Asahi Group Holdings Ltd · TSE:2502

Asahi — Q2 2022 Earnings Presentation

32 slides from Asahi's earnings presentation, Aug 10, 2022

  1. Slide 1: Q2 2022 Financial Results (H1 Overview and Future Direction)

    Q2 2022 Financial Results (H1 Overview and Future Direction) August 10, 2022

  2. Slide 2: Executive Summary

    Executive Summary ◆ H1 Overview <Results> ➢ Core Operating Profit on track despite worse-than-expected cost increases thanks to flexible pricing strategy and strengthened cost management ➢ Achieved steady topline growth centered on core brands by improved unit prices, including a recovery in on-prem

  3. Slide 3: Improvement in Unit Sales Price (H1 Results)

    Improvement in Unit Sales Price (H1 Results) Japan Australia Europe (YoY) (Alcohol Beverages) (Alcohol Beverages) Beer-Type Beverages Unit Price （Excluding Liquor Tax） ＋1.9％ +13.6％ +2.8％ *Including non-alcohol category Ref: Overall Business Revenue （Excluding Liquor Tax） ＋11.5％ +18.8% +1.8％ ➢ On-pre

  4. Slide 4: Cost Increases and Countermeasures

    Cost Increases and Countermeasures H1 Results Full-Year Forecast Cost Increase (Group Total) Just over JPY 30 billion Approx. JPY 80 billion <By Region> Japan Europe Oceania ➢ Aluminum ➢ Glass bottle ➢ Aluminum Main ➢ Fuel ➢ Malt ➢ Ocean Freight Factors ➢ Supplementary materials ➢ Electricity, gas ➢

  5. Slide 5: Sales Trend by Region

    Sales Trend by Region Japan (Alcohol Beverages) *Value basis (Beer-type Beverages total) YoY Vs 2019 ⚫ H1 2022 Results ・Revenue +14.5% YoY (-13% vs 2019) On-premise: +Low 40% range YoY (-High 40% range vs 2019) Off-premise: +5% YoY (+2% vs 2019) *Figures by channel are based on sales volume (beer-ty

  6. Slide 6: Japan: Overview and Direction

    Japan: Overview and Direction 2022 Vs Initial 2022 H1 Change YoY Revised Change YoY Forecast (JPY billion) Forecast Revenue 599.9 44.0 7.9% 1,317.5 98.1 8.0% - 14.1 Core OP 42.8 0.0 0.1% 111.4 7.9 7.6% - <H1 Overview> Alcohol Beverages Business: Accelerate momentum recovery by increasing sales of ca

  7. Slide 7: Japan (Alcohol Beverages Business): Main Initiatives

    Japan (Alcohol Beverages Business): Main Initiatives ⚫ Strengthen Canned Beer ・Sales growing faster than market as a whole ・Number of Asahi Super Dry consumers (million) YoY (volume basis) Jan-Mar Apr-Jun Jan-Jun 22 As of June 30, 2022 +Low 20% +Slight Less than 20 20.31 million Market range increas

  8. Slide 8: Japan (Non-Alcohol Beverages Business): Main Initiatives

    Japan (Non-Alcohol Beverages Business): Main Initiatives ⚫ Strengthened Sugar-Free Drinks in Response to Demand for Healthy Products ・Launched the #sober series of Wilkinson, targeting the sober-curious* ・ Launched Wakocha to attract demand for relaxing drinks ・ Made from 100% Japanese tea leaves, h

  9. Slide 9: Europe: Overview and Direction

    Europe: Overview and Direction 2022 Vs Initial 2022 H1 Change YoY Revised Change YoY Forecast (JPY billion) Forecast Revenue 265.2 38.1 17.6% 565.1 78.2 16.5% - 12.1 Core OP 28.9 1.3 4.9% 74.4 - 2.8 - 3.7% - 6.8 * Figures of the YoY change for Constant Currency Basis are calculated by converting for

  10. Slide 10: Europe: Premiumization Progress and Performance

    Europe: Premiumization Progress and Performance ⚫ H1: Growth Rate by Category ▪ In addition to appropriate price pass-through, sales volume in the premium category exceeded that of the overall business, resulting in a significant improvement in the unit price. 30% Sales Volume Net Sales (excl. liquo

  11. Slide 11: Oceania: Overview and Direction

    Oceania: Overview and Direction 2022 Vs Initial 2022 H1 Change YoY Revised Change YoY Forecast (JPY billion) Forecast Revenue 261.1 6.6 2.8% 558.0 23.1 4.6% - 9.2 Core OP 41.8 - 0.9 - 2.3% 103.5 13.9 16.8% - 1.0 * Figures of the YoY change for Constant Currency Basis are calculated by converting for

  12. Slide 12: Oceania: Overview and Main Initiatives

    Oceania: Overview and Main Initiatives ⚫ Sustained Top-Line Growth Sustained above-market growth Enhanced presence in the craft beer market of Great Northern with the Balter brand Brand total* Craft Beer Category 1st Half sales volume 1st Half sales volume (YoY change) +6% (YoY change) +8% Great Nor

  13. Slide 13: Global Brands

    Global Brands ⚫ Expansion of Global Brands H1 Results of the 5 global brands YoY +14% • Asahi Super Dry: YoY +14% Campaign "Beyond Expected" and announced Partnership with City Football Group • Peroni Nastro Azzurro: YoY +17% Launched Peroni Nastro Azzurro 0.0% and activated with Aston Martin F1 tea

  14. Slide 14: Southeast Asia: Overview and Direction

    Southeast Asia: Overview and Direction 2022 Vs Initial 2022 H1 Change YoY Revised Change YoY Forecast (JPY billion) Forecast Revenue 25.1 0.3 1.2% 48.2 2.9 6.9% - 4.6 Core OP - 0.2 - 0.7 - 0.0 - 0.4 - 100.0% - 1.6 * Figures of the YoY change for Constant Currency Basis are calculated by converting f

  15. Slide 15: Sustainability: Initiatives in Key Areas of Focus

    Sustainability: Initiatives in Key Areas of Focus Respond to climate change, Respond to plastic issue Japan Europe (Czechia) Oceania ・ Participated in the "30 by 30 Alliance for Biodiversity," ・ Construction of a fully automated ・ All 450ml and 600ml soft drink bottles a coalition of industry-govern

  16. Slide 16: 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) Japan ・ Established a new compa

  17. Slide 17: Summary of Q2 2022 Financial Results and Full-Year Forecast

    Summary of Q2 2022 Financial Results and Full-Year Forecast

  18. Slide 18: Revenue / Core Operating Profit

    Revenue / Core Operating Profit (Constant Currency Basis) (Constant Currency Basis) 2022 Vs Initial (JPY billion) H1 Change YoY Revised Change YoY Forecast Forecast H1 Results Japan 599.9 44.0 7.9% 1,317.5 98.1 8.0% - 14.1 ➢ Revenue: +8.6% YoY due to higher sales in Europe 265.2 38.1 17.6% 565.1 78.

  19. Slide 19: Operating Profit / Profit Attributable to Owners of Parent

    Operating Profit / Profit Attributable to Owners of Parent (Actual Currency Basis) (Actual Currency Basis) H1 Results 2022 Vs Initial (JPY billion) H1 Change YoY Revised Change YoY ➢ Operating profit: -25.6% YoY mainly due to Forecast Forecast the previous year’s gain on sales of non Revenue 1,151.3

  20. Slide 20: Statement of Financial Position / Statement of Cash Flow

    Statement of Financial Position / Statement of Cash Flow 2022 Vs Initial H1 Results (JPY billion) H1 Change YoY Revised Change YoY Forecast Forecast ➢ B/S: Total assets increased by JPY 379.3 billion Total assets 4,927.0 379.3 8.3% 4,700.0 152.3 3.3% 200.0 from the end of the previous year mainly du

  21. Slide 21: Japan

    Japan H1 Results ➢ Revenue: +7.9% YoY mainly due to a 2022 recovery in on-premise sales of Alcohol Vs Initial (JPY billion) H1 Change YoY Revised Change YoY Forecast Beverages Business and the strengthening of Forecast the Super Dry brand. Alcohol Beverages Business 356.0 39.5 12.5% 795.2 73.0 10.1%

  22. Slide 22: Japan (Alcohol Beverages: Revenue / Sales Volume)

    Japan (Alcohol Beverages: Revenue / Sales Volume) (JPY billion) 2022 Vs Initial H1 Results *Before rebate deduction H1 Change YoY Revised Change YoY Forecast Forecast ➢ Revenue from beer-type beverages sales Beer-type beverages 264.2 33.4 14.5% 610.1 71.4 13.2% 8.1 increased +14.5% YoY due to a reco

  23. Slide 23: Japan (Alcohol Beverages: Breakdown of Changes in Profit)

    Japan (Alcohol Beverages: Breakdown of Changes in Profit) 2022 Vs Initial (JPY billion) H1 Change YoY Revised Change YoY Forecast Forecast Change in sales, category and container mix - 15.0 - 33.0 - 1.3 Cost reduction in manufacturing - 0.8 - 1.0 - 0.3 H1 Results Cost increase in manufacturing - - 4

  24. Slide 24: Japan (Non-Alcohol Beverages: Sales Volume)

    Japan (Non-Alcohol Beverages: Sales Volume) 2022 Vs Initial (Millions of cases) H1 Change YoY Revised Change YoY Forecast Forecast Carbonated drinks 39.85 1.32 3.4% 83.80 3.48 4.3% - 0.71 Lactic acid drinks 21.61 0.83 4.0% 44.00 1.82 4.3% 0.89 H1 Results Coffee 16.34 - 1.14 - 6.5% 34.00 - 1.38 - 3.9

  25. Slide 25: Japan (Non-Alcohol Beverages: Breakdown of Changes in Profit)

    Japan (Non-Alcohol Beverages: Breakdown of Changes in Profit) 2022 Vs Initial (JPY billion) H1 Change YoY Revised Change YoY Forecast Forecast Change in sales, category and container mix - 0.4 - 10.3 2.2 Cost reduction in manufacturing - 0.9 - 1.8 0.3 Cost increase in manufacturing - - 4.4 - - 10.8

  26. Slide 26: Europe

    Europe 2022 H1 Results Vs Initial （Khl／million Euro） H1 Change *1 YoY *1 Revised Change *1 YoY *1 Forecast *2 Forecast ➢ Sales Volume: +4.6% YoY due to significant Revenue recovery of on-premise, comparing to strict 1,974 293 17.6% 4,217 602 16.5% △ 94 (Incl. liquor tax) restrictions in European cou

  27. Slide 27: Oceania

    Oceania 2022 Vs Initial (million AUD) H1 Change YoY Revised Change YoY Forecast Forecast H1 Results Revenue 2,950 79 2.8% 6,340 280 4.6% -114 ➢ Revenue: +2.8% YoY due to sales growth in core categories such as contemporary beer Core Operating Proifit 472 -11 -2.3% 1,176 169 16.8% -12 and carbonated

  28. Slide 28: Reference

    Reference © ASAHI GROUP HOLDINGS. All rights reserved.

  29. Slide 29: 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 Japan 599.9 555.9 44.0 7.9% - 44.0 7.9% (Yen) H1 2022 H1 2021 Europe 265.2 216.0 49.2 22.8% 11.1 38.1 17.6% Euro 134.4 129.9 Oceania 261.1 238.7

  30. Slide 30: FX Impact (Full-Year Forecast)

    FX Impact (Full-Year Forecast *Aug 9 Released) (Actual Currency Basis) (Constant Currency Basis) 2022 (JPY billion) Revised 2021 Change YoY FX Impact Change YoY <Exchange Rate Trends> Results Forecast 2022 2021 Japan 1,317.5 1,219.4 98.1 8.0% - 98.1 8.0% (Yen) Forecast Results Europe 565.1 474.4 90.

  31. Slide 31: Recovery and Outlook (vs 2019)

    <Reference> Recovery and Outlook (vs 2019) ⚫ Sales Volume by Channel ⚫ Recovery by Region *Compared to 2019, Constant Currency Basis for 2022 Forecast Japan 2020 2021 2022 FC On-premise: Just under -40% vs 2019 (Alcohol (+Low 30% range YoY) Revenue -15% -19% -10% Beverages) Off-premise: +Low single

  32. Slide 32: 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

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