Suntory Beverage & Food : Supplementary Information for Q2 of FY2020

Supplementary Material on Consolidated Financial Results for the First

Six Months of the Year Ending December 31, 2020

1. Summary of Consolidated Statement of Profit or Loss, Indices, etc.
2. Revenue Details
3. Profit Details
4. Summary of Consolidated Statement of Financial Position
5. Summary of Consolidated Statements of Cash Flows
6. Other Information

Suntory Beverage & Food Limited

August 5, 2020

1. Summary of Consolidated Statement of Profit or Loss, Indices, etc.

(1) Summary of Consolidated Statement of Profit or Loss

					(Billions of yen with fractional amounts rounded off)
	Six months ended		Six months ended
	June 30, 2019		June 30, 2020	Increase (decrease)
		Ratio to revenue		Ratio to revenue
Revenue	627.8		100.0%	552.5	100.0%	(75.2)		(12.0)%
Gross profit	259.2		41.3%	225.2	40.8%	(34.0)		(13.1)%
Selling, general and administrative	206.8		32.9%	188.6	34.1%	(18.1)		(8.8)%
expenses
Gain on investments accounted for	(0.0)		(0.0)%	(0.1)	(0.0)%	(0.1)		979.6%
using the equity method
Other income	0.9		0.1%	1.5	0.3%	0.6		73.5%
Other expenses	2.4		0.4%	2.3	0.4%	(0.1)		(3.6)%
Operating income	50.9		8.1%	35.7	6.5%	(15.2)		(29.8)%
Finance income	0.7		0.1%	0.6	0.1%	(0.2)		(20.4)%
Finance costs	1.7		0.3%	1.2	0.2%	(0.5)		(30.9)%
Profit before tax for the period	49.9		8.0%	35.1	6.4%	(14.8)		(29.7)%
Income tax expense	12.6		2.0%	8.6	1.5%	(4.1)		(32.2)%
Profit for the period	37.3		5.9%	26.6	4.8%	(10.7)		(28.8)%
Profit for the period attributable to	5.5		0.9%	5.6	1.0%	0.1		2.0%
non-controlling interests
Profit for the period attributable to	31.8		5.1%	20.9	3.8%	(10.8)		(34.1)%
owners of the Company

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(2) Other Indices

									(Billions of yen)
		Six months ended		Six months ended		Increase (decrease)
		June 30, 2019		June 30, 2020
Depreciation				35.6			35.3	(0.3)	(0.8)%
Operating income	Operating margin	50.9		8.1%	35.7		6.5%	(15.2)	(29.8)%
EBITDA *1	EBITDA margin	88.0		14.0%	71.8		13.0%	(16.2)	(18.4)%

*1 EBITDA is calculated as operating income - other income + other expenses + depreciation.

				(Billions of yen)
	As at December 31, 2019	As at June 30, 2020	Increase (decrease)
Total assets	1,567.3		35.8	2.3%
1,603.1
Total equity	837.6	828.9	(8.7)	(1.0)%
D/E ratio (Times) *2	0.1	0.1

*2 D/E ratio is calculated as (interest-bearing debt - cash and cash equivalents ± valuation difference from adopting hedge accounting, etc.) / total equity.

(3) Exchange Rates for the Consolidation of Profit or Loss of the Major Overseas Companies

			(Yen, average exchange rate)
	Six months ended		Six months ended
	June 30, 2019		June 30, 2020
USD		110.1
	108.2
EUR		124.3	119.3
GBP		142.5	136.4
SGD		81.0	77.4
THB		3.5	3.4
VND		0.0047	0.0046
NZD		74.0	67.8
AUD		77.8	71.2

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2. Revenue Details

				(Billions of yen)
				Increase
	Six months ended	Six months ended	Increase (decrease)	(decrease)	Reference
	June 30, 2019	June 30, 2020	currency
				neutral

Japan	336.0	298.7	(37.3)
Europe	111.1	87.7	(23.5)
Asia	115.3	104.5	(10.8)
Oceania	25.4	23.1	(2.3)
Americas	39.9	38.6	(1.3)
Reconciliations	-	-	-
Consolidation total	627.8		(75.2)
552.5

(11.1)% (11.1)%

(21.1)% (17.6)%

(9.3)% (7.6)%

(9.2)% (0.8)%

(3.4)% (1.7)%

--

(12.0)% (10.6)%

3. Profit Details

(1) EBITDA

				(Billions of yen)
				Increase
	Six months ended	Six months ended	Increase (decrease)	(decrease)	Reference
	June 30, 2019	June 30, 2020	currency
				neutral

Japan	42.4	30.7	(11.6)
Europe	21.2	16.2	(5.0)
Asia	18.6	20.4	1.8
Oceania	4.2	3.5	(0.7)
Americas	5.4	4.7	(0.7)
Reconciliations	(3.8)	(3.8)	0.0
Consolidation total	88.0		(16.2)
71.8

(27.5)% (27.5)%

(23.6)% (20.3)%

9.5% 10.2%

(16.0)% (11.7)%

(12.9)% (11.4)%

• - *1
  (18.4)% (17.2)%

*1 "Reconciliations" to segment EBITDA represents overhead costs incurred by the Company to manage the Group's operations and is not allocated to each reportable segment.

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(2) Segment Profit

				(Billions of yen)
				Increase
	Six months ended	Six months ended	Increase (decrease)	(decrease)	Reference
	June 30, 2019	June 30, 2020	currency
				neutral

Japan	22.7	11.1	(11.6)
Europe	14.7	10.5	(4.1)
Asia	12.7	14.7	2.0
Oceania	2.6	1.9	(0.7)
Americas	3.8	2.9	(0.8)
Reconciliations	(5.5)	(5.4)	0.1
Consolidation total	50.9		(15.2)
35.7

(51.2)% (51.2)%

(28.2)% (25.2)%

15.5% 17.3%

(25.4)% (21.7)%

(22.1)% (20.7)%

• - *2
  (29.8)% (28.5)%

*2 "Reconciliations" to segment profit represents overhead costs incurred by the Company to manage the Group's operations and is not allocated to each reportable segment.

(3) Breakdown of Increase (Decrease) in Segment Profit for Japan Business Segment

	(Billions of yen)
Segment profit for the six months ended June 30, 2019	22.7
Decrease in revenue	(37.3)
Decrease in cost of goods sold	18.2
Decrease in sales promotion and advertising costs	7.2
Decrease in other expenses	0.4
Segment profit for the six months ended June 30, 2020	11.1

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4. Summary of Consolidated Statement of Financial Position

							(Billions of yen)
				As at	As at	Increase (decrease)	Reference
				December 31, 2019	June 30, 2020
	Cash and cash equivalents		143.6	183.3	39.7
	Trade and other receivables
		191.2	201.5	10.3
	Other financial assets
			6.2	1.8	(4.4)
	Inventories
			84.9	93.8	8.9
	Other current assets
			20.3	25.3	5.0
	Subtotal
			446.2	505.7	59.5
	Assets held for sale
			0.1	0.0	(0.1)
Current assets			446.3	505.7	59.3
	Property, plant and equipment		372.0	364.1	(8.0)
	Right-of-use assets
			47.4	49.2	1.7
	Goodwill
			247.9	245.0	(2.8)
	Intangible assets
			411.4	393.4	(18.0)
	Investments accounted	for using	the
	1.1	0.9	(0.2)
	equity method
	Other financial assets			17.2	17.0	(0.2)
	Deferred tax assets
			14.4	17.2	2.7
	Other non-current assets
			9.6	10.7	1.1
Non-current assets			1,121.0	1,097.5	(23.5)
Total assets			1,567.3	1,603.1	35.8
	Bonds and borrowings			74.7	108.5	33.9	*1
	Trade and other payables
			322.5	319.3	(3.1)
	Other financial liabilities
			38.4	41.1	2.6
	Accrued income taxes
			18.8	16.3	(2.5)
	Provisions
			1.5	1.7	0.2
	Other current liabilities
			6.0	7.6	1.6
Current liabilities			461.9	494.5	32.6
	Bonds and borrowings			132.7	144.1	11.4	*2
	Other financial liabilities
			45.8	48.1	2.3
	Post-employment benefit liabilities
		15.4	15.8	0.4
	Provisions
			2.6	2.2	(0.3)
	Deferred tax liabilities
			65.8	64.0	(1.8)
	Other non-current liabilities		5.6
		5.5	(0.0)
Non-current liabilities			267.8	279.8	11.9
Total liabilities			729.7	774.3	44.5
Total equity attributable to	owners of	the	756.6	746.4	(10.1)
Company
Non-controlling interests			81.0	82.4	1.4
Total equity			837.6	828.9	(8.7)
Total liabilities and equity			1,567.3		35.8
		1,603.1

*1 The increase is mainly due to the impact of an increase in commercial papers.

*2 The increase is mainly due to the impact of an increase in long-term borrowings.

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5. Summary of Consolidated Statements of Cash Flows

				(Billions of yen)
		Six months ended	Six months ended	Increase (decrease)
		June 30, 2019	June 30, 2020
	Profit before tax for the period	49.9	35.1	(14.8)
	Depreciation and amortization
	35.6	35.3	(0.3)
	Other
	(33.7)	(26.5)	7.1
Cash flows from operating activities	51.9	43.9	(8.0)
	Payments for capital expenditures	(29.8)	(31.1)	(1.3)
	Other
	(1.1)	0.5	1.6
Cash flows from investing activities	(30.9)	(30.7)	0.2
	Increase (decrease) in interest-bearing debt	(48.9)	43.9	92.8
	Dividends paid to owners of the Company
	(12.1)	(12.1)	0.0
	Dividends paid to non-controlling interests
	(2.8)	(3.0)	(0.2)
	Other	(0.1)	-	0.1
Cash flows from financing activities	(63.9)	28.9	92.8
Net increase (decrease) in cash and cash equivalents	(42.9)	42.1	85.0
Effects of exchange rate changes	(0.3)	(2.4)	(2.1)

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6. Other Information

* On the basis of shipment volumes

					(Million cases)
	Six months ended June 30, 2019	Six months ended June 30, 2020
	Actual		Increase (decrease)	Actual	Increase (decrease)
Suntory Tennensui		53.2	(2)%
	52.7	(1)%
Boss		53.8	5%	49.5	(8)%
Iyemon		24.8	(3)%	25.1	1%
Suntory Oolong Tea		11.7	(7)%	9.5	(18)%
Pepsi		9.8	2%	7.9	(20)%
Green DAKARA		17.6	19%	18.3	4%
FOSHU drinks and functional beverages		11.3	(1)%	10.6	(6)%
Total		215.8	1%	198.8	(8)%

• The portions of the sales volume supplied from other soft drink manufacturers such as Japan Beverage Holdings Inc. are not included in the above figures.

					(Million liters)
	Six months ended June 30, 2019	Six months ended June 30, 2020
	Actual		Increase (decrease)	Actual	Increase (decrease)
Orangina (France)		85	(1)%
	74	(12)%
Oasis (France)		139	(7)%	124	(11)%
Schweppes (Spain, Portugal)		60	1%	44	(27)%
Lucozade (UK, Ireland)		200	9%	181	(10)%
Ribena (UK, Ireland)		44	(16)%	36	(17)%

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