Asahi Group Holdings, Ltd.
Q2 2024 Financial Results Briefing (Interim Results):
Summary of Conference Call (1)Date: Thursday, August 8, 2024, 15:00-16:30
Presenter: Atsushi Katsuki, President, Group Chief Executive Officer, and Representative
Director◆Executive Summary (P1)
• Looking at the first half of 2024 overall, while profit from our business in Oceania declined
as the market environment deteriorated further than expected, overall profit outstripped ourplan following strong performances in Japan, Europe, and Other business including SouthKorea.
• Unit sales prices continued to improve steadily thanks to the continued positive impact of
the appropriate pricing strategies that we put in place to deal with rising costs over the past
two years, as well as the expansion of global brands and other determined premiumization
strategies.
• Going forward, while first-half Core Operating Profit exceeded expectations, we willcontinue to invest in initiatives designed to further improve our competitive advantage. At
the same time, we also need to consider various risks including our competitive position ineach region and any decline in demand caused by inflation. For those reasons, we havedecided not to revise our initial plan for full-year Core Operating Profit performance.
• We expect to firmly achieve this year’s plan and generate sustainable growth from 2025
onward by continuing to advance our premium strategy, and accelerating earnings
infrastructure reforms in each region by pursuing more sophisticated global procurement
through our new AGPRO procurement company and other measures.
• Furthermore, with the achievement of our financial soundness goals now in sight, weannounced a review of our shareholder returns policy for the current fiscal year. We willcontinue to seek to increase corporate value while balancing growth investments andshareholder returns.

1◆New Financial Cash Flow Policy (P2-3)• As part of our medium- to long-term management policy, Asahi Group Holdings has
prioritized the allocation of funds to reducing financial liabilities inflated by large-scaleacquisitions, and to expanding the Group’s capacity for growth investment.
• This has helped generate higher-than-planned free cash flow, and we now expect Net
Debt/EBITDA to decline to 2.7 times in the revised 2024 plan, and to achieve our guideline
for Net Debt/EBITDA of roughly 3 times.
• In light of this progress and our ability to generate stable cash flow, we have decided to usesome of our free cash flow for the current fiscal year to further enhance shareholder returns.
• As you can see here, with regards to shareholder dividends, we expect to achieve ourguideline of “aiming for a 40% dividend payout ratio by 2025” one year ahead of schedule.
We have raised our annual dividend per share estimate to JPY 141 and abolished theshareholder benefit program to enable us to focus on dividends and other shareholder
returns as the key means for returning profits to shareholders.
• We have also set share buy-back quotas of up to JPY 30 billion as a form of flexible
shareholder returns, and decided to conduct a one-for-three stock split to help improveshare liquidity and expand our investor base.
• Going forward, we will aim to increase corporate value over the medium- to long-term by
maintaining the degree of financial soundness required to facilitate growth investment,
while also ensuring optimal cash allocations designed to enhance shareholder returns andimprove capital efficiency.
• We have repeatedly discussed specific financial and capital policies for fiscal 2025 onward,
and we intend to make an announcement on this topic in February 2025 following plentiful
discussions with our stakeholders regarding progress to date and future management
strategies.
• For your reference, Slide 3 summarizes our financial policy to date and changes in the Net
Debt/EBITDA ratio, total dividends, and share buybacks over time, so please take a look.

2◆Premium Strategy Progress (P4)• The total sales volume of beer-type beverages and non-alcohol beer for the first half of2024 shown in the top part of this graph declined by 0.6% year on year in the three regionsof Japan, Europe, and Oceania combined due to a large contraction in the Oceania region.
However, the unit sales price improved by 3.3% due to the impact of price revisions andthe expansion of premium category products.
• The bottom of the slide shows sales figures for our global brands excluding sales in theirhome markets. Here, sales of Peroni Nastro Azzurro declined by 2% year on year due tosluggish market conditions in the United Kingdom and Australia, while sales of Super Dry
increased by an impressive 27% year on year thanks partly to our decision to sponsor theCity Football Group. As a result, sales volumes for our five global brands combined
increased by 11% overall.
• Regarding our global brands, we intend to expand their presence in existing markets as
the key driving force of our premium strategy, and increase visibility in new markets throughglobal sponsorships and other measures.
◆ Japan: H1 Overview and Future Direction (P5)
• Looking at the first half of fiscal 2024 overall, following on from the price revisions started
in 2023, we revised liquor prices in the alcohol beverages category in April 2024 and large
PET drinks in the non-alcohol beverages category in May 2024. We also strengthened themanagement of variable costs and other expenses. All of these moves enabled us toachieve higher-than-planned profits in the first half.
• In the second half of fiscal 2024, we will continue to invest in strengthening our flagshipbrands and expanding high-value-added categories, while also steadily improving
efficiency in various areas in order to achieve our current full-year plan and promotesustainable profit growth.
• Meanwhile, in April, we transferred the managers of individual operating companies toAsahi Group Japan as part of our overall human resource system reforms aimed atpromoting growth in areas that transcend traditional corporate and operational boundaries.
We will also look to further expand “One Asahi” synergies by enhancing organizational
functions and human capital across Japan.

3◆ Japan: Key Topics (P6)• As the graph on the top left shows, the return to beer continues following the liquor tax
revisions in 2020 and 2023, despite the steady passing on of price revisions to distributors
and consumers.
• While we did suffer a temporary negative impact from the launch of new competingproducts in the first half of the year, we are developing various initiatives to improve brandvalue, with a focus on Super Dry, in order to further stimulate beer demand.
• Also, in the expanding non-alcohol category, consumers praised our Asahi ZERO beerlaunched nationwide in April for tasting like authentic beer and being easy to drink. Thisencouraged us to double our annual sales volume target to 1.2 million cases.
• Looking ahead, we are working to improve our high-value category by, for instance,
expanding sales of Mirai no Lemon Sour, which was launched in June to high acclaim, andlaunching the Nikka Frontier premium brand in the buoyant whisky market.
◆ Europe (P7-8)• To summarize our first-half performance in Europe, top line results remained strong thanks
in part to the steady progress made on premiumization, and favorable weather that boosted
demand. Our European operation also reported higher-than-planned Core Operating profit
growth due to softening raw material and energy market conditions, which helped reduce
variable costs.
• The growth trends for each category are displayed on the top of Slide 8. As you can see,the premium category continues to drive growth as we strive to expand main premium
beers and non-alcohol beers in each country.
• We are also focusing on strengthening our brand portfolio by maintaining a strong market
share in major countries and actively developing new premium brands in each country.
• While we must keep a close eye on future consumption trends in some markets, such as
Poland, where inflationary pressures are dampening demand, we are aiming to steadily
achieve this year’s plan by continuing to promote our premium strategy and secure greater
cost efficiencies.

4• In addition, we will continue to invest in our brands and human capital, further enhance ourgrowing competitive advantage across Europe, and build the necessary platforms to
support sustainable growth.
◆ Oceania (P9-10)• To summarize first-half performance, the unit sales price improved thanks to appropriate
pricing strategies and we expanded RTDs and carbonated soft drinks through productinnovation. However, Core Operating Profit declined and fell short of plan following adeterioration in the market environment and a significant slump in the beer category.
• However, as you can see on Slide 10, alcohol beverage sales volumes bottomed out in thefirst quarter of 2024 and started to recover, and we have been able to maintain ourcompetitive advantage in the Oceania market as evidenced by Asahi’s acquisition of thetop market share in the RTD market following the launch of our Hard Rated product inAugust 2023.
• In the second half of fiscal 2024, we will be looking to achieve our revised plan bystrengthening marketing to kickstart a recovery in flagship beer brands such as Great
Northern and developing new brands in growth categories.
• Achieving our second-half plan may prove more difficult depending on market trends, but
we intend to achieve our full-year plan for 2024 and generate a recovery from 2025 onward
by deepening our multi-beverage strategy, pursuing greater innovation, and accelerating
the earnings structure reforms that we have been working on for some time.
◆ Finally... (P11-12)• Our business environment continues to challenge us, but we would like you to focus on ourfuture growth potential as a truly global company. As I said at the beginning of thispresentation, we want to engage in constructive dialogue with our stakeholders to ensure
optimal cash flow allocations once we achieve our financial soundness goals. I look forward
to your continued guidance and encouragement in this and all other matters relating to ourcompany’s development.

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