Asahi Group Holdings, Ltd.
Q1 2023 Financial Results Briefing Conference Call Summary
Date & time: Friday May 12, 2023; 18:00–19:00
Presenter: Kaoru Sakita, Director EVP and CFO◆Revenue / Core Operating Profit （P3）
• Total revenue in the first quarter rose 7.9% year on year to 556.3 billion
yen with revenue growth in all businesses, mainly driven by price revisions
and continued premiumization.
• Total core operating profit grew 24.3% year on year to 32.3 billion yen
mainly due to higher profit in Japan and Europe as a result of price revisions
although profit declined in Oceania owing to variable costs.
• We do not disclose quarterly earnings forecasts. However, total progress
relative to the internal plan exceeded the plan for core operating profit, withEurope and Oceania in line with the plan, while the Japan Alcohol Beverages
Business and Non-Alcohol Beverages Business both exceeded the plan.
• If we include the impact of currency translation, revenue grew 12.0% year
on year and core operating profit rose 31.0% year on year.
◆Operating Profit / Profit （P4）
• Operating profit rose 254.0% year on year to 32.0 billion yen, mainly due
to the absence of impairment losses associated with SCM reorganization in
Japan recorded in the previous year.
• Profit attributable to owners of the parent rose 359.4% year on year, mainly
due to the increase in operating profit. Adjusted profit, excluding
impairment loss and other items, rose 50.0% year on year, with each levelof profit tracking ahead of the plan.
◆Japan （P5）
• Total revenue in the three-month period from January to March increased
6.0% year on year, largely in line with the plan, mainly driven by price1

revisions in each business in addition to a recovery in the on-premisemarket in the Alcohol Beverages Business.
• Total core operating profit rose 48.7% year on year as profit growth in theAlcohol Beverages Business and Non-Alcohol Beverages Business offset adecrease in profit in the Food Business mainly due to variable cost increases.
• Core operating profit in the Food Business was slightly lower than the plan
but was higher than expected in the Alcohol Beverages Business and NonAlcohol Beverages Business, so total core operating profit tracked above theplan.
◆Japan (Alcohol Beverages: Revenue/Sales Volume)（P6）• In the three-month period from January to March, sales volume of beertype beverages increased by 2-3% year on year on a significant expansion
in the overall beer-type beverage market, mainly driven by a recovery inthe on-premise market for beer, despite a decline of around 9% in new
genre product sales.
• In this environment, the Company’s sales of new genre product andhapposhu declined, but total revenue from beer-type beverages rose 5.2%
year on year, driven by strong sales of Super Dry, including the recovery inthe on-premise market, and the effect of price revisions.
• Total sales tracked slightly lower than the plan, mainly because off-premise
sales were lower than expected, which included the effect of better-thanexpected recovery in the on-premise market.
• In the categories other than beer-type beverages, total revenue exceeded
the plan with revenue from RTD slightly lower year on year due to theimpact of the market downturn, while revenue from whiskey and spirits,wine, and shochu exceeded the plan due to the recovery in the on-premisemarket.
◆ Japan (Alcohol Beverages: Core Operating Profit) （P7）• Core operating profit rose 49.2% year on year, mainly driven by the effect2

ofhigherrevenue,primarilyforbeer,andgreater

efficiency

inadvertisement and sales promotion expenses despite variable cost increases,
mainly for raw materials, and increases in other expenses.
• Total core operating profit exceeded the plan due to control of variable cost
increases, including some recording delays, as well as greater efficiency inadvertising and sales promotion expenses and other expenses, while theimpact of changes in sales was in line with the plan.
• At this point in time, we will not revise business results in line with theadditional price revisions from October announced last month. However, wewill revise the plan as necessary, taking into account market trends andprogress on cost increases from the second quarter onwards, as well as theneed to strengthen marketing in anticipation of the revised liquor tax andpost-price revisions.
◆Japan (Non-Alcohol Beverages: Sales Volume) （P8）
• Amid a decline of around 1% year on year in the overall non-alcohol
beverage market in the three-month period from January to March, totalsales volume at Asahi Soft Drinks Co., Ltd. rose 2.4% year on year to 53
million cases despite a decline in sales of lactic acid drinks and coffee due
to an increase in sales of other product categories such as carbonated drinks.
• In addition, revenue also slightly exceeded the plan, up 3.8% year on year,
mainly due to greater-than-expected improvement in the unit sales price.
• With the commencement of a business alliance with DyDo DRINCO, INC. inthe vending machine vending machine activities in January this year, theactual figures for 2023 have been reclassified based on the new scheme.
Excluding the effect of this reclassification, revenue rose 10.6% year onyear.
◆Japan (Non-Alcohol Beverages: Breakdown of Changes in Profit)（P9）• Total core operating profit rose 40.8% year on year due to the effect ofhigher revenue, including price revisions, and reductions in material-related3

costs and greater efficiency in other costs, although variable costs such as
sugar and PET resin increased significantly.
• Total core operating profit was slightly above the plan due to the effect ofbetter-than-expected improvement in the unit sales price and greater
efficiency in overall fixed costs.
• From the second quarter onward, in addition to ongoing cost increases, wewill strengthen advertising and sales promotions for the peak season. Thus,
we will aim to steadily achieve the annual plan while taking account ofprogress in these areas.
◆Europe （P10）• In the three-month period from January to March, total sales volume fell
3.4% year on year, mainly due to the effect of lower volume in somemarkets and Poland where the price revisions at the beginning of the year
had a temporary impact on demand, despite an increase in sales volume insome countries such as the Czech Republic.
• Total revenue increased 10.6% year on year, largely in line with the plan,due to the 17.3% increase in the sales unit price from the effect of pricerevisions in various countries and growth in the premium category.
• Core operating profit rose 98.1% year on year, mainly driven by the effectof higher revenue, including unit prices, although cost increases inmanufacturing and the decline in sales volume had an impact.
• Core operating profit was largely in line with the plan due to control of cost
increases, despite an increase in costs due to higher container deposits inPoland, which was not factored into the plan.
• In terms of consumption trends, there are no significant changes from thetrends so far, and we have been able to maintain and expand thefundamental strength of our total European business, including the recent
steady expansion in our share of the off-premise market in five countries,
including the Czech Republic, Poland and Romania.
4• It will be necessary to monitor changes in consumer confidence due toinflation. However, we will continue unwavering investment in ourpremiumization strategy in anticipation of the recovery phase of the macroeconomic environment.
◆Oceania （P11）• In the three-month period from January to March, total revenue in theAlcohol Beverages Business and the Non-Alcohol Beverages Business rose
9.3% year on year.
• Breaking down this figure, as shown in the middle of the table, total revenue
excluding liquor tax rose 8.9% year on year, mainly owing to sales volume
growth centering on mainstay brands, in addition to the effect of pricerevisions and the recovery in the on-premise market.
• Core operating profit decreased 2.8% year on year, reflecting significant
cost increases despite the effect of higher revenue due to such factors as
price revisions and improvement in the channel mix.
• However, both revenue and core operating profit were largely in line withthe plan.
• The lower part of the table shows the sales trends in the Australian Alcohol
Beverage Business. The off-premise market has maintained strongmomentum centered on the mainstay beer brands, including Great Northernand Super Dry, but increased slightly year on year due to the negative
impact from the inflow into the on-premise market.
• The on-premise market has experienced growth of 20 - 30% year on year,
mainly as a reaction to the spread of the Omicron strain of COVID-19 lastyear, and sales unit prices for beer-type beverages have risen 4.1% year
on year, due to the effect of price revisions and a significant improvementin the channel mix.
• In addition, in terms of consumption trends associated with inflation, there
5are no major changes at present, such as a decline in sales volume or shift
to lower priced products, and we will continue aiming to achieve the annual
plan through appropriate revenue management and further improvement incost efficiency.

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