Asahi Group Holdings Ltd · TSE:2502
Asahi — FY2013 Earnings Presentation
28 slides from Asahi's earnings presentation, February 2014
Slide 1: 2013 Financial Results Briefing
February 2014 2013 Financial Results Briefing 4 As M | I Overview of 2013 Financial Results 2014 Business Strategy ASAHI GROUP HOLDINGS, LTD. Copyright © ASAHI GROUP HOLDINGS. All rights reserved.
Slide 2: Executive Summary
Executive Summary 2071 3)@very) @ Sales and profit increases in line with targets were achieved in all businesses in the first year of Medium-Term Management Plan 2015 +Sales increase of 8.6% due to factors including the consolidation of Calpis, the impact of yen depreciation, and maintenance of sal
Slide 3: FY2013 Financial Results
FY2013 Financial Results | Asahi chieved sales and profit increases in all businesses, notably in the Soft Drinks Business due to the im of a sales increase synergy creation Operating income MINE Net income —&—Net sales mien 2013 | 2012 | in YoY Result Result 1,714.2 Ec. Alcoholic Beverages 948.6 94
Slide 4: 2014 Full-year Forecast
2014 Full-year Forecast 2014 2013 Operating income MIN Net income —a—Net sales Billion yen Target | Resut |" YoY 1,714.2 1,750.0 Alcoholic Beverages 9529 9486 43 05% 1,579.1 Soft drinks 4806 4662 144 3.1% 1,472.5 1,489.5 Food 111.2 108.2 3.0 28% Overseas 2100 1929 171 88% Other & Adjustment 46 -1.6
Slide 5: Progress of Medium-Term Management Plan's KPIs
Progress of Medium-Term Management Plan’s Q On pace to achieve the targets in the medium-term management plan for KP s (growth rate of @ Key Performance Indicators (KPIs) 2014 Medium-Term a ~~ _ Lerenaitenib lata Oe 8.4% 8.0% 8.0% Approx. 10% Adjusted ROE* 8.6% 8.7% A 9.0% A Adjusted ROE (Before cot
Slide 6: Progress of Operating Margin Guideline by Business
Progress of Operating Margin Guideline by Business sah A businesses except tr e Overseas Business are on pace to acnieve tr le (%) ' Medium-Term Management Plan 2015 FY2015 mn ' Guideline aw 12.0 tel @ Alcohal 12.5% ny H Beverages | or higher a 9.0% : ° Overseas or higher 8.0 + i 5.5% $07 Soft atink
Slide 7: Alcohol Business Overview and Strategy
Alcohol Business Overview and Strategy Asahi 2013 Result 2014 Target (billion yen) YoY Change (Amount/%) Against Plan YoY Change (Amount/%), Net Sales 948.6 4.5 0. 5% 98. 9% 952.9 4.3 0. 5% Operating Income 113.7 0.4 0. 4% 100. 4% 115.1 1.3 1.2% 201B5OVEWIEW @ Sales and profit increases in line with
Slide 8: Beer-type Sales Results and Full Year Target
Beer-type Sales Results and Full Year Target @ Sales Results and Target by Brands 2013Result 2014 Target Million cases YoY Change (Amount/%) | Against Plan Super Dry Total 106.27 -2.53 -2.3% - 106.30 0.03 0.0% Beer Total 108.88 -2.08 -1.9%| 99.4% 108.50 -0.38 -0.3% Style Free 12.39 0.49 4.1% - 12.40
Slide 9: Beer Initiatives
Beer Initiatives . Asahi @Brand Reinforcement by Evolution of “Super Dry” <Expansion of Extra Cold (Number of Restaurants)> (Restaurants) |. A : c ‘ 10,000 | = ' 8,000 | “a -: ea 6,000 - Crisp, clear taste, sharp 4,000 finish, and a head formed of small, fine bubbles 2,000 | alll || || - o £1 Increa
Slide 10: Happoshu and New Genre Initiatives
Happoshu and New Genre Initiatives @ Expansion of Clear Asahi Brand Appeal 2-5" Boa Ze cay. eay, <Number of Cases Sold (Cumulative)> 3000 10,000 cases cet: 2012 E Wl Clear Asahi Prime Rich 2500 | Right: 2013 | | Clear Asahi 2000 - | 1500 | Quality enhancement involving a 20% increase in barley (Star
Slide 11: Other Alcohol and Dry Zero Overview
Other Alcohol and “Dry Zero” Overview Sales and Operating Margin Performance by Category (billion yen) 200 10% 10% 10% TM 6% 150 » maim ETS 22 Pd Others woe fa “| 100-50 Shochu t 72 RTD 50 - 12 " Wine Whiskey 0 zane gore a 12 2s 2014) Anniversary of the birth of Masataka Taketsuru Strengthening of A
Slide 12: Soft Drink Business Overview and Strategy
Soft Drink Business Overview and Strategy sah 2014 Target hange (Amount/%) YoY Change (Amount/%) Asahi Soft Drinks 365.7 32.1 9. 6% 98. 8h .0 70.3 19. 2% Calpis 90.0 63.5 239. 5% 99. 9% 26.3 -63. 6 -70. 7% LB 22.3 1.9 9.1% 96. 9% 23.5 1.2 5. 3% Net Sales 466.2 90.8 24. 2h 99. 0% 480.5 14.4 3.1% Asah
Slide 13: Asahi Soft Drinks: Sales Results and Target
Asahi Soft Drinks: Sales Results and Target sah @ Sales Results and Target by Brands and Category million cases 2013 Result 2014 Target YoY Change (Amount%) | Against Plan YoY Change (Amount/%) Carbonated Drinks Total 54.24 5. 54 11.4% 99. 9% 56. 60 2.36 4.4% Fruit\Juice Total 16.17 0 0. 0% 103. 6%
Slide 14: Creation of Synergies with Calpis
Creation of Synergies with Calpis @Calpis Performance @— Net sales © 9 Operating income A 7 a Ie Ec —A4 (billion yen) (left axis) (right axis) @ ALPI S &- 1241 woo 89 BP 1824137 1188 a0 00.0 \ 1 60 \ 800 . - Hf (ALPS s00 40 nacx y 400 ; 20 200 es 00 00 2008 2009 2010 2011 2012 *Figures for 2013 are
Slide 15: Food Business Overview and Strategy
Food Business Overview and Strategy sah billion yen 2013 Result Yo¥ Change (oun) 2014 Target YoY Change (Amount/%) Asahi Food and Healthcare 55.0 3.8 7.3% 101.7% .0 1.0 1.8% Wakodo 36.8 0.4 1.1% 100. 2% 38.5 1.7 4.7% Amano Food 20.3 0.5 2. 6% 101. 5% 20.8 0.6 2. 8% Net Sales 108.2 47 4. 5% 101. 0% 1
Slide 16: Overseas Business Overview and Strategy
Overseas Business Overview and Strategy billion yen 2013 Result YoY Change (Amount/%) | Against Plan Oceania Business 7 17.7% 99. 9% 5 b . China Business 14.8 3.7 33. 1% 114. 7% 15.8 1.1 7. 3% Permanis 22.1 6.6 42. 5% 104. 1% 22.5 0.4 1.7% Net Sales 192.9 34.9 22. 1% 102. 2% 210.0 7.1 8. 8h Oceania
Slide 17: Oceania Business Overview and Strategy (1)
Oceania Business Overview and Strategy (1) sah Results and Plans for the Oceania Business (based on local currencies) FY 2013 (millon AUD) YoY Change (amount/%) Against Target YoY Change (amount/%) Net sales 1,618 49 3.1% 99.6% 1,701 84 5.2% Operaing income 75 -8 -9.5% 85.4% 98 22 29.7% @ Overview o
Slide 18: 2014 Strategy (Overall Business)
@ 2014 Strategy (Overall Business) Drive business structure reforms to better respond to changing business environment, based on growth strategy that focuses on strengthening the growing category -Create synergies primarily through supply chain optimization, such as integration of production and dis
Slide 19: Oceania Business Overview and Strategy (3)
Oceania Business Overview and Strategy (3) @Strategy for Growing Category (Alcohol Beverages Business) <Australia> «Drive cider growth through participation in the premium range as well as increasing product availability and strengthening of keg sales «Increase our presence in the imported premium b
Slide 20: Chinese Beer Business and Permanis Overview and Strategy
Chinese Beer Business and Permanis Overview and Stra @Chinese Beer Business (Local Currency Basis) 2013 Result 2014 Target Million yuan YoY Change (Amount/%) Net sales 92.7 6. 0% 113. 1% 99.0 6. 8% Operating income 4.0 4.6 — 1,183. 4% 4.3 0.3 7.0% <2013 Overview and 2014 Strategy> -Over-performance
Slide 21: Indonesian Soft Drinks Business
Indonesian Soft Drinks Business <Overview of 2013 and Strategy for 2014> Expanded the operating base through acquisition of a Pepsi bottler and a mineral water business, which is No. 2 in Indonesia -Made full-fledged entry into the soft drinks market with the launch of our own green tea brand ICHI O
Slide 22: Equity Method Affiliates
Equity Method Affiliates Asahi @ Tsingtao Brewery <Jan. to Sep. Overview and Future Strategy> ASea *11% sales increase due to aggressive investment in sales promotion centered on the Tsingtao brand *18% profit increase from raw material cost reduction, integration into the Tsingtao brand, and a high
Slide 23: Reference
Reference Information
Slide 24: Performance Overview of Equity Method Affiliates in China
<Reference> Performance Overview of Equity Method Affiliates in China Asahi aoe @Tsingtao Brewery Performance Overview 2011 40 2012 10 2012 2a 2012 3 fetching term Million yuan Result YoY 2,578 13.5%) Operating income 215 -3.3%| Net income . . 176 3.9%) fetching term Million yuan ae ctchingitern a R
Slide 25: Foreign Exchange Impact
<Reference> Foreign Exchange Impact @Key Currencies and the Company’s Average 120 100 80 60 0 Exchange Rates (Yen) ; —*—RMB - ¥79. ¥100.0 Jan. 2011 Jan. 2012 Asahi Jan, 2013 Jan. 2013 Asahi impact of Exchange Rates on P&L (Result and Target) 2013 014 se a | Oceania business Chinese business Permanis
Slide 26: Profit Structure Reforms and Alcohol Beverage Business Advertising Expenses
<Reference> Profit Structure Reforms and Alcohol Beverage Business Advertising and Promotional Expenses @Achievement of Profit Structure Reforms biionyen | Medium-term 2014 target plan target | initiatives Asie rrr rr in depreciation through optinization of capital investments 10 or more Beverages G
Slide 27: Capital Investment by Business and Total Depreciation
@ Capital Investment by Business and Total Depreciation (billion yen) 70.0 | @ mAlcoholic Beverages © Soft drinks m a Food B mOverseas —O—Depreciation 50.0 ' <Indonesia> (billion yen) i : 2013: approximately 1.0 40.0 ! ' 2014: approximately 6.0 30.0 : ' <Calpis > : ' 2013: approximately 1.0 20.0 : '
Slide 28: Asahi
Asahi ZORHS. Db), 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