Suntory Beverage & Food : Summary of Consolidated Financial Results for FY 2021

English Translation

February 14, 2022

	Summary of Consolidated Financial Results
	for the Fiscal Year Ended 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:	Kazushi Ishikawa, Chief Financial Officer, Corporate Strategy Division
	TEL: [phone] (from overseas)

Scheduled date of ordinary general meeting of shareholders:	March 25, 2022
Scheduled date to file securities report:	March 28, 2022
Scheduled date to commence dividend payments:	March 28, 2022
Preparation of supplementary material on financial results:	Yes
Holding of financial results presentation meeting (for institutional investors and analysts):	Yes

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

1. Consolidated financial results for the fiscal year ended December 31, 2021 (from January 1, 2021 to December 31, 2021)

(1) Consolidated operating results

(Percentages indicate year-on-year changes)

	Revenue		Operating income	Profit before tax	Profit for the year
Fiscal year ended	(Millions of yen)	(%)	(Millions of yen)	(%)	(Millions of yen)	(%)	(Millions of yen)	(%)
December 31, 2021	1,268,917	7.7	118,568	23.3	117,052	24.3	83,029	29.1
December 31, 2020	1,178,137	(9.3)	96,177	(15.6)	94,168	(16.1)	64,294	(19.7)
	Profit for the year	Comprehensive income
	attributable to owners of
	for the year
	the Company
Fiscal year ended	(Millions of yen)	(%)	(Millions of yen)	(%)
December 31, 2021	68,676	31.5	122,638	113.5
December 31, 2020	52,212	(24.2)	57,434	(26.9)
				Ratio of profit for	Ratio of profit	Ratio of operating
	Basic earnings	Diluted earnings	the year to
	equity attributable	before tax to	income to
	per share		per share
		to owners of	total assets	revenue
				the Company
Fiscal year ended	(Yen)		(Yen)		(%)	(%)		(%)
December 31, 2021	222.25		-		8.4	7.2		9.3
December 31, 2020	168.97		-		6.8	6.0		8.2

Reference: Gain on investments accounted for using the equity method
For the fiscal year ended December 31, 2021:	¥70 million
For the fiscal year ended December 31, 2020:	¥(85) million

(2) Consolidated financial position
				Equity attributable	Ratio of equity	Equity
				attributable to	attributable to
		Total assets	Total equity	to owners of the	owners of	owners of
				Company	the Company	the Company
					to total assets	per share
	As of	(Millions of yen)	(Millions of yen)	(Millions of yen)	(%)	(Yen)
	December 31, 2021	1,676,926	943,952	860,593	51.3	2,785.09
	December 31, 2020	1,574,251	859,556	781,755	49.7	2,529.95

(3) Consolidated cash flows
		Net cash inflow	Net cash inflow	Net cash inflow	Cash and cash
		(outflow) from	(outflow) from	(outflow) from	equivalents at the
		operating activities	investing activities	financing activities	end of the year
	Fiscal year ended	(Millions of yen)	(Millions of yen)	(Millions of yen)	(Millions of yen)
	December 31, 2021	158,180	(56,867)	(96,109)	176,655
	December 31, 2020	134,019	(61,217)	(46,754)	167,480

2. Dividends

		Annual cash dividends				Ratio of
								dividends to
						Total cash	Dividend	equity
	First	Second	Third	Fiscal		payout ratio	attributable to
	Total	dividends
	quarter-end	quarter-end	quarter-end	year-end	(Consolidated)	owners of the
								Company
								(Consolidated)
	(Yen)	(Yen)	(Yen)	(Yen)	(Yen)	(Millions of yen)	(%)	(%)
Fiscal year ended	-	39.00	-	39.00	78.00	24,101	46.2	3.1
December 31, 2020
Fiscal year ended	-	39.00	-	39.00	78.00	24,101	35.1	2.9
December 31, 2021
Fiscal year ending
December 31, 2022	-	39.00	-	39.00	78.00		32.8
(Forecast)

3. Consolidated earnings forecast for the fiscal year ending December 31, 2022 (from January 1, 2022 to December 31, 2022)

(Percentages indicate year-on-year changes)

									Profit for the year	Basic earnings
	Revenue		Operating income	Profit before tax	Profit for the year	attributable to
		owners of		per share
									the Company
	(Millions of	(%)	(Millions of	(%)	(Millions of	(%)	(Millions of	(%)	(Millions of	(%)	(Yen)
	yen)	yen)	yen)	yen)	yen)
Fiscal year ending	1,369,000	7.9	125,500	5.8	124,000	5.9	88,500	6.6	73,500	7.0	237.86
December 31, 2022

* 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 December 31, 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 December 31, 2021	31 shares
As at December 31, 2020	3 shares

1. Average number of outstanding shares during the period

Fiscal year ended December 31, 2021	308,999,994 shares
Fiscal year ended December 31, 2020	308,999,997 shares

• Financial results reports are not required to be audited 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.	Overview of Operating Results........................................................................................................	2
(1)	Overview of operating results for the fiscal year under review .......................................................	2
(2)	Overview of financial position for the fiscal year under review......................................................	4
(3)	Overview of cash flows for the fiscal year under review.................................................................	4
(4)	Future outlook..................................................................................................................................	4
(5)	Basic policy on profit distribution and dividends for the 2021 and 2022 fiscal years .....................	4
2.	State of the Group ............................................................................................................................	6
3.	Management Strategy.......................................................................................................................	7
(1)	Corporate vision and promise ..........................................................................................................	7
(2)	Medium-term strategy......................................................................................................................	7
(3)	Medium-term plan (2021-2023).......................................................................................................	7
(4)	Issues to address...............................................................................................................................	8
4.	Basic Concept Regarding Selection of Accounting Standard ..........................................................	9
5.	Consolidated Financial Statements and Significant Notes Thereto (Unaudited) ...........................	10
(1)	Consolidated statement of financial position .................................................................................	10
(2)	Consolidated statement of profit or loss.........................................................................................	12
(3)	Consolidated statement of comprehensive income ........................................................................	13
(4)	Consolidated statement of changes in equity .................................................................................	14
(5)	Consolidated statement of cash flows............................................................................................	15
(6)	Notes to consolidated financial statements ....................................................................................	16
	(Going concern) .............................................................................................................................	16
	(Changes in presentation)...............................................................................................................	16
	(Significant accounting estimates) .................................................................................................	16
	(Segment information) ...................................................................................................................	16
	(Per share information) ..................................................................................................................	18
	(Subsequent events) .......................................................................................................................	18

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1. Overview of Operating Results

1. Overview of operating results for the fiscal year under review
   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.
   In 2021, the Group continued to expand its market share in key countries as a result of promoting its growth strategy enlisting ongoing efforts to concentrate on our core brands while coming up against effects of the novel coronavirus disease (COVID-19). Profit greatly exceeded that of the previous fiscal year as the Group persisted in carrying out cost reduction activities and improving efficiency in the use of sales promotion and advertising costs amid a scenario of cost increases associated with inflation in commodities and global supply chain disruptions becoming more apparent since the third quarter of the year ended December 31, 2021. With respect to operating income, whereas the Group had been seeking to achieve a return to 2019 levels during the fiscal year ending December 31, 2022, the Group achieved that objective one year ahead of plan.
   For the fiscal year under review, the Group reported consolidated revenue of ¥1,268.9 billion, up 7.7% year on year. Consolidated operating income was ¥118.6 billion, up 23.3% year on year. Furthermore, profit for the year attributable to owners of the Company was ¥68.7 billion, up 31.5% year on year.
   Results by segment are described below.
   The Company implemented changes to its organization on January 1, 2021, to achieve dramatic growth in key markets in the Asia and Oceania regions. As a result of this restructuring, the reportable segments, which until now comprised "Japan business," "Europe business," "Asia business," "Oceania business," and "Americas business," effective in 2021, comprise "Japan business," "Asia Pacific business," "Europe business," and "Americas business." To present comparisons with the previous corresponding periods, previous fiscal year figures have been reclassified into the reportable segments subsequent to the organizational changes and also reclassified enlisting the methods for calculating profit and loss of reportable segments subsequent to the changes.

< Japan business >

Results in the overall beverage market were only slightly higher than in the previous fiscal 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 achieved an increase in sales volume relative to the previous fiscal year due to contributions 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 Suntory Tennensui brand achieved record-high sales volume with sales volume of the brand overall having increased relative to the previous fiscal year. 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. The increase in sales volume was substantially bolstered by Matcha Latte, which was newly released in August, in addition to growth with respect to both the Craft BOSS series, which was renewed in March, and the tea series. In the sugar-free tea category, the Iyemon brand achieved record-high sales volume with the brand's overall sales volume having greatly exceeded that of the previous fiscal year. The increase in the brand's sales volume contributed to strong performance of Iyemon Koi Aji, which was newly released in February, and Iyemon Kyoto Blend, which was newly released in April.

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