[Q&A from Teleconference Meeting] 3Q of Year ending December 31, 2015
<Date and Time> November 6, 17:30-18:30<Speakers> Director Toshio Mizokami with the General Manager of the IR Section

1. Japanese Alcoholic Beverages BusinessQ. The full-year forecast for sales volumes in the Japanese beer market has been revised downwards
to 96% year-on-year. The performance as of September 30 was 93%. How much of a recovery canbe made in the October to December quarter and what is the outlook for next year?
A. In the happoshu and new genre category, the impact of fierce competition with our competitors isbeing seen in terms of the sales volume. It is important to recover as quickly as possible and for thisreason in October we made a limited launch of “Mugi To Hop the gold Kinu No Koku” and in
November we plan to make a limited launch of “Mugi To Hop the gold Koku no Kiwami” as new
extensions of the “Mugi to Hop the gold” brand. Meanwhile, in the beer category, sales of Black
Label have been strong and we plan to make a limited launch of Fukami Ajiwau Yebisu as a new
brand extension of the Yebisu brand, which is approaching the season of peak demand for giftpurchases. We believe that this will allow us to recover sales volume.
Next year, there will be no change in this year’s direction, which has been to focus on the key brandsof Black Label, Yebisu and Mugi to Hop the gold. We plan to implement new initiatives in order toincrease brand value.

2. International BusinessQ. In Vietnam, competitors have entered the premium market. Could you please describe the market
conditions and the impact on Sapporo? An operating loss of 2.2 billion yen is forecast for theVietnamese business this fiscal year. What is your view on the likelihood of an improvement in
profitability next year?
A. In the high-price band premium category, leading competitors entered the market and competition
became very strong. In the mid-price band, there was remarkable growth in the mainstream category.
In terms of the impact on Sapporo, we were affected by trial purchases of other companies’ productsin the beer club business. Three and a half years have now passed since Sapporo first entered theVietnam market. We have used the experience gained during this time to carry out product renewals
in November that more closely match the tastes of local customers.
Specifically, we have reviewed the taste, packaging and price of our products.
We have also promoted sales in regional cities, such as Nha Trang and Da Nang, in addition to Ho
Chi Minh City. Through these measures, we plan to improve profitability next year.

Q. In the Vietnam business, Sapporo Vietnam has become a wholly-owned subsidiary after receiving
the 29% investment stake of joint venture partner Vietnam National Tobacco Corporation. What wasbehind this decision? Will this lead to any problems from an operational perspective?
A. Vietnam National Tobacco Corporation needed to reorganize its investment stake as part of theVietnamese government’s policy of raising capital from peripheral business with the aim ofstrengthening the core business of state-run companies. Meanwhile, we needed to speed up
decision-making in response to the changing market, and agreement was reached for us to accept atransfer of their stake. Approximately 1.6 billion yen in goodwill has arisen as a result of thetransaction. Relations with the government remain good, and no problems will arise in relation tosales operations.

3. Food and Soft Drinks Business
Q. Sales volume in the Food and Soft Drinks Business grew this year, but the profit ratio remains
low. What are the prospects for an improvement in the future?
A. This year, vending machine-related expenses accumulated and even when this was offset against
reductions in advertising expenses there was a negative impact on profits of around 300 million yen.
We plan to select products for use in vending machines and promote investigations into profitability
on a column by column basis in order to raise profitability. POKKA SAPPORO has performed
strongly in soup and hot products and as a company it tends to makes profits in the fourth quarter
from October to December. In the vending machine business, sales of hot coffee and other drinks
have started. There is increased demand for canned soup, and profits will increase.

4. Real Estate Business
Q. Has there been any change in the forecast for the Real Estate Business next year?
A. The occupancy rate at YGP is forecast to recover to 99% by the end of the year, and there has
been no change in the forecast for next year.
Ginza 5-Chome redevelopment project is also forecast to contribute to profits from the second halfof next year onwards.
End