial Results Presentation for 2019

   Financial Results Presentation for 2019 2019 Summary 2020 Forecast February 2020 Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

2. Slide 2: Executive Summary

   Executive Summary 2019 Overview ◆ Core OP down 3.8% YoY due to unfavorable weather and negative forex impact (-1.0% constant currency basis) ・Revenue and Core OP in Alcohol Beverages Business decreased due to market contraction, mix deterioration, and increased competition in the New Genre market. ・

3. Slide 3: Alcohol Beverages Business (1)

   Alcohol Beverages Business （１） ◆ Long-term management policy for Asahi Breweries “Transform toward value-focused management that seeks to create new markets and value for customers. ・ Shift management focus from volume (cases) to value (value/profit) amid market contraction and diversifying values.

4. Slide 4: Alcohol Beverages Business (2)

   Alcohol Beverages Business （２） ◆ New Genre portfolio Needs/insi Wants to bring enjoyment to the dinner Wants to blast away the day’s stress Wants to enjoy premium beer as an ght table every day and fatigue everyday experience Brand If the beer is tasty even down to the Gokujo (Kire Aji) to quench yo

5. Slide 5: Soft Drinks Business

   Soft Drinks Business MITSUYA WILKINSON ◆ Revenue and Core OP Margin Trend ◆ Core 6 Brands Sales Volume Trend WONDA Juroku-Cha Mineral Water CALPIS 6 core brands composition CAGR Revenue (JPY billion) Core OP margin (Millions of cases) （2015-2020E） 72.4% 72.4% 10.2% 10.3% 8.9% 8.8% 9.6% 71.8% 71.8% 7

6. Slide 6: Food Business

   Food Business ◆ Revenue and Core OP Margin Trend ◆ Revenue and Market Share Trend of MINTIA (CAGR) Revenue (JPY billion) Core OP margin Mintia(JPY billion) Market Share 150.0 ＋6.5％ 11.1% 56.6% 57.0% 11.0% 54.1% 54.1% 10.5% 10.2% 9.3% 20.0 100.0 117.6 121.4 116.0 110.8 113.8 10.0 50.0 0.0 0.0 2016 20

7. Slide 7: Western & Central Europe Business

   Western & Central Europe Business ◆ Western Europe Business ＜ Core Brand Net Sales Growth Rate (Global) ＞ ＜2019 Results (constant currency basis) ＞ Peroni Nastro Azzurro Asahi Super Dry ＋1％ 50 ＋10％ Against 250 45 khl、million Euro 2019 Results YoY*2 Target*3 40 Sales Volume 9,834 0% -4% 200 35 30 Net

8. Slide 8: Reorganization of International Beer Business

   Reorganization of International Beer Business ◆ Purpose and significance of reorganization ・ Build a “glocal” management structure through integration/separation of functions mainly in Europe and reorganization with the goal of creating an streamlined organization. ・ Europe Business: Focus on local

9. Slide 9: Europe Business & AIL Business Overview

   Europe Business & AIL Business Overview ◆ Europe Business ＜Revenue Composition by Country（2019）＞ ＜2020 Forecast (constant currency basis)＞ Hungary Netherlands khl、million Euro 2020 Target YoY* Czech ＆ Slovakia Sales Volume 43,578 2% Romania Net Sales (exc liquor tax) 2,724 5% Italy Core OP*1 622 0%

10. Slide 10: CUB Business Overview and Financing Plan

    CUB Business Overview and Financing Plan ◆ Target Business Overview ・ CUB’s beer and cider businesses and the related businesses in Australia ・ Intellectual property rights associated with all CUB beer and cider brands, Target including Carlton, Great Northern and other brands ・ Perpetual license to

11. Slide 11: ESG Evaluations & Adoption in the index

    ESG Evaluations & Adoption in the index ◆ Sep. 2019 「Competitive IT Strategy Company 2019」 for 5 consecutive years ◆ Sep. 2019 「DJSI」 for 12 consecutive years ◆ Jan. & Feb. 2020 CDP Climate Change & Water Security ”A List” Company ◆ Feb. 2020 「FTSE4Good Index Series」 for 18 consecutive years 「FTSE B

12. Slide 12: Reinforcing ESG initiatives (Environment)

    Reinforcing ESG initiatives （Environment） “Asahi Group Environmental Vision 2050” Passing the Gifts of Nature to Future Generations with the “Neutral and Positive” Concept Zero environmental burden (neutral) Create environmental value (positive) Aim for zero environmental burden Leverage the Group’s

13. Slide 13: Reinforcing ESG initiatives (Governance)

    Reinforcing ESG initiatives （Governance） ◆ Major Initiatives for Enhancing Corporate Governance (2018～2019） 2018 2019  Title of CEO transferred from chairman and representative  The Company transitioned to a structure in which the director to president and representative director to improve the ch

14. Slide 14: Reinforcing ESG initiatives (Enhancing Enterprise Risk Management)

    Reinforcing ESG initiatives （Enhancing Enterprise Risk Management） ◆ Advancing Enterprise Risk Management (ERM) ＜Establishment of ・ Introduced enterprise risk management (ERM; a system to Asahi Group Statement on Risk Appetite＞ manage risk as an organization) in 2019 in order to achieve business tar

15. Slide 15: Financial Results for 2019 Financial Forecast for 2020

    Financial Results for 2019 Financial Forecast for 2020 *The effects of changes 1, 2, and 3 below resulting from business reorganization effective January 1, 2020 were reflected in the figures from the beginning of 2020 and comparable previous year’s results in 2019. 1. Calpis Beverage U.S.A., which

16. Slide 16: Intentionally Blank

    Intentionally Blank

17. Slide 17: Financial Results Highlights (constant currency basis)

    Financial Results Highlights (constant currency basis) ◆ 2019 Core OP YoY decline by 1.0% due to profit decrease in Alcohol and Soft Drinks Business, despite of sharp profit increase in Overseas Business（constant currency basis) ・Alcohol：YoY decline in revenue and Core OP due to decrease in sales vo

18. Slide 18: Financial Results Highlights (actual currency basis)

    Financial Results Highlights (actual currency basis) ＜Revenue and Core operating profit （actual currency basis）＞ (JPY billion) 2019 2020 forecast YoY (Amount / %) Against Target YoY (Amount / %) Alcohol Beverages Business 886.9 - 26.5 - 2.9% 0.3 887.4 0.6 0.1% Soft Drinks Business 376.2 5.5 1.5% - 0

19. Slide 19: Alcohol Beverages Business (Sales Volume of Beer-type)

    Alcohol Beverages Business (Sales Volume of Beer-type) <Sales Volume> (Millions of cases) <Market Trend> 2019 2019 2020 forecast YoY (Amount / %) Against target YoY YoY Beer 88.39 - 5.12 - 5.5% 0.39 -4～-5％ -1～-2％ Happoshu 13.19 - 0.71 - 5.1% 0.19 approx. -7% -8~-9% New Genre 40.38 0.63 1.6% - 0.12 a

20. Slide 20: Alcohol Beverages Business (Revenue)

    Alcohol Beverages Business (Revenue) <Revenue> (JPY billion) 2019 2020 forecast YoY (Amount / %) Against target YoY (Amount / %) Asahi Breweries Revenue 863.4 - 25.9 - 2.9% 0.5 863.6 0.2 0.0% Other/elimination in segment 23.5 - 0.6 - 2.5% - 0.3 23.9 0.4 1.7% Revenue total 886.9 - 26.5 - 2.9% 0.3 887

21. Slide 21: Alcohol Beverages Business (Core OP)

    Alcohol Beverages Business (Core OP) <Core Operating Profit> (JPY billion) 2019 2020 forecast YoY (Amount / %) Against Target YoY (Amount / %) Change in sales, category and container mix - - 8.0 - 1.5 - 3.2 Cost reduction in manufacturing - 2.0 0.1 - 2.6 Cost increase in manufacturing - - 2.1 - 0.7

22. Slide 22: Soft Drinks Business (Sales Volume)

    Soft Drinks Business (Sales Volume) <Sales Volume> (Millions of cases) <Market Trend> 2019 2020 forecast 2019 2020 forecast YoY (Amount / %) Against target YoY (Amount / %) YoY YoY Carbonated drinks 72.98 5.72 8.5% 0.82 77.28 4.30 5.9% approx. -4％ - Lactic acid drinks 48.87 - 0.66 - 1.3% - 0.43 50.0

23. Slide 23: Soft Drinks Business (Core OP)

    Soft Drinks Business (Core OP) <Core Operating Profit> (Millions of cases / JPY billion) 2019 2020 forecast YoY (Amount / %) Against Target YoY (Amount / %) Sales Volume Total 265.15 - 0.98 - 0.4% - 1.15 270.50 5.35 2.0% Revenue Total 376.2 5.5 1.5% - 0.7 390.0 13.1 3.5% Change in sales, category an

24. Slide 24: Food Business (Revenue/Core OP)

    Food Business (Revenue/Core OP) <Revenue> (JPY billion) 2019 2020 forecast YoY (Amount / %) Against Target YoY (Amount / %) Asahi Group Foods 117.7 1.7 1.4% - 0.3 121.4 3.7 3.2% Other / elimination - 0.0 - 0.0 - - 0.0 - 0.0 - Revenue 117.6 1.7 1.4% - 0.3 121.4 3.7 3.2% <Core Operating Profit> (JPY b

25. Slide 25: Overseas Business (Revenue) constant currency basis

    Overseas Business (Revenue) *constant currency basis <Revenue *constant currency basis (based on previous year's FX rates)> (JPY billion) 2019 2020 forecast YoY (Amount / %) Against Target YoY (Amount / %) Europe business 493.9 26.1 5.6% - 11.0 398.5 10.2 2.6% Western Europe 168.8 17.0 11.2% - 9.8 -

26. Slide 26: 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) 2019 2020 forecast YoY (Amount / %) Against Target YoY (Amount / %) Europe business 90.5 9.2 11.3% 0.4 77.9 0.2 0.3% Western Europe 25.6 3.2 14.3% - 0.6 - - - Ce

27. Slide 27: Operating Profit/Profit attributable to owners of parent

    Operating Profit/Profit attributable to owners of parent (JPY billion) 2019 2020 forecast YoY (Amount / %) Against Target YoY (Amount / %) Revenue 2,089.0 - 31.2 - 1.5% 2.0 2,135.0 46.0 2.2% Core operating profit 213.0 - 8.4 - 3.8% 1.0 218.5 5.5 2.6% Adjustment item - 11.5 - 1.9 - - 1.5 - 15.0 - 3.5

28. Slide 28: Reference: Impact of Foreign Exchange Rate

    <Reference> Impact of Foreign Exchange Rate ◆ Impact of Foreign Exchange Rates on ◆ Exchange Rate Sensitivity of Key Currencies (2020) Statement of Profit or Loss Impact from forex fluctuations of 1 yen to target currency (full year) (JPY billion) (JPY billion) 2019 2020 Business Currrency Currency

29. Slide 29: 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

Asahi Group Holdings — FY2019 Earnings Presentation on 6ix