2014
Sapporo Group Business Results Presentation
for the Three Months Ended March 31, 2014

May 9, 2014

Sapporo Holdings Ltd.
URL http://www.sapporoholdings.jp/english

Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved.

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Contents

1. First-Quarter 2014 Topics

2. Overview of First-Quarter 2014 Results

Reference
1 Sapporo Group’s Medium-Term Management Plan 2014 - 2016
2 Supplementary Information to First-Quarter 2014 Results (Business Summary)

Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved.

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1. First-Quarter 2014 Topics

Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved.

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First-Quarter 2014 Topics (1)Japanese Alcoholic Beverages
 Jan-Mar cumulative: Sales volume of beer and beer-type beverages (beer, happoshu and new genre) up 21%
yoy (total demand up 9% yoy)
<Status of core brands> Sales exceeded the previous year’s level from the beginning of the year, with the lastminute surge in demand in March before the consumption tax increase also contributing.

Beer Total sales of Yebisu brand increased 13% yoy with canned Yebisu Beer expanding (26% yoy) Sales of canned Sapporo Draft Beer Black Label also rose 9% yoy

New Genre Sales of Mugi to Hop, which have been rising from the beginning of the year, continued
to grow steadily after its renewal in February (up 25% yoy) Sales of Goku Zero* also continued to outperform the plan
*The world’s first beer-type beverage with no carbohydrates or purine bodies, launched in June 2013

FY2014 plan: 5.5 million cases (up 54% yoy)
Jan – Mar Cumulative Sales Volume YoY Comparison
130％

SapporoTotal Demand

126

125

121
120
113
110

109

109

109

109

111

109

100

90

Beer, Happoshu, New Genre

Yebisu brand total

Yebisu Beer (can)Black Label (can)Mugi to Hop total*Total demand *Yebisu and Black Label vs. total demand; Mugi to Hop vs. total demand for new genre
Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved.

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First-Quarter 2014 Topics (2)International BusinessNorth America
SLEEMAN Net Sales (before elimination of inter-company transactions)in Local Currency (Jan-Mar)
65

62.5
52.1

55

64.9

64.2

41.6

43.1

35
2007

2008

2009

2010

2011

(Jan-Mar) Despite sales declining in Canada amid
intensifying price competition, sales
outperformed total demand year over year Planning to implement recovery measures
for achieving annual targets

54.2

48.3
45

SLEEMAN (Canada)

2012

2013

2014

Unit sales (YoY)

2013

2014

SLEEMAN*

104%

98%

Canada total
demandApprox.

Approx.

97%

97%*Excluding Sapporo brand

SLEEMAN(Can$ millions)

Sapporo USA Net Sales (before elimination of inter-company transactions)in Local Currency (Jan-Mar)
14.8

15
10.6

11.1

2007

2008

13.1

12.1

14.1



5

Vietnam

2009



12.8

9.7

10

Sapporo USA (U.S.)

2010

2011

2012

2013

2014

USA（US$ millions）



Unit sales (YoY)
2013
2014
Sales declined yoy in the first quarter due
to shipment delays caused by the cold
Sapporo USA*110%
87%
waves in January and February.
Sales were also affected by the reaction
Approx.
Approx.
US total importto the last-minute demand in March 201396%
95%
beer demand
before the price rise in April last year
*Sapporo brand
Recovery is possible by eliminating
shipment delays
Jan-Mar 2014 sales volume in Vietnam(excluding• Sales in the first quarter declined year over year due to impacts that have been
anticipated from the beginning of the year such as this year’s shorter Tet (NewYear’s holiday) sales season and the reaction to the temporary demand in March lastyear before the liquor tax increase in April.
• In Vietnam at the end of March, we delivered to approx. 2,300 restaurants in thecommercial market, mainly in Ho Chi Minh City, and to approx. 2,600 outlets in
the retail market, including convenience stores and large supermarkets• We will continue to focus on increasing the in-store share• We have started exporting to neighboring countries step-by-step and we areexporting to 12 countries and regions as of March 31, 2014
• Sapporo brand has a presence in 8 of 10 ASEAN countries
Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved.

(Jan-Mar)

exports) , taking Jan-Mar 2013 volume as 100
100

100
90

80

60
2013

2014

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First-Quarter 2014 Topics (3)Food & Soft Drinks
 POKKA SAPPORO Food & Beverages Ltd., which entered its second year of operations
Sales exceeded compared to the same period a year earlier from the beginning of the year. While food product sales enjoyed
the benefit of the last-minute surge in demand in March before the consumption tax increase, no meaningful impact was felt indomestic beverage sales.
•Domestic soft drinks sales volume, whose normal sales activities were affected early the previous by the integration
preparations as well as by the decrease in the number of product items, increased year over year. In addition, sales volumes ofdomestic food products’ lemon based products and instant soups also increased year over year.
Operating loss narrowed significantly on the back of increased sales and cost control.
Jan - Mar Cumulative Sales Volume YoY

SapporoTotal demand

％
110

108
105

(billions of yen)

106

106

Jan - MarOperatingincome 2014

(0.7)

Operatingincome 2013

(1.8)

Change

1.1

100

100

90

Food & Soft Drinks* Operating Income YoY

112*Operating income shown is after goodwill amortization
Domestic soft drinks

Lemon based products(flavorings)

Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved.

Instant soups (including soups
in a cup)

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First-Quarter 2014 Topics (4)Real Estate Activities to enhance the value of existing properties• In consideration of the future recovery in rent levels, enhance the value of existing
properties through renovation.
Yebisu Garden Place Efforts to enhance the property’s value in view of its 20th anniversary this year•

Office renovation focused on business continuity, including augmentation of emergency power supply
facilities in times of disaster as well as enhancement of office convenience. Refurbishing commercial
and restaurant facilities to enhance the appeal of the entire Ebisu district
Yebisu Garden Place• Augmentation of emergency power supply completed in March• Renovation of communal space in the second basement restaurant floor also completed in March• Yebisu Garden Place had an average occupancy rate of 93% for Jan-Mar period compared to the 93%
average occupancy rate for office buildings in Tokyo’s 5 central wards in March on a single-month basis• Steady progress in leasing agreement with a new tenant with a large tenant scheduled to end thelease contract in May
Redevelopment of the Ginza and Ebisu Areas

 Redevelopment of Seiwa Yebisu Building•••

Redevelopment including expansion of total floor space
6 floors above ground, 1 below ⇒12 floors above ground, 1 below(total floor area 10,400㎡⇒15,178㎡)
Making smooth progress towards completion in the autumn of 2014
(tentative name: Sapporo Ebisu Building) Redevelopment of Sapporo Ginza Building situated on Ginza 4-chomeintersection• 10 floors above ground, 4 below ⇒12 floors above ground, 2 below (total
floor area 4,232㎡⇒7,082㎡)• Demolition started in April 2014 towards completion by the end of June 2016
Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved.

Sapporo Ebisu Building(Tentative name; artist’s rendering)

Sapporo Ginza Building(completed in 1970)

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First-Quarter 2014 Topics (5)Implementation Status of Strategic Investments(Including Ordinary Capex, on a cash basis)<Capital expenditure and lease fees>
Consolidated total: Approx. ¥5.4bn

Credit Ratings<Credit rating by JCR>

 Property, plant and equipment, intangible assets, lease fees, etc.
Major items:
 Nagoya plant (Food & Soft Drinks): approx. ¥0.3 billion, Malaysian plant (Food &Soft Drinks): approx. ¥0.6 billion, construction of Sapporo Ebisu Building(tentative name; Real Estate): approx. ¥1.6 billion, value enhancement of Yebisu
Garden Place (Real Estate): approx. ¥0.4 billion, lease fees (Food & Soft Drinks,
Other): approx. ¥0.9 billion, etc.

 As of May 9, 2014: A- (stable)<Other investments> Consolidated total: Approx. ¥0.９billion

 In March 2013, issued ¥10 bn in five-year straight bonds at a low
cost of 0.39%

 Long-term prepaid expenses, investment securities, etc.
Major items:
 Long-term prepaid expenses (Japanese Alcoholic Beverages, Food & Soft
Drinks) : approx. ¥0.5 billion, investment securities, etc.: approx. ¥0.4 billion<Credit rating by R&I>
 As of May 9, 2014: BBB+ (stable)<Achievement of low-cost financing> In December 2013, issued ¥10 bn in seven-year straight bonds
at a low cost of 0.614%<Jan-Mar 2014 strategic investment total (incl. ordinary capex, on a
cash basis>

 Approx. ¥6.3 billion
Direction of Long-Term Strategic Investments
 We will continue to actively carry out strategic investments for growth.
 The scale of strategic investment from 2012 to 2016 is anticipated to be from ¥150 billion to ¥200 billion (inprinciple, funded from accumulated operating cash flow).
– Including ordinary capex (approx. half of strategic investments)– 2012 strategic investment total: Approx. ¥65.7 bn– 2013 strategic investment total： Approx. ¥ 23.5 bn– 2014 strategic investment plan： Approx. ¥33.9 bn
Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved.

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2. Overview of First-Quarter 2014 Results

Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved.

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Overview of First-Quarter 2014 Results
YoY changes(amount, %)2013 1Q

2014 1Q(billions of yen)Japanese Alcoholic
Beverages

50.2

59.2

9.0

17.9%

International

9.9

10.4

0.4

4.9%

Food & Soft Drinks

27.6

29.8

2.1

7.8%

Restaurants

5.7

5.6

(0.0)

(1.2)%

Real Estate

5.3

5.6

0.2

4.0%

Other

1.5

1.3

(0.2)

(14.3)%

Consolidated net sales

100.4

112.0

11.5

11.5%

Operating income before goodwill
amortization

(3.7)

(0.7)

2.9

―

Japanese Alcoholic
Beverages

(3.3)

(1.1)

2.2

―

・International: profit decreased due to sales
volume decline in North America and Vietnam

International

(0.1)

(0.8)

(0.7)

―

0.2
(0.4)

(0.3)
(0.5)

(0.5)
(0.1)

―
―

・ Food & Soft Drinks: the amount of loss decreased,
as sales increased and cost-control measurescontributed

Food & Soft Drinks

(1.8)

(0.7)

1.1

―

Restaurants

(0.3)

(0.3)

(0.0)

―

Real Estate

2.1

2.2

0.1

6.0%

Other

(0.1)

0.0

0.1

―

General corporate

(1.0)

(0.8)

0.1

―

Consolidated operating income

(4.7)

(1.7)

3.0

―

Consolidated ordinary income

(5.1)

(2.3)

2.8

―

Consolidated net income

(3.0)

(3.8)

(0.7)

―

 Net sales: up YoY

・ Japanese Alcoholic Beverages: sales increased,
as sales volume of beer and beer-type beverages
rose from the beginning of the year compared withthe first quarter of 2013 and also as the last-minutedemand increased in March ahead of the rise in
consumption tax in April.

・ Food & Soft Drinks: sales increased, as sales ofboth food and soft drinks rose and the last-minutedemand in March also contributed.

 Operating income: up YoY

・ Japanese Alcoholic Beverages: profit increased
significantly as sales rose Net income: down YoY
Extraordinary income: negative factor includes
reduction in the 3.5 billion yen of gain on sales ofinvestment securities recorded in the previous year.
Extraordinary loss: negative factor includes therecording of 2.3 billion yen as cost for demolition,
removal, etc. in the Sapporo Ginza Building
redevelopment project this year.
Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved.

North America, other
Vietnam

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Reference 1: Sapporo Group’s Medium-Term Management Plan
2014-2016*There has been no change in the figures announced on
February 12, 2014

Copyright, 2013 SAPPORO HOLDINGS LTD. All rights reserved.

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2014-2016 Targets Based on Current Businesses
Medium-Term Management Plan

Reference
Consolidated net
sales*incl. liquor tax

2006 results2013 results

2014 targets

2015 targets

2016 targets

2016 NewManagement
Framework¥435.0 bn¥509.8 bn¥537.7 bn¥563.0 bn¥595.0 bn¥600.0 bn(excl. liquor tax)
Consolidated
operating income(before goodwill
amortization)
Consolidated
ordinary income
Consolidated net
incomeConsolidated
operating margin*excl. liquor tax(before goodwill
amortization)¥294.0 bn¥395.3 bn¥430.1 bn¥454.3 bn¥484.4 bn¥450.0 bn¥8.6 bn¥15.3 bn

¥15.0 bn

¥19.5 bn

¥27.5 bn

¥8.6 bn¥19.3 bn

¥19.0 bn

¥23.4 bn

¥31.2 bn

¥5.8 bn¥15.1 bn

¥13.6 bn

¥17.8 bn

¥25.7 bn-

¥2.3 bn¥9.4 bn¥5.0 bn¥8.6 bn¥13.4 bn

-

2.9%

3.9%

3.5%

4.2%

5.2%

2.9%

4.9%

4.4%

5.2%

6.4%

D/E ratio

2.1 times

1.6 times

1.6 times

1.5 times

1.3 times

ROE(before goodwill
amortization)

2.1%

6.7%

3.3%

5.5%

8.1%

2.1%

9.5%

5.9%

8.0%

10.4%

¥40.0 bn

9.0%

around 1:1
8% or higher*Assumed exchange rates: 2014-2016: US$ = ¥105.00, CAN$ = ¥101.00*We aim to achieve the goals of the 2016 New Management Framework through further cost reduction, creation of group synergies and M&A s in addition toachievement of targets based on the performance of current businesses under the Medium-Term management Plan 2014-2016.
Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved.

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2014-2016 Targets Based on Current Businesses by Segment
Medium-Term Management Plan

Reference
2013 results

2014 targets

2015 targets

2016 targets

Other¥274.9 bn¥48.2 bn
¥130.6 bn¥26.8 bn
¥22.7 bn
¥6.4 bn¥284.3 bn¥57.2 bn
¥140.0 bn¥28.1 bn
¥22.3 bn
¥5.8 bn¥292.4 bn¥61.6 bn¥147.8 bn¥30.6 bn
¥24.6 bn
¥6.0 bn¥305.2 bn¥68.0 bn
¥154.8 bn¥33.5 bn
¥26.9 bn
¥6.6 bn

Consolidated total¥509.8 bn¥537.7 bn¥563.0 bn¥595.0 bn¥9.9 bn¥1.2 bn(¥1.4 bn)¥0.4 bn¥8.6 bn¥0.2 bn¥9.0 bn¥1.1 bn¥0.1 bn¥1.0 bn¥7.2 bn¥0.2 bn¥9.0 bn¥2.4 bn¥1.1 bn¥1.3 bn¥9.4 bn¥0.2 bn¥12.0 bn
¥3.8 bn¥2.4 bn¥1.6 bn¥11.5 bn¥0.2 bn(¥3.6 bn)(¥3.6 bn)(¥3.9 bn)(¥4.0 bn)

Consolidated total¥15.3 bn

¥15.0 bn

¥19.5 bn

¥27.5 bn

Consolidated total(before goodwill amortization)¥19.3 bn

¥19.0 bn¥23. 4 bn¥31.2 bn

Japanese Alcoholic Beverages

Net salesInternational Business
Food & Soft Drinks
Restaurants
Real Estate

Operating income

Japanese Alcoholic Beverages
International Business
Food & Soft Drinks
Restaurants
Real Estate
Other
Corporate and intercompany
eliminations*Assumed exchange rates: 2014-2016: US$ = ¥105.00, CAN$ = ¥101.00
Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved.

13/21

Reference 2: Supplementary Information toFirst-Quarter 2014 Results (Business Summary)

For information on the profitability of each business, please see theSupplementary Information to our Earnings Report.

Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved.

14/21

Japanese Alcoholic Beverages(billions of yen)

*Incl. liquor taxes

Results highlights
Net sales increased year over year, as total sales volumes for beer andbeer-type beverages rose 21% and sales of wine, western spirits andshochu also exceeded the previous year’s level.
Operating income rose significantly as sales grew.

YoY change

2013 1Q

2014 1Q

Amount%Net sales*

50.2

59.2

9.0

17.9%

Operatingincome

(3.3)

(1.1)

2.2

－

Key points in business plan: implementation status

Wine<Initiatives other than beer and beer-type beverages>

 Total net sales of imported and domestic wine rose 16% year overyear Imported wines: strong performance from Yellow Tail andGarcia Carrion Domestic wines: sales of Grande Polaire have been strong.
Sales of new product Sangria Rico also have been strong, withsales exceeding the target

RTD
 Sales volume increased 71% thanks to success of collaborative products
offered for each price range.
 Bacardi grew strongly, exceeding the previous year’s level significantly.
• Offered canned products, with focus on Bacardi Mojito, at ¥189
• Offered bottled products, with focus on Bacardi Mojito Bottle, at ¥230

Western spirits
 Conclusion of an operating alliance agreement with Bacardi Japan,
supplier of the world’s No.1 rum brand.
• Net sales grew 17% year over year
• Promoting continued active business development
in both the household and commercial markets.

 Sapporo Otoko Ume Sour has been performing favorably. The product wasmade available year-round from September 2013
• 350ml cans are offered at ¥160, and we have decided to offer 500ml
cans at ¥217.
 Decided to offer group collaborative product Kireto Lemon
Sour at ¥160.
Launch on*All prices are reference retail prices (excl. tax).

 Net sales of RTS* Bacardi are also significantly
higher than the pervious year’s levelMay 27

Launch on
April 22

*Ready to serve. Liqueur which can be madeinto cocktail just by adding soda, etc.

Shochu Net sales increased 24% year over year Net sales of blended Imo Shochu Kokuimo and Mugi Shochu
Koimugi grew
Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved.

15/21

International
YoY change(billions of yen)

Results highlights
Net sales slightly increased thanks to the impact of weaker yen,though they declined on a local currency basis due to intensifying
competition in Canada and the impact of the cold wave in the U.S.
in January and February.
Operating income decreased due to the impact of the sales
volume decline in North America .

2013 1Q

2014 1Q

AmountNet sales

9.9

10.4

0.4

4.9%

Operatingincome

(0.1)
0.2
(0.4)

(0.8)
(0.3)
(0.6)

(0.7)
(0.5)
(0.2)

－
－
－

North America,
othersVietnam%

Key points in business plan: implementation status

North American (excl. SLEEMAN, Sapporo USA)

Singapore

Silver Springs Citrus (U.S.) Household market sales channel expansion in collaboration withPOKKA for beer produced in Vietnamthe largest U.S. maker of private-brand chilled drinks (a 51% stake)•

The beverage business has been performing strongly in the North
American market

Asian and Oceania Market (excl. Vietnam)
South Korea

 2014 sales target: Approx. 150,000 cases (1 case = 355 ml×24 bottles）
 Striving to be the No. 1 Japanese beer brand.
 2014: In line with the previous fiscal year’s level

 Strengthened Sapporo brand value and sales structure in South Korea
by entering into an alliance with Maeil Dairies Co., Ltd. (market shareleader in cheese, low-fat milk, and chilled coffee drinks) in January 2012
and acquiring a 15% stake in M’s Beverage Co., Ltd., a wholly owned
liquor sales subsidiary of Maeil
Non-equity method affiliate

Oceania 2012 sales target of 380,000 cases (1 case = 350 ml×24 bottles):
420,000 cases sold and target achieved

 2012 sales target of 160,000 cases (1 case = 355 ml×24 bottles）:
160,000 cases sold and target achieved

 2015 sales target of 1.5 million cases (1 case = 350 ml×24 bottles)

 2016 sales target of 500,000 cases(1 case = 355 ml×24 bottles ） Aiming to be the No. 1 imported brand.
 2014: Double digit growth year over year
Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved.

 Entered the Australian/New Zealand premium beer market via a licensing
agreement with Coopers Brewery Ltd. (No.3 in Australia’s beer market,
No. 2 in premium beer market with a 17.3% share) Full-scale start-up in 2012

Aim to be the No. 1 Japanese beer brand.

 2014 results: double-digit growth year over year

16/21

Food & Soft Drinks (1)YoY change(billions of yen)

Results highlights
Net sales of the domestic food and soft drinks business, which
entered the second year after the integration, increased year
over year.

Net sales

Operating loss narrowed, as sales increased and costs were
controlled.

OperatingincomeKey points in business plan: implementation status

Before GW
amortization2013 1Q

2014 1Q

Amount

%

27.6

29.8

2.1

7.8%

(1.8)
(1.1)

(0.7)
(0.1)

1.1
1.0

－
－

■ Food and Soft Drinks (Domestic): POKKA SAPPORO Food & Beverages Ltd., vending machine operators

Develop unique soft drinks and work on new categories



Expand the scale of the core brands with focus on lemon and soup products

Lemon,
natural foods

Beverages

Soup, foods

Overseasbrands
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た。

Vending machine
channel: 100,000
machine network

Commercial
marketFurther strengtheningof marketing tocorporate customers

Pokka Lemon 100

Gabunomi

Jikkuri Kotokoto

Vittel, Contrex

Otoko Ume Syrup

Revitalized throughmajor renewals

Supporting juniorhigh, high school
students withrenewal campaign

Introduced springand summer
flavors

Launched in

Sequentially increasing
the number ofrestaurants using the
product

Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved.

January 2014

17/21

Food & Soft Drinks (2)Key points in business plan: implementation status■ Soft Drinks (International):

POKKA Corporation (Singapore) Pte Ltd

Boost production capacity by bringing the new plant in Malaysia online
Maintain and expand the lead in the market share for tea drinks in
Singapore
Accelerate POKKA brand recognition in countries, other thanSingapore, where its products are available■ Restaurants (Domestic): POKKA CREATE Co., Ltd.
 Further improve FC support system
 Expand and enhance high-quality outlets
 Nurture human resources for FC business, enhance
education and training system

POKKA brand green tea-based
drinks have high market share in
Singapore.

Outlets: 171 (as of March 31, 2014)(Directly operated: 84 outlets; FC: 87 outlets)
Kanto 98, Tokai 35
Kansai 28, Kyushu 7, Shikoku 3

The Malaysianplant to start
operations in July

■ Restaurants (International):
POKKA CORPORATION (Hong Kong) Outlet: 35 in total (as of March 31, 2014)
・Hong Kong 34, Macau 1
POKKA brand was No. 1
in non-carbonated beverage category of
INFLUENTIAL BRANDS AWARDS 2013
Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved.

18/21

Restaurants
Results highlights(billions of yen)

Net sales slightly declined, partly as comparable-store sales were
98.3% in the three months through March. This is mainly attributable
to the impact of February single month comparable-store sales of
92% YoY due to heavy snow fall.
Operating income was more or less unchanged from the previous
year, although net sales declined.

Key points in business plan: implementation status

Restaurant expansion

YoY change
2013 1Q

2014 1Q

Amount%Net sales

5.7

5.6

(0.0)

(1.2)%

Operatingincome

(0.3)

(0.3)

(0.0)

－

 Locations newly opened Jan-Mar 2014: 7 outlets (Japan)
 Synergy with Japanese Alcoholic Beverages: Opening of YEBISUBAR outlets•

Jan: New outlet opened in Nishi-shinjuku: Increased to 13 outlets as ofMarch 31

 Opening of a new format restaurant•

Mar: YEBISU BEER HALL, a casual beer hall which offers draft beerand grilled dishes, in Ebisu

 Locations closed Jan-Mar 2014: 9 (Japan)
 Locations operating as of March 31, 2014: 188 in Japan・Tonkichi (pork cutlet): 4 outlets
Singapore
Ginza Lion Beer Hall

・Domani (Italian): 1 outlet
・ Rive Gauche (patisserie): 7 outlets

Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved.

YEBISU BEER HALLl

 Restaurant business in Singapore Locations operating as of Mar 31, 2014
in Singapore: 13 outlets
・Ginza Lion (beer hall): 1 outlet

YEBISU BAR Shinjuku Island Tower•Transfer of the restaurant business in Singapore from POKKA
Corporation (Singapore) Pte. Ltd. to Sapporo Lion Limited in 2013
•Brought forward the opening by one year of the 1st Ginza Lionin Singapore to October 2013
•Spreading the beer hall culture around the world – start of overseas
operations•Aim to expand the number of restaurants in Southeast Asia including
Singapore

19/21

Real Estate(billions of yen)

Results highlights

YoY change The majority of operating income from the Real Estate business is from real estate leasing.
– The property portfolio largely comprises the following properties in Tokyo (5 central
2013 1Q
wards).

2014 1Q

AmountNet sales

5.3

5.6

0.2

4.0%

Operatingincome

2.1

2.2

0.1

6.0%

Occupancy rates are averages for Jan–Mar 2014 (contract basis).
Major rental properties inTokyo’s 23 wards

Site area (m2)

Floor area (m2)Occupancy
rate (%)

Yebisu Garden Place *1

56,943

298,007

93%

Seiwa Yebisu Building*

2,617

―

*0%

Yebisu Square

1,561

9,126

100%

7 floors above
ground, 1 below

Shibuya Sakuragaoka
Square

1,200

9,268

100%

10 floors above
ground, 1 below

Sapporo Ginza Building*
Strata Ginza *2

No. of floors
40 floors above
ground, 5 below
―

530

4,232

*58%

10 floors above
ground, 4 below

1,117

11,411100%

13 floors above
ground, 1 below

Unrealized gain on real estate for lease was ¥127.7 billion asof Dec. 31, 2013.
Balance sheet value at December 31, 2013: approx. 210.0 billion yen
Fair value at December 31, 2013: approx. 337.7 billion yen

Site areas are taken from the land registry. Floor areas are as per building certification.”*”s are redevelopment projects.
*1. The number of floors is for the office block only. Occupancy rates are for office areas only.
*2: Figures are for entire property. Sapporo owns 922m2 of the site (sectional ownership) and 89.72% of thebuilding (joint management)

Operating income
Real estate leasing
Tokyo’s 23
wards

2014 1Q

Change

1.9

2.1

0.1

Other areas
Real estate leasing
total

0.3

0.3

(0.0)

2.2

2.4

0.1

Real estate total

－
(0.0)
2.1

－
(0.1)
2.2

－
(0.0)
0.1

Other operations*
Total

EBITDA(billions of yen)2013 1Q*”Other operations” includes back-office operations.
Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved.

%

Real estate leasing
Tokyo’s 23
wards
Other areas
Real estate leasing
total
Real estate total
Other operations*
Total

EBITDA =operating income + depreciation and amortization(billions of yen)2013 1Q

2014 1Q

Change

2.7

2.9

0.1

0.4

0.4

(0.0)

3.2

3.3

0.1

－
(0.0)
3.2

－
(0.0)
3.3

－
(0.0)
0.0

*”Other operations” includes back-office operations.

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To make people’s lives richer
and more enjoyable.

The earnings forecasts and forward-looking statements appearing in this document were prepared by the
SAPPORO Group based on currently available information and its best assessment of potential risks anduncertainties. Actual outcomes may differ materially from forecasts due to changes in various underlying
factors.

Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved.

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