Asahi Group Holdings Ltd · TSE:2502
Asahi — FY2011 Earnings Presentation
20 slides from Asahi's earnings presentation, February 2012
Slide 1: 2011 Financial Results Briefing
2011 Financial Results Briefing February 2012 Asahi Asahi Group Holdings, Ltd.
Slide 2: Executive Summary
Executive Summary @ Achieved record-high operating income exceeding plan despite a sales decrease due to factors including the impact of the earthquake disaster -Amid stagnation of the market for beer-type beverages due to factors including the earthquake, steadily achieved share increases and imple
Slide 3: Record-high operating income exceeded plan despite a sales decrease
Record-high operating income exceeded plan despite a sales decrease due to factors including the impact of the earthquake (billions of yen) Operating income mam Net income —#—Net sales 2011 2010 Result Result 942.4 989.2 468 5% 329.8 312.2 +176 +6% 97.3 Inc./Dec. YoY Billions of yen 1,472 1,480 1,46
Slide 4: Achievement of sales and profit increases and net income of ¥65.0 billion
Achievement of sales and profit increases and net income of ¥65.0 billion in the final year of the medium-term managementplan (billions of yen) Operating income mum Net income —s—Net sales 2012 2010 eva —@ Operating margin ELE. 8 1,560 lAlcoholic Beverages 963.6 y +214 Billions of yen Soft drinks 1,
Slide 5: Progress with the Medium-Term Management Plan (Profitability)
Progress with the Medium-Term Management Plan (Profitability) Asahi Medium-Term Busi (%) Medium-Term Business Plan 2012 Fem Tees 120 7 (‘Existing Business OP Margin) . 113 10: Alcoholic 11% over “alter transfer holding 100 fF ‘company expenses 89 88 78 50 8.2 (pre-amértization) 80 Ff 73 1 Consolidat
Slide 6: Progress with the Medium-Term Management Plan (Cash Flow and Balance Sheets)
Progress with the Medium-Term Management Plan (Cash Flow and Balance Sheets) Asahi @ Operating Cash Flow and Capital Composition Billions of yen Billions of yen 140 Capital Expenditure Cumulated —— Medium-Term 120 Free Cash Flow 2010-2012 Management Plan 100 Operating Cash Flow 369.1 340.0 40 Expend
Slide 7: Group Profit Structure Reforms
Group Profit Structure Reforms @ Progress with Group Cost Reductions Billions of yen Mediu: Manai Asahi Breweries 13. 0| 18.7 25.0~30.0 Asahi Soft Drinks 50. 3.3 1.0 gs 4 Others 0.4 06 0.8 1.8 1 Total | 18.4 | 22.6 6.3 | 47. 3 30.0~35. 0 Over- achievernent of the medium- term plan @ Impact on Perfor
Slide 8: Reference: Marketing Expenses of Alcoholic Business
Reference> 4 G. Marketing Expenses of Alcoholic Business Asahi Breakdown of advertising and sales promotion expenses over time Billions of yen ee ee ~ ‘ales promotion epentee 778 808 779 649 641 665 625 (4.0) [Acsertising expenses 32.2 32.7 349 323 332 30.7 26.0 (47) Total 110.0, 113.5) 112.8 97.2,
Slide 9: Beer-type beverages: taxable sales volume (Jan–Dec 2011)
@ Beer-type beverages: taxable sales volume (Jan — Industry total Dec 2011) Millions of cases Asahi Breweries 100% 34.7% 15.4% 50% New genre Beer m i 50.0% l Cases | YoY | Composition Cases YoY Market share} Change Beer 221.03 (4.1)% 50.0% 111.61 (4.3)%| 50.5%| (0.1)% Happosu 68.02) (12.9)% 15.4% 16
Slide 10: 2012 Alcoholic Beverage Business Strategy: Beer-Type Beverage Marketing Strategy
©&_ 2012 Alcoholic Beverage Business Strategy Asahi @ Beer-Type Beverage Marketing Strategy @ Ensure growth of category-leading brands and increase added value. + Strengthen and develop key brands in each category/genre, with a central focus on Super Dry and Clear Asahi. @ Realize first-to-market pr
Slide 11: Beer-Type Beverage Brand Strategies
Beer-Type Beverage Brand Strategies Asahi Continue initiatives targeting core users and step up promotion to new customer segments (young people, women) Expansion of the Extra Cold campaign Continuation of the Refreshingly Sustainable Project First Super Dry brand extension product Increased quality
Slide 12: Strategy: Overview of 2011 and Strategy for 2012
d Strategy @ Overview of 2011 and Strategy for 2012 @Lower sales and profits due to factors including cessation of production of non-alcoholic beverages and reduced RTD beverage availability as a result of the earthquake’s impact on procurement, production, and distribution = Launch Dry Zero and inc
Slide 13: Soft Drinks Business Overview and Strategy
Soft Drinks Business Overview and Strategy Asahi Asahi Soft Drinks Growth Strategy Three Key Brands @WONDA and Juroku-cha are selling well, nine consecutive sales increase (achieving record-high sales) = Aim for market share of 10% or higher by strengthening the three key brands and long-selling bra
Slide 14: Food Business Overview and Strategy
Asahi f_ Food Business Overview and Strategy Past Performance and 2012 Plan @ “BAsahi Food and Healthcare © =“ Wakodo E | Amano ditsugyo BG Sanwell =e margin(Total) 5.0% illions of yen 4 8% 140 | ( 45% 120 3.8% 100 19.8 ‘ | } jog fd 08 160 | 80 | ai 0. 6 7. 6. ; 60 Ba. 40 5. 8. 20. B8. 7 | 0 - 2008
Slide 15: Overseas Business
Overseas Business Ting Hsin Holding Tingyi-Asahi Beverages Holding Tsingtao Brewery Yantai Beer Tsingtao Asahi 51% 4 San / HES westment in alcoholic manufacturer HE vestment in soft drinks manufacturer Production base Investment ratio (subsidiaries) [EG _ivestment ratio (equity method affiliates) Sc
Slide 16: Asahi Holdings (Australia) Pty Ltd
Asahi Holdings (Australia) Pty Ltd z if 3 i 2 8g a Millions of Australian dollars =No. 2 in soft drink share in Aus. All categories, including carbonated beverages, fruit juice, and mineral water + Mass merchandisers, general retailers, commercial-use, convenience stores Schweppes Net sales. EBITDA
Slide 17: Soft Drinks Business in Southeast Asia
Soft Drinks Business in Southeast Asia Asahi a fg permanis son. sup. @ Permanis Business Strategy Strengthen the business foundation by implementing an aggressive growth strategy. enemas. tne eee MEEBITDA — Net sales Malaysian ringgit (millions) *No. 3 in soft drinks in Malaysia 800 120 -Extensive p
Slide 18: Chinese Beer Business Overview and Strategy
Chinese Beer Business Overview and Strategy Asahi @ 2011 Overview @ Restructuring of the Chinese beer business through the sale of Hangzhou Beer ~E Profitability improvement through means including increased contract production of the Tsingtao brand ee in Beijing and Yantai TSINGTAO @ Business resul
Slide 19: Tingyi-Asahi Beverages Holding (Soft Drink Segment) Results
@ Tingyi-Asahi Beverages Holding (Soft Drink Segment) Results Ee) Tingyi-Asahi Soft Drink Segment Performance (Jan. to Sept. 2011) 3Q Overview * Slowdown in sales growth due to factors including market environment US$ millions deterioration resulting from a CPI increase and the impact of bad weather
Slide 20: Asahi
Asahi LDH. DrbH), Information in this document does not constitute a solicitation to purchase or sell the shares of Asahi Group Holdings, Ltd 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 p