Financial Results
for the three months ended March 31, 2024 — Consolidated(Based on IFRS)

Company nameMay 14, 2024

Sapporo Holdings Limited

Security code
2501
Listed on
Tokyo Stock Exchange (Prime Market); Sapporo Securities Exchange
URL
https://www.sapporoholdings.jp/en/
Representative
Masaki Oga, President and Representative Director
Contact
Yosuke Nakamura, Director of the Corporate Planning Department+81-3-5423-7407
Telephone
Scheduled dates:
May 15, 2024
Filing of quarterly financial report
Commencement of dividend payments
Available
Supplementary information to the quarterly earnings results
Yes
Quarterly earnings results briefing held
(mainly targeted at institutional
investors and analysts)

1. Consolidated Financial Results for the three months Ended March 31, 2024
(January 1 – March 31, 2024)(Amounts in million yen rounded to the nearest million yen)

(1) Operating Results(Percentage figures represent year-over-year changes)
Revenuemillion yen

Core Operating profit%

million yen

Operating profit%

million yen%

Profitmillion yen%

Three months ended
March 31, 2024

112,761

3.7(3,795)－(1,936)－(1,970)－Three months ended
March 31, 2023

108,768

16.6(2,935)－(3,282)－(3,589)－Profit attributable toowners of parent
million yen

Three months ended
March 31, 2024

(1,977)%

Total comprehensive
incomemillion yen

－

8,597

%

－

Basic earnings
per share

Diluted earnings
per share

Yen

Yen

(25.38)Three months ended－－(3,596)(913)(46.16)
March 31, 2023
Note: Profit before tax
Three months ended March 31, 2024 (1,507) million yen
Three months ended March 31, 2023 (3,826) 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 -(25.38)(46.16)

(2) Financial Position

Total assets

Total equity

Equity attributable toowners of parent

million yen

million yen

million yen

Ratio ofequity attributable toowners of parent to total
assets%Three months ended
March 31, 2024

667,550

188,177

187,202

28.0

Three months ended
March 31, 2023

663,573

183,248

182,315

27.5

2. Dividends
Dividend per share
Record date or period

End Q1End Q2End Q3Year-end

Full year

yen

yen

yen

yen

yen

Year ended December 31, 2023—

Year ended December 31, 2024—

Year ending December 31, 2024 (forecast)

0.00

—

47.00

47.00

0.00

—

52.00

52.00

Note: Changes to the latest dividend forecast announced: None

3. Forecast of Consolidated Earnings for the Year Ending December 31, 2024
(January 1 – December 31, 2024)(Percentage figures represent year-over-year changes)Core
operating profit

RevenueYear ending
December31, 2024

Operating profit

Profit attributable toowners of parent

ProfitBasicearnings
per share

million yen%

million yen%

million yen%

million yen%

million yen%

yen

523,500

0.9

19,00021.5

17,60048.9

10,03014.5

10,00014.6

128.37

Note: Changes to the latest consolidated results forecast announced: None
*Earnings forecasts for the six months ending June 30, 2024 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, 2024: 78,794,298 shares
December 31, 2023: 78,794,298 shares
2) Number of shares held in treasury at end of period:
March 31, 2024: 895,935 shares
December 31, 2023: 895,451 shares
3) Average number of outstanding shares during the period:
March 31, 2024:
77,898,566 shares
March 31, 2023:
77,897,356 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 (4) Consolidated Earnings Forecast” on page 8.
Seasonal factors
The Group’s operating results are affected by substantial seasonal variations 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 this quarterly consolidated accounting period (January 1 - March 31, 2024), the uncertain outlook
continues, with consumers becoming more cautious with their spending due to the impact of risinggeopolitical risks, the depreciation of the yen, inflation from surging prices of raw materials andenergy, and Japan’s “2024 logistics problem” (an issue arising from strengthened regulations ondriver overtime work).
Under these circumstances, the Sapporo Group is decisively implementing structural reforms andaccelerating growth to realize our growth strategy in the second year of our “Medium-Term
Management Plan (2023-2026).”
Consolidated revenue increased compared to the previous first quarter. This was because ofstrong beer sales in the Japan alcoholic beverages sector due to the effect of the alcohol tax
revisions and strong sales of Sapporo Premium Beer in the US market.
While there was an increase in revenue due to the impact of the Alcoholic Beverages business,consolidated core operating profit decreased year-on-year due to an increase in IT investment,
among other factors.
Summary in key figures
Millions of yen, except percentages

Core operating
profitOperating profit

Profit attributableto owners ofparent112,761(3,795)(1,936)(1,977)

108,768(2,935)(3,282)(3,596)

3.7

—

—

—

RevenueThree months
ended
March 31, 2024
Three months
ended
March 31, 2023
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.
Alcoholic Beverages
Revenue increased year-on-year due to strong beer sales due to the alcohol tax revisions, strong
sales of Sapporo Premium Beer in the US and Asia, and the effect of a weak yen.
Core operating profit and operating profit both increased year-on-year due to the increase inrevenue in the Japan Alcoholic Beverages business, despite the impact of surging raw materials andpersonnel costs.
■Revenue: ¥80.6 billion (up ¥4.1 billion, or 5.3% year on year)■Core operating profit: ¥(0.2) billion (compared with a loss of ¥0.5 billion a year earlier)■Operating profit: ¥(0.3) billion (compared with a loss of ¥0.8 billion a year earlier)
Details of Alcoholic Beverages (Japan and Overseas) and Restaurants in the Alcoholic Beverages
business were as follows.
Japan
While the on-trade products market is on par with the previous year as the impact of COVID-19
lessens, the off-trade market softened due to the shrinkage of the happoshu market following alcohol
tax revisions. Total domestic demand for beer-type beverages (beer, happoshu (including New
Genre) was 98% of the previous year’s level and total domestic demand for beer was 109%.

- 4 -In this fiscal year, we are focusing more on strengthening beer and RTD* taking into account theliquor tax revision made in October 2023.
In this context, the Group’s total domestic sales volume of beer-type beverages was 102% of
the previous year’s level. On-trade products performed at 104% year-on-year thanks to strong salesof bottled lager beer. While off-trade products were impacted by the shrinkage of the happoshu
market following alcohol tax revisions, the sector continued to perform strongly, with sales volumeof Black Label cans at 128% year-on-year and RTD cans at 101% year-on-year.
*: RTD, or ready-to-drink beverages, are pre-mixed, low-alcohol cocktail-like beverages that can be consumed as isimmediately after opening.

OverseasWith persistent inflation and high interest rates in Canada and the United States, we expect totalbeer demand will be lower year-on-year. Sales volume of overseas beer brands fell year-on-year
due to declining total demand for beer in Canada and the weakening of the craft beer market in the
United States. In contrast, the sales volume of Sapporo-brand beer achieved remarkable growth inNorth America, reaching 107% year-on-year, primarily due to the expansion of the sales network in
the US market.
Restaurants
There is a continuing recovery trend in restaurant demand following the COVID-19 pandemic.
Amid this, due to price revisions, a recovery in the number of customers, and attracting inboundtourists and senior customers, the Sapporo Group’s restaurant business recorded existing store
sales for the first quarter at 115% year-on-year.
Food & Soft Drinks
Revenue fell year-on-year due to the impact of product lineup changes in the Japan market and a
decline in export sales in Overseas Soft Drinks among other factors.
Despite the positive effect of price revisions and structural reforms, the Japan market is performingon par with last year as a result of surging raw materials and logistics costs. However, core operating
profit decreased for the Food & Soft Drinks business as a whole year-on-year due to the downside
impact of the decline in export sales for the overseas beverage business.
Operating profit increased year-on-year due to the impact of the reversal of impairment losses on
fixed assets in the Japan Food & Soft Drinks business and the sale of land.
■Revenue: ¥26.6 billion (down ¥0.2 billion, or 0.9% year on year)■Core operating profit: ¥(0.6) billion (compared with a loss of ¥0.3 billion a year earlier)■Operating profit: ¥1.5 billion (compared with a loss of ¥0.3 billion a year earlier)
Food & Soft Drinks (Japan)
While there were shifts in total demand for soft drinks in Japan due to weather factors, this sector
performed at roughly 100% year-on-year due to the recovery of foot traffic, among other factors.
Meanwhile, the sales volume of the Group’s domestic beverages was 91% of the previous year’slevel, as overall beverage sales decreased due to product lineup changes and other factors, despite
Kireto Lemon, the main brand in the lemon business, performing at 104% year-on-year, and the
Tochi and Craft series tea beverages performing well at 106% year-on-year, centered on corn tea,
thanks to the effect of price revisions.
Overseas Beverage
In Singapore, sales growth primarily in the off-trade channel contributed to a year-on-year
performance of 104% (calculated in the local currency) in terms of sales value.
Additionally, we continue to strengthen the sales structure in Malaysia, a focus area, and sales
volume was 136% year-on-year (calculated in the local currency), underpinned partly by strong
domestic demand there.
Excluding the above, we are strengthening measures for each export country in the export- 5 -business. In the export business to the Middle East, despite the suspension of sales last year tocustomers whose financial condition had deteriorated, we are proceeding with selecting newcustomers with a view to a recovery in sales value.
Real Estate
Revenue increased year-on-year due to an improvement in the office occupancy rate of Yebisu
Garden Place.
Despite the effect of increased revenue, core operating profit and operating profit decreased due tothe recording of costs associated with the opening of Hotel Sosei Sapporo MGallery, which opened in
January 2024, and increased administrative expenses due to surging personnel costs.
■Revenue: ¥5.5 billion (up ¥0.2 billion, or 3.2% year on year)■Core operating profit: ¥(0.2) billion (compared with a loss of ¥0 billion a year earlier)■Operating profit: ¥(0.3) billion (compared with a loss of ¥0.1 billion a year earlier)- 6 -(2) Consolidated Financial Condition
As of the end of this Q1 consolidated accounting period, the following were the operative factors in
the condition of assets, liabilities and equity.
(Millions of yen)
As of December 31,
As of March 31, 2024
Change2023
Current assets

176,353

156,444(19,909)

Non-current assets

487,220

511,106

23,886

Total assets

663,573

667,550

3,977

Current Liabilities

191,204

187,647(3,557)

Non-current liabilities

289,121291,726

2,605

Total liabilities

480,325

479,373(952)

Total equity

183,248

188,177

4,929

663,573

667,550

3,977

Total liabilities andequityIn end-Q1, assets had increased by ¥4.0 billion to ¥667.5 billion relative to the previous fiscal year
end due to an increase in investment property and property, plant and equipment, and other factors
which offset the decline in trade and other receivables resulting from seasonal factors.
Consolidated total liabilities came to ¥479.4 billion, which was a decrease of ¥1.0 billion as comparedto the end of the previous fiscal year, mainly due to the decrease in other current liabilities resulting
from seasonal factors and a decrease in income tax payable, despite an increase in bonds and shortterm borrowings.
On the same comparative basis, equity increased by ¥4.9 billion to ¥188.2 billion. Although there wasa decrease in retained earnings stemming from the payment of end-period dividends, there wereincreases in other capital components due to increased exchange differences on translation of foreign
operations and financial assets measured at fair value through other comprehensive income.

- 7 -(3) Consolidated Cash FlowsAt the end-Q1, cash and cash equivalents (collectively “cash”) declined by ¥24 million (0.1%) to ¥17.2
billion, relative to the previous consolidated fiscal year-end.
The components of Q1’s cash flow categories were as follows.
(Millions of yen)
As of March 31, As of March 31,
Category
Change2023
2024
Cash flows from operating activities

13,4991,658(11,840)

Cash flows from investing activities(2,812)(10,778)(7,966)

Free cash flow

10,687(9,119)(19,806)

Cash flows from financial activities(13,335)

8,486

21,820

1,377

724

(652)

Net increase (decrease) in cash and cash equivalents(1,271)91

1,362

Cash and cash equivalents at beginning of period

15,38017,204

1,824

—

(114)

(114)

14,10917,1803,071

Effect of exchange rate change on cash and cash
equivalents

Cash and cash equivalents included in assets ofdisposal groups classified as holdings for sale
Cash and cash equivalents at end of period(Cash flows from operating activities)
Cash provided by operating activities was ¥1.7 billion (compared to ¥13.5 billion provided in theprevious fiscal year). This was mainly due to increased factors, which was a decrease in trade andother receivables of ¥20.6 billion, which offset decreased factors, which were a decrease in accrued
alcohol tax of ¥6.8 billion, income tax paid of ¥5.0 billion, and a decrease in trade and other payablesof ¥3.7billion.
(Cash flows from investing activities)
Cash used in investing activities was ¥10.8 billion (compared to ¥2.8 billion used in the previous fiscal
year). Although there was income of ¥4.1 billion from the sale of investment securities and ¥1.9 billion
from the sale of property, plant and equipment, expenses related to the purchase of investment propertyof ¥10.8 billion, the purchase of investment property of ¥5.0 billion contributed to this result.
(Cash flows from financing activities)
Cash provided by financing activities was ¥8.5 billion (compared to ¥13.3 billion used in the previous
fiscal year). Although there was an outflow of ¥4.5 billion in repayment of long-term borrowings and¥3.5 billion in dividends paid, there were inflows from a net increase in commercial papers of ¥14.0
billion and a net increase in short-term borrowings of ¥3.5 billion.
(4) Consolidated Earnings Forecast
The consolidated earnings forecast for the full fiscal year to December 31, 2024, is unchanged
from the forecast announced by the Company on February 14, 2024.

- 8 -2. Consolidated Financial Statements(1) Consolidated Statement of Financial Position(Millions of yen)
As of December 31, 2023

As of March 31, 2024

AssetsCurrent assets
Cash and cash equivalents

17,204

17,180Trade and other receivables
Inventories

98,02347,57577,47849,186

Other financial assets
Other current assets

4,393
7,589

4,559
7,482

174,785

155,886

Subtotal
Assets held for sale

1,568

558

Total current assets

176,353

156,444

Non-current assets
Property, plant and equipment

145,687

152,922

Investment property
Goodwill

211,164
35,124

219,721
36,221Intangible assets
Investments accounted for using equity method

6,993
1,359

7,269
1,359

Other financial assets
Retirement benefit Asset

79,4001,266

83,910
3,715

Other non-current assets
Deferred tax assets

3,366
2,863

3,284
2,705

Total non-current assets

487,220

511,106

Total assets

663,573

667,550- 9 -(Millions of yen)
As of December 31, 2023

As of March 31, 2024

Current liabilities
Trade and other payables

38,71735,515

Bonds and borrowings
Lease liabilities

39,672
3,645

56,173
3,324

Income taxes payable
Other financial liabilities

5,919
37,158

1,008
34,781

Provisions
Other current liabilities

8,504
57,58910,15846,311(Sub-total)

191,204

187,269－

378

Liabilities and equity
Liabilities

Liabilities directly associated with assets held
for sale
Total current liabilities

191,204

187,647

Non-current liabilities
Bonds and borrowings

182,930

179,529

Lease liabilities
Other financial liabilities

19,37758,252

19,56861,551Retirement benefit liability
Provisions

3,412
2,422

3,363
2,329

Other non-current liabilities
Deferred tax liabilities

897
21,831878
24,508

Total non-current liabilities

289,121291,726

Total liabilities
Equity480,325

479,373

Share capital
Capital surplus

53,88740,75453,88740,756

Treasury shares
Retained earnings(1,783)50,828(1,786)49,300

Other components of equity

38,63045,045

Total equity attributable to owners of parent

182,315

187,202933

975

Total equity

183,248

188,177

Total liabilities and equity

663,573

667,550

Non-controlling interests- 10 -

(2) Consolidated Statement of Profit or Loss
(Millions of yen)Three months ended

Three months ended

March 31, 2023

March 31, 2024

Revenue
Cost of sales

108,768
78,803112,761
81,193Gross profit

29,96531,568Selling, general and administrative expenses

32,90035,363

168
516

2,290
432

(3,282)(1,936)

Finance income
Finance costs

214
768

1,033
619

Share of profit of investments accounted forusing equity method

11

16(3,826)(1,507)

Other operating income
Other operating expenses
Operating profit (loss)

Profit (loss) before tax
Income tax expense

(236)

463

Profit (loss)(3,589)(1,970)

Profit attributable to
Owners of parent(3,596)(1,977)

6

7

Profit (loss)(3,589)(1,970)

Basic earnings (loss) per share(46.16)(25.38)

Diluted earnings (loss) per share(46.16)(25.38)Non-controlling interests- 11 -

(3) Consolidated Statement of Comprehensive Income(Millions of yen)

Profit (loss)

Three months ended

Three months ended

March 31, 2023

March 31, 2024

(3,589)(1,970)

1,287

5,996

808

1,727

Total of items that will not be reclassified to profit or loss

2,095

7,723

Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations

571

2,847

Other comprehensive income
Items that will not be reclassified to profit or loss
Net change in fair value of equity instruments designatedas measured at fair value through other comprehensive
incomeRemeasurements of defined benefit plans

Effective portion of cash flow hedges

11

(3)

Total of items that may be reclassified to profit or loss

582

2,844

Total other comprehensive income, net of tax

2,677

10,567

Comprehensive income

(913)

8,597

Comprehensive income attributable to
Owners of parent

(924)

8,555

Non-controlling interests

1242

Comprehensive income

(913)

8,597

- 12 -

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

Balance as of January 1, 2023

SharecapitalCapitalsurplusTreasurysharesRetainedearnings

53,88740,645(1,785)43,392Loss

Exchange differenceson translation offoreign operations

Effective portion of
cash flow hedges

4,714

10

565

11

565

11

(3,596)

Other comprehensive
incomeComprehensive income--

Purchase of treasury shares-(3,596)(1)

Dividends(3,277)

Transfer toretained earnings

973

Total transactions with owners

-

-

(1)

(2,304)--

Balance as of March 31, 2023

53,88740,645(1,786)37,493

5,280

21

Other components of equity

Balance as of January 1, 2023

Noncontrollinginterests

Total equity

Financial assets measured
at fair value through othercomprehensive income

Remeasurementsof defined benefit
plans

Total othercomponentsof equity

25,446-30,171

166,310891

167,201-(3,596)

6(3,589)Loss
Other comprehensive income

Total equity
attributableto ownersof parent

1,287

808

2,671

2,671

5

2,677

1,287

808

2,671

(924)

12

(913)

Purchase of treasury shares

-

(1)

-

(1)

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

Comprehensive income

Transfer toretained earnings

(166)

(808)

(973)

-

-

-

Total transactions with owners

(166)

(808)

(973)

(3,278)-(3,278)

Balance as of March 31, 2023

26,568-31,869162,108903

163,011- 13 -

(Millions of yen)
Other components of equity

Balance as of January 1, 2024

SharecapitalCapitalsurplusTreasurysharesRetainedearnings

53,88740,754(1,783)50,828

Profit (loss)

Exchange differenceson translation offoreign operations

8,886

3

2,812

(3)

2,812

(3)

(1,977)

Other comprehensive
incomeComprehensive income--

Purchase of treasury shares-(1,977)(3)

Dividends(3,667)

Share-based paymenttransactions
Transfer toretained earnings
Total transactions withowners2
4,117Balance as of March 31, 2024

-

2

(3)

450

-

-

53,88740,756(1,786)49,30011,699-Other components of equity

Balance as of January 1, 2024

Effective portion of
cash flow hedges

Total equity
attributableto ownersof parent

Noncontrollinginterests

Total equity

38,630182,315933

183,248-(1,977)

7(1,970)Financial assets measured
at fair value through othercomprehensive income

Remeasurementsof defined benefit
plans

Total othercomponentsof equity

29,740-

Profit (loss)
Other comprehensive
income

5,996

1,727

10,533

10,53334

10,567

Comprehensive income

5,996

1,727

10,533

8,555

42

8,597

Purchase of treasury shares

-

(3)

-

(3)

Dividends-(3,667)-(3,667)

Share-based paymenttransactions

-

2

-

2

Transfer toretained earnings(2,390)(1,727)(4,117)---

Total transactions with owners(2,390)(1,727)(4,117)(3,668)-(3,668)

Balance as of March 31, 2024

33,346-45,045

187,202975

188,177- 14 -

(5) Consolidated Statement of Cash Flows(Millions of yen)Three months ended

Three months ended

March 31, 2023

March 31, 2024

Cash flows from operating activities
Profit (loss) before tax(3,826)(1,507)

Depreciation and amortization
Impairment losses and reversal of impairment losses

5,085
194

5,218
(1,721)

Interest and dividend income
Interest expenses

(127)
689

(85)
607

Share of loss (profit) of investments accounted for using
equity method

(11)

(16)

Loss (gain) on sale and retirement of property, plant andequipment, and intangible assets

173

(132)

Decrease (increase) in trade and other receivables
Decrease (increase) in inventories

23,097(630)

20,595(905)

Increase (decrease) in trade and other payables
Increase (decrease) in accrued alcohol tax(3,666)(10,882)(3,705)(6,833)

Increase (decrease) in Retirement benefit Asset and liability
Other

(342)
4,865

(309)
(3,975)

SubtotalInterest and dividends received

14,620
158

7,234
152

(764)
(515)

(725)
(5,002)

Net cash provided by (used in) operating activities

13,4991,658

Cash flows from investing activities
Purchase of property, plant and equipment(2,121)(5,032)

Proceeds from sale of property, plant and equipment
Purchase of investment property

19(2,676)

1,942(10,770)

Purchase of intangible assets
Purchase of investment securities(600)(2,262)

(797)
(773)

Proceeds from sale of investment securities
Proceeds from redemption of investment securities

475
4,000

4,146
623

(19)
6

(25)
12

Interest paid
Income taxes paid

Payments for loans receivableCollection of loans receivable
Other
Net cash provided by (used in) investing activities- 15 -

367(105)(2,812)(10,778)(Millions of yen)Three months ended
March 31, 2024

Three months ended
March 31, 2023
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Net increase (decrease) in commercial papers

1,059(20,000)

3,500
14,000

Proceeds from long-term borrowings
Repayments of long-term borrowings

10,000(1)

69(4,501)Dividends paid
Repayments of lease liabilities(3,143)(1,225)(3,540)(1,039)

(1)
(23)

(3)
(0)

(13,335)

8,486

Effect of exchange rate changes on cash and cash equivalents

1,377

724

Net increase (decrease) in cash and cash equivalents(1,271)

91

Cash and cash equivalents at beginning of period

15,38017,204－(114)

14,10917,180Purchase of treasury shares
Other
Net cash provided by (used in) financing activities

Cash and cash equivalents included in assets of disposalgroups classified as held for sale
Cash and cash equivalents at end of period- 16 -

(6) Notes on the Going-concern Assumption)
Not applicable- 17 -