Financial Results
Three Months Ended March 31, 2009—Consolidated
April 30, 2009
Company name

Sapporo Holdings Limited

Security code
Listings
URL

2501
Tokyo Stock Exchange (First Section); Sapporo Securities Exchange
http://www.sapporoholdings.co.jp/english/

Representative
Contact

Takao Murakami, President and Group CEO
Yoichi Kato, Director and General Manager of the Corporate Planning
Department+81 3-5423-7407

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

May 14, 2009―

1. Consolidated Financial Results for the Three Months Ended March 31, 2009
(January 1, 2009 – March 31, 2009)(1) Operating Results(amounts rounded down to the nearest million yen;percentage figures represent year-over-year changes)
Net sales
Three months ended
March 31, 2009
Three months ended
March 31, 2008

Operating income

Ordinary income

Net income

million yen%

million yen%

million yen%

million yen%

81,622―(3,370)―(3,839)―(3,284)―91,652

1.6(1,300)―(2,541)―(3,344)―

Net income
per share

Diluted
net income
per share

yen

yen

Three months ended
March 31, 2009
Three months ended
March 31, 2008

(8.38)―(8.53)―(2) Financial Position
Total assets

Net assets

Shareholders’equity ratio

Net assets per
sharemillion yen

million yen%

yen

March 31, 2009

501,185

108,595

21.6

276.51March 31, 2008

527,286

116,86222.1

297.60Note: Shareholders’ equity
March 31, 2009:
December 31, 2008:

108,367 million yen
116,636 million yen

12. Dividends
Dividend per share
Record date or
periodEnd Q1End Q2End Q3Year-end

Full year

yen

yen

yen

yen

yen

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

―

0.00

―

7.00

7.00

0.00

―

7.00

7.00

―

Note: No changes were made to dividend forecasts in the three months ended March 31, 2009.

3. Forecast of Consolidated Earnings for the Year Ending December 31, 2009
(January 1, 2009 – December 31, 2009)(amounts rounded down to the nearest million yen;percentage figures represent year-over-year changes)
Net
Operating income
Ordinary income
Net income
incomeper share

Net sales
million yen%

million yen%

million yen%

million yen%

Yen

Six months
ending June30, 2009

188,800―(2,000)―(3,200)―(3,700)――

Full year

408,300(1.5)

12,000(18.3)

8,500(19.3)

3,000(60.7)

7.65

Note: No changes were made to earnings forecasts in the three months ended March 31, 2009.

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 to quarterly
consolidated financial statements: Yes
Note: For details, see page 10 under subsection 4, “Other”, of the “Analysis of Operating
Results” section below.
(3) Changes in accounting principles, procedures, and methods of presentation used to prepare thequarterly financial statements
1) Changes in accord with amendments to accounting standards: Yes
2) Changes other than the above: Yes
Note: For details, see page 10 under subsection 4, “Other”, of the “Analysis of Operating
Results” section below.

2(4) Number of shares issued and outstanding (common stock)1) Number of shares issued at end of period (treasury stock included):
March 31, 2009:
393,971,493 shares
December 31, 2008:
393,971,493 shares
2) Number of shares held in treasury at end of period:
March 31, 2009:
2,065,298 shares
December 31, 2008:
2,045,360 shares
3) Average number of shares during the period:
Three months ended March 31, 2009: 391,915,082 shares
Three months ended March 31, 2008: 392,165,517 shares

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 forecasts
depending on various factors. For the Company’s earnings forecasts, please refer to page 9
under subsection 3, “Consolidated Outlook for the Fiscal Year Ending December 31, 2009”, of
the “Analysis of Operating Results” section below.
2. Effective from the fiscal year ending December 31, 2009, the Company has 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 prepare quarterly consolidated financial statements in accord with theRegulations on the Terminology, Format, and Preparation of Quarterly Consolidated Financial
Statements.

3

1. Analysis of Operating Resultsa) Consolidated results for the Three Months ended March 31, 2009
In the three months ended March 31, 2009, consolidated net sales fell to ¥81.6
billion, down ¥10 billion or 11% versus the year-earlier quarter (the three months
ended March 31, 2008). The decline was attributable to several factors, including
growth in new genre beers’ share of alcoholic beverage sales in Japan, reviewsof unprofitable sales accounts in the Soft Drinks business, and a falloff indomestic unit-sales of beer and beer-type beverages versus the year-earlier
quarter, when demand surged ahead of then-pending price increases. The
Group’s first-quarter operating loss widened to ¥3.3 billion (from ¥1.3 billion in the
year-earlier quarter) and its ordinary loss worsened to ¥3.8 billion (from ¥2.5
billion), but its net loss narrowed to ¥3.2 billion (from a ¥3.3 billion loss).
Segment Information
Impact of Seasonal Factors
The Group’s operating results are subject to substantial seasonal variability
because demand in the Alcoholic Beverages, Soft Drinks, and Restaurants
businesses tends to be concentrated disproportionately in the summer months.
Sales and income consequently tend to be lower in the first quarter than in theother three quarters.
Alcoholic Beverages
Alcoholic Beverages (Japan)
In Japan's beer and beer-type beverages market, total demand contracted an
estimated 4% year over year in the first quarter as consumers drasticallytightened their belts in response to the steep global economic downturn since
mid-2008. Meanwhile, market shares shifted among the conventional beer,
happoshu (low-malt beer), and new genre market segments. While beer andhapposhu sales were down year over year, new genre sales grew 30% year overyear. This shift in demand toward lower-price new genre products was the beermarket’s most prominent trend in the first quarter.
Amid such an environment, sales of beer and beer-type beverages were down
10% year over year in unit terms, partly reflecting that sales in the year-earlier
quarter were inflated by a demand surge ahead of price increases effective from
April 2008. Our core Sapporo Black Label brand’s unit sales fell 21% year overyear. The Yebisu brand, however, outperformed the overall beer and beer-type
beverages business, with its unit sales down only 8% year over year, largely byvirtue of limited edition Silk Yebisu’s popularity even amid the adverse market
environment. In the new genre category, unit sales grew 36% year over year,
outpacing the new genre market’s overall growth rate. New genre sales benefited
from the launch of a new product, Sapporo Reisei, in March and renewal of theexisting Draft One and Mugi to Hop brands. Overall, sales of beer and beer-type4

beverages declined 11% year over year as a result of retrenchment in demandfor conventional beer and happoshu and an inflated year-over-year comparisonbase due to the year-earlier demand surge.
In the wine market, total demand was roughly flat year over year for both
domestic and imported wines. In the domestic wine market segment, we focusedon high-value-added products, most notably the Mutenka line, but domestic wine
unit-sales declined year over year as a result of 2008 price increases on lowpriced wines. Imported wine sales were brisk, particularly sales of everyday
wines, but overall wine sales declined 8% year over year.
Shochu sales grew 9% year over year, buoyed by the penetration of thecommercial-use market with singly distilled shochu brands, such as Waramugi
and Karariimo, and strong sales of large-volume products.
Cost-wise, sales-mix shifts exerted upward pressure on cost of sales, but we
offset this incremental cost factor by cutting overhead expenses. However,expenses increased as a result of accounting changes. Advertising and sales
promotion expenses also increased.
Overall, the Japanese Alcoholic Beverages business incurred an operating lossof ¥3.3 billion (versus a ¥1.4 billion loss in the year-earlier quarter) on sales of¥58.9 billion (down ¥7 billion or 11% year over year).
Alcoholic Beverages (International)
In the North American beer market, total demand is estimated to have contracted
several percent as the US economy’s sharp slowdown since last autumn
dampened consumer spending. Although US domestic beers (particularly lowpriced brands) have been selling relatively well, sales of premium-priced
imported beers have generally declined by double-digit margins. Beer
consumption in the household market has been holding firm amid the economic
downturn, but consumption in the commercial market is declining. Even in somemarkets outside of North America, beer consumption has downshifted in thewake of the economic downturn.
Amid such an environment, we have been proactively conducting sales activities
targeted at the premium market segment. By virtue of these efforts, Canadiansubsidiary Sleeman Breweries’ unit sales (excluding sales of Sapporo brandproducts brewed by Sleeman) grew 10% year over year. However, Sapporo
USA’s Sapporo brand unit-sales decreased 13% year over year, reflecting that
Sapporo brand products are marketed in the US at a super-premium price point
and is heavily dependent on the commercial market for sales.
The International Alcoholic Beverages business incurred an operating loss of¥400 million (versus a ¥200 million loss in the year-earlier quarter) on sales of¥4.2 billion (down ¥600 million or 14% year over year). Although its quarterly
results improved sequentially in local-currency terms, this improvement was
negated in yen terms by adverse exchange rate movements.

5

Soft Drinks
Total domestic soft drink demand contracted an estimated 2% year over year assoft drink makers’ new product offerings failed to spur sales growth amid growing
consumer caution in response to the economic downturn since last year.
Amid such an environment, we continue to pursue a two-pronged strategy ofrealigning the Soft Drinks business’s profit structure to achieve sustained
profitability while also pursuing growth by building brands with a meaningfulmarket presence.
We have been implementing marketing strategies focused mainly on
strengthening existing brands. Specific initiatives include relaunching Gabunomi
in bottles featuring popular animated characters, renewing the Ribbon Citronbrand to commemorate its 100th year on the market, and strengthening existing
brands such as Kissui canned coffee, Gerolsteiner naturally carbonated water,and Ocean Spray Cranberry and Karada ni Oishii Ume functional fruit-juice
beverages.
Cost-wise, we proactively implemented optimization measures throughout thevalue chain by rebuilding the Soft Drinks business’s foundations through suchmeans as reviewing unprofitable sales accounts, efficiently utilizing sales
promotion budgets, and rationalizing vending machine costs.
The Soft Drinks business’s sales fell to ¥6.5 billion (down ¥1.3 billion or 17% year
over year) on a 19% year-over-year decline in sales volume. Despite the large
sales decline, its operating loss improved to ¥200 million (from ¥700 million in the
year-earlier quarter) by virtue of initiatives to boost profitability through a selectand-focus approach.
Restaurants
In the restaurant industry, low-priced fast food chains have continued to do well
but full-service restaurants and pubs with high average spending-per-customer
have been faring poorly as consumers have progressively cut back on dining out
in favor of eating at home.
Our Restaurant business’s sales at comparable restaurants have continued to
track below their year-earlier level. Sales have fallen particularly sharply at
Japanese and new Western formats that have a high average spending-percustomer and are highly dependent on pre-booked group events.
Amid such an environment, we endeavored to cut overhead expenses (e.g.,
advertising) and reduce personnel expenses by revising business hours andfreezing all hiring except recruitment of new graduates.
In terms of expansion, we are focusing mainly on opening smaller new-format
restaurants with relatively low average spending-per-customer. We opened five
new restaurants in the first quarter, including Café & Bar Cura Echika Fit Ueno,
located inside the Tokyo Metro Ueno Station, in February, and Miyazaki Jidori
Osuzuyama Ohsaki New City in March. We did not close any restaurant locationsin the first quarter. We ended the quarter with 209 restaurant locations.

6

The Restaurants business incurred an operating loss of the ¥400 million (versus
a ¥100 million loss in the year-earlier quarter) on sales of ¥6.2 billion (down ¥300
million or 6% from the year-earlier quarter).
Real Estate
The office leasing market has grown increasingly adverse, with vacancy rates
rising and rents in a distinct downturn. Meanwhile, real estate values continue todecline amid the credit crunch that has ensued from the subprime mortgage
crisis.
Amid such an environment, our Real Estate business has been endeavoring tomaintain or boost rents and occupancy rates and cut costs further at Yebisu
Garden Place and other existing properties, which are predominantly located in
Greater Tokyo. Despite these efforts, upscale rental apartment occupancy rates
have stagnated in response to the downturn in market prices. However, we haveproperties under development in Nagoya and the Ebisu and Shinjuku districts ofTokyo. In February, we acquired a new income property in Sapporo.
The Real Estate business earned operating income of ¥1.7 billion (down ¥100
million or 8% year over year) on revenues of ¥5.5 billion (down ¥500 million or
9% year over year). The year-over-year decrease in its revenues and income isattributable to last April’s sale of a 15% co-ownership stake in Yebisu Garden
Place.

2. Review of Consolidated Financial Condition
Consolidated Financial Condition
Consolidated assets totaled ￥501.1 billion at the end of the first quarter (March
31, 2009), down ￥26.1 billion versus the end of the previous fiscal year
(December 31, 2008). This mainly reflects a decline in cash and cash equivalents,a decline in trade notes and accounts receivable, and a decline in goodwill due toour adoption of a policy of amortizing foreign subsidiaries' goodwill.
Consolidated liabilities totaled ￥392.5 billion at March 31, 2009, down ￥17.8
billion versus December 31, 2008. This mainly reflects the decrease in notes andaccounts payable, decrease in liquor taxes payable, and decrease in deposits
received due to the termination of sales of beer gift vouchers in February 2009.
The balance of consolidated net assets was ￥108.5 billion at March 31, 2009, a
decrease of ￥8.2 billion versus December 31, 2008. This mainly reflects theamortization of the previous fiscal year's portion of foreign subsidiaries' goodwill,
payment of a year-end dividend, a decrease in retained earnings due to our yearto-date quarterly net loss, and a decrease in unrealized holding gains on
securities due to a decrease in unrealized gains on investment securities.

7

Consolidated Cash FlowsThe following presents consolidated cash flow figures for the three months ended
March 31, 2009.
Net cash used in operating activities was ￥1.0 billion.
This was mainly due to reductive factors such as the quarterly net loss before
income taxes and minority interests of ￥4.3 billion and reduction in liquor taxes
payable of ￥16.6 billion, which were partly offset by positive factors such as the￥17.0 billion decrease in accounts receivable.
Net cash used in investing activities was ￥4.8 billion.
This mainly reflects outlays of ￥2.3 billion for the acquisition of property, plantand equipment and ￥1.6 billion for the purchase of investment securities.
Net cash provided by financing activities was ￥1.9 billion.
This mainly reflects ￥9.0 billion in proceeds from long-term debt, which werepartly offset by ￥8.8 billion in repayments of long-term debt.
As a result of the above, the consolidated balance of cash and cash equivalents
was ￥18.3 billion at the end of the first quarter (March 31, 2009).
3. Consolidated Outlook for the Fiscal Year Ending December 31, 2009
No changes have been made to the consolidated earnings forecast for the year
ending December 31, 2009, that was released on February 13, 2009.

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 the business environment nor in
temporary differences since the end of the previous fiscal year, the Company
uses the earnings forecasts and tax planning that it used in the previous fiscal
year to determine the possibility of deferred tax assets being used. If there havebeen material changes in the business environment and/or in temporary
differences since the end of the previous fiscal year, the Company uses the8earnings forecasts and tax planning that it used in the previous fiscal year but
modifies them to reflect such 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 theeffective tax rate after applying tax-effect accounting to net income before taxes
and minority interests for the fiscal year under review, which encompasses the
fiscal first quarter under review, and then multiplying net income before taxes andminority interests by this estimated effective tax rate.
(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) Use of accounting standards for quarterly financial statements
Effective from 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 prepare quarterly consolidated
financial statements in accord with the Regulations on the Terminology, Format,
and Preparation of Quarterly Consolidated Financial Statements.
2) Use of Accounting Standard for Measurement of Inventories
Effective from 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 measurement to a cost
method that involves reducing book values to reflect reduced profitability. In linewith this change, loss on disposal of inventories, which had been recorded under
non-operating expenses until the previous fiscal year (ended December 31,2008), is now included in cost of sales.
Due to this change, compared with what they would have been under theprevious accounting method, gross profit was ￥260 million lower; operating loss,￥248 million higher; ordinary loss, ￥23 million higher; and loss before income
taxes and minority interests, ￥149 million higher in the three months ended
March 31, 2009.
The impact on each business segment is stated in the relevant sections of thisdocument.
3) Practical Solution on Unification of Accounting Policies Applied to Foreign
Subsidiaries for Consolidated Financial Statements
Effective this fiscal year, 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.

918). Accordingly, the Company amortized goodwill recorded by foreignsubsidiaries. Due to this change, operating loss, ordinary loss, and loss before
income taxes and minority interests were each ￥86 million higher in the threemonths ended March 31, 2009, compared with what they would have been under
the previous accounting method. Likewise, retained earnings were ￥1,477
million lower at the beginning of the fiscal year (January 1, 2009) than what theywould have been under the previous method.
The impact on each business segment is stated in the relevant sections of thisdocument.
Additional Information
Change in useful life of property, plant and equipment
Following revisions to the Corporate Tax Act in 2008, effective the fiscal year
ended December 31, 2009, the Company and its subsidiaries in Japan reviewed
the useful lives of property, plant and equipment and changed useful lives ofmachinery. Due to this change, compared with what they would have been under
the previous accounting method, gross profit was ￥284 million lower andoperating loss, ordinary loss, and loss before income taxes and minority interests
were each ￥286 million higher in the three months ended March 31, 2009.
The impact on each business segment is stated in the relevant sections of thisdocument.

10

5.Consolidated Financial Statement(1)Consolidated Balance Sheets(in millions of yen)March 31, 2009
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

December 31, 2008

18,82145,34644
14,8808,731
17,923(127)
105,620

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

360,015(179,660)
180,354
181,897(135,036)
46,861
79,0388,275
20,023(15,957)
4,065
318,595

358,590(177,716)
180,873
180,772(134,476)
46,29678,893
9,145
20,045(16,047)
3,998
319,207

15,2994,083
19,382

17,018
3,948
20,966

25,696
10,578
6,422
16,715(1,827)57,586395,564
501,185

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

21,40845,397
19,71019,002597
3,058
40,60842,762
192,546

23,82943,806
19,71035,585724
1,350
46,83541,361
213,20353,84374,842
12,1577,483
46
32,614
19,055200,042
392,589

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

53,88646,323
12,466(1,063)
111,61353,88646,325
19,972(1,058)
119,126

1,733(4,980)(3,246)
228
108,595
501,185

3,046(5,536)(2,490)226
116,862
527,28611

(2)Consolidated Statements of Income(in millions of yen)
Fiscal year ended
March 31, 2009
AmountI Net sales
II Cost of sales

81,62258,14823,473Gross 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 loss
IV Non-operating income
1 Interest income
2 Dividend income
3 Foreign exchange gain
4 Other
Total non-operating income
V Non-operating expenses
1 Interest expense
2 Equity in loss of affiliates
3 Other
Total non-operating expenses
Ordinary loss
VI Extraordinary gains

4,090
6,023
3,750
1,055
765
11,157
26,843(3,370)
95
121
47
229
493
860
44
58
963
(3,839)1 Gain on sales of property, plantand equipment

22 Reversal of provision for doubtfulreceivables

19

Total extraordinary gains
VII Extraordinary losses

21

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

137
125
527

Income before income taxes and minority interests
Income taxes
Minority loss
Net loss(4,345)(1,063)2(3,284)264

12

(3)Consolidated Statements of Cash Flows(in millions of yen)Three months ended
March 31, 2009
AmountI Cash flows from operating activities
1 Loss 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 devaluation of investment securities
10 (Increase) decrease in notes and accounts receivable - trade
11 (Increase) decrease in inventories
12 (Increase) decrease in other current assets
13 Increase (decrease) in notes and accounts payable
14 Increase (decrease) in liquor taxes payable
15 Increase (decrease) in deposits received
16 Other
Sub total
17 Interest and dividends received
18 Interest paid
19 Income taxes paid
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 debt
3 Repayment of long-term debt
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

13(4,345)
5,602
248
(47)
(22)
(216)
860
262
137
17,059(2,067)
6,847(2,509)(16,602)(6,226)
528
(491)
460
(582)
(428)
(1,042)(1,610)(2,398)364(1,010)(238)(4,893)4,124
9,000(8,803)(2,326)
(7)
1,986
93
(3,854)
22,21718,362

(4)Segment Information
1. Segment Information by Business(millions of yen)Three months ended March 31, 2009
Alcoholic
Beverages

Soft
DrinksRestaurants(January 1, 2009 – March 31, 2009)
Real
EstateTotal

Corporate andeliminations

Consolidated

Net sales(1) Operating revenues(2) Intra-group sales and63,264
1,097

6,554
21

6,249

5,553
550

81,622
1,669−(1,669)81,622−64,361(3,792)

6,576
(222)

6,249
(421)

6,103
1,776

83,291(2,660)(1,669)(709)

81,622(3,370)−transfers
Total
Operating income (loss)

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 the quarterly
financial statements" in section "4. Other," effective this 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 measurement to a cost method that involves reducing book values to reflect reduced profitability.
Due to this change, compared with what they would have been under the previous accounting method, operating loss in
the Alcoholic Beverages business was ￥161 million higher; and in the Soft Drinks business, ￥86 million higher in the threemonths ended March 31, 2009.
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 the quarterly
financial statements" in section "4. Other," effective this 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 Force Report No. 18). Due to this change, operating loss in the Alcoholic
Beverages business was ￥86 million higher in the three months ended March 31, 2009, compared with what it would havebeen 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 the quarterly
financial statements" in section "4. Other," following revisions to the Corporate Tax Act in 2008, effective the fiscal year
ending December 31, 2009, the Company and its subsidiaries in Japan reviewed useful lives of property, plant andequipment and changed useful lives of machinery.
Due to this change, compared with what they would have been under the previous accounting method, operating loss in
the Alcoholic Beverages business was ￥283 million higher; in the Soft Drinks business, higher by less than one million
yen; and in the Restaurants business ￥2 million higher. By the same comparison, operating income in the Real Estatebusiness was lower by less than one million yen.

2. Segment Information by Geographic Area (January 1, 2009 to March 31, 2009)
Sales and assets in Japan constituted more than 90% of the consolidated sales.
Accordingly, geographical segment information has not been disclosed.
3. Overseas Sales (January 1, 2009 to March 31, 2009)
Overseas sales constituted less than 10% of consolidated sales.
Accordingly, overseas sales have not been disclosed.

14

＜Reference Data>
１.Consolidated Statements of Income(in millions of yen)

2.Consolidated Statements of Cash Flows
Three months
ended March
31, 2008

Three months ended
March 31, 2008

I Net sales
II Cost of sales
Gross profit

Amount
91,65265,922
25,729AmountI Cash flows from operating activities
1 Income (loss) before income taxes and minority interests
2 Depreciation and amortization(5,090)5,629

III Selling, general and administrative expenses

27,0293 Depreciation expenses resulting from revision of residual value−

Operating income (loss)
IV Non-operating income
1 Interest and dividend income
2 Other
V Non-operating expenses
1 Interest expense
2 Loss on disposal of inventories
3 Equity in loss of affiliates
4 OtherOrdinary income (loss)
VI Extraordinary gains
1 Gain on sales of property, plantand equipment(1,300)4 Loss on impairment of property, plant and equipment
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 Decrease in notes and accounts payable
14 Decrease in liquor taxes payable

−
(736)
(73)
(138)
1,066
(55)
478
14,152715(4,347)(14,645)

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 Depreciation expenses resulting fromrevision of residual value
4 Provision for gift voucher redemptions
5 Other
Income (loss) before income taxes and minority
interests
Current income taxes
Income tax adjustment
Minority loss
Net income (loss)

138
318
1,066
148
21
461

457

1,697
(2,541)55

15 Other

1,936

1

Sub total(1,105)78−

16 Interest and dividends received
134

478

17 Interest paid
18 Income taxes paid
Net cash provided by (used in) operating activities−

II Cash flows from investing activities−

1 Purchases of investment securities

746
1,458

23
(1,761)

2,683

2 Proceeds from sales of investment securities
3 Purchases of property, plant and equipment(5,090)4 Proceeds from sales of property, plant and equipment(1,737)
7(3,344)

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 Increase (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 Redemption of bonds
6 Net increase (decrease) in commercial paper
7 Cash dividends paid
8 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 year
VII Cash and cash equivalents of additional consolidated
subsidiaries
VIII Cash and cash equivalents at end of year

15

383
(782)
(2,781)(4,285)(588)
101(6,269)60(1,726)
(14)
100
230
(8,105)
15,97910,000(9,064)3,843−(4,000)(1,660)228
15,326
(248)
2,687
5,881
−
8,569

(3)Segment Information(millions of yen)Three months ended March 31, 2008
Alcoholic
Beverages

Soft
Drinks(January 1, 2008 – March 31, 2008)

Restaurants

Real
EstateTotal

Corporate andeliminations

Consolidated

Net sales(1) Operating revenues(2) Intra-group sales and71,011
1,170

7,941
31

6,628

6,072
616

91,652
1,817−(1,817)91,652−

72,181(1,748)

7,972
(727)

6,628
(143)

6,688
1,928

93,470(690)(1,817)(609)

91,652(1,300)−transfers
Total
Operating income (loss)

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
Alcoholic Beverages

Main Products
Beer, happoshu and other beverages, wine, whiskey, shochu and other products,
distribution, brewing equipment

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

16