Asahi Group Holdings Ltd · TSE:2502
Asahi — FY2014 Earnings Presentation
29 slides from Asahi's earnings presentation, February 2015
Slide 1: 2014 Financial Results Briefing
February 2015 2014 Financial Results Briefing Overview of 2014 Financial Results 2015 Business Strategy Copyright © ASAHI GROUP HOLDINGS. All rights reserved.
Slide 2: Executive Summary
Executive Summary 2014 Overview ◆ Record-high net income for a 14th consecutive year due to factors including a brand strategy focused on strengths ・ Over-performance of targets as a result of maximization of strong brand assets, product mix improvement, and profit structure reforms ・ Progress with
Slide 3: Progress of Medium-Term Management Plan's Quantitative Targets
Progress of Medium-Term Management Plan’s Quantitative Targets Achieve the targets in the medium-term management plan for KPIs (growth rate of adjusted ROE excluding special factors and EPS) ◆ Key Performance Indicators (KPIs) Achiev ement Achiev ement Achiev ement 2013 v is-à-v is 2014 v is-à-v is
Slide 4: Progress of Operating Margin Guideline by Business
Progress of Operating Margin Guideline by Business All businesses except the Overseas Business are on pace to achieve the operating margin guideline in the medium-term management plan. FY2015 （％） Medium-Term Management Plan 2015 Guideline 14 .0 12.1 12.1 12.5％ Alcohol 12.0 12.0 Beverages 12 .0 or hi
Slide 5: Overview of Medium-Term Management Plan 2015 by Business
Overview of Medium-Term Management Plan 2015 by Business Results and Issues of the Past Two Years Future Direction ・Year-on-year increase sales volume in beer-type beverages ・Investment to maximize strong brand assets for two consecutive years ・Product mix improvement in anticipation of emergence ・I
Slide 6: Management Reform with a View to the Next Medium-Term Management Plan
Management Reform with a View to the Next Medium- Term Management Plan 【Trends Surrounding Japanese Companies and the Capital Markets】 ・ Acceleration of a trend toward promotion of ROE-focused management, such as changes in pension investment and setting of numerical targets ・ Changes in management
Slide 7: FY2014 Financial Results
FY2014 Financial Results Achieve sales and profit increases in all businesses for a 14th consecutive year Opera ti ng i ncome N et i ncome 2014 2013 (Billion JPY) Inc./Dec. YoY Result Result N et s a l es (Billion JPY) 1,785.5 Alcohol Beverages 964.6 948.6 16.1 1.7% 1,714.2 Soft Drinks 476.6 466.2 1
Slide 8: 2015 Full-year Target
2015 Full-year Target Aim for sales and profit increases in all businesses to achieve the KPIs in the last year of the medium-term management plan. Opera ti ng i ncome N et i ncome 2015 2014 (Billion JPY) Inc./Dec. YoY N et s a l es Target Result 1,850.0 (Billion JPY) 1 ,7 8 5 .5 Alcohol Beverages 9
Slide 9: Alcohol Business Overview and Strategy
Alcohol Business Overview and Strategy 2014 Result 2015 Target (Billion JPY) YoY Change (Amount/%) Against Target YoY Change (Amount/%) Net Sales 964.6 16.1 1.7% 100.6% 977.6 13.0 1.3% Operating Income 117.0 3.2 2.8% 100.3% 118.1 1.2 1.0% 2014 Overview ◆ Achievement of sales and profit increases in
Slide 10: Beer-type Sales Results and Full Year Target
Beer-type Sales Results and Full Year Target ◆ Sales Result and Target by Brands 2014 Result 2015 Target Million cases YoY Change (Amount/%) Against Target YoY Change (Amount/%) Super Dry Total 106.11 -0.16 -0.2% － 107.00 0.89 0.8% Beer Total 108.26 -0.62 -0.6% 98.9% 108.40 0.14 0.1% Style Free 12.0
Slide 11: Asahi Super Dry Brand Strategy
“Asahi Super Dry” Brand Strategy ◆“Super Dry” Product Strategy <Expansion of Extra Cold (Cumulative Number of Restaurants)> (Outlets) 2015 cumulative New value proposals that leverage brand power installation target: Creation of “koto” consumption 15,000 12,500 restaurants 10,000 5,000 Special Packa
Slide 12: Happoshu and New Genre Initiatives
Happoshu and New Genre Initiatives ◆ Expansion of “Clear Asahi” Brand Appeal ＜2015 Initiatives＞ ・Further increase in quality through quality improvements ・Sales promotions synchronized with annual events Clear Asahi Clear Asahi Prime Rich ◆ Expansion of Presence in the Functional Beverages Category
Slide 13: Other Alcohol Beverages and Dry Zero Overview
Other Alcohol Beverages and “Dry Zero” Overview ◆ Sales and Operating Margin Performance by Category ◆ YoY change in sales volume by Whiskey, Brandy, Sprits （billion yen） 12% 12% 200% Total Sales Japanese Whisky OP margin 200.0 10% 10% 7% 6% 180% 150.0 25.3 26.7 160% 7.0 Others 22.4 4.8 21.1 30.7 30
Slide 14: Soft Drink Business Overview and Strategy
Soft Drink Business Overview and Strategy 2014 Result 2015 Target (Billion JPY) YoY Change (Amount/%) Against Target YoY Change (Amount/%) Asahi Soft Drinks 431.2 65.4 17.9% 98.9% 440.0 8.8 2.0% Calpis 25.8 -64.2 -71.3% 94.3% 29.8 4.0 15.5% LB 22.6 0.3 1.3% 96.2% 23.2 0.6 2.6% Net Sales 476.6 10.3 2
Slide 15: Soft Drink Business Overview and Strategy
Soft Drink Business Overview and Strategy ◆Sales Result and Target by Brands and Category 2014 Result 2015 Target (Million cases) YoY Change (Amount/%) Against Target YoY Change (Amount/%) Carbonated Drinks Total 55.02 0.78 1.4% 96.2% 56.30 1.28 2.3% Fruit Juice Total 16.12 -0.06 -0.3% 99.7% 16.13 0
Slide 16: Asahi Soft Drinks: Profit Structure Reforms and Collaborative Synergies
Asahi Soft Drinks: Profit Structure Reforms and Collaborative Synergies ◆ Sales and Operating Margin Performance ◆ Cost Synergy Creation Targets with Calpis Net Sales(Billion JPY) OP margin 2013 2014 2014 three-year Medium-term Billion yen Result Result Target accumulative plan target 5.5% 5.6% 4.3%
Slide 17: Food Business Overview and Strategy
Food Business Overview and Strategy 2014 Result 2015 Target (Billion JPY) YoY Change (Amount/%) Against Target YoY Change (Amount/%) Asahi Food and Healthcare 57.5 2.5 4.6% 103.1% 57.5 0.0 0.0% Wakodo 37.1 0.4 1.0% 99.8% 38.1 0.9 2.5% Amano Food 22.1 1.9 9.2% 106.2% 22.6 0.5 2.2% Net Sales 112.0 3.8
Slide 18: Overseas Business Overview & Strategy
Overseas Business Overview & Strategy 2014 Result 2015 Target (Billion JPY) YoY Change (amount/%) Against Target YoY Change (amount/%) Oceania Business 163.5 10.9 7.1% 101.7% 170.8 7.3 4.5% Southeast Asia 50.8 27.0 113.2% 98.9% 74.6 23.8 47.0% Chinese Business 18.5 3.8 25.5% 102.9% 18.8 0.3 1.8% Net
Slide 19: Oceania Business Overview & Strategy (1)
Oceania Business Overview & Strategy (1) ◆ Oceania Business – 2014 Results & Plan (based on local currency: AUD) 2014 Result 2015 Target (Million AUD) YoY Change (amount/%) Against Target YoY Change (amount/%) Net Sales 1,714 96 6.0% 100.8% 1,798 84 4.9% Operating Income 108 33 43.5% 110.6% 122 14 1
Slide 20: Oceania Business Overview & Strategy (2)
Oceania Business Overview & Strategy (2) ◆ Australian Business <2014 Overview & 2015 Strategy> Non-Alcohol Beverages Business ・Cola was impacted by negative market trends but this was mitigated by growth in water and non-cola, leading to overall profit growth ・Successfully delivered sales and profit
Slide 21: Oceania Business Overview & Strategy (3)
Oceania Business Overview & Strategy (3) ◆ New Zealand Alcohol Beverages Business <2014 Overview & 2015 Strategy> ・Finished behind target mainly due to decline of core RTD brands which suffered negative impact from the market ・Following its integration with the Australian business, the business revi
Slide 22: Businesses in Southeast Asia Overview and Strategy
Businesses in Southeast Asia Overview and Strategy ◆Permanis ・ Achievement of sales and profit targets thanks to factors including above-target sales of core carbonated soft drinks and “Wonda” ・ Profitability increased by means including raw materials cost reduction and curbing of distribution costs
Slide 23: Chinese Beer Business and Global Expansion of Super Dry
Chinese Beer Business and Global Expansion of Super Dry ◆Chinese Beer Business (Based on local currency: Chinese yuan) 2014 Result 2015 Target Million yuan YoY Change (Amount/%) Against Plan YoY Change (Amount/%) Net sales 1,077 151 16.3% 98.9% 1,047 -30 -2.8% Operating income 56 15 38.3% 85.6% 35 -
Slide 24: Equity Method Affiliates
Equity Method Affiliates ◆ Tsingtao Brewery <Performance> Yuan million Operating income 28,291 <Overview and Future Strategy (Jan. to Sep.)> Net income 25,782 25,737 ・6% sales increase by means including reinforcement of the core Net sales 23,158 Tsingtao and Laoshan brands 19,898 2,687 ・1% net prof
Slide 25: Reference Information
Reference Information
Slide 26: Profit Structure Reforms and Advertising and Promotion Expenses in the Alcohol Beverage Business
Profit Structure Reforms and Advertising and Promotion Expenses in the Alcohol Beverage Business ◆ Profit Structure Reforms (Three-Year Cumulative Efficiency Targets） Tree-year total Medium-term Billion yen 2013 result 2014 result 2015 target result・ target plan target Initiatives Alcohol ・ Reductio
Slide 27: Performance Overview of Equity Method Affiliates in China
Performance Overview of Equity Method Affiliates in China ◆Tsingtao Brewery Performance Overview 2012 4Q 2013 1Q 2013 2Q(※） 2013 3Q fetching term Million yuan Result YoY Result YoY Result YoY Result YoY Result YoY Net sales 3,986 0.0% 6,312 12.7% 8,659 10.9% 9,221 9.9% 28,179 9.3% Operating income △
Slide 28: Exchange Rate Impact
Exchange Rate Impact ◆Key Currencies and the Company’s Average ◆Impact of Exchange Rates on P&L Exchange Rates （Yen） （Billion Yen） 140 2014 2015 Bussiness Currency Remarks USD Result Target AUD MYR Oceania business AUD 1.7 -0.7 RMB ￥115.0 Southeast Asia busine - 1.4 1.9 120 Chinese business RMB 0.9
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