Sapporo Group Business Results Presentation
for the Nine Months Ended September 30, 2017

November 2, 2017
URL http://www.sapporoholdings.jp/english

Copyright, 2017 SAPPORO HOLDINGS LTD. All rights reserved.

1/43

Contents
1. 2017 3Q Results

P3~21

Appendix：Collection of Data by business

P22~42

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(billions of yen)2016 3Q

YoY changes(amount, %)Net sales (incl. liquor tax)

392.2

400.8

8.5

2.2%

Net sales (excl. liquor tax)

307.7

315.9

8.2

2.7%

0.3%

-

Overseas net sales to total(excl. liquor tax)

Third Quarter2017
Highlight

2017 3Q

21.0%

21.3%

Operating income

12.8

10.7

(2.1)

(16.7)%

Operating income before
goodwill amortization

15.8

13.6

(2.1)

(13.8)%

Ordinary income

11.5

10.2

(1.3)

(11.4)%

Profit attributable to ownersof parent

5.2

5.4

0.1

2.9%

215.1

225.4

10.2

4.8%

Balance of Net debt
Ｄ／Ｅratio
EBITDA※Net

1.4 times

1.3 times

(0.1)

-

32.3

31.0

1.2

(3.8)%

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Third-Quarter 2017 Group Results Overview(billions of yen)

Net sales

Third Quarter2017 Highlight

Operating income

YoY Change

YoY Change

Profit attributable toowners of parent YoY Change Businesses on which we’ve been focusing such as beer,
North American alcoholic beverages, lemon-based
products and soups continue to produce results. Realestate is also maintaining steady earnings.
 On the other hand, both sales and profits at SSC in the
North American soft drinks business and Singaporean
soft drinks business have been declining Also, given the impact of unseasonal weather insummer, results of some businesses fell short of theplan, but we will continue to aim to achieve the targets
and give priority to what each business should be
preparing in the first fiscal year of the Medium-Term
Management Plan, and to necessary investments andreinforcement of the group’s management platform.

*SSC: Silver Springs Citrus

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(billions of yen)2016.3Q
Consolidated
Net sales

YoY changes(amount, %)

392.2

2.2％

200.0

(0.2)％

48.0

6.3%

101.5

(0.1)%

Restaurants

21.0

5.2%

Real Estate

16.7

7.3%

4.7

77.9%

Japanese Alcoholic
Beverages

International

Net Sales by
Segment

2017.3Q

Food & Soft Drinks

Other

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・Sales increase in beer in Japan, diversification and North American
alcoholic beverages contributed
・Net increase in Ginza Place (from last September) and new consolidated business*
Japanese Alcoholic
Beverages

International

Food & Soft
DrinksRestaurants

Real Estate

2017
3Q

(billions of yen)

Main Factors
Contributing toChangesin Net Sales

Diversification:
2.3
Subsidiaries, etc.: -1.3

2016
3Q

Overseas: -0.4
Café, etc.: ＋0.3

= Increase= Decrease*Marushinkawamura, Shinsyu-ichi Miso

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(billions of yen)2016 3Q
Consolidated
operating income

Operating Income
by Segment2017 3Q

YoY changes

12.8

Japanese Alcoholic
Beverages

6.3

International

0.7

Food & Soft Drinks

0.6

Restaurants

0.5Real Estate

8.0

Other

(0.1)

General corporate andintercompany
eliminations(3.4)

Amortization of goodwill

2.9

(0.0)

International

1.2

(0.0)

Food & Soft Drinks

1.6

(0.0)

Operating income before
goodwill amortization

15.8

(2.1)
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・Decline in profit widens at happoshu, new genre and overseas soft drinks
・Operating income declined due to temporary M&A cost in addition toinvestment in management platform
Japanese Alcoholic
Beverages

International

Food & Soft
DrinksRestaurants

Real
Estate(billions of yen)
2016
3Q

Main Factors
Contributing toChangesin Operating
IncomeVolume increase: +0.0
Product mix, COGS: -0.2

Sales
promotion: -0.7
Facilities: +0.1
Personnel, etc.:-0.4
Other: -0.2

Volume, product mix:
+0.9
Production cost: +0.4

2017
3Q

Anchor acquisition cost:-0.4= Increase= Decrease
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Overview of Each Business

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9/43

・Beer and diversification have been strong amid declining
total demand due to unseasonal weather and store price rise・Promoting change in sales composition
Japanese Alcoholic
Beverages

Positive(billions of yen)

YoYchangeSales

 Beer continued to be firm
(Black Label sales volume% y-o-y, Yebisu% y-o-y, beer total% y-o-y) Product mix improvement progressed(Beer’s component ratio among beer and beer-type beverages increased from 60% in FY2016 3Q ⇒% in FY2017 3Q

Happoshu,
new genre

Beer

Operatingincome Sales of Wine, Spirits, Japanese liquors and RTD continue to bestrong

RTD, wine,
Japanese liquor,
etc.

(Sales of wine business% y-o-y, those of spirits business% y-o-y)YoY
Change Sales during the peak season was significantly affected byunseasonal weather and increase in store priceBeer sales
volumeincrease

Fixed cost,
Happoshu, Product mix,
sales
new genre nonalcoholic
promotion
sales volume beer, RTD,
cost
production cost,etc.

（Jan-June beer and beer-type beverages% y-o-y in July-September) Sales decline in happoshu, new genre(Reference) *Estimates
Total :
demand% y-o-y → slowed toWine, spirits

Beer
down 2%
Happoshu down 4%
New genre down 1%(Mugi to Hop brand

Negative% y-o-y, Goku Zero brand% y-o-y)*See Appendix in slides 23 to 29.
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10/43

・North American alcoholic beverages, CPF are strong;Work on issues regarding Vietnam, SSC
International

Positive(billions of yen)

Sales

YoY
change Despite stagnation in the market, both Sleeman and Sapporo USA
showed growth trend(Sales volume at Sleeman

y-o-y, Sapporo brand at Sapporo USA%)

 CPF continued to be strong with Side Kicks (sherbet) also
contributing
North
American North American
Vietnamsoft drinks
alcoholicbeverages

OperatingincomeVolume change,
product mix,
production cost,etc. in North
America, etc.

 Exports to South Korea and Taiwan grew significantly with sales
nearly doubling y-o-yExports, other While sales declined in Vietnam, we prioritized and pursued structuralreform such as review of sales promotion investment and production
transfer
To implement measures for Tet (lunar New Year) selling season

YoYchangeFixed cost, etc. inNorth America,
etc.

Vietnam(Reference) *Estimates
Canadian beer
down about 2%
Total :
U.S.
beer
demanddown about 2%

Negative Sales of SSC stagnated and its production efficiency worsened amid
adverse environment reflecting decline in demand for orange juice inthe U.S. and high COGS.
→To work on issues as it advanced preparation for integration with
*See Appendix in slides 30 and 32.
CPF* CPF: Country Pure Foods
SSC: Silver Springs Citrus

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11/43

・While sales of Japanese mainstay brands increased,
overseas risks were exposed
Food & Soft
DrinksPositive(billions of yen)Sales

 Lemon-based products led the performance; tea drinks with rareingredients also maintained strong sales(Lemon-based soft drinks sales volume

YoYchangeOperatingincomeOverseasfood & softdrinks, café%)

% y-o-y) Cost improvement of aseptic bottling lines generated

YoYchangebillion yen

 Sales of coffee drinks continued to decline y-o-y as canned coffee
market shrinks
 Business performance in Singapore continued to be slow
Export sales slowed due to sugar tax in some countries
Overseas performance is weighing on overall revenue;
trying to take quick action

Sales
increase,product mix,
Sales promotion Other fixed Overseas, caféetc. atcost
costs, etc.
, etc.
Japanesefood & softdinks

(Reference)*Estimates
Domestic soft drinksup
Total Lemon-based products:
demandup
Instant soups up%, tea drinks

 Soups steadily increased sales and their profitability also improved
thanks to measures ensuring appropriate selling price in 2016
(Soups sales volume

Japanesefood & softdrinks% y-o-y, lemon-based food products

Negative*Total demand data:
Source– Inryou-souken and Intage SRI Lemon-based products market (Sapporo’s definition)
Total for SM CVS formats in the instant soup market:
Jan-Sep 2017 y-o-y comparison of cumulative sales amount*See Appendix in slides 33 to 37.
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・Sales expanded but personnel cost weighed on earnings
Restaurants

Positive(Comparable-store sales

y-o-y) Marushinkawamura contributed to sales.
Aburiya format has been strong(billions of yen)Sales

 Existing store sales of parent Sapporo Lion were strong despite
unseasonal weather in summer(As consolidation started in June 2016, Jan-May sales were net increase)

YoYchange Yebisu Bar Hiroshima, Shin Yokohama outlets opened in 1Q are
thriving, contributing to earnings→ Contribution to Yebisu brandLion, etc.

Operatingincome COGS ratio in control with menu measures despite foodstuff priceincrease

Marushinkawamura

YoYchange Personnel costs of part-timers have increased Situation in Singapore continues to be difficult
Existing restaurants,
new openings,
refurbishment, etc.

Negative*See Appendix in slide 39.
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・Stable operation of mainstay properties;
Progress in line with plan
Real Estate

Positive

 Yebisu Garden Place (YGP) maintained stable occupancy rate
(Jan-Sep office occupancy rate%)

(billions of yen)Sales

 GINZA PLACE contributed to earnings (started operation in
September 2016)

YoYchange(Jan-Sep occupancy rate

Yebisu Garden
Place

Operatingincome%) Sapporo Factory and other properties in Sapporo also have beenstrongGinza Place, etc.

YoYchange Nothing to mention in particular
Yebisu Garden
Place

Ginza Place, etc.

Negative*See Appendix in slide 40.
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・Difference in consolidated period of 2 group companies
Impact of exchange rates negligible(- = negligible)<Special factors in business results> (YoY)
Impact on
sales

Impact on
operatingincomeMarushinkawamura Inc.: consolidation began
in June 2016

Approx.
¥0.8 billion-

Shinsyu-ichi Miso Co., Ltd.: consolidation began in
October 2016

Approx.
¥4.0 billion-

Business segment

Restaurants

Special Factors
in the BusinessResults

Other

Details(- = negligible)<Impact of foreign exchange rates>
FY2016 3Q

Impact on
sales

Impact on
operatingincomeJapanese
Alcoholic
Beverages--

International¥1.7 billion-

Food & Soft
Drinks--

FY2017 3Q

US＄¥108.59¥111.89

EUR¥121.10¥124.58

CAN＄¥82.09¥85.66

SG$¥79.15¥80.53Copyright, 2017 SAPPORO HOLDINGS LTD. All rights reserved.

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Promoted asset efficiency(billions of yen)2016 3Q

2017 3Q

12.8

10.7

(2.1)

(0.7)

(0.5)

0.2

Other non-operating
income/expenses

(0.6)

0.0

0.6

Ordinary income

11.5

10.2

(1.3)

Gains on sales of property,
plant and equipment

0.0

0.2

0.2

-

Other extraordinary gains

0.0

0.7

0.7

Sale of shares held in crossshareholdings

Loss on sale/disposal ofproperty, plant and equipment

(1.2)

(0.7)

0.5

Impairment loss

(0.5)

(0.3)

0.2

Other extraordinary losses

(0.3)

(0.3)

0.0

Profit before income taxes

9.6

9.9

0.3

Corporate tax, loss attributable
to non-controlling interests

(4.3)

(4.6)

(0.2)

5.2

5.4

0.1

Operating income
Financial account balance

Changes inExtraordinary
Gains and
LossesProfit attributable toowners of parent

ChangeFactors contributing changes

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1.5 billion yen decline y-o-y in total assets<Comparison with the end of FY2016>

Cash and cash
equivalents

Total assets(billions of yen)

10.5
Trade receivables→Impact of seasonal factors, etc.

Changes in
Balance Sheets

Inventory

12.1

12.4

13.2

96.8

9.4

10.5

68.4

78.9

37.9
18.7

40.7
19.5

42.0
19.0

13.0
81.7

64.3

74.8

71.2

41.2
17.0

41.1
16.7

40.6
15.5

346.2

344.2

346.4

356.0

352.7

352.2

356.2

29.2

28.8

27.6

27.4

26.2

25.3

32.2

79.3

76.5

77.4

78.7

73.6

77.9

79.8

2016 1Q

2016 2Q

2016 3Q

End of
FY20162017 1Q

2017 2Q

2017 3Q

Current
assets42.8
18.7

Current assets, etc.

Fixed assets

Goodwill→Acquisition of Anchor (7.8 billion yen)*Its goodwill is tentative amount
Investments, etc.

Copyright, 2017 SAPPORO HOLDINGS LTD. All rights reserved.

Fixed
assets17/43

Total liabilities down by 7.0 billion yen,
total net assets down by 5.5 billion yen<Comparison with the end of FY2016>

Total liabilities,
total net assets

Accounts payable(billions of yen)

Short-term bank liabilities→Increase in short-term borrowings
Deposits received

38.5
34.6

37.8

38.8

35.8
73.4

101.4

94.8

66.2

8.2

Changes in
Balance Sheets(billions of yen)

10.2

8.5

71.8

80.9

(comparison with
2016 3Q)

78.8

88.8
7.1

74.0

84.0

88.5

154.2

152.8

149.7

8.9

8.6

8.3

8.2

74.1

70.4

71.6

72.9

140.1

134.9

137.4

142.6

91.9
82.2

8.8

Current
liabilities

Long-term bank liabilities→Decrease in long-term borrowings
Net defined benefit liability

162.2

138.2

143.9

7.2

6.9

6.8

71.2

70.4

72.5

128.6

131.0

135.8

Balance of net debt
(comparison withend of FY2016)

79.0

37.3

8.4

7.5
Current liabilities, etc.

36.2

Long-term liabilities, etc.

164.7

Shareholders' equity

Long-term
liabilities

Net assets

Accumulated other
Ｄ/Ｅratio*Net

comprehensive income
Non-controlling interests

24.1
22.8
20.5
19.1
15.0
14.7
5.6
5.1
5.1
5.5
5.5
5.1
5.2
2016 1Q
2016 2Q
2016 3Q
End of2017 1Q
2017 2Q
2017 3Q
FY2016
20.4

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Cash basis investment totaled 29.3 billion yen(billions of yen)

<Trend in investment>

45.0
40.0

Cash flow from investment
activities:

35.0

billion yen

5.8
30.0

planned in four years（35.1 billion yen plannedin 2017 full-year)

Financial Status 25.0

*SGM: Sapporo Group Management Ltd.

②<Lease fees> about ¥

40.2

20.0
15.0

①<Capital expenditure> about ¥billion inconsolidated total（tangibles, intangibles)<Major items>- “Alcoholic Beverages,” “Food” and “Soft Drinks” –related:about ¥7.2 billion(Nasu Brewery one-way bottle-related work, etc.)- Real Estate-related: about ¥2.3 billion(Boosting value of YGP, etc.)- SGM Group infrastructure streamlining, etc.: about ¥1.5 billion

29.5

31.0

billion in consolidated total③<Other investment> about ¥billion inconsolidated total(Long-term prepaid expense, subsidiaries’ shares, investment
securities, etc.)<Major items>-Long-term prepaid expense (Japanese Alcoholic
Beverages/Food & Soft Drinks) about ¥2.7 billion-Acquisition of Anchor: about ¥11.5 billion

29.3

10.0
5.0

①+②+③ <FY2017 3Q investment total>

0.0(cash basis, including current capital expenditure and lease fees)

2014
2015
2016
(full year) (full year) (full year)

2017
(3Q)

2018

2019

2020

about ¥

billionCopyright, 2017 SAPPORO HOLDINGS LTD. All rights reserved.

19/43

Promote initiatives for transformation of
the Group management platform
R&D

Transformationof the Groupmanagement
platform

Personnel,
human
resources
Finance- Established Delicious Taste Technology Research Centerin first quarter- Pursue measures for creating values in food
- Started health survey research related to lemon in
Osakikamijima-cho in Hiroshima Prefecture- Started trial run of new system for work style improvement- Promoted hiring and nurturing of diverse human resources
including global human resources- Drafting of the Health Creation Declaration- Concrete measures for reviewing the strategic crossshareholding formulated in the first quarter- Started implementation according to the contents of thedrawn up measures from the second quarter- Started selling part of the cross-shareholding in 3Q(proceedings from the sale: ¥0.7 billion was recorded)- Promote utilization of AI (artificial intelligence) technology

Others*Utilization in handling of internal inquiries*Utilization in grape cultivation at own winery*Utilization in document-based selection in new graduate hiring process
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Personnel,
human
resources

Sapporo Group Health Creation Declaration-Strengthening initiatives to maintain and enhance the health of all group employees-

Transformationof the Groupmanagement
platform[Sapporo Group Health Creation Declaration]
1. People are the bearers of a businessYou can take on challenges in a new field and cross the finishing line with a cheerfuland positive attitude only because you are healthy both physically and mentally.
The business grows because its employees are healthy and this in turn leads to thecompanyʼs growth.
2. Sapporo Groupʼs business and health are directly related
The business of “Alcoholic Beverages,” “Food” and “Soft Drinks” contributes tocustomersʼ physical and mental health and happiness.
We believe that employees, who create and offer the products, being physically andmentally healthy is a proof that our products and services can offer happiness to ourcustomers.
3. Being an attractive place of work leads to sustainability as a company
Employees spend lots of time at the workplace. A workplace that works proactively toenhance and maintain employeesʼ health will be attractive to existing and future
employees and this leads to sustainability as a company.
We hereby make the Health Creation Declaration based on the conviction that thephysical and mental health of the Groupʼs human resources leads to creation ofhappiness for our employees, their family and the company.
[Key initiatives] Allocate public health nurses to each area to enhance healthcare structure Further enhance measures to promote and support employees taking medical checkup so as to achieve 100% rate in employees
aged 40 years and above taking medical checkup for lifestyle-related diseases and those who were identified as requiring
emergency treatment in regular health checkups are seeing doctors
 Introduce healthcare app for employees, promote health enhancement events utilizing group products such as Pokka Lemon 100
 Utilize various health-related data
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Appendix

Copyright, 2017 SAPPORO HOLDINGS LTD. All rights reserved.

22/43

Major sales & sales volume

Appendix-

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23/43

（sales volume）【Beer】

Jan-Sep up％ y-o-y （total demand down 2％）

 Black Label Brand total up ％ y-o-y（Sales of the canned version：up

 Yebisu Brand total up

Appendix

Japanese Alcoholic
Beverages％ y-o-y）＜Y-o-y change in sales volume of
3 core brands>
115
110
105
100

％ y-o-y（sales volume）【Happoshu+new genre】

95
Jan Jan- Sep down ％(total demand down 2%)
 Mugi to Hop Brand total down

％ y-o-y Goku Zero Brand total down

％ y-o-y【Wine , Spirits and other】（sales value）

May

Jul

Aug

Sep

Aug

Sep

Total beer demand

Sapporo total

Black label

Yebisu100

 RTD : up

％ y-o-y

90
Jan

Feb

Mar

Apr

May

Total new genre demand％ y-o-y

Jun

105

95

 Japanese liquor：up

Apr

110

％ y-o-y％ y-o-yMar

115

 Wine：up

 Spirits：up

Feb

Jun

Jul

Mugi to Hop

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24/43

(10,000 cases)＜3 core brand Jan- Sep Sales volume change＞

1,400＜Beer lineup (Jan – Sep breakdown＞

1,200

Appendix

Japanese Alcoholic
Beverages

13%

1,000

800

600

56%
400

30%

200
Black label

Yebisu

Other

0
2011

2012

Black label brand total

2013

2014

Yebisu brand total

2015

2016

2017

Mugi to Hop brand total

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25/43

Appendix

200.0
180.0
160.0
140.0
120.0
100.0
80.0
60.0
40.0
20.0
0.0

※incl. liquor tax

5

54.5

56.0

60.0

54.8

52.5

48.8

(billions of yen)

10

＜Jan- Sep Net Sales＞ (billions of yen)

44.3

0

5.3 5.1 5.4 5.4
4.1 4.5 4.9
3.3 3.3 3.4 3.9 3.7 3.5 3.5
2011 2012 2013 2014 2015 2016 2017
Japanese wine

Imported wine

6

113.2

110.7

112.8

112.0

111.7

117.8

121.0

4
2

2011

2012

Japanese Alcoholic
Beverages

2013
Beer

2014

2015

2016

2017

0

1.1

4.9 5.5
3.4 4.2 4.2 4.2

2011 2012 2013 2014 2015 2016 2017

Happoshu, New genre

Spirits

15＜Jan- Sep sales breakdown by category＞

10

4%

5

6%

Beer

7%

0
2011 2012 2013 2014 2015 2016 2017

Happoshu, New genre

199.7
billions of yen

22%Wine, Spirits

9.3 10.4 10.3 11.3 11.8
6.3 7.8

Japanese liquor

64Japanese liquor
RTD, Non alcoholic

61% beer20

1.6 2.5 2.1

3.3 3.3 3.8

5.3

2011 2012 2013 2014 2015 2016 2017
ＲＴＤ
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26/43

＜Jul- Sep Major new products＞

YEBISU Meister
Improved

Kohaku YEBISUBlack label
Special edition

Black label
Special edition

YEBISU#127（Special edition）

YEBISU Special edition

Appendix

Japanese Alcoholic
Beverages

Mugi to Hop brand(Limited amount)

YEBISU Hanamiyabi Special edition

Mugi to Hop Special edition
Copyright, 2017 SAPPORO HOLDINGS LTD. All rights reserved.

27/43

＜Jul- Sep Major new products＞

Appendix

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28/43

Grande Polaire Wins Award Grande Polaire Nagano Furusato Vineyard, Kifu 2011 and Grande Polaire Yamanashi
Koshu Barrel Fermentation, 2016 both won Gold and top honors in theirrespective categories at the Japan Wine Competition 2017
http://www.sapporobeer.jp/news_release/0000021689/index.html

Appendix

Copyright, 2017 SAPPORO HOLDINGS LTD. All rights reserved.

29/43

【U.S. soft drinks business】【SLEEMAN】

 Jan-Sep unchanged y-o-y *sales volume（total demand down 2%)

 Jan- Sep up

％

y-o-y

*sales revenue＜Ｕ.S. soft drinks business Net Sales in Local Currency(Jan-Sep)＞* before elimination of inter- company transactions【Sapporo U.S.A.】25

 Jan- Sep up ％ y-o-y *sales volume（total demand down 2%)

Appendix
International【Vietnam】

20

19.2

19.2

2016

2017

15
10

 Jan- Sep down％

y-o-y *sales volume＜Y-o-y change in domestic sales volume
in Vietnam
140%

5
0
Silver Springs Citrus （US$ millions）
Country Pure Foods （US$ millions）

120%
100%
80%
60%
40%
20%
0%
16.1Q

16.2Q

16.3Q

16.4Q

17.1Q

17.2Q

17.3Q

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30/43

＜SLEEMAN：Net Sales in Local Currency (Jan-Sep)
300

Sapporo brand sales volume
breakdown by geographic area

*before elimination of inter- company transactions

9%

250
6%

35%

200
150
100

2.82

4.62

millionmillion

cases

cases

20%

165 183

198 205

235 246 248

261 265 275
2012
３Q

50

74%

0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Asia：Vietnam, Singapore, South Korea, etc.
Oceania, etc.：Australia, Europe, etc.

SLEEMAN(Can$ millions)

Appendix
International

North America：Canada, U.S.

＜Trend of overseas sales volume of
Sapporo brand products (Jan- Sep)>＜Sapporo U.S.A.：Net Sales in Local Currency (Jan- Sep)
*before elimination of inter- company transactions

50
45
40
35
30
25
20
15
10
5
0

56%

2017
３Q

（10,000 cases）

1200
1000
800

36

33

37

39

41

43

43

44

45

47

600
400
200
0

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
USA（US$ millions）

833

892

912

946

938

957

963

965

201

282

337

365

394

417

462

184
2010

2011

2012

2013

2014

2015

2016

2017

Sapporo brand

SLEEMANCopyright, 2017 SAPPORO HOLDINGS LTD. All rights reserved.

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Yebisu Beer launched in South Korea
 Launched Yebisu Beer in South Korea on September 7 (Thursday) Imported beer market is growing in South Korea and Japanese beer is growing popular The volume of our sales to South Korea has more than doubled compared with 2013
 Introduced Yebisu Beer with the aim of creating a super premium beer market
 We will promote sales in cooperation with M’s Beverage*, a local agent*A liquor distribution company that handles Sapporo products in South Korea established in June 2011 with Maeil Dairies Co., Ltd., a major

Korean dairy manufacturer in business alliance with Sapporo

Appendix[Profile]
・Product name: Yebisu Beer
・Package: (new launch) 350ml and 500ml cans (full-scale launch) 10L and 20L kegs
・Sales plan: 30,000 cases in 2017; 100,000 cases in 2018 (large bottle count)
・Manufacturing plant: Kyushu Hita plant
http://www.sapporoholdings.jp/news_release/0000020400/pdf/20170907YebisuBeerKorea.pdf

Copyright, 2017 SAPPORO HOLDINGS LTD. All rights reserved.

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【Lemon-based drinks】【Lemon-based food products】

 Jan-Sep up

％ y-o-yFood & Soft Drinks％ y-o-y【Unsweetened tea drinks】【Soups】

 Jan- Sep up

 Jan- Sep up％ y-o-y Jan- Sep down

％ y-o-y【Soy milk, chilled products】【Coffee drinks】

AppendixJan- Sep up

 Jan –Sep Net Sales approx.

％ y-o-y＜Japanese soft drinks
POKKA SAPPORO Food & Beverage
Sales composition by sales channel(Jan- Sep)＞

33.93million＜Japanese soft drinks
Sales composition by genre(Jan- Sep)＞
Vending
machines

46%

22%

18%
5%

33.93million

Carbonated
Water

15%

54%
※Vending machines (end of Sep.)
own brand machines : about 86,000+ Multi-brand machines

Coffee drinks
Lemon‐based
drinksTea drinks

cases

cases

billion

Other

25%

15%

Copyright, 2017 SAPPORO HOLDINGS LTD. All rights reserved.

33/43

(billions of yen)

＜Food & Soft Drinks segment Net sales>(Jan- Sep)

120

＜Food & Soft Drinks segment
Net sales break down by geographic area＞※April 2011 Consolidation of
POKKA CORPORATION

100

85%

80
60
101.5 101.4
93.4 95.9 97.6 99.3

40

Appendix

Food & Soft Drinks

20

15%

74.7
39.7

28.6 23.5 25.4

Japan

0

Overseas2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
＜Japanese soft drinks
POKKA SAPPORO Food & Beverage
Sales composition (Jan- Sep)＞＜Overseas soft drinks
POKKA Corporation (Singapore)
Sales composition (Jan- Sep)＞

2%

22%

157

¥65.4

SG＄ million

42%billion

58%
76%
Within Singapore
Soft drinks

Food

Soy milk

ExportCopyright, 2017 SAPPORO HOLDINGS LTD. All rights reserved.

34/43

【Pokka Create CO., Ltd.】 Jan- Sep Net salesupbillion％ y-o-y<Number of outlets as of September 30, 2017 : 193>

Appendix

Food & Soft Drinks＜New & refurbish outlets ＞

105
51

East Japan

193

Central JapanWest Japan

37
104
89

193

Directory operatedFC

Copyright, 2017 SAPPORO HOLDINGS LTD. All rights reserved.

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＜Jul-Sep Major New products > Soft drinks

Kireto Lemon Moisture
Improved

参考資料
Appendix

Unsweetened tea drink series

Soy milk series

Gabunomi series
Copyright, 2017 SAPPORO HOLDINGS LTD. All rights reserved.

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＜Jul-Sep Major New products > Foods

Jikkurikotokoto Soup series

参考資料
Appendix

Copyright, 2017 SAPPORO HOLDINGS LTD. All rights reserved.

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Launch of miso leveraging group synergy

 Shinsyu-ichi Miso Co., Ltd. launched miso
containing lactic acid bacterium (September 1)
 Blended plant-based lactic acid bacterium SBL88,
found after years of research by Sapporo Breweries

Appendix

Copyright, 2017 SAPPORO HOLDINGS LTD. All rights reserved.

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(billionsof yen)Trends of net sales and number of
Sapporo Lion Outlets

25.0
20.0

195

194

186

188

Appendix

177

168
17.9

19.3

220
200

15.0
10.0

19.6

19.0

173

180
160

18.9

18.7

19.0

120

0.0

100

Restaurants

2012

2013

Net Sales

2014

2015

2016

2017

Number of outlets＜Restaurants segment total number of outlets＞

174

9
213

5

14

9 8
Tokyo Metroporitan
Kanto(excl.Tokyo)
Hokkaido

173

140

5.0

2011

＜Sapporo Lion outlets ＞
As of Sep 30, 2017

TohokuNagoya26

Kansai

89

Other

22
<Brands＞

Sapporo Lion
New Sanko
Marushinkawamura
Singapore

16
15
Copyright, 2017 SAPPORO HOLDINGS LTD. All rights reserved.

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＜Major rental properties & occupancy rates：（Averages for 2017 3Q )Yebisu Garden Place（1）Ebisu First Square

Appendix
Real Estate

Site area（㎡）

Floor area（㎡）

Occupancyrate（%）

No. of floors

450.0

56,943

298,00798

40 floors above
ground, 5 below

350.0

100

12 floors above
ground, 1 below

2,596

16,012Ebisu Square

1,561

8,644

100

7 floors above
ground, 1 below

Ginza Place

645

7,350

99

11 floors above
ground, 2 below

100

13 floors above
ground, 1 below

Strata Ginza（2）＜Information about
Real Estate for lease＞

1,117

11,411(billions of yen)

400.0
300.0
250.0
200.0
100.0

197.7

(billions of yen)

0.0
As of December As of December
31, 2015
31, 2016
Balance sheet value

Fair value(billions of yen)

＜EBITDA＞

2016 3Q

2017 3Q

Yebisu Garden Place, etc.

8.3

8.3

0.0

0.2

Hokkaido

1.2

1.4

0.2

2.3

0.7

Other area & otheroperations

2.0

3.0

1.0

(0.5)

(0.7)

(0.2)

General corporate

(0.5)

(0.7)

(0.2)

8.0

8.8

0.7

Total

11.1

12.1

1.0

＜Operating income＞

2016 3Q

2017 3Q

Yebisu Garden Place, etc.

6.1

6.1

0.0

Hokkaido

0.8

1.1

Other area & otheroperations

1.5

General corporate
Total

201.8

50.0

*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)

389.1

357.4

150.0

ChangeChangeEBITDA= Operating income + depreciation and amortization)
Copyright, 2017 SAPPORO HOLDINGS LTD. All rights reserved.

40/43

Various Initiatives by the Sapporo Group Nagoya City Bureau of Tourism, Culture & Exchange, Sapporo Breweries Ltd.
and Sapporo Holdings Limited sign a partnership agreement for promoting
Reims, France (photo)-To implement collaborative projects including community-linked cooperation starting at Shibuya,next-generation human resources development and new value creation
http://www.sapporoholdings.jp/news_release/0000020381/pdf/20170704nagoya.pdf

 Tokyo University of Agriculture and Sapporo Holdings Limited sign acomprehensive partnership agreement

Appendix

http://www.sapporoholdings.jp/news_release/0000020393/pdf/20170803toukyounoudai.pdf

 Aeon Global SCM and Sapporo Group start joint operation utilizing
RORO (roll-on/roll-off) ship (cargo ship)

http://www.sapporoholdings.jp/news_release/0000020389/pdf/20170721AEONSAPPOROHP.pdf

Copyright, 2017 SAPPORO HOLDINGS LTD. All rights reserved.

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Various Initiatives by the Sapporo Group The 9th Yebisu Beer Festival-Theme: The beer festival in the city for adultshttp://www.sapporoholdings.jp/news_release/0000020387/pdf/2017matsuri.pdf

 Spending part of sales at Yebisu Beer Festival for kids’ baseballteams in Kesennuma City

Appendix

Donated 250 sets of batting center tickets for the members of the kids’ baseballteam in Kesennuma City, who are facing difficulties in finding places to practicedue to the impact of Great East Japan Earthquake.

 Donated total of ¥3 million to support the victims of theheavy rains in Kyushu region: ¥2 million to Hita City, Oita
Prefecture, and ¥1 million to Asakura City, Fukuoka Prefecture

http://www.sapporoholdings.jp/news_release/0000020386/index.html

 Delivered relief supplies to Hita City, Oita Prefecture,
which suffered damage due to the heavy rain
http://www.sapporoholdings.jp/news_release/0000020383/index.html

Sapporo Group will continue to work on the three key themes of disaster
restoration assistance -- promotion of local produce consumption,
information dissemination and nurturing of the next generation.
Copyright, 2017 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.

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, 2017 SAPPORO HOLDINGS LTD. All rights reserved.

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