Suntory Beverage & Food : Notification Concerning Content of Parent Company Financial as of June 30 2021

Suntory Holdings Limited	August 13, 2021
SUMMARY OF CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX
MONTHS ENDED JUNE 30, 2021 [IFRS] (English Translation, UNAUDITED)
Company Name:	Suntory Holdings Limited
	(URL: https://www.suntory.com/)
Representative:	Takeshi Niinami, President
Contact:	Hiroshi Kato, Head of Public Relations
Public Relations Office:	Tel:[phone]
	Tel:[phone]

(Fractions of millions have been truncated)

1. Consolidated operating results and financial positions for the six months of the current fiscal year (January 1, 2021 - June 30, 2021)

(1) Operating results			(% figures represent change from the same period of the previous fiscal year)
	Revenue (including	Revenue (excluding	Operating	Profit before	Profit		Profit attributable to
		owners of the
	excise taxes)	excise taxes)	income		income taxes	for the period
		Company
Six months ended	¥million	%	¥million	%	¥million	%	¥million	%	¥million	%	¥million	%
June 30, 2021	1,191,958	7.8	1,069,173	8.6	126,117	33.4	124,074	42.6	73,537	28.6	52,747	16.6
June 30, 2020	1,105,324	(10.2)	984,554	(10.7)	94,572	(19.7)	87,024	(19.8)	57,174	(27.1)	45,236	(24.7)

Reference: Adjusted operating income for the fiscal year ending June 30, 2021	127,401¥million	33.3%
Adjusted operating income for the fiscal year ending June 30, 2020	95,563¥million	(20.5)%
Adjusted operating income was calculated as operating income excluding non-recurring items.
	Basic earnings per share	Diluted earnings per share
Six months ended	¥	¥
June 30, 2021	76 .92	－
June 30, 2020	65 .97	－
(2) Financial positions
	Total assets	Total equity	Equity attributable to	Equity attributable to
	owners of the Company
	owners of the Company
			ratio
As of	¥million	¥million		¥million		%
June 30, 2021	4,824,119	2,015,787		1,588,253		32.9
December 31, 2020	4,521,286	1,814,347		1,416,157		31.3

2. Consolidated earnings forecast for the fiscal year ending December 31, 2021 (January 1, 2021 - December 31, 2021)

	Revenue (including	Revenue (excluding	Operating		Profit before		Profit attributable to	Basic earnings per
	excise taxes)		excise taxes)		income		income taxes		owners of the	share
					Company
Fiscal year ended	¥million	%	¥million	%	¥million	%	¥million	%	¥million	%		¥
December 31, 2021	2,538,000	7.2	2,258,000	7.1	221,000	1.8	206,000	2.5	104,000	3.6	151	.66
Reference: Adjusted operating income for the fiscal year ending December 31, 2021 224,000¥million	2.8%

(Note) Change in consolidated earnings forecast during the period: No

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SUMMARY OF NON-CONSOLIDATED FINANCIAL STATEMENTS AS OF

JUNE 30, 2021 (English Translation, UNAUDITED)

(1) Operating results			(% figures represent change from the same period of the previous fiscal year)
	Operating revenue			Operating income			Ordinary income
Six months ended	¥million	%		¥million	%		¥million	%
June 30, 2021	79,057		(24.5)		55,968	(31.5)		62,547	(24.3)
June 30, 2020	104,727		159.3		81,649	347.1		82,633	319.3
	Net income			Basic net earnings per share
Six months ended	¥million	%			¥
June 30, 2021	60,382		(27.8)		88	.5
June 30, 2020	83,635		310.0		121	.96
(2) Financial positions
	Total assets			Net assets	Ratio of equity		Total equity per share
			to total assets
As of	¥million				¥million	%			¥
June 30, 2021	2,381,224			957,208	40.2			1,395.84
December 31, 2020	2,215,751			905,806	40.9			1,320.89

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Operating Results

1. Overview of the Six-Month Period Ended June 30, 2021

The Suntory Group has actively expanded business in each of three segments, "Beverages and Foods," "Alcoholic Beverages," and "Others," both domestically and abroad. In the six-month period ended June 30, 2021, Revenue excluding excise taxes was 1.0692 trillion yen (up 8.6% year on year), Revenue including excise taxes was 1.192 trillion yen (up 7.8% year on year), Operating income was 126.1 billion yen (up 33.4% year on year), and Profit attributable to owners of the Company was 52.7 billion yen (up 16.6% year on year).

Suntory Beverage & Food Limited focused on strengthening brands and creating new demand with the aim of proposing unique, high-quality products that capture the customer's tastes and needs to further enrich customer lifestyles, as well as on improving product quality. The Company also took steps to enhance profitability in each area.

In Japan, the soft drink market (estimated by the Company) remained the same year on year due to the restriction of the movement of people caused by the intermittent state of emergency declarations. Sales volume increased year on year due to the Company engaging in strengthening core brands, mainly in the categories of water, coffee, and sugar-free tea, and market share expanded compared to the same period of the previous year. Sales volume of Suntory Tennensui (Mineral Water) exceeded the level of the previous year, when it grew significantly due to demand for large formats, and sales volume for the brand as a whole increased year on year. The Suntory Tennensui Sparkling series grew significantly due to the contribution made by THE STRONG launched in June. Sales volume of the BOSS brand as a whole exceeded the levels of the previous year. In addition to growth of the Craft BOSS coffee series renewed in March, new products in the black tea series contributed to the increase. In the sugar-free tea category, the effect of the renewal of Iyemon and the contribution made by Iyemon Kyoto Blend launched in April resulted in sales volume for the brand as a whole increasing considerably year on year.

The Asian soft drink business was affected by factors such as self-restraint in going out following the spread of novel coronavirus infectious disease (COVID-19), but concentration of activities on core brands contributed to an expansion of the Group's share in the soft drink markets of Vietnam and Thailand. By brand, while all brands

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grew in Vietnam, Sting energy drink and TEA+ in particular grew significantly, and Pepsi including low-sugar products was strong in Thailand. The health food business also grew significantly. Due to focus on the mainstay BRAND'S Essence of Chicken and the effect of strengthening marketing activities, sales exceeded the previous year's level.

In Oceania, the flagship V brand of energy drink grew significantly as a result of strengthening marketing activities, driving the market in the energy drink category and expanding market share.

In Europe, movement of people returned due to relaxation of restrictions as vaccinations progressed in each country, and the soft drink market has been steadily recovering since March. Sales volumes of core brands Orangina, Oasis and Schweppes significantly exceeded previous-year levels in France. In the United Kingdom, sales volumes of the flagship Lucozade and Ribena brands significantly exceeded previous-year levels. In particular, Lucozade Sport grew substantially due to the resumption of sporting events and outdoor activities. In Spain, sales volume of the flagship Schweppes brand recorded a significant year-on-year increase.

In the Americas, in addition to further strengthening sales of core carbonated beverage brands, the Company also focused on the growing category of non-carbonated drinks, such as water and coffee beverages. The lifting of on-premise restrictions due to progress in vaccinations also contributed to sales significantly exceeding previous-year levels.

As a result of the above, revenue for the Beverages and Foods Segment increased 9.3% year on year to 601.5 billion yen, while operating income rose by 54.7% to 70.3 billion yen.

The revenue figures for the Alcoholic Beverages Segment exclude excise taxes. Comparable revenue for the spirits business, excluding the impact of currency,

increased at a low-double-digit rate compared to the previous year. Sales growth benefited from strong demand in home consumption as well as recovery of the on-premise channel in many markets. Consumers continued to inspire strong sales for premium brands such as Maker's Mark and Basil Hayden bourbon, Courvoisier cognac, Hibiki Japanese whisky, Laphroaig and Bowmore Scotch whisky, Japanese craft gin ROKU, and Hornitos tequila, which all grew case volumes at double-digit rates, while volumes for On the Rocks premium cocktails more than tripled. Half-year sales increased at a double-digit rate in markets including the United States, Canada, EMEA, Oceania, India, China, Emerging

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Asia and Global Travel Retail.In Japan, the spirits business sales were the same level compared to the previous year. In the whiskies category, major brands Maker's Mark, Chita and Ao, along with canned highball products, grew. RTD beverage sales volume grew by 6% year on year, due to favorable performance of -196℃ and Kodawari Sakaba no Lemon Sour. Furthermore, Non-aru-banshakulemon sour non-alcoholic launched in March to create new demand was well received by consumers who enjoy the flavor of an authentic lemon sour without alcohol. The annual sales plan for the Japanese gin SUI, which the Company launched last year, was revised upward, as consumers continued to respond favorably to the new value offered by SUI Gin Soda, which goes well with meals.

Sales volume of the beer business*1 decreased 8% year on year to 27.71 million cases*2 as restraint from going out due to the spread of COVID-19 primarily impacted on-premise consumption. The Company's beer category drinks, excluding non-alcoholic beer, fell 11% year on year to 23.86 million cases.

Active promotion for The Premium Malt's brand was carried out by presenting it as "a little bit of luxury in everyday life." Sales volume of The Premium Malt's Kaoru Ale (cans)*3 increased by 5% year on year due to the fruity taste and refreshing fragrance being well received. Perfect Suntory Beer offering straight-up beer flavor with zero carbohydrate*4 has been well received since its launch in April, and sales volume exceeded 1 million cases in June.

With the Kin-Mugi brand, a promotion of Shiki no Kin-Mugi, which offers different flavors to match the season, was carried out, strengthening proposals to enjoy the beverage with seasonal ingredients and dishes. In particular, sales volume of Kin-Mugi75% Less Carbohydrate*5 grew 4% year on year due to heightened health awareness among consumers.

Sales volume for the All-Free brand rose 13% year on year. KARADA-WO-OMOU All-Free, a product with functional claims for visceral fat, performed well and sales volume increased 40% year on year.

*1. Beer, including alcohol-freebeer-type beverages, on a volume basis

*2. Converted to large bottles (1 case = 633ml × 20 bottles)

*3. Excluding gift products.

*4. Less than 0.5 g per 100 ml is stated as "zero carbohydrate" pursuant to food labeling standards.

*5. Compared to Kin-Mugi.

Wine business's revenue fell 1% year on year. Sales volume of Japanese wine grew by 5% year on year. Furthermore, in order to be able to respond to changes in consumer behaviors, the Company endeavored to create new demand. Suntory Wine

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