Sapporo Holdings Limited
Medium-Term Management Plan (2023-2026)
and Q3 Financial Results Briefing for the Fiscal Year Ending December 2022
November 9, 2022

Event Summary[Company Name]

Sapporo Holdings Limited[Company ID]

2501-QCODE[Event Language]

JPN[Event Type]Earnings Announcement[Event Name]

Medium-Term Management Plan (2023-2026)
and Q3 Financial Results Briefing for the Fiscal Year Ending December 2022

[Fiscal Period]

FY2022 Q3[Date]

November 9, 2022

[Number of Pages]

46[Time]

17:00 – 18:28(Total: 88 minutes, Presentation: 48 minutes, Q&A: 40 minutes)[Venue]Webcast[Number of Speakers]

6
Masaki Oga
Yoshitada Matsude
Rieko Shofu
Tetsuya Shoji
Shuji Fukuda
Hiroyuki Nose

[Analyst Names]

Hiroshi SajiManabu Sumoge
Ami Yoshida
Satoshi Fujiwara
Nobuyoshi Miura

President and Representative Director
Managing Director
Director
Outside Director
Outside Director, Audit Committee Member
President and Representative Director,
Sapporo Breweries Limited
Mizuho Securities Co., Ltd.
Okasan Securities Co., Ltd.
JPMorgan Securities Japan Co., Ltd.
Nomura Securities Co., Ltd.
Citigroup Global Markets Japan Inc.

Presentation
Moderator: Hello, investors. Thank you for joining us today for the presentation of the new medium-term
management plan and financial results for Q3 of FY2022 of Sapporo Holdings Limited. The time has arrived,
and we will now begin.
Today's briefing will consist of two parts. The first part of the meeting will be a presentation on the new
medium-term management plan. After an hour including Q&A, the second part of the meeting will be apresentation of financial results for Q3 of FY2022. This session is scheduled for 30 minutes including Q&A.
Attending the first part of the meeting are Mr. Masaki Oga, President and Representative Director, Sapporo
Holdings Limited; Mr. Yoshitada Matsude, Managing Director; Ms. Rieko Shofu, Director; Mr. Tetsuya Shoji,Outside Director; Mr. Shuji Fukuda, Outside Director, Audit Committee Member; and Mr. Hiroyuki Nose,
President & Representative Director of Sapporo Breweries Limited.
Attending the second part of the meeting will be Mr. Oga, Mr. Matsude, Ms. Shofu, and Mr. Nose.
Please have on hand the summary of financial results, supplementary information to the financial results,
PowerPoint presentation material of the financial results, and explanatory material of the new medium-term
management plan.
Mr. Oga will begin with a summary of today's events, and then Ms. Shofu will give an overview of the new
medium-term management plan based on a PowerPoint presentation. Please go ahead.
Oga: Before I give my summary, I would like to talk about the year 2020, when the current medium-term plan
began.
The year 2020 coincides with the start of the pandemic. As you know, the year ended disastrously, with a loss.
In light of the results, we had some thoughts that it would be difficult to continue the current medium-term
management plan for a long time, but we have been working on it, giving priority to promoting structuralreform of the Company first.
Regarding the results, or glimpses of the results, we would like to give a presentation of the financial results
after this. We take the loss very seriously and recognize that it is the mission of our management team to
improve our corporate value, and that we would like to make a strong effort to increase profits for ourshareholders and other stakeholders.
Since that time, we have had lively discussions with the outside directors on how we can improve the valueof the Company. The plan was developed through a process that included interviews with operatingcompanies conducted solely by outside directors, meetings of the Outside Directors Committee, and themaking of recommendations based on the results of these meetings.
We have been discussing this issue intensively this year, but it has taken us a total of three years. It is also
very important to start the new year with a fresh start in January, so we believe that today's financial resultspresentation is the best time to announce this.
Also, since there has been a lot in the press, I would like to address some of your concerns here. There has
been a lot in the press over the past day or two about 3D Investment Partners Pte, Ltd. They are a shareholderof the Company, and we have received a letter from them. And it is also true that we are engaged in dialogues.

However, we would like to ask for your understanding that we will not disclose our interactions with individual
shareholders.
We have prepared our medium-term management plan in this manner, reflecting the opinions andsuggestions we have received from various shareholders through IR and SR activities, and at the same time,taking them seriously.
In that sense, there have been some statements or reports in the press that the outside directors do not fully
understand the opinions and requests of shareholders, or that they consistently reject requests, but webelieve that such statements are not true. We intend to engage in even more constructive dialogues with ourshareholders.

I will now move on to the summary. Financial results will be explained later.
In that context, our strongest focus in our medium-term plan has been on improving capital efficiency. As aresult, we have set a goal of achieving an ROE of 8% by 2026.
We have been building on efforts to increase the certainty of achieving our current medium-term plan.
The first major part of the efforts is that we have been thinking about and enhancing various measures ineach of our businesses, including securing a manufacturing base such as Stone Brewing Co.in the US as wellas in Japan.
Then we would like to clarify that we are once again committed to the real estate business as an importantbusiness. We hope to improve profitability and asset efficiency by diversifying our revenue structure.
The time frame for this real estate business is slightly different from other businesses, and we have to thinkover a long span of time. We would like to include not only rent centered on YGP, but also the developmentof larger projects. We are considering various measures, not everything on our own.

We have created this medium-term management plan with the belief that our community contributions andcommunity development, including these three businesses, is what we are aiming for, and that it will lead tosustainable management.
We intend to enhance our corporate value by realizing both economic and social value.
That is all from me.
Moderator: Thank you for the explanation. Ms. Shofu will continue with an explanation. Please go ahead.
Shofu: I will now explain the medium-term management plan 2023 to 2026.
First, I would like to reiterate that the medium-term management plan that I am presenting today has beenthoroughly discussed by internal and external directors, based on dialogues with investors and inputs fromoutside experts.
I will now proceed with the explanation according to the materials.

Page four. The basic policy of this medium-term business plan is "Beyond 150: Transforming the businessstructure for new growth.”
The Sapporo Group will celebrate its 150th anniversary in 2026. In this medium-term plan, we plan to build afoundation for growth in order to keep demonstrating its exclusive value to society beyond this 150th
anniversary milestone.
To this end, we have examined our past management policies and reviewed our business portfolio frommultiple perspectives to ensure clear positioning. We intend to manage in line with this portfolio to increase
capital efficiency and enhance corporate value.
The first thing to be addressed is structural reform. Businesses categorized as businesses subject torestructuring and divestment in the portfolio will be fundamentally reviewed by 2024.

Next, in strengthening and growth, we will strengthen the profitability of our Japan alcoholic beverages andreal estate businesses, and prioritize the allocation of resources to our overseas businesses to achieve growth.
The entire group will be managed with greater awareness of capital efficiency than ever before.
As Mr. Oga mentioned earlier, our financial target is 8% ROE, and the current rate is 3.1%, so we plan toincrease this by about 5 percentage points during the period of this medium-term plan.
In addition, to enhance cash generation, we have set the compound annual growth rate of EBITDA andoverseas sales at approximately 10% each as a growth target.
Main non-financial targets. We will reduce CO2 emissions in Scope 1, 2, and 3, respectively, to SBT certificationlevels. For your information, commitment letter was submitted to SBT initiative this quarter, and has alreadybeen accepted.
As part of our commitment to diversity and inclusion, we aim to achieve a ratio of female directors andmanagers of at least 12%.

Now, I would like to take a brief look back at the Group management plan to date.
In 2020, the pandemic began, and the impact on our performance was tremendous. Furthermore, changes inthe environment have accelerated more than expected or even unexpected. E-commerce, in-homeconsumption, and consumer health awareness are on the rise more than ever.
In addition, also, as you all know, costs are rising due to various factors such as procurement costs for raw
materials and energy. Exchange rate is also a big factor. In response to these changes, we have been selling
off our café business or making structural changes in our restaurant and commercial-use alcoholic beverages
business.
Efforts are also underway to respond to changes in the procurement environment. We believe that further
strengthening is necessary.

In addition, the Group Management Plan 2024 sets forth four basic policies. In this context, the growth ofoverseas businesses has been progressing with respect to the acceleration of global expansion.
To establish a simple and compact corporate structure, some functions of the holdings company weretransferred to the operating company to clarify their roles.
However, regarding the concentration and strengthening of the core business mentioned at the top, it is truethat there are still challenges in resource allocation and speed, especially in the Japan food & soft drinks
business.
In addition, each of our businesses made progress in addressing key sustainability management issues.
However, the social environment is constantly changing. In this context, we believe that even more vigorous
planning and execution is needed.

Quantitatively, COVID-19 in 2020 had a negative impact of approximately JPY6.5 billion on core operating
profit, particularly in the restaurant and café business. We recognize that there is still a large gap toward thetargets we have set.
Under these circumstances, we have made progress in various reform and improvement initiatives in all
segments and businesses, from Japan alcoholic beverages to real estate. These efforts are to bear fruit overthe current and next fiscal years and beyond.

I would now like to explain our medium-term plan 2023 to 2026.

First, I would like to discuss our management philosophy and the value we provide.
The Sapporo Group's unchanging management philosophy is As an intrinsic part of people’s lives, Sapporo willcontribute to the evolution of creative, enriching and rewarding lifestyles. However, the concept ofenrichment will change over time. We have defined the essence of enrichment as the enrichment of nature,society and mind.
The Group has three businesses of alcoholic beverages, food & soft drinks, and real estate, and a group of
distinctive brands under each of these businesses. Our value is to contribute to the wellbeing of our customers
through the time and space that they spend with us, and to the enrichment of nature, society and mind.

For example, the alcoholic beverages business's focus on manufacturing products from raw materials, the realestate business's use of group assets to revitalize local communities, the connections with people that enjoy
beer, and the food & soft drinks business's promotion of the health value of lemons, these are efforts all
unique to our company and will lead to the enrichment of nature, society, and mind.

In addition, each business within the Group will collaborate in branding, marketing, customer contact andjoint product development, with a focus on alcoholic beverages, to create synergies that lead to wellbeing.

We will move on to page 13. The framework of the medium-term management plan is as shown here.
I will explain the specifics of our business strategy, followed by sustainability, financial strategy, andmanagement foundation, in that order.

First is the business strategy.
We have positioned the businesses within the Group in four quadrants based on market environment,
strengths, sustainability, profitability, synergy, and resource allocation.
The items we have placed in the businesses subject to divestment in the lower left-hand corner are somealcoholic beverages and some food & soft drinks. This will be promptly divested. Also, included in the
restructuring are Japan food & soft drinks and restaurants. In the upper right-hand corner, we have placed
overseas alcoholic beverages and overseas beverages in the growth area, and in the lower right-hand corner,
Japan alcoholic beverages and real estate in the strengthen profitability area.
We will determine the direction of these businesses by using ROIC or the degree of profit attainment as themain criterion for each fiscal year.

Let me start with the businesses we have placed in the restructuring.
First, domestic food & soft drinks.
A major challenge for Japan food & soft drinks business is the low profitability of businesses other than lemon.
Although we have sold the café business and partially withdrawn from the vending machine business, werecognize the need for fundamental structural reforms to address the overall low profitability of the business.
Specifically, we will seek to resolve issues by selling or withdrawing from low-profit or non-core businesses,
or by forming business alliances. In soft drinks, we will substantially reduce the number of SKUs and thereby
improve efficiency. We will also reorganize several production bases through the above initiatives.
The lemon business, on the other hand, is a business that has been growing in revenue all along with theincreasing health consciousness of consumers. We will concentrate our resources in lemon for further
expansion.

Next is the restaurant business.
While the impact of COVID-19 continues, we have been very aggressive in closing unprofitable stores. I willreport the results for Q3 later, but we have returned to profitability from April to June and from July to
September. Going forward, we will concentrate on medium-sized and small stores, and then on stores in thesuburbs of cities.
In addition, we will continue to shift resources to YEBISU BAR and Ginza Lion businesses. We will speed up therevitalization process and transform the business into one that contributes to the Group.
In addition, we will further strengthen brand and sales synergies with our Japan alcoholic beverage business.

Next is the business we have placed in the growth category.
Overseas alcoholic beverages include the US and Canada in North America, and Vietnam, as well as export
business, with the US being the growth driver for this business. SAPPORO PREMIUM BEER, which is soldoverseas under the brand SPB, has been expanding its fan base based on the concept of East meets West. It
has continued to grow steadily, and in North America, we are in the number one position for Asian beer sales .
However, until now, we have not had a manufacturing base in the US, and we have transported products frommanufacturing bases in Vietnam and Canada. The acquisition of Stone Brewing Co this quarter addresses these
supply chain challenges. We expect supply chain synergies with Stone Brewing Co , as well as synergies interms of sales, which will result in a profit effect of approximately JPY4 billion.

Next, overseas beverages.
Overseas, we are developing our beverages under the brand POKKA, and we are in the unassailable number
one position in tea beverages in Singapore. POKKA was quick to implement structural reforms and has
continued to increase profits even during the pandemic. In the future, we will strengthen our sales structurein Malaysia and the Middle East, where there is room for growth, to expand revenues.
In Singapore, we are currently constructing a logistics base, which is expected to be completed in 2024, andwe will consolidate our offices and R&D functions at this base to improve efficiency.

With these initiatives, we expect a CAGR of approximately 10% growth in overseas businesses, with sales ofapproximately JPY100 billion in overseas alcoholic beverages in North America in 2026, JPY33 billion inoverseas beverages in 2026, and JPY7 billion in other regions.

Next, let's look at the businesses placed in the strengthen profitability area.
First, Japan alcoholic beverages.
We will make structural transformation from low profitability and further select and concentrate on areas
where we have strengths. The first point of structural transformation is to improve and reorganize the productmix. We will strengthen high unit price products by downsizing domestic daily wines as well as happoshu andnew genre beverages.
Next, we will change the cost structure. As we have already announced, we have decided to stop beer
production at the Sendai plant. The plan is to convert this Sendai location into a manufacturing base for RTDs
and capture the costs that had been outsourced. Conversion to RTD factory is targeted to be operational in
H2 2023.
In addition, we will also organize our cost structure, including channels, areas and personnel structure, inorder to break away from low profitability.

On the other hand, in the focus areas, the mainstay is beer. In anticipation of the revision of liquor tax, wehave been strengthening our mainstay brands, Black Label and Yebisu. In fact, sales of Black Label cans haveincreased for seven consecutive years. Going forward, we intend to make these two brands even more
attractive and increase their profit margins.
RTD is also one of the focus areas. In the RTD category, we plan to maintain and strengthen our current core
brands of Koime no Lemon Sour and Otokoume Sour, while developing and launching new market-creatingproducts that will become our third core brand.

Now, let's look at the other business that we have placed the profitability enhancement area, the real estatebusiness.
We manage real estate from a long-term perspective due to its business characteristics. We recognize that2026 is a passing point.
Until now, leasing has been the mainstay of this business, accounting for most of our revenues. As you all
know, the earnings structure of Yebisu Garden Place, the mainstay of this leasing business, will change in the
future due to renovations and the replacement of air conditioning and other equipment in the office building.
In response to this, we have a plan to transform to the asset turnover business model by combining some of
our assets with equity investments, VA securitization business, and private REITs formation. By doing so, weplan to improve overall asset value.

In addition, among the assets we own, for our core properties in Ebisu and Sapporo, we will work together
with local governments and partners to develop and enhance the community value by leveraging the uniquestrengths as the owner. These initiatives advance our sustainability agenda and improve our brand value,
which is also linked to beer.
Just yesterday, the commercial building of Yebisu Garden Place was reopened and is attracting a lot of
attention as an experience-type facility.

Through these structural reforms and growth strategies, we will achieve ROE of 8%.

We have also included the profit impact related to our major initiatives. In Japan alcoholic beverages,
strengthening of beer and improved beer profit margin will add JPY5 billion, and growth in RTD business will
add JPY4 billion.
In overseas alcoholic beverages, synergies with Stone Brewing Co, as explained, will have a profit effect of
JPY4 billion. In addition, in Japan food & soft drinks, a combination of cost structure reforms and other factors
will amount to JPY2 billion.
In addition, other major business initiatives are expected to have a total benefit of about JPY2 billion, but I
would like to add that these amounts are based on further expected increases in energy and raw material
prices.

Next is sustainability.
In conjunction with the formulation of our medium-term management plan, we have completely revised oursustainability priorities. The issues reviewed in this process are organized within the framework of harmony
with the environment, co-prosperity with society, and the success of human resources, and we have a totalof seven priority issues under each framework.

We have placed the realization of a decarbonized society, co-prosperity with the local community, and thesuccess of diverse human resources as the most important issues, as they are strongly related to the Sapporo
Group's business and have a high impact on society. We will set specific initiatives and KPIs for each, which
will also lead to the creation of economic value.

Next is the financial strategy.
Our financial strategy is based on sustainable growth and an emphasis on capital efficiency. We will strengthen
our ability to generate cash flow and allocate it based on a clear allocation policy.

I would like to explain the allocation a little specifically.
In terms of cash outflow, we plan to invest approximately JPY130 billion in maintenance and growthinvestments over the period of this medium-term management plan. We would like to allocate about 50% of
this amount as growth investment, giving priority to overseas businesses.
In addition, about 60% of the total maintenance and growth investments will be allocated to the alcoholic
beverage business. And, we then plan to allocate about 10% of the total to sustainability-related investments.
With regard to assets, we will take necessary reductions in terms of proper management of the balance sheet.
As for policy stockholdings, we intend to achieve less than 20% as a percentage of equity during this mediumterm plan period.
Regarding shareholder returns, the Company will aim to increase the level of dividends with medium- to longterm profit growth, while maintaining stable dividends with the current dividend level as the lower limit. Ourbasic policy is to maintain a consolidated dividend payout ratio of 30% or more.

Finally, management platform and other initiatives.
Regarding human assets, based on business portfolio management, we will first invest in developing andsecuring global human resources, and then strategically allocate them.
The ratio of female directors and managers, etc. as part of D&I are as I mentioned at the beginning.
We are also reviewing our personnel system and will improve work engagement by strengthening supportive
management or supporting mental toughness.
In terms of DX, we have already started a training program to develop all employees into DX human resources
this fiscal year. We have about 4,000 employees in Japan, most of whom have already received basic training,
and we are now focusing on the development of leaders.
Going forward, our transformation will focus on process reforms in the supply chain.
In R&D, we will focus on the sustainable procurement of raw materials and the experience of good taste, andin food & soft drinks, we will focus on the area of health functions.

Finally, I would like to talk a little beyond the medium-term management plan period. Let me introduce someof our efforts toward the creation of new value.
Uchirepi on the left side is our in-house venture. It is a mobile application that includes functions such as
shopping, cooking, refrigerator inventory utilization, and family communication.
The concept is to provide a smart life through food. We officially launched this summer, and it is already being
used by many people and companies. We are still in the incubation phase, but we would like to commercialize
and nurture this business over the long term.
Also on the right side, you will see our long-term commitment to the real estate business. The Shinkansenbullet train will extend to Sapporo in 2030, and we own several properties in the Sosei East area near the
Sapporo Shinkansen station.
We have already begun redevelopment of some of the properties, and we plan to work with the local
government and our partners to create an affluent community in the entire area that offers work, residence,and recreation in proximity, with the long-term goal of increasing asset value.
I have now explained the strategies and specific initiatives of our medium-term management plan.
As introduced at the beginning of this presentation, our outside directors also present today. Director Shoji
will say a few words.
Shoji: I’m Shoji, Outside Director. On the announcement of this medium-term management plan, I would liketo say a few words on behalf of the outside directors.
We, the outside directors, have listened sincerely and widely to the opinions of shareholders and stakeholders,and have led free and vigorous discussions at the Board of Directors meetings. We have actively considered
the formulation of this medium-term management plan that has just been announced, and in particular, thereorganization and strengthening of our business portfolio, including structural reforms, as explained earlier
by Director Shofu, through a series of discussions.

I am confident that the steady implementation of this new management plan will enhance the corporate valueof the Company, and we, the outside directors, would like to support the executive side of the Company.
We are pleased to participate today as a valuable opportunity to hear the opinions of our analysts, and welook forward to your support.
Moderator: Thank you for the explanation.

Question and Answer

Moderator [M]: We will now begin the question-and-answer session. When it is your turn and the moderator
calls your name, please ask your question after your company name and your name.
We will now begin the question-and-answer session. Please ask your questions in a question-and-answer
format. In addition, to respond to the questions from many people, we will limit the number of questions to
two per person.
First, Mr. Saji of Mizuho Securities.
Saji [Q]: I’m Saji from Mizuho Securities. Since this is a good opportunity, I would like to ask Outside Director
Shoji about this medium-term business plan, which was discussed at the Board meeting. What is yourawareness of the current business portfolio in terms of profitability and synergy, and what do you think is
optimal?
You are proceeding with various structural reforms in each field, but as a general framework, you aremaintaining the current Japan alcoholic beverages, food & soft drinks, overseas business, and real estatebusinesses as they are. As an outside director, what is the background of why you think this is the best, andare you aware of any issues in your business portfolio? This is the first question.
Shoji [A]: Thank you for your question. Today, President Nose, who is in charge of beer, is also here, so I hope
he will reinforce my answer. In our medium-term management plan, we have just formulated a plan for therecovery of our core business as one of the main pillars.
We take seriously the fact that we do not have an advantage in the market, but when we think about how we
can provide alcoholic beverages centered on this beer to a certain number of fans and those who love
SAPPORO, there are areas where we can strengthen our current capabilities even further. Therefore, we areproposing to strengthen our beer and other alcoholic beverages business.
If we use the term "core business concentration," for example, sales of Black Label cans have been increasing
for seven consecutive years. Therefore, of course we want to compete in the beer business, and the current
plan is the result of various discussions held by President Nose and others on how to improve profitability inthis context. So Mr. Nose, could you answer more specifically?
Nose [A]: Thank you for your question, Mr. Saji. In the next medium-term management plan, the alcoholic
beverages business will be in the center of the plan, and we will grow the business firmly as a base line. Even
regarding investments that can be generated from cash flow, I believe that it is also my responsibility to makesure that the business is doing well first.
As a company that sells alcohol, both domestically and internationally, from the perspective of which brands
to focus on, which markets to compete in, and which markets to exert competitive advantage, we have beenworking for the past few years to grow and reform our beer sales in Japan, to reorganize our manufacturingbases to achieve that growth, as well as to reform our supply chain overseas. In Japan, we have been working
to grow and reform our beer sales, and to reform our supply chain overseas. And as for the high costs, wehave made the decision to raise our prices.
From this perspective, we intend to go to the phase of solid implementation in the next medium-term
management plan, and then further enhance profitability.

Also, Ms. Shofu will explain from the perspective of retaining real estate and food & soft drinks.
Shofu [A]: I will explain again about food & soft drinks. While alcoholic beverages remain our core business,the real estate business is also definitely a core business in terms of stable earnings, utilization of group asetts,
improved of asett value , and contribution to sustainability. We would like to strengthen the profitability of
the alcoholic beverages and real estate businesses.
On the other hand, in the food & soft drinks business, we have placed our portfolio in two separate categories:
overseas beverages and Japan food & soft drinks. We are entrusting our growth to overseas beverages, andalthough we have placed our Japan food & soft drinks under restructuring, as explained earlier, we have avery large task ahead of us. First, we have decided on this portfolio based on the basic policy that we will
fundamentally review it by 2024.
Saji [Q]: Thank you very much. I would like to express my awareness of the issue. I understand the mediumterm management plan from the standpoint of execution, but I think there is a growing interest in whether
execution, supervision, and monitoring are properly separated as part of governance. In the future, I would
appreciate it if you could disclose a little bit about the discussions that took place between the executive
officers and the supervisors, and the process by which this was assembled.
I have just heard about the medium-term plan and will definitely continue to watch for it. Thank you verymuch.
Shoji [A]: If I may add something, we offer our opinions on how the Sapporo brand is perceived by consumers
from the consumer's point of view. In a sense, we are in a side-support position, but we have been discussing
how the SAPPORO brand can penetrate our core beer and other alcoholic beverages businesses.
It is President Nose, Ms. Shofu who execute it. You mentioned monitoring earlier, and I believe it is our
responsibility to monitor the steady implementation of this plan that we have created.
Unfortunately, as you pointed out, the past strategies or plans are numerically unachieved, but the current
plan is based on a thorough examination of that, and as the President mentioned earlier, we believe that theplan is highly feasible and viable. I believe that our role as outside directors is to manage this business on theexecutive side, not only through the Board of directors, but also through off-side information exchange andbusiness observation, including the business inspection I mentioned earlier.
Mr. Fukuda is also here today as a member of the Audit Committee, and we are working together.
Fukuda [A]: I think it is very important for us to follow up with the executive side in detail. I believe that wehave to follow up on these important management plans even more than before.
Therefore, as a Board member, I have a totally same ideas on these concepts, and I would like to work withthem in that way.
Saji [M]: Thank you.
Moderator [M]: Thank you very much. We will move on to your next question. Mr. Sumoge of Okasan
Securities.
Sumoge [Q]: I’m Sumoge of Okasan Securities. First of all, I would like to ask President Oga about the overall
impression of the medium-term plan. While past medium-term plans have not been achieved for a long time,
the current fiscal year will have a high target growth rate of about 25% in terms of core operating profit, andthe next mid-term plan’s target of 8.0% in terms of ROE. Looking at the numbers alone, I honestly get the
impression that it will be a challenge.

However, listening to President Oga at the beginning of the presentation, I got the impression that you arevery confident, so I would like to know what has changed in your company between the past and the next
mid-term plan, in terms of the organization, management resources, etc., and what has increased thecertainty of achievement? Could you tell us about overall, or about any individual project?
Oga [A]: I would like to answer your question. There are many reasons to support this, but first of all, thedifference is that we have been able to build up in core alcoholic beverage business.
First, as mentioned earlier, in our fastest growing and still growing North American business, we were able toestablish a manufacturing base with Stone Brewing Co, where we can create the most synergies. We aretransporting from Canada and Vietnam, but in our estimates, we can certainly change this.
Then, we have been only trying to absorb the cost increase, but we were finally able to raise beer category
price in Japan for the first time in 14 years.
In addition, we will close the Sendai plant as a beer business. We will further consolidate the beer business.
We can also see significant progress in making our own RTDs there as well.
Moreover, as a beer business, there are two tax reforms, in 2023 and 2026. There is a definite beer shift taking
place.
At such times, as I have told you before, beer is more profitable than new genres and happoshu. When we
combine those things with product development, it is very important to have a solid core business.
When we add the contributions of food & soft drinks and real estate to it, we will be able to make an evensignificant difference in certainty, even though we had been doing so with a high degree of certainty.
Sumoge [Q]: I see. So, the reason for the confidence is the Company's increasing certainty to grow profits
from Japan beer and overseas alcoholic beverages, including current initiatives, price increases, andacquisitions. It differs from the past medium-term plan. Right?
Oga [A]: Yes.
Sumoge [Q]: I understand. Next is a related question. At the beginning, the President said that the thing that
he was most strongly aware of is to increase capital efficiency, and I think that will lead to higher ROE. Looking
at the plan, if you get to the core operating profit target of JPY25 billion, I rather think you can achieve 8%
ROE, and I am under the impression that the numerator, or profit is the driver of ROE. Is that correct in thiscalculation?
Oga [A]: We recognize that this 8% corresponds to about JPY25 billion in core operating profit.
Sumoge [Q]: I see. From this point of view, profits are subject to volatility due to changes in the external
environment, so there is quite a bit of uncertainty. In terms of improving capital efficiency, I think it is very
important to reduce assets in the denominator. To what extent are you considering initiatives to increase
ROE?
What kind of drastic structural reforms are currently being considered to increase ROE, in the denominatoror the assets, not in the numerator?
Matsude [A]: I’m Matsude. Thank you very much. In asset improvement, one of the growth strategies for thereal estate business is to transform to the asset turnover business model, and among the real estate assets
we currently hold, it is strange to call them non-core assets, but we plan to liquidate and sell off some assets
of about JPY30 billion to JPY40 billion.

However, in terms of ROE, we do not adopt the concept of reducing equity. Therefore, I think it is best tounderstand that the driving force behind increasing ROE is only to increase returns. However, the asset review
itself will also be done properly.
Sumoge [Q]: Thank you very much. I would like to add something at this point. In the cash flow section, I havethe impression that the JPY130 billion investment is very large during the four years of this medium-term plan.
50% will be used for investment in growth, but frankly speaking, I wonder if this investment will really improve
capital efficiency. If you invest in growth, it will take longer to earn a profit, and I am wondering if you canreally achieve this goal with this medium-term plan, but do you imagine that you will invest to earn profits soquickly?
Matsude [A]: One of our growth investments is to increase the capacity of Stone Brewing Co, which we havejust acquired. We believe this will lead to the creation of synergies.
Then, can a growth investment make a return over this period of time as it is? Structural reforms will also
incorporate other measures such as a review of the business portfolio and various cost reductions.
There is a table of ROE, and in the table, there is a JPY5 billion improvement in reinforcement of beer andimproving profitability of beer-type bev, which includes, , the price increase effect, and also the mix
improvement effect. Furthermore, we are also to improve the efficiency of sales promotion expenses.
And JPY4 billion will be from the growth of RTD and production efficiency improvement, most of which will
be covered and generated by the suspension of beer production at the Sendai plant and the reduction ofoutsourcing costs associated with the shift to RTD.
In addition, in Japan food & soft drinks business, we have narrowed down the number of SKUs, in other words,
we are reducing costs without focusing on the top line.
Therefore, we believe that we can take the cost reductions we have been promoting to an even higher level.
We hope you understand that we are also considering major measures other than those, such as the drastic
liquidation of unprofitable businesses.
Sumoge [M]: Understood. Thank you.
Moderator [M]: Thank you very much. We will now move on to your next question. Ms. Yoshida of JPMorgan
Securities.
Yoshida [Q]: I’m Yoshida from JP Morgan Securities. First, regarding Japan food & softdrinks, I believe that
half of the JPY15 billion increase in profit in the next medium-term plan will come from structural reforms andhalf from growth. I think one of the key points of this structural reform will probably be in Japan food & softdrinks, but I still wonder if you can really do it. In the previous medium-term plan, you mentioned that you
would reform the vending machine business, but my impression is that it was on a smaller scale than I had
expected. I would like to know more about the specifics of the action plan.
For example, I would like to know more about how many SKUs will be reduced in the future, and what you
are thinking about the vending machine business.
Secondly, you mentioned earlier that you will sell about JPY30 billion to JPY40 billion of this real estate, but I
think your company's real estate has about JPY180 billion to JPY200 billion in unrealized gains. Rather thanunleashing this, are you really trying to liquidate only a portion of the real estate you currently own? Please.

Shofu [A]: I will answer first about food & soft drinks business. Regarding the main contents of the structuralreform of the food & soft drinks business, soft drinks are divided into two main SKUs: lemon beverages andother beverages.
Lemon beverages are in the growth area, so we are already making significant reductions in beverages otherthan lemons. I can't give you a specific number right now, but I hope you will understand that it will be reduced
considerably.
In addition, since we have counterparties, we cannot disclose them yet, but we are going to drastically review
some businesses that have low profitability due to collaboration with other companies and so on.
As for the vending machines, as you mentioned, we withdrew some of them this fiscal year, but I do not think
this alone will be enough. In the vending machine business, there may be a plan for further reform, specifically,collaboration of other company, and although we are proceeding with the dismantling of unprofitable vending
machine internally, we are also planning to implement reforms that will take a more in-depth look at the
progress of the vending machine subsidiary itself in this medium-term plan.
Matsude [A]: I will answer regarding liquidation of assets. As you say, the volume is about 10% of the overall
volume. I would like to refrain from discussing the gain on the sale, but I hope you understand that it is notthat large.
Yoshida [Q]: I understand. Thank you very much. Regarding this structural reform of Japan beverage, it isalmost the end of 2022, but when will we see the effects, in 2023, 2024, 2025, 2026, or will they be the same
scale each year? As for progress, when will you see the peak?
Shofu [A]: The milestone for progress is 2024, and we would like to proceed with a sense of speed to reachthe goal of structural reform by this time.
Yoshida [Q]: Then, is it like finishing by 2024 and then jumping up in 2025 or 2026 in terms of profit?
Shofu [A]: We have a picture that by 2024, we will have reached a certain point in the structural reform partand will concentrate the resources generated there on the lemon-based products.
Yoshida [Q]: Okay. So you are saying that the real estate business is not actively selling anything.
Matsude [A]: That's right. In the real estate business, our stance is to develop and enhance the value of Yebisu
Garden Place and other assets in Sapporo in cooperation with the community as the asset owner.
Yoshida [M]: I understand. Thank you.
Moderator [M]: Thank you very much. It is almost time, so next is the last question. Mr. Fujiwara of Nomura
Securities.
Fujiwara [Q]: I’m Fujiwara of Nomura Securities. Just one question. I would like to ask you about Japan
alcoholic beverages. I have always thought that the momentum of Black Label is great, but while theconcentration on beer is a very reasonable strategy, the policy is to shrink the areas of happoshu and new
genres. Beer is like an equipment industry, and when you think about distribution, it is like you need to takemany sales areas. I think that in order to promote this strategy, you need to drastically review your production
system more and more, for example.
Please share your thoughts around the supply chain, because the RTD part is shown a bit, but I think we needto go further.

Nose [A]: Nose will answer this. Thank you very much. The liquor tax revision I mentioned earlier has had ahuge impact, and the volume of beer, especially in cans, has increased considerably over the past four to five
years. In the competitive industry, there has been no growth in either bottles or cans over the past five to six
years, but we have seen an increase in absolute volume by about 30% to 40%.
From that perspective, we see this volume growing even more when there will be two more tax cut in the
future.
In addition, we are also considering the volume of RTDs that we make in Japan, some of which are currently
being made outside the Company, to be brought into the Company. In terms of total production volume, if
we add beer and RTDs together, the total will probably be larger than our current production volume, andthis is factored into our plan.
So, we are not making the decision to go further in the production sector either in the next medium-term plan.
However, from the perspective of where and how to make which products, since the Sendai plant will be shut
down, we intend to move forward with the allocation of production on a nationwide level.
Fujiwara [Q]: Thank you. So, I guess the idea is to allocate resources from happoshu and new genres to beer
and branded RTDs.
Nose [A]: That's right, the price increase last year, the 2020 liquor tax hike have had a negative impact on new
genres, and the price of beer and RTDs was raised in October. We are aware that customers' reaction to lowpriced products is a little weak, and we expect their return to be slightly weak.
The price will change again in the future with the 4 year process. We have been able to accumulate a trackrecord of expanding our RTDs while shifting our focus to beer. So we believe that it is more rational to choosethat option, and we are aware that we can meet our customers' expectations in our field of expertise. We
would like to proceed in that direction.
Fujiwara [M]: I understand. We have high expectations.
Moderator [M]: Thank you very much. This concludes the first part of the briefing on the new medium-term
management plan.

Presentation

Moderator: We will continue with the second part of the presentation, the financial results for Q3 of FY2022.
Mr. Matsude will give an explanation. Please go ahead.

Matsude [A]: I will now present the financial results for Q3.
Please refer to page six of your handout, Financial Highlights.
First, revenue increased by JPY 36.8 billion to JPY345.8 billion YoY, up 12%. Core operating profit was JPY5.7
billion, an increase of JPY4.2 billion YoY.
Profit attributable to owners of parent was JPY5.3 billion, a decrease of 10.4 billion YoY. This is due to a JPY21.6
billion decrease in gains on sales of real estate compared to the previous year.
As for the comparison with the Company plan, revenue and core operating profit are in line with the plan.
Operating profit and below are positive.

I will now explain the main factors behind the increase in revenue and profit.
Revenue increased due to continued growth of overseas alcoholic beverages in North America and a recovery
in restaurant demand.
Despite the continued impact of cost deterioration, core operating profit increased due to the effect of higher
sales and the creation of the effect of structural reforms in the restaurants and food & soft drinks businesses.
Looking specifically at revenue, an increase in Japan alcoholic beverages contributed significantly to revenue,
accounting for more than half of the total.
In the food & soft drinks business, which is undergoing structural reform, sales declined due to the impact of
the transfer of the café business and other factors.
In the real estate business, revenues decreased due to the sale of properties last year and other factors.
The foreign exchange revenue increase effect of the weaker yen for the Group as a whole was JPY8.5 billion.
As for core operating profit, the impact of cost deterioration was JPY6 billion for the period from January to
September. Profit increase was due to the effects of increased revenues and structural reforms.
As for the overseas alcoholic beverages business, we acquired Stone Brewing Co at the end of August, and its
profit and loss were consolidated from September. Due in part to that impact, profit decreased.

Next, I will explain the impact of cost deterioration.
The forecast is for a JPY1.5 billion deterioration from Q2, and an annual deterioration of JPY8.5 billion.
The total for January to September is to be JPY6 billion, JPY3.5 billion in Japan and JPY2.5 billion overseas. For
Q4, we estimate JPY2.5 billion, JPY1.4 billion in Japan and JPY1.1 billion overseas.
We intend to respond to these effects by revising prices and controlling costs.
Although further cost increases are expected in the next fiscal year, we will basically cover such increases byrevising prices.

Next, I will explain each segment.
The first is Japan alcoholic beverages business.
Japan alcoholic beverages sales and profit increased due to a recovery in restaurant demand and the impact
of temporary demand prior to price revisions, despite soaring raw material prices and higher fixed costs suchas brand investment.
As for revenue, of the JPY20.1 billion increase in revenue, beer sales increased by JPY14.9 billion. The impact
of temporary demand before the price revision is estimated to be about one-third of the total.
In addition, the sales volume of beer for the period from January to September increased by 11% YoY. Beer
saw a 20% increase even in the pandemic.
RTDs and other products increased by JPY3.7 billion, with Koime no Lemon Sour continuing to make acontribution to RTDs.
Next, regarding core operating profit, the cost deterioration had a negative impact of JPY1.8 billion, and there
was an JPY800 million increase in depreciation associated with the conversion of the Sendai plant to RTD.
These cost increases were offset by increased sales of beer and other products, resulting in a profit increaseof JPY2.3 billion.
As for the status of recovery from the pandemic, the bar graph on the right shows the change in sales volume
for commercial use, compared to 2019. In particular, it was updated after July, while the 7th wave affected
the market in July and August, but this situation confirms that the 60% level compared to 2019 was the bottom
because of the absence of action restrictions.
In terms of the progress of various growth strategies, we are making steady progress in our growth strategies,
such as strengthening beer and growing RTDs. In addition, structural reforms, such as the conversion of the
Sendai Plant to RTD, are progressing smoothly.

Next, I would like to explain a little about the future strategy of the Yebisu brand.
Since last year, we have been strengthening our proposals to add color to our customers' time under thetheme “Color Your Time!” Looking ahead, we intend to further strengthen actions to highlight customer
contact points, both real and digital.
As a point of contact for real-life experiences, we would like to provide information to many people throughYebisu Station, which was named after the brand name, the town of Yebisu, our assets Yebisu Garden Place,and our restaurant business YEBISU BAR, all of which are connected to the Yebisu brand.

Next is the overseas alcoholic beverages business.
Sales increased due to a recovery in restaurants demand as well as the strengthening of SAPPORO PREMIUM
BEER for home use in the US.
On the other hand, profit decreased due to the impact of one-time costs associated with the acquisition ofStone Brewing Co, in addition to the rising costs of raw materials and transportation.
Revenue increased by JPY12.2 billion, mainly due to increased volume in North America. The impact of
exchange rates was JPY6.6 billion, or slightly more than half of the total. Of the increase in sales in the US, the
new consolidation of Stone Brewing Co had the effect of increasing sales by JPY1.3 billion.
Then I would like to add a few words about the sales of beer in Canada and the US.
First, in Canada, total demand was down about 4% YoY. Against this backdrop, the Company performed well,increasing by 1%.
In the US, total demand was down 2% YoY, but we were able to significantly outperform the market with an
18% increase.
Next, core operating profit was JPY2.3 billion, due to the impact of soaring costs and transportation costs. In
addition to this, our M&A impact was JPY0.7 billion this fiscal year, resulting in a decrease in profit.
The impact of the consolidation of the Company was a positive JPY1.3 billion for revenue, a negative JPY0.3
billion for core operating profit as profitability, and a negative JPY0.4 billion due to the recording of M&A fees.
For the October to December period, we estimate that revenue will be about JPY5 billion, and core operating
profit will be negative several hundred million yen.

Next is the restaurants business.
Revenue increased by JPY6.7 billion, 2.6 times that of the previous year, due to a recovery in restaurants
demand as a result of deregulation.
Core operating profit improved by JPY3.2 billion due to the effect of structural reforms, supported byincreased revenue. As Ms. Shofu mentioned earlier, we continued to achieve profitability in the April to June
period and then in the July to September period, which means that we are abele to be profitable in the next
fiscal year.
In terms of recovery from COVID-19, we have updated the existing store sales of Sapporo Lion since July, andI think you can see that the movement is almost the same as the sales volume for commercial use that I
mentioned earlier.

Next is the food & soft drinks business.
Overseas revenue increased, but revenue decreased due to the sale of the café business, reduction of
unprofitable vending machines, and other factors.
Core operating profit increased because of structural reforms.
Sale of the café business had a negative impact of JPY3.1 billion in revenue. Excluding this impact, on acontinuing operations basis, revenue increased by more than JPY2 billion.
The revenue decline of about JPY3.4 billion due to structural reforms in the vending machine business wasoffset by the growth of overseas business.
Regarding core operating profit, the impact of higher costs in Japan was JPY1.5 billion, but this was offset by
the positive effect of structural reforms of JPY1.3 billion, other cost reductions, and increased profits fromoverseas businesses.
As for the progress of our strategy, we are making steady progress in strengthening lemon-based products inJapan, promoting structural reforms, and growing our overseas business.

Next is the real estate business.
Both revenue and profit decreased due to the sale of properties last year. Revenue decreased by JPY1.3 billion
and core operating profit decreased by JPY1.6 billion, both of which were affected by the sale of properties
last year and the renovation of the commercial building at Yebisu Garden Place.
In terms of the future value enhancement of Yebisu Garden Place, we intend to increase its value by improving
the specifications of the building, re-branding the entire town, and through strategic leasing.

The next is operating profit and profit attributable to owners of parent.This has already been explained in thehighlights at the beginning, so I will skip it.

Finally, our efforts in sustainability management.
First, in terms of harmony with the environment, we introduced bioplastic cups. In the section on coprosperity with Society, we have listed our support for nature conservation activities in Hokkaido and our
implementation of positive impact finance.
The rest of this presentation is for reference only. That is all I have to say.

Question & Answer

Moderator [M]: We will now begin the question-and-answer session.
Mr. Fujiwara of Nomura Securities.
Fujiwara [Q]: I’m Fujiwara of Nomura Securities. I would like to ask two questions. The first one is how you
see the cost increase for the next fiscal year. The cost increase for the current fiscal year will be JPY8.5 billion,
and it may be a little difficult to predict what the cost increase will be for the next fiscal year, but what is yourimage of the cost increase for the next fiscal year, assuming that the current external environment continues?
Second, the beer price has been raised since October. Could you share information on how the volume ofbeer has returned after this price increase, if there is any information that you can see.
Matsude [A]: Thank you very much. As you mentioned, there are still some uncertainties regarding the cost
increase for the next fiscal year, but at least JPY8.5 billion of the deteriorating impact in the current fiscal year
means that a commensurate cost increase is expected for the next fiscal year as well.
We believe that the alcoholic beverages business in particular will be greatly affected, with domestic alcohol
beverages accounting for roughly 50%, overseas about 30%, and Japan food & soft drinks business theremainder.
I will explain the specific amounts again in the next fiscal year's plan, but one of the major factors is cannedmaterials.
In addition, as is true in general, the cost of energy is expected to increase.
Nose [A]: Thank you. As for market conditions, my honest feeling is that it's a little hard to say yet. Prices havebeen raised firmly at each of the stores, especially for home use. So we had expected that the volume ofhousehold purchases in September would subside after a month, but it seems that it remained a little until
early November. I can't show you the data today, but that's one thing.
Also, as you may be able to tell from another month of November, the trend in the return of beer for home
use is that beer is returning relatively quickly and the third beer a little slower, as I see it right now.
However, December will be the peak season again, and we will try to stimulate demand at a certain level, so
we would like to create an environment in which customers can purchase our products, even though priceincrease. That’s what I feel now. sorry I can't tell you the details.
Fujiwara [Q]: Thank you very much. On the first point, I would like to ask for some additional information.
Before this briefing by your company, there was a briefing by Kirin, and the cost increase for the next fiscal
year will have a further impact of a slight increase over that for the current fiscal year.
For example, if your company's impact are negative JPY8.5 billion in the current fiscal year, I wonder if we canimagine a cost increase of JPY10 billion in the next fiscal year. Is it not too far off the mark?
Also, I think it is inevitable that the weight of Japan alcoholic beverages will increase, but let me confirm
whether this can be offset by the effect of the price revision, or whether you will get a little extra change in
the next fiscal year only.
Matsude [A]: Well, I will not deny.

Fujiwara [Q]: Something like that, okay. Just let me know if you can make up for it, in Japan.
Matsude [A]: We believe that the price revision will be sufficient to cover the impact of cost deterioration in
the next fiscal year.
Fujiwara [M]: I understand. Thank you.
Moderator [M]: Thank you very much. Mr. Miura of Citigroup Global Markets.
Miura [Q]: Good evening, I’m Miura from Citigroup Global Markets. I have two questions. First, as President
Nose and the management, including Mr. Oga, mentioned earlier, your company's volume will increase until
2027. I think that is true. Maybe 2% to 3%, maybe a little more.
The mix of beer will also improve, so why not make an appeal the long-term growth potential of these beers
at some point?
There were questions earlier about governance and various other issues, but it's not about cost reduction or
anything like that, and originally Sapporo Beer is a very tasty product, that's why it has been growing for sevenyears in a row.
Since your company is an honest company, I think it would be better for you to have an opportunity to present
your potential in an honest manner. If we look at the next five to six years, your company will probably see
the biggest increase in profits if things continue as they are.
When I think about that, it's kind of a waste. I would like to see you make a positive comment, not a negative
one, on the next fiscal year's results.
Second, what kind of progress has been made in the cooperation with Yakult?
Nose [A]: For the first question, Mr. Miura, thank you for your powerful words. It may be that we are still not
sending out enough information from time to time. Our strategy is to invest in customer contact, with a focus
on beer, so we are preparing a lot of opportunities for customers to experience our taste. We believe that thisis a very important aspect of beer marketing, and we would like to strengthen this unique approach that noother company has.
We will build a solid business strategy and would like to take advantage of such opportunities. If you have achance, we hope you will try our products. Thank you very much.
Shofu [A]: I would like to answer about the cooperation with Yakult. Currently, we are discussing various
topics around supply chain, sales, and product development. We would like to make an announcement assoon as possible when we are able to disclose something.
Miura [Q]: Thank you very much. I'm sorry, what kind of products do you mean by products, supply chain orsales? I would appreciate a few moderated comments that will excite us.
Shofu [A]: Please look forward to it. I hope you will forgive me for today.
Miura [M]: Okay. Thank you very much.
Moderator [M]: Thank you very much. It is almost time, so I will now conclude the Q&A session.
In closing, we would like to have a few words from Mr. Oga.

Oga [M]: Thank you very much for your time. As I mentioned at the beginning of this presentation, we arecommitted to achieving this year's financial results as well as our medium-term plan. We would like to receive
your various comments and guidance.
Moderator [M]: That concludes the online meeting.
Thank you very much for your participation to the end of today's meeting. We appreciate your continued
support.
[END]______________