Asahi Group Holdings Ltd · TSE:2502
Asahi — FY2024 Earnings Presentation
38 slides from Asahi's earnings presentation, Feb 14, 2025
Slide 1: Presentation Materials for 2024 Corporate Results
PRESENTATION MATERIALS FOR 2024 CORPORATE RESULTS 2024 OVERVIEW AND FUTURE MANAGEMENT DIRECTION February 14, 2025
Slide 2: Contents
Contents (links) 1. Executive Summary 19. Sustainability: Progress to Date and Future Direction 2. Overview of Medium-term Progress (Group) 20. Digital Transformation Strategy: Progress and Future 3. Priority Issues Designed to Enhance Corporate Value Direction 4. Key Indicator Guidelines and Financ
Slide 3: Executive Summary
Executive Summary ◆ 2024 Overview ➢ Slightly-below-anticipated Core Operating profit: +3.7% YoY overall. While profit declined in the Oceania region due to a tough business environment, profit improved higher than anticipated in Japan and Europe. ➢ Unit sales prices improved on appropriate pricing s
Slide 4: Overview of Medium-term Progress (Group)
Overview of Medium-term Progress (Group) 2020-2024 Overview ⚫ Revenue and profit both declined in 2020 due to COVID-19, and costs （JYP Billion) have continued to rise in an unprecedented fashion since 2022. However, revenue has been rising since 2021 on appropriate pricing strategies and continued i
Slide 5: Key Initiatives Designed to Enhance Corporate Value
Key Initiatives Designed to Enhance Corporate Value Deeper Premium Strategy Disciplined Growth Investment ⚫ Consistently improve unit sales price ⚫ Organic growth investments - Improve local brand mixes - Approx. JPY 170-200 billion capital investment - Ensure appropriate pricing Enhance medium- (20
Slide 6: Key Indicator Guidelines and Financial Policy (Formulated in 2022)
Key Indicator Guidelines and Financial Policy (Formulated in 2022) ➢ FCF and Net Debt/EBITDA are meeting guidelines. Dividend payout ratio topped 40% one year ahead of schedule ➢ Core Operating Profit and EPS fell short of the CAGR guidelines due to unprecedented cost increases and sluggish business
Slide 7: Progress on Key Financial Indicators (2019-2024)
Progress on Key Financial Indicators (2019-2024) ➢ Reduced financial debt, inflated by large-scale acquisitions, by improving FCF generating capabilities. Restored financial soundness to enhance growth investment capacity ➢ Core Operating Profit and EPS recovered to record levels but profit margins
Slide 8: Capital Efficiency and Stock Price Valuations (2019-2024)
Capital Efficiency and Stock Price Valuations (2019-2024) ➢ ROE fell to a level similar to that of the cost of shareholder’s equity due to a decline in profit margins and an increase in currency translation adjustments ➢ Main reasons for depressed PBR: Decline in profit growth and capital efficiency
Slide 9: Revised Key Indicator Guidelines and Financial Policy (2025-2030)
Revised Key Indicator Guidelines and Financial Policy (2025-2030) ➢ Focus on EPS CAGR for profitability indicators because it can reflect profit growth and capital policy, committing to achieve “the high single digits to double digits”. ➢ Urgent need to improve capital efficiency. Add new ROE and RO
Slide 10: Capital Allocation Policy
Capital Allocation Policy ➢ Aim for sustainable growth by expanding organic strategic investments and investing to realize the ideal business portfolio ➢ Seek to increase corporate value over the medium- to long-term by allocating capital to improve capital efficiency and enhance shareholder returns
Slide 11: Evolving Corporate Governance
Evolving Corporate Governance ⚫ Move from a Company with an Audit & Supervisory Board to a Company with a Nominating Committee, etc. (following the annual shareholders meeting’s approval scheduled for March 2025) - Further clarify and strengthen management supervision and business execution roles, f
Slide 12: Changes to Our Regional Headquarters Framework
Changes to Our Regional Headquarters Framework ⚫ Moving from a four RHQ to a three RHQ structure (from April 2025) - Progress the development of a governance framework that promotes swift decision- making and effective business execution - Accelerate our premium, Multi Beverages, and global brand gr
Slide 13: Premium Strategy Progress
Premium Strategy Progress ⚫ Beer and Beer-like beverages+ Beer-taste beverages Categories 2024 Results (YoY) Japan Europe Oceania Total Increase in unit sales price (excluding liquor tax) +3.0% +4.7% −0.4% +2.6% Revenue +1.0% +4.2% −3.8% +1.4% Sales volume −2.0% −0.4% −3.4% −1.2% *Japan includes min
Slide 14: Global Brands: Progress to Date and Future Direction
Global Brands: Progress to Date and Future Direction ⚫ Asahi Super Dry +10% YoY ⚫ Peroni Nastro Azzurro −1% YoY 2020-2024 CAGR +21% 2020-2024 CAGR +9% ・Increased primarily in Asia and Europe in 2024 ・Declined in the UK and Australia due to markets slump in 2024 ・Accelerated growth through local prod
Slide 15: Japan: Medium-term Overview and Future Direction
Japan: Medium-term Overview and Future Direction 2020-2024 Overview ⚫ While the impact of the post-COVID-19 reduction in on-premise business lingers, （JPY Billion) revenue surpassed 2019 levels in 2023 on significant price revisions and improved beer composition ratio ⚫ Core Operating Profit was aff
Slide 16: Japan: Key Topics
Japan: Key Topics ⚫ Ongoing Beer Regression Analysis ⚫ Stimulating Beer Demand Canned beer market by category Strengthen existing brands Develop new products 70% Beer Can New Genre Happoshu 60% 50% Coming soon 40% 30% 20% Source: Intage SRI+ data for composition of canned beer, happoshu and new genr
Slide 17: Europe: Medium-term Overview and Future Direction
Europe: Medium-term Overview and Future Direction 2020-2024 Overview ⚫ Since the COVID-19-induced sales decline in 2020, revenue has increased to （EUR million) approximately 1.3 times the 2019 level on significant price revisions and premiumization ⚫ Core Operating Profit continued to increase as we
Slide 18: Europe: Key Topics
Europe: Key Topics ⚫ Growth Rate by Segment (2024) ⚫ Beer-taste beverages (2024) （YoY） Sales volume +14% Revenue +19% ⚫ Premium Category Initiatives in Major Countries ⚫ Earnings Structure Reform to Improve Margins Aim to generate further growth for 2024 successful brands Generate efficiencies of EU
Slide 19: Oceania: Medium-term Overview and Future Direction
Oceania: Medium-term Overview and Future Direction 2020-2024 Overview ⚫ Revenue on a rising trend due to the expansion of contemporary beers and RTDs (AUD million) as well as portfolio-wide price revisions ⚫ Core Operating Profit maintained a high level over the period, despite the decline in 2024,
Slide 20: Oceania: Key Topics
Oceania: Key Topics ⚫ Australia Alcohol beverages Volumes ⚫ Beer Initiatives for 2025 ・ Renew efforts to enhance contemporary beers such as Great Northern and Carlton 1 Dry 3.5%. ・Grow premium beer products through 1 partnerships and events that generate B Beer only more customer touchpoints ⚫ Enhan
Slide 21: Sustainability: Progress to Date and Future Direction
Sustainability: Progress to Date and Future Direction Five Key Initiative Themes in 2024 Respond to Climate Change • Obtained Science Based Targets initiative (SBTi) Net Zero approval, including FLAG emissions, for our 2040 net zero targets • Launched Sustainability Innovation Program, a new initiat
Slide 22: Digital Transformation Strategy: Progress and Future Direction
Digital Transformation Strategy: Progress and Future Direction ⚫ Digital transformation (DX): Considering business transformation (BX) and promoting innovation in business, process, and organization 【Examples of initiatives in restaurants】 ➢ Realize personalization models and promote sustainability
Slide 23: R&D Strategy: Progress to Date and Future Direction
R&D Strategy: Progress to Date and Future Direction Research Themes in Four Key Domains ⚫ Key Results ・Apply R&D technology to each RHQ product Alcohol- Health & related Wellness ｰ Kozel 0.0%: Developed a brewing method using dealcoholizing technologies with low environmental impact launched in Euro
Slide 24: Enhancing Our Talent Pool: Progress and Future Direction
Enhancing Our Talent Pool: Progress and Future Direction Key Initiatives ● Ideal corporate culture ● Fostering next generation leaders ● Acquiring broader capabilities Formulated and launched the Safety and Developed the Asahi Global Leadership Promoting effective use of talent by assigning Well-bei
Slide 25: Summary of 2024 Results and 2025 Forecasts
Summary of 2024 Results and 2025 Forecasts
Slide 26: Financial Highlights (Revenue and Core Operating Profit)
Financial Highlights (Revenue and Core Operating Profit) (Constant Currency Basis) (Constant Currency Basis) 2024 vs Reviced 2025 (JPY Billion) Change YoY Change YoY Results Forecasts Forecasts 2024 Results Japan 1,362.9 0.0 0.0% 0.2 1,392.0 29.1 2.1% Europe 781.0 31.8 4.6% -3.1 764.0 31.8 4.1% ➢ Re
Slide 27: Operating Profit/Profit Attributable to Owners of Parent
Operating Profit/Profit Attributable to Owners of Parent (Actual Currency Basis) (Actual Currency Basis) 2024 2025 (JPY Billion) Change YoY vs Forecasts Change YoY Results Forecasts 2024 Results Revenue 2,939.4 170.3 6.2% - 10.6 2,970.0 30.6 1.0% Core Operating Profit 285.1 21.4 8.1% - 1.9 287.0 1.9
Slide 28: Statement of Financial Position, Statement of Cash Flow, and Various Individual Indicators
Statement of Financial Position, Statement of Cash Flow, and Various Individual Indicators 2024 2025 (JPY billion) Change YoY vs Forecast Change YoY Results Forecast Total assets 5,403.4 117.5 2.2% - 121.6 5,361.0 - 42.4 - 0.8% 2024 Results Total equity 2,674.1 208.3 8.4% - 32.9 2,596.0 - 78.1 - 2.9
Slide 29: Japan
Japan 2024 2025 (JPY Billion) Change YoY vs Forecasts Change YoY Results Forecasts Alcohol Beverages Business 814.9 3.7 0.5% 1.7 828.0 13.0 1.6% Non-Alcohol Beverages Business 388.9 6.7 1.8% - 0.9 408.7 19.8 5.1% 2024 Results Food Business 134.6 2.4 1.8% 1.6 136.7 2.1 1.5% ➢ Revenue: Flat YoY. While
Slide 30: Europe
Europe 2024 vs 2025 （EUR Million） Change*1 YoY*1 Change*1 YoY*1 Results Forecasts*2 Forecasts Revenue 4,761 209 4.6% -19 4,898 194 4.1% 2024 Results Core Operating Profit 617 62 11.1% 27 649 40 6.5% ➢ Revenue: +4.6% YoY. Buoyed by a stable consumption trend, revenue increased as price revisions and
Slide 31: Oceania
Oceania 2024 2025 (AUD Million) Change YoY vs Forecasts Change YoY Results Forecasts Revenue 7,150 169 2.4% △ 215 7,515 365 5.1% 2024 Results Core Operating Profit 1,087 -97 -8.2% △ 117 1,103 15 1.4% ➢ Revenue: +2.4% YoY. Revenue increased on the back of effective price revisions and growth in RTD s
Slide 32: Reference
Reference
Slide 33: Forex Impact (2024)
Forex Impact (2024) (Actual Currency Basis) (Constant Currency Basis) Main Exchange Rate Trends 2024 (JPY billion) Prev. Year Change YoY FX Impact Change YoY Results 2024 2023 Japan 1,362.9 1,362.9 0.0 0.0% - 0.0 0.0% (JPY) Results Results Europe 781.0 688.7 92.3 13.4% 60.5 31.8 4.6% EUR 164.1 152.1
Slide 34: Forex Impact (2025 Forecasts)
Forex Impact (2025 Forecasts) (Actual Currency Basis) (Constant Currency Basis) Exchange Rate Trends 2025 (JPY billion) Prev. Year Change YoY FX Impact Change YoY Forecasts 2025 2024 Japan 1,392.0 1,362.9 29.1 2.1% - 29.1 2.1% (JPY) Forecasts Results Europe 764.0 781.0 - 17.0 - 2.2% - 48.8 31.8 4.1%
Slide 35: Japan (Alcohol beverages: Revenue/Sales Volume)
Japan (Alcohol beverages: Revenue/Sales Volume) (JPY Billion) 2024 2025 *Before rebate deduction Change YoY vs Forecasts Change YoY Results Forecasts Beer and beer-like beverages 592.8 - 18.3 - 3.0% - 1.7 599.5 6.7 1.1% Whiskey and spirits 72.7 6.4 9.7% 3.0 72.9 0.2 0.2% RTD 46.9 10.1 27.6% 2.8 48.2
Slide 36: Japan (Non-Alcohol beverages: Sales Volume)
Japan (Non-Alcohol beverages: Sales Volume) 2024 2025 (Millions of cases) Change YoY vs Forecasts (Millions of cases) Change YoY Results Forecasts Sales Volume 257.54 - 6.13 - 2.3% - 1.66 Sales Volume 260.60 3.06 1.2% Carbonated drinks 87.70 1.12 1.3% - 0.30 MITSUYA CIDER 41.30 0.08 0.2% Lactic acid
Slide 37: Quarterly Results
Quarterly Results (Constant Currency Basis) (Constant Currency Basis) Q3 2024 (JPY Billion) Change YoY Q4 Change YoY Change YoY (9 months) Results Japan 1,002.5 - 3.7 - 0.4% 360.4 3.8 1.1% 1,362.9 0.0 0.0% Europe 609.9 27.8 5.3% 171.1 4.0 2.5% 781.0 31.8 4.6% Oceania 494.9 12.0 2.7% 220.5 3.8 1.8% 7
Slide 38: 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