Asahi : Financial Results

822a7d18-b79c-40fa-baba-638cdfd55a26.pdf

Asahi Group Holdings, Ltd.

FY2016 1Q Financial Results

NOTE:

All information has been prepared in accordance with generally accepted accounting principles in Japan. Amounts shown in this accounting report and in the attached materials have been rounded down to omit fractions less than one million yen. This document is a partial English translation of the Japanese Financial Statement which was filed at Stock Exchanges in Japan on April 28, 2016.

This translation was made for information only. The Company gives no warranty with respect to its correctness.

Summary Report of Financial Results April 28, 2016 (Fiscal 2016) Asahi Group Holdings, Ltd.

Code number: 2502

Shares Listed: First Section of each of Tokyo Stock Exchanges Head Office: Tokyo

Contact: Yasuhiro Nakahara, General Manager, Public Relations Section Tel: + 81 3 5608 5126 (http://www.asahigroup-holdings.com/en/)

US GAAP: Not applicable

1. Consolidated Financial Results for Fiscal 2016 (From January 1, 2016 to March 31, 2016)

   (1) Operating Results (Rounded down to millions of yen, except per share data)

   Net sales (Millions of yen)	% change (%)	Operating income (Millions of yen)	% change (%)	Ordinary income (Millions of yen)	% change (%)
   Fiscal 2016 1Q ended March 31, 2016	380,241	1.6	11,483	6.3	2,390	(81.6)
   Fiscal 2015 1Q ended March 31, 2015	374,192	(0.2)	10,806	(29.7)	13,009	27.9

   (Note) Comprehensive income at the end of 1Q FY2016: -17,012 million yen (-%) Comprehensive income at the end of 1Q FY2015: 16,184 million yen (3.3%)

   Net income attributable to owers of the parent (Millions of yen)	% change (%)	Net income per share (Primary) (yen)	Net income per share (Diluted) (yen)
   Fiscal 2016 1Q ended March 31, 2016	614	(95.4)	1.34	1.34
   Fiscal 2015 1Q ended March 31, 2015	13,327	410.8	28.80	28.78
   (2) Financial Condition
   Total assets	Net assets	Shareholders'
   equity ratio
   (Millions of yen)	(Millions of yen)	(%)
   Fiscal 2016 1Q ended March 31, 2016	1,792,596	862,776	47.4
   Fiscal 2015 ended December 31, 2015	1,901,554	891,829	46.2

   (Note) Treasury stock at the end of 1Q FY2016: 849,671 million yen Treasury stock at the end of FY2015: 877,672 million yen

2. Dividends

   Cash dividend per share end of first end of second end of third

   Year-end

   Total

   (yen)	(yen)	(yen)	(yen)	(yen)
   Year ended December 31, 2015 Year ended December 31, 2016	－ －	24.00	－	26.00	50.00

   Year ended December 31, 2016 (Forecast)	26.00	－	27.00	53.00

   (Note) Revisions to the forecast of dividends in the current quarter: No

3. Projection for Fiscal 2016 (January 1, 2016 to December 31, 2016)

   (Rounded down to millions of yen, except per share data)

   Net sales % change Operating % change

   Ordinary % change

   income income

   (Millions of yen) (%) (Millions of yen) (%)

   (Millions of yen)

   (%)

   Fiscal 2016 ending June 30, 2016 860,000 0.4 44,300 (6.3) 39,100 (24.4)

   Fiscal 2016 ending December 31, 2016 1,870,000 0.7 137,000 1.4 138,000 (5.4)

   Net income % change Net income

   per share

   (Millions of yen) (%) (yen)

   Fiscal 2016 ending June 30, 2016 19,800 (49.9) 43.22

   Fiscal 2016 ending December 31, 2016 80,000 4.7 174.62

   (Note) Revisions to the forecast of consolidated results in the current quarter: No

   (Note)

4. Changes in significant subsidiaries during this quarterly period : No

5. Application of specific accounting methods for preparing the quarterly consolidated financial statements : Yes

6. Changes in accounting policies, changes in accounting estimates, and retrospective restatements

7. Changes in accounting policies due to amendment of accouting standards : No

8. Changes in accounting policies other than item (1) above : No

9. Changes in accouting estimates : No

10. Retrospective restatements : No

11. Number of shares issued and outstanding at the end of the term (common stock)

12. Issued stock including treasury stock:

    Three months ended March 31, 2016

    Year ended December 31, 2015

13. Treasury stock:

    Three months ended March 31, 2016

    Year ended December 31, 2015

14. Average of issued stock:

15. Three months ended March 31, 2016

    Three months ended March 31, 2015

    483,585,862 shares

    483,585,862 shares

    25,449,040 shares

    25,676,299 shares

    458,087,613 shares

    462,802,131 shares

    • Implementation status of quarterly review processes

      At the time of disclosure of this summary of consolidated financial results, the review procedures in accordance with the Financial Intstruments and Exchange Act had not been completed.

    • Forward-looking statements and other special instructions

16. The forward-looking statements that reflect Asahi's forecasts for consolidated and unconsolidated results in this document are based on information available at the time of the release of these materials and reasonable assumpitons made by Asahi.Certain risks and uncertainiteis could cause the results of Asahi to differ materially from any projections presented herein.

17. The Asahi Groups business performance fluctuates with the seasons because demand in its main businesses of alcohol beverages and soft drinks is concentrated in the summer season.

1. Consolidated Financial Statements (Unaudited)

2. Consolidated Balance Sheets

3. (Assets)

   Current assets

   (Millions of yen)

   As of As of

   December 31, 2015 March 31, 2016

   Cash and deposits	48,210	66,897
   Notes and accounts receivable - trade	362,240	267,397
   Merchandise and finished goods	91,200	95,911
   Raw materials and supplies	41,114	39,540
   Deferred tax assets	15,048	16,541
   Other	47,546	46,281
   Allowance for doubtful accounts	(4,861)	(1,251)
   Total current assets	600,498	531,318

   Non-current assets

   Property, plant and equipment

   Buildings and structures	433,344	433,073
   Accumulated depreciation	(267,980)	(269,364)
   Buildings and structures, net	165,364	163,709
   Machinery, equipment and vehicles	561,787	560,951
   Accumulated depreciation	(426,872)	(429,672)
   Machinery, equipment and vehicles, net	134,914	131,279
   Other	184,187	183,624
   Accumulated depreciation	(105,598)	(106,095)
   Other, net	78,588	77,528
   Land	193,891	192,629
   Construction in progress	9,339	9,260
   Total property, plant and equipment	582,098	574,407

   Intangible assets

   Goodwill	145,104	140,524
   Other	90,444	89,605
   Total intangible assets	235,549	230,130
   Investments and other assets Investment securities	422,469	397,046
   Net accrued benefit asset	24,574	24,796
   Deferred tax assets	8,183	7,116
   Other	30,752	32,341
   Allowance for doubtful accounts	(2,571)	(4,561)
   Total investments and other assets	483,408	456,740
   Total non-current assets	1,301,056	1,261,278
   Total assets	1,901,554	1,792,596