Asahi Group Holdings, Ltd.
Q3 2023 Financial Results Briefing: Summary of Conference Call (2)Date: Friday, November 10, 2023, 18:00-19:00
Presenter: Kaoru Sakita, Director EVP and CFO◆ Results Highlights (Revenue/Core Operating Profit) （P3）
• Total revenue in the nine months through September 2023 rose 6.1% year on year
to JPY 2.0230 trillion, with revenue increasing across all businesses as successful
price revisions and our continued premiumization strategy led to an improvementin unit sales prices.
• Core operating profit expanded by 8.6% year on year to JPY 199.6 billion. While
profit from Europe declined slightly, higher profits from our Japan and Otheroperations helped boost overall core operating profit.
• While we do not disclose specific quarterly earnings forecasts, core operating profit
is tracking above our internal plan. While profit fell slightly short of plan in Europe,
profit from Japan and the Other category, which includes South Korea with its
typically strong “Asahi Super Dry” sales, both exceeded plan.
• If we include the currency translation impact, revenue expanded by 9.4% year onyear and core operating profit rose 12.9% year on year. The foreign exchange
impact on each business is detailed on the pages 12 and 13, so please take a lookat those later.
◆Operating Profit/Profit Attributable to Owners of Parent（P4）• Our operating profit and other figures incorporate the foreign exchange impact.
Operating profit increased by 15.8% year on year to JPY 189.4 billion, mainly due
to the absence of any impairment losses associated with supply chain management(SCM) reorganization in Japan this year compared to the previous year when suchlosses were recorded.
• Profit attributable to owners of the parent expanded by 16.2% year on year mainly
thanks to that increase in operating profit. Adjusted profit, excluding impairment
loss and other items, increased 7.1% year on year. Both measures are tracking

above plan.
◆Japan（P5）• Revenue in the nine-month period from January to September increased 3.8% year
on year thanks primarily to the recovery in the on-premise market in the Alcohol
Beverages Business as well as the impact of price revisions in each business. That
overall result was slightly above plan.
• Core operating profit increased by 18.1% year on year as the higher revenue
generated significant profit growth in the Alcohol Beverages Business and NonAlcohol Beverages Business.
• Core operating profit progressed according to plan in the Food Business but camein above plan in the Alcohol Beverages Business and Non-Alcohol Beverages
Business. As a result, overall core operating profit is tracking above plan.
◆Japan (Alcohol Beverages: Revenue/Sales Volume)（P6）• In the nine-month period from January through September, the volume of beertype beverages sales increased by a slightly higher-than-planned 0.8% year on year
thanks to successful price revisions and a recovery in the on-premise market. That
was despite a comparative decline in sales volumes in the off-premise market
compared to the spike in demand in the previous year.
• In the other than beer-type beverage category, revenue rose across all categories,
particularly whiskey and spirits, wine, and shochu, thanks primarily to therecovery in the on-premise market. As are result, total revenue is tracking slightly
above plan.
◆Japan (Alcohol Beverages: Breakdown in Changes in Profit)（P7）• Core operating profit rose 21.8% year on year. In terms of the main factors at play here,
raw materials and other various costs increased and other expenses also increased.
Meanwhile, revenue primarily from beer sales increased and the efficiency ofadvertising and sales promotion spend improved.

• Core operating profit is tracking slightly above plan. Individual costs performedroughly to plan, but the increase in revenue outweighed any increase in costs.

• While we need to be mindful of the impact of the October liquor tax revision andprice revisions, we do not expect the broad recovery in the beer market to change
anytime soon.
• In the fourth quarter from October to December, we will strengthen brandinvestment ahead of the upcoming business year with a particular focus on our“Asahi Super Dry” range (including “Dry Crystal”), while also seeking to steadily
achieve our annual plans.
◆Japan (Non-Alcohol Beverages: Revenue/Sales Volume) （P8）• Despite reduced volumes of lactic acid drinks and coffee sales in the nine months
through September, sales volumes in the carbonated drinks and other drinks
categories increased, resulting in a 0.6% year-on-year increase in total sales
volume for Non-Alcohol Beverages to 200.62 million cases.
• Revenue increased by 4.5% year on year (slightly above plan) as weather and otherfactors generated higher-than-expected volumes during peak periods and unit sales
prices improved significantly.

• Revenue increased by 9.5% year on year if we exclude the impact of changes to theclassification of vending machine business activities brought about by the businessalliance formed with DyDo DRINCO, INC. in January this year.

◆Japan (Non-Alcohol Beverages: Breakdown in Changes in Profit)（P9）• Core operating profit increased by 13.2% year on year. While variable costs suchas sugar, PET resin and other items increased significantly, revenue was boosted
by higher sales volumes and successful price revisions.
• Core operating profit came in slightly above plan on the back of that larger-thanexpected increase in revenue as well as restricted increases in variable costs, more
efficient overall fixed costs and other factors.

• In the fourth quarter, we will strengthen investment to help fuel a recovery in sales
momentum on our mainstay brands, while also aiming to surpass our planned
performance for the year as a whole.

◆Europe（P10）• In the nine-month period from January to September, total sales volume declined
by 3.9% year on year due to the impact of ongoing inflation and deteriorating
weather conditions during peak times.
• Total revenue increased 8.6% year on year, with price revisions in each market andcontinued progress on our premiumization strategy helping to generate a 15.6%
increase in unit sales prices.
• Core operating profit contracted by 0.2% year on year following an increase invariable costs as well as higher labor costs and marketing spend.
• In terms of consumption trends, while some areas have suffered the negative
impacts of inflation, we have not noted any significant change in the consumption
trend from the first half of the year. Furthermore, our competitive advantage isexpanding, as illustrated by our steadily growing share of the off-premise market
in countries such as the Czech Republic, Poland and Romania.
• We intend to expand branding investment, especially in the premium category, tohelp capture demand as consumer sentiment recovers going forward.
◆Oceania（P11）• In the nine-month period from January to September, overall revenue increasedby 7.7% year on year thanks to sales volume growth centered around mainstay
brands, successful price revisions and other factors.
• Core operating profit expanded by 0.5% year on year despite significant increases
in variable costs, thanks to the higher revenue generated by improvements in ourmix of products and outlet channels.
• Both revenue and core operating profit came in broadly in line with plan.
• Looking ahead, while we need to prepare for the risk of a slowdown in the beer andoverall drinks market caused by a deteriorating macroeconomic environment, wewill aim to achieve our annual plan by leveraging our competitive advantage toenhance revenue growth management and pursuing reforms to create new
earnings structures.