2015
Sapporo Group Business Results Presentation
for the Three Months Ended March 31, 2015

May 8, 2015

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

Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

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Contents

1. First-Quarter 2015 Topics

2. Overview of First-Quarter 2015 Results

Reference
1 Sapporo Group Management Plan 2015 - 2016
2 Supplementary Information to First-Quarter 2015 Results (Overview by Business Segment)

Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

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1. First-Quarter 2015 Topics

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First-Quarter 2015 Group Topics
Reaction to the last-minute demandTotal demand for beer and beer-type beverages in Japan were 90% of the same period a year ago,
when there was the last minute surge in demand before the consumption tax rate increase.
Further, the Group’s beer and beer-type beverage sales volume was lower than total demand, ascompetition intensified in new genre and functional beer-type products

Expanding the strengths
Sales of standard beer Sapporo Draft Beer Black Label exceeded total demand on the back of strong
commercial-use sales
While sales of domestic soft drinks industry was 96% year on year, lemon-based drinks, which is ourstrong point, grew significantly (up 37% y-o-y). As a result, domestic soft drinks sales of the Groupremained at the same level as the previous year’sConstruction work started for Ginza 5-chome redevelopment project for completion in 2016

Select-and-focus approach
Continuing with the select-and-focus approach. Sold Shibuya Sakuragaoka Square reflecting thefavorable market conditions and future profitability
Started consolidating Country Pure Foods, Inc. from February, strengthening U.S. soft drinks
business
Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

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First-Quarter 2015 Topics (1)Japanese Alcoholic Beverages
 Sales volume of beer and beer-type beverages (beer, happoshu and new genre) down 17% y-o-y (total
demand down 10% y-o-y)Beer and beer-type beverages sales volume Y-o-Y change (Jan-Mar)
Total
demandSapporo*Black Label and Yebisu are compared with beer total
demand. Mugi to Hop is compared with the total
demand for new genre<3 core brands> status – Reaction to last-minute demand“Yebisu” posted strong sales, while “Black Label”
exceeded total demand on the back of strong commercialuse sales“Mugi to Hop The gold” sales were below total demand
due to the last-minute demand and relaunch of theprevious year
Net sales(￥bn）

Beer, happoshu,
new genre

Yebisu brandtotalBlack Labeltotal

Mugi to Hop
The gold(10,000 “Beer,” “Happoshu + New genre” breakdown
cases)
2013 = 100

100

121

100

2014 1Q

2015 1Q

Beer

29.9

27.8

Happoshu

0.9

3.6

New genre

18.3

10.7

Total

49.2

42.2

<Status of new offerings>
Goku Zero Declined as the needs were dispersed in functionality
beer-type beverages
From Feb: The new, improved Goku Zero offers new value as abeverage using zero artificial sweeteners
Launch ScheduleMay 26

Beer sales volume
Breakdown for total demand(Sapporo estimate)

Happoshu, new genre sales volume

New genre sales rosesignificantly in 2014
due to the last-minutedemand surge and
Goku ZeroFirst-ever nonalcoholic with food forspecified health use
Sapporo Plus

5/22

Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.
Breakdown for the industry (est.)

First-Quarter 2015 Topics (2)International
 Sales, which were affected by the intensified competition in Canada and unseasonal weather in
U.S. in 2014, normalized in 1Q. Sales grew strongly.
(Jan-Mar)North
America

SLEEMAN Net Sales (before elimination of inter-company
transactions) in Local Currency (Jan-Mar)

Sapporo USA Net Sales (before elimination of inter-company
transactions) in Local Currency (Jan-Mar)SLEEMAN (Canada)

Unit sales (YoY)
2014
2015
Competition intensified for value
SLEEMAN*1
98% 103%
products in 2014. Price is on the rising
trend for value products this year
Approx.
Approx.
Canada total
Net sales were up 8% v/s 201497%99%
demandup 7% v/s 2013
*1 Excluding Sapporo brandSales volume y-o-y: Premium – up 6%
Value – up 2% Sales volume (YoY) 20142015

Sapporo USA (U.S.)Shipment delays occurred due to thecold wave in 2014. It was normalized
this year
Net sales were up 20% v/s 2014
up 9% v/s 2013

Sapporo Vietnam
Vietnam2013 = 100

Sales Volume in Vietnam (Jan-Mar) Active sales promotion investment
to build brand and expand sales
channels
 Sales volume up 8% y-o-y(domestic)

2012

2013

2014

2015

Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

 Sapporo brand is exported to 11
countries and regions including 7
ASEAN countries

Sapporo USA*2

87%

Total U.S. demand: flat

*2 Sapporo brand

118%

Strengthening U.S. Soft Drinks
business
Newly consolidating Country Pure
Foods (CPF) from Feb (a 51% stake) Together with Silver Springs
Citrus (SSC; a 51% stake), thesales are about ¥30 billion (fiscal
year 2014 results)
 In 1Q, ingredient cost rose sharply
at SSC due to poor harvest oforanges in Florida→Diligently working on measures
including review of selling price

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First-Quarter 2015 Topics (3)Food & Soft Drinks
 Net sales in Japan at the same level as 2014 led by solid sales of lemon-based drinks andunsweetened tea drinks<Overview of main categories> Domestic soft drinks: Sales volume of 9.20 million cases (y-o-yDomestic Food and Soft Drinks Jan-Mar 2015
100%, the same as the previous year), exceeding total demand
Cumulative Sales Volume Y-o-Y(96% y-o-y) led by lemon-based drinks and unsweetened tea
Total
POKKA SAPPORO
demand(green and oolong tea) despite the reversal of the previous
year Lemon-based drinks: Up 37% y-o-y, as sales expanded with
contributions from Pokka Poka Lemon and new product Kireto
Lemon ENERGIE Lemon-based products: Proposed new uses of lemon withintroduction of Shio Lemon. Down 1%.
Lemon-based
Instant soup (incl.
Domestic soft
products
soups in a cup)
drinks Instant soup: Enhanced lineup of with Jikkuri Kotokoto(flavorings)
Kongari Pan series, etc. Up 12%
Total demand data: Source – Total for SM CVS formats by Intage SRI(nationwide retailer panel

Domestic Food and Soft Drinks: POKKA SAPPORO Food & Beverages Ltd.

research)
Jan–Mar 2015 y-o-y comparison of cumulative sales amount for the lemon-based products market(Sapporo’s definition) and instant soup market

Nippon Oolong
using Japanese tea
leavesOverseas Soft Drinks: POKKA Corporation (Singapore) Pte.
Ltd.
 Both domestic sales in Singapore and exports grew.
Up 7% y-o-y in local currency

To establish a manufacturing and sales company inIndonesia
Agreed to form a joint venture with PT DIMA INDONESIA（ a 50% stake)Planning a factory for products to be sold in Indonesia
To obtain Halal certification
Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

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First-Quarter 2015 Topics (4)Restaurants
Restaurants business in Japan
Jan-Mar 2015 sales in Japan at the same level as 2014
Trends of net sales and number of outlets
in Japan

2010
1Q

2011
2012
2013
2014
1Q
1Q
1Q
1Q
■Sales －number of outlets

2015
1Q

 Sales for all outlets declined as
operation of the key restaurants in
Ginza and Shimbashi weresuspended due to redevelopment of
the buildings they are housed Jan-Mar 2015 sales at existing outlets
were up 6% y-o-y Rise in raw ingredients and personnel
expenses, driving forward closure of
unprofitable restaurants

Overseas restaurants business Locations operating as of Mar 31, 2015
in Singapore: 15 outlets
・Ginza Lion (beer hall): 2 outlets
・Tonkichi (pork cutlet): 4 outlets
・Domani (Italian): 1 outlet
・ Rive Gauche (patisserie): 8 outlets
 Opened new outlet of
Rive Gauche

Real Estate
Yebisu Garden Place Leasing to a new tenant, after the end of the lease
contract with a large tenant at the end of May 2014,
progressed smoothly and occupancy rate has
recovered Promotion value increase• Opened a movie theater with a new concept in March• Refurbished the first basement food facility to reopenin JuneYebisu Garden
CinemaExterior design of Ginza 5chome redevelopment

Ginza 5-chome redevelopment project

Yebisu Garden Place Construction started in March for opening in Summer 2016
Practicing select-and-focus approach: Sale of Shibuya•Redevelopment project for the site facing Ginza 4-chome, theSakuragaoka Squarecenter of Ginza• Sold trust beneficiary right taking into consideration current real
•Above the ground 11, below 2 Floor space 4,232㎡⇒7,082㎡
estate market and future profitability•Commercial facility, which will be the new landmark of Ginza• Selling price was ¥17.0 billion and ¥7.3 billion was recorded as
and information dissemination center
extraordinary profit
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2. Overview of First-Quarter 2015 Results

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Overview of First-Quarter 2015 Results (1)Ｓｐｅｃｉａｌ Ｆａｃｔｏｒｓ＜Net Sales＞＜Operating Income＞＜Japanese Alcoholic Beverages＞＜Restaurants＞＜International＞

Change in reportable segment : New Sanko Inc.
 Change from Japanese Alcoholic Beverages to Restaurants:⇒ approx.+¥0.2 billion（2014 result has been retroactively adjusted
to reflect this change. The effect of operating income is immaterial)＜International＞


Account period change: Silver Springs Citrus
 SSC was consolidated for six months due to the change in the consolidation
period ⇒ approx.+¥2.7 billion(Foreign exchange impact+ ¥0.4 billion) Total +¥3.1 billion

Account period change: Silver Springs Citrus● SSC was consolidated for six months due to the change inthe consolidation

＜Real Estate＞


Newly consolidation: Country Pure Foods
 Newly consolidation of CPF was started in February 24.
⇒ approx.+¥1.4 billion (Including foreign exchange impact +¥0.2 billion)＜Food & Soft Drinks＞


Sale of Overseas restaurants business Sold restaurants business in Hong Kong in December 2014
⇒ approx.-¥1.3billion（The effect of operating income is immaterial.）＜Real Estate＞


Sale of some rental properties and sports facilities operator business Sold sports facilities operator business in Dec.2014
 Sold some rental properties in Dec. 2014
 Sold trust beneficiary right of Shibuya Sakuragaoka Square in Feb. 2015
⇒approx. Total -¥0.5billion(Breakdown: Sports-¥0.3 billion; Rental properties- ¥0.2billion）
Copyright, 2014SAPPORO HOLDINGS LTD. All rights reserved.

Newly consolidation: Country Pure Foods
 Newly consolidation of CPF was started in February 24.
⇒ approx. Total -¥0.2 billion

Sale of some rental properties and sports facilities operator
business
 Sold sports facilities operator business in Dec.2014
 Sold some rental properties in Dec.2014
 Sold trust beneficiary right of Shibuya Sakuragaoka Square inFeb. 2015⇒approx. Total -¥0.1billion<The Effects of Changes in Foreign Exchange Rates>

Net Sales: approx.+¥1.9 billion(Breakdown: International +¥1.5bn; Food & Soft Drinks +¥0.4bn）

Operating Income: Slightly negative
Average rates
during the period(Jan-Mar.)2014 1Q

2015 1Q

US＄

102.78119.17

CAN＄

93.10

96.00

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Overview of First-Quarter 2015 Results (2)(billions of yen)2014 1Q

2015 1Q

YoY changes(amount, %) Net sales: down Y-o-Y

Japanese Alcoholic
Beverages

59.0

51.2

(7.8)

(13.3)%

beer-type beverages significantly declined from the previous
year due to the impact of the last-minute surge in demand in
March 2014 ahead of the rise in consumption tax in April.
・International: Sales increased year on year, as SSC wasconsolidated for six months due to the change in the
consolidation period and new consolidation of CPF wasstarted in February 24.
・ Foods & Soft Drinks: Net sales declined due to the impact of
the sale of our restaurant business in Hong Kong last year
despite overseas soft drinks and domestic restaurants
business sales increased

International

10.4

16.0

5.5

53.3%

Food & Soft Drinks

29.8

29.3

(0.4)

(1.7)%

Restaurants

5.8

5.8

0.0

0.4%

Real Estate

5.6

4.7

(0.8)

(15.7)%

Other

1.3

1.3

(0.0)

(0.3)%

Consolidated net sales

112.0

108.4

(3.6)

(3.2)%

Operating income before goodwill
amortization

(0.７)

(3.3)

(2.6)

―

Japanese Alcoholic
Beverages

(1.1)

(2.3)

(1.1)

―

International

(0.8)

(1.2)

(0.3)

―

(0.3)
(0.5)

(0.6)
(0.6)

(0.3)
(0.1)

―
―

Food & Soft Drinks

(0.7)

(1.2)

(0.4)

―

Restaurants

(0.3)

(0.3)

(0.0)

―

Real Estate

2.2

1.7

(0.5)

(24.5)%

Other

0.0

(0.0)

(0.0)

―

(0.8)

(0.8)

0.0

―

Consolidated operating income

(1.7)

(4.3)

(2.6)

―

Consolidated ordinary income

(2.3)

(4.5)

(2.2)

―

Consolidated net income

(3.8)

0.8

4.6

―

・Japanese Alcoholic Beverages: Sales volume of beer and Operating income: down Y-o-Y
・Japanese Alcoholic Beverages: Loss increased due largely
to sales decline in beer and beer-type beverages despite
cost reduction efforts primarily targeting sales promotion cost・International: Loss expanded due to the steep rise in cost oforanges at the U.S. soft drinks business・Food & Soft Drinks: Sales volume of domestic soft drinks wasin line with the previous year, but loss expanded due tohigher raw ingredients cost
・Real Estate: Profit declined due to property sales in 2014 and2015 as well as temporary decline in occupation rate ofYebisu Garden Place Net income: up Y-o-Y
Extraordinary income: ¥7.3 billion from the sale of trust
beneficiary right of Shibuya Sakuragaoka Square this year
Extraordinary loss: Reversal of ¥2.3 billion in cost for
demolition, removal, etc. in the Sapporo Ginza Building
redevelopment project in 2014
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North America, other
VietnamGeneral corporate

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Overview of First-Quarter 2015 Results(3)Factors Contributing to Change in Net sales
Increase(billions of yen)

Decrease2014 1Q
Consolidated
Net sales

112.0

2015 1Q
Consolidated
Net sales

Beer and beergenre sales
volume decline
ＳＳＣ
account periodchange:3 months

(6.9)

ＣＰＦ
newly
consolidation
Other alcoholic
beverages sales
volume decline(0.9)

Foreignexchange

(0.2)

1.4

2.7

0.４

0.４

(1.3)

Overseas
Foreign Soft drinks
Sale ofSales
exchange
increase restaurants
business inHong Kong

Sale of somerentalproperties andsportsfacilities
operatorbusiness

(0.5)

(0.4)
Sales decline:
YGP, Ginza

1.5

North America
・Beer +0.4
・Soft drinks(0.6)

(7.8)

5.5

(0.4)

(0.8)

Japanese Alcoholic
Beverages

International

Food & Soft Drinks

Real Estate

Copyright, 2014SAPPORO HOLDINGS LTD. All rights reserved.

108.4
（3.6）

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Overview of First-Quarter 2015 Results (4)Factors Contributing to Changes in Operating Income
2014 1Q
Consolidated
Operating income

Increase(billions of yen)

Decrease2015 1Q
Consolidated
Operating income

Beer andbeer-genre
sales volume
declineNorth America North America
Increase inHigherVolumeingredients cost

(1.7)
Other Costs
reduction
Sales
promotion
costs
reduction

(3.0)

0.1

0.８

0.８
0.2
Production costs
reduction(incl. foreignexchange)

0.2

(0.3)
(0.2)

Other

・ＣＰＦ
newly
consolidation
・ＳＳＣ
account
periodchange:3 months

(1.1)

(0.3)

Japanese Alcoholic Beverages

International

Copyright, 2014SAPPORO HOLDINGS LTD. All rights reserved.

Increase inproduction
cost

(0.3)

Sale of somerentalproperties
and sports
facilities
operator(0.2) business

Increase in (0.1)
vending
machine cost

(0.4)
Sales decline:
YGP, Ginza

(0.4)

(0.5)

Food & Soft Drinks

Real Estate

(4.3)
（2.6）

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Overview of First-Quarter 2015 Results(5)Implementation Status of Strategic Investments(Including Ordinary Capex, on a cash basis)

Credit Ratings<Credit rating by JCR>①<Capital expenditure and lease fees>
Consolidated total: Approx. ¥9.4 bn

 As of May 8, 2015: A- (stable) Property, plant and equipment, intangible assets, lease fees, etc.
Major items:<Credit rating by R&I>
 Ojima factory(Japanese Alcoholic Beverages): approx.¥0.3
billion, Nagoya factory (Food & Soft Drinks): approx.¥0.3
 As of May 8, 2015: BBB+ (stable)billion , Ginza 5-chome redevelopment project (Real Estate):approx.¥3.7 billion, Ebisu First Square (Real Estate):approx.¥1.5 billion,
Direction of Long-Term Strategic Investments
Yebisu Garden Place(Real Estate): approx.¥0.7 billion,
 We will continue to actively carry out strategic investments for
Lease fees((Food & Soft Drinks):approx.¥0.8 billion
growth.

② <Other investments>
Consolidated total: Approx. ¥ 8.4 billion

 The scale of strategic investment from 2012 to 2016 isanticipated to be from ¥150 billion to ¥200 billion (in principle,
funded from accumulated operating cash flow).

 Long-term prepaid expenses, investment securities, compensation
expenses, etc.
Major items:
 Long-term prepaid expenses (Japanese Alcoholic Beverages, Food &Soft Drinks) : approx. ¥1.5 billion
Consolidated subsidiaries :approx.. ¥5.8 billion,
Investment securities, etc.: approx. ¥1.0 billion– Including ordinary capex (approx. half of strategic
investments)– 2012 strategic investment total: Approx. ¥65.7 bn– 2013 strategic investment total： Approx. ¥ 23.5 bn– 2014 strategic investment total： Approx. ¥29.5 bn– 2015 strategic investment total：Approx. ¥17.8 bn①＋② < Jan-Mar 2015 strategic investment total (incl. ordinary capex, on a – 2015 plan: ¥35.1 bn (capex ¥19.8 bn, other investments ¥15.3bn)
cash basis) > Approx. ¥17.8 billion
Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

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Reference 1: Sapporo Group Management Plan
2015-2016*There has been no changes to the figures announced on
February 12, 2015.

Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

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2015-2016 Targets Based on Current Businesses
Management plan2014 results2015 targets

2016 targets

New management
framework

Consolidated net sales*incl. liquor tax¥518.7 bn¥545.7 bn¥579.5 bn¥600.0 bn¥18.4 bn

¥20.7 bn¥28.0 bn

Consolidated operating
incomeConsolidated ordinary
income¥14.7 bn

¥16.3 bn

¥23.5 bn

¥14.5 bn

¥15.2 bn

¥22.1 bn－

Consolidated net income¥0.3 bn¥8.0 bn¥11.4 bn－

Consolidated operating
income(before goodwill amortization)

D/E ratio

1.5 times

1.3 times

1.2 times

2.7 ％

7.8 ％

9.6 ％

ROE
(before goodwill amortization)¥40.0 bn

Around 1:1

8% or higher
ROE

0.2 ％

5.0 ％

6.9 ％

*Assumed exchange rates: 2015-2016: US$ = ¥113.00, CAN$ = ¥99.00
Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

16/22

2015-2016 Targets Based on Current Businesses by Segment
Management Plan

2014 results2015 targets

2016 targets¥281.8 bn¥290.2 bn¥305.0 bn¥49.6 bn

¥67.8 bn

¥76.0 bn

¥133.4 bn¥133.7 bn¥141.7 bn

Restaurants¥26.3 bn

¥27.2 bn

¥27.5 bn

Real Estate¥21.5 bn

¥20.8 bn

¥22.8 bn

¥5.9 bn¥6.0 bn¥6.5 bn¥518.7 bn¥545.7 bn¥579.5 bn¥10.2 bn

¥9.5 bn¥12.0 bn

International¥0.1 bn¥1.0 bn¥2.6 bn

Food & Soft Drinks¥0.1 bn¥0.7 bn¥1.4 bn

Restaurants¥0.2 bn¥0.9 bn¥1.3 bn

Real Estate¥7.6 bn¥7.9 bn¥9.9 bnOther¥0.1 bn¥0.2 bn¥0.2 bn

Eliminations and Corporate¥(3.9) bn¥(3.9) bn¥(3.9) bn

Consolidated total¥14.7 bn

¥16.3 bn

¥23.5 bn

¥18.4 bn

¥20.7 bn¥28.0 bn

Japanese Alcoholic Beverages
International

Net sales

Food & Soft Drinks

Other
Consolidated total
Japanese Alcoholic Beverages

Operating income

Consolidated total(before goodwill amortization)*Assumed exchange rates: 2015-2016: US$ = ¥113.00, CAN$ = ¥99.00
Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

17/22

Reference 2: Supplementary Information toFirst-Quarter 2015 Results (Overview by Business Segment)

For information on the profitability of each business, please see theSupplementary Information to our Earnings Report.

Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

18/22

Reference Material (1) Japanese Alcoholic Beverages
Jan-Mars sale value(billion yen)

Wine
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0

2.3

Japanesewine
2.6

Imported
wine
2.7

3.1
1.7

1.4
1.2
1.0
0.8
0.6
0.4
0.2
0

2.8

1.6

1.4

1.5

1.0

1.1

1.1

1.4

1.2

2011

2012

2013

2014

2015

1.2

Spirits

1.1

2014

2015

3.5

3.3

 Spirits: The world’s No. 1 rum brand Bacardi,
including Bacardi Mojito were well received.
Net sales fell 10% year over year.

1.0

0.2

2011
4.0

2012

2013

Japanese liquor 2.9

3.0

2.2

2.0

1.7

1.0
0
1.2
1.0

2011

RTD

0.8

2012

2014
0.9

0.8

2015
0.9

0.5

0.6
0.4

2013

 Net sales declined due to the impact of the lastminute surge in demand last year but sales of
the core products in each category grew Wine: In Japanese wine, we launched Grande
Polaire Azumino Ikeda Vineyard from the Grande
Polaire premium wine series, made with 100%
Japanese grapes, which was well-received.
Net sales fell 9% year over year.

1.2
0.9

Progress in diversified product offerings

0.3

 Japanese liquor: Blended Imo Shochu Kokuimo,
the top-selling product in the category. Sales ofUmeshu increased 11% on year.
Net sales fell 6% year over year.
 RTD: Otoko Ume Sour, a collaboration product,continues to be strong.
Net sales fell 2% year over year.

0.2
0

2011

2012

2013

2014

2015

Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

19/22

Reference Material (2) International
Profile of Country Pure Foods
CPF
profileStrength in commercial-use sales to noncommercial organizations such as educational andmedical institutions mainly in the U.S. and it is also
engaged in production of private brand products for
major retail chains and contract manufacturing for major
beverage manufacturers

Location

Akron, OhioBusiness

・Manufacturing and sale of commercial-use foods(school and hospital meals) and fruit juice
・Manufacturing and sale of private brand fruit juice forretail chains・Contract manufacturing of fruit juice for beverage
manufacturers

Production 4 factories (Akron, Ohio; Deland, Florida; Ellington,
bases
Connecticut; and Houston, Texas)
Net sales

Overseas expansion of SAPPORO brand
Trend of overseas sales volume of SAPPORO brand products (Jan-Mar)(10,000 cases)

※

2010

2011

2012 20132014※Impacts of2014 cold
wave in U.S.
and Shorter
Tet (New
year’sholiday)sales
season in
Vietnam

2015

Sales Breakdown by Geographic Area(Jan-Mar)
2010

2015
Oceania, etc.

Oceania, etc.

18.3 billion yen (fiscal year ended December 2013)
Asia
Asia
North
America

North
America

North America: Canada, U.S.
Asia: Vietnam, Singapore, South Korea, etc.
Oceania, etc.: Australia, Europe, etc.
Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

20/22

Reference Material (3) Food & Soft Drinks, Real Estate
Food & Soft Drinks■ Restaurants (Domestic): POKKA CREATE Co., Ltd.

■ Soft Drinks (Overseas): POKKA Corporation (Singapore) Pte. Ltd.
＜Enhancing production capabilities towards sales expansion> CAFÉ de CRIÉ celebrated its 20th anniversary and thecompany has been actively pursuing opening new outlets in
new areas and proposal of new menu items.

Completed construction of the POKKA Malaysia factory and started

 Net sales rose 10% y-o-y

production in October 2014

 Further improvement in FC support system

 Started construction of a factory in Myanmar to conduct licensed
production aiming for starting in 2016

 Nurtured human resources for FC business, enhanced
education and training system

 Agreed to form a joint venture with PT DIMA INDONESIA to manufactureand sell soft drinks in Indonesia aiming for starting in 2016.

 Open new formats of CAFÉ de CRIÉ

Planning for starting construction in the first half of 2015

Outlets: 185 (as of December 31, 2014)< POKKA achieved 12 consecutive months No.1 in Non-Chilled Juice
Drink in Singapore>(intra-hospital and suburban-type)(Directly operated: 94 outlets; FC: 91 outlets)* source: Nielsen Market Track APR’14-MAR‘15

Hokkaido 2, Kanto 104, Tokai 37
Kansai 31, Kyushu 8, Shikoku 3

Real Estate
Occupancy rates are annual averages (contract basis)

Ebisu First Square

Major rental properties inTokyo’s 23 wards

Site area (m2)

Floor area (m2)Occupancy rate(%)

Yebisu Garden Place *1

56,943

298,00787%

40 floors above
ground, 5 below

Ebisu First Square

2,596

15,496100%

12 floors above
ground, 1 below

Ebisu Square

1,561

9,126

100%

7 floors above
ground, 1 below

Strata Ginza *2

1,117

11,411100%

13 floors above
ground, 1 below

Site areas are taken from the land registry. Floor areas are as per building certification

No. of floors*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 922m2 of the site (sectional ownership) and 89.72% of
the building (joint management)
Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

Ebisu First Square• Completed in September 2014, it has
been fully occupied and has become anew popular spot in the Ebisu area
• Floor area: 10,400㎡ ⇒15,496㎡, fullyear operation from 2015
Real Estate for Lease at Dec. 31.2014
Balance sheet value at Dec.31, 2014 :approx. ¥207.8 billion
Fair value at December 31, 2014 :approx. 348.2 billion yen

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

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

Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

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