Asahi Group Holdings Ltd · TSE:2502
Asahi — Q2 2023 Earnings Presentation
29 slides from Asahi's earnings presentation, Aug 10, 2023
Slide 1: Q2 2023 Financial Results Presentation
Q2 2023 Financial Results Presentation (Overview of the First Half and Future Direction) August 10, 2023
Slide 2: Executive Summary
Executive Summary ◆ Overview of the First Half ➢ Achieved 5.8% revenue growth and 9.0% core operating profit growth (Constant currency basis) • Achieved higher-than-planned profit growth due to increased revenue and cost management exceeding cost increases • Continued to improve unit prices through
Slide 3: Improvement in Unit Sales Price/Cost Increases
Improvement in Unit Sales Price/Cost Increases ◆ Improvement in Unit Sales Price （H1 YoY） Japan Australia Europe (Alcohol Beverages) (Alcohol Beverages) Beer-Type Beverages Unit Price （Excluding Liquor Tax） ＋9.0％ +16.5％ +2.9％ *Including non-alcohol category *Including non-alcohol category Ref: Overa
Slide 4: Japan: Overview and Direction
Japan: Overview and Direction 2023 Vs Initial 2023 H1 Change YoY Revised Change YoY Forecast (JPY billion) Forecast Revenue 622.0 22.1 3.7% 1,338.0 36.3 2.8% - 13.0 Core OP 52.9 10.1 23.7% 119.0 10.1 9.3% 7.0 <H1 Overview> ⚫ Achieved higher-than-planned profit growth through appropriate pricing stra
Slide 5: Japan (Alcohol Beverages Business): Main Initiatives
Japan (Alcohol Beverages Business): Main Initiatives ⚫ Return to Beer Trend Continues <Can Market Composition Per Category> <Premium Beer> • Launch of the “Asahi Shokusai” premium beer as the second product for the “Nama Jokki Can” Source: Data from Intage SRI+ Composition of canned beer, happoshu a
Slide 6: Japan (Non-Alcohol Beverages Business): Main Initiatives
Japan (Non-Alcohol Beverages Business): Main Initiatives ⚫ Container Product Mix Enhancement ⚫ Strengthening New Value Propositions Strengthen sales of high profitability small PET bottles New “Asahi Sou” brand of green tea with a gorgeous aroma H1 sales volume 2.66 million cases 2023 sales target U
Slide 7: Europe: Overview and Direction
Europe: Overview and Direction * Constant Currency Basis. Calculated by excluding the foreign exchange effects of local currencies to Euro. 2023 Vs Initial 2023 H1 Change YoY Revised Change YoY Forecast (JPY billion) Forecast Revenue 315.3 25.2 9.5% 666.2 63.9 11.1% - 27.7 Core OP 34.5 2.0 7.0% 80.1
Slide 8: Europe: Premiumization Progress and Performance
Europe: Premiumization Progress and Performance ⚫ Trends in Unit Price Growth ⚫ H1: Growth Rate by Segment ⚫ H1: Profit Increase/Decrease Factors ＜Non-Alcohol Beverages Growth Rate＞ YoY in 2023 H1 (volume basis) -3％ (value basis) +15％ ⒸASAHI GROUP HOLDINGS. All rights reserved. 7
Slide 9: Oceania: Overview and Direction
Oceania: Overview and Direction * Constant Currency Basis 2023 Vs Initial 2023 H1 Change YoY Revised Change YoY Forecast (JPY billion) Forecast Revenue 286.5 16.8 6.5% 630.4 48.1 8.2% 2.0 Core OP 42.2 - 0.8 - 1.9% 108.8 1.9 1.7% - * Figures of the YoY change for Constant Currency Basis are calculate
Slide 10: Oceania: Main Initiatives
Oceania: Main Initiatives ⚫ Top-Line Growth Great Northern Promotion of premiumization through active development of H1 sales volume (YoY change) +5% high-end products (craft beer, RTD, etc.) * Total of Great Northern Super Crisp Balter and Great Northern Original H1 sales volume (YoY change) +25% ⚫
Slide 11: Expansion of Global Brands
Expansion of Global Brands ⚫ Scale Initiatives to Drive Fame and Adoption • Asahi Super Dry: YoY＋24% • Peroni Nastro Azzurro: YoY＋3% Partnership with City Football Group centered on Partnership with Aston Martin Aramco Cognizant Manchester City Formula One® team The official beer of Rugby World Cup
Slide 12: Establishment of Asahi Global Procurement
Establishment of Asahi Global Procurement Enhance financial and non-financial value by advancing the procurement function of the entire group (Operation to begin in January 2024) Consolidate and strengthen <Procurement Total Spend Coverage Ratio (2028 target)> procurement functions 50% of total 3rd
Slide 13: Sustainability: Key Initiatives
Sustainability: Key Initiatives Initiatives for climate change, response to plastic issues Japan Europe Oceania • Three plants in the Kyushu region • AEI signed new Virtual Power • Victoria State has appointed switched their electricity purchases to Purchase Agreements in Italy, the UK, VicReturn, a
Slide 14: Sustainability: Key Initiatives
Sustainability: Key Initiatives Reduction in Inappropriate Drinking Realize Sustainable Communities Solution of Alcohol-Related Issues through the Creation of People- through Creation of New Drinking to-People Connection Opportunities Japan Europe (UK) Oceania • Asahi YOU.US, Ltd strengthens • Asahi
Slide 15: Summary of Q2 2023 Financial Results and Full-Year Forecast
Summary of Q2 2023 Financial Results and Full-Year Forecast
Slide 16: Revenue / Core Operating Profit
Revenue / Core Operating Profit (Constant Currency Basis) (Constant Currency Basis) 2023 Vs Initial (JPY billion) H1 Change YoY Revised Change YoY Forecast Forecast <H1 Results> Japan 622.0 22.1 3.7% 1,338.0 36.3 2.8% - 13.0 ➢ Revenue: +5.8% YoY as revenue increased Europe 315.3 25.2 9.5% 666.2 63.9
Slide 17: Operating Profit / Profit Attributable to Owners of Parent
Operating Profit / Profit Attributable to Owners of Parent (Actual Currency Basis) (Actual Currency Basis) 2023 Vs Initial (JPY billion) H1 Change YoY Revised Change YoY <H1 Results> Forecast Forecast Revenue 1,253.0 101.7 8.8% 2,690.0 178.9 7.1% - ➢ Operating Profit: +18.0% YoY, mainly due to the r
Slide 18: Statement of Financial Position / Statement of Cash Flow
Statement of Financial Position / Statement of Cash Flow <H1 Results> 2023 Vs Initial (JPY billion) H1 Change YoY Change YoY ➢ B/S: Total assets increased JPY 435.1 billion Forecast Forecast from the end of the previous year due to an Total assets 5,265.5 435.1 9.0% 5,000.0 169.7 3.5% 120.0 increase
Slide 19: Japan
Japan <H1 Results> 2023 ➢ Revenue: +3.7% YoY in total due to Vs Initial (JPY billion) H1 Change YoY Revised Change YoY Forecast increased sales including the effect of price Forecast revisions in each business Alcohol Beverages Business 363.3 7.3 2.1% 791.9 5.7 0.7% 2.1 ➢ Core Operating Profit: +23.
Slide 20: Japan (Alcohol Beverages: Revenue / Sales Volume)
Japan (Alcohol Beverages: Revenue / Sales Volume) (JPY billion) 2023 Vs Initial *Before rebate deduction H1 Change YoY Revised Change YoY Forecast <H1 Results> Forecast Beer-type beverages 268.9 4.7 1.8% 596.3 2.9 0.5% - 15.6 ➢ Revenue from Beer-type beverages sales Whiskey and spirits 30.8 6.3 25.8
Slide 21: Japan (Alcohol Beverages: Breakdown of Changes in Profit)
Japan (Alcohol Beverages: Breakdown of Changes in Profit) 2023 Vs Initial (JPY billion) H1 Change YoY Revised Change YoY Forecast Forecast Change in sales, category and container mix - 14.9 - 29.5 3.0 Cost reduction in manufacturing - 1.1 - 2.5 0.7 <H1 Results> Cost increase in manufacturing - - 8.8
Slide 22: Japan (Non-Alcohol Beverages: Sales Volume)
Japan (Non-Alcohol Beverages: Sales Volume) 2023 Vs Initial (Millions of cases) H1 Change YoY Revised Change YoY Forecast Forecast Carbonated drinks 39.88 0.03 0.1% 83.00 0.50 0.6% - 4.70 <H1 Results> Lactic acid drinks 19.95 - 1.66 - 7.7% 41.90 - 2.58 - 5.8% - 2.20 Coffee 15.25 - 1.09 - 6.7% 30.30
Slide 23: Japan (Non-Alcohol Beverages: Breakdown of Changes in Profit)
Japan (Non-Alcohol Beverages: Breakdown of Changes in Profit) 2023 Vs Initial (JPY billion) H1 Change YoY Revised Change YoY Forecast Forecast Change in sales, category and container mix - 2.5 - 8.4 - 6.4 Cost reduction in manufacturing - 1.1 - 2.6 1.3 Cost increase in manufacturing - - 9.8 - - 22.9
Slide 24: Europe
Europe 2023 Vs Initial <H1 Results> （Khl／million Euro） H1 Change *1 YoY *1 Revised Change *1 YoY *1 Forecast *2 Forecast ➢ Sales Volume: -3.8% YoY, mainly due to the Revenue 2,161 187 9.5% 4,495 462 11.1% - 198 impact of inflation ➢ Revenue: +9.5% YoY due to the effect of Core OP*1 236 15 7.0% 532 5
Slide 25: Oceania
Oceania 2023 Vs Initial*2 (million AUD) H1 Change YoY Revised Change YoY Forecast Forecast Revenue 3,141 190 6.5% 6,927 523 8.2% 22 <H1 Results> Core Operating Profit 463 -9 -1.9% 1,195 20 1.7% - ➢ Revenue: +6.5% YoY due to the increase in sales volume of main brands (Australian Alcohol Beverages),
Slide 26: Reference
Reference
Slide 27: FX Impact (H1 Results)
FX Impact (H1 Results) (Actual Currency Basis) (Constant Currency Basis) (JPY billion) H1 Prev. Year Change YoY FX Impact Change YoY <Exchange Rate Trends> Japan 622.0 599.9 22.1 3.7% - 22.1 3.7% Europe 315.3 265.2 50.1 18.9% 24.9 25.2 9.5% 2023 H1 2022 H1 (Yen) Results Results Oceania 286.5 261.1 2
Slide 28: FX Impact (Full-Year Forecast)
FX Impact (Full-Year Forecast *Aug 9 Released) (Actual currency basis) (Constant currency basis) 2023 (JPY billion) Revised Prev. Year Change YoY FX Impact Change YoY <Exchange Rate Trends> Forecast 2023 Japan 1,338.0 1,301.7 36.3 2.8% - 36.3 2.8% Revised 2022 (Yen) Forecast Results Europe 666.2 573
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