Update of Medium- to LongTerm Management Policy

Business Overview for 2021
and Business Strategy for 2022

February 16, 2022

Executive Summary
Update of Medium- to Long-Term Management Policy➢ Our Medium- to Long-Term Management Policy was formulated by backcastingfrom megatrends➢ The policy is aimed at building a business portfolio that can respond to people’schanging conceptions of well-being, and further bolster core strategies covering
sustainability, digital transformation, R&D, and other areas

Overview for 2021
➢ Despite the adverse business environment resulting from the COVID-19
pandemic, we achieved record-high revenue, operating profit, and profit
attributable to owners of parent, mainly through our premium strategy, newvalue propositions, and operational streamlining➢ Our financial position improved more than expected owing to the creation ofsynergies from the integration of CUB Business in Australia, measures aimed at
maximizing cash flow, and other factors

Direction for 2022
➢ While taking into account risks such as resurgences in COVID-19 infections andhigher raw material costs, we will aim to achieve sales and profit growth in all
businesses and consolidate our recovery on the way to next fiscal year
➢ We will push ahead with concrete initiatives based on our updated Medium- to
Long-term Management Policy1Update of Medium- to Long-Term
Management Policy

Megatrend Analysis
After analyzing megatrends through to the year 2050, we predict that conceptions about human wellbeing will change in the intervening years. By backcasting from 2050 and engaging in broad-ranging
discussions we have identified the challenges the Asahi Group will need to tackle in the future.
2050
Megatrends

Ch a n g i n g
conceptionsof humanwell-being

Climate change
and depletion ofnatural resources
Changing
demographics
and shifts
in economic power
Technologicaladvancements© ASAHI GROUP HOLDINGS. All rights reserved.

2030
Key Megatrends

Challenges for Asahi Group Businesses

Health consciousness andheadwinds from alcohol related issues• Expanding beyond the framework of existing businesses into
areas of physical and mental health• New product propositions fusing our technology in Alcohol
Beverages and Non-alcohol Beverages, and conducting R&D into,and cultivating, alternatives to alcohol products

Growing diversification ofdefinitions of well-being• Responding to demand for further personalization andpremiumization• ・Giving tangible shape to potential value in anticipation ofchanges in behavior

Heightened awareness ofsustainability-related issues• Enhancing initiatives relating to the environment, communities,
etc.
• Generating various forms of new value to meet ethicalconsumption needs

Geopolitical changes, such as
shifts in economic growth
regions• Worldwide expansion of global brands• Further strengthening our financial position before investing in
expansion into new regions

Co-existence with evolving
technologies• Building new business models through the acceleration of digitaltransformation• Creating experiential value involving unique offline experiences2Medium- to Long-Term Management Policy:
Overview of Long-Term Strategies
Basic Concept behind Long-Term Strategies

Contribute to sustainable society and respond to changing conceptions of wellbeing
through delivering great taste and fun⚫

Ideal Business Portfolio: Sustainable growth of existing businesses centered on beer category
while expanding into new areas
・ Growth driven by global brands and premiumization in existing operating regions; expansion into new markets.
・ Growth in adjacent categories to capture demand from trends such as increasing health consciousness; creation anddevelopment of new businesses that draw on the Group’s capabilities.

⚫

Core Strategies: Promote core strategies aimed at achieving sustainable growth・ Integrate sustainability into management in order to positively impact both society and the Group’s businesses; contributing tosolving societal issues.
・ Achieve innovation in three key areas (processes, organization, and business models) by pursuing BX (business transformation)
through DX (digital transformation).
・ Increase the value of existing products and create new products and markets through bolstering R&D (research & development).

⚫

Strategic Foundation Strengthening: Consolidate the management foundations underpinninglong-term strategies
・ Advance human resource for executing core strategies and building an ideal business portfolio.
・ Enhance Group governance in order to create an optimal organizational structure; Group-wide sharing of best practices.

© ASAHI GROUP HOLDINGS. All rights reserved.

3

Ideal Medium- to Long-Term Business Portfolio
Growth of existing businesses centered on beer category while expanding into new areas⚫ Growth driven by global brands and premiumization in existing operating regions; expansion into new markets⚫ Growth in adjacent categories to capture demand from trends such as increasing health consciousness; creation anddevelopment of new businesses that draw on the Group’s capabilities● Utilizing and integrating

technology and know-how in

Non-alcohol
Beverages

Alcohol Beverages Business and● Promotion of premium

strategy● Proposing new added value indiversification and health(centering on beer
category)

BACs*

consciousness● Expansion of global

brands*BACs (Beer Adjacent Categories)
Categories adjacent to beer, such as RTD lowalcohol beverages, non-alcohol beer-taste beverages,
and adult soft drinks© ASAHI GROUP HOLDINGS. All rights reserved.

Food● Creating new products and services byharnessing yeast and lactic acidNon-alcohol Beverages Business

response to drink preference

Alcohol
Beverages

bacteria technologies, etc.

N e w p r o d u c t s ● Building technology-backed business
New services

models geared toward solving societal
issues● Expanding growth opportunities in new domains

Expansion to otherregions

mainly through drawing on the capabilities of the
Alcohol Beverages Business4Integrating Sustainability into Management
Positioning “Our Promise for the Future” as the Asahi Group’s sustainability story
To live up to this promise, we will continue to work on integrating sustainability into
management through four key actions.

Cheer the Future

To invigorate our precious future● Create Lasting Brand Value
For over 100 years, we have worked with the blessings and the power of nature to deliver on
our great taste promise to consumers around the world. We are proud that our products havehelped encourage people-to-people connections, create communities, and bring more fun to life
for everyone - a heritage we aim to continue well into the future.

● Adapt to the Future
We accept our special responsibility to manage the potentially harmful effects our business may
have on the environment and society at large. Going forward, we are committed to achieving
sustainable growth while pursuing sustainability as essential synonymous with pursuingbusiness itself.

● Actively Embrace Change
Envisioning a better future, we aim to build sustainable ecosystem and circular economy
through decarbonization and the effective use of water resources, connect people to theirwonderful communities, and create measures and drinking opportunities to reduce the harmful
use of alcohol, sharing ideas and technologies with stakeholders toward realization.

● Our Promise to the Future
We will continue to deliver on our great taste promise and bring more fun to life for everyone
by building value together with nature, community, and society at large for making the one andonly future shine. With our concept “Cheer the Future,” we aim to take action toward a betterworld for all.
© ASAHI GROUP HOLDINGS. All rights reserved.

5

Priority Policies and Themes of Sustainability Strategy
Realizing sustainable living for customers across the value chain
We will address these themes across our value chain to make an impact in our business andsociety with our products and services.
Respond to climate change

Investment Fields
Solar power generation facilities, greater
energy-saving efficiency, and development
and rollout of new fuel technologies*Investments of JPY 50bn or more through 2030

Respond to plastic issue

Investment Fields
Increased use of recycled PET plastic, anddevelopment and rollout of new container
technologies

Realize sustainable communities
through the creation ofpeople-to-people connections

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

Investment Fields

Investment Fields

Regional agriculture support andcommunity assistance activities

Marketing investment, and R&D targetinga reduction in inappropriate drinking© ASAHI GROUP HOLDINGS. All rights reserved.

6

Value Creation in Our Sustainability Strategy
Seek to mitigate risks and secure opportunities in an effort to generate both positive business
impacts and positive social impacts
Respond to
Climate Change

KPIs
＋

2030

SCOPE 1 & 2: 70% emissions
reduction
SCOPE 3: 30% emissions reduction● Expansion of eco-friendly
products

Creation of
Positive Value● Greater social awarenessand changes in behavior forclimate change0● Avoidance of productsupply/regulatory risks

Neutralization● CO2 emissions reductions－

Respond to
Plastic Issue

Realize Sustainable
Communities

Solution of Social
Issues2030• Invigoration of communities
through business• Expansion of employee
participation opportunities

2025● Expansion of products using
sustainable containers andpackaging● Virtuous cycle of businessthrough the creation ofconnections● Offering of diverse options
through stronger value
propositions● Circular economy in whichplastic resources arerecycled● Revitalization of local
communities and increased
well-being of people● Popularization of
responsible enjoyment of
alcohol

PET bottles: Use of 100% ecofriendly materials● Avoidance of productsupply/sales risks● Reduction in inappropriate
plastic waste● Avoidance of businessplatform vulnerabilities● Avoidance of decline of
agriculture and regional
economies

Achieve 15% low-alcohol andnon-alcohol sales composition
ratio (Group total)● Avoidance of productsupply/sales risks● Reduction of inappropriate
drinking● Business impacts ● Social impacts© ASAHI GROUP HOLDINGS. All rights reserved.

7

Digital Transformation Strategy
Achieve innovation in three key areas (processes, organization, and business models) by pursuing BX(business transformation) through DX (digital transformation)
Developing new business models, responding to changing conceptions of well-being, and creating
mechanisms for sustainable societies

DX=BX

Process
Innovation

Business
Transformation• Building a data platform by integrating theseparate data of all Regional Headquarters
and each organization• Improvements in the data management
process in order to maintain and improvedata quality

BusinessInnovation• Building personalization models to
respond to people’s desire forincreased well-being

Org.
Innovation• Building mechanisms to provide
services and disclose information to
fulfill our social responsibility* Investments of JPY 30 billion or more overthree years• Data-driven and agile “digital native
organization”• Strengthening incubation functions• Strengthening HR development/recruitment
and collaboration with external organizations© ASAHI GROUP HOLDINGS. All rights reserved.

8

R&D Strategy
Increase the value of existing products and create new products and markets throughbolstering R&D
Creating new value to cater to

Delivering physical and mental

changing consumer values

health to consumers•

Researching alternatives to alcohol andproducts that offer new value•

Developing products and technologythat establish our dominance in the
BACs

Alcohol

Mitigating environmental
and climate change risks tohelp enhance sustainability

Sustainability

Health &Wellness•

Providing evidence-based and“better for you” solutions•

Providing health value in new ways
(devices and services, etc.)

Developing extraordinary

New
Businesses“seeds” that grow into
new businesses•

World-leading technological developmentin the environment and energy fields andin the use of byproducts•

Creating new business “seeds” by
combining existing and new technologies
inside and outside the Group•

Minimizing the impact of rising ingredientcosts stemming from climate change•

Integrating new technologies & businessmodels© ASAHI GROUP HOLDINGS. All rights reserved.

9

Enhancement of Human Capital
Advance human resource for executing core strategies and building an ideal businessportfolio⚫ Advancing diversity, equity, and inclusion to foster an ideal corporate culture and boost engagement⚫ Continued nurturing of managers through systematic development programs⚫ Securing required new capabilities and personnel, and collaborating with external organizations
People Statement
Learning, growing, achieving TOGETHER
Safety and Well-being is our biggest priority

Everyone Matters is our core belief
Growth through Learning individually and collectively

Better together: Collaboration fuels our growth© ASAHI GROUP HOLDINGS. All rights reserved.

10

Key Medium-Term Strategies for Each Regional Headquarters
1. Expand the potential of the businesses through synergies and optimizing product portfolio to anticipate change.

Japan

2. Promote smart-drinking and other initiatives to meet diversifying needs; create high-value-added services.
3. Solve social issues such as carbon neutrality through business; optimize the supply chain across Japan.

1. Advance the premium beer strategy with expansion of the 5 global brands and focus on selective leading local brands.

Europe2. Accelerate premium growth beyond core lager - such as non-alcohol beer, RTDs and crafted beer.
3. Promote initiatives to reduce environmental impact, which entail the active use of renewable energy and the adoption ofrecyclable containers and packages.
1. Advance multi-beverage strategy through alcohol beverages and non-alcohol beverages with creating integration growthsynergies.

Oceania

2. Pursue health and well-being portfolio for our non-alcohol portfolio and innovations in growth areas such as non-alcoholbeer, hard seltzers, and RTDs.

3. Propose new sustainability-focused value through introduction of new containers, packaging, etc. Advance supply chain
management reforms.

Southeast Asia

1. Expand into growing markets of >600 million people in the region with the growth in Malaysia as the Cash Cow and using
our own brand to expand into other markets.
2. Set up new segments such as the plant-based product segment to gradually diversify portfolio into more premiumization
beverages and minimize dependency on Condense Milk.
3. Deliver sustainability agenda including rolling out eco-friendly packaging. Build value in partnership with local communities
through raw material procurement initiatives.

© ASAHI GROUP HOLDINGS. All rights reserved.

11

Expansion of Global Brands
Pursuing premium brand strategies and driving sustainable growth in line with market trends
through expansion and development of the 5 global brands
Global Super Premium Heroes

Scale Global Premium

Tactical International Brands

Priority super premium brands

Premium brand to be expanded
globally to drive scaleInternational brands (Superpremium Pilsner,
Premium Grolsch) to be developed selectively

Main Initiatives

Growth Guidelines through 2030

⚫ New Product Launches in 2022

⚫ 5-brand Total
CAGR: Approx. +10％

・Asahi Super Dry
CAGR： + mid-10% or more・Peroni Nastro Azzurro
CAGR： + low-10% or more

© ASAHI GROUP HOLDINGS. All rights reserved.

• Peroni Nastro Azzurro 0.0% (20 countries)• Asahi Super Dry extension product to be launched⚫ Global Sponsorships• Rugby World Cup 23: ASD Worldwide Partner• Aston Martin Formula One: PNA 0.0% Global Partner⚫ Development of Unified Global Campaigns• Asahi Super Dry “Go Beyond the Expected”• Peroni Nastro Azzurro “Live Every Moment”

12Medium-Term Guidelines for KPIs
2021 R e s u l t sCore Operating Profit

JPY 217.9 billion

・CAGR: High single digit*1

JPY 305.2

・CAGR: High single digit

Earnings Per Share (Adjusted*2)
Free Cash Flow*3

Guidelines from 2022 for Next 3 Years

JPY 319.1 billion

・Annual average of JPY 200 billion or higher*1 Constant Currency Basis in 2021
*2 The earnings per share guideline is on an adjusted basis excluding special temporary factors, such as business portfolio r estructuring and impairment losses.

*3 Free Cash Flow = Cash flows from operating activities – Cash used in investing activities (excluding M&A and other business restructuring)Core Operating Profit (JPY billion)
Adjusted EPS (JPY)329.0
40 0.035 0.0

FCF (JPY billion)
FCF (Excluding sales of assets and stocks)

310.4

305.2

262.2

319.1
30 0.030 0.025 0.0

196.4

221.4

213.0

196.5

25 0.0

217.9

173.0

140.3

160.7

154.1

2017

2018

2019

153.2

167.8

20 0.0172.3

20 0.0196.8

15 0.015 0.0194.9

10 0.010 0.0

50 .0
50 .0

0.0

123.1

0.0

2017

2018

© ASAHI GROUP HOLDINGS. All rights reserved.

2019

2020

2021

2020

2021

13

Medium-Term Guidelines for Financial Policy
Guidelines from 2022 Onward

Investment for Growth /Debt Reduction

Shareholder Returns

Net Debt/EBITDA• Prioritize allocation of free cash flow to the reduction of debt and work toenhance capacity for growth investments• Aim for Net Debt/EBITDA of around 3 times or less in 2024
(after deducting 50% of outstanding subordinated debt from net debt)• Stable dividend increases with the aim of achieving a payout ratio of 35%(aiming for future payout ratio of 40%)

*Calculated after deducting 50% of outstanding subordinated debt (JPY 300 billion) from net debt.

6.0
4.2
3.1

2.9

2018

2019

© ASAHI GROUP HOLDINGS. All rights reserved.

2020

2021

Approx. 32022(E)

2023(E)

2024(E)
14

Restructuring of SCM in Japan

Restructuring of Supply Chain Management in Japan(Alcohol and Non-alcohol Beverages Businesses)
Building an optimal supply chain management system with initiatives spanning the Alcohol andNon-alcohol Beverages Businesses
2022

2023

2024

2025

2026～

Production System for Beer, Beer-type
Beverages, and Soft Drinks
Hokkaido

January 2023:
March 2024: End
End-2024:
End-2025:
2026: Start ofEnd of operationsof operations
End of operations End of operations
operations
Kanagawa /(Nikka)NishinomiyaHakata BreweryShin-Kyushu
Shikoku Brewery
Nishinomiya
higashi DC
Brewery
Plant(tentative name)(1) Bolstering Environmental
Responsiveness⇒ Building a production system that
can handle multiple product types
and multiple container types(2) Improving Cost Competitiveness⇒ Optimizing production and distribution
systems(3) Bolstering Sustainability Strategy⇒ Expanding and enhancing
environment-friendly technologies andproduction facilities© ASAHI GROUP HOLDINGS. All rights reserved.

Gunma

Rokko

Approx. JPY 3 billion* Annual forecast for 2026
(compared to 2021)* After adjustment for increases inlogistics costs, etc.

Fukushima

Hokuriku<Cost Efficiency Benefits>

IbarakiOkayama

Kanagawa

HakataFujiyoshida* Beer-type only

<Environmental Target>
Carbon negative* In 2029* Target covers all Asahi Breweries
operations

Fujisan
Shikoku

Akashi

Suita

Nagoya: Breweries of Asahi Breweries, Ltd.
: Of the above, those scheduled for end of operations: Of the above, those scheduled to be transferred: Factories of Asahi Soft Drinks Co., Ltd.

15

Overview of Shin-Kyushu Brewery (tentative name)Operations scheduled to come online in 2026. Will feature next-generation production systems
and operate as a model brewery for the Asahi Group
Bolstering Environmental
Responsiveness• Greater production range (expanded to 30
products from 10)• Capacity for manufacturing RTD beverages,
Taruhai Club, and soft drinks• Capacity for manufacturing multiple types ofcontainers

Improving Cost
Competitiveness• 50% reduction in energy consumption• Productivity improvements with the installationof remote monitoring, automation, and othernew technologies• Improvements in overall cost efficiency,
including distribution

Bolstering Sustainability
Strategy• Innovation in manufacturing methods andgreater energy efficiency• Installation of CO2 recovery system and carbon
recycling technology• Installation of renewable energy facilities*Rendering• The brewery will be carbon negative (on a stand-alone basis) in 2026.
• Best practices of this brewery will be introduced to the Group’s other production bases.
© ASAHI GROUP HOLDINGS. All rights reserved.

16

Business Overview for 2021
and Business Strategy for 2022

Revenue / Core Operating Profit (2021 Results)(Constant Currency Basis*)(JPY billion)

2021
Results

ChangeYoY(Actual Currency Basis)
vs Forecast

2021
Results

ChangeYoY

vs Forecast

Alcohol Beverages Business

722.1- 24.8- 3.3%

- 2.4

722.1

- 24.8- 3.3%- 2.4

Non-alcohol Beverages Business

357.8

4.4

1.3%

- 1.4

357.8

4.4

1.3%

- 1.4

Food Business

125.9

2.4

2.0%

1.3

125.9

2.4

2.0%

1.3

Overseas Business

933.2

140.2

17.7%

- 13.5

1,017.6

224.6

28.3%

- 9.0

Europe Business

445.1

34.0

8.3%

- 15.9

474.4

63.4

15.4%

- 15.4

Oceania Business

446.6

107.5

31.7%

1.9

500.0

160.9

47.4%

5.2

Southeast
Asia Business東南アジア事業

40.9

- 0.7

- 1.7%

0.8

42.7

1.0

2.5%

1.7

Other
/ elimination
その他・事業内消去

0.6

- 0.6

- 50.7%

- 0.3

0.5

- 0.7

- 56.1%

- 0.4

106.0

1.3

1.2%

0.1

106.0

1.3

1.2%

0.1

- 93.3

0.4

-

1.4

- 93.3

0.4

-

1.4

2,151.7

123.9

6.1%

- 14.4

2,236.1

208.3

10.3%

- 9.9

Alcohol Beverages Business

70.8- 12.2- 14.7%0.2

70.8- 12.2- 14.7%0.2

Non-alcohol Beverages Business

33.1

5.3

19.2%

0.2

33.1

5.3

19.2%

0.2

Food Business

11.4

0.5

4.1%

0.1

11.4

0.5

4.1%

0.1

Overseas Business

147.0

52.9

56.2%

1.7

160.6

66.4

70.6%

2.6

Europe Business

70.8

10.5

17.4%

1.3

75.5

15.2

25.2%

1.6

Oceania Business

74.2

41.2

125.1%

0.1

83.1

50.1

152.0%

0.6

Southeast
Asia Business東南アジア事業

0.4

- 1.0

- 71.6%

0.2

0.4

- 1.0

- 70.4%0.3

Other/ elimination
その他・事業内消去

1.6

2.1

-

0.1

1.6

2.1

-

0.1

Other Business
Adjustmenet(corporate and elimination)

Revenue

- 0.1

1.0

-

1.1

- 0.1

1.0

-

1.1

Adjustmenet(corporate and elimination)- 26.7

- 5.4

-

- 0.1

- 26.7

- 5.4

-

- 0.1

Amortization of acquisition-related
intangible assets- 28.9

- 3.4

-

- 0.0

- 31.1

- 5.6

-

- 0.1

206.6

38.8

23.1%

3.2

217.9

50.1

29.9%

3.9

Other BusinessCore Operating Profit<Constant Currency Basis>➢ Revenue increased by 6.1% YoY in total
mainly due to an increase in revenue inOverseas Business, reflecting the effect of
the consolidation of CUB and a recovery inthe on-premise demand, despite a decrease
in revenue from Alcohol Beverages Business.
➢ Core Operating Profit increased 23.1% YoY
due to improved profitability in Non-alcohol
Beverages Business, improved mix andvarious cost reductions in Overseas Business,despite lower profit in Alcohol Beverages
Business.

<Actual Currency Basis>➢ Revenue increased by 10.3% YoY with theaddition of the effect of yen depreciation(JPY +84.4 billion).
➢ Core Operating Profit increased by 29.9%
YoY with the addition of the effect of yen
depreciation (JPY +11.4 billion).

*Figures calculated by converting foreign currency amounts for the year to yen using the exchange rate of the previous year

© ASAHI GROUP HOLDINGS. All rights reserved.

17

Revenue / Core Operating Profit (2022 Forecast)(Constant Currency Basis*)(JPY billion)

2022
Forecast

Change(Actual Currency Basis)2022
Forecast

YoY

Change<Constant Currency Basis>

YoY

Japan

1,331.6

112.2

9.2%

1,331.6

112.2

9.2%

Europe

565.2

90.8

19.1%

554.0

79.6

16.8%

Oceania

532.5

32.5

6.5%

522.8

22.8

4.6%

Southeast Asia

50.4

7.7

18.0%

49.4

6.7

15.7%

Other

6.3

0.3

4.9%

6.2

0.2

3.2%

- 13.9- 7.6-- 13.9- 7.6-

Revenue

2,472.0

235.9

10.5%

2,450.0

213.9

9.6%

Japan

111.4

7.9

7.6%

111.4

7.9

7.6%

Europe

79.7

4.2

5.6%

78.2

2.7

3.5%

Oceania

98.0

15.0

18.0%

96.2

13.2

15.9%

Southeast Asia

1.6

1.2

288.5%

1.6

1.2

281.1%

Other

Adjustmenet(corporate and elimination)

0.9

- 0.3

- 25.1%

0.9

- 0.3

- 25.3%Adjustmenet(corporate and elimination)- 17.7- 3.1-- 17.7- 3.1-

Amortization of acquisitionrelated intangible assets- 31.1- 0.0-- 30.5

0.5

-

242.8

24.9

11.4%

240.0

22.1

10.1%

Core Operating Profit➢ Revenue is expected to increase by 10.5%
YoY due to a certain recovery in the onpremise channel, improvement in thechannel mix, and continuation of thepremium strategy.
➢ Core Operating Profit is expected to increase
11.4% YoY due to various mix
improvements and strengthened costmanagement, despite higher raw material
costs.

<Actual Currency Basis>➢ Revenue is expected to increase 9.6% YoY
despite the negative impact of yen
appreciation (JPY -22.0 billion).
➢ Business profit is expected to increase
10.1% YoY despite the negative impact of
yen appreciation (JPY -2.8 billion).

*Figures calculated by converting foreign currency amounts for the year to yen using the exchange rate of the previous year
*The FX impact of Europe including the impact of converting the local currencies to Euro© ASAHI GROUP HOLDINGS. All rights reserved.

18

Operating Profit / Profit Attributable to Owners of Parent(JPY billion)

2021
Results

ChangeYoY

vs Forecast

2022
Forecast

Change<2021 Results>

YoY

2,236.1

208.3

10.3%

- 9.9

2,450.0

213.9

9.6%

Core Operating Profit

217.9

50.1

29.9%

3.9

240.0

22.1

10.1%

Adjustment item

- 6.0

26.6

-

- 3.5

- 22.5- 16.5-

Revenue

G ain (los s ) on s ales and retirement

31.1

29.2

-

1.7

6.0

- 25.0- 80.6%

Business integration expenses- 14.8

- 5.9

-

- 4.5

-

14.8

-

Impairment loss

- 13.4- 4.6-- 13.4-

13.4-

Others

- 8.9

7.9

-

12.7

- 28.5- 19.7-

Operating profit

211.9

76.7

56.8%

0.4

217.5

5.6

2.6%

- 9.8

- 2.2

-

0.1

- 10.3

- 0.5

-

0.7

0.4

141.0%

0.4

0.4

- 0.3

- 41.9%

-

2.3

-

-

-

-

-

Others

- 2.9

- 2.8

-

0.5

- 2.1

0.9

-

Profit before tax

199.8

74.4

59.4%

1.3

205.5

5.7

2.8%

- 46.0- 13.2-4.0- 59.0- 13.0-

Profit

153.8

61.2

66.1%

5.3

146.5

- 7.3

- 4.8%

Profit attributable to owners of parent

153.5

60.7

65.4%

5.0

146.5

- 7.0

- 4.6%

0.3

0.6

-

0.3

-

- 0.3

-

-

-

-

-

156.5

1.9

1.2%

of non c urrent as s ets

Finance income or loss
Share of profit (los s ) of inves tments ac c ounted for
us ing equity method
G ain (los s ) on s ales of inves tments
ac c ounted for us ing equity method

Income tax expense

Profit attributable to non-controlling interests
Adjusted profit attributable to owners of parent**Calculated from profit attributable to owners of parent excluding one-off special factors including business portfolio restructuring and impairment loss
*2022 forecast is adjusted on an after-tax basis for the loss of SCM restructuring in Japan. The YoY change for 2022 forecast is adjusted on an aftertax basis for the goodwill impairment in Europe and the lower tax expenses for restructuring in Southeast Asia in 2021 results.

© ASAHI GROUP HOLDINGS. All rights reserved.

➢ Operating profit increased by 56.8% YoY due
to higher Core Operating Profit and gain on
sales of non current assets, despite businessintegration expenses and impairment loss.
➢ Profit attributable to owners of parent
increased by 65.4% YoY due to higher
operating profit, despite higher financial loss
and income tax expense.

<2022 Forecast>➢ Operating profit is expected to increase by
2.6% YoY due to an increase in Core
Operating Profit, despite expenses
associated with SCM restructuring in Japan.
➢ Profit attributable to owners of parent is
expected to decrease by 4.6% YoY due to anincrease in income tax expense, despite anincrease in operating profit.
➢ Adjusted profit attributable to owners ofparent, excluding the loss on the SCM
restructuring, etc., is expected to increaseby 1.2% YoY.

19

Statement of Financial Position / Statement of Cash Flow
<2021 Results>(JPY billion)

2021
Results

Total assets

4,547.7

108.4

2.4%

73.7

4,500.0- 47.7- 1.0%

Total equity

1,759.1

241.3

15.9%

83.1

1,770.0

10.9

0.6%

Interest-bearing debt

1,596.2- 227.4- 12.5%- 73.81,483.0- 113.2- 7.1%Net DE ratio*

0.73- 0.24-- 0.080.67- 0.06-

Net Debt / EBITDA*

4.24- 1.79-- 0.24

3.64- 0.60-（Reference） EBITDA

328.5

59.1

21.9%

0.5

352.5

24.0

7.3%

ChangeYoY

vs Forecast

2022
Forecast

ChangeYoY*Calculated after deducting 50% of outstanding subordinated debt (JPY 300 billion) from net debt

Operating cash flow

337.8

62.0

-

55.8

298.0

- 39.8-Investing cash flow

- 14.3

1,229.0-

29.2- 83.0- 68.7-

Financing cash flow

- 320.3- 1,277.1-- 83.3- 215.0

105.3

-

319.1

122.3

-

98.6

215.0

- 104.1

-

109

3

-

-

111

2

-

36.0%

- 17.9%-- 1.2%

38.4%

2.4%

-

-

-

-

35.9%

0.2%

-

Free cash flow
Dividend per share (JPY)Dividend payout ratio (%)
Adj. Dividend payout ratio (%)* -*Calculated based on adjusted profit attributable to owners of parent© ASAHI GROUP HOLDINGS. All rights reserved.

➢ B/S: Total assets increased by JPY 108.4
billion from the end of the previous year
mainly due to an increase in goodwill andintangible assets resulting from yen
depreciation.
➢ B/S: Interest-bearing debt decreased by JPY
227.4 billion due to increase in Core
Operating Profit and measures to expand
cash flow.
➢ C/F and Dividend: Generated cash throughprofit generation, reduction of working
capital, and sales of non-operating assets,
and increased annual dividend by 3 yen per
share.

<2022 Forecast>➢ B/S: Repay more than JPY 110.0 billion ofinterest-bearing debt by enhancing cash
generating capability, and lower Net
Debt/EBITDA to about 3.6 times.
➢ C/F and Dividend: Generate free cash flow of
JPY 215.0 billion through profit generationand sales of non-operating assets, andincrease annual dividend by 2 yen per share.

20

Sales Trend by Region
Alcohol Beverages (Japan)*Value basis (Beer-type Beverages total)

2021 Revenue: -4% YoY

40%
30%
20%
10%
0%

-10%

Jan Feb Mar Apr May Jun

Jul

Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Jul

Aug Sep Oct Nov Dec

-20%

-30%

・The on-premise market was sluggish in the January through March period
due to declaration of further states of emergency in some regions.
・Sales improved in April partly due to impact of launch of Asahi Super Dry
Nama Jokki Can, but further states of emergency meant bars andrestaurants in some regions refrained from serving alcohol.
・States of emergency were lifted in some regions in June, but declared again
in July.
・All states of emergency were lifted completely in October and bars andrestaurants began serving alcohol again.

-40%

Europe*Volume basis (Alcohol Beverages total)

2021 Volume: +2% YoY

40%

30%
20%

10%
0%
-10%

Jan Feb Mar Apr May Jun

Jul

Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Jul

Aug Sep Oct Nov Dec

-20%
-30%

-40%

*Based on the integration with Asahi International Ltd from January 2021

Australia*Volume basis (Alcohol Beverages total)

2021 Volume:
low single-digit growth YoY

40%

30%
20%
10%

0%
-10%

Jan Feb Mar Apr May Jun

Jul

Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Jul

Aug Sep Oct Nov Dec

-20%
-30%

-40%

*Calculated including the former CUB for reference© ASAHI GROUP HOLDINGS. All rights reserved.

・ At the beginning of 2021, sales volume was affected by restrictions related to
COVID-19. Situation in March 2021 vs. March 2020 improved with business
adapting well to the new trading environment, still, results were affected by
restrictions imposed.
・ Re-opening of On Trade operations since April/May was allowed through loosened
COVID restrictions.
・ In July/August, the peak season, demand impacted primarily due by poor
weather conditions across key markets.
・ Since November restrictions were again tightened, however, positive trend vs.
2020 was continued, rebalancing volume between On Trade and Off Tradechannel.

・There was a sharp increase in April and May 2021 reflecting a rebound fromthe year-earlier lockdown
・Lockdowns were imposed in Sydney and Melbourne in the Jul-Sep period
and bars and restaurants were closed with the exception of take out
services, etc.
・Owing to the rising vaccination rate, the lockdowns in Sydney andMelbourne were lifted in October and bars and restaurants reopened.
Restrictions were subsequently gradually eased and almost completely lifted
for fully vaccinated people.

21

Japan: Overview and Direction(JPY billion)

2021
Results

Revenue

1,205.8- 18.0Core OP

115.3

- 6.4

Changevs Forecast

2022
Forecast

Change- 1.5%- 2.5

1,331.6

112.2

9.2%

- 5.3%

0.5

111.4

7.9

7.6%

YoY

YoY

<Overview for 2021>
Alcohol Beverages Business: Strong marketing investment in core brands and growing categories,
development of new containers, and creation of new markets
Non-alcohol Beverages Business: Product mix improvement owing to core brand selection andconcentration and better cost efficiency due to higher in-house production ratio
Food Business: Solidification of category portfolio, and stronger new value propositions to respond tochanges in consumer needs<Direction for 2022>
Alcohol Beverages Business: Reinforce our strengths in growing markets, further expand sales in newmarkets, and advance fundamental profit structure reforms
Non-alcohol Beverages Business: Further improve product mix by bolstering strengths and propose newvalue in anticipation of changes in demand
Food Business: Improve earnings through expanding sales, build a new platform for growth, andstreamline costs by optimizing inventory levels© ASAHI GROUP HOLDINGS. All rights reserved.

22

Japan (Alcohol Beverages Business): Beer Initiatives
Asahi Super Dry
・First full renewal in 36 years since launch・Asahi Super Dry Nama Jokki Can production
capacity boosted fourfold YoY

・Sharp increase in buyers of canned Asahi Super Dry(million)

Source: Asahi estimates

Asahi Nama Beer “Maru F”
・Established as second beer brand

Reference: YoY sales of canned beer and canned new genre products (Market)
40%

30%
20%
10%
Beer

-20%

Dec

Oct

Nov

Sep

Jul

Aug

Jun

Apr

May

Mar

Jan

Feb

Dec

Oct

Nov

Sep

Jul

2020

Aug

Jun

Apr

May

Mar

Jan

-10%

Feb

0%

New Genre

2021

-30%

-40%

© ASAHI GROUP HOLDINGS. All rights reserved.

Source: Intage SRI+ data for canned beer and canned new genre product markets
Estimated YoY sales volume for Jan 2020–Dec 2021
Seven channels: supermarkets, convenience stores, discount liquor stores, home improvement stores,
drugstores, general liquor stores, and wholesale liquor stores

23

Japan (Alcohol Beverages Business): Smart Drinking Initiatives⚫ Bolstering initiatives aimed at further expanding the
newly created minimal alcohol market
・Enhancing communication aimed at people who do not, or cannot, drink alcohol(joint venture company, Smart Drinking Co., Ltd., established by Asahi Breweries
and Dentsu Digital)

Reference:
Estimated market Value of non-alcoholbeer-taste beverages and minimal alcohol
beverages (2nd half 2021)

350
300

・Further expanding product portfolio・Strengthening rollout in both off-premise and on-premise markets

Non-alcoholbeer-taste
beverages total

250(incl. two Beery products)

200+20% YoY

150

Excluding
two Beeryproducts+9% YoY

100
50
0
2020

2021

Source:Intage SRI+
Five channels: supermarkets, convenience stores, discount liquor stores,
drugstores, and home improvement stores
Estimated sales for non-alcohol beer-taste beverages market
Unit: 100 million yen
Period: July through December 2020 and 2021

© ASAHI GROUP HOLDINGS. All rights reserved.

24

Japan (Non-alcohol Beverages Business): Main Initiatives⚫ Carbonated soft drinks initiatives
Record-high sales volume for both
Mitsuya and Wilkinson

YoY (market)
110%

109%

YoY (Asahi)

Launching new refreshing products to cater to changing
demand107%2022 Forecast＋5.5％ (volume
basis)

103%

MitsuyaWilkinson

+2%

+5%

2021 YoY(volume basis)

100%

101%
96%

96%

90%

80%
2019

2020

2021

*Source: Inryou-souken⚫ Responding to rising health consciousness and stay-at-home demand
Strengthening product portfolio to meet growing health-related needs
during the COVID-19 pandemic

Todoku Tsuyosa no
Nyusankin W

Juroku-cha

+25%

+3%

2021 YoY(volume basis)2021 YoY(volume basis)© ASAHI GROUP HOLDINGS. All rights reserved.

Further expanding range of label-less products with theuse of cutting-edge technology

Label-lessE-commercechannel+206% +27%
2021 YoY(volume basis)

25

Japan (Food Business): Main Initiatives⚫ Initiatives aimed at a Mintia sales recovery
・Enhancing the product’s intrinsic value of instant refreshment

・Broadening product range to cater to new consumption scenarios⚫ Creating new value in core categories as people embrace the “new normal”

Ippon Manzoku Bar

Dear-Natura

Amano Foods (miso soup)

＋16％

＋14％

＋11％

2021 YoY(value basis)2021 YoY(value basis)2021 YoY(value basis)© ASAHI GROUP HOLDINGS. All rights reserved.

26

Europe: Overview and Direction（JPY billion）

2021
Results

ChangeYoY

vs Forecast

2022
Forecast

ChangeYoY

Revenue

445.1

34.0

8.3%

- 15.9

565.2

90.8

19.1%

Core OP

70.8

10.5

17.4%

1.3

79.7

4.2

5.6%

*constant currency basis (based on previous year's FX rates)<Overview for 2021>⚫ The On Trade recovery, coupled with the continuing premiumization strategy, has lifted top
line performance and profitability⚫ Challenge: Create growing categories in response to changes in consumer needs and reform
earnings structure to address cost

<Direction for 2022>⚫ Price and cost management which the European business has a track record of executing
successfully, will be the key to tackle significant cost increases⚫ Strategy for top line lead growth remains with continued On Trade recovery, innovations anddisproportionate growth expected to come in segments such as NAB, FNAB or Flavoured beer

© ASAHI GROUP HOLDINGS. All rights reserved.

27

Europe: Overview and Main Initiatives
2022（E）

2%-3%

44,812

9%

2,936

9%

-3%

3,446

18%

581

16%

1%

608

6%

2021

Sales Volume41,262Net Sales (exc liquor tax)
Core OP*1＜Overview by Channel＞

Against Target*3（Khl／million Euro）

YoY*2

YoY*2

2021
Off-premise

YoY（volume basis）- low single digit

On-premise+10-15%

Total

＋2%

*Excluding the impact of currency translation of local currencies into Euro
*1 Core OP before deduction of one-off cost
*2 Comparison in FX rate of the same period of the previous year
*3 Comparison in budget FX rate

⚫ Initiatives for Premium Beer Brands⚫ Initiatives for NAB<Poland>・Continuation of success with Kozel, >25% growth YoY・Launch of Flavoured RTD Hardmade in 2021, combinedwith growth of Captain Jack, sees >100% growth in
Flavoured category<Romania>

YoY in 2021
(volume basis)+8％

Composition

Approx. 5％・Peroni Nastro Azzurro continues strong performance,with three year CAGR >50%

<United Kingdom>・Piccadilly Circus Lights helps drive Peroni Nastro
Azzurro grow >30% and gain share
・Asahi Super Dry continues momentum +>60%
outperforming the market© ASAHI GROUP HOLDINGS. All rights reserved.

28

Sales Trend in Major Countries (Europe)
Czech

2021：Sales Volume -1％
FY2019 ：On-premise Ratio approx.40％

Poland＜Status of On-premise Reopening＞
May 15：Outdoor open
May 28：Indoor open （limit people inside）＜Status of On-premise Reopening＞
May 17：Outdoor open
May 31：Indoor open（limit people inside）
・ On-premise: In Q4, volume increased as the demand partially recovered comparing
to severe COVID restrictions in 2020. It also exceeded the previous year's levelfrom a full year perspective.
・ Off-premise: In Q4, volume decreased partially due to a shift in demand to Onpremise, and it was lower than the previous year’s level on full year basis, althoughpremiumization continued.

Italy

2021：Sales Volume +3％
FY2019 ：On-premise Ratio approx.40％＜Status of On-premise Reopening＞
April 26：Outdoor open
June 1：Status of indoor varies by region（Limit people inside）
・ On-premise: In Q4, volume increased as the demand partially recovered comparing
to severe COVID restrictions in 2020. It also exceeded the previous year's levelfrom a full year perspective.
・ Off-premise: In Q4, volume decreased partially due to a shift in demand to Onpremise, but improved on the previous year’s level on full year basis and thepremiumization trend continued.

© ASAHI GROUP HOLDINGS. All rights reserved.

2021：Sales Volume -2％
FY2019 ：On-premise Ratio Mid-single Digit

・ On-premise: In Q4, volume increased as the demand partially recovered comparing
to severe COVID restrictions in 2020. It also exceeded the previous year's levelfrom a full year perspective.
・ Off-premise: In Q4, volume decreased, reflecting the full year trend, however
premiumization continued

UK

2021：Sales Volume +26％
FY2019 ：On-premise Ratio approx.60％＜Status of On-premise Reopening＞
April 12：Outdoor open
May 17： Indoor open（July 19 completely lifting restrictions）
・ On-premise: In Q4, volume increased materially as the demand partially recovered
comparing to severe COVID restrictions in 2020. It also exceeded the previous
year's level from a full year perspective.
・ Off-premise: Despite the shift in demand to On-premise in Q4, sales volume
increased thanks to premium brands performance. Full year volume was also
higher than the previous year29

Oceania: Overview and Direction（JPY billion）

2021
Results

ChangeYoY

vs Forecast

2022
Forecast

ChangeYoY

Revenue

446.6

107.5

31.7%

1.9

532.5

32.5

6.5%

Core OP

74.2

41.2

125.1%

0.1

98.0

15.0

18.0%

*constant currency basis (based on previous year's FX rates)<Overview for 2021>⚫ Strengthen our competitive advantage by enhancing brand value and creating
integration growth synergies, particularly for our core brands⚫ Challenge: Expansion of our presence in the craft beer market and optimizing SCM to
respond to a changing environment<Direction for 2022>⚫ Promote multi-beverage strategy including Revenue Growth Management and create
integration growth synergies⚫ Creation of new revenue opportunities by strengthening investment in growing
categories such as non-alcohol beer

© ASAHI GROUP HOLDINGS. All rights reserved.

30

Oceania: Overview and Main Initiatives(million AUD)
Alcohol Beverages *1

2021
ResultsYoY *3

2,966

vs Forecast

41%

2022
Forecast

0%

3,185

<Australian Alcohol Beverages: Overview by Channel>

YoY

2021 Results

7%
Off-premise

On-premise

Total-Low single digit+Approx 20%+Low single digit(YoY)
Non-alcohol Beverages *1

1,185

7%

1%

1,248

5%

Net Sales (exc liquor tax) *1

4,150

29%

0%

4,433

7%

Core Operating Profit *2

1,037

73%

0%

1,188

15%

Sales Volume* Sales Volume (Total) 2022 Forecast: +3%* Calculated based on the prev. year's results including the former CUB.

*1 Based on net sales value excluding container deposite*2 Core OP before deduction of one-off cost
*3 Figures for the prev. year of the former CUB reflect from Jun to Dec 2020 results after the acquisition.

⚫ Expansion of Contemporary Beer・ Strengthen Super Dry and Peroni[Growth comparison in 2021*]
Beer
Market*Great
Northern^

+2%

+12%

Jan-Nov 2021
Source: *Jan-Nov 2021 Australian Taxation Office,volume basis, YoY^Jan-Nov 2021 YOY sales volume growth© ASAHI GROUP HOLDINGS. All rights reserved.

⚫ Integration Synergies

Sales Volume+6%* Average of the 2 brands, YoY

・ Expansion of Non-alcohol Beverages sales
in the on-premise channel of Alcohol Beverages
Great Northern
Super Crisp

Number of Outlets(YoY)

approx. +90%

・ Expand local production of Super Dry and Peroni (from 2021)

31

Southeast Asia: Overview and Direction(JPY billion)

2021
Results

ChangeYoY

vs Forecast

2022
Forecast

ChangeYoY

Revenue

40.9

- 0.7

- 1.7%

0.8

50.4

7.7

18.0%

Core OP

0.4

- 1.0

- 71.6%

0.2

1.6

1.2

288.5%*constant currency basis (based on previous year's FX rates)<Overview for 2021>⚫ Product mix improvement owing to brand strategies etc. that are responsive to changes inmarkets, with focus on Malaysia⚫ Challenges: the establishment of a high value-added brand portfolio to counter various
different cost increases, as well as the optimization of distribution<Direction for 2022>⚫ Stronger rollout of high value-added products centering on own brands and expansion ofsites for installation of vending machines⚫ Concentrated investment in core brands, as well as execution of measures to boost
production line capacity utilization rates, plus streamlining of distribution© ASAHI GROUP HOLDINGS. All rights reserved.

32

Sustainability: Initiatives in Key Areas of Focus
Respond to climate change

Europe (Czechia)

Oceania・ Conclusion of a long-term green heat
supply contract for the Pilsner Urquell
brewery・ Installation of Australia’s biggest
brewery solar project at the Yatala
Brewery in the state of Queensland

・ The brewery is now using green heat in
the manufacturing process

・ Australia’s most iconic beer, Victoria
Bitter, is proudly brewed with 100%
offset solar electricity

Respond to plastic issue

Japan・ Recycled plastic through chemical
recycling will be used for 100% of
the plastic for some types of large
PET bottles from April 2022.
・ Approximately 40% of annual large
PET bottle production volume at
Asahi Soft Drinks will use thisrecovered PET plastic© ASAHI GROUP HOLDINGS. All rights reserved.

Oceania・ The formation of a cross-industry joint
venture, including with a competitor andother leaders in recycling and thecircular economy, to build two PET
recycling plants in Australia
・ The rPET facilities, will be the largest inAustralia, and will recycle the equivalentof 2 billion PET bottles each year
Plant 1: Completion in early 2022
Plant 2: Completion in 2023

33

Sustainability: Initiatives in Key Areas of Focus
Realize sustainable communities throughthe creation of people-to-people connections

Europe (Czechia)

Southeast Asia

・ The “For Hops” project to support hop
farmers kicked off in collaboration with
Microsoft and other companies

・ Vending machines being leased for freefor 3-month periods to small andmedium-sized local businesses impacted
by COVID-19

・ The project aims to harness cuttingedge technologies to establish efficientirrigation systems

・ Initiative drew a big media response,
we increased our social media followers,
and received enquiries from many small
and medium-sized businesses

Reduction in inappropriate drinking/ Solution of social issues
through creation of new drinking opportunities© ASAHI GROUP HOLDINGS. All rights reserved.

Japan

Europe (Italy)

・ A joint venture company, Smart
Drinking Co., Ltd., was set up
between Asahi Breweries and Dentsu
Digital・ Three tanks with the capacity to store
up to 2,000 hectoliters of non-alcoholbeer installed together with a new dealcoholization facility

・ The joint venture will leverage IT topromote smart drinking and greater
diversity of drinking styles

・ Investment to expand the non-alcohol
beverages portfolio is being increased34

ReferenceJapan＜2021 Results: Core Operating Profit＞(JPY billiion)

2021
Results

Asahi Breweries Revenue
Other/elimination in segment
Alcohol Beverages BusinessAsahi Soft Drinks
Other/elimination in segment
Non-alcohol Beverages BusinessAsahi Group Foods
Other/elimination in segment
Food Business
Other/elimination in segment
Revenue
Asahi Breweries Revenue
Other/elimination in segment
Alcohol Beverages BusinessAsahi Soft Drinks
Other/elimination in segment
Non-alcohol Beverages BusinessAsahi Group Foods
Other/elimination in segment
Food Business
Other/elimination in segment
Core Operating Profit© ASAHI GROUP HOLDINGS. All rights reserved.

ChangeYoY

vs Forecast

2022
Forecast

ChangeYoY

720.5- 24.8- 3.3%

- 2.4

-

-

1.7

- 0.1

- 4.0%

0.0

-

-

-

722.1

- 24.8- 3.3%

- 2.4

809.3

87.1

12.1%

357.8

4.4

1.3%

- 1.4

-

-

-

-

➢ Alcohol Beverages: Profit declined by 14.7%
YoY due to the impact of lower sales andincreased advertising and sales promotion
expenses, despite efforts to improve cost
efficiency.
➢ Non-alcohol Beverages: Profit increased by
19.2% YoY due to higher sales, improved
mix and cost efficiency, etc.

-

-

-

-

-

-

-

357.8

4.4

1.3%

- 1.4

373.9

16.1

4.5%

125.5

2.3

1.9%

1.2

-

-

-

0.4

0.1

46.5%

0.0

-

-

-

125.9

2.4

2.0%

1.3

127.7

1.8

1.4%

－

－

－

－

20.7

7.1

52.7%

－

－

－

－

1,331.6

112.2

9.2%

＜2022 Forecast: Core Operating Profit＞

70.4
0.3
70.8
33.1
33.1
11.3
0.1
11.4
－

- 12.30.1- 12.2
5.3
5.3
0.4
0.0
0.5
－

- 14.9%45.0%- 14.7%
19.2%
19.2%
3.9%
23.0%
4.1%
－

- 0.0
0.2
0.2
0.2
0.2
0.1
0.0
0.1
－

78.0
33.2
12.3
△ 12.1

7.2
0.1
0.9
- 0.2

10.2%
0.2%
7.4%
-

➢ Alcohol Beverages: Profit increase by 10.2%
YoY, mainly due to higher sales, despite
rising costs such as raw materials,
advertising and sales promotion expenses.

－

－

－

－

111.4

7.9

7.6%

➢ Food: Profit increased by 4.1% YoY due tohigher sales and improved efficiency inadvertising and sales promotion expenses,
etc.

➢ Non-alcohol Beverages: Profit increase by
0.2% YoY due to sales increase and effect of
in-house production, despite rising costs for
raw materials, etc.
➢ Food: Profit increase by 7.4% YoY, due tohigher revenue and more efficient use ofadvertising and sales promotion expenses,
despite rising costs for raw materials, etc.

35

Japan (Alcohol Beverages: Revenue / Sales Volume)＜2021 Results＞(JPY billion)*Before rebate deduction

2021
Results

vs Forecast

2022
Forecast

Beer-type beverages

538.7- 22.6- 4.0%

- 5.4

602.0

63.6

Whiskey and spirits

49.4

- 3.2

- 6.0%

2.0

53.0

3.6

7.3%

RTD low-alcohol beverages

36.8

- 9.4

- 20.4%

- 1.3

51.0

14.2

38.4%

Wine

42.6

2.4

6.0%

1.6

42.2

- 0.4

- 0.9%

Shochu

20.6

- 2.8

- 11.9%

0.3

19.0

- 1.6

- 7.6%

Non-alcohol Beer/RTD

40.3

8.2

25.7%

- 0.5

50.5

10.2

25.2%

vs Forecast

2022
Forecast(Million of cases)

2021
Results

ChangeChangeYoY

YoY

ChangeChange

YoY

11.8%

YoY

Super Dry

60.82

- 4.35- 6.7%- 0.18

70.70

9.88

Style Free

12.46

0.81

7.0%

- 0.04

13.00

0.54

4.3%

Clear Asahi

15.47- 2.20- 12.5%- 0.0315.00- 0.47- 3.0%

Bottle

C an

Keg

(YoY)
*Volumebasis

Beer-type beverages

-28%

+1%

-27%

Beer-type

Beer

-28%

+11%

-26%

Beer

(YoY)
*Volume basis2021 Results© ASAHI GROUP HOLDINGS. All rights reserved.

16.2%(Ref.) Beer-type Market
2021

2022

Approx. -5% Approx. +3%-1～-2%+11～12%

HapposhuApprox. +3%0～-1%

New Genre

Approx . -11%

-4～-5%➢ Beer-type beverages: Revenue
decreased by 4.0% YoY due to adecrease in demand for the on-premisechannel and celebratory occasions, aswell as a contraction in the new-genre
market.

➢ Revenue increased in wine due tostrong performance by Enoteca, also
revenue increased in non-alcoholbeer/RTD due to strong sales of Dry
Zero and the effect of the launch ofminimal alcohol products.

＜2022 Forecast＞➢ Beer-type beverages: Revenue increaseby 11.8% YoY due to full renewal ofSUPER DRY and sales expansion of
ASAHI Nama Beer in addition to therecovery of the on-premise channel.

➢ Revenue increase in RTDs due tostrengthened development of productswith new value propositions, also
revenue increase in non-alcoholbeer/RTD due to expansion of theminimal alcohol category.

36

Japan (Alcohol Beverages: Details of Changes in Profit)(JPY billion)

2021
Results

ChangeChange in sales, category and container mix-

Cost reduction in manufacturing
Cost increase in manufacturing

YoY

vs Forecast

2022
Forecast

Change

YoY

- 1.7

- 1.0

-

-

2.8

0.0

-

1.3

-

- 2.6

0.0

-

- 9.4

Advertisement and Sales promotion expenses-- 11.5

0.5-- 12.2Other expenses

-

0.5

0.4

-

- 6.8

Asahi Breweries

70.4- 12.3- 14.9%

- 0.0

77.6

7.2

10.2%

Other/elimination in segment

0.3

0.1

45.0%

0.2

0.4

0.0

12.1%

70.8

- 12.2- 14.7%

0.2

78.0

7.2

10.2%

Core Operating Profit

34.3＜2021 Results＞＜2021: Factors Contributing to Increase/Decrease＞• Change in sales and others: -1.7 (Sales volume decrease in beer-type -10.1, Sales increase in other alcohol
beverages ＋2.1, Change in category and container mix and etc.)• Cost reduction in manufacturing:＋2.8 （Raw materials ＋0.8, Other than beer-typed +0.7, Disposal +0.5,
etc.）➢ Profit decreased by 14.7% YoY, mainly
due to the impact of lower sales andincreased advertising and sales
promotion expenses invested mostly inthe beer and minimal alcohol categories,
despite efforts to reduce variable costs
and improve efficiency of otherexpenses.

• Cost increase in manufacturing: -2.6 (Raw materials -1.5, In other than beer -0.2, Transportation -0.7, etc.)• Increase in sales promotion expenses: -11.5 (Advertisement -12.8, Promotion +1.3) (Beer-type -6.7,
Other -4.8)＜2022 Forecast: Factors Contributing to Increase/Decrease＞• Change in sales and others: +34.3 (Sales volume increase in beer-type +23.3, Sales increase in otheralcohol beverages +14.2, Change in category and container mix and etc.)• Cost reduction in manufacturing: +1.3 (Other than beer-type +0.7, Transportation +0.4, etc.)＜2022 Forecast＞➢ Profit increase by 10.2% YoY due tohigher sales mainly of beer, despite
higher variable costs mainly in raw
materials and rising advertising, sales
promotion and other expenses.

• Cost increase in manufacturing: -9.4 (Raw materials -7.3, In other than beer -0.6 , Transportation -1.2, andetc.)• Increase in sales promotion expenses: -12.2 （Advertisement -8.3, Promotion expenses -3.9) (Beer-type -8.3,
Other -3.9)© ASAHI GROUP HOLDINGS. All rights reserved.

37

Japan (Non-alcohol Beverages: Sales Volume)(Millions of cases)

2021
Results

ChangeYoY

vs Forecast

2022
Forecast

ChangeYoY

Carbonated drinks

80.32

2.11

2.7%

- 0.7884.51

Lactic acid drinks

42.18- 1.61- 3.7%- 0.57

43.11

0.93

2.2%

Coffee35.38- 0.08- 0.2%- 0.4735.22- 0.16- 0.5%

Tea

37.16

2.10

6.0%

1.01

38.92

1.76

4.7%

Mineral Water

15.58- 0.89- 5.4%

0.13

16.70

1.12

7.2%

Fruit juice

14.56

0.22

1.6%

0.41

13.74

- 0.82- 5.6%

Other drinks

25.51

0.15

0.6%

0.31

31.30

5.80

22.8%

Sales Volume

250.68

2.01

0.8%

0.03

263.50

12.82

5.1%

vs Forecast

2022
Forecast

- 1.4

373.9

(JPY billion)
Revenue

2021
Results

Change

YoY

357.8

4.4

1.3%

By channel(YoY)*Volumebasis

By container

4.19

Change

16.1

5.2%

YoY

＜2021 Results＞➢ The market has recovered from COVID19, but the sales increase was about
1% YoY due to poor weather conditions
at the peak of the period.
➢ Our sales volume increased by 0.8%
YoY due to strong sales of carbonateddrinks, tea drinks, and fruit drinks,
despite a decrease in sales of lactic aciddrinks and mineral water.

4.5%＜2022 Forecast＞(YoY)*Volumebasis

2021
Results

2021
Results

Vending machine

0.6%

Can

- 0.8%

CVS- 1.2%

PET total

2.0%

SM

- 1.2%

Large PET

- 4.1%

Small PET

5.3%

© ASAHI GROUP HOLDINGS. All rights reserved.

(YoY)*Volume
basis
Total

(Ref) Market
2021

2022

Approx. 1%Approx. 2%➢ The market is expected to grow by 2%
YoY, mainly due to the gradual recovery
from the COVID-19.

➢ Our sales volume is expected toincrease by 5.1% YoY due to therenewal of main brands and the active
launch of new products in the sugarfree category.

38

Japan (Non-alcohol Beverages: Details of Changes in Profit)(JPY billion)

2021
Results

ChangeChange in sales, category and container mix-

Cost reduction in manufacturing
Cost increase in manufacturing

YoY

vs Forecast

2022
Forecast

Change

YoY

5.2

- 0.5

-

-

3.2

0.2

-

1.5

-

- 0.7

0.1

-

- 6.9

Advertisement and Sales promotion expenses

-

- 0.6

0.3

-

- 0.6

Other expenses

-

- 1.8

-

-

- 2.0

Asahi Soft Drinks

33.1

5.3

19.2%

0.1

33.2

0.1

0.2%

-

-

-

-

-

-

-

33.1

5.3

19.2%

0.1

33.2

0.1

0.2%

Other/elimination in segment
Core Operating Profit

8.1＜2021 Results＞＜2021: Factors Contributing to Increase/Decrease＞• Change in sales and others: +5.2 (Sales volume increase +4.3, Change in category and container mix,etc.)

➢ Profit increased by 19.2% YoY due tothe effect of higher sales, including
increased volume and improved unit
price, as well as improvements invarious mixes (category, container,
channel) and in-house manufacturing
ratio.

• Cost reduction in manufacturing: +3.2 (Raw materials +0.3, Packages +2.0, Operational efficiency / inhouse production +0.9 and etc.)＜2022 Forecast＞• Cost increase in manufacturing: -0.7 (Raw materials -0.1, Packages -0.6, etc.)➢ Profit increased by 0.2% YoY due to theimpact of a significant increase in raw
material costs, despite efforts toimprove capacity utilization and review
the procurement of some raw materials,
in addition to the effect of increased
sales and various mix improvements.

• Change in sales promotion expenses: -0.6 （Advertisement -0.4, Promotion expense -0.2）＜2022 Forecast: Factors Contributing to Increase/Decrease＞• Change in sales and others: +8.1 (Increase in sales volume +7.9, Change in category and container mix,etc.)
• Cost reduction in manufacturing: +1.5 (Raw materials +0.3, Packages +0.7, Operational efficiency / inhouse production +0.5 and etc.)• Cost increase in manufacturing: -6.9 (Raw materials -3.2, Packages -3.7 and etc.)• Change in sales promotion expenses: -0.6 （Advertisement -0.1, Promotion expenses -0.5）© ASAHI GROUP HOLDINGS. All rights reserved.

39

(Reference) FX Impact<FX Impact on P/L (Results and Forecast)><Impact of 1 yen change (full year)>

2021
Results2022
Forecast(JPY billion)

Currrency

EuropeEuro

29.3- 11.2

Oceania

AUD

53.4

- 9.7

Southeast Asia

-

1.8

- 1.0

Others

-

- 0.1

- 0.1

84.4

- 22.0

RevenueEurope

Euro

4.7

- 1.6

Oceania(JPY billion)

Assumption

RevenueCore OP

Euro

128.5

±4.3

±0.6

AUD

81.0

±6.5

±1.2

* Impact of 1 yen change (full year)* 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)

AUD

8.9

- 1.8

Southeast Asia

-

0.0

- 0.0

Others

-

- 0.0

- 0.0

(JPY)

Amortization of intangible assets

-

- 2.2

0.6

Euro

122.0

121.9

129.9

11.4

- 2.8

AUD

75.8

73.7

82.5

Core Operating Profit<Exchange Rate Trends>
2019

2020

2021

* The FX impact of Europe in 2022 forecast includes the impact of converting the
local currencies to Euro.

© ASAHI GROUP HOLDINGS. All rights reserved.

40

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 or inconvenience that may
be caused by or in conjunction with any part of these materials.