Asahi Group Holdings Ltd · TSE:2502

Asahi — H1 2020 Earnings Presentation

36 slides from Asahi's earnings presentation, August 2020

Slide 2: Executive Summary
Executive Summary 1H Result Overview ◆ Revenue down 11%, core operating profit down 41% due to the COVID-19 pandemic ・ Alcohol Beverage Business on-premise demand contracted in Japan and overseas, sales for vending machines in Soft Drinks Business and sales of Mintia in Food Business were weak. ⇒ Th
Slide 3: COVID-19 Impacts (by Region)
COVID-19 Impacts (by Region) ◆Monthly Beer Sales in the Key Businesses 【Domestic Alcohol Business】【European Business】【Australian Existing Business 30% *Beer-type beverages value basis *Volume basis and CUB】 *Volume basis 20% 10% 0% Jan. Feb. Mar. Apr. May June July Jan. Feb. Mar. Apr. May June Jul
Slide 4: COVID-19 Impacts (Soft Drinks and Food)
COVID-19 Impacts (Soft Drinks and Food) 30% 【Soft Drinks Business】 *Volume basis 【Food Business】 *Value basis 20% 30% 20% 10% 10% 0% 0% Jan. Feb. Mar. Apr. May June July Jan. Feb. Mar. Apr. May June July -10% est. est. -10% -20% -20% -30% ・ Overall sales volume has been on a recovery path, mainly in
Slide 5: Response Policy for COVID-19
Response Policy for COVID-19 ◆ Building value together with all of our stakeholders, based on AGP (announced in April) Employees: Prioritize protecting health and safety of employees and their families; take measures to preserve employment as far as possible and provide appropriate support. Consumer
Slide 6: Direction of Reforms to Adapt to the "New Normal"
Direction of Reforms to Adapt to the “New Normal” Implement management reforms emphasizing resilience, flexibility, robustness, and sustainability to prepare for change Changes and predictions toward the “new normal” Direction of reforms (short- and medium-term) ・ Some continue to refrain from outin
Slide 7: Purpose and Outline of Acquisition of CUB Business
Purpose and Outline of Acquisition of CUB Business ◆ Purpose and meaning of acquisition ・ Expansion of global overseas growth bases by AGP and Medium-term Management Policy ・ Building a global platform centered on Japan, Europe and Australia ・ Create synergies with existing businesses in Australia a
Slide 8: Australian Market and Major Brands
Australian Market and Major Brands ◆ Australian beer market ＜Imported premium beer market <Overview by price range: 2019> ＣＡＧＲ composition（2019）＞（2014-19） Composition Market total 19.0mhl ＋2％ Others Premium 3% 36% 16% 6% 33% +3％ Budweiser 2% 17% 37％ Carlsberg 3% Corona 36% Stella Artois 3% Mainstre
Slide 9: Medium-term Strategy and Overview of Oceania Business
Medium-term Strategy and Overview of Oceania Business ◆ Mid-term strategy of Oceania business Practice of "Value Creation Management" as a comprehensive alcohol and soft drink beverage company ・ Topline and cost synergy creation based on the “ALLIANCE FOR GROWTH” project ・ Enhance growth resources s
Slide 10: Creating Synergies in Oceania Business
Creating Synergies in Oceania Business ◆ Efforts for Synergy Creation <Top-line synergies> <Cost Synergies> ・ SCM: Establishing an optimal production and ・ Expanding our presence, especially in the super- distribution system by integrating and mutually premium market through accelerating the growth
Slide 11: Overview of Financial Results for H1 2020 & Full Year Forecasts
Overview of Financial Results for H1 2020 ＆ Full Year Forecasts
Slide 12: Financial Results Highlights (constant currency basis)
Financial Results Highlights (constant currency basis) ◆ H1 Core OP YoY decline by 40.4% due to the spread of COVID-19 since March（constant currency basis) • Alcohol ：YoY decline in revenue and profits due to the decrease of the beer sales mainly in on-premise market, despite improving efficiency in
Slide 13: Financial Results Highlights (actual currency basis)
Financial Results Highlights (actual currency basis) ＜Revenue and Core operating profit （actual currency basis）＞ (JPY billion) 2020 H1 (6 months ended June 30) 2020 forecast (announced on August 5) YoY (Amount / %) YoY (Amount / %) Alcohol Beverages Business 345.1 - 65.9 - 16.0% 765.6 - 121.2 - 13.7
Slide 14: Operating Profit/Profit attributable to owners of parent
Operating Profit/Profit attributable to owners of parent (JPY billion) 2020 H1 (6 months ended June 30) 2020 forecast (announced on August 5) YoY (Amount / %) YoY (Amount / %) Revenue 874.3 - 109.5 - 11.1% 2,007.0 - 82.0 - 3.9% Core operating profit 52.6 - 37.0 - 41.3% 147.0 - 66.0 - 31.0% Adjustmen
Slide 15: Alcohol Beverages Business (Revenue of Beer-type/Sales Volume by Brands)
Alcohol Beverages Business (Revenue of Beer-typed/Sales Volume by Brands) <Sales Volume by Brands> (Millions of cases) <Market Trend> (Volume basis) 2020 H1 (6 months ended June 30) 2020 forecast (announced on August 5) Full-year H1 YoY YoY (Amount / %) YoY (Amount / %) Est. YoY Super Dry 27.87 - 9.
Slide 16: Alcohol Beverages Business (Revenue)
Alcohol Beverages Business (Revenue) <Revenue> (JPY billion) 2020 H1 (6 months ended June 30) 2020 forecast (announced on August 5) YoY (Amount / %) YoY (Amount / %) Asahi Breweries Revenue 339.8 - 60.3 - 15.1% 754.3 - 109.1 - 12.6% Other/elimination in segment 5.3 - 5.5 - 50.9% 11.3 - 12.2 - 51.9%
Slide 17: Alcohol Beverages Business (Core OP)
Alcohol Beverages Business (Core OP) <Core Operating Profit> (JPY billion) 2020 H1 (6 months ended June 30) 2020 forecast (announced on August 5) YoY (Amount / %) YoY (Amount / %) Change in sales, category and container mix - - 20.0 - - 34.5 Cost reduction in manufacturing - 1.2 - 2.2 Cost increase
Slide 18: Basic policy for Alcohol Beverages Business
Basic policy for Alcohol Beverages Business ◆ Basic policy for Alcohol Beverages Business Agile responsiveness to changes in the market environment and consumer sentiments; restore robustness through accelerating value-focused management ・ In on-premise market, continue to support business continuit
Slide 19: Initiatives for Asahi Super Dry
Initiatives for Asahi Super Dry ◆ Initiatives for Asahi Super Dry Enhance medium- to long-term brand value through initiatives that respond to “new normal” values and consumption styles ・ On-premise: Support for improving draft beer quality, strengthen brand appeal by providing optimal drinking expe
Slide 20: Initiatives for Happoshu, New Genre and Other Products than Beer-type
Initiatives for Happoshu, New Genre and Other Products than Beer-type ◆ New genre standard brands Sales up sharply YoY after launch of Asahi THE RICH in March <Total of the four new genre standard brands *1> 9% ＋2％ Jan.-June JAN.-MAR. APR.-JUNE cumulative volume YoY ◆ RTD ＜RTD can＞ -6% *1 New genre
Slide 21: Soft Drinks Business (Sales Volume)
Soft Drinks Business (Sales Volume) <Sales Volume> (Millions of cases) <Market Trend> 2020 H1 (6 months ended June 30) 2020 forecast (announced on August 5) Jan. - Jun. YoY (Amount / %) YoY (Amount / %) YoY Carbonated drinks 37.57 2.30 6.5% 78.71 5.73 7.9% -3～4％ Lactic acid drinks 21.21 - 2.86 - 11.
Slide 22: Soft Drinks Business (Core OP)
Soft Drinks Business (Core OP) <Core Operating Profit> (Millions of cases / JPY billion) 2020 H1 (6 months ended June 30) 2020 forecast (announced on August 5) YoY (Amount / %) YoY (Amount / %) Sales Volume Total 118.75 - 9.10 - 7.1% 255.80 △ 9.34 - 3.5% Revenue Total 166.6 - 15.2 - 8.4% 356.0 - 20.
Slide 23: Soft Drinks Business
Soft Drinks Business ◆ Growth of carbonated drinks (YoY) ◆ Sales Volume trends of WILKINSON and MITSUYA * Realized reliable growth compared to competitors * Expected to set a new record high of annual sales volume (sales volume in the first half reached a record high) (million boxes) (CAGR) ＋1.2％＋1
Slide 24: Food Business (Revenue/Core OP)
Food Business (Revenue/Core OP) <Revenue> (JPY billion) 2020 H1 (6 months ended June 30) 2020 forecast (announced on August 5) YoY (Amount / %) YoY (Amount / %) Asahi Group Foods 54.5 - 1.8 - 3.2% 113.3 - 4.4 - 3.7% Other / elimination 5.4 - 0.7 - 12.0% 11.3 0.0 0.0% Revenue 59.9 - 2.5 - 4.1% 124.6
Slide 25: Food Business
Food Business ◆ Future Initiatives for New Normal ＜Stimulating new demand for Mintia＞ Traditional eating scenes New eating scenes Refresh while teleworking or Refresh at office and while working from home commuting, etc. Refresh with wearing a mask Changing consumer needs Changes in lifestyle ・ Enri
Slide 26: Overseas Business (Revenue, constant currency basis)
Overseas Business (Revenue *constant currency basis) <Revenue *constant currency basis (based on previous year's FX rates)> (JPY billion) 2020 H1 (6 months ended June 30) 2020 forecast (announced on August 5) YoY (Amount / %) YoY (Amount / %) Europe business 168.8 - 23.0 - 12.0% 348.5 - 39.8 - 10.2%
Slide 27: Overseas Business (Core OP, constant currency basis)
Overseas Business (Core OP *constant currency basis) <Core OP *constant currency basis (based on previous year's FX rates)> (JPY billion) 2020 H1 (6 months ended June 30) 2020 forecast (announced on August 5) YoY (Amount / %) YoY (Amount / %) Europe business 24.8 - 10.2 - 29.2% 56.7 - 21.1 - 27.1% O
Slide 28: Reference: Oceanian Business (Revenue and Core OP)
Reference: Oceanian Business (Revenue and Core OP *constant currency basis) ◆ Breakdown <Revenue and Core Operating Profit> *constant currency basis (based on previous year's FX rates) (JPY billion) 2020 H1 (6 months ended June 30) 2020 forecast (announced on August 5) YoY (Amount / %) YoY (Amount /
Slide 29: Europe Business & AIL Business
Europe Business & AIL Business ◆ Europe Business NAB (Non-Alcohol Beer) Sales Volume Growth Ratio ＜2020 Forecast (constant currency basis)＞＋9％ khl、million Euro 2020 2020 H1 YoY*2 Revised YoY*3 Results Target Sales Volume 18,952 -9% 39,831 -6% Net Sales (exc liquor tax) 1,112 -11% 2,382 -8% Core OP*
Slide 30: COVID-19 Impacts (Europe)
COVID-19 Impacts (Europe) 【Czech】 *Volume basis On-premise ratio: approx. 40％【Poland】 *Volume basis On-premise ratio: mid single digit 0% 0% Mar. Apr. May June July Mar. Apr. May June July est. est. -10% -10% ・ Total Business: Significantly impacted by on-trade closure, off-trade not ・ Total Busine
Slide 31: Reorganization of Europe Business
Reorganization of Europe Business ◆ Significance of the reorganization Business integration of the Europe Business and AIL（from Nov. 2020）・ Establishing a faster decision-making process and building a one-stop operation structure ・ Creating further cost synergies by the consolidation of duplicating
Slide 32: Financing Plan
Financing Plan ◆ Rationale and Overview of Financing Plan ・ Considering to raise JPY300.0 billion of equity credit attributes in order to secure financial soundness and maintain current credit rating ・ Minimizing dilution for existing shareholders with combining issuance of common stock including us
Slide 33: Strengthening our sustainability promotion system
Strengthening our sustainability promotion system ◆ Formulation of Our Basic Policy and Vision on Sustainability Asahi Group’s Sustainability Principles 1. The Asahi Group is striving to realize the tastiness of products and services that exceed consumer expectations, using the blessings of nature.
Slide 34: Environment: Efforts to Respond to Climate Change (TCFD)
Environment: Efforts to Respond to Climate Change (Endorsing the Recommendations of the TCFD) ◆ About endorsing the recommendations of the TCFD ◆ Disclosure items based on the TCFD The Asahi Group understands that evaluating the impact of climate Governance Strategies change-related risks and opport
Slide 35: Global Social Support Activities
Global Social Support Activities Donation Supporting stakeholders 【Japan】・Donations of the Group's products such as 【Czech】 "Calpis Water" to approx. 118,000 medical ・Operates and plans an online platform that connects workers nationwide restaurants and consumers, and sells vouchers in advance. ・Do
Slide 36: 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

Asahi Group Holdings — H1 2020 Earnings Presentation on 6ix

Asahi — H1 2020 Earnings Presentation

Slide 1: Financial Results Presentation for H1 2020

Slide 2: Executive Summary

Slide 3: COVID-19 Impacts (by Region)

Slide 4: COVID-19 Impacts (Soft Drinks and Food)

Slide 5: Response Policy for COVID-19

Slide 6: Direction of Reforms to Adapt to the "New Normal"

Slide 7: Purpose and Outline of Acquisition of CUB Business

Slide 8: Australian Market and Major Brands

Slide 9: Medium-term Strategy and Overview of Oceania Business

Slide 10: Creating Synergies in Oceania Business

Slide 11: Overview of Financial Results for H1 2020 & Full Year Forecasts

Slide 12: Financial Results Highlights (constant currency basis)

Slide 13: Financial Results Highlights (actual currency basis)

Slide 14: Operating Profit/Profit attributable to owners of parent

Slide 15: Alcohol Beverages Business (Revenue of Beer-type/Sales Volume by Brands)

Slide 16: Alcohol Beverages Business (Revenue)

Slide 17: Alcohol Beverages Business (Core OP)

Slide 18: Basic policy for Alcohol Beverages Business

Slide 19: Initiatives for Asahi Super Dry

Slide 20: Initiatives for Happoshu, New Genre and Other Products than Beer-type

Slide 21: Soft Drinks Business (Sales Volume)

Slide 22: Soft Drinks Business (Core OP)

Slide 23: Soft Drinks Business

Slide 24: Food Business (Revenue/Core OP)

Slide 25: Food Business

Slide 26: Overseas Business (Revenue, constant currency basis)

Slide 27: Overseas Business (Core OP, constant currency basis)

Slide 28: Reference: Oceanian Business (Revenue and Core OP)

Slide 29: Europe Business & AIL Business

Slide 30: COVID-19 Impacts (Europe)

Slide 31: Reorganization of Europe Business

Slide 32: Financing Plan

Slide 33: Strengthening our sustainability promotion system

Slide 34: Environment: Efforts to Respond to Climate Change (TCFD)

Slide 35: Global Social Support Activities

Slide 36: Information in this material is not intended to solicit sale or purchase of shares