Financial Results
for the three months ended March 31, 2021 — Consolidated(Based on IFRS)May 7, 2021

Company name

Sapporo Holdings Limited

Security code
2501
Listed on
Tokyo Stock Exchange (First Section); Sapporo Securities Exchange
URL
https://www.sapporoholdings.jp/english/
Representative
Masaki Oga, President and Representative Director
Contact
Tatsuya Komatsu, Director of the Corporate Planning Department
Telephone+81-3-5423-7407
Scheduled dates:
Filing of quarterly financial report
May 14, 2021
Commencement of dividend payments
Supplementary information to the year-end earnings results
Available
Yes
Quarterly earnings results briefing held
(mainly targeted at institutional
investors and analysts)
1. Consolidated Financial Results for the three months ended March 31, 2021
(January 1 – March 31, 2021)(Amounts in million yen rounded to the nearest million yen)
(1) Operating Results(Percentage figures represent year-over-year changes)
Core Operating profit
Operating profit
ProfitRevenuemillion yen%

million yen

million yen%

million yen

Three months ended
March 31, 2021

89,894(9.9)(6,852)%_(6,160)_(5,248)_Three months ended
March 31, 2020

99,824(1.1)(6,197)_(6,078)_(4,704)_

Profit attributable toowners of parent

Total comprehensive
incomemillion yen%

Basic earnings
per share%

Diluted earnings
per share

million yen

%

Yen

Yen

Three months ended
March 31, 2021

(5,199)

_

(615)

_

(66.75)(66.75)Three months ended
March 31, 2020

(4,649)_(18,591)_(59.69)(59.69)Note: Profit before tax
Three months ended March 31, 2021
(6,230) million yen
Three months ended March 31, 2020
(6,304) million yen*Core operating profit is a proprietary profit indicator that measures the performance consistency of ourbusiness. Core operating profit is calculated as Revenue – Cost of sales – SG&A expenses.

－ 1 －(2) Financial Position
Total assets

Total equity

Equityattributable toowners of parent

Ratio ofequity attributableto owners of parent
to total assets

million yen

million yen

million yen%

Three months ended
March 31, 2021

602,413

145,640

145,889

24.2

Year ended
December 31, 2020

616,349

149,551

149,781

24.3

2. Dividends
Dividend per share
Record date or period

End Q1End Q2yen

End Q3yen

Year ended December
31, 2020—

Year ending December
31, 2021—

yen—

Year-end

Full year

yen

yen

—

42.00

42.00

—
—
Year ending December
31, 2020 (forecast)
Note: Changes to the latest dividend forecast announced: None

42.00

42.00

3. Forecast of Consolidated Earnings for the Year Ending December 31, 2021
(January 1 – December 31, 2021)(Percentage figures represent year-over-year changes)
RevenueYear ending
December 31,
2021

Core
operating profit

Operating profit

million yen%

million yen%

million yen

468,200

7.7

9,000

111.2

18,000

Profit%million yen_

12,000

Profit attributable toowners of parent
%
_

Basic
earnings
per share

million yen%%

12,000_154.05

Note: Changes to the latest consolidated results forecast announced: None
*Earnings forecasts for the six months ending June 30, 2021 are omitted because the company manages performancetargets on a yearly basis.

－

2

－

4. Other(1) Changes to scope of consolidation: None
(2) Changes in accounting policy, changes in accounting estimates, and retrospective restatement
1) Changes in accounting policies required by IFRS: None
2) Changes other than 1) above: None
3) Changes in accounting estimates: None
(3) Number of shares issued and outstanding (common stock)1) Number of shares issued at end of period (treasury stock included):
March 31, 2021: 78,794,298 shares
December 31, 2020: 78,794,298 shares
2) Number of shares held in treasury at end of period:
March 31, 2021: 897,542 shares
December 31, 2020: 896,951 shares

3) Average number of outstanding shares during the period:
Three months ended March 31, 2021: 77,897,031 shares
Three months ended March 31, 2020: 77,895,889 shares

Audit Status
The quarterly financial results are outside the scope of audit procedures based on the Financial Instruments
and Exchange Act.

Appropriate Use of Earnings Forecasts and Other Important Information
This document contains projections and other forward-looking statements based on information available to
the Company as of the date of this document. Actual results may differ from those expressed or implied byforward-looking statements due to various factors. For the assumptions underlying the forecasts herein andother information on the use of earnings forecasts, refer to “1. Analysis of Operating Results and Financial
Condition (3) Consolidated Earnings Forecast” on page 6.
Seasonal factors
The Group’s operating results are affected by substantial seasonal variation in demand in the Alcoholic
Beverages and Food & Soft Drinks businesses. Revenues consequently tend to be lower in the first quarter
than in the other three quarters.

－ 3 －1. Analysis of Operating Results and Financial Condition(1) Operating Results
In the first quarter of 2021 (January 1 to March 31, 2021), the Group was impacted by Japan's
re-issuance of a state of emergency due to the COVID-19 pandemic, which caused sales ofcommercial-use beer, sales of beverages in vending machines, and sales to restaurants such as
beer halls, to decline compared to the previous first quarter.
As a result, core operating profit declined year on year with the exception of the Food & Soft
Drinks segment. Operating profit and net profit attributable to owners of the parent were down year
on year.
1) Summary in key figures
Millions of yen, except percentages

RevenueCore operating profit

Operating profit

Profit attributable toowners of parent

Year ended March 31, 2021

89,894(6,852)(6,160)(5,199)Year ended March 31, 2020

99,824(6,197)(6,078)(4,649)

(9.9)

－

－

－

Change (%)*Core operating profit is the Sapporo Group’s unique profit benchmark for measuring the performance of its regularbusiness and is calculated by deducting cost of sales, and selling, general and administrative expenses, from revenue.

Results by segment are outlined below.
2) Results by reportable segment

Millions of yen, except percentages

Revenue

Alcoholic
Beverages
Food & Soft
DrinksReal Estate

Year
ended

Year
ended

Mar. 31,2020

Mar. 31,2021

63,37356,63530,338
6,073

Core operating profit
Year
ended

Year
ended

Mar. 31,2020

Mar. 31,2021(10.6)(4,607)(5,022)

27,579(9.1)(1,388)

5,635

(7.2)

1,198

Change(%)

Operating profit
Year
ended

Year
ended

Mar. 31,2020

Mar. 31,2021－(4,534)(4,453)－(1,089)－(1,395)(1,028)－719(40.0)

1,192

728(39.0)

Change(%)

Change(%)

Seasonal factors
The Group’s operating results are affected by substantial seasonal variation in demand in the
Alcoholic Beverages and Food & Soft Drinks businesses. Revenues consequently tend to be lower
in the first quarter than in the other three quarters.
Alcoholic Beverages
Japan
The commercial-use market in the country has been significantly impacted by the COVID-19
pandemic. Total demand in Japan for beer and beer-type beverages is estimated to have only
reached around 90% of the year-earlier level.
Amidst this situation, in the beer category, commercial-use beer sales volume declined, but
sales of canned Sapporo Draft Beer Black Label and Yebisu brand beers were strong, with sales
volumes at 116% and 119% of the previous year’s level, respectively. In the new genre category,
the revamping of Sapporo Gold Star, which marked its first anniversary, proved successful, with anincrease of 3% year on year in sales volume. As a result of the above, total sales of beer and beertype beverages stood at 89% of the year-earlier level.
－4－In the RTD*1 category, sales of Sapporo Koime no Lemon Sour, a new product launched in
March 2021, were strong, while sales of core collaborative RTD product Otoko Ume Sour werealso steady, driving category revenue significantly higher year on year.
Our Japanese liquor business also posted a year-on-year increase in revenue with sustainedsolid sales of Kokuimo brand, Japan’s best-selling*2 blended imo shochu, as well as Koime no
Lemon Sour no Moto.
Overseas
The overseas commercial-use market has been significantly impacted by the COVID-19 pandemic.
Total demand in North America for beer and beer-type beverages is estimated to have fallen year
on year in Canada, but is recovering in the United States.
Under this trend, overseas brand beers were almost same year on year in sales volume,buoyed by Sleeman Breweries, which shows a strong performance in sales of home-use products.
Sales of Sapporo brand beer were down year on year, since the commercial-use market slumped
primarily owing to operating restrictions placed on restaurants in the United States.
Restaurants
The entire restaurant industry, including pub restaurants and izakaya, has been suffering
substantial impacts from the COVID-19 pandemic since 2020.
Amidst these challenges, the Company’s Restaurants business experienced a decline in bothrevenue and profits year on year, despite efforts to bolster menus along with take-out and delivery
products, close unprofitable restaurants, and shift to a low-cost, low-operation business format,
among other initiatives.
As a result of the above factors, revenue in the Alcoholic Beverages segment in the first quarterof 2021 came to ¥56.6 billion (down ¥6.7 billion, or 11% year on year), while the segment posted acore operating loss of ¥5.0 billion (compared with a loss of ¥4.6 billion in the first quarter of 2020)
and an operating loss of ¥4.5 billion (compared with a loss of ¥4.5 billion a year earlier).
*1: RTD, or ready-to-drink beverages, are pre-mixed, low-alcohol cocktail-like beverages that canbe consumed as is immediately after opening.
*2: Based on lntage SRI market research on combined blended imo shochu sales in the
supermarket, convenience store, and direct sales channels from July 2019 through March 2021.
Food & Soft Drinks
Demand in the commercial-use market and vending machines has been affected significantly
by the COVID-19 pandemic. Total demand in Japan for food and soft drinks is estimated to have
only reached 94% of the previous year’s level.
Against this backdrop, in the domestic soft drink business, sales of lemon-based soft drinks
were strong on rising health consciousness, but this strength could not completely cover the
decline in sales volume of vending machines, resulting in a year-on-year drop in total sales volume
of soft drinks.
In the domestic food business, sales volume of soup dropped from the past year following areactionary decline from the demand for stay-at-home consumption seen in the previous year.
Lemon-based food products grew substantially in sales by 20% year on year, as Pokka Lemon
100 recorded increased sales in both small and large sizes amid widening uses. Plant-based milk
products also saw a year-on-year increase in its sales volume, with our soymilk yogurt products
contributing to this increase.
Pokka Create Co., Ltd., which operates the Café de Crié coffee shop chain, saw revenue fallyear on year due to the ongoing impacts the cafe industry has experienced under the COVID-19
pandemic.
As a result of the above factors, revenue in the Food & Soft Drinks segment in the first quarterof 2021 came to ¥27.6 billion (down ¥2.8 billion, or 9% year on year), while the segment posted acore operating loss of ¥1.1 billion (compared with a core operating loss of ¥1.4 billion in the firstquarter of 2020) and an operating loss of ¥1.0 billion (compared with a loss of ¥1.4 billion a year
earlier).
－ 5 －Real Estate
The office leasing market in the Greater Tokyo area is experiencing a downtrend in occupancy
rate and average rents. In this market climate, the Real Estate business maintains steady levels ofoccupancy rates and office rents at properties owned mainly in the Greater Tokyo Area, including
Yebisu Garden Place Tower, the business’ core source of earnings, as the number of new tenants
is beginning to increase following the exit of some tenants. Meanwhile, revenue from commercial
facilities declined due to the impacts of the COVID-19 pandemic.
As a result of the above factors, revenue in the Real Estate segment in the first quarter of 2021
totaled ¥5.6 billion (down ¥0.4 billion, or 7% year on year), while the segment posted a core
operating profit of ¥0.7 billion (down ¥0.5 billion, or 40% year on year) and an operating profit of¥0.7 billion (down ¥0.5 billion, or 39% year on year).
(2) Consolidated Financial Condition
Consolidated assets as of March 31, 2021, totaled ¥602.4 billion, ¥13.9 billion less than at theend of the previous fiscal year (December 31, 2020). The decline was mainly due to the decreasein trade and other receivables and in other financial assets (current), which more than offset anincrease in inventories and other financial assets (non-current).
Consolidated total liabilities stood at ¥456.8 billion, which was ¥10.0 billion less than on
December 31, 2020, owing to the decrease in other current liabilities, trade and other payables,and bonds and borrowings (non-current), which helped to offset the increase in bonds andborrowings (current).
Consolidated total equity came to ¥145.6 billion, down ¥3.9 billion from December 31, 2020.
This decline was due to the posting of a net loss attributable to owners of parent and the paymentof year-end dividends, which offset an increase in other components of equity.
(3) Consolidated Earnings Forecast
The Company has not made revisions to its full-year consolidated earnings forecast for the
fiscal year ending December 31, 2021 in the forecast announced on February 10, 2021

－

6

－

2. Consolidated Financial Statements(1) Consolidated Statement of Financial Position(Millions of yen)
December 31, 2020
AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other financial assets
Income taxes receivable
Other current assets
Subtotal
Assets held for sale
Total current assets
Non-current assets
Property, plant and equipment
Investment property
Goodwill
Intangible assets
Investments accounted for using
equity method
Other financial assets
Other non-current assets
Deferred tax assets
Total non-current assets
Total assets－ 7 －March 31, 2021

19,73484,47536,001
5,459
8,755
6,128
160,551278
160,829

19,10160,84039,7683,701
10,451
5,945
139,807－
139,807

126,650
218,574
17,9209,023

129,347
219,169
18,060
9,011

446

1,348

69,9696,108
6,831
455,520
616,349

72,9205,791
6,961
462,606
602,413(Millions of yen)
December 31, 2020
Liabilities and equity
Liabilities
Current liabilities
Trade and other payables
Bonds and borrowings
Lease liabilities
Income taxes payable
Other financial liabilities
Other current liabilities
Total current liabilities
Non-current liabilities
Bonds and borrowings
Lease liabilities
Other financial liabilities
Retirement benefit liability
Other non-current liabilities
Deferred tax liabilities
Total non-current liabilities
Total liabilities
EquityShare capital
Capital surplus
Treasury shares
Retained earnings
Other components of equity
Total equity attributable to ownersof parent
Non-controlling interests
Total equity
Total liabilities and equity－

8

March 31, 2021

31,927
83,177
5,836
727
38,12056,456216,243

30,47990,476
6,051
409
35,75844,038207,211

158,091
21,04645,344
3,965
2,832
19,277
250,555
466,798

157,101
21,13345,4933,494
2,900
19,440249,562456,773

53,88740,853(1,787)33,45923,37053,887
40,837(1,789)25,40827,546

149,781

145,889(231)
149,551
616,349(249)
145,640
602,413－

(2) Consolidated Statement of Profit or Loss
(Millions of yen)Three months ended
March 31, 2020
Revenue
Cost of sales
Gross profit
Selling, general and administrative
expenses
Other operating income
Other operating expenses
Operating loss

Three months ended
March 31, 2021

99,82471,44628,37889,89465,617
24,277

34,57531,128355
237(6,078)

1,299
607(6,160)

239
466

376
449

Finance income
Finance costs
Share of profit of investments
accounted for using equity method
Loss before tax

2

3(6,304)(6,230)

Income tax expense
Loss(1,599)(4,704)(982)(5,248)Loss attributable to
Owners of parent
Non-controlling interests
Loss(4,649)(55)(4,704)(5,199)(49)(5,248)

Basic loss per share
Diluted loss per share(59.69)(59.69)(66.75)(66.75)－ 9 －(3) Consolidated Statement of Comprehensive Income(Millions of yen)Three months ended
March 31, 2020
Loss
Other comprehensive income
Items that will not be reclassified to
profit or loss
Net change in fair value of equity
instruments designated asmeasured at fair value throughother comprehensive income
Remeasurements of defined
benefit plans
Total of items that will not bereclassified to profit or loss
Items that may be reclassified to
profit or loss
Exchange differences ontranslation of foreign operations
Effective portion of cash flow
hedgesTotal of items that may bereclassified to profit or loss
Total other comprehensive income,net of tax
Comprehensive income
Comprehensive income attributable to
Owners of parent
Non-controlling interests
Comprehensive income－

10

Three months ended
March 31, 2021

(4,704)(5,248)(9,838)1,813(2,038)218(11,876)

2,031(2,007)

2,585

(4)

17

(2,011)

2,602(13,887)

4,633(18,591)(615)(18,496)(95)(18,591)

(597)
(19)
(615)

－

(4) Consolidated Statement of Changes in Equity(Millions of yen)
Other components of equity

Balance as of January 1,
2020

Share
capitalCapitalsurplusTreasurysharesRetainedearnings

53,88740,958(1,792)

51,521

Loss

Exchange differenceson translation offoreign operations-

Purchase of treasury
shares
Disposal of treasury
shares--(4,649)(68)(1,967)(4)(1,967)

(4)

(1)
(0)

0

Dividends(3,277)

Transfer from othercomponents of equity toretained earnings(2,394)

Total transactions withownersBalance as of March 31,
2020

(863)

(4,649)Other comprehensive
incomeComprehensive income

-

(0)

(1)

(5,671)--53,88740,958(1,793)

41,201(2,829)(72)

Other components of equity

Balance as of January 1,
2020

Effective portion of
cash flow hedges

Total equity
attributableto ownersof parent

Noncontrollinginterests

Total
equity29,497174,071454

174,524-(4,649)(55)(4,704)

Financial assets measured
at fair value through othercomprehensive income

Remeasurementsof defined benefit
plans

Total othercomponentsof equity

30,428-Loss
Other comprehensive
income(9,838)(2,038)(13,846)(13,846)(40)(13,887)

Comprehensive income(9,838)(2,038)(13,846)(18,496)(95)(18,591)

-

(1)

-

(1)

-

0

-

0

-

(3,277)-(3,277)Purchase of treasury
shares
Disposal of treasury
sharesDividends
Transfer from othercomponents of equity toretained earnings
Total transactions withownersBalance as of March 31,
2020

356

2,038

2,394

-

-

-

356

2,038

2,394

(3,278)-(3,278)20,946-

18,045

152,297358

152,655－ 11 －

(Millions of yen)
Other components of equity

Balance as of January 1,
2021

Share
capitalCapitalsurplusTreasurysharesRetainedearnings

53,88740,853(1,787)33,459Loss

Exchange differenceson translation offoreign operations(1,806)

(40)

2,554

17

2,554

17

(5,199)Other comprehensive
incomeComprehensive income

-

-

-

Purchase of treasury
shares(5,199)(1)

Dividends(3,277)

Share-based
remunerationtransactions(17)

Transfer from othercomponents of equity toretained earnings
Total transactions withownersBalance as of March 31,
2021

426

-

(17)

(1)

(2,851)--53,887

40,837(1,789)25,408748(22)

Other components of equity

Balance as of January 1,
2021

Effective portion of
cash flow hedges

Total equity
attributableto ownersof parent

Noncontrollinginterests

Total equity

23,370149,781(231)

149,551-(5,199)(49)(5,248)Financial assets measured
at fair value through othercomprehensive income

Remeasurementsof defined benefit
plans

Total othercomponentsof equity

25,215-

Loss
Other comprehensive
income

1,813

218

4,603

4,603

30

4,633

Comprehensive income

1,813

218

4,603

(597)

(19)

(615)

Purchase of treasury
shares

-

(1)

-

(1)

Dividends-(3,277)-(3,277)

Share-based
remunerationtransactions

-

(17)

-

(17)

Transfer from othercomponents of equity toretained earnings
Total transactions withownersBalance as of March 31,
2021

(208)

(218)

(426)

-

-

-

(208)

(218)

(426)

(3,295)-(3,295)26,820-27,546

145,889(249)

145,640－12－

(5) Notes on the Going-concern Assumption
Not applicable(6) Segment Information
1. Overview of reportable segments
The Company’s reportable segments are components of the Sapporo Group about which separate
financial information is available. These segments are subject to periodic examinations to enable theCompany’s board of directors to decide how to allocate resources and assess performance.
Under the Company, which is a pure holding company, Group companies carry out businessactivities and formulate strategies for the products and services they offer and for the sales markets they
cover.
The Group’s businesses are segmented mainly based on the products, services and sales markets
of Group companies and their affiliate companies. The Company’s three reportable segments are
Alcoholic Beverages, Food & Soft Drinks, and Real Estate.
The Alcoholic Beverages segment produces and sells alcoholic beverages and operates restaurants
of various styles.
The Food & Soft Drinks segment produces and sells foods and soft drinks.
The Real Estate segment’s activities include leasing and development of real estate.
2. Revenue, profit (or loss)(millions of yen)Three months ended March 31, 2020 (January 1, 2020 – March 31, 2020)
Alcoholic
Beverages

Food &
Soft Drinks

Real Estate

Other *1

Total

Consolidated
total

Adjustment

Revenue
To outside customers

63,37330,3386,073

40

99,824－

99,824

Inter-segment revenue

2,234

34

660

0

2,929

(2,929)－65,60730,372

6,733

40

102,752(2,929)99,824(4,534)(1,395)1,192

7(4,729)(1,349)(6,078)

Total
Operating profit (loss)(millions of yen)Three months ended March 31, 2021 (January 1, 2021 – March 31, 2021)
Alcoholic
Beverages

Food &
Soft Drinks

Real Estate

Other *1

Total

Consolidated
total

Adjustment

Revenue
To outside customers

56,63527,5795,635

45

89,894－

Inter-segment revenue

2,854

213

604

0

3,671

(3,671)－

59,48827,792

6,239

46

93,565(3,671)89,894(4,453)(1,028)728

8(4,746)(1,414)(6,160)Total
Operating profit (loss)

89,894(1) "Other" comprises businesses, such as health food business, etc., that are not included in reportable segments.
Adjustment included General corporate and intercompany eliminations.
General corporation are general administrative expenses that do not belong to the reporting segment.
(Subsequent Events)
None－ 13 －