2012
Sapporo Group Business Results Presentation
for the Three Months ended March 31, 2012

May 9, 2012

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

Copyright, 2012SAPPORO HOLDINGS LTD. All rights reserved.

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Contents

1. Progress of Implementation of 2012 Basic Strategies
2. Overview of First-Quarter 2012 Results
3. Supplementary Information to First-Quarter 2012 Results
Reference: Management Targets 2012-2013

Copyright, 2012 SAPPORO HOLDINGS LTD. All rights reserved.

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1. Progress of Implementation of2012 Basic Strategies

Copyright, 2012 SAPPORO HOLDINGS LTD. All rights reserved.

3/25

Progress of Implementation of 2012 Basic Strategies
We promoted three basic strategies for achieving dramatic growth

I. Challenge toward growth in all businesses
We will leverage the strengths of ourvarious business’s brands andmanagement resources to accept
new challenges to beatthe competition

II. Carrying out growth measures
III. Creating new opportunities for growth
To realize the fruits of the various
We will continue to aggressively pursue
initiatives undertaken in recent years,
M&As and alliances
we will continue to make forward
both in Japan and overseas
investments and take steps to strengthen
the business foundation

Taking on challenges
for leading
growth intoallgrowth in all
I.I. Accepting
challenges
businesses
businesses¾ See the segment pages under Supplementary
Information to first-quarter 2012 Results
III. Create new growth opportunities¾ On January 31, we acquired a 15% stake in M’s BeverageCo., Ltd., a wholly owned alcoholic beverage distribution
subsidiary of Maeil Dairies Co., Ltd. for approx. ¥51 mn toboost Sapporo’s brand value and strengthen our productdistribution network in South Korea. *A non-equity method
affiliateII.
implement
growthmeasuresII. Steadfastly
Firm implementationof growthmeasures¾ On March 1, we acquired 15% of trust beneficiary rights for
Yebisu Garden Place from the joint holder in the complex for¥40.5 bn to initiate steps for boosting its value. *Started taking in
profit/loss items from March¾ On March 30, we established POKKA SAPPORO FOOD &BEVERAGE LTD. as an entity to drive forward integration andbegan preparing business strategies for starting the business inJanuary 2013.

¾ On January 31, we acquired 51% of outstanding shares in ¾ From April, started to air TV commercials in Vietnam, where weSilver Springs Citrus, the largest U.S. maker of private-brandchilled drinks, from the Toyota Tsusho Group for approx. ¥1.8 made a full-scale entry this year, marking the launch of full bn to make a full-scale entry into the U.S. beverage business. fledged marketing activities*Started consolidating the profit/loss items from April

Copyright, 2012 SAPPORO HOLDINGS LTD. All rights reserved.

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2. Overview of First-Quarter 2012 Results

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Overview of First-Quarter 2012 Results -Special FactorsBreakdown of special factors does not allow meaningful comparisons between net sales and operating
income for the first quarter of 2012 and the same period a year earlier
See the Supplementary Information to our Earnings Report for factors behind changes resulting fromother business activities
Net Sales<Food & Soft Drinks: POKKA Group>¾ We started adding the profit/income items from
April 2011 and this meant net increase for the
Jan-Mar period ⇒+¥22.3 bn¾ Change to accounting policy: changed fromdelivery basis to arrival basis for recording sales⇒-¥0.1 bn<Real Estate>¾ Started reflecting the profit/loss items from Marchfor the acquisition of 15% of trust beneficiaryrights for Yebisu Garden Place from the joint
holder in the complex ⇒+¥0.2 bn<Total>¾ +¥22.5 bn

Copyright, 2012 SAPPORO HOLDINGS LTD. All rights reserved.

Operating Income<Food & Soft Drinks: Sapporo Beverage>¾ In April 2011 we started goodwill amortization for the acquisitionof shares from Crescent Partners after it converted CB holdings,
and goodwill amortization was a net increase in the Jan-Mar
period of 2012 ⇒-¥0.2 bn<Food & Soft Drinks: POKKA Group>¾ Started reflecting the profit/loss items from April 2011, resulting
in an operating loss for the Jan-Mar period of 2012 ⇒-¥0.5 bn¾ Started reflecting the profit/loss items from April 2011 andgoodwill amortization resulting from the integration of POKKA
Group was a net increase in the Jan-Mar period of 2012
¾ ⇒-¥0.4 bn<Real Estate>¾ Acquired 15% of trust beneficiary rights for Yebisu Garden Placefrom the joint holder in the complex and reflecting the profit/loss
items from March ⇒+¥0.1 bn<Total>¾ -¥1.0 bn

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Overview of First-Quarter 2012 Results -ConsolidatedSales increased significantly due to recovery of Japanese Alcoholic Beverages and Restaurants,
which were directly affected by the earthquake in 2011 as well as the special factors discussed in theprevious slide.
Despite profit increase at Restaurants on increased sales, overall operating income decreased by ¥2.2
bn compared with the same period a year earlier due to increased investment by International
Business for development of the Vietnam market and decrease in Real Estate’s sales of commercial
properties in addition to the special factors described in the previous slide.
Net income improved ¥2.1 billion, despite the fact that extraordinary losses increased by ¥3.7 billion(including a ¥1.0 bn loss due to asset retirement obligations and a ¥1.9 bn loss stemming from the(billions of yen)disaster, etc.)*The 2011 first quarter consolidated net sales figure lacks continuity with thefigure announced last year due to retrospective adjustment of past years fromthe first quarter 2012.

2011 1Q

2012 1Q

YoY changes
Amount%Consolidated net
sales

72.0

97.3

25.3

35.1%

Consolidated
operating income

(3.3)

(5.5)

(2.2)

―

Consolidated
operating income
before goodwill
amortization

(3.0)

(4.6)

(1.6)

―

Consolidated
ordinary income

(4.0)

(5.8)

(1.7)

―

Consolidated net
income

(6.2)

(4.1)

2.1

―

Copyright, 2012 SAPPORO HOLDINGS LTD. All rights reserved.

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Overview of First-Quarter 2012 Results -by SegmentOperating Income
YoY changes(billions of yen)

2011 1Q

2012 1Q

AmountJapanese Alcoholic
Beverages

(4.0)

(4.8)

(0.8)

―

International

(0.1)
0.0
(0.2)

(0.4)
(0.0)
(0.4)

(0.2)
(0.1)
(0.2)

―
―
―

0.0
0.0
−
0.1

(1.2)
(0.3)
(0.9)
(0.6)

(1.3)
(0.4)
(0.9)
(0.7)

―
―
―
―

Restaurants

(0.7)

(0.2)

0.4

―

Real Estate

2.2

2.0

(0.2)

-10.5%

Other

(0.1)

(0.0)

0.0

―

General corporate

(0.6)

(0.6)

(0.0)

―

Consolidated operating income

(3.3)

(5.5)

(2.2)

―

Consolidated operating income
before GW amortization

(3.0)

(4.6)

(1.6)

―

North America, other
VietnamFood & Soft Drinks
Sapporo Beverage
POKKA Group

Before GW amortization

Copyright, 2012 SAPPORO HOLDINGS LTD. All rights reserved.

%

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Overview of First-Quarter 2012 Results -Strategic InvestmentsImplementation Status of Strategic Investments(excl. ordinary capex)<Acquisition of stake in Silver Springs Citrus>¾ On January 31, acquired 51% of outstanding shares in Silver
Springs Citrus, the largest U.S. maker of private-brandchilled drinks, from the Toyota Tsusho Group to make it aconsolidated subsidiary¾ Started consolidating the balance sheet from the end of
March and profit/loss items from April¾ The cost of the share acquisition is approx. ¥1.8bn¾ Net financial liabilities were approx. ¥0.7bn
Total investment is approx. ¥2.5bn<Acquisition of shares in M’s Beverage>¾ On January 31, acquired a 15% stake in M’s Beverage Co.,
Ltd., a wholly owned alcoholic beverage distribution
subsidiary of Maeil Dairies Co., Ltd.(non-equity method
affiliate)¾ The cost of the stake acquisition is approx. ¥50 mn
Total investment is approx. ¥50 mn<Acquisition of 15% of trust beneficiary rights in Yebisu
Garden Place>¾ Acquired from the joint holder on March 1¾ The investment for the acquisition is ¥40.5 bn, the purchaseprice¾ At the end of March recorded the ¥40.5 bn on the balance
sheet (fixed asset account)¾ Started to reflect profit/loss items from March
Total investment is approx. ¥40.5 bn<Implementation status of strategic investment from Jan to
Mar 2012>¾ Approx. ¥43.1bn
Copyright, 2012 SAPPORO HOLDINGS LTD. All rights reserved.

Credit Ratings<Announcement of the acquisition of 15% of trust beneficiaryrights for Yebisu Garden Place>¾ On December 26, 2011, issued a press release that we acquired
the rights from the joint holder for ¥40.5 bn<Credit rating by JCR>
¾ On February 16, 2012, JCR issued a press release saying that it
kept the A- (stable） rating on Sapporo Holdings unchanged.
<Credit rating by R&I>
¾ On March 15, 2012, R&I issued a press release saying that it kept
the BBB+ (stable) rating unchanged.
<Achievement of low-cost finance>¾ In March issued five-year straight bonds worth ¥10 bn at a low
cost
Direction of Long-term Strategic Investments¾ We will continue to actively carry out strategic investments
for growth¾ We expect to make ¥150 bn to ¥200 bn worth of strategic
investments from 2012 to 2016
– Including ordinary capex (worth about a half of the strategic
investments)– Strategic investments as a rule to be implemented within
the size of operating cash flow
¾ Strategic investment for 2012 is planned to be approx. ¥64 bn

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3. Supplementary Information toFirst-Quarter 2012 Results*For information on each business’s profitability, please also
see the Supplementary Information to our Earnings Report

Copyright, 2012 SAPPORO HOLDINGS LTD. All rights reserved.

10/25

Japanese Alcoholic Beverages (1)(billions of yen)

Results highlights
Sales increased reflecting strong sales of the three core *Incl. liquor taxes
brands and rebound from the direct impact of theearthquake. Operating income declined due to
Net sales*
increased burden of fixed cost during the down period
for the loss caused by the disaster in 2011 in addition to
Operatingup-front investment of marketing cost aimed atincomeachieving a multi-layered structure.
Key points in business plan: implementation status

1. Bolster brand strength by focusing
management resources on core products¾ Bolstering brand strength by concentrating resources on thethree core brands of Sapporo Draft Beer Black Label, Yebisu
Beer, and Mugi to Hop as well as on Premium Alcohol Free,
non-alcohol beer-taste beverage

2011 1Q

2012 1Q

Amount

%

49.2

51.7

2.5

5.2%

(4.0)

(4.8)

(0.8)

−

YoY sales volume for Jan-Mar(Yebisu Beer and Black Label- total beer demand; Mugi to Hop – new-genre total demand)

115
110
105

¾ In spite of the rebound from the direct impact from theearthquake disaster, we achieved YoY volume growth for those 100
3 brands for the Jan-Mar period exceeding general demand in
the period by focusing on them. Total shipments of Sapporo
95
beer, happoshu, and new-genre beer products were 103.0%
compared with the same period a year earlier, outperforming
the general demand of 102.6%.
¾ In the Jan-Mar quarter Premium Alcohol Free increased 25% year overyear, significantly exceeding the level in the same period a year earlier,but falling short of the plan partly due to the market inflexibility.
¾ The target for Mugi to Hop Black was revised upwards to 3 million
cases (large bottle count), double the initial target.
¾ Premium Alcohol Free Black, the world’s first non-alcohol black beer
taste beverage to be launched on May 23 The plan: 350,000 cases(large bottle count)
Copyright, 2012 SAPPORO HOLDINGS LTD. All rights reserved.

Year-over-year changes％*Mugi to Hop includes Mugi to Hop
Black

114.6

108.6
104.0

Yebisu Beer

104.6

SapporoGeneral demand

106.0
103.0

104.0

Black Label

Mugi to Hop*

102.6

Beer, happoshu,
new-genre
Launch ScheduleMay 2311/25

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

2. Laying the groundwork for growth in expanding areas

3. Expand sales of wine, western spirits and shochuWine¾ Both imported and Japanese wines achieved year-over-year
volume growth and increased sales and profits¾ Imported wine: Growth in Yellow Tail and low-cost wines¾ Jan. Launched CJ Oishii Makgeolli Pink Grapefruit, developed¾ Japanese wine: Growth in large bottle, additive-free andjointly with No.1 Korean foods maker CJ Cheiljedang
functional wines¾ Feb. Launched Triangle Ginger Highball Strong

RTD-related actions <Sapporo’s first year of
promoting Ready To Drink products>¾ Feb. Launched a limited release of Sapporo Nectar Sour
Sparkling Cassis & Peach¾ Mar. Launched a renewed version of Sapporo Nectar Sour
Peach Sparkling¾ Mar. Launched Sapporo Nectar Sour Mix Sparkling¾ April 25 Launch the world’s first canned Bacardi Mojito
based on the world’s top brand rum¾ April 25 Launched Japan’s first Bacardi Cuba Libre basedon the world’s top brand rum

Western Spirits¾ Signed sales agreement with No.1 Korean foods maker CJ(CheilJedang) Group. Launched CJ Bonga Makgeolli in July
2011 in the industrial-use market¾ Entered into alliance with Bacardi Japan, supplier of world No.1
rum brand. Started sales of 90 items across 29 brands in October
2011.

•Launched Bacardi Classic Cocktails Mojito, Japan’s first
Mojito base that can be served with soda, on April 13¾ Various products under the above two brands contributed to to
growth in sales volume

ShochuLaunched
April 25

Copyright, 2012 SAPPORO HOLDINGS LTD. All rights reserved.

¾ Achieved year-over-year volume growth and increased
sales and profits¾ Strong sales in singly distilled Waramugi and Karariimo¾ Kuroumesyu also contributed to rise in sales volume

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International Business(1)billions of yen

Results highlights
Year-over-year changes

Sales rose 7.5% YoY, even though yen appreciationerased gains in local currency terms, especially inNorth America.
Operating income fell due to the impact ofexpenses related to building the Vietnamese
market.
Key points in business plan: implementation status2011 1Q

Sales in local currency (Jan-Mar)
Sales in local currency (Jan-Mar)65

Net sales

55

52.1
41.6

43.1

35
2007

2008

2009

2010

2010

2012

Sleeman （CAN $ millions)
15

14.8

Sales in local currency (Jan-Mar)

13.1

12.1
10.6

11.1

Operatingincome

5
2009
2010
2010
USA （US $ millions）

35
2007

5.8

46.9

0.4

7.5%

(0.2)
(0.1)
(0.2)

−
−
−

41.9

2008

(0.4)
(0.0)
(0.4)

2009
2010
USA ($ millions)

2011

th
(Jan-Mar) 6 straight year of Year-on-Year volume growth!

2011

2012

SLEEMAN brand

104%

110%

Canada total
demandapprox.

approx.

99%

99%

Unit sales (YoY)

2011

2012

Acquired a 51% stake in Silver Springs Citrus,USA companies
the largest U.S. maker of private-brand
US total importchilled drinks

124%

86%*

approx.

approx.

113%

96%

Sapporo USA (U.S.)¾ Expanding from the JapaneseAmerican market into wider US
and Asian-American markets

2012

Copyright, 2012 SAPPORO HOLDINGS LTD. All rights reserved.

%

Unit sales (YoY)

•
2008

(0.1)
0.0
(0.2)

SLEEMAN (Canada)

¾

2007

46.7
42.9

(Jan-Mar)

Silver Springs Citrus (U.S.)

9.7

10

55

¾ Sales expanded on increased
investment in marketing of premium
brands• Sales growth higher than that for
total demand in Canada

54.2

48.3
45

5.4

45

Vietnam
62.5

Amount59.9

North America, others

1. North American business growth

2012 1Q•

Full-fledged entry into beverages business in
the North American market
Started consolidation of profit/loss items
from Aprilbeer demand*Reflecting the impact of demand in
anticipation of price increase in April 201113/25

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

2. Expansion in Asian market (incl. Oceania)
Developments in Vietnam¾ Full-fledged entry of locally produced beer in themarket from end of February 2012
¾ Started full-scale marketing in the country including throughbillboards and TV commercials

Developments in South Korea¾ Strengthened Sapporo brand value and sales structure in South
Korea by acquiring a 15% stake in M’s Beverage Co., Ltd., awholly owned liquor sales subsidiary of Maeil Dairies Co., Ltd.
(which has top shares in cheese, low-fat milk, and chilled coffee drinks),

signing the agreement on Jan 31 A non-equity method affiliate¾ 2011 sales: 230,000 cases (1 case = 350ml×24 bottles) *Initial target: 300,000
cases (Though sales were affected for about two and a half months due to thedisaster, we achieved about 2/3 of the target.)¾ Sales targets: 380,000cases in 2012, 1.5 million cases in 2015(1 case =350ml×24 bottles)¾ Aim to become the No.1 imported brand.

Developments in Oceania¾ In October 2011, entered the Australian/New Zealand premium beermarket via licensing agreement with Coopers Brewery Ltd.(No.3 inAustralia’s beer market, No. 2 in premium beer market with a 17.3% share)¾ Full-fledged entry from 2012: aim to be the top Japanese beer brandTV commercial based on themarketing concept
Grab the Glory
Local billboards in Vietnam¾ Sales targets: 160,000 cases in 2012, 500,000 in 2016 (1 case = 355ml×24
bottles）¾ Silver can produced in Canada to be replaced with
Vietnamese product from 2012

Developments in Singapore¾ Expanding imported beer sales in local household market in cooperation
with POKKA Corporation(POKKA has top share (70%) in local green tea-based drink market)¾ Sales for 2011: 52,000 cases (large bottles) 21.4% YoY growth¾ Sales target for 2014: 100,000 cases (large bottles). Bolster sales channels
for achieving the target
Copyright, 2012 SAPPORO HOLDINGS LTD. All rights reserved.

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Food & Soft Drinks – Sapporo Beverage
Results highlights

billions of yen

Sales volume in 1Q declined to 91% of the previous year
against a overall demand rise to104%, partly due to theimpact of special demand for Japanese drinking water
following the disaster last year with March sales falling to
85% of the previous year. Operating income fell along Net sales
with the decline in sales volume.
Key points in business plan: implementation status

Year-over-year changes

Operatingincome2011 1Q

2012 1Q

Amount

6.6*

6.3

(0.3)

―

0.0
0.1

(0.3)
(0.0)

(0.4)
(0.2)

―
―

Strengthening/cultivation of competitive brandBefore GW
amortization¾ Concentrating investment on important categories
and brands*After retrospective adjustment• Ribbon: -9% YoY growth
In March, launched Ribbon Napolin Ice, a collaborative
product with Akagi Nyugyo Co., Ltd., in Hokkaido⇒ Raised awareness by airing a short animation of Ribbon chan on TV from April• Gabunomi: -11% YoY growth⇒Re-launched the product in the latter half of March andcarried out a promotion campaign with free gifts to ensure
wider sales reach and market penetration from April•Gerolsteiner: 3% YoY growth⇒ Carrying out promotion campaign with free gifts from
April to further promote trials and build repeat customer¾ Other brands•Oishii Tansansui: 17% YoYgrowth

Growth on the back of demand for alcohol
consumption at home ⇒ Continued focus
Copyright, 2012 SAPPORO HOLDINGS LTD. All rights reserved.

%

Synergies with Kyodo Milk Industry Co., Ltd.
¾ Re-launched in April Chousyoku Fruits, the firstcollaborative product introduced in April 2011
•It has evolved into a functional fruits drink with2,000 mg vitamin C per pack (equivalent to 100
lemons)•Launched plum flavor, which is associated withspring and summer as well as a healthy image, tocomplement standard offering of orange, apple andgrapes.

Synergies with POKKA Corporation¾ Synergies led to cost savings of ¥66 mn in Jan-Mar(¥4 mn increase YoY)
•Synergies from joint procurement and consigned production

15/25

Food & Soft Drinks – POKKA Group (1)Year-over-year changes

billions of yen

Results highlights
2011 1Q

New consolidation from April 2011 makes YoY comparisons meaningless,but comparisons based on figures below show sales were boostedby
contribution from Domestic Restaurants through revitalization of existing
CAFÉ de CRIE outlets and strengthening of leading shops.
Besides Domestic Restaurants, Overseas Beverage/Food contributed torise in operating income.

Net sales
OperatingincomeBefore GW
amortization

Ref: Jan-Mar segment sales and operating income
and YoY comparisons*2:2012 operating
income:Income before
deduction of
goodwill
amortization of ¥0.3
bn following
integration

Amountbillions of yen

2011 1Q

―

22.3

22.3

―

―
―

(0.9)
(0.5)

(0.9)
(0.5)

―
―

2012 1Q

Year-over-year changes

Amount%Domestic Bev/Food

16.6

16.6

(0.0)

-0.4%

Overseas Bev/Food

2.5

2.5

0.0

1.9%

Domestic Restaurants

1.2

1.4

0.1

14.1%

Overseas Restaurants

1.1

1.2

0.0

7.3%

Other Businesses

1.8

1.8

0.0

2.8%

POKKA corporate

(1.1)

(1.2)

(0.0)

−

Sales (total)

22.3

22.4

0.1

0.8%

Operating income

(0.1)

(0.6)

(0.5)

−

Copyright, 2012 SAPPORO HOLDINGS LTD. All rights reserved.

%*Started consolidating POKKA’s profit/loss items from 2011 2Q.

Before inter-segment eliminations*1:
2012 sales:
Before inter-segment
eliminations of ¥0.1 bn

2012 1Q

*1

*2

16/25

Food & Soft Drinks – POKKA Group (2)Key points in business plan: implementation status
Beverage & Food Business (Japan): POKKA Corp. and six group vending machine operators
1. Beverage Business¾ Concentrating investments in core brands
Kireto Lemon‥Re-launched the product‥Started airing new TV commercial from March
Aromax・・Launched Kyokugen no kaori BLACK, with sales
limited to Tokai area, the birth place of the company
Buzz generated by the advertisement featuring
president and employees
2. Food Business¾ Focused on core and growth products
Kantanbimi
・・Launched Korean-style seasonings Dashi-no-motoand Namuru-no-moto, enhancing the product lineup
Pokka Lemon 100
・・Expanded products with the Lemonja design, which
gained popularity with the 70ml bottle
3. Maintenance Plan for Nagoya Plant Finalized¾ Construct new building inside the site to manufacture
Pokka Lemon (Estimated investment: about¥2.4 bn)
・・・Correspond to the growth strategy for the corebusiness of Pokka Lemon 100¾ Anti-seismic work on existing building (investment of
about ¥0.4 bn)

・・・Measures to ensure business continuity in theevent of an earthquake
Copyright, 2012 SAPPORO HOLDINGS LTD. All rights reserved.

Synergies with Sapporo Beverage¾ Synergies led to savings of about ¥50 mn in １Q( ¥50 mn increase YoY)
•Synergies from joint procurement andcommissioned manufacture

17/25

Food & Soft Drinks – POKKA Group (3)事業計画のポイント：取組状況
Key
points in business plan: implementation status■ Beverage & Food Business (Overseas): POKKA Singapore■Restaurants Business (Domestic): POKKA CREATE Co., Ltd.

1. Expand into Singapore’s neighboring countries

1. Expand sales via growth at existing stores, chain expansion¾ Planning and implementing measures to revitalize markets inIndonesia, Malaysia and Brunei
2. Bolster sales in existing export markets¾ Outlets: 159 (104 in Kanto, 31 in Tokai, 21 in Kansai, 3 in Kyushu;as of¾ Strengthened alliances with agencies in Middle East andEuropePokka green tea products
boasting high market sharein Singapore

Exporting products to
60 countries
POKKA ACE (M)
SDN. BHD.
(Malaysia)

end of March 2012)¾ New outlets opened in 1Q: 1 (franchise)¾ Effectively using remodeling plan tostrengthen brand image
2. Profits up on successful efforts tolift profit ratio¾ Improved COGS ratio¾ Closed unprofitable restaurants■Restaurants Business (Overseas): POKKA CORPORATION(Hong Kong) and POKKA Food (Singapore) Pte. Ltd.
- Both existing and new outlets performed strongly in Hong Kong

POKKA CORPORATION(SINGAPORE) PTE LTD(Singapore)- Both Hong Kong and Singapore have been actively pursuing the new
business format¾ Outlets: 40 in total (as of the end of March 2012)
Hong Kong 29, Singapore 10, Macao 1■Other businesses¾ New outlet opening in 1Q
Hong Kong – Pokka Café 1- Ice cream business
Foremost Blueseal brand (Okinawa)

Copyright, 2012 SAPPORO HOLDINGS LTD. All rights reserved.

18/25

Restaurants
Results highlights

billions of yen

Year-over-year increase in sales in the Restaurant Business,
which was directly affected by the Great East Japan
Earthquake last year.
Sales for 1Q increased 13.3% YoY at existing stores, with
March alone posting a 47.1% rise. In addition to this,operating loss narrowed YoY, on closure of unprofitable
outlets, cost reductions and contributions from new outlets.

Key point in business plan: implementation status

Year-over-year changes
2011 1Q

2012 1Q

Amount%Net sales

4.7

5.4

0.6

13.9%

Operatingincome

(0.7)

(0.2)

0.4

−

銀座 ＹＥＢＩＳＵ ＢＡＲ

1. Positioning for growth
New restaurant opening strategy – 6 restaurants opened in 1Q¾ Synergy with the Japanese Alcoholic Beverage Business:
Opening of Yebisu Bar outlets
In addition to two new outlets in Akasaka and Tokyo Station’s ¾ 2 other outlets opened for total of 6 in 2012 1Q
Kurobei Yokocho, the format of the Osaki and Ginza 2• All outlets are performing as plannedchome outlets was changed, increasing the number ofYebisu Bar outlets to 9 as of the end of March¾ Ginza Lion chain expansion
2. Earnings structure reform• Mid-sized Ginza Lion opened in Marunouchi Center Building¾ Opened the Kitchen Ginza Lion, a new business format•¾ Locations closed in 2012 1Q: 5•

Opened a new outlet which specializes in roast beef in
Lumine Ikebukuro
Copyright, 2012 SAPPORO HOLDINGS LTD. All rights reserved.

¾ Locations operating as of the end of March 2012: 192
19/25

Real Estate (1)billions of yen

Results highlightYear-over-year changes

Maintaining stable revenues despite highvacancy rates and continued fall in rents inTokyo office leasing market
Key point in business plan: implementation status2011 1Q

2012 1Q

Amount%Net sales

5.7

5.3

(0.3)

-6.0%

Operatingincome

2.2

2.0

(0.2)

-10.5%

Boosting value of existing properties
Yebisu Garden Place¾ Maintain and improve occupancy rate andachieve appropriate rent levels••

In March, we acquired the 15% trust beneficiary rightsfrom the joint holder to give us 100% ownership
Maintained high occupancy rates and rent levels as ofend-Mar at Yebisu Garden Place and other major
Tokyo properties (table at right) compared to the 91%
average for office buildings in Tokyo’s 5 central wards

Redevelopment of Ginza and Ebisu Areas¾ Redevelopment of Sapporo Ginza Building and
Seiwa Yebisu Building••

We started planning and tenant negotiations forredevelopment of Ginza 5-chome and Seiwa Yebisu
building
Average occupancy of Seiwa Yebisu Building* steadilydecreasing in line with the rebuilding plan(*Average occupancy rate down to 59% from 2011 averageof 75%)
Copyright, 2012 SAPPORO HOLDINGS LTD. All rights reserved.

(As of March 31, 2012)
Major rental properties inTokyo*s 23 wards

Site area(m2)

Floor area(m 2)

Occupancy rate(%)

Yebisu Garden Place *1

56,943

298,00796%

40 floors above
ground, 5 below

Seiwa Yebisu Building*

2,617

10,400*59%

6 floors above
ground, 1 below

Yebisu Square

1,561

9,126

83%

Shibuya Sakuragaoka
Square

1,200

9,268

100%

7 floors above
ground, 1 below
10 floors above
ground, 1 below

Sapporo Ginza Building

530

4,232

96%

10 floors above
ground, 4 below

1,117

11,41196%

13 floors above
ground, 1 below

Strata Ginza *2

No. of floors

Site areas are taken from the land registry. Floor areas are as per building certification.
Occupancy rates are averages for January–March 2012.
*1. Figures are for entire property. Number of floors for office wings/buildings only.
Occupancy rates are for office areas only.
*2: Figures are for entire property. Sapporo owns 922m2 of the site (sectional ownership)and 89.72% of the building (joint management)
For more details about our Real Estate business s properties, visit the following website:(http:/www.yebisu-gp.jp/business/index.html)

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Real Estate (2)Overview of Real Estate Business¾ Majority of the business’s operating income is from real estate leasing– Property portfolio largely comprises properties in Tokyo 5 central wards: see previous page

¾ In January, we changed the name of Yebisu Garden Place Co., Ltd. to Sapporo Real Estate Co.,
Ltd. to raise the Sapporo brand value and strengthen Group synergies
Operating Income

billions of yen

2012 1Q

1.7

1.8

0.1

7.6

8.7

1.0

Other areas
Real estate leasing
total

0.2

0.2

0.0

0.8

0.8

0.0

1.9

2.0

0.1

8.5

9.6

1.0

Real estate total

0.4
(0.0)
2.2

−
(0.0)
2.0

(0.4)
(0.0)
(0.2)

0.4
(0.3)
8.5

0.0
(0.3)
9.3

(0.3)
0.0
0.7

Real estate leasing
Tokyo’s 23
wards

Other operations*
Total

Other areas
Real estate leasing
total

FY2012 est.

Change(value)

FY2011FY2012 est.

Change(value)2011 1Q

2012 1Q

2.5

2.7

0.1

11.0

12.2

1.2

0.3

0.4

0.0

1.5

1.5

(0.0)

2.9

3.1

0.2

12.6

13.8

1.1

−
(0.0)
3.1

(0.4)
0.0
(0.1)

0.4
(0.0)
12.9

0.0
0.0
13.9

(0.3)
0.1
0.9

0.4
Other operations*
(0.0)
Total
3.3
Copyright, 2012 SAPPORO HOLDINGS LTD. All rights reserved.
Real estate total

FY2011* “Other operations” includes back-office operations
EBITDA = operating income + depreciation and amortization

EBITDA

Real estate leasing
Tokyo’s 23
wards

Change(value)

Change(value)2011 1Q

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Ref. 2012-2013 Management Targets* 2012-2013 Management Targets are unchanged from the figuresannounced on February 10, 2012

Copyright, 2012 SAPPORO HOLDINGS LTD. All rights reserved.

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2012-2013 Management Targets
Consolidated targets
2006 results

2011 results2012 targets

2013 targets

2016 targets

Consolidated net sales*incl. liquor taxes¥435.0 bn¥449.4 bn*1

¥510.0 bn¥535.0 bn¥600.0 bn(excl. liquor taxes)¥294.0 bn¥336.8 bn*1

¥396.0 bn¥420.0 bn¥450.0 bn

Consolidated operating
income(before goodwill
amortization)
Consolidated ordinary
incomeConsolidated net
incomeConsolidated operating
margin*excl. liquor taxes(before goodwill
amortization)¥8.6 bn¥18.8 bn

¥20.0 bn¥21.0 bn

¥8.6 bn¥21.9 bn

¥23.9 bn

¥24.8 bn

¥5.8 bn¥16.8 bn¥17.0 bn

¥18.0 bn-

¥2.3 bn¥3.1 bn¥6.3 bn¥7.4 bn-

2.9%

5.6%*1

5.1%

5.0%

2.9%

6.5%*1

6.0%

5.9%

D/E ratio

2.1 times

1.8 times

1.9 times

1.9 times

ROE

2.1%

2.5%

5.0%

5.7%

(before goodwill
amortization)

2.1%

5.1%

8.2%

8.7%

¥40.0 bn

9.0%
Around 1:1
8% or higher*1 The 2011FY figure lacks continuity with the figure announced last year due to retrospective adjustment .
*Assumed exchange rates: 2012-2013: US$ = ¥81, CAN$ = ¥80

Copyright, 2012 SAPPORO HOLDINGS LTD. All rights reserved.

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2012-2013 Management Targets by Segment
Targets
2011 results2012 targets

2013 targets¥268.1 bn¥25.8 bn¥108.0 bn*1
¥24.0 bn
¥22.4 bn¥0.7 bn−¥288.0 bn¥37.3 bn
¥134.6 bn¥24.9 bn
¥24.4 bn¥0.8 bn−¥300.0 bn¥44.0 bn
¥140.0 bn¥26.0 bn¥24.0 bn¥1.0 bn−¥449.4 bn*1
¥9.3 bn¥0.3 bn¥3.6 bn¥0.2 bn¥8.5 bn(¥0.6 bn)(¥2.6 bn)

¥510.0 bn¥10.5 bn¥0.0 bn¥3.0 bn¥0.6 bn¥9.3 bn(¥0.4 bn)(¥3.0 bn)¥535.0 bn¥12.0 bn¥0.2 bn¥3.1 bn¥0.8 bn¥8.6 bn(¥0.4 bn)(¥3.3 bn)

Consolidated total¥18.8 bn

¥20.0 bn¥21.0 bn

Consolidated total(before goodwill amortization)¥21.9 bn

¥23.9 bn

¥24.8 bn

Japanese Alcoholic Beverages

Net salesInternational Business
Food & Soft Drinks
Restaurants
Real Estate
Other Businesses
General corporate
Consolidated total
Japanese Alcoholic Beverages

Operating incom e

International Business
Food & Soft Drinks
Restaurants
Real Estate
Other
General corporate*1 The 2011FY figure lacks continuity with the figure announced last year due to retrospective adjustment .
*Assumed exchange rates: 2012-2013: US$ = ¥81, CAN$ = ¥80
Copyright, 2012 SAPPORO HOLDINGS LTD. All rights reserved.

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To make people’s lives richer
and more enjoyable.

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

Copyright, 2012 SAPPORO HOLDINGS LTD. All rights reserved.

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