Financial Results Presentationfor 2020
2020 Overview
2021 Direction
February 2021

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

Executive Summary
2020 Summary◆ Revenue down 3%, core operating profit down 21% YoY due to impact of COVID-19 pandemic
・ Negative impact on our strengths expanded, such as Alcohol Beverage Business’s on-premise demand, Soft Drink
Business’s vending machine sales, Food Business’s Mintia, etc.
・ Resilience exceeded forecasts, due to flexible marketing, channel strategies, and profit structure reforms.

◆ Expanded foundations for growth through acquisition of Australian beer business and ensured
financial soundness
・ Built a global platform with three core pillars in Japan, Europe, and Australia with addition of CUB business.
・ Achieved optimal financing plan implementation including public offerings; improved cash flow generation capability.

Direction for 2021
◆ Targeting 13% revenue growth and 30% core operating profit growth driven by recovery of
existing businesses and impact from consolidation of CUB business・ Continuation of premiumization strategies focused on each region’s core brands; creation of new value/new demand.
・ Strengthen global management based on three core pillars in Japan, Europe, and Australia; generating synergies
through CUB business integration.

◆ Update Medium-Term Management Policy to accelerate management reforms in anticipation ofbusiness environment changes
・ Restructure earnings power with revision of guidelines in response to the COVID-19 pandemic and acquisition of CUB
business.
・ Achieve 50 billion JPY in cost efficiency through streamlining over three years and reinvest for upgrading management
resources and reinforcing ESG initiatives.

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1

3

Overview of Medium-Term Management Policy
Enhancing “Glocal Value Creation Management” based on Asahi Group Philosophy◆ Strengthening earnings power by further enhancing added value andearnings structure reform
・Promoting the premiumization strategy by enhancing high- added-value brands inall businesses and expanding the five global brands

・Reforming the earnings structure in response to changes in the business environment
ー Targeting the efficiency of improving earnings structure (total for 2021–2023):
over ¥50.0 billion for reallocating on business performance recovery and investmentsin the enhancement of management resources and reinforcing of ESG initiatives.

◆ Enhance management resources aimed at expanding new foundations for growth・Bolstering investment in intangible assets (R&D, human resources, etc.) with the aim of boosting
innovation and new value creation
・Constructing new operating model by accelerating DX (Digital Transformation)◆ Reinforce ESG initiatives supporting our sustainable value creation process・Integrating sustainability into management strategy through such initiatives as “Asahi Group
Environmental Vision 2050” and “Sustainable Communities”
・Enhancing risk management systems (enterprise risk management), strengthening global governancecentered on the three pillars in Japan, Europe, and Australia⇒Promoting constructive dialogue based on the above Key initiatives as the "engagement agenda”
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2

Key Performance Indicator (KPI) Guidelines◆ Key Performance Indicator Guidelines
2017 Result
Revenue

JPY 2,084.9 billion

Guidelines from 2018 in 3 years out
・Stable growth from existing businesses– Business restructuring + New M&As

2020 Result－Core Operating
ProfitJPY 196.4 billion

・CAGR : mid to high single digit-5.1％

EPS (adjusted*)

262.2 yen

・CAGR : mid to high single digit-9.2％

ROE (adjusted*)

13.7%

・Maintain 13％ or above

7.5％*Adjusted figures are calculated after the deduction of one off special factors
including business portfolio restructuring and foreign exchange impact

・Withdrawing existing guidelines in light of the impact of the COVID-19 pandemic,planning to establish new guidelines in 2022

・Targeting a recovery to 2019 profit level* in 2022
*Based on 2019 operating performance with the inclusion of CUB business results(estimated figures from January to December)

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3

Financial and Cash Flow Guidelines（Revised in 2021）◆ Financial and Cash Flow Guidelines
Guidelines from 2021 onward
Cash Flow

・FCF: above ¥200.0 billion or higher (annual average)(FCF = operating cash flow – investment cash flow)*Excluding M&A and other business restructuring.

Investment for
Growth/Debt
Reduction

・FCF will be allocated first to debt reduction to increase capacity for
growth investment
・Net Debt/EBITDA: Around 3 times by 2024 (Calculated after
excluding 50% of subordinated bonds from Net Debt)

Shareholder Returns

・Stable dividend increases with the aim of a dividend payout ratio of
35% (aiming at dividend payout ratio of 40% in the future)by deducting 50% of the outstanding subordinated bonds＜ Changes of Net debt/EBITDA＞*Calculated(300 billion yen) from Net Debt.

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

4Efficiency Improvement Plan in Profit Structure Reforms◆ Breakdown of efficiency improvement plan
2021-2023
3-year forecast-Improve efficiency of advertisement and sales promotion expenses and production efficiency
by concentrating on core brands and new value products

Alcohol
Beverages

Soft Drinks

Initiatives-Optimize production and logistics systems to respond to shifts in demand between containers
and categories

Over\35.0 billion-Optimize inventory levels by improving SCM efficiency, such as through more sophisticateddemand forecasting-Improve total cost of goods sold and logistics costs by promoting in-house production-Improve productivity by automating manufacturing equipment and improving manufacturing
processes

Food-Reduce variable costs by improving the accuracy of supply and demand forecasts andoptimizing inventory levels and the number of SKUs

OverseasOver\15.0 billion

Consolidated
total

Over
\50.0 billion-Reduce fixed manufacturing costs using automated warehouses and increase efficiency
through the organizational integration (Europe)-Create synergies through business integration, including integration of logistics bases andreduction of procurement costs (Oceania)

Targeting the efficiency of improving earnings structure (total for 2021–2023):
over ¥50.0 billion for reallocating on business performance recovery and investmentsin the enhancement of management resources and reinforcing of ESG initiatives
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5

Sustainability Strategy Overview◆ Integrating sustainability in our management
Initiatives and results for 2020
Basic Policy and Vision on Sustainability

Jan. 31 Issued IARD Joint Statement

Responsible
for strategy

Jul. 6

Formulated Basic Policy and Vision on Sustainability,
renewed material issues, built promotion framework

Jul. 8Disclosed information relating to TCFD
recommendations

Oct. 15 Issued Green Bonds
Oct. 29 Joined global environmental initiative “RE100”

Responsible
for execution◆ Our material issues
Contribute to efforts to reduce harmful drinking
and promote the sound development of thealcohol beverage culture

Reduction in inappropriate drinking/Solution ofsocial issues through creation of new drinking
opportunities

Dec. 7

Held Global Sustainability Committee conference

Dec. 8

Recognized as CDP “Climate Change A List 2020”
company

Protect the gifts of nature
Climate change/Sustainable raw material procurement,
containers/packaging and water resources /Circular economy
Uphold respect for human rights and maximize thepotential of people
Respect for human rights/Human resources
development/Diversity/Workforce health and safety

Become a close part of people’s healthy lifestyles
Secure food safety & reliability/Create value of healthConnect people to create and share enjoyment
Create people-to-people connections/Realize
sustainable supply chains

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Reference: Material issues (Environment)◆ Response to climate change: Aiming for zero CO2 emissions by 2050 with “Asahi Carbon Zero”
Updated “Asahi Carbon Zero” targets

2030 emission reduction
target revised upwardfrom 30% to 50%(Applies to: Scope 1 & 2)

＜Japan＞
・Expanding use of “green electricity” to production of
Asahi Super Dry in 500 ml cans(already used for Asahi Super Dry in 350 ml cans, Dry
Zero in 350 ml cans, etc.)＜Europe＞
・Switched to 100% renewable energy at seven breweries
in Italy, Netherlands, and Poland
Acquired SBT1.5℃
certification
Setting targets based on
scientific evidence

Joined RE100
International initiative toenhance target credibility＜Australia＞
・Using 100% solar-generated power for production ofVictoria Bitter◆ Response to plastic problem
Realize 100% utilization of materials
for plastic containers that can beused effectively by 2025
Begin examinations for achieving
a 100% conversion to eco-friendly
materials for plastic containers
by 2030
Examine the development of ecofriendly materials and sales methods
that do not make use ofplastic containers

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

＜Japan＞
・Expanding label-less PET bottle products/channels＜Europe＞
・From 2020, Grolsch commenced transition from plastic
six-pack film packaging to Top Clip cardboard
packaging＜Australia＞
・Introduced bottles made from 100%
recycled PET plastic for Cool Ridge
water brand7

Reference: Material issues (Community)◆ Strengthening “Sustainable Community” Initiatives
Revitalizing connections between people andtheir communities that have been weakened byeconomic development, COVID-19, etc.

Community Activity Slogan “RE:CONNECTION”

Collaborating with local communities
Key areas: Food, local environment,
disaster assistance

People

Comm
unity

Comm
unity

Comm
unity

PeoplePeople

Comm
unity

Comm
unity

PeopleComm
unity

PeopleSharing happy times with local
community members“Bringing more fun to life”
Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

【Major initiatives】＜Italy: Birra Peroni＞
To support farmers, “Campus Peroni” project was launched in2018 in partnership with a malting plant, the National Agricultural
Research Center, and the agricultural departments of several local
universities to explore the cultivation of barley and other grainsthat can be used to make sustainable beer. The project involves
the advancement of initiatives promoting research, training,
innovation, and exchange between agricultural producers.

Campus Peroni partnerships
aimed at producing sustainablemalt＜Malaysia＞
Deploying a program to purchase raw milk at a stable price fromfarmers who maintain certain quality standards and production
volumes. As well as promoting improved quality and productivity
among dairy farmers, the project also provides a framework forsecuring enhanced or stable incomes for farmers, and contributes
to supporting farmers aiming for a new career in dairy farming.

Malaysian Dairy Farmer
Support Program8Reference: Material issues (Responsible Drinking)Global Slogan：Responsible Drinking Ambassador◆ To eliminate harmful drinking and generate new drinking opportunities, we promote non-alcohol
beverage strategies across the entire Group.
As a signatory to the IARD, an international NPO, we work together with leading alcohol beverage producers around theworld to promote responsible drinking.

Japan“Smart Drinking” declaration
・Aiming to realize a society where those who drink, and those who donot, can respect each other’s perspectives
・Online disclosure of net alcohol quantities (in grams) by June 2021
・Aiming for a sales volume ratio of 20% for products with an alcohol byvolume (ABV) level of 3.5% or lower by 2025

EuropeOceania

Promoting premiumization to expand growth
opportunities

Developing the market through the use of brands･Aiming for a sales volume ratio of 20% for non-alcohol
product by 2030

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

･By launching non-alcohol beers from core brands such as Great
Northern and Carlton, aiming for a sales volume ratio of 25% for
products with an ABV of 3.5% or lower by 2025

9

Overview of Business for 2020
Business Strategy for 2021

Financial Results Highlights (constant currency basis)◆ Core operating profit for 2020 decreased by 21.1% due to the spread of COVID-19. (constant currency basis)・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 control of overall fixed costs.

・Soft Drinks：

YoY decline in revenue and profits due to weak vending machine sales, despite concentrating on core brands andpromoting control of overall fixed costs.

・Food：

YoY decline in revenue and profits due to the sales decrease of Mintia brand, despite the promoting sales to capture
the staying-at-home demand and control of overall fixed costs.

・Overseas：

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

◆ In 2021, we aim to increase profit by 27.7% by responding flexibly to changes in the business environment.
(constant currency basis)<Revenue and Core operating profit>*constant currency basis (based on previous year's FX rates)(JPY billion)

2020

2021 forecast

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

Alcohol Beverages Business

758.3- 128.6- 14.5%

- 7.3

782.5

35.5

4.8%

Soft Drinks Business

353.4- 23.5- 6.2%

- 2.6

372.4

19.1

5.4%

Food Business

123.5

- 5.5

- 4.2%

- 1.1

128.7

5.2

4.2%

Overseas Business

799.8

101.2

14.5%

18.8

971.8

178.9

22.6%

Other Business
Adjustmenet (corporate and elimination)

93.2

- 4.6

- 4.7%

0.3

111.7

7.0

6.7%

- 93.5

6.4

-

2.5

- 94.9- 1.2-

2,034.6- 54.5- 2.6%

10.5

2,272.2

244.4

12.1%

Alcohol Beverages Business

80.4- 25.1- 23.8%

0.1

87.0

4.0

4.9%

Soft Drinks Business

27.8

- 5.6

- 16.9%

1.6

29.5

1.7

6.3%

Food Business

11.0

- 2.7

- 19.9%

0.1

11.3

0.3

2.8%

Overseas Business

94.4

- 7.8

- 7.6%

10.9

144.8

50.7

53.9%

Other Business

1.3

- 0.2

- 13.2%

1.2

- 1.7

- 0.6

-

Adjustmenet (corporate and elimination)- 21.4

1.0

-

2.6

- 27.8- 6.5-

Amortization of acquisition-related intangible assets- 25.5

- 4.4

-

3.5

- 28.8

- 3.3

-

168.1

- 44.9- 21.1%

19.9

214.3

46.4

27.7%

RevenueCore operating profit

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

10

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

2020

2021 forecast

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

Alcohol Beverages Business

758.3- 128.6- 14.5%

- 7.3

782.5

35.5

4.8%

Soft Drinks Business

353.4- 23.5- 6.2%

- 2.6

372.4

19.1

5.4%

Food Business

123.5

- 5.5

- 4.2%

- 1.1

128.7

5.2

4.2%

Overseas Business

793.0

94.4

13.5%

29.1

995.6

202.7

25.6%

Other Business

93.2

- 4.6

- 4.7%

0.3

111.7

7.0

6.7%

- 93.5

6.4

-

2.5

- 94.9- 1.2-

2,027.8- 61.3- 2.9%

20.8

2,296.0

268.2

13.2%

Alcohol Beverages Business

80.4- 25.1- 23.8%

0.1

87.0

4.0

4.9%

Soft Drinks Business

27.8

- 5.6

- 16.9%

1.6

29.5

1.7

6.3%

Food Business

11.0

- 2.7

- 19.9%

0.1

11.3

0.3

2.8%

Overseas Business

94.1

- 8.1

- 8.0%

12.1

148.6

54.5

57.9%

Other Business

1.3

- 0.2

- 13.2%

1.2

- 1.7

- 0.6

-

Adjustmenet (corporate and elimination)
Revenue

Adjustmenet (corporate and elimination)- 21.4

1.0

-

2.6

- 27.8- 6.5-

Amortization of acquisition-related intangible assets- 25.5

- 4.3

-

3.2

- 29.4- 3.9-Core operating profit

167.8- 45.1- 21.2%

20.8

217.5

49.7

29.6%

Operating profit

135.2- 66.3- 32.9%

11.2

216.0

80.8

59.8%

Profit attributable to owners of parent

92.8- 49.4- 34.7%

12.8

152.0

59.2

63.7%

【2020】
・Revenue:

・Core OP:
【2021】
・Revenue:
・Core OP:

-2.9% YoY decline in the total due to the YoY decline of the three domestic businesses, despite YoY increase of theoverseas business due to the impact from the consolidation of CUB business.

YoY decline with -21.2% in the total due to the worsening channel mix and the sales decrease in various countries.
Expected to increase by +13.2% YoY due to recovery in demand in various countries and brand development centeredon high value-added products.
Expected to increase by +29.6% YoY due to recovery in sales volume and improved mix, as well as the effect ofconsolidation of CUB business.

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Operating Profit/Profit attributable to owners of parent(JPY billion)
2020

2021 forecast

YoY (Amount / %)Against Target

YoY (Amount / %)2,027.8- 61.3- 2.9%

20.8

2,296.0

268.2

13.2%

Core operating profit

167.8- 45.1- 21.2%

20.8

217.5

49.7

29.6%

Adjustment item

- 32.7- 21.1

-

- 9.7

- 1.5

31.2

-

1.8

5.8

-

1.0

28.8

27.0

-

Business integration expenses

- 8.9

- 3.5

-

- 6.8

-

8.9

-

Impairment loss

- 8.8

- 8.8

-

- 8.8

-

8.8

-

Others- 16.7- 14.6-

5.0- 30.3- 13.6-

Operating profit

135.2- 66.3- 32.9%

11.2

216.0

80.8

59.8%

Revenue

Gain (loss) on sales and retirement of
non current assets

- 7.6

- 3.3

-

0.6

- 13.0- 5.3-

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

0.3

- 0.6

- 67.3%

0.3

0.3

- 0.0

- 12.0%Gain (loss) on sales of investments accounted forusing equity method

- 2.3

- 2.3

-

-

-

2.3

-

Others

- 0.1

0.5

-

1.4

- 0.3

- 0.2

-

Finance income or loss

125.4

- 72.0- 36.5%

13.4

203.0

77.6

61.9%

- 32.8

23.3

-

- 0.3

- 51.0- 18.2-

Profit92.6- 48.7- 34.5%

13.1

152.0

59.4

64.2%

Profit attributable to owners of parent

92.8- 49.4- 34.7%

12.8

152.0

59.2

63.7%

Profit attributable to non-controlling interests

- 0.2

0.7

-

0.3

-

0.2

-

Profit before tax
Income tax expense【2020年】
・Operating profit: -32.9% YoY decrease due to lower Core OP and impairment loss, despite improvement in gain (loss) on sales andretirement of non current assets.
・Profit(※): -34.7% YoY decline due to lower operating profit and higher finance loss, despite lower income tax expense.
【2021年】
・Operating profit: Expected to increase by +59.8% YoY due to higher Core OP and gain on sales and retirement of non current assets,
despite increase in other expenses.
・Profit(※): Expected to increase by +63.7% YoY mainly due to higher operating profit, despite higher finance loss and income tax expenses.
(※) Profit refers to profit attributable to owners of parent.

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12

Statement of Financial Position and Statement of Cash Flow
(JPY billion)
2020

2021 forecast

YoY (Amount / %)Against Target

YoY (Amount / %)Total Assets

4,439.4

1,298.6

41.3%

105.4

4,320.0- 119.4- 2.7%

Total Equity

1,517.8

269.5

21.6%

313.8

1,522.0

4.2

0.3%

Interest-bearing debt

1,823.6

880.4

93.3%

- 326.4

1,670.0- 153.6- 8.4%Net DE ratio ※1, 2

0.98

0.26

35.9%

- 0.750.88- 0.10- 10.2%

Net Debt / EBITDA ※2

6.03

3.10

105.5%- 2.234.48- 1.55- 25.7%

Cash flows from (used in) operating activities

275.9

22.4

8.8%

97.9

282.0

6.1

2.2%

Cash flows from (used in) investing activities- 1,243.4- 1,139.7

-

- 4.9

- 43.5

1,199.9-

Cash flows from (used in) financing activities

956.8

1,115.6-- 124.7- 237.0- 1,193.8-

Free cash flow

196.8

23.8

13.8%

-

220.5

23.7

12.0%

Dividend per share (yen)

106

6

6.0%

-

109

3

2.8%

Dividend payout ratio (%)

53.9%

21.7%

-

-

36.3%

- 17.6%-(※1) Calculated by adding 50% of the outstanding subordinated bonds (300 billion yen) to the equity.
(※2) Calculated by deducting 50% of the outstanding subordinated bonds (300 billion yen) from Net Debt.

【2020】
BS:

Total assets increased by 1,298.6 billion yen from the end of the previous fiscal year, mainly due to an increase ingoodwill and trademarks resulting from the acquisition of CUB business.
Interest-bearing debt increased due to funding for the acquisition, but was significantly reduced compared to theforecast due to public offering, increase in profit, and measures to expand cash flow.

CF, Div.: Generated significantly more cash than forecasted by reducing working capital, selling non-operating assets, andcontinued to stably increase dividends.
【2021】
BS:

Aim to repay more than 150 billion JPY of interest-bearing debt by increasing cash generation capacity, and to achieve
Net Debt/EBITDA of 4.5x.

CF, Div.: Plan to increase annual dividend by 3 JPY to 109 JPY per share by improving cash generation capacity through profit
recovery and asset reduction.
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13

COVID-19 Impacts (by Region)◆Monthly Beer Sales in the Key Businesses【European Business】【Domestic Alcohol Business】
30%*Beer-type beverages value basis
20%

Annual value YoY in 2020：▲15.7％*Volume basis【Australian Existing Business
and CUB】*Volume basis

Annual volume YoY in 2020 ：▲6％

Annual volume YoY in 2020 ：±0％・Demand for On-premise channel was
sluggish due to the lockdown since
March, but after lifting, demand
recovered gradually from May andexceeded the previous year's level inthe summer.
・On-premise: Sluggish due to the 2nd
lockdown and tighter regulations.
・ During the year, off-premisechannel expanded, but not enough tocover the decline in on-premise one.

・Sluggish in Apr. due to the lockdown,
but after lifting in May, it recovered.
・On-premise: Recovered after Julydue to the deregulation. (Victoria
remains on lockdown until October)・At its peak, the recovery trend
continued, though regulations
remained in some states.
・ During the year, expanded offpremise channel covered declined
on-premise one and lead to thealmost previous year's level

10%

0%

-10%

-20%

-30%

-40%

・Temporary recovery after May, but
declined after August due to the-50%
reemergence of COVID-19.
・On-premise: Recovered after
October with the launch of the "Go To
Campaign", but declined again due tothe reemergence of COVID-19.
・During the year, new genres for offpremise channel expanded, but notenough to cover the decline in totalbeer sales.
Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

14

Overview and Direction for Alcohol Beverages Business

2020(JPY billion)

2021 forecast

YoY (Amount / %)Against Target

YoY (Amount / %)Revenue

758.3- 128.6- 14.5%

- 7.3

782.5

35.5

4.8%

Core OP80.4- 25.1- 23.8%

0.1

87.0

4.0

4.9%

2020 Overview◆ Promoted prioritization of investment in core brands and revision of cost structure
in light of the COVID-19 pandemic◆ Challenges included revitalization of beer market and offering new value following
liquor tax revisions, and structural reform of sales channels

Direction for 2021
◆ Strengthening of new value offered through core brands, creation of new markets
in anticipation of changes in consumption structure◆ Promotion of fundamental earnings structure reforms, including improvements inchannel/category mix

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

15

Initiatives for Asahi Super Dry◆ Initiatives for Asahi Super Dry
Invigoration of Asahi Super Dry and enhancement of brand value by offering the highest
levels of quality and new consumption opportunities
・ Off-premise: Strengthen appeal of beer’s great taste and enjoyableness through new containers andby providing new drinking opportunities and experiences
・ On-premise: Support for enhancing keg draft product quality, strengthening appeal of the brandthrough premium drinking experiences, etc.

＜Beer can market YoY＞

Server for home use(Scheduled to start
operations in May)

Asahi Super Dry Nama Jokki Can(Pre-sale at convenience stores from April 6,
and nationwide sale from April 20)

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

「ASAHI SUPER DRY
VIRTUAL BAR」

Source: Intage SRI+ Beer Can Market Estimated Sales Volume YoY
Feb. 2020 ~ Jan. 2021
Seven channels (SM/CVS/liquor DS/HC/DRUG/generalliquor stores/commercial liquor stores)

16

Initiatives for Other Products than Beer
◆ New genre standard brands◆ Zero sugar brands

Clear Asahi: Strengthen year-round sales promotion
Asahi THE RICH: Increase promotional communications
via digital technologies

Style Free: In response to increased consumer healthconsciousness, strengthening sales promotion
including first TV commercials in 3 years<Total of the four new genre
standard brands *1><Total of the three zerosugar brands*2>

Jan.-Dec.
2020
volume YoY

Jan.-Dec.
2020
volume YoY

＋5％

＋5％

*1 New genre standard brands: Clear Asahi, Asahi THE RICH, Asahi Gokujo
Kire Aji, and Prime Rich

◆ RTD

*2 Zero sugar brands: Style Free, Zeitaku Zero, and Asahi Off◆ Alcohol-taste beverages

Promote growth and profit structure reforms,
prioritizing investment in 3 brands with distinctive
value＜RTD can＞<Asahi Dry Zero can>Jan.-Dec.
2020
volume YoY

Jan.-Dec.
2020
volume YoY

＋6％

＋5％

(Zeitaku Shibori: +21％ YoY)

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

Dry Zero: Achieving a taste closer to beer to expand
customer base
Beery: Creating a low alcohol (alcohol content <1%) category
to enjoy in the setting and at the pace of your choice

Beery: Pre-sale in Tokyo and 9 prefectures from March 30, nationwide salefrom June 29

17Overview and Direction for Soft Drinks Business

2020(JPY billion)

2021 forecast

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

Revenue353.4- 23.5- 6.2%

- 2.6

372.4

19.1

5.4%

Core OP

27.8

- 5.6

- 16.9%

1.6

29.5

1.7

6.3%

2020 Overview◆ Improved category mix with focus on bolstering carbonated beverages, promoted
profit structure reforms such as enhanced capacity utilization◆ Challenges included offering value that is responsive to business environment changes,
weak vending machine sales, and improving channel mix

Direction for 2021
◆ Offer new value that is responsive changing needs, strengthen sales channel measures
to supplement vending machines◆ Build optimal production and distribution structure, accelerate prioritization of brandinvestment through “selection and focus”

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

18

Soft Drinks Business◆ Initiatives for Carbonated drinks
Growth continues to outpace the market- MITSUYA and WILKINSON set new records forsales volume
Jan.-Dec.
2020
volume YoY

Aiming to achieve further growth and take on
new challenges, leveraging the strength ofcentenarian brands- Developing products and marketing tailored tochanges in consumer needs

MITSUYA＋4％

WILKINSON＋10％2021 Sales plan (YoY)*Source: Inryousoken『MITSUYA』：+3％『WILKINSON』：+8%◆ Initiatives in a pandemic (responding to staying-home demand)
Concentrated CALPIS- Set new sales volume record, increasing its
sales weighting among Calpis brand products

E-commerce channels- Achieved record sales volume through proactive
development of label-less products＜ Growth rate of label-less products ＞
Jan.-Dec.
2020
volume YoY+6％Composition within "CALPIS”
2019:10.7% → 2020:12.6％

Jan.-Dec.2020
volume YoY＋106％＜ Growth rate of EC channel＞
Jan.-Dec.2020
volume YoY＋36％
Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

19

Overview and Direction for Food Business
2020(JPY billion)

2021 forecast

YoY (Amount / %)Against Target

YoY (Amount / %)Revenue

123.5

- 5.5

- 4.2%

- 1.1

128.7

5.2

4.2%

Core OP

11.0

- 2.7

- 19.9%

0.1

11.3

0.3

2.8%

2020 Overview◆ Promoted marketing suited to health-conscious lifestyles and stay-at-home demand,and promoted overall streamlining of fixed costs◆ Challenges included a decline in sales of core brand Mintia and growth strategies thatare responsive to market environment changes
2021
Forecast
Directionfor 2021◆ Restore sales momentum by restructuring category portfolio in response to businessenvironment changes◆ Promote earnings structure reforms, such as prioritizing investment in growing
categories and optimization of inventory levels

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

20

Food Business◆ Initiatives of Mintia
Mintia" in the age of new lifestyles-Reforming into “No. 1 brand for refreshing the mind”
Value that will continue

Changeof pace

Etiquette

Commuting

Essential items for the mind of the consumers
Keepingawake

Refreshin themouth

Meetings

On-offswitching

RelieffromstressWorking remotely

Raisingawarenessof self-care

Home time

New value
Eliminate
discomfort
of wearing
masks

Relax

Playing outside

2021 Sales Plan (YoY)
Mintia: +3%◆ Initiatives of Dear-Natura
Sales growth for 13 consecutive years since launch
2018
Protein(Active)
Launch2015
Foods with
Functional
Claims (Gold)
Launch2012
Pouch type
(Style)LaunchNew products for new lifestyles-Special products for wearing masks-Launch of Food with Nutrient Function Claims(first for Mintia)-New products in tabletop bottles

Expand Food with Functional Claims
using functional ingredients derived from
Calpis lactic acid bacteria research

2020
YoY

+13%

2007
Dear-Natura
Launch2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

2021 Sales Plan (YoY)
Dear-Natura: +2%

21

Overview and Direction for Europe Business*constant currency basis (based on previous year's FX rates)
2020(JPY billion)

2021 forecast

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

Revenue

352.0- 36.3- 9.3%

3.5

481.2

70.2

17.1%

Core OP59.6- 18.1- 23.3%

2.9

71.6

11.3

18.7%

2020 Overview◆ Gains in off-Premise but not sufficient to compensate for on-Premise loss.
Profit supported by cost savings.
◆ Challenge: Adverse mix due to the sales decrease in on-Premise market.

Direction for 2021
◆ Continue to promote premiumization in all brands and non-alcohol products,
and expand sales channels for five global brands◆ Appropriate allocation of resources and investment to address changes in market
structure, and cost optimization through integration of European businesses.

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

22

Europe Business◆ 2020 Results ※constant currency basis◆ 2021 Forecast ※constant currency basis＜Europe Business（Before integration）＞＜Europe Business（After integration ）＞khl、million Euro

2020 Result

YoY*2

AgainstTarget*3

Sales Volume

39,964△ 6%

0%

Net Sales (exc liquor tax)

2,375

△ 8%

△ 0%

489

△ 21%

5%

Core OP*1

Net Sales (exc liquor tax)
Core OP*1＜

2021 Target

4,055

△ 10%

△ 5%

476

△ 18%

△ 8%

7

△ 89%

△ 71%

Europe Business （After integration）
Revenue Composition by Country（2020）

Sales Volume

43,691

8%

Net Sales (exc liquor tax)

3,157

17%

587

19%

Core OP*1＞*2 Comparison in FX rate of the same period of the previous year
*3 Comparison in budget FX rate

◆ Share of non alcohol beverages
in our total sales volume*
Sales Volume Growth Rate
＋10％ (2020)

OthersYoY*2*1 Core OP before deduction of one-off cost

＜Asahi International Ltd＞
Sales Volume

khl、million Euro

20.0%

Czech ＆
Slovakia

UK

5.1%
Italy
PolandRomania

2020

2030

*Europe Business before integration basis
Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

23

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

Annual volume YoY in 2020 ：▲5％

Annual volume YoY in 2020 ：▲7％

10%

10%

0%
Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct

Nov

Dec

0%

Mar.

-10%

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct

Nov

Dec

-10%

-20%

・ On-trade: Moderate improvements over summer period as restrictions werelifted, however decline from Oct due to the new lockdown.

-30%・Off-trade: Steady demand, although slowed down with new restrictions andnot sufficient to compensate for loss of On-trade.
・Total Business: Strong performance in Q3, however decline from Oct due tothe lockdown.

・On-trade: Outlets reopened over summer period, however closed again from
mid-Oct due to lockdown.

-20%

・Off-trade: Year-on-year decline due to cycling good weather in previous year.
Impacted by restrictions.
・Total Business: Solid demand but impacted by covid restrictions【UK】【Italy】 *Volume basis On-premise ratio: mid-double digit*Including the effect from the acquisition of Fuller’s from Apr 2019

Annual volume YoY in 2020 ：▲13％

20%

20%

0%

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct

Nov

*Volume basis On-premise ratio: mid-double digit

Dec

-20%

-40%

-60%

・On-trade: Improvements from mid-May as restrictions lifted, but decline
from Oct due to new increased restrictions.

Annual volume YoY in 2020 ：▲18％

0%
Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct

Nov

Dec

-20%

-40%

-60%

・On-trade: Reopened in July, but restrictions increased from late Sep.

・Off-trade: Steady demand with increase in home consumption but not
sufficient to compensate for loss of On-trade.

・Off-trade: Increased market share through key customers but not sufficient
to compensate for loss of On-trade.

・Total Business: Strong performance in Q3, however decline from Oct due to
new restrictions.

・Total Business: Heavily impacted by restrictions in the On-trade.

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

24

Overview and Direction of Oceania Business*constant currency basis (based on previous year's FX rates)
2020(JPY billion)

2021 forecast

YoY (Amount / %)Against Target

YoY (Amount / %)Revenue

344.0

165.2

92.4%

26.8

447.7

108.6

32.0%

Core OP

33.2

17.9

117.7%

9.4

70.3

37.3

113.3%

2020 Overview◆ Integrate and create synergies by integrating CUB into Asahi Beverages region, andstrengthen sales in the off-premise channel in both alcohol and non-alcohol◆ Challenge for responding to the decline in the on-premise channel, investing in core
brands and accelerating top-line synergies

Direction for 2021
◆ Promote the premium strategy by leveraging the integrated and robust brand portfolioand sales channels◆ Accelerate cost synergies through organizational integration and reinvest to create topline synergies by leveraging Asahi Beverages' scale with speed

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

25

Oceania Business◆ Break down of Oceania Business<Revenue and Core OP *constant currency basis (based on previous year's FX rates)>(JPY billion)

2020

2021 forecast

YoY (Amount / %)予想比

YoY (Amount / %)Existing business

178.7

- 0.1

- 0.1%

- 2.3

-

-

-

CUB business (from June 2020)

165.3

165.3

-

29.1

-

-

-

Revenue

344.0

165.2

92.4%

26.8

447.7

108.6

32.0%

Net business profit

44.4

28.9

186.2%

9.1

73.2

29.0

65.7%

Temporary expenses- 11.2- 11.0

-

0.4

- 2.9

8.3

-

33.2

17.9

117.7%

9.4

70.3

37.3

113.3%

Core Operating Profit* Due to the reorganization of the Oceania business in October, only the total of the business profit is shown, as the allocationof expenses is no longer comparable to the previous year.

◆ Sales volume of CUB business for 2020 (YoY)
Strong recovery of sales volume due to strengthening sales of core brands＜Sales volume of CUB business (YoY)＞
Beer Total

Core brands*
15%
11%

＋7％
June-Dec.
cumulative
volume YoY

3%

5%

June-Sep.

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

Oct.-Dec.

* Core Brands：Victoria Bitter, Great Northern,
Carlton Dry, and Carlton Draught

26

Creating Synergies in Oceania Business◆ Efforts and Targets for Synergy Creation＜Top-line synergies＞
Growth opportunities to provide full multi-beverage solutions across alcoholand non-alcohol (including post-mix) in key channels and customers
Existing
BrandsExpanding our presence, especially in the super-premium
market through accelerating the growth of Super Dry andPeroni by expanding sales channels.

Non-beerCreating new growth opportunities, suchas expanding sales channels for alcoholic
beverages and soft drinks other than beer.

Target for Synergy
Creation by 2024
（Profit basis）

Brand equity
Market accessibility
Marketing ability
SCM CapacityHR

Top-line

Approx. ¥5 billion

Cost

More than ¥10 billion＜Cost Synergies＞(JPY bn)

SCM

Establishing an optimal production and distribution system
by integrating and mutually utilizing distribution centers.

15

Procurement

Strengthening and optimizing procurement capabilities byleveraging scale economies.

10

IT

Improving efficiency and optimization by reviewing
infrastructure, systems, and functions.

5

Other

Improving efficiency through consolidation of sharedservices sites and revision of operational processes.

0

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

2020

Cost Synergy

2021

Top-line Synergy

2022

2023

2024

27

REFERENCE

Overview of
Financial Results for 2020＆
Full Year Forecasts for 2021

* The effects of change from 1 to 5 below resulting from business reorganization effective January 1, 2021 werereflected in figures from the beginning of 2021 and comparable previous year’s results in 2020.
1 We transferred NADAMAN CO., LTD. and ASAHI FOOD CREATE, LTD. which was previously in Alcohol Beverages
Business to Other Business.
2 Asahi Group Foods, Ltd. absorbed and merged ASAHI CALPIS WELLNESS CO., LTD. which was previously in
Other/elimination in Food Business.
3 Asahi International.,Ltd was merged into Europe business.
4 Existing business and CUB business were merged into Oceania business. In 2020, the effect of the consolidation of
the CUB business is included in sales revenue and business profit only for June-December. Amortization of intangible
assets is also included only as an expense for the same period above.
5 We transferred Asahi Loi Hein Company Limited which was previously in Southeast Asia business to Other Business.

Alcohol Beverages Business(Revenue of Beer-typed/Sales Volume by Brands)<Sales Volume by Brands>(Millions of cases)
2020

2021 forecast

YoY (Amount / %)Super Dry

65.17

- 18.38

Style Free

11.65

0.57

Clear Asahi

17.68- 1.16

YoY (Amount / %)Against Target- 22.0%

2020
YoY

2021
Est. YoY

Approx. -22％

＋6～7％

71.00

5.83

8.9%

Beer

5.1%

0.25

12.50

0.85

7.3%

Happoshu

-1～2％

-1～2％

- 6.2%- 0.22

17.80

0.12

0.7%

New Genre

＋2～3％

-3～4％

Total

-9～10％±0～+1％＜Revenue of Beer-type beverages＞(JPY billion)
2020

2021 forecast

YoY (Amount / %)561.3

(Volume basis)- 1.23*Super Dry sales by container (Bottle-44％, Can-5％, Keg-37％)

Beer-typebeverages total<Market Trend>- 104.6- 15.7%

YoY (Amount / %)Against Target- 1.26

597.0

35.7

6.4%

【Market Total】
・2020：YoY contraction by -9 to -10% in the volume due to the contraction of the on-premise market and the scale reduction of
traditional events, despite the stronger consumption of New Genre in the off-premise market.
・2021：YoY expansion by 0 to +1% due to recovery in demand of beer in the on-premise market, despite the contraction of New
Genre by tax revision.
【Revenue/Sales Volume by Brands】＜2020＞
・YoY decline with -15.7% due to the sales decrease in the on-premise channel and the scale reduction of traditional events, despite
the strong sales of Happoshu and New Genre.
＜Asahi Super Dry＞YoY decline with -22.0% due to the decrease in the on-premise channel and the scale reduction of traditional
events, despite strengthening sales promotion for the off-premise market.
＜Style Free＞YoY increase with +5.1% due to the effective promotion to meet the growing health consciousness.
＜Clear Asahi＞YoY decline with -6.2% due to the decrease in the on-premise channel and competitive new products, despite
strengthening sales promotion linked to meals.
＜The Rich＞Total shipments reached 7.82 million cases, and achieved the highest sales of any new beer-typed product in ourcompany's last 10 years.
＜2021＞
・YoY increase with 6.4% due to recovery in demand in the on-premise channel , and further stimulating demand in the off-premisemarket by improving the value of main brands.
＜Asahi Super Dry＞YoY increase with +8.9% due to recovery in demand in the on-premise channel and providing new drinking
values/opportunities, including the launch of new containers, etc.
＜Style Free＞ YoY increase with +7.3% due to the enhanced promotion to meet the growing health consciousness ,etc.
＜Clear Asahi＞ YoY increase with +0.7% due to the enhanced promotion through the year and quality improvement by renewal ,etc.
Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

28

Alcohol Beverages Business (Revenue)<Revenue>(JPY billion)
2020

2021 forecast

YoY (Amount / %)Against Target

YoY (Amount / %)Asahi Breweries Revenue

745.2- 118.2- 13.7%

- 9.1

780.5

35.3

4.7%

Other/elimination in segment

13.1- 10.4- 44.3%

1.8

1.9

0.2

10.5%

Revenue total

758.3- 128.6- 14.5%

- 7.3

782.5

35.5

4.8%

<Reference: Revenue by category (before rebate deduction)>
Whiskey and spirits

52.6

- 5.5

- 9.5%

0.8

53.0

0.4

0.8%

RTD low-alcohol beverages

46.3

0.8

1.8%

- 0.8

46.5

0.2

0.5%

Wine

40.2

- 1.9

- 4.5%

2.5

40.0

- 0.2

- 0.4%

Shochu

23.3

- 3.1

- 11.8%

0.4

19.0

- 4.3

- 18.6%

Non-alcohol beverages

32.1

- 1.0

- 3.1%

0.4

39.5

7.4

23.1%

【Revenue of Other Alcohol Beverages】
2020：•YoY decline in total due to the sales decrease in each category in the on-premise channel, despite the sales
increase of RTD by strengthening Zeitakushibori brand and launce of high value-add products.
•-3.1% YoY decline in Non-alcohol beverages due to the sales decrease in the on-premise channel andbacklash from new products in the previous year.
2021：•YoY increase in total due to sales recovery in the on-premise channel and strengthening Zeitakushibori brands•+23.1% YoY increase in Non-alcohol beverages due to the enhanced promotion and quality improvement by
renewal brand Asahi Dry Zero and the creation of a low alcohol (alcohol content <1%) market with thelaunch of Beery.

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

29

Alcohol Beverages Business (Core OP)<Core Operating Profit>(JPY billion)
2020

2021 forecast

YoY (Amount / %)Against Target

YoY (Amount / %)Change in sales, category and container mix-- 38.5

- 4.0

-

17.5

Cost reduction in manufacturing

-

1.9

- 0.4

-

4.8

Cost increase in manufacturing

-

- 2.8

- 0.3

-

- 1.9

Advertisement and Sales promotion expenses

-

6.8

0.3

-

- 6.4

Other expenses

-

10.4

3.9

-

- 9.8

Asahi Breweries

82.7- 22.2- 21.2%

- 0.4

87.0

4.2

5.1%

Other/elimination in segment

- 2.3

- 2.9

-

0.4

0.0

- 0.2

- 92.8%80.4- 25.1- 23.8%

0.1

87.0

4.0

4.9%

Core Operating Profit【2020:Factors Contributing to Increase/Decrease】】（JPY billion）＜Breakdown of main factors＞• Change in sales and others:-38.5 (Sales decrease in beer-type -36.2, Sales decrease in other alcohol beverages -4.9, Change in
category and container mix , etc.)• Cost reduction in manufacturing: +1.9 (Raw materials +0.5, Other than beer-typed +0.4, Utilities +0.3, Transportation +0.5, etc. )• Cost increase in manufacturing: -2.8 (Raw materials -0.6, In other than beer -0.8, Transportation -0.9, etc.)• Decrease in sales promotion expenses：＋6.8（Advertisement ＋2.8, Promotion ＋4.0）（Beer-type +2.0, Other +4.8）• Other expenses:＋10.4（HR +0.5, Depreciation ＋0.8, Equipment for selling +1.6, Others +7.5）【2021:Factors Contributing to Increase/Decrease】】（JPY billion）＜Breakdown of main factors＞• Change in sales and others:+17.5 (Sales volume increase in beer-type +13.1, Sales increase in other alcohol beverages +3.1, Change
in category and container mix , etc.)• Cost reduction in manufacturing: +4.8 (Raw materials +0.8, Other than beer-type +1.1, Utilities +0.5, Disposal +0.5 , etc.)• Cost increase in manufacturing: -1.9 (Raw materials -0.9, Other than beer-type -0.3, Transportation -0.6 and others, etc.)• Increase in sales promotion expenses：-6.4（Advertisement -2.7, Promotion expenses -3.7) (Beer-type -4.6, Other -1.8)• Other expenses：-9.8（HR -0.9, Depreciation -0.4, Equipment for selling ±0 , Others -8.5）

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

30

Soft Drinks Business (Sales Volume)<Sales Volume>(Millions of cases)
2020

2021 forecast

YoY (Amount / %)YoY (Amount / %)<Market Trend>
2020

2021 forecast

YoY

YoY

Carbonated drinks

78.20

5.22

7.2%

- 0.51

81.59

3.39

4.3%

Approx. -4％-

Lactic acid drinks

43.79- 5.08- 10.4%- 1.21

46.92

3.12

7.1%

Approx. -11％-

Coffee35.46- 5.68- 13.8%- 0.62

36.58

1.12

3.1%

Approx. -9％

-

Tea

35.05

- 4.91- 12.3%- 1.69

36.59

1.54

4.4%

Approx. -7％-

Mineral Water

16.47- 3.45- 17.3%- 1.41

18.42

1.95

11.9%

Approx. -3％-

Fruit juice

14.33- 4.89- 25.4%- 1.09

14.53

0.19

1.3%

Approx. -7％-

Other drinks

25.36

2.31

10.0%

- 0.60

27.38

2.02

8.0%

-

-

Sales Volume

248.67- 16.47- 6.2%- 7.13262.00

13.33

5.4%

Approx. -7％

Approx. +2％

Against target<Sales Volume by Brands><By container type>
2020

2020

<By channel>
YoY

2020

YoY

Can

- 5.6%

Vending machine- 15.7%

4.1%

PET total- 4.8%

CVS- 2.0%

2.72

10.1%

Large PET

- 7.6%

SM

1.2%- 4.11- 9.8%

Small PET

- 3.3%

Others- 16.8%- 15.0%Glass bottle- 36.9%- 1.31- 5.8%

Others- 17.9%- 3.45- 17.3%

YoY (Amount / %)MITSUYA CIDER

40.75

WILKINSON

29.66

CALPIS

37.67

WONDA

33.56

- 5.94

Asahi Juroku-cha

21.53

OISHII MIZU

16.47

1.60

【Market Total】
・2020:-7% YoY decline in total volume mainly due to the sales decrease except supermarkets cause by
consumption trends from staying at home demand.
・2021:+2% YoY increase in total volume mainly due to a partial recovery in vending machines and steadysales in supermarkets and convenience stores.
【Asahi Soft Drinks Sales Volume】
・2020: -6.2% YoY decline due to the sales decrease of Coffee and Fruit juice drinks, despite the sales increase in
Carbonated drinks
・2021: +5.4% YoY increase due to the continuous sales increase of Carbonated drinks and a recovery in vending
machines and additional growth in supermarkets.
Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

31

Soft Drinks Business (Core OP)<Core Operating Profit>(Millions of cases / JPY billion)
2020

2021 forecast

YoY (Amount / %)Against Target

YoY (Amount / %)Sales Volume Total

248.67- 16.47- 6.2%- 7.13262.00

13.33

5.4%

Revenue Total

353.4- 23.5- 6.2%

- 2.6

372.4

19.1

5.4%

Change in sales, category and container mix

-

- 9.6

0.6

-

6.0

Cost reduction in manufacturing

-

4.7

- 0.4

-

2.4

Cost increase in manufacturing

-

- 0.8

0.1

-

- 0.8

Advertisement and Sales promotion expenses

-

1.7

0.8

-

- 1.3

Other expenses

-

- 1.6

0.6

-

- 4.6

Asahi Soft Drinks

27.8

- 5.6

- 16.9%

1.6

29.5

1.7

6.3%

-

-

-

-

-

-

27.8

- 5.6

- 16.9%

1.6

1.7

6.3%

Other/elimination in segment
Core Operating Profit

29.5【2020:Factors Contributing to Increase/Decrease】】（JPY billion）＜Breakdown of main factors＞• Change in sales and others:-9.6 (decrease in sales volume -7.9, Change in category and container mix, etc.)• Cost reduction in manufacturing: +4.7 (Raw materials +0.3, Packages +2.4, operational efficiency / in-house production +2.0, etc. )• Cost increase in manufacturing: -0.8 (Raw materials -0.2, Packages -0.6, etc.)• Change in sales promotion expenses：＋1.7（Advertisement +0.9, Promotion expense +0.8）【2021:Factors Contributing to Increase/Decrease】】（JPY billion）＜Breakdown of main factors＞• Change in sales and others:+6.0 (Increase in sales volume +5.6, Change in category and container mix, etc.)• Cost reduction in manufacturing: +2.4 (Raw materials +0.3, Packages +1.1, operational efficiency / in-house production +1.0)• Cost increase in manufacturing: -0.8 (Raw materials -0.2, Packages -0.6)• Change in sales promotion expenses：-1.3（Advertisement -0.1, Promotion expenses -1.2）

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

32

Food Business (Revenue/Core OP)<Revenue>(JPY billion)
2020

2021 forecast

YoY (Amount / %)Against Target

YoY (Amount / %)Asahi Group Foods

112.4

- 5.3

- 4.5%

- 0.9

128.4

5.2

4.2%

Other / elimination

11.1

- 0.2

- 1.9%

- 0.2

0.3

0.0

15.1%

123.5

- 5.5

- 4.2%

- 1.1

128.7

5.2

4.2%

Revenue<Core Operating Profit>(JPY billion)
2020

2021 forecast

YoY (Amount / %)Against Target

YoY (Amount / %)Asahi Group Foods

10.1

- 2.4

- 19.0%

0.2

11.2

0.3

2.8%

Other / elimination

0.8

- 0.4

- 30.1%

- 0.2

0.1

- 0.0

- 4.9%

Core Operating Profit

11.0

- 2.7

- 19.9%

0.1

11.3

0.3

2.8%

【2020】
・Revenue: -4.2% YoY decline mainly due to the sales decrease of Mintia brand, despite the sales increase of freezedried foods caused by consumption from staying at home.
・Core OP: -19.9% 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.
【2021】
・Revenue: Expected to increase by +4.2% YoY due to stronger sales of growing categories in new lifestyles and therollout of new Mintia products.
・Core OP: Expected to increase by +2.8% YoY due to sales increase and improving profitability through more efficientmanufacturing and logistics.

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

33

Overseas Business (Revenue ※constant currency basis)<Revenue (including liqour tax) *constant currency basis (based on previous year's FX rates)>(JPY billion)

2020

2021 forecast

YoY (Amount / %)Against Target

YoY (Amount / %)Europe business

352.0- 36.3- 9.3%

3.5

481.2

70.2

17.1%

Oceania business *

344.0

165.2

92.4%

26.8

447.7

108.6

32.0%

Southeast Asia business

44.4

- 0.5

- 1.1%

0.7

42.3

0.7

1.6%

Asahi International

78.5- 25.8- 24.7%

- 8.9

-

-

-

Other / elimination△ 19.1

- 1.3

-

- 3.4

0.6

- 0.6

- 50.8%

799.8

101.2

14.5%

18.8

971.8

178.9

22.6%

94.4

13.5%

29.1

995.6

202.7

25.6%

Revenue<Perfomance including foreign exchange imapct>
Revenue

793.0* CUB business has been consolidated since June 2020.

【Revenue (constant currency basis)】＜2020＞
・Europe: -9.3% YoY decline due to the sales decrease in the on-premise channel despite the solid sales of premium beer in the offpremise channel.
・Oceania：+92.4% YoY increase driven by the consolidation of the CUB business and the sales increase of RTD and carbonated drinks.
・Southeast Asia：-1.1% YoY decline due to the sales decrease of beverages except for dairy products in Malaysia.
・Asahi International：-24.7% YoY decline due to the lower sales volume in UK and other areas mainly in the on-premise channel.
＜2021＞
・ Europe: Expected to increase by +17.1% YoY due to recovery in the on-premise channel and sales expansion of premium beer andnon-alcoholic beverages in the off-premise channel.
・ Oceania: Expected to increase by +32.0% YoY due to sales increase mainly from core brands and the addition from CUB businessfor January-May.
・Southeast Asia: Expected to increase by +1.6% YoY due to recovery in demand by rolling out new products in line with thereopening of economic activities

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

34

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

2020

2021 forecast

YoY (Amount / %)Against Target

YoY (Amount / %)Europe business

59.6- 18.1- 23.3%

2.9

71.6

11.3

18.7%

Oceania business *

33.2

17.9

117.7%

9.4

70.3

37.3

113.3%Southeast Asia business

1.7

- 0.5

- 22.6%

0.4

2.1

0.7

51.5%

Asahi International

0.8

- 6.3

- 88.4%

- 1.9

-

-

-

Other / elimination

- 0.9

- 0.9

-

0.1

0.8

1.4

-

94.4

- 7.8

- 7.6%

10.9

144.8

50.7

53.9%

- 8.1

△ 8.0%

12.1

148.6

54.5

57.9%

Revenue<Perfomance including foreign exchange imapct>
Core Operating Profit

94.1* CUB business has been consolidated since June 2020.

【Core OP (constant currency basis)】＜2020＞
・Europe: -23.3% YoY decline due to the on-premise sales decrease and a deteriorated mix despite the control of various fixed costs.
・Oceania: +117.7% YoY increase driven by the consolidation of the CUB business while the worsening mix in the existing business by
the on-premise sales decrease.
・Southeast Asia: -22.6% YoY decline due to the worsening mix and rising prices of raw materials despite the control of advertisement
and sales promotion expenses.

・Asahi International: -88.4% YoY decline due to the sales decrease in on-premise channel and the worsening mix in the UK despite
the control of various fixed costs.
＜2021＞
・Europe: Expected to increase by +18.7% YoY due to recovery in sales volume and improved mix through premiumization while
intensified brand investment.
・Oceania: Expected to increase +113.3% YoY due to the addition of the CUB business for January-May and the creation of synergies
from the business integration.

・Southeast Asia: Expected to increase by +51.5% YoY due to recovery in sales volume and improvement in mix as well as control ofvarious fixed costs
Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

35

＜Reference＞FX Impact◆ FX impact on P/L (result and forecast)◆ FX sensitivity for 2021

(JPY billion)

Business

Currrency

2020

2021

Results

Forecast<Impact of 1 yen change (full year)>(JPY billion)

Currency

Assumption

RevenueCore OP

Europe

Euro

-0.4

4.4

Euro

123.0

±3.9

±0.6

Oceania

AUD

-4.9

20.1

AUD

77.0

±6.1

±1.0

-

-1.3

-0.7

Euro

-0.1

-

-

-0.1

-0.0

-6.8

23.8

Southeast Asia
Asahi International
Others
RevenueEurope

Euro

-0.1

0.7

Oceania

AUD

-0.2

3.2

-

-0.0

-0.0

Euro

-0.0

-

Others

-

0.0

0.0

Amortization of intangible assets

-

0.0

-0.5

-0.3

3.2

Southeast Asia
Asahi InternationalCore Operating Profit

Copyright © ASAHI GROUP HOLDINGS. All rights reserved.

* The above figures do not include the effect of
exchange rates on amortization of intangible assets.
* FX impact = The impact of converting local currency
results into yen (excluding trade impact)◆ Exchange Rate Trends(JPY)
Currency

2018

2019

2020

Euro

130.4

122.0

121.9

AUD

82.6

75.8

73.7

36

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.