Financial Results Presentation for 2017 · 2018-03-07 · Financial Results Presentation for 2017. 2017 Summary. 2018 Forecast. ... partial negative impact of retail price hike

February 2018

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Financial Results Presentation for 2017

2017 Summary2018 Forecast

Financial Results for 2017Financial Forecast for 2018

【2017】・Revenue: Finished above target with +22.1% YoY growth mainly driven by revenue growth of Overseas Business, which

includes the full-year contribution of Europe business, mitigating the slight decline in Alcohol Beverages Business.

・Core OP: Finished above target with +32.2% YoY growth driven by profit growth across all three domestic Businesses in addition to Overseas Business which includes the positive impact of the addition of Europe business.

【2018 forecast】・Revenue: Target +2.6% YoY growth driven by Overseas Business centered on Europe business, mitigating YoY decline of

Soft Drinks Business due to sales of stocks of LB.・Core OP: Target +12.0% YoY growth driven by Overseas Business centered on Europe business in addition to all three

domestic Businesses.

Financial Results 2017 Highlight


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(JPY billion)2017 2018 forecast

YoY (Amount / %) Against Target YoY (Amount / %)Alcohol Beverages Business 968.9 - 7.8 - 0.8% - 3.6 963.0 4.6 0.5% Soft Drinks Business 374.5 10.6 2.9% 0.2 369.7 - 4.8 - 1.3% Food Business 113.8 3.0 2.7% - 0.1 113.9 0.1 0.1% Overseas Business 621.1 370.8 148.1% 55.7 697.5 60.5 9.5% Other Business 106.1 3.9 3.8% - 0.2 110.2 4.1 3.8% Adjustmenet (corporate and elimination) - 99.5 - 2.5 - 2.9 - 114.3 - 9.4 -

Revenue 2,084.9 378.0 22.1% 54.9 2,140.0 55.1 2.6% Alcohol Beverages Business 121.5 0.7 0.6% - 1.5 125.0 4.5 3.8% Soft Drinks Business 38.3 6.0 18.5% 1.2 38.9 0.6 1.5% Food Business 11.6 1.4 13.4% 0.1 12.1 0.5 4.1% Overseas Business 65.9 53.6 434.0% 7.0 92.0 25.0 37.2% Other Business 2.0 - 0.0 - 0.4% - 0.1 2.4 0.4 20.5% Adjustmenet (corporate and elimination) - 20.2 - 0.3 - 1.8 - 21.9 - 1.7 - Amortization of acquisition-related intangible assets - 19.2 - 12.9 - - 0.6 - 21.7 - 2.5 - Corporate adjustment (IFRS adjustment) - 3.6 - 0.5 - 0.4 - 6.8 - 3.2 -

Core operating profit 196.4 47.9 32.2% 8.4 220.0 23.6 12.0% Operating profit 183.2 46.3 33.8% 15.9 200.0 16.8 9.2% Profit attributable to owners of parent 141.0 51.8 58.0% 31.0 142.0 1.0 0.7%

Alcohol Beverages Business (Sales Volume of Beer-type)


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【Market Total】・2017: -2% to -3% YoY decline in total volume due to unseasonable weather, despite reinforced marketing activities

around core brands and brand extension products by each company.・2018: YoY contraction by approx. -2% in total volume expected due to the industry’s structural trend in addition to the

partial negative impact of retail price hike.

【Sales Volume of Asahi Breweries】・2017 -3.0% YoY decline due to sluggish sales in on-premise market, despite reinforced marketing activities related to

30th anniversary of Super Dry. -1.7% YoY decline in total volume with sales decrease of brands other than Style Free, despite slight

decline of Style Free brand. +0.1% YoY growth in total volume with favorable results of Clear Asahi brand due to strong performance

of Zeitaku Zero and launches of limited-time-only products.・2018 -1.5% YoY decline expected due to market contraction, despite launching new products such as Super Dry

extension products Shunrei Karakuchi and Gran Mild. -3.4% YoY decline in total volume expected due to continuous contraction of other brands than Style Free,

despite enhancing promotional activities focused on Style Free brand. Target the same level as the previous year through reinforcement of Clear Asahi brand driven by the

renewal of core products and launches of limited-time-only products.

(Millions of cases) 2017 2018 forecast 2017 2018 forecast

YoY (Amount / %) Against target YoY (Amount / %) YoY YoYBeer 99.98 - 3.11 - 3.0% - 1.52 98.50 - 1.48 - 1.5% -2～3％ -2～3％Happoshu 15.01 - 0.26 - 1.7% 0.51 14.50 - 0.51 - 3.4% Approx. -4％ Approx. -3％New Genre 42.98 0.06 0.1% - 1.02 43.00 0.02 0.0% -1～2％ Approx. -1％

Beer-type beverages Total 157.97 - 3.31 - 2.1% - 2.03 156.00 - 1.97 - 1.2% -2～3％ Approx. -2％

(Millions of cases)2017 2018 forecast 2017 YoY

YoY (Amount / %) Against target YoY (Amount / %)Super Dry Total 97.94 - 2.06 - 2.1% - 2.06 95.50 - 2.44 - 2.5% Can - 2.7% Style Free Total 13.35 - 0.01 - 0.1% - 0.05 13.40 0.05 0.4% Keg - 2.2% Clear Asahi Total 35.85 0.37 1.0% - 0.75 36.00 0.15 0.4% Bottle - 5.2%

Alcohol Beverages Business (Revenue)


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【Revenue of Other Alcohol Beverages】・2017

+3.6% YoY growth in total, with continuous favorable sales of each category centering on RTD low-alcohol beverages.+1.0% YoY growth in sales of Non-alcohol beverages mainly driven by strong performance of Dry Zero.

・2018Target +4.8% YoY growth driven by enhancing RTD low-alcohol beverages through sales expansion of Mogitate and launches of new brands.Target +1.9% YoY growth in sales of Non-alcohol beverages driven by revitalized impact of renewal of Dry Zero.


YoY (Amount / %) Against Target YoY (Amount / %)Beer 546.1 - 14.3 - 2.5% - 7.1 547.6 1.5 0.3% Happoshu 57.9 - 1.2 - 2.0% 1.9 55.9 - 2.0 - 3.5% New Genre 142.4 0.2 0.1% - 3.4 142.9 0.5 0.3%

Beer-type beverages total 746.3 - 15.3 - 2.0% - 8.5 746.3 0.0 0.0% Whiskey and spirits 55.0 0.7 1.2% 0.0 56.3 1.3 2.4% Wine 41.3 1.1 2.9% 0.1 42.4 1.1 2.7% RTD low-alcohol beverages 40.6 3.4 9.1% - 0.9 46.5 5.9 14.6% Shochu 27.9 0.5 1.8% 0.2 27.5 - 0.4 - 1.4% Other 0.0 - 0.0 - 9.1% - 0.0 0.1 0.0 8.5%

Other alcohol beverages total 164.8 5.7 3.6% - 0.6 172.8 8.0 4.8% Non-alcohol beverages 31.9 0.3 1.0% - 0.3 32.5 0.6 1.9% Other, contracted manufacture, etc. 24.1 0.1 0.5% - 0.4 24.9 0.7 3.1%

Asahi Breweries Revenue 967.2 - 9.1 - 0.9% - 9.8 976.5 9.3 1.0% Other / elimination in segment 38.2 - 1.5 - 3.8% 2.7 23.5 - 4.2 - 15.3% Corporate adjustment (IFRS adjustment) - 36.5 2.8 - 3.5 - 37.0 - 0.5 - Revenue total 968.9 - 7.8 - 0.8% - 3.6 963.0 4.6 0.5%

Alcohol Beverages Business (Core Operating Profit)


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【2017: Factors Contributing to Growth / Decline】 (JPY billion)

Beer-type – Decrease in sales volume: -5.7 (Beer -5.5, Happoshu -0.3, New Genre +0.1)Cost reduction in manufacturing: +3.8(Raw materials +2.8, Product mix improvement in categories of other than beer-type +1.0)Cost increase in manufacturing: -0.5 (Raw materials -0.1, etc.)Decrease in sales promotion expense: +3.6 (Advertisement +1.2, Promotion expenses +2.4)

(Beer-type +4.8, Others -1.2)

【2018 forecast: Factors Contributing to Growth / Decline】 (JPY billion)

Beer-type – Increase in sales volume: +2.6 (including the impact of price revision)Cost reduction in manufacturing: +1.0(Raw materials +0.4, Product mix improvement in categories other than beer-type +0.4, etc.)Cost increase in manufacturing: -1.0 (Raw materials -0.6, Utilities -0.4)Decrease in sales promotion expenses: +0.4 (Advertisement -0.3, Promotion expenses +0.7)

(Beer-type +1.5, Others -1.1)


YoY (Amount / %) Against Target YoY (Amount / %)Beer-type - Increase in sales volume - - 5.7 - 3.4 - 2.6 Change in Beer-type - 0.3 - 0.2 - 1.8 Other alcohol beverages - increase in sales volume - 3.0 0.0 - 2.6 Cost reduction in manufacturing - 3.8 0.7 - 1.0 Cost increase in manufacturing - - 0.5 - 0.1 - - 1.0 Decrease in sales promotion expense 104.9 3.6 1.1 104.5 0.4 Increase in other expenses - - 4.5 - 0.1 - - 2.9

Asahi Breweries 119.6 0.1 0.1% - 1.9 124.1 4.5 3.8% Other / elimination in segment 1.9 0.6 48.7% 0.3 0.9 0.0 2.8%

Core Operating Profit 121.5 0.7 0.6% - 0.7 125.0 4.5 3.8%

Soft Drinks Business (Sales Volume)


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【Market Total】・2017: Unchanged from the previous year in volume driven by increase of marketing activities around core

brands in each beverage company, mitigating the impact of unseasonable weather.・2018: Expected to maintain YoY or slightly above in total volume, with beverage companies focusing their

activities on proposal of new value products by utilizing their core brands.【Asahi Soft Drinks Sales Volume】

・2017: +0.8% YoY growth in total sales volume, with strong performances from Wilkinson and Calpis, mitigating the volume decline of Mineral Water and others.

・2017: Target +2.9% YoY growth in total volume through enhancement of brand values of core 6 brands and reinforcing the health category by utilizing our own unique R&D capabilities.

(Millions of cases) 2017 2018 forecast 2017 2018 forecast

YoY (Amount / %) Against target YoY (Amount / %) YoY YoYCarbonated drinks 62.06 3.87 6.7% 0.16 65.53 3.46 5.6% 0～1%Fruit juice 22.42 - 1.18 - 5.0% 0.79 19.55 - 2.88 - 12.8% +1～2%Coffee 44.17 0.17 0.4% - 1.33 46.00 1.83 4.1% -1～2%Tea 40.20 - 1.90 - 4.5% - 0.35 40.75 0.55 1.4% +1～2%Mineral Water 23.46 - 2.49 - 9.6% 0.06 24.80 1.34 5.7% -2～3%Lactic acid drinks 44.37 3.10 7.5% 0.87 47.36 2.99 6.7% +1～2%Other drinks 19.29 0.54 2.9% - 0.63 19.52 0.23 1.2% -

Sales Volume 255.98 2.12 0.8% - 0.42 263.50 7.52 2.9% unchaged YoY 0～1%

2017 2018 forecastYoY (Amount / %) YoY (Amount / %)

Mitsuya 37.52 - 1.51 - 3.9% 40.10 2.58 6.9% Wilkinson 19.90 3.60 22.1% 21.00 1.10 5.5% WONDA 41.65 - 0.26 - 0.6% 44.00 2.35 5.6% Jurokucha 22.93 - 1.12 - 4.7% 24.40 1.47 6.4% Oishii Mizu 23.46 - 2.48 - 9.6% 24.80 1.34 5.7% Calpis 38.34 3.19 9.1% 40.30 1.96 5.1%

Soft Drinks Business (Core Operating Profit)


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【2017: Factors Contributing to Growth / Decline】 (JPY billion)

Cost reduction: +3.4(Raw materials +1.5, Packages +0.7, operational efficiency / in-house production +1.2)Cost increase: -0.3 (Raw materials -0.1, Packages -0.2)Decrease in sales promotion expenses: +0.9 (Advertisement -0.5, Promotion expenses +1.4)

【2018 forecast: Factors Contributing to Growth / Decline】 (JPY billion)

Cost reduction: +3.4(Raw materials +1.0, Packages +0.8, operational efficiency / in-house production +1.6)Cost increase: -1.7 (Raw materials -0.8, Packages -0.9)Increase in sales promotion expenses: -1.4(Advertisement +0.5, Promotion expenses -1.9)

(Millions of cases / JPY billion)2017 2017 forecast

YoY (Amount / %) Against Target YoY (Amount / %)　Sales Volume total 255.98 2.12 0.8% - 0.42 263.50 7.52 2.9% 　Revenue total 374.5 10.6 2.9% 0.2 369.7 - 4.8 - 1.3%

Increase in sales volume - 1.8 - 0.5 - 3.3 Change in product & pack mix, etc. - 1.2 0.1 - 0.2 Cost reduction - 3.4 0.4 - 3.4 Cost increase - - 0.3 0.0 - - 1.7 Decrease in sales promotion expenses - 0.9 0.5 - - 1.4 Other expenses - - 1.2 0.5 - - 2.1

　 Asahi Soft Drinks 37.0 5.8 18.5% 1.0 38.7 1.7 4.5% 　 LB 0.9 0.1 7.1% 0.1 - - 0.9 - Other / elimination in segment 0.4 0.2 65.0% 0.1 0.2 - 0.2 - 49.9%

　Core Operating Profit 38.3 6.0 18.5% 1.2 38.9 0.6 1.5%

Food Business (Revenue / Core Operating Profit)

【Revenue】・2017: +2.7% YoY growth driven by strong performance in core brands including MINTIA and Dear Natura.・2018: Target +0.1% YoY growth driven by enhancing developments of added value products of core brands,

despite some decline expected due to business restructuring.

【Core Operating Profit】・2017: +13.4% YoY growth driven by revenue growth and reduction of manufacturing cost through factors

including review of procurement for raw materials and improvement of manufacturing efficiency.・2018: Target +4.1% YoY growth driven by continuous improvement of product mix through enhancement of

developments of added value products and manufacturing cost reduction.


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YoY (Amount / %) Against Target YoY (Amount / %)Asahi Group Foods 126.1 3.8 3.1% 0.9 126.3 0.2 0.2% Other / elimination - 0.0 - 0.0 - - 0.0 0.0 0.0 - Corporate adjustment (IFRS adjustment) - 12.3 - 0.8 - - 1.0 - 12.4 - 0.1 -

Revenue 113.8 3.0 2.7% - 0.1 113.9 0.1 0.1%


YoY (Amount / %) Against Target YoY (Amount / %)Asahi Group Foods 11.1 1.1 10.6% 0.0 11.7 0.5 4.7% Other / elimination 0.5 0.3 168.6% 0.1 0.4 - 0.0 - 9.3%

Core Operating Profit 11.6 1.4 13.4% 0.1 12.1 0.5 4.1%

Overseas Business (Revenue)


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【Revenue (excluding foreign exchange impacts associated with conversion of local currencies into JPY)】Note: See P.10 for details of Europe business2017・Oceania: +9.8% YoY growth driven by strong performance of beer with Peroni, newly added Europe brand, in addition

to water category. (Non-alcohol beverages +5%, Alcohol beverages +17%)・Southeast Asia: +6.2% YoY growth due to strong performance of Asahi brands in Malaysia and also favorable sales of

core brands in Indonesia.・China: +0.4% YoY growth driven by favorable sales of Super Dry both in China and export; mainly to Oceania.

2018・Oceania: Target +6.0% YoY growth driven by reinforcing the sales for water category and both Super Dry and Peroni(Non-alcohol beverages -7%, Alcohol beverages +22%).

・Southeast Asia: Target -15.1% YoY decline due to the scope change of Indonesia business to unconsolidated subsidiary, despite enhancing brand value improvement centered on core brands.

・China: -57.5% YoY decline due to the scope change of Yantai Beer to unconsolidated subsidiary, despite strengthening sales activities for premium beer market centered on Super Dry.


YoY (Amount / %) Against Target YoY (Amount / %)Europe business 373.6 347.2 - 36.5 438.9 65.3 17.5% Oceania business 173.2 24.9 16.8% 13.9 183.6 10.4 6.0% Southeast Asia business 55.4 3.2 6.2% 5.2 46.8 - 8.6 - 15.5% China business 17.3 0.3 2.0% 1.2 6.9 - 9.5 - 58.0%

　 Other / elimination 1.5 - 4.9 - 76.7% - 1.1 21.3 2.9 16.0% 　 Corporate adjustment (IFRS adjustment) - - - - - - - Revenue 621.1 370.8 148.1% 55.7 697.5 60.5 9.5%


YoY (Amount / %) Against Target YoY (Amount / %)Europe business 364.4 338.1 - 31.3 438.7 65.1 17.4% Oceania business 162.8 14.5 9.8% 7.6 183.6 10.4 6.0% Southeast Asia business 55.5 3.3 6.2% 3.4 47.1 - 8.4 - 15.1% China business 17.1 0.1 0.4% 0.6 7.0 - 9.4 - 57.5%

　 Other / elimination 1.2 - 5.3 - 82.0% - 1.2 22.0 3.6 19.7% 　 Corporate adjustment (IFRS adjustment) - - - - - - - Revenue 600.9 350.6 140.1% 41.7 698.3 61.4 9.6%

Overseas Business (Core Operating Profit)


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【Core Operating Profit (excluding foreign exchange impacts associated with conversion of local currencies into JPY)】Note: See P.10 for details of Europe business2017・Oceania: +19.9% YoY growth driven by revenue growth and integration synergies.・Southeast Asia: -65.4% YoY decline mainly due to price hike of raw materials in Malaysia, despite reducing the deficit of

Indonesia business.・China: -25.8% YoY decline due to price hike of packages and product mix deterioration for contract manufacturing of

Tsingtao Brewery in Yantai Beer.2018・Oceania: Target +11.8% YoY growth driven by product mix improvement of Alcohol beverages through enhancing

premiumization and streamlining manufacturing and logistics processes.・Southeast Asia: Target +155.5% YoY growth driven by revenue growth and manufacturing cost reduction through

review for manufacturing process.・China: -73.7% YoY decline expected due to the scope change of Yantai Beer to unconsolidated subsidiary, despite

enhancing product mix improvement through reinforcing sales activities for premium beer category.


YoY (Amount / %) Against Target YoY (Amount / %)Europe business 51.1 52.8 - 7.7 73.2 22.2 43.5% Oceania business 14.0 3.0 27.6% 0.9 15.7 1.7 11.8% Southeast Asia business 0.8 - 1.6 - 66.7% - 0.5 2.1 1.3 154.3% China business 0.9 - 0.3 - 24.6% - 0.1 0.2 - 0.7 - 74.0% Other / elimination - 0.9 - 0.4 - - 1.0 0.7 0.5 252.6%



YoY (Amount / %) Against Target YoY (Amount / %)Europe business 49.9 51.6 - 7.0 73.3 22.2 43.5% Oceania business 13.2 2.2 19.9% 0.4 15.7 1.7 11.8% Southeast Asia business 0.8 - 1.6 - 65.4% - 0.6 2.1 1.3 155.5% China business 0.9 - 0.3 - 25.8% - 0.1 0.2 - 0.7 - 73.7% Other / elimination - 0.9 - 0.4 - - 1.0 0.8 0.6 272.4%


Europe Business (Revenue / Core Operating Profit)


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【Revenue (excluding foreign exchange impacts associated with conversion of local currencies into JPY)】・2017: +JPY 347.2 billion YoY growth driven by volume increase of core brands and category mix improvement, in

addition to newly consolidated effect of Central Europe business.・2018: Target +17.5% YoY growth driven by steady revenue growth and product mix improvement in addition to 3

month results of Central Europe business.

【 Core Operating Profit (excluding foreign exchange impacts associated with conversion of local currencies into JPY)】・2017: +JPY52.8 billion YoY growth driven by revenue growth, product mix improvement and streamlining each cost

spending in addition to newly consolidated impact.・2018: Target +43.5% YoY growth driven by streamlining cost spending through factors including integration synergy

generation, in addition to revenue growth and product mix improvement.


YoY (Amount / %) Against Target YoY (Amount / %)

Western Europe (consolidated from Oct. 2016) 135.0 108.7 411.9% 9.9 145.3 10.2 7.6%

Central Europe (consolidated from Apr. 2017) 238.5 238.5 - 26.5 293.6 55.1 23.1%

Europe business 373.6 347.2 - 36.5 438.9 65.3 17.5%

2017 2018 forecast

YoY (Amount / %) Against Target YoY (Amount / %)

Gross Core Operating Profit 19.6 15.4 369.1% 1.4 21.4 1.8 9.4%

One off Cost - 1.8 4.1 - - 0.2 - 0.1 1.7 -

Western Europe 17.7 19.5 - 1.2 21.3 3.6 20.0%

Gross Core Operating Profit 45.2 45.2 - 5.1 53.2 8.0 17.7%

One off Cost - 11.8 - 11.8 - 1.4 - 1.2 10.7 -

Central Europe 33.3 33.3 - 6.5 52.0 18.6 55.9%

Europe business 51.1 52.8 - 7.7 73.2 22.2 43.5%

Western Europe - 4.4 - 3.4 - 0.0 - 4.5 - 0.1 - Central Europe - 9.7 - 9.7 - - 0.7 - 12.7 - 3.1 -

Amortization of intangible assets - 14.0 - 13.1 - - 0.6 - 17.3 - 3.2 -

Operating Profit / Profit Attributable to Owners of Parent

【2017】・Operating Profit: +33.8% YoY growth driven by substantial growth in Core OP and gain on sales of stocks of subsidiaries.・Profit attributable to owners of parent:

+58.0% YoY growth due to growth in OP and gain on sales of stocks of Tingyi-Asahi Beverages.

【2018】・Operating Profit: Target +9.2% YoY growth driven by growth in Core OP, despite expected loss on sales and retirement

of non-current assets and cost increase in Others.・Profit attributable to owners of parent:

Target +0.7% YoY growth driven by growth in OP, despite downturn in reaction to gain on sales of investments accounted for using equity method.


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YoY (Amount / %) Against Target YoY (Amount / %)Revenue 2,084.9 378.0 22.1% 54.9 2,140.0 55.1 2.6% Core operating profit 196.4 47.9 32.2% 8.4 220.0 23.6 12.0%

Adjustment item - 13.2 - 1.6 - 7.5 - 20.0 - 6.8 - Loss (gain) on sales and retirement ofnon current assets - 5.5 - 6.8 - 0.5 - 6.0 - 0.5 -

Gain (loss) on sales of stocks of subsidiaries andaffiliates 9.6 9.6 - 9.6 - - 9.6 -

Business integration expeses - 4.0 0.4 - - 2.3 - 4.0 - Impairment loss - 10.1 - 3.8 - - 10.1 - 10.1 - Others - 3.1 - 0.9 - 9.8 - 14.0 - 10.9 -

Operating profit 183.2 46.3 33.8% 15.9 200.0 16.8 9.2% Finance income or loss - 3.8 - 2.8 - - 0.0 - 3.8 - 0.1 -

1.1 - 0.9 - 46.6% - 1.9 0.8 - 0.2 - 21.8%

17.9 5.7 47.1% 17.9 - - 17.9 -

Others - 1.4 - 1.4 - 1.6 6.0 7.4 - Profit before tax 197.0 46.9 31.3% 33.5 203.0 6.0 3.1%

Income tax expense - 58.1 4.8 - - 4.6 - 60.7 - 2.6 - Profit 138.8 51.7 59.4% 28.8 142.3 3.5 2.5% Profit attributable to owners of parent 141.0 51.8 58.0% 31.0 142.0 1.0 0.7% Profit attributable to non-controlling interests - 2.2 - 0.0 - - 2.2 0.3 2.5 -

Gain on sales of investments accounted forusing equity method

Share of loss (profit) of entities accounted forusing equity method

Overview of Business Results for 2017&

Future Business Strategy

Executive Summary


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◆ Strengthened sustainable earning power through enhancing brand equity and cost competitiveness

・Strengthened profitability in Alcohol Beverages Business driven by nurturing leading brands and improving efficiency for promotional expense spending

・Improved profit margin in Soft Drinks and Food Businesses driven by focusing on core brands and expanding integration synergies effect

◆ Positioned Overseas Business as a growth engine and reformed business portfolio・Got off to a favorable start in strategy for growth for enhancing premiumization and generating synergies with Europe business

・Reformed business portfolio through promoting focus on competitiveness and improved asset efficiency

◆ Aiming at growth centered on high added value as a “glocal (Think globally, act locally)” value creating company

・Play a leading role to lead the industry into “value added” competition in domestic matured markets・Facilitate cross border strategy aiming to become a premium brewer with competitive advantage

◆ Developing management further to enhance corporate value in all group companies entering new stages

・Restructure Corporate Philosophy and Long-Term Vision for sustainable growth and review Medium-Term Management Policy

・Reinforce ESG initiatives linked to corporate value through efforts including governance reform contributing to strategy for growth

Overview of 2017 Results

Future Business Strategy

Progress in Medium-Term Management Policy

FY2015 Results Guidelines for FY2016 to FY2018 Progress including FY2018 forecasts

Revenue JPY 1,857.4 billion ・Stable growth from main businesses – Business restructuring + New M&As -

Core OP JPY 135.1 billion ・Existing businesses (CAGR : high single digit) + Impact of new M&As17.6% (Existing businesses only : 6.6%)

ＥＰＳ 166.3 yen ・CAGR : approx. 10% 23.1% (Adjusted : 21.3%)

ＲＯＥ 8.8% ・Maintain and grow to 10% or higher 11.9% (Adjusted : 13.8%)

◆ Key Performance Indicator (KPI) Concept and Guidelines

Note:Result of each indicator includes the impact of transition to IFRS at the end of FY2016Figures in progress are calculated after deduction of special factors including one off extraordinary profit or loss and forex impacts

Cumulative Guidelines for FY2016 to FY2018 Progress including FY2018 forecasts

Cash Flow• Generated cash flow: JPY 470.0 billion or more (Operating cash flow + Maximization measures + Assets review)• Capital expenditures: JPY 180.0 to JPY 220.0 billion

Generated CF :JPY 910.0 billionCAPEX : JPY 240.0 billion

Strategy for Growth

• Active investment in M&As and alliances to acquire foundations for growth(Maximum D/E ratio of approx. 1.0 time acceptable if major capital demands arise)

Investment for growth : JPY 1,200.0 billion(D/E ratio 0.86)

Shareholder Returns

• Stable dividend increases with the aim of a dividend payout ratio of 30% (IFRS basis) by FY2018• Flexible share buybacks taking into account an appropriate balance with investment for growth

29% (excluding special factors : 30%)

◆ Financial and Cash Flow Strategy and Guidelines


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FY2017 Guidelines for next 3 years out

Revenue JPY 2,084.9billion・Stable growth from existing businesses – Business restructuring + New M&As

Core OP JPY 196.4 billion ・CAGR : mid to high single digit

EPS (Adjusted*) 262.2 yen ・CAGR : mid to high single digit

ROE (Adjusted*) 13.7% ・Maintain 13％ or above

*Adjusted figures are calculated after deduction of one off special factors including business portfolio restructuring and forex impact

Review of Medium-Term Management Policy Guidelines


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◆ Key Performance Indicator (KPI) Concept and Guidelines

(JPY billion)

(yen)

Review of Financial and Cash Flow Strategy


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Guidelines for next 3 years out

Cash Flow ・FCF : above 140.0 JPY billion (annual average)・impact of business restructuring : approx. 100.0 JPY billion (FY2018 forecast)

Debt Reduction ・Net debt / EBITDA : around 3 times by the end of FY2019・Net D/E ratio : below 1 time by the end of FY2018Investment for growth

・Prioritize strengthening financial structure and consider M&A for expansion of foundations for growth

Shareholder Returns・Stable dividend increases with the aim of a dividend payout ratio of 30%**Adjusted profit attributable to owners of parent is used for calculation, which is calculated after deduction of one off special factors including business portfolio restructuring

◆ Financial and Cash Flow Strategy and Guidelines

Overview of Alcohol Beverages Business (1)


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◆ Initiatives for revitalizing beer market

◆ Initiatives for improving brand equityin New Genre

Prime Rich Zeitaku Zero

Performance by Container in 2017

◆ Clear Asahi Sales Volume and Market Share Trend

Note : Market share is calculated based on shipment volume

First Entry taking into account revision of beer definition

Full development of European premium brands

Shunrei Karakuchi

Gran Mild European brands

Composition(YoY) YoY

can 52.0%（＋0.7％） - 0.8%

keg 29.7%（-0.1％） - 2.2%

bottle 18.3%（-0.6%） - 5.2%

Total 100.0% - 2.1%

Containertype

Super Dry Total

(Million cases)

Overview of Alcohol Beverages Business (2)

◆ Revenue and Composition Trend of Categories other than Beer-type

◆ RTD : Revenue and Market Share Trend


17

Note : Revenue figures are based on J GAAP

◆ Non-alcohol Beer Taste Beverages:Sales Volume and Market Share Trend

Shochu

RTD

Whiskey

Wine

Non-alcohol

(JPY billion)

(JPY billion)

Source : Intage Source : Intage

(Million cases)

Overview of Soft Drinks Business


18

◆ Wilkinson Sales Volume Trend

◆ Facilitation of Health Field

FOSHU Foods withfunction claimsLacticAcid

Propose wide range of health value by utilizing our own unique R&D capabilities, such as for lactic acidFY2017 results : +29% YoY

(Million cases)

Mitsuya

Wilkinson

WONDA

JyurokuchaOishii Mizu

Calpis

◆ Sales Volume Trend of 6 Core Brands

◆ Revenue and Core OP margin Trend

+17.8%

(CAGR)(Million cases)

Overview of Food Business


19

◆ MINTIA Revenue and Market Share Trend

◆ Revenue Trend of Core Brands

◆ Revenue and Core OP margin Trend

MINTIA

Dear Natura

Infant Formula

Baby Food

Freeze DriedMiso Soup

(JPY billion)

Source : Intage

(JPY billion)

◆ Progress of Strategy for GrowthPeroni Nastro AzzurroNet Sales Growth Rate (Global)

Western Europe Business


20

＋28％

◆ 2017 Results and 2018 Forecast(excluding foreign exchange impacts associated with conversion of local currencies into Euro)

Premium Ratio in Business

(2017 Overview) Revenue increased above target by volume increase in all businesses and increase in the ratio of premium categoryProfit increased above target by product mix improvement due to the growth of UK and International businesses, and cost efficiency

(2018 Strategy) Expand sustainable foundation for growth through revenue increase and growth centered on strengthening the brand equity and development of Super Dry

＋7％

khl、million Euro 2017Results

YoY*2 AgainstTarget*32018

ForecastYoY*4

Sales Volume 8,786 7% 6% 9,119 4% Net Sales (exc Alcohol tax) 859 9% 5% 905 7% Core OP*1 154 13% 3% 167 10%

One-off cost -14 36 -1 -1 14*1 Core OP before reduction of one-off cost *2 Comparison in FX rate of 2016. 2016 result is estimated number due to before acquisition*3 Comparison in target FX rate *4 Comparison in FX rate of 2017

http://www.google.co.jp/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwitp9n9-NnQAhWHpJQKHVzrCugQjRwIBw&url=http://nwdreno.com/portfolio/grolsh/&bvm=bv.140496471,d.dGo&psig=AFQjCNGi6JmvUHePmis3pSPK0Kjs8ZcewA&ust=1480920452303649http://www.google.co.jp/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwitp9n9-NnQAhWHpJQKHVzrCugQjRwIBw&url=http://nwdreno.com/portfolio/grolsh/&bvm=bv.140496471,d.dGo&psig=AFQjCNGi6JmvUHePmis3pSPK0Kjs8ZcewA&ust=1480920452303649

Central Europe Business


21

◆ 2017 Results（Apr.-Dec.) and 2018 Forecast（Jan.-Dec.)(excluding foreign exchange impacts associated with conversion of local currencies into Euro)

◆ Progress of Strategy fro GrowthPilsner UrquellNet Sales Growth Rate (Global)

(2017 Overview) Revenue increased above target by sales volume increase in Czech and Romania, and increase in ratio of premium categoryProfit increased above target by progress of cost optimization programs across the territories, in addition to product mix improvement in each business

(2018 Strategy) Aim to improve profitability in all businesses through premiumization and product mix improvement in each homeland

39% 41%＋11％

50% 48%

11% 11%

khl、million Euro 2017 Results(Apr. - Dec.)

YoY*2 AgainstTarget*32018

ForecastYoY*4

(Full year basis)

Sales Volume 26,084 -1% 2% 32,300 0% Net Sales (exc Alcohol tax) 1,463 1% 4% 1,810 1% Core OP*1 351 6% 3% 415 7%

One-off cost -92 - 17 -9 83*1 Core OP before reduction of one-off cost *2 Comparison in 2016 FX rate. 2016 results estimated number due to before acquisition*3 Comparison in target FX rate of 2017 *4 Comparison in FX rate of 2017. 2017 result is estimated number due to before acquisition

Premium Ratio in Business

Creating Synergies


22

◆ Initiatives for Creating Synergies

（2017）Built own production system of Super Dry in ItalyStarted selling Peroni Nastro Azzurro in Australia

（2018） Procurement cost efficiency by value engineering etc. Continuous initiatives in right sizing IT system, streamline the operating process

（2018）Started selling Super Dry in Italy, UK, and France (from Jan.)Netherlands and Hungary (To be launched in 2018) Start selling European Premium Brands in Japan and China(Japan: from Apr.)

（2017） Reduced IT expenses by implementing the optimization of IT infrastructure and system

◆ Guideline (5+year) ：more than ￥10.0 billion

＜Revenue Synergy (To be quantified＞・ Sales expansion through cross-selling global premium brands・ Developing innovative initiatives leveraging each R&D capability

＜Cost Synergy (¥10.0 billion＞・ SCM： Improve procurement ability by leveraging scale, SCM optimization・ IT：Review infrastructure and functionality requirements to optimize・ Other：Streamline process and support organizations to improve efficiency

Expansion of Super Dry in Europe


23

◆ Brand StrategyEstablish the presence in the premium market by appealing the functional and emotional value

＜Key factor for the expansion＞1: Provenance - No.1 Japanese super premium beer2: Authenticity - The best quality remastered by Japan3: Aspiration - Enthusiasm by enrichment seeker

＜Target＞1: The Enrichment Seeker 2: 25-40 Male & Female 3: Premium Drinker

・Strengthen the engagement with opinion leaders・Improve the quality at drinking(Karakuchi serve)

・Premium Tool Kit

Emotional Value

Functional Value

・Improve the freshness of product by in-house production

Overview of Overseas Business (Oceania Business)


24

◆ Cost Reduction (including integration synergies):Result & Forecast

◆ Initiatives in Growing Categories (Australia)

2016-2018

3year forecast

CostReduction 1.8 3.2 1.0 Over 5.0

(JPY billion) 20172018

forecast2016

Water CategoryMarket Share in 2017

Source : Aztec, value basisSource : Aztec, volume basisMarket YoY +23%

Imported premium beerMarket Share in 2017

Source : Aztec, value basis

◆ Revenue and Core OP Margin Trend(based on local currency: AUD)

(YoY +23%)

(YoY +30%)

Approx. 80% sharein Private Label

Super Dry + Peroni Market Share Trend

中計進捗

◆ 重要業績評価指標（KPIｓ）ジュウヨウギョウセキヒョウカシヒョウ

2012年実績ネンジッセキ2013年実績ネンジッセキ中計　　進捗チュウケイシンチョク2014年実績ネンジッセキ中計　　進捗チュウケイシンチョク2015年実績ネンジッセキ3ヵ年平均成長率ネンヘイキンセイチョウリツ中計　　進捗チュウケイシンチョク中期計画目標　　　　　　　　　　　　　（2015年）チュウキケイカクモクヒョウネン

　ＲＯＥ8.4%8.0%×8.1%×8.6%-×10%を目処メド

　補正ROE　（※）　ホセイ8.6%8.7%△9.4%△10.3%-○

　補正ROE（のれん等償却前）ホセイトウショウキャクマエ11.2%11.9%○12.6%◎12.9%-◎12％を目処メド

　ＥＰＳ（成長率）セイチョウリツ123円エン10.6%○9.7%△9.5%10.0%○年平均10％以上ネンヘイキンイジョウ

　※補正ＲＯＥ＝自己資本から「為替換算調整勘定」、「その他有価証券評価差額」を除いたベースホセイジコシホン

＜KPIｓの前提ガイドライン＞ゼンテイ

2012年実績ネンジッセキ2013年実績ネンジッセキ中計　　進捗チュウケイシンチョク2014年実績ネンジッセキ中計　　進捗チュウケイシンチョク2015年実績ネンジッセキ3ヵ年平均成長率ネンヘイキンセイチョウリツ中計　　進捗チュウケイシンチョク中期計画ガイドライン　　　　　　　　　　　　　（2015年）チュウキケイカクネン

売上高ウリアゲダカ15,791億円オクエン8.6%◎4.2%○4.2%5.6%◎年平均成長率　3％以上ネンヘイキンセイチョウリツイジョウ

EBITDA　（※）1,710億円オクエン7.4%◎4.7%×3.0%5.0%×年平均成長率　6％以上ネンヘイキンセイチョウリツイジョウ

当期純利益トウキジュンリエキ572億円オクエン8.0%○11.9%◎8.5%9.5%◎年平均成長率　7％以上ネンヘイキンセイチョウリツイジョウ

営業利益率エイギョウリエキリツ6.9%6.9%×7.2%△7.3%-△8％以上イジョウ

配当性向ハイトウセイコウ22.8%31.7%○30.2%○29.4%30.5%○30％を目処メド

総還元性向ソウカンゲンセイコウ22.8%80.5%◎102.8%◎56.0%79.0%◎50％以上イジョウ

　※ＥＢＩＴＤＡ＝営業利益（のれん等償却前）＋減価償却費エイギョウリエキトウショウキャクマエゲンカショウキャクヒ

業績グラフ

計画ケイカク計画ケイカク

20122013201420152012201320142015

売上高ウリアゲダカ15,79117,14217,85518,600EPS金額キンガク122.8135.7148.9163.1

営業利益エイギョウリエキ1,0841,1751,2831,350ROE8.4%8.0%8.1%8.6%

当期純利益トウキジュンリエキ572617691750補正ROE ホセイ8.6%8.7%9.4%10.3%

業績グラフ

売上高

営業利益

当期純利益

業績推移

EPS金額

ROE

補正ROE

業績推移 (2)

計画ケイカク

2001200220032004200520062007200820092010201120122013201420152016201720182019202020212022202320242025

酒類事業シュルイジギョウ112191093811070111641054210310103071019698559633942494409486964610015

飲料事業インリョウジギョウ197017761894204022522499268329662969315232983754466247664949

食品事業ショクヒンジギョウ151148220223268557692817963100510011035108211201148

国際事業コクサイジギョウ1481421323345395715544337859789421580192923472597

その他タ845749687681699527405215153127(38)(18)(16)(24)(109)

業績推移 (2)

酒類事業

飲料事業

食品事業

国際事業

その他

エクストラコールド

計画ケイカク

200520062007200820092010201120122013201420152016201720182019202020212022202320242025

酒類事業シュルイジギョウ10542103101030710196985596339424944094869646100151011510216103181042210526106311073710845109531106341.1%

飲料事業インリョウジギョウ22522499268329662969315232983754466247664949509752505408557057375909608662696457665124.7%

食品事業ショクヒンジギョウ26855769281796310051001103510821120114812401339144715621687182219682126229624799.2%

国際事業コクサイジギョウ5395715544337859789421580192923472597285731433457380241834601506155676124673625.0%

その他タ699527405215153127(38)(18)(16)(24)(109)

26929

103.0%

108.0%

110.0%

0.0%


酒類事業

飲料事業

食品事業

国際事業

その他

CA

201020112012201320142015201６(E)

エクストラコールド6331,6562,8146,51610,00012,00014000

ドライプレミアム樽生タルナマ5,800

CA


機能性

2010201120122013201420152016(E)

　ビール11,60811,07811,09610,88810,82610,61010,850

　発泡酒1,8631,6481,5451,5571,6101,5801,350

　新ジャンルシン3,6443,8863,6753,8753,8853,9003,950

　売上数量合計バイジョウカズリョウゴウケイ17,11516,61116,31516,32016,32116,08016,150

スタイルフリー計ケイ1,1451,2031,1901,2391,2041,3301,280

クリアアサヒ計ケイ2,1432,4202,3772,8212,8643,1753,230

当社新ジャンル内構成比トウシャシンナイコウセイヒ58.8%62.3%64.7%72.8%73.7%81.4%81.8%

オフ717747747725650605630

機能性

クリアアサヒ計

当社新ジャンル内構成比

総合酒類

201120122013201420152016(E)

ビール41441

発泡酒ハッポウシュ3,5173,3403,2893,7914,0033,800

新ジャンルシン1,6231,9582,3062,1512,4892,586

アサヒ合計ゴウケイ2,5222,3702,3152,3622,5592,800

構成比コウセイヒ49.1%44.7%41.4%39.8%39.2%41.0%

機能性市場キノウセイシジョウ5,1405,2975,5955,9416,5336,827

ビール類内構成比ルイナイコウセイヒ11.8%12.2%13.0%14.1%15.6%16.5%

ビール類合計ルイゴウケイ43,64843,28942,95542,26041,90841,469

総合酒類

新ジャンル

発泡酒

ビール

ビール類内構成比

ノンアル

2007200820092010201120122013201420152016(E)

洋酒ヨウシュ273275259304308298378447579579

ワイン153148124115106115120144339417

低アルテイ357314306312282288274277283305

焼酎ショウチュウ549527503483403327316307288288

ノンアル他タ3232397048211224254293301

営業利益率エイギョウリエキリツ4%5%6%7%6%10%10%12%13%13%

合計ゴウケイ1364129712311284114712401312143017811890

その他タ111111

ノンアルコール46210223253292300

ノンアル

洋酒

ワイン

低アル

焼酎

ノンアル他

営業利益率

オセアニアコストダウン

2010201120122013201420152016(E)

ノンアル市場8411,1391,0851,0831,0121,0041,005

ドライゼロ13526503543631734750

当社構成比トウシャコウセイヒ13.9%2.2%31.7%33.4%38.4%42.2%42.7%

ノンアル市場シジョウ9761,1651,5881,6261,6431,7381,755

オセアニアコストダウン

ドライゼロ

ノンアル市場

当社構成比

(JPY billion)201620172018forecast2016-2018

3year forecast

CostReduction1.83.21.0Over 5.0

Global Beer Market Trend


25

0.0% +0.1% +2.5% +5.0%CAGR2007-2017 +0.8% +0.5% +0.2% +1.4% +5.0% +1.2%CAGR

2007-2017

Source : Canadean

CompositionComposition

9%

53%

21%

17%

15%

62%

15%

8%

◆ Premium and Super Premium Categories Account for approx. 30%of the Entire Beer Market, Driving the Total Market Growth

(Volume) (Value)

(million USD)(000KL)

(Total) (Total)

◆ Sales Promotion Expenses Trend in Asahi Breweries

◆ Progress of Earnings Structure Reform

Earnings Structure Reform andSales Promotion Expenses in Asahi Breweries


26

Note : Overseas does not include Europe business

Reduce cost of raw materials such as malt and auxiliary materials

Reduce package cost through facilitating group procurement

Reduce manufacturing cost by reviewing material procurement and manufacturing process

Improve operational efficiency through newly settlement of manufacturing lines

Reduce manufacturing cost by reviewing raw materials procurement

Facilitate joint procurement and logistic cost efficiency through business integration

Create synergies through SCM integration and optimization (Oceania business)

Reduce manufacturing cost by reviewing manufacturing process (Southeast Asia business)

Total 12.4 16.7 7.4 20.0~30.0

6.0~

3.5

Food 1.3

Overseas 4.0

3.4

1.0

1.6

4.1

0.8

2.8

(JPY billion) 2016Results

2017Results

Initiatives 2016-20183 year Target

2018Forecast

Alcohol Beverages 7.9

14.0~Soft Drinks

1.44.7

2015 2016 2017 YoY Inc/Dec2018

forecast YoY

74.1 79.1 76.7 -2.4 -0.6 76.0 -0.729.2 29.4 28.2 -1.2 -0.5 28.5 0.3

Total 103.4 108.5 104.9 -3.6 -1.1 104.5 -0.4

58.8 60.7 57.9 -2.7 -0.9 57.2 -0.73.1 2.6 2.0 -0.7 -0.1 1.9 -0.1

15.7 17.3 15.8 -1.5 0.2 15.2 -0.7 Beer-type total 77.6 80.6 75.7 -4.8 -0.8 74.2 -1.5

Other than Beer-type total 25.9 28.0 29.2 1.2 -0.3 30.3 1.1

New Genre

(JPY billion)

Sales promotion

Advertisement

Beer

Happoshu

Impact of Foreign Exchange Rate


27

◆ Exchange Rate Sensitivity of Key Currencies (2018)

2015 2016 2017 2018 forecast

◆ Key Currencies and the Company’sAverage Exchange Rates Trend

◆ Impact of Foreign Exchange Rates onStatement of Profit or Loss

(JPY billion)

(JPY billion)

Note1: The figures do not include the impact to amortization of intangible assetsNote2: Impact of forex rates means the impact of conversion of business results

in local currencies into the results in yen

Impact from forex fluctuations of 1 yen to target currency (full year)Currency Target Revenue Core OP Target business

Euro 128 yen ±3.4 ±0.6 EuropeAUD 86 yen ±2.1 ±0.2 Oceania

Information in this material is not intended to solicit sale or purchase of shares in Asahi Group Holdings. The views, estimates and other information expressed in this document are based on the company's judgment at the time of publication, and no guarantees are provided regarding the accuracy of such information. This information is subject to changewithout notice. The company and its officers and representatives accept no responsibility or liability for any damage or inconvenience that may be caused by or in conjunction with any part of these materials.

スライド番号 1スライド番号 2スライド番号 3スライド番号 4スライド番号 5スライド番号 6スライド番号 7スライド番号 8スライド番号 9スライド番号 10スライド番号 11スライド番号 12スライド番号 13スライド番号 14スライド番号 15スライド番号 16スライド番号 17スライド番号 18スライド番号 19スライド番号 20スライド番号 21スライド番号 22スライド番号 23スライド番号 24スライド番号 25スライド番号 26スライド番号 27スライド番号 28スライド番号 29スライド番号 30スライド番号 31

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