2016
Sapporo Group Business Results Presentation
for the Nine Months Ended September 30, 2016

November 4, 2016

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

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

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Contents
1. Overview of Third Quarter 2016 Results

2. Revision of 2016 Full-Year Earnings Forecasts

Appendix: Collection of Data by Business

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved

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1. Overview of Third Quarter 2016 Results

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved

3/30

Third-Quarter 2016 Group Results Overview
Earnings: operating income improves ¥6.8 billion y-o-y(billions of yen)2015 3Q

2016 3Q Change Topline continued to increase (7th straight term of net

Net sales

388.1

392.2

4.1

Operatingincome

5.9

12.8

6.8

Net income

1.9

5.2

3.3

sales increase) and measures to improve management
efficiency made progress
Record operating income in recent 10 years
Net income increased, despite an extraordinary gainfrom the sale of Shibuya Sakuragaoka Square recorded ayear ago.

Steady progress in the year for carrying out our word Putting into practice the business policy of the “first year of a new period of growth in the beerbusiness,” Black Label and Yebisu continued to perform strongly
 With the inauguration of Ginza Place, the foundation to generate stable profit was put into placein the Real Estate business Improved management efficiency at International, Food & Soft Drinks and Restaurants
through cost reduction

Achievement of the planWe revised the landing points for the International, Food & Soft Drinks and Restaurants to reflectchanges in the economic situation and the impact of foreign exchange rates
Continue with control of costs such as sales promotion expenses according to sales of eachbusiness and achieve y-o-y increase in all businesses
Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

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Third-Quarter 2016 Topics (1): Japanese Alcoholic Beverages
The “first year of a new period of growth in the beer business” showedremarkable result and component ratio increased%

Beer and beer-type beverages

Y-o-y change in sales volume of 3 core brands<Beer>
 Jan-Sep up 5% y-o-y (total demand down 1%)(sales volume)

Black Label Brand total up 3% y-o-yYebisu Bland total up 4% y-o-y
Beer’s component ratio: 57% in 3Q 2015→increased to 60％ in 3Q 2016

<Happoshu + new genre> Jan-Sep down 7% (total demand down 2%)

Mugi to Hop Brand total up 7% y-o-yGoku Zero Down 13% (relaunched in September)Wine Implementing reform for making it the second
pillar of the business: focusing on fine wine
 Proposing international brands in the fine wine
market*1
 Fine wine’s share in imported wine
→23% in 3Q 2015→33% in 3Q 2016
*1 Medium to premium wines costing 1,500 yen or more
Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

Fine wine’s share in imported wine
100%

Spirits, other Strong in general

80%(RTD is sales volume, Spirits and Japaneseliquor are sales value60%

 RTD business: up 21% y-o-y40% Spirits business: up 17% y-o-y20% Japanese liquor business: up

0%
2015

2016

9% y-o-y

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Third-Quarter 2016 Topics (2): International
North American beer business continues to grow, Vietnamese businessstarted recovering in 2Q
North American beer business North America sales have been
rising continuously<SLEEMAN>
 Jan-Sep up 1% y-o-y (sales volume)

North American beer sales volume for Jan-Sep (y-o-y)* Record net sales on a local currency basis
 Leading sales with premium products in Eastern areaand value products in Western area*

<Sapporo USA> Jan-Sep up 1% y-o-y (sales volume) Record net sales as SAPPORO brand expands well
 Improvement of distribution costs and other factors also

contributed to profit increase

Vietnamese beer business Jan-Sep up 9% y-o-y Improved the quality of bottled

products in April
 Continued with initiatives to reducecosts Fell y-o-y in 1Q partly due to a tax
increase Recovered from 2Q led by bottled
products and 330ml cans
 In 3Q, launched BLUE CAP in July
Taking on the challenge of a new
pricing range
Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

North America total*Simple sum of sales on a local currency basis*Sapporo estimate*

Change in Jan-Sep sales volume in
Vietnam

U.S. soft drinks business<Country Pure Foods> <Silver Springs Citrus>
 Pursuing synergies in optimizationof production structure
Jan-Sep net sales
 Reduction of cost of juices<Ridgefield’s> Following the acquisition in May,
it has been performing smoothly(US$ millions)

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Third-Quarter 2016 Topics (3): Food & Soft Drinks
Domestic soft drinks and lemon-based products have been strong;
continuing to promote cost reductions
Domestic food and soft drinks

Y-o-y change in Jan- Sep
soft drinks sales volume

Y-o-y change in Jan- Sep
foods sales value<Domestic soft drinks>
 Jan-Sep up 3% y-o-y (sales volume) Lemon-based drinks: Up 7% y-o-y Coffee drinks: Down 1% y-o-y Unique products such as Kaga bou Hojicha using

twig tea grown in Japan led overall sales<Domestic foods> Jan-Sep down 5%
 Lemon-based food products: Unchanged y-o-yDriving forward improvement ofmanagement efficiency and cost
reduction Aseptic bottling line in Gunma plant(sales value up 6%) → the increased price took root
 Instant soup: Down 9% (sales value down 6%)
 New products: Launched microwavable Jikkuri Kotokoto Gohobi Dining

started operating in July
→Improve costs by producing drinks internally Controlling discount of instant soup products
 Improving profitability through cost control of vending
machines, etc.

Overseas soft drinks

Soymilk, chilled products

Jan- Sep overseas sales (SG$ million)

 The business in Singapore wasstrong and sales value was up 7%y-o-y Exports sales value fell 8% y-o-ydue to declining demand reflecting
falling crude oil price, unstable politicalsituation, etc. in the Middle East
Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

 The soy milk business, launched last year, had
Jan-Sep net sales of ¥1.6 billion

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Third-Quarter 2016 Topics (4): Restaurants
Amid harsh market environment, enhancing earnings capability throughsteady structural reform
Restaurants business in Japan

Trends of net sales and number of Sapporo Lion outlets(billionsof yen)<Sapporo Lion> Comparable-store sales: unchanged y-o-yHarsh environment of high ingredient and personnel costs continues
Closed 20 outlets in 2015, 4 in 2016
Newly opened 11 outlets and refurbished 2
Carrying out structural reforms to transform into a highly profitable structure⇒Operating income increased 41% y-o-y The flagship restaurants to resume operations, to contributeto profits in the future July 15

Ginza Lion Shimbashi opened (a total of 3 floors: about 401 ㎡)
 August 3
Ginza Lion GINZA PLACE opened (a total of 2 floors: about 480 ㎡)<Marushinkawamura>

Ginza Lion Shimbashi

Ginza Lion GINZA PLACE Newly consolidated from June Primarily in Sapporo, operates 14 outlets of Kushiro and Sapporo

Ginrin restaurants in Sapporo and 2 in Kanto region
 Strength in Japanese restaurant format with relatively high unit priceand high business entertainment demand Net sales of approximately ¥2.2 billion in fiscal year 2015
Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

Kushiro KITTE Marunouchi

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Third-Quarter 2016 Topics (5): Real Estate
GINZA PLACE opens; Yebisu Garden Place maintains stable occupancy rate
Real estates<Yebisu Garden Place> Continues to maintain high occupancy rate. Valueenhancement of the property have also been implemented
The restaurant floor of the 38th floor of the tower opened after
renovation on October 27. The 39th floor is scheduled to open in
Summer 2017
BRICK END opened along the Yamanote Line on October 6Change in average occupancy rate of Yebisu
Garden Place office space (contract basis)

2015
1Q

2015
2Q

2015
3Q

2015
4Q

2016
1Q

2016
2Q

2016
3Q

87%

91%

93%

99%

99％

99％

99％

Yebisu Garden Place

BRICK END

GINZA PLACE

Ebisu First Square<GINZA PLACE> Aspires to become the landmark that creates
tomorrow’s Ginza

Inaugurated on September 24 with the concept of the “basefor information dissemination and exchange”
Above the ground 11, below 2. Total floor space of about
7,350㎡<Other properties>Ebisu First Square has been maintaining 100% occupancy
rate since its inauguration
We are continuing with value enhancement of Sapporo
Factory and started working on redevelopment of the former
Parking Lot 3 site in the adjacent plot for renting the entire
building as a showroom and offices.
(completion scheduled in May 2017)

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

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Third-Quarter 2016 Topics (6): Miyasaka Jozo Co., Ltd.
 Aim to expand the food domain with the Shinsyu Ichi brand at the core
September 5, 2016: Purchased a 51% stake in Miyasaka Jozo Co., Ltd.,
which manufactures and markets miso, instant miso soup and freezedried products.
Company profile Trade name: Miyasaka Jozo Co., Ltd.
 Address: 2-4-5, Nogata, Nakano-ku, Tokyo

 Manufacturing bases:
Kofu Factory (Kofu, Yamanashi; manufacturing of miso)
Uenohara Factory (Uenohara, Yamanashi; setup of instant miso soup) Capital stock: ¥48 million (before the third-party shareallocation)

Higashikurume Factory (Higashikurume, Tokyo; manufacturing offreeze-dried products)

 Net sales: approx. ¥7.0 billion

Marutakagura Factory (Suwa, Nagano; manufacturing of miso)

 Shareholders: Main products<Outside the scope>
Miyasaka Holdings Co., Ltd.

Miko-chan

Oishiine!! Tonjiru

Omisoshiru de
Nyusankin

Ju-yonwari<Subject to the capital and business tie-up>
Miyasaka Jozo Co., Ltd. (miso,
Shinsyu Ichi)
2-4-5, Nogata, Nakano-ku, Tokyo<Outside the scope>
Miyasaka Jozo Co., Ltd. (sake,
Masumi)
1-16, Motomachi, Suwa, Nagano

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

10/30

2016 3Q

Results Highlight(billions of yen)

Consolidated financial
results

2015 3Q

2016 3Q

Net sales(incl. liquor tax)

388.1

392.2

4.1

1.1%

Net sales（excl. liquor tax)

305.6

307.7

2.0

0.7%

Overseas net sales to total(excl. liquor tax)

23.5 ％

21.0％

(2.5)

ー

Operating income

5.9

12.8

6.8

115.1%

Operating income before
goodwill amortization

9.0

15.8

6.7

75.3%

Ordinary income

4.9

11.5

6.6

134.5%Net income attributable toowners of the parent

1.9

5.2

3.3

174.8%EBITDA

26.9

32.3

5.3

20.1%

Balance of Net debt

222.3

215.1

(7.1)

(3.2)%

1.4 times

1.4 timesーー

Net Ｄ／Ｅratio※Exchange rate
2015: US$=¥120.99 CAN$=¥96.08

YoY changes(amount, %)2016:US$=¥108.59 CAN$=¥82.09

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Overview of Third Quarter 2016 Results (1) Special Factors<Special factors in the business results (year-on-year)>Business segment

Details(―: negligible)
Operating income
impactSales impact

2015: Silver Spring Citrus account period changeInternational

International(changed from Oct 2015 to Sep 2016 -> Jan 2016 to Dec 2016)⇒2015: consolidating the results for 9 months from Oct 2014
to Jun 20152016: Jan to Jun 20162015: Country Pure Foods new consolidation(Consolidation started from Feb 24, 2015, when the stake was
acquired)- approx. 2.8 bnyen―+ approx. 2.9 bnyen

2016: Sales increase for two months of Jan, Feb

Food & Soft Drinks+ approx. 1.6 bn
yenEntered soy milk business in Oct 2015

<Impact of foreignexchange rates>

Average rate during the period (Jan – Sep)
2015 3Q

2016 3Q―

Net sales

OperatingincomeUS＄¥120.99¥108.59

Japanese Alcoholic
Beverages

―

―

CAN＄

¥96.08¥82.09International-6.3 bn yen―

SG$¥88.74¥79.15

Food & Soft Drinks- 1.9 bn yen―<Change indepreciation method>
Declining balance method insome portions → straight line
method for all assets
Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

Decline in depreciation(Jan-Sep)

Japanese Alcoholic
Beverages

Food & Soft Drinks

Restaurants

Real Estate

690 million yen

260 million yen

140 million yen

120 million yen

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Overview of Third Quarter 2016 Results (2) Net Sales by Segment
YoY change（amount,%）（billions of yen）

2015 3Q

2016 3Q

Consolidated
net sales

388.1

392.2

4.1

1.1％

Japanese
Alcoholic
Beverages

195.2

200.0

4.8

2.5％

International
Business

53.2

48.0

(5.2)

(9.8)%

Foreign exchange rates(average rate of 2016 3Q)
US$1=¥108.59
CA$1＝¥82.09
VND1=￥0.00480
Foreign exchange rates(average rate of 2016 3Q)
SG$1=¥79.15

Food &
Soft Drinks

99.3

101.5

2.2

2.3%

Restaurant

20.5

21.0

0.4

2.3%

Real Estate

15.2

16.7

1.5

9.9%

Other

4.4

4.7

0.2

6.4%

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

Notes

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Overview of Third-Quarter 2016 Results (3):
Factors Contributing to Change in Net Sales<Main Factors Contributing to Changes in Net Sales>(billions of yen)

Increase Decrease

Jan-Sep 2015
Consolidated
net sales¥388.1 billion¥392.2 billion(up ¥4.1 billion)

Sales
volumeincrease,etc. inNorth
America

Happoshu,
new genre
1.0
sales
RTD, SSC
volume wine, account New
Beerdecline Japanese period consolidation
salesof CPF: 2
liquor change: months
volumeincreasesales reductionof 3
volume(3.5)
increase months

6.1

2.2

(2.8) 2.9

Jan-Sep 2016
Consolidated
net sales

Foreignexchange

Soymilk,
chilledproducts,
Nihon
Beans

(6.3)

Overseas,
Café de
CRIE Foreign
0.6 exchange

Other
YGP, etc. 0.2
sales
increase

(1.9)

New
consolidation

1.8

1.5

0.4

Food &
soft
drinkssales
increase

1.7
4.8
Japanese Alcoholic
Beverages(5.2)
International
国際

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

2.2

0.4

Food⾷品・飲料& Soft Drinks

Restaurants

1.5

0.2

Real
Estate Other

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Overview of Third Quarter 2016 Results (4) Operating Income by Segment（billion of yen）

2015 3Q

2016 3Q

ChangeConsolidated Operating income

5.9

12.8

6.8

Japanese Alcoholic Beverages

3.0

6.3

3.3

Beer and related productWine and spirits
Other

1.3
1.1
0.7

4.0
1.5
0.8

2.7
0.4
0.1

(0.0)

0.7

0.8

1.5
(1.6)

2.0
(1.3)

0.5
0.3

(0.5)

0.6

1.2

(1.5)

(0.3)

1.2

1.0

0.9

(0.1)

Restaurant

0.3

0.5

0.1

Comparable stores-0.1, Closed outlets +0.2

Real Estates

6.1

8.0

1.9

Rent+1.7, Other factors+0.2

Other

0.0

(0.1)

(0.1)

(3.0)

(3.4)

(0.3)

3.0

2.9

(0.1)

International

1.2

1.2

(0.0)

Food & Soft Drinks
Operating income before
goodwill amortization

1.7

1.6

(0.1)

9.0

15.8

6.7

International
North America, etc.
VietnamFood & Soft Drinks
Japanese Food & Soft Drinks
Overseas Soft Drinks/
Domestic coffee shop chain

General corporate and intercompany
eliminations

Amortization of goodwill

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

Notes

Marginal profit+1.5,Fixed cost and other+1.3
Marginal profit+0.8,Fixed cost and other-0.4

Marginal profit+0.9,Fixed cost and other-0.4
Marginal profit+0.0,Fixed cost and other+0.3
Marginal profit+1.4,Fixed cost and other-0.2

15/30

Overview of Third-Quarter 2016 Results (5):
Factors Contributing to Change in Operating Income<Main Factors Contributing to Changes in Operating Income>(billions of yen)

Increase

Jan-Sep 2015
consolidated
operatingincome¥5.9 billion
Sales
North
increase,
America, etc.
production
sales volume
cost decline
increase,
Product mix,
Raw material
costs
Sales
Vietnamimprovement promotion improvement
expenses
increase

0.9

Production
Beer sales cost decrease,
volumeetc.
increase,product mix

Diversified
product
offerings,
volumeincrease

0.4

(0.4)

0.3

Vending
machine costdecline0.6

Sales
promotion
cost,
personnel
cost,
Logistics
cost etc.
increase

(0.8)

1.5

Structuralreforms
effectDecrease

Jan-Sep 2016
consolidated
operating income¥12.8 billion(+¥6.8 billion)

Utilityexpenses,
YGP, etc. etc. decline
sales
increase

0.3

Other

(0.4)

1.6

0.1

Personnel
cost,
Sales
depreciation
promotion
decline, etc.
expenses
increase

1.8

(0.4)

0.4
1.1

3.3

0.8

Japanese Alcoholic
国内酒類 Beverages

International

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

1.2

0.1

1.9

Food & Soft Drinks Restaurants Real Estate

(0.4)
Other

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Overview of Third Quarter 2016 Results(6) Changes in Extra Ordinary Gains and Losses
Consolidated Statements of Income（billions of yen）

2015 3Q

2016 3Q

Change

388.1

392.2

4.1

5.9

12.8

6.8

Financial account balance

(0.8)

(0.7)

0.1

Other non-operating expenses

(0.3)

(0.6)

(0.3)

Ordinary income

4.9

11.5

6.6

Gain on sales of property, plantand equipment

7.4

0.0

(7.3)

2015：Sale of Shibuya Sakuragaoka Square7.3

Other extraordinary gains

0.4

0.0

(0.4)

2015：Subsidy income 0.3

Loss on sales/disposal of property,
plant and equipment

(0.9)

(1.2)

(0.3)

Impairment loss

(3.3)

(0.5)

2.8

2015: Welfare facilities-1.4, Idle real estate-1.7

Other extraordinary losses

(1.9)

(0.3)

1.6

2015: Loss on devaluation of investment securities-1.6

6.6

9.6

2.9

(4.8)

(4.3)

0.5

1.9

5.2

3.3

Net sales
Operating income

Income before income taxes andnon-controlling interests
Corporate tax, etc.
Net income attributable toowners of the parent

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

Primary ReasonsForeign exchange losses-0.2

17/30

Overview of Third Quarter 2016 Results (7)Implementation Status of Strategic Investment
Implementation Status of Strategic Investments(including ordinary capex, on a cash bases)(1) <Capital expenditure and lease fees>
Consolidated total: Approx. ¥15.7 billion
 Property, plant and equipment, intangible assets, lease fees, etc.
Major items:
 Chiba brewery bottling line upgrade (Japanese Alcoholic Beverages):
approx. ¥0.9 billion
Indonesian soft drinks factory construction work (Food & Soft Drinks):
approx. ¥0.8 billion
 Gunma plant aseptic bottling line (Food & Soft Drinks)
approx. ¥0.4 billion
Lease fees (Foods & Soft Drinks, etc.): approx. ¥2.2 billion(2) <Other investments>
Consolidated total: Approx. ¥5.0 billion
 Long-term prepaid expenses, subsidiaries’ shares, investment securities, etc.
Major items:
 Purchase of subsidiaries’ shares, Payment for transfer of business(International, Restaurants):approx. ¥2.1 billion
Long-term prepaid expenses (Japanese Alcoholic Beverages,
Food & Soft Drinks): approx. ¥2.8 billion(1) + (2) <Jan-Sep 2016 strategic investment total>(incl. ordinary capex, on a cash basis)
 Approx. ¥20.6 billion

Direction of Long-Term Strategic Investment
 The scale of strategic investment from 2012 to 2016 is anticipatedto be ¥150 billion to ¥200 billion (in principle, funded fromaccumulated operating cash flow).
 Changes in investment from 2012 to September 2016
– Including ordinary capex (approx. a half of strategic
investments)– 2012 investment total: Approx. ¥65.7 bn– 2013 investment total: Approx. ¥23.5 bn– 2014 investment total: Approx. ¥29.5 bn– 2015 investment total: Approx. ¥40.2 bn– 2016 3Q investment total: Approx. ¥20.6 billion(Full year plan: ¥27.6 billion)(annual plan breakdown: capital expenditure worth ¥19.5 bn,other investments worth ¥8.1 bn）

Financing Status In Mar. 2016 issued five-year straight bonds worth ¥10.0 billion at
annual interest rate of 0.25%
 Credit ratings

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

JCR: A- (Jan 28, 2016)
R&I: BBB+ (Feb 29, 2016)18/30

Overview of Third Quarter 2016 Results (8) Balance sheets

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

19/30

2. Revision of 2016 Full-Year Earnings Forecasts

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved

20/30

Revision of 2016 Full-Year Earnings Forecasts
 Net sales: down ¥17.7 billion from initial
forecast• International: forecast was cut by ¥13.1 billion due
to the deviation of the exchange rate from theassumption at the beginning of the year
• Food & Soft Drinks: forecast was cut by ¥7.3
billion due to the deviation of the exchange ratefrom the assumption at the beginning of the year
• Restaurants: forecast was raised by ¥1.1 billion
due to new consolidation of Marushinkawamura,etc.
• Other: forecast was raised by ¥1.6 billion due to
new consolidation of Miyasaka Jozo Co., Ltd.

 Operating income: down ¥1.0 billion frominitial forecast• International: down ¥0.3 billion due to reduced net
sales forecast• Food & Soft Drinks: down ¥0.3 billion due toreduced net sales forecast• Restaurants: down ¥0.4 billion due to deviation ofcomparable-store sales from initial forecast

 Ordinary income: down ¥1.0 billion frominitial forecast• Forecast was reduced by ¥1.0 billion reflecting
the lower operating income

 Net income: down ¥0.5 billion from initial
forecast• Forecast was reduced by ¥0.5 billion reflecting
the decline in operating income

Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

2016 initial
forecasts

2016 revised
forecasts

Japanese Alcoholic
Beverages

288.0

288.0

-

273.6

14.3

International

77.8

64.7

(13.1)

70.5

(5.8)

Food & Soft Drinks

143.7

136.4

(7.3)

135.6

0.7

Restaurants

27.1

28.2

1.1

27.0

1.1

Real Estate

22.8

22.8

-

20.8

1.9

Other

6.0

7.6

1.6

6.0

1.5

Net sales

565.4

547.7

(17.7)

533.7

13.9

Operating income before
goodwill amortization
Japanese Alcoholic
Beverages

25.0

24.0

(1.0)

18.1

5.8

11.1

11.1

-

8.6

2.4

International

0.9

0.6

(0.3)

0.1

0.4

Food & Soft Drinks

1.7

1.4

(0.3)

0.4

0.9

Restaurants

1.3

0.9

(0.4)

0.5

0.3

Real Estate

10.0

10.0

-

8.2

1.7

Other

0.2

0.2

-

0.0

0.1

(4.1)

(4.1)

-

(4.0)

(0.0)

Operating income

21.1

20.1

(1.0)

13.9

6.1

Ordinary income

20.2

19.2

(1.0)

13.2

5.9

Net income attributableto owners of the parent

10.5

10.0

(0.5)

6.1

3.8

(billions of yen)

General corporate

Revisedamount2015 results Change

Though it is a downward revision reflecting the impact of economic
market conditions (foreign exchange, etc.), all businesses are
expected to achieve increased profits.
21/30

Appendix：

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

Collection of Data by Business

22/30

2016 3Q:Major Sales and Sales Volume (YoY)
Alcoholic Beverage (Japan)(10,000 cases)
Jan. 1 Sep.30, 2016

Beer (International)Jan. 1 Sep.30, 2015

YoY

(10,000 cases)
Jan. 1 Sep.30, 2016

Jan. 1 Sep.30, 2015

YoY

Sapporo Draft Beer Black Label

-

-

103%

SLEEMAN BREWERIES LTD.（*2）

963

957

101%

YEBISU (total)

-

-

104%

Sapporo brand

417

394

105%

1 Beer (total)

-

-

105%

2 Happoshu (total)

-

-

88%

3 New genre beer products (total)

-

-

95%

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

-

-

100%

Non-alcoholic beer taste beverage

62

75

82%

RTD（ *1)

204

169

121%

*1：RTD*2：Excludes contracted manufacturing for the Sapporo brand and sales of the Sapporo brand in Canada .

Soft Drinks (POKKA SAPPORO FOOD & BEVERAGE) (10,000 cases)
Jan. 1 Sep.30, 2016

Jan. 1 Sep.30, 2015

3,463

3,377

Soft Drinks （ *3）

YoY

103%

*3：Excludes sales other than Japan and soy milk drinks sales in Japan

1Case=250ml*24

Effective from July, 2014, the company has changed the reporting method of its sales volume of beer-type
beverages, following the agreement of the Brewers Association of Japan, and therefore no disclosure of
the sales volume is made for third quarter of the current fiscal year ending December 31, 2014.
The sales volume for the first half and end of the fiscal year shall be disclosed as in the past.

Nine Months ended Nine Months ended
September 30,
September 30,
2015
2016

Beer
Happoshu
New genre(billions of yen) Total
Jan. 1 Sep.30, 2016

Jan. 1 Sep.30, 2015

YoY

Domestic wines

3.5

3.7

95%

Imported wines

5.4

5.1

104%

Wine (total)

8.9

8.9

100%

Spirits (total)

4.9

4.2

117%

Shochu (total)

11.3

10.3

109%

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

(billions of yen)

Sales (including liquor tax)
ChangeChange (%)

111.7
13.7
38.8

117.8
12.0
36.8

6.1
(1.6)
(1.9)

5.5%
(12.3)%(5.0)%

164.2

166.7

2.4

1.5%

(billions of yen)

Sales (excluding liquor tax)
Nine Months ended Nine Months ended
September 30,
September 30,
2015
2016

ChangeChange (%)

Beer
Happoshu
New genre

54.5
7.6
26.9

57.8
6.6
25.5

3.3
(0.9)
(1.3)

6.1%
(12.3)%(5.0)%

Total

89.0

90.1

1.0

1.2%

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Reference Material (1) Japanese Alcoholic Beverages
Beer and Beer-Type Beverages Data
(10,000 cases)<Beer and beer-type beverages category
Jan-Sep sales volume YoY change (Shipment base)><Beer lineup (Jan-Sep breakdown)>

21.54
millionCases(10,000 cases)<3 core brand Jan-Sep sales volume change>(1) Sapporo Lager Beer: Japan’s oldest heat treated beer. It
has been available only in bottles, but the canned version ismade available this year for a limited volume.
(2) Edelpils: available only in kegs. It uses 3 times the finearoma Saaz hops from Czech (compared with thecompany’s existing products) and boasts an uniquegorgeous aroma.
(3) Shirohonoka: Non-filtered beer available only at strictly
selected outlets(4) Sapporo Classic: Beer using 100% malt, sold only in
Hokkaido. Sales have been increasing continuously for the
past 15 years
and so on(1)

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

(2)

(3)

(4)

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Reference Material(2)Japanese Alcoholic Beverages～Beer Category Data～＜Jan〜Sep Net sales> （billions of yen)Wine
Beer + Beer type beverages (incl. liquor tax)

Spirits

Japanese Liquor

Promotion of diversification of product offering＜Japanese Alcoholic Beverage Business
Jan-Sep sales breakdown by category>Jan-Sep net sales
200.0 billion yen

ＲＴＤ

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

25/30

Reference Material(3) International Business ～Data ～SLEEMAN Net Sales in Local Currency (Jan-Sep)(before elimination of inter-company transactions)

Sapporo USA Net Sales in Local Currency (Jan-Sep)(before elimination of inter-company transactions)＜Trend of overseas sales volume of SAPPORO brand products (Jan-Sep)>（10,000 cases)

Net sales Breakdown by Geographic Area
(Jan-Sep)

2.46
millioncases

4.17
millioncases

2011North America: Canada, U.S.
Asia: Vietnam, Singapore, South Korea, etc.
Oceania, etc.: Australia, Europe, etc.
Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

2016

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

Japanese soft drinks sales
volume composition by genre(Jan-Sep)¥65.1
billion34.63
millioncases＜Lemon-based
drinks＞

Japanese soft drinks sales
composition by sales channel(Jan–Sep)

34.63
millioncases*Vending machines (end of Sep)
Own brand machines : about
90,000 ＋ Multi-brand Machines<Soft Drinks (overseas): POKKA Corporation (Singapore) Pte. Ltd.>POKKA Corporation (Singapore)
Sales composition (Jan-Sep)

Exporting products to
60 countries

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

＜Restaurants (Domestic): POKKA CREATE Co., Ltd.> CAFÉ de CRIÉ has been actively pursuing opening new outlets
in new areas and proposal of new menu items. Net sales havebeen up 7% on year and strong

Outlets: 194 (as of Sep 30, 2016)(Directly operated: 112 outlets; FC: 82 outlets)
East Japan 108, Central Japan 38, West Japan 48

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Reference Material(5) Restaurants ～ Data ～＜New Sanko Outlets＞＜Sapporo Lion outlets＞
177 Outlets(as of Sep 30, 2016)
 Reopening of
Sapporo Lion flagship outlets※2

・Ginza Lion Shimbashi
3 floor, Approx. 401㎡
・Ginza Lion GINZA PLACE
２ floor, Approx. 480㎡

 1954 Established in Otaru
 9 Outlets located in Hokkaido＜Marushinkawamura Outlets＞
 Kushiro:4 outlets located in Sapporo
1 outlet in Tokyo
 Sapporo Ginrin:1 outlets in Sapporo
1 outlet in Kawasaki Aburiya: 5 outlets in Sapporo
 Kakureya:2 outlets in Sapporo
 Manekiya:2 outlets in Sapporo＜Outlet expansion in Singapore＞※1※1：Tochigi, Gunma, Saitama, Chiba, Kanagawa, Yamanashi※2：Osaka, Kyoto, Hyogo

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

14 outlets
・ Ginza Lion (beer hall): 2 outlets
・ Tonkichi (pork cutlet): 4 outlets
・ Rive Gauche (patisserie): ８ outlets

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Reference Material(6) Real Estate ～ Data ～Major rental properties & occupancy rates *Information about real estate for lease(*Averages for 2016 3Q (contract basis)
Major rental properties inTokyo’s 23 wards

Site area (m2)

Floor area (m2)Occupancy rate(%)

Yebisu Garden Place *1

56,943

298,00799%

Ebisu First Square*

2,596

15,496100%

Ebisu Square

1,561

9,126

97%

Ginza Place

645

7,350

－

1,117

11,411100%

Strata Ginza *2

No. of floors
40 floors above
ground, 5 below
12 floors above
ground, 1 below
7 floors above
ground, 1 below
11 floors above
ground, 2 below

Balance sheet value at December 31, 2015 : approx. ¥197.7 billion
Fair value at December 31, 2015 : approx. ¥ 357.4 billion

13 floors above
ground, 1 below

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

*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)

EBITDA =operating income + depreciation and amortization

EBITDA

Operating income(billions of yen)(billions of yen)

Jan-Sep
2015
Real estate leasing
Yebisu Garden
Place etc.

Jan-Sep
2016

4.7

6.2

1.5

Hokkaido
Other areas &Other operations

0.8

0.9

0.1

1.2

1.5

0.3

General Corporate
eliminations

(1.2)

(1.2)

－

5.5

7.4

1.9

Total

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

Jan-Sep
2015

Jan-Sep
2016

Change

6.8

8.3

1.5

Hokkaido
Other areas &Other operations

1.2

1.3

0.1

1.9

2.1

0.2

General Corporate
eliminations

(1.2)

(1.2)

－

8.7

10.5

1.8

ChangeReal estate leasing
Yebisu Garden
Place etc.

Total

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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.

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