Asahi : FY2023 Q2 Financial Results Presentation

Summary of Q2 2023 Financial Results and Full-Year Forecast

August 9, 2023

Revenue / Core Operating Profit

		(Constant Currency Basis)		(Constant Currency Basis)
				2023			Vs Initial
(JPY billion)	H1	Change	YoY	Revised	Change	YoY
Forecast
				Forecast
Japan	622.0	22.1	3.7%	1,338.0	36.3	2.8%	- 13.0
Europe	315.3	25.2	9.5%	666.2	63.9	11.1%	- 27.7
Oceania	286.5	16.8	6.5%	630.4	48.1	8.2%	2.0
Southeast Asia	27.9	1.4	5.4%	54.3	2.4	4.6%	- 0.4
Other	6.3	2.4	63.3%	16.5	7.7	87.6%	6.3
Adjustment	- 5.1	- 1.1	-	- 15.4	- 7.3	-	- 4.3
(corporate and elimination)
Revenue	1,253.0	66.8	5.8%	2,690.0	151.0	6.0%	- 37.2
Japan	52.9	10.1	23.7%	119.0	10.1	9.3%	7.0
Europe	34.5	2.0	7.0%	80.1	0.6	0.8%	-
Oceania	42.2	- 0.8	- 1.9%	108.8	1.9	1.7%	-
Southeast Asia	0.5	0.7	-	1.2	0.6	103.4%	-
Other	0.8	0.1	7.8%	2.4	0.9	65.9%	1.2
Adjustment	- 10.1	- 3.6	-	- 22.2	- 5.6	-	- 2.9
(corporate and elimination)
Amortization of acquisition-	- 17.9	- 0.3	-	- 35.4	- 0.8	-	- 0.8
related intangible assets
Core Operating Profit	102.9	8.2	9.0%	254.0	7.7	3.2%	4.6

• Figures of the YoY change for Constant Currency Basis are calculated by converting foreign currency amounts for the current year to JPY using the exchange rate of the previous year.
• Figures of the vs Initial Forecast for Constant Currency Basis are calculated by converting foreign currency amounts for

the revised forecast to JPY using the exchange rate of the initial forecast.

• Revenue: +5.8% YoY as revenue increased in all business, mainly due to unit price increases resulting from price revisions
• Core Operating Profit: +9.0% YoY mainly due to increased revenue and enhanced cost management, despite impact of cost increases
• Revenue was almost in line with the plan Core operating profit exceeded the plan due to higher unit prices and cost efficiencies

<> Forecast>

• Revenue: Downwardly revised to +6.0% YoY based on the progress in each region in H1
• Core Operating Profit: Upwardly revised to +3.2% YoY in total, mainly due to strong progress in Alcohol Beverages Business in Japan

ⒸASAHI GROUP HOLDINGS. All rights reserved.

1

Operating Profit / Profit Attributable to Owners of Parent

(Actual Currency Basis)

(Actual Currency Basis)

(JPY billion)H1 Change YoY

Revenue	1,253.0	101.7	8.8%
Core Operating Profit	102.9	12.0	13.2%
	Adjustment item	- 6.9	2.7	-
		Gain (loss) on sales and retirement	- 0.4	- 8.5	-
		of non current assets
		Business integration expenses	- 4.3	- 2.0	-
		Impairment loss	- 0.7	12.0	-
		Others	- 1.5	1.1	-
Operating profit	96.1	14.7	18.0%
	Finance income or loss	- 3.9	0.3	-

2023			Vs Initial
Revised	Change	YoY
Forecast
Forecast
2,690.0	178.9	7.1%	-
254.0	10.2	4.2%	9.0
- 19.5	7.3	-	- 1.5
- 1.9	- 11.4	-	1.3
- 4.3	11.2	-	- 4.3
- 0.7	17.8	-	- 0.7
- 12.6	- 10.2	-	2.2
234.5	17.5	8.0%	7.5
- 8.0	1.6	-	- 1.0

• Operating Profit: +18.0% YoY, mainly due to the rebound from the impact of impairment loss due to SCM reorganization in Japan in the previous year
• Profit Attributable to Owners of Parent: +15.4% YoY
• Adjusted Profit Attributable to Owners of Parent excluding the effects such as impairment loss: +0.1% YoY
• Operating Profit and Profit Attributable to Owners of Parent both exceeded the plan

	Share of profit (loss) of investments accounted	0.3	0.0	21.3%
	for using equity method
	Others	0.0	- 1.2	- 97.1%
Profit before tax	92.5	13.8	17.6%
	Income tax expense	- 26.5	- 4.9	-
Profit	66.0	8.9	15.5%
Profit attributable to owners of parent	65.8	8.8	15.4%
Profit attributable to non-controlling interests	0.2	0.1	98.8%
Adjusted profit attributable to	66.4	0.1	0.1%
owners of parent*

0.5	- 0.2	- 28.0%	-
				<> Forecast>
- 1.0	1.1	-	- 0.5
226.0	20.0	9.7%	6.0	➢ Operating profit: Upwardly revised to
- 65.0	- 10.7	-	- 2.5	+8.0% YoY, mainly due to the increase in
Core OP
161.0	9.3	6.1%	3.5
➢ Profit Attributable to Owners of Parent:
161.0	9.4	6.2%	3.5	Upwardly revised to +6.2% YoY, Adjusted
-	- 0.2	-	-	Profit Attributable to Owners of Parent
excluding losses, etc. due to SCM
161.5	- 3.9	- 2.4%	4.0	reorganization was revised upward to -2.4%
YoY

• Calculated from profit attributable to owners of parent excluding one-off special factors including business portfolio restructuring and impairment loss. 2022 forecast is adjusted on after-tax basis for the loss of SCM restructuring in Japan.

ⒸASAHI GROUP HOLDINGS. All rights reserved.

2

Statement of Financial Position / Statement of Cash Flow

(JPY billion)H1 Change YoY

Total assets	5,265.5	435.1	9.0%
Total equity	2,378.8	315.9	15.3%
Interest-bearing debt *1	1,571.1	73.8	4.9%
Net DE ratio *2	-	-	-
Net Debt / EBITDA *2	-	-	-
（Reference） EBITDA	164.4	14.8	9.9%

2023	Change	YoY	Vs Initial
Forecast	Forecast
5,000.0	169.7	3.5%	120.0
2,240.0	177.1	8.6%	80.0
1,467.0	- 30.3	- 2.0%	40.0
0.53	- 0.06	-	- 0.01
3.38	- 0.23	-	-
378.4	16.0	4.4%	12.2

➢ B/S: Total assets increased JPY 435.1 billion

from the end of the previous year due to an

increase in goodwill and intangible assets

due to depreciation of the JPY

➢ B/S: Interest-bearing debt increased JPY

73.8 billion from the end of the previous

year due to the impact of translation of

foreign currency-denominated debt

resulting from JPY depreciation, despite

progress in repayment as planned

➢ C/F and Dividend: Generated FCF of JPY

*1 Breakdown of change from the end of previous year: Repayment of interest-bearing debt +15.4 billion JPY, foreign currency translation of foreign currency-denominatedinterest-bearing debt due to JPY depreciation +58.4 billion JPY

*2 Calculated after deducting 50% of outstanding subordinated debt (JPY 300 billion) from net debt

55.7 billion by profit generation and

increased the interim dividend by JPY 1 per

share

Operating cash flow	94.9	5.5	-
Investing cash flow	- 61.4	- 40.5	-
Financing cash flow	- 26.4	55.3	-
Free cash flow	55.7	- 12.8	-

295.0	29.0	-	-
- 137.0	- 67.8	-	-
- 158.0	61.6	-	-
177.0	- 24.1	-	-

<> Forecast>

➢	B/S: Total assets increased by JPY 120.0
	billion from the initial forecast due to
	depreciation of the JPY
➢	B/S: Interest-bearing debt is expected to
	decrease by JPY 30.3 billion from the end of

Dividend per share (JPY)	5.6	0.1	-	11.5	0.2	-	-
Dividend payout ratio (%)	-	-	-	36.2%	- 1.6%	-	- 0.8%
Adj. Dividend payout ratio (%) *3	-	-	-	36.1%	1.5%	-	- 0.9%

*3 Calculated based on adjusted profit attributable to owners of parent

ⒸASAHI GROUP HOLDINGS. All rights reserved.

the previous year, despite the impact of

foreign exchange rates, and Net

Debt/EBITDA is expected to decrease to

3.38x.

➢ C/F and Dividend: Plan to generate FCF of

JPY 177.0 billion as the initial forecast, and

plan to increase the annual dividend by JPY

2 per share

3

Japan

	(JPY billion)	H1	Change	YoY
	Alcohol Beverages Business	363.3	7.3	2.1%
	Non-Alcohol Beverages Business	177.5	2.9	1.7%
	Food Business	63.3	1.8	3.0%
	Other/elimination in segment	17.9	10.1	129.8%
Revenue	622.0	22.1	3.7%
	Alcohol Beverages Business	40.3	10.4	34.8%
	Non-Alcohol Beverages Business	14.0	0.7	5.1%
	Food Business	5.8	- 0.2	- 2.9%
	Other/elimination in segment	- 7.1	- 0.8	-
Core Operating Profit	52.9	10.1	23.7%

2023			Vs Initial
Revised	Change	YoY
Forecast
Forecast
791.9	5.7	0.7%	2.1
375.5	8.2	2.2%	- 15.1
129.3	1.5	1.2%	-
41.3	20.9	102.7%	0.0
1,338.0	36.3	2.8%	- 13.0
93.0	13.8	17.4%	7.0
28.0	- 2.1	- 7.0%	-
12.3	0.4	3.8%	-
- 14.3	- 2.0	-	0.0
119.0	10.1	9.3%	7.0

• Revenue: +3.7% YoY in total due to increased sales including the effect of price revisions in each business
• Core Operating Profit: +23.7% YoY in total due to higher profit in Alcohol Beverages Business and Non-Alcohol Beverages Business, despite lower profit in Food Business due to higher variable costs
• Revenue was almost in line with the plan, but total business profit exceeded the plan due to higher sales of Alcohol Beverages Business and Non-Alcohol Beverages Business

<> Forecast>

• Revenue: Downwardly revised to +2.8% YoY, mainly because the sales volume of Non-Alcohol Beverages Business was revised
• Core Operating Profit: Upwardly revised to +9.3% YoY due to the price revision in Alcohol Beverages Business and improved efficiency of various costs

ⒸASAHI GROUP HOLDINGS. All rights reserved.

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