Financial Results
for the Nine Months Ended September 30, 2013 — Consolidated(Based on Japanese GAAP)
October 31, 2013

Company name

Sapporo Holdings Limited

Security code
Listings
URL

2501
Tokyo Stock Exchange (First Section); Sapporo Securities Exchange
http://www.sapporoholdings.jp/english/

Representative
Contact

Tsutomu Kamijo, President, Representative Director and Group CEO
Tatsuya Komatsu, Director of the Corporate Communications Department

Telephone
Scheduled dates:+81-3-5423-7407

Filing of quarterly financial report

November 13, 2013

Commencement of dividend payments-

Supplementary information to the quarterly earnings results

AvailableYes(mainly targeted at institutional
investors and analysts)

Quarterly earnings results briefing held

1. Consolidated Financial Results for the Nine Months Ended September 30, 2013
(January 1 – September 30, 2013)(Amounts in million yen rounded down to the nearest million yen)

(1) Operating Results(Percentage figures represent year-over-year changes)
Net sales

Operating income

Ordinary income

Net income

million yen%

million yen%

million yen%

million yen%

Nine months ended
September 30, 2013

369,531

4.2

9,440

68.9

8,868

100.1

5,474

817.1

Nine months ended
September 30, 2012

354,780

10.6

5,590

(54.4)

4,431(58.1)

596

4.1

Note: Accumulated other comprehensive income
Nine months ended September 30, 2013 18,668 million yen (585.4%)
Nine months ended September 30, 2012

2,723 million yen (-%)

Net income per
share

Diluted net income
per share

Yen

Yen

Nine months ended
September 30, 2013

14.01

-

Nine months ended
September 30, 2012

1.52

-

1

(2) Financial Position

Total assets

Net assets

Shareholders’equity ratio

Net assets per
sharemillion yen

million yen%

yen

September 30, 2013

597,707

149,42524.4

374.25

December 31, 2012

597,636

134,94622.1

336.60Note: Shareholders’ equity
September 30, 2013: 146,065 million yen
December 31, 2012: 131,795 million yen

2. Dividends
Dividend per share
Record date or
periodEnd Q1End Q2End Q3Year-end

Full year

yen

yen

yen

yen

yen

Year ended
December 31, 2012

—

0.00

—

Year ending
December 31, 2013

—

0.00

—

Year ending
December 31, 2013
(forecast)

7.00

7.00

7.00

7.00

Note: No changes were made to dividend forecasts ni the Nine months ended September 30, 2013

3. Forecast of Consolidated Earnings for the Year Ending December 31, 2013
(January 1 – December 31, 2013)(Percentage figures represent year-over-year changes)
Net
Net sales

Operating income

Ordinary income

Net income

incomeper share

Year ending
December 31,
2013

million yen%

million yen%

million yen%

million yen%

yen

512,000

4.0

15,300

6.1

14,000

2.3

5,500

2.0

14.05

Note: No Changes have been made to earnings forecastssince the latest release.

4. Other*For details, see "2. Other" on page 9.
(1) Changes in significant subsidiaries during the nine months ended September 30, 2013 : Yes*Changes affecting the status of significant subsidiaries (scope of consolidation)
Newly consolidated: -Newly excluded: Sapporo Beverage Co., Ltd.

2

(Note) Sapporo Beverage Co., Ltd. was absorbed by Pokka Sapporo Food & Beverage Ltd. via amerger conducted on January 1, 2013. Sapporo Beverage Co., Ltd. was dissolved and ceased to
be a subsidiary of the Company; while Pokka Sapporo Food & Beverage Ltd. became a subsidiary.
(2) Simplified accounting: Yes*Use of simplified accounting methods and/or accounting methods specific to quarterly consolidated
financial statements(3) Changes in accounting policy, changes in accountingestimates, and retrospective restatement
1) Changes in accordance with amendments to accounting standards etc.: None
2) Changes other than 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
Note: For details, see “2. Other” on page 9.
(4) Number of shares issued and outstanding (common stock)1) Number of shares issued at end of period (treasury stock included):
September 30, 2013: 393,971,493 shares
December 31, 2012: 393,971,493 shares
2) Number of shares held in treasury at end of period:
September 30, 2013: 3,681,858 shares
December 31, 2012:
2,418,030 shares
3) Average number of outstanding shares during the period:
Nine months ended September 30, 2013:
Nine months ended September 30, 2012:

390,695,181 shares
391,562,666 shares*Quarterly review status
The quarterly financial results are not subject to quarterly reviews pursuant to the Financial
Instruments and Exchange Act. The quarterly review of the quarterly financial results hereinhad
not been completed as of the date of this document.
Appropriate Use of Earnings Forecasts and Other Important Information
This document contains projections and other forward-looking statements based on information
available to the Company as of the date of this document. Actual results may differ from thoseexpressed or implied by forward-looking statements due to various factors.

3

1. Analysis of Operating Results
Consolidated Financial Results for the Nine Months ended September 30, 2013
During the first nine months of 2013 (January 1 – September 30, 2013), the Japanese
economy continued to see some positive developments amid a backdrop of monetaryeasing and economic stimulus measures. However, the consumer-spending environment
remained clouded in uncertainty.
Amid this environment, the SAPPORO Group posted a solid year-over-year gain in sales,with gains driven by the Japanese Alcoholic Beverage and International businesses. The
Japanese Alcoholic Beverage Business enjoyed higher sales v olumes for its beer and beertype beverages, while the International Business benefited from steady sales volume growthin North America and Vietnam and the weaker yen. Sales over the first three quarters of theyear were also boosted by the inclusion of r esults from two recently consolidated
subsidiaries, with Pokka Ace (M) SDN. BHD. added in January 2013 to the Food & Soft
Drinks Business, and Silver Springs Citrus, Inc., the largest US maker of private-brand chilleddrinks, consolidated as part of the International Business in April 2012.
Group operating income increased significantly year over year thanks to higher sales andlower marketing expenses at the Japanese Alcoholic Beverage Business, as well as to sales
expansion at the International Business ’ operations in North America and Vietnam.
As a result of the above factors, in the first nine months of 2013, the Sapporo Group
posted consolidated sales of ¥36 9.5 billion (up ¥14.7 billion, or 4%, year over year),
operating income of ¥ 9.4 billion (up ¥3.8 billion, or 69%), ordinary income of ¥8. 8 billion (up¥4.4 billion, or 100%), and net income of ¥5.4 billion (up ¥4.8 billion, or 817%, year overyear).
The first quarter of 2013 marked the startup of operations at Pokka Sapporo Food &Beverage Ltd., t he surviving entity following the merger of Pokka Corporation and Sapporo
Beverage Co., Ltd.

Segment information is outlined below. From the beginning of the current fiscal year ,Sapporo Logistics Systems Co., Ltd., which was previously included in the Japanese
Alcoholic Beverages segment, and Pokka Logistics Co., Ltd., which was previously includedin the Food & Soft Drinks segment, were reclassified to the Other segment. On July 1, 2013,
Pokka Logistics Co., Ltd., was dissolved and its operations merged into Sapporo Logistics
Systems Co., Ltd.
In addition, Pokka Food (Singapore) Pte. Ltd. was moved from the Food & Soft Drinks
segment to the Restaurants segment, and on April 1, 2013, the company’s name waschanged to Sapporo Lion (Singapore) Pte. Ltd.
To enable year-over-year comparisons in this document, figures for the year -earlier period
have been adjusted to reflect the new segmentation.

4

Japanese Alcoholic Beverages
We estimate that total domestic demand for beer and beer-type beverages in the first
three quarters of 2013 declined 1% year over year. Beer and happoshu sales volumes
declined slightly, while sales volume s for new-genre beer slowed but continued to show
year-over-year growth.
Under these market conditions, the Japanese Alcoholic Beverage Business continued toinvest management resources in its core beer brands while striving to expand the Sapporo
fan base by energetically introducing new value proposals. The business also continued toestablish the foundations for growth of its nonalcoholic beer beverages and ready-to-drink(RTD)* cocktails while solidifying its wine & western spirits business and its Japaneseshochu business. Through this diversification of our product offerings, we are endeavoring
to raise the Sapporo brand value.
In the beer and beer-type beverages category, our core premium Yebisu brand achieved ayear-over-year gain in sales volume, supported by the February launch of thelimited-volume version Kaori Hanayagu Yebisu and the May release of Yebisu PremiumBlack. In the new-genre beer category, we followed up the February launch of renewal
versions of Mugi to Hop and Mugi to Hop Black with the introduction of the limited-volume
Mugi to Hop Red in April and September. These new offerings were favorably received byconsumers. In June, we launched Goku Zero, the world’s first beer-type beveragewith zero purine bodies, and the new offering has been favorably received, with sales aheadof targets. As a result, sales of our beer and beer-flavored beverages rose year over year in
the first three quarters of 2013, and we increased our market share.
In the nonalcoholic beer category , our products continue to receive strong customer
support, as indicated by the successful launch in February of renewal versions of Sapporo
Premium Alcohol Free and Sapporo Premium Alcohol Free Black and the sale ofbonus-sized canned limited-volume versions in July.
In the RTD category, the highly favorable response we received for the limited-volume
seasonal release in April of Sapporo Otoko Ume Sour , developed in collaboration with
Nobel Confectionary Co., Ltd., encou raged us to launch the product as a year -round offeringin September, and sales volume is currently ahead of our targets. Amid rising demand forour bottled RTDs, we followed our earlier success with a bottled version of Bacardi Mojito bylaunching a bottl ed Bacardi Pina Colada Fizz in July, as we continue to raise recognition andbuild a larger fan base for the Bacardi brand in Japan.
Among wine offerings, our core imported wine, Yellow Tail, came out with Yellow Tail
Sweet Red Roo in September, further e nhancing the brand’s lineup. Our mainstay domestic
premium brand, Grand e Polaire, also continued to enjoy strong customer support, andoverall wine sales during the first nine months of 2013 rose above the previous year’s level.
Our western spirits business enjoyed rising sales volumes, with strong contributions from
Bacardi products, including the Bacardi Classic Cocktails Mojito.
The shochu business continued to post strong year-over-year sales gains, driven bycontinued brisk sales of two blended shochus introduced in 2012– Imo Shochu Kokuimo

5and Mugi Shochu Koimugi.
Overall, the Japanese Alcoholic Beverage Business posted sales of ¥195.3 billion (up¥3.1 billion, or 2%, year over year) in the first three quarters of 2013. The gain in sales
together with tighter cost controls, beginning with marketing expenses, has enabled thebusiness to post operating income of ¥5. 5 billion (up ¥4.6 billion, or 541%, year over year).
* (RTD, or ready-to-drink, beverages are already-mixed, low-alcohol content cocktail-like beverages thatcan be consumed as is immediately after opening.)

International Business
In North America, where the timing of a full -fledged economic recovery remains unclear,
we estimate that total demand in the beer market declined 2–3% year over year in the firstnine months of 2013. The Asian beer market, however, continues to grow steadily,
supported by the region’s fast -growing economies.
In this environment, our International Business segment continued marketing activities
targeting the premium beer market, where it has core strengths. Canadian subsidiary
SLEEMAN BREWERIES posted a 4% year-over-year increase in unit sales (excluding
outsourced production of Sappo ro brand products and sales of domestic brands), extending
its growth streak to a seventh year . Sapporo USA achieved a 7% year -over-year increase insales volumes of Sapporo bra nd beers, and Silver Springs Citrus, in which we acquired a
51% equity stake in January 2012, also continued to steadily increase sales volumes.
In Vietnam, we continued the full -fledged marketing offensive we began in April 2012 aspart of efforts to build market recognition for the Sapporo brand. These efforts produced
strong year-over-year sales gains in the first nine months of 2013, with sales particularly
strong during the traditional Tet (New Year’s holiday) sales campaign. In South Korea, ourlocal partner, a Maeil Dairies’ subsidiary in which we have a 15% equity stake, continued its
efforts to expand sales of Sapporo brand beers to the household and commercial markets inthat country. In Oceania, we con tinued to bolster sales via our brewing and sales licensing
agreement with Australia’s Coopers Brewery, and in Singapore we worked with our local
subsidiary to expand sales channels in the local household market. The efforts outlined
above enabled us to achieve a 52% year-over-year increase in beer volume sales in Asiaand other overseas markets outside North America in the first nine months of 2013.
As a result of the above activities, the International Business posted sales of ¥36.2 billion(up ¥9.9 billion, or 38%, year over year) in the first nine months of 2013. The strong sales
gain was supported by increased sales on local -currency bases at continuing operations, afull nine-month contribution from Silver Springs Citrus, which was consolidated in April 2012,
and the positive impact of yen depreciation. The segment posted operating income of ¥ 1.0
billion (up ¥0.8 billion, or 596%, year over year) .

6

Food & Soft Drinks
We estimate that domestic demand for soft drinks increased 2% year over year in the firstnine months of 2013. We also estimate that demand for lemon -based products (flavorings)
declined 1% while that for instant soup (including soups in a cup) was around the samelevel as for the first three quarters of 2012.
In this demand environment, the Sapporo Group’s Food & Soft Drinks business began
integrated operations in January as Pokka Sapporo Food & Beverage Ltd., and newinvestments were concentrated on cor e brands as the new subsidiary seeks to strengthen
and nurture its various brands.
In the domestic soft drinks category of the domestic food and soft drinks business, we
endeavored to increase consumer demand for our canned coffee brands by promoting sales
via the vending machine sales channel. The Gabunomi series performed well as we
continued the promotions we started in March and amid a strong showing for carbonatedbeverages in the summer . In the lemon & natural foods category, we launched a renewal
version of Kireto Lemon in a 410ml PET bottle, and the new offering was warmly received by
its targeted market of consumers favoring natural foods. In the overseas brands category,
we remain focused on Gerolste iner naturally carbonated water from Germany and madesteady progress in expanding the number of stores handling the product. In the soup &foods category, the latest addition to the Jikkuri Kotokoto series– Kaki no Potage (Oyster
Potage) – proved success ful and made a solid contribution to the brand’s overall sales. In
the commercial -use products category, we launched Otoko Ume Syrup , and succeeded inplacing the product at many pubs and restaurants. Despite the above efforts and a sales
rebound from March, the domestic food & soft drinks business was unable to offset the
decline in sales in January and February caused by merger preparations in November andDecember of the previous year. As result, sales in the first nine months of 2013 declined ona year-over-year basis.
The segment’s domestic restaurants business fared better, as the Café de Crié coffee
shop chain, its core format, overcame an increasingly competitive operating environment,
including challenges from low -priced coffee served at major convenience store s and fast
food chains. This was achieved through regular introductions of new menu items, continued
remodeling of existing out lets, and chain expansion through new store openings.
The overseas food & soft drinks business saw profitability affected by intense pricecompetition in Singapore but was able to expand its exports to the Middle East and othermarkets. Pokka Ace (M) SDN. BHD. was included in the Group’s consolidated results fromJanuary and contributed to overall sales as it steadily expanded its business.
The segment’s overseas restaurant business posted somewhat weak results, owing to theadverse effects of a decline i n mainland Chinese tourists visiting Hong Kong.
As a result of the above , the Food & Soft Drinks segment recorded sales of ¥95. 9billion
during the first nine months of 2013 (up ¥2.5 billion, or 3%, year over year), with theconsolidation of Pokka Ace (M) SDN. BHD. from January helping to offset the d ecline insales at the domestic food & soft drinks business. However, business integration expenses

7

weighed on the segment’s profits in the first three quarters, result ing in an operating loss of¥1.5 billion (compared with a loss of ¥0.1 billion a year earlier).

Restaurants
Japan’s restaurant operators continue to face an extremely difficult management
environment as heated competition for customers necessitates efforts to strengthenmarketing activities targeted at creating demand and to develop new menus and formats
that will attract new customers.
In this environment, the Sapporo Group’s Restaurants Business held a variety of eventsand fairs, including the Sapporo Lion’s Beer Hall Day, a major event held each year on
August 4 to express our gratitude to customers. In addition, the businessstepped up

marketing visits to corporations in an effort to capture more corporate event –related demand.
These efforts helped th e Restaurants Business increase customer numbers during the peaksummer season. We also continued our efforts to raise customer service levels and toenhance menus by developing new regional specialties.
We opened nine new restaurant outlets during the first nine months of the year. However,
we also closed 16 unprofitable outlets as part of ongoing profit structure reforms . As a result,
the total number of outlets operating as of September 30, 2013 was 186.
Overseas, in September we opened our first Gin za Lion Beer Hall in Singapore as a firststep of a plan to spread the beer hall culture we have nurtured in Japan to the rest of theworld. We also opened our first Rive Gauche cake and patisserie shop in Singapore,bringing the Restaurants Business’ total number of overseas outlets to 11.
Overall, the Restaurants Business sales in the first nine months of 2013 totaled ¥20.2
billion (up ¥0.3 billion, or 2%, year over year) while operating income was ¥0.2 billion (down
17% year over year ).

Real Estate
In Japan’s real estate industry, vacancy rates in the Greater Tokyo office leasing market
improved during the first nine months of 2013, but rents have remained at low levels.
Amid such market conditions, the Sapporo Group’s Real Estate business maintained highoccupancy rates at its properties in the Tokyo Metropolitan area, including its core property,
Yebisu Garden Place.
With Yebisu Garden Place set to mark 20 years of operation in 2014, we are stepping up
efforts to enhance the property’s value and c onvenience by improving facilities and services
to ensure that Yebisu Garden Place continues to provide tenants and visitors with enjoyable
experiences in comfortable and pleasant surroundings. On the second basement level
restaurant floor of Yebisu Garden Place, we are conducting a major renovation of communal
spaces and facilities to accommodate a new large , upscale restaurant tenant from April
2014. Meanwhile, the project to install additional emergency power -generating systems that
we started in April 2013 is proceeding on schedule for completion in spring 2014.
The real estate development business began redevelopment in March of the Seiwa

8

Yebisu Building , and the project is running on schedule for completion in autumn 2014 . We
are also considering the redevelopment of the Sapporo Ginza Building located at the Ginza
4 -chome intersection and have been engaged in consultations with the parties concerned.
As result of the above, the Real Estate Business posted sales of ¥ 16.8 billion (down ¥0.4
billion or 3% year over year) and operating income of ¥6.7 billion (down ¥0. 3 billion or 5%).

(2) Review of Consolidated Financial Condition
Consolidated financial condition
Consolidated assets as of September 30, 2013, totaled ¥597.7 billion, lar gely the same asat the end of the previous fiscal year on December 31, 2012, reflecting the fact that adecrease in notes and accounts receivable -trade over the past nine months was offset byincreases in merchandi ze and finished products as well as an increase in investment
securities.
Consolidated liabilities totaled ¥448.2 billion, a ¥14.4 billion decrease from December 31,
2012, reflecting decreases in commercial paper and liquor taxes payable, which outweighed
an increase in short -term bank loans.
Consolidated net assets totaled ¥149.4 billion, a ¥14.4 billion increase from December 31,
2012. Asset growth was supported by increases in unrealized gains on securities and in theforeign currency translation adjust ment account, as well as the cumulative net income
achieved over the first three quarters of the fiscal year.

(3) Consolidated Earnings Forecast
The consolidated earnings forecast for the full fiscal year ending December 31, 2013, isunchanged from the f orecast announced by the Company on February 8, 2013.

2. Other information(1) Changes in significant subsidiaries during the three months ended March 31, 2013
Sapporo Beverage Co., Ltd. was absorbed by Pokka Sapporo Food & Beverage Ltd. via amerger conducted on January 1, 2013. Sapporo Beverage Co., Ltd. was dissolved andceased to be a subsidiary of the Company; while Pokka Sapporo Food & Beverage Ltd.
became a subsidiary.

(2) Application of accounting methods specific to the preparation of quarterly
consolidated financial statements(Calculation of tax liabilities)
The Company calculates tax liabilities by producing a reasonable estimate of the effective
tax rate after applying tax -effect accounting to income before taxes and minority interests forthe fiscal year, which encompasses the nine months ended September 30, 2013, and thenmultiplying income (loss) before taxes and minority interests by this estimated effective tax
rate.

9

3. Consolidated Financial Statements(1) Consolidated Balance Sheets(millions of yen)

AssetsI Current assets
1 Cash and cash equivalents
2 Notes and accounts receivable - trade
3 Merchandize and finished products
4 Raw materials and supplies
5 Other
6 Allowance for doubtful receivables
Total current assets
II Fixed assets
1 Property, plant and equipment(1) Buildings and structures
Accumulated depreciation
Buildings and structures, net(2) Machinery and vehicles
Accumulated depreciation
Machinery and vehicles, net(3) Land(4) Construction in progress(5) Other
Accumulated depreciation
Other, net
Total property, plant and equipment
2 Intangible assets(1) Goodwill(2) Other
Total intangible assets
3 Investments and other assets(1) Investment securities(2) Long-term loans receivable(3) Other(4) Allowance for doubtful receivables
Total investments and other assets
Total fixed assets
Total assets

10

December 31, 2012

September 30, 2013

AmountAmount9,755
83,581
20,372
12,072
12,763(287)
138,258

9,818
66,127
24,322
13,141
13,552(217)
126,745384,995(205,155)
179,839
210,465(170,803)
39,661
115,413
4,425
39,242(25,520)
13,722353,061

388,775(210,229)
178,545
215,992(175,949)
40,043
114,994
5,576
38,279(24,860)
13,418352,578

37,541
7,444
44,98535,237
7,887
43,12535,6709,783
17,263(1,386)
61,330459,377
597,636

51,035
9,627
16,045(1,450)75,257
470,961
597,707

Liabilities
I Current liabilities
1 Notes and accounts payable - trade
2 Short-term bank loans
3 Commercial Paper
4 Current portion of bonds
5 Liquor taxes payable
6 Income taxes payable
7 Accrued bonuses
8 Deposits received
9 Other
Total current liabilities
II Long-term liabilities
1 Bonds
2 Long-term bank loans
3 Employees' retirement benefits
4 Directors’ and audit & supervisory board members’
severance benefits
5 Dealers' deposits for guarantees
6 Other
Total long-term liabilities
Total liabilities
Net Assets
I Shareholders' equity
1 Common stock
2 Capital surplus
3 Retained earnings
4 Treasury stock, at cost
Total shareholders' equity
II Accumulated other comprehensive income
1 Unrealized holding gain on securities
2 Deferred hedge gains
3 Foreign currency translation adjustments
Total accumulated other comprehensive income
III Minority Interests
Total net assets
Total liabilities and net assets

11

December 31, 2012

September 30, 2013

AmountAmount32,98555,27047,00010,00033,3973,830
1,860
12,35846,443
243,146

34,77462,84934,00020,717
2,577
3,012
10,76454,221
222,917

32,000113,376
7,385

42,000105,940
6,122

26

16

32,91433,840219,543
462,689

32,58038,702
225,363448,281

53,88646,30831,393(1,199)130,389

53,88645,91033,362(1,256)
131,9035,122
9(3,725)
1,406
3,151
134,946597,636

15,081
34(954)
14,162
3,360
149,425
597,707(2) Consolidated Statements of Income

I Net sales
II Cost of sales
Gross profit
III Selling, general and administrative expenses
1 Sales incentives and commissions
2 Advertising and promotion expenses
3 Salaries
4 Provision for bonuses
5 Retirement benefit expenses
6 Other
Total selling, general and administrative expenses
Operating income
IV Non-operating income
1 Interest income
2 Dividend income
3 Equity in income of affiliates
4 Foreign exchange gain
5 Gain on gift voucher redemptions
6 Other
Total non-operating income
V Non-operating expenses
1 Interest expense
2 Other
Total non-operating expenses
Ordinary income
VI Extraordinary gains
1 Gain on sales of property, plant and equipment
2 Gain on sales of investment securities
Total extraordinary gains
VII Extraordinary losses
1 Loss on disposal of property, plant and equipment
2 Impairment loss
3 Loss on devaluation of investment securities
4 Loss on sales of investment securities
5 Business structure improvement expenses
Total extraordinary losses
Income before income taxes and minority interests
Income taxes
Income before minority interests
Minority interests in losses
Net income
Net income (loss) before minority interests
Other comprehensive income
Unrealized holding gain on securities
Deferred hedge gains (losses)
Foreign currency translation adjustments
Share of other comprehensive income of associates accounted for using equity method
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests

12

Nine months ended
September 30, 2012
Amount354,780
225,121
129,659(millions of yen)
Nine months ended
September 30, 2013
Amount369,531
237,193
132,337

23,846
16,82521,851
2,271
2,629
56,643
124,068
5,590

23,755
16,36822,6271,844
2,535
55,765
122,897
9,440

198
380
210
66
368
689
1,914

194
533
113
468
831
2,142

2,610
462
3,072
4,431

2,069
644
2,713
8,868

15

60

21
36

3,491
3,551

584
46
1,398
64
2,093
2,373
2,027
346
(250)
596

413
289
20
3
185
912
11,508
6,112
5,395
(79)
5,474

346

5,395

1,835
2
563
(24)
2,377
2,723

9,958
61
3,252
13,272
18,668

2,924
(200)

18,230438

(3) Notes on the Going-concern Assumption
Not applicable(4)Segment Information
Ⅰ Nine months ended September 30, 2012 (January 1, 2012 – September 30, 2012)
1. Sales, income, and loss by reportable segment(millions of yen)
Reportable segments
Japanese
Alcoholic
Beverages
Net sales(1) Operating revenues

Real
Estate

Total

Other *1

192,21226,331

93,451

19,945

17,342349,283

5,497

1,827

26

215

-

1,873

3,942

14,580

194,040

26,35893,666

19,945

19,215353,226

20,077

864

148

(139)

273

7,160

8,308

(301)

(2) Intra-group sales and transfers
Total

International Food&
Restaurants
Soft Drinks

Segment income (loss)

Total

354,780
18,523373,303
8,007

Amounts
reported ontheAdjustments
statements
of income*2-354,780(18,523)(18,523)354,780(2,417)

5,590-

Notes:(1) "Other" comprises businesses, such as logystics businesses, that are not included in reportable segments.
(2) Segment income and losses are adjusted based on operating income reported on the quarterly consolidated statements of income for the corresponding period.

2. Reconciliation and main components of differences between income and loss of reportable segments and figures on the statement of income (information ondifferences)(millions of yen)Segment income (loss)

AmountTotal for reportable segments
Total other losses
Unallocated corporate costs
Intra-segment sales
Operating income on the statement ofincome8,308(301)(2,338)(78)
5,590

3. Impairment loss on fixed assets or goodwill by reportable segment(Significant impairment losses on fixed assets)
Not applicable(Significant change in the amount of goodwill)
Not applicable(Material Gain on negative goodwill)
Not applicable13

Ⅱ Nine months ended September 30, 2013 (January 1, 2013 – September 30, 2013)
1. Sales, income, and loss by reportable segment(millions of yen)
Reportable segments
Japanese
Alcoholic
Beverages
Net sales(1) Operating revenues

Real
Estate

Total

Other *1

195,331

36,236

95,98020,277

16,857364,683

4,847

1,908

54

198

0

1,979

4,141

14,246

197,239

36,291

96,17920,27818,837368,825

19,093

5,545

1,035

(1,523)

226

6,788

12,072113(2) Intra-group sales and transfers
Total

International Food&
Restaurants
Soft Drinks

Segment income (loss)

Total

369,531
18,388387,919
12,186

Amounts
reported ontheAdjustments
statements
of income*2-

369,531(18,388)(18,388)369,531(2,746)

9,440-

Notes:(1) "Other" comprises businesses, such as logystics businesses, that are not included in reportable segments.
(2) Segment income and losses are adjusted based on operating income reported on the quarterly consolidated statements of income for the corresponding period.

2. Reconciliation and main components of differences between income and loss of reportable segments and figures on the statement of income (information ondifferences)(millions of yen)Segment income (loss)

AmountTotal for reportable segments
Total other gains
Unallocated corporate costs
Intra-segment sales
Operating income on the statement ofincome12,072113(2,568)
(177)
9,440

3. Changes to reportable segments
The Sapporo Group conducted a reorganization of its logistics business on May 1, 2013. The Company’s consolidated subsidiaries Sapporo Logistics Systems
Co., Ltd. and Pokka Logistics Co., Ltd. were reorganized under Sapporo Group Logistics Co., Ltd., which is under the control of Sapporo Group Management
LTD.
In line with this, effective the three months ended March 31, 2013, Sapporo Logistics Systems Co., Ltd., which was previously included in the Japanese Alcoholic
Beverages segment, and Pokka Logistics Co., Ltd., which was previously included in the Food & Soft Drinks segment, were reclassified to the Other segment.
Additionally, effective the three months ended March 31, 2013, Pokka Food (Singapore) Pte. Ltd. which was previously included in the Food & Soft Drinks
segment was reclassified to the Restaurants segment in conjunction with changes in organizational structure through share transfers between consolidated
subsidiaries.
The segment information for the nine months ended September 30, 2012 has been recast to reflect the change of segmentation.
(Note) On April 1, 2013, Pokka Food (Singapore) Pte. Ltd. changed its name to Sapporo Lion (Singapore) Pte. Ltd.
On July 1, 2013, Pokka Logistics Co., Ltd., was dissolved following an absorption-type merger with Sapporo Logistics Systems Co., Ltd.

4. Impairment loss on fixed assets or goodwill by reportable segment(Significant impairment losses on fixed assets)
Not applicable(Significant changes in the amount of goodwill)
Not applicable(Material Gain on negative goodwill)
Not applicable(6)Notes on Significant Changes in the Amount of Shareholder's Equity
Not applicable(7)Subsequent Events
Not applicable14