Interim report
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English Translation February 13, 2025 Summary of Consolidated Financial Results for the Fiscal Year Ended December 31, 2024 （Under IFRS） (UNAUDITED) Company name: Suntory Beverage & Food Limited Shares listed: Tokyo Stock Exchange Securities code: 2587 URL: https://www.suntory.co.jp/sbf/ Representative: Makiko Ono, Representative Director, President & Chief Executive Officer Inquiries: Naoto Okinaka, Chief Financia l Officer, Corporate Strategy Division TEL: +81-3-5579-1837 (from overseas) Scheduled date of ordinary general meeting of shareholders: March 26, 2025 Scheduled date to file securities report: March 27, 2025 Scheduled date to commence dividend payments: March 27, 2025 Preparation of supplementary material on financial results: Yes Holding of financial results presentation meeting (for institutional investors and analysts): Yes (Millions of yen with fractional amounts discarded, unless otherwise noted) 1. Consolidated financial results for the fiscal year ended December 31, 2024 (from January 1, 2024 to December 31, 2024) (1) Consolidated operating results (Percentages indicate year-on-year changes) Revenue Operating income Profit before tax Profit for the year Fiscal year ended (Millions of yen) (%) (Millions of yen) (%) (Millions of yen) (%) (Millions of yen) (%) December 31, 2024 1,696,765 6.6 160,249 13.1 161,047 13.6 117,629 12.6 December 31, 2023 1,591,722 9.7 141,726 1.5 141,781 1.8 104,480 3.3 Profit for the year attributable to owners of the Company Comprehensive income for the year Fiscal year ended (Millions of yen) (%) (Millions of yen) (%) December 31, 2024 93,495 13.0 181,443 3.8 December 31, 2023 82,743 0.5 174,847 11.2 Basic earnings per share Diluted earnings per share Ratio of profit for the year to equity attributable to owners of the Company Ratio of profit before tax to total assets Ratio of operating income to revenue Fiscal year ended (Yen) (Yen) (%) (%) (%) December 31, 2024 302.57 – 8.1 8.1 9.4 December 31, 2023 267.78 – 8.1 7.7 8.9
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Reference: Gain on investments account ed for using the equity method For the fiscal year ended December 31, 2024: ¥139 million For the fiscal year ended December 31, 2023: ¥(27) million (2) Consolidated financial position Total assets Total equity Equity attributable to owners of the Company Ratio of equity attributable to owners of the Company to total assets Equity attributable to owners of the Company per share As at (Millions of yen) (Millions of yen) (Millions of yen) (%) (Yen) December 31, 2024 2,058,032 1,315,278 1,209,587 58.8 3,914.53 December 31, 2023 1,912,415 1,185,027 1,087,370 56.9 3,519.00 (3) Consolidated cash flows Net cash inflow (outflow) from operating activities Net cash inflow (outflow) from investing activities Net cash inflow (outflow) from financing activities Cash and cash equivalents at the end of the year Fiscal year ended (Millions of yen) (Millions of yen) (Millions of yen) (Millions of yen) December 31, 2024 193,730 (101,297) (112,036) 160,493 December 31, 2023 158,292 (77,798) (115,404) 171,755 2. Dividends Annual cash dividends Total cash dividends Dividend payout ratio (Consolidated) Ratio of dividends to equity attributable to owners of the Company (Consolidated) First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total (Yen) (Yen) (Yen) (Yen) (Yen) (Millions of yen) (%) (%) Fiscal year ended December 31, 2023 – 40.00 – 40.00 80.00 24,719 29.9 2.4 Fiscal year ended December 31, 2024 – 55.00 – 65.00 120.00 37,079 39.7 3.2 Fiscal year ending December 31, 2025 (Forecast) – 60.00 – 60.00 120.00 41.2 3. Consolidated earnings forecast for th e fiscal year ending December 31, 2025 (from January 1, 2025 to December 31, 2025) (Percentages indicate year-on-year changes) Revenue Operating income Profit before tax Profit for the year Profit for the year attributable to owners of the Company Basic earnings per share (Millions of yen) (%) (Millions of yen) (%) (Millions of yen) (%) (Millions of yen) (%) (Millions of yen) (%) (Yen) Fiscal year ending December 31, 2025 1,796,000 5.8 161,000 0.5 160,500 (0.3) 117,000 (0.5) 90,000 (3.7) 291.26
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* Notes (1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None (2) Changes in accounting policies and changes in accounting estimates a. Changes in accounting pol icies required by IFRS: None b. Changes in accounting policie s due to other reasons: None c. Changes in accounting estimates: None (3) Number of issued shares (ordinary shares) a. Total number of issued shares at the end of the period (including treasury shares) As at December 31, 2024 309,000,000 shares As at December 31, 2023 309,000,000 shares b. Number of treasury shares at the end of the period As at December 31, 2024 272 shares As at December 31, 2023 148 shares c. Average number of outstanding shares during the period Fiscal year ended December 31, 2024 308,999,786 shares Fiscal year ended December 31, 2023 308,999,870 shares * Financial results reports are not required to be audited by certified public accountants or an audit corporation. * Proper use of earnings forecast, and other special matters The earnings forecast contained in these materials are based on our judgment attributable to information available to the Company and the Group as of the date of announcement of these materials, and include certain risks and uncertainties. These statements are not intended as a promise by the Company to achieve such results. Actual business results may differ substantially due to various factors such as economic situation surrounding the Company and the Group, market trend, exchange rates and other factors.
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- 1 - Attached Materials Index 1. Overview of Operating Results ........................................................................................................ 2 (1) Overview of operating results for the fiscal year under review ....................................................... 2 (2) Overview of financial position for the fiscal year under review ...................................................... 3 (3) Overview of cash flows for the fiscal year under review ................................................................. 4 (4) Future outlook .................................................................................................................................. 4 (5) Basic policy on profit distribution and dividends for the 2024 and 2025 fiscal years ..................... 4 2. State of the Group ............................................................................................................................ 5 3. Management Policies ....................................................................................................................... 6 (1) Corporate philosophy ....................................................................................................................... 6 (2) Medium-term strategy and medium-term plan ................................................................................ 6 (3) Initiatives for 2025 ........................................................................................................................... 7 4. Basic Concept Regarding Selection of Accounting Standard .......................................................... 8 5. Consolidated Financial Statements and Significant Notes Thereto (Unaudited) ............................. 9 (1) Consolidated statement of financial position ................................................................................... 9 (2) Consolidated statement of profit or loss ......................................................................................... 11 (3) Consolidated statement of comprehensive income ........................................................................ 12 (4) Consolidated statement of changes in equity ................................................................................. 13 (5) Consolidated statement of cash flows ............................................................................................ 14 (6) Notes to consolidated financial statements .................................................................................... 15 (Going concern) ............................................................................................................... .............. 15 (Significant accounting estimates) ................................................................................................. 15 (Segment information) ................................................................................................................... 15 (Per share information) ....................................................................................................... ........... 17 (Subsequent events) ........................................................................................................... ............ 17
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- 2 - 1. Overview of Operating Results (1) Overview of operating results for the fiscal year under review Suntory Beverage & Food Limited Group (the Group) has set the achievement of high-quality growth as its target in order to realize sustainable business growth and enhancement of corporate value as a truly global beverage enterprise. Under the medium-term plan formulated in the fiscal year under review, the Group has established the four important strategic themes of “brand strategy,” “business structural transformation,” “DEI (diversity, equity and inclusion)” and “sustainability,” and is actively developing business in line with these themes. In the fiscal year under review, amid an external environment that is expected to remain challenging, the Group will conduct aggressive marketing activities centered around the core brands while enhancing revenue growth management (RGM) activities, aiming to achieve further revenue growth in all segments. In 2024, while the external environment was expected to remain challenging, the Group aimed to achieve further revenue growth in all segments through aggressive marketing activities centered on core brands and enhanced revenue growth management (RGM) activities. The Group steadily grasped the demand situation in key countries and continued its focused activities for core brands in all segments, resulting in record revenue and operating income. Revenue increased in all segments due to the contribution of RGM activities, including price revisions in Japan, as well as the thorough implementation of focused activities for core brands in all segments. Operating income increased in all segments, with Japan and Asia Pacific leading the overall increase as the effect of revenue growth and strict cost management offset the impact of high raw material prices and currency fluctuations in line with the expectations, as well as the impact of the macroeconomic slowdown in Europe. For the operating results of the fiscal year under review, the Group reported consolidated revenue of ¥1,696.8 billion, up 6.6% year on year and up 2.7% on a currency neutral basis. Consolidated operating income was ¥160.2 billion, up 13.1% year on year a nd up 7.1% on a currency neutral basis. Profit for the year attributable to owners of the Company was ¥93.5 billion, up 13.0% year on year and up 7.8% on a currency neutral basis. Results by segment are described below. < Japan business > The beverage market remained at the same level as the previous fiscal year (based on the Company’s own estimates), despite the impact of price revisions, partly due to the effect of the extreme heat wave. Our sales volume was slightly lower than the previous fiscal year despite the continued strengthening of focused activities for core brands, new product launches, and increased marketing activities, due to the impact of price revisions and other factors. By brand, we continued to implement a variety of marketing activities for Suntory Tennensui amid steady demand. The Kiritto Fruit series and Special Lemon Squash continued to perform well, and 1L PET bottle products in renewed containers were also strong, resulting in a record sales volume. For BOSS, total sales volume of the brand was down from the previous fiscal year, despite the continued good performance of the Craft BOSS series, Amakunai Italiano. For Iyemon, sales volume was down from the previous fiscal year as the unsweetened tea market was significantly impacted by price revisions, but both Iyemon Koi Aji (food with functional claims) and Tokucha continued to perform well. Revenue increased due to the effect of price revisions and an improved product size mix. Segment profit increased due to revenue growth from prioritized activities for brands and each channel, the impact of high raw material prices and currency fluctuations remaining in line with the expectations, and strict cost management.
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- 3 - The Japan business reported revenue of ¥731.8 billion, up 3.3% year on year, and segment profit of ¥49.1 billion, up 21.3% year on year. < Asia Pacific business > In Asia Pacific, both revenue and segment profit increased due to a market recovery and our continued efforts to strengthen marketing activities, particularly in Thailand (beverage and health supplement businesses) and Vietnam (beverage business). Revenue increased due to growth in sales volume in key businesses. Segment profit increased due to the effect of higher revenue and strengthened marketing activities. In the beverage business, Vietnam recorded revenue growth as the core brands PEPSI and Aquafina continued to perform well. Thailand reported revenue growth driven by strong sales of PEPSI and TEA+. In Oceania, sales volume increased year on year as a result of continued efforts to strengthen marketing activities for V, our core energy drink brand, leading to revenue growth. In the health supplement business, BRAND’S Essence of Chicken maintained its recovery trend due to improved market conditions, including inbound demand, as well as renewed communication and enhanced marketing activities, and sales volume of BRAND’S Bird’s Nest increased significantly year on year, contributing to revenue growth. The Asia Pacific business reported revenue of ¥402.0 billion, up 8.2% year on year and up 3.5% on a currency neutral basis. Segment profit was ¥45.4 billion, up 5.4% year on year and up 1.4% on a currency neutral basis. < Europe business > Revenue increased on a currency neutral basis due in part to both continued strengthening of focused activities for core brands and RGM activities including price revisions, despite soft consumer spending, intensified competition and unstable weather conditions in key countries. Segment profit increased due to strict cost management, supply chain improvement in the UK, and other factors. In France, revenue decreased due to a drop in dema nd as a result of lower consumption trends caused by prolonged inflation, unfavorable weather conditions and other factors, although sales volume of the mainstay product Oasis was higher than the previous fiscal year. In the UK, Lucozade sales volume fell below the previous fiscal year’s level due to the impact of product supply shortages in the second quarter, but have since recovered, resulting in revenue growth. In Spain, revenue decreased as a result of lower sales volume than the previous fiscal year due to a slowdown in market conditions. The Europe business reported revenue of ¥368.1 billion, up 8.5% year on year and up 0.0% on a currency neutral basis. Segment profit was ¥60.4 bil lion, up 16.7% year on year and up 7.0% on a currency neutral basis. < Americas business > In the Americas, we increased promotional activities in both the core carbonated beverage category and the non-carbonated beverage category. Revenue increased due in part to RGM activities, including price revisions. Segment profit increased due to higher revenue, which offset the impact of rising raw material, logistics, and labor costs. The Americas business reported revenue of ¥194.8 billion, up 12.7% year on year and up 4.5% on a currency neutral basis. Segment profit was ¥23.7 billion, up 12.9% year on year and up 4.7% on a currency neutral basis. (2) Overview of financial position for the fiscal year under review Total assets as at December 31, 2024 stood at ¥2,058.0 billion, an increase of ¥145.6 billion compared to December 31, 2023. The main factor was an increase in trade and other receivables and property, plant and equipment, in addition to the depreciation of key currencies against the yen compared to the end of the previous fiscal year.
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- 4 - Total liabilities stood at ¥742.8 billion, an increase of ¥15.4 billion compared to December 31, 2023. This was due in part to an increase in trade and other payables, in addition to the depreciation of key currencies against the yen compared to the end of the previous fiscal year despite a decrease of bonds and borrowings. Total equity stood at ¥1,315.3 billion, an increase of ¥130.3 billion compared to December 31, 2023, due in part to an increase in other components of equity because of the depreciation of key currencies against the yen compared to the end of the previous fiscal year and retained earnings. As a result of the above, ratio of equity attributable to owners of the Company to total assets was 58.8% and equity attributable to owners of the Company per share was ¥3,914.53. (3) Overview of cash flows for the fiscal year under review Cash flow positions in the fiscal year under review are as follows. Cash and cash equivalents as at December 31, 2024 amounted to ¥160.5 billion, a decrease of ¥11.3 billion compared to December 31, 2023. Net cash inflow from operating activities was ¥193.7 billion, an increase of ¥35.4 billion compared to the previous fiscal year. This was mainly the result of profit before tax of ¥161.0 billion, and depreciation and amortization of ¥77.0 billion, despite income tax paid of ¥39.3 billion and an increase in trade and other receivables of ¥20.7 billion. Net cash outflow from investing activities was ¥101.3 billion, an increase of ¥23.5 billion compared to the previous fiscal year. This was mainly the result of payments for property, plant and equipment and intangible assets of ¥108.3 billion. Net cash outflow from financing activities was ¥112.0 billion, an decrease of ¥35.0 billion compared to the previous fiscal year. This was mainly the result of dividends paid of ¥49.1 billion, repayments of long-term borrowings of ¥59.0 billion, and redemption of bonds of ¥35.0 billion. (4) Future outlook Based on the medium-term strategy, the Group will work on further improvement of profitability and business foundation. Please see 3. Management Policies for further details on the medium-term strategy and initiatives for 2025. In the 2025 fiscal year, the Group expects consolidated revenue of ¥1,7960.0 billion, up 5.8% year on year, consolidated operating income of ¥161.0 billion, up 0.5% year on year. The main foreign exchange rates underlying the outlook for the next fiscal year are ¥164.0 against the euro and ¥152.0 against the U.S. dollar. (5) Basic policy on profit distribution and dividends for the 2024 and 2025 fiscal years The Company believes its prioritization of strategic investments as well as capital expenditures for sustainable revenue growth and increasing the value of its business will benefit its shareholders. In addition, the Company views an appropriate shareholder return as one of its core management principles. While giving due consideration to providing a stable return and maintaining robust internal reserves for the future, the Company intends to pursue a shareholder return policy that takes its business results and future funding needs into account comprehensively. Specifically, the Company aims to stably increase dividends on the basis of profit growth with a targeted consolidated payout ratio of 40% or more of profit for the year attributable to owners of the Company. For the fiscal year under review, in accordance with the basic policy described above and a consideration of business results and environment, the Company plans to pay a fiscal year-end dividend of ¥65 per share. As a result, the planned annual dividend for the fiscal year under review is ¥120 per share, together with an interim dividend of ¥55 already paid. For the fiscal year ending December 31, 2024, the Company plans to pay an annual dividend of ¥120 per share, comprised of an interim dividend of ¥60 and a fiscal year-end dividend of ¥60.
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- 5 - Sales 2. State of the Group The Suntory Beverage & Food Limited Group is comprised of the Company, 64 subsidiaries, 6 affiliates and 2 joint ventures. The major companies are mentioned below. The following shows a business schematic diagram of the Group. Sales Sales Sales Sales Sales Sales Consignment of manufacturing Delivery Sales Sales Sales Sales Sales Sales Suntory Beverage & Food Limited Group Consignment of business Provision of services Sales Sales Suntory Holdings Limited (Note) Payments (brand royalty, etc.) Suntory Products Limited Japan Beverage Holdings Inc. Japan Segment Consumers Note: Suntory Holdings Limite d is the parent company. Procurement SBF Japan Suntory Beverage & Food Limited Suntory Foods Okinawa Limited Suntory Beverage Solution Limited Manufacturer, etc. Suntory Foods Limited Europe Segment Orangina Schweppes Holding B.V. and its subsidiaries Lucozade Ribena Suntory Limited and its subsidiaries Americas Segment Pepsi Bottling Ventures LLC and its subsidiaries Suntory Beverage & Food Limited Suntory Beverage & Food International (Thailand) Co., Ltd. and its subsidiaries Suntory PepsiCo Vietnam Beverage Co., Ltd. Suntory PepsiCo Beverage (Thailand) Co., Ltd. SUNTORY BEVERAGE & FOOD NEW ZEALAND LIMITED SUNTORY BEVERAGE & FOOD AUSTRALIA PTY LTD Asia Pacific Segment
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- 6 - 3. Management Policies (1) Corporate philosophy The Group’s corporate philosophy consists of “Our Purpose,” “Our Values,” and “Who We Are.” “Our Purpose” and “Our Values” align with the Suntory Group’s Corporate Philosophy in that they define the values all our employees embrace to achieve our purpose, in addition to the goals of our business and our corporate direction. Moreover, we define the universal characteristics of the Group as “Who We Are” in seeking to achieve high-quality growth as a truly global beverage business. ＜Our Purpose＞ To inspire the brilliance of life, by creating rich experiences for people, in harmony with nature. ＜Our Values＞ Growing for Good / “Yatte Minahare” / Giving Back to Society ＜Who We Are＞ Always Together with Seikatsusha We connect with your feelings to enrich every moment of life (2) Medium-term strategy and medium-term plan The medium-term strategy and medium-term plan are as follows: Medium-term strategy Our aspiration is ¥2.5 trillion sales by 2030 to be achieved organically by “outperforming the market” as well as through “incremental growth from new investments,” as we seek to achieve high-quality growth as a truly global beverage enterprise. Furthermore, we aim for profit growth which outpaces revenue growth. In order to achieve these, the Group will proactively develop business in line with the following key strategic pillars. < Brand strategy > Enhance core brand innovation Expand cross-selling of strategic brands to a wider area Develop global Suntory brands < Structural transformation > Japan: Accelerate structural transformation toward strengthening profitability Overseas: Accelerate business growth and further strengthen profitability Further augment and strengthen the business portfolio (deployment of RTD, etc.) < DEI > Improve corporate competitive strengths through integration of diverse perspectives and values < Sustainability > Reinforce initiatives for taking on environmental and social challenges Medium-term plan (2024-2026) The targets through 2026 based on the medium-term strategy are as follows: Organic growth (Base year: 2023, on a currency neutral basis) Revenue Mid single-digit Compound A nnual Growth Rate (CAGR) growth Operating income High single-digit Compo und Annual Growth Rate (CAGR) growth Operating margin Over 10% by 2026 Free cash flow Generate more than ¥140 billion in 2026 * Free cash flow = cash flows from operating activities – cash flows from investing activities Growth investment Allocate ¥300-600 billion for investment Focus on augmenting M&A and strategic capita l investment (including investments in sustainability), and on global deployment of strategic brands
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- 7 - Dividend policy Target dividend payout ratio of 40% or higher from fiscal year 2024 onward *A targeted consolidated payout ratio of profit for the year attributable to owners of the Company (3) Initiatives for 2025 In 2025, based on the assumption that currency fluctuations, high raw material prices and a challenging competitive landscape will continue, we will aim for further revenue growth by enhancing RGM activities, in addition to rigorously undertaking proactive marketing investment and sales promotion centered on our core brands. We will also continue to tightly manage costs and strive for higher profits. Further, aiming at sustainable growth, we will continue to explore M&A and other investment opportunities and expand production facilities. Regarding our DEI initiatives, we seek to ensure that diverse employees exemplify our motto “Yatte Minahare – Go for it!” by promoting greater diversity of employee attributes and working to further build an organization conducive to accepting and leveraging differences. Moreover, underpinned by our mission “To Create Harmony with People and Nature,” our sustainability initiatives will involve redoubling our efforts related to water and greenhouse gases with our sights set on achieving our “Environmental Targets toward 2030,” and also more robustly engaging in the activities listed in the Suntory Group Plastic Policy. We will also continue to shore up our investments in sustainability. < Japan business > Designating our business strategies of “core brand innovation,” “vending machine business transformation,” and “supply chain structural reform” as the key priorities, we aim to grow revenue and profit. With respect to marketing activities, the Group will continue to further strengthen initiatives involving Suntory Tennensui, BOSS, Iyemon, GREEN DA •KA•RA and Tokucha. For Suntory Tennensui, we will continue to promote its unique brand value while strengthening our activities for flavored water products. For BOSS, we will continue to strengthen our activities for Craft BOSS, which has the two pillars of "Coffee series" and "Tea series," while strengthening our marketing activities for canned coffee products with the aim of revitalizing heavy users. To further expand the Iyemon brand, we will strengthen activities for Iyemon, Iyemon Koiaji (food with functional claims) and Iyemon Kyoto Blend. The Group will strive to get customers more accustomed to drinking Tokucha by further enhancing our marketing activities and conveying the appeal of Tokucha in terms of its unique functions. < Asis Pacific business > In Asia Pacific, the Group aims to achieve further growth of its core brands by leveraging its comprehensive strengths across the entire value chain, assuming continued robust demand in key markets. We will rigorously pursue revenue growth and ramp up production facilities to drive cost reduction activities. In the beverage business in Vietnam, the Group will continue to strengthen its sales activities while striving to accelerate further growth of core brands such as the energy drink Sting and tea beverage TEA+. In Thailand, the Group will strengthen the PEPSI brand and work to achieve further improvements in productivity, and continue reinforcing low-sugar products in order to capture demand driven by the rising health consciousness of consum ers. In Oceania, the Group will continue to focus on the energy drink V, a core brand, while driving further growth of the BOSS brand and expanding the Group’s product portfolio through the production and sale of RTD beverages. In the health supplement business, the Group will bolster marketing activities to maintain the sales trend of its mainstay product BRAND ’S Essence of Chicken. < Europe business > In Europe, the Group aims to achieve revenue growth by continuing core brand innovation, strengthening promotional activities and expanding its product portfolio, assuming that it will take time for demand to recover in key countries. The Group will maintain profitability through revenue growth, cost reduction and structural reform of its business. In France, the Group will strengthen the marketing for Oasis and Schweppes. In the UK, the Group seek to increase its market share by concentrating investment on Lucozade. In Spain, the Group will redouble its efforts with Schweppes in the off-premise and on-premise markets, while further
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- 8 - advancing in the structural reform of the on-premise business. < Americas business > The Group will enhance the core carbonated beverage category while working to further expand the growing non-carbonated beverage category. The Gr oup will also strive to accelerate revenue and profit growth by refining its pricing policy and supply chain. 4. Basic Concept Regarding Selection of Accounting Standard Considering the ongoing globalization of the business activities of the Group, the Group has applied the International Financial Reporting Standards (IFRS) from the fiscal year ended December 31, 2017, to improve the quality of the Group’s business management through unified accounting standards and to increase international comparability of its financial information in the capital markets.
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- 9 - 5. Consolidated Financial Statements a nd Significant Notes Thereto (Unaudited) (1) Consolidated statement of financial position Millions of yen As at December 31, 2023 As at December 31, 2024 Assets Current assets: Cash and cash equivalents 171,755 160,493 Trade and other receivables 309,923 341,028 Other financial assets 1,664 4,558 Inventories 115,967 118,412 Other current assets 28,175 34,206 Subtotal 627,486 658,699 Assets held for sale 11,421 1,842 Total current assets 638,907 660,541 Non-current assets: Property, plant and equipment 416,600 481,950 Right-o f-use assets 51,891 61,495 Goodwill 278,231 285,224 Intangible assets 495,339 530,886 Investments accounted for using the equity method 114 241 Other financial assets 14,482 14,534 Deferred tax assets 8,969 15,589 Other non-current assets 7,878 7,566 Total non-current assets 1,273,507 1,397,490 Total assets 1,912,415 2,058,032
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- 10 - Millions of yen As at December 31, 2023 As at December 31, 2024 Liabilities and equity Liabilities Current liabilities: Bonds and borrowings 49,431 26,666 Trade and other payables 430,812 460,147 Other financial liabilities 22,982 26,995 Accrued income taxes 19,926 22,054 Provisions 1,403 1,578 Other current liabilities 6,100 6,733 Subtotal 530,656 544,176 Liabilities directly associated with assets held for sale 5,073 - Total current liabilities 535,730 544,176 Non-current liabilities: Bonds and borrowings 25,000 550 Other financial liabilities 45,472 55,484 Post-employment benefit liabilities 14,323 15,240 Provisions 6,068 7,361 Deferred tax liabilities 93,954 111,666 Other non-current liabilities 6,838 8,274 Total non-current liabilities 191,657 198,578 Total liabilities 727,388 742,754 Equity Share capital 168,384 168,384 Share premium 182,229 185,311 Retained earnings 652,706 716,919 Treasury shares (0) (1) Other components of equity 84,050 138,973 Total equity attributable to owners of the Company 1,087,370 1,209,587 Non-controlling interests 97,656 105,690 Total equity 1,185,027 1,315,278 Total liabilities and equity 1,912,415 2,058,032
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- 11 - (2) Consolidated statement of profit or loss Millions of yen Year ended December 31, 2023 Year ended December 31, 2024 Revenue 1,591,722 1,696,765 Cost of sales (1,001,726) (1,049,885) Gross profit 589,996 646,879 Selling, general and administrative expenses (445,401) (477,965) Gain on investments accounted for using the equity method (27) 139 Other income 3,273 5,108 Other expenses (6,114) (13,912) Operating income 141,726 160,249 Finance income 4,281 5,551 Finance costs (4,226) (4,753) Profit before tax 141,781 161,047 Income tax expense (37,301) (43,417) Profit for the year 104,480 117,629 Attributable to: Owners of the Company 82,743 93,495 Non-controlling interests 21,736 24,134 Profit for the yea r 104,480 117,629 Earnings per share (Yen) 267.78 302.57
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- 12 - (3) Consolidated statement of comprehensive income Millions of yen Year ended December 31, 2023 Year ended December 31, 2024 Profit for the year 104,480 117,629 Other comprehensive income Items that will not be reclassified to profit or loss: Changes in the fair value of financial assets (5) 181 Remeasurement of defined benefit plans (1,098) 72 Total (1,104) 253 Items that may be reclassified to profit or loss: Translation adjustments of foreign operations 71,594 61,624 Changes in the fair value of cash flow hedges (241) 1,845 Changes in comprehensive income of investments accounted for using the equity method 117 90 Total 71,471 63,560 Other comprehensive income for the year, net of tax 70,366 63,813 Comprehensive income for the year 174,847 181,443 Attributable to: Owners of the Company 147,178 148,490 Non-controlling interests 27,669 32,952 Comprehensive income for the yea r 174,847 181,443
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- 13 - (4) Consolidated statement of changes in equity Millions of yen Attributable to owners of the Company Share capital Share premium Retained earnings Treasury shares Other compo- nents of equity Total Non- controlling interests Total equity Balance at January 1, 2023 168,384 182,229 594,773 (0) 19,834 965,220 94,883 1,060,104 Profit for the year 82,743 82,743 21,736 104,480 Other comprehensive income 64,434 64,434 5,932 70,366 Total comprehensive income for the year – – 82,743 – 64,434 147,178 27,669 174,847 Purchase of treasury shares (0) (0) (0) Dividends (25,028) (25,028) (25,027) (50,056) Transactions with non- controlling interests – 132 132 Reclassification to retained earnings 218 (218) – – Total transactions with owners of the Company – – (24,810) (0) (218) (25,029) (24,895) (49,924) Balance at December 31, 2023 168,384 182,229 652,706 (0) 84,050 1,087,370 97,656 1,185,027 Profit for the year 93,495 93,495 24,134 117,629 Other comprehensive income 54,995 54,995 8,818 63,813 Total comprehensive income for the year – – 93,495 – 54,995 148,490 32,952 181,443 Purchase of treasury shares (0) (0) (0) Dividends (29,354) (29,354) (19,713) (49,068) Transactions with non- controlling interests 3,082 3,082 (5,205) (2,123) Reclassification to retained earnings 72 (72) – – Total transactions with owners of the Company – 3,082 (29,282) (0) (72) (26,273) (24,918) (51,192) Balance at December 31, 2024 168,384 185,311 716,919 (1) 138,973 1,209,587 105,690 1,315,278
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- 14 - (5) Consolidated statement of cash flows Millions of yen Year ended December 31, 2023 Year ended December 31, 2024 Cash flows from operating activities Profit before tax 141,781 161,047 Depreciation and amortization 73,079 76,955 Impairment losses (reversal of impairment losses) 553 3,975 Interest and dividends income (4,225) (3,788) Interest expense 2,936 4,529 Loss (gain) on investments accounted for using the equity method 27 (139) Decrease (increase) in inventories (4,683) 2,132 Decrease (increase) in trade and other receivables (29,328) (20,706) Increase (decrease) in trade and other payables 26,729 8,123 Other (14,037) 1,780 Subtotal 192,833 233,908 Interest and dividends received 4,000 3,679 Interest paid (2,058) (4,531) Income tax paid (36,482) (39,326) Net cash inflow (outflow) from operating activities 158,292 193,730 Cash flows from investing activities Payments for property, plant and equipment and intangible assets (79,236) (108,307) Proceeds on sale of property, plant and equipment and intangible assets 173 1,790 Proceeds from sale of businesses 627 – Proceeds from sale of subsidiaries – 4,707 Other 636 512 Net cash inflow (outflow) from investing activities (77,798) (101,297) Cash flows from financing activities Increase (decrease) in short-term borrowings and commercial papers (4,799) (7,874) Repayments of long-term borrowings (30,000) (5,929) Redemption of bonds (15,000) (35,000) Payments of lease liabilities (15,475) (12,010) Dividends paid to owners of the Company (25,028) (29,354) Dividends paid to non-controlling interests (25,100) (19,713) Payments for acquisition of interests in subsidiaries from non-controlling interests – (2,152) Other (0) (0) Net cash inflow (outflow) from financing activities (115,404) (112,036) Net increase (decrease) in cash and cash equivalents (34,910) (19,603) Cash and cash equivalents at the beginning of the period (Statement of financial position) 200,630 171,755 Reclassification of cash and cash equivalents included in assets held for sale – 1,301 Cash and cash equivalents at the beginning of the year 200,630 173,057 Effects of exchange rate changes on cash and cash equivalents 7,337 7,039 Cash and cash equivalents included in assets held for sale (1,301) – Cash and cash equivalents at the end of the year 171,755 160,493
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- 15 - (6) Notes to consolidated financial statements (Going concern) The consolidated financial statements are prepared on going concern basis. (Significant accounting estimates) Valuation of goodwill and intangible assets with indefinite useful lives (1) Amounts recorded in the consolidated financial statements at the end of the fiscal year under review Goodwill ¥285,224 million Intangible assets with indefinite useful lives ¥473,935 million (2) Information on details of significant accounting estimates relating to the identified items The Company estimates recoverable amounts for impairment testing on goodwill and intangible assets with indefinite useful lives. The recoverable amount is calculated as the discounted present value of estimated future cash flows primarily based on the long-term growth rates in the business plan and after the applicable period of the business plan. The business plan used for impairment testing is formulated based on not only the growth rate of the beverages market having an impact on future revenue and operating income, and the effect of soaring raw material and energy prices, but also estimates of the effects of the sales strategies for each brand, and the sales and promotion strategies for each sales channel, such as off-premises and on-premises channels. Moreover, the growth rate is determined by taking into consideration the long-term average growth rate in the markets or countries to which these cash-generating units and groups of cash- generating units belong. If they differ from the actual results, it may impact the business performance and other indicators. (Segment information) The reportable segments are components of the Group for which separate financial information is available and regularly reviewed by management to make decisions about the allocation of resources and to assess segment performance. The Group manufactures and distributes soft drinks and foods, including mineral water, coffee drinks, tea drinks, carbonated drinks, sports drinks and food for specified health uses (FOSHU). The Company, together with its manufacturing and sales subsidiaries, operates in the domestic market, and its regional subsidiaries operate in overseas markets. Therefore, the Group comprises of four reportable segments: “Japan business,” “Asia Pacific business,” “Europe business” and “Americas business.” The intersegment transactions are considered on an arm’s length basis. The Group operates a single business, the manufacturing and distribution of soft drinks and foods; therefore, financial information by product and service is not prepared.
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- 16 - Profit or loss for each reportable segment of the Group is as follows. Year ended December 31, 2023 Millions of yen Reportable segment Segment total Reconciliations Consolidate d Japan Asia Pacific Europe Americas Revenue: External customers 708,141 371,435 339,274 172,871 1,591,722 – 1,591,722 Intersegment 93 5 1,026 – 1,125 (1,125) – Total revenue 708,234 371,440 340,301 172,871 1,592,847 (1,125) 1,591,722 Segment profit 40,455 43,075 51,725 20,982 156,239 (14,512) 141,726 (Depreciation and amortization) 32,621 17,286 13,942 5,825 69,675 3,404 73,079 Year ended December 31, 2024 Millions of yen Reportable segment Segment total Reconciliations Consolidate d Japan Asia Pacific Europe Americas Revenue: External customers 731,814 402,049 368,081 194, 819 1,696,765 – 1,696,765 Intersegment 112 0 1,225 – 1,338 (1,338) – Total revenue 731,926 402,050 369,306 194,819 1, 698,103 (1,338) 1,696,765 Segment profit 49,083 45,404 60,356 23,684 178,529 (18,279) 160,249 (Depreciation and amortization) 32,801 18,925 14,316 7,109 73,154 3,801 76,955 “Reconciliations” to segment profit represents overhead costs incurred by the Company to manage the Group’s operations and is not allocated to each reportable segment. Segment profit agrees with operating income presented in the consolidated statement of profit or loss. Geographical areas are comprised of the following countries. Japan business: Japan Asia Pacific business: Vietnam, Thailand , New Zealand, Australia, and others Europe business: France, UK, Spain, and others Americas business: United States of America Revenue from external customers is as follows: Millions of yen Japan Asia Pacific Europe Americas Total Year ended December 31, 2023 708,141 371,409 339,300 172,871 1,591,722 Year ended December 31, 2024 731,814 401,918 368,212 194,819 1,696,765 Revenue is allocated to countries or areas based on the customers’ location for the analysis above. Non-current assets by reportable segment is as follows: Millions of yen Japan Asia Pacific Europe Americas Total As at December 31, 2023 352,081 208,937 586,151 94,891 1,242,062 As at December 31, 2024 365,036 254,815 627,885 111,821 1,359,558
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- 17 - Non-current assets (property, plant and equipment, right-of-use assets, intangible assets and goodwill) is allocated to each reportable segment based on their locations for the above analysis. There is no customer to which sales exceeds 10% of the Group’s total revenue. (Per share information) The basis for calculating earnings per share is as follows. There is no diluted share issued. Millions of yen Year ended December 31, 2023 Year ended December 31, 2024 Profit for the year attributable to owners of the Company 82,743 93,495 Profit for the year not attributable to ordinary shareholders of the Company – – Profit for the year used in the calculation of earnings per share 82,743 93,495 Weighted-average number of ordinary shares (Shares) 308,999,870 308,999,786 Earnings per share (Yen) 267.78 302.57 (Subsequent events) No items to report.