Financial Results
for the Nine Months Ended September 30, 2015 — Consolidated(Based on Japanese GAAP)
November 6, 2015

Company name

Sapporo Holdings Limited

Security code
Listings
URL

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

Representative
Contact

Tsutomu Kamijo, President, Representative Director and Group CEO
Toshihiko Umezato, Director of the Corporate Communications Department

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

Filing of quarterly financial report

November 13, 2015

Commencement of dividend payments-

Supplementary information to the quarterly earnings results

Available

Quarterly earnings results briefing heldYes(mainly targeted at institutional
investors and analysts)

1. Consolidated Financial Results for the Nine Months Ended September 30, 2015
(January 1 – September 30, 2015)(Amounts in million yen rounded down to the nearest million yen)

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

Nine months ended
September 30, 2015
Nine months ended
September 30, 2014

Operating income

Ordinary income

Net income

million yen%

million yen%

million yen%

million yen

388,147

2.3

5,991

(27.7)

4,938(35.6)

1,917-

379,380

2.7

8,291

(12.2)

7,667(13.5)(6,608)-

Note: Accumulated other comprehensive income
Nine months ended September 30, 2015

529 million yen

Nine months ended September 30, 2014

(3,059) million yen

Net income per
share

Diluted net income
per share

Yen

Yen

Nine months ended
September 30, 2015

4.92

-

Nine months ended
September 30, 2014(16.95)-1%

(2) Financial Position
Total assets

Net assets

Shareholders’equity ratio

Net assets per
sharemillion yen

million yen%

yen

September 30, 2015

606,051

156,82924.9

387.99December 31, 2014

625,439

160,00425.0

401.17

Note: Shareholders’ equity
September 30, 2015:
December 31, 2014:

151,149 million yen
156,303 million yen

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

Full year

Yen

yen

yen

Yen

yen

Year ended
December 31, 2014

—

0.00

—

Year ending
December 31, 2015

—

0.00

—

Year ending
December 31, 2015
(forecast)

7.00

7.00

7.00

7.00

Note: No changes were made to dividend forecasts in the nine months ended September 30, 2015.

3. Forecast of Consolidated Earnings for the Year Ending December 31, 2015
(January 1 – December 31, 2015)(Percentage figures represent year-over-year changes)
Net income
Net sales

Operating income

Ordinary income

Net income
per share

Year ending
December 31,
2015

million yen%

million yen%

million yen%

million yen%

534,700

3.1

14,300(2.9)

13,200

(9.4)

6,000

1,664.6

Note: Changes were made to earnings forecasts in the nine months ended September 30, 2015: Yes

2

yen

15.40

4. Other*For details, see "2. Other Information" on page 10.
(1) Changes in significant subsidiaries during the nine months ended September 30, 2015: None
(2) Simplified accounting: Yes*Use of simplified accounting methods and/or accounting methods specific to quarterly consolidated
financial statements(3) Changes in accounting policy, changes in accounting estimates, and retrospective restatement
1) Changes in accordance with amendments to accounting standards etc.: Yes
2) Changes other than 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
Note: For details, see (2) Changes in accounting policy, changes in accounting estimates, andretrospective restatement, in section “2. Other Information” on page 10 in the accompanying
material.
(4) Number of shares issued and outstanding (common stock)1) Number of shares issued at end of period (treasury stock included):
September 30, 2015: 393,971,493 shares
December 31, 2014: 393,971,493 shares
2) Number of shares held in treasury at end of period:
September 30, 2015: 4,400,360 shares
December 31, 2014:
4,348,456 shares
3) Average number of outstanding shares during the period:
Nine months ended September 30, 2015: 389,603,430 shares
Nine months ended September 30, 2014: 389,924,923 shares*Quarterly review status
The quarterly financial results are not subject to quarterly reviews pursuant to the Financial
Instruments and Exchange Act. The quarterly review of the quarterly financial results herein had
not been completed as of the date of this document.
Appropriate Use of Earnings Forecasts and Other Important Information
This document contains projections and other forward-looking statements based on information
available to the Company as of the date of this document. Actual results may differ from thoseexpressed or implied by forward-looking statements due to various factors.

3

1. Analysis of Operating Results(1) Consolidated Financial Results for the Nine Months ended September 30, 2015
In the first nine months of 2015 (January 1 – September 30), the Japanese economy
remained on a moderate recovery track, supported by the government's economic stimulus
measures. However, economic slowdowns overseas have recently clouded the outlook forthe rest of the year. Personal consumption was in a moderate rebound, but since summer
unseasonable weather and slow income growth have weakened consumer spending.
Amid this environment, the SAPPORO Group posted a year-on-year increase in sales,
despite a decline in shipments of beer and beer-type beverages at the core Japanese
Alcoholic Beverages business. Sales growth during the first nine months of the year was
driven by the Food & Soft Drinks business, which achieved year-on-year gains forshipments of its food and beverage products, and the International Business, whererevenues increased on a change in the accounting period of one overseas subsidiary andthe inclusion of another in the accounts for the first time.
Despite the increased sales volume at the Food & Soft Drinks business, operating income
was less than in the same period of the previous year owing to lower shipments at theJapanese Alcoholic Beverages business.
As a result of the above factors, in the first nine months of 2015, the SAPPORO Group
posted consolidated sales of ¥388.1 billion (up ¥8.7 billion, or 2%, year on year), operating
income of ¥5.9 billion (down ¥2.2bn, or 28%), ordinary income of ¥4.9 billion (down ¥2.7bn,
or 36%), and net income of ¥1.9 billion (compared with a net loss of ¥6.6 billion a year
earlier).
Segment information is outlined below. Consolidated subsidiary New Sanko Inc., which
was included in the Japanese Alcoholic Beverage segment last year, has been moved to the
Restaurants segment from the first quarter of 2015.

Japanese Alcoholic Beverages
We estimate that total domestic demand for beer and beer-type beverages in the first
three quarters of 2015 was less than in the same period of the previous year, owing in partto a sudden drop in temperatures during August, usually the hottest month of the year and apeak demand season.
Under such market conditions, the Japanese Alcoholic Beverage business continued its
efforts to realize management’s vision of “Seek to be No.1 by accumulating one-of-a-kindproducts” and achieve further growth by constantly providing customers with a unique value
proposal.
In the beer and beer-type beverages category, we followed up our April launch a newversion of canned Sapporo Draft Beer Black Label by expanding its footprint in retail storesnationwide, including the opening of “The Perfect Black Label Beer Garden” antenna shops
in Tokyo and Osaka for creating a buzz. As a result, canned beer sales have been4

particularly strong. In our Yebisu brand, in September we launched a limited-time release of
Kohaku Yebisu Crystal Amber to celebrate 10 years since the creation of the seasonal
Kohaku Yebisu line. The above efforts helped keep beer sale volumes in line with theprevious year. However, shipments of our beer and beer-type beverages fell short ofprevious-year levels as stiff market competition led to lower sales volume of new-genre beer
Mugi to Hop The gold and our Goku Zero happoshu.
In the RTD* category, popular Sapporo Otoko Ume Sour and Nectar Sour continued tosell well, and in August we introduced White Nectar Sour White Peach Puree. Overall,however, sales of our RTD beverages declined.
In the wine category, sales fell below the previous-year level on weak demand fordomestic mass-produced wines. However, shipments of our domestic flagship wine Grande
Polaire expanded sharply, as did sales of fine wines**, which were boosted by the start ofsales of Treasury Wine Estates’ Penfolds and Matua brands and of products fromchampagne Taittinger.
Sales of spirits increased year on year over the first three quarters of 2015, propelled bystrong sales of major brands, such as Dewar’s, Cutty Sark, and Martini.
Sales of Japanese liquors were largely the same as during the same period of theprevious year, with the main driver once again being Imo Shochu Kokuimo, Japan’s
top-selling blended imo shochu.*** The September launch of Umekaku Kajitsu Zitate no
Umeshu Cocktail Pink Grapefruits made a solid last-minute contribution to third-quarter sales.

As a result of the above, the Japanese Alcoholic Beverages business posted cumulative
first three-quarter sales of 2015 totaled ¥195.2 billion, down ¥8.1 billion or 4% year on year.
Operating income was ¥3.0 billion, down ¥2.9 billion or 50%, despite continued efforts tocontrol costs.
* RTD, or ready-to-drink, beverages are already-mixed, low-alcohol content cocktail-likebeverages that can be consumed as is immediately after opening.
** Fine wines are wines in the mid- and high-price range (¥1,500 and higher)*** Based on Intage SRI market research on combined blended imo shochu sales in the
supermarket, convenience store, and discount liquor store

channels from January 2013 to

December 2014.

International Business
In North America, the falling price of crude oil appears to have had a negative impact on the
Canadian economy while at the same time stimulating personal consumption in the UnitedStates. In that environment, we estimate that total beer demand in both the United States
and Canada was largely even with the levels seen in the first three quarters of 2014. In Asia,
meanwhile, the beer market appears to be continuing its recent steady growth, supported by
growing populations and firm economic growth.
In this environment, our International Business continued aggressive marketing activities
targeting the premium beer markets in North America and Southeast Asia, the two regions

5

where the business is concentrating its resources and efforts.
In Canada, SLEEMAN BREWERIES' continued aggressive spending on marketing of its
premium brands boosted shipments 2% (excluding Sapporo brand beer) over the level
achieved in the first three quarters of 2014. In the U.S. market, Sapporo USA’s expansion ofmarketing efforts targeting the Japanese-American market segment to the wider
Asian-American and general population market segments supported a 2% increase in
shipments of Sapporo brand beers. In the U.S. soft drinks business, Silver Springs Citrus
was adversely affected by the persistently high prices of oranges used to produce its juices,
but the addition of Country Pure Foods Inc. as a consolidated subsidiary in February
strengthened our position in the U.S. drink market. We also changed the Silver Springs
Citrus accounting period included in consolidated accounts.
The Vietnam business continued its aggressive marketing efforts to establish the Sapporo
brand in the local market, including large-scale promotional events and placement of
product displays at the entrance to bars and restaurants. However, shipments fell below theprevious-year level owing to intensified competition in the premium beer market. In South
Korea, continued efforts to strengthen sales of beer to both the household and commercial
markets by leveraging our local partner's sales network led to considerable expansion of
shipments over the same period of 2014. In Singapore, we achieved a strong year-on-year
gain in sales, highlighting the success of cooperative efforts with our local subsidiary to
expand sales channels to that country's household market. In Oceania, where our businesscenters on licensing agreements with local brewing partners, continued efforts to strengthenmarketing contributed to a solid growth in sales volumes over the previous year’s level.
These efforts of our overseas subsidiaries in various nations enabled the International
Business to achieve a solid 8% year-on-year increase in shipments of Sapporo brandproducts in overseas markets.
Overall, the International Business posted sales of ¥53.2 billion, up ¥16.2 billion or 44%
year on year. Despite the strong gain in sales, the segment again posted a small operating
loss (less than ¥0.0 billion), similar to the loss posted for the first three quarters of 2014.

Food & Soft Drinks
We estimate that overall demand for soft drinks in Japan in the first nine months of 2015
increased 1% over the level seen in the same nine months of 2014. In addition, we estimatethat total demand for lemon-based products (flavorings) and for instant soups (including
soups in a cup) was stronger than in the same period of 2014.
In this environment, the Sapporo Group’s Food & Soft Drinks business began its third yearof integrated operations as POKKA SAPPORO FOOD & BEVERAGE Ltd. The subsidiary isconcentrating investments on core brands, with a focus on its soup and lemon-based
product lineups, as it endeavors to strengthen and nurture its various brands.
POKKA SAPPORO’s domestic soft drinks business enhanced its lineup of lemon-based
products and core Kireto Lemon brand with the March introduction of an energy drink,
ENERGIE, and the September launch of INNER BEAUTE, a small bottled drink. These two

6new products, targeted at adult women, have created a new market for our lemon-based
drinks and, together with continued solid sales of our core Kireto Lemon (in bottles),contributed to strong overall sales growth for the Kireto Lemon brand. In the coffee drink
category, we reviewed price on some products sold via the vending machine channel helped
reverse a lengthy downward trend and boost category sales above the level seen in thesame period of the previous year. Other new product offerings in the first nine months of theyear included Nippon Oolong, an oolong tea made from domestic tea leaves, and Tsubu
Tappuri Zeitaku Mikan, a pulp-rich juice drink made from Japanese tangerines. The new
products received favorable reviews as the latest in the line of POKKA SAPPORO’s
distinctive and unique drink products, contributing to a 2% year-on-year increase indomestic shipments of the subsidiary's soft drink products.
Shipments of lemon-based products (flavorings) expanded 5% year on year. Our core
Pokka Lemon 100 brand continued to do well, and we enhanced the brand's lineup with theintroduction of Pokka Lemon Premium Sicilian Straight Lemon Juice for various uses andShio Lemon, a salted preserved lemon‒based flavoring capable of expanding a cook's
repertoire of lemon-flavored dishes.
In the instant soup category, looking ahead to the fall and winter seasons, in August we
introduced a renewed lineup of Jikkuri Kotokoto series of boxed instant soups as a special
treat for adult consumers. The new offerings delivered solid sales, contributing to the 16%
year-on-year increase in sales volume of our instant soups over the first nine months of ayear earlier.
In the domestic restaurants business, the Café de Crié coffee shop chain faced achallenging operating environment, include rising procurement costs and personnel
expenses. Nonetheless, the chain’s detailed seasonal menu revisions contributed to solid
comparable-store sales, leading to year-on-year sales growth for the chain as a whole.
POKKA SAPPORO’s overseas soft drinks business added to its top share in Singapore's
tea drinks market when its POKKA brand became the No.1 selling brand in the non-chilled
fruit juice beverages category.‡ In addition, we endeavored to raise our brand value in the
Singapore market, including through a campaign celebrating the 50th anniversary of thatnation’s founding in September. Seeking to solidify its position in an Indonesian market
expected to see dynamic growth in the future, Pokka Corporation (Singapore) Pte. Ltd.
formed a joint venture with PT DIMA INDONESIA to manufacture and sell soft drinks. In
June, the joint venture began construction of a new plant, which it plans to start up in 2016.
One last factor affecting the segment’s results in 2015 is the sale of its Hong Kong
restaurant business in December 2014.
As a result of above, the Food & Soft Drinks segment recorded sales of ¥99.3 billion in thefirst three quarters of the year, a ¥1.7 billion or 2% year-on-year increase. The segment’s
operating loss was ¥0.5 billion, an improvement on the ¥1.2 billion loss recorded a year
earlier.
* Market shares are based on data from Nielsen Singapore MarketTrack March 2015 (Copyright 2015, The Nielsen Company)

7

Restaurants
Japan’s restaurant industry continues to face a difficult operating environment, withprocurement costs and labor costs on an upward trend.
In this environment, the Restaurants business continued to pursue the fulfillment of its
philosophy of “Enhancing the Joy of Living” through constant efforts to deliver safe andsound food and service to customers while also striving to create restaurants that “deliver
100% satisfaction to customers.”
The business also is endeavoring to raise profitability by aggressively changing store
formats. Key developments in the first nine months of 2015 included the April openings ofthe first Hokkaido outlet of our popular Yebisu Bar chain and the Garden Terrace Lion at
Ritsumeikan University's Ibaraki campus in Osaka Prefecture’s Ibaraki City. Meanwhile,ongoing reform of the business’s profit structure led to the closing of 18 outlets, including
some unprofitable stores, in the first nine months of 2015. As a result, the number of outlets
operating at period-end was 168.
Overseas, the Restaurants business continues to create a chain of locally popular
restaurants in Singapore that are helping spread the reputation of our Ginza Lion brand to
the world. During the first nine months of 2015, the business opened two outlets and closed
one, bringing its total Singapore chain size to 15 stores as of end-September 2015.
Overall, Restaurants business sales in the first nine months of 2015 totaled ¥20.5 billion,
essentially flat with the first nine months of 2014. Segment operating income was ¥0.3 billion,a year-on-year increase of ¥0.2 billion, or 188%.

Real Estate
In Japan’s real estate industry, rebounding corporate profits stimulated demand for officerelocations and larger office spaces in central Tokyo. As a result, the Greater Tokyo officeleasing market saw a drop in vacancy rates, which in turn contributed to a moderate
recovery in rent levels.
Amid such favorable demand conditions, our real estate leasing business took advantageof the strong demand for office space by stepping up efforts to attract new tenants at its core
Yebisu Garden Place, which saw a temporary drop in occupancy rate following the loss of alarge tenant at the expiration of its lease contract in May 2014. As a result, the business wasable to raise the occupancy rate at Yebisu Garden Place while also increasing rents instages. It has also been successful in maintaining high occupancy rates at other properties.
At Yebisu Garden Place, which in 2014 celebrated the 20th anniversary of its opening, we
continue to make renovations that enhance the property’s value by raising conveniencelevels and strengthening its brand appeal as we endeavor to provide tenants and visitorswith enjoyable experiences in comfortable and pleasant surroundings. In June, we reopened
the renovated and remodeled "Glass Square" dining area on the building's B1 floor with theconcept of “Quality Daily Life,” bringing more energy to and reinvigorating the area.
Meanwhile, the new Ebisu First Square, which came on line in October 2014, has won

8high praise from tenants as a highly competitive office building with superior safety features,
comfort levels, and environmental performance. The property is making a solid contribution
to segment earnings in its first full-year of operation in 2015.
The real estate development business is making steady progress on construction of a
new building as part of the Ginza 5-chome Redevelopment Project. The building isscheduled to open for business in summer 2016, and we expect it will be a bustling center ofhuman activity and information exchange befitting its status as a new landmark in Japan’s
famous Ginza district.
Meanwhile, we continue to review and revise our property portfolio from a long-term
perspective. In December 2014, we sold our entire equity stake in Sapporo Sports Plaza
along with several lease properties. Then in February 2015 we sold our trust beneficiaryrights in the Shibuya Sakuragaoka Square office building.
As result of the efforts outlined above, the Real Estate business’s sales in the first ninemonths of 2015 totaled ¥15.2 billion, down ¥1.0 billion or 6% from the previous year’s result.
Operating income was ¥6.1 billion, down ¥0.1 billion or 2%.

(2) Review of Consolidated Financial Condition
Consolidated assets as of the end of the third quarter on September 30, 2015, totaled¥606.0 billion, a ¥19.3 billion decline from the end of the previous fiscal year (December 31,2014). Despite the addition of Country Pure Foods, Inc., to consolidated accounts, overall
assets declined owing to a decrease in notes and accounts receivable – trade and adecrease in land on the balance sheet following the sale of trust beneficiary rights in the
Shibuya Sakuragaoka Square.
Consolidated liabilities totaled ¥449.2 billion, a ¥16.2 billion decrease from December 31,
2014, primarily reflecting a decrease in commercial paper, liquor taxes payable andlong-term bank loans, which more than offset increases in short-term bank loans and net
defined benefit pension liabilities.
Consolidated net assets totaled ¥156.8 billion, a ¥3.1 billion decrease from December 31,
2014. The decline is primarily owing to the decrease in retained earnings due to the
distribution of year-end dividends, which combined to offset increases in unrealized holding
gain on securities and minority interests.

9(3) Outlook for the fiscal year ending December 31, 2015
As a result of taking into account the performance of each business, the forecasts for the fullyear have been revised as indicated below.

Revision of consolidated full-year earnings forecast for the fiscal year ending December 31, 2015

(January 1 to December 31, 2015)(millions of yen, except percentages and per-share data)
Net income
Operating

Ordinary

incomeincomeNet sales

per share
Net income(yen)Previous forecast (A)545,700

16,30015,200

8,000

20.53

Current forecast (B)534,700

14,30013,200

6,000

15.40

Change (B-A)(11,000)(2,000)(2,000)(2,000)-Percent change(2.0)%(12.3)%(13.2)%(25.0)%-

518,740

14,72814,565340

0.87

For reference:
Results for the fiscal year
ended December 31, 2014

2. Other Information(1) Changes in significant subsidiaries during the nine month ended September 30, 2015
Not applicable(2) Application of accounting methods specific to the preparation of quarterly
consolidated financial statements(Calculation of tax liabilities)
The Company calculates tax liabilities by producing a reasonable estimate of the effective
tax rate after applying tax-effect accounting to income before taxes and minority interests forthe fiscal year, which encompasses the nine months ended September 30, 2015, and thenmultiplying income (loss) before taxes and minority interests by this estimated effective tax
rate.

(3) Changes in Accounting Policy, Changes in Accounting Estimates, andRetrospective Restatement(Changes in Accounting Policy)“Accounting Standard for Retirement Benefits” (Accounting Standards Board of Japan ASBJ - Statement No. 26 of May 17, 2012) and “Guidance on Accounting Standard for
Retirement Benefits” (ASBJ Guidance No. 25 of May 17, 2012) have been applied, effectivefrom the first quarter of the current consolidated financial year ending December 31, 2015, in
accordance with the provisions of Article 35 of the Accounting Standard for Retirement
Benefits and Article 67 of the Guidance on Accounting Standard for Retirement Benefits. As
a result, the method for calculating retirement benefit obligations and service costs has beenrevised, and the method for attributing projected benefits to periods has been changed fromthe straight-line basis to the benefit formula basis. As to the discount rate, it used to be10

calculated based on the periods, comparable to employees’ average remaining years ofservice. Under the new accounting standard, however, the method of determining thediscount rate has now been changed to use a single weighted-average discount rate thatreflects the periods until the expected payment of retirement benefits and the amount ofprojected benefits for every such period.
In applying these retirement benefit-related accounting standards, etc. and in accordancewith the transitional treatment provided in Article 37 of the Accounting Standard for
Retirement Benefits, the effect of the change in calculation method for retirement benefit
obligations and service costs has been recognized by adjusting retained earnings at the
beginning of the current financial year ending December 31, 2015.
Consequently, as at the beginning of the current financial year ending December 31, 2015,
net defined benefit liability increased by ¥4,799 million, while retained earnings decreased by¥3,105 million. Furthermore, during the third quarter of the current consolidated financial year,
operating income, ordinary income and income before income taxes and minority interests
grew each by ¥126 million.

11

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

AssetsI Current assets
1 Cash and cash equivalents
2 Notes and accounts receivable - trade
3 Merchandize and finished products
4 Raw materials and supplies
5 Other
6 Allowance for doubtful receivables
Total current assets
II Fixed assets
1 Property, plant and equipment(1) Buildings and structures
Accumulated depreciation
Buildings and structures, net(2) Machinery and vehicles
Accumulated depreciation
Machinery and vehicles, net(3) Land(4) Construction in progress(5) Other
Accumulated depreciation
Other, net
Total property, plant and equipment
2 Intangible assets(1) Goodwill(2) Other
Total intangible assets
3 Investments and other assets(1) Investment securities(2) Long-term loans receivable(3) Other(4) Allowance for doubtful receivables
Total investments and other assets
Total fixed assets
Total assets

12

December 31, 2014

September 30, 2015

AmountAmount9,781
89,24522,431
14,10820,971(165)
156,372

10,225
69,13529,942
13,77615,161(67)
138,174

387,644(211,317)
176,327
224,180(180,302)
43,878115,290
2,617
36,088(23,606)
12,482
350,597

387,030(215,369)
171,660
228,201(183,329)
44,871
106,266
6,557
35,132(23,093)
12,038341,395

29,966
6,025
35,99133,142
11,42044,56359,9689,150
14,663(1,305)58,5999,079
15,499(1,260)82,477

81,918469,066
625,439

467,877
606,051

Liabilities
I Current liabilities
1 Notes and accounts payable - trade
2 Short-term bank loans
3 Commercial Paper
4 Current portion of bonds
5 Liquor taxes payable
6 Income taxes payable
7 Accrued bonuses
8 Deposits received
9 Other
Total current liabilities
II Long-term liabilities
1 Bonds
2 Long-term bank loans
3 Net defined benefit liability
4 Dealers' deposits for guarantees
5 Other
Total long-term liabilities
Total liabilities
Net Assets
I Shareholders' equity
1 Common stock
2 Capital surplus
3 Retained earnings
4 Treasury stock, at cost
Total shareholders' equity
II Accumulated other comprehensive income
1 Unrealized holding gain on securities
2 Deferred hedge gains
3 Foreign currency translation adjustments
4 Remeasurements of defined benefit plans
Total accumulated other comprehensive income
III Minority Interests
Total net assets
Total liabilities and net assets

13

December 31, 2014
AmountSeptember 30, 2015
Amount35,534
31,44630,00012,00033,602
724
2,115
9,650
56,696
211,771

38,357
57,684
11,00010,00020,121
4,259
3,152
8,209
59,089211,874

50,000124,110
4,510
32,33642,704
253,662
465,434

50,000103,862
8,507
32,85042,127
237,347
449,22253,88645,912
34,913(1,544)133,168

53,88645,91331,001(1,569)129,231

20,112
(0)
2,582
440
23,1353,700
160,004
625,439

21,7862(1,155)
1,285
21,918
5,679
156,829
606,051

(2) Consolidated Statements of Income(millions of yen)
Nine months ended Nine months ended
September 30, 2014 September 30, 2015
AmountAmount379,380
388,147
244,808
256,480
134,572
131,667

I Net sales
II Cost of sales
Gross profit
III Selling, general and administrative expenses
1 Sales incentives and commissions
2 Advertising and promotion expenses
3 Salaries
4 Provision for bonuses
5 Retirement benefit expenses
6 Other
Total selling, general and administrative expenses
Operating income
IV Non-operating income
1 Interest income
2 Dividend income
3 Equity in income of affiliates
4 Foreign exchange gains
5 Other
Total non-operating income
V Non-operating expenses
1 Interest expense
2 Foreign exchange losses
3 Other
Total non-operating expenses
Ordinary income
VI Extraordinary gains
1 Gain on sales of property, plant and equipment
2 Gain on sales of investment securities
3 Gain on sales of consolidated subsidiaries
4 Subsidy income
Total extraordinary gains
VII Extraordinary losses
1 Loss on disposal of property, plant and equipment
2 Loss on sales of property, plant and equipment
3 Loss on impairment of property, plant and equipment
4 Loss on devaluation of investment securities
5 Loss on sales of investment securities
6 Additional liquor tax paid and other
7 Compensation expenses
Total extraordinary losses
Income (loss) before income taxes and minority interests
Income taxes
Income (loss) before minority interests
Minority interests
Net Income (loss）
Income (loss） before minority interests
Other comprehensive income
Unrealized holding gain on securities
Deferred hedge gains (losses)
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests

14

24,52817,872
23,361
1,917
2,313
56,287
126,281
8,291

25,50917,82623,025
1,819
2,089
55,405
125,676
5,991

171
494
196
182
663
1,706

179
802
36
821
1,839

1,846
484
2,330
7,667

1,738
534
619
2,893
4,938

74
207
281

7,382
27
72
322
7,805

1,561
96
41
11
0
11,685
1,618
15,015(7,066)(245)(6,820)(211)(6,608)

862
4
3,298
1,757
140
6,062
6,680
4,906
1,773
(144)
1,917

(6,820)

1,773

3,315
(29)
475
3,760
(3,059)1,682(4)(3,766)844(1,243)529(2,925)
(133)

699
(169)

(３) Notes on the Going-concern Assumption
Not applicable(4) Segment Information
Ⅰ Nine months ended September 30, 2014 (January 1, 2014 – September 30, 2014)
1. Sales, income, and loss by reportable segment(millions of yen)
Reportable segments
Japanese
Alcoholic
Beverages

International Food&
Restaurants
Soft Drinks

Real
Estate

Total

Other *1

Total

Amounts
reported on
Adjustments thestatements
of income *2

Net sales(1) Operating revenues

203,416

37,02197,64020,573

16,282374,934

4,446

1,955

71

214

3

1,969

4,213

14,424205,371

37,09297,855

20,576

18,252

379,148

18,871

5,960

(77)

(1,253)

126

6,257

11,014208(2) Intra-group sales and transfers
Total
Segment income (loss)

379,380
18,638398,019
11,223-379,380(18,638)(18,638)

379,380(2,932)

8,291-

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

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

AmountTotal for reportable segments
Total other income
Unallocated corporate costs
Intra-segment sales
Operating income on the statement ofincome11,014208(2,835)(96)
8,291

3. Impairment loss on fixed assets or goodwill by reportable segment(Significant impairment losses on fixed assets)
Not applicable(Significant changes in the amount of goodwill)
Not applicable(Material Gain on negative goodwill)
Not applicable15

Ⅱ Nine months ended September 30, 2015 (January 1, 2015 – September 30, 2015)
1. Sales, income, and loss by reportable segment(millions of yen)
Reportable segments
Japanese
Alcoholic
Beverages

International Food&
Restaurants
Soft Drinks

Real
Estate

Total

Other *1

Total

Amounts
reported on
Adjustments thestatements
of income *2

Net sales(1) Operating revenues

195,261

53,232

99,341

20,56915,260383,665

4,482

2,157

76

208

4

1,898

4,344

14,593

197,41953,30899,54920,573

17,159388,009

19,076

3,007

35

(513)

364

6,145

8,969

74

(2) Intra-group sales and transfers
Total
Segment income (loss)

388,147
18,938407,085
9,043-

388,147(18,938)(18,938)

388,147(3,052)

5,991-

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

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

AmountTotal for reportable segments
Total other losses
Unallocated corporate costs
Intra-segment sales
Operating income on the statement ofincome8,969
74(3,023)(28)
5,991

3. Changes in Reportable Segment, etc.
(Changes in Reportable Segment)
Following the share transfer between the consolidated subsidiaries, the segment classification of New Sanko Inc., which formerly used to be classified in the“Japanese Alcoholic Beverages” segment, has now been changed to the “Restaurants” segment, effective from the first quarter of the current consolidated financial
year.
The segment information for the third quarter of the previous consolidated financial year has been restated, reflecting this segment change.
(Application of Accounting Standard for Retirement Benefits, etc.)
In accordance with the revision of the method for calculating retirement benefit obligations and service costs, as per the above Changes in Accounting Policy,
effective from the first quarter of the current consolidated financial year, the calculation method for retirement benefit obligations and service costs in each businesssegment has been revised accordingly.
As a result, compared to the old calculation method, a segment income of the “Japanese Alcoholic Beverages” was increased by 120 million yen in the third
quarter of 2015. The effect of the said revision on the segment income or loss in other segments than the “Japanese Alcoholic Beverages is immaterial.

4. Impairment Loss on Fixed Assets or Goodwill by Reportable Segment(Significant impairment losses on fixed assets)
In the “Japanese Alcoholic Beverages” business, the book value of the buildings and land has been revalued and lowered to the expected sales price, following thedecision to sell off idle real estate. As a result, an impairment loss of 1,688 million yen has been recognized in the third quarter of the financial year 2015.
(Significant changes in the amount of goodwill)
The International Business on September 25, 2015, acquired additional shares of SAPPORO VIETNAM LTD., making the company a wholly owned subsidiary. The
transaction increased goodwill included on the balance sheets as of the end of the third quarter of the current consolidated financial year by 1,663 million yen.
(Material Gain on negative goodwill)
Not Applicable16

(5)Notes on Significant Changes in the Amount of Shareholder's Equity
Not applicable(6)Subsequent Events
Not applicable17