Financial Results
for the Nine Months Ended September 30, 2009—Consolidated
October 30, 2009
Company name

Sapporo Holdings Limited

Security code
Listings
URL
Representative
Contact

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

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

November 12, 2009—

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

(1) Operating Results(Percentage figures represent year-over-year changes)
Net sales
Nine months ended
September 30, 2009
Nine months ended
September 30, 2008

Operating income

Ordinary income

Net income

million yen%

million yen%

million yen%

million yen%

283,109

-

7,843

-

6,269

-

2,319

-

306,572

(7.6)

9,066

44.5

6,534

72.0

14,286-

Net income
per share

Diluted
net income
per share

yen

yen

5.92

5.41

36.44

34.93

Nine months ended
September 30, 2009
Nine months ended
September 30, 2008

(2) Financial Position
Total assets

Net assets

Shareholders’equity ratio

Net assets
per share

million yen

million yen%

yen

September 30, 2009

511,904

116,20922.7

296.03

December 31, 2008

527,286

116,86222.1

297.60Note: Shareholders’ equity
September 30, 2009:

115,990 million yen

December 31, 2008:

116,636 million yen

12. Dividends
Dividend per share
Record date or period

End Q1End Q2End Q3Year-end

Full year

yen

yen

yen

yen

yen

-

0.00

-

7.00

7.00

-

0.00

-

7.00

7.00

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

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

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

Full year

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

million yen%

million yen%

million yen%

million yen%

yen

400,000(3.5)

12,000(18.3)

8,500(19.3)

3,000(60.7)

7.66

Note: No changes were made to earnings forecasts in the nine months ended September 30, 2009.

4. Other(1) Changes affecting the status of significant subsidiaries (scope of consolidation): None
(2) Use of simplified accounting methods and/or accounting methods specific to quarterly
consolidated financial statements: Yes
Note: For details, see “4. Other” on page 10 in the “Analysis of Operating Results” section
below.
(3) Changes in accounting principles, procedures, and methods of presentation used to prepare
the quarterly financial statements
1) Changes in accord with amendments to accounting standards: Yes
2) Changes other than the above: None
Note: For details, see “4. Other” on page 10 in the “Analysis of Operating Results” section
below.
(4) Number of shares issued and outstanding (common stock)1) Number of shares issued at end of period (treasury stock included):
September 30, 2009: 393,971,493 shares
December 31, 2008: 393,971,493 shares
2) Number of shares held in treasury at end of period:
September 30, 2009: 2,156,731 shares
December 31, 2008:
2,045,360 shares
3) Average number of outstanding shares during the period:
Nine months ended September 30, 2009: 391,886,745 shares
Nine months ended September 30, 2008: 392,094,338 shares

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

3

1. Analysis of Operating Results
Consolidated financial results for the nine months ended
September 30, 2009 (January 1 – September 30, 2009)
Consolidated net sales for the nine months ended September 30, 2009 were down
¥23.4 billion versus the first nine months of 2008 (8%) to ¥283.1 billion. This
mainly reflects growth in (relatively low-price) new-genre products’ share of ourdomestic alcoholic beverage sales, reviews of unprofitable sales accounts in ourSoft Drinks business, and a decline in demand for restaurant meals, on top ofwhich we were adversely impacted by unseasonable summer weather. Although
we have been implementing rigorous cost controls since the beginning of the year,
we booked increased depreciation expenses due to changes in accounting
standards as well as operating costs associated with the disposal of obsolete
inventories.
These and other one-time factors resulted in operating profit of ¥7.8 billion(down ¥1.2 billion, or 13%, versus the first nine months of 2008) and ordinary profitof ¥6.2 billion (down ¥0.2 billion, or 4%). The Group’s net profit for the nine months
ended September 30, 2009, was ¥2.3 billion (down ¥11.9 billion, or 84%, from thefirst nine months of 2008). The year-over-year decline in net profit was mainly due
to non-recurrence of gains on fixed asset sales posted last year.

Segment information*Year-over-year comparisons are presented below for reference only.
Alcoholic Beverages (Japan)
During the nine months ended September 30, 2009, the domestic labor market
continued to deteriorate while consumer spending remained sluggish. On top ofthis, beer consumption was heavily impacted by unseasonable summer weather inJapan. As a result, total demand for beer and beer-type beverages appears tohave contracted by 2% versus the first nine months of 2008. Continuing
fiscal-first-quarter trends, demand for conventional beer and happoshu (low-maltbeer) declined, and total sales of new-genre products were up a significant 21%
from a year earlier.
Our Japanese Alcoholic Beverages business saw a 10% drop in total sales
volume for beer and beer-type beverages relative to the first nine months of42008, due to a preference for low-price beverages. However, year-over-year
growth in demand for Yebisu beer exceeded year-on-year growth in demand forbeer on the back of limited-edition releases such as Silk Yebisu and Yebisu
Jukusei 2009, which used Yebisu’s identity as an expensive beer brand to target
consumers seeking a little taste of luxury.
In the new-genre product category, the renewal of our Mugi to Hop brands waswell received, with sales increasing by a striking 157% versus the first nine monthsof 2008. As a result, total new-genre unit sales were 28% higher year over year,
outpacing the new-genre market’s overall growth rate. However, the higher
proportion of sales accounted for by (relatively low-price) new-genre products,
meant that our total sales revenue for beer and beer-type beverages was down
6% versus the first nine months of 2008.
With respect to wines, we pushed ahead with our ongoing brand development
efforts, and we continued efforts to raise the profitability of our wines, as
exemplified by last year’s price hikes for our lower-priced products.
Shochu sales revenue was up 7% versus the first nine months of 2008, buoyedby penetration of the commercial-use market with singly distilled shochu brands
such as Waramugi and Karariimo, and strong sales of large-volume products.
Changes to accounting standards resulted in cost increases, but we continued
working to cut expenses.
Overall, our Japanese Alcoholic Beverages business booked sales of ¥204.4
billion (down ¥13.8 billion, or 6%, versus the first nine months of 2008) andoperating profit of ¥3.8 billion (down ¥0.3 billion, or 9%).
Alcoholic Beverages (International)
Our estimates indicate that total demand in the North American beer market hascontracted by some 2～3%, as the severe US economic downturn since autumn
2008 has impacted on consumer spending. US domestic beers (particularly
low-priced brands) have continued to sell relatively well, but sales ofpremium-priced imported beers have generally declined by around 10%.
Beer consumption in the household market has been holding firm amid theeconomic downturn, but consumption in the commercial market is declining.
Even in some markets outside of North America, beer consumption has dropped
in the wake of the economic downturn.
Despite these challenging headwinds, proactive sales campaigns targeting the5premium market segment enabled our Canadian subsidiary Sleeman
Breweries to achieve an 11% year-over-year increase in unit sales (excluding
sales of Sapporo brand products brewed by Sleeman). However, Sapporo
USA’s Sapporo brand unit sales decreased 13% year over year, reflecting thefact that these products are marketed in the US at a super-premium price pointwith a heavy reliance on the commercial market for sales.
The International Alcoholic Beverages business’s sales were up year over year
in local currency terms, but this was negated in yen terms by adverse exchange
rate movements. Consequently, we booked sales of ¥16.9 billion (down ¥2.6
billion, or 14%, versus the first nine months of 2008) and operating income of ¥0.5
billion (up ¥0.2 billion, or 64%).
Soft Drinks
Our estimates indicate that total domestic demand for soft drinks declined some
3% year over year for the first nine months of 2009, impacted by the prolonged
rainy season and cool temperatures on top of continued weakness in consumer
spending.
Against this backdrop, we continue to pursue our strategy of achieving sustained
profitability and building brands with a meaningful market presence. Throughthese efforts, we aim to realize our corporate vision: “For everyone’s smile, we will
provide unforgettable taste with infinite passion.”
We have been implementing marketing strategies focused mainly on
strengthening existing brands and proactively working to expand the number ofstores that stock them. Specific initiatives include television commercials and a
consumer campaign to promote Gerolsteiner naturally carbonated water among
consumers by expanding customer-contact points and engaging in more proactive
in-store marketing, which have cemented the product’s market presence. We also
ran a special sales campaign to commemorate our Ribbon Citron brand’s 100th
year on the market, and to promote our Gabunomi series of drinks, we ran a tie-up
promotion with bottle labeling featuring the popular animation series One Piece.
Nevertheless, the Soft Drinks business’s unit sales ended down 19% year overyear, partly due to the effects of reviewing unprofitable sales accounts.
We actively implemented cost-cutting initiatives aimed at further shoring up
stability of the segment’s earnings base. This included optimizing production
bases, placing greater focus on raw materials procurement costs, and6endeavoring to reduce disposal losses in relation to both raw materials andmanufactured products.
This spring also saw our food business launch the Sapporo Potekaru range of
non-oil-fried potato chips.
As a result, the Soft Drinks business’s sales revenue dropped ¥5.1 billion (18%)
versus the first nine months of 2008 to ¥23.5 billion. However, our ongoingprogram to boost earnings power via a select-and-focus approach (selectively
focusing resources on key areas) resulted in operating profit of ¥0.3 billion, an
increase of ¥0.2 billion (518%) versus the first nine months of 2008.
Restaurants
The restaurant industry has come upon difficult times. Full-service restaurants andpubs with high average spending-per-customer continue to perform poorly, andeven low-priced fast food chains, which had been performing relatively wellthrough the first half of 2009, saw comparable-store sales fall year over year.
Amid this environment, our Restaurants business worked to bring about arecovery in customer numbers by lowering price points on pre-booked groupevents and recommended menu items. The Restaurants business alsoendeavored to improve revenues by such means as commemorating our 110th
anniversary with a Beer Hall Day campaign to draw in customers and deploying
personnel Group-wide to attract corporate events to our restaurants. Cost-wise,
we have been reducing personnel costs, by freezing mid-career hiring andreducing overtime, for instance, and we have been curbing other expenses
through such measures as putting restaurant renovation plans on hold.
Seasonal restaurants, such as rooftop beer gardens featuring Genghis Khanbarbeques (a popular lamb and vegetable dish), which have seen a rapid increasein female customers, and beer gardens at the Sapporo Summer Festival
performed well. Despite this, comparable-store sales again declined year overyear, mainly for restaurants that are highly dependent on pre-booked groupevents.
During the three months ended September 30, 2009, we opened four new
restaurants, including the Kakoiya restaurant in Meieki 3-chome (Nagoya city) andthe Tomoru restaurant in Tsuruyacho (Yokohama city), bringing the total numberof newly opened restaurants since the beginning of the year to 10. We haveclosed two restaurants since the beginning of the year. So we had a total of 212

7

restaurant locations as of September 30.
All told, our Restaurants business’s total sales revenue declined some ¥1.1
billion (5%) versus the first nine months of 2008 to ¥21.2 billion, while it posted
an operating loss of ¥0.1 billion (versus operating profit of ¥0.4 billion for the firstnine months of 2008).
Real Estate
The rise in vacancy rates and decline in rents are easing in the Greater Tokyo
office leasing market, but a recovery has yet to materialize. Meanwhile, real estatevalues remain in decline.
Amid such an environment, our Real Estate business has been endeavoring tomaintain and boost rents and occupancy rates and further reduce costs at
Yebisu Garden Place and other existing properties, which are predominantly
located in Greater Tokyo. Despite these efforts, upscale rental apartment
occupancy rates have slipped in the face of deteriorating economic conditions anda downturn in market prices. In real estate development, we opened the MLB Cafe
Tokyo commercial property in Ebisu and began selling condominiums in the
Chikusa Garden Terrace complex in central Nagoya, both in September.
Concurrently, we continued to work on the Shinjuku office building. We alsoacquired the Yebisu Square office building as a new income-generating property
in August.
Last year’s (April 2008) sale of a 15% co-ownership stake in Yebisu Garden
Place meant that both revenues and profits were down year over year. The Real
Estate business booked a ¥5.4 billion operating profit (down ¥0.2 billion, or 5%,
versus the first nine months of 2008) on total revenues of ¥16.9 billion (down ¥0.6
billion, or 4%).

2. Review of Consolidated Financial Condition
Consolidated Financial Condition
Consolidated assets totaled ¥511.9 billion as of September 30, 2009, down ¥15.3
billion from the end of the previous fiscal year (December 31, 2008) due mainly toa decline in trade notes and accounts receivable and a decline in goodwill
attributable to our adoption of a policy requiring the amortization of foreign8subsidiaries’ goodwill.
Consolidated liabilities totaled ¥395.6 billion, down ¥14.7 billion from December
31, 2008, due mainly to a decrease in short-term bank loans, a decrease in liquor
taxes payable, and a decrease in deposits received stemming from the terminationof beer gift voucher sales in February 2009, which more than offset an increase inlong-term bank loans.
The balance of consolidated net assets declined ¥0.6 billion to ¥116.2 billion in
the nine months to September 30, 2009, despite positive net income for the period.
The decrease mainly reflects the amortization of foreign subsidiaries’ goodwill forprevious fiscal years and a decrease in retained earnings due to the payment of ayear-end dividend.

Consolidated Cash Flows
Consolidated cash flows for the nine months ended September 30, 2009 were as
follows.
Operating activities provided net cash of ¥14.3 billion. Inflows mainly comprised
positive income before taxes and minority interests of ¥4.9 billion, depreciation
and amortization of ¥16.8 billion, a ¥17.1 billion decrease in trade notes andaccounts receivable, and a ¥7.3 billion decrease in other current assets. Outflows
mainly comprised a ¥15.3 billion decrease in liquor taxes payable and a ¥17.3
billion decrease in deposits received. The decreases in other current assets anddeposits received were mainly due to the termination of sales of beer gift
vouchers.
Investing activities used net cash of ¥23.2 billion, reflecting outlays of ¥2.1 billion
for the purchase of investment securities, ¥16.7 billion for the acquisition ofproperty, plant and equipment, and ¥2.8 billion for purchases intangibles.
Financing activities used net cash of ¥7.9 billion. Proceeds of ¥39.0 billion fromlong-term bank loans were offset by a ¥12.7 billion net decrease in short-termbank loans and ¥15.5 billion in repayments of long-term bank loans.
As of a result of the above, the consolidated balance of cash and cash
equivalents was ¥21.2 billion as of September 30, 2009.

3. Consolidated Earnings Forecasts
Based on our results for the first nine months of 2009—including the in sales
revenue for our Soft Drinks business—we now forecast consolidated net sales of9¥400.0 billion for the full year ending December 31, 2009, which would represent a
decline of ¥14.5 billion (3.5%) versus 2008.
Our full-year profit forecasts are unchanged from those announced on July 31,
2009. On a consolidated basis we forecast operating income of ¥12.0 billion (down¥2.6 billion, or 18.3%, from 2008), ordinary income of ¥8.5 billion (down ¥2.0
billion, or 19.3%), and net income of ¥3.0 billion (down ¥4.6 billion, or 60.7%).

4. Other(1) Changes affecting the consolidation status of material subsidiaries (scope of
consolidation)
None(2) Use of simplified accounting methods and/or accounting methods specific toquarterly consolidated financial statements
1) Simplified accounting methods
Calculation of deferred tax assets and deferred tax liabilities
If there have been no material changes in either the business environment or
temporary differences since the end of the previous fiscal year, the Company
uses the same earnings forecasts and tax planning strategies that it used in theprevious fiscal year to assess the likelihood of deferred tax assets being used at alater date. If there have been material changes in the business environment
and/or in temporary differences since the end of the previous fiscal year, theCompany uses the earnings forecasts and tax planning strategies that it used in
the previous fiscal year but modifies them to allow for the likely impact of thesematerial changes.
2) Accounting methods specific to quarterly consolidated financial statements
Calculation of tax liabilities
The Company calculates tax liabilities by producing a reasonable estimate of
the effective tax rate after applying tax-effect accounting to income before taxes
and minority interests for the fiscal year under review, which encompasses thenine-month period under review, and then multiplying income (loss) before taxes
and minority interests by this estimated effective tax rate.

10Note that “deferred income taxes” are included under “income taxes”.
(3) Changes in accounting principles, procedures, and methods of presentation
used to prepare the quarterly financial statements
Changes in accord with amendments to accounting standards
1) Adoption of Accounting Standard for Quarterly Financial Reporting
Effective the fiscal year ending December 31, 2009, the Company adopted the
Accounting Standard for Quarterly Financial Reporting (ASBJ Statement No. 12)
and its accompanying Guidance on the Accounting Standard for Quarterly
Financial Reporting (ASBJ Guidance No. 14). We also prepare quarterly
consolidated financial statements in accord with Japan’s Regulations on the
Terminology, Format, and Preparation of Quarterly Consolidated Financial
Statements.
2) Adoption of Accounting Standard for Measurement of Inventories
Effective the fiscal year ending December 31, 2009, the Company adopted the
Accounting Standard for the Measurement of Inventories (ASBJ Statement No. 9)
and switched from the conventional cost method of inventory measurement to a
cost method that involves reducing book values to reflect diminished profit
potential.
Due to this change, compared with what they would have been under theprevious accounting method, gross profit for the nine months ended September
30, 2009 was ¥747 million lower; operating income, ¥747 million lower; andordinary income, ¥35 million lower, resulting in income before income taxes andminority interests that was ¥161 million lower than if based on the previous
method.
The impact on each business segment is stated in the relevant sections of thisdocument.
3) Adoption of Practical Solution on Unification of Accounting Policies Applied toForeign Subsidiaries for Consolidated Financial Statements
Effective the fiscal year ending December 31, 2009, the Company adopted thePractical Solution on Unification of Accounting Policies Applied to Foreign
Subsidiaries for Consolidated Financial Statements (ASBJ Practical Issues Task

11

Force Report No. 18).
The resulting amortization of goodwill recorded by foreign subsidiaries meantthat operating income, ordinary income and income before income taxes andminority interests for the nine months ended September 30, 2009 were each¥279 million lower than they would have been under the previous accounting
method. Retained earnings at the beginning of the fiscal year (January 1, 2009)were ¥1,477 million lower than what they would have been under the previous
accounting method, reflecting deductions to cover amortization of goodwill forprevious fiscal years.
The impact on each business segment is stated in the relevant sections of thisdocument.
Additional information
Changes in useful life of property, plant and equipment
The Company and its subsidiaries in Japan have reviewed the useful lives ofproperty, plant and equipment following the 2008 revision of Japan’s Corporation
Tax Act, and effective the fiscal year ending December 31, 2009, will use new
useful lives for depreciation of machinery assets.
Due to this change, compared to what they would have been under theprevious accounting method, gross profit for the nine months ended September
30, 2009 was ¥1,107 million lower and operating income, ordinary income andincome before income taxes and minority interests were each ¥1,113 million
lower than if based on the previous method.
The impact on each business segment is stated in the relevant sections of thisdocument.

12

5.Consolidated Financial Statement(1)Consolidated Balance Sheeets(millions of yen)

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

September 30, 2009

December 31, 2008

21,66145,45746
13,881
9,733
13,662(166)
104,275

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

362,597(183,892)
178,705
183,381(138,706)
44,67584,571
10,333
20,210(16,164)
4,046
322,331358,590(177,716)
180,873
180,772(134,476)
46,29678,893
9,145
20,045(16,047)
3,998
319,207

14,997
3,963
18,96017,018
3,948
20,96636,021
11,163
5,082
15,797(1,728)66,337
407,628
511,904

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

20,681
27,301
19,71020,267
1,242
2,409
29,51551,718172,847

23,82943,806
19,71035,585724
1,350
46,83541,361
213,20353,843
99,712
12,4847,541
44
32,246
16,974
222,847
395,695

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

53,88646,32018,070(1,104)
117,172

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

3,162(4,344)(1,182)
219
116,209511,904

3,046(5,536)(2,490)226
116,862
527,28613

(2)Consolidated Statements of Income(millions of yen)
Nine months ended
September 30, 2009
AmountI Net sales
II Cost of sales

283,109
196,117
86,992Gross profit
III Selling, general and administrative
expenses
1 Sales incentives and commissions
2 Advertising and promotion expenses
3 Salaries
4 Provision for accrued bonuses
5 Retirement benefit expenses
6 Other
Total selling, general and administrative expenses
Operating income
IV Non-operating income
1 Interest income
2 Dividend income
3 Equity in income of affiliates
4 Foreign exchange gain
5 Gain (loss) on gift voucher redemptions
6 Other
Total non-operating income
V Non-operating expenses
1 Interest expense
2 Other
Total non-operating expenses
Ordinary income
VI Extraordinary gains

13,66813,085
13,3481,376
2,329
35,33979,148
7,843
299
386
69
21
375
358
1,510
2,650
433
3,084
6,269

1 Gain on sales of property, plantand equipment

19

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

18
38

196
125
1,323
4,984

Income taxes
Minority loss
Net Income

2,672
(7)
2,319

1,001

14

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

15

4,984
16,855
767
10
(83)
(685)
2,650
982
(18)
196
17,137(2,364)
7,328(3,324)(15,376)(17,343)
3,149
14,864766(2,396)(1,754)
2,828
14,309(2,110)(16,713)372(2,868)(1,974)(23,295)(12,755)
39,000(15,511)(2,741)
(52)
7,940
55
(990)
22,217
21,227

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

(4) Notes on the going-concern assumption
Not applicable(5) Segment Information
1. Segment Information by Business(millions of yen)
Nine months ended September 30, 2009 (January 1, 2009 – September 30, 2009)
Alcoholic
Soft
Real
Corporate andRestaurants
Total
Beverages
DrinksEstateeliminations
Net sales(1) Operating revenues(2) Intra-group sales and transfers
Total
Operating income (loss)

221,423
4,070
225,494
4,456

23,536
203
23,739354

21,236
21,236(181)

16,913
1,690
18,604
5,445

283,109
5,964
289,074
10,075(5,964)(5,964)(2,232)

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

Changes in Accounting Policies
1) Measurement of Inventories
As stated in "(3) Changes in accounting principles, procedures, and methods of disclosure used to prepare thequarterly financial statements" in section "4. Other," effective the fiscal year ending December 31, 2009, the Company
adopted the Accounting Standard for the Measurement of Inventories (ASBJ Statement No. 9) and switched from theconventional cost method of measurement to a cost method that involves reducing book values to reflect diminishedprofit potential.
Due to this change, in the nine months ended September 30, 2009, compared with what they would have been under
the previous accounting method, operating income in the Alcoholic Beverages business was ¥577 million lower, and in
the Soft Drinks business, ¥169 million lower.
2) Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements
As stated in "(3) Changes in accounting principles, procedures, and methods of disclosure used to prepare thequarterly financial statements" in section "4. Other," effective the fiscal year ending December 31, 2009, the Company
adopted the Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated
Financial Statements (ASBJ Practical Issues Task Force Report No. 18).
Due to this change, operating income in the Alcoholic Beverages business was ¥279 million lower in the nine months
ended September 30, 2009, compared with what it would have been under the previous accounting method.

3) Change in Useful Life of Property, Plant and Equipment
As stated in "(3) Changes in accounting principles, procedures, and methods of disclosure used to prepare thequarterly financial statements" in section "4. Other," the Company and its subsidiaries in Japan have reviewed theuseful lives of property, plant and equipment following the 2008 revision of Japan’s Corporation Tax Act, and effective
the fiscal year ending December 31, 2009, will use new useful lives for depreciation of machinery assets.
Due to this change, in the nine months ended September 30, 2009, compared with what they would have been under
the previous accounting method, operating income in the Alcoholic Beverages business was ¥1,102 million lower; in
the Soft Drinks business, higher by approximately ¥0 million; in the Real Estate business, lower by approximately ¥0million. By the same comparison, operating loss in the Restaurants business was higher by ¥10 million.

2. Segment Information by Geographic Area (January 1, 2009 to September 30, 2009)
Sales in Japan constituted more than 90% of consolidated sales.
Accordingly, geographical segment information has not been disclosed.

16

Consolidated
283,109283,109
7,843

<Reference Data>
Consolidated Statements of Income

I Net sales
II Cost of sales
Gross profit
III Selling, general and administrative
expenses
Operating income (loss)
IV Non-operating income
1 Interest and dividend income
2 Equity in income of affiliates
3 Other
V Non-operating expenses
1 Interest expense
2 Loss on disposal of inventories
3 OtherOrdinary income
VI Extraordinary gains
1 Gain on sales of property, plantand equipment
2 Gain on sales of investment securities
3 Reversal of provision for doubtfulreceivables
4 other
VII Extraordinary losses
1 Loss on disposal of property,
plant and equipment
2 Loss on impairment of property,
plant and equipment
3 Provision for gift voucher redemptions
4 Loss on revision of retirement benefit
plan
5 Early retirement benefits
6 Business reorganization costs
7 Devaluation of marketablesecurities and investments
Income before income taxes and minority interests
Current income taxes
Deferred income taxes
Minority interests
Net income

Consolidated Statements of Cash Flows
Nine months ended
September 30, 2008
Amount306,572
213,034
93,538

737
34
619
2,846
823
253

(amounts in millions of yen)
Nine months ended September
30, 2008
AmountI Cash flows from operating activities
1 Income (loss) before income taxes and minority interests
2 Depreciation and amortization

24,400
16,29584,4713 Loss on impairment of property, plant and equipment

1,325

9,066

4 Amortization of goodwill
5 Decrease in employees’ retirement benefits
6 Decrease in allowance for doubtful receivables
7 Interest and dividend income
8 Interest expense
9 Gain on sales of property, plant and equipment
10 Loss on sales and disposal of property, plant and equipment
11 Decrease in notes and accounts receivable - trade
12 (Increase) decrease in inventories
13 Increase (decrease) in notes and accounts payable
14 Decrease in liquor taxes payable

1,391

3,923
6,534

25,811651(7,756)
(431)
(737)
2,846
(25,811)
3,068
18,022(392)(1,480)(15,575)

15 Increase in other current liabilities

9,636

4

16 Other

7,973

32

Sub total

32,03517 Interest and dividends received
18 Interest paid

829
(2,618)19 Income taxes paid

(5,039)111

25,960

3,068
1,325

Net cash provided by (used in) operating activities

746

II Cash flows from investing activities

1,178

1 Purchases of investment securities

247
1,441
85

8,093
24,400

4,128
6,014

10,14329
14,286

2 Proceeds from sales and redemption of investment securities
3 Purchases of property, plant and equipment
4 Proceeds from sales of property, plantand equipment
5 Purchases of intangibles
6 Increase in long-term loans receivable
7 Collection of long-term loans receivable
8 Other
Net cash provided by (used in) investing activities
III Cash flows from financing activities
1 Decrease in short-term bank loans
2 Proceeds from long-term debt
3 Repayment of long-term debt
4 Proceeds from issuance of bonds
5 Net increase (decrease) in commercial paper
6 Cash dividends paid
7 Other
Net cash provided by (used in) financing activities
IV Effect of exchange rate changes on cash and cash equivalents
V Net increase (decrease) in cash and cash equivalents
VI Cash and cash equivalents at beginning of period
VII Cash and cash equivalents at end of period

17

25,206(1,164)104(15,904)
49,000(2,995)(520)
198(2,706)26,011(29,037)
17,274(27,161)
3,843(4,000)(1,961)
96(40,945)(239)
10,032
5,881
15,914

Segment Information
1. Segment Information by Business(millions of yen)
Nine months ended September 30, 2008 (January 1, 2008 – September 30, 2008)
Corporate andReal
Alcoholic
Soft
Total
Restaurants
eliminations
EstateBeverages
DrinksConsolidated

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

237,947

28,63822,407

17,577

306,572

－

4,443

221

－

1,775

6,440

(6,440)－242,391

28,86022,407

19,353313,013(6,440)306,572

237,791

28,803

21,978

13,629302,202(4,696)

297,506

4,600

57

429

5,723

10,810(1,744)

9,066

Notes:(1) Segment classifications reflect the similarity of constituent businesses and take into account standard industry
classifications in Japan.
(2) Main products in each segment
Business Segment

Main Products

Alcoholic beverages

Beer, happoshu, wine, Western liquors, shochu, distribution, brewing
equipment, and agribusiness

Soft drinks

Soft drinks and other non-alcoholic beverages

Restaurants

Operation of beer halls and restaurants

Real estate

Real estate leasing, real estate sales, operation of commercial facilities,
utility supplies, and fitness clubs

18

306,572