Sapporo Group Business Results for 2022
Management Plan for 2023

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

SB: Sapporo Breweries Ltd.

PS: Pokka Sapporo Food & Beverage Ltd.

SLN: Sapporo Lion, Inc.

February 15th 2023
URL https://www.sapporoholdings.jp/en/

SRE: Sapporo Real Estate Co., Ltd.
Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

1/54

１. Summary

・・・P3 ~P5

２. Business Results for 2022

・・・P6~P14

３. Management Plan for 2023

・・・P15~P36

４. Appendix

・・・P37~P54

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

2/54

Summary

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

3/54

Summary➢ Overall Results for 2022
⚫ Increased revenue and profit
・Revenue +9.4%
Main factors were revenue growth of alcoholic beverages overseas, especially in North America, and the recovery incommercial-use products in Japan alcoholic beverages and restaurant businesses
・Core operating profit +14.4%
Implemented price revisions in response to higher costs, such as surging raw material costs, and responded quickly
including cost controls
Effects of structural reforms in the Restaurants and Food & Soft Drinks businesses also contributing steadily to bottom line
⚫ Formulation of new Medium-Term Management Plan
・Acquisition of Stone Brewing Co., LLC.
Obtained manufacturing sites to accelerate growth and establish a foothold for accelerating the pace of growth・Decisive implementation of structural reforms to accelerate growth
Focus on capital efficiency
Clarified businesses to tap into stronger growth and businesses to reorganize or exit

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

4/54

Summary➢ Policy for 2023
⚫ Promote specific initiatives to enhance corporate value (initial fiscal year of the Medium-Term Management Plan)
・Strengthen Japan beer business and realize effects of Sendai Brewery reorganization
・Develop foundation for growth in U.S.
・Reshuffle business portfolio and complete fundamental changes by 2024
・Conduct appropriate monitoring
・Initiatives for key sustainability issues⚫ Achieve plan through steady implementation・Revenue +2.4% and core operating profit +45.0%
・Plan to hike dividend (42 to 45 yen) to return more profits to shareholders

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

5/54

Business Results for 2022

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

6/54

Financial Highlights for in FY2022（billions of yen）

2021
Result2022
ResultYoY changes(amount)

YoY changes
(%)

437.2

478.4

41.3

9.4%

Revenue（Excluding liquor tax）

331.2

364.2

33.0

10.0%

Overseas revenue

74.5

102.2

27.7

37.2%

EBITDA

28.6

29.9

4.3%

Core operating profit

8.1

9.3

1.2
1.2

14.4%

1.9%
13.9
22.0

1.9%
0.8
10.1

ー

ー
(94.3%)

21.2
12.3
7.9%

11.4
5.4
3.3%

(13.1)(11.9)(9.8)(6.9)(55.8%)

ーー

RevenueCore operating profit margin
Other operating income (expense)
Operating profit
Profit before tax
Profit attributable to owners of parent
ROE(54.1%)(46.3%)The balance of debt excludes the balance of lease obligations.
Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

7/54

Financial Highlights for in FY2022
2021
Result2022
ResultYoYchanges(amount)

YoYchanges
(%)

437.2

478.4

41.3

9.4%

289.7

334.6

45.0

15.5%

Japanese

228.6

245.4

16.8

7.3%

Overseas

53.4

74.0

20.5

Restaurants

7.6

15.3

Food & Soft Drinks

125.5Real Estate

21.9（billions of yen）

Revenue by Segment
Alcoholic Beverages

Other

0.2

2021
Result2022
ResultYoYchanges(amount)

YoYchanges
(%)

8.1

9.3

1.2

14.4%

5.4

7.7

2.3

42.1%

Japanese

7.9

8.5

0.6

7.0%

38.4%

Overseas

1.7

(0.3)

(2.0)

ー

7.7

101.0%

Restaurants

(4.2)

(0.5)

3.7

ー

122.9

(2.5)

(2.0%)

Food & Soft Drinks

0.7

1.8

1.1 148.2%

20.7

(1.1)

(5.2%)

Real Estate

8.2

6.5

(1.8)

(21.5%)(15.5%)

Other・ General
corporate andintercompany eliminations

(6.2)

(6.6)

(0.4)

ー

0.1

(0.0)

（billions of yen）

Core Operating Profit
by Segment
Alcoholic Beverages

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

8/54

Financial Summary in FY2022
Revenue increased overall driven by the alcoholic beverages business
Main factors were revenue growth of overseas alcoholic beverages predominantly in North America, commercial-use market recovered,initiated price revisions in response to rising costs, and effect of exchange rates

Reasons for changes in sales revenue

Food & Soft Drinks

Alcoholic
Beverages(billions of yen)

= Increase= Decrease

Effect of exchange rates +¥11.5 billion: overseas alcoholic beverages +¥8.6 billion and overseas soft drinks +¥2.9 billion

Japanese

Canada +11.8
The U.S. +8.5
(for exchange
rate +8.6)

Real Estateexchange
rate +2.9
2022

2021

vending
machine(4.0)

Transfer ofcafe business(6.6)

Sale of
Property(0.8)

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

9/54

Financial Summary in FY2022
Increased profit thanks to the effects of increased revenue and structural reforms of the Restaurants and Food & Soft Drinks businesses
despite the impact of rising raw materials costs, etc.
Steadily implementing price revisions in response to higher costs such as surging raw material costs, etc.
Decrease in revenue caused by surging raw material costs: ¥(10.0) billion

Reasons for changes in core operating profit(billions of yen)

= Increase

Volumeincrease+2.9

Alcoholic Beverages

Food & Soft Drinks

Japanese
Decrease invending machinecosts +1.2

= Decrease

Real Estate*YGP: Yebisu Garden Place*commercial complex: center plaza

Structuralreform +1.5

2022
2021

Sales promotion
costs (1.4)
Increase in
Sendai Brewery
depreciation (1.0)

vending
machine(1.1)
Stone P/L andone-off cost (1.7)

Depreciation of book value of facilities planned for removal by reducing useful life

Sale of
Property (0.5)
YGP* etc(1.3)

Commercial complex*including renewal

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

10/54

Review of Financial Results for 2022
Alcoholic beverages in overseas

Alcoholic beverages in Japan
Enhanced beer and RTD amid various changes in operating
environment*SPB: SAPPORO PREMIUM BEER

Acquired all shares of Stone Brewing Co. LLC
Accelerated pace of overseas business growth centered on SPB*U.S.

Inflation

Protraction ofpandemic

Unique beer marketingleveraging diversity

Revised prices foralcohol including beer
and RTD
Growth of new main
genres and RTD throughfocus strategy

Despite total demand falling below 2021, Sapporo brand posted its bestever sales results
Significant growth at +% year-on-year
Recovery ofcommercial-use
products

Expansion of retail stores forhome-use products

Meanwhile, greatly impacted by surging logistics costs. Improving low efficiency logistics
network an issue

CanadaSleeman achieved record high profits
Despite total demand falling around 4%, Sleeman Breweries managed toincrease sales volume by % year-on-year

Beer up％ y-o-yGOLD STAR up ％ y-o-yVietnam

RTD

Sapporo Vietnam achieved record high profits
sales volume up% year-on-year amid recovery in the Japan market andstrong exports

up ％ y-o-yContinuing to enhance beer and RTD to achieve greater
profitability and business growth

Aim for early creation of synergy with Stone andfor greater growth
Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

11/54

Review of Financial Results for 2022
Food & Soft Drinks

Alcoholic beverages in restaurants

Implemented structural reforms aimed at “shifting
management resources to growth areas”

Enhanced corporate structure throughstructural reforms
Greatly narrowed loss through structural reforms promoted since 2020
Bar graph: Trend in restaurant business core operating profit (billions of yen)Line graph: Trend in number of Sapporo Lion restaurants (change with 2019 as 1)

Achieved profitability since Q2
0.3
0.1
0.1

0.4
1

2019

2020

2021

2022_Q1

2022_Q2

2022_Q3

2022_Q4
0.7(1.0)

Reduced thenumber ofrestaurants by
30%

Structural Reforms*PVS:Public Vending Services, Inc.

Reorganization of vending machine operator subsidiaries
Liquidation of PVS* in November 2022

Transfer of cafe businessBusiness sold in April, 2022

Reorganize business locations of Shinsyu-ichi Miso
Production site sold in February, 2022
Growth strategy

Kireto Lemon
Achieved record high shipments
7 consecutive years

Softdrinks sales overseas trended favorably
Singapore+7%、export+15%

(4.2)

(5.0)

Focus on strengthening revenue base and generating synergies
with the Japan alcoholic beverages business
Achieve profitability in 2023

Decisively implement fundamental structural reforms by 2024
Focus on Lemon brand businesses and grow overseas soft drinks
12/54
Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

Review of Financial Results for 2022
Real estate*YGP: Yebisu Garden Place

Enhanced property value of YGP* and implemented measures to diversify
revenue structure
Working to improve value of YGP* properties
Began updating HVAC

Completed seismic damping work

Systematically update over about 10 years
working on 2 to 4 floors each year
Improve indoor environment in office area andenhance functions as office space

Significantly reduces the degree of building sway and theduration of strong shaking
Transformed into a cutting edge earthquake-resistant building
providing greater safety and security to all users

2022 onward

April 2022

August 2022

Introduced renewable energy
Electricity procured by SRE and supplied to YGP* will be switched to renewableenergy, including in tenant areas(Significantly reduced CO2 emissions by 33%)

Initiatives to diversify revenue structure
Equity investments: 4 cases

November 2022

Grand opening of center plaza
Steady growth in visitor traffic
Also, successfully attracting younger
visitors*Closed no. 4 parking lot at Sapporo factory
Launched the renewal project for an eight-story commercial
complex and office building in the evolving east area
Grand opening planned for August 2024.
*Closing of no. 4 parking lot at the Sapporo factory:
one of the parking lots at the factory (commercial complex)

Aim to build asset turnover business model that enhances competitiveness by increasing
property value and promoting community development with a long-term time horizon
Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

13/54

Review of Financial Results for 2022
Vs. plan: operating profit achieved the plan (+¥2.8 billion), but revenue (¥(0.3) billion) and core operating profit (¥(0.7) billion) fell short
Main factors for core operating profit falling short of plan: sharp uptick in logistics costs for overseas alcoholic beverages and one-off costs,
etc. from the Stone acquisition

Reasons for changes in core operating profit（Plan variance factor）
Breakdown of overseas alcoholic beverages business(billions of yen)

= Increase= Decrease

2022
plan

Vs.planlogistics
costs

Stone P/L andone-off cost

2022
plan

2022
actual

2022
actualOthersJapanese Overseas Restaurants

Food & Soft
Real Estate
DrinksOther

Achieve synergies with Stone Brewing and improve profitability
14/54
Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

Management Plan for 2023

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

15/54

Assumptions of Management Plan for 2023
Higher costs such as surging raw material costs

Impacts of the COVID-19 pandemic

Expect cost increases of ¥12.5 billion yen compared to 2022. We’ll
respond with various price revisions and cost controls implemented in
2022.
Respond to risk of additional cost increases by closely monitoring thesituation

Japan alcoholic beverages: commercial-use sales
volume expected to recover to 73% of 2019 level
Restaurants: Expected to recover to 87% of 2019 level
92.7%

Alcoholicbeverages
beverages in Japan
Alcoholicin Japan
77.9%
58.9%

63.6%

77.4%

69.3%

67.1%

68.6%

72.9%

61.9%
54.3%

Results for 2022

43.8%
30.6%

Rising raw materials costs, etc ¥(10.0) billion(Domestic ¥(6.0) billion, overseas ¥(4.0) billion)

Bar graph: Commercial-use (bottles and kegs) Sales Volume Results and Plan (vs. 2019)Line graph: Total Demand for Commercial-use Products (vs. 2019) (estimated by Sapporo HD)

Alcoholic beverages in resutaurants

99%
92%

83%
74%
58%

53%

85%

92%

87%

79%

76%
61%

39%

Bar graph ：Sapporo Lion restaurants existing store Sales Results and Plan(vs. 2019)

Outlook for 2023

Rising raw materials costs, etc ¥(12.5) billion(Domestic ¥(10.0) billion, overseas ¥(2.5) billion)

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

16/54

Group Management Plan 2023
（billions of yen）

2022
Result2023
Plan

YoY changes(amount)

YoY changes
(%)

478.4

490.0

11.6

2.4%

Revenue（Excluding liquor tax）

364.2

374.2

9.9

2.7%

Overseas revenue

102.2

111.8

9.6

9.4%

EBITDA

29.9

34.7

16.2%

Core operating profit

9.3

13.5

4.8
4.2

1.9%
0.8
10.1

2.8%
(0.4)
9.5

ー

ー
ー

11.4
5.4
3.3%

7.7
5.5
3.3%

(4.8)
(0.6)
(3.6)

(32.0%)

0.1

0.9%

ー

ー

RevenueCore operating profit margin
Other operating income (expense)
Operating profit
Profit before tax
Profit attributable to owners of parent
ROE

45.0%

(6.0%)The balance of debt excludes the balance of lease obligations.
Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

17/54

Group Management Plan 2023

Financial Targets
2022 Result

2023 Plan

2026 Target

3.3%

3.3%

8.0%

9.3billion yen

13.5billion yen

25.0billion yen

16.2%

About 10%34.7billion yen

50.0billion yen

9.4%

About 10%111.8billion yen

140.0billion yen

ROE(Approximation) Core
operating profit*

EBITDA
Average growth rate (CAGR)(Approximation) EBITDA

29.9billion yen*

Overseas revenue
Average growth rate (CAGR)(Approximation) Overseas*
revenue

102.2billion yen*Approximation for achieving financial targets

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

18/54

Group Management Plan 2023
2022
Result

2023
Plan

YoY
changes(amount)

YoYchanges(%)

2022
Result

2023
Plan

YoY
changes(amount)

YoYchanges
(%)

478.4

490.0

11.6

2.4%

9.3

13.5

4.2

45.0%

334.6

347.0

12.4

3.7%

7.7

13.4

5.6

72.8%

Japanese

245.4

250.0

4.6

1.9%

Japanese

8.5

12.5

4.0

47.6%

Overseas

74.0

80.0

6.0

8.2%

Overseas

(0.3)

(0.5)

0.8

ー

Restaurants

15.3

17.0

1.7

11.1%

Restaurants

(0.5)

(0.4)

0.9

ー

Food & Soft Drinks

122.9

121.0

(1.9)

(1.6%)

Food & Soft Drinks

1.8

2.4

0.6

34.0%

Japanese

98.3

95.0

(3.3)

(3.4%)

Japanese

0.9

1.3

0.4

44.8%

Overseas

24.6

26.0

1.4

5.8%

Overseas

0.9

1.1

0.2

23.2%

Real Estate

20.7

22.0

1.2

6.0%

Real Estate

6.5

5.9

(0.6)

(9.3%)

(6.6)

(8.1)

(1.4)

ー

（billions of yen）

Revenue by Segment
Alcoholic Beverages

Other

0.1

0.0

(0.1)

(71.5%)（billions of yen）

Core Operating Profit
by Segment
Alcoholic Beverages

Other・ General
corporate andintercompany eliminations

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

19/54

Group Management Plan 2023
Drivers behind increased revenue of Alcoholic Beverages business
Main factors will be price revisions of Japan alcoholic beverages, strengthening of beer/RTD, and inclusion of results of Stone Brewing inoverseas alcoholic beverages, etc.

Reasons for changes in sales revenue(billions of yen)

= Increase

Effect of exchange rates ¥(4.7) billion: overseas alcoholic beverages +¥(4.7) billion

Food & Soft
DrinksAlcoholic
Beverages

Real Estate

Stone+11.1
Canada+0.7

Japanese

The U.S.+2.8*YGP: Yebisu Garden Place

Overseas
YGP*+10= Decrease

2023
plan

2022
resultBeer(8.0)
RTD(4.0)

Reflect risks in plan if sales volume is onparwith total demand

Vending
machine/
SKU
reduction(4.5)

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

20/54

Group Management Plan 2023
We expect higher costs amid additional surges in raw materials costs, but profit will increase amid increased revenue of Japan alcoholic
beverages and structural reforms of the Food & Soft Drinks business
Decrease in revenue caused by surging raw material costs: ¥(12.5) billion

Reasons for changes in core operating profit
Alcoholic
Beverages(billions of yen)

= Increase

Variety mix+1.1

Japanese

Food & Soft Drinks

Real Estate

structural reform+0.5

structural reform+1.0Japanese= Decrease

2023
plan

2022
resultSales
promotion
costs
(3.5)

Personnel andfacilities costs,etc
(1.2)

Hotel
renovations(0.5)

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

21/54

Group Management Plan 2023

Target for core operating profit
2022 Result

2023 Plan

2026 Target

Alcoholic beverages in Japan

3.5%

5.0%

5.7%

Alcoholic beverages in Overseas(0.4%)

0.6%

6.2%

Alcoholic beverages
in Restaurants(3.3%)

2.1%

5.0%

Food & Soft Drinks
In Japan

0.9%

1.3%

3.8%

Food & Soft Drinks
In Overseas

3.6%

4.2%

5.0%

Real Estate ※

4.9%

4.6%

5.7%

*EBITDA-based ROA
Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

22/54

Group Management Plan 2023
Balance sheet reforms

Dividend plan

Reduce cross-shareholdings ofstocks (2022 Result)

Plan to increase dividend in 2023

Sale amount (million yen)
Number of brands (brands)¥(2022)¥(plan for 2023)

Dividend policy
Achieve a consolidated dividend payout ratio of at least 30% with thecurrent level as the lower limit.
Seek to increase the dividend level following enhancements tocorporate value.
2017

2018

2019

2020

2021

2022

*The divested amount and number of stocks include SH and SB.

In case profit attributable to owners of parent largely fluctuates due tospecial extraordinary factors, the dividend amount will be determinedbase on the impacts.

Set to reduce the ratio of book value of cross-shareholdings to total
equity attributable to owners of parent to less than 20% by 2026.
Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

23/54

Monitoring System for Achieving the Medium-Term Management Plan Targets
The Board of Directors will conduct appropriate monitoring to increase the attainability of the plan’s targets
Progress will be disclosed to stakeholders
Monitoring by supervision side (Board of Directors including outside directors)
Decision making and business execution by execution side
Monthly and quarterly progress management of action plan and
KPIs

Review of business portfolio annually

Setting of appropriate KPIs and action plan

Execution of action plan

Review of measures

See p.25 for details about action plan and KPI details

Careful examination of direction annually from six
perspectives, mainly ROIC and profitability, i.e., achievementof core operating profit targets

Timely disclosure to stakeholders

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

24/54

2023 Action Plan
2023
Japan alcoholic
beverages

Increase beer sales(1-1)

2024★ Alcohol tax revisions

2025 to 2026
★ Alcohol tax revisions

Increase RTD sales(1-2)
Reorganize RTD production locations(2)Overseasalcoholicbeverages

Generate synergies through function integration(3-1)
Begin producing SPB (barrel-aged beer) in the U.S.(3-2)
Optimize global production and logistics(3-3)

Restaurants

Reduce unprofitable restaurants(4-1)
Shift focus to new formats(4-2)

Japan Food &Soft Drinks

Fundamental structural reforms(5)Overseas Soft
DrinksIncrease sales in countries with room for growth(6)Real Estate

Build an asset turnover business model(7)Increase value of corporate properties centered on YGP(8)Entire Group

Fundamentally reshuffle business portfolio(9)Fundamentally reshuffle by 2024 and review the business portfolio annually thereafter

Generate Group synergies around brand and connections with customers and communities(10)Plan to steadily disclose details of action plan
Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

25/54

2023 Action Plan
Japan alcoholic beverages

Increase Beer & RTD sales（1-1~2）
Take action to increase sales of beer and RTD eyeing revisions to alcohol tax and the recovery of restaurant demand(10,000 cases)

Plan

YoY

vs 2019

Total demand
outlookvs 2019
YoY

Japanese beer and beer-type
beverages total

3,943

+0%

(9%)

(3%)

(14%)

Beer

2,816

+5%

(6%)

+2%

(9%)

Happoshu

101

(33%)

(52%)

(6%)

(9%)

New genre

1,026

(8%)

(9%)

(8%)

(21%)

Bottles

-

+11%

(19%)

+11%

(39%)

Cans

-

(4%)

+0%

(6%)

(8%)

Kegs

-

+12%

(30%)

+13%

(29%)

RTD

1,443

+18%

+60%

+0%

-

Non-alcoholic beer and low
alcohol beer taste beverage

80

+16%

+14%

+3%

-

2023 sales plan

Market outlook
Beer

New genres
Happoshu

RTD

Non-alcohol
Low-alcohol

Recovery in restaurant market becoming stronger
Sales of canned beer will decline momentarily on the recovery inrestaurants, but should increase again with alcohol tax revisions
Accelerating exodus to other categories following alcohol tax
revisions

Expected inflow from new genres following alcohol tax revisions
will lead to growth again

Sales trending strongly
Large room for market revitalization

Genre

Container

633ml x 20 bottles for beer, non-alcoholic beer and low alcohol beer taste beverage
250ml x 24 bottles for RTD

Sales of beer and RTD expected to increase over the medium to long term, while sales of new genres will decline. 2023 could see temporary weakness inhousehold-use sales due to the recovery in restaurants.

Recreate a new brand system centered around core brands, turnaround the low profit
26/54
situation, and achieve business growth
Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

2023 Action Plan
Products that create new markets

Promote increased appeal of beerStrengthening
mainstay brands

Creation of new categories/new categories/new
competitive edge

Increase appeal of our many
beer brands
Lager beer

Set to release New Lemon Sour, which will be promoted as going greatwith a meal to create new demand
Create a new “wave” in the RTD market to invigorate it
Pursue “the essence of Lemon Sour” to create the perfect lemon sour thatwill keep customers coming back
Joint development with Pokka
Deliver a refreshingly great taste with the authentic and juicy taste of lemon

Establish a presence under
the nickname Red Star,
Japan’s oldest beer brandTo be released on February 21

Classic

NIPPON HOP

Released as Limited Edition
Hokkaido, a precursor tolimited edition regional beers
Increased sales year-on-year
13 years running

Promote increased
appeal of beer bycreating a series of
products made from raredomestic hops

To be releasedon March 22

New proposals that contribute to well-being
Proposal of new IPA product in non-alcoholic beer category
Invigorate market by improving taste
To feature robust bitterness with refreshing aromatics similar to IPA

Yowanai CRAFT
To be released on April 4

Focus on high margin beers
Increase share of beer to 79%

Increase high added-value products
Seek to increase prices

Share of beer

Selling price before
alcohol tax

Focus on reasonable
investment
・GOLD STAR・Focus resources on Koime no Lemon Sour

Real experiences atrestaurants
Increase premium feel with restaurant experiences
Contribute to restaurant industry and improved livingof customers

Target for vs 2022
(2022)(2026)

Up 5%
year-on-year

Up 36%
year-on-year

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

27/54

2023 Action Plan
Japan alcoholic beverages

Reorganize RTD production locations（2）Start production of RTD in Sendai eyeing
further growth of the RTD business

Cost reduction effectBackground: RTD market expected to grow over the medium to long term
35,0002023 will see a reverse in accelerated depreciation and theeffect of increased productivity+several hundred million yen

Our projection: calculated by 250ml x 24 bottles (10,000 cases)+¥1.0 billion

30,00025,000Effect of increased productivity

20,000

Reduced fixed costs
associated with beer
plant reorganization

15,000Effect ofmovingproduction
in-house

10,0005,000

forecast

2025年

2023年

2021年

2019年

2017年

2015年

2013年

2011年

2009年

2007年

2005年

2003年

2001年

1999年

1997年

1995年

1993年

1991年

1989年

0

¥(0.1) billion

Before: products supplied using in-house manufacturing facilities of Shizuoka
Plant + external manufacturing functions

One-off expenses
due to accelerated
depreciation

After reorganization: in-house production capacity will be doubled to increase in-housemanufacturing rate¥(1.0) billion

2021(2022)

Reduced accelerated
depreciation

2022

2023

2024

(2026)

Achieve (1) cost savings, (2) improve responsiveness to newly developed products, and (3)increase elasticity of supply-demand
Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

28/54

2023 Action Plan
Overseas alcoholic beverages

Growth of SPB* in the U.S.

Achieve synergies with Stone Brewing quickly（3-1~3）

vs 2010x growth

Further growth of SPB* in the U.S. as well as lower logistics costs
and stabilize quality through local production for local
consumption

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Generate synergies throughfunction integration

Optimize global production and logistics
Relocate production from Vietnam to U.S.

Increase sales of SPB* and Stone brands
through joint sales and marketing

Lower production costs by increasing utilization
rate of Stone’s two plants
Utilization rate of Vietnam plant will cover increased
manufacturing for Vietnam, APAC and Europe

Lower administration costs through function
merger centered on administrative divisions

up to
2023
2022
August 2022
Acquired all shares of Stone Brewing

Cost synergy(2023)

Cost synergy

2024
onwardBegin producing SPB (barrel-aged beer) in the U.S.

(2026)

Relocate production from Canada to U.S.
Lower production costs by increasing utilization rateof Stone’s two plants
Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

29/54

2023 Action Plan
Restaurant

Reduce unprofitable restaurants （4-1~2）
Shift focus to new formats
Complete closures of unprofitable restaurants before the end of 2023
Improve profitability by shifting focus to new formats(Promote store openings in “small and suburban” format focused on
Yebisu and LEO*Marketing share calculated by Sapporo Holdings based on data reported byNielsenIQ through Market Track Service using RTD tea category for 260
weeks up to December 2022 Copyright © 2023, NielsenlQ

Overseas Soft Drinks

Increase sales in countries with room for growth（6）Maintain high market share in Singapore, enhance sales structure in Malaysia, andachieve sales growth by expanding the export business for the Middle East, etc.
Maintain high or top market share in tea soft drinks

Singapore Sales amount plan(vs. 2022)

60.00%

Value share %58.00%

Expand distribution

56.00%

54.00%

Japan Food & Soft Drinks

Raise recognition of Pokka brandFundamental structural reforms（5）52.00%As a result
50.00%
2018

Implement actions in the Medium-Term Management Plan by 2024
Decisively implement fundamental structural reforms⚫

Divest/Exit unprofitable businesses and non-core businesses⚫

Fix structural issues through business partnerships⚫

Advance further structural reforms of vending machine business⚫

Significantly reduce soft drink and soup SKUs⚫

Reorganize multiple production locations⚫

Promote growth strategy by shifting resources to Lemon brandbusinesses

Plan to steadily disclose specifics of structural reforms

Malaysia Sales amount plan
Malaysia market is growing(vs. 2022)

2019

2020

2021

2022

Nielsen Market Track "RTD TEA market share" *Expand distribution

Raise recognition of Pokka brandSeek to expand
sales in thegrowing Malaysia
marketEuromonitor International `Market size RTD Tea`

Our market share (Malaysia)(2018) to(2022)

using the know-how gained in
Singapore

ExportSales amount plan(vs. 2022)

Plan to expand mainly in Middle East

Nielsen Market Track "RTD TEA market share" * Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

30/54

2023 Action Plan
Real Estate

Asset share of securitization business

Build an asset turnover business model（7）Move ahead with preparations to establish private
placement fund and REIT

(2022)(2026)

Aim to establish REIT Preparation Office in spring 2023 and investment advisory firm in autumn
Real Estate*YGP: Yebisu Garden Place

Increase value of corporate properties centered on YGP* (8)Increase value of YGP*HVAC will be updated in the office building and value
engineering work for security will be carried out to increase
its value
Aim to increase rents following enhanced value
proposition
2026

Increase asset value of Sapporo area - Grand opening of Hotel Sosei
Sapporo M Gallery Hotel Clubby Sapporo, located on the west side of Sapporo Factory will be renovated
A hotel management agreement will be concluded with Accor, one of the world’s largest hospitality groups
based out of Paris, France, and the hotel will be renamed and reopened as Hotel Sosei Sapporo M Gallery
in early 2024.
Accor: Based in Paris, France, Accor is one of the world’s largest hospitality groups, with more than 5,300 hotels
and residences and over 10,000 restaurants and bars under management in 110 countries around the world.
MGallery: a luxury boutique hotel brand of the Accor Group(vs 2022)

Shifting all properties to electricity generated from renewable energy to further promote the use of renewable energy
We’re decided to decarbonize the electricity that powers all of our properties and expect to reduce our own CO2 emissions by around 13,000 tons annually* (equivalent to an approx. 56%
reduction in SRE’s CO2 emissions)We’ve created a renewable energy roadmap to “switch all electricity to renewable energy” and “achieve energy creation where we generate our own energy to power our operations”*Expect to reduce CO2 emissions by approx. 25,000 tons annually when including tenants
Switch YGP*’s electricity torenewable energy

2022 onward

Switch electricity of all owned
properties to renewable energy

2023 onward

Switch all electricity torenewable energy
Decarbonize the company

2025 onward

Achieve energy creation for theelectricity used by the company

2040 onward
Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

31/54

2023 Action Plan
Entire Group

Fundamentally reshuffle business portfolio（9）Studied each business from six perspectives and categorized them into four quadrants.
Businesses categorized as “business liquidation” will be promptly executed.
Other businesses will be carefully monitored annually for achievement of main criteria including ROIC
and core operating profit
Strengthen and Grow
Structural Reforms

Approach to Portfolio Consolidation
MarketEnvironment【Profitability】

・Growth potential
・Competitive environment

ROIC, OP margin, etc.

Strengths
・Highly Unique Brands

Restructuring
・Japan Food andSoft Drinks

・ Overseas Alcoholic
Beverages

・Restaurants

・ Overseas Beverage【Synergy】
Synergy with other group businesses

Divestment
・Some of Alcoholic
Beverages

Sustainability
・Relationships with
Customers and Local
Communities

Growth【Resource allocation】
Priority for investment of resources

・Some of Food andSoft Drinks

Strengthen
Profitability
・ Japan Alcoholic
Beverages
・ Real Estate

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

32/54

2023 Action Plan
Entire Group

Generate Group synergies around brand and connections with customers and communities（10）Japan alcoholic beverages x Japan food & soft drinks
Set to release New Lemon Sour, which will be promoted as goinggreat with a meal to create new demand

Japan alcoholic beverages x real estate
Experience at Yebisu Garden Place promotes drinking of Yebisu Beer
Surveyed connection between experience at Yebisu Garden Place and drinking intentionof Yebisu Beer
The survey found that compared to people who did not visit Yebisu Garden Plan,people who did had a higher intention to drink Yebisu beer at home or at arestaurant, with a particularly high tendency to drink it at a restaurant
Drinking intention at home (n=532)

liquor professional

Drinking intention at restaurant (n=435)

lemon professional
To be released on
March 22

Japan alcoholic beverages x restaurants
Increase dissemination of Black Label and Yebisu brands
Black Label THE BAR x Black Label brand

YEBISUBAR x Yebisu brand<About the survey>■Targets: survey provided to 1,000 men and women in Tokyo between the ages of 20 and 69 (Including
people who don’t drink beer)■Method: online survey■Period: January 13 to 15, 2023

By increasing the value and appeal of Yebisu Garden Place going forward,
we will contribute to Ebisu’s community development and increasing thevalue of the beer brandCopyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

33/54

Action Plan KPI
Establish KPI for each business segment and manage progress appropriately to achieve the targets of the Medium-Term Management Plan
PowerPoint materials for Medium-Term Management Plan

Japan alcoholic
beverages

2022

2023

2026

Vs. 2022

Increase beer sales: share of beer sales（1-1）

68%

71%

79%

Improve profit margin: selling price excluding alcohol tax（1-1）

－

+¥5.0
billionReinforcement of Beer / Improving Profitability of Beer-type Bev.

+9%

+11%

（year-on-year）（VS 2022）

+23%

+74%

（ year-on-year ）（VS 2022）

73%

64%

88%

6.61million
cases

7.47million
cases

10.0million
cases

-

$4M

$23M

Japan food & soft Cost Structure Reforms（5）drinks

-¥1.0billion¥2.0billion

Overseas softdrinksExpanding Sales and Increasing Logistics Efficiency
Overseas sales amount (6) *Local currency basis-

Real Estate

Revenue Structure Diversification

RTD Business Growth and Production Streamlining, Etc.

RTD growth: RTD sales amount（1-2）
Increase production efficiency: ratio of in-house production（2）Overseasalcoholicbeverages

Stone Acquisition Synergy / SPB Growth

Sapporo brand volume （3-1~3）
Cost synergy（3-1~3） *Forex assumption: ¥130

-

+3%

+30%

（ year-on-year ）（VS 2022）

3.7%

7.2%

19.2%

-

+0.4%
（ year-on-year ）+2.5%（VS 2022）¥1.0billion（ year-on-year ）¥0.5billion（ year-on-year ）-Asset share of securitization business (7)Increase value of YGP*

*YGP: Yebisu Garden Place

Rate of increase in average rent price (8)Entire Group

Drastic Reorganization of Unprofitable Businesses, Etc.（9）+¥4.0billion+¥4.0
billion+¥2.0
billion+¥2.0
billionCopyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

34/54

Sustainability Management Initiatives: Key Sustainability Issues
Total revision of key sustainability issues when formulating the Medium-Term Management Plan.
Positioned “Creating a decarbonized society,” “Harmonizing with local communities” and “Active participation of diverse human resources”
as focus issues.

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

35/54

Sustainability Management Initiatives: Sustainability Targets
Established targets for key sustainability issues and now we are promoting initiatives to achieve themBlack text indicates results and blue text indicates targets
Classification

Harmony with theEnvironment

Material Issues

Specific Initiatives

Realization of a

Reducing CO2 emissions at

decarbonizedcompany sites and supply

societychainsTargets Setting Companies

Common to all operating

2050

companies

2030

SB, PS, SBL

2030

Co-prosperity withSociety・Improvement of regional value

with local

・Resolution of local issues

communities

using company resources

Scope 1, 2 Zero CO2 emissions
Reduction of CO2 emissions at the Scope 1 and 2 SBT
certification level (= 4.2%/year from the base year)
certification level (= 2.5%/year from the base year)

Kt

Progress of our “regional revitalization business”
Progress in building an environment for lemon

PS

Kt
903.3

contributes to improving area brand value

SB

184.1

Reduction of CO2 emissions at the Scope 3 SBT
Progress in sustainable urban development that

SRE
Mutual prosperity

2021

Targets

Target Yearproduction in Japan

2022

2026

2030

2050

Calculating

Calculating

-

-

-

-

-

-

-

-

53.9

53.6

54

-

8.3%

12%

20%

4.2%

5.4%

12%

20%

2.6

2.7

3.0

36.3

34.4

33.4

Number of regional learning programs (food education,
PS, SGF

2030

on-site classes, factory tours, etc.) related to the food140

and beverage business

Promotion of Diversity &SH, SB, PS, SRE, SLN

2026

SH, SB, PS, SRE, SLN

2026

Activation of Human Active participation Inclusion (D&I)
Resources andof diverse human

Potentials

resources
Investing in human capital for
growth and productivity~
SH, SB, PS, SRE, SLN

2030

SH, SB, PS, SRE, SLN

2026

SH, SB, PS, SRE, SLN

2026

See pages 38-40 for our initiatives in 2022 to address key sustainability issues

Work engagement (*1) 54 or higher
At least 12% female executives and at least 20% female
executives
At least 12% female managers and at least 20% female
managers
Integrated survey “Challenges for future value creation”(*2) 3.0 or higher
Presenteeism loss rate (*3) 33.4% or less

*1 Indicators in Stress Check and Employee Awareness Survey <Deviation>*2 Sapporo Group’s proprietary survey indicators in Stress Check and Employee Awareness Survey <quantified using 1.0 to 4.0>
*3 Indicators in Stress Check and Employee Awareness Survey: average for SH and four operating companies
Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

36/54

Appendix

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

37/54

Appendix: Initiatives to Address Key Sustainability Issues
Harmony with the Environment

Installed solar power generation system at Sapporo Beer’s Hokkaido Brewery

Realization of a decarbonized society
Began test sales of Sapporo Draft Beer Black Label using a six-can
pack that significantly reduces paper usage

・On December 1, 2022, installed solar power generation system at Hokkaido Plant using the
PPA model
・Largest system within the Sapporo Group・System is expected to generate around 1,539 MWh of electricity annually and reduce CO2
emissions by around 840 tons annually

left:Conventional product、center：improved six-can pack 、rigth：eco-hat

Jointly received Minister of Land, Infrastructure, Transport and Tourism Award, thetop prize in the Excellent Green Logistics Commendation Program
・ Sapporo Group Logistics received the award

・Initiated “eco-friendly” project for next-generation packaging
・Worked to develop eco-friendly containers and packaging that significantly reduce paper
usage
・The improved six-can pack uses 19.6% less paper than conventional packaging formats
・The “eco-hat” uses around 68% less paper than conventional packaging

・Highly praised for its collaboration with multiple
companies from different industries to achieve (1)increased transport efficiency, (2) reduced environmental
impacts including lowering CO2 emissions, and (3)improvements in drivers’ work environment.

・Based on the results of the test sales, we will verify and make improvements aimed at fullscale adoption
Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

38/54

Appendix: Initiatives to Address Key Sustainability Issues
Co-prosperity with Society

Activation of Human Resources and Potentials

Mutual prosperity with local communities

Active participation of diverse human resources

Sustainable community development that helps enhance area brand value-Grand opening of YGP* center plaza-

Sapporo Beer and Pokka Sapporo Food & Beverage were awarded
consecutively at gan-ally-bu Award 2022

・Grand opening on November 8, 2022
・Promote fun, relaxing and appealing community development for Yebisu Garden Place and・At the awards ceremony for gan-ally-bu Award 2022, organized by Gan-Ally-Bu, a private

the people who live, work and visit Ebisu.

sector project working to address cancer and labor issues, Sapporo Beer won Gold for the fifth
year running and Pokka Sapporo Food & Beverage won Silver for the fourth consecutive year.
・Recognizing the sacrifices made by employees effected by cancer, we aim to foster anenvironment where everyone is engaged and understands the uncertainty and challenges of
employees facing various circumstances.
Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

39/54

Appendix: Initiatives to Strengthen Management Foundation
Strengthening of management foundation
DX
Sapporo Beer and IBM Japan are officially implementing an AI system called
N-Wing★ to promote the digital transformation of RTD product development
schemeStrengthening of management foundation
New value creation
Linkage between Uchi-repi, an app supporting family meals, andSmart Receipt®, a digital receipt service

・Implementing an AI system called N-Wing★ for RTD product development (“New Wing Star”)
・Expected to reduce total time spent on product development by around 50%.
・Uses an Al-powered algorithm to create unique combinations that people cannot think of and passdown knowledge.
・Aiming to develop new products around RTD brands in summer 2023 and beyond.

Uchi-repi

Smart Receipt®

・Implementing functions convenient for users

・Linking shopping information from Smart Receipt® to Uchi-repi
・Monitors ingredients in a user’s refrigerator and proposes recipe ideas that can bemade with the food on hand
・The ingredients used to prepare the recipe are automatically removed from therefrigerator inventory data
・Expected to contribute to reduced food waste and loss.

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

40/54

Appendix: Quarterly results for FY2022
2021 Q1

2022 Q1

YoY
YoYchanges changes

2021 Q2

2022 Q2

YoY
YoYchanges changes

2021 Q3

2022 Q3

YoY
YoY
changes changes

2021 Q4

2022 Q4

YoY
YoY
changes changes

ResultResult(amount)

ResultResult(amount)

ResultResult(amount)(%)

ResultResult(amount)（billions of yen）

Revenue by Segment
Alcoholic Beverages
Japanese
Overseas
Restaurants
Food & Soft Drinks
Real Estate
Other
Core Operating Profit
by Segment
Alcoholic Beverages
Japanese
Overseas
Restaurants
Food & Soft Drinks
Real Estate
Other・General corporate andintercompany eliminations

(%)

(%)

(%)

89.9

93.2

3.4

3.7%

109.8

120.5

10.7

9.8%

109.4

132.0

22.7

20.7%

128.1

132.6

4.5

3.5%

56.6
44.7
10.2
1.8
27.6
5.6
0.0

60.6
46.1
12.1
2.3
27.7
5.0
0.0

3.9

6.9%

15.8%

23.4%

(3.3)

(4.7%)

1.9

18.8%

3.3

22.4%

7.0

47.6%

8.3

59.8%

0.5

29.9%

2.8

221.2%

3.3

304.6%

1.0

29.5%

0.1

0.4%

(0.6)

(1.9%)(0.4)(1.3%)(1.7)(4.8%)(0.7)(11.8%)(0.4)(7.0%)(0.2)(4.6%)

0.2

2.9%

(0.0)

(27.0%)(0.0)(15.4%)(0.0)(9.4%)

93.7
67.0
22.2
4.5
33.4
5.5
0.0

6.9%

13.0

87.6
70.3
13.9
3.5
35.1
5.4
0.0

6.0

9.6%

94.8
68.7
21.7
4.4
32.0
5.1
0.0

32.6%

5.6

71.5
55.7
14.7
1.1
32.4
5.4
0.0

23.3

3.3%

85.6
63.6
17.9
4.1
29.8
5.1
0.0

11.7

1.5

73.9
58.0
14.6
1.3
30.4
5.5
0.0

(0.0)

(9.0%)

(6.9)

(6.4)

0.5

-

3.4

4.2

0.9

25.2%

5.0

7.9

2.9

58.0%

6.6

3.6

(3.0)

(46.0%)

(5.0)
(3.0)
(0.3)
(1.7)
(1.1)
0.7

(3.9)
(2.8)
(0.1)
(1.0)
(1.0)
0.1

1.1

-

64.8%

68.0%

(1.7)

(31.2%)

0.2

-

(0.2)

(33.0%)(0.6)(40.5%)

0.8

-

1.2

-

1.1

-

0.1

-

0.3

-

0.7

85.7%

(0.6)

(87.4%)(0.6)(19.2%)(0.4)(13.6%)

2.8
3.8
(1.3)
0.3
0.9
1.6

(47.7%)

1.8

5.4
5.5
0.1
(0.3)
1.0
1.8

(2.6)

9.9%

5.4
4.5
0.8
0.1
1.6
2.3

80.7%

0.3

3.0
2.7
1.4
(1.1)
0.9
2.6

2.4

-

3.4
3.0
0.3
0.1
0.2
2.5

1.3

0.2

2.1
2.7
0.5
(1.1)
(0.0)
3.1

(1.5)

(1.6)

(0.1)

-

(1.7)

(1.9)

(0.2)

-

(1.5)

(1.3)

0.1

-

(1.6)

(1.8)

(1.4) (1003.1%)
0.6

-

(0.0)

(3.1%)(0.2)(10.5%)

(0.2)

15.2%

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

41/54

Appendix：Changes in Balance Sheets（billions of yen）

Total assets

End of 2021

End of 2022

changeCash and cash equivalents

17.4

15.4

(2.0)

Trade receivables

91.5

96.6

Inventories

39.2

Other current assets

Total liabilities and equity

End of 2021

End of 2022

changeTrade payables

33.2

35.7

2.5

5.1

Short-term financial liabilities

61.2

86.5

25.4

47.5

8.3

Other current liabilities

116.1

97.3

(18.9)

19.7

19.9

0.2

Long-tern financial liabilities

136.9

155.4

18.4

128.5

138.4

9.9

Net defined benefit liabilities

0.3

3.5

3.2

203.2

209.6

6.4

Other non-current liabilities

83.4

93.6

10.1

Goodwill

19.2

33.8

14.6

431.2

471.9

40.7

Other non-current assets

75.8

77.8

2.0

162.6

166.3

3.7

594.6

639.1

44.6

0.8

0.9

0.1

Total equity

163.3

167.2

3.9

Total liabilities and equity

594.6

639.1

44.6

1.1

1.4

－

198.1

241.9

43.8

Fixed assets and intangible
assetsInvestment property

Total assets

Total liabilities
Equity attributable to ownersof parent

Non-controlling interests

Debt-to-equity ratio (times) :Net
Balance of financial liabilities

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

42/54

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

2021
Result2022
ResultChangeChange (%)

30.3

7.8

(22.5)(74.2%)

CF from investing activities

20.7(46.1)(66.9)

ー

51.0(38.3)(89.4)

ー(53.1)

36.5

89.5

ー

CF from financing activities

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

CF from operating activities

Free CF➀ Capital expenditure (cash basis): ¥billion＜ Major items ＞
・ Alcoholic Beverages: ¥6.4 billion
SB: ¥2.0 billion Sleeman ¥2.7 billion

・ Food & Soft Drinks: ¥2.1 billionPS：¥1.2 billion（billions of yen）

<Changes in amount of investment (cash basis)>

POKKA PTE. LTD.：¥0.2 billion

・ Real Estate: ¥12.8 billion
Acquisition of investment property

60.0

・ Group-wide: ¥1.0 billion

50.0
40.0

② Lease fees: ¥

30.0

53.6

20.0

31.0

36.5

32.7

41.8
24.7

10.0

33.0

billion(excluding lease fees for renting restaurant premises)③ Other investments: ¥billion（Acquisition of stock in Stone Brewing Co., LLC：¥22.6 billion
Invest in property’s equity etc.）

0.0
2016

2017

2018

2019

2020

2021

2022
Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

43/54

Appendix： Major sales volume & sale
(Beer and beer-type beverages and non-alcoholic beer calculations based on large bottles,RTDs are calculated by 250 ml × 24 bottles.)Sales:Beer (Japan) *including liquor tax

Sales Volume:Beer (Japan) ※1
YoY

Fiscal 2021

Fiscal 2022

1,249

1,399

12.0%

685

666

(2.9%)

2,441

2,677

9.7%

165

151

(8.7%)

3 New genre beer products (total)

1,214

1,114

(8.2%)

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

3,820

3,942

3.2%

RTD(*1)

1,186

1,219

2.8%

72

69

(3.9%)

Sapporo Draft Beer Black Label (total)
YEBISU (total)
1 Beer (total)
2 Happoshu (total)

Non-alcoholic beer and low alcohol beer taste beverage

YoY

Fiscal 2021

Fiscal 2022

131.8

145.2

10.2%

Happoshu

6.4

5.9(7.4%)New genre

44.6

41.5

(7.0%)

Subtotal

182.8

192.6

5.4%

Rebate subtracted from sales(*2)(10.5)(10.1)

ー

Total

172.3

182.5

5.9%

Change(%)
Beer

Change(%)

Sales:Alcoholic Beverage (Japan)
Fiscal 2021

Fiscal 2022

YoY
Change(%)

Sales Volume:Beer (International)
Fiscal 2021
Overseas brand (SLEEMAN, Anchor, Stone, etc.)
Sapporo brandNorth America
Sapporo brand
Other areas
Total

Fiscal 2022

YoY
Change(%)

Domestic wines

3.3

Imported wines

3.4

2.7%

6.5

7.1

9.5%

Wine (total)

9.8

10.5

7.2%

1,330

1,457

9.5%

Spirits and Shochu (total)

24.2

27.2

12.5%

378

418

10.6%

RTD

19.8

20.4

3.1%

1,709

1,876

9.8%

Subtotal

53.8

58.1

8.1%

190

243

27.4%

Rebate subtracted from sales(*3)(10.2)(10.2)

0.3%

Total

43.6

47.9

9.9%

190

243

27.4%

1,899

2,118

11.5%

Sales:Food & Soft Drinks (Japan) ※2
YoY

Fiscal 2021

Fiscal 2022

Soft Drinks

62.7

61.0

(2.6%)

Food（Lemon・Soups・Plant milk）

33.1

32.9

(0.6%)※1：Following the agreement of the Brewers Association of Japan, the sales volume for the first half and end of the fiscal year shall be disclosed.
※2：Pokka Sapporo is only domestic sales.

Change(%)

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

44/54

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

(Jan – Dec)

[Beer and beer-type beverages total] up% YoY✓ Black Label brand％ y-o-yup✓ Beer:up✓ Happoshu: down

％ y-o-y％ y-o-y✓ Mugi to Hop branddown✓ New genre: down

％ y-o-y✓ YEBISU branddown％ y-o-y✓ GOLD STARup

％ y-o-y％ y-o-y<YoY changes in sales volume of beer and beer-type
beverages by genre>（％）<YoY changes in sales volume of main brands>（％）(cumulative of each month)(cumulative for each month)

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

45/54

Appendix：Alcoholic Beverages (Japan)＜Main brand Jan- Dec Sales volume change＞(10,000 cases)(Jan – Dec)

＜ Beer lineup sales volume(Jan- Dec break down) ＞(Jan – Dec)

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

46/54

Appendix：Alcoholic Beverages (Japan)＜Jan- Dec sales revenue＞＜ Jan- Dec sales breakdown by category ＞(billions of yen)

※Incl. liquor tax*Before subsidiary companies sales, elimination ofinter- company transactions and rebate deduction*From 2021, Hyosai Sour and 99.99 keg
are reclassified from Spirits to RTD.

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

47/54

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

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

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

48/54

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

（yen）

77

70
63.35
Beer

54.25

Happoshu
New genre

46.99

37.8

RTD

✓ Beer and Beer
type beverages
yen
✓ RTD
yen

35

28

2020

2023

2026

（year）

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

49/54

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

【North America Total up＜ Overseas sales volume by brand (Jan-Dec) ＞（10,000 cases）％ y-o-y✓ Overseas brandup％ y-o-y✓ Sapporo brandup％ y-o-y【Other Areas Total】 up％y-o-y（Main area：Asia pacific , Europe , Oceania）✓ Sapporo brand： up＜ Overseas sales volume by Area (Jan-Dec) ＞(Jan – Dec)

（10,000 cases）％y-o-y＜ Y-o-y change in domestic sales volume in Vietnam＞
160%
140%
120%
100%
80%
60%
40%
Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

50/54

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

＜Sapporo Lion outlets As of Dec 31, 2022 ＞（Jan- Dec）

（Including FC stores）＜ Total number of outlets ＞＜Brands＞

140 Outlets

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

51/54

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

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

94.0
billions

37.60 million
cases

37.60 million
cases＜ Japanese soft drinks POKKA SAPPORO Food & Beverage ＞

Sales volume & Sales by genre(Jan- Dec)

【Lemon based-drinks】【Unsweetened tea drinks】【Coffee drinks】

✓

✓

✓

up

％ y-o-y（Sales volume）

up％ y-o-ydown％ y-o-y（Sales volume）（Sales volume）【Lemon-based food products】【Soups】【Soy milk, chilled products】

✓

✓

✓

down

％

（Sales）

y-o-yup％ y-o-y（Sales）

down％ y-o-y（Sales）
Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

52/54

Appendix：Real Estate＜ Information about Investment property ＞＜ Major rental properties & occupancy rates：（Averages for 2022)>

Yebisu Garden Place（1）Ginza Place
Strata Ginza（2）Site area（㎡）

Floor area（㎡）

Occupancy rate（%）

56,943

298,00783

40 floors above ground,
5 below

645

7,350

97

11 floors above ground,2 below100

13 floors above ground,
1 below

1,117

11,411

No. of floors(billions of yen)

※ Fair value information will be updated in 1Q 2023

400.0
300.0
200.0
100.0

408.1

382.9

218.6

203.2

0.0

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

As of December 31,

As of December 31,

2020

2021

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

2021

2022

Change＜EBITDA＞

2021

2022

ChangeYebisu Garden Place, etc.

6.9

4.9

(2.0)

Yebisu Garden Place, etc.

10.0

8.2

(1.8)

Other area &other operations

2.4

2.1

(0.3)

Other area &other operations

3.7

2.8

(0.9)

Hokkaido

0.7

0.7

0.0

Hokkaido

1.3

1.3

0.0

Equity investment, etc

(1.7)

(1.2)

0.5

Equity investment, etc

(1.2)

(0.7)

0.5

Total

8.2

6.5

(1.8)

Total

13.7

11.5

(2.2)
Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

53/54

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

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

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

54/54