2015
Sapporo Group Business Results Presentation
for the Nine Months Ended September 30, 2015

November 6, 2015

Sapporo Holdings Ltd.
URL http://www.sapporoholdings.jp/english

Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

1/23

Contents

1. Third-Quarter 2015 Topics

2. Overview of Third-Quarter 2015 Results

3. Revision of 2015 Full-Year Earnings Forecasts

Reference: Supplementary Information to Third-Quarter 2015 Results and Data

Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

2/23

1. Third-Quarter 2015 Topics

Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

3/23

Third-Quarter 2015 Group Topics
Consolidated earnings: operating income declines ¥2.2 billion y-o-y(billions of yen)

3Q 2014

3Q 2015

ChangeNet sales

379.3

388.1

8.7

OperatingincomeOrdinary
income

8.2

5.9

(2.2)

7.6

4.9

(2.7)

Net income

(6.6)

1.9

8.5

 In the Japanese Alcoholic Beverages Business, sales volume ofbeer and beer-type beverages declined to 93% of the same
period a year ago and operating income fell ¥2.9 billion
 On the other hand, domestic soft drinks sales volume wasstrong at 102% of the same period a year earlier. Occupancy
rate of Yebisu Garden Place reached 99% within the year andearning capacity is recovering Businesses other than Japanese Alcoholic Beverages posted
profit increase in 3Q but this was not enough to fill the gap.

Expanding the strengths
 Rebuilt the Black Label brand by appealing the flavor of draft beer; canned products were 107% of thesame period a year earlier
 The lemon-based drinks and coffee products, which are our strengths, were robust at 129% and 103%of the levels of the same period a year earlier as the various measures paid off

Growth strategy
Started distributing Treasury Wine Estates Japan’s imported wines and champagne Taittinger
 The Vietnamese beer business to relaunch products with new tastes and packages in November in abid to capture the market with a new strategy.
 Refurbishment of Yebisu Garden Place commercial area and Ginza 5-chome construction work
progressing steadily, to become secure revenue sources
Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

4/23

Third-Quarter 2015 Topics (1)Japanese Alcoholic Beverages%

 Sales volume of beer and beer-type beverages down 7% y-o-y (total demand down 1%)－ intensified competition in happoshu and new genre
Y-o-y change in beer sales volume

Japanese beer business<Beer> Jan – Sep unchanged y-o-y (total demand down 1%)
 Canned products up 7% y-o-y, as Black Label’s store coverage rateincreases Perfect Black Label Antenna Shop opened in Osaka, Tokyo, boosting
brand image
 Jan – Sep beer breakdown (volume) 2014: 54%→2015: 57%

Total demand
Sapporo
Jan

Feb

Mar

Apr

May

Jun

July

Aug

Sep

% Y-o-y change in happoshu + new genre sales volume

Jan

Feb

Mar

Apr

May

<Happoshu + new genre> Jan – Sep down 14% y-o-y (total
demand down 2%)

Total demand Increase in new products from competitors primarily of functional
beverages and intensifying competition
 Goku Zero Jan – Sep sales volume: 2.93 million cases (4.45 million
cases in happoshu + new genre in previous year) Mugi to Hop The gold Down 10% y-o-y: measures including the relaunch at
the beginning of the year was contrary to our expectation

Sapporo<Revision of beer and beer-type beverage annual sales volume outlook>

Jun

July

(10,000 cases)

Aug

Sep

<Beer + beer-type beverage Jan-Sep sales (incl. liquor tax)>
(¥bn)
Beer
Happoshu
New genre
Total

2014
112.0
8.7
51.3
172.1

2015
111.7
13.7
38.8
164.2

Change(0.3)
4.9(12.4)(7.8)

Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

平成２７年度見通し
2015 outlook
年初計画
Initial plan修正後
Revised

Sapporo Draft Beer Black Label
サッポロ生ビール黒ラベル
Yebisu total
ヱビス計
(1)
Beer
①ビール計total(2)
Happoshu total
②発泡酒計
(3)
New
genre total③新ジャンル計
Beer, happoshu and new genre total
ﾋﾞｰﾙ・発泡酒・新ｼﾞｬﾝﾙ合計（①+②+③）(1)+(2)+(3)

1,600
1,600

1,600
1,600

差異
平成２６年度Change
2014

YoY
前年比
change

－ -

1,615
1,615

970 ▲30
(30)
970
2,918
2,930
2,918
2,930
1212
490 ▲151(151)
641 641
490
1,791
1,610
(181)
1,791
1,610
▲181

964
964
2,896
2,896
387
387
1,956
1,956

99%
101%
101%
101%
101%
127%
127%
82%
82%

5,350
5,350

5,238
5,238

96%

1,000
1,000

5,030
5,030 ▲320
(320)

5/23

Third-Quarter 2015 Topics (2)International
 North American beer business performed well; competition intensifying
in Vietnamese premium beer market; to review the strategy
North American beer business
Vietnamese beer business Focus on premium market; both Sleeman and Sapporo
USA sales increased
North American beer sales volume for Jan-Sep (Y-o-Y)
Sleeman Premium
Total
demand in total 103%
Canada
100%

Value

Total
demand in
U.S.

SapporoUSA

Domestic sales volume in Vietnam Competition in beer market isintensifying partly due to competitors
for Jan-Jun

entering the premium market
Fell 7% Y-o-Y Revised down initial annual sales plan3.5 years from full-fledged entry;
relaunch starting in Nov by
The value in 2013leveraging experience
is set as 100

Key points of relaunch: appeal novelty and further reflect
Vietnamese’ taste
Flavor: Retain Sapporo’s original flavor, pursue ease of drinking
Package: Unify the brand color to silver, adopt Japan’s Promise as
the brand tag linePrice: Pricing at the range that takes into consideration its
competitiveness in the premium category

U.S. soft drinks businessCountry Pure Foods newly consolidated from February[Former products]

Japan’s
Promise[New products]

Pursuing synergies with Silver Springs Citrus
Though orange juice prices are hovering high, we will
review transactions and prices to stem it
Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

6/23

Third-Quarter 2015 Topics (3)Food & Soft Drinks
 Domestic soft drinks sales volume were up 2% y-o-y (total demand was up 1%), while both
domestic food and overseas soft drinks businesses finished 3Q with increased sales
Lemon-based drinks and soup, which are our strength led
Domestic Food and Soft Drinks
the business; net sales were up 5% y-o-yDomestic food and soft drinks cumulative sales volume for Jan-Sep (Y-o-Y)
Totaldemand

POKKA SAPPORO

102

102

Lemon-based
products(flavorings)

Domestic softdrinksInstant soup (incl.
soups in a cup)

<Domestic soft drinks> Sales volume of 33.77 million cases (up 2% y-o-y) Lemon-based drinks: Introduced Kireto Lemon ENERGIE andKireto Lemon BEAUTE targeting adult female consumers: up 29%
y-o-y Coffee drinks: Reviewed prices of vending machines, sales havebeen strong: up 3% y-o-y<Domestic foods>
 Instant soup: Relaunched and differentiated Jikkuri Kotokoto series
for the fall/winter season: up 16% y-o-yTotal demand data: Source – Total for SM CVS formats by Intage SRI(nationwide retailer panel research)
Jan–Sep 2015 y-o-y comparison of cumulative sales amount for the lemon-based products market (Sapporo’s definition) and instant soup market

Strong overseas net sales up 3% year on year
(local currency base)Overseas Soft Drinks
Overseas soft drinks cumulative sales for Jan-Sep (local currency)

Enhancing production structure for sales expansion

POKKA brand net sales ratio
Singapore(Jan-Sep)

SG$ millions

Malaysia

Production start

Malaysia, newIndonesia

2014

2015

Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

MyanmarHalal certified

1977

Own plant○

1993

Joint venture with alocal company○

Own plant○

Exports
WithinSingapore

ProfileFall 2014
Summer 2016
plannedSummer 2016
plannedJoint venture with alocal company
Licensed production
by a local company

7/23

Third-Quarter 2015 Topics (4)Restaurants
 The restaurants business in Japan maintained net sales at about the same level as the previous
year while it reduced the number of unprofitable restaurants
Opened in April
Garden Terrace Lion
Restaurants business in Japan
Billionyen

24
20

Trends of Jan-Sep net sales and numberof Sapporo Lion outlets in Japan
20.1

19.3

19.6

2011 3Q 2012 3Q

2013 3Q

17.9

19.0

Outlets

18.9

16
12
8
4
0
2010 3Q

Net sales
Urban areas(excl. Kanto)*2
NagoyaOther

2014 3Q 2015 3Q

Number of outlets

Sapporo Lion outlets(168 outlets)
Central Tokyo
5 wards*1
Hokkaido
Kanto(excl. 23
wards)

 Sapporo Lion comparable-store sales wereup 4% y-o-y Jan-Sep: new opening 1: format change 5
 Harsh environment as raw ingredients andpersonnel expenses rose, driving forward
closure of unprofitable restaurants and improving
profitability
 Captured good locations, plans to open 4 outlets
including one new format in 4Q

Ibaraki Campus,
Ritsumeikan University(Ibaraki-shi, Osaka)

Tokyo 23
wards (excl.
5 wards)
26

 Expanding outlets at favorable
locations primarily in the Tokyo
metropolitan area
 Pursuing expansion mainly with
Ginza Lion and Yebisu Bar brands

Overseas restaurants business
GINZA LION BEER HALL conveying Sapporo
brand’s taste with 2 outlets in Singapore
1st: the Rodyk outlet

2nd: Suntec outlet*1: Chuo, Chiyoda, Minato, Shinjuku and Shibuya Wards*2: Sendai, Kyoto, Osaka, Kobe, Fukuoka

Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

8/23

Third-Quarter 2015 Topics (5)Real Estate Yebisu Garden Place improved office occupancy rate.
Drive forward refurbishment to boost attractiveness of the area
<Yebisu Garden Place>

Trend of average occupancy rate ofYebisu Garden Place office space (contract basis)

 Leasing of the space occupied by major tenants has been
completed and the occupancy rate has recovered Value up promotion
 Refurbished and reopened the first basement of Glass
Square dining area in June Planning to refurbish the dining areas on 38th and 39th
floors.

2014
1~2Q

2014
3~4Q

2015
1Q

2015
2Q

2015
3Q

2015
4Q est.

93%

77%

87%

91%

93%

99%

Yebisu Garden Place

Exterior design of the Ginza
5-chome redevelopment project<Ginza 5-chome redevelopment project>
 Construction work progressing steadily towards the opening
in Summer 2016
 To become a commercial facility which will be the landmark andinformation dissemination base at the Ginza 4-chome crossing
 11 floors above ground, 2 below
Total floor space 4,232㎡⇒7,382㎡
Major property overview, occupancy rates (averages for Jan–Sep 2015; contract basis).
Major rental properties inTokyo’s 23 wards

Site area (m2) Floor area (m2)Occupancy rate(%)

Yebisu Garden Place *1

56,943

298,00790%

Ebisu First Square

2,596

15,496100%

Ebisu Square

1,561

9,126

100%

Strata Ginza *2

1,116

11,411100%

No. of floors
40 floors above
ground, 5 below
12 floors above
ground, 1 below
7 floors above
ground, 1 below
13 floors above
ground, 1 below

Site areas are taken from the land registry. Floor areas are as per building certification.

<Real Estate for Lease as of Dec. 31, 2014>
Balance sheet value: approx. ¥207.8 billion*
Fair value: approx. 348.2 billion yen*Including Shibuya Sakuragaoka Square sold in Feb. 2015
(Book value as of the sale: approx. 9.6 billion)*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 922m2 of the site (sectional ownership) and 89.72% of the building (joint management)
Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

9/23

2. Overview of Third-Quarter 2015 Results

Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

10/23

Overview of Third-Quarter 2015 Results (1)Special factors in the business results from 1Q to 3Q (no change in items from 2Q)
Segment

Japanese Alcoholic
Beverages

International

International

Food & Soft Drinks

Factors
Change in reportable segment: New Sanko Inc.
Changed from Japanese Alcoholic Beverages to Restaurants(Changed retrospectively from 2014.)

Operatingincome impact

minor

minor

Account period change: Silver Springs Citrus
Initially, 9 months from Oct 2014 to Jun 2015 for 3Q→ consolidating the results for 12 months from Oct 2014 to Sep 2015

+approx.2.9bn(foreign exchange+0.4bn)New consolidation: Country Pure Foods
Consolidation started from Feb 24, 2015, when the stake was acquired+approx.10.6bn

Sale of Overseas restaurants businessIn Dec. 2014, sold the restaurant business in Hong Kong

-approx.4.0bn

minor

minor

minor

Restaurants

Change in reportable segment: New Sanko Inc.
Changed from Japanese Alcoholic Beverages to Restaurants(Changed retrospectively from 2014.)

Real Etate

Sale of sports facilities operator business

Real Etate

In Dec. 2014, sold the sports business and some lease properties
In Feb. 2015, sold Shibuya Sakuragaoka Square trust beneficiary right＜Impact of foreignexchange rates>

Net sales impact

Average rateduring theUS＄period(Jan-Sep) CAN＄

Copyright, 2014SAPPORO HOLDINGS LTD. All rights reserved.

2014

2015

102.94120.99

94.11

96.08

-approx.0.1bn-approx.0.8bn-approx.0.4bn-approx.0.7bn

Net Sales

Operating Income

Japanese Alcoholic Beverages―-0.2bnInternational

３.4bn

―

Food & Soft Drinks

１.0bn

―

11/23

Overview of Third-Quarter 2015 Results (2) Net sales: up Y-o-Y

・ Japanese Alcoholic Beverages: sales volume of beer andbeer-type beverages declined from the previous year due
to the impact of competition in happoshu and new genre.
・ International: sales increased significantly year on year,
as SSC was consolidated for 12 months due to the change
in the account period and new consolidation of CPF wasstarted in Feb 24, also partly due to the foreign exchange
rate impact.
・ Food & Soft Drinks: sales rose year on year due toincrease in sales of food and soft drinks in Japan and thoseof soft drinks overseas, despite the sale of overseas
restaurant business in Dec. 2014

 Operating income: down Y-o-Y

・Japanese Alcoholic Beverages: profit declined due largely

to sales decline in beer and beer-type beverages despite
cost reduction efforts primarily targeting fixed cost
・ Food & Soft Drinks: profit rose due to increased sales
volume of soft drinks in Japan and overseas
・ Restaurants: profit increased as sales at existing outletsrose Net income: up Y-o-Y

Extraordinary income:2015 ¥7.3 billion from the sale of trust beneficiary right of
Shibuya Sakuragaoka Square
Extraordinary loss:
2014 ¥2.3 billion in cost for demolition, removal, etc. in
the Sapporo Ginza Building redevelopment project; andrecording of 11.6 billion yen as a difference in liquor tax
amount due to revised tax rate category for Goku Zero.
2015 recorded impairment loss of 3.3 billion yen on idle
real estaes and employee welfare facilities
Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

YoY change(amount, %)2014 3Q

2015 3Q

Japanese Alcoholic
Beverages

203.4

195.2

(8.1)

(4.0)%

International

37.0

53.2

16.2

43.8%

Food & Soft Drinks

97.6

99.3

1.7

1.7%

Restaurants

20.5

20.5

(0.0)

(0.0)%

Real Estate

16.2

15.2

(1.0)

(6.3)%

Other

4.4

4.4

0.0

0.8%

Consolidated net sales

379.3

388.1

8.7

2.3%

Operating income before goodwill
amortization

11.1

9.0

(2.0)

(18.8)％

5.9

3.0

(2.9)

(49.5)%

(0.0)

(0.0)

0.0

―

1.6
(1.6)

1.5
(1.6)

(0.0)
0.1

(1.2)％
―

(1.2)

(0.5)

0.7

―

Restaurants

0.1

0.3

0.2

188.8%

Real Estate

6.2

6.1

(0.1)

(1.8)%

Other

0.2

0.0

(0.1)

(64.5)%

(2.9)

(3.0)

(0.1)

―

Consolidated operating
income

8.2

5.9

(2.2)

(27.7)%

Consolidated ordinary income

7.6

4.9

(2.7)

(35.6)%

(6.6)

1.9

8.5

―

(billions of yen)Japanese Alcoholic
Beverages
International
North America, other
VietnamFood & Soft Drinks

General corporate

Consolidated net income

12/23

Overview of Third-Quarter 2015 Results (3)

＋8.7
y-o-y

Factors Contributing to Change in Net Sales
Overseas
Soft drinks Foreign
Sales exchange
increase
1.0(billions of yen)
Increase

Decrease

1.0

(4.0)
3.8
ＳＳＣ
account periodchange:3 months

2014 3Q
Consolidated
Net sales

2.5

379.3
ＣＰＦ
Beer andnewly
beerconsolidation
genre
Wine and
sales
Other
volumealcoholicdeclinebeverages 10.6
sales
volume(7.7) decline

1.1

(1.2)

Sale ofrestaurants
business inHong Kong

Foreign Japaneseexchange food &Soft
drinks3.4
Salesincrease

Export NorthandAmerica
North
Soft
America drinks
Beer
sales
sales
declineincrease

(0.4)

(8.1)

16.2

Japanese Alcoholic
Beverages

International

Copyright, 2015SAPPORO HOLDINGS LTD. All rights reserved.

2015 3Q
Consolidated
Net sales

Sales
increase:
YGP andEbisu First
Square

0.6

388.1
(1.6)

・Sale of somerental properties
and sports
facilities operator
business
・Ginza 5-chome
redevelopment
project

1.7
Food & Soft Drinks(1.0)
Real Estate

13/23

Overview of Third-Quarter 2015 Results (4)Factors Contributing to Change in Operating Income
2014 3Q
Consolidated
Operatingincome

(2.2）
y-o-ｙ

(billions of yen)
Increase Decrease

8.2

Japanesefood &Soft
drinksSales
volumeincrease

Beer andbeer-genre
sales volume
decline/Product Mix

(3.9)

Non
alcoholicbeer sales
increase/
Production
costs
reduction

0.5

North America
Fixed costs
1.4
reduction

North America
Increase inVolume0.2

Sales
promotion
1.5
costs
increase Personnel

(1.1)

(2.9)

expenses andDepreciation
Costs
reduction

Japanese Alcoholic Beverages

(0.4)
0.2
・NorthAmericaHigheringredientscost
・Amount of
goodwillincrease（0.0）
International▲02015 3Q
Consolidated
OperatingincomeSales
increase:
YGP andEbisu First
Square（0.８）

Fixed costs
reduction

Production
(0.4)
cost
Sales
increasepromotion
costs
increase

0.7
Food & Soft Drinks

0.4

0.7

5.9
(0.8)

0.2

・Sale of somerentalComparableproperties
andstore sales
sportsfacilities
increase
operatorbusiness
・Ginza 5chome
redevelopme
nt project

0.2

(0.1)

Restaurants

Real Estate

14/23

Overview of Third-Quarter 2015 Results (5)Implementation Status of Stgrategic Investments(including ordinary capex, on a cash bases)① <Capital expenditure and lease fees>
Consolidated total: Approx. ¥20.1 billion
 Property, plant and equipment, intangible assets, lease fees,
etc.
Major items:
 Chiba factory bottling line/logistic center reconstruction(Japanese Alcoholic Beverages) : approx. ¥1.4 billion
Ojima factory paper pack line upgrade (Japanese Alcoholic
Beverages) : approx. ¥0.3 billion
Nagoya factory acquisition of adjacent land/ Production line
(Food & Soft Drinks) : approx. ¥0.6 billion
Ginza 5-chome redevelopment project construction work (Real
Estate): approx. ¥4.0 billion
Ebisu First Square construction balance (Real Estate): approx.
¥1.8 billion
Yebisu Garden Place value up (Real Estate): approx. ¥2.2
billionLease fees (Food & Soft Drinks, etc.): approx. ¥2.3 billion② <Other investments>
Consolidated total: Approx. ¥14.3 billion
 Long-term prepaid expenses, subsidiaries’ shares, investment
securities, etc.
Major items:
 Long-term prepaid expenses (Japanese Alcoholic Beverages,
Food & Soft Drinks): approx. ¥4.5 billion
Subsidiaries’ shares: approx. ¥8.4 billion(acquisition of CPF ¥4.8 billion, etc.)
Investment securities, etc.: approx. ¥1.4 billion①+② <Jan-Sep 2015 strategic investment total>(incl. ordinary capex, on a cash basis)

 Approx. ¥34.4 billion

Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

Direction of Long-Term Strategic Investment
 We will continue to actively carry out strategic investments
for growth.
 The scale of strategic investment from 2012 to 2016 isanticipated to be ¥150 billion to ¥200 billion (in principle,
funded from accumulated operating cash flow).
 Changes in Jan-Sep strategic investments– Including ordinary capex (approx. a half of strategic
investments)– 2012 strategic investment total: Approx. ¥56.4 bn(Full year: Approx. ¥65.7 bn)– 2013 strategic investment total: Approx. ¥17.6 bn(Full year: Approx. ¥23.5 bn)– 2014 strategic investment total: Approx. ¥21.7 bn(Full year: Approx. ¥29.5 bn)– 2015 strategic investment total: Approx. ¥34.4 bn(Full year plan: ¥35.1 billion)(annual plan breakdown: capital expenditure worth ¥19.8 bn,other investments worth ¥15.3 bn）
Financing Status In Sep, issued five-year straight bond worth 10.0 billion yen atannual interest rate of 0.33%
 Credit ratings

JCR: A-

R&I: BBB+

15/23

3. Revision of 2015 Full-Year Earnings
Forecasts

Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

16/23

Revision of 2015 Full-Year Earnings Forecasts
 Net sales: down ¥11.0 billion from initial
forecast

2015
revisedforecasts

Change2014 results

Change

290.2

277.0

(13.2)

281.8

(4.8)

67.8

70.0

2.2

49.6

20.3

133.7

133.7

―

133.4

0.2

27.2

27.2

―

26.3

0.8

20.8

20.8

―

21.5

(0.7)

6.0

6.0

―

5.9

0.0

545.7

534.7

(11.0)

518.7

15.9

20.7

18.7

(2.0)

18.4

0.2

Japanese Alcoholic
Beverages

9.5

8.0

(1.5)

10.2

(2.2)

International

1.0

0.5

(0.5)

0.1

2.7
(1.7)

2.7
(2.2)

―
(0.5)

2.3
(2.1)

0.3
0.4
(0.1)

Food & Soft Drinks

0.7

0.7

―

0.1

0.5

Restaurants

0.9

0.9

―

0.2

0.6

Real Estate

7.9

7.9

―

7.6

0.2

Other

0.2

0.2

―

0.1

0.0

(3.9)

(3.9)

―

(3.9)

0.0

16.3

14.3

(2.0)

14.7

(0.4)

15.2

13.2

(2.0)

14.5

(1.3)

8.0

6.0

(2.0)

0.3

5.6

(billions of yen)2015 initial
forecasts

Japanese Alcoholic

Beverages（単位：億円）・ Japanese Alcoholic Beverages: revised down theannual sales volume of beer and beer-type beverages.
International
As a result, annual sales forecast was cut by ¥13.2
billion.
Food & Soft Drinks
・ International: consolidating the results of SSC for 15
Restaurants
months from Oct. 2014 to Dec. 2015 in the U.S. softdrinks business due to change in accounting period.
Real Estate
In addition, new consolidation of CPF was brought
Other
forward by 1 month compared with the initial plan.
On the other hand, annual beer sales volume forecast
Consolidated net salesof the Vietnamese business was revised down.
As a result, full-year net sales forecast was raised byOperating income before¥2.2 billion.

 Operating income: down ¥2.0 billion
from initial forecast

・ Japanese Alcoholic Beverages: down ¥1.5 billion,
although we worked to reduce costs, etc. tosupplement the marginal profit decline resulting fromthe revision of beer and beer-type beverage sales
volume forecast.
・ International: down ¥0.5 billion due to the reduced
beer sales volume forecast of the Vietnamese
business.

 Ordinary income: down ¥2.0 billion
from initial forecast ・ Reduced by ¥2.0 billion
reflecting the decline in operating income.

 Net income: down ¥2.0 billion frominitial forecast ・ Reduced by ¥2.0 billion

reflecting the decline in operating income and loss ondevaluation of investment securities.

goodwill amortization

North America, other
VietnamGeneral corporate

Consolidated operating
incomeConsolidated ordinary
incomeConsolidated net income

Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

17/23

Reference: Supplementary Information to
Third-Quarter 2015 Results and Data

*For information on the profitability of each business, please see theSupplementary Information to our Earnings Report.

Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

18/23

Reference Material (1) Japanese Alcoholic Beverages:
Beer and Beer-type Beverages Data
＜Beer and beer-type beverages sales volume change (Jan-Sep)＞＜Core brand sales volume Y-o-Y change (Jan-Sep)＞
Total
demandSapporo10,000 cases
Beer, happoshu, newgenre

Happoshu, new genre

Beer

Beer, happoshu, BlackLabel
new genre

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

＜3 core brand sales volume change (Jan-Sep)＞

Yebisubrand total

Mugi to Hop
The gold2015<4Q highlights><Yebisu brand extension>

Yebisu Fuyu no Koku

Fukami Ajiwau Yebisu

Limited to year-end gifts
Partly using winter barleymalt. Deep golden color
and rich taste

Increased malt
Aged about twice longer
Deep body, concentrated
flavor

<100% malt beer’s 30th anniversary this year>
Sapporo Classic
2010

2011

2012

Black Label Yebisu brand
total

2013

2014

Mugi to Hop
The gold total

Copyright, 2015SAPPORO HOLDINGS LTD. All rights reserved.

2015

Malt 100%, distribution limited to Hokkaido
Continuous sales increase for 14 years (2014)
up 8% in Jan-Sep y-o-y

19/23

Reference Material (2) Japanese Alcoholic Beverages:
Multilayers
Promoting diversification of product offerings

10.0
8.0

<Japanese Alcoholic Beverage Business
Jan-Sep sales breakdown by category>Jan-Sep net sales
195.2 billion yen

High-end Japanese wine
Grande Polaire series

6.0

Wine Japanese
wine

9.3

8.9

7.4

7.8

8.3

4.1

4.5

4.9

3.3

3.3

3.4

3.9

3.7

2011

2012

2013

2014

2015

4.2

4.2

4.2

2013

2014

2015

9.3

10.4

10.3

2013

2014

2015

3.3

3.3

2014

2015

5.3

5.1

4.0
2.0

Beer
Happoshu, new genre

5.0Wine, spirits

4.0Japanese liquor
RTD, non-alcoholic
beverages, etc.

3.0
2.0
1.0

Spirits
3.4

1.1

2011

Strategic partnership agreements with
Treasury Wine Estates Japan (TWE) and Taittinger

Jan-Sep sale value (billions of yen)

Imported
wine

10.0
8.0
6.0

2012

Japanese
liquor 7.8
6.3

4.0

 Proposing global brands to the growing fine wine* market
 Sales agreement of seven additional brands with TWE
 Sales agreement with world-class champagne manufacturer
Taittinger*Medium to high-end wines priced 1,500 yen or above[TWE’s core brands]
・Penfolds: Australian wine・Matua: New Zealand wine・Chateau St.Jean: American wine

2.0

2011
4.0
3.0
2.0

RTD
2.5

2.1

1.6

1.0

2011
Copyright, 2015SAPPORO HOLDINGS LTD. All rights reserved.

2012

2012

2013

20/23

Reference Material (3) International: DataSLEEMAN Net Sales in Local Currency (Jan-Sep)(before elimination of inter-company transactions)

Overseas expansion of SAPPORO brand
Trend of overseas sales volume of SAPPORO brand products (Jan-Sep)(10,000 cases)

Sapporo USA Net Sales in Local Currency (Jan-Sep)(before elimination of inter-company transactions)

Sales Breakdown by Geographic Area
(Jan-Sep)

Oceania,
etc.

Oceania,

Asia

etc.

Asia
North
America
North
America

2015

2010
North America: Canada, U.S.
Asia: Vietnam, Singapore, South Korea, etc.
Oceania, etc.: Australia, Europe, etc.
Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

21/23

Reference Material (4) Food & Soft Drinks: Data
Food & Soft Drinks<Soft Drinks (Japan): POKKA SAPPORO Food & Beverage Ltd.>POKKA SAPPORO Food & Beveragesales composition (Jan-Sep)

Japanese soft drinks sales volume
composition by genre (Jan-Sep)

Soft drinks
Food

¥62.3
billionCarbonatedCommercial
use

Coffeedrinks 24%

Other
22%

Water

<Lemon-based drinks> Japanese soft drinks sales composition
by sales channel (Jan–Sep)

33.77
millioncases

Over thecounter
Lemon-based
drinksUnsweetened
tea

33.77 Vending
machines*
millioncases*Vending machines (end of Sep)
Own brand machines : about
95,000 ＋ Multi-brand Machines<Restaurants (Domestic): POKKA CREATE Co., Ltd.><Soft Drinks (overseas): POKKA Corporation (Singapore) Pte. Ltd.><Singaporean non-chilled juice market>
2014 (Apr. 2014 to Mar. 2015)
Achieved top market share *It is growing into the revenue pillar
following tea drinks*Based on Nielsen MarketTrack(Copyright C 2015, The Nielsen Company)

Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

 CAFÉ de CRIÉ has been actively pursuing opening
new outlets in new areas and proposal of new menu
items. Net sales have been up 6% on year and strong
 Aiming to expand in new markets such as intrahospital and suburban-type cafes.
Outlets: 184 (as of Sep 30, 2015)(Directly operated: 95 outlets; FC: 89 outlets)
Hokkaido 3, Kanto 101, Tokai 37
Kansai 32, Kyushu 8, Shikoku 3

22/23

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

The earnings forecasts and forward-looking statements appearing in this document were prepared by the
SAPPORO Group based on currently available information and its best assessment of potential risks anduncertainties. Actual outcomes may differ materially from forecasts due to changes in various underlying
factors.

Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

23/23