Summary of Consolidated Financial Results for Q3 2021

English Translation

November 11, 2021

Summary of Consolidated Financial Results

for the First Nine Months of the Year Ending December 31, 2021

(UNAUDITED)

Company name:	Suntory Beverage & Food Limited
Shares listed:	First Section, Tokyo Stock Exchange
Securities code:	2587
URL:	https://www.suntory.com/sbf/
Representative:	Kazuhiro Saito, Chief Executive Officer
Inquiries:	Takayuki Sanno, Chief Financial Officer, Corporate Strategy Division
	TEL: [phone] (from overseas)

Scheduled date to file quarterly securities report:	November 12, 2021
Scheduled date to commence dividend payments:	-
Attachment of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results briefing meeting (for institutional investors and analysts):	Yes

(Millions of yen with fractional amounts discarded, unless otherwise noted)

1. Consolidated financial results for the first nine months of the year ending December 31, 2021 (from January 1, 2021 to September 30, 2021)

(1)	Consolidated operating results
							(Percentages indicate year-on-year changes)
			Revenue		Operating income	Profit before tax for the	Profit for the period
				period
	Nine months ended	(Millions of yen)	(%)	(Millions of yen)	(%)	(Millions of yen)	(%)	(Millions of yen)	(%)
	September 30, 2021	941,821	6.3	100,329	29.8	99,446	31.0	70,253	24.7
	September 30, 2020	886,199	(9.6)	77,301	(14.7)	75,939	(15.0)	56,345	(14.8)
			Profit for the period	Comprehensive income	Basic earnings	Diluted earnings
			attributable to owners of
			for the period	per share		per share
			the Company
	Nine months ended	(Millions of yen)	(%)	(Millions of yen)	(%)		(Yen)		(Yen)
	September 30, 2021	59,408	25.7	95,233	145.7		192.26		-
	September 30, 2020	47,267	(18.2)	38,757	(0.5)		152.97		-
(2)	Consolidated financial position
									Ratio of equity attributable
			Total assets		Total equity	Equity attributable to	to owners of
				owners of the Company	the Company
									to total assets
	As at	(Millions of yen)	(Millions of yen)	(Millions of yen)		(%)
	September 30, 2021	1,641,989		919,801		839,178		51.1
	December 31, 2020	1,574,251		859,556		781,755		49.7

(3) Consolidated cash flows

	Net cash inflow (outflow)	Net cash inflow (outflow)	Net cash inflow (outflow)	Cash and cash equivalents
	from operating activities	from investing activities	from financing activities	at the end of the period
Nine months ended	(Millions of yen)	(Millions of yen)	(Millions of yen)	(Millions of yen)
September 30, 2021	136,633	(38,453)	(100,910)	166,433
September 30, 2020	99,791	(44,167)	6,082	201,942

2. Dividends

				Annual cash dividends
		First quarter-end	Second quarter-end	Third quarter-end	Year-end	Total
		(Yen)	(Yen)	(Yen)	(Yen)	(Yen)
Year ended	-	39.00	-	39.00	78.00
December 31, 2020
Year ending	-	39.00	-
December 31, 2021
Year ending
December 31, 2021				39.00	78.00
(Forecast)
Note:	Revisions to the forecast of dividends most recently announced: None

3. Consolidated earnings forecast for the year ending December 31, 2021 (from January 1, 2021 to December 31, 2021)

(Percentages indicate year-on-year changes)

Profit for the year

Revenue

Operating income

Profit before tax

Profit for the year

attributable to

Basic earnings

owners of

per share

the Company

(Millions of

(%)

(Millions of

(%)

(Millions of

(%)

(Millions of

(%)

(Millions of

(%)

(Yen)

yen)

yen)

yen)

yen)

yen)

Year ending

1,266,000

7.5

117,000

21.7

115,500

22.7

79,000

22.9

65,000

24.5

210.36

December 31, 2021

Note:

Revisions to the earnings forecast most recently announced: Yes

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
2. Changes in accounting policies and changes in accounting estimates

a.	Changes in accounting policies required by IFRS:	None
b.	Changes in accounting policies due to other reasons:	None
c.	Changes in accounting estimates:	None

1. Number of issued shares (ordinary shares)
   a. Total number of issued shares at the end of the period (including treasury shares)

As at September 30, 2021	309,000,000 shares
As at December 31, 2020	309,000,000 shares

1. Number of treasury shares at the end of the period

As at September 30, 2021	3 shares
As at December 31, 2020	3 shares

1. Average number of outstanding shares during the period (cumulative from the beginning of the year)

Nine months ended September 30, 2021	308,999,997 shares
Nine months ended September 30, 2020	308,999,997 shares

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecast, and other special matters

The earnings forecast contained in these materials are based on our judgment attributable to information available to the Company and the Group as of the date of announcement of these materials, and include certain risks and uncertainties. These statements are not intended as a promise by the Company to achieve such results. Actual business results may differ substantially due to various factors such as economic situation surrounding the Company and the Group, market trend, exchange rates and other factors.

Attached Materials

Index

1.	Qualitative Information Regarding Settlement of Accounts for the First Nine Months ..................	2
(1)	Operating results ..............................................................................................................................	2
(2)	Financial position.............................................................................................................................	4
(3)	Analysis of cash flows .....................................................................................................................	4
(4)	Consolidated earnings forecast and other forward-looking statements ...........................................	4

2. Condensed Quarterly Consolidated Financial Statements and Significant Notes Thereto

(Unaudited)..................................................................................................................................................	5
(1)	Condensed quarterly consolidated statement of financial position..................................................	5
(2)	Condensed quarterly consolidated statement of profit or loss .........................................................	7
(3)	Condensed quarterly consolidated statement of comprehensive income.........................................	8
(4)	Condensed quarterly consolidated statement of changes in equity..................................................	9
(5)	Condensed quarterly consolidated statement of cash flows...........................................................	10
(6)	Notes to condensed quarterly consolidated financial statements ...................................................	11
	(Going concern) .............................................................................................................................	11

- 1 -

1. Qualitative Information Regarding Settlement of Accounts for the First Nine Months

1. Operating results
   Suntory Beverage & Food Limited Group (the Group), based on the philosophy of enriching consumers' lives by proposing premium and unique products that match the tastes and needs of consumers, put effort into brand reinforcement and new demand creation, and worked to improve the quality of products. In addition, the Group worked to strengthen profitability in each area.
   During the third quarter of the year ending December 31, 2021, we incurred adverse effects both from persistent tightening of restrictions associated with an increasing number of people infected with the novel coronavirus disease (COVID-19) in Japan and other Asia Pacific nations, and also from a deteriorating external environment in part due to unfavorable weather in Japan and northern Europe. However, we continued to promote our growth strategy amid continuing efforts in all segments that involved concentrating on core brands, carrying out cost reduction activities and improving efficiency in the use of sales promotion and advertising costs. As a result of the above, we continued to achieve growth with respect to both revenue and operating income exceeding that of the previous year in the first nine months of the year ending December 31, 2021, and we also increased our market share in our key markets.
   For the operating results of the first nine months of the year ending December 31, 2021, the Group reported consolidated revenue of ¥941.8 billion, up 6.3% year on year. Consolidated operating income was ¥100.3 billion, up 29.8% year on year. Furthermore, profit for the period attributable to owners of the Company was ¥59.4 billion, up 25.7% year on year.
   Results by segment are described below.

< Japan business >

Performance of the overall beverage market was below that of the previous year (presumably by the Company) due to restrictions imposed on human activity as a result of the government's intermittent announcements and extensions of state of emergency declarations and also due to effects of unfavorable weather prevailing since mid-August. Nevertheless, the Company increased its sales volume year on year as a result of the contribution of initiatives to strengthen its core brands with a focus on the water, coffee, and sugar-free tea categories, sales of new products and marketing activities, leading the Company to increase market share.

The sales volume for the Suntory Tennensui brand as a whole rose year on year, exceeding the previous corresponding period, which had grown substantially due to an increase in demand for large formats. Sales of the Suntory Tennensui Sparkling series increased substantially as sales of THE STRONG, which was newly released in June, remained solid. For the BOSS brand, the overall sales volume of the brand increased year on year. In addition to growth in the Craft BOSS series, which was renewed in March, Matcha Latte, which was newly released in August, also contributed to the increase in the brand's sales volume. In the sugar-free tea category, the Iyemon brand's overall sales volume greatly exceeded that of the same period of the previous year. The increase in the brand's sales volume is attributable to strong performance of Iyemon Koi Aji, which was newly released in February, and Iyemon Kyoto Blend, which was newly released in April.

In terms of profit, despite continuing to experience a negative impact from changes in the channel mix, improvements in the product mix were realized through growth of small-size (500 ml PET) products. In addition, cost reduction activities and ongoing initiatives to improve efficiency in the use of promotion and advertising costs provided significant impacts.

As a result, the Japan business reported revenue of ¥474.6 billion, down 1.5% year on year, and segment profit of ¥36.1 billion, up 21.9% year on year.

- 2 -