Financial Results
for the nine months ended September 30, 2021 — Consolidated(Based on IFRS)
November 5, 2021

Company name

Sapporo Holdings Limited

Security code
Listed on
URL
Representative
Contact
Telephone
Scheduled dates:

2501
Tokyo Stock Exchange (First Section); Sapporo Securities Exchange
https://www.sapporoholdings.jp/en/
Masaki Oga, President and Representative Director
Tatsuya Komatsu, Director of the Corporate Planning Department+81-3-5423-7407

Filing of quarterly financial report
Commencement of dividend payments
Supplementary information to the quarterly earnings results
Quarterly earnings results briefing held

November 12, 2021
AvailableYes(mainly targeted at institutional
investors and analysts)

1. Consolidated Financial Results for the nine months ended September 30, 2021
(January 1 – September 30, 2021)(Amounts in million yen rounded to the nearest million yen)

(1) Operating Results(Percentage figures represent year-over-year changes)
Core operating
Operating profit
ProfitprofitRevenuemillion yen%

million yen%

million yen%

million yen%

Nine months ended
September 30, 2021

309,061

(2.0)

1,544

31.7

23,948_15,661_

Nine months ended
September 30, 2020

315,346(12.7)

1,173(81.7)(2,041)_(1,162)_

Profit attributable toowners of parent
million yen

Yen

yen

201.95

197.72(925)_(8,084)
Nine months ended
September 30, 2020
Note: Profit before tax
Nine months ended September 30, 2021:23,883 million yen
Nine months ended September 30, 2020: (2,850) million yen_(11.87)(11.87)_%

Diluted earnings
per share_

15,731

million yen

Basic earnings
per share

21,617

Nine months ended
September 30, 2021%

Total comprehensive
incomeNote: Core Operating Profit is a proprietary profit indicator that measures the performance consistency of our business.
Core operating profit is calculated as Revenue – Cost of sales – SG&A expenses.

－ 1 －(2) Financial Position
Total assets

Total equity

Equity attributableto owners ofparentEquity ratio
attributable toowners of parent

million yen

million yen

million yen%

Nine months ended
September 30, 2021

576,843

167,818

167,099

29.0

December 31, 2020

616,349

149,551

149,781

24.3

2. Dividends
Dividend per share
Record date or period

End Q1End Q2End Q3

Yen

Yen

Year ended December
31, 2020

—

yen
0.00

Year ending December
31, 2021—

0.00

Year-end

Full year

yen
42.00

—

yen
42.00

—

42.00
42.00
Year ending December
31, 2021 (forecast)
Note: Changes were made to dividends forecasts in the nine months ended September 30, 2021: None

3. Forecast of Consolidated Earnings for the Year Ending December 31, 2021
(January 1 – December 31, 2021)(Percentage figures represent year-over-year changes)
Revenuemillion yen

Core operating
profit%million yen%

Operatingprofitmillion yen

Profitmillion yen

%

Yen

_

154.052－

million yen%

Basic earnings
per share

447,200
2.9
6,700
57.2
18,000_12,000_12,000Year ending
December31, 2021
Note: Changes were made to earnings forecasts in the nine months ended September 30, 2021: None－%

Profit attribute toowners of parent

4. Other(1) Changes to scope of consolidation: None
*Changes affecting the status of significant subsidiaries (scope of consolidation)
Newly consolidated: Newly excluded: (2) Changes in accounting policy, changes in accounting estimates, and retrospective restatement
1) Changes in accounting policies required by IFRS: None
2) Changes other than 1) above: None
3) Changes in accounting estimates: None
(3) Number of shares issued and outstanding (common stock)1) Number of shares issued at end of period (treasury stock included):
September 30, 2021: 78,794,298 shares
December 31, 2020: 78,794,298 shares
2) Number of shares held in treasury at end of period:
September 30, 2021: 896,091 shares
December 31, 2020: 896,951 shares
3) Average number of outstanding share during the period:
Nine months ended September 30, 2021: 77,898,123 shares
Nine months ended September 30, 2020: 77,897,518 shares*Quarterly review status
The quarterly financial results are not subject to quarterly reviews pursuant to the Financial Instruments
and Exchange Act.
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 those expressed or implied byforward-looking statements due to various factors. For the assumptions underlying the forecasts herein andother information on the use of earnings forecasts, refer to “1. Analysis of Operating Results and Financial
Condition (4) Consolidated Earnings Forecast” on page 7.

－ 3 －1. Analysis of Operating Results and Financial Condition(1) Operating Results
In the first nine months of 2021 (January 1 to September 30, 2021), the Group was impacted by
Japan’s repeated issuances of state of emergency due to the COVID-19 pandemic and restrictions on
the service of alcoholic beverages due to semi-state of emergency measures, which caused sales ofcommercial-use beer and sales to restaurants such as beer halls to decline compared to the same
period of the previous year.
However, the core operating profit increased year on year due to a curtailment in expenses fromcost structure reforms. Additionally, operating profit and net profit attributable to owners of parent wereup year on year due to the sale of investment properties.
1) Summary in key figures
Revenue
Nine months ended September
30, 2021
Nine months ended September
30, 2020
Change (%)

Millions of yen, except percentages
Profit attributable toCore operating profit Operating profit
owners of parent

309,061

1,544

23,94815,731

315,346

1,173(2,041)

(925)

(2.0)

31.7

―

―

*Core operating profit is the Sapporo Group’s unique profit benchmark for measuring the performance of its regularbusiness and is calculated by deducting cost of sales, and selling, general and administrative expenses, from revenue.

Results by segment are outlined below.

2) Results by reportable segment
Millions of yen, except percentages
Revenue

Alcoholic
Beverages
Food &
Soft Drinks
Real EstateCore operating profit

Operating profit

Nine months

Nine months

Nine months

Nine months

Nine months

Nine months

ended

ended

Change

ended

ended

Change

ended

ended

ChangeSeptember.

September.

(%)

September.

September.

(%)

September.

September.

(%)

30, 2020

30, 2021

30, 2020

30, 2021

30, 2020

30, 2021

206,797

202,029

(2.3)

317

90,96690,399(0.6)(2,346)(257)

17,45916,510

(5.4)

8,003

45 (85.9)(3,655)

(182)

―

―

(2,469)(13)―

6,398 (20.0)

8,609

28,555

231.7

Alcoholic Beverages
Japan
The commercial-use market in the country has been significantly impacted by the COVID-19
pandemic. Total demand in Japan for beer and beer-type beverages is estimated to have only reachedaround 91% of the year-earlier level.
Amidst this situation, in the beer category, commercial-use beer sales volume declined, but sales ofcanned Sapporo Draft Beer Black Label and Yebisu brand beers were strong, with sales volumes at
114% and 104% of the previous year’s level, respectively. In the new genre category, Sapporo Gold
Star, which won three awards in Japan and overseas, continued its success, with an increase of 5%
year on year in sales volume. As a result, total sales of beer and beer-type beverages stood at 91% of
the year-earlier level.
In addition, we launched a low-alcohol, beer-like drink The DRAFTY in September 2021, taking on
the challenge of creating new markets.
－

4－In the RTD*1 category, sales of Sapporo Koime no Lemon Sour, a new product launched in March
2021, were strong, while sales of core collaborative RTD product Otoko Ume Sour were also steady,driving category revenue significantly higher year on year.
Our Japanese liquor business also posted a year-on-year increase in revenue with sustained solid
sales of Kokuimo brand, Japan’s best-selling*2 blended imo shochu, as well as Koime no Lemon Sourno Moto.
Overseas
The overseas commercial-use market has been impacted by the COVID-19 pandemic. Total
demand in North America for beer and beer-type beverages is estimated to have increased year on
year, as it is on a recovery trend in the United States, while it decreased year on year in Canada.
Under this trend, although overseas brands saw a decrease year on year in beer sales volume in thecourse of strategic product changes by Sleeman Breweries, our focus RTD sales volume increased
year on year.
Sales volume of Sapporo brand beer were up year on year, since the commercial-use market
recovered thanks to removed operating restrictions placed on restaurants in the United States, inaddition to the success of strengthening efforts in the home-use market.
Restaurants
The entire restaurant industry, including pub restaurants and izakaya, has been suffering substantial
impacts from the COVID-19 pandemic since 2020. In the Company’s restaurant business, many
restaurants were closed or had shortened operating hours during the period of restricted sales ofalcoholic beverages.
Amidst these challenges, the business experienced a decrease in revenue yet an improvement incore operating loss year on year, after efforts to bolster menus along with take-out and delivery
products, close unprofitable restaurants, and shift to a low-cost, low-operation business format, among
other initiatives.
As a result of the above factors, revenue in the Alcoholic Beverages segment for the first ninemonths of 2021 came to ¥202.0 billion (down ¥4.8 billion or 2% year on year). The segment posted acore operating profit of ¥0.0 billion (down ¥0.3 billion or 86% year on year) and an operating loss of¥0.2 billion (compared with a loss of ¥3.7 billion a year earlier).
*1: RTD, or ready-to-drink beverages, are pre-mixed, low-alcohol cocktail-like beverages that can be
consumed as is immediately after opening.
*2: Based on Intage SRI market research on combined blended imo shochu sales in the supermarket,
convenience store, and direct sales channels from December 2019 to September 2021.
Food & Soft Drinks
Although total demand in Japan for soft drinks continued to expand due to the lesser impact of the
COVID-19 pandemic compared to the previous year and the hot weather that lasted until the earlyAugust, growth is estimated to have remained flat year on year because of the decrease after thetorrential rains mainly in western Japan in the mid-August.
Against this backdrop, in the domestic soft drink business, sales of lemon-based soft drinks such as
Kireto Lemon were strong on rising health consciousness, and posted a solid increase of 14% year on
year.
The Craft Cola, which we revamped in September, also helped to attract attention, and the total
sales volume for soft drinks was on a par year on year.
In the domestic food business, the sales volume of cold canned soups soared by 29% year on year.
Lemon-based food products grew in sales volume by 6% year on year, as Pokka Lemon continued
to perform well due to the expansion in household demand.
Plant-based milk products also saw a 6% year-on-year increase in its sales volume, with our soymilk
yogurt products contributing to this increase thanks to rising health consciousness. In addition, we
launched GreenBio Almond Milk Yogurt (plain, unsweetened) in September to further revitalize the－ 5 －growing plant-based food market.
Pokka Create Co., Ltd., which operates the Café de Crié coffee shop chain, saw revenue increase
year on year amidst the ongoing impacts the cafe industry has experienced under the COVID-19
pandemic, although it has not recovered to pre-COVID levels.
As a result of the above factors, revenue in the Food & Soft Drinks segment for the first nine monthsof 2021 came to ¥90.4 billion (down ¥0.6 billion, or 1% year on year), while the segment posted a core
operating loss of ¥0.3 billion (compared with a loss of ¥2.3 billion a year earlier) and an operating lossof ¥0.0 billion (compared with a loss of ¥2.5 billion a year earlier).
Real Estate
The office leasing market in the Greater Tokyo area is experiencing a downtrend in occupancy rate
and average rents.
In this market climate, although the Real Estate business saw a drop in occupancy rates due to thedeparture of some tenants at properties owned mainly in the Greater Tokyo Area, including the Yebisu
Garden Place Tower, the business’ core source of earnings, we strategically reconfigured our property
portfolio by selling off Ebisu First Square and other properties and making equity investments funds
that own commercial facilities. While commercial facilities are impacted by COVID-19, we aim toprovide new lifestyle value and new work styles with the reopening of the Yebisu Garden Place
commercial building next year. In addition, we are proceeding with the construction of the new Sreed
EBISU +t which started in June 2021.
As a result of the above, revenue in the Real Estate segment for the first nine months of 2021
totaled ¥16.5 billion (down ¥0.9 billion, or 5% year on year), while the segment posted a core operating
profit of ¥6.4 billion (down ¥1.6 billion, or 20% year on year) and an operating profit of ¥28.6 billion (up¥19.9 billion, or 232% year on year).
(2) Consolidated Financial Condition
Consolidated assets as of September 30, 2021, totaled ¥576.8 billion, ¥39.5 billion less than at theend of the previous fiscal year (December 31, 2020), mainly due to the decrease in trade and otherreceivables, income taxes receivable, and investment property, despite the increase in inventories,
and property, plant and equipment.
Consolidated total liabilities came to ¥409.0 billion, which was a decrease of ¥57.8 billion ascompared to the end of the previous fiscal year, because of the decrease in bonds and borrowings(current), other current liabilities, and bonds and borrowings (non-current), notwithstanding an increase
in income taxes payable.
Consolidated total equity stood at ¥167.8 billion, up ¥18.3 billion compared to the end of theprevious fiscal year, due to the posting of a net profit attributable to owners of parent and an increasein other components of equity, notwithstanding the payment of year-end dividends.
(3) Consolidated Cash Flows
Cash and cash equivalents (collectively “cash”) totaled ¥13.3 billion as of September 30, 2021,¥6.4 billion or 33% less than at the end of the previous fiscal year (December 31, 2020).
Consolidated cash flows for the first nine months of 2021, and the main factors affecting those flows
were as follows.
Cash flows from operating activities
Operating activities provided net cash amounting to ¥26.9 billion, an increase of ¥5.6 billion or 26%
from the same period last fiscal year. The main positive contributors to inflows were a ¥23.9 billion in
profit before tax, a ¥22.2 billion decrease in trade and other receivables, and depreciation andamortization of ¥17.0 billion, which offset a ¥22.8 billion gain on sales and retirement of property, plantand equipment, and intangible assets, and a ¥13.1 billion decrease in accrued alcohol tax.

－

6

－

Cash flows from investing activities
Investing activities provided net cash of ¥17.7 billion, compared to ¥14.3 billion used in the same
period last fiscal year. The main outflows were purchases of property, plant and equipment of¥10.1 billion, and purchases of investment property of ¥4.7 billion, while there was an inflow of¥34.1 billion in proceeds from the sale of investment properties.
Cash flows from financing activities
Financial activities used net cash totaling ¥51.5 billion, compared to ¥30.3 billion net cash provided
in the same period last fiscal year. The main outflows were a redemption of bonds of ¥30.0 billion,
repayments of long-term borrowings of ¥13.2 billion, decrease in commercial papers of ¥5.0 billion,
repayments of lease liabilities of ¥4.7 billion, and ¥3.3 billion for dividends paid, which outweighed
inflow of ¥4.0 billion in proceeds from long-term borrowings.
(4) Consolidated Earnings Forecast
The consolidated earnings forecast for the full fiscal year to December 31, 2021, is unchanged fromthe forecast announced by the Company on August 6, 2021.

－ 7 －2. Consolidated Financial Statements(1) Consolidated Statement of Financial Position(Millions of yen)

AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other financial assets
Income taxes receivable
Other current assets
Subtotal
Assets held for sale
Total current assets
Non-current assets
Property, plant and equipment
Investment property
Goodwill
Intangible assets
Investments accounted for using equity method
Other financial assets
Other non-current assets
Deferred tax assets
Total non-current assets
Total assets

－

8

－

December 31, 2020

September 30, 2021

19,73484,47536,001
5,459
8,755
6,128
160,551278
160,829

13,29062,91540,479
3,629
1,359
5,135
126,806－
126,806

126,650
218,574
17,9209,023
446
69,9696,108
6,831
455,520
616,349

131,090
206,514
19,476
8,944
1,347
71,1035,414
6,148
450,036
576,843

(Millions of yen)

Liabilities and equity
Liabilities
Current liabilities
Trade and other payables
Bonds and borrowings
Lease liabilities
Income taxes payable
Other financial liabilities
Other current liabilities
Total current liabilities
Non-current liabilities
Bonds and borrowings
Lease liabilities
Other financial liabilities
Retirement benefit liability
Other non-current liabilities
Deferred tax liabilities
Total non-current liabilities
Total liabilities
EquityShare capital
Capital surplus
Treasury shares
Retained earnings
Other components of equity
Total equity attributable to owners of parent
Non-controlling interests
Total equity
Total liabilities and equity－ 9 －December 31, 2020

September 30, 2021

31,927
83,177
5,836
727
38,12056,456216,243

31,428
61,1106,274
8,039
35,231
42,715
184,795

158,091
21,04645,344
3,965
2,832
19,277
250,555
466,798

136,942
20,27644,853751
2,504
18,905224,229
409,024

53,88740,853(1,787)33,45923,370149,781(231)
149,551
616,349

53,88740,596(1,784)48,05926,340167,099719
167,818
576,843

(2) Consolidated Statement of Profit or Loss and Comprehensive Income
Consolidated Statement of Profit or Loss
(Millions of yen)
Nine months ended
September 30, 2020

Nine months ended
September 30, 2021

Revenue
Cost of sales
Gross profit

315,346
219,059
96,287309,061
215,155
93,905

Selling, general and administrative expenses
Other operating income
Other operating expenses
Operating profit (loss)

95,1142,670
5,884(2,041)

92,361
25,5303,126
23,948Finance income
Finance costs
Share of profit of investments accounted for using
equity method
Profit (loss) before tax

734
1,557

1,150
1,243

14

27

(2,850)23,883

Income tax expense
Profit (loss)(1,688)(1,162)

8,223
15,661

Profit (loss) attributable to
Owners of parent
Non-controlling interests
Profit (loss)

(925)
(237)
(1,162)

15,731(70)
15,661

Basic earnings (loss) per share
Diluted earnings (loss) per share(11.87)(11.87)201.95
197.72－10－

(3) Consolidated Statement of Comprehensive Income(Millions of yen)
Nine months ended
September 30, 2020
Profit (loss)
Other comprehensive income
Items that will not be reclassified to profit or loss
Net change in fair value of equity instruments
designated as measured at fair value throughother comprehensive income
Remeasurements of defined benefit plans
Total of items that will not be reclassified to
profit or loss
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign
operations
Effective portion of cash flow hedges
Total of items that may be reclassified to profit
or loss
Total other comprehensive income, net of tax
Comprehensive income
Comprehensive income attributable to
Owners of parent
Non-controlling interests
Comprehensive income－ 11 －

Nine months ended
September 30, 2021

(1,162)

15,661(4,947)

1,193

(646)

2,055

(5,593)

3,248(1,351)

2,677

22

31

(1,329)2,708(6,922)(8,084)

5,956
21,617(7,813)(270)(8,084)

21,656(39)
21,617

(4) Consolidated Statement of Changes in Equity(Millions of yen)
Other components of equity

Balance as of January 1, 2020

SharecapitalCapitalsurplusTreasurysharesRetainedearnings

53,88740,958(1,792)

51,521

Profit (loss)

Exchange differenceson translation offoreign operations

Effective portion of
cash flow hedges

(863)

(68)

(1,318)22(1,318)

22

(549)

-

-

(925)

Other comprehensive income
Comprehensive income

-

-

-

Purchase of treasury shares

(925)

(3)

Disposal of treasury shares

09Dividends(3,277)

Changes in ownershipinterest in subsidiaries(2)

Share-based remunerationtransactions(12)

Transfer from othercomponents of equity toretained earnings
Total transactions with owners

-

(14)

6

(3,826)--

Balance as of September 30,
2020

53,88740,944(1,786)

46,770(2,180)(46)

Other components of equity
Financial assets
measured at fair value
through othercomprehensive income
Balance as of January 1, 2020

Total equity
attributableto ownersof parent

Noncontrollinginterests

Total equity

29,497174,071454

174,524

-

(925)

(237)

(1,162)Remeasuremen
ts of defined
benefit plans

Total othercomponents ofequity-30,428

Profit (loss)
Other comprehensive
income(4,947)(646)(6,889)(6,889)(33)(6,922)Comprehensive income(4,947)(646)(6,889)(7,813)(270)(8,084)Purchase of treasury shares

-

(3)

-

(3)

Disposal of treasury shares

-

9

-

9

Dividends-(3,277)(10)(3,287)

Changes in ownershipinterest in subsidiaries

-

(2)

(1)

(3)

Share-based remunerationtransactions

-

(12)

-

(12)

Transfer from othercomponents of equity toretained earnings

(97)

646

549

-

-

-

Total transactions with owners

(97)

646

549

(3,285)(11)(3,296)

Balance as of September 30,
2020

25,384-

23,158

162,972

172

163,145－12－

(Millions of yen)
Other components of equity

Balance as of January 1, 2021

SharecapitalCapitalsurplusTreasurysharesRetainedearnings

53,88740,853(1,787)33,459Profit (loss)

Exchange differenceson translation offoreign operations

Effective portion of
cash flow hedges(1,806)

(40)

2,646

31

2,646

31

15,731Other comprehensive
incomeComprehensive income--

Purchase of treasury shares-

15,731(4)

Disposal of treasury shares

08Dividends(3,277)

Changes in ownershipinterest in subsidiaries
Share-based remunerationtransactions
Transfer from othercomponents of equity toretained earnings

(50)
(24)
1,964
(182)

Other

182

Total transactions with owners

-

(257)

4

(1,131)--

Balance as of September 30,
2021

53,88740,596(1,784)48,059840(9)Other components of equity

Balance as of January 1, 2021

Total equity
attributableto ownersof parent

Noncontrollinginterests

Total equity

23,370149,781(231)

149,551-

15,731(70)

15,661

Financial assets measured
at fair value through othercomprehensive income

Remeasurementsof defined benefit
plans

Total othercomponentsof equity

25,215-

Profit (loss)
Other comprehensive
income

1,193

2,055

5,925

5,925

31

5,956

Comprehensive income

1,193

2,055

5,925

21,656(39)

21,617Purchase of treasury shares

-

(4)

-

(4)

Disposal of treasury shares

-

8

-

8

Dividends-(3,277)(1)(3,278)Changes in ownershipinterest in subsidiaries

-

(50)

-

(50)

Share-based remunerationtransactions

-

(24)

-

(24)

(2,954)

(990)

990

-

-

-

-

-

Transfer from othercomponents of equity toretained earnings(899)(2,055)

Other
Total transactions with owners(899)(2,055)(2,954)(4,338)989(3,349)Balance as of September 30,
2021

25,509-26,340167,099719

167,818－ 13 －

(5) Consolidated Statement of Cash Flows(Millions of yen)
Nine months ended
September 30, 2020

Nine months ended
September 30, 2021

(2,850)19,784
562
(725)
1,342

23,883
17,046
623
(551)
1,241

(14)

(27)

Cash flows from operating activities
Profit (loss) before tax
Depreciation and amortization
Impairment losses
Interest and dividend income
Interest expenses
Share of loss (profit) of investments accounted forusing equity method
Loss (gain) on sale and retirement of property, plantand equipment, and intangible assets
Decrease (increase) in trade and other receivables
Decrease (increase) in inventories
Increase (decrease) in trade and other payables
Increase (decrease) in accrued alcohol tax
Other
SubtotalInterest and dividends received
Interest paid
Income taxes refund (paid)
Net cash provided by (used in) operating activities(775)(22,849)

25,279(2,544)(2,536)(12,512)2,466
27,480742(1,327)(5,568)21,32622,178(3,414)(934)(13,133)
3,316
27,378557(1,246)242
26,931

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of investment property
Proceeds from sale of investment property
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Payments for acquisition of subsidiaries
Payments for investments in capital
Purchase of investments in associates
Payments for loans receivableCollection of loans receivable
Other
Net cash provided by (used in) investing activities(8,347)173(3,532)
1,000(1,604)(1,658)
940
－
(297)
－
(69)
23
(939)
(14,309)(10,097)
1,389(4,683)34,078(854)(1,834)
3,272(2,737)(1,300)
(900)
(57)
72
1,303
17,652－

14－

(Millions of yen)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Net increase (decrease) in commercial papers
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of bonds
Redemption of bonds
Dividends paid
Repayments of lease liabilities
Other
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents

Nine months ended
September 30, 2020

Nine months ended
September 30, 2021

(3,221)
17,00018,500(13,792)
30,000(10,013)(3,286)(4,902)
6
30,292589(5,000)4,000(13,180)－(30,008)(3,275)(4,654)
4(51,525)

(48)

498

37,262
15,21552,477(6,444)
19,734
13,290(6) Notes on the Going-concern Assumption
Not applicable(7) Segment Information
1. Overview of reportable segments
The Company’s reportable segments are components of the Sapporo Group about which separate
financial information is available. These segments are subject to periodic examinations to enable theCompany’s board of directors to decide how to allocate resources and assess performance.
Under the Company, which is a pure holding company, Group companies carry out business activities
and formulate strategies for the products and services they offer and for the sales markets they cover.
The Group’s businesses are segmented mainly based on the products, services and sales markets ofGroup companies and their affiliate companies. The Company’s three reportable segments are Alcoholic
Beverages, Food & Soft Drinks, and Real Estate.
The Alcoholic Beverages segment produces and sells alcoholic beverages and operates restaurants ofvarious styles.
The Food & Soft Drinks segment produces and sells foods and soft drinks.
The Real Estate segment’s activities include leasing and development of real estate.

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2. Revenue, profit (or loss)(Millions of yen)
Nine months ended September 30, 2020 (January 1, 2020 – September 30, 2020)

Alcoholic
Beverages

Food &
Soft Drinks

Real Estate

To outside customers

206,797

90,966

17,459123

315,346

Inter-segment revenue

497

1,959

1

11,305－(11,305)

315,346

8,849
215,646

91,463

19,418

123

326,650(11,305)

315,346(3,655)(2,469)

8,609

(4)

2,480

(4,521)(2,041)Other *1

Total

Consolidated
total

Adjustment

Revenue

Total
Operating profit (loss)－(Millions of yen)
Nine months ended September 30, 2021 (January 1, 2021 – September 30, 2021)

Alcoholic
Beverages

Food &
Soft Drinks

Real Estate

To outside customers

202,029

90,39916,510123

309,061

9,513

709

1,790

0

12,012－(12,012)309,061Inter-segment revenue

211,542

91,10818,299123

321,073(12,012)309,061

(182)

(13)

28,55523

28,383(4,434)23,948Other *1

Total

Adjustment

Consolidated
total

Revenue

Total
Operating profit (loss)－*1: "Other" comprises businesses, such as health food business, etc., that are not included in reportable segments.
Adjustment included General corporate and intercompany eliminations. General corporation are generaladministrative expenses that do not belong to the reporting segment.

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