2013
Sapporo Group Business Results Presentation
for the Three Months Ended March 31, 2013

May 8, 2013

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

Copyright, 2013 SAPPORO HOLDINGS LTD. All rights reserved.

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Contents

1. Progress of Implementation of 2013 Basic Strategies
2. Overview of First-Quarter 2013 Results
Reference: Management Targets 2013-2014
Reference: Supplementary Information to First-Quarter 2013 Results

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1. Progress of Implementation of2013 Basic Strategies

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Progress of Implementation of 2013 Basic Strategies
We Promoted three basic strategies for achieving dramatic growth.

Creating new opportunities for growth

Challenges toward growth in all
businesses

We will continue to aggressively pursue
M&As and alliances
both in Japan and overseas.

We will leverage the strengths of ourvarious business’s brands andmanagement resources to accept
new challenges to beatthe competition.

Carrying out growth measures.
To realize the fruits of the various
initiatives undertaken in recent years,
we will continue to make forward
investments and take steps to strengthen
the business foundation.

Creating new opportunities for growth Restructuring of North American Production Facilities:
International Business Reorganization of Restaurant business in Singapore: Restaurants• Transfer of the restaurant business in Singapore from POKKA• Decision to outsource production of Sapporo brand products
Corporation (Singapore) Pte. Ltd. to Sapporo Lion Limited in January
for the U.S. market from SLEEMAN BREWERIES in Canada
to City Brewing Company, LLC, a major contract brewery in • Start of beer hall operations overseas• Aim to operate ten beer halls in Singapore and elsewhere in Southeast
the U.S., around July
Asia within five years.
• Canada: Meet increased domestic demand for the SLEEMAN
brand by boosting production capacity.
• U.S.: Meet increased demand for Sapporo brand products.
Challenges toward growth in all businesses See the segment pages in Reference: Supplementary Information to First-Quarter 2013 Results.

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Progress of Implementation of 2013 Basic Strategies
Carrying out growth measures

 Activities to enhance the value of existing properties: Real estate•In consideration of resolution of excess supply due to a spate of office building construction and recovery in rent levels in the real estate rental
market in the second half of 2013 and beyond, enhance the value of existing properties through renewal.
•Implementation of measures to enhance the value of Yebisu Garden Place in preparation for its 20th anniversary in 2014
Office renewal focused on business continuity, including augmentation of emergency power generation equipment in times of disaster, as well as
enhancement of office convenience
Refurbish commercial and restaurant facilities to enhance the appeal of the entire Ebisu area
•March start of redevelopment efforts at Seiwa Yebisu Building (including expansion of total floor area)
in preparation for completion in the autumn of 2014
•Start of consideration in earnest of redevelopment of Sapporo Ginza Building, located in
Ginza 4-chome (including expansion of total floor area)

 Start of operations at POKKA SAPPORO FOOD & BEVERAGE LTD. in January:
Food & Soft Drinks

Seiwa Yebisu
Building(artist’s rendering)

Yebisu Garden Place(opened in 1994)

 Strengthening of the alcoholic beverages and soft drinks business in Southeast Asia:
Food & Soft Drinks•Soft Drinks: POKKA Singapore to construct a new plant in Malaysia and augment production capacity
Planned start of construction in Johor State at the end of June, planned full-scale operation in the spring of 2014
Resolution of chronic supply shortages in Singapore and export markets
Strengthening of the business in Malaysia, the most important market in Southeast Asia, and surrounding countries

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Progress of Implementation of 2013 Basic Strategies
Carrying out growth measures State of progress in Alcoholic Beverages
Business in Vietnam: International Business•Steady progress with sales volume in Vietnam, where full-scale
marketing began in April 2012, and exports to neighboring countries•Substantial growth in sales volumes in Vietnam during the first Tet (New Year’s Holiday) sales season after
full-scale market entry•Supply of beer kegs to expand beer culture in Vietnam. Plans to expand sales activities to Hanoi•In Vietnam at the end of March, we delivered to approx. 1,300 outlets in the commercial market, mainly in Ho Chi Minh City, and to approx. 1,600 outlets in the retailmarket, including convenience stores and large supermarkets.
•Sequential start of export to neighboring countries in 2013: export to Malaysia, Singapore, Thailand, Australia, New Zealand, South Korea, Indonesia, Hong Kong, the Philippines,
Myanmar, Cambodia, and Guam as of March 31•Sapporo brand has a presence in eight of ten ASEAN countries

Third largest market in Asia after China and Japan
Jan-Mar 2013 sales volume, taking Jan-Mar 2012 volume(excluding exports) as 100

891

900

Beer market in Vietnam*
8,000.0
6,000.0

600

2,303

2,595

2,853

3,079

Expected to reach size of theJapanese market by 2020
3,701
4,000.0
3,505
3,297
3,000.0

4,000.0300
100

2,000.0

0
2012

2013

4,850

5,392

5,917

4,304

2010

2011

2012

2013

6,829

7,298

2,000.0
1,000.0
0.0

0.0*Euromonitor

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6,365

$ mn

2014

2015

2016

Liter mn

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Progress of Implementation of 2013 Basic Strategies
Implementation Status of Strategic Investments

Credit Ratings(Including Ordinary Capex)<Capital expenditure (cash basis) and lease payments>
Consolidated total: Approx. ¥3.6 bn<Credit rating by JCR>

 Property, plant and equipment, intangible assets, lease payments, etc.

 As of May 8, 2013: A- (stable)<Credit rating by R&I>

<Other investments> Consolidated total: Approx. ¥1.1 bn

 As of May 8, 2013: BBB+ (stable)

Long-term prepaid expenses, investment securities, etc.

<Achievement of low-cost financing><Jan.-Mar. 2013 strategic investment total (incl. ordinary
capex)>
 Approx. ¥4.7 bn

 In March 2013, issued ¥10 bn in five-year straight bonds at a low
cost

Direction of Long-Term Strategic Investments
 We will continue to actively carry out strategic investments for growth.
 The scale of strategic investment from 2012 to 2016 is anticipated to be from ¥150 to ¥200 billion (in principal,
funded from accumulated operating cash flow).
– Including ordinary capex (approx. half of strategic investments)– 2012 strategic investment total: Approx. ¥65.7 bn– 2013 strategic investment plan： Approx. ¥ 28.0 bn

Copyright, 2013 SAPPORO HOLDINGS LTD. All rights reserved.

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2. Overview of First-Quarter 2013 Results

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Overview of First-Quarter 2013 Results: Special Factors
Breakdown of special factors that prevent meaningful year-on-year comparisons between first quarter
net sales and operating income in 2012 and 2013 are shown below. See the Supplementary Information
to the Earnings Report for factors behind changes resulting from other business activities.
Net Sales

Operating Income<International Business> April 2012 consolidation of profit and loss account ofSilver Springs Citrus, Inc
Jan-Mar 2013 net increase ⇒approx. +¥2.6 bn<International Business> April 2012 consolidation of profit and loss account ofSilver Springs Citrus, Inc
Jan-Mar 2013 net increase ⇒ approx. +¥0.1 bn<Food & Soft Drinks>
 January consolidation of profit and loss account of
POKKA ACE Malaysia (change from equity method
affiliate to consolidated subsidiary)⇒approx. +¥1.2 bn<Food & Soft Drinks>
 January consolidation of profit and loss account of
POKKA ACE Malaysia (change from equity method
affiliate to consolidated subsidiary)⇒ approx. +¥0.0 bn<Real Estate> March 2012 inclusion of 15% of trust beneficiary rights
for Yebisu Garden Place in the profit and loss accountJan-Feb 2013 net increase ⇒ approx. +¥0.4 bn<Real Estate> March 2012 inclusion of 15% of trust beneficiary rights
for Yebisu Garden Place in the profit and loss accountJan-Feb 2013 net increase ⇒ approx. +¥0.2 bn<Consolidated Total> Approx. +¥4.2 bn<Consolidated Total> Approx. +¥0.3 bn

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Overview of First-Quarter 2013 Results –Consolidated–
Net sales increased by ¥3.1 billion, reflecting factors including a sales increase in Vietnam (a market being
developed in the International Business), the impact of yen depreciation, and the special factors mentioned in
the previous slide.
Operating income increased by ¥0.8 billion year over year due to lower marketing expenses in the Japanese
Alcoholic Beverages business and the special factors mentioned in the previous slide.
Net income improved by ¥1.0 billion as a result of factors including the recording of a ¥3.4 billion gain on
sales of investment securities in the extraordinary gains account.
(billions of yen)2012 1Q

2013 1Q

YoY change
Amount%Consolidated net
sales

97.3

100.4

3.1

3.2%

Consolidated
operating income

(5.5)

(4.7)

0.8

–

Consolidated
operating income
before goodwill
amortization

(4.6)

(3.7)

0.8

–

Consolidated
ordinary income

(5.8)

(5.1)

0.6

–

Consolidated net
income

(4.1)

(3.0)

1.0

–

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Overview of First-Quarter 2013 Results by Segment
Operating Income(billions of yen)Japanese Alcoholic Beverages

YoY change%

2012 1Q*

2013 1Q

Amount

(4.8)

(3.3)

1.5

–

(0.4)
(0.0)
(0.4)

(0.1)
0.2
(0.4)

0.2
0.3
(0.0)

–
–
–

Food & Soft Drinks

(1.2)

(1.8)

(0.5)

–

Restaurants

(0.2)

(0.3)

(0.0)

–

Real Estate

2.0

2.1

0.1

6.3%

Other

(0.0)

(0.1)

(0.0)

–

General corporate

General corporate

(0.6)

(1.0)

(0.3)

–

・In line with the original plan, costs increased due to aninter-segment review of IT-related costs.

Consolidated operating income

(5.5)

(4.7)

0.8

–

Consolidated operating income
before goodwill amortization

(4.6)

(3.7)

0.8

–

・Owing to timing differences in the original plan frommeasures implemented in 2012, a year-over-year
decrease in Jan-Mar cumulative beer and beer-type
beverage sales volume was within expectations.
・Sales volume surpassed the prior-year level in April asplanned, and cumulative sales volume developed inline with the original plan.

Japanese Alcoholic
Beverages
International
North America, other
VietnamFood & Soft Drinks
・A Jan.-Feb. sales decrease that resulted from theimpact of integration preparations in November andDecember 2012 contributed to the sales decrease.
・There was a recovery trend from March onward, andtopline synergy was demonstrated from the second
half onward under the post-integration structure.

*Effective the three months ended March 31, 2013, Sapporo Logistics Systems Co., Ltd., which was previously included in the Japanese Alcoholic
Beverages segment, and POKKA Logistics Co., Ltd., which was previously included in the Food & Soft Drinks segment, were reclassified to the Other
segment. Additionally, effective the three months ended March 31, 2013, Pokka Food (Singapore) Pte. Ltd. which was previously included in the Food
& Soft Drinks segment was reclassified to the Restaurants segment These changes have been retroactively applied to the above figures for 2012.
Copyright, 2013 SAPPORO HOLDINGS LTD. All rights reserved.

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Reference: 2013-2014 Management Targets*2013-2014 management targets are unchanged from thefigures announced on February 8, 2013.

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2013-2014 Management Targets
Consolidated targets
2006 results2012 results2013 targets

2014 targets

2016 targets

Consolidated net sales*incl. liquor taxes¥435.0 bn¥492.4 bn¥512.0 bn¥533.0 bn¥600.0 bn(excl. liquor taxes)¥294.0 bn¥379.7 bn¥397.3 bn¥416.0 bn¥450.0 bn

Consolidated operating
income(before goodwill
amortization)
Consolidated ordinary
incomeConsolidated net
incomeConsolidated operating
margin*excl. liquor taxes(before goodwill
amortization)¥8.6 bn¥14.4 bn

¥15.3 bn

¥17.8 bn

¥8.6 bn¥18.2 bn

¥19.2 bn

¥21.6 bn

¥5.8 bn¥13.6 bn¥14.0 bn

¥16.5 bn–

¥2.3 bn¥5.3 bn¥5.5 bn¥7.0 bn

–

2.9%

3.8%

3.9%

4.3%

2.9%

4.8%

4.4%

5.2%

D/E ratio

2.1 times

1.9 times

1.8 times

1.7 times

ROE

2.1%

4.2%

4.1%

5.1%

(before goodwill
amortization)

2.1%

7.3%

7.1%

8.0%

¥40.0 bn

9.0%
Around 1:1
8% or higher*Assumed exchange rates: 2013-2014: US$ = ¥85.00, CAN$ = ¥83.00*Since the government's consumption tax policy remains uncertain, the above 2014 targets do not take into account the impact of a consumption tax increase.
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2013-2014 Management Targets by Segment
Targets

Net sales
Operating income

Japanese Alcoholic Beverages
International
Food & Soft Drinks
Restaurants
Real Estate
Other
Corporate and intercompany
transactions
Consolidated total
Japanese Alcoholic Beverages
International
Food & Soft Drinks
Restaurants
Real Estate
Other
Corporate and intercompany
transactions
Consolidated total
Consolidated total(before goodwill amortization)2012 results*

2013 targets

2014 targets¥269.9 bn¥36.1 bn
¥129.0 bn¥26.6 bn
¥23.2 bn
¥7.5 bn¥275.2 bn¥43.3 bn
¥136.5 bn¥26.8 bn
¥23.6 bn
¥6.6 bn¥283.5 bn¥46.4 bn
¥145.5 bn¥28.2 bn
¥22.4 bn¥7.0 bn–––¥492.4 billion¥7.5 bn(¥0.0 bn)¥0.3 bn¥0.5 bn¥9.3 bn(¥0.4 bn)

¥512.0 billion¥9.0 bn¥0.0 bn¥1.0 bn¥0.8 bn¥8.3 bn(¥0.1 bn)

¥533.0 billion¥9.0 bn¥1.1 bn¥2.7 bn¥1.0 bn¥7.3 bn¥0.0 bn(¥2.9 bn)(¥3.7 bn)(¥3.3 bn)

¥14.4 bn

¥15.3 bn

¥17.8 bn

¥18.2 billion¥19.2 billion¥21.6 billion*Assumed exchange rates: 2013-2014: US$ = ¥85.00, CAN$ = ¥83.00*Effective the three months ended March 31, 2013, Sapporo Logistics Systems Co., Ltd., which was previously included in the Japanese Alcoholic Beverages segment, and Pokka Logistics Co., Ltd.,
which was previously included in the Food & Soft Drinks segment, were reclassified to the Other segment. Additionally, effective the three months ended March 31, 2013, Pokka Food (Singapore) Pte.
Ltd. which was previously included in the Food & Soft Drinks segment was reclassified to the Restaurants segment These changes have been retroactively applied to the above figures for 2012.
*Since the government's consumption tax policy remains uncertain, the above 2014 targets do not take into account the impact of a consumption tax increase.
Copyright, 2013 SAPPORO HOLDINGS LTD. All rights reserved.

14/25

Reference: Supplementary Information toFirst-Quarter 2013 Results

For information on the profitability of each business, see the Supplementary
Information to our Earnings Report.

Copyright, 2013 SAPPORO HOLDINGS LTD. All rights reserved.

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Japanese Alcoholic Beverages (1)(billions of yen)

Results highlights

2012 1Q

2013 1Q

AmountNet sales*

50.7

50.2

(0.5)

(1.0%)

Operatingincome

(4.8)

(3.3)

1.5

–

*Incl. liquor taxes

Net sales declined due to the impact of timing differences from prior-year
measures for new-genre products and a year-over-year decrease in total sales
volumes for beer and beer-type beverages, despite a volume increase forbeer.
Operating income rose as a result of factors including cost reductions, mainly
marketing expenses.

YoY change%Jan.-Mar. Cumulative Sales Volume YoY Comparison (Beer, Happoshu, New Genre)

Key points in business plan: implementation status

115％

1. Bolstering of brand strength of core products
 Bolstering of brand strength by concentrating resources on the three core
brands, Sapporo Draft Beer Black Label, Yebisu Beer, and Mugi to Hop,as well as on Premium Alcohol Free, a non-alcohol beer-taste beverage.
 Owing to timing differences in the original plan, a year-over-year decline in JanMar cumulative beer and beer-type beverage sales volume was within
expectations.
 Sales volume recovered in April as planned, and cumulative sales volume
developed in line with the original plan.

Sapporo90

 Decision to launch Goku-zero, the world’s first no carbohydrate, no purine new genre
beer-type beverage, on June 19

Copyright, 2013 SAPPORO HOLDINGS LTD. All rights reserved.

99

100

 Jan-Mar cumulative results for Premium Alcohol Free showed a 24% year-over-year
80
increase.

Planned sales volume of 2.2 million cases (large bottle count)

Total demand

110
100
97

97 98

Mar

Jan-Mar108

100

100 99Apr

Jan-Apr

89

88

Jan

Feb

June 19 launch of theworld’s first no
carbohydrate, no purine
beer-like beverage

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Japanese Alcoholic Beverages (2)Key points in business plan: implementation status

2. Growth as a comprehensive alcoholic
beverage enterprise
RTD

Wine
 Total net sales rose year over year on growth from imported wines,
despite slightly lower sales of domestic wines.

 Although Bacardi performed favorably, sales volume declined year over  Imported wines: Strong performance from Yellow Tail and Garcia
year. The decrease is partly attributable to a reaction to the launch of CJ Carrion Domestic wines: Strong performance from Grande Polaire
Oishii Makgeolli in January 2012.
 Renewals and line extensions of existing products were implemented,
and consumption opportunities and brand awareness were enhanced
through increased product trials and greater efforts to attain a market
presence.
 Vigorous new product introduction activities from January to March as
follows:•
Feb 6: Nectar Sour Peach renewal•
Feb 6: Nectar Sour Mix renewal•
Late Feb: TEA’S HI Earl Grey & Orange renewal•
Mar 13: Bacardi Mango Mojito limited edition launch•
Mar 19: Nectar Sour Cherry & Peach limited edition launch•
Mar 19: TEA’S HI Peach Tea launchWestern Spirits
 Conclusion of an operating alliance agreement with Bacardi Japan,
supplier of the world’s No.1 rum brand.
Start of sales in Nov. 2011
•Year-over-year increase in net sales•Planned April launch of RTD Bacardi Mojito in bottles•Active business development in both the household andcommercial markets

Shochu Year-over-year increase in net sales

RTD products launched Jan.-Mar.

 Solid performance from Imo Shochu Kokuimo and Mugi Shochu
Koimugi blended shochu
 Contribution to the sales increase from Kuroumesyu

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International Business (1)(billions of yen)

Results highlights

YoY change

Year-over-year increase in net sales of 69.6% as a result of growth on
local currency bases, mainly in North America, the impact of yen
depreciation, and the addition of Silver Springs Citrus. Operating income
rose as an increase in income from the North American businessexceeded growth in expenses for market development in Vietnam.

2012 1Q
Net sales

2013 1Q

5.8

45

North America,
othersVietnam

1. North American business growth
65

62.5

64.9

52.1
43.1

2007

2008

2007

35
2011

2012

2013

SLEEMAN（CAN$ mn）



14.8

Sales growth higher than total demand
growth in Canada

14.1

Expanding from the JapaneseAmerican market into wider US andAsian-American markets

10.6



9.7

10

Acquired a 51% stake in Silver Springs Citrus,
the largest U.S. maker of private-brandchilled drinks
•

5
2007

2008

2009

2010

2011

2012

2013

USA（US$ mn）

Copyright, 2013 SAPPORO HOLDINGS LTD. All rights reserved.

•

2010

2011

0.2
0.3
(0.0)

–
–
–

7th straight year of year-over-year volume growth!
2012 1Q

2013 1QSLEEMAN

110%

104%

Canada total
demandApproxApprox99%

97%Year-over-year volume growth!

Silver Springs Citrus (U.S.)

12.1

69.6%

Unit sales (YoY)(Jan-Mar)

13.1
11.1

4.0

Ｍ＆Ａ以降、

Sapporo USA (U.S.)

Sapporo USA Net Sales in Local Currency (Jan-Mar)
15

2009

USA ($ millions) Sales growth on increased investment
in marketing of premium brands

2010

(0.1)
0.2
(0.4)

2008

(Jan-Mar)

•
2009

41.9

SLEEMAN (Canada)

54.2

48.3
41.6

42.9

35

Sleeman Net Sales in Local Currency (Jan-Mar)

55
45

(0.4)
(0.0)
(0.4)

59.9

%

46.9

46.7

OperatingincomeKey points in business plan: implementation status

9.9

55

AmountFull-scale entry into the beverage business in
the North American market
Started consolidation of the profit and loss
account from April 2012

The figures reflect the impact of demand prior
to a price increase in April 2011.

Unit sales (YoY)

2012 1Q

2013 1Q

Sapporo USA

86%

110%

US total importbeer demand

ApproxApprox

96%

95%

18/25

International Business (2)Key points in business plan: implementation status

2. Expansion in Asia (incl. Oceania)

Developments in Vietnam

Developments in South Korea
 Strengthened Sapporo brand value and sales structure in South Korea by entering
into an alliance with Maeil Dairies Co., Ltd. (market share leader in cheese, low-fat milk,
and chilled coffee drinks) in January 2012 and acquiring a 15% stake in M’s

 Full-scale entry into the locally produced beer market at the end of February 2012

Beverage Co., Ltd., a wholly owned liquor sales subsidiary of Maeil Non-equity

 Start of full-scale marketing in April 2012

method affiliate

 Sales growth during the first Tet (New Year’s Holiday) sales season after full-scale
market entry

 2012 sales target of 380,000 cases (1 case = 350 ml×24 bottles): 420,000 cases sold andtarget achieved

 Sequential start of export to ASEAN countries and 2015 sales target of 1.5 million cases (1 case = 350 ml×24 bottles)

business expansion using Vietnam as a bridgehead Aim to be the No. 1 imported brand.
 Steady progress toward 2013 sales target of double-digit growth

Developments in Oceania October 2011 entry into the Australian/New Zealand premium beer market
via a licensing agreement with Coopers Brewery Ltd. (No.3 in Australia’s beermarket, No. 2 in premium beer market with a 17.3% share) Full-scale start-up in 2012

Aim to be the No. 1 Japanese beer brand.

 2012 sales target of 160,000 cases (1 case = 355 ml×24 bottles）: 160,000 cases
sold and target achieved
 2016 sales target of 500,000 cases (1 case = 355 ml×24 bottles ） Steady progress toward 2013 sales target of double-digit growth

Developments in Singapore
 Household market sales channel expansion in collaboration with POKKA for beer
produced in Vietnam
 2014 sales target: Approx. 150,000 cases (1 case = 355 ml×24 bottles）
 Aim to be the No. 1 Japanese beer brand.
 Steady progress toward 2013 sales target of double-digit growth

Copyright, 2013 SAPPORO HOLDINGS LTD. All rights reserved.

19/25

Food & Soft Drinks (1)YoY change(billions of yen)

Results highlights
Sales declined, largely as a result of a Jan.-Feb. sales decrease
due to the impact of integration preparations in 2012. Operating
income also declined, reflecting the sales decrease.
Key points in business plan: implementation status■ Soft Drinks and Food (Domestic)

Lemon,
natural foods

Net sales
OperatingincomeBefore GW
amortization2012 1Q

2013 1Q

Amount

28.1

27.6

(0.4)

(1.7%)

(1.2)
(0.6)

(1.8)
(1.1)

(0.5)
(0.5)

–
–
–

Organization of products in fivebusiness categories to leverage thestrengths of both companies
Beverages

Soup, foods

Overseasbrands%Vending machine
channel: 100,000
machine network

Commercial
marketFurther strengtheningof marketing tocorporate customers

Jan. 2013 start ofoperation as a newcompany

Spring 2013 Key Products
Invest in sales promotion
in segments in which thecompany can compete
and win

Kireto Lemon

Aromax Fantasista

Copyright, 2013 SAPPORO HOLDINGS LTD. All rights reserved.

Gerolsteiner

20/25

Food & Soft Drinks (2)Key points in business plan: implementation status■ Soft Drinks (International)
1. Expand into countries neighboring Singapore Market activation and production capacity expansion measures

2. Bolster sales in existing export markets
 Strengthening of alliances with agencies in the Middle
East and Europe

POKKA brand green teabased drinks have highmarket share in Singapore.

■ Restaurants (Domestic)
1. Favorable performance from existing outlets,
introduction of new seasonal products
Outlets: 163 (96 in Kanto, 35 in Tokai, 25 in Kansai,
6 in Kyushu, 1 in Shikoku)(As of March 31, 2013)
 Brand image strengthening throughan effective remodeling plan

2. Profits up on successful efforts
to lift the profit ratio Continued outlet renewal using a*Green tea products boast a market
share of 64.6% in Singapore

new brand package
 Active new menu introduction on a regular basis■ Restaurants (International)
Outlets: 34 (33 in Hong Kong, 1 in Macao)(As of March 31, 2013)

New outlets opened Jan.-Mar. 2013
・Tonkichi MomijiTei, Mikichi, Cooper
Luwak Art Coffee (three branches for
each)

21/25

Restaurants
Results highlights(billions of yen)

YoY change

Although cumulative sales at existing outlets were 99% of theprior-year level, net sales increased thanks to the contribution
from new outlets opened last year. Operating income also rosedue to the sales increase and closing of unprofitable locations.
Key points in business plan: implementation status2012 1Q

2013 1Q

Amount%Net sales

5.6

5.7

0.0

1.8%

Operatingincome

(0.2)

(0.3)

(0.0)

–

1. Strengthening of brand appeal and newoutlet opening
New restaurant opening strategy
 Synergy with Japanese Alcoholic Beverages: Opening of YEBISUBAR outlets•

New outlet opened in front of Kyoto Station, bringing the number of outlets to 10
as of March 31, 2013

International expansion
 Synergy with Food & Soft Drinks and International: Expansion in
Singapore•

Restaurant operating started in Singapore from January 2013•

Start of overseas expansion of beer halls•

POKKA FOOD ( SINGAPORE) PTE. LTD. which was previously
included in the Food & Soft Drinks segment was reclassified

to the Restaurants segment
Copyright, 2013 SAPPORO HOLDINGS LTD. All rights reserved.

YEBISU BAR Kyoto Yodobashi

 Locations opened Jan-Mar 2013: 2•

All outlets are performing as planned

2. Earnings structure reform Locations closed Jan-Mar 2013: 9
 Locations operating as of March 31, 2013: 186 in Japan
Singapore: Tonkichi

10 in Singapore

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Real Estate (1)(billions of yen)

YoY change

Results highlights
Both sales and operating income increased from March of last year,
partly due to the contribution from the 15% trust beneficiary rights weacquired in Yebisu Garden Place. A stable revenue structure wasmaintained amid weakening of rent levels in the Tokyo metropolitan area
office leasing market.

2012 1Q

2013 1Q

AmountNet sales

5.3

5.3

0.0

0.4%

Operatingincome

2.0

2.1

0.1

6.3%

Key points in business plan: implementation status

Boosting the value of existing properties
Yebisu Garden Place Maintenance and improvement of the occupancy rate andachievement of appropriate rent levels••

Maintained high occupancy rates and rent levels as of the end of
March at Yebisu Garden Place and other major Tokyo properties(table at right) compared to the 91% average for office buildingsin Tokyo’s 5 central wards
Undertaking of value enhancement measures, including
augmentation of emergency power generation equipment forcompletion in spring 2014

Redevelopment of the Ginza and Ebisu Areas(As of March 31, 2013)
Major rental properties inTokyo*s 23 wards

Site area(m2)

Floor area(m2)

Occupancy rate(%)

Yebisu Garden Place *1

56,943

298,00792%

40 floors above
ground, 5 below

Seiwa Yebisu Building*

2,617

–

*0%

6 floors above
ground, 1 below

Yebisu Square

1,561

9,126

100%

7 floors above
ground, 1 below

Shibuya Sakuragaoka
Square

1,200

9,268

100%

10 floors above
ground, 1 below

Sapporo Ginza Building

530

4,232

96%

10 floors above
ground, 4 below

1,117

11,411100%

13 floors above
ground, 1 below

Strata Ginza *2

 Redevelopment of Seiwa Yebisu Building•

Start of redevelopment to include total floor area expansion, with theaim of completion in the autumn of 2014•

Departure of all tenants completed in October 2012 in line with theconstruction plan* Redevelopment Sapporo Ginza Building•

Start of consideration in earnest of redevelopment to include total floorarea expansion in preparation for redevelopment of the Ginza 4-chomearea
Copyright, 2013 SAPPORO HOLDINGS LTD. All rights reserved.

%

No. of floors

Site areas are taken from the land registry. Floor areas are as per building certification.
Occupancy rates are averages for Jan–Mar 2013.
*1. Figures are for entire property. Number of floors for office wings/buildings only. Occupancy
rates are for office areas only.
*2: Figures are for entire property. Sapporo owns 922m2 of the site (sectional ownership) and89.72% of the building (joint management)
For more details about our Real Estate business’s properties, visit the following website:(http:/www.yebisu-gp.jp/business/index.html)

Sapporo Ginza
Building(completed 1970)

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Real Estate (2)Overview of Real Estate Business The majority of operating income from the Real Estate business is from real estate leasing.
– The property portfolio largely comprises properties in Tokyo (5 central wards: see previous page).
– Unrealized gain on real estate for lease was ¥125.7 billion as of Dec. 31, 2012.
Operating Income(billions of yen)2012 1Q
Real estate leasing
Tokyo’s 23
wards
Other areas
Real estate leasing
total
Sales
Other operations*
Total

FY2013 est.

Change(value)

0.0

8.6

7.8

(0.8)

0.2

0.3

0.0

1.0

0.9

(0.0)

2.0

2.2

0.1

9.6

8.8

(0.8)

–
(0.0)
2.0

–
(0.0)
2.1

–
–
0.1

–
(0.2)
9.3

–
(0.5)
8.3

–
0.2
(1.0)

*”Other operations” includes back-office operations.
EBITDA = operating income + depreciation and amortization2013 1Q

Change(value)FY2012FY2013 est.

Change(value)

2.7

2.7

0.0

12.1

11.2

(0.9)

0.4

0.4

0.0

1.7

1.6

0.0

3.1

3.2

0.0

13.8

12.9

(1.0)

–
(0.0)
3.2

–
(0.0)
0.0

–
0.1
14.0

–
(0.1)
12.7

–
(0.2)
(1.3)

–
Other operations*
(0.0)
Total
3.1
Copyright, 2013 SAPPORO HOLDINGS LTD. All rights reserved.
Sales

FY2012

1.9

2012 1Q

Other areas
Real estate leasing
total

Change(value)

1.8

EBITDA

Real estate leasing
Tokyo’s 23
wards

2013 1Q

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To make people’s lives richer
and more enjoyable.

The earnings forecasts and forward-looking statements appearing in this document were prepared by the
SAPPORO Group based on currently available information and its best assessment of potential risks anduncertainties. Actual outcomes may differ materially from forecasts due to changes in various underlying
factors.

Copyright, 2013 SAPPORO HOLDINGS LTD. All rights reserved.

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