FINANCIAL REPORT
Asahi Group Holdings, Ltd.
Contents
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Consolidated Statement of Financial Position
Consolidated Statement of Profit or Loss Consolidated Statement of Comprehensive Income Consolidated Statement of Changes in Equity Consolidated Statement of Cash Flows
Notes to The Consolidated Financial Statements
Independent Auditor's Report
1 | ASAHI GROUP HOLDINGS, LTD. | FINANCIAL REPORT 2022 | 2 |
Consolidated Statement of Financial Position
Asahi Group Holdings, Ltd. and Consolidated Subsidiaries
As of December 31, 2021 and December 31, 2022
Millions of yen
Notes | Previous year | Current year | |
(as of December 31, 2021) | (as of December 31, 2022) | ||
Assets | |||
Current assets | |||
Cash and cash equivalents | 7 | 52,743 | 37,438 |
Trade and other receivables | 8 31 | 395,974 | 415,676 |
Inventories | 9 | 200,828 | 234,969 |
Income tax receivables | 2,232 | 7,354 | |
Other financial assets | 13 | 7,119 | 10,028 |
Other current assets | 14 | 34,081 | 32,062 |
Subtotal | 692,980 | 737,529 | |
Assets held for sale | 10 | 7,196 | - |
Total current assets | 700,176 | 737,529 | |
Non-current assets | |||
Property, plant and equipment | 11 | 818,398 | 834,721 |
Goodwill and intangible assets | 12 | 2,819,634 | 3,027,929 |
Investments accounted for using equity method | 37 | 6,640 | 6,722 |
Other financial assets | 13 | 126,295 | 125,780 |
Deferred tax assets | 28 | 34,549 | 54,888 |
Net defined benefit assets | 18 | 23,981 | 24,004 |
Other non-current assets | 14 | 18,071 | 18,767 |
Total non-current assets | 3,847,572 | 4,092,815 | |
Total assets | 4,547,748 | 4,830,344 |
See accompanying notes.
Millions of yen
Notes | Previous year | Current year | |
(as of December 31, 2021) | (as of December 31, 2022) | ||
Liabilities and equity | |||
Liabilities | |||
Current liabilities | |||
Trade and other payables | 15 | 531,573 | 591,869 |
Bonds and borrowings | 16 31 34 | 423,652 | 367,267 |
Income tax payables | 36,841 | 30,906 | |
Provisions | 19 | 13,253 | 14,103 |
Other financial liabilities | 16 | 111,585 | 135,983 |
Other current liabilities | 20 | 125,985 | 125,816 |
Total current liabilities | 1,242,891 | 1,265,946 | |
Non-current liabilities | |||
Bonds and borrowings | 16 31 34 | 1,172,551 | 1,130,042 |
Net defined benefit liabilities | 18 | 24,053 | 20,349 |
Deferred tax liabilities | 28 | 203,579 | 213,494 |
Other financial liabilities | 16 | 139,194 | 131,792 |
Other non-current liabilities | 19 20 | 6,330 | 5,774 |
Total non-current liabilities | 1,545,709 | 1,501,452 | |
Total liabilities | 2,788,600 | 2,767,399 | |
Equity | |||
Issued capital | 21 | 220,044 | 220,044 |
Share premium | 21 | 161,731 | 161,793 |
Retained earnings | 21 | 1,064,644 | 1,165,542 |
Treasury shares | 21 | (923) | (1,178) |
Other components of equity | 311,607 | 514,532 | |
Total equity attributable to owners of parent | 1,757,104 | 2,060,734 | |
Non-controlling interests | 2,043 | 2,210 | |
Total equity | 1,759,148 | 2,062,945 | |
Total liabilities and equity | 4,547,748 | 4,830,344 |
See accompanying notes.
3 | ASAHI GROUP HOLDINGS, LTD. | FINANCIAL REPORT 2022 | 4 |
Consolidated Statement of Profit or Loss
Asahi Group Holdings, Ltd. and Consolidated Subsidiaries
For the years ended December 31, 2021 and 2022
Millions of yen
Notes | Previous year | Current year | |
(ended December 31, 2021) | (ended December 31, 2022) | ||
Revenue | 24 | 2,236,076 | 2,511,108 |
Cost of sales | (1,383,195) | (1,589,272) | |
Gross profit | 852,881 | 921,835 | |
Selling, general and administrative expenses | 25 | (634,940) | (678,018) |
Other operating income | 26 | 46,055 | 16,850 |
Other operating expense | 12 26 | (52,096) | (43,619) |
Operating profit | 211,900 | 217,048 | |
Finance income | 27 | 5,754 | 5,498 |
Finance costs | 27 | (18,516) | (17,221) |
Share of profit (loss) of investments accounted for using equity method | 37 | 687 | 667 |
Profit before tax | 199,826 | 205,992 | |
Income tax expense | 28 | (46,003) | (54,275) |
Profit | 153,823 | 151,717 | |
Profit attributable to: | |||
Owners of parent | 153,500 | 151,555 | |
Non-controlling interests | 322 | 162 | |
Total | 153,823 | 151,717 | |
Basic earnings per share (Yen) | 29 | 302.92 | 299.10 |
Diluted earnings per share (Yen) | 29 | 302.89 | 299.06 |
See accompanying notes.
Consolidated Statement of Comprehensive Income
Asahi Group Holdings, Ltd. and Consolidated Subsidiaries
For the years ended December 31, 2021 and 2022
Millions of yen
Notes | Previous year | Current year |
(ended December 31, 2021) | (ended December 31, 2022) | |
Consolidated Statement of Changes in Equity
Asahi Group Holdings, Ltd. and Consolidated Subsidiaries
For the years ended December 31, 2021 and 2022
Millions of yen | |||||||||
Equity attributable to owners of parent | |||||||||
Other components of equity | |||||||||
Notes | Changes in fair | ||||||||
value of financial | |||||||||
instruments | |||||||||
measured at fair Remeasurements | |||||||||
Share | Retained | Treasury | value through | of defined | Cash flow | ||||
Issued capital | premium | earnings | shares | OCI | benefit plans | hedges | |||
Balance as of January 1, 2021 | 220,044 | 161,783 | 967,230 | (1,031) | 39,605 | - | 2,526 | ||
Comprehensive income | |||||||||
Profit | 153,500 | ||||||||
Other comprehensive income | (8,080) | 4,584 | 5,072 | ||||||
Total comprehensive income | - | - | 153,500 | - | (8,080) | 4,584 | 5,072 | ||
Transfer to non-financial assets | (111) | ||||||||
Transactions with owners | 22 | ||||||||
Dividends | (54,220) | ||||||||
Purchase of treasury shares | (26) | ||||||||
Disposal of treasury shares | 0 | 134 | |||||||
Share-based | 23 | ||||||||
payment transaction | (52) | ||||||||
Transfer from other components | |||||||||
of equity to retained earnings | (1,865) | 6,450 | (4,584) | ||||||
Other increase (decrease) | |||||||||
Total contributions by owners and | |||||||||
distribution to owners | - | (52) | (56,085) | 108 | 6,450 | (4,584) | - | ||
Total transactions with owners | - | (52) | (56,085) | 108 | 6,450 | (4,584) | - | ||
Balance as of December 31, 2021 | 220,044 | 161,731 | 1,064,644 | (923) | 37,975 | - | 7,486 |
See accompanying notes.
Millions of yen | |||||||
Equity attributable to owners of parent | |||||||
Other components of equity | |||||||
Notes | Translation | ||||||
differences on | Total other | Total equity | |||||
foreign | components | attributable to | Non-controlling | Total | |||
Costs of hedging | operations | of equity | owners of parent | interests | equity | ||
Balance as of January 1, 2021 | (773) | 126,739 | 168,097 | 1,516,124 | 1,691 | 1,517,816 | |
Comprehensive income | |||||||
Profit | - | 153,500 | 322 | 153,823 | |||
Other comprehensive income | 172 | 140,006 | 141,755 | 141,755 | 43 | 141,799 | |
Total comprehensive income | 172 | 140,006 | 141,755 | 295,255 | 366 | 295,622 | |
Transfer to non-financial assets | (111) | (111) | (111) | ||||
Transactions with owners | 22 | ||||||
Dividends | - | (54,220) | (13) | (54,233) | |||
Purchase of treasury shares | - | (26) | (26) | ||||
Disposal of treasury shares | 23 | - | 135 | 135 | |||
Share-based payment transaction | - | (52) | (52) |
Profit
Other comprehensive income
Items that will not be reclassified to profit or loss
Changes in fair value of financial instruments measured at fair value through other comprehensive income
Remeasurements of defined benefit plans
Items that might be reclassified to profit or loss
153,823151,717
30 | (8,080) | (991) |
18 30 | 4,607 | 3,776 |
Transfer from other components | |||||||
of equity to retained earnings | 1,865 | - | - | ||||
Other increase (decrease) | - | - | - | ||||
Total contributions by owners and | |||||||
distribution to owners | - | - | 1,865 | (54,163) | (13) | (54,177) | |
Total transactions with owners | - | - | 1,865 | (54,163) | (13) | (54,177) | |
Balance as of December 31, 2021 | (601) | 266,746 | 311,607 | 1,757,104 | 2,043 | 1,759,148 |
See accompanying notes.
Cash flow hedges | 30 31 | 5,071 | (2,865) |
Costs of hedging | 30 31 | 172 | 122 |
Translation differences on foreign operations | 30 | 139,707 | 209,867 |
Share of other comprehensive income of entities accounted for | 30 | ||
using equity method | 319 | 155 | |
Total other comprehensive income | 30 | 141,799 | 210,063 |
Total comprehensive income | 295,622 | 361,781 | |
Total comprehensive income attributable to: | |||
Owners of parent | 295,255 | 361,604 | |
Non-controlling interests | 366 | 177 |
See accompanying notes.
5 | ASAHI GROUP HOLDINGS, LTD. | FINANCIAL REPORT 2022 | 6 |
Millions of yen | |||||||||
Equity attributable to owners of parent | |||||||||
Other components of equity | |||||||||
Notes | Changes in fair | ||||||||
value of financial | |||||||||
instruments | |||||||||
measured at fair Remeasurements | |||||||||
Share | Retained | Treasury | value through | of defined | Cash flow | ||||
Issued capital | premium | earnings | shares | OCI | benefit plans | hedges | |||
Balance as of January 1, 2022 | 220,044 | 161,731 | 1,064,644 | (923) | 37,975 | - | 7,486 | ||
Comprehensive income | |||||||||
Profit | 151,555 | ||||||||
Other comprehensive income | (991) | 3,765 | (2,866) | ||||||
Total comprehensive income | - | - | 151,555 | - | (991) | 3,765 | (2,866) | ||
Transfer to non-financial assets | (2,042) | ||||||||
Transactions with owners | 22 | ||||||||
Dividends | (55,738) | ||||||||
Purchase of treasury shares | (263) | ||||||||
Disposal of treasury shares | 0 | 8 | |||||||
Share-based | 23 | 61 | |||||||
payment transaction | |||||||||
Transfer from other components | 5,081 | (1,316) | (3,765) | ||||||
of equity to retained earnings | |||||||||
Other increase (decrease) | |||||||||
Total contributions by owners and | |||||||||
distribution to owners | - | 62 | (50,657) | (255) | (1,316) | (3,765) | - | ||
Total transactions with owners | - | 62 | (50,657) | (255) | (1,316) | (3,765) | - | ||
Balance as of December 31, 2022 | 220,044 | 161,793 | 1,165,542 | (1,178) | 35,667 | - | 2,577 |
See accompanying notes.
Millions of yen | ||||||||
Equity attributable to owners of parent | ||||||||
Other components of equity | ||||||||
Notes | Translation | |||||||
differences on | Total other | Total equity | ||||||
foreign | components | attributable to | Non-controlling | Total | ||||
Costs of hedging | operations | of equity | owners of parent | interests | equity | |||
Balance as of January 1, 2022 | (601) | 266,746 | 311,607 | 1,757,104 | 2,043 | 1,759,148 | ||
Comprehensive income | ||||||||
Profit | - | 151,555 | 162 | 151,717 | ||||
Other comprehensive income | 122 | 210,019 | 210,048 | 210,048 | 15 | 210,063 | ||
Total comprehensive income | 122 | 210,019 | 210,048 | 361,604 | 177 | 361,781 | ||
Transfer to non-financial assets | (2,042) | (2,042) | (2,042) | |||||
Transactions with owners | 22 | |||||||
Dividends | - | (55,738) | (15) | (55,753) | ||||
Purchase of treasury shares | - | (263) | (263) | |||||
Disposal of treasury shares | 23 | - | 8 | 8 | ||||
Share-based payment transaction | - | 61 | 61 | |||||
Transfer from other components | (5,081) | - | - | |||||
of equity to retained earnings | ||||||||
Other increase (decrease) | - | - | 4 | 4 | ||||
Total contributions by owners and | ||||||||
distribution to owners | - | - | (5,081) | (55,931) | (10) | (55,941) | ||
Total transactions with owners | - | - | (5,081) | (55,931) | (10) | (55,941) | ||
Balance as of December 31, 2022 | (478) | 476,765 | 514,532 | 2,060,734 | 2,210 | 2,062,945 |
See accompanying notes.
Consolidated Statement of Cash Flows
Asahi Group Holdings, Ltd. and Consolidated Subsidiaries
For the years ended December 31, 2021 and 2022
Millions of yen
Notes | Previous year | Current year | |
(ended December 31, 2021) | (ended December 31, 2022) | ||
Cash flows from (used in) operating activities | |||
Profit before tax | 199,826 | 205,992 | |
Depreciation and amortization expenses | 12 | 134,815 | 140,419 |
Impairment losses | 13,442 | 18,490 | |
Interest and dividend income | (2,880) | (2,656) | |
Interest expenses | 12,700 | 12,306 | |
Share of loss (profit) of investments accounted for using equity method | (687) | (667) | |
Loss (gain) on sales and disposals of property, plant and equipment | (31,083) | (9,540) | |
Decrease (increase) in trade receivables | (11,812) | (826) | |
Decrease (increase) in inventories | (14,566) | (27,957) | |
Increase (decrease) in trade payables | 9,598 | 25,737 | |
Increase (decrease) in accrued alcohol tax | 9,106 | (4,062) | |
Increase (decrease) in net defined benefit assets and liabilities | 2,084 | 1,441 | |
Other | 75,992 | 3,369 | |
Subtotal | 396,535 | 362,049 | |
Interest and dividends received | 3,116 | 3,344 | |
Interest paid | (11,224) | (10,839) | |
Income taxes paid | (50,615) | (88,562) | |
Net cash flows from (used in) operating activities | 337,812 | 265,991 | |
Cash flows from (used in) investing activities | |||
Purchase of property, plant and equipment | (80,803) | (83,049) | |
Proceeds from sales of property, plant and equipment | 46,321 | 25,109 | |
Purchase of intangible assets | (11,832) | (16,796) | |
Proceeds from sales of intangible assets | 18,740 | 868 | |
Purchase of investment securities | (464) | (552) | |
Proceeds from sales of investment securities | 30,159 | 8,483 | |
Proceeds from sales of investment in an entity accounted for using | |||
equity method | - | 676 | |
Purchase of shares of subsidiaries and others resulting in change in | 33 | ||
scope of consolidation | (14,762) | (2,661) | |
Proceeds from sales of shares of subsidiaries resulting in change in | 33 | ||
scope of consolidation | 396 | - | |
Payments for contingent consideration | - | (2,357) | |
Other | (2,103) | 1,091 | |
Net cash flows from (used in) investing activities | (14,348) | (69,186) | |
Cash flows from (used in) financing activities | 34 | ||
Increase (decrease) in short-term borrowings | (440,775) | (8,527) | |
Payments of lease liabilities | 34 | (25,215) | (23,307) |
Proceeds from long-term borrowings | 34 | 191,000 | - |
Repayments of long-term borrowings | 34 | (183,688) | (51,460) |
Proceeds from issuance of bonds | 34 | 282,048 | 60,000 |
Redemption of bonds | 34 | (88,328) | (140,000) |
Purchase of treasury shares | 22 | (26) | (263) |
Dividends paid | (54,220) | (55,738) | |
Other | (1,119) | (258) | |
Net cash flows from (used in) financing activities | (320,325) | (219,556) | |
Effect of exchange rate changes on cash and cash equivalents | 1,144 | 7,447 | |
Net increase (decrease) in cash and cash equivalents | 4,283 | (15,304) | |
Cash and cash equivalents at beginning of period | 7 | 48,460 | 52,743 |
Cash and cash equivalents at end of period | 7 | 52,743 | 37,438 |
See accompanying notes.
7 | ASAHI GROUP HOLDINGS, LTD. | FINANCIAL REPORT 2022 | 8 |
Notes to the Consolidated Financial Statements
Asahi Group Holdings, Ltd. and Consolidated Subsidiaries
1. Reporting Entity
Asahi Group Holdings, Ltd. ('the Company') is a corporation domiciled in Japan. The Company and its subsidiaries ('the Group') are engaged primarily in manufacturing and marketing of alcohol beverages, soft drinks, and food.
2. Basis of Preparation
The Group's consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ('IFRS'). The Company is qualified as a "Specified Company" as provided in Article 1-2 of "Ordinance on Terminology, Forms and Preparation Methods of Consolidated Financial Statements" (Ordinance of the Ministry of Finance No. 28 of 1976). Article 93 of this ordinance allows Specified Companies to prepare consolidated financial statements under IFRS. The Group's consolidated financial statements for the year ended December 31, 2022 were authorized for issue by Atsushi Katsuki, President and Representative Director, CEO, and Kaoru Sakita, Chief Financial Officer on March 28, 2023.
The Group's consolidated financial statements are prepared on the cost basis, except for the financial instruments and other items as described in "4. Significant Accounting Policies".
The preparation of consolidated financial statements in conformity with IFRS requires accounting estimates on certain critical items. It also requires management to make judgments in applying the Group's accounting policies.
The Group's consolidated financial statements are presented in Japanese yen, which is the functional currency of the Company.
Amounts presented in the consolidated financial statements are rounded down to the nearest million yen.
3. Standards and Interpretations that have been issued but not yet applied
The standard that has been newly issued or amended by the approval date of the consolidated financial statements and will be effective and applied in the future periods is as follows. The impact of the standard to be applied on the Group's consolidated financial statements is under review, and not estimable at this moment.
The First Application | Description of the New Standard | |||
No. | Title | Mandatory Application | by the Group | or the Amendment |
IFRS17 | Insurance | Annual periods | The annual period | Formulate consistent accounting model for |
Contracts | beginning on or after | ending December 31, | insurance contracts | |
January 1, 2023 | 2023 |
4. Significant Accounting Policies
The significant accounting policies applied in the preparation of the consolidated financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.
(1) Consolidation
(i) Subsidiaries
Subsidiaries are entities over which the Group has control. The Group assesses that it controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.
Financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control is lost. Amounts reported by subsidiaries are adjusted to conform to the Group's accounting policies.
Intra-group transactions, balances and any unrealized gains or losses arising from transactions within the Group are eliminated to prepare the consolidated financial statements.
Subsidiaries whose reporting date is different from that of the Group are consolidated based on the provisional closing information as of the Group's reporting date.
(ii) Associates and Joint Ventures
Associates are entities where the Group has significant influence over the financial and operating policies. It is presumed that the Group has significant influence when it holds more than 20 percent of the voting power of the investee. A joint venture is a joint arrangement where the parties that have joint control of the arrangement have rights to the net assets of the arrangement.
Investments in associates and joint ventures are accounted for using the equity method ('equity-accounted investees'). Under the equity method, an investment is initially recognized at cost.
The consolidated financial statements include the Group's share of changes equity-accounted investees from the date that the Group obtained significant influence or joint control until the date on which the Group loses significant influence or joint control.
The Group's investments include goodwill recognized on the acquisition.
Necessary adjustments are made when accounting policies of the associates and joint ventures are different from those of the Group to retain consistency.
(2) Business Combinations
The Group applies the acquisition method to business combinations. The consideration is measured at fair value on the acquisition date which represents the total fair value of the assets transferred, the liabilities assumed and the equity instruments issued by the Group. The Group recognizes goodwill for the excess of total consideration paid, amount of non-controlling interest in the acquiree, and the fair value of the acquirer's previously held equity interest in the acquiree over the net value of identifiable assets and assumed liabilities as of the date of the combination. Negative goodwill is recognized immediately in profit or loss.
The Group elects to recognize non-controlling interests in the acquiree for each business combination, either at fair value or at the proportionate share of the identifiable net assets at the acquisition date, elected on a transaction-by-transaction basis.
Acquisition-related costs are expensed as incurred. Additional acquisition of non-controlling interest after the control obtained is accounted as equity transactions, and goodwill does not arise from such transactions accordingly.
The Group applies book value accounting to acquisitions under common control, which are business combinations in which all of the combining entities or businesses are ultimately controlled by the same party or parties both before and after the business combinations, and that control is not transitory.
(3) Foreign Currency Translation
(i) Functional currency and presentation currency
Items included in financial statements of each company of the Group are measured using the currency of the primary economic environment in which the company operates (hereinafter referred to as the "functional currency"). The consolidated financial statements are presented in Japanese Yen, which is the presentation currency of the Group.
(ii) Transactions and Balances
Foreign currency transactions are translated into functional currencies using the exchange rate at the date of the transac- tions. Foreign exchange differences arising from settlement of transactions and those arising from the translation of monetary assets and liabilities denominated in foreign currencies using the exchange rate at the end of the fiscal year are recognized in profit or loss. However, exchange differences arising from financial assets measured through other comprehensive income, qualifying cash flow hedges and hedges of net investments in foreign operations are recognized in other comprehensive income.
(iii) Foreign operation
Operating results and financial position of all the foreign operations using a functional currency that is not the presentation currency are translated into the presentation currency in the ways described below. Among the foreign operations, there is no company that uses a currency of a hyperinflationary economy.
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Asahi Group Holdings Ltd. published this content on 13 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 April 2023 03:14:01 UTC.