Asahi Group Holdings Ltd · TSE:2502
Asahi — FY2023 Earnings Presentation
35 slides from Asahi's earnings presentation, Feb 14, 2024
Slide 1: Q4 2023 Financial Results
Q4 2023 Financial Results Business Overview for 2023 and Business Strategy for 2024 February 14, 2024
Slide 2: Executive Summary
Executive Summary ◆ Overview of 2023 ➢ Achieved 6.8% growth in revenue and 3.9% growth in Core Operating Profit (constant currency basis) • Achieved forecasts after benefits of higher revenue and greater cost efficiencies offset large cost increases • Increased our competitive advantage in major mar
Slide 3: Evolve Management to Achieve True Global Operations
Evolve Management to Achieve True Global Operations Ongoing Global Management Initiatives M&A and post merger integration execution, and create regional synergies in Europe and Oceania Establish a framework with four regional headquarters (RHQ*) and improve each HQ’s competitive advantage Strengthen
Slide 4: Evolve Group Governance (After April 2024)
Evolve Group Governance (After April 2024) ⚫ Evolve the Board of Directors composition (included a majority of outside directors, as well as five women and two foreign nationals to promote diversity) Board of Directors Outside Directors Akiyoshi Koji Atsushi Katsuki Keizo Tanimura Kaoru Sakita Naoko
Slide 5: Progress of Medium- to Long-Term Management Policy
Progress of Medium- to Long-Term Management Policy ➢ Improved unit sales prices or beer-type and non-alcohol beer*(P.9) Business ➢ Expanded sales of our five global brands (P.9-10) Portfolio ➢ Launch of U.S. investment company. Developed new applications for yeast and lactic acid bacteria technologi
Slide 6: Progress of Medium-Term Guidelines and Financial Policy
Progress of Medium-Term Guidelines and Financial Policy ⚫ Guidelines for Key Indicators Guidelines (three-year horizon) 2022-2024 Forecasts Core Operating • CAGR: high single digit*1 4.9% Profit EPS （adjusted*2 ） • CAGR: high single digit*1 4.4% FCF*3 • Annual average of JPY 200 billion or higher JP
Slide 7: Reference: Dividends Offered Over Time
Reference: Dividends Offered Over Time *1 Adjusted EPS used for EPS from 2017 onward *2 Used Japanese accounting standards through 2015. Adopted IFRS accounting standards from 2016 onward ⒸASAHI GROUP HOLDINGS. All rights reserved. 6
Slide 8: Generate/Allocate CF to Improve Corporate Value
Generate/Allocate CF to Improve Corporate Value Strengthen strategic Revenue growth investment • Pursue premium strategy • Brand enhancement ✓ Improve unit sales price (price mix) • Promote core strategies ✓ Expand global brands ✓ Sustainability: JPY 50 billion or （CAGR of roughly +10% through 2030*
Slide 9: Reference: Brand Investment
Reference: Brand Investment ⚫ Advertisement and Sales ⚫ Revenue-to-Advertisement and Promotion Expenses Sales Promotion Expenses Ratio (JPY Billion) *１ Group-wide advertisement and sales promotion expenses *2 Ratio of advertisement and sales promotion expenses to net revenue (excl. liquor tax) ⒸASAH
Slide 10: Premium Strategy Progress
Premium Strategy Progress ⚫ Beer-Type Beverages + Non-Alcohol Beer 2023 Results (YoY) Japan Europe Oceania Total Improvement in Unit Sales Price （Excluding Liquor Tax） ＋8.1％ ＋14.9％ ＋4.2％ ＋9.5％ Revenue +6.3％ +4.6％ +7.5％ +12.5％ Sales Volume -1.7％ -2.1％ +0.4％ -1.8％ *The above figures are calculated bas
Slide 11: Global Brands
Global Brands Global Super Premium Heroes Seek to enhance brand value by expanding each core brand’s worldview through brand extension and partnership development ⚫ Asahi Super Dry • Partnerships with Rugby World Cup and City Football Group have increased brand awareness • Sales volume during the Se
Slide 12: Variable Cost Increases and Outlook
Variable Cost Increases and Outlook Cost 2023 Result 2024 Forecast Increase (Group Total) Less than JPY 95.0 billion Approx. JPY 20.0 billion Japan Europe Oceania 2023 2024 2023 2024 2023 2024 ➢ Aluminum ➢ Aluminum ➢ Malt / Barley ➢ Logistic ➢ Ocean freight ➢ Ocean freight costs ➢ PET resin ➢ PET re
Slide 13: Japan: Overview and Direction
Japan: Overview and Direction Core OP Revenue Core OP Margin 2023 Results +6.3% +9.8% 11.3% 2024 Forecasts +2.0% +1.9% 11.3% * Revenue and Core Operating Profit figures are YoY * Excludes liquor tax ＜Overview for 2023＞ ⚫ Achieved better-than-expected performance thanks to appropriate pricing strateg
Slide 14: Japan (Alcohol Beverages Business): Main Topics
Japan (Alcohol Beverages Business): Main Topics ⚫ Ongoing Beer Regression Analysis ⚫ Brand Investment Reaps Benefits Canned beer market by category Asahi canned beer sales 2023 sales volume (vs. 2020) Canned beer +18% Super Dry ※ canned beer +9% *2020：Super Dry core product 2023：Super Dry core produ
Slide 15: Japan (Non-Alcohol Beverages, Food Business): Main Topics
Japan (Non-Alcohol Beverages, Food Business): Main Topics ⚫ Non-Alcohol Beverages Business 2023 Topics 2024 Topics • Launched Asahi Sou green tea brand • Measures to mark Mitsuya and Wilkinson anniversaries (refreshed • Strengthened health-conscious products, new product launches) value proposition
Slide 16: Europe: Overview and Direction
Europe: Overview and Direction Core OP Revenue Core OP Margin 2023 Results ＋10.6% -1.0％ 14.9％ 2024 Forecasts ＋7.5％ ＋1.3％ 14.0％ * Revenue and Core Operating Profit figures are YoY * Excluding the impact of currency translation of local currencies into Euro, and liquor tax * YoY changes are calculated
Slide 17: Europe: Main Topics
Europe: Main Topics ⚫ Growth Rate by Segment (2023) ⚫ Beer Volume Share in Major Countries Total Beer ＋0.7pt YoY （＋2.0pt vs.2021) Premium ＋0.9pt YoY （＋2.1pt vs.2021) Mainstream ＋0.7pt YoY （＋2.3pt vs.2021) Source: Asahi estimates, aggregated figures shown for 8 key European markets (CZ, HU, IT, NL, P
Slide 18: Oceania: Overview and Direction
Oceania: Overview and Direction Core OP Revenue Core OP Margin 2023 Results ＋7.3% +0.8％ 23.0％ 2024 Forecasts ＋6.8％ ＋9.9％ 24.0％ * Calculated by excluding the foreign exchange effects of local currencies and liquor tax * YoY changes are calculated by converting foreign currency amounts for the current
Slide 19: Oceania: Main Topics
Oceania: Main Topics ⚫ Top-Line Growth Increase after integration of CUB business Great Northern (sales volume vs. 2019) 2023 sales volume +4.7% Great Northern +40.3% (YoY change) * Total of Great Northern Super Crisp ASD and Peroni* +24.2% and Great Northern Original *All Peroni brands ⚫ Upgrading
Slide 20: Sustainability: Environment
Sustainability: Environment ⚫ Revised up Asahi Carbon Zero mid- to long-term target on reducing CO2 emissions • Following the recent description of the global climate crisis as “global boiling,” we have brought forward the year for achieving our Asahi Carbon Zero target for net zero Scope 1, 2, and
Slide 21: Sustainability: Social
Sustainability: Social ⚫ Revised composition ratio targets for non-alcohol beer, low-alcohol beverages Newly revised sales volume composition targets: （Previous target) 15% by 2025 ⇒ （New target) 20% by 2030 Seek to help reduce net per capita level of alcohol consumption and heavy drinking, which ar
Slide 22: Summary of 2023 Results and 2024 Forecasts
Summary of 2023 Results and 2024 Forecasts
Slide 23: Revenue/Core Operating Profit
Revenue/Core Operating Profit 2023 Results ➢ Revenue: +6.8% YoY. Unit sales price improved primarily on the back of pricing strategies and premiumization efforts. ➢ Core Operating Profit: +3.9% YoY. Despite significant increases in variable costs, Core OP expanded on higher revenue and greater indiv
Slide 24: Operating Profit/Profit Attributable to Owners of Parent
Operating Profit/Profit Attributable to Owners of Parent (Actual Currency Basis) (Actual Currency Basis) 2023 2024 2023 Results (JPY Billion) Change YoY vs Forecasts Change YoY Results Forecasts Revenue 2,769.1 258.0 10.3% 79.1 2,840.0 70.9 2.6% ➢ Operating profit: +12.9% YoY. Rebounded compared to
Slide 25: Statement of Financial Position/Statement of Cash Flow
Statement of Financial Position/Statement of Cash Flow 2023 2024 2023 Results (JPY Billion) Change YoY vs Forecasts Change YoY Results Forecasts ➢ B/S: Total assets increased by JPY Total assets 5,285.9 455.6 9.4% 285.9 5,260.0 - 25.9 - 0.5% 455.6 billion compared to end 2022 as Total equity 2,465.8
Slide 26: Japan
Japan 2023 2024 2023 Results (JPY Billion) Change YoY vs Forecasts Change YoY Results Forecasts ➢ Revenue: +4.7% YoY. Thanks to the Alcohol Beverages Business 811.3 25.0 3.2% 19.4 821.0 9.7 1.2% on-premise recovery in the Alcohol Non-Alcohol Beverages Business 382.2 14.9 4.0% 6.7 390.7 8.5 2.2% Beve
Slide 27: Europe
Europe 2023 2024 （EUR Million） Results Change YoY vs Forecasts Forecasts Change YoY 2023 Results Revenue 4,528 344 8.3% - 118 4,822 344 7.6% ➢ Revenue: +8.3% YoY. Despite the decline in sales volumes caused by Core OP 559 -6 -1.0% - 12 557 7 1.3% persistent inflation, revenue increased on the back o
Slide 28: Oceania
Oceania 2023 2024 (AUD Million) Change YoY vs Forecasts Change YoY Results Forecasts Revenue 6,985 581 9.1% 58 7,423 437 6.3% 2023 Results Core Operating Profit 1,185 9 0.8% -11 1,303 118 9.9% ➢ Revenue: +9.1% YoY. Thanks to increased sales volumes spearheaded by main brands, as well as the recovery
Slide 29: Reference
Reference
Slide 30: FX Impact (2023 Results)
FX Impact (2023 Results) (Actual Currency Basis) (Constant Currency Basis) 2023 Exchange Rate Trends (JPY Billion) Prev. Year Change YoY FX Impact Change YoY Results 2023 2022 (JPY) Japan 1,362.9 1,301.7 61.1 4.7% - 61.1 4.7% Results Results Europe 688.7 573.9 114.8 20.0% 67.4 47.5 8.3% EUR 152.1 13
Slide 31: FX Impact (2024 Forecasts)
FX Impact (2024 Forecasts) (Actual currency basis) (Constant currency basis) 2024 Exchange Rate Trends (JPY Billion) Prev. Year Change YoY FX Impact Change YoY Forecasts 2024 2023 Japan 1,378.0 1,362.9 15.1 1.1% - 15.1 1.1% (JPY) Forecasts Results Europe 723.3 688.7 34.6 5.0% - 17.8 52.4 7.6% EUR 15
Slide 32: Japan (Alcohol Beverages: Revenue/Sales Volume)
Japan (Alcohol Beverages: Revenue/Sales Volume) (JPY Billion) 2023 2024 *Before rebate deduction Change YoY vs Forecasts Change YoY Results Forecasts Beer-type beverages 611.1 17.8 3.0% 14.9 621.0 9.9 1.6% Whiskey and spirits 66.3 11.0 19.9% 0.4 61.7 - 4.6 - 7.0% RTD 36.8 1.1 2.9% 1.2 39.0 2.2 6.1%
Slide 33: Japan (Non-Alcohol Beverages: Sales Volume)
Japan (Non-Alcohol Beverages: Sales Volume) 2023 2024 (Millions of cases) Change YoY vs Forecasts Change YoY Results Forecasts Carbonated drinks 86.58 4.08 4.9% 3.58 84.80 - 1.77 - 2.0% Lactic acid drinks 43.67 - 0.81 - 1.8% 1.77 43.50 - 0.17 - 0.4% Coffee 29.41 - 3.37 - 10.3% - 0.89 29.70 0.29 1.0%
Slide 34: Japan (Alcohol & Non-Alcohol Beverages: Breakdown of Changes in Profit)
Japan (Alcohol & Non-Alcohol Beverages: Breakdown of Changes in Profit) ⚫ Alcohol Beverages Business Factors contributing to profit increase/decrease 2023 (JPY Billion) Results Change YoY vs Forecasts • Change in sales and others: +35.0 (Sales volume in beer-type +27.8, Sales in other alcohol bevera
Slide 35: Information in this material is not intended to solicit the sale or purchase of shares
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