August 6, 2020
Asahi Group Holdings, Ltd.

Fiscal 2020 2Q Financial Results Conference Call
Date & Time: Thursday, 6th August, 2020
15:30-17:00 Japan Standard Time
Speakers: Akiyoshi Koji, President and Representative Director, CEOAtsushi Katsuki, Senior Managing Director, CFO◆ Overview of Financial Results for H1 2020 & Full Year Forecasts＜Financial Results Highlights (First-half Results and Full-year Forecast)＞• On this Financial Results Highlights slide, I am going to discuss revenue and core operating
profit on a constant currency basis, although currency has not had a significant impact
this year.
• In the first half, revenue and profit of all businesses including the Alcohol Beverages
Business declined due to the impact of the COVID-19 crisis with overall revenue declining
9.5% year on year and core operating profit decreasing 40.4% year on year.
• For the full year, revenue of the Overseas Business is expected to increase thanks to theconsolidation of the CUB business and the three domestic businesses are expected torecover to a certain extent. Nevertheless, we expect both total revenue and profit todecline for the full year, with total revenue forecast to fall 3.1% year on year and core
operating profit forecast to decrease 30.4% year on year.
＜Operating Profit and Profit for the Period＞• First-half operating profit declined 48.8% year on year, reflecting an increase in “other”
expenses due to the COVID-19-related costs in addition to core operating profit decline.
Regarding the full-year forecasts also, we are expecting operating profit to decline 38.4%
year on year owing to costs related to reorganization of the Oceania and Europe
businesses in addition to the COVID-19 -related costs.
• Profit attributable to owners of parent declined 50.9% year on year in the first half to 30.2
billion yen reflecting loss on sales of investments accounted for using the equity method
and other factors, which partially offset a decrease in income tax.

• We expect full-year profit attributable to owners of parent to decline 43.7% year on year
to 80.0 billion yen given the deterioration of net finance costs due to fund procurement
for the acquisition of CUB, and loss on sales of investments accounted for using the equity
method.
＜Alcohol Beverages Business (Revenue of Beer-type/Sales Volume by Brand)＞• In the first half, the overall market for beer-type beverages is presumed to have shrunkby 9% to 10% in total, reflecting a decline in beer sales due to sluggish on-premise sales.
• The ratio of on-premise beer among our products is high, and revenue from beer-type
products in the first half declined 17.3% year on year.
• For the full year, although we assume that on-premise products will recover to a certain
extent and we will move to strengthen marketing of main brands for the off-trade market,
we expect total revenue from beer-type beverages to decline 13.8% year on year.
＜Alcohol Beverages Business (Revenue)＞• Overall revenue of the Alcohol Beverages Business declined 16.0% year on year, as
revenues from beer-type beverages and categories other than RTDs decrease year on
year in the first half.
• Although we will work toward recovery in the second half, we expect total full-year
revenue of the Alcohol Beverages Business to decline 13.7% year on year.
＜Alcohol Beverages Business (Core OP)＞
• Among the factors that contributed positively or negatively to the business’s core
operating profit, we worked to streamline overall costs such as sales promotion expenses
and “other” expenses given the impact of the COVID-19 crisis, but the impact of thedecline in revenue of beer-type beverages was too significant. As a result, the core
operating profit of the Alcohol Beverages Business in the first half declined 23.4% year onyear.
• While we will work on further streamlining, we expect full-year core operating profit fromthe Alcohol Beverages Business to decline 23.9% year on year to 80.4 billion yen primarily
because of a decline in revenue from beer-type beverages.
＜Basic Policy for Alcohol Beverages Business＞• Issues still persist in the Alcohol Beverages Business. With regard to sales of on-premisebeer products, which is our strength, continue to contract due to the COVID-19 crisis andwe have not captured sufficient off-trade demand for new genre and RTD products.
• Our future policy for the Alcohol Beverages Business is to shift management resources inan agile and dynamic manner by focusing on changes in market environments andchannels to transform the business structure with the acceleration of Value-Focused
Management so that we can regain robustness.
• By channel, we will continue providing support to customers in the on-premise channeland simultaneously improve our own efficiency in response to the decline in demand. In
the off-trade market, we will further strengthen our marketing taking into accountincreasing health consciousness and the polarization trend in consumption.
• The graph at the bottom shows the combined market trends of beer-type beverages, RTDs,
and non-alcohol beer-taste beverages over the past decade. While new genre, RTDs, andnon-alcohol beer-taste beverages expanded, happoshu and beer have declined. The total
volume has, however, remained almost flat over the past 10 years, indicating that there
has been no extreme trend of people shifting away from alcohol.
• In anticipation of the liquor tax revisions to be implemented in October this year, we will
strive to stimulate demand to reverse the trend for beer’s market share and at the sametime focus on nurturing differentiated new genre and RTD brands taking into consideration
the expansion of diverse areas of off-trade demand.
＜Initiatives for Asahi Super Dry＞
• SCI household consumption data shows that Asahi Super Dry has been growing at a rate
exceeding the industry average even after the emergence of the COVID-19 crisis fromMarch onwards.
• Total sales have been declining due to decreases in on-premise demand and demand
related to holidays and celebrations, but Asahi Super Dry is maintaining its superiority inthe off-trade market. We will continue with acquisition of new users and integrated
marketing, and focus on vitalization of beer products using the liquor tax revisions as
additional leverage.
＜Initiatives for Products Other Than Beer＞• Asahi THE RICH, which was launched in March, is performing strongly and the sales
momentum of standard brands is recovering rapidly.
• The growth in the group of carbohydrate-free brands, demand for which is increasing amid
the COVID-19 crisis, has been capturing demand in the changing market and sales
expanded in the April through June period led by Style Free, which continues to win loyalusers.
• Further, in addition to widely capturing demand for RTDs and non-alcohol beer-taste
beverages, which both continue to grow, we will accelerate profit structure reforms, which
are already aimed at significantly exceeding targets, to restore the robustness of thedomestic Alcohol Beverages Business.
＜Soft Drinks Business (Sales Volume)＞• In the first half, sales volume of carbonated soft drinks was strong as the category
captured “stay-at-home” demand, but overall sales volume of the business declined 7.1%
year on year due to declines in sales volumes of coffee and lactic acid drinks.
• We expect carbonated soft drinks to continue to perform strongly in the second half, butoverall sales volume of the business for the full year is expected to decline 3.5% year on
year as vending machine demand continues to fall.
＜Soft Drinks Business (Core OP)＞
• Core operating profit of the Soft Drinks Business in the first half declined 41.5% year on
year, as sales volume declined and the channel mix deteriorated.
• We are assuming a certain level of recovery in the second half, but expect full-year revenue
for the business to decline 5.5% year on year and core operating profit to decline 21.8%
year on year.
＜Soft Drinks Business＞• This slide provides the results for carbonated soft drinks and future initiatives in thebusiness. Please examine the details later.
• Amid the COVID-19 crisis, the Soft Drinks Business has maintained momentum above theindustry average thanks to strong performance from brands like Wilkinson and Mitsuya.
At the same time, in addition to continuous channel mix deterioration due to sluggish
vending machine sales, we have not been able to achieve satisfying results with new value
proposals that are responsive to increased consumer health consciousness.
• We will continue to accelerate profit structure reform mainly in the production and logistics
sections in addition to marketing that is responsive to changes in demand and coordination
with e-commerce channels to minimize negative impacts and steadily boost our resiliencefrom the next term quarter onward.
＜Food Business (Revenue/Core OP)＞
• In the first half, while sales of freeze-dried foods increased due to “stay-at-home”
consumption, etc., revenue declined by 4.1% year on year due to a decline in sales of
products such as Mintia owing to falling office-related demand, and core operating profit
fell 8.9% year on year due to category mix deterioration and other factors.
• Full-year revenue is also expected to be down 3.4% year on year as a certain level ofdecline in sales of Mintia is likely to continue, while core operating profit is expecting tofall 20.4% year on year.
＜Food Business＞• This slide explains the future initiatives for the “new normal” etc. in the Food Business.
• The tendency to refrain from outings is expected to continue meaning a quick recovery inthe second half would be difficult, but we will work on unearthing new demand such asby promoting Mintia to “freshen up while wearing a mask” or to “freshen up while working
from home”.
• We are aiming for a recovery from the next quarter onwards by bolstering investment in
Dear-Natura and freeze-dried food taking into account the increase in health-related
demand and “stay-at-home” consumption..
＜Overseas Business (Core OP)＞
• Total core operating profit in the Overseas Business fell 38.8% in the first half on aconstant currency basis.
• To provide a breakdown, total profit in the Europe business decreased 29.2% year on year
as sales decreased due to the lockdown in various countries and channel mix deterioration.
• Although the CUB business has been a consolidated subsidiary since June, profit in theOceania business declined 43.8% year on year as on-premise sales of alcohol beverages
declined and product mix deteriorated in existing businesses.
• Profit in the Southeast Asia business also declined 75.1% year on year due to falling
revenue from stagnating consumption and rising raw material prices.
• Profits at Asahi International fell 93.2% year on year partly due to the impact of a decline
in revenue from the UK, where on-premise products have a higher share.
• As for the full-year forecast, though we are expecting a recovery in demand due to therelaxation of regulations in various countries, total profit is expected to be down 18.3%
year on year.
• To provide a breakdown, in the Europe business, although we are expecting a recovery insales and will continue with our review of all fixed costs, full-year profits are expected todecline 27.1% year on year.
• In the Oceania business, although the negative impact of decreased on-premise sales inthe existing alcohol beverages business will continue, we will aim for a 55.8% increase inprofit year on year on the back of the consolidation of the CUB business.
• Although we will work on improving the product mix in the Southeast Asia business byintroducing value-added and health-focused products, profits are expected to fall 39.1%
year on year due to a decrease in revenue and other factors.
• Although Asahi International is expecting a recovery in demand in countries such as theUK, where bars and restaurants started reopening from July, profits are expected to fall
61.0% year on year.
＜Oceania Business (Revenue and Core OP)＞
• We have provided a breakdown for existing business and the CUB business in our Oceania
business, and year on year results comparisons are provided as estimated figures for theCUB business in the table at the bottom for your reference.
＜Europe Business＞• This slide shows results and forecasts for the Europe Business on a Euro basis and thenext slide shows the monthly sales trends of the main European countries.
• In Europe a steady recovery trend is emerging with core premium brands and non-alcoholbeer-taste beverages growing in the off-trade market, although this falls short of entirely
offsetting the decline in on-premise products.
• In the second half, we are aiming to achieve an early recovery and boost our resilience bypromoting recovery measures in the on-premise market and promoting premiumizationin the off-trade market.
＜Reorganization of Europe Business＞• In January 2020, we reorganized the Europe Business, dividing its various roles between
the Europe Business and Asahi International, Ltd. We carried out a further developmental
review and decided to establish Asahi Europe and International by integrating the twocompanies in November.
• The move facilitates swift decision-making processes in the Europe Business and thebuilding of an integrated operational structure and we will accelerate the growth ofpremium brands and further generation of cost synergies through functional integration.
• Although we are facing the extremely harsh environment created by the COVID-19 crisis,
we will establish an optimal governance structure to bring about a powerful recovery of
the entire Overseas Business, which is our growth engine.
＜Financing Plan＞• We announced a partial revision of the plan in June, but we have not changed the policyof aiming to procure 300 billion yen in equity credit attributes, through a combination ofa public offering and subordinated bonds to facilitate the maintenance of current credit
ratings and a swift return to financial soundness.
• However, in light of the changes in stock markets and the fund procurement environment,
we plan to raise the upper limit of the planned fund procurement from subordinated bonds

from 200 billion yen to 300 billion yen, and have set up a subordinated commitment
syndicated loan facility in case we cannot carry out a public offering as planned.
• Going forward, we plan to implement the financing plan with appropriate timing andbalance to both minimize dilution and secure financial soundness. We would appreciate
your understanding and cooperation.
• The remaining slides are about the formulation of our sustainability policy, which is more
firmly embedded in business strategy, renovation of material issues and our global social
support activities. Please refer to these slides at your leisure.