Sapporo Group Business Results Presentation
for the Nine Months Ended September 30, 2019

November 6, 2019
URL https://www.sapporoholdings.jp./en/

Copyright, 2019 SAPPORO HOLDINGS LTD. All rights reserved.

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１. Key Points of Third Quarter and Progress in Growth Fields

・・・p3-6

２. Third-Quarter 2019 Highlights

・・・p7-19

３. Revision of 2019 Full-Year Earnings Forecasts

・・・p20-21

４. Reference Materials

・・・p22-39

Copyright, 2019 SAPPORO HOLDINGS LTD. All rights reserved.

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◆Third-Quarter 2019 Key Points
Alcoholic Beverages: Domestic business was roughly in line with plan. In North America,
Sapporo brand performed strongly but other brands struggled.
Positive

Alcoholic Beverages<Quarterly operating profit (vs. previous year)>-0.3 bn yen(billions of yen)

505
303
101

+1.4 bn yen
5.4

5.1

 New genre sales in the nine months since January
declined compared with the previous year

3.3

2.5

+0.7 bn yen

1.2

1.2

▲ 10
-1
-3.9

-3.1

Anchorimpairment-4.4 bn yen

▲ 30
-3
▲ 50
-5

Jan- Mar

Apr-Jun

1-3月

4-6月

2018
2018年

 Black Label and Yebisu brand canned products werestrong
 RTD sales continued to grow
 New genre sales in the Jul-Sep period increased
thanks to relaunch of Mugi to Hop
 Sapporo Premium in North America remained strong

Jul-Sep

7-9月

2019(Oct-Dec is forecast)
2019年(10-12月は見通し)

Oct-Dec

10-12月Negative Total demand in the Canadian market declined due
to unfavorable weather
 Production efficiency of Anchor declined due tolower sales volume➡We revised down full-year earnings forecast<Future measures>
 Continue to focus on beer and RTD in Japan
Try to recover further in new genre
 Strengthen the foundation of North Americanbusiness and implement growth strategy
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◆Third-Quarter 2019 Key Points
Food & Soft Drinks: Lemon-based products were strong, but soft drinks struggled due to coolsummer.
Positive

Food & Soft Drinks(billions of yen)

505
303

 Lemon-based products remain strong
 Consolidation of Yasuma Co., Ltd. boosted revenue Profitability in Asia is on recovery trend
 North American business narrowed losses throughstructural reform-1.3 bn yen＋0.8 bn yen

101

0.2
-0.5

▲ 10
-1

-1.2

▲ 30
-3

-1.2 bn yen

-2.4

2.2
0.9

0.7

1.1

Valuation difference
associated with renewalof production facilities
in Malaysia +0.7 bn yen

Negative Sales of soft drinks fell due to decline in number ofvending machines in Japan
 Sales of soup declined
 Soft drink sales in summer fell due to cool weather➡ We revised down full-year earnings forecast

▲ 50

-5

1-3月

4-6月

Jan- Mar

Apr-Jun

2018年
2018

7-9月

Jul-Sep

2019年(10-12月は見通し)
2019 (Oct-Dec is forecast)

10-12月Oct-Dec<Future measures> Focus on soup and hot beverages, whose peakseason is winter Further expansion of the soymilk yogurt market
 Generate synergies with Yasuma
Copyright, 2019 SAPPORO HOLDINGS LTD. All rights reserved.

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◆ Third-Quarter 2019 Key Points
Real Estate: Existing properties remainedsolid

Corporate: Management platform development costdecreased but structural reform
expenses expected to increase

Corporate/Other

Real Estate(billions of yen)40
4Property sale
+1.9 bn yen

Property sale+1.1 bn yen-0.1 bn yen(billions of yen)0-0.2 bn yen

0

▲ 20

＋1.9 bn yen

Structuralreform
-6.5 bn yen

-2

-1.5

-1.7

-0.2 bn yen

-1.6

-2.0

-0.3 bn yen

-1.3

-1.6

-0.3 bn yen

▲ 40
-4

2
20
3.0

3.5

3.3

3.6

3.4

3.9
2.8

-1.8

-8.7

▲ 60
-6

▲ 80
-8

1.1

00

-10
▲ 100
1-3月
JanMar

4-6月
Apr-Jun
2018年
2018

7-9月
Jul-Sep

10-12月Oct-Dec

2019年(10-12月は見通し)
2019(Oct-Dec is forecast)Jan-1-3月
Mar

4-6月
Apr-Jun
2018年
2018

7-9月
Jul-Sep

10-12月Oct-Dec

2019年(10-12月は見通し)
2019(Oct-Dec is forecast)<Key points for Jul-Sep period>
 Mainstay properties maintained stable occupancy
rates<Key points for Jul-Sep period>
 Systematic expenditure accompanying progress inmanagement platform development<Future measures>
 Revise upward full-year earnings forecast to reflect
cost reductions
 Maintain current level of occupancy rates to achievetargets
 Continue to review property portfolio<Future measures>
 Reduce management platform development cost (1.5billion yen →1.0 billion yen)
Revise downward full-year earnings forecast toreflect structural reform expense increase (3.0 billion
yen →6.5 billion yen)
Copyright, 2019 SAPPORO HOLDINGS LTD. All rights reserved.

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Strengthening of Beer Business and Approach to Low Price Category
Steady progress in strengthening of beer business<YoY changes in beer category sales volume >(%)(Cumulative sales for each month)

110

4

＋

%

100
＋

3

%

90
80
Jan

Feb

Mar

Apr

May

Jun

Total beer demandBlack Label brand sales
volume (cans)

2018 3Q

2019 3Q

Yebisu brand sales
volume (cans)

2018 3Q

Jul

Aug

Sep

(forecast by Sapporo)

Total demand for Sapporo beer

2019 3Q

New genre on recovery track thanks to impact of Mugi to Hop<New genre and RTD sales>
relaunch(billions of yen)（％） <YoY changes in Mugi to Hop sales volume＞

120

40.0
30.0

110

8.1

12.0

30.4

28.1

2018 3Q

2019 3Q

20.0

100

10.0

90

0.0

80
Jan-MarApr-Jun

Jul-Sep

New genre

RTD

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Business Results

Copyright, 2019 SAPPORO HOLDINGS LTD. All rights reserved.

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Third Quarter 2019 Highlights
Certain level of success achieved in nurturing beer, RTD, and lemon-based food brands
Challenges remain in structural reforms of North American and Japanese soft drinks
YoY change

Revenue2017 3Q2018 3Q

2019 3Q

While beer and RTD in Japan and Sapporo
Premium in North America performed strongly inthe alcoholic beverage business, the new genre
slowdown and impact of exchange rate on North 
American alcoholic beverages resulted in arevenue decline of ¥1.0 billion
Revenue of the food & soft drinks businessincreased ¥2.7 billion, despite the slowdown inJapanese soft drinks caused by inclement
weather, as sales were boosted by consolidationof Yasuma and a return to profitability in the
North American soft drinks business

Operatingprofit2017 3Q

YoY change

2018 3Q

2019 3Q

Profit attributable toowners of parent

2017 3Q

2018 3Q

YoY change

2019 3Q(billions of yen)

Operating profit increased ¥0.9 billion, as cost
control in the alcoholic beverages business(Japan) and sale of properties in the Real
Estate business offset the profit decline in thefood & soft drinks business and North
American alcoholic beverages business Increased as operating profit improved* All figures are based on IFRS
Copyright, 2019 SAPPORO HOLDINGS LTD. All rights reserved.

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Third Quarter 2019 Highlights

Balance of net debt
2018-end

2018-end

2019 3Q

2019 3Q

D/E ratio (net)times

Cash basis investment

Equity2019 planYoY change±0.0 times(billions of yen)Transformation of the Groupmanagement platform

Group topics

 Construction of industry’s first hybrid beer/soup plant completed

 Held Ebisu Sustainable City Business Contest(See slide 18)

 Introduced plan-driven logistics system that harnesses AI
technologies(See slide 19)(See slide 37)
https://www.sapporo-re.jp/pdf/sapporore/store/storage/cname_20190711165353.pdf

 The 11th Yebisu Beer Festival(See slide 38)
https://www.sapporoholdings.jp/news/dit/?id=8469

Copyright, 2019 SAPPORO HOLDINGS LTD. All rights reserved.

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Revenue by Segment(billions of yen)

2018
3Q

2019
3Q

YoY changes(amount)

YoY changes(%)

Revenue by Segment

381.0

0.4%

Alcoholic Beverages

239.5(0.4)%

Japan & Asia

180.7

0.4

0.2%

North America

37.9

(1.3)

(3.4)%

Restaurants

20.9

(0.2)

(0.8)%

Food & Soft Drinks

118.7

2.3%

Japan & Asia

98.4

1.4

1.4%

North America

20.3

1.3

6.6%

Real Estate

Other

18.3
4.5

0.1%
(0.1)

(2.3)%

Factors are explainedin the next slide Copyright, 2019 SAPPORO HOLDINGS LTD. All rights reserved. 10/39

Main Factors Contributing to Changes in Revenue
Beer and RTD grew, while new genre products were on a recovery track thanks to
the impact of the Mugi to Hop relaunch
Profit increased YoY with Yasuma consolidation and sales recovery in North America
contributing
Alcoholic Beverages

Food & Soft Drinks= Increase= Decrease

Real Estate

2019
3Q

(billions of yen)
RTD＋4.0
Japanese liquor -2.4
Rebate -1.2
Asian beer +0.2

2018
3Q

Includingexchange rate -1.2

Including new
consolidation of
Yasuma＋3.3

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Operating Profit by Segment(billions of yen)

2018
3Q
Operating Profit bySegment
Alcoholic Beverages
Japan & Asia
North America
Restaurants

Food & Soft Drinks
Japan & Asia
North America

Real Estate
Other
General corporate andintercompany eliminations

2019
3Q

YoY changes(amount)

YoY changes
(%)

6.8

12.9%

2.7

68.3%

2.1
0.8
(0.1)

2.3
(0.8)
0.3

0.5
1.1
(0.6)

109.8%(89.5%)
-

(2.4)
0.6

-

8.2
0.1

19.3%
-

(4.5)

Factors are explainedin the nextCopyright,
slide 2019 SAPPORO HOLDINGS LTD. All rights reserved.

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Main Factors Contributing to Changes in Operating Profit
Contributions from cost control in Alcoholic Beverages in Japan and improved profitability in
Vietnam
Improvement in profitability of Soft Drinks in Asia and sale of investment real estate in 1Q
also contributed to profit increase
Alcoholic Beverages
Product mix +0.6
Non-alcoholic beer, etc. ＋RTD+1.0

2018
3Q

= Decrease

Real Estate

Food & Soft Drinks
Sales volume -1.6
Production cost -0.1

= Increase(billions of yen)(2018 3Q)
Unrealized holding
loss due to renewalof production
facilities in
Malaysia -0.7

Proceeds fromsale of Yebisu
Square +1.9
2019
3Q

Including sales
promotion costs +0.7

*Reclassification under IFRS: Other non-operating revenues and expenses as well as extraordinary income and loss.

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Special factors in the business results
Impact of exchange rates on operating profit is minimal<Special factors in business results (YoY)>
Business segment

Details

Alcoholic
Beverages

Wild Rose Brewery LTD.
Consolidated from 2Q of 2019

Food & Soft
DrinksYasuma Co., Ltd.
Consolidated from 2Q of 2019 * 1Q :Balance sheet only

Impact on
revenue

Impact on
operating profit--

Approx.
3.3 billion-

Impact on
revenue

Impact on
operating profit-: negligible impact<Impact of foreign exchange rates (currency translation)>
2018
3Q

2019
3Q

$US

¥109.61¥109.13EUR¥130.87¥122.62$CAN¥85.11¥82.13$SG¥81.78¥79.99*Average rates for the quarter

Alcoholic Beverages
Food & Soft Drinks

Approx.

-¥1.2 billion--

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Changes in Balance Sheets
Total assets increased ¥5.4 billion from year end
Total assets

Total assets

10.0
93.3
37.1
13.1

22.1
74.5
40.8
13.5

164.7

166.4

Cash and cash equivalents

Trade receivables→Seasonal factors, etc.

Inventories

Other current assets(billions of yen)

Current assets
YoY change- 2.6

Fixed assets

215.5

219.6

21.2
84.7

22.2
85.9

End of 20182019 3Q

Investment property

Goodwill

Other non-current assets

Non-current assets
YoY change+ 8.0

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Changes in Balance Sheets
Total liabilities declined ¥2.0 billion from year end, total equity increased ¥7.4 billion
Trade payables(billions of yen)
Total liabilities andequityTotal liabilities andequity

35.3
73.9

34.8
71.2

105.4

96.5

Net defined benefit liabilities

154.5

166.8

Other non-current liabilities

11.7
94.2

6.6
97.1

Short-term financial liabilities

Other current liabilities

Long-term financial liabilities

Equity attributable to owers ofparentNon-controlling interests

Current liabilities
YoY change- 12.1

Non-current liabilities
YoY change＋10.1

Equity161.5
3.2

End of 2018

169.6

YoY change
＋7.4

2.5

End of 2019 3Q
Copyright, 2019 SAPPORO HOLDINGS LTD. All rights reserved.

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Financial Status① <Capital expenditure>

Investment on a cash basis was ¥35.1 billion

Consolidated total of approx. ¥<Consolidated cash flow (CF) statement>2018 3Q

2019 3Q

CF from operating activities

26.7

34.4

7.6

28.6%

CF from investing activities- 19.3- 21.9

- 2.6

-

7.4

12.4

5.0

68.0%

- 9.0

- 0.3

8.8

-

Free CF

CF from financing activities

ChangeChange (%)② <Investment properties><Changes in amount of investment (cash basis)>
Cash flow from investment
activities:(billions of yen)

60

¥

50

billionplanned over four-year
period (¥50.7 billion plannedin 2019)

15.6

40
30
20

40.2

31.0

36.5

32.7

billion(property, plant and equipment, intangible assets)<Major items>
・“Alcoholic Beverages,” “Food,” and “Soft Drinks”-related:
Approx. ¥11.2 billion
POKKA SAPPORO plant facilities-related: Approx. ¥4.0
billion
System update work at domestic beer plants, etc.:
Approx. ¥3.4 billion
Capital expenditure etc. at Sleeman: Approx. ¥0.8 billion
・Group-wide infrastructure optimization, etc.: Approx. ¥2.4
billionConsolidated total of approx. ¥billion③ <Lease fees> consolidated total of approx.
¥

billion*Excluding lease fees for renting restaurant premises④ <Other investments> Consolidated total of
approx. ¥billion(including long-term prepaid expenses, investment securities,
etc.)

35.1

10

①+②+③+④ <3Q 2019 investment total>0(cash basis; including recurring capital expenditure and lease
fees)

2015

2016

2017

2018

2019

2020

(full-year)(full-year)(full-year)(full-year)(3Q)(full-year)

Approx. ¥billionCopyright, 2019 SAPPORO HOLDINGS LTD. All rights reserved.

17/39

Transformation of the Group Management Platform
Construction of industry’s first hybrid beer/soup production plant completed- Utilization of existing beer plant platform / Reduction of environmental load through sharing ofproduction utilities POKKA SAPPORO Food & Beverages Ltd. (“PS”) has commenced production at a plant
newly constructed on the grounds of Sapporo Breweries' Sendai plant in Natori, Miyagi
Prefecture. The new plant is equipped to produce cup-based soup and granularingredients for powdered soup.
The instant soup market has enjoyed solid growth in recent years on the back oftrends in customer snacking needs and diversifying eating habits including a shift
toward simpler meals and eating alone. Ever since introducing canned soup in 1980,
we have been nurturing the soup business while monitoring changes in food culture
and lifestyles and suggesting new eating styles to customers.

PS currently has three soup production bases, namely, the Nagoya plant, Gunma plant,
and Iwata Pokka Foods Co., Ltd. (a wholly owned consolidated subsidiary of PS), andhas been working to cater to the growing demand for instant soup. We established the
new Sendai plant and enhanced in-house cup-based soup production capacity so as tobe able respond more flexibly to the market and promote further proactive businessexpansion. With the launch of operations at the plant, total production capacity has
increased by 50%.
Further, establishing the soup plant on the grounds of Sapporo Breweries' Sendai plantfacilitates the utilization of the Sapporo Group assets and the generation of synergies.
With operations now underway at the new plant, we aim to pursue further businessgrowth.
https://www.pokkasapporo-fb.jp/company/news/release/190917_01.html

Copyright, 2019 SAPPORO HOLDINGS LTD. All rights reserved.

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Transformation of the Group Management Platform
Introduction of a plan-driven logistics system that harnesses AI technologies-Building a common system for three Sapporo Group companiesSapporo Group has introduced an AI technology-based product supply and demand planning system called the “Supply
Chain Planning System” (“SCPS”). Three Sapporo Group companies (Sapporo Breweries Ltd., POKKA SAPPORO Food &Beverages Ltd., and Sapporo Group Logistics Co. Ltd.) began using the system in August 2019.
The SCPS serves as a common system for Sapporo Group’s alcoholic beverages, soft drinks, and food, and covers
everything from demand prediction to production planning and supply and inventory replenishment planning. Sapporo
Group and Canon Marketing Japan Group subsidiary Canon IT Solutions Inc. (“Canon ITS”) jointly formulated the SCPS’s
standard operating procedures. The system was developed utilizing planning solutions such as Canon ITS’s FOREMAST.
Sapporo Group endorses the White Logistics Movement initiative and has declared that it will work to improve theefficiency of logistics and the working conditions of logistics workers with focus on standardization of logistics operations
and establishment of a network of Group facilities. With the introduction of SCPS, the operational flow/systems of
products in different categories are being integrated and plan-driven logistics operations are being standardized. By
helping to address issues such as truck driver shortages, business structure diversification, and dependence on thecapabilities of certain employees, while also helping to realize inventory optimization, logistics standardization, and reformof the working styles of those engaged in logistics, SCPS will play a significant role in helping the Group achieve its
business targets.
Further, in the first half of 2020, the group plans to add functions to the system to support decision-making and enhancedata accuracy.
The logistics business environment is becoming increasingly severe with every passing year and issues such as labor
shortages and increasing logistics costs are coming to the fore. The Sapporo Group will continue working together with
Canon ITS to take on this logistics crisis.
https://www.sapporoholdings.jp/news/dit/?id=8510

Copyright, 2019 SAPPORO HOLDINGS LTD. All rights reserved.

19/39

Revision of 2019 Full-Year Earnings Forecasts

Copyright, 2019 SAPPORO HOLDINGS LTD. All rights reserved.

20/39

Revision of 2019 Full-Year Earnings Forecasts
2019
Initialforecast

2019
Revision
Revised amountforecast

2018
Results

Change

548.8

542.0

(6.8)

521.9

20.1

Alcoholic Beverages

346.0

341.9

(4.1)

330.0

11.9

Food & Soft Drinks

172.2

169.5

(2.7)

161.3

8.2

Real Estate

24.6

24.6

-

24.5

0.1

Other

6.0

6.0

-

6.0

(0.0)

Consolidated operating
profit

12.6

6.2

(6.4)

10.8

(4.7)

Alcoholic Beverages

9.7

7.8

(1.9)

3.9

3.9

Food & Soft Drinks

1.7

(0.2)

(1.9)

1.1

(1.3)

Real Estate

12.1

12.5

0.4

12.0

0.5

Other

0.1

0.1

-

0.2

(0.1)

Corporate(11.0)(14.0)

(3.0)

(6.4)

(7.6)

8.7

3.3

(5.4)

8.5

(5.2)

(billions of yen)

Consolidated revenue

Profit attributable toowners of parent<Alcoholic Beverages>
Revenue:-¥4.1 billion
Operating profit: -¥1.9 billion➡Impact of exchange rates andsales volume decline in North
America<Food & Soft Drinks>
Revenue:-¥2.7 billion
Operating profit: -¥1.9 billion➡Decline in sales volume ofsoft drinks<Real Estate>
Operating profit: ¥0.4 billion➡Cost reduction<Corporate>
Operating profit: -¥3.0 billion➡Decline in management
platform development cost,
increase in structural reform
cost
Copyright, 2019 SAPPORO HOLDINGS LTD. All rights reserved.

21/39

Appendix

Copyright, 2019 SAPPORO HOLDINGS LTD. All rights reserved.

22/39

Appendix: 2018 3Q ( Previous year’s result ) Conversion Table of Revenue, Operating Profit by Segment*( ) denotes new segment

Revenue(billions of yen)Japanese Alcoholic Beverage(Alcoholic Beverages)

Former segments
New segments(5 business domain (3 business domain
structure)
structure)

Difference

381.0

-

179.8

59.7

International (-)

59.1(59.1)

Food & Soft Drinks(Food & Soft Drinks)

94.2

24.5

20.9
18.3
8.7

(20.9)(4.2)

Restaurants
Real Estate (Real Estate)
Other

Former segments
New segments(5 business domain (3 business domain
structure)
structure)

Operating profit
Japanese Alcoholic Beverage(Alcoholic Beverages)

Difference

6.8

-

1.8

0.9

International (-)

0.4

(0.4)

Food & Soft Drinks(Food & Soft Drinks)

1.3

(0.8)

(0.1)

0.1

8.2

-

Restaurants
Real Estate (Real Estate)[Corporate] Other

(4.7)

0.2

Remarks(billions of yen)・North American alcoholic beverages and Vietnam
moves to Alcoholic Beverages ¥37.9 billion
・North American soft drinks moves to Food & Soft
Drinks¥21.3 billion

・To Alcoholic Beverages¥20.9 billion

・Shinshu-ichi Miso moves to Food & Soft Drinks¥4.2 billion

Remarks

・North American alcoholic beverages and Vietnam
moves to Alcoholic Beverages ¥0.8 billion
・North American soft drinks moves to Food & Soft
Drinks ¥-0.4 billion

・To Alcoholic Beverages¥-0.1 billion

・Shinshu-ichi Miso moves to Food & Soft Drinks¥-0.2 billion
Copyright, 2019 SAPPORO HOLDINGS LTD. All rights reserved.

23/39

Appendix：Major sales & sale volume
Alcoholic Beverages (Japan)

Soft Drinks (POKKA SAPPORO FOOD & BEVERAGE)(10,000 cases)
Jan. 1 Jan. 1 Sep.30, 2018 Sep.30, 2019

YoY

Fiscal 2018
ActualFull-year
estimate forfiscal 2019

Jan. 1 Jan. 1 Sep.30, 2018 Sep.30, 2019

YoY

Sapporo Draft Beer Black Label (total)

－

－

100%

1,687

1,760

104%

YEBISU (total)

－

－

99%

857

870

102%

1 Beer (total)

－

－

102%

2,991

3,100

104%

2 Happoshu (total)

－

－

83%

257

200

78%

3 New genre beer products (total)

－

－

92%

1,217

1,150

95%

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

－

－

98%

4,466

4,450

100%

Non-alcoholic beer taste beverage

72

55

76%

93

85

92%

(billions of yen)Soft Drinks（*1）

3,281

3,122

(10,000 cases)
Full-year
Fiscal 2018
estimate for
Actualfiscal 2019

YoY

95%

4,370

4,280

Sales (including liquor tax)

(billions of yen)
Nine months ended Nine months ended
September 30, 2018 September 30, 2019

IFRS

IFRS

ChangeChange (%)

Domestic wines

3.3

3.1

93%

4.7

5.3

115%

Imported wines

5.2

5.4

104%

8.2

9.3

113%

Rebate subtracted from sales

(8.6)

(8.4)

0.2

Wine (total)

8.5

8.5

100%

12.9

14.7

114%

Total

145.9

145.8

(0.1)

RTD, Spirits and Shochu (total)

25.3

28.0

111%

35.3

41.2

117%

Subtotal

33.9

36.6

108%

48.3

55.9

116%

YoY

Fiscal 2018
ActualFull-year
estimate forfiscal 2019

YoY

Rebate subtracted from sales

(5.6)

(7.1)

－

(8.5)

－

－

Total

28.3

29.4

104%

39.8

－

－

Sapporo brand

119.9
6.1
28.1
154.1

3.3
(1.3)
(2.3)
(0.3)

2.9%
(17.5%)(7.7%)(0.2%)－(0.1%)(billions of yen)

Nine months ended Nine months ended
September 30, 2018 September 30, 2019

IFRS

Jan. 1 Jan. 1 Sep.30, 2018 Sep.30, 2019
Overseas brand (SLEEMAN, Anchor, etc.)

116.6
7.4
30.4
154.4

Sales (excluding liquor tax)

*Full year estimate for rebate subtracted from sales is not disclosed.

Beer (International)
YoY(10,000 cases)
Full-year
Fiscal 2018
estimate for
Actualfiscal 2019

YoY

98%

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

Beer
Happoshu
New genre
SubtotalJan. 1 Jan. 1 Sep.30, 2018 Sep.30, 2019

YoY

Beer
Happoshu
New genre

IFRS
57.8
4.1
21.1

ChangeChange (%)

59.7
3.4
19.5

1.9
(0.7)
(1.6)

3.4%
(17.7%)(7.5%)

Subtotal

83.0

82.6

(0.4)

(0.5%)

1,039

1,007

97%

1,368

1,341

98%

Rebate subtracted from sales

(8.6)

(8.4)

0.2

467

463

99%

628

641

102%

Total

74.5

74.3

(0.2)

－
(0.2%)

Copyright, 2019 SAPPORO HOLDINGS LTD. All rights reserved.

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Appendix：Alcoholic Beverages (Japan)＜Y-o-y change in sales volume of 3 core brands＞ （Cumulative sales）【Beer】（Sales volume）




%

Jan- Sep up ％ y-o-yBlack Label brand total : Unchanged y-o-y110（Sales of the canned version：up

100

Yebisu brand total : down

％ y-o-y）％ y-o-y（Sales of the canned version：up％ y-o-y）（Sales volume）【Happoshu and new genre】

Jan- Sep down

Mugi to Hop brand total : down

90
80
70
Jan

％
％ y-o-y

Feb

Mar

Apr

May

Jun

Jul

Total beer demand

Sapporo total

Black Label

Yebisu

Aug

Sep

%

120

【Wine, Spirits and other】（Sales revenue）


Wine：Unchanged y-o-y100

RTD：up80

Spirits：up％ y-o-y％ y-o-y60
JanJapanese liquor : down

％ y-o-y

Feb

Mar

Apr

may

Total new genre demand(Jan.1-Sep.30)

Jun

Jul

Aug

Sep

Mugi to Hop

Copyright, 2019 SAPPORO HOLDINGS LTD. All rights reserved.

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Appendix：Alcoholic Beverages (Japan)(10,000 cases)＜3 Core brand Jan- Sep Sales volume change＞＜Beer lineup (Jan- Sep break down)＞

1,400

1,200

17%

1,000

27%

800

600

57%
400

200
Black label

Yebisu

Other

0
2013

2014

2015

Black label brand total

2016

2017

Yebisu brand total

2018

2019

Mugi to Hop

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Appendix：Alcoholic Beverages (Japan)※Incl. liquor tax＜Jan- Sep sales breakdown by category＞＜Jan- Sep sales revenue＞(Billions of yen)

200.0
180.0

5%

160.0
140.0

54.8

60.0

52.5

48.8

44.4

37.8

34.2

120.0

8%

Beer
Happoshu & New genre

8%

Wine & Spirits
100.0Japanese liquor
80.0
60.0

112.8

112.0

111.7

117.8

121.2

116.6

RTD & Non-alcoholic beer

119.9

18%

40.0
20.0

62%
*before subsidiary companies sales, elimination ofinter- company transactions and rebate deduction

0.0
2013

2014
Beer

2015

2016

2017

2018

2019

Happoshu & New genre

Copyright, 2019 SAPPORO HOLDINGS LTD. All rights reserved.

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Appendix：Alcoholic Beverages (Japan)＜Jan- Sep sales revenue＞
10
9
8
7
6
5
4
3
2
1
0

14
12
10

4.9

5.3

5.1

5.4

5.4

5.2

5.4

8

12.0

6

8.0

4

3.4

3.9

3.7

3.5

3.5

3.3

3.1

2

2.1

3.3

3.3

3.8

2013

2014

2015

2016

5.3

0
2013

2014

2015

2016

Japanese wine

8
7
6
5
4
3
2
1
0

(Billions of yen)

2017

2018

2019

2017

2018

11.1

2019

ＲＴＤ

Imported wine

14
12
10
8

4.2

4.2

4.2

4.9

5.5

6.1

7.2

6
4

9.3

10.4

10.3

11.3

11.8

2014

2015

2016

2017

8.8

2
0
2013

2014

2015

2016

Spirits

2017

2018

2019

2013

2018

2019

Japanese liquor
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Appendix：Major New Alcoholic Beverages (Japan) Product Launches in Jul, Aug, and Sep

Kohaku Yebisu

Mugi to Hop(*1) Limited version of
Mugi to Hop９９.９９＜Four
Lemon The Rich series
Nines＞
Clear apple ９９.９９＜Four Nines＞
Clear ginger

HOPPIN’ GARAGE

Otoko Ume highball(Plum RTD)

Otoko Ume sour
(Plum RTD)

SapporoLAGER BEER

RTD
Plum wine cocktail
Umekaku
Left : Ramune Right : Kiwi

*incl. improved products (*1)

Baisendraft beer
SapporoGinza Lion Ale

Seven Premium
Kamifurano
Osumisan no hop batake kara

Ai no Skal White Sour series

Nectar sour

Copyright, 2019 SAPPORO HOLDINGS LTD. All rights reserved.

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Appendix：Alcoholic Beverages (Overseas)【Overseas brand】
Jan- Sep down

（Products of Sleeman and Anchor)％＜Overseas sales volume (Jan-Sep)＞（10,000 cases）
1,200【Sapporo brand】
Jan- Sep down％

800

【Vietnam】
Jan- Sep up

1,000％（including export）
600
946＜Y-o-y change in domestic sales volume in Vietnam>

938

957

963

965

1,039

1,007

400
120%
100%

200

417

467

463

337

394

462

365

2013

2014

2015

2016

2017

2018

2019

80%
0

60%
40%

Sapporo brand20%

Sleeman brandSleeman+ Anchor

0%17.3Q 17.4Q 18.1Q 18.2Q 18.3Q 18.4Q 19.1Q 19.2Q 19.3Q

Copyright, 2019 SAPPORO HOLDINGS LTD. All rights reserved.

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Appendix：Alcoholic Beverages (Overseas)＜Sleeman：Sales revenue in local currency (Jan- Sep）＞＜Sapporo U.S.A.& Anchor：Sales revenue in local currency (Jan- Sep）＞*before elimination of inter- company transactions*before elimination of inter- company transactions

450

Acquired Anchor

70
J GAAP（Excluded liquor
tax）

400

IFRS
（Included liquor
tax）

60

350
50
300
40

250
200

375 390 390

66 63

30

150
100

165

205
183 198235

246 248 261 265

20

36 33

47
43 43 44 45
41
37 39

10

50

0

0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 20192008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019SLEEMAN(Can$ million)

USA（US$ million）
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Appendix：Alcoholic Beverages (Restaurants)＜Sales revenue and number of Sapporo Lion Outlets>(Billions of yen)

20

186

※before rebate deduction

188

15
10

168

19.6

19.0

18.9

177

18.7

173
19.0

＜Sapporo Lion outlets＞ As of Sep 30, 2019
200
180

7 11

170
18.1

158

160

18.3

140

5

14
4

Kanto (excl. Tokyo)
Hokkaido

1200Tokyo Metroporitan

158 Outlets

TohokuNagoya

100
2013

2014

2015

2016

Sales revenue

2017

2018

2019

Number of outlets＜Total number of outlets＞

75

24

Kansai
Other

23＜Brands＞

Sapporo Lion

158

8
191 Outlets

New Sanko
Marushinkawamura

17

Hanei
Singapore

1

7(Jan.1-Sep.30)

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Appendix：Food & Soft Drinks【Lemon based-drinks】【Lemon-based food products】



Jan-Sep up％ y-o-y（Sales volume)

Jan-Sep up＜ Japanese soft drinks
POKKA SAPPORO Food & Beverage
Sales composition by sales channel (Jan- Sep)

％ y-o-y45%（Sales volume)

Vending machines

31.22 million【Unsweetened tea drinks】
Jan-Sep down

％ y-o-y（Sales volume)【Soups】
Jan-Sep down

55%

※Vending machines (end of Sep.)
own brand machines : about 77,000％ y-o-y+ Multi-brand machines（Sales volume)＜Japanese soft drinks
Sales composition by genre (Jan- Sep)>【Coffee drinks】
Jan-Sep down

Relailercases【Soy milk, chilled products】％ y-o-y（Sales volume)Jan-Sep up％ y-o-y18%

17% Coffee drinks（Sales volume)

4%

Lemon-based drinks

31.22 million

Tea drinks
Carbonated drinks【U.S. Soft drinks 】
Jan-Sep up％ y-o-y（Sales revenue after elimination of inter-company transactions）

17%

cases

Water
Other

27%

18%

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Appendix：Food & Soft Drinks＜ ＜ Food & Soft Drinks segment
Revenue break down by geographic area ＞【Pokka Create Co., Ltd.】Jan- Sep Sales revenue
up84%

billion％ y-o-y＜ Number of outlets as of Sep 30, 2019>

112

16%

East Japan59

207 outlets

Central JapanWest Japan

Japan

Overseas＜Japanese soft drinks
POKKA SAPPORO Food & Beverage
Sales composition (Jan- Sep)

3%

＜ Overseas soft drinks
POKKA Corporation (Singapore)
Sales composition (Jan- Sep) ）Decreased 5 outlets compared with2018 4Q（East-1、Central-1、West＋7）

36

23%

116
33%

¥55.4
billion157
91

SG＄ million

67%
74%
Soft drinks

Food

Soy and Chilled productSingapore

Export207 outlets

Directory operated
FC
Decreased 5 outlets compared with2018 4Q（Directory operated +8、FC-3）

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Appendix: Major New Food & Soft Drinks (Japan) Product Launches in Jul, Aug, and Sep

Jikkuri kotokoto Soup
GRANDE

Jikkuri kotokoto Soup

Risorante
LEMON MADE

Unsweetened tea「Hokkaido Origin」Series

Sparkling

Jikkuri kotokoto Soup series
Karaou Soup
JELEETS LATTE
JELLYAlmond Breeze

Copyright, 2019 SAPPORO HOLDINGS LTD. All rights reserved.

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Appendix：Real Estate＜ Information about
Investment property ＞＜ Major rental properties & occupancy rates：（Averages for 2019 3Q )>＞Site area（㎡）

Floor area（㎡）

Occupancyrate（%）

No. of floors

300.0

Yebisu Garden Place（1）56,943

298,00799

40 floors above
ground, 5 below

Ebisu First Square

2,596

16,012100

12 floors above
ground, 1 below

645

7,350

99

11 floors above
ground, 2 below

100.0

1,117

11,411100

13 floors above
ground, 1 below

0.0

Ginza Place
Strata Ginza（2）(billions of yen)

400.0

200.0

397.6

386.0
215.5

200.0
As of December 31,

As of December 31,

2017

2018

*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

Carrying value on the consolidated(joint management)

statement of financial position

Fair value(billions of yen)(billions of yen)

＜Operating profit＞

2018 3Q

2019 3Q

Change＜EBITDA＞

2018 3Q

2019 3Q

ChangeYebisu Garden Place, etc.

5.8

5.8

(0.1)

Yebisu Garden Place, etc.

8.2

8.1

(0.1)

Hokkaido

0.1

0.9

(0.0)

Hokkaido

1.4

1.3

(0.0)

Other area & otheroperations

2.3

4.0

1.7

Other area & otheroperations

3.0

2.8

(0.2)

General corporate

(0.9)

(1.0)

(0.1)

General corporate

(0.5)

(0.5)

0.0

Total

8.2

9.7

1.6

Total

12.1

11.7

(0.4)
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Appendix: Real Estate
Ebisu Sustainable City Business Contest
Sapporo Real Estate Co., Ltd. is holding an “Ebisu Sustainable City Business Contest” with the theme of “sustainable future
urban development.” The company began accepting ideas from July 17 on a special dedicated website and the winner will
be chosen in December at the conclusion of the business contest. The event will be held at a shared workspace scheduled
to open at Yebisu Garden Place this autumn.

https://www.sapporo-re.jp/pdf/sapporore/store/storage/cname_20190711165353.pdf

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Appendix: GroupThe 11th Yebisu Beer Festival- Enjoy delicious Yebisu Beer at the main venue, designed to evoke the image of Japan’ first beer hall, Yebisu Beer Hall,
which opened 120 years ago The Sapporo Group held the 11th Yebisu Beer Festival from September 13 at Yebisu Garden
Place, the birthplace of Yebisu Beer.
The Yebisu Beer Festival was launched in 2009 to further enrich Japan’s beer culture andexpress the Sapporo Group’s gratitude to the citizens of Ebisu and the people who havehelped to nurture Yebisu Beer. The festival was held for the 11th time this year.
The site is the location of the plant that produced Yebisu Beer, which went on sale in 1890.
The local area was named after the beer and the brewery was popular with locals for nearlya century until it closed in1988. Yebisu Garden Place was subsequently born on the site as apioneering urban complex in 1994.
2019 marks the major milestone 120th anniversary of the opening of Yebisu Beer Hall,
Japan’s first beer hall, and we welcomed customers to the main festival venue in the central
plaza with a menu featuring recreated dishes evocative of those served at the beer hall at
the time as well as delicious beer on tap.

We also donated part of the proceeds from beer sales again this year to support
reconstruction efforts in areas affected by the Great East Japan Earthquake and Kumamoto
Earthquake disasters.
https://www.sapporoholdings.jp/news/dit/?id=8469
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As an intrinsic part of people's lives, Sapporo will contribute to
the evolution of creative, enriching and rewarding lifestyles.

Copyright, 2019 SAPPORO HOLDINGS LTD. All rights reserved.

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