Financial Results
for the Six Months Ended June 30, 2009—Consolidated
July 31, 2009
Company name

Sapporo Holdings Limited

Security code
Listings
URL
Representative
Contact

2501
Tokyo Stock Exchange (First Section); Sapporo Securities Exchange
http://www.sapporoholdings.jp/english/
Takao Murakami, President and Representative Director, Group CEO
Yoichi Kato, Director and General Manager of the Corporate Planning
Department+81 3-5423-7407

Telephone
Scheduled dates:
Filing of quarterly financial statements
Commencement of dividend payments

August 13, 2009—

1. Consolidated Financial Results for the Six Months Ended June 30, 2009
(January 1 – June 30, 2009)(Amounts in million yen rounded down to the nearest million yen)

(1) Operating Results(percentage figures represent year-over-year changes)
Net sales
million yen

Six months ended
June 30, 2009
Six months ended
June 30, 2008%

Operating income

Ordinary income

Net income

Million yen%

million yen%

million yen%

182,413

-

1,344

-

518

-

(738)

-

193,486

(8.5)

1,157

-

(790)

-

9,594

-

Net income
per share

Diluted
net income
per share

yen

yen

Six months ended
June 30, 2009
Six months ended
June 30, 2008

(1.88)

-

24.47

23.46

(2) Financial Position
Total assets

Net assets

Shareholders’equity ratio

Net assets per
sharemillion yen

million yen%

yen

497,738

113,59722.8

289.29527,286

116,86222.1

297.60June 30, 2009

December 31, 2008
Note: Shareholders’ equity
June 30, 2009:

113,368 million yen

December 31, 2008:

116,636 million yen

12. Dividends
Dividend per share
Record date or period

End Q1End Q2End Q3Year-end

Full year

yen

yen

yen

yen

yen

-

0.00

-

7.00

7.00

-

0.00

-

7.00

7.00

Year ended
December 31, 2008
Year ending
December 31, 2009
(result)
Year ending
December 31, 2009
(forecast)

Note: No changes were made to dividend forecasts in the six months ended June 30, 2009.

3. Forecast of Consolidated Earnings for the Year Ending December 31, 2009
(January 1 – December 31, 2009)
Net sales

Full year

Operating income(percentage figures represent year-over-year changes)
Net income
Ordinary income
Net income
per share

million yen%

million yen%

million yen%

million yen%

yen

400,000(3.5)

12,000(18.3)

8,500(19.3)

3,000(60.7)

7.66

Note: Changes were made to earnings forecasts in the six months ended June 30, 2009.

4. Other(1) Changes affecting the status of significant subsidiaries (scope of consolidation): None
(2) Use of simplified accounting methods and/or accounting methods specific to quarterly
consolidated financial statements: Yes
Note: For details, see page 9 under subsection 4, “Other,” of the “Analysis of Operating
Results” section below.
(3) Changes in accounting principles, procedures, and methods of presentation used to prepare
the quarterly financial statements
1) Changes in accord with amendments to accounting standards: Yes
2) Changes other than the above: None
Note: For details, see page 10 under subsection 4, “Other,” of the “Analysis of Operating
Results” section below.
(4) Number of shares issued and outstanding (common stock)1) Number of shares issued at end of period (treasury stock included):June 30, 2009:
393,971,493 shares
December 31, 2008: 393,971,493 shares
2) Number of shares held in treasury at end of period:
June 30, 2009:
2,087,923 shares
December 31, 2008: 2,045,360 shares
3) Average number of outstanding shares during the period:
Six months ended June 30, 2009:
391,904,506 shares
Six months ended June 30, 2008:
392,130,583 shares

2Appropriate Use of Earnings Forecasts and Other Important Information
1. This document contains projections and other forward-looking statements based on information
available to the Company as of the date of this document. Actual results may differ from thoseexpressed or implied by forward-looking statements due to various factors. For the Company’s
earnings forecasts, please refer to page 9 under subsection 3, “Consolidated Outlook for the
Fiscal Year Ending December 31, 2009,” of the “Analysis of Operating Results” section below.
2. Effective the fiscal year ending December 31, 2009, the Company adopted the AccountingStandard for Quarterly Financial Reporting (ASBJ Statement No. 12) and its accompanying
Guidance on the Accounting Standard for Quarterly Financial Reporting (ASBJ Guidance No. 14).
The Company also prepares quarterly consolidated financial statements in accord with Japan’s
Regulations on the Terminology, Format, and Preparation of Quarterly Consolidated Financial
Statements.

3

1. Analysis of Operating Results
Consolidated financial results for the six months ended June 30, 2009
(January 1 – June 30, 2009)
Consolidated net sales for the six months ended June 30, 2009 were down
¥11.0 billion versus the first half of 2008 (down 6%) to ¥182.4 billion, withmajor contributing factors including growth in (relatively low-price) new-genre
products’ share of our domestic alcoholic beverage sales, reviews of
unprofitable sales accounts in our Soft Drinks business, and a decline indemand for restaurant meals. Costs were inflated to some extent by changes
in accounting standards—which required us to book increased depreciation
expenses as well as operating costs associated with disposal of obsolete
inventories—but rigorous cost controls nevertheless enabled us to book
operating profit of ¥1.3 billion (up ¥0.1 billion or 16% from the first half of2008) and ordinary profit of ¥0.5 billion (versus an operating loss of ¥0.7
billion in the first half of 2008). The Group’s net loss of ¥0.7 billion for the firsthalf of 2009 is in contrast to its net profit of ¥9.5 billion for the first half of 2008.
The difference was largely attributable to gains on fixed asset sales that werebooked in the first half of last year.
Segment information
Impact of seasonal factors
The Group’s operating results are subject to substantial seasonal variability
because demand in the Alcoholic Beverages, Soft Drinks, and Restaurants
businesses is concentrated disproportionately in the summer months. As aresult, first-half (January–June) net sales and income tend to be lower than in
the second half of the year.
*Year-over-year comparisons are presented below for reference only.
Alcoholic Beverages (Japan)
The second quarter of 2009 showed some indications that the domestic
economy was starting to recover, but consumers remained reluctant to loosen
their purse strings as labor market conditions continued to deteriorate, as aresult of which total demand for beer and beer-type beverages appears tohave contracted by around 1% versus the first half of 2008. Conventional beerand happoshu (low-malt beer) saw reduced demand for a second successive
quarter, while total sales of new-genre products were up a massive 25% froma year earlier.
Our Japanese Alcoholic Beverages business saw very little change in total
sales volume for beer and beer-type beverages relative to the first half of2008. Our core Sapporo Black Label brand’s unit sales fell 10% year overyear in line with the decline in overall beer-category sales, but our Yebisu
brand achieved a 1% year-over-year increase in unit sales despite a very
difficult operating climate, with the Yebisu Jukusei 2009 limited-edition releaseproviding a successful follow-up to the previous Silk Yebisu campaign. In the
new-genre product category, the March launch of Sapporo Reisei proved4somewhat unsuccessful in generating new interest, but renewal of our Mugi to
Hop brands resulted in strong sales growth, with monthly sales exceeding one
million cases for the first time in June. This enabled our total new-genre unit
sales to outpace the new genre market’s overall growth rate (+43% versus+25%). The higher market share of (relatively low-price) new-genre products,
however, meant that our total sales revenue for beer and beer-type beverages
ended up falling some 3% versus the first half of 2008.
Total demand for domestic wines was roughly unchanged from the first half of2008, while demand for imported wines appears to have contracted by around
2%. Our domestic Grande Polaire and Mutenka lines continued to sell well,
but the domestic wines category nevertheless saw a year-over-year decline inunit sales, apparently as a consequence of last year’s price hikes for our
lower-priced products. Relatively strong sales of everyday wines meant that
our overall imported wine sales kept pace with total demand in unit terms. The
net result of the above was total domestic and imported wine sales that were
down 9% from a year earlier.
Shochu sales revenue was up 7% versus the first half of 2008, buoyed bypenetration of the commercial-use market with singly distilled shochu brands,
such as Waramugi and Karariimo, and strong sales of large-volume products.
Cost increases associated with changes to accounting standards, increased
sales promotion outlays, and changes to our product lineup were offset bycost-cutting in other areas.
Overall, our Japanese Alcoholic Beverages business booked sales of ¥132.7
billion (down just ¥4.4 billion, or 3%, versus the first half of 2008) and an
operating loss of approximately ¥0 billion (an improvement of ¥1.0 billion).
Alcoholic Beverages (International)
Our estimates indicate that total demand in the North American beer market
has contracted by some 2–3% as a severe US economic downturn fromautumn 2008 onwards has impacted on consumer spending. US domestic
beers (particularly low-priced brands) have continued to sell relatively well, but
sales of premium-priced imported beers have generally declined by around
10%. Beer consumption in the household market has been holding firm amid
the economic downturn, but consumption in the commercial market isdeclining. Even in some markets outside of North America, beer consumption
has downshifted in the wake of the economic downturn.
Despite these challenging headwinds, proactive sales campaigns targetingthe premium market segment enabled our Canadian subsidiary Sleeman
Breweries to achieve an 11% year-over-year increase in unit sales (excluding
sales of Sapporo brand products brewed by Sleeman). However, Sapporo
USA’s Sapporo brand unit sales decreased 14% year over year, reflectingthat these products are marketed in the US at a super-premium price pointwith a heavy reliance on the commercial market for sales.

5The International Alcoholic Beverages business incurred an operating loss of¥0.1 billion (versus operating income of approximately ¥0 in the first half of2008) on sales of ¥10.4 billion. Although first-half sales were up year overyear in local-currency terms, this improvement was negated in yen terms byadverse exchange rate movements.
Soft Drinks
Our estimates indicate that total domestic demand for soft drinks declined
some 2% year over year for the first half of 2009, with new product offerings
failing to generate strong sales growth in the face of still-sluggish consumer
spending.
Against this backdrop, we continue to pursue a two-pronged strategy ofrealigning the Soft Drinks business’s profit structure with a view to achieving
sustained profitability while also pursuing growth by building brands with ameaningful market presence.
We have been implementing marketing strategies focused mainly on
strengthening existing brands. Specific initiatives include televisioncommercials and a campaign to promote Gerolsteiner naturally carbonatedwater among consumers by expanding customer-contact points and engaging
in more proactive in-store marketing, which have cemented the products
market presence. We also ran a special sales campaign to commemorate our
Ribbon Citron brand’s 100th year on the market in a determined effort toexpand the number of stores that stock the brand.
We actively implemented cost-cutting initiatives aimed at further shoring up
stability of the segment’s earnings base. This included optimizing production
bases, placing greater focus on raw materials procurement costs, andendeavoring to reduce disposal losses in relation to both raw materials andmanufactured products.
This spring also saw our food business launch the Sapporo Potekaru range of
non-oil-fried potato chips.
The Soft Drinks business saw its unit sales for the first half of 2009 fall 19%
year over year, while sales revenue dropped ¥3.2 billion (18%) versus the firsthalf of 2008 to ¥14.8 billion. However, our ongoing program to boost earnings
power via a select-and-focus approach (selectively focusing resources on key
areas) saw the segment’s operating loss improve ¥0.2 billion from a year
earlier to approximately ¥0 billion.
Restaurants
Low-priced fast food chains continue to outperform full-service restaurants
and pubs with high average spending-per-customer as the domestic economy
struggles to develop momentum. Demand for May was also hard hit by anoutbreak of the H1N1 influenza virus, mainly in the Kansai region.
Our Restaurants business was unable to buck these overall market trends,
with comparable-store sales continuing to fall year over year for restaurants

6with a high average customer spend that are highly dependent on pre-bookedgroup events.
Our efforts to boost sales in this difficult climate have included price cuts forseasonal menu items and the introduction of low-priced appetizer-sizeddishes. We have also been working to cut costs by suspending pay increases
and putting renovation plans on hold.
The April opening of a Kakoiya restaurant in the Kasumigaseki Building
followed five other new restaurant openings in the first quarter of this year,
and we also closed one store at the end of May. So we had a total of 209
restaurant locations as of June 30.
All told, our Restaurants business’s total sales revenue declined some ¥0.7
billion (5%) versus the first half of 2008 to ¥13.2 billion, while its operating loss
worsened from approximately ¥0 billion to around ¥0.4 billion.
Real Estate
The office leasing market is growing increasingly adverse, with vacancy rates
rising and rents continuing to fall. Meanwhile, real estate values remain in
decline due to the persisting credit crunch and other factors.
Amid such an environment, our Real Estate business has been endeavoring
to maintain and boost rents and occupancy rates and further reduce costs at
Yebisu Garden Place and other existing properties, which are predominantly
located in the Greater Tokyo. Despite these efforts, upscale rental apartment
occupancy rates have stagnated in the face of deteriorating economic
conditions and a downturn in market prices. In real estate development, we
continued work on the three-story MLB Cafe Tokyo facility in Ebisu; theShinjuku office building; and the Chikusa Garden Terrace condominium
complex in central Nagoya. We also plan to acquire the Ebisu Square officebuilding as an income-generating property in August of this year.
The April 2008 sale of a 15% co-ownership stake in Yebisu Garden Placemeant that the first half of 2009 showed a year-over-year decline in bothrevenues and profits. The Real Estate business ultimately booked a ¥3.5
billion operating profit (down ¥0.1 billion, or 4%, versus the first half of 2008)
on total revenues of ¥11.1 billion (down ¥0.5 billion, or 5%, year over year).

7

2. Review of Consolidated Financial Condition
Consolidated Financial Condition
Consolidated assets totaled ¥497.7 billion as of June 30, 2009, down ¥29.5
billion from the end of the previous fiscal year (December 31, 2008) due to a
decline in cash and cash equivalents, a decline in trade notes and accounts
receivable, and a decline in goodwill attributable to our adoption of a policy
requiring the amortization of foreign subsidiaries’ goodwill.
Consolidated assets totaled ¥384.1 billion, down ¥26.2 billion from December
31, 2008 on the back of a decrease in liquor taxes payable and a decrease indeposits received stemming from the termination of beer gift voucher sales in
February 2009.
The balance of consolidated net assets declined ¥3.2 billion to ¥113.5 billion
over the first half of 2009, reflecting the amortization of foreign subsidiaries’
goodwill for previous fiscal years, payment of a year-end dividend, and a
decline in retained earning due to our net loss for the first half of 2009.
Consolidated Cash Flows
Consolidated cash flows for the six months ended June 30, 2009 were as
follows.
Operating activities provided net cash of ¥2.5 billion. Inflows mainly comprised
depreciation and amortization of ¥11.3 billion, a ¥9.7 billion decrease in tradenotes and accounts receivable, and a ¥7.5 billion decrease in other current
assets, which were partly offset by a ¥12.4 billion decrease in liquor taxes
payable and a ¥12.2 billion decrease in deposits received. The decreases inother current assets and deposits received were mainly due to the terminationof sales of beer gift vouchers.
Investing activities used net cash of ¥12.1 billion, reflecting outlays of ¥7.6
billion for the acquisition of property, plant and equipment and ¥2.0 billion forpurchases of investment securities.
Financing activities used net cash of ¥3.8 billion. Proceeds of ¥19.0 billion
from long-term debt were offset by a ¥7.4 billion decrease in short-term bankloans and ¥12.5 billion in repayments of long-term debt.
As of a result of the above, the consolidated balance of cash and cash
equivalents had fallen to ¥8.9 billion as of June 30, 2009.

8

3. Consolidated Earnings Forecasts
Based on our results for the first half of 2009—including a significant decline
in sales revenue for our Soft Drinks business—we now forecast consolidated
net sales of ¥400.0 billion for the full year ending December 31, 2009, which
would represent a decline of ¥14.5 billion (4%) versus 2008.
Our full-year profit forecasts are unchanged from those announced on
February 13, 2009. On a consolidated basis we forecast operating income of¥12.0 billion (down ¥2.6 billion, or 18%, from 2008), ordinary income of ¥8.5
billion (down ¥2.0 billion, or 19%), and net income of ¥3.0 billion (down ¥4.6
billion, or 61%).
4. Other(1) Changes affecting the consolidation status of material subsidiaries (scopeof consolidation)
None(2) Use of simplified accounting methods and/or accounting methods specificto quarterly consolidated financial statements
1) Simplified accounting methods
Calculation of deferred tax assets and deferred tax liabilities
If there have been no material changes in either the business environment or
temporary differences since the end of the previous fiscal year, the Company
uses the same earnings forecasts and tax planning strategies that it used in
the previous fiscal year to assess the likelihood of deferred tax assets being
used at a later date. If there have been material changes in the businessenvironment and/or in temporary differences since the end of the previous
fiscal year, the Company uses the earnings forecasts and tax planning
strategies that it used in the previous fiscal year but modifies them to allow for
the likely impact of these material changes.
2) Accounting methods specific to quarterly consolidated financial statements
Calculation of tax liabilities
The Company calculates tax liabilities by producing a reasonable estimate of
the effective tax rate after applying tax-effect accounting to net income before
taxes and minority interests for the fiscal year under review, which
encompasses the six-month period under review, and then multiplying net
income before taxes and minority interests by this estimated effective tax rate.
Note that “deferred income taxes” are included under “income taxes”.

9(3) Changes in accounting principles, procedures, and methods ofpresentation used to prepare the quarterly financial statements
Changes in accord with amendments to accounting standards
1) Adoption of Accounting Standard for Quarterly Financial Reporting
Effective the fiscal year ending December 31, 2009, the Company adopted
the Accounting Standard for Quarterly Financial Reporting (ASBJ Statement
No. 12) and its accompanying Guidance on the Accounting Standard for
Quarterly Financial Reporting (ASBJ Guidance No. 14). We also prepare
quarterly consolidated financial statements in accord with Japan’s Regulations
on the Terminology, Format, and Preparation of Quarterly Consolidated
Financial Statements.
2) Adoption of Accounting Standard for Measurement of Inventories
Effective the fiscal year ending December 31, 2009, the Company adopted
the Accounting Standard for the Measurement of Inventories (ASBJ
Statement No. 9) and switched from the conventional cost method of
inventory measurement to a cost method that involves reducing book values
to reflect diminished profit potential.
Due to this change, compared with what they would have been under theprevious accounting method, gross profit for the first half of 2009 was ¥489
million lower; operating income, ¥489 million lower; and ordinary income, ¥32
million lower, resulting in a loss before income taxes and minority intereststhat was ¥157 million higher than if based on the previous method.
The impact on each business segment is stated in the relevant sections of thisdocument.
3) Adoption of Practical Solution on Unification of Accounting Policies Applied
to Foreign Subsidiaries for Consolidated Financial Statements
Effective the fiscal year ending December 31, 2009, the Company adopted
the Practical Solution on Unification of Accounting Policies Applied to Foreign
Subsidiaries for Consolidated Financial Statements (ASBJ Practical Issues
Task Force Report No. 18). The resulting amortization of goodwill recorded byforeign subsidiaries meant that operating income and ordinary income for the
first half of 2009 were each ¥181 million lower than they would have been
under the previous accounting method, which translated into a loss before
income taxes and minority interests that was ¥181 million higher than if basedon the previous method. Retained earnings at the beginning of the fiscal year
(January 1, 2009) were ¥1,477 million lower than what they would have been
under the previous accounting method, reflecting deductions to coveramortization of goodwill for previous fiscal years.
The impact on each business segment is stated in the relevant sections of thisdocument.

10Additional information
Changes in useful life of property, plant and equipment
The Company and its subsidiaries in Japan have reviewed the useful lives ofproperty, plant and equipment following the 2008 revision of Japan’s
Corporation Tax Act, and effective the fiscal year ending December 31, 2009,
will use new useful lives for depreciation of machinery assets.
Due to this change, compared to what they would have been under theprevious accounting method, gross profit for the first half of 2009 was ¥689
million lower and operating income and ordinary income were each ¥693
million lower, resulting in a loss before income taxes and minority intereststhat was ¥693 million higher than if based on the previous method.
The impact on each business segment is stated in the relevant sections of thisdocument.

11

5.Consolidated Balance Sheets(in millions of yen)
June 30, 2009
AssetsI Current assets
1 Cash and cash equivalents
2 Notes and accounts receivable - trade
3 Marketable securities
4 Merchandize and finished products
5 Raw materials and supplies
6 Other
7 Allowance for doubtful receivables
Total current assets
II Fixed assets
1 Property, plant and equipment(1) Buildings and structures
Accumulated depreciation
Buildings and structures, net(2) Machinery and vehicles
Accumulated depreciation
Machinery and vehicles, net(3) Land(4) Construction in progress(5) Other
Accumulated depreciation
Other, net
Total property, plant and equipment
2 Intangible assets(1) Goodwill(2) Other
Total intangible assets
3 Investments and other assets(1) Investment securities(2) Long-term loans receivable(3) Deferred tax assets(4) Other(5) Allowance for doubtful receivables
Total investments and other assets
Total fixed assets
Total assets
Liabilities
I Current liabilities
1 Notes and accounts payable
2 Short-term bank loans
3 Current portion of long-term debt
4 Liquor taxes payable
5 Income taxes payable
6 Reserve for bonuses
7 Deposits received
8 Other
Total current liabilities
II Long-term liabilities
1 Bonds
2 Long-term bank loans
3 Deferred tax liabilities
4 Employees' retirement benefits
5 Reserve for directors' retirement benefits
6 Dealers' deposits for guarantees
7 Other
Total long-term liabilities
Total liabilities
Net Assets
I Shareholders' equity
1 Common stock
2 Capital surplus
3 Retained earnings
4 Treasury stock, at cost
Total shareholders' equity
II Valuation and translation adjustments
1 Unrealized holding gain on securities
2 Foreign currency translation adjustments
Total valuation and translation adjustments
III Minority Interests
Total net assets
Total liabilities and net assets

December 31, 2008

9,545
52,83546
15,6459,380
14,105(185)
101,373

22,49462,25839
12,5608,848
23,384(167)
129,418

360,463(181,784)
178,678
182,928(136,905)
46,022
79,111
9,178
20,225(16,055)
4,169
317,159

358,590(177,716)
180,873
180,772(134,476)
46,29678,893
9,145
20,045(16,047)
3,998
319,207

15,262
4,250
19,512

17,018
3,948
20,96629,155
11,270
4,951
16,037(1,721)
59,693396,365
497,738

26,460
10,4805,039
17,523(1,809)57,693397,868
527,286

22,12933,836
19,71023,220859
933
34,57744,496
179,762

23,82943,806
19,71035,585724
1,350
46,83541,361
213,20353,843
81,406
12,3207,494
47
32,515
16,752
204,378
384,141

53,84371,892
12,3037,531
52
32,023
19,573
197,220
410,424

53,88646,32015,013(1,070)114,150

53,88646,325
19,972(1,058)
119,126

3,505(4,287)(781)
228
113,597497,738

3,046(5,536)(2,490)226
116,862
527,28612

Consolidated Statements of Income(in millions of yen)Six months ended
June 30, 2009
AmountI Net sales
II Cost of sales

182,413
127,63154,781Gross profit
III Selling, general and administrative
expenses
1 Sales incentives and commissions
2 Advertising and promotion expenses
3 Salaries
4 Provision for accrued bonuses
5 Retirement benefit expenses
6 Other
Total selling, general and administrative expenses
Operating income
IV Non-operating income
1 Interest income
2 Dividend income
3 Foreign exchange gain
4 Gain on gift voucher redemptions
5 Other
Total non-operating income
V Non-operating expenses
1 Interest expense
2 Equity in loss of affiliates
3 Other
Total non-operating expenses
Ordinary income
VI Extraordinary gains

8,866
9,814
9,363
502
1,534
23,35653,437
1,344
199
368
86
229
248
1,132
1,764
11
182
1,958
518

1 Gain on sales of property, plantand equipment

19

Total extraordinary gains

19

VII Extraordinary losses
1 Loss on disposal of property,
plant and equipment
2 Loss on devaluation of investment securities
3 Loss on devaluation of inventories
Total extraordinary losses
Loss before income taxes and minority interests

87
125
742
(204)

Income taxes
Minority loss
Net loss

530
2
(738)

529

13

Consolidated Statements of Cash Flows(in millions of yen)Six months ended
June 30, 2009
AmountI Cash flows from operating activities
1 Loss before income taxes and minority interests
2 Depreciation and amortization
3 Amortization of goodwill
4 Increase (decrease) in employees’ retirement benefits
5 Increase (decrease) in allowance for doubtful receivables
6 Interest and dividend income
7 Interest expense
8 (Gain) loss on sales and disposal of property, plant and equipment
9 (Gain) loss on devaluation of investment securities
10 (Increase) decrease in notes and accounts receivable - trade
11 (Increase) decrease in inventories
12 (Increase) decrease in other current assets
13 Increase (decrease) in notes and accounts payable
14 Increase (decrease) in liquor taxes payable
15 Increase (decrease) in deposits received
16 Other
Sub total
17 Interest and dividends received
18 Interest paid
19 Income taxes paid
20 Income taxes refundable
Net cash provided by (used in) operating activities
II Cash flows from investing activities
1 Purchases of investment securities
3 Purchases of property, plant and equipment
4 Proceeds from sales of property, plant and equipment
5 Purchases of intangibles
6 Other
Net cash provided by (used in) investing activities
III Cash flows from financing activities
1 Net increase (decrease) in short-term bank loans
2 Proceeds from long-term bank loans
3 Repayment of long-term bank loans
4 Cash dividends paid
5 Other
Net cash provided by (used in) financing activities
IV Effect of exchange rate changes on cash and cash equivalents
V Net increase (decrease) in cash and cash equivalents
VI Cash and cash equivalents at beginning of period
VII Cash and cash equivalents at end of period

14

(204)
11,311
506
(36)
(71)
(568)
1,764
470
87
9,792
(3,549)7,514(1,884)(12,423)(12,258)
1,887
2,339
730
(1,782)(1,496)
2,792
2,584(2,091)(7,650)368(1,139)(1,658)(12,171)(7,476)19,000(12,590)(2,736)(17)(3,821)
115(13,292)
22,2178,924

Effective the fiscal year ending December 31, 2009, the Company adopted the Accounting Standard for Quarterly
Financial Reporting (ASBJ Statement No. 12) and its accompanying Guidance on the Accounting Standard for
Quarterly Financial Reporting (ASBJ Guidance No. 14). We also prepare quarterly consolidated financial
statements in accord with Japan’s Regulations on the Terminology, Format, and Preparation of Quarterly
Consolidated Financial Statements .

(4) Notes on the going-concern assumption
Not applicable(5) Segment Information
1. Segment Information by Business(millions of yen)Six months ended June 30, 2009
Alcoholic
Beverages

Soft
Drinks(January 1, 2009 – June 30, 2009)

Restaurants

Real
EstateTotal

11,138
1,105
12,244
3,561

182,4133,681
186,095
2,845

Corporate andeliminations

Consolidated

Net sales(1) Operating revenues(2) Intra-group sales and transfers
Total
Operating income (loss)

143,137
2,468
145,605(200)

14,854108
14,962(72)

13,282
13,282(443)(3,681)(3,681)(1,500)

182,413
182,413
1,344

Notes:(1) Segment classifications reflect the similarity of constituent businesses and take into account standard industry
classifications in Japan.
(2) Main products in each segment
Business Segment
Main Products
Alcoholic Beverages
Beer, happoshu and new genre beverages, wine, whiskey, shochu and other products,
distribution, brewing equipment, etc.
Soft Drinks
Soft drinks, other non-alcoholic beverages, and snack foods
Restaurants
Operation of beer halls and restaurants
Real Estate
Real estate leasing, real estate sales, operation of commercial facilities,
utility supplies, and fitness clubs(3)

Changes in Accounting Policies
1) Measurement of Inventories
As stated under "(3) Changes in accounting principles, procedures, and methods of disclosure used to prepare thequarterly financial statements" in section "4. Other," effective the fiscal year ending December 31, 2009, the Company
adopted the Accounting Standard for the Measurement of Inventories (ASBJ Statement No. 9) and switched from theconventional cost method of measurement to a cost method that involves reducing book values to reflect diminished profit
potential.
Due to this change, compared with what they would have been under the previous accounting method, operating loss in
the Alcoholic Beverages business was ¥372 million higher; and in the Soft Drinks business, ¥116 million higher in the six
months ended June 30, 2009.
2) Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements
As stated under "(3) Changes in accounting principles, procedures, and methods of disclosure used to prepare thequarterly financial statements" in section "4. Other," effective the fiscal year ending December 31, 2009, the Company
adopted the Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated
Financial Statements (ASBJ Practical Issues Task Force Report No. 18).
Due to this change, operating loss in the Alcoholic Beverages business was ¥181 million higher in the six months ended
June 30, 2009, compared with what it would have been under the previous accounting method.
3) Change in useful life of property, plant and equipment
As stated under "(3) Changes in accounting principles, procedures, and methods of disclosure used to prepare thequarterly financial statements" in section "4. Other," The Company and its subsidiaries in Japan have reviewed the useful
lives of property, plant and equipment following the 2008 revision of Japan’s Corporation Tax Act, and effective the fiscal
year ending December 31, 2009, will use new useful lives for depreciation of machinery assets.
Due to this change, compared with what they would have been under the previous accounting method, operating loss in
the Alcoholic Beverages business was ¥685 million higher; in the Soft Drinks business, lower by approximately ¥0 million;
and in the Restaurants business ¥6 million higher. By the same comparison, operating income in the Real Estate business
was lower by approximately ¥0 million.

2. Segment Information by Geographic Area (January 1, 2009 to June 30, 2009)
Sales in Japan constituted more than 90% of the consolidated sales.
Accordingly, geographical segment information has not been disclosed.
3. Overseas Sales (January 1, 2009 to June 30, 2009)
Overseas sales constituted less than 10% of consolidated sales.
Accordingly, overseas sales have not been disclosed.

(6) Notes on significant changes in the amount of shareholders’ equity
Not applicable15(amounts in millions of yen)

<Reference Data＞
Consolidated Statements of Income

Consolidated Statements of Cash FlowsSix months ended June30, 2008（B)Six months ended
June 30, 2008
AmountAmountI Net sales
II Cost of sales

193,486
135,851
57,635Gross profit
III Selling, general and administrative
expenses
Operating income (loss)
IV Non-operating income
1 Interest income
2 Dividend income
3 Rental income
4 Foreign exchange gain−

6 Other
V Non-operating expenses
1 Interest expense
2 Loss on disposal of inventories
3 Equity in loss of affiliates
4 OtherOrdinary income (loss)
VI Extraordinary gains

365
1,959
765
46
147

1 Gain on sales of property, plantand equipment

17,46911,05556,477

3 Depreciation expenses resulting from revision of residual value

1,157

4 Loss on impairment of property, plant and equipment
5 Amortization of goodwill
6 Decrease in employees’ retirement benefits
7 Decrease in allowance for doubtful receivables
8 Interest and dividend income
9 Interest expense

1,325
434
(7,342)
(364)
(541)
1,959

10 Gain on sales of property, plant and equipment(25,809)

11 Loss on sales and disposal of property, plant and equipment
12 Gain on sales of investment securities
13 Loss on devaluation of investment securities
14 Decrease in notes and accounts receivable - trade
15 (Increase) decrease in inventories
16 Increase (decrease) in notes and accounts payable
17 Increase (decrease) in liquor taxes payable
18 Increase in other current liabilities

2,687
(4)
85
12,271(1,222)(1,423)(14,476)
8,996

204
336
22
41

5 Equity in income of affiliates

I Cash flows from operating activities
1 Income (loss) before income taxes and minority interests
2 Depreciation and amortization

970

2,919
(790)

−

25,80919 Other(143)

2 Gain on sales of investment
securities

4

Sub total

4,957

3 Reversal of provision for doubtfulreceivables

48

20 Interest and dividends received

4 Compensation income from store
closures111

21 Interest paid

(1,980)5 Subsidy for installation of vending
machine−22 Income taxes paid

(2,799)25,973VII Extraordinary losses
1 Loss on disposal of property,
plant and equipment
2 Loss on impairment of property,
plant and equipment
3 Depreciation expenses resulting fromrevision of residual value
4 Provision for gift voucher redemptions
5 Loss on revision of retirement
benefits plan
6 Early retirement benefits
7 Business reorganization costs
8 Amortization of goodwill
9 Devaluation of marketablesecurities and investments

Net cash provided by (used in) operating activities
2,687

1 Payments for time deposits−

2 Proceeds from time deposits

746

Current income taxes
Deferred income taxes
Minority interests
Net income

3 Purchases of investment securities

1,178

4 Proceeds from sales and redemption of investment securities

247
1,441
−

5 Purchases of property, plant and equipment
6 Proceeds from sales of property, plant and equipment
7 Purchases of intangibles

85

2,146
5,760

887

II Cash flows from investing activities

1,325

Income before income taxes and minority
interests

709

(298)
578
(1,135)
104(11,505)
48,996(2,385)

7,712

8 Increase in long-term loans receivable(520)

17,4699 Collection of long-term loans receivable

153

7,906
31
9,594

10 OtherNet cash provided by (used in) investing activities
III Cash flows from financing activities
1 Increase (decrease) in short-term bank loans
2 Proceeds from long-term debt
3 Repayment of long-term debt
4 Proceeds from issuance of bonds
5 Redemption of bonds
6 Net increase (decrease) in commercial paper
7 Cash dividends paid
8 Other
Net cash provided by (used in) financing activities
IV Effect of exchange rate changes on cash and cash equivalents
V Net increase (decrease) in cash and cash equivalents
VI Cash and cash equivalents at beginning of perod
VII Cash and cash equivalents of additional consolidated
subsidiaries
VIII Cash and cash equivalents at end of period

16(2,436)31,553(19,168)
10,833(19,122)
3,843−(4,000)(1,957)160(29,411)
(142)
2,886
5,881
−
8,768

Segment Information
1. Segment Information by BusinessSix months ended June 30, 2008

(millions of yen)(January 1, 2008 ‒ June 30, 2008)

Alcoholic
Beverages

Real
EstateTotal

SoftDrinksRestaurants

Corporate andConsolidated
eliminations

I Net sales and operating expenses
Net sales(1) Operating revenues(2) Intra-group sales and149,593
2,722

18,112
117

14,043−

11,736
1,179

193,486
4,019−(4,019)193,486−

152,316
153,257(941)

18,23018,601(370)

14,04314,085(42)

12,916
9,189
3,726

197,505
195,133
2,372(4,019)(2,804)(1,215)

193,486
192,329
1,157

transfers
Total
Operating expenses
Operating income (loss)

Notes:(1) Segment classifications reflect the similarity of constituent businesses and take into account standard industry
classifications in Japan.
(2) Main products in each segment
Business SeMain Products
Alcoholic beBeer, happoshu and other beverages, wine, whiskey, shochu and other products,
distribution, brewing equipment, and agribusiness
Soft drinks Soft drinks and other non-alcoholic beverages
Restaurant Operation of beer halls and restaurants
Real estate Real estate leasing, real estate sales, operation of commercial facilities,
utility supplies, and fitness clubs

17