Financial Results
for the three Months Ended March 31, 2013 — Consolidated(Based on Japanese GAAP)May 8, 2013

Company name

Sapporo Holdings Limited

Security code
Listings
URL

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

Representative
Contact

Tsutomu Kamijo, President, Representative Director and Group CEO
Tatsuya Komatsu, Director of the Corporate Communications Department

Telephone
Scheduled dates:+81-3-5423-7407

Filing of quarterly financial report

May 14, 2013

Commencement of dividend payments-

Supplementary information to the quarterly earnings results

AvailableYes(mainly targeted at institutional
investors and analysts)

Quarterly earnings results briefing held

1. Consolidated Financial Results for the three Months Ended March 31, 2013
(January 1 – March 31, 2013)(Amounts in million yen rounded down to the nearest million yen)

(1) Operating Results(Percentage figures represent year-over-year changes)
Net sales

Operating income

Ordinary income
million yen%

million yen%

million yen

Three months ended
March 31, 2013

100,498

3.2(4,755)-(5,191)-(3,068)-Three months ended
March 31, 2012

97,38835.1(5,581)-(5,864)-(4,126)-

Note: Accumulated other comprehensive income
Three months ended March 31, 2013

4,050 million yen

Three months ended March 31, 2012 (891) million yen

Net income per
share

Diluted net income
per share

Yen

Yen

Three months ended
March 31, 2013(7.84)-

Three months ended
March 31, 2012(10.54)-

1%

Net income
million yen%

(2) Financial Position

Total assets

Net assets

Shareholders’equity ratio

Net assets per
sharemillion yen

million yen%

yen

March 31, 2013

584,583

134,860

22.5

337.22

December 31, 2012

597,636

134,94622.1

336.60Note: Shareholders’ equity
March 31, 2013:
131,640 million yen
December 31, 2012: 131,795 million yen

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

Full year

yen

yen

yen

yen

yen

Year ended
December 31, 2012—

Year ending
December 31, 2013—

Year ending
December 31, 2013
(forecast)

0.00

—

7.00

7.00

0.00

ー

7.00

7.00

Note: No changes were made to dividend forecasts in thethree months ended March 31, 2013.

3. Forecast of Consolidated Earnin gs for the Year Ending December 31, 2013
(January 1 – December 31, 2013)(Percentage figures represent year-over-year changes)
Net
Net sales

Operating income

Ordinary income

Net income

incomeper share

Year ending
December 31,
2013

million yen%

million yen%

million yen%

million yen%

yen

512,000

4.0

15,300

6.1

14,000

2.3

5,500

2.0

14.05

Note: No Changes have been made to earnings forecastssince the latest release.

4. Other*For details, see "2. Other Information" on page 9.
(1) Changes in significant subsidiaries during the three months ended March 31, 2013: Yes*Changes affecting the status of significant subsidiaries (scope of consolidation)
Newly consolidated: -Newly excluded: Sapporo Beverage Co., Ltd.

2

(Note) Sapporo Beverage Co., Ltd. was absorbed by Pokka Sapporo Food & Beverage Ltd. via amerger conducted on January 1, 2013. Sapporo Beverage Co., Ltd. was dissolved and ceased to
be a subsidiary of the Company; while Pokka Sapporo Food & Beverage Ltd. became a subsidiary.
(2) Simplified accounting: Yes*Use of simplified accounting methods and/or accounting methods specific to quarterly consolidated
financial statements(3) Changes in accounting policy, changes in accounting estimates, and retrospective restatement
1) Changes in accordance with amendments to accounting standards etc.: None
2) Changes other than 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
Note: For details, see (2) Changes in accounting policy, changes in accounting estimates, andretrospective restatement, in section “2. Other Information” on page 9 in the accompanying
material.
(4) Number of shares issued and outstanding (common stock)1) Number of shares issued at end of period (treasury stock included):
March 31, 2013:
393,971,493 shares
December 31, 2012: 393,971,493 shares
2) Number of shares held in treasury at end of period:
March 31, 2013: 3,596,273 shares
December 31, 2012:
2,418,030 shares
3) Average number of outstanding shares during the period:
391,378,116 shares
391,568,096 shares

Three months ended March 31, 2013:
Three months ended March 31, 2012:*Quarterly review status
The quarterly financial results are not subject to quarterly reviews pursuant to the Financial
Instruments and Exchange Act. The quarterly review of thequarterly financial results herein had
not been completed as of the date of this document.
Appropriate Use of Earnings Forecasts and Other Important Information
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.

3

1. Analysis of Operating Results(1)Consolidated Financial Results for the Three Months ended March 31, 2013
In the first quarter of 2013 (January 1 – March 31, 2013), the domestic econom y showedsome positive signs of improvement , including a stock marke t rally fueled by growing
expectations for monetary easing. However, the consumption environment remained
uncertain.
Amid this environment, the S apporo Group was able to increase group sales thanks tostrong contributions from the International Business and the Real Estate business.
International Business results benefited from the April 2012 consolidation of Silver Springs
Citrus, Inc., the largest US maker of private -brand chilled drinks , and rising sales in Vietnam,
where we continued efforts to build our market presence. Real Estate business revenues
were higher thanks to larger contribution s from the Yebisu Garden Place complex since
March 2012, when we reacquired trust beneficiary rights amounting to a 15% equity interestin the property from the former joint holder in the complex.
Group operating income increased year over year thanks to profitability improvements
stemming from reductions in marketing expense at the Japanese Alcoholic Beverage
Business and increased sales from the International Bus iness’ Vietnam operations.
As a result of the above factors, the Sapporo Group posted consolidated sales of ¥ 100.4
billion (up ¥3.1 billion or 3% year over year), an operating loss of ¥4.7 billion (compared witha ¥5.5 billion loss a year earlier), an ordinary loss of ¥5.1 billion (compared with a ¥5.8 billion
loss a year earlier) , and extraordinary income on gains on sales of investment securities of¥3.4 billion. As a result, the first quarter of fiscal 2013 produced a net loss of ¥3.0 billion(compared with a ¥4.1 billion loss a year earlier) .
The first quarter of 2013 marked the startup of operations at Pokka Sapporo Food &Beverage Ltd. , a new Group company established to oversee the integration of Pokka
Corporation and Sapporo Beverage Co., Ltd.

Segment information is outlined below.

Effective the three months ended March 31, 2013, Sapporo Logistics Systems Co., Ltd.,
which was previously included in the Japanese Alcoholic Beverages segment, and Pokka
Logistics Co., Ltd., which was previously inclu ded in the Food & Soft Drinks segment, werereclassified to the Other segment. Additionally, effective the three months ended March 31,
2013, Pokka Food (Singapore) Pte. Ltd. which was previously included in the Food & Soft
Drinks segment was reclassified to the Restaurants segment , while on April 1, 2013, Pokka
Food (Singapore) Pte. Ltd. changed its name to Sapporo Lion (Singapore) Pte. Ltd.
In accordance with the above and t o enable year -over-year comparisons in this document,
figures for the year -earlier period have been adjusted to reflect the new segmentation.

4

Seasonal Factors
The Group’s operating results exhibit substantial seasonal variation because demand forthe products and services offered by the Japanese Alcoholic Beverages, International
Business, Food & Soft Drinks, and Restaurant businesses tends to be concentrated in thesummer months. Sales and profits consequently tend to be lower in the first quarter than in
the other three quarters.

Japanese Alcoholic Beverages
We estimate that total d omestic demand for beer and beer -type beverages in the firstquarter of 20 13 declined 2% year over year. Beer and happoshu sales volumes decreasedslightly, while volume sales of new -genre beer slowed but continued to show year-over-year
growth.
Under these market conditions, the Japanese Alcoholic Beverage business continued toinvest management resources in its core beer brands . At the same time, the businessworked to build the foundations for growth of its nonalcoholic beer beverages andready-to-drink (RTD)* cocktails and solidify its wine & western spirits business and its
Japanese shochu business , and efforts to diversify product offerings are raising brand value.
In the beer and beer-type beverages category, in February we launched Kaori Hanayagu
Yebisu, a limited-volume version of our core brand that received the endorsement of master
French chef Joel Robuchon and was well -received in the market. In the new -genre beer
segment, we launched renewal versions of Mugi to Hop and Mugi to Hop Black in Feb ruary
and both won strong support from consumers. As a result, sales of beer exceeded overall
demand, while total sales volume for beer and beer-type beverages was in line with demand
for the same period of the previous fiscal year.
In the nonalcoholic bee r category, we launched renewal versions of Sapporo Premium
Alcohol Free and Sapporo Premium Alcohol Free Black in February. A well -coordinated andsustained sales campaign, including TV commercials and in -store promotions, fueled salesof the renewal vers ions and helped us achieve a sharp year-over-year increase in sales
volume in the nonalcoholic beer category.
In the RTD category, we continued to introduce collaborative products that help extend
our brand name. Two such new offerings in the first quarte r were Bacardi Mango Mojito andSapporo Nectar Sour Cherry & Peach .
In the wine and liquor business , our core imported wine, Yellow Tail, launched Yellow Tail
Pink Moscato in March, which helped boost the brand’s appeal. Among domestic wines, ourmainstay domestic premium brand, Grande Polaire, continued to enjoy strong customer
support, helping to boost our overall wine sales above the previous year level. Meanwhile,
our western spirits business saw its sales volume increase thanks to the contribution fro m
Bacardi products.
The shochu business also posted strong year -over-year sales gains on continued brisk
sales of two blended shochus introduced in 2012 –Imo Shochu Kokuimo and Mugi Shochu
Koimugi.

5

Overall, the Japanese Alcoholic Beverage business posted sales of ¥50.2 billion, down
0.5 billion or 1% year over year in the first quarter of 2013. However, the business also
reduced costs, enabling it to cut its quarterly operating loss to ¥3.3 billion, from ¥4.8 billion ayear ago.
*RTD, or ready-to-drink, beverages are already -mixed, low -alcohol content cocktail -likebeverages that can be consumed as is immediately after opening.

International Business
In North America, where the timing of a full -fledged economic recovery remains unclear,
we estimate that total demand in the beer market was largely flat year over year in the firstquarter of 2013. The Asian beer market, however, continues to grow steadily, supported by
the region’s fast -growing economies.
In this environment, our International Business se gment continued marketing activities
targeting the premium beer market, where it has core strengths. Canadian subsidiary
SLEEMAN BREWERIES achieved a 4% year -over-year increase in unit sales (excluding
outsourced production of Sapporo brand products and sa les of domestic brands), extending
its growth streak to a seventh year. Sapporo USA achieved a 10% year -over-year increasein sales volumes of Sapporo brand beers. Meanwhile, we continued to strengthen our
position in United States’ soft dr inks market when we acquired a 51% equity stake in Silver
Springs Citrus, Inc. in January 2012.
The Vietnam business sharply expanded sales during its first Tet (New Year’s holiday)
sales campaign since our full -scale entry into the local market in April 2012 , as we continued
our efforts to build market recognition for the Sapporo brand. In South Korea, our local
partner, Maeil Dairies Co., Ltd. continued its efforts to expand sales of Sapporo brand beers
to the household and comme rcial markets in that country. In Oceania, we continued tobolster sales via our brewing and sales licensing agreement with Australia’s Coopers
Brewery, and in Singapore we worked with our local subsidiary to expand sales channels in
the local household market. Thanks to the efforts outlined abov e, we achieved 155% growth
in beer volume sales in the Asian and other overseas markets outside North America .
As a result of the above activities, the International Business posted first -quarter sales of¥9.9 billion, up ¥4.0 billion, or 70%, year over year, thanks to increased sales on
local-currency bases at continuing operations supplemented by sales from Silver Springs
Citrus, Inc., which was not a consolida ted subsidiary a year earlier, and the impact of yen
depreciation. The segment’s operating loss shrunk from ¥0.4 billion in the first quarter of2012 to just ¥ 0.1 billion in the first quarter of 2013.

Food & Soft Drinks
Domestic demand for soft drinks in the first quarter of 2013 was affected by cold winterweather in January and February, which f ueled demand for hot beverages in PET bottles , incontrast to other categories. More favorable weather in March bolstered sales of cold drinks
and, as a result, we estimate that overall demand for soft drinks in the first quarter was up

6about 1% year over year. Demand for lemon-based products (flavorings) held steady withthe previous -year level, while that for instant soup (including soup s in a cup) declined an
estimated 4%.
In this overall demand environment, the Sapporo Group’s Food & Soft Drinks busine ss
began integrated operations in January as Pokka Sapporo Food & Beverage Ltd. , andinvestments were concentrated on core brands to strengthen and nurture various brands.
The business prepared for the peak demand spring and summer seasons by introducing
new products across its core domestic beverage brands, including the Aromax canned
coffee series, the Gabunomi series, and the Ribbon series. In the lemon and natural foods
category, the business sought to further penetrate the consumer market by announcin g
renewal versions of Pokka’s Hiroshima Lemon, made 100% from pure domestic lemons, aswell as products in the Kireto Lemon series and the Oceanspray Cranberry lineup. The
business also continued to steadily expand sales of the Gerolsteiner naturally carbo natedwater from Germany, its core overseas brand. In the soup category, efforts were made tostrengthen product lineups in the Jikkuri Kotokoto series, the Kongari Pan series of instantcups of soup, and the Kantanbimi Korean soup series. The commercial-use products
category saw the release of a renewed version of the commercial pudding mix Gyōmu-yō
Torokeru Purin no Moto and the launch of a one-liter commercial-use version of Pokka
Lemon Warizai Syrup.
In the domestic restaurants business , the Café de C rié coffee shop chain continued topost favorable results in an increasingly competitive market segment by introducing newmenu items on a regular basis and through efforts to remodel existing outlets and open newones.
The overseas soft drinks business steadily lowered costs as it dealt with a decline inexports caused by stiffening price competition in Singapore and the economic crisis in
Europe. Pokka Ace (M) SDN. BHD., included in the Group ’s consolidated income statementfrom this fiscal quarter, contributed to earnings as it steadily expanded its business.
Meanwhile, the overseas restaurant business continued to feel the effects of amarketwide slowdown in Hong Kong caused by a decline in the numbers of customers frommainland China.
Reflecting the results of the various business segments outlined above, the Food & Soft
Drinks segment recorded first -quarter sales of ¥27. 6 billion, down ¥0.4 billion, or 2%, year
over year, with an operating loss o f ¥1.8 billion (compared with a ¥1.2 billion loss a year
earlier).

Restaurants
In the first quarter of 2013, Japan’s restaurant industry continued to face a difficult
operating environment characterized by stiff competition among restaurant operators
seeking to attract customers that are increasingly opting to eat and drink at home as they cut
back on spending.
In this environment, the Sapporo Group’s Restaurants business continued to satisfy its

7customers by developing high-value-added menus featuring regional specialties, thoroughly
monitoring the quality of its draft beer offerings , and otherwise heightening service levels.
The business also endeavored to increase customer traffic through various campaigns andstepped up marketing of group parties to corporations.
We continued efforts to reform the Restau rants business’ profit structure. These include dstrengthening the business’ purchasing stra tegy through use of a distribution system with asingle center for serving the Tokyo metropolitan area, reducing outlet operating costs byswitching to LED lighting , and closing unprofitable outlets.
New outlet openings in the first quarter included a YEBISU B AR outlet in Kyoto and twooutlets opened via a contract to operate restaurants in sports facilities. Meanwhile, nineoutlets were closed, bringing the number of outlets operating at period -end to 186.
In addition, from the first quarter of 2013, our 10 ou tlets in the Singapore restaurants
business will be operated under the supervision of Sapporo Lion Limited. Going forward, we
will make optimum use of the knowhow accumulated at Sapporo Lion Limited to spread theJapanese beer hall culture to the world.
Overall, the Sapporo Group’s Restaurants business recorded sales of ¥5.7 billion in thefirst quarter, up 2% year over year, and an operating loss of ¥0.3 billion, compared with a¥0.2 billion loss a year earlier.

Real Estate
In Japan’s real estate industry, vacancy rates in the Greater Tokyo office leasing market
are beginning to come down after having been pushed up by recent large increases in the
supply of new office buildings. Rents, however, are lingering at low levels.
Amid such market conditions, the Sapporo Group’s Real Estate business maintain ed highoccupancy rates at its properties in the Tokyo Metropolitan area, including the Yebisu
Garden Place c omplex. The complex contributed more to segment revenues and profits inthe first quarter of the year after we reacquired trust beneficiary rights amounting to a 15%
equity interest in the property from the former joint holder in March 2012.
With Yebisu Garden Place set to mark 20 years of operation in 2014, a number of projects
got under way in 2012 that are designed to raise the property’s value and enhance its
branding and overall convenience. In addition to installing additional emergency
power-generating systems (to be completed in spring 2014), we are strengthening thefacility’s service and commercial functions for the benefit of office workers and local
residents. In January, we completed work on the Chez via Yebisu shared-housing apartmentbuilding. Since opening its doors in February, the facility has enjoyed higher occupancy
rates.
The real estate development business began redevelopment in March of the Seiwa
Yebisu Building . Work on the building, expected to become a new base for the company in
the Ebisu district, is scheduled for completion in autumn 2014. We are also seriously
considering the redevelopment of the Sapporo Ginza Building located at the Ginza 4 -chomeintersection.

8

As a result of the above noted activities, the Real Estate busines s’ posted sales in the firstquarter of ¥5.3 billion, largely unchanged year over year, and an operating loss of ¥2.1
billion, compared with a ¥0.1 billion, or 6%, loss in the same period of the previous year.

(2) Review of Consolidated Financial Condition
Consolidated assets as of the end of the first quarter on March 31, 2013, totaled ¥584.5
billion, a ¥13.0 billion decrease from the end of the previous fiscal year (December 31, 2012).
The decline is attributable to a decrease in notes and accounts rece ivable, which more thanoffset increases in investment securities , etc.
Consolidated liabilities totaled ¥449.7 billion, a ¥12.9 billion decrease from December 31,
2012, primarily reflecting a d ecrease in short-term bank loans and liquor taxes payable,
which more than offset increases in long -term bank loans and corporate bonds.
Consolidated net assets as of March 31, 2013 were ¥134.8 billion, almost unchanged from
December 31, 2012 , as Increases in unrealized gains on securities and in the foreign
currency translation adjustment account were offset by the distribution of year -end dividends
for the previous fiscal year and the booking of a net loss for the first quarter(3) Consolidated Earnings Forecast
The consolidated earnings forecast for the full f iscal year ending December 31, 2013, isunchanged from the forecast announced by the Company on February 8, 2013.

2. Other information(1) Changes in significant subsidiaries during the three months ended March 31, 2013
Sapporo Beverage Co., Ltd. was abso rbed by Pokka Sapporo Food & Beverage Ltd. via amerger conducted on January 1, 2013. Sapporo Beverage Co., Ltd. was dissolved andceased to be a subsidiary of the Company; while Pokka Sapporo Food & Beverage Ltd.
became a subsidiary.

(2) Application of accounting methods specific to the preparation of 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 forthe fiscal year, which encompasses the three months ended March 31, 2013, and thenmultiplying income (loss) before taxes and minority interests by this estimated effective tax
rate.

9

3. Consolidated Financial Statements(1) Consolidated Balance Sheets(millions of yen)

AssetsI Current assets
1 Cash and cash equivalents
2 Notes and accounts receivable - trade
3 Merchandize and finished products
4 Raw materials and supplies
5 Other
6 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) Other(4) Allowance for doubtful receivables
Total investments and other assets
Total fixed assets
Total assets

10

December 31, 2012

March 31, 2013

AmountAmount9,755
83,581
20,372
12,072
12,763(287)
138,258

9,973
61,55023,353
12,325
13,507(180)
120,530

384,995(205,155)
179,839
210,465(170,803)
39,661
115,413
4,425
39,242(25,520)
13,722353,061

386,024(206,899)
179,125
212,792(172,849)
39,943
114,990
2,976
38,952(25,500)
13,451
350,488

37,541
7,444
44,985

37,113
9,080
46,19435,6709,783
17,263(1,386)
61,330459,377
597,636

42,971
9,528
16,329(1,458)67,370464,053584,583

Liabilities
I Current liabilities
1 Notes and accounts payable - trade
2 Short-term bank loans
3 Commercial Paper
4 Current portion of long-term debt
5 Liquor taxes payable
6 Income taxes payable
7 Accrued bonuses
8 Deposits received
9 Other
Total current liabilities
II Long-term liabilities
1 Bonds
2 Long-term bank loans
3 Employees' retirement benefits
4 Directors’ and audit & supervisory board members’
severance benefits
5 Dealers' deposits for guarantees
6 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 Accumulated other comprehensive income
1 Unrealized holding gain on securities
2 Deferred hedge gains (losses)
3 Foreign currency translation adjustments
Total accumulated other comprehensive income
III Minority Interests
Total net assets
Total liabilities and net assets

11

December 31, 2012

March 31, 2013

AmountAmount32,98555,27047,00010,00033,3973,830
1,860
12,35846,443
243,146

29,59539,89248,00010,00021,995
1,143
3,796
12,54242,426
209,392

32,000113,376
7,385

42,000122,052
7,094

26

20

32,91433,840219,543
462,689

33,13436,027240,330
449,72253,88646,30831,393(1,199)130,389

53,88645,91024,820(1,222)
123,394

5,122
9(3,725)
1,406
3,151
134,946597,636

10,02320(1,798)8,245
3,220
134,860
584,583(2) Consolidated Statements of Income

I Net sales
II Cost of sales
Gross profit
III Selling, general and administrative expenses
1 Sales incentives and commissions
2 Advertising and promotion expenses
3 Salaries
4 Provision for 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 Gain (loss) on gift voucher redemptions
5 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
1 Gain on sales of property, plant and equipment
2 Gain on sales of investment securities
Total extraordinary gains
VII Extraordinary losses
1 Loss on disposal of property, plant and equipment
2 Impairment loss
3 Loss on devaluation of investment securities
4 Loss on sale of investment securities
5 Business structure improvement expenses
Total extraordinary losses
Loss before income taxes and minority interests
Income taxes
Loss before minority interests
Minority interests in losses
Net loss
Loss before minority interests
Other comprehensive income*1
Unrealized holding gain on securities
Deferred hedge gains (losses)
Foreign currency translation adjustments
Share of other comprehensive income of associates accounted for using equity method
Total other comprehensive income
Comprehensive income*2(Breakdown)Comprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests

12

Three months ended
March 31, 2012
Amount97,38862,812
34,576(millions of yen)Three months ended
March 31, 2013
Amount100,498
65,78534,712

6,927
6,685
6,470
1,472
882
17,71840,157(5,581)

6,780
6,005
7,158
1,352
857
17,312
39,467(4,755)

69
35
296
131
327
860

62
66
339
268
735

860
14
269
1,143
(5,864)

734
63
374
1,172
(5,191)

3

10

0
4

3,477
3,487

135
34
251
420
(6,280)(2,104)(4,176)(49)(4,126)

129
222
6
0
176
536
(2,240)806(3,047)21(3,068)(4,176)(3,047)

2,250
11
1,029
(6)
3,284
(891)

4,900
19
2,178
7,098
4,050

(884)
(7)

3,770
280

(3) Notes on the Going-concern Assumption
Not applicable(4)Segment Information
Ⅰ Three months ended March 31, 2012 (January 1, 2012 – March 31, 2012)
1. Sales, income, and loss by reportable segment(millions of yen)
Reportable segments
Japanese
Alcoholic
Beverages
Net sales(1) Operating revenues

50,754

5,868

28,120447

53651,202

5,873

28,157(4,877)(412)(1,299)(2) Intra-group sales and transfers
Total
Segment income (loss)

International Food&
Restaurants
Soft Drinks

5,641

Real
Estate

Total

Other *1

5,368

95,753

1,634

602

1,092

4,283

5,641

5,971

96,846

5,918

(291)

2,008

(4,872)

(88)

-

Total

97,388
5,375
102,764(4,960)

Amounts
reported ontheAdjustments
statements
of income*2-

97,388(5,375)(5,375)(97,388)(620)(5,581)-

Notes:(1) "Other" comprises businesses, such as logystics businesses, that are not included in reportable segments.
(2) Segment income and losses are adjusted based on operating income reported on the quarterly consolidated statements of income for the corresponding period.

2. Reconciliation and main components of differences between income and loss of reportable segments and figures on the statement of income (information ondifferences)(millions of yen)Segment income (loss)

AmountTotal for reportable segments(4,872)

Total other losses
Unallocated corporate costs
Intra-segment sales
Operating income on the statement ofincome

(88)
(647)
27
(5,581)

3. Impairment loss on fixed assets or goodwill by reportable segment(Significant impairment losses on fixed assets)
Not applicable(Significant change in the amount of goodwill)In the International Business segment, the Company acquired the shares of Silver Springs Citrus, Inc. on January 31, 2012 and made it a consolidated
subsidiary. In conjunction with the acquisition, goodwill increased by 421 million yen during the three months ended March 31, 2013.
(Material Gain on negative goodwill)
Not applicable13

Ⅱ Three months ended March 31, 2013 (January 1, 2013 – March 31, 2013)
1. Sales, income, and loss by reportable segment(millions of yen)
Reportable segments
Japanese
Alcoholic
Beverages
Net sales(1) Operating revenues

Segment income (loss)

RealEstate

Total

Other *1

50,246

9,953

27,637

5,741

5,391

98,969

1,528

444

15

27

0

641

1,130

3,895

50,691

9,969

27,664

5,741

6,032

100,100

5,423(3,348)(190)(1,892)

(318)

2,135

(3,615)(135)(2) Intra-group sales and transfers
Total

International Food&
Restaurants
Soft Drinks

Total

100,498
5,025
105,523(3,751)

Amounts
reported ontheAdjustments
statements
of income*2-

100,498(5,025)(5,025)

100,498(1,003)(4,755)-

Notes:(1) "Other" comprises businesses, such as logystics businesses, that are not included in reportable segments.
(2) Segment income and losses are adjusted based on operating income reported on the quarterly consolidated statements of income for the corresponding period.

2. Reconciliation and main components of differences between income and loss of reportable segments and figures on the statement of income (information ondifferences)(millions of yen)Segment income (loss)

AmountTotal for reportable segments(3,615)

Total other losses
Unallocated corporate costs(135)

Intra-segment sales
Operating income on the statement ofincome(781)(222)(4,755)

3. Changes to reportable segments
The Sapporo Group will conduct a reorganization of its logistics business on May 1, 2013. The Company’s consolidated subsidiaries Sapporo Logistics Systems
Co., Ltd. and Pokka Logistics Co., Ltd. will be reorganized under Sapporo Group Logistics Co., Ltd., which is under the control of Sapporo Group Management
LTD., which will head this Group.
In line with this, effective the three months ended March 31, 2013, Sapporo Logistics Systems Co., Ltd., which was previously included in the Japanese Alcoholic
Beverages segment, and Pokka Logistics Co., Ltd., which was previously included in the Food & Soft Drinks segment, were reclassified to the Other segment.
Additionally, effective the three months ended March 31, 2013, Pokka Food (Singapore) Pte. Ltd. which was previously included in the Food & Soft Drinks
segment was reclassified to the Restaurants segment in conjunction with changes in organizational structure through share transfers between consolidated
subsidiaries.
The segment information for the three months ended March 31, 2012 has been recast to reflect the change of segmentation.
(Note) On April 1, 2013, Pokka Food (Singapore) Pte. Ltd. changed its name to Sapporo Lion (Singapore) Pte. Ltd.

4. Impairment loss on fixed assets or goodwill by reportable segment(Significant impairment losses on fixed assets)
For fixed assets, such as machinery, in the International Business segment, the book value has been reduced to the recoverable amount as a result of
restructuring of production facilities. Impairment loss of 222 million yen was recorded for the three months ended March 31, 2013.
(Significant changes in the amount of goodwill)
Not applicable(Material Gain on negative goodwill)
Not applicable(5)Notes on Significant Changes in the Amount of Shareholder's Equity
Not applicable(6)Subsequent Events
Not applicable14