Sapporo Group Business Results Presentation
for the Six Months Ended June 30, 2023

*In this document, the following company name abbreviations are used:
SH: Sapporo Holdings Limited

SB: Sapporo Breweries Ltd.

PS: Pokka Sapporo Food & Beverage Ltd.

SLN: Sapporo Lion Limited.

August 10th 2023
URL https://www.sapporoholdings.jp/en/

SRE: Sapporo Real Estate Co., Ltd.

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１. Summary

・・・ P.3

２. Sustainability Management Initiatives

・・・ P.4~P.5

３. Business Results

・・・ P.6~P.21

４. Appendix

・・・ P.22~P.34

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Summary

Business results: increased revenue and improving core operating profit（billions of yen）

Revenue

2022 Q2
Result2023 Q2
Result

213.8

238.5

YoY changes YoY changes(%)(amount)

24.7

11.6%

⚫ Revenue and core operating profit
increased⚫ Operating profit and profit for the period
decreased(impact of one-off costs for the dissolution of Anchor)

Core operating profit

(2.2)

3.5

5.7

ー

Operating profit

(0.2)

(2.8)

(2.6)

ー

Profit attributable to owners of parent

(0.4)

(5.1)

(4.7)

ー

⚫ Price revisions are steadily absorbing
higher costs such as surging raw material
costs, etc.
⚫ Progressing steadily according toforecasts

Main topics⚫ Alcoholic Beverages recover in sales volume of commercial-use products, while Restaurants posted steadysame-store sales⚫ Canned Black Label performed better than last year (Market total demand for canned beer down 6%)
RTD was a growth driver, with strong sales for the new product “Shin Lemon Sour,” in addition to core brands⚫ Sapporo brand continues to see strong sales overseas⚫ The effect of structural reforms in the Restaurants and Food & Soft Drinks businesses implemented since thepandemic are contributing steadily to bottom line
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Sustainability Management Initiatives ～Harmony with the Environment～
We updated the Sapporo Group Environmental Vision 2050
The Sapporo Group Environmental Vision 2050 was updated with a view to “Realizing a decarbonized society,” which is one of our priority sustainability issues
With the aim of achieving this updated objective, we have also updated our 2030 target for reducing greenhouse gas emissions, and newly set FLAG targets[Environmental Vision 2050][2030 Target]

Aim for net zero greenhouse gas emissions for Scope 1, 2, and 3

Reduce Scope 1 and 2 greenhouse gas emissions by 42% compared to 2022 levels

Use electricity derived from renewable energy for 100% of power used

Reduce Scope 3 greenhouse gas emissions by 25% compared to 2022 levels(Addition)

Reduce FLAG Scope 1, 2, and 3 greenhouse gas emissions by 31% compared to2022 levels

Canadian company SLEEMAN selected for Canada’s Greenest Employers
The company was selected for Canada’s Greenest Employers (2023), which is held by the Canada’s Top 100 Employers project.
This was the result of promoting employee participation initiatives.

Saved
approx. 300,000
liters of water per day

Improved its
waste landfill
conversion ratio
from 60% to 97%

Processes 100%of wastewaterfrom its Guelph
factory
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Sustainability Management Initiatives ～Sustainability Targets～
Black text indicates results and blue text indicates targets
Classification

Material Issues

Specific Initiatives

Targets Setting Companies

Scope1,2

2021

Targets

Target Year

2050

Scope 1, 2, 3 Net Zero greenhouse gas emissions

Common to all

Harmony with theEnvironment

Realization of a

Reducing CO2 emissions at

decarbonizedcompany sites and supply

societychainsoperating companies

Scope 1, 2 greenhouse gas emissions by 42%

Scope３compared to 2022 levels

2026

2030

184.1

189.3

149.5

109.8

Kt

Kt

Kt

Kt

903.3

1,082.6

947.3

812.0

Kt

Kt

Kt

Kt

101.8

86.0

70.2

Kt

Kt

Kt

2050

Scope 3 greenhouse gas emissions by 25%
2030（SB,PS,SBL※）

0（Scope3）

Common to all
operating companies

2022（Scope1,2）

compared to 2022 levels

0（FLAG Scope1,2,3）※Accounts for more than
FLAG Scope 1, 2, 3 greenhouse gas emissions by

two-thirds of the emissions

31% compared to 2022 levelsof the entire Sapporo Group

Progress in sustainable urban development that

SRE

Co-prosperity withSociety

Mutual prosperity

・Improvement of regional value

with local

・Resolution of local issues

communities

using company resources

contributes to improving area brand value

SB

Progress of our “regional revitalization business”
Progress in building an environment for lemonPSproduction in Japan

-

-

-

-

-

-

-

-

131

53.9

53.6

54

-

8.3%

12%

20%

4.2%

5.4%

12%

20%

2.6

2.7

3.0

36.3

34.4

33.4

Number of regional learning programs (food education,
PS, SGF

2030

on-site classes, factory tours, etc.) related to the food140

and beverage business

Promotion of Diversity &SH, SB, PS, SRE, SLN

2026

SH, SB, PS, SRE, SLN

2026

SH, SB, PS, SRE, SLN

2030

SH, SB, PS, SRE, SLN

2026

SH, SB, PS, SRE, SLN

2026

Activation of Human Active participation Inclusion (D&I)
Resources andof diverse human

Potentials

resources
Investing in human capital for
growth and productivity~

Work engagement (*1) 54 or higher
At least 12% female executives and at least 20% female
executives
At least 12% female managers and at least 20% female
managers
Integrated survey “Challenges for future value creation”(*2) 3.0 or higher
Presenteeism loss rate (*3) 33.4% or less

*1 Indicators in Stress Check and Employee Awareness Survey <Deviation>*2 Sapporo Group’s proprietary survey indicators in Stress Check and Employee Awareness Survey <quantified using 1.0 to 4.0>
*3 Indicators in Stress Check and Employee Awareness Survey: average for SH and four operating companies
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Business Results

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Financial Highlights（billions of yen）

2022 Q2
Result2023 Q2
ResultYoY changes(amount)

YoY changes
(%)

213.8

238.5

24.7

11.6%

Revenue（Excluding liquor tax）

162.4

184.6

22.1

13.6%

Overseas revenue

43.1

57.4

14.2

33.0%

EBITDA

7.9

13.5

71.1%

(2.2)

3.5

5.6
5.7

(1.0%)
1.9
(0.2)

1.5%
(6.3)
(2.8)

ー

ー
ー

(0.4)

(5.1)

(8.2)
(2.6)
(4.7)

RevenueCore operating profit
Core operating profit margin
Other operating income (expense)
Operating profit
Profit attributable to owners of parentーーー

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Situation of External Environment Affecting Business Results～Impacts of the COVID-19 pandemic～

Sales volume of commercial-use products for Japan alcoholic beverages and sales of Restaurants business both in recovery mode
Alcoholic beverages in Japan
Bar graph: Commercial-use (bottles and kegs) Sales Volume Results(vs. 2019)

We outweighed total demand thanks to strong performanceof bottled lager beer, in addition to two main products, Black
Label and Yebisu

Line graph: Total Demand for Commercial-use Products (vs. 2019) (estimated by Sapporo HD)

93%
82% 84%

84%
78%
59%

64%

69%

67%

78%

77%
69%

72%

70%

62%

Approx.

54%

44%

The period of Jan.-Jun. 2023 also improved year-on-year, and we will
aim for a year-on-year improvement for the entire year.

31%

Jan.

Feb.

2.4x over 10 years (comparing performance from 2013-2022)

Mar.

Apr.

May.

June

July

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

2022

Apr.

May.

June

Growth rate - Bottled lager beer

2023

(growth rate using 2013 as 1)

Approx

2.4x

Alcoholic beverages in resutaurants

Jan.-Jun. performance(year-on-year)

Approx 1.3x

Approx 1.6x

Bar graph ：Sapporo Lion restaurants existing store Sales Results(vs. 2019)
99%

74%

83% 85%Feb.

（vs.2019）

Mar.

104% 106% 108% 105%

61%

39%

Jan.

98%

79%

76%

58%

53%

92% 92% 93%

Apr.

May.

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
2023 Jan. 2023 Feb. 2023 Mar. 2023 Apr. 2023 May. 2023 June

number of guests

84%

88%

92%

91%

92%

90%

unit price

111%

112%

113%

116%

117%

116%

June

July

2022

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

2023

May.

(Forecast)

Q1

Q2
2022

2023

June

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Situation of External Environment Affecting Business Results～Higher costs such as surging raw material costs～

Costs are expected to increase by ¥14.0 billion vs. 2022 and ¥1.5 billion vs. the initial forecast, but price revisions willaddress the situation.
We will respond appropriately to the risk of additional cost increases by closely monitoring the situation.
Domestic（billions of yen）

Overseas

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Financial Highlights
2023 Q2
ResultYoYchanges(amount)

YoYchanges(%)

2023 Q2
ResultYoYchanges(amount)

YoYchanges
(%)

213.8

238.5

24.7

11.6%

(2.2)

3.5

5.7

ー

146.1

172.5

26.3

18.0%

(0.5)

5.0

5.5

ー

Japanese

109.7

121.1

11.4

10.4%

Japanese

0.1

4.5

4.4

3159.9%Overseas

30.0

42.2

12.2

40.6%

Overseas

0.2

(0.3)

(0.5)

ー

Restaurants

6.4

9.2

2.8

42.7%

Restaurants

(0.9)

0.8

1.7

ー

Food & Soft Drinks

57.5

55.4

(2.1)

(3.6%)

Food & Soft Drinks

(0.8)

0.5

1.3

ー

Japanese

46.3

42.4

(3.9)

(8.4%)

Japanese

(1.5)

(0.2)

1.3

ー

Overseas

11.2

13.0

1.8

15.9%

Overseas

0.7

0.7

0.0

1.1%

Real Estate

10.1

10.6

0.5

4.9%

Real Estate

2.6

1.9

(0.6)

ー

8.3%

Other・ General
corporate andintercompany eliminations

(3.5)

(3.9)

(0.4)

ー

2022 Q2（billions of yen）
ResultRevenue by Segment
Alcoholic Beverages

Other

0.1

0.1

0.0

2022 Q2（billions of yen）
ResultCore Operating Profit
by Segment
Alcoholic Beverages

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Financial Highlights
Food & Soft Drinks saw revenue fall following the transfer of the cafe business last year and the liquidation of avending machine operator subsidiary, but revenue overall rose due to the contributing effects of price revisions andinclusion of Stone in the scope of consolidation, not to mention higher sales volume of beer and RTD in Japan, therecovery in demand for beer halls and other restaurants, and strong sales of SPB* overseas*SPB: SAPPORO PREMIUM BEER

Reasons for changes in sales revenue

Alcoholic Beverages

Food & Soft Drinks

Real Estate(billions of yen)

= Increase

Japanese

Stone+8.2

Overseas

Japanese2023
Q2= Decrease
RTD+1.3

2022
Q2

PVS**
liquidation(0.8)

Transfer ofcafebusiness(1.7)**Public Vending Service company

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Financial Highlights
In real estate, there was a drop in profit due to HVAC work on the YGP* office space, but profit increased due to theincreased revenue effect of Alcoholic Beverages and the effect of structural reforms in the Restaurants and Food &Soft Drinks businesses.
*YGP: Yebisu Garden Place
Reasons for changes in core operating profit
Alcoholic Beverages(billions of yen)Japanese= Increase

Reorganize
RTD
locations+0.7= Decrease
VolumeIncrease+0.6

Food & Soft Drinks

Real Estate

Japanese（Structural reform effect+0.9）

2023
Q2

RTD+0.3

2022
Q2

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Action Plan
Plan to steadily disclose details of action plan

2023
Japan alcoholic
beverages

Increase beer sales(1-1)

2024★ Alcohol tax revisions

2025 to 2026
★ Alcohol tax revisions

Increase RTD sales(1-2)

Reorganize RTD production locations(2)Overseasalcoholicbeverages

Generate synergies through function integration(3-1)
Begin producing SPB (barrel-aged beer) in the U.S.(3-2)
Optimize global production and logistics(3-3)

Restaurants

Reduce unprofitable restaurants(4-1)
Shift focus to new formats(4-2)

Japan Food &Soft Drinks

Fundamental structural reforms(5)Overseas Soft
DrinksIncrease sales in countries with room for growth(6)Real Estate

Build an asset turnover business model(7)Increase value of core properties centered on YGP(8)Entire Group

Fundamentally reshuffle business portfolio(9)Fundamentally reshuffle by 2024 and review the business portfolio annually thereafter

Generate Group synergies around brand and connections with customers and communities(10)*We decided to establish a Group Strategy Committee to formulate Group strategy scenarios aimed at enhancing corporate value over the medium to long term(September this year).
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Alcoholic Beverages ～Japanese～
Revenue：121.1billions of yen（YoY+11.4billions of yen、＋10.4%）

Reorganize
RTD locations+0.7

Reasons for changes in core operating profit(billions of yen）

Core operating profit： 4.5billions of yen（YoY+4.4billions of yen）
Beer/Happoshu/
New genre
increase in volume

Beer/Happoshu/
New genre
Marginal profit
improvement

wine, spirits,
non-alcoholic
beverages, etc

RTD

Fixed costs,
etc.

Increasing beer sales (1-1) is proceeding steadily with a focus on Black Label,and efforts will continue with a view to the alcohol tax revisions in October✓ Situation of beer and beer-type beverage sales volume*Canned Black Label is up
year-on-year

YoY
YoY

％

％

Efforts to strengthen the Black Label brandCreating spaces for realexperiences

More digital communication
Deploy web content on
CLUB Black LabelOpen stands at music festivals
THE BAR FUKUOKA/OSAKA

YoYStrengthen marketing promotions( ％)Q1 2023

Q1 2022

Q1 2023

Q1 2022 Q1 2023
Beer, happoshu,
and new genre

Q1 2022Beer

Beer Can

Total demand(estimated by SH): (1%)

Total demand(estimated by SH): +6%

Total demand(estimated by SH): (6%)✓ share of beer sales

Sales volume of canned Black Label isincreasing steadily

Approx 1.7x
vs. 2014(growth rate of canned Black Label using 2014 as 1)（2022 Q2）（2023 Q2）

Total demand (estimated by SH):share of beer sales 49%✓ selling price excluding alcohol tax％ y-o-y

14Q2

15Q2

16Q2

17Q2

18Q2

19Q2

20Q2

21Q2

22Q2

23Q2

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Alcoholic Beverages ～Japanese～
Koime no Lemon Sour and Shin Lemon Sour are key drivers for increasing RTD sales (1-2)
Aim to achieve the initial forecast with focused investment in core brands andthe second release of beverages that go with meals, planned for autumn
Reorganization of production locations (2) is also on track to begin manufacturing in October(Sales amount basis）

YoY

Koime no Lemon Sour
Change in sales volume✓ Total for RTD (cans) + % y-o-y％

Koime no Lemon Sour
Trending strongly in thethird year after release
21Q2

22Q2

23Q2

RTD Total demand(estimated by SH): (2%)

Shin Lemon Sour

✓ Efforts to strengthen
manufacturing and development

Strong performance continues after 3/22 release(Highest sales volume ever for three months post release*)*Based on the average sales volume per 1 brand product for three months
after release, for nationwide year-round RTD brands released by Sapporo％

Reorganize RTD production locations
Making steady progress toward start ofproduction in October
Utilization of the product development AI
system “N-Wing★”
Released the first product developed
utilizing N-Wing★, “Otoko Ume Sour Tsu
no Shoppa Ume”

YoY

Otoko Ume Sour

Otoko Ume Sour
Change in sales volume
VS2014

Celebrating 10 years since its
release, but sales volumecontinues to steadily grow

Approx

13Q2

14Q2

15Q2

16Q2

17Q2

18Q2

19Q2

20Q2

21Q2

22Q2

2.7x

23Q2

(Limited release in April 2013, with yearlong release from September of the same year)

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Alcoholic Beverages ～Overseas～
Revenue：42.2billions of yen（YoY+12.2billions of yen、＋40.6%）

Reasons for changes in core operating profit(billions of yen）

Core operating profit： (0.3)billions of yen（YoY(0.5)billions of yen）

*SPB: SAPPORO PREMIUM BEER

Including Stone‘s loss and integration cost
(Because SPB* is in preparation for production)

CanadaThe U.S.

VietnamIncreased revenue and profit in Canada due to increased volume and improved unit prices
In the US, while SPB* remained strong and function integration is progressing steadily,
profit declined due to SPB* manufacturing preparations (3-2)
Preparations underway to begin manufacturing in 2nd half
Sales in each country

Canada％ y-o-y

The U.S.
(SPB*)％ y-o-yVietnam- The market recovered for commercial-use and otherproducts due to relaxed restrictions- Increase in total demand year-on-year- Company performance exceeded total demand witha strong performance of +6%- The market was weak due to impacts such as inclement weather
and inflation- Decrease in total demand year-on-year- SPB* remained strong, at +2% year-on-year✓ Status of synergies with Stone
Cost synergy
Steady progress has been made on function integration, within cost synergies generated
Preparations continue to start SPB* manufacturing within the year

Sales synergies
The USA and Stone sales teams have been integrated
Working with the Stone team, which is adept at organized retailing,
secured the sale of SPB* at a major US chain with around 1,600
locations(A large expansion compared to the previous scale of only a few hundred locations)- Strong performance for beer kegs
- Both the market and group results were sluggish for canned
beverages due to stagnancy of the Vietnamese economy and theimpact of inflation
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Alcoholic Beverages ～Restaurant～
Reasons for changes in core operating profit(billions of yen）

Revenue：9.2billions of yen（YoY+2.8billions of yen、＋42.7%）

Core operating profit： 0.8billions of yen（YoY+1.7billions of yen）

SLN
（non-consolidated
settlement）

Affiliatedcompanies
and others

The effect of structural reforms (4-1) implemented during the pandemic steadily contributed to profit,
and the company continued to be profitable✓ Trends in Core operating Profit and Number of Stores
Achieved profitability since 2022_Q2

0.4
1
2019

2020

2021

2022 Q1

0.1

0.1

2022 Q2

2022 Q3

0.32022 Q4

Digital efforts to enhance customer experience value and productivity
0.7

0.1
2023 Q1

2023 Q2

(1.0)

(5.0)

Bar graph: Trend in restaurant business core operating profit
Line graph: Trend in number of Sapporo Lion Group restaurants(change with 2019 as 1)

Cumulative sales results for existing locations by time slot for SLN Jan.-Jun. (compared to 2019)
Opening～14:59

111%

15:00～16:59

120%- In addition to managing customers’ reward points, these apps also send coupons and event
notifications- Surveys are collected and analyzed to enhance customer experience value

0.7
Reduced the numberof restaurants by 30%(4.2)

Efforts to enhance customer experience value
using membership apps

17:00～19:59

109%

20:00～Closed

92%

Sales were strong for the after-lunch to evening time slot due to capturing
the inbound tourist and senior customer groups

Efforts to enhance productivity(1) Introduction of the table-top ordering system (implementation rate of over 80% as of
Q2 2023)- Realizes optimization by reducing restaurant operation time and preventing errors- Enables customers to order at their preferred time, and reduces order-related work(2) Introduction of an AI telephone response system (started use of AI for responding tophone calls, and taking reservations and orders)- Reduced waiting time and workload for inquiries- Contributes to the customer service environment during working hours and further
enhances sales quality
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Food & Soft Drinks*Public Vending Service company～Japanese～

Revenue：42.4billions of yen（YoY(3.9)billions of yen、(8.4%))～Overseas～

Revenue：13.0billions of yen（YoY+1.8billions of yen、＋15.9%）

Core operating profit： (0.2)billions of yen（YoY+1.3billions of yen） Core operating profit： 0.7billions of yen（YoY+0billions of yen）
Reasons for changes in core operating profit(billions of yen）

Reasons for changes in core operating profit(billions of yen）
KPI cost structural reforms
Waste reduction +0.2
Improved mix +0.3

decrease involumeProduct
mix,etc

Decrease in vending
machine costs +0.3

PVS* liquidation +0.4

Fixed costs

structuralreform, etc

Effects of structural reforms contributed steadily to the bottom line
Take actions outlined in the medium-term management plan, and proceed tofundamental structural reforms (5)✓ Situation of waste reduction

Sales
increase

raw material
costs, etc

OthersSales grew steadily primarily in Singapore and Malaysia (6)Continue with initiatives to expand sales channels✓ Situation of sales expansion

Steadily lowering disposal costs with initiatives such as SKU reduction, etc.
(Sales amount on a local currency basis)
Singapore％ y-o-yTop market share in tea soft drinks （56%）

（百万円）

400

Market share is our estimate based on data reported by NielsenlQ

Reduced by ¥230
million y-o-y20002022年Q2
Q2 20222023年Q2
Q2 2023

Copyright © 2023,NielsenlQ

Malaysia％ y-o-y(Sales amount on a local currency basis)

Export％ y-o-y(Sales amount on a local currency basis)

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Real Estate
Revenue：10.6billions of yen（YoY+0.5billions of yen、＋4.9%）

Reasons for changes in core operating profit(billions of yen）

*YGP: Yebisu Garden Place

Impact of office HVAC work

Core operating profit： 1.9billions of yen（YoY+(0.6)billions of yen）
YGP*

SapporoOthers

While there was increased revenue from YGP* Center Plaza, there was a decline in revenue
due to HVAC work at the YGP* office space and a decrease in profit due to one-off costs
Proceeding with efforts to build an asset turnover business model (7) andincrease value of core properties centered on YGP* (8)✓ Status of YGP*✓ Working to improve value of core properties

YGP* Center PlazaYGP* received the highest rank of S under the “CASBEEWellness Office” certification****Number of visitors increased 1.5 to 2.0x since remodel**(**Remodeld in November 2022)

Note: This is the first such case for a rental office property in theTokyo metropolitan area having been built at least 20 years ago

YGP* office wing
Occupancy rate is as expected with decline due to HVAC work***
Seeking to maintain rent levels by increasing property value
(%)

100
90

YGP* office space occupancy rate
Occupancy rate is as
expected vs. the year-longplan of 79%****
An initiative in which a third party organization certified by the Institute for
Built Environment and Carbon Neutral for SDGs evaluates both “hard” and“soft” initiatives to support the maintenance and promotion of office
workers’ health and comfort.

✓ Status of building an asset turnover business model- Equity investments
Investments are being made after scrutinizing market conditions and deals

80
70***HVAC work scheduled to take place over about 10 years starting in 2022
(Adjustment of work areas implemented from 2021)

19Q1 19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 22Q4 23Q1 23Q2

- The REIT Preparatory Office was newly established in Marchand we plan to establish an investment advisory company aroundautumnCopyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

19/34

Entire Group
Proceeding with the review of the business portfolio (9), with the decision to dissolve Anchor Brewing
Sold off strategic holdings of shares for nine stocks, and demonstrated Group synergies foralcoholic beverages and real estate in the Ebisu area (10)✓ Review of the business portfolio - Dissolution of Anchor Brewing
Changes in the business environment have an adverse effect on businessWith the significant impact of the pandemic, sales declined significantly especially in the San
Francisco area where impact was prolonged✓ Balance sheet reforms
Sold off strategic holdings of shares of(reduced holdings ofstocksstocks)Sold amount: 929 million yen*The divested amount and number of stocks include SH and SB.

✓ Utilizing real estate for brand communicationof Japan alcoholic beverages

Efforts for improvement
Implemented various measures including launching new products, product renewals, and brandinvestment

Determined it would be difficult to improve profitability even from a
medium- to long-term perspective
Quickly decided to proceed with liquidation, and decidedly implemented
structural reforms「YEBISU BREWERY TOKYO」

Yebisu Brewery Tokyo will be opened in April 2024
This will restart beer brewing in the Ebisu area for the
first time in 35 years「YEBISU BEER HOLIDAY」

Provide a new Yebisu experience that can only beprovided in Ebisu, the birthplace of Yebisu beer

*SPB: SAPPORO PREMIUM BEER

Resolved to dissolve Anchor Brewing
Generating synergies with Stone, focused resources on SPB* and other growth areas
Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

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Action Plan KPI※1Forex assumption: ¥130

Q2results※2 Local currency basis (Singapore dollar)＊ to be disclosed in Q2 or fiscal year end financial results

Japan alcoholic
beverages

2023 Q2

2022

2023Plan

64%

70%
+12%

68%

71%
+9%

79%
+11%

（y-o-y）（VS 2022）

+23%

+74%

（y-o-y）（VS 2022）

Reinforcement of Beer / Improving Profitability of Beer-type Bev.

Increase beer sales: share of beer sales（1-1）-

RTD Business Growth and Production Streamlining, Etc.

-

RTD growth: RTD sales amount（1-2）

Stone Acquisition Synergy / SPB Growth

Sapporo brand volume （3-1~3）
Cost synergy

Real Estate

Revenue Structure Diversification

64%

88%

3.23million
cases

3.49million
cases

6.61million
cases

7.47million
cases

10.0million
cases

Overseas sales amount (6) ※2
Asset share of securitization business (7)Increase value of YGP** **YGP: Yebisu Garden Place

Rate of increase in average rent price (8)Drastic Reorganization of Unprofitable Businesses, Etc.（9）PVS*** liquidation effect +400 million yen
The effect from Anchor is expected to be felt from Q3***Public Vending Service company（y-o-y）

73%

Japan
Cost Structure Reforms（5）food & soft drinks
Expanding Sales and Increasing Logistics Efficiency

+9%

-

62%

（3-1~3） ※1

Overseas
soft drinks（y-o-y）

69%

Increase production efficiency: ratio of in-house production（2）Entire Groupmedium-termplan Target

2022 Q2

Improve profit margin: selling price excluding alcohol tax（1-1）

Overseasalcoholicbeverages

Full year（y-o-y +8%）

-

$1.5M

-

$4M

$23M

-

¥0.5billion-¥1.0billion¥2.0billion

+3%

+30%

（y-o-y）（VS 2022）-+5.1%（y-o-ｙ）

-

-

＊

3.7%

7.2%

19.2%

-

＊

-

+0.4%
（y-o-y）+2.5%（VS 2022）-¥0.4billion¥1.0billion（y-o-y）¥0.5billion（y-o-y）-

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

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Appendix

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

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Financial Indicator
Financial Targets
Q2results

ROE

Core operating profit(Approximation) *2023 Q2

2022

2023 plan

2026 Target

-

-

3.3%

3.3%

8.0%

(2.2)

3.5
billions of yen

9.3

13.5

25.0

billions of yen

billions of yen*
billions of yen

16.2%

About 10%billions of yen

71.1%
7.9

13.5

29.9

34.7

50.0

billions of yen

billions of yen

billions of yen

billions of yen

billions of yen

9.4%

About 10%

Overseas revenue
Average growth rate (CAGR)

Overseas revenue(Approximation) *Full year

2022 Q2

EBITDA
Average growth rate (CAGR)EBITDA(Approximation) *medium-termplan Target

33.0%

*

43.1

57.4

102.2

111.8

140.0 *

billions of yen

billions of yen

billions of yen

billions of yen

billions of yen*Approximation for achieving financial targets

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

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Financial Indicator
Target for core operating profit margin
Q2results

medium-termplan Target

Full year

2022 Q22023 Q2

2022

2023 plan

2026 Target

Alcoholic beverages in Japan

0.1%

3.7%

3.5%

5.0%

5.7%

Alcoholic beverages in Overseas

0.7%(0.8%)(0.4%)

0.6%

6.2%

Alcoholic beverages
in Restaurants(13.3%)

8.8%(3.3%)

2.1%

5.0%

Food & Soft Drinks
In Japan(3.2%)(0.5%)

0.9%

1.3%

3.8%

Food & Soft Drinks
In Overseas

5.9%

5.1%

3.6%

4.2%

5.0%

2.2%

1.9%

4.9%

4.6%

5.7%

Real Estate ※*EBITDA-based ROA

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

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Balance Sheets（billions of yen）

Total assets

End of 2022

2023 Q2

ChangeCash and cash equivalents

15.4

17.4

2.0

Trade receivables

96.6

82.6

(14.0)

Inventories

47.5

50.8

3.3

Other current assets

19.9

11.5

(8.4)

Fixed assets and intangible assets

138.4

145.5

Investment property

209.6

Goodwill
Other non-current assets
Total assets

Total liabilities and equity

End of 2022

2023 Q2

ChangeTrade payables

35.7

35.7

0.0

Short-term financial liabilities

86.5

49.2

(37.3)

Other current liabilities

97.3

98.2

1.0

Long-tern financial liabilities

155.4

183.8

28.4

7.1

Net defined benefit liabilities

3.5

3.4

(0.1)

211.0

1.3

Other non-current liabilities

93.6

102.6

9.0

33.8

35.5

1.8

471.9

473.0

1.1

77.8

90.1

12.3

Total liabilities
Equity attributable to ownersof parent

166.3

170.7

4.4

639.1

644.5

5.4

0.9

0.9

0.0

Total equity

167.2

171.6

4.4

Total liabilities and equity

639.1

644.5

5.4

1.4

1.3

－

241.9

233.0

(8.9)

Non-controlling interests

Debt-to-equity ratio (times) :Net
Balance of financial liabilities

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

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Status of Each Cash Flow（billions of yen）

2022 Q22023 Q2

ChangeChange (%)

CF from operating activities

5.5

24.6

19.1

346.7%

CF from investing activities(10.5)

(8.9)

1.6

ー

(5.0)

15.6

20.6

ー

3.5

(15.7)(19.1)ーFree CF

CF from financing activities＜Investment total（①＋②）＞➀ Capital expenditure (cash basis） ：billionbillion（Property, plant and equipment, intangible assets, investment property）＜Major items＞
・Alcoholic Beverages：¥(4.6)billion

Capital expenditures¥(10.5) billion

CF from operating
activities+¥24.6 billion

Japan：¥(1.8)billion

Other investments－Asset sales+¥1.6 billion

overseas：¥(2.4)billion

・Food & Soft Drinks：¥(1.1)billion
Japan：¥(1.0)billion

・Real Estate：¥(4.1)billion
Yebisu Garden Place and others

・Group-wide：¥(0.7)billion② Other investments－Asset sale ：billion（Stock sales, etc.）

Cash inCash out¥24.6
billion¥(8.9)
billionCopyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

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Alcoholic Beverages Data
Japanese※1：:Following the agreement of the Brewers Association of Japan,
there is no disclosure of the sales volume for the first quarter.
The sales volume for the first half and end of the fiscal year shall be disclosed.

Sales Volume:Beer (Japan) (※1)
①Beer (total)
Sapporo Draft Beer Black Label (total)
YEBISU (total)②Happoshu (total)③New genre beer products (total)
Beer, happoshu, and new genre （total ①+②+③)

2022Q22023Q2

1,144
607
263
72
569
1,785

1,262
689
265
66
483
1,811

(10,000 cases)
YoY
Change(%)
10.3%
13.4%
1.0%
(8.1%)(15.1%)
1.4%＜ Beer lineup sales volume (break down) ＞(Jan – Jun)

＜10-year change in composition ratio
of beer,happoshu, and new genre＞

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

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Alcoholic Beverages Data
Japanese
Sales:Beer (Japan)
Beer（billions of yen）
2022Q22023Q2

YoY
Change(%)

Happoshu

60.9
2.7

70.8
2.7

(1.9%)New genre

20.9

19.0

(9.2%)

84.6
11.1

92.5
12.4

9.3%
11.3%

Domestic wines

1.6

1.6

(1.3%)

Imported wines

3.2

3.0

(6.2%)

4.8
12.8

4.6
14.5

(4.5%)

113.2

123.9

9.4%

Beer, happoshu, and new genre
RTD

Wine (total)
Spirits and Shochu (total)
Total＜ Jan- Jun sales revenue ＞ (billions of yen)

16.2%

13.5%

＜ Jan- Jun sales breakdown by category ＞*Before subsidiary companies sales, elimination ofinter- company transactions and rebate deduction*From 2021, Hyosai Sour and 99.99 keg
are reclassified from Spirits to RTD.
Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

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Alcoholic Beverages Data
Japanese＜Changes in the amount of liquor tax per 350 ml＞
（yen）

77

70
63.35
Beer

54.25

Happoshu
New genre

46.99

37.8

RTD

✓ Beer and Beer
type beverages
yen
✓ RTD
yen

35

28

2020

2023

2026

（year）

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

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Alcoholic Beverages Data
Overseas(10,000 cases)

Sales Volume:Beer (International)

2022Q22023Q2

YoY
Change(%)

Overseas brand (※1)

623

800

28.4%

Sapporo brand

204

211

3.5%

①North America

827

1,011

22.3%

Sapporo brand

119

138

15.4%

②Other areas

119

138

15.4%

Total（①＋②）

946

1,148

21.4%

Sapporo brand Total

323

349

7.9%

※1：SLEEMAN, Anchor, Stone, etc.

＜ Overseas sales volume by brand (Jan-Jun) ＞＜ Overseas sales volume by Area (Jan-Jun) ＞（10,000 cases）（10,000 cases）

1,200

1,200
138

349
800

400

319

645

257

209

649

635

800

323

623

800

0

400

141

72

85

119

823

786

808

827

2019

2020

2021

2022

1,011

0
2019

2020

2021

Overseas brand

2022
Sapporo brand

2023

North America

2023

Other areas
Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

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Alcoholic Beverages Data
Restaurants
Restaurants＜Composition of Restaurants by Format＞
2022Q2

YoY

2023Q2

Change(%)

Revenue （billions on yen）

6.4

9.2

42.7%

Number of Restaurants

160

137

(14.4%)＜Trend in Revenue of Restaurants Businessand Number of Restaurants＞（Jan-Jun）（billions of yen）

137Outlets（Restaurants）＜Composition of Restaurants by Region＞

137Outlets
Bar graph: Trend in Restaurant business core operating profit
Line graph: Trend in number of Sapporo Lion Group restaurants

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

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Food & Soft Drinks Data
Japanese（billions of yen）

Sales:Food & Soft Drinks (Japan) (※1)

2022Q22023Q2

YoY
Change(%)

Soft Drinks

28.3

26.5

(6.3%)

Food（Lemon・Soups・Plant milk)

14.4

13.7

(4.5%)※1：Only domestic sales(Before Rebate subtracted from sales)＜ Japanese soft drinks POKKA SAPPORO Food & Beverage ＞
Sales composition by sales channel (Jan- Jun)

＜Japanese soft drinks Sales composition by genre (Jan- Jun)>

15.11 million
cases

15.11 million
cases

Overseas
Sales:Food & Soft Drinks (Overseas) (※2)
Singapore(billions of SGD)
Malaysia(billions of MYR)
International(billions of SGD)
※2： Before sales deduction, exclude OEM sales

2022Q2

7.4
3.7
2.7

2023Q2

7.6
4.0
3.0

YoY
Change(%)
3.8%
10.3%
13.0%
Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

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Real Estate Data
＜ Information about Investment property ＞

Real Estate(billions of yen)

＜ Major rental properties & occupancy rates：（Averages for 2023 Q2)>
Site area（㎡）
Yebisu Garden Place（1）Ginza Place
Strata Ginza（2）Floor area（㎡）

Occupancy rate（%）

No. of floors

400.0
300.0
200.0

56,943

298,00777

40 floors above ground,
5 below

645

7,350

90

11 floors above ground,2 below

1,117

11,411100

13 floors above ground,
1 below

100.0

385.7
209.6

382.9
203.2

0.0
As of December 31,

As of December 31,

2021

2022

Carrying value on the consolidated statement*1: The number of floors is for the office block only. Occupancy rates are for office areas only.
*2: Figures are for entire property. Sapporo owns 922m 2 of the site (sectional ownership) and 89.72% of the building(joint management)of financial position
Fair value(billions of yen)(billions of yen)＜Core Operating profit＞

2022 Q22023 Q2

Change＜EBITDA＞

2022 Q22023 Q2

ChangeYebisu Garden Place, etc.

2.1

1.5

(0.6)

Yebisu Garden Place, etc.

3.6

3.3

(0.3)

Other area &other operations

0.9

0.8

(0.0)

Other area &other operations

1.2

1.2

(0.0)

Hokkaido

0.2

0.2

(0.0

Hokkaido

0.5

0.5

(0.0)

Equity investment, etc

(0.6)

(0.6)

0

Equity investment, etc

(0.4)

(0.4)

(0.0)

Total

2.6

1.9

(0.6)

Total

5.0

4.6

(0.4)
Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

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As an intrinsic part of people's lives, Sapporo will contribute to
the evolution of creative, enriching and rewarding lifestyles.

This document was prepared for the purpose of providing information to serve as a reference for investors in making investment decisions and not
for the solicitation of investment or any other similar such actions.
The earnings forecasts and forward-looking statements contained in this document were prepared based on the judgment of the Company as ofthe date of this document and include potential risks and uncertainties.
Actual published future results may therefore differ materially from the content of this document.
The Company shall not in any way be responsible or liable for any losses or damages resulting from the use of the information in this document.

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

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