Q3 2020 Financial Results Digest

November 2020

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

Q3 2020 Financial Results Highlights (constant currency basis)◆ The core OP is above the forecast in all businesses, despite the YoY decline in revenue and profits due to the spreadof COVID-19.
• Alcohol：YoY decline in revenue and profits due to the sales decrease mainly in the on-premise channel, despite
promoting sales for the off-premise channel and improving efficiency in overall costs.

• Soft Drinks ：YoY decline in revenue and profits due to weak vending machine sales and the worsening mix, despite promoting
control of advertising and other fixed costs.
• Food：YoY decline in revenue and profits due to the sales decrease of Mintia brand, despite the promoting control of overall
fixed costs and sales to capture the staying-at-home demand.

• Overseas： YoY increase in revenue due to the consolidation of CUB business, and yet YoY decline in profits due to the sales
decrease in the on-premise market and worsening mix.

◆ The annual forecast is expected to be overachieved in the whole group, despite the risk of re-expansion of COVID-19.
<Revenue and Core operating profit>*constant currency basis (based on previous year's FX rates)(JPY billion)

2020 Q3 (9 months ended September 30)

2020 forecast (announced on August 5)

YoY (Amount / %)YoY (Amount / %)Alcohol Beverages Business

555.4- 101.6- 15.5%765.6- 121.2- 13.7%

Soft Drinks Business

270.4- 13.9- 4.9%

356.0- 20.9- 5.5%

Food Business

89.9

- 4.6

- 4.8%

124.6

- 4.4

- 3.4%

Overseas Business

569.6

50.8

9.8%

781.0

82.5

11.8%

Other Business

69.4

- 2.9

- 4.0%

92.9

- 4.5

- 4.6%- 71.6

4.7-- 96.03.6-

1,483.1- 67.4- 4.3%

2,024.1- 64.9- 3.1%

Alcohol Beverages Business

59.9- 18.1- 23.2%80.4- 25.2- 23.9%

Soft Drinks Business

24.2

- 1.7

- 6.7%

26.2

- 7.3

- 21.8%

Food Business

8.5

- 1.4

- 14.2%

10.9

- 2.8

- 20.4%

Overseas Business

70.4

- 9.1

- 11.4%83.6- 18.7- 18.3%Adjustmenet (corporate and elimination)
Revenue

0.8

- 0.2

- 20.7%

0.2

- 1.1

- 86.2%Adjustmenet (corporate and elimination)- 16.3- 0.2-- 24.0- 1.9-

Amortization of acquisition-related intangible assets- 15.8- 0.4-- 29.0

- 7.8

-

131.7

- 31.1- 19.1%148.2- 64.8- 30.4%

Other BusinessCore operating profit

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

1

Financial Results Highlights (actual currency basis)＜Revenue and Core operating profit （actual currency basis）＞(JPY billion)

2020 Q3 (9 months ended September 30)

2020 forecast (announced on August 5)

YoY (Amount / %)YoY (Amount / %)Alcohol Beverages Business

555.4- 101.6- 15.5%765.6- 121.2- 13.7%

Soft Drinks Business

270.4- 13.9- 4.9%

356.0- 20.9- 5.5%

Food Business

89.9

- 4.6

- 4.8%

124.6

- 4.4

- 3.4%

Overseas Business

557.9

39.1

7.5%

763.9

65.3

9.4%

Other Business

69.4

- 2.9

- 4.0%

92.9

- 4.5

- 4.6%- 71.6

4.7-- 96.03.6-

1,471.4- 79.1- 5.1%

2,007.0- 82.0- 3.9%

Alcohol Beverages Business

59.9- 18.1- 23.2%80.4- 25.2- 23.9%

Soft Drinks Business

24.2

- 1.7

- 6.7%

26.2

- 7.3

- 21.8%

Food Business

8.5

- 1.4

- 14.2%

10.9

- 2.8

- 20.4%

Overseas Business

69.4- 10.0- 12.6%82.0- 20.2- 19.8%Other Business

0.8

- 0.2

- 20.7%

0.2

- 1.1

- 86.2%Adjustmenet (corporate and elimination)- 16.3- 0.2-- 24.0- 1.9-

Amortization of acquisition-related intangible assets- 15.6- 0.2-- 28.7- 7.5-Core operating profit

130.9- 31.9- 19.6%147.0- 66.0- 31.0%Operating profit

118.0- 41.8- 26.2%124.0- 77.4- 38.4%

Profit attributable to owners of parent

79.6- 33.3- 29.5%80.0- 62.2- 43.7%

Adjustmenet (corporate and elimination)
Revenue【Revenue】• -5.1% YoY decline in the total due to the YoY decline of the three domestic businesses, despite YoY increase of the overseas
business due to the consolidation of CUB business since June 2020.
• The total progress is above the annual forecast, mainly due to excess achievement of the overseas business.
【Core OP】
• YoY decline with -19.6% in the total due to the worsening mix and the sales decrease in the on-premise channel, despite theconsolidation of CUB business.
• The total progress is above the annual forecast, mainly due to excess achievement of the Overseas business and the Soft Drinkbusiness.

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

2

Operating Profit/Profit attributable to owners of parent(JPY billion)
2020 Q3 (9 months ended September 30)

2020 forecast (announced on August 5)

YoY (Amount / %)YoY (Amount / %)1,471.4- 79.1- 5.1%

2,007.0- 82.0- 3.9%

Core operating profit

130.9- 31.9- 19.6%147.0- 66.0- 31.0%Adjustment item

- 12.9- 9.9-- 23.0- 11.5

-

2.6

3.9

-

0.9

4.8

-

- 3.0

- 1.8

-

- 2.1

3.3

-

-

-

-

-

0.1

-

Others- 12.5- 12.0-- 21.8- 19.6-

Operating profit

118.0- 41.8- 26.2%124.0- 77.4- 38.4%

- 4.2

- 1.7

-

- 8.2

- 3.9

-

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

0.3

- 0.4

- 59.4%

0.0

- 0.9

- 98.8%Gain (loss) on sales of investments accounted forusing equity method

- 2.3

- 2.3

-

- 2.3

- 2.3

-

Others

- 1.2

- 0.8

-

- 1.5

- 0.9

-

110.6

- 47.0- 29.8%112.0- 85.4- 43.3%- 31.1

13.6-- 32.5

23.6-

Profit79.5- 33.4- 29.6%79.5- 61.8- 43.7%

Profit attributable to owners of parent

79.6- 33.3- 29.5%80.0- 62.2- 43.7%

Profit attributable to non-controlling interests

- 0.1

- 0.1

-

- 0.5

0.4

-

Revenue

Gain (loss) on sales and retirement of
non current assets
Business integration expenses
Impairment loss

Finance income or loss

Profit before tax
Income tax expense【Operating Profit】• -26.2% YoY decline due to decrease of the core OP and the increase of expenses such as “Others” including temporary COVID-19
related expenses.
【Profit attributable to owners of parent】• -29.5% YoY decline due to the losses on sales of investments accounted for using equity method, despite the decrease of income
tax expenses.
• The total progress is above the annual forecast, mainly due to excess achievement of the core OP.
Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

3

COVID-19 Impacts (by Region)◆Monthly Beer Sales in the Key Businesses
30%

20%

【Domestic Alcohol Business】【European Business】*Beer-type beverages value basis*Volume basis【Australian Existing Business
and CUB】 *Volume basis

Jan. Feb. Mar. Apr. May Jun. Jul. Aug.Sep.

Jan. Feb. Mar. Apr. May Jun. Jul. Aug.Sep.

Jan. Feb. Mar. Apr. May Jun. Jul. Aug.Sep.

10%

0%

-10%

-20%

-30%

-40%
・ Since March, sales had been sluggish due to-50% the declaration of a state of emergency.

・ Lockdowns resulted in sluggish on-trade sales
since March.

・ After the end of the declaration in May, salesof on-premise market are recovering.

・ Improvements began slowly in May, as the ontrade channel re-opened and restrictions were
gradually lifted across most European markets.

・ Due to the re-spreading of COVID-19, sinceAugust, the Tokyo Metropolitan Government
asked restaurants to refrain from late night
operations.

・ In August-Sept, year-on-year sales increased as
Covid related restrictions were removed acrossmost European markets, supported by goodsummer weather.

・ The above request was lifted on September
15, and the "Go To Campaign" was launchedin October, showing signs of recovery for onpremise market.

(October and Q4 sales are expected to decrease
driven by new restrictions impacting the closureof the on-trade, along with lockdowns reimplemented across Europe due to a recent
resurgence in the numbers of Covid cases.)

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

・ Sales volumes decreased significantly in
April due to the lockdown.

・ Since May, the lockdown has been lifted,
and the decline rate of sales volumes has
been contracting.
・ From July onwards, in addition to the
expansion of off-premise market, onpremise market began to recover as a resultof deregulation in each state except Victoria.
(Restrictions in Victoria have alreadyentered a phase of relaxation.)

4

COVID-19 Impacts (Soft Drinks and Food)【Soft Drinks Business】 *Volume basis

・ Overall sales volume has recovered, mainly in vending machines andconvenience stores through the summer peak season.
(Vending machines) Apr.: -32% → Sep.: -10% (Approx.)(Convenience store) Apr.: -13% → Sep.: -4% (Approx.)【Food Business】 *Value basis

・ Gradual recovery for Mintia and growth in brands for the consumption
from staying at home
(Mintia) Apr.: -48% → Sep.: -32% (Approx.)(Freeze-dried miso soup) Apr.: +15% → Sep.: +6% (Approx.)◆ Regulatory status with re-spreading of COVID-19 in major countries (As of Nov. 2)
Regulatory StatusJapan

The Tokyo Metropolitan Government had requested restaurants to close by 10 p.m. since Aug. 3, but the request
was lifted on Sept. 15.

Czech

Restaurants and pubs will not be open from Oct. 14 to Nov. 20. (Take-away is available)

PolandRestricted restaurant hours from Oct. 17 and shut down restaurants for two weeks from Oct. 24

Italy

Restricted restaurant hours from Oct. 13

UKPartial restrictions during Oct, with lockdown implemented from Nov. 5 until Dec. 2. (Pubs and restaurants closed,
take-away available)

Australia

Melbourne metropolitan area deregulation to allow restaurants to operate from Oct. 28

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

5

Alcohol Beverages Business(Revenue of Beer-typed/Sales Volume by Brands)<Sales Volume by Brands>(Millions of cases)

2020 Q3 (9 months ended September 30)<Market Trend>2020 forecast (announced on August 5)

YoY (Amount / %)(Volume basis)

Q3 YoY

Full-year
Est. YoY

Beer-25～26％-23～24％

YoY (Amount / %)Super Dry

46.02

- 15.17- 24.8%66.40- 17.15- 20.5%

Style Free

8.61

0.34

4.2%

11.40

0.32

2.9%

Happoshu-2～3％

Approx. -3％

Clear Asahi

13.71- 0.38- 2.7%

17.90- 0.94- 5.0%New Genre

＋7～8％

＋6～7％

Total

-9～10％-8～9％※ Super Dry by container type (glass bottle -44%, can -9%, keg -39%)＜Revenue of Beer-type beverages＞(JPY billion)

2020 Q3 (9 months ended September 30)

2020 forecast (announced on August 5)

YoY (Amount / %)Beer-typebeverages total

410.4- 80.5- 16.4%

YoY (Amount / %)574.0

- 92.0- 13.8%【Market Total】• YoY contraction by -9 to -10% in the volume due to the slump in the on-premise market and the scale reduction of traditional events
during the summer season, despite increased consumption in the off-premise market and tentative demand in September for the New
Genre before the liquor tax change on October 1.
【Revenue/Sales Volume by Brands】• YoY decline with -16.4% due to the decrease of beer in the on-premise market, despite the strong sales of Happoshu and New Genre.
＜Asahi Super Dry＞ YoY decline with -24.8% due to the decrease in the on-premise market and the scale reduction of traditional
events, despite strengthening sales promotion for the off-premise market.

•＜Style Free＞

YoY increase with 4.2% due to the effective promotion to meet the growing health consciousness.

＜Clear Asahi＞

YoY decline with -2.7% due to the decrease in the on-premise market and competitive new products, despite
strengthening sales promotion linked to meals.

＜The Rich＞

Total shipments reached 6.24 million cases, and the annual sales target was revised up again to 9.5 million
cases, which is 2.4 times higher than the original one.

The total progress is below the annual forecast due to the unachieved sales in Beer and New Genre, despite excess achievement ofsales in Happoshu.

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

6

Alcohol Beverages Business (Revenue)<Revenue>(JPY billion)
2020 Q3 (9 months ended September 30)

2020 forecast (announced on August 5)

YoY (Amount / %)Asahi Breweries Revenue

546.9- 93.0- 14.5%754.3- 109.1- 12.6%

8.5

- 8.7

- 50.5%

11.3- 12.2- 51.9%555.4- 101.6- 15.5%765.6- 121.2- 13.7%

Other/elimination in segment
Revenue total

YoY (Amount / %)<Reference: Revenue by category (before rebate deduction)>
Whiskey and spirits

37.7

- 4.9

- 11.4%

51.8

- 6.3

- 10.9%RTD low-alcohol beverages

35.1

0.8

2.4%

47.0

1.6

3.4%

Wine

26.8

- 2.3

- 8.0%

37.7

- 4.4

- 10.4%Shochu

17.0

- 2.2

- 11.5%

22.9

- 3.5

- 13.4%Non-alcohol beverages

23.7

- 1.1

- 4.5%

31.7

- 1.4

- 4.3%【Revenue of Other Alcohol Beverages】• YoY decline in total due to the sales decrease in each category in the on-premise market, despite the sales increase of RTD bystrengthening “Zeitakushibori” brand.
• -4.5% YoY decline in Non-alcohol beverages due to the sales decrease in the on-premise market and backlash from new productsin the previous year.
•

The total progress is above the annual forecast, mainly due to the increased sales in the off-premise market in each category
beyond expectations.

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

7

Alcohol Beverages Business (Core OP)<Core Operating Profit>(JPY billion)
2020 Q3 (9 months ended September 30)

2020 forecast (announced on August 5)

YoY (Amount / %)YoY (Amount / %)Change in sales, category and container mix-- 31.0-- 34.5

Cost reduction in manufacturing

-

1.7

-

2.2

Cost increase in manufacturing

-

- 2.4

-

- 2.5

Advertisement and Sales promotion expenses

-

7.1

-

6.5

Other expenses

-

8.6

-

6.5

Asahi Breweries

61.9- 16.0- 20.6%83.1- 21.8- 20.8%Other/elimination in segment

- 1.9

- 2.1

-

- 2.7

- 3.3

-

59.9

- 18.1- 23.2%80.4- 25.2- 23.9%Core Operating Profit【Factors Contributing to Increase/Decrease】（JPY billion）• -23.2% YoY decline in total due to the sales decrease of Beer-type beverages, despite improved the efficiency of other expenses suchas advertising and promotional ones.
• The total progress is above the annual forecast mainly due to controlling advertising and promotional expenses, though the impact ofchanges in sales was larger than planned.

＜Breakdown of main factors＞• Change in sales and others：-31.0(Sales decrease in beer-type -27.8, Sales decrease in other alcohol beverages -4.8, Change in category and container mix, and others）• Cost reduction in manufacturing: +1.7 (Raw materials +0.3, Utilities+0.3, Transportation +0.4, etc. )• Cost increase in manufacturing: -2.4 (Raw materials -0.3, In other than beer -0.6, Transportation -0.7, etc.)• Decrease in sales promotion expenses：＋7.1（Advertisement ＋2.6, Promotion ＋4.4）（Beer-type +2.6, Other +4.5）• Other expenses：＋8.6（HR +0.4, Depreciation ＋0.4, Equipment for selling +1.2, Others +6.6）

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

8

Soft Drinks Business (Sales Volume)<Sales Volume>(Millions of cases)
2020 Q3 (9 months ended September 30)<Market Trend>2020 forecast (announced on August 5)

YoY (Amount / %)Jan. - Sep.

YoY (Amount / %)YoY

Carbonated drinks

61.80

4.98

8.8%

78.71

5.73

7.9%

-4～5％

Lactic acid drinks

34.38- 3.44- 9.1%

45.00- 3.88- 7.9%-10～11％

Coffee25.73- 3.83- 12.9%36.08- 5.06- 12.3%-10～11％

Tea

27.19

- 3.33- 10.9%36.75- 3.21- 8.0%-6～7％

Mineral Water

12.95- 2.23- 14.7%17.88- 2.04- 10.3%-1～2％

Fruit juice

10.66- 3.59- 25.2%15.43- 3.80- 19.7%-9～10％

Other drinks

19.00

2.12

12.6%

25.96

2.91

12.6%

-

Sales Volume191.71- 9.31- 4.6%

255.80- 9.34- 3.5%-6～7％<Sales Volume by Brands>
2020 Q3 (9 months ended September 30)
YoY (Amount / %)<By container type><By channel>

Jan. - Sep.

YoY

Jan. - Sep.

YoY

Can

- 4.1%

Vending machine- 15.0%

MITSUYA CIDER

32.74

1.46

4.7%

PET total- 3.2%CVS

0.0%

WILKINSON

22.85

2.60

12.8%

Large PET

- 4.9%SM

3.0%

CALPIS29.67- 2.73- 8.4%

Small PET

- 2.3%

Others

WONDA

24.29

- 4.04- 14.3%

Glass bottle- 38.3%Asahi Juroku-cha

16.88- 0.68- 3.9%

Others- 15.0%OISHII MIZU

12.95

- 2.23- 14.7%- 17.0%【Market Total】• -6 to -7% YoY decline in total volume mainly due to the sales decrease in vending machines, despite sales expanding insupermarkets caused by consumption from staying at home demand.
【Asahi Soft Drinks Sales Volume】• -4.6% YoY decline due to the sales decrease of Coffee and Fruit juice drinks, despite the sales increase in Carbonated drinks.
• The total progress is below the annual forecast mainly due to the negative impacts of the sales decrease in Fruit juice and Mineral
Water drinks, despite the sales increase in Carbonated drinks.
Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

9

Soft Drinks Business (Core OP)<Core Operating Profit>(Millions of cases / JPY billion)
2020 Q3 (9 months ended September 30)

2020 forecast (announced on August 5)

YoY (Amount / %)YoY (Amount / %)Sales Volume Total

191.71- 9.31- 4.6%

255.80△ 9.34- 3.5%

Revenue Total

270.4- 13.9- 4.9%

356.0- 20.9- 5.5%

Change in sales, category and container mix

-

- 5.3

-

- 10.2

Cost reduction in manufacturing

-

3.7

-

5.1

Cost increase in manufacturing

-

- 0.5

-

- 0.9

Advertisement and Sales promotion expenses

-

1.5

-

0.9

Other expenses

-

- 1.1

-

- 2.2

Asahi Soft Drinks

24.2

- 1.7

- 6.7%

26.2

- 7.3

- 21.8%

-

-

-

-

- 1.7

- 6.7%- 7.3- 21.8%Other/elimination in segment
Core Operating Profit

24.2

26.2

【Factors Contributing to Increase/Decrease】（JPY billion）• -6.7% YoY decline in total mainly due to the sales decrease, despite cost reduction measures of variable costs, including
improvement in capacity utilization and control of advertising and promotional expenses.
• The total progress is above the annual forecast mainly due to the recovery in sales volume and mix with controlling advertisingand promotional expenses.
•
•
•
•
•

＜Breakdown of main factors＞
Change in sales and others：-5.3（Sales volume decrease -3.9, Change in category and container mix, and others）
Cost reduction in manufacturing: +3.7
（Raw materials +0.2, Packages +2.0, Operational efficiency/in-house production +1.5, etc. ）Cost increase in manufacturing: -0.5, (Raw materials -0.2, Packages -0.3, etc.)
Change in sales promotion expenses：+1.5（Advertisement +0.8, Promotion +0.7 ）Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

10

Food Business (Revenue/Core OP)<Revenue>(JPY billion)
2020 Q3 (9 months ended September 30)

2020 forecast (announced on August 5)

YoY (Amount / %)YoY (Amount / %)Asahi Group Foods

81.7

- 4.0

- 4.6%

113.3

- 4.4

- 3.7%

Other / elimination

8.2

- 0.6

- 6.8%

11.3

0.0

0.0%

89.9

- 4.6

- 4.8%

124.6

- 4.4

- 3.4%

Revenue<Core Operating Profit>(JPY billion)
2020 Q3 (9 months ended September 30)

2020 forecast (announced on August 5)

YoY (Amount / %)YoY (Amount / %)Asahi Group Foods

7.8

- 2.0

- 20.1%

9.9

- 2.6

- 20.7%

Other / elimination

0.7

0.6

374.8%

1.0- 0.2- 17.5%

Core Operating Profit

8.5

- 1.4

- 14.2%

10.9

- 2.8

- 20.4%【Revenue】
・ -4.8% YoY decline mainly due to the sales decrease of Mintia brand, despite the sales increase of freeze-dried foods caused byconsumption from staying at home.
・ Total progress is on track to the annual forecast due to strong sales of Dianatura, which offset the sales decline of Mintia.
【Core OP】
・ -14.2% YoY decline due to the sales decrease and the worsening product mix, despite promoting to control overall fixed costs
such as advertisement and sales promotion expenses.
・ Total progress is above the annual forecast by controlling fixed costs.

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

11

Overseas Business (Revenue)<Revenue>(JPY billion)
2020 forecast (announced on August 5)

2020 Q3 (9 months ended September 30)

YoY (Amount / %)YoY (Amount / %)Europe business

277.9- 29.0- 9.5%

342.7- 45.6- 11.7%

Oceania business

201.2

87.3

76.6%

309.4

130.5

73.0%

Southeast Asia business

32.8

- 1.4

- 4.1%

41.7

- 3.1

- 7.0%

Asahi International

60.0- 12.4- 17.1%85.9- 18.4- 17.6%

Other / elimination△ 14.1- 5.4-- 15.8

1.9

-

557.9

39.1

7.5%

763.9

65.3

9.4%

Revenue<Revenue *constant currency basis (based on previous year's FX rates)>(JPY billion)
2020 forecast (announced on August 5)

2020 Q3 (9 months ended September 30)

YoY (Amount / %)YoY (Amount / %)Europe business

281.7- 25.1- 8.2%

348.5- 39.8- 10.2%

Oceania business

207.0

93.0

81.6%

317.2

138.3

77.3%

Southeast Asia business

33.9

- 0.3

- 1.0%

43.6

- 1.2

- 2.7%

Asahi International

60.9- 11.5- 15.9%87.4- 16.9- 16.2%Other / elimination△ 14.0- 5.3-- 15.7

2.0

-

569.6

50.8

9.8%

781.0

82.5

11.8%

Revenue※

For the CUB business, described the result and the forecast from June 1st to December 31st.

【Revenue (constant currency basis)】• Europe: -8.2% YoY decline due to the sales decrease in the on-premise channel despite the solid sales volume in the off-premise channel.
• Oceania：+81.6% YoY growth driven by the consolidation of the CUB business and the sales increase of alcohol beverages andcarbonated drinks in the off-premise channel.
• Southeast Asia：-1.0% YoY decline due to the sales decrease of beverages except for dairy products in Malaysia.
• Asahi International：-15.9% YoY decline due to the lower sales volume mainly in UK and Asia despite higher sales in EMEA&LATAM.
•

Total progress is above the annual forecast mainly due to the excess achievement of Oceania business and Europe businesses.

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

12

Overseas Business (Core OP)<Core OP>(JPY billion)
2020 Q3 (9 months ended September 30)

2020 forecast (announced on August 5)

YoY (Amount / %)YoY (Amount / %)Europe business

51.4- 13.9- 21.3%55.7- 22.0- 28.3%

Oceania business

16.3

10.1

161.8%

23.2

8.0

52.4%

Southeast Asia business

1.2

- 0.5

- 27.0%

1.3

- 0.9

- 41.7%

Asahi International

1.5

- 4.9

- 76.1%

2.7

- 4.4

- 61.7%

Other / elimination

- 1.0

- 0.8

-

- 0.9

- 1.0

-

69.4

- 10.0- 12.6%82.0- 20.2- 19.8%

Revenue<Core OP *constant currency basis (based on previous year's FX rates)>(JPY billion)

2020 Q3 (9 months ended September 30)

2020 forecast (announced on August 5)

YoY (Amount / %)52.1

- 13.2- 20.2%56.7- 21.1- 27.1%

Oceania business

16.5

10.3

165.6%

23.7

8.5

55.8%

Southeast Asia business

1.3

- 0.4

- 25.9%

1.3

- 0.8

- 39.1%

Asahi International

1.6

- 4.9

- 75.8%

2.8

- 4.3

- 61.0%

Other / elimination

- 1.0

- 0.9

-

- 0.9

- 1.0

-

70.4

- 9.1

- 11.4%83.6- 18.7- 18.3%

Revenue※

YoY (Amount / %)Europe business

For the CUB business, described the result and the forecast from June 1st to December 31st.

【Core Operating Profit (constant currency basis)】• Europe: -20.2% YoY decline due to the on-premise sales decrease and a deteriorated mix despite the premiumization in the off-premise channel.
• Oceania：+165.6% YoY growth driven by the consolidation of the CUB business while the worsening mix in the existing business by the onpremise sales decrease.
• Southeast Asia：-25.9% YoY decline due to the sales decrease, the worsening mix and rising prices of raw materials.
• Asahi International： -75.8% YoY decline due to the sales decrease in on-premise channel and the worsening mix mainly in the UK and Asia.
•

The progress is above the annual forecast due to the excess achievement by each of the businesses mainly in Europe and Oceania.

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

13

Europe Business & AIL Business◆ Europe Business<Results for Jan. to Sep. and Annual Forecast (constant currency basis)>khl、million EuroQ3
(9 months ended
September 30)

2020
RevisedTarget

YoY*2

YoY*3

Sales Volume

31,714-6%

39,831-6%

Net Sales (exc liquor tax)

1,897

-7%

2,382

-8%

425

-18%

465

-25%

Core OP*1*1 Core OP before deduction of one-off cost

*2 Comparison in FX rate of Q3 (9 months) 2019

*3 Comparison in FX rate of 2019

◆ Asahi International Ltd<Results for Jan. to Sep. and Annual Forecast (constant currency basis)>khl、million EuroQ3
(9 months ended
September 30)

2020
RevisedTarget

YoY*2

YoY*3

3,134

-7%

4,283

-4%

Net Sales (exc liquor tax)

369

-15%

517

-17%

Core OP*1

13

-76%

23

-64%

Sales Volume*1 Core OP before deduction of one-off cost

*2 Comparison in FX rate of Q3 (9 months) 2019

*3 Comparison in FX rate of 2019

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

14

Reference: COVID-19 Impacts (Europe)【Czech】 *Volume basis On-premise ratio: mid-double digit【Poland】 *Volume basis On-premise ratio: mid single digit

・ On-trade: Moderate increase over summer period as restrictions were lifted,
however expected to decline in October due to the new lockdown.

・On-trade: Small channel with adverse impact due to restrictions earlier in theyear. Outlets reopened in late May, closed again in mid-Oct.

・Off-trade: Steady demand, although slowing down with new restrictions.

・Off-trade: Year-on-year decline due to cycling good weather in prior year. Sept
impacted by phasing.

・Total Business: Strong performance in Q3, however expected to decline in
October due to the lockdown.

【Italy】 *Volume basis On-premise ratio: mid-double digit

・Total Business: Solid demand but new restrictions expected to impact Oct.

【UK】 *Volume basis On-premise ratio: mid-double digit*Including the effect from the acquisition of Fuller’s from Apr 2019

・On-trade: Improvements from mid-May as restrictions lifted, but expected
decline in Oct due to new increased restrictions.
・Off-trade: Steady demand with increase in home consumption.

・Total Business: Solid Q3 but Oct expected to be adversely impacted by new
restrictions.

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

・On-trade: Reopened in July, but restrictions increased from late September.
・Off-trade: Increased market share through key customers.
・Total Business: Heavily impacted by restrictions in the On-trade which will also
impact Q4 as lockdown implemented from beg Nov.

15

Oceania Business (Revenue/Core OP *constant currency basis)◆ Breakdown<Revenue and Core Operating Profit>*constant currency basis (based on previous year's FX rates)2020 Q3 (9 months ended September 30)(JPY billion)

2020 forecast (announced on August 5)

YoY (Amount / %)YoY (Amount / %)Existing business

124.6

10.6

9.3%

181.0

2.1

1.2%

CUB business (from June 2020)

82.4

82.4

-

136.2

136.2

-

207.0

93.0

81.6%

317.2

138.3

77.3%

Existing business

5.1

- 1.1

- 17.9%

11.8

- 3.8

- 24.2%

CUB business (from June 2020)

19.1

19.1

-

23.6

23.6

-

Temporary expenses

- 7.6

- 7.6

-

- 11.6- 11.3

-

16.5

10.3

165.6%

23.7

8.5

55.8%

RevenueCore Operating Profit◆ CUB Non-consolidated Performance (June-Sep.) and Forecast (June-Dec.)*Local Currency Basiskhl, million AUD

Q3（June-Sep.）

Sales Volume

2,405

3%

4,130

- 8%

Revenue (exl. Alcohol tax)

689

4%

1,165

- 7%

Core Operating Profit

262

24%

326

- 26%

Temporary expenses- 105

Refrence
YoY*-

Forecast（June-Dec.）- 160

Refrence
YoY*-*Approximate values are used for the previous year's results.

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

16

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 change without notice.
The company and its officers and representatives accept no responsibility or liability for any damage orinconvenience that may be caused by or in conjunction with any part of these materials.