Asahi Group Holdings, Ltd.
Q2 2024 Financial Results Briefing (Interim Results): Summary ofConference Call (2)Date: Thursday, August 8, 2024, 15:00-16:30
Presenter: Kaoru Sakita, Director, EVP, and Group Chief Financial Officer◆Results Highlights (Revenue/Core Operating Profit) （P13）• Total revenue in the six months through June 2024 rose 3.8% year on year, with all
businesses reporting higher revenue thanks primarily to the impact of premiumization
efforts and price revisions in each region, which resulted in a continued improvement inunit sales prices.
• Core operating profit expanded by 6.2% year on year. While profit declined in Oceania due
to an ongoing deterioration in the market environment, the overall profit figure was boosted
by higher revenue and enhanced cost management across all business segments.
• We do not disclose our forecasts for first-half performance. However, while the revenue
result was slightly lower than planned, overall Core Operating Profit came in above plan as
the shortfall in expected Oceania performance was more than offset by higher-thanexpected profits in Japan, Europe, and Other businesses.
• Regarding our full-year forecasts, which are displayed on the right hand side of the chart,
overall full-year revenue is now expected to fall short of our initial forecast by JPY 25.9
billion based on first-half performance in each region, so we have revised the expected fullyear rise in revenue to 2.7% year on year.
• On the other hand, we have maintained our initial full-year forecast for overall Core
Operating Profit. While we have revised down the Oceania element, we expect to be able
to offset this shortfall with upward revisions to Core Operating Profit estimates primarily forJapan and Europe.
• As a result, we have revised up our overall annual forecasts on a constant currency basis
to an increase of 6.5% in revenue and 8.8% in Core Operating Profit. We have listed theforeign exchange impact and other factors for each region on Slides 19 and 20, so please
peruse those later.
1◆Operating Profit/Profit Attributable to Owners of Parent (P14)• First-half operating profit increased by 8.4% year on year to JPY 104.1 billion thanks tohigher Core Operating Profit and despite increases in business integration expenses andother components.
• Interim profit attributable to owners of parent expanded by 16.1% year on year to JPY 76.4
billion due to improvements in other non-operating items. Meanwhile, adjusted interim profit
attributable to owners of parent, which excludes the previous year’s impairment losses,
expanded by 15.2% year on year to JPY 76.4 billion.
• Regarding our full-year forecasts, we have incorporated increases in the Business
Integration Expenses and Others categories at the operating profit level. However, we haverevised up our estimates for both operating profit and net profit based on an increase inCore Operating Profit resulting from revised foreign exchange rates.
• We are expecting a full-year increase in adjustment items at the Core Operating Profit levelof JPY 13.5 billion compared to our initial forecast. However, these are primarily
accumulated costs associated with reforms to Asahi Group Japan’s human resource
systems and revisions to production systems at overseas regional headquarters (RHQs),
so these should be viewed as structural reform costs designed to generate higher
profitability going forward.
◆Statement of Financial Position/Statement of Cash Flow (P15)• Regarding our full-year balance sheet forecasts, our estimate for total assets has beenrevised up by JPY 265.0 billion to JPY5.5250 trillion as the depreciation in the Japanese
yen boosted expected totals for goodwill, intangible assets, and other components.
• With regard to our annual cash flow plan, we expect to generate the initially planned free
cash flow (FCF) of JPY 225.0 billion and see Net Debt/EBITDA decline to 2.70 as initiallyplanned by using that FCF to pay off debt.
• As we revealed, we are reviewing our shareholder return policy for the current fiscal year.
• In addition to achieving the 40% dividend payout ratio stipulated in our guidelines one year
ahead of schedule by raising the annual dividend per share JPY 9 above our initial forecast,2

we are also seeking to enhance shareholder returns by conducting up to JPY 30.0 billion
in share buybacks in fiscal 2024. Our President, Atsushi Katsuki will give you more detailsof this review later in this briefing.
◆Japan (P16)• Revenue increased 1.3% year on year overall, reflecting the impact of price revisions ineach operation, such as beer and liquor in the Alcohol Beverages Business.
• Core Operating Profit increased by 6.3% year on year on the back of higher revenue fromall business segments, despite the increase in advertising and promotion and other fixed
costs.
• Compared to our plan, while revenue primarily from the beer category of our Alcohol
Beverages Business came in lower than expected, Core Operating Profit outstripped
expectations across all segments as we successfully controlled increases in variable costs.
• Regarding our annual forecasts, we have revised our full-year revenue forecast for Japanto a steady year-on-year performance overall in view of revised sales volumes in the beer
category and the sale of the restaurant business, among other factors.
• Meanwhile, we revised up our full-year Core Operating Profit forecast to 4.6% year on year
to reflect the strong first-half performance from the Alcohol Beverages Business and NonAlcohol Beverages Business.
◆Europe(P17)• I would now like to explain the results for our European operation in Euro currency terms.
• Revenue increased by 6.0% year on year. While some markets were negatively impacted
by inflationary pressures, revenue received a boost from growth in the premium category
and the impact of the newly consolidated Octopi Brewing.
• Core Operating Profit rose by 11.1% year on year on the back of premiumization efforts
and price revisions that improved the overall price and product mix, and stronger control of
all costs, including variable costs.
• Compared to our first-half plan, revenue fell short of plan on lower demand in some areas,3

but Core Operating Profit exceeded plan as softening market conditions helped reduce
variable costs.
• Regarding our full-year forecasts for the European region, we have revised down ourrevenue forecast and now expect a year-on-year increase of 5.0%. This decision was madebased on progress made in the first half of 2024 and reviewed demand forecasts for eachnational market.
• Meanwhile, we revised up our forecast for 2024 Core Operating Profit to 6.1% year on year
because this measure performed strongly in the first half despite ongoing brand investment
and increases in personnel and other fixed costs.
◆Oceania (P18)• Finally, I would like to run through the results for our Oceania operation in Australian dollars.
• Revenue increased by 4.6% year on year overall. While beer sales declined due to a
deterioration in the market environment and some other factors, sales of RTDs andcarbonated soft drinks brands proved strong.
• However, despite the strong revenue effect, first-half Core Operating Profit contracted by
11.7% year on year on the back of lower beer sales volumes and higher raw materials andother variable costs.
• Compared to our plan, first-half revenue and Core Operating Profit fell short of expectations
primarily due to lower sales of Great Northern and other flagship beer brands.
• Looking finally at our full-year forecasts for the Oceania region, we revised down ourrevenue estimate to 5.5% year on year to reflect the first-half performance and prevailingconsumption and other trends.
• We also revised down our estimate for full-year Core Operating Profit to 1.7% year on year
based on first-half performance, but we are working hard to boost efficiencies in marketing
spend and all other areas.

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