SAPPORO Group Management Plan 2011-2012

Solidifying the Growth Trajectory
February 10, 2011SAPPORO Holdings Ltd.
URL http://www.sapporoholdings.jp

Contents

Overview of 2010 Results
SAPPORO Group Management Plan 2011-2012• Financial targets• Basic strategies• Targets by Segment

Overview
Overview ofof 20102010 Results
Results

Overview of 2010 -ConsolidatedGrowth in both revenues and profits:
Net sales, operating income, ordinary income, and net income all up vs. 2009
Net sales increased ¥1.7 bn year over year to ¥389.2 bn. The Japanese Alcoholic
Beverages business booked unit sales growth for the first time in 6 years, Soft
Drink business performance was strong even after summer, and the International
Alcoholic Beverages booked sales growth in North America.
Operating income, ordinary income, and net income all grew substantially.

(billions of yen, except percentages)

YoY changes
2008

2009

2010

Amount%Consolidated net
sales

414.5

387.5

389.2

1.7

0.4%

Consolidated
operating income

14.6

12.8

15.4

2.5

19.4%

Consolidated
ordinary income

10.5

10.7

14.3

3.6

33.6%

Consolidated net
income

7.6

4.5

10.7

6.2

137.5%

Overview of 2010 Results -By SegmentOperating income growth in all businesses, except International Alcoholic Beverages which
saw a decrease due to upfront investment costs in Vietnam.
OperatingOperatingincome
income(billions of yen,
except percentages)

YoY changes
2008

2009

2010

Amount%Japanese Alcoholic
Beverages

7.7

7.4 *1

9.3 *2

1.8

24.3%

International
Alcoholic Beverages
Existing operations
Vietnam operations

0.9
0.9
-

0.6
0.6
-

0.5
0.8
-0.3

-0.1
0.2
-0.3

-27.7%
21.6%—

Soft Drinks & Food
Soft Drinks
Food

0.2
0.4
-0.1

0.3 *3
0.8
-0.5

0.5
1.2
-0.7

0.2
0.4
-0.2

74.8%
47.6%
—

Restaurants

0.5

-0.1

0.1

0.2

-

Real Estate

7.6

7.5

8.0

0.4

6.4%

Corporate andintercompany
eliminations

-2.3

-2.9

-3.0

-0.1

-

*4

*1. Adjustment for changes to accounting
policies from 2009 on: ¥2.2 bn increase(i.e., negative impact) in 2009
*2. Increase in depreciation on new sales
and logistics system etc.: ¥1.8 bn*3. Adjustment for changes to accounting
policies from 2009 on: ¥0.2bn increase(i.e., negative impact) in 2009

*4. Sold 15% stake in Yebisu Garden
Place in April 2008
Impact realized from 2008

Overview of 2010 Results -Past 5 YearsProfits grew substantially in 2010; operating income rose for a 4th straight year
OperatingOperatingincome,income,ordinary
ordinaryincome,income,and
andnetnetincomeincome(Income line
items)(billions of yen)

18

15.4

16

14.6

14

12.8

12.3

12
10

8.6

8.1
5.8

10.7

10.7

10.5

8
6

14.3

7.6
5.5
4.5

4
2.3
2
0
'06
Operating income'07
Ordinary income

'08

'09*

*Adjustment for changes to accounting
policies from 2009 on: ¥2.4 bn increase
Net income (i.e., negative impact) in 2009'10****Increase in depreciation on newsales and logistics system etc.:¥1.8 bn

Overview of 2010 Results -Results vs. Targets-

Performance
Performanceby
bySegment
Segmentvs.
vs.Targets
Targets*2010 targets are the full-year targets issued in Q2.
(billions of yen)

Net sales

Japanese
Alcoholic
Beverages
International
Alcoholic
Beverages
Soft Drinks &Food
Restaurants
Real Estate
Corporate andintercompany
eliminations
Consolidated
total

Operating income

EBITDA

2010
results

2010
targets

Diff.

2010
results

2010
targets

Diff.

2010
results

2010
targets

Diff.

278.8

280.0

-1.1

9.3

7.5

1.8

23.6

22.5

1.1

25.3

26.0

-0.6

0.5

0.8

-0.2

2.7

2.8

-0.0

34.4

33.7

0.7

0.5

0.5

0.0

1.2

0.8

0.4

27.0

26.8

0.2

0.1

-

0.1

0.7

0.7

-

23.5

24.5

-0.9

8.0

8.0

0.0

13.6

13.8

-0.1

-

-

-

-3.0

-3.3

0.2

-3.0

-3.3

0.2

389.2

391.0

-1.7

15.4

13.5

1.9

39.0

37.3

1.7

*EBITDA = Operating income + Depreciation and amortization + Amortization of goodwill

Overview of 2010 Results -Management IndicesFurther bolstered profitability and financial base and further strengthened foundations on which we will execute
our growth strategies
Japan Credit Rating Agency (JCR) raised Sapporo’s senior long-term debt rating by one notch to A–*2010 targets are the full-year targets issued in Q2.

Management
ManagementIndices
Indicesvs.
vs.Targets
Targetsand
andPreviousYear
Previous Year
Results vs. Targets
2010
results
Operating margin (%)(excl. liquor taxes)*For Reference: 2009 vs. 2010 Results

2010
targets

Change5.7％

5.0％

0.7 pp2010
results

2009年
results

Change5.7％

4.9%

0.8 ppFinancial liabilities(billion yen)(excl. lease obligations)
D/E ratio (times)

181.3

208.5

-27.1

181.3

196.7

-15.4

1.4 times

1.7 times-0.3 points

1.4 times

1.7 times-0.3 points

ROE (%)

8.9%

4.0%

4.9%

8.9%

3.9%

5.0%

JCR
JCRRatingRatingRevision
Revision(effected February 10, 2011)

Senior long-term debt
Before revision: BBB+ (Positive)

After revision: A– (Stable)

Supplementary
Supplementary Information
Information toto 20102010 Results
Results*For information on each business’s profitability, please also
see the Supplementary Information to our Earnings Report.

Japanese Alcoholic Beverages (1)Supplementary
SupplementaryInformation
Informationto
to2010
2010Results
Results

1. Strengthening alcoholic beverage marketing¾ Enhancing brand power by focusing resources on core brands¾ Yebisu, SAPPORO Draft Beer Black Label, Mugi to Hop¾ Further diversifying alcoholic beverages¾ Achieved sales target for new RTD product SAPPORO Nectar Sour Sparkling Peach¾ Wine: 4th straight year of operating income growth; Shochu: 3rd straight year of positive profit

2. Continued cost structure reforms¾ Efficient allocation of marketing budget and more flexible costmanagement¾ Consolidated domestic wine production into the Okayama Winery¾ Boosted production efficiency, e.g., consolidated brewery productionlines

Japanese Alcoholic Beverages (2)Boosted market share by generating YoY
growth in unit sales which substantiallyoutperformed total demand on a YoY basis

Growth in core Yebisu and Mugi to HopbrandsYebisuYebisubrand
brand

Beer,
Beer,happoshu,
happoshu,newnewgenre
genretotal
total

2010 unit sales as % of 2009 - Yebisu brand total％

115ヱビスブランド
Yebisubrand

ビール総需要Totalbeer demand

105

105.5
103.0

105

100.5
97.1

96.5

SAPPORO Hldg.

Total demand
当社 総需要

96.4

94.0

93.4

95

％

101.2

85

100.8

75

100
65

Jan-Mar

１-３月累計Jan-June
上期合計

Jan-Sept

１-９月累計Jan-Dec

97.5

１-１２月累計

Mugi
Mugito
toHop
Hop

96.3

2010 unit sales as % of 2009 - Mugi to Hop
130

％

麦とホップ
Mugi to Hop
126.3
124.3

123.8

Total
new genre demand
新ジャンル総需要
123.5

95

97.9

97.6

Jan-Sept
１-９月累計Jan-Dec
１-１２月累計

95.9

93.6

120

114.1
111.0

111.1

110

109.6

90
100

Jan-Mar
１-３月累計Jan-June
上期合計

Jan-Sept
１-９月累計Jan-Dec
１-１２月累計

Jan-Mar
１-３月累計Jan-June
上期合計International Alcoholic Beverages
Supplementary
SupplementaryInformation
Informationto
to2010
2010Results
Results

Growth in North American business
Sales in Local Currency (Jan-Dec)

As in 2009, again outperformed
total demand in Canada in 2010

300
262.4
241.7

250
212.9

SLEEMAN (Canada)¾ Boosted sales throughmarketing emphasis onpremium brands

221.7

200
150
2007

2008

2009

•

2010

SLEEMAN
(CAN$
millions)
Sleeman（百万CANﾄﾞﾙ）Aggressive marketing
campaign including
television commercials

Unit sales (YoY)

’09

’10

SLEEMAN brand

110%

105%

Total Canadiandemand

98%

Est.
100%

Sales in Local Currency (Jan-Dec)
50
42.9

41.9

SAPPORO USA

40

30
2007

Outperformed total demand for imported
beers in the US in 2010

46.9

46.7

2008
2009
USA（百万(US$
millions)
USA
USﾄﾞﾙ）

2010¾ Expanding from JapaneseAmerican market base into thewider US and American-Asianmarkets• Over 50% growth inAmerican-Asian market

Unit sales (YoY)

’09

’10

SAPPORO USA
Inc.

87%

113%

Total US demandfor imported beer

90%

104%

Soft Drinks BusinessSupplementary
SupplementaryInformation
Informationto
to2010
2010Results
Results

Unit sales up 2% YoY
Steadily implemented cost
structure reforms

Soft Drinks: Cost structure reforms complete*(billions of yen)

3 straight years of growth inoperating income and operating
marginYoY cost gains realized*
1. Improvement of existing operations
2. Organizational consolidation andheadcount adjustments
3. Cost minimization throughout all value
chains10

Soft Drinks Operating Income and Operating Margin(billions of yen)

1.5

4%

Operating Income※Operating margin
1
0.5

3%

2007

1%
2008

0.4

0

2007
-0.5

-0.8

2008

0.8

2009

1.2

2010

*Operating income excluding foodoperations included in Soft Drinks
segment 2009
2010

5%
4%
2.8

2%
1%

0

1
2008

2009

2010

0%
-1%
-2%
-3%
-4%

-1

3.6

3%

-5%

¾ ¥3.6 bn in cost reductions over 3 years

Real Estate Business (1)Supplementary
SupplementaryInformation
Informationto
to2010
2010Results
Results
Occupancy rates are averages for Jan-Dec

1. Boosting value of existing properties
Major rental properties
in central Tokyo

Site area(m2)

Floor area(m2)

Occupancyrate(%)¾ Maintained occupancy

Yebisu Garden Place *1

56,943

298,00796%¾ At end Dec 2010, central
Tokyo office occupancy wasaround 91%. By contrast,
occupancy rates for our majorbuildings appear in the table atright.

Seiwa Ebisu Bldg.

2,617

10,40099%

Ebisu Square

1,561

9,126

99%

Shibuya Sakuragaoka
Square

1,200

9,268

100%

SAPPORO Ginza Bldg.

530

4,232

98%

1,117

11,411100%¾ Set appropriate rent levels

Strata Ginza *2

2. Growth initiatives¾ Property development• Shinjuku Square office building complete inJune¾ New property acquisitions• Acquired Shibuya Sakuragaoka Square
office building complete in April(at Dec. 31)

No. of floors
40 floors above
ground, 5 below
6 floors above
ground, 1 below
7 floors above
ground, 1 below
10 floors above
ground, 1 below
10 floors above
ground, 4 below
13 floors above
ground, 1 below

Site areas are taken from the land registry. Floor areas are as per building certification.
*1. Figures are for entire property. SAPPORO holds an 85% stake (jointly managed).
Floor numbers are for office buildings only. Occupancy rates are for office areas
only.
*2. Figures are for entire property. The site is sectionally owned; the building jointly
managed.

Real Estate Business (2)Overview
Overviewof
ofOur
OurRealRealEstate
EstateBusinessBusiness

Real Estate business operating income is primarily from real estate leasing.
Our real estate leasing assets are concentrated in central Tokyo (see prev. page).
OperatingOperatingincome
incomeJan-Dec ’09

EBITDAEBITDA(billions of yen)

Jan-Dec ’10*EBITDA = Operating income +Depreciation and amortization

Chng.

Jan-Dec ‘09

Jan-Dec ‘10(billions of yen)
ChangeReal estate leasing

Real estate leasing
Tokyo’s 23 wards

6.5

6.7

0.1

Other areas

0.9

0.8

-0.1

Tokyo’s 23 wards
Other areas
Real estate leasing
total

Real estateleasing total
Real estate sales
Other operations*

7.5

7.5

0.1

0.2
-0.2

0.5
-0.1

0.3
0.0

Real estate sales

Total

7.5

8.0

0.4

Total

Other operations*

11.6

11.4

-0.2

1.6

1.5

-0.1

13.3

12.9

-0.3

0.2
0.1

0.5
0.1

0.3
0.0

13.6

13.6

0.0

*“Other operations” includes back-office operations.

Real
Realestate
estateleasingleasingassets
assets(at Dec. 31)(billions of yen)

Carry value on consolidated B/S: 173.6
Fair value at end 2010:

313.8

Difference:

140.2

For details, please see our Earnings Report.

Execution of Growth Strategy
Steady executed initiatives to lay the groundwork for future growth• •Entry
Entryinto
intoVietnamese
Vietnamesebeer
beerbusinessbusiness→Began
brewery
construction→ Began brewery constructionininJuly
July(slated(slatedfor
forcompletion
completionininautumn
autumn2011)
2011)
Conducted
test-marketing
with
an
eye
to
full-fledged
marketentry
2012,
Conducted test-marketing with an eye to full-fledged market entry 2012,and
andwewe
continued
continuedto
toformulate
formulateaamarketing
marketingstrategy
strategyand
andbuild
buildaadistribution
distributionnetwork
network• •Enteredintobusinessalliance
withSouth
Korean
Maeil
Dairies
Co.,
Ltd.
In
Entered into business alliance with South Korean Maeil Dairies Co., Ltd. InNovember
November
→
Will
start
beer
sales
in
South
Korea
in
2011
→ Will start beer sales in South Korea in 2011
• •Entered
Enteredinto
intoaabusinessbusinessalliancealliancewith
withKyodo
KyodoMilk
MilkIndustry
IndustryCo.,
Co.,Ltd.
Ltd.InInNovember
November→Aimtocooperate
on
R&D,
raw
material
procurement,
andlogistics;→ Aim to cooperate on R&D, raw material procurement, and logistics;specifics
specificsto
tobe
bedecideddecidedby
bydiscussion
discussion

Advancing to the next stage in 2011
• •Tie-up
Tie-upwith
withPOKKA
POKKACorporation
Corporation→→Produced
Produceddefinite
definiteresults,
results,e.g.,
e.g.,strengthening
strengtheningvending
vendingmachinemachineoperations,operations,engaging
engaginginin
joint
jointproductproductdevelopment,
development,cooperating
cooperatingon
onsales,sales,optimizing
optimizingproduction
productionoperations,operations,
reducing
procurement
costs,
building
joint-logistics
operations
reducing procurement costs, building joint-logistics operations

SAPPOROSAPPOROGroup
GroupManagement
ManagementPlan
Plan2011-2012
2011-2012Management
Management Targets
Targets

Long-term Management Strategies:
SAPPORO Group’s New Management Framework
Basic approach: Working steadily toward long-term goals while also boldly
revising resource allocations, executing strategic investments, and enhancing
competitiveness through aggressive management
Goals (for 2016, 140th anniversary of founding)• Consol. sales ¥600 bn (incl. liquor taxes)¥450 bn (excl. liquor taxes)• Consol. operating income ¥40 bn• Operating margin 9% (excl. liquor taxes)• ROE
8% or higher• D/E ratio
Around 1:1• Four basic strategies for growth
1. Concentrate resource on high-value-added products andservices
2. Engaging in strategic alliances aimed at building competitive
advantage and expanding business3. Actively expanding overseas operations
4. Expanding group synergies on the strategic and operational
frontsFood value creation
2007

Creating comfortablesurroundings(Announced Oct. 2007)

Position of SAPPORO Group Management Plan 2011–2012
Solidify the growth trajectory to enable the SAPPORO Group’s dynamic
future growth.
Strengthening Group’s
Business Foundations

Solidifying the
Growth Trajectory

Dynamic Growth
Strategic
Targets
140th anniv.
of Group’s
founding(2016)

2011–2012

2007

Groundwork for future
growth strategies

Bolster earnings baseand financial base

2007

2008

2009

Enhanceexistence value
in new areas
through growthstrategies
Build uniquecompetitive
advantages in eachbusiness
2010

2011

2012

2013

2014

2015

2016

2011-2012 Management Targets
Producing solid gains toward achieving the New Management Framework’s
targets.
Consolidated
Consolidated
Targets
Targets

2011 target

2012 target

2016 targets

2006 results2010 results

Consolidated
net sales*incl. liquor
taxes¥435.0 bn¥389.2 bn¥482.0 bn¥519.5 bn¥600.0 bn(excl. liquor
taxes)¥294.0 bn¥269.8 bn¥363.0 bn¥400.5 bn¥450.0 bn

Consolidated
operatingincome¥8.6 bn¥15.4 bn

¥18.0 bn

¥20.0 bn

(beforegoodwill
amort.)¥8.6 bn¥16.5 bn

¥21.5 bn¥24.0 bn

Consolidated
ordinary
income¥5.8 bn¥14.3 bn

¥15.5 bn

¥18.0 bn-

Consolidated
net income¥2.3 bn¥10.7 bn

¥6.0 bn¥8.0 bn-¥40.0 bn

*New synergistic effects derived from integration with POKKA Corporation are not included in targets.
*Assumed exchange rates: 2011-2012: US$ = ¥88, CAN$ = ¥872011-2012 Management Targets (continued)
Producing solid gains toward achieving the New Management Framework’s
targets.
Consolidated
Consolidated
Targets
Targets

Consolidated operating
margin*excl. liquor taxes

D/E ratio

ROE

2011 target

2012 target

2016 targets

2006 results2010 results

2.9%

5.7%

5.0%

5.0%

9.0%

2.1 times

1.4 times

1.6 times

1.5 times

Around 1:1

2.1%

8.9%

4.8%

6.0%
8% or higher

Before goodwill
amortization

2.1%

9.8%

7.6%

*New synergistic effects derived from integration with POKKA Corporation are not included in targets.

9.0%

2011-2012 Management Targets -Net Sales by Segment-

Net sales

Targets
Targetsby
bySegment
Segment

2010 results

2011 targets

2012 targets

Japanese Alcoholic
Beverages
International
Alcoholic Beverages¥279.3 bn¥286.7 bn¥290.6 bn¥25.3 bn

¥29.2 bn

¥32.2 bn

Soft Drinks¥33.9 bn

¥37.4 bn

¥39.8 bn

POKKA Group—¥78.9 bn¥103.9 bn

Restaurants¥26.4 bn

¥25.5 bn

¥26.3 bn

Real Estate¥23.5 bn¥23.0 bn

¥24.7 bn

Other Businesses¥0.6 bn¥1.3 bn¥2.0 bn

Total¥389.2 bn¥482.0 bn¥519.5 bn*Segmentation used for earnings forecasts: From the first quarter of fiscal 2011, the Company adopted the Accounting Standard forDisclosures about Segments of an Enterprise and Related Information (and its associated Guidance). In accordance with the standard
and guidance, the Company identifies segments using a simplified method based on the management approach.
*The POKKA segment (“POKKA Group”) represents figures for POKKA Corporation from Q2 onward.
Note that the figures are net of goodwill amortization that will arise upon the acquisition of POKKA shares (2011: ¥1.2 bn; 2012: ¥1.4 bn).
*New synergistic effects derived from integration with POKKA Corporation are not included in targets.
*Assumed exchange rates: 2011-2012: US$ = ¥88, CAN$ = ¥872011-2012 Management Target -Operating Income by Segment-

Operating income

Targets
Targetsby
bySegment
Segment

2010 results

2011 targets

2012 targets

Japanese Alcoholic
Beverages
International
Alcoholic Beverages¥9.2 bn¥9.8 bn¥10.6 bn¥0.5 bn¥0.1 bn¥0.3 bn

Soft Drinks¥1.2 bn¥0.7 bn¥0.7 bn

POKKA Group—¥2.3 bn¥2.4 bn

Restaurants¥0.1 bn¥0.4 bn¥0.6 bn

Real Estate¥8.0 bn¥8.3 bn¥9.0 bn

Other Businesses–¥0.7 bn–¥0.4 bn–¥0.3 bn

Corporate andintercompany eliminations–¥3.0 bn–¥3.2 bn–¥3.3 bn

Total

¥15.4 bn

¥18.0 bn

¥20.0 bn

*Segmentation used for earnings forecasts: From the first quarter of fiscal 2011, the Company adopted the Accounting Standard forDisclosures about Segments of an Enterprise and Related Information (and its associated Guidance). In accordance with the standard
and guidance, the Company identifies segments using a simplified method based on the management approach.
*The POKKA segment (“POKKA Group”) represents figures for POKKA Corporation from Q2 onward.
Note that the figures are net of goodwill amortization that will arise upon the acquisition of POKKA shares (2011: ¥1.2 bn; 2012: ¥1.4 bn).
*New synergistic effects derived from integration with POKKA Corporation are not included in targets.
*Assumed exchange rates: 2011-2012: US$ = ¥88, CAN$ = ¥87

BasicBasic Strategies
Strategies

Basic Strategies
We will solidify our growth trajectory through three basic strategies andby generating synergies through our integration with POKKA
Corporation.
I. Growth in new areas
We will pursue definitive
results and enhance ourexistence value in new
areas identified
based on our
growth strategy

II. Growth in all
businesses
Harnessing the strengths
offered by our brands andenterprise resources, we willbuild unique competitive
advantages.

III. Bolster management
capabilities that underpin
growthWe will bolster our groupmanagement framework
to meet thechallenges of theGroup's expansion anddiversification

Synergies generated through integration with POKKA Corporation

Solidify the growth trajectory, generate dynamic growthBasic Strategies Aimed at Solidifying the Growth Trajectory(Supplementary Information)
I.I.Growth
Growthin
inNew
NewAreas
Areas★ Producing definitive results by laying the groundwork for growth.
1. Expanding Business in the Food Sector (Soft Drinks & Food)• Produce definitive results in areas based on our growth strategies so far• In the aim of entering new markets where we can give play to the Group’s
strengths and knowhow, continue making acquisitions and alliances andmoving into new product categories• Go beyond the “alcoholic beverages” label in the International Alcoholic
Beverages business and expand the scope of our International Operations
2. Actively Expanding in Asia
• Success of Vietnamese beer business (plant slated for completion in autumn
2011, full-fledged market entry in 2012)• Expand beer business in Asian markets

Basic Strategies Aimed at Solidifying the Growth Trajectory(Supplementary Information)
II.
II.Growth
Growthin
inAll
AllBusinesses
Businesses★ Reinforcing the Group’s foundations by generating further growth in all businesses.
• Japanese Alcoholic Beverages

Bolster brands by concentrating resources on core products
Offer customers new value propositions
Excitement and joy that goes beyond
mere customer satisfaction

Sustained growth• Restaurants Business
Actively rollout the Yebisu Bar format, a new format that taps into synergies withSAPPORO Breweries Ltd.
• Real Estate Business
Maintain and bolster stable earnings platform by enhancing the value of prime
property holdings

Strategic Investment
2010
2010results
results&&2011
2011planplan

2010–2011 plan

2010

2011

¥33.2 bn

¥31.8 bn

*Major strategic investments for 2010
Vietnam brewery construction:¥1.4 bn
New real estate acquisition/development: ¥10.0 bn

2010 results

2010-2011 plan

Vs. prev. plan+¥23.0 bn increase¥65.0 bn+¥23.0 bn

Total of ¥23.4 bn
generated in 2010 fromsale of Osaka plantsite and disposal of
Keiyo logistics center¥24.5 bn88.0 bn2011 plan¥63.5 bn

Investment
InvestmentPolicy
Policyfor
for2012
2012Onward
Onward• •Continue
Continueactively
activelymaking
makingstrategic
strategicgrowth
growthinvestments
investmentsto
todrivedrivethetheSAPPOROSAPPOROGroup’sGroup’sgrowth.
growth.
• •Envisioning
Envisioning¥150–200¥150–200bn
bnininstrategic
strategicinvestments
investmentsover
over2012–2016
2012–2016*Strategic investments include ordinary capital expenditures.

Business
Business Plans
Plans

Japanese Alcoholic Beverages
To achieve sustained growth, we will aim toprovide the greatest excitement and joy tocustomers in the beer, shochu, wine, and RTD(ready-to-drink) sectors while implementing
structural reforms and working vigorously toachieve our sales and profit targets.

Quantitative
targets

2010 results

2011 targets 2012 targets

Net sales¥279.3 bn¥286.7 bn¥290.6 bn

Operatingincome¥9.2 bn¥9.8 bn¥10.6 bn

Management
ManagementPlan
Plan2011-2012
2011-2012Key
KeyPoints
Points
1. Strengthening alcoholic beverage marketing
We will endeavor maintain the previous year's momentum and increase sales by winning
additional customer support using a select-and-focus approach (selectively focusing resourceson key areas).
(1) Enhancing brand power by focusing resources on core products
We will enhance our presence in the beer and new-genre markets by strategically focusing resources
on Yebisu, SAPPORO Draft Beer Black Label, and Mugi to Hop, which account for three-quarters ofcase sales.

MarketingMarketingTheme:
Theme:“Flavors“Flavorsof
ofExcitement
Excitementand
andJoy!”Joy!”
Campaign
Slogan:“Bringing
More
Cheer
to
Your
‘Cheers!’”
Campaign Slogan: “Bringing More Cheer to Your ‘Cheers!’”Japanese Alcoholic Beverages
Management
ManagementPlan
Plan2011-2012
2011-2012Key
KeyPoints
Points(continued)(continued)

Launch SAPPORO Premium Freein March, a new product thatprovides a strong, full flavor tosatisfy beer lovers.

(2) Laying the groundwork for growth in expanding areas
To lay the groundwork for growth we will offer products that embody SAPPORO's strengths in the
non-alcoholic beer market, which we expect to expand in line with market changes, and in themarket for RTD beverages, which are highly substitutable for household beers.
(3) Expansion of the wine and shochu sectors
Over the medium term, we intend to expand our non-beer alcoholic beverages operations, which
include RTD beverages, to a scale capable of generating annual operating income of ¥2.0 billion.
We will do this by boosting brand power and offering innovative value propositions.
2. Strengthening the operating base
• To achieve our financial targets, we will implement management-driven projects to resolve issues,
especially with respect to critically important cross-organizational priorities such as cost structurereforms and organizational strengthening.
• In cost structure reforms in particular, our activities will be directed at achieving ¥3.0 billion in cost
reductions from 2011 to 2013.

International Alcoholic Beverages
We will strengthen and expand our brand in North
Quantitative
America and Asia as our top priorities while also
targets
expanding beyond our traditional alcoholic beverages
operations to transform the International Alcoholic
Net sales
Beverages business into broader International
Operations

Management
ManagementPlan
Plan2011-2012
2011-2012Key
KeyPoints
PointsOperatingincome2010 results 2011 targets 2012 targets¥25.3 bn

¥29.2 bn

¥32.2 bn¥0.5 bn¥0.1 bn¥0.3 bn

1. Growing our North American business(1) Marketing strategies• SLEEMAN will continue to strive for growth above the market average through further investment inmarketing of premium brands.
• SAPPORO USA will continue to position itself for additional growth by expanding its focus beyond
the Japanese-American community to encompass the wider American and American-Asian markets.
• We will also consider mergers, acquisitions, and alliances for further business expansion in the US.
(2) Bolstering production capabilities
To accommodate future sales growth, we intend to establish an optimal production structure acrossNorth America by conducting a review of SLEEMAN’s production systems and considering production
facilities expansion, consignment production, and M&A activities.
(3) Cost structure reforms
At SLEEMAN, we will strive for further improvements in product quality and cost efficiency byimplementing quality control, process stabilization, and SKU (stock-keeping unit) reduction.

International Alcoholic Beverages
Management
ManagementPlan
Plan2011-2012
2011-2012Key
KeyPoints
Points(continued)(continued)
2. Expanding into the Asian market(1) Operations in Vietnam• In 2011, we will continue brewery construction with completion scheduled for autumn while also
strengthening our marketing operations through ongoing test-marketing and development of a
distribution network.
• In 2012, we will launch a marketing program that includes media advertising and go into full-swing
with sales as we attempt to quickly capture market share and establish the SAPPORO brand in
Vietnam.
• We will also endeavor to expand SAPPORO brand sales in countries surrounding Vietnam.
(2) Other business development in Asia
• In Singapore, we will continue to expand our sales channels and enter the household market incooperation with POKKA Corporation.
• In South Korea, a market that we reentered last year, we will begin full-scale beer sales through thesales network of alliance partner Maeil Dairies Co., Ltd., a major South Korean dairy goods
manufacturer.
3. Activities to expand the scope of business
While making the alcoholic beverage business our core business, we will continue to pursue activities
in new businesses in which we can demonstrate group synergies, including mergers, acquisitions, andalliances.

Soft Drinks
The Soft Drinks business will pursue a growth strategy basedon brand-building and undertake measures designed boost its
operating margin, under our corporate vision ," For everyone's
smile, we will provide unforgettable taste with infinite
passion"

Quantitative
targets

2010 results 2011 targets 2012 targets

Net sales¥33.9 bn

¥37.4 bn

¥39.8 bn

Operatingincome¥1.2 bn¥0.7 bn¥0.7 bn

Management
ManagementPlan
Plan2011-2012
2011-2012Key
KeyPoints
Points
1. Marketing strategies• Enhancing our brand power- We intend to strengthen our brand power by concentrating marketing investment and sales efforts on core
brand products.
-We will also work to improve our product development infrastructure with an eye to the creation of new
high-value-added products.
2. Cost structure reforms• Implementing our cost structure reform program
We will implement cost structure reforms throughout the entire value chain using a select-and-focus
approach (selectively focusing resources on key areas).

Restaurants
We will work to invigorate existing restaurants andQuantitative
targets
develop formats differentiated from the competition.
We will also undertake cost structure reforms from a
Net sales
medium-term perspective to enable the business toweather economic change.

Management
ManagementPlan
Plan2011-2012
2011-2012Key
KeyPoints
PointsOperatingincome2010 results 2011 targets 2012 targets¥26.4 bn

¥25.5 bn

¥26.3 bn¥0.1 bn¥0.4 bn¥0.6 bn

1. Positioning for growth(1) Measures for existing restaurants
To increase customer traffic, we will continue to conduct promotional campaigns and boost sales
activities directed at corporate customers.
(2) New restaurant opening strategy• In 2011, we plan to open new restaurants totaling around 500 tsubo (approx. 1653 square meters) insize.
• We will roll out the new Yebisu Bar format that takes advantage of synergies with SAPPOROBrewery.
2. Cost structure reforms• Cost reductions
We will implement cost structure reforms by closing unprofitable restaurants (six closures are plannedin 2011) and reducing rent and other fixed costs while at the same time controlling personnel expenses
through tighter work-shift management.

Real Estate
We will work to maintain and reinforce our stableprofit structure and enhance the value of the
SAPPORO Group's properties. We will carefully
screen new prospects and acquire only prime
properties.

Management
ManagementPlan
Plan2011-2012
2011-2012Key
KeyPoints
PointsQuantitative
targets

2010 results 2011 targets 2012 targets

Net sales¥23.5 bn¥23.0 bn

¥24.7 bn

Operatingincome¥8.0 bn¥8.3 bn¥9.0 bn

1. Enhancing the value of our properties(1) Value enhancement of Yebisu Garden Place• We will seek to maintain rents at appropriate levels and to maintain and increase the occupancy rate
through an increased focus on value and tenant satisfaction.
• We will endeavor to enhance the appeal of the area and increase the number of visitors through shopand restaurant renovation.
(2) Embarking on redevelopment of properties in the Ginza and Ebisu areas
We will embark on measures to boost future earnings. Specifically, we will enhance the value of ourprime properties, begin preliminary preparations to reconstruct the SAPPORO Ginza Building and the
Seiwa Ebisu Building.
2. Acquiring new assets
We will continue to carefully screen properties, taking into consideration Group investment priorities
and return on investment.
YebisuGarden PlaceSAPPORO Ginza Bldg.

Other Businesses (Food)
We will seek to offer a line of distinctive products andexpand profits in the Food business throughmaximization of intra-group synergies, streamlining,and greater efficiency.

Quantitative
targets

2010 results 2011 targets 2012 targets

Net sales¥0.6 bn¥1.3 bn¥2.0 bn

Operatingincome–¥0.7 bn–¥0.4 bn–¥0.3 bn

Management
ManagementPlan
Plan2011-2012
2011-2012Key
KeyPoints
Points(1) Expanding our confectionery business (SAPPORO Fine Foods)• With regard to the Potekaru range, we intend to expand sales by such means as developing andintroducing new products based on new ingredients and new concepts.
• As we develop the product line, we will control costs by using an efficient production system.
(2) Developing our yogurt, dessert, and chilled beverages business (Azumino Food＊Equity method)
In addition to increasing sales of existing products, we will aim to develop and launch functional yogurt
made using SAPPORO Breweries' lactobacillus, establish the product in the market, and increase
sales.

Group Management Strategy★ We will bolster our flexible, efficient group management framework to meetthe challenges presented by the Group’s business domains, which will
expand and diversify as we execute our growth strategy.
Restructuring
Restructuringof
ofGroup
GroupHeadquarters
Headquarters• We will implement a new Group structure. The holding company will specialize in growth strategy
formulation, finances, auditing, etc. Specialized tasks common throughout the Group will behandled by a functional support company (SAPPORO Group Management (tentative name)).
• External communications, such as IR, and internal communications will be consolidated in theholding company. This will ensure appropriate and fair disclosure and bolster communication withcustomers, shareholders, and other stakeholders.
• We will further consolidate common tasks and functions, such as logistics, purchasing, and IT, in
the functional support company and institute a strong, low-cost operating structure for the entire
Group.

Stepping
SteppingUp
UpDevelopment
Developmentof
ofGroup
GroupEmployees
Employees• We will step up employee development in the aim of strengthening our ability to execute thegrowth strategy and adaptability to change.
We will encourage employee interaction and diversity within the Group, and aim to develop
employees capable of meeting the challenges presented by the expansion and diversification of
our business.
• We will run a globally competent HR development program to cultivate employees capable ofexecuting our international strategies.

Returning
Returning Profits
Profits toto Shareholders
Shareholders

Returning Profits to Shareholders

Basic Policy• Providing fair returns to our shareholders is a key management policy of our Group. Ourbasic policy is to pay stable dividends to the extent permitted by our operating performanceand financial condition.
We also aim to maximize corporate value by internally retaining funds to strengthen our
financial base and strategically invest in growth businesses in accord with our Management
Plan.

Dividend Policy• We will pay a dividend of ¥7 per share from retained earnings for the year ended December 31,
2010. For 2011, we plan to again pay annual dividends of ¥7 per share by steadily carrying out
our Management Plan to enhance earnings while also making strategic investments andstrengthening our financial foundation.

To make people’s lives richer
and more enjoyable.

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.

Commencement
Commencement ofof Discussions
Discussions on
onOperational
Operational Integration
Integration ofof thethe SAPPOROSAPPORO
Group
Group andand POKKA
POKKA GroupGroup
SAPPORO HOLDINGS LTD.
POKKA CORPORATION
February 10, 2011
1
Copyright 2011, SAPPORO HOLDINGS LTD. All Rights Reserved.

Contents• Background to Commencement ofIntegration Discussions• Steps to Integration• New Post-Integration Structure• Future Plans

2
Copyright 2011, SAPPORO HOLDINGS LTD. All Rights Reserved.

Background to Commencement ofIntegration Discussions
Synergies
Synergies Derived
Derived fromfrom 20092009 Capital
Capital andand BusinessBusiness Alliance
Alliance
Upon
Uponformation
formationof
ofthe
thecapital
capitalandandbusinessbusinessalliance,
alliance,thetheefforts
effortsof
of
both
bothcompanies
companiesgenerated
generatedsynergies
synergiesin
invarious
variousareas
areas••Optimization
Optimizationof
ofproduction
productionsystems
systemsand
anduseuseof
ofjoint
jointprocurement
procurement••Reciprocal
Reciprocalstocking
stockingof
ofvendingvendingmachines
machines••Cross-merchandising
Cross-merchandisingof
ofalcoholic
alcoholicand
andfood
foodproducts
products••International
Internationalexpansion
expansionthroughthroughPOKKA
POKKASingapore’s
Singapore’ssales
salesroutes
routesGenerated around ¥500mn worth of synergies*Synergies
realized in 2010To
Tofurtherfurtherenhanceenhancetheir
theircorporate
corporatevalue,
value,both
bothcompanies
companiesagreed
agreedto
totaketaketheir
theirallianceallianceto
tothe
thenext
next
stage
stage(operational(operationalintegration)
integration)
Copyright 2011, SAPPORO HOLDINGS LTD. All Rights Reserved.

3

Steps to Integration
TowardToward Launch
Launch ofof thethe New
New Organizational
Organizational Structure
Structure in
in April
April 20122012
• •TheThecompanies
companieswill
willnow
nowpromptly
promptlyestablish
establishananintegration
integrationcommittee
andcommence
discussions
on
reorganizationcommittee and commence discussions on reorganizationofof
both’ businesses
bothgroups
groups’businessesandandorganizationalorganizationalstructure,
structure,thetheholdingcompany’s
management
structure
and
name,
etc.
holding company’s management structure and name, etc.

*End-March 2011
Acquisition of POKKA shares(21.4% → 85.5%)••April
April2012:2012:Launch
Launchof
ofnewly
newlystructured
structuredFood
FoodValue
ValueCreation
CreationGroupGroup

Integrated holding company(currently SAPPORO Holdings)*The integration committee will
discuss all relevant matters
including the group’s organizational
structure and the holding company’s
nameToward a food value creation group with competitive
strength in the alcoholic beverage, soft drink, food,and restaurant sectors in Japan and abroad*The integration committee will discuss all relevant matters including the group’s organizational structure and the holding company’s name
Copyright 2011, SAPPORO HOLDINGS LTD. All Rights Reserved.

4

New Post-Integration Structure
Generatingroup G
rowth anduilding aa W
ell-balanced BBusinessusiness PPortfolio
ortfolio
Generating GGroup
Growthand BBuilding
Well-balanced★The newly consolidated group will have annual sales exceeding ¥500 billion★We will evolve into a group with firmly established soft drinks and food businesses and a goodbalance between revenues from alcoholic beverages and real estate
600

Post-consolidation operating income
before goodwill amortization (billions of yen)

Post-consolidation net sales(billions of yen, incl. liquor taxes)

Soft Drinks,
1.3¥519.5bn
500
400
300

¥389.2bn

Real Estate, 24.7
Restaurants, 26.3
Food &
Other, 2.0

Real Estate, 23.5
Restaurants, 27.0 Food &Other, 0.5
Soft Drinks, 33.9
International
Alcoholic
Beverages, 25.3

POKKA, 103.9
Soft Drinks, 39.8
International
Alcoholic
Beverages, 32.2

200
100

Japanese Alcoholic
Beverages, 278.8

Japanese Alcoholic
Beverages, 290.6

0

2010
2010年

2012
2012年

Real Estate, 8.0

Soft Drinks &Food¥145.7bn

Japanese Alcoholic
Beverages, 9.3

International Alcoholic
Beverages, 1.6
Restaurants, 0.1

2012

Total: ¥24.0bn
Alcoholic
Beverages¥322.8bn

Total: ¥16.5bn
Soft Drinks / POKKA
Total operating income:¥6.0bnSoft
Drinks,1.8
POKKA, 4.2

Real Estate, 9.0

Restaurants, 0.6
International
Alcoholic
Beverages, 1.4*The 2012 figure for POKKA is POKKA’s operating income forecast for the year to March 2013.
*Figures for 2012 do not include new synergistic effects generated in the future.
Copyright 2011, SAPPORO HOLDINGS LTD. All Rights Reserved.

2010

Japanese Alcoholic
Beverages, 10.6

5

New Post-Integration Structure
Building
Building aa Food
Food Value
Value Creation
Creation Group
Group Based
Based ononComplementary
Complementary Businesses
Businesses★We will harness the complementary aspects of each company’svarious business to generate synergies and build a food value
creation group with even more robust foundations.
Key
KeyThemes
Themes••Enhancing
Enhancingcomplementarycomplementaryaspects
aspectsof
ofthe
thesoftsoftdrinks,
drinks,food,
food,and
andrestaurants
restaurantsbusinesses
businesses••Accelerating
Acceleratinginternational
internationalexpansion
expansion••Combing
CombingR&D
R&Dandandtechnological
technologicalinnovations
innovationsto
tocreate
createnew
newvaluevalue
6
Copyright 2011, SAPPORO HOLDINGS LTD. All Rights Reserved.

New Post-Integration Structure
Enhancing
Enhancing Complementary
Complementary Aspects
Aspects ofof Soft
Soft Drink
Drink Operations
Operations★Combining each company’s strengths in the household, commercial-use,
vending machine, and other markets to expand sales★Enhance product lineups to reach a broader range of customer segments
POKKA

SAPPORO BeverageCore productsDistinctive
products

Distinctive
products

7
Copyright 2011, SAPPORO HOLDINGS LTD. All Rights Reserved.

New Post-Integration Structure
Expanding
Expanding thethe Food
Food BusinessBusiness★Market unique brands in the distinctive food sector★Offer products that provide value by contributing to customers’ health andabundant lifestyles★Expand the commercial-use market by using beer sales routes

LemonLemon-based
products

Soup products

No. 1 share inhousehold market

No. 2 market share

Functional potato chips

Non-fried potato chips

CommercialCommercial-use
products

New healthhealth-oriented
product categories

One pack contains only 138Kcal

8Copyright 2011, SAPPORO HOLDINGS LTD. All Rights Reserved.

New Post-Integration Structure
Expanding
Expanding thethe Restaurants
Restaurants BusinessBusiness★Combine alcohol-selling format (nighttime) knowhow with cafe
format (daytime) knowhow to develop new formats and menus

129

19

5

101

31

17

KyushuKansai &Chugoku

149

11

Chubu

Cafe de
Crie

27

Kanto

194

TohokuSAPPORO
Lion

Hokkaido

Number oflocations

Total

Nighttime

New formats
3

Menu
development

Daytime9
Copyright 2011, SAPPORO HOLDINGS LTD. All Rights Reserved.

New Post-Integration Structure
Accelerating
Accelerating International
International Expansion
Expansion★Accelerate expansion into Asia, an area ofstrength for both companies★Boost proportion of total sales from overseas

POKKA Hong Kong
Restaurants
Net sales: ¥3.5bn
Operating income: ¥200mn(2010 outlook)

Overseas sales (¥bn) and their ratio to total sales (%)

80
70
60
50
40
30
20
10

12.1%

12%

10.7%

Combined
total:POKKA,¥39.6bn 14.2
SAPPORO,
25.4

14%

Combined total:
POKKA,¥49.1bn
16.9

10%

SAPPORO,
32.2

4%

0

8%
6%
2%
0%

2010

2012

• Ratio of overseas sales to total to rise
above 12% in 2012
Copyright 2011, SAPPORO HOLDINGS LTD. All Rights Reserved.

POKKA Singapore
Soft Drinks & Restaurants
Net sales: ¥10.8bn
Operating income: ¥250mn(2010 outlook)

SAPPORO Vietnam Ltd.
Net sales:$128mn(2019 target)

10

New Post-Integration Structure★Insight born of a selective
approach to ingredients since
our inception

Tap into new value markets

Combing
echnological IInnovations
nnovations toreate New VValue
alue
Combing R&D
R&D andand TTechnological
to C
CreateNew★Insight accumulated from thecoffee, lemon-based products,
and soups businesses

11
Copyright 2011, SAPPORO HOLDINGS LTD. All Rights Reserved.

Future Plans
Forming
ntegration C
ommittee
Forming an
an IIntegration
Committee
Integration
Integrationcommittee
committeeoverview
overview••We
Wewillwillsetsetup
upthe
thecommittee
committeeas
assoonsoonasaspossible
possible••BothBothcompanies’
companies’presidents
presidentswill
willprovide
provideleadershipleadership••The
Thecommittee
committeewill
willdiscuss
discussmattersmatterssuch
suchasasorganization
organizationstructure
structureandandnamenamechanges
in
the
aim
of
forming
a
Food
Value
CreationGroupwithcompetitivechanges in the aim of forming a Food Value Creation Group with competitive
strength
strengthandanddistinctive
distinctivecharacteristics
characteristicsininthe
thealcoholic
alcoholicbeverage,
beverage,soft
softdrink,drink,
food,
food,and
andrestaurant
restaurantsectors
sectorsininJapan
JapanandandabroadabroadWe’s andWewillwillovercome
overcomebarriers
barrierspresented
presented by
by SAPPOROSAPPORO’sand
POKKA’s differing
POKKA’sdifferingcultures
culturesand
andjoinjoinforces
forcestotolaunchlaunchaa
Food
FoodValue
ValueCreation
CreationGroupGroup
Copyright 2011, SAPPORO HOLDINGS LTD. All Rights Reserved.

12

These materials contain forward-looking statements regarding but not limited to future earnings and future
actions, circumstances, and occurrences. These statements are based on information available whenthese materials were prepared and are subject to risks and uncertainties.
Actual results and financial performance may therefore differ materially from those expressed or implied
by forward-looking statements in these materials because of changes in various factors.

13
Copyright 2011, SAPPORO HOLDINGS LTD. All Rights Reserved.

POKKA Corporation
1. Representative: President & CEO Masatoshi Hori
2. Head office: 4-2-29 Sakae, Naka-ku, Nagoya Prefecture, Aichi, Japan
3. Established: April 11, 1968
(Founded: February 22, 1957)

4. Main businesses: Manufacture and sale of foods and beverages
5. Fiscal year end: March 31
6. Number of employees: 2,473 (consolidated, as of March 31, 2010)
7. Share capital: 2,376 million yen
8. Number of issued shares: 9,487,000(as of March 31, 2010)1

Performance by Business Segment
Net sales (billions of yen)
Beverages / Foods

Restaurants

Other

Eliminations

Consolidated

FY2011Estimate

86.2

9.7

9.0

–5.9

99.0

FY 2010

83.3

9.4

8.9

–4.6

97.1

FY 2009

82.9

8.8

9.5

–4.7

96.5

Operating income (billions of yen)
Beverages / Foods

Restaurants

Other

Eliminations

Consolidated

FY2011Estimate

3.3

0.3

0.1

0.1

3.8

FY 2010

1.4

0.2

0.1

0.1

1.8

FY 2009

1.1

0.2

0.2

0.1

1.7

2

Beverages and Foods Business (Japan)
POKKA Corporation
Operates a nation-wide network of beverage vending machines
based on its core lemon-based products, coffee, and soups
businesses.

Lemon
Lemon
Developing
Developing newnewhealth-oriented
health-oriented
product
product categories
categories

CoffeeCoffeeSoup
Soup

Vending
Vending
machinesmachines

Fine
Fine flavors
flavors createdcreatedwithwith carefully
carefully
selected
selected ingredients
ingredients3

Beverages and Foods Business (Overseas)
POKKA Corporation Singapore Pte Ltd•• EstablishedEstablished inin 1977.
1977. InIn 1993,
1993, POKKA
POKKA Corporation
Corporation Singapore
Singapore establishedestablished aa
joint-venture
joint-venture company,
company, POKKA
POKKA Ace
Ace (M)(M) Son.
Son. Bud.,
Bud., in
in Malaysia.
Malaysia. POKKA
POKKA
Corporation
Corporation Singapore
Singapore manufactures
manufactures andand sells
sells beverage
beverage products
products in
in AsianAsianandand otherother countries.
countries.

Exporting products
to 60 countries

Tea
Tea beverages
beverages areare thethe company’s
company’s best-selling
best-selling
products.
products. Its
Its greengreen tea
tea products,
products, inin particular,
particular,boastamarketshareofaround70%
boast a market share of around 70% in
in Singapore.
Singapore.

4

Restaurants (Japan)
POKKA Create Co., Ltd.
Operates
Operates coffee
coffee shop
shop franchisefranchise Cafe
Cafe dede Crie:Crie:
101
101 locations
locations inin thethe Kanto
Kanto area,
area, 3131 inin thethe Tokai
Tokai area,
area,
17
17 in
in thethe Kansai
Kansai area.
area. Total:
Total: 149
149 locations
locations (as(as ofof February
February 2011)
2011)

Restaurants (Overseas)
POKKA
POKKA Corporation
Corporation(HK)(HK) Ltd.
Ltd.

POKKA
POKKA Food
Food(Singapore)(Singapore) Pte.
Pte. Ltd.
Ltd.

OperateOperate aa variety
variety ofof restaurants
restaurants inin HongHong Kong
Kong andand Singapore:
Singapore:26
26 locations
locations inin HongHong Kong,
Kong, 1010 in
in Singapore,
Singapore, 11 in
in Macao.
Macao.
Total:
Total: 37
37 locations
locations (as(as ofof September
September 2010)
2010)
5

Other Businesses
Foremost Blue S
eal, Ltd.
Seal,
Ltd.
Manufacture/sale
Manufacture/sale ofof BlueBlue Seal
Seal ice
ice cream
cream
"Born
"Born inin America
America andand raised
raised inin Okinawa"
Okinawa"

POKKA Logistics Co.
Co.,, Ltd.
Transportation/warehousing
Transportation/warehousing mainly
mainly ofof POKKA
POKKA beverages
beverages

POKKA Machine Co., Ltd.
Design/manufacture
Design/manufacture ofof energy-savingenergy-saving machines
machines andandproduction
production lines
lines forfor various
various beverages
beverages
6