Sapporo Group Business Results Presentation
for the Six Months Ended June 30, 2022

*In this document, the following company name abbreviations are used:
SH: Sapporo Holdings Limited

SB: Sapporo Breweries Ltd.

PS: Pokka Sapporo Food & Beverage Ltd.

SLN: Sapporo Lion Limited.

August 12th 2022
URL https://www.sapporoholdings.jp/en/

SRE: Sapporo Real Estate Co., Ltd.

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１． Summary

・・・P3~P8

２． Business Results

・・・P9~P21

３． Appendix

・・・P22~P40

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Summary

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Financial Summary
Business Results for 2022 Q2
Revenue: 213.8 billion yen (up 14.1 billion yen YoY)
In addition to the growth in overseas alcoholic beverages mainly in North America, demand in the restaurant market recovered on relaxation of
restrictions and increase in RTD also contributed to the increased revenue.

Core operating profit: (2.2) billion yen (up 1.3 billion yen YoY)
Despite the impact of rising input costs, core operating profit showed improvement thanks to revenue increase and cost structure reforms in therestaurant business and in food and soft drinks.
* Although sales revenue has not progressed as planned in the Q1 due to the spread of COVID-19, core operating profit progressed largely as planned.

Operating profit: (0.2) billion yen (down 19.3 billion yen YoY)
Due to the sale of real estate last year, real estate business revenue was down from the previous quarter year (Gain on sales of non-current assets
came to 23.2 billion yen in 2021, 1.5 billion yen in 2022)

Annual revenue forecast: remain as planned at the start
Revenue: Slight shortfall in the first half. The spread of COVID-19 may be a downside risk, but we expect to achieve the initial plan as pricerevisions for some products could bring increased revenue and revenue in the overseas business is likely to rise(including acquisition of Stone Brewing Co., LLC, depreciation of Japanese yen).

Core operating profit : Progressed as planned in the first half. Although we need to address the rising input costs, price revisions and cost control(and risk response costs) should offset the situation, so we expect to achieve our plan at this stage.

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Progress of the Growth Strategy

Alcoholic Beverages

Food & Soft Drinks

Japan alcoholic beverages

Japan

Continue to increase canned beer sales

Expansion of sales for all lemon-based products(lemon beverages + lemon food)Beer sales increased by 11% in total
Canned beer decreased by 4% due to drop in consumer spending(decrease from previous high demand for home-drinking)Japan alcoholic beverages

Achieve growth in RTD,
non-alcoholic and low-alcoholic products
RTD achieved growth by 2% (sales volume)
Koime no Lemon Sour gained 40% increase (sales volume)
Good sales record for the new product Mitsuboshi Grape Fruit Sour
Non-alcohol and low-alcoholic beer increased 20% (sales volume)
Overseas alcoholic beverages

Canada: Promote premium beers
and strengthen RTD businessCompared to the previous fiscal year, promotion for thepremium beers has increased and more growth in RTD business
Overseas alcoholic beverages

United States: Strengthening SAPPORO brand
Driving sales of SAPPORO brand significantly higher year-over-year

Strong sales of lemon beverages led to 1% increase(sales volume) from the previous fiscal year
Overseas

Accelerated growth in overseas businessContribution made by sales in Singapore and more than 60 nations worldwide
Increase by 5 % in Singapore, 36% growth for export (sales amount)

Real Estate
Promote initiatives aimed
at improving value of YGP* properties“Foodies Garden” opened in April
YGP commercial complex* is being renovated for grand opening in fall

Grow profits of new businesses
using equity investments, etc.
One equity investment (Q1), two equity investments (Q2)(recovery of commercial-use products and expansion of retail stores for home-use products)

Secured manufacturing facilities through acquisition ofStone Brewing Co. LLC to promptly generate synergy*YGP: Yebisu Garden Place, commercial complex: center plaza
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Progress of Structural Reforms

Alcoholic Beverages

Food & Soft Drinks

Japan alcoholic beverages

Institute in-house production of RTD
at Sendai Brewery and increase productivity at breweries
Preparation to start RTD manufacturing facility operation in 2023 is currently underway
From 2023: Improvement in productivity is expected to increase core operating profit of 1.0
billion yen
From 2024: In-house production could generate core operating profit of several hundred
million yen

Reorganization of vending machine operator subsidiaries
Planning liquidation by 2022
From 2023: Likely to generate operating profit of 700 million yen (comparison to
FY2020)Transfer of cafe businessBusiness sold in April, 2022
From 2022: Likely to generate core operating profit of 800 million yen (comparison to
FY2020)Overseas alcoholic beverages

Optimize SPB* manufacturing locations
Acquisition of manufacturing facility in the North America from Stone Brewing Co. LLC in 2022
Accelerate business growth in the United States*SPB: SAPPORO PREMIUM BEER

Reorganize business locations of Shinsyu-ichi Miso
Business sold in February, 2022
From 2022: Likely to generate an core operating profit of 300 million yen (comparison to
FY2020)

Restaurants

Develop “small, small investment, suburban” business model
Implement further structural reforms to achieve profitability
Closing of stores with low profit margin as necessary and shift to developing stores that generate high profit
Achieve profitability by May and June and return to profitability throughout the year in 2023

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Acquisition of Stone Brewing Co., LLC.

～Growth strategy for North America～

Sapporo U.S.A., Inc., a consolidated subsidiary of Sapporo Holdings Ltd., has acquired membership interest(Consolidation) in Stone Brewing Co., LLC.

<Purpose of this Acquisition>(1) Acquire manufacturing base for the Sapporo brand(Acquire Stone’s two breweries located on the West Coast and East Coast to strengthen growth of the Sapporo brand)(2) Expand beer business through acquisition of prominent brands, such as Stone IPA➢ Significantly lower logistics costs by promoting local production for local consumption➢ Stabilize and streamline operations by connecting the entire value chain from production to sales inside the United States➢ Expect to roughly double the current utilization rate of the two breweries to be acquired.

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Review of Medium-Term Management Plan
We are proceeding with Group Management Plan 2024 (2020 - 2024)
under the “Sapporo Group Long-Term Management Vision ‘SPEED150’”
that outlines the goals for the years up to 2026, the 150th anniversary of the Group’s founding.
Group Management Plan 2024

Concentrate on corebusiness for resilience

Accelerate global
business expansion

Establish a simple andcompact corporate structure

Promotesustainability management

Results➢➢➢

Promotion of beer business operation in anticipation of change in alcohol tax and further growth in Black Label
Acceleration of global operations (growth of alcoholic beverages in North America, M&A, expanded sales of international soft drinks)
Selection and concentration for food and soft drinks, revision of business structure, reorganizing non-priority businesses

Issues➢➢Major task is to address the shortfall of plan
The speed and rigor of initiatives were weaker than expected, due in part to COVID-19 and other factors.

Able to initiate operations to bring renewed growth to our businesses
Considerable impact on our business environment, including the rapid spread of COVID-19[Review of Medium-Term Management Plan]
The Sapporo Group has been drawing up new management plans for the coming 4 years (2023 to 2026) to address the highly uncertain business environment
and ensure our global growth strategy further emphasizes capital efficiency. The plan is due to be released by the end of this year.

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Business Results

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Financial Highlights（billions of yen）

2021 Q2
Result2022 Q2
ResultYoY changes(amount)

YoY changes
(%)

199.7

213.8

14.1

7.1%

Revenue（Excluding liquor tax）

151.1

162.4

11.3

7.5%

Overseas revenue

34.7

43.1

8.4

24.3%

EBITDA

6.9

7.9

13.4%

(3.5)

(2.2)

0.9
1.3

(1.7%)
19.1(1.0%)
(0.2)

ー

ー
ー

12.3

(0.4)

1.2

1.1

(19.3)(12.7)(0.0)

RevenueCore operating profit
Core operating profit margin
Operating profit
Profit attributable to owners of parent

D/E ratio (times) ※NetーーーThe balance of debt excludes the balance of lease obligations.

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Reasons for changes in sales revenue
In addition to the growing sales of alcoholic beverages in North America, we saw strong sales for RTD and recovery in restaurant
business demand after the easing of restrictions which resulted in increased earnings bybillion yen
Alcoholic Beverages

Food & Soft Drinks

Real Estate(billions of yen)

= Increase= Decrease

Japanese

Export +0.7

Canada +3.5
The U.S. +1.6
(for exchange
rate +3.1)

Overseas +2.5
(Of which exchange rate +1.1)
Transfer of CAFÉ de CRIÉ business (1.4)
2022
Q2RTD +0.4Non-alcoholic +0.2
Japanese liquor,wine and spirits, etc. +2.3

2021
Q2

Value creation beverages (1.0)
Lemon beverages +0.3

Sale of
Property (0.7)

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Reasons for changes in core operating profit
Despite experiencing a decrease by 3 billion from the rising raw material costs, etc., revenue increased and structural reforms forthe restaurant, and food and soft drink businesses had an effect, resulting in increase of core operating profit bybillion yen(billions of yen)

Alcoholic Beverages

Food & Soft Drinks

Real Estate= Decrease(raw material costs (2.2))

Japanese2021
Q2= Increase(raw material costs (0.8))2022
Q2(raw material costs (0.9))
Overseas +0.1
Structural reform +0.5

Rise of raw material costs, etc. (0.3)
RTD +0.4Non-alcoholic +0.2
Japanese liquor, wine and spirits, etc. +0.6

Increase in volume +1.1
Rise in raw material costs, etc. (0.6)
Decrease in rebates +0.4

Sale of Property(0.4)
Promotional cost (0.5)
Increase in Sendai plantdepreciation cost, etc. (0.5)

Structural reform +0.1
Rise in raw material costs, etc. (0.5)
Increase in variable marketing costs (0.2)

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Recovery from COVID-19
Relaxation of restrictions has led to recovery in commercial-use product sales volume for alcoholic beverages in Japan and revenue in restaurant business
Alcoholic beverages (Japan): change in commercial-use product sales(comparison to FY2019)

Restaurant business: change in sales at current stores of Sapporo Lion Limited(comparison to FY2019)

77.9%
83%
COVID-19
countermeasures

67.1%

COVID-19
countermeasures

70%

63.6%
58.9%

62%

85%

74%

63%
58%

55%
Group results
43.8%

53%

Sales results inexisting stores

Total demand
39%

39%
30.6%
28%

Jan.

Feb.

Mar.

Apr.

May

June

Headed toward recovery after February
when the impact from the restrictions was most acute
Recovered up to 77.9% in June compared to FY2019

Jan.

Feb.

Mar.

Apr.

May

June

Headed toward recovery after February
when the impact from the restrictions was most acute
Recovered up to 85% in June compared to FY2019

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Alcoholic beverages in Japan
Increase in revenue and profit attributed to the recovery in demand for restaurant business and strong sales for RTD
despite upfront brand investment and more variable costs due to soaring raw material prices and fixed costs
from Sendai Brewery depreciation, etc. This has led to the return to profitability in the first half.

＜Core operating profit＞（billions of yen）

＜Revenue＞（billions of yen）
120.0

2021

4

2022

2021

80.0

40.0

2022

2.7 3.00.1
0102.7109.7
44.7 46.1(0.3)

58.0 63.6(3.0) (2.8)▲4

0.0Jan-JunJan-MarApr-JunOverall Results for 1H 2022

Jan-JunJan-MarApr-JunPolicy for 2H 2022 Initiatives⚫
⚫

Increase in sales for beer products from the previous fiscal year
Canned bear showed lower results compared to the previous fiscal
year due to decrease from previous high demand for home-drinking

Execute real and digital media fusion to expand the fan base for the standard brands.
Propose range of limited-edition and other derivative products.

⚫

RTD remained steadyStrengthen the brand of Sapporo Koime no Lemon Sour
Expand recognition of Mitsuboshi Grape Fruit Sour and establish its status on the market.

⚫

GOLD STAR achieved growth year-over-year

Foster nurturing of brand as a core new genre brand.

⚫

Increased variable and fixed costs

Continue working on cost control measures
Consider revision of pricing for each product to offset soaring costs.
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Alcoholic beverages in overseas
The demand recovery for restaurant business and steady sales with the expansion of SPB* home-use products led to an increase in revenue.
Due to rising raw material costs, cost for acquiring of Stone Brewing Co. LLC, core operating profit remained flat year-on-year*SPB: SAPPORO PREMIUM BEER

＜Core operating profit＞（billions of yen）

＜Revenue＞（billions of yen）

1

40.0

2021

30.0

2022

1

20.0
10.0

2021

2022

0.5 0.3

0.2 0.2

24.8 30.0010.2 12.1

14.6 17.9▲1

0.0
Jan-JunJan-MarOverall Results for 1H 2022

(0.3) (0.1)

Apr-JunJan-JunJan-MarApr-JunPolicy for 2H 2022 Initiatives⚫

Canada: Improvement in variety mix

Continue with the promotion of premium beers.

⚫

United States: SAPPORO brand remained steadyStrengthen home-use products (more revenue for canned beers through expansion of retail stores)
Strive to create synergy as early as possible with the acquisition of Stone Brewing Co. LLC⚫

Vietnam: Increased delivery of beer keg (delivery amount in June
increased over the period before the spread of COVID-19)

Continue measures for expanding retail stores.

⚫

Rising raw material costs and shipping costs

Be attentive to the market situation, etc. and work on price revision as necessary.
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Alcoholic beverages in restaurants
The demand recovery for restaurant business and decrease in fixed costs from structural reforms led to an increase in core operating profit.

＜Core operating profit＞（billions of yen）

＜Revenue＞（billions of yen）
8.0

2021

1

2022

6.0

0

4.0

▲1

6.4
2.0

3.1

1.8 2.3

1.3

4.1

0.0

(0.9)

2022

(1.7)

(1.0)

0.1
(1.1)

(2.9)
▲2
▲3

Jan-JunJan-MarOverall Results for 1H 2022⚫

2021

Improvement of break-even sales(achieve profitability by Q2)

Apr-JunJan-JunJan-MarApr-JunPolicy for 2H 2022 Initiatives
Focus on promotion of existing businesses to turn the Group sales to positive by 2023.

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Food & Soft Drinks
Revenue was down due to sale of café business and reorganization of vending machine operator subsidiaries while revenue increased the overseas
Core operating profit showed improvement thanks to the structural reforms implemented last year

＜Core operating profit＞（billions of yen）

＜Revenue＞（billions of yen）

1

60.0

2021

2021

2022

2022

1
40.0

0.2

0

58.0 57.5

▲1

20.0

27.6 27.7

30.4 29.8

Jan-MarApr-Jun(1.1) (0.8)(1.1) (1.0)

Jan-JunJan-Mar

(0.0)

▲1
▲2

0.0
Jan-JunOverall Results for 1H 2022

Apr-JunPolicy for 2H 2022 Initiatives⚫

Lemon beverages remained on course in Japan

Propose new lemon beverages for expansion of sales by proposing health conscious products.
Target new customers through introduction of seasonal products and engage in promotion toenhance brand recognition.

⚫

Cutback on unprofitable column vending machine businessCut back on unprofitable and inefficient vending machine and seek other newly promising location.

⚫
⚫

Achieved 5% growth in Singapore(marked increase in e-commerce and convenience stores)
Export +36%

E-commerce will continue to grow, so we will continue to implement initiatives.
We need to implement a range of strategies by area for exports.

⚫

Increase in variable costs mainly from soaring raw material costs

Continue working on cost control measures
Consider revision of pricing for each product to offset soaring costs.
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Real Estate business
The sales of Yebisu First Square last year and decrease of rent over the renovation for YGP commercial complex* led to decrease in revenue and profit.

＜Core operating profit＞（billions of yen）

＜Revenue＞（billions of yen）

4.0

12.0

2021

2021

2022

10.0

2022

3.0

8.0
6.0
4.0

2.0

11.1 10.1
5.6 5.0

2.0

5.5 5.1

3.8

3.1

2.6

1.0

2.5

0.7 0.1
0.0

0.0
Jan-JunJan-MarJan-JunApr-JunOverall Results for 1H 2022

Jan-MarApr-JunPolicy for 2H 2022 Initiatives⚫

Yebisu
YGP commercial complex* : leasing arrangement is underway

Grand opening to be held in November⚫

YebisuYGP* office : slight delay in leasing

Due to deteriorating market conditions, occupancy rate may be slightly lower than expected.
Continue to offer service and added value that ensure security and safety and adapt to the demand in
new work style so as to strengthen leasing activities (install seismic damping mechanism, update air
conditioning features, etc.)

Sapporo: closing of no. 4 parking lot at Sapporo factory*

Launch of the renewal project for an eight-story commercial complex andoffice building
To be opened in August, 2024⚫

*YGP: Yebisu Garden Place, commercial complex: center plaza*Closing of no. 4 parking lot at the Sapporo factory: one of the parking lots at the factory (commercial complex)
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Profit attributable to owners of parent（billions of yen）

Core operating Profit

2021 Q2
ResultDetails(3.5)

2022 Q2
Result(2.2)

Other operating income

24.5

Other operating expenses

1.9

1.2

Operating Profit

19.1

(0.2)

Profit before tax

19.1

0.8

Income taxes

6.8

1.1

12.3

(0.4)

(0.1)

0.0

12.3

(0.4)

ProfitLoss attributable tonon-controlling interest
Profit attributable toowners of parent

Details

Gain on sales of fixed assets, etc.

3.1

Gain on sales of fixed assets, etc.

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Group topics: discovery of barley that combines flavor and tolerance for climate change (global warming, increased precipitation)
In line with the Sustainable Policy, “With the earth, in harmony with society, from the start, to bring smiles to people,”the Sapporo Group identified and established sustainability priority issues as “4 Key Promises” to bring bright smiles to everyone.

➢
➢
➢
➢

In May 2019, the Group announced its support for the TCFD recommendations. It has carried out analysis to understand the impact of climate change on agricultural crops.
Addressed risks and opportunities for business operations and countermeasures.
Under the assumed conditions, depending on the region, medium-long term analysis showed a reduction in agricultural crop yields.
We found that besides mitigation measures such as reducing CO2 emissions to cope with climate change,
selective breeding and cooperative contract farming systems could also be effective solutions for adapting to the changes.
The Group will develop and commercialize barley and hops that are adapted to climate change in Japan by 2035 and overseas by 2050.

Discovery of barley variety that can adapt to climate changes(global warming, increased precipitation) and has properties that control malt balance.
(CO2 emissions could be reduced by shortening the time for malting process)
The Group will advance the development and testing of new barley varieties that are resistant to climate changes and commercialize them.

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Decrease in core operating profit caused by surge in raw material costs (full-year forecast)
Results for the first half: down by 3.0 billion (1.5 billion in Japan, 1.5 billion in overseas) ⇒ implemented cost control measures
Forecast for the second half: down by 4.0 billion (2.7 billion in Japan, 1.3 billion overseas) ⇒ handle with price revisions* and risk response costs*Results include effect of exchange rate changes(billions of yen)

Schedule for implementing price revisions*
Second half: (down 4.0 billion)(down 2.7 billion in Japan, down 1.3 billion overseas)

Japan alcoholic beverages➢ Beer and other beer type beverages, RTD:
from October➢ Wines and Shochu: from July
Overseas alcoholic beverages➢ As necessary
Food & Soft Drinks➢ Soft drinks: from October➢ Lemon-based food products: from AugustFirst half: (down 3.0 billion)(down 1.5 billion in Japan, down 1.5 billion overseas)

1H: Surge in raw material costs

1H: Other price hikes

2H: Surge in raw material costs(forecast)

2H: Other price hikes(forecast)
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Appendix

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Appendix: Quarterly results for FY2022（billions of yen）

Revenue by Segment

2021 Q1

2022 Q1

YoY changes

YoY changes

2021 Q2

2022 Q2

YoY changes

YoY changes

ResultResult(amount)(%)

ResultResult(amount)

(%)

3.7%

109.8

120.5

60.6

3.4
3.9

6.9%

73.9

44.7
10.2
1.8

46.1
12.1
2.3

1.5
1.9
0.5

3.3%

27.6
5.6
0.0

27.7
5.0
0.0

0.1
▲ 0.7
▲ 0.0

Core Operating Profit by Segment

▲ 6.9

▲ 6.4

Alcoholic Beverages▲ 5.0

Alcoholic Beverages
Japanese
Overseas
Restaurants
Food & Soft Drinks
Real Estate
Other

Japanese
Overseas
Restaurants
Food & Soft Drinks
Real Estate
Other・General corporate andintercompany eliminations

89.9

93.2

56.6

9.8%

85.6

10.7
11.7

58.0
14.6
1.3

63.6
17.9
4.1

5.6
3.3
2.8

9.6%

▲11.8%

30.4
5.5▲27.0%

0.0

29.8
5.1
0.0

▲ 0.6
▲ 0.4
▲ 0.0

ー

3.4

4.2

ー

2.1

3.4

0.9
1.3

25.2%

▲ 3.9

0.5
1.1

▲ 3.0
▲ 0.3
▲ 1.7

▲ 2.8
▲ 0.1
▲ 1.0

0.2
0.2
0.8

ー

2.7
0.5
▲ 1.1

3.0
0.3
0.1

0.3
▲ 0.2
1.2

9.9%

▲ 1.1
0.7

▲ 1.0
0.1

0.1
▲ 0.6

ー
▲87.4%

▲ 0.0
3.1

0.2
2.5

0.3
▲ 0.6

▲19.2%

▲ 1.5

▲ 1.6

▲ 0.1

ー

▲ 1.7

▲ 1.9

▲ 0.2

ー

18.8%
29.9%
0.4%

ー
ー

15.8%
22.4%
221.2%▲1.9%▲7.0%▲15.4%

64.8%▲33.0%ーー

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Appendix：Changes in Balance Sheets
Total assets declined 3.1 billions yen from the previous year end
Total liabilities declined 6.1 billions yen from the previous year end and total capital increased
3.1 billions yen from the previous year end
Total assets

End of 2021

2022Q2changeTotal liabilities and equity

Cash and cash equivalents

17.4

18.2

0.9

Trade receivables

91.5

77.4

(14.2)

Inventories

39.2

44.6

5.4

Other current assets

19.7

15.3

Fixed assets and intangible assets

128.5

Investment property

End of 2021

2022Q2changeTrade payables

33.2

37.6

4.4

Short-term financial liabilities

61.2

68.4

7.2

Other current liabilities

116.1

90.1

(26.1)(4.5)

Long-tern financial liabilities

136.9

138.4

1.5

130.2

1.7

Net defined benefit liabilities

0.3

4.2

3.9

203.2

204.3

1.1

Other non-current liabilities

83.4

86.4

3.0

Goodwill

19.2

19.8

0.6

Total liabilities

431.2

425.1

(6.1)

Other non-current assets

75.8

81.8

5.9

Equity attributable to owners of parent

162.6

165.5

3.0

Total assets

594.6

591.5

(3.1)

0.8

0.9

0.1

Total equity

163.3

166.4

3.1

Total liabilities and equity

594.6

591.5

(3.1)

Non-controlling interests

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Appendix： Financial Status
Investment on a cash basis was ¥billion＜ Investment total (①＋②＋③)> ¥＜Consolidated cash flow (CF) statement＞（billions of yen）

2021 Q2
Result2022 Q2
ResultChangeChange (%)➀ Capital expenditure (cash basis): ¥

12.8

5.5

(7.3)

(57.1)

CF from investing activities

22.6(10.5)(33.1)

ー

35.5

(5.0)

(40.5)ー＜ Major items ＞
・ Alcoholic Beverages: ¥3.2 billion(43.8)

3.5

47.3

ー

SB: ¥1.8 billion Sleeman ¥1.0 billion

CF from financing activities

billion（Property, plant and equipment, intangible assets, investment property）

CF from operating activities

Free CFbillion・ Food & Soft Drinks: ¥1.5 billion（billions of yen）

<Changes in amount of investment (cash basis)>PS：¥0.8 billion

POKKA PTE. LTD.：¥1.0 billion

・ Real Estate: ¥6.6 billion

50.0

Acquisition of investment property

・ Group-wide: ¥0.5 billion

40.0
30.0

② Lease fees: ¥

20.0

31.0

36.5

41.8
32.7

24.7

10.0

billion(excluding lease fees for renting restaurant premises)

33.0
15.8

③ Other investments: ¥billion（Invest in property’s equity etc.）

0.0
2016

2017

2018

2019

2020

2021

2022
Copyright, 2022 SAPPORO HOLDINGS LTD. All rights reserved.

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Appendix： Initiatives for Sustainability Management
Sustainability management strategy

The Sapporo Group will address global environmental and social issues to make people happy.
The earth, the source of nature's bounty, is our most important partner.
We will strive to collaborate and prosper together with our stakeholders
who share our value to provide products sustainable in the entire lifecyclefrom the development of products and services to the delivery to customers.
We will value our founding philosophy and think hard about creating sustainable value,and bring a smile to the face of people.
We will try to bring smiles to people all over the world,with our commitment to professional manufacturing, development of regionally oriented communities,
and with our vows “Be a pioneer of people’s smiles in the world.”

Main topics for Q2 in FY 2022
リリース日

内容

4/5

Discovery of barley that combines flavor and tolerance for climate change (global warming, increased precipitation)
https://www.sapporobeer.jp/news_release/0000014784/ * Japanese

6/17

Won the award for excellence in the Fourth Platinum Career Award
https://www.sapporoholdings.jp/news/dit/?id=8939 * Japanese

6/30

Listed as a constituent of the SOMPO Sustainability Index for the eleventh straight year
https://www.sapporoholdings.jp/news/dit/?id=8950 * Japanese

関連する重点課題

Copyright, 2022 SAPPORO HOLDINGS LTD. All rights reserved.

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Appendix: Initiatives for Sustainability Management

Sapporo Group Environmental Vision 2050
Toward a “carbon-free society, recycling-oriented
society and society in harmony with nature”

Carbon-free society

Specific initiatives
・Reduce CO2 of our own business sites by 20% (by 2030 vs. 2013) SB PS-Reduce emissions mainly of production sites
・Toward zero CO2 emissions (carbon neutrality) by 2050
・Work toward reducing CO2 emissions in the value chain beyond our own business sites

Recycling-oriented society
・Strive toward 3Rs of all resources related to operations across the entire Group<Containers and packaging> Seek to use materials that meet the requirements of arecycling-oriented society for 100% of our containers & packaging<Water resources> Continue our efforts to reduce the amount of water used at ourfactories so as to use water resources sustainably-Introduce solar power generation systems at business sites (PPA)・Yebisu Garden Place to be 100% renewable energy (April 2022) SRE

Specific initiatives
・Reduce plastics usage, etc.
-Use 50% recycled materials for wine PET bottles made in Japan andeliminate waste of plastic advertising in Japan (2030) SB-Use 50% recycled materials for PET bottled products (2030) PS-Switch to paper straws SLN・Reduce water usage of production sites by 10% (by 2030 vs. 2013) SB PS
・Achieve 100% recycling rate of waste at main factories SB PS

Society in harmony with natureSpecific initiatives
・Contribute to sustainable procurement through R&D on barley and hops
(support TCFD recommendations and work toward resolving climate change issues)

・Community development with vibrant time and spaces in harmony
with nature

・Initiatives for breeding, environmental education, and protection of endangered species,-Commercialize barley and hops in Japan that are compatible with climate change (2035) SB・Community development using urban farming (YEBISU GARDEN FARM), etc. SRE
Copyright, 2022 SAPPORO HOLDINGS LTD. All rights reserved.

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Appendix (Group topics): launch of official mobile app “Uchi-repi”
This unique app enriches communication with your family to help households and create joy and happiness in cooking.
➢ Jointly developed with Fuller, Inc., this app is compatible with iOS/Android and was officially released on July 4th.
➢ Contains wide range of recipes provided by various enterprises (more than 20,000 recipes from approx. 30 companies)

Meal talk using the chat feature
Our survey showed that many were dissatisfied with their family’s lack of interest in cooking. We decided to design a function that enables sharing of
the menu for the day and feedback among family members to facilitate communication within a family and discover the fun and appreciation for cooking.
Uchi-repi diary
Those who prepared or enjoyed a day’s meal can leave a note of how they felt about their dishes as a memento.

New function for the app
Proposal of recipes based on inventory information and contribution to reducing food loss

We are planning to add new features so that cooking ingredients can be
automatically stored as inventory data.
Through inventory management, users can cut back on food loss, including
reducing food waste from out-of-date products and making use of scraps of foodto propose new menus.

Copyright, 2022 SAPPORO HOLDINGS LTD. All rights reserved.

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Appendix： Major sales volume & sale
(Beer and beer-type beverages and non-alcoholic beer calculations based on large bottles,RTDs are calculated by 250 ml × 24 bottles.)Sales Volume:Beer (Japan) ※1(10,000 cases)
Jan 1 - Jun 30 Jan 1 - Jun 30
2021

2022

Jan 1 - Jun 30 Jan 1 - Jun 30

607

12.4%

YEBISU (total)

273

263

(4.0%)

1,036

1,144

10.5%

2 Happoshu (total)

7972(9.8%)

3 New genre beer products (total)

625

569

(8.9%)

1,740

1,785

2.6%

RTD(*1)

606

620

2.3%

Non-alcoholic beer and low alcohol beer taste beverage

27

32

20.1%

Sales Volume:Beer (International)(10,000 cases)
Jan 1 - Jun 30 Jan 1 - Jun 30
2021

2022

YoY
Change(%)

Overseas brand (SLEEMAN, Anchor, etc.)

635

623

(2.0%)

Sapporo brand

172

204

18.4%

North America

808

827

2.3%

85

119

40.3%

Other areas

85

119

40.3%

Total

893

946

6.0%

Sapporo brand

2021

Change(%)

541

Beer, happoshu, and new genre （total 1+2+3）(billions of yen)

YoY

Sapporo Draft Beer Black Label (total)

1 Beer (total)

Sales:Beer (Japan) *including liquor tax
2022

YoY
Change(%)

Beer

55.7

60.9

9.3%

Happoshu

3.0

2.7(9.4%)New genre

23.0

20.9

(8.8%)

Subtotal

81.7

84.6

3.5%

Rebate subtracted from sales(*2)

(5.0)

(4.3)

ー

Total

76.7

80.3

4.7%

Sales:Alcoholic Beverage (Japan)(billions of yen)Jan 1 - Jun 30 Jan 1 - Jun 30
2021
2022

YoY
Change(%)

Domestic wines

1.6

1.6

3.7%

Imported wines

2.7

3.2

17.6%

Wine (total)

4.3

4.8

12.5%

Spirits and Shochu (total)

11.2

12.8

13.6%

RTD

10.7

11.1

4.0%

Subtotal

26.2

28.6

9.5%

Rebate subtracted from sales(*3)

(5.1)

(5.0)

(0.6%)

Total

21.1

23.6

11.9%

Sales:Food & Soft Drinks (Japan) ※2*4(billions of yen)Jan 1 - Jun 30 Jan 1 - Jun 30
2021

2022

YoY
Change(%)

Soft Drinks

29.0

28.3

(2.3%)

Food（Lemon・Soups・Plant milk）

14.5

14.4

(0.9%)※1：Following the agreement of the Brewers Association of Japan, the sales volume for the first half and end of the fiscal year shall be disclosed.
※2：Pokka Sapporo is only domestic sales.

Copyright, 2022 SAPPORO HOLDINGS LTD. All rights reserved.

29/40

Appendix：Alcoholic Beverages (Japan)<Domestic beer and beer-type beverages:
YoY change in sales volume by genre>(Jan – Jun)

<YoY changes in sales volume of beer and beer-type
beverages by genre>（％）[Beer and beer-type beverages total] up✓ Beer:up% YoY(cumulative for each month)

120
110

％ y-o-y100

90✓ Happoshu: down
✓ New genre: down

％ y-o-y80
70％ y-o-yJan<Major domestic brands: YoY change in sales
volume>(Jan – Mar)

Feb

Mar

Apr

May

Jun

Beer

Happoshu

New genre

Beer and beer-type beverages total<YoY changes in sales volume of main brands>（％）✓ Black Label brandup％ y-o-y✓ YEBISU branddown％ y-o-y(cumulative of each month)

120
110
100
90

✓ Mugi to Hop branddown％ y-o-y✓ GOLD STARup

％ y-o-y

80
70
Jan

Feb

Mar

Apr

May

Black Lable brand total

Yebisu brand total

Mugi to Hop brand total

GOLD STAR

Jun

Copyright, 2022 SAPPORO HOLDINGS LTD. All rights reserved.

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Appendix：Alcoholic Beverages (Japan)＜Main brand Jan- Jun Sales volume change＞＜ Beer lineup sales volume(Jan- Jun break down) ＞(10,000 cases)

900

24%

800
700

600

23%

500
400

53%

300

200
100

Black Lable

0

2015

2016

Black Lable brand total

2017

2018

Yebisu brand total

2019

2020

Mugi to Hop brand total

2021

YebisuOthers2022

GOLD STAR

Copyright, 2022 SAPPORO HOLDINGS LTD. All rights reserved.

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Appendix：Alcoholic Beverages (Japan)＜ Jan- Jun sales revenue ＞(billions of yen)

＜ Jan- Jun sales breakdown by category ＞※Incl. liquor tax

10% 1%

100
90

33.3

31.8

7%

28.9

53%
Beer

25.2

21.0

8%

80

26.6

70

23.7

Happoshu & New genre
Wine & Spirits
Japanese Liquor

26.0

RTD

60

Non-alcoholic beer

21%

50
40

67.8

72.1

76.3

71.5

74.4

30

58.4

55.7

60.9

20

*Before subsidiary companies sales, elimination ofinter- company transactions and rebate deduction

10*From 2021, Hyosai Sour and 99.99 keg
are reclassified from Spirits to RTD.

0
2015

2016

2017

2018

2019

2020

Beer

Happoshu & New genre

2021

2022

Copyright, 2022 SAPPORO HOLDINGS LTD. All rights reserved.

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Appendix：Alcoholic Beverages (Japan)＜ Jan- Jun sales revenue ＞ (billions of yen)

*From 2021, Hyosai Sour and 99.99 keg
are reclassified from Spirits to RTD.

0.9
3.4

3.6

3.7

3.5

2.7

2.5

2.4

2.4

2.3

2.1

1.7

1.6

2015

2016

2017

2018

2019

2020

2021

Japanese Wine

2.0
2015

2016

2.7

2017

3.2

1.6

0.6
2.0

0.6
2.4

2022

2015

2016

2018

4.3

3.6

0.7
3.1
2017

RTD (can)Imported Wine

3.1

0.8

10.2

10.3

2021

2022

0.7

3.6
2.8

2.4

0.5

3.4

6.9

7.6

0.8

Spirit

2020

2021

2022

2015

7.6

2019

2020

3.9
2018

Hyosai Sour and 99.99 Taruzume

7.8

7.9
5.7

2.6

2019

7.9

2016

2017

2018

2019

7.1

2020

7.8

2021

Japanese Liquor
Copyright, 2022 SAPPORO HOLDINGS LTD. All rights reserved.

8.5

2022

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Appendix：Alcoholic Beverages (Japan)＜Changes in the amount of liquor tax per 350 ml＞

（yen）

77
70
63.35
Beer

54.25

Happoshu
New genre

46.99
37.8

RTD

✓ Beer and Beer
type beverages
yen

✓ RTD
yen

35

28

2020

2023

2026

（year）

Copyright, 2022 SAPPORO HOLDINGS LTD. All rights reserved.

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Appendix：Alcoholic Beverages (Overseas)＜Overseas beer : YoY change in sales volume＞(Jan – Jun)

【North America Total up％ y-o-y✓ Overseas branddown＜ Overseas sales volume by brand (Jan-Jun) ＞（10,000 cases）

1,000
800

％ y-o-y

209

257

323

645

649

635

623

2019

2020

2021

2022

600
400

✓ Sapporo brand

up

319

200
0

％ y-o-yOverseas brand【Other Areas Total】 up％y-o-y（Main area：Asia pacific , Europe , Oceania）✓ Sapporo brand： up

Sapporo brand＜ Overseas sales volume by Area (Jan-Jun) ＞(Jan – Jun)％y-o-y（10,000 cases）

1,000

141
＜ Y-o-y change in domestic sales volume in Vietnam＞

800

140%
120%
100%
80%
60%
40%

600
400

72

85

119

823

786

808

827

2019

2020

2021

2022

200
0
North America

Other areas

Copyright, 2022 SAPPORO HOLDINGS LTD. All rights reserved.

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Appendix：Alcoholic Beverages (Restaurants)＜ Sales revenue and number of Sapporo Lion Outlets ＞※before rebate deduction(Billions of yen)

25.0
20.0

（Jan- Jun）

200

174 173 174 170

180

159 155

15.0
10.0
5.0

＜Sapporo Lion outlets As of June 30, 2022 ＞

8Tokyo Metroporitan

160

127 125

11.8 11.5 11.9 11.3 11.3

140

13
2

120

4.7

11
Kanto (excl. Tokyo)
Hokkaido

125 Outlets

2.6 5.6

0.0

Tohoku55

100
2015 2016 2017 2018 2019 2020 2021

Sales revenue

15

Number of outlets

NagoyaKansaiOthers21＜ Total number of outlets ＞＜Brands＞

13

125

Sapporo Lion
New Sanko

160 Outlets
11

Marushinkawamura
Hanei

11
Copyright, 2022 SAPPORO HOLDINGS LTD. All rights reserved.

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Appendix：Food & Soft Drinks＜ Japanese soft drinks POKKA SAPPORO Food & Beverage ＞

Sales volume & Sales by genre(Jan- Jun)

【Lemon based-drinks】【Lemon-based food products】

✓

✓

up

％ y-o-ydown（Sales volume）

％

y-o-y

＜ Japanese soft drinks POKKA SAPPORO Food & Beverage ＞
Changes in sales volume for lemon beverages and lemon Food(the total volume for the period of January to June)* the growth rate when standardized as 100 for 2019

（Sales）
140
120【Unsweetened tea drinks】【Soups】

100

✓

✓

80

down

％ y-o-yup％ y-o-y60（Sales volume）（Sales）
40
20
0【Coffee drinks】【Soy milk, chilled products】

✓

✓

down

％ y-o-y（Sales volume）

up

2019

2020

2021

2022

Lemon Beverages and Lemon Food

％ y-o-y（Sales）

Copyright, 2022 SAPPORO HOLDINGS LTD. All rights reserved.

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Appendix：Food & Soft Drinks＜ Japanese soft drinks
POKKA SAPPORO Food & Beverage ＞
Sales composition by sales channel (Jan- Jun)

＜ Food & Soft Drinks segment
Revenue break down by geographic area ＞※Except connection adjustment35%
80%
17.35 million
cases

Vending machine
Retailer

20%

65%
Japan

＜Japanese soft drinks
Sales composition by genre (Jan- Jun)>

14%

15%
3%

21%

drinksCarbonated

25%
22%

＜Japanese soft drinks
POKKA SAPPORO Food & Beverage＞
Sales composition (Jan- Jun)

＜ Overseas soft drinks
POKKA Corporation (Singapore)＞
Sales composition (Jan- Jun)

Coffee drinks
Lemon-based

17.35 million
cases

Overseas34%

42.7
billions

drinksTea drinks
Water

24%

112
SG＄ million

66%
Soft drink

Food

76%
Singapore & Malaysia

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Appendix：Real Estate＜ Information about Investment property ＞＜ Major rental properties & occupancy rates：（Averages for 2022 2Q )>Yebisu Garden Place（1）Ginza Place
Strata Ginza（2）Site area（㎡）

Floor area（㎡）

Occupancy rate（%）

No. of floors

56,943

298,00788

40 floors above ground,
5 below

645

7,350

100

11 floors above ground,2 below100

13 floors above ground,
1 below

1,117

11,411(billions of yen)

400.0
300.0
200.0

100.0

408.1

382.9

218.6

203.2

0.0

*1: The number of floors is for the office block only. Occupancy rates are for office areas only.
*2: Figures are for entire property. Sapporo owns 922m 2 of the site (sectional ownership) and 89.72% of the building(joint management)

As of December 31,

As of December 31,

2020

2021

Carrying value on the consolidated statementof financial position
Fair value(billions of yen)(billions of yen)＜Core Operating profit＞

2021
Q2

2022
Q2

Change＜EBITDA＞

2021
Q2

2022
Q2

ChangeYebisu Garden Place, etc.

2.9

2.1

(0.8)

Yebisu Garden Place, etc.

4.5

3.6

(0.8)

Other area &other operations

1.3

0.9

(0.4)

Other area &other operations

1.9

1.2

(0.7)

Hokkaido

0.3

0.2

(0.1)

Hokkaido

0.6

0.5

(0.1)

General corporate

(0.7)

(0.6)

0.1

General corporate

(0.4)

(0.4)

0.0

Total

3.8

2.6

(1.2)

Total

6.6

5.0

(1.5)
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As an intrinsic part of people's lives, Sapporo will contribute to
the evolution of creative, enriching and rewarding lifestyles.

This document was prepared for the purpose of providing information to serve as a reference for investors in making investment decisions and not
for the solicitation of investment or any other similar such actions.
The earnings forecasts and forward-looking statements contained in this document were prepared based on the judgment of the Company as ofthe date of this document and include potential risks and uncertainties.
Actual published future results may therefore differ materially from the content of this document.
The Company shall not in any way be responsible or liable for any losses or damages resulting from the use of the information in this document.

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