Asahi Group Holdings Ltd · TSE:2502

Asahi — FY2022 Earnings Presentation

38 slides from Asahi's earnings presentation, Feb 15, 2023

  1. Slide 1: Q4 2022 Financial Results

    Q4 2022 Financial Results 画像検討中 Business Overview for 2022 代えられる and Business Strategy for 2023 なら変えた い February 15, 2023 ⒸASAHI GROUP HOLDINGS. All rights reserved.

  2. Slide 2: Executive Summary

    Executive Summary Overview for 2022 ➢ Achieved 8.0% revenue growth and 5.9% core operating profit growth (constant currency basis) • Executed flexible pricing strategies and cost management in response to unprecedented cost increases • Continued with premiumization centered on core brands, including

  3. Slide 3: Progress of Medium- to Long-Term Management Policy (Business Portfolio)

    Progress of Medium- to Long-Term Management Policy (Business Portfolio) ➢ Improved product mix mainly by sales volume increase of premium category and recovery of on-premise channel with easing of COVID restrictions. (Results of major regions: P6) Expansion of Existing ➢ Significant Growth in the 5

  4. Slide 4: Progress of Medium- to Long-Term Management Policy (Core Strategy: Sustainability)

    Progress of Medium- to Long-Term Management Policy (Core Strategy: Sustainability) ➢ Updated sustainability policy and strategy structure Integrating Sustainability ➢ Established Sustainable Product Guidelines into ➢ Initiated to visualize business and social impact of Key Management Initiatives Key

  5. Slide 5: Progress of Medium- to Long-Term Management Policy (Core Strategy: DX and R&DX)

    Progress of Medium- to Long-Term Management Policy (Core Strategy: DX and R&DX) ➢ Business Innovation: Digital tool hypothesis validation in the field of personalization using consumer data and in the field of sustainability ➢ Process Innovation: Established a global data platform consisting of inte

  6. Slide 6: Progress of Medium- to Long-Term Management Policy (Strategic Foundation Strengthening)

    Progress of Medium- to Long-Term Management Policy (Strategic Foundation Strengthening) ➢ Identify challenges and implement action plans through an engagement survey, and accelerate DE&I initiatives Advance ➢ Strengthened the development of executives by Human expanding layers of GLDP* Capital *GLDP

  7. Slide 7: Price Realization

    Price Realization Japan Australia Europe (YoY) (Alcohol Beverages) (Alcohol Beverages) Beer-Type Beverages Unit Price （Excluding Liquor Tax） ＋3.8％ +11.7％ +4.7％ *Including Non-alcohol Category *Including Non-alcohol Category Ref: all type of alcohol business Revenue （Excluding Liquor Tax） ＋8.7％ +14.3

  8. Slide 8: Cost Increases and Outlook

    Cost Increases and Outlook 2023 2022 Results Forecast Cost Increase (Group Total) Approx. JPY 85.0 billion Approx. JPY 100.0 billion ＜By Region＞ Japan Europe Oceania ２０２２ ２０２３ ２０２２ ２０２３ ２０２２ ２０２３ ➢ Aluminum ➢ Aluminum ➢ Malt / Barley ➢ Malt / Barley ➢ Aluminum ➢ Aluminum ➢ Fuel ➢ Malt / Barley ➢ Gla

  9. Slide 9: Japan: Overview and Direction

    Japan: Overview and Direction 2022 2023 Change YoY vs Forecast Change YoY (JPY billion) Results Forecast Revenue 1,301.7 82.3 6.8% - 15.7 1,351.0 49.3 3.8% Core OP 108.9 5.5 5.3% - 2.5 112.0 3.1 2.8% ＜Overview for 2022＞ ⚫ Asahi Group Japan, Ltd. Launched, commenced on efficiency improvement through

  10. Slide 10: Japan (Alcohol Beverages Business): Main Initiatives

    Japan (Alcohol Beverages Business): Main Initiatives ⚫ Growth in Excess of the Market in the Expanding Canned Beer Market ・Beer Can Composition in Off-premise market ・Number of Asahi Super Dry consumers FY2022 (YoY, volume basis) As of Dec 31, 2022 Market: 20.67 million +Mid single digit people Asah

  11. Slide 11: Japan (Non-Alcohol Beverages Business): Main Initiatives

    Japan (Non-Alcohol Beverages Business): Main Initiatives ⚫ Responding to Changing Consumer Needs ・Unsweetened carbonated Wilkinson grew faster than the market ・Expanded label-less products mainly through EC channel E-commerce Label-less channel +49% +25% FY2022 (YoY, volume basis) ⚫ Strengthening Ne

  12. Slide 12: Europe: Overview and Direction

    Europe: Overview and Direction * Constant Currency Basis. Calculated by excluding the foreign exchange effects of local currencies to Euro. 2022 2023 Change YoY vs Forecast Change YoY (JPY billion) Results Forecast Revenue 573.9 64.0 13.5% - 14.4 657.0 91.9 16.0% Core OP 76.0 - 4.7 - 6.3% - 2.0 74.4

  13. Slide 13: Europe: Premiumization Progress and Performance

    Europe: Premiumization Progress and Performance ⚫ 2022: Growth Rate by Category ⚫ 2022: Profit Increase/Decrease Factors ＜2022: Premium Ratio in Business＞ ＜Non-Alcohol Beverages＞ * volume basis * () Indicates the 2021 composition ratio YoY in 2022 (volume basis) ＋14％ the Composition Approx. 7％ in ou

  14. Slide 14: Oceania: Overview and Direction

    Oceania: Overview and Direction * Constant Currency Basis. 2022 2023 Change YoY vs Forecast Change YoY (JPY billion) Results Forecast Revenue 583.2 27.9 5.6% 5.2 628.4 46.4 8.0% Core OP 107.1 13.9 16.7% - 0.0 108.8 1.9 1.7% * Figures of the YoY change for Constant Currency Basis are calculated by co

  15. Slide 15: Oceania: Overview and Main Initiatives

    Oceania: Overview and Main Initiatives ⚫ Sustained above-market growth Great Northern Craft beer category Annual sales Annual sales volume* (YoY) +8% volume (YoY) +13% * Total of Great Northern Super Crisp and Great Northern Original “Balter” ⚫ Integration Synergy Progress Cost synergies: Top line s

  16. Slide 16: Global Brands

    Global Brands ⚫ Expansion of 5 Global Brands 2022 Results 8,854KHL （YoY＋8%） ※Results are based on sales volume excluding the home markets • Asahi Super Dry: YoY＋15% Partnership with City Football Group, the official beer of Rugby World Cup 23, Launched Asahi Super Dry 0.0% • Peroni Nastro Azzurro: Y

  17. Slide 17: Reference

    Reference

  18. Slide 18: Sustainability: Visualizing impact of key initiatives on business and society

    Sustainability: Visualizing impact of key initiatives on business and society Assess overall quantitative impact of our sustainability initiatives on business and society ➢ Visualize impact of the five key initiatives* through analysis and verification, and use the findings in prioritization, Object

  19. Slide 19: Sustainability: Updates of Environment Vision 2050

    Sustainability：Updates of Environment Vision 2050 Asahi Group Environmental Vision 2050 We, the Asahi Group, have been enjoying the gifts of nature to create its products and services for over 100 years. We are concerned that the worsening global environmental issues threaten not only the sustainabi

  20. Slide 20: Sustainability: Updates of Environment Vision 2050

    Sustainability：Updates of Environment Vision 2050 Asahi Group's Efforts to Realize its Vision At the Asahi Group, we carry efforts to minimize the resources used and maximize circularity through the value chain, and generate synergy by creating strategic partnerships with stakeholders, with the aim

  21. Slide 21: Sustainability: Global Targets

    Sustainability: Global Targets Responsible Environment Communities Drinking Reduction in Inappropriate Realize Sustainable Communities Drinking Respond to Climate Change Sustainable Packaging through the Creation of People- Solution of Alcohol-Related to-People Connections Issues through Creation of

  22. Slide 22: Sustainability: Initiatives in Key Areas of Focus

    Sustainability: Initiatives in Key Areas of Focus Respond to climate change, Respond to plastic issue Japan Europe (Italy) Oceania • In 2022, a total of eight Alcohol • Birra Peroni contracted solar technology • As a joint venture with three other Beverages/Non-Alcohol Beverages/Food R&D specialist

  23. Slide 23: Sustainability: Initiatives in Key Areas of Focus

    Sustainability: Initiatives in Key Areas of Focus Reduction in inappropriate drinking Realize sustainable communities through / Solution of social issues the creation of people-to-people connections through creation of new drinking opportunities Japan Europe (Czechia) Oceania • Asahi You.Us, Ltd. pr

  24. Slide 24: Summary of 2022 results and 2023 forecasts

    Summary of 2022 results and 2023 forecasts

  25. Slide 25: Revenue / Core Operating Profit

    Revenue / Core Operating Profit (Constant Currency Basis) (Constant Currency Basis) 2022 2023 (JPY billion) Change YoY vs Forecast Change YoY Results Forecast 2022 Result Japan 1,301.7 82.3 6.8% - 15.7 1,351.0 49.3 3.8% ➢ Revenue: +8.0% YoY in total mainly Europe 573.9 64.0 13.5% - 14.4 657.0 91.9 1

  26. Slide 26: Operating Profit / Profit Attributable to Owners of Parent

    Operating Profit / Profit Attributable to Owners of Parent (Actual Currency Basis) (Actual Currency Basis) (JPY billion) 2022 Change YoY vs Forecast 2023 Change YoY 2022 Result Results Forecast Revenue 2,511.1 275.0 12.3% 61.1 2,690.0 178.9 7.1% ➢ Operating profit: +2.4% YoY in total mainly due to t

  27. Slide 27: Statement of Financial Position / Statement of Cash Flow

    Statement of Financial Position / Statement of Cash Flow 2022 2023 (JPY billion) Change YoY vs Forecast Change YoY Results Forecast 2022 Result Total assets 4,830.3 282.6 6.2% 130.3 4,880.0 49.7 1.0% ➢ B/S: Total assets increased by JPY 282.6 billion Total equity 2,062.9 303.8 17.3% 92.9 2,160.0 97.

  28. Slide 28: Japan

    Japan 2022 2023 2022 Result (JPY billion) Change YoY vs Forecast Change YoY Results Forecast ➢ Revenue: +6.8% YoY mainly due to the Alcohol Beverages Business 786.2 64.1 8.9% - 8.9 789.8 3.6 0.5% strong sales of canned beer in Alcohol Beverages Business, as well as growth of Non-Alcohol Beverages Bu

  29. Slide 29: Japan (Alcohol Beverages: Revenue/Sales Volume)

    Japan (Alcohol Beverages: Revenue/Sales Volume) (JPY billion) 2022 2023 *Before rebate deduction Change YoY vs Forecast Change YoY Results Forecast 2022 Result Beer-type beverages 593.3 54.6 10.1% - 16.2 611.9 18.5 3.1% Whiskey and spirits 55.3 5.9 12.0% 3.1 55.5 0.2 0.3% ➢ Revenue from beer-type be

  30. Slide 30: Japan (Alcohol Beverages: Breakdown of Changes in Profit)

    Japan (Alcohol Beverages: Breakdown of Changes in Profit) 2022 2023 (JPY billion) Change YoY vs Forecast Change YoY Results Forecast Change in sales, category and container mix - 29.4 - 3.6 - 26.5 Cost reduction in manufacturing - 1.0 0.0 - 1.8 Cost increase in manufacturing - - 14.1 0.8 - - 21.0 Ad

  31. Slide 31: Japan (Non-Alcohol Beverages: Sales Volume)

    Japan (Non-Alcohol Beverages: Sales Volume) 2022 2023 (Millions of cases) Change YoY vs Forecast Change YoY Results Forecast Carbonated drinks 82.50 2.18 2.7% - 1.30 87.70 5.21 6.3% Lactic acid drinks 44.48 2.30 5.5% 0.48 44.10 - 0.38 - 0.9% 2022 Result Coffee 32.78 - 2.60 - 7.4% - 1.22 31.70 - 1.07

  32. Slide 32: Japan (Non-Alcohol Beverages: Breakdown of Changes in Profit)

    Japan (Non-Alcohol Beverages: Breakdown of Changes in Profit) 2022 2023 (JPY billion) Change YoY vs Forecast Change YoY Results Forecast Change in sales, category and container mix - 5.9 - 4.4 - 14.8 Cost reduction in manufacturing - 1.2 - 0.5 - 1.3 Cost increase in manufacturing - - 11.2 - 0.5 - -

  33. Slide 33: Europe

    Europe 2022 Against 2023 （Khl／million Euro） Change *1 YoY *1 Change *1 YoY *1 Results Target*2 Forecast Revenue 4,154 493 13.5% - 108 4,693 665 16.0% 2022 Results (Incl. liquor tax) ➢ Sales volume: +2.3% YoY due to the Core OP*1 550 - 36 -6.3% - 15 532 5 0.8% recovery in the on-premise sales and the

  34. Slide 34: Oceania

    Oceania 2022 2023 (million AUD) Change YoY YoY Change YoY Results Forecast Revenue 6,399 339 5.6% 59 6,905 509 8.0% 2022 Result Core Operating Proifit 1,175 169 16.7% -1 1,196 20 1.7% ➢ Revenue: +5.6% YoY due to the higher sales volumes, especially of major brands, as well as an improved channel mix

  35. Slide 35: FX Impact (2022 Results)

    FX Impact (2022 Results) (Actual Currency Basis) (Constant Currency Basis) 2022 <Exchange Rate Trends> (JPY billion) Prev. Year Change YoY FX Impact Change YoY Results 2022 2021 Japan 1,301.7 1,219.4 82.3 6.8% - 82.3 6.8% (Yen) Results Results Europe 573.9 474.4 99.5 21.0% 35.5 64.0 13.5% Euro 138.1

  36. Slide 36: FX Impact (2023 Forecast)

    FX Impact (2023 Forecast) (Actual Currency Basis) (Constant Currency Basis) 2023 <Exchange Rate Trends> (JPY billion) Prev. Year Change YoY FX Impact Change YoY Forecast 2023 2022 Japan 1,351.0 1,301.7 49.3 3.8% - 49.3 3.8% (Yen) Forecast Results Europe 657.0 573.9 83.1 14.5% - 8.7 91.9 16.0% Euro 1

  37. Slide 37: <Reference> Sales Trend by Region

    <Reference> Sales Trend by Region Japan (Alcohol Beverages) *Value basis (Beer-type Beverages total) YoY Vs 2019 ⚫ 2022 Results ・Revenue +10.1% YoY (-11% vs 2019) On-premise: +Mid 30% range YoY (Just under -40% vs 2019) Off-premise: + Slight increase YoY (- Slight decrease vs 2019) *Figures by chann

  38. Slide 38: 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 — FY2022 Earnings Presentation on 6ix