Sapporo Group Business Results Presentation
for the Three Months Ended March 31, 2017

May 11, 2017
URL http://www.sapporoholdings.jp/english

Copyright, 2017 SAPPORO HOLDINGS LTD. All rights reserved.

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Contents
１．2017 1Q Results

2． Overview of each business

Appendix：Collection of Data by business

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(billions of yen)2017 1Q

Net sales (incl. liquor tax)

111.3

117.7

6.3

5.7%

Net sales (excl. liquor tax)

88.8

94.9

6.0

6.8%

0.2

-

Overseas net sales to total(excl. liquor tax)

First-Quarter2017
Highlight

YoY changes(amount, %)2016 １Q

23.4 ％

23.5 ％

Operating income

(1.4)

(1.4)

(0.0)

-

Operating income before
goodwill amortization

(0.4)

(0.4)

(0.0)

-

Ordinary income

(2.2)

(1.9)

0.3

-

Loss attributable to owners ofparent

(2.0)

(2.3)

(0.3)

-

Balance of Net debt

227.5

223.9

(3.6)

(1.6)%

Ｄ／Ｅratio
EBITDA※Net

1.5 times

1.4 times

(0.1)

-

5.0

5.3

0.3

6.1%

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Sales increased ¥6.3 billion;
operating income remained unchanged y-o-y(billions of yen)

Net Sales

YoY change Steadfast growth in strong business fields(Yebisu, Black Label, North America, lemon, Ginza Lion, YGP, etc.)*YGP: Yebisu Garden PlaceFirst-Quarter2017
Operating income
YoY changeGroup Executive
Summary

Loss attributable toowners of parent

YoY change

 Sales grew and product mix improved
 Made upfront investment for strengthening
brands No significant factors affecting income
levels after operating income; ¥300 million
of profit decline y-o-yCopyright, 2017 SAPPORO HOLDINGS LTD. All rights reserved.

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Net Sales at all businesses increased;
Profit declined at 3 segments incl. Japanese Alcoholic
Beverages due to upfront investment(billions of yen)First-Quarter
2017
Overview by
Business
Segment

Japanese
Alcoholic
Beverages

International

Food & Soft
DrinksRestaurants

Real Estate

Net Sales

Operatingincome*Figures are changes from a year earlier

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(billions of yen)2016.1Q
Consolidated
Net sales

Net Sales by
Segment

2017.1Q

YoY changes(amount, %)

111.3

5.7％

Japanese Alcoholic
Beverages

53.1

2.5％

International

15.4

7.8%

Food & Soft Drinks

30.2

4.4%

Restaurants

5.7

11.4%

Real Estate

5.3

9.7%

Other

1.4

94.8%
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Net sales grew in mainstay products and services ofeach businessJapanese Alcoholic
Beverages

International

Food & Soft
DrinksRestaurants

Real Estate

2017(billions of yen)

Main Factors
Contributing toChangesin Net Sales
2016= Increase= Decrease
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(billions of yen)2016 1Q
Consolidated
operating income

Operating Income
by Segment2017 1Q

YoY changes(1.4)

Japanese Alcoholic
Beverages(1.8)

International(0.3)

Food & Soft Drinks(0.6)

Restaurants(0.1)

Real Estate

2.6

Other

(0.0)

General corporate andintercompany
eliminations(0.9)

Amortization of goodwill

0.9

0.0

International

0.4

0.0

Food & Soft Drinks

0.5

0.0

Operating income before
goodwill amortization

(0.4)

(0.0)
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Operating income remained unchanged y-o-y as fixed
costs increased due to brand enhancement, etc.
Japanese
Alcoholic
Beverages

International

Food & Soft
DrinksRestaurants Real Estate(billions of yen)
2017

2016

[Breakeven]

Main Factors
Contributing toChangesin Operating
Income= Increase= Decrease
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Overview of Each Business

Copyright, 2017 SAPPORO HOLDINGS LTD. All rights reserved.

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Made investment in beer brands from 1Q
Japanese Alcoholic
Beverages

 Active brand investment primarily in Black Label and Yebisu
Positive(Hanamiyabi launched)

Beer maintained growth momentum(Black Label sales volume% y-o-y, Yebisu%, beer total%)

 Beer’s component ratio increased, product mix improved(Beer’s component ratio among beer and beer-type beverages increased from
FY2017 1Q; up ¥% in FY2016 1Q to% inreflecting improved product mix)

 Diversification, including fine wine and RTD, progressed smoothly(Sales of wine business%, spirits business%) Sales of happoshu, new genre declined y-o-y(Mugi to Hop brand％, Goku Zero brand％)⇒To shore up the business towards the high season withcampaign featuring Mugi to Hop and Goku Kin! Can
launched in May
Negative

http://www.sapporobeer.jp/news_release/0000021576/index.html
http://www.sapporobeer.jp/news_release/0000021562/index.html*See Appendix in slides 26 to 29.
Copyright, 2017 SAPPORO HOLDINGS LTD. All rights reserved.

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Japanese Alcoholic Beverages（(billions of yen)

Net Sales

YoYchange（Reference)*Estimates

Beer
down
Total
Happoshudown
demand :New genre up
Beer

OperatingincomeHapposhu, new genre

RTD, wine, Japanese liquor,
etc.

YoY
change*EstimatesTotal
demandBeer sales volume
increase

Happoshu, new genre
sales volume decline

Product mix,
nonacloholic beer, RTD,
manufacturing cost, etc.

Increase in fixed costincl. sales promotion
cost

Total
demandWines, spirits

Copyright, 2017 SAPPORO HOLDINGS LTD. All rights reserved.

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Beer sales in North America have been strong; softdrinks are led by CPF; uphill fight in Vietnam
International

Positive The business in North America continued to grow with brand andpersonnel investments(Sales volume at Sleeman% y-o-y, Sapporo brand at Sapporo USA% y-o-y) At CPF, food service and co-packing have been strong
 Ridgefield’s (the Frozen Fruit Juice Business) also contributed toearnings
 Exports to South Korea, etc. have been strong(Exports to South Korea grew almost%) Profit in Vietnam increased due to reduction in sales promotion cost
but sales significantly fell below the previous year’s level⇒ It is a transition period in which we are working on various structural reforms, andwe are working on review of sales structure, efficient sales promotion investment
and study of an optimal global supply chain for improving the operating rate
Negative*CPF: Country Pure Foods*See Appendix in slides 30, 31 .
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International（(billions of yen)

Net Sales

YoYchange（Reference)*Estimates

Canadian beerTotal
down about
demand :U.S. beer

down about

North American
alcoholic beverages

OperatingincomeNorth American softdrinksVietnam

Exports, other

YoYchange*EstimatesTotal
demandSales increase, product mix, etc.
in North America, etc.

Increase in fixed cost in North
America, etc.

VietnamTotal
demandCopyright, 2017 SAPPORO HOLDINGS LTD. All rights reserved.

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Sales of lemon-based products and tea drinks were strong
Food & Soft Drinks

 Lemon-based products, where our strength lies, grew significantly
in terms of both soft drinks and food products
Positive(Lemon-based soft drinks sales volume％ y-o-y, lemon-based food products％)

 Strategy to differentiate tea drinks using domestic ingredients weresuccessful(Tea drink sales volume％ y-o-y) Other soft drinks, soups and café format were also steady（Soup sales volume％ y-o-y, POKKA CREATE sales％)

 The aseptic bottling line introduced in 2016 resulted in cost
improvement(expected to be ¥billion a year) ⇒ Carry the effect through towards the high season ofsoft drinks

 Costs such as logistics, personnel and advertisement expenses
increased⇒No significant gap with the advertisement and personnel expense plans.
We will offset the soaring logistics cost with various cost reduction measures.
Negative* Total demand data: Source – Inryou‐souken, Total for SM CVS formats by Intage SRI(nationwide retailer panel research)
Jan–Mar 2017 y‐o‐y comparison of cumulative sales amount for the lemon‐based products market (Sapporo’s definition)*See Appendix in slides 32 to 35.
and instant soup market
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Food & Soft Drinks（(billions of yen)

Net Sales

YoYchange（Reference)*Estimates

Domestic soft drinks

Total
up
demand : Lemon-based products
Japanese food & soft drinks

OperatingincomeInstant soups

Overseas food & soft drinks

up
up

YoY
change*EstimatesTotal
demandSales incease, productmix, etc. at Japanesefood and soft drinks

Increase in sales
promotion cost

Increase in other fixed
cost

Overseas, restaurants,
etc.

Total
demandCopyright, 2017 SAPPORO HOLDINGS LTD. All rights reserved.

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Sales were strong; profit declined due to increase in
fixed cost such as personnel expenses
Restaurants

Positive

 Nonconsolidated sales of Sapporo Lion were steady(Comparable-store sales

y-o-y)(billions of yen)

Sales

 Marushinkawamura, acquired in 2016, also performing well

YoYchange(Net increase of about ¥billion in sales as it was consolidated in June 2016)

 New restaurants had good starts(Yebisu Bar Hiroshima and Shin Yokohama outlets → See slide 37)
Marushinkawamura

OperatingincomeOther Trend of increase in personnel expenses due to the impact ofdifficulty in hiring

YoYchange⇒To ensure profitability through measures such as reduction of utility costs andimprovement and closure of outlets

 LION GINZA 7-Chome restaurant was closed for refurbishment
Existing restaurants, newopenings, refurbishment, etc.

Negative(Sales decline caused by the closure from January 10 to February 28)*See Appendix in slides 36, 37.
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Stable operation of mainstay properties contributed tosales and profits
Real Estate

Positive（Jan-Mar total occupancy rate

(billions of yen)

Sales

Yebisu Garden Place

Operatingincome Yebisu Garden Place (YGP) maintained stable occupancy rate%) Ginza Place, inaugurated in September 2016, contributed to sales
and profits

YoYchange Profits increased also at properties in Sapporo led by Sapporo
Factory

Ginza Place, etc.

YoYchange Some of YGP tenants left but the impact is negligible⇒ New tenants have been already lined up and has been progressing
in line with the initial plan

Yebisu Garden Place Ginza Place, etc.

Negative*See Appendix in slides 38, 39.
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Difference in consolidated period of 2 group companies
Impact of exchange rates negligible<Special factors>
Business segment

Details

Impact on
sales

Impact on
operatingincomeRestaurants

Marushinkawamura Inc.: consolidation began
in June 2016

Approx.
¥0.5 billion

-

Other

Miyasaka Jozo Co., Ltd.: consolidation began
in October 2016

Approx.
¥1.4 billion-

Special Factors
in the BusinessResults(- = negligible)<Impact of foreign exchange rates>
FY2016 1Q

Impact on
sales

Impact on
operatingincomeJapanese
Alcoholic
Beverages--

International

-

-

-

-

FY2017 1Q

US＄¥115.33¥113.60

EUR¥127.11¥121.05

CAN＄¥83.97¥85.83

SG$¥82.18¥80.23

Food & Soft
DrinksCopyright, 2017 SAPPORO HOLDINGS LTD. All rights reserved.

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No significant factors affecting
Other Income and Expenses
2016 1Q

2017 1Q

ChangeOperating income

(1.4)

(1.4)

(0.0)

Financial account balance

(0.3)

(0.3)

0.0

-

Other non-operating expenses

(0.5)

(0.2)

0.3

Foreign exchange gains and losses

Ordinary income

(2.2)

(1.9)

0.3

Gain on sales of property,
plant and equipment

0.0

0.0

(0.0)

Other extra ordinary gains

0.0

0.0

(0.0)

Loss on sales/ disposal ofproperty, plant and equipment

(0.2)

(0.2)

(0.0)

Impairment loss

(0.0)

(0.1)

(0.1)

Other extra ordinary losses

(0.2)

(0.2)

0.1

Loss before income
taxes

(2.6)

(2.3)

0.3

-

0.5

0.0

(0.4)

2016：Special factor resulting from thesubsidiary companyʼs liquidation

(2.0)

(2.3)

(0.3)

-

(billions of yen)

Changes in
Other Income
and Expenses

Corporate tax, non-controllinginterests

Loss attributable toowners of parent

Primary Reasons

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35.5 billion yen decline in total assets＜Comparison with End of FY2016>

Cash and cash

(billions of yen)

Total assets

equivalents

Total assets

Trade receivables→Impact of seasonal factors,bank holidays, etc.

Changes in
Balance sheets

Inventory

Current assets

64.3

74.8

71.2

41.2
17.0

41.1
16.7

40.6
15.5

346.2

344.2

346.4

96.8
68.4
37.9
18.7

40.7
19.5

356.0

352.7

Current
assetsCurrent assets,
etc.

Fixed assets

Fixed assets

Goodwill

Investments, etc.

29.2

28.8

27.6

27.4

26.2

79.3

76.5

77.4

78.7

73.6

End of FY2016

2017 1Q

2016 1Q

2016 2Q

2016 3Q

0.0‐

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Fixed
assets21/40

Total liabilities down by 28.7 billion yen, total net
assets down by 6.7 billion yen＜Comparison with End of FY2016>（billions of yen）

Total

Accounts payable

Total

Short-term bank liabilitites

38.5
34.6

Deposits received

37.8

101.4

94.8

10.2

8.5

71.8

80.9

38.8

Current
liabilities

66.2

35.8
73.4
8.2

7.5

Changes in
Balance sheets（billions of yen）

Balance of Net
debt（comparison withend of FY2016)（Comparison with
2016 1Q)）

Current liabilities→Reduction in liquor taxes payable

91.9
82.2

Net defined benefit liability
Long-term liabilities, etc.
Shareholder's equity→2017 1Q Net loss and dividend payment

Long-term
liabilities

162.2

138.2

143.9

7.2

6.9

6.8

71.2

70.4

72.5

8.8

164.7

154.2

8.9

8.6

74.1

70.4

Net assets

128.6

131.0

135.8

20.4

15.0

14.7

Current
liabilities

74.0

Long-term bank liabilities→Transfer of current portion of bonds

79.0

140.1

134.9

20.5

19.1

Longterm
liabilities

Net
assets

Accumulated other
Ｄ／Ｅratio (Net)comprehensive income
Non-controlling interests

5.5
2016 1Q

5.1
2016 2Q

2016 3Q

5.1

0.0
‐

5.6
End of FY2016

5.5
2017 1Q

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Cash basis investment totaled 5.9 billion yen(billions of yen)

<Trend in investment>
45.0
Cash flow from investment
activities

40.0

billion yen planned infour years

35.0(35.1 billion yen plannedin 2017 full-year)

30.0

Financial Status

25.0
29.2

40.2
29.5

31.0

②<Other investment> about ¥billion inconsolidated total(Long-term prepaid expense, subsidiariesʼ shares,
investment securities, etc.)<Major items>-Long-term prepaid expense (Japanese Alcoholic
Beverages/Food & Beverages) about 0.5 billion yen

10.0
5.0

5.9
0.0

<Major items>- “Liquor,” “Food,” “Drinks” –related: about ¥2 billion(Nasu Plant one-way bottle-related work, etc.)- Real Estate-related: about ¥1.2 billion(Boosting value of YGP, etc.)- SGM Group infrastructure streamlining, etc.: about ¥0.7
billion*SGM: Sapporo Group Management Co., Ltd.

20.0
15.0

①<Capital expenditure; lease fees> about ¥billion yen in consolidated total（tangibles, intangibles, lease fees, etc.)①+②<FY2017 1Q investment total>(Incl. cash basis, current capital expenditure, lease fees)
about ¥

billionCopyright, 2017 SAPPORO HOLDINGS LTD. All rights reserved.

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Embarked on “Strengthening of Platform Functions”
stipulated in Medium-Term Management Plan
Establishment of Delicious Taste Technology Research Center

R&D

Transformationof the Groupmanagement
platform

Personnel,
human
resources
Finance-Established under Group R&D headquarters (Kohoku-ku, Yokohama)-Strengthened food processing technology, material technology development,
delicious taste development research

Active implementation of work style improvement-Studies aimed at introducing the new system(1) Interval system, (2) Team (pair) system, (3) Telework, (4) Hourly paid leave, (5)Super flex

Asset review for asset efficiency improvement-Formulate concrete measures for reviewing the strategic cross-shareholding

Integration of Corporate Communications and Group CSR
Communications departments-Strategic organizational restructuring for Corporate Communications Strengthening
stated in Long-Term Management Vision SPEED150
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R&D successes to product development

 Feb 27: Confirmed moisture retention improvement function of“SBL88 lactic acid bacteria”〜 delightful function of Sapporo’s lactic acid bacteria 〜 Mar 21: Determined the calcium absorption promotion properties of citric acid from small

Transformation intestine and its mechanism〜 Further research on lemon’s functional ingredient “citric acid’s chelate effect”〜of the Groupmanagement  Mar 21: Verified the relationship of deliciousness with the characteristics of taste and flavor
in lemon drinks
platform〜 Quantify feelings such as delicious taste in numbers and use them for new productdevelopment 〜 (①)

Mar 27: Verified the aging control properties of long-term consumption of lemon polyphenol〜 Fresh confirmation of lemon’s health function 〜*The dates are the date of announcement*See following news releases for details
http://www.sapporoholdings.jp/csr/news/index.html(①)

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Personnel,
human
resources

Communications

Environmental protection initiatives andpromotion of work style improvement

 Jan 10: Provided production technology for commercialization of the world’s first (Sapporo study)
bio-ethanol plant that uses cassava pulp and concluded consulting contract for plant design→aim for about 120,000 ton/year* reduction of greenhouse gases (Photo 1)(* equivalent to about 50 Tokyo Dome-sized stadia or the annual CO2 output of Sapporo’s Japanese Alcoholics Beverages business)

1

2

Tapioca products

Food, industrial
products
Cassava farm
Cassava root

residue

Various
Initiatives
by the SapporoGroup Feb 23: Certified as an “Excellent Enterprise of Health and Productivity Management-White500”〜 Among 500 companies that take care of employee health 〜 (Photo 2)

Cassava (tapioca)
starchEthanol production flow

Cassava pulp

Grinding

Cassava pulp

Liquefaction

Fermentation

Distillation/
drying*The dates are the date of announcement*See following news releases for details
http://www.sapporoholdings.jp/csr/news/index.html

Refinedethanol

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Appendix

Copyright, 2017 SAPPORO HOLDINGS LTD. All rights reserved.

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Major sales & sales volume

Appendix

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＜Y-o-y change in sales volume of
3 core brands>（sales volume）【Beer】

Jan-Mar up％ y-o-y （total demand down 1％）

115

 Black Label Brand total up ％ y-o-y％ y-o-y）（Sales of the canned version：up

 Yebisu Brand total up

Appendix

Japanese Alcoholic
Beverages％ y-o-y

110
105
100

（sales volume）【Happoshu+new genre】

95
Jan Jan- Mar down ％(total demand unchanged y-o-y) Mugi to Hop Brand total down

％ y-o-y Goku Zero Brand total down

％ y-o-yFeb

MarTotal beer demand

Sapporo total

Black Label

Yebisu115
110（sales volume）【Wine , Spirits and other】

105

 Wine：up％ y-o-y100

 RTD : up

％ y-o-y95

 Spirits：upJan％ y-o-y Japanese liquor：up

Feb

Total new genre demand％ y-o-yMar
Mugi to Hop

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＜Beer and beer-type beverages category
Jan- Mar sales volume Y-o-y Change (Shipment base)(10,000 cases)

1,400
1,200
1,000
800
600

＜Beer lineup (Jan – Mar breakdown＞

400

12%

200

Appendix0
2011Japanese Alcoholic
Beverages(10,000 cases)

2012

2013

2014

2015

2016

2017

Beer, happoshu, new genre

Beer

Happoshu, new genre＜3 core brand Jan- Mar Sales volume change＞

400
350

57%

31%

300
250
200

Black Label

Yebisu

Other

150
100
50
0
2011

2012

Black Label brand total

2013

2014

Yebisu brand total

2015

2016

2017

Mugi to Hop brand total
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＜Jan- Mar Net Sales＞ (billions of yen)

3.0※incl. liquor tax

60

2.0
1.0

50

0.0
40
30

14.8

14.9

19.3

13.8

14.4

13.9

10

Appendix

27.2

28.1

29.9

28.2

27.8

29.3

31.1

1.7 1.6 1.6 1.7
1.2 1.4 1.5
1.0 1.1 1.1 1.4 1.2 1.1 1.1
2011 2012 2013 2014 2015 2016 2017

12.7
1.5

20

(billions of yen)

4.0

Japanese wine

Imported wine

0.9 1.0

1.2 1.1 1.3 1.4

1.0
0.5

0

0.0
2011

Japanese Alcoholic
Beverages

2012

2013
Beer

2014

2015

2016

2017

0.2

2011 2012 2013 2014 2015 2016 2017

Happoshu, new genre

Spirits

4.0＜Jan- Mar sales breakdown by category＞

5%

7%

2.0
1.0

Beer

2.9
1.7 2.2

3.5 3.3 3.6 3.8

0.02011 2012 2013 2014 2015 2016 20178%

Happoshu, new genre

54.4

Japanese liquor

2.0Wine, spirits

billions of yen

23%

3.0

Japanese Liquor

57%

RTD, Non‐alcoholicbeer, etc.

1.5
1.0
0.5
0.0

0.3 0.8 0.5 0.9 0.9 1.0

1.5

2011 2012 2013 2014 2015 2016 2017
ＲＴＤ
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31/40

＜Jan- Mar Major new products＞

YEBISU Hanamiyabi

YEBISU Meister
improved

YEBISUSpecial edition can

Kireto Lemon sour
Collagen 1000

Ai no Skal
White sour

Appendix

Japanese Alcoholic
Beverages

Classic Harunokaori

Mugi to Hop The gold
Special edition canSpecial edition cans

Mugi to Hop Platinum Clear
improved

PerritoCarmenere

Zuccardi series

Shochu Triangle
improved
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32/40

【U.S. soft drinks business】【SLEEMAN】
 Jan- Mar up ％ y-o-y *sales volume（total demand down 2%)

 Jan- Mar up

％

y-o-y

*sales revenue＜Ｕ.S. soft drinks business Net Sales in Local Currency(Jan-Mar)＞【Sapporo U.S.A.】* before elimination of inter- company transactions

 Jan- Mar up％ y-o-y *sales volume（total demand down 2%)

70

80

66

71

60
50
40

Appendix
International【Vietnam】
 Jan- Mar down

30
20
％

y-o-y *sales volume＜Y-o-y change in domestic sales volume
in Vietnam
140%

10
0
2016

2017

Silver Springs Citrus （US$ millions）
Country Pure Foods （US$ millions）

120%
100%
80%
60%
40%
20%
0%
16.1Q

16.2Q

16.3Q

16.4Q

17.1Q

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＜SLEEMAN：Net Sales in Local Currency (Jan- Mar))80*before elimination of inter- company transactions

Sapporo brand sales volume
breakdown by geographic area
37%

70
6%

60

1.46

13%

50
40
30
20

8%

43

48

52

54

63

65

64

69

71

million

0.79

cases

million

75

cases
2012
1Q

10

81%

North America
Asia
Oceania, etc.

02008 2009 2010 2011 2012 2013 2014 2015 2016 2017

International

North America：Canada, U.S.

SLEEMAN(Can$ millions)

AppendixAsia：Vietnam, Singapore, South Korea, etc.
Oceania, etc.：Australia, Europe, etc.

＜Trend of overseas sales volume of
Sapporo brand products (Jan- Mar)>＜Sapporo U.S.A.：Net Sales in Local Currency (Jan- Mar))18*before elimination of inter- company transactions

16

300

14

250

12
8
4

（10,000 cases）

200

10
6

55%

2017
1Q

11

10

12

15

13

14

12

15

14

15

150
100
50

2
0

226

234

247

57

69

79

2010

2011

2012

256

250

111

103

2013

2014

257

259

268

134

131

146

2015

2016

2017

0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
USA（US$ millions）

Sapporo brand

SLEEMANCopyright, 2017 SAPPORO HOLDINGS LTD. All rights reserved.

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【Lemon-based drinks】【Lemon-based food products】

 Jan- Mar up％ y-o-y【Unsweetened tea drinks】【Soups】

 Jan- Mar up

 Jan- Mar up％ y-o-yFood & Soft Drinks

 Jan- Mar down

％ y-o-y＜Japanese soft drinks
POKKA SAPPORO Food & Beverage
Sales composition by sales channel(Jan- Mar)＞

9.62
million53%％ y-o-y％ y-o-y【Soy milk, chilled products】【Coffee drinks】

AppendixJan- Mar up

 Jan –Mar Net Sales approx.

21%

47%
Vending machines
Retailer

cases※Vending machines (end of Mar.)own brand machines : about 87,000+ Multi-brand machines

billion＜Japanese soft drinks
Sales composition by genre(Jan- Mar)＞
CoffeedrinksLemon‐
based drinks
Tea drinks

25%

9.62

4%

millionCarbonated

13%

cases

Water
Other

23%

14%

Copyright, 2017 SAPPORO HOLDINGS LTD. All rights reserved.

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＜Food & Soft Drinks segment
Net sales break down by geographic area＞＜Food & Soft Drinks segment Net sales>(Jan- Mar)
35.0

※April 2011 Consolidation of

30.0

POKKA CORPORATION

83%

25.0
20.0

28.1 27.6 29.8 29.3 30.2

15.0

31.5

10.0
5.0

Appendix

Food & Soft Drinks

10.4 7.9

17%
6.5 6.1 6.6

0.0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Japan

Net sales＜Japanese soft drinks
POKKA SAPPORO Food & Beverage
Sales composition (Jan- Mar)＞

Overseas＜Overseas soft drinks
POKKA Corporation (Singapore)
Sales composition (Jan- Mar)＞

2%
26%

54

¥19.9
45%

billion

SG＄ million

55%
71%
Within Singapore
Soft drinks

Food

Soy milk

Exports

Copyright, 2017 SAPPORO HOLDINGS LTD. All rights reserved.

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【Pokka Create CO., Ltd.】 Jan- Mar Net salesupbillion％ y-o-y<Number of outlets as of Mar 31 , 2017 : 193>

Appendix

Food & Soft Drinks＜New & refurbish outlets ＞

106
49

East Japan

193

Central JapanWest Japan

38
110
83

193

Directory operatedFC

Copyright, 2017 SAPPORO HOLDINGS LTD. All rights reserved.

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＜Jan- Mar Major new products＞

Ribbon Series
improved

Nippon Oolong
improved

Tokyo Ryokucha

Hita no nashi

Canned Jikkuri kotokoto soup series

Appendix

Food & Soft Drinks

L: Kireto Lemon – C water
R: Kireto Lemon- C Supply

World Lemonade
Pakuchi & Lemonade

Jikkuri kotokoto kongari Pan soup series

Lemon noshizuku

Plus Nyusankin
Tonyu Inryo series
Setouchi Lemon
Lemonade

Risorante
Cup-based risotto

Sozaiya Soup

Copyright, 2017 SAPPORO HOLDINGS LTD. All rights reserved.

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(billionsof yen)8.0

Trends of net sales and number of
Sapporo Lion Outlets

194

7.0

192

186

188
179

6.0

170

5.0

174

4.0
3.0

4.8

2.0

5.5

5.4

5.4

5.4

5.4

5.5

1.0

Appendix0.0
2011

Restaurants

2012

2013

Net sales

2014

2015

2016

200
190
180
170
160
150
140
130
120
110
100

2017

Number of outlets＜Restaurants segment total number of outlets＞

174

9＜Sapporo Lion outlets ＞
As of March 31, 2017

6

14

9 8
Tokyo Metropolis
Kanto (excl. Tokyo)
Hokkaido

174

TohokuNagoyaKansai

26

90

Other

21
<Brands＞

Sapporo Lion
New Sanko

212

Marushinkawamura
Singapore

16
13
Copyright, 2017 SAPPORO HOLDINGS LTD. All rights reserved.

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YEBISU BAR
opens in the Chugoku-Shikoku area andYokohama
for the first time

Singapore Tonkichi
opens after renovation

 YEBISU BAR at Hiroshima
Opened on February 10, 2017
Offers dishes made with produce from Hiroshima Renovated Isetan Scotts and Takashimaya
restaurants

Appendix YEBISU BAR at Shin Yokohama
Opened on March 30, 2017 To be the Yebisu dissemination base in thewestern area and Yokohama area
http://www.ginzalion.jp/company/images/pdf/170125.pdf

 Orchard Central outlet was re-launched in the
new Tonkichi Hokkaido format
 Tonkichi Hokkaido was opened on March 27,
2017http://www.ginzalion.jp/company/images/pdf/170323.pdf
Copyright, 2017 SAPPORO HOLDINGS LTD. All rights reserved.

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＜Major rental properties & occupancy rates：（Averages for 2017 1Q )Yebisu Garden Place（1）Ebisu First Square

Appendix
Real Estate

Site area（㎡）

Floor area（㎡）

Occupancyrate（%）

No. of floors

450.0

56,943

298,00799

40 floors above
ground, 5 below

350.0

100

12 floors above
ground, 1 below

2,596

16,012Ebisu Square

1,561

8,644

100

7 floors above
ground, 1 below

Ginza Place

645

7,350

97

11 floors above
ground, 2 below

100

13 floors above
ground, 1 below

Strata Ginza（2）＜Information about
Real Estate for lease＞

1,117

11,411(billions of yen)

400.0
300.0
250.0
200.0
100.0

197.7

(billions of yen)

0.0
As of December As of December
31, 2015
31, 2016
Balance sheet value

Fair value(billions of yen)

＜EBITDA＞

2016 1Q

2017 1Q

Yebisu Garden Place, etc.

2.7

2.8

0.1

0.0

Hokkaido

0.4

0.4

0.0

0.7

0.2

Other area & otheroperations

0.6

0.9

0.3

(0.1)

(0.2)

(0.0)

General corporate

(0.1)

(0.2)

(0.0)

2.6

2.9

0.3

3.6

4.0

0.4

＜Operating income＞

2016 1Q

2017 1Q

Yebisu Garden Place, etc.

1.9

2.1

0.1

Hokkaido

0.2

0.3

Other area & otheroperations

0.4

General corporate
Total

201.8

50.0

*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 922m2 of the site (sectional ownership) and 89.72% of the building(joint management)

389.1

357.4

150.0

ChangeTotal

ChangeEBITDA= Operating income + depreciation and amortization)
Copyright, 2017 SAPPORO HOLDINGS LTD. All rights reserved.

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Tokyo Energy Service Co., Ltd.
wins special award at the 2016 Co-gen Awards


Appendix

The company has been pursuing extended use of energy through energy-saving districtcooling and heating business from 1994, when we opened Yebisu Garden Place.
Upgraded the existing cogeneration system from gas turbine to gas engine with the aimof maintaining functionality during disasters and improving environmental characteristics
at the time of facility upgrading.
By pursuing further energy savings and continuing heat supply during disasters, thecompany worked on strengthening the BCP measures of the community and this led to it
receiving the special award in recognition of its contribution to the region.
*Cogeneration (Co-gen)
Refers to efficient energy utilization such as using the heat generated
while generating power using fuel to heat water and for air conditioning*BCP
Business continuity plan

http://www.sapporo-re.jp/news_release/pdf/20170217/20170217.pdf
Copyright, 2017 SAPPORO HOLDINGS LTD. All rights reserved.

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

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

Copyright, 2017 SAPPORO HOLDINGS LTD. All rights reserved.

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