Financial Results
for the six months ended June 30, 2021 — Consolidated(Based on IFRS)
August 6, 2021

Company name

Sapporo Holdings Limited

Security code
Listed on
URL
Representative
Contact
Telephone
Scheduled dates:

2501
Tokyo Stock Exchange (First Section); Sapporo Securities Exchange
https://www.sapporoholdings.jp/en/
Masaki Oga, President and Representative Director
Tatsuya Komatsu, Director of the Corporate Planning Department+81-3-5423-7407

Filing of quarterly financial report
Commencement of dividend payments
Supplementary information to the quarterly earnings results
Quarterly earnings results briefing held

August 13, 2021
AvailableYes(mainly targeted at institutional
investors and analysts)

1. Consolidated Financial Results for the six months ended June 30, 2021
(January 1 – June 30, 2021)(Amounts in million yen rounded to the nearest million yen)

(1) Operating Results(Percentage figures represent year-over-year changes)
Core operating
Operating profit
ProfitprofitRevenuemillion yen%

million yen%

million yen%

million yen%

Six months ended
June 30, 2021

199,706(0.1)(3,461)_

19,102_

12,279_Six months ended
June 30, 2020

199,983(12.4)(5,082)_(9,398)_(6,564)_

Profit attributable toowners of parent
million yen

Six months ended
June 30, 2021

12,341%

Total comprehensive
incomemillion yen_(6,429)_Six months ended
June 30, 2020
Note: Profit before tax
Six months ended June 30, 2021:19,052 million yen
Six months ended June 30, 2020: (9,929) million yen

Basic earnings
per share%

Diluted earnings
per share

Yen

yen

15,600_158.42

153.49(14,627)_(82.53)(82.53)

Note: Core Operating Profit is a proprietary profit indicator that measures the performance consistency of our business.
Core operating profit is calculated as Revenue – Cost of sales – SG&A expenses.

－ 1 －(2) Financial Position
Total assets

Total equity

Equity attributableto owners ofparentEquity ratio
attributable toowners of parent

million yen

million yen

million yen%

Six months ended
June 30, 2021

580,907

161,853

161,127

27.7

December 31, 2020

616,349

149,551

149,781

24.3

2. Dividends
Dividend per share
Record date or period

End Q1Yen

End Q2

Year ended December
31, 2020

—

yen
0.00

Year ending December
31, 2021—

0.00

End Q3Year-end

yen

Full year

yen
42.00

—

yen
42.00

—
42.00
42.00
Year ending December
31, 2021 (forecast)
Note: Changes were made to dividends forecasts in the six months ended June 30, 2021: None

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

Core operating
profit%million yen%

Operatingprofitmillion yen

Profitmillion yen

%

Yen

_

154.052－

million yen%

Basic earnings
per share

447,200
2.9
6,700
57.2
18,000_12,000_12,000Year ending
December31, 2021
Note: Changes were made to earnings forecasts in the Six months ended June 30, 2021: Yes－%

Profit attribute toowners of parent

4. Other(1) Changes to scope of consolidation: None
*Changes affecting the status of significant subsidiaries (scope of consolidation)
Newly consolidated: Newly excluded: (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):June 30, 2021: 78,794,298 shares
December 31, 2020: 78,794,298 shares
2) Number of shares held in treasury at end of period:
June 30, 2021: 895,574 shares
December 31, 2020: 896,951 shares
3) Average number of outstanding share during the period:
Six months ended June 30, 2021: 77,897,957 shares
Six months ended June 30, 2020: 77,897,171 shares*Quarterly review status
The quarterly financial results are not subject to quarterly reviews pursuant to 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 7.
Seasonal Factors
The Group’s operating results are affected by substantial seasonal variation in demand in the
Alcoholic Beverages and Food & Soft Drinks businesses. As a result, revenue in the first quarter,
which falls within the first half of the fiscal year, tends to be lower than revenue in the other quarters.

－ 3 －1. Analysis of Operating Results and Financial Condition(1) Operating Results
In the first half of 2021 (January 1 to June 30, 2021), the Group was impacted by Japan's repeatedissuances of state of emergency due to the COVID-19 pandemic and restrictions on the service ofalcoholic beverages due to semi-state of emergency measures, which caused sales of commercialuse beer and sales to restaurants such as beer halls to decline compared to the same period of theprevious year.
However, the core operating loss decreased year on year due to a curtailment in expenses fromcost structure reforms. Additionally, core operating profit and net profit attributable to owners of theparent were up year on year due to the sale of investment properties.
1) Summary in key figures
Revenue

Millions of yen, except percentages
Profit attributable toCore operating profit Operating profit
owners of parent

Six months ended June 30, 2021

199,706(3,461)

19,102

12,341

Six months ended June 30, 2020

199,983(5,082)(9,398)(6,429)

(0.1)

―

―

―

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 Drinks
Real EstateSixmonthsended
Jun. 30,
2020

Sixmonthsended
Jun. 30,2021

130,375

Core operating profit

Change(%)

Sixmonthsended
Jun. 30,
2020

Sixmonthsended
Jun. 30,2021

130,5480.1(3,794)58,05957,957(0.2)

11,46911,116(3.1)

Operating profit

Change(%)

Sixmonthsended
Jun. 30,
2020

Sixmonthsended
Jun. 30,
2021

Change(%)(2,940)―(7,771)(2,777)―(2,621)(1,122)―(2,896)

(964)

―

4,618

3,791

(17.9)

4,262

26,027

510.7

Seasonal Factors
The Group’s operating results are affected by substantial seasonal variation in demand in the
Alcoholic Beverages and Food & Soft Drinks businesses. As a result, revenue in the first quarter,
which falls within the first half of the fiscal year, tends to be lower than revenue in the other 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 94% 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 113% and 105% of the previous year’s level, respectively. In the new genre category,－4－

Sapporo Gold Star, which marked its first anniversary, continued its success, with an increase of
10% year on year in sales volume. As a result of the above, total sales of beer and beer-type
beverages stood at 95% of the year-earlier level.
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 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, the sales volume of overseas brand beers was on a par year on year, buoyedby Sleeman Breweries, which shows a strong performance in sales of home-use products.
Sales of Sapporo brand beer were up year on year, since the commercial-use market
recovered thanks to removed 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. In the Company’s restaurant
business, many restaurants were closed or had shortened operating hours during the period of
restricted sales of alcoholic beverages.
Amidst these challenges, the business experienced a decline in both revenue 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 otherinitiatives.
As a result of the above factors, revenue in the Alcoholic Beverages segment in the first half of2021 came to ¥130.5 billion (up ¥0.2 billion or 0% year on year), while the segment posted a core
operating loss of ¥2.9 billion (compared with a loss of ¥3.8 billion in the first half of 2020) and an
operating loss of ¥2.8 billion (compared with a loss of ¥7.8 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 October 2019 through June 2021.
Food & Soft Drinks
Total demand in Japan for soft drinks is estimated to have reached 101% of the previous year
due to the reduced impact of COVID-19 this year and the launch of new products.
Against this backdrop, in the domestic soft drink business, sales of lemon-based soft drinks
such as Kireto Lemon were strong on rising health consciousness, and the total sales volume ofsoft drinks remained on a par year on year.
In the domestic food business, while the sales volume of soup dropped from the past year
following a reactionary decline from the demand for stay-at-home consumption seen in theprevious year, sales of cold canned soups, which we are focusing on, grew by 24% year on year.
Lemon-based food products grew substantially in sales by 11% year on year, as Pokka Lemon,
which had record shipping volume last year, marked 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 thanks to rising healthconsciousness.
Pokka Create Co., Ltd., which operates the Café de Crié coffee shop chain, saw revenue
increase year on year despite 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 half of－ 5 －2021 came to ¥58.0 billion (down ¥0.1 billion, or 0% year on year), while the segment posted acore operating loss of ¥1.1 billion (compared with a core operating loss of ¥2.6 billion in the firsthalf of 2020) and an operating loss of ¥1.0 billion (compared with a loss of ¥2.9 billion a year
earlier).
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 saw a temporary drop in occupancy rates dueto the departure of some tenants at properties owned mainly in the Greater Tokyo Area, including
the Yebisu Garden Place Tower, the business’ core source of earnings, but we are beginning tosee new tenants move in. While commercial facilities experienced a decline in revenue due to theimpact of COVID-19, preparations are progressing smoothly for the reopening of the Yebisu
Garden Place commercial building. In addition, we sold properties including Ebisu First Square,and started the construction of the new Sreed Ebisu +t.
As a result of the above, revenue in the Real Estate segment in the first half of 2021 totaled¥11.1 billion (down ¥0.4 billion, or 3% year on year), while the segment posted a core operating
profit of ¥3.8 billion (down ¥0.8 billion, or 18% year on year) and an operating profit of ¥26.0 billion(up ¥21.8 billion, or 511% year on year).
(2) Consolidated Financial Condition
Consolidated assets as of June 30, 2021, totaled ¥580.9 billion, ¥35.4 billion less than at theend of the previous fiscal year (December 31, 2020), mainly due to the decrease in trade and otherreceivables, income taxes receivable, and investment property, despite the increase in inventories,
and property, plant and equipment.
Consolidated total liabilities came to ¥419.1 billion, which was a decrease of ¥47.7 billion ascompared to the end of the previous fiscal year, because of the decrease in bonds and borrowings(current), other current liabilities, and bonds and borrowings (non-current), notwithstanding an
increase in income taxes payable.
Consolidated total equity stood at ¥161.9 billion, up ¥12.3 billion compared to the end of theprevious fiscal year, due to the posting of a net profit attributable to owners of parent and anincrease in other components of equity, notwithstanding the payment of year-end dividends.

－

6

－

(3) Consolidated Cash Flows
Cash and cash equivalents (collectively “cash”) totaled ¥12.6 billion as of June 30, 2021,¥7.1 billion or 36% less than at the end of the previous fiscal year (December 31, 2020).
Consolidated cash flows for the six months ended June 30, 2021, and the main factors affecting
those flows were as follows.
Cash flows from operating activities
Operating activities provided net cash amounting to ¥12.8 billion, an increase of ¥8.5 billion or
197% from the same period last fiscal year. The main positive contributors to inflows were a¥19.1 billion in profit before tax, a ¥15.6 billion decrease in trade and other receivables, anddepreciation and amortization of ¥11.4 billion, which offset the ¥23.0 billion loss on sales andretirement of property, plant and equipment, and intangible assets, and an ¥11.1 billion decrease inaccrued alcohol tax.
Cash flows from investing activities
Investing activities used net cash of ¥22.6 billion, compared to ¥11.8 billion used in the same
period last fiscal year. The main outflows were purchases of property, plant and equipment of¥5.3 billion, and purchases of investment property of ¥4.1 billion, while there was an inflow of¥33.9 billion in proceeds from the sale of investment properties.
Cash flows from financing activities
Financial activities provided net cash totaling ¥43.8 billion, compared to ¥15.5 billion net cash
provided in the same period last fiscal year. The main outflows were a redemption of bonds of¥30.0 billion, decrease in commercial papers of ¥6.0 billion, repayments of long-term borrowings of¥4.5 billion, dividends paid of ¥3.3 billion, and ¥3.1 billion for the repayments of lease liabilities,
which outweighed inflow of ¥4.0 billion in proceeds from long-term borrowings.
(4) Consolidated Earnings Forecast
The consolidated earnings forecast for the full fiscal year to December 31, 2021 has been revised
as follows, taking into consideration the impact of COVID-19 on the Group’s major businessrevenues and the performance progress of each business.
These forecasts are based on the assumption that the impact on the economy and consumption
will continue until the end of the current fiscal year, although the market environment will movetowards a gradual recovery as COVID-19 vaccinations roll out. The forecasts presented below are
based on information available when the materials were released and are inherently subject to risks
and uncertainties. The Company’s actual business results may differ from the forecasts for various
factors.
Revision of consolidated full-year earnings forecast for the fiscal year ending December 31, 2021
(January 1 to December 31, 2021)(millions of yen, except percentages and per-share data)Core
operatingprofitOperatingprofit468,200
447,200(21,000)
(4.5)

9,000
6,700
(2,300)(25.6)

18,00018,000――12,00012,000――

Profitattributableto owners ofparent12,00012,000――434,723

4,261(15,938)(16,605)(16,071)

Revenue

Previous forecast (A)Current forecast (B)Change (B-A)
Percent change
For reference:
Results for the fiscal
year ended December
31, 2020－ 7 －ProfitBasicearnings per
share
154.05154.05――(206.31)

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
methodOther financial assets
Other non-current assets
Deferred tax assets
Total non-current assets
Total assets

－

8

－

June 30, 2021

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

12,63669,74941,249
3,253
1,428
5,499
133,814－
133,814

126,650
218,574
17,9209,023

129,984
207,513
19,528
9,356

446

1,350

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

67,6765,465
6,220
447,093580,907

(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 owners of parent
Non-controlling interests
Total equity
Total liabilities and equity－ 9 －June 30, 2021

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

32,93563,0175,889
7,675
36,50043,999190,015

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

141,116
21,26844,681
1,534
2,554
17,885229,039
419,054

53,88740,853(1,787)33,45923,370149,781(231)
149,551
616,349

53,88740,647(1,782)43,607
24,769161,127726
161,853
580,907(2) Consolidated Statement of Profit or Loss and Comprehensive Income
Consolidated Statement of Profit or Loss
(Millions of yen)Six months ended
June 30, 2020

Six months ended
June 30, 2021

Revenue
Cost of sales
Gross profit

199,983
140,340
59,643

199,706
140,589
59,118Selling, general and administrative expenses
Other operating income
Other operating expenses
Operating profit (loss)

64,725647
4,963(9,398)62,57824,468
1,905
19,102Finance income
Finance costs
Share of profit of investments accounted forusing equity method
Profit (loss) before tax

630
1,169

788
850

8

11

(9,929)19,052

Income tax expense
Profit (loss)(3,365)(6,564)

6,773
12,279Profit (loss) attributable to
Owners of parent
Non-controlling interests
Profit (loss)(6,429)(134)(6,564)

12,341(62)
12,279Basic earnings (loss) per share
Diluted earnings (loss) per share(82.53)(82.53)158.42
153.49－10－

(3) Consolidated Statement of Comprehensive Income(Millions of yen)Six months ended
June 30, 2020
Profit (loss)

Six months ended
June 30, 2021

(6,564)

12,279(5,615)(966)(1,029)1,345(6,644)379(1,367)

2,917

(52)

25

(1,419)2,942

Other comprehensive income
Items that will not be reclassified to profit orloss
Net change in fair value of equity
instruments designated as measured atfair value through other comprehensive
incomeRemeasurements of defined benefit plans
Total of items that will not be reclassified to
profit or loss
Items that may be reclassified to profit orloss
Exchange differences on translation offoreign operations
Effective portion of cash flow hedges
Total of items that may be reclassified to
profit or loss
Total other comprehensive income, net oftax
Comprehensive income(8,063)

3,321(14,627)

15,600Comprehensive income attributable to
Owners of parent
Non-controlling interests
Comprehensive income(14,451)(176)(14,627)

15,633(33)
15,600－ 11 －

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

Balance as of January 1, 2020

SharecapitalCapitalsurplusTreasurysharesRetainedearnings

53,88740,958(1,792)

51,521

Profit (loss)

Exchange differenceson translation offoreign operations
(863)

(68)

(1,325)(52)(1,325)(52)(6,429)Other comprehensive income
Comprehensive income

Effective portion of
cash flow hedges--

Purchase of treasury shares-(6,429)(1)

Disposal of treasury shares

08Dividends(3,277)

Changes in ownershipinterest in subsidiaries(2)

Share-based remunerationtransactions(12)

Transfer from othercomponents of equity toretained earnings(1,378)

Total transactions with owners

-

(14)

7

(4,655)--

Balance as of June 30, 2020

53,88740,944(1,785)40,437(2,188)(120)

Other components of equity

Balance as of January 1, 2020

Total equity
attributableto ownersof parent

Noncontrollinginterests

Total
equity29,497174,071454

174,524-(6,429)(134)(6,564)

Financial assets measured
at fair value through othercomprehensive income

Remeasurementsof defined benefit
plans

Total othercomponentsof equity

30,428-

Profit (loss)
Other comprehensive
income(5,615)(1,029)(8,021)(8,021(42)(8,063)Comprehensive income(5,615)(1,029)(8,021)(14,451)(176)(14,627)

Purchase of treasury shares

-

(1)

-

(1)

Disposal of treasury shares

-

8

-

8

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

Changes in ownershipinterest in subsidiaries

-

(2)

(1)

(3)

Share-based remunerationtransactions

-

(12)

-

(12)

Transfer from othercomponents of equity toretained earnings

348

1,029

1,378

-

-

-

Total transactions with owners

348

1,029

1,378

(3,285)(1)(3,286)

Balance as of June 30, 2020

25,162-22,854

156,336276

156,612－12－

(Millions of yen)
Other components of equity

Balance as of January 1, 2021

SharecapitalCapitalsurplusTreasurysharesRetainedearnings

53,88740,853(1,787)33,459Profit (loss)

Exchange differenceson translation offoreign operations

Effective portion of
cash flow hedges(1,806)

(40)

2,888

25

2,888

25

12,341Other comprehensive
incomeComprehensive income--

Purchase of treasury shares-

12,341(3)

Disposal of treasury shares

08Dividends(3,277)

Share-based remunerationtransactions
Transfer from othercomponents of equity toretained earnings

(24)
903
(182)

Other

182

Total transactions with owners

-

(207)

5

(2,192)--

Balance as of June 30, 2021

53,88740,647(1,782)43,607

1,082

(15)

Other components of equity

Balance as of January 1, 2021

Total equity
attributableto ownersof parent

Noncontrollinginterests

Total equity

Financial assets measured
at fair value through othercomprehensive income

Remeasurementsof defined benefit
plans

Total othercomponentsof equity

25,215-23,370149,781(231)

149,551-

12,341(62)

12,279Profit (loss)
Other comprehensive
income

(966)

1,345

3,292

3,292

29

3,321

Comprehensive income

(966)

1,345

3,292

15,633(33)

15,600Purchase of treasury shares

-

(3)

-

(3)

Disposal of treasury shares

-

8

-

8

Dividends-(3,277)(1)(3,278)

Share-based remunerationtransactions

-

(24)

-

(24)

(1,893)

(990)

990

-

-

-

-

-

Transfer from othercomponents of equity toretained earnings(548)(1,345)

Other
Total transactions with owners(548)(1,345)(1,893)(4,286)989(3,298)

Balance as of June 30, 2021

23,701-

24,769161,127726

161,853－ 13 －

(5) Consolidated Statement of Cash Flows(Millions of yen)Six months ended
June 30, 2020
Cash flows from operating activities
Profit (loss) before tax
Depreciation and amortization
Impairment losses
Interest and dividend income
Interest expenses
Share of loss (profit) of investments accounted forusing equity method
Loss (gain) on sale and retirement of property, plantand equipment, and intangible assets
Decrease (increase) in trade and other receivables
Decrease (increase) in inventories
Increase (decrease) in trade and other payables
Increase (decrease) in accrued alcohol tax
Other
SubtotalInterest and dividends received
Interest paid
Income taxes refund (paid)
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of investment property
Proceeds from sale of investment property
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Payments for acquisition of subsidiaries
Payments for investments in capital
Purchase of investments in associates
Payments for loans receivableCollection of loans receivable
Other
Net cash provided by (used in) investing activities

－

14

－

Six months ended
June 30, 2021

(9,929)13,315
97
(622)
909

19,052
11,447
378
(482)
847

(8)

(11)

129

(23,027)

24,840(3,798)(1,784)(13,645)
(552)
8,952
647
(852)
(4,424)
4,323

15,637(4,096)543(11,098)
3,333
12,522
503
(783)
591
12,834(6,334)106(3,191)－(1,077)
(532)
133
－
(297)
－
(61)
14
(605)
(11,843)(5,339)1,366(4,142)33,908
(694)
(6)
2,074
(2,652)(1,300)
(900)
(30)
48
304
22,637

(Millions of yen)Six months ended
June 30, 2020
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Net increase (decrease) in commercial papers
Proceeds from long-term borrowings
Repayments of long-term borrowings
Redemption of bonds
Dividends paid
Repayments of lease liabilities
Other
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents

Six months ended
June 30, 2021

(634)
18,00018,500(13,782)(7)(3,268)(3,283)
7
15,532(958)(6,000)4,000(4,483)(30,007)(3,271)(3,136)
5(43,850)

574

1,282

8,586
15,21523,801(7,098)19,734
12,636(6) Notes on the Going-concern Assumption
Not applicable(7) 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 business activities
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 ofGroup 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 ofvarious 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.

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2. Revenue, profit (or loss)(millions of yen)Six months ended June 30, 2020 (January 1, 2020 – June 30, 2020)
Alcoholic
Beverages

Food &
Soft Drinks

Real Estate

Total

Other *1

Consolidated
total

Adjustment

Revenue
To outside customers

130,375

58,05911,46980

199,983－

Inter-segment revenue

5,457

252

1,275

0

6,984

(6,984)－

135,832

58,31012,744

81

206,967(6,984)

199,983(7,771)(2,896)

4,262

(4)

(6,409)(2,989)(9,398)

Total
Operating profit (loss)

199,983(millions of yen)Six months ended June 30, 2021 (January 1, 2021 – June 30, 2021)
Alcoholic
Beverages

Food &
Soft Drinks

Real Estate

Total

Other *1

Consolidated
total

Adjustment

Revenue
To outside customers

130,548

57,957

11,116

85

199,706－

Inter-segment revenue

6,121

489

1,203

0

7,813

(7,813)－

136,669

58,446

12,31985

207,519(7,813)

199,706(2,777)(964)

26,027

11

22,297(3,194)

19,102

Total
Operating profit (loss)

199,706*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 generaladministrative expenses that do not belong to the reporting segment.

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