Sapporo Group Business Results Presentation
for the Nine Months Ended September 30, 2018

November 2, 2018
URL http://www.sapporoholdings.jp/english

Copyright, 2018 SAPPORO HOLDINGS LTD. All rights reserved.

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<Third-Quarter 2018 Key Points>
Performance improved in each business despite impact of unseasonal
weather and natural disasters<Operating profit levels for each quarter (YoY comparison)>Japanese Alcoholic Beverages
60
8.0

4.2 4.1

6.0
40

5.3

International20

2.0

Food & Soft Drinks
40
4.0

0.6 0.6

0

0

4.0

20

2.6
1.6

20

2.0

1.1

▲ 20

2.0

‐2.0

0

0

0

0

▲ 40

▲
20
‐2.0

‐4.0

‐4.0
▲
40

‐3.8
▲ 20

▲ 60
1‐3⽉
Jan‐Mar

4‐6⽉
Apr‐Jun2017
Japanese
2017年
国内酒類
Alcoholic Beverages

7‐9⽉
Jul‐Sep

10‐12⽉Oct‐Dec

2018 Japanese
Alcoholic
2018年
国内酒類
Beverages★ Key point for the Jul-Sep quarter
Despite strong impact of disasters, profit came tolevels similar to the previous year
<Toward attainment of targets>
A YoY profit increase of approx. ¥0.4 billion isnecessary in the Oct-Dec quarter. We will work on
Black Label beer, which has remained strong
compared with overall demand, and 99.99 (RTD),
which has been selling well.

‐6.0

Jan‐Mar
1‐3⽉

Apr‐Jun
4‐6⽉
2017

2017年
国際
International

Jul‐Sep
7‐9⽉

Oct‐Dec
10‐12⽉

2018

2018年
国際
International★ Key point for the Jul-Sep quarter
Vietnam turned profitable and contributed to
profit exceeding the previous year’s level<Toward attainment of targets>
A YoY profit increase of approx. ¥4.5 billion isnecessary in the Oct-Dec quarter.
In 4Q 2017, profit declined by ¥2.7 billion due toimpairment loss related to Vietnam and saw loss
exceeding ¥1.0 billion in the second half due toworsened performance at SSC. We aim to attain ourtargets with the improvement from the integration of
SSC and CPF and no more impact from theimpairment in Vietnam.

‐2.0

Jan‐Mar
1‐3⽉

Apr‐Jun
4‐6⽉

20172017年 ⾷品・飲料
Food & Soft Drinks

Jul‐Sep
7‐9⽉

Oct‐Dec
10‐12⽉2018 ⾷品・飲料
2018年
Food & Soft Drinks★Key point for the Jul-Sep quarter
Profit rose by overcoming the confusion in the
distribution network<Toward attainment of targets>
A YoY profit increase of approx. ¥1.3 billion isnecessary in the Oct-Dec quarter.
We aim to attain our targets by carrying out active
sales promotion activities in 4Q, the peak period forsoup and other such products.
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Corporate, Other

Real Estate

Restaurants
2.0
20

404.0

3.3

3.6

0

0

2.8

0.5 0.3
00

▲ 20

202.0

‐1.4

‐2.0

‐1.5

‐0.6
▲‐2.0
20

▲ 40

0 0

Jan‐Mar
1‐3⽉

Apr‐Jun
4‐6⽉

Jul‐Sep
7‐9⽉

2017
2017年
外⾷
Restaurants

2018
2018年 外⾷
Restaurants

Oct‐Dec
10‐12⽉★ Key point for the Jul-Sep quarter
Existing restaurants struggled, while revenues
also fell due to disasters<Toward attainment of targets>
A YoY profit increase of approx. 0.8 billion yen isnecessary in the Oct-Dec quarter.
In the 4Q 2017, the business posted -¥0.6 billion
resulting from impairment of some restaurants, etc.
While a tough business environment including highingredient and personnel expenses is expected tocontinue, we have been improving menu control
and operations. We aim to attain our targets byleveraging new well-performing restaurants andrefurbished restaurants.

‐1.6

1‐3⽉
Jan‐Mar

4‐6⽉
Apr‐Jun
2017
2017年
Real
不動産
Estate

7‐9⽉
Jul‐Sep

10‐12⽉Oct‐Dec

2018年
2018 Real不動産
Estate‐4.0

Jan‐Mar
1‐3⽉

Apr‐Jun
4‐6⽉

2017 Corporate+ other
2017年
全社＋その他

Jul‐Sep
7‐9⽉

Oct‐Dec
10‐12⽉2018
Corporate+ other
2018年
全社＋その他★ Key point for the Jul-Sep quarter
Profitability continued to improve, resulting instrong performance★ Key point for the Jul-Sep quarter
Reduced corporate costs<Toward attainment of targets>
While disaster-damage-related repairs are required,
we expect to solidly attain our upward-revised
targets.

<Toward attainment of targets>
We are working on reduction of corporate costs
and expect to attain the level of our revised
targets.

(billions of yen)
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2018
3Q

Third-Quarter 2018 Highlight

While both sales and profits fell due to the poor performance in the first
half, operating profit for the Jul-Sep period increased about ¥1.3 billion.
(billions of yen)

YoYchangeRevenue

Operating Profit

2017 3Q（IFRS）

2017 3Q（IFRS）

2018 3Q（IFRS）

2018 3Q（IFRS）*See p.6, 7 for details

 The Japanese alcoholic beverages andfood and soft drinks businesses sawlarge declines in sales, resulting inrevenue decline of ¥9.7 billion

YoYchangeProfit attributable toowners of parent
2017 3Q（IFRS）
2018 3Q（IFRS）

YoY
change*See p.8, 9 for details

 Operating profit declined ¥2.9 billion due
to struggles with new genre Japanese
alcoholic beverages and stagnation in thehigh price range market
 Unsettled weather and natural disasters 
including heavy rain in Western Japanand an earthquake in Hokkaido put
downward pressure on earnings due tolost sales opportunities, increased
logistics expenses, a decline inrestaurant customers, and the need to
repair some facilities

Declined ¥1.1 billion due to the decline
in operating profit

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2018
3Q

Third-Quarter 2018 Highlights(billions of yen)

Balance of net debt

Equity2017 3Q（IFRS）

2017 3Q（IFRS）

2018 3Q（IFRS）

2018 3Q（IFRS）

D/E ratiotimes

2018 plan*See p.16, 17 for detailsof BSTransformation of the Groupmanagement platform*See p.15 for details

Group Topics
 Selected for the FTSE4Good Index Series and FTSE Blossom
Japan Index First in the world! Sapporo measures the color of beer foam〜”The foam of fresh beer is whiter and more beautiful”〜〜”Crystal malt enhances the color of foam”〜Cash basis investment

 Prior start of joint collection of beer pallets in 6 prefectures in
Tohoku〜Four beer manufacturers to reduce annual CO2 emissions by about 735t
(about 56% compared with previous level)

Won Gold at the first “gan-ally-bu” Awards〜Strengthening the company with dialogue and systems that allow cancer
patients to work more comfortably〜*See p.18, 19 for details



The 10th Yebisu Beer Festival〜Donated amount equivalent to beer sales to disaster-stricken areas
Total donation until the end of last year reached about 120 million yen
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2018
3Q

Revenue by Segment(billions of yen)

① 2017 3Q(Japanese GAAP)

Consolidated
revenue
Japanese Alcoholic
Beverages*② 2017 3Q(IFRS)

Change <difference
due to accounting
standards>(②-①)③ 2018 3Q（IFRS）

YoY
change(③-②)

YoY change(rate)
（③-②）

400.8

(10.1)

-2.5％

201.4

(13.8)-4.2%(Rebate subtracted from revenue -13.9)

International
Business*
Food and Soft Drinks

49.3

8.5

2.1%

(4.3)

-3.1%

(Change in price to include liquor tax ＋8.5)

101.5(Rebate subtracted from revenue -3.7)

Restaurants

22.1

(0.3)

-4.0%

(Rebate subtracted from revenue -0.3)

Real Estate
Other

18.0

(0.2)

3.0%

8.5

0.0

2.8%

*From 2018, the export business of Sapporo International Inc. was transferred to Sapporo Breweries Ltd.
The figures for 2017 have been retroactively adjusted to reflect this.

Factors are explainedin the next slide
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Main Factors Contributing to Changes in Revenue

2018
3Q

: The main factors are revenue declines in the high price range
beer and new genre categories(billions of yen)Japanese Alcoholic
Beverages

Food & Soft
DrinksInternational

Restaurants= Increase= Decrease
RealEstate2017
3Q
Diversified productofferings &nonalcoholic beer ＋2.8
Exports ＋0.7
Rebate subtraction -0.3,
etc.

Sleeman, etc. +0.6
Anchor +2.1
(see p.14)

Sales decline in canned coffee in
1H and net decline in sales due tobusiness transfer of NH Beans (Dec2017) (see p.14)
2018
3Q*From 2018, the export business of Sapporo International Inc. was transferred to Sapporo Breweries Ltd.

Copyright, 2018 SAPPORO HOLDINGS LTD. All rights reserved.

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2018
3Q

Operating Profit by Segment(billions of yen)

① 2017 3Q(Japanese GAAP)

Consolidated operating
profit10.7

Japanese Alcoholic
Beverages*

6.2

International*
Food and Soft Drinks② 2017 3Q(IFRS)(0.1)

Change <difference due
to accounting standards>(②-①)③ 2018 3Q（IFRS）

YoY change
(③-②)

(1.0)

(Retirement benefit expenses -1.0, etc.)(1.5)(Depreciation and amortization -0.9,
retirement benefit expenses -0.5, etc.)

1.2(Non-amortization of goodwill +1.2, etc.)

(0.2)

1.6
(Non-amortization of goodwill +1.6, etc.)

Restaurants
Real Estate
Other
Corporate

0.3
8.8
(0.1)
(4.1)

*From 2018, the export business of Sapporo International Inc. was transferred to Sapporo Breweries Ltd.
The figures for 2017 have been retroactively adjusted to reflect this.

(0.1)(Depreciation and amortization -0.1)(1.4)(Real-estate tax-0.5, depreciation andamortization -0.3, etc.)(0.1)(Reclassification -0.1)(0.7)(Retirement benefit expenses -0.5,
reclassification -0.2)

Factors are explainedin the next slide
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Main Factors Contributing to Changes in Operating Profit

2018
3Q

: Significant profit increase in Vietnam, Real Estate continues to be strong
While RTD led Japanese Alcoholic Beverages, profit declined due to lower sales of beer andbeer-type beverages(billions of yen)Japanese
Alcoholic Beverages

International

Food & Soft
DrinksRestaurants= Increase= Decrease

RealEstate2017
3Q

Product mix ＋0.8
Non-alcohol beer, RTD＋1.6
Manufacturing costs, etc.
-1.0

North American alcoholic
beverages -0.8
North American softdrinks -0.5
Incl. Anchor -0.5

*Reclassification under IFRS: Other non-operating revenues and expenses as well las extraordinary income and loss

Valuation difference
resulting from renewal of
production facility in
Malaysia ＋0.7
Sales volume -0.8
Manufacturing cost
＋0.3

Review of businessportfolio +0.1

Impact ofdisasters, etc.
-0.1

Copyright, 2018 SAPPORO HOLDINGS LTD. All rights reserved.

2018
3Q

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Japanese Alcoholic Revenue
Beverages

YoY
ChangeIFRS
Operatingprofit

2018
3Q

YoY
Change*YoY change is on an IFRS basis<YoY changes in sales volume ofBlack Label brand products>

115

Positive Black Label brand cans were up % year on year
exceeding total demand growth rate for beer andgrowing steadily*Cumulative

110
105
100
95

 RTD was up% year on year
led by 99.99 (four nine)

90

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep.
2018 2018 2018 2018 2018 2018 2018 2018 2018

Total demand for beerBlack Label*Black Label is based on sales volume and RTD on sales value<YoY changes in sales volume of
Mugi to Hop brand products> *Cumulative110 Sales volume of new genre products was down
year on year

%

100
90
80
70

Negative Demand for high price range beer market continues to 60
stagnate

Jul

Aug

Sep

Oct

Nov

Dec

Jan
2018

Feb
2018

Mar
2018

Total demand for new genre

Apr
2018

May
2018

Jun
2018

Jul
2018

Aug
2018

Sep
2018

Mugi to Hop

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International

RevenueYoYchangeIFRS
Operatingprofit

2018
3Q

YoY
change*YoY change is on an IFRS basis

Positive Sales at Sleeman continued to increase<Changes in overseas beer sales volume(cumulative from Jan to Sep every year>
500(unit: 10,000 cases, large bottle count)400

 Sapporo brand expanded overseas
Double digit growth in Canada

300
200
100

 Vietnam earnings improved ¥2018 3Q also profitablebillion, with184 201282

467
417 462394
337 36502010 2011 2012 2013 2014 2015 2016 2017 2018SAPPORO Brand

 The effect of improvement of North American softdrinks to start showing in the fourth quarter<North American soft drinks:
Changes in revenue in local currency>
75
70

 Anchor is carrying out the groundwork for next year
onwards, but is facing difficulties in the immediate
future due to stagnant market
Steps to be taken to ensure brand strengthening byfocusing on San Francisco
Negative

65
60
55
50
1Q

2Q
2016

 Logistics cost increased in the USA

3Q
2017

4Q

2018

(US＄ millions)
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Food & Soft Drinks

RevenueYoYchangeIFRS
Operatingprofit

2018
3Q

YoY
change*YoY change is on an IFRS basis

 Sales volume of lemon-based products were
Positiveup% year on year
 Soy and chilled products, which we are currently
cultivating, were up% year on year

Installation of manufacturing facility for soy
yoghurt proceeding toward start of operations inMarch next year
 Maintained high share in Singapore with domestic
sales also staying strong
 Decline in coffee drinks bottomed out but sales
volume fell about 20% year on year
→ Shored up sales by launching Hokuo Black
Coffee, etc.

<YoY change in sales volume of lemon-based products>*Cumulative

120
115
110
105
100
95

2017 1Q

105

2017 2Q

2017 3Q

2017 4Q

2018 1Q

2018 2Q

2018 3Q<YoY change in sales volume of coffee drinks>*Cumulative

100
95
90
85
80

Negative

 Fall in sales due to Middle Eastern commodity tax→ Promoting product development to suit the local
taste

75
70
65
60

2017 1Q

2017 2Q

2017 3Q

2017 4Q

2018 1Q

2018 2Q

2018 3Q

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Revenue

YoYchangeOperatingprofitYoYchangeRestaurants IFRS
Positive

Real Estate
Positive

RevenueYoYchangeIFRS
OperatingprofitYoYchange Strong performance by
Yebisu Bar format

 All mainstay properties maintained
stable occupancy rates

 Transferred Japanese restaurants,
etc. in Singapore to local company→Focus on beerhall format

 Carried out strategic reallocation ofproperties in accordance with
Medium-Term Management Plan
Promoted Ebisu urban development*Transferred 2 properties for ¥7.25 billion in Shinjuku, etc.
Acquired 3 rental properties in Shibuya ward for ¥6.4 billion

 No significant factors

 Comparable-store sales were down
% year on year
Negative

Negative
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2018
3Q

Special Factors in the Business Results Impact of exchange rates on operating profit is negligible<Special factors in business results (YoY)>
Business segment

Impact on
revenue

Details

International

ANCHOR BREWING COMPANY, LLC
Consolidation began in October 2017

Food & Soft
DrinksNH Beans *Former Nihon Beans
Transfer of business in December 2017

Approx.

+¥2.1 billion
Approx.

-¥1.9 billion<Impact of foreign exchange rates>2017 3Q

2018 3Q

Impact on
revenueUS＄¥111.89¥109.61

EUR¥124.58¥130.87CAN＄¥85.66¥85.11

InternationalSG$¥80.53¥81.78

Food & Soft Drinks

Japanese Alcoholic
Beverages

Approx.

-¥0.8 billion--: negligible impact

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2018
3Q

Financial Status
 Cash basis investment totaled ¥24.0 billion①<Capital expenditure>
consolidated total of approx. ¥＜Changes in cash basis investment＞

billion(tangibles, intangibles)

45
Cash flow from investment
activities:

40
35

billion

30

11.8

25

planned in four years（¥35.8 billion plannedin 2018 full-year)<Major items>- “Alcoholic Beverages,” “Food,” “Soft Drinks” –related:about ¥11.0 billion
Mini brewery-related works, filter introduction related work, etc.:
about ¥4.2 billion
Capital investment in Sleeman, etc.: about ¥1.2 billion
Soy milk-related work: about ¥2.3 billion, etc.

- SGM Group infrastructure streamlining, etc.: about ¥1.8 billion*SGM: Sapporo Group Management Ltd.

②<Investment properties> consolidated total of
approx. ¥

40.2

20
15

36.5

③<Lease fees> consolidated total of approx. ¥billion *Except lease fees for restaurant furniture

31.0

29.5

24.0

10

billion④<Other investment> approx. ¥consolidated totalbillion in(Long-term prepaid expenses, investment securities, etc.)

5①＋②＋③＋④ <2018 3Q investment total>0
2014(full‐year)

2015(full‐year)

2016(full‐year)

2017(full‐year)

2018

2019

2020

（3Q）
(billions of yen)

(Cash basis; including current capital expenditure, lease fees)

approx. ¥billionCopyright, 2018 SAPPORO HOLDINGS LTD. All rights reserved.

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2018
3Q

Changes in Balance Sheets: Total assets declined ¥19.9 billion compared with the end of
the previous year
Total assets

Cash and cash equivalents

12.5
98.3

Total assets

Inventories

37.9
16.0

10.8
80.8
39.9
14.7

Other current assets

164.7

165.8

Trade receivables→Seasonal factors, etc.

Fixed assets
Investment property
Goodwill
Other non-current assets(billions of yen)

Current assets

Non-current assets

219.7

218.1

24.9
90.7

24.9
89.8

End of 2017 (IFRS)

2018 3Q (IFRS)
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2018
3Q

Changes in Balance Sheets：Total liabilities down by ¥15.1 billion, total equity down by¥4.8 billion compared with the end of the previous year
Trade payables

Short-term financial liabilities

Other current liabilities→Decline in liquor tax payable andincome tax payable

Total liabilities andequityTotal liabilities andequity

36.5
80.7

36.3
75.4

111.6

98.8

153.2

157.0

6.3
100.7

7.7
98.8

172.1

167.9

Long-term financial liabilities(billions of yen)

Current liabilities→Bond issuanceNet defined benefit liability

Other non-current liabilities

Total equity attributable toowners of parent→3Q profit, payment of dividends
Non-controlling interests

3.7

End of 2017 (IFRS)

Non-current liabilities

Equity3.0

2018 3Q (IFRS)
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2018
3Q

Transformation of the Group management platform
First in the world! Sapporo measures the color of beer foam

R&D

- ”The foam of fresh beer is whiter and more beautiful,” “crystal malt enhances the color of foam” -Sapporo Breweries Ltd. developed a method to measure the color of beer foam for the first time in the world and discovered thatthe foam is whiter in fresh beer and also that the color of the foam changes depending on the malt used for brewing the beer.
We will be using this technology now for quality management required to realize whiter and more beautiful foam as well as todevelop new products that are particular about the color of the foam.
http://www.sapporobeer.jp/news_release/0000022014/index.html

Whiteness of foam (color difference)White

Storage temperature

Color
differenceBlack malt

Green

Crystal malt
Yellow

Red

Blue*Whiteness of foam:
Lower the value whiterthe foam

Immediately
after shipping

One month

Two months

Three months

Duration of storageBlack

Fig 1. Change in whiteness of foam when amber colored beer is stored

Fig 2. Color of beer foam using crystal malt and black malt (L*a*b* color space chromaticity diagram)
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Transformation of the Group management platform
Personnel, humanresources

2018
3Q

Won Gold Medal at the 1st gan-ally-bu AWARDs 2018-Strengthening the company with dialogue and systems that allow cancer patients to work more comfortably-

Sapporo Breweries Ltd. won a gold medal at the 1st gan-ally-bu Award, sponsored by “gan-ally-bu,” a private project tacklingissues relating to cancer and employment. We would like to build this initiative into one of the Group’s strengths, offering a work
environment that is more comfortable for people with cancer and engaging in dialogue to honor the wishes of employees withcancer who hope for a society where those suffering from cancer can continue working.
http://www.sapporobeer.jp/news_release/0000022032/index.html<★Key points that led to the Group receiving a gold award>
・ Has a system in place for employees suffering from cancer and their superiors to obtain information necessary to balanceboth work and treatment by providing the “Manual to Support Treatment and Work”.
・ Has a system in place for an employee to continue working while undergoing treatment by enabling flexible working
through the introduction of a hourly paid holiday system, a super flextime system, and telecommuting.
・ The company partially subsidizes lifestyle diseases-related health examinations (examinations cover areas included in
medical examinations conducted by health insurance societies, etc. as well as cancer examinations) and has a system thatallows employees to undergo examinations during working hours.
・ Has appointed industrial physicians and public health nurses to offices around the nation, and has a system where
employees can have health consultations easily.
・ Has a system where employees can consult an in-house advisor regarding their careers, as well as their own health andfamily matters.
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Appendix

Copyright, 2018 SAPPORO HOLDINGS LTD. All rights reserved.

20/41

Major sales & sales volume

Appendix-

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＜Y-o-y change in sales volume of
3 core brands>%【Beer】（sales volume）
Jan-Sep down

％ y-o-y （total demand down 6％）115

 Black Label Brand total down
（Sales of the canned version：up

 Yebisu Brand total down

Appendix

Japanese Alcoholic
Beverages％ y-o-y105％ y-o-y）95％ y-o-y（sales volume）【Happoshu and new genre】

85
75
Jan

 Jan- Sep down％
(total demand unchanged)
 Mugi to Hop Brand total down
 Goku Zero Brand total down

％ y-o-y％ y-o-y【Wine, Spirits and other】（net sales）
 Wine： down
 RTD : up
 Spirits：up％ y-o-y

Mar

Apr

May

Jun

Jul

Total beer demand

Sapporo total

Black label

Yebisu

Aug

Sep

Aug

Sep

%
110
100
90
80
70

％ y-o-y60Jan％ y-o-y Japanese liquor： down

Feb

Feb

Mar

Apr

May

Total new genre demand％ y-o-yJunJul

Mugi to Hop

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

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

1,200

Appendix

Japanese Alcoholic
Beverages

14%

1,000

800

600

58%

28%
400

200
Black label

Yebisu

Other

0
2012

2013

Black label brand total

2014

2015

Yebisu brand total

2016

2017

2018

Mugi to Hop brand total

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＜Jan- Sep Net Sales＞

Billions of yen

Appendix

Japanese Alcoholic
Beverages

200
180
160
140
120
100
80
60
40
20
0

10

※incl. liquor tax

5

56.0

54.8

60.0

52.5

48.8

44.3

37.8

0

(billions of yen)

5.3 5.1 5.4 5.4 5.2
4.5 4.9
3.3 3.4 3.9 3.7 3.5 3.5 3.3
2012 2013 2014 2015 2016 2017 2018

110.7

112.8

112.0

111.7

117.8

121.0

116.6

8

2
2013

2014
Beer

2015

2016

2017

2018

4.9 5.5 6.1
3.4 4.2 4.2 4.2

02012 2013 2014 2015 2016 2017 2018

Happoshu, New genre＜Jan- Sep sales breakdown by category＞*before subsidiary companies sales, elimination ofinter- company transactions and rebate deduction

6%

Imported wine

6
4

2012

Japanese wine

7%

15

Spirits

105

11.3 11.8 11.1
7.8 9.3 10.4 10.3

0
Beer

7%

Happoshu& New‐genre

2012 2013 2014 2015 2016 2017 2018
Japanese liquor

10

Wine& Spirit
Japanese Liquor

20%

5

RTD& Non‐alcoholic beer
060%*All Figures are before rebate deduction

2.5 2.1 3.3 3.3 3.8 5.3

8.0

2012 2013 2014 2015 2016 2017 2018
ＲＴＤ
Copyright, 2018 SAPPORO HOLDINGS LTD. All rights reserved.

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＜Jul- Sep Major new products＞*incl. improved products (※I)

Sapporo LAGER BEER
Kohaku YEBISU

Hokkaido draft beerBlack label＜Black＞

Baisen draft beer

Kuradashi draft beer

Appendix

Japanese Alcoholic
Beverages

Innovative Brewer
Gourmet beer

Mugi to Hop
Tohoku no kaori

Furano no kaori
Mugi to Hop
Kaoru Furano（Special edition) Halloween design products（Special edition) Mugi to Hop（Special edition) Sapporo Draft beer Black label
Copyright, 2018 SAPPORO HOLDINGS LTD. All rights reserved.

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＜Jul- Sep Major new products＞ *incl. improved products (※I)

Left：Citron Sour（※I）
Right：Napoin Sour

Sapporo Chuhi 99.99（Four nine RTD）

Otoko Ume sour (Plum RTD)
Otoko Ume sour (Plum RTD)
Halloween special design
Left: Otoko Ume sour（※I）
Midle: Super Otoko Ume sour（※I）
Right:Dry Otoko Ume sour

Appendix
Momomomo Nectar Sour
(Golden and White peach RTD)
Rirakusu(Sappari grape fruit vinegar RTD)

Umekaku
Soda shitate no Ume cocktails(Shine Muscat)

Salt and Litchi Sour

White Plum liquor

Ai no Skal Sour
Left：Blue Soda Sour
Right：Red Apple Sour

Left：Limoncello lemon sour
Right: Apancello orange sour

Umekakukajitsushitate no
Umeshu cocktail Yuzu
Copyright, 2018 SAPPORO HOLDINGS LTD. All rights reserved.

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＜Jul- Sep Major new products＞

Appendix

Bio Mania＜organic＞
Left: Chile Cabernet Sauvignon
Right: Chile Chardonnay*incl. improved products (※I)

Japanese wine
Grande Polaire- Azuminoikeda (Japanese wine)

La cuvee MYTHIQUE
Halloween design

Dewarʼs White label
200ｍl
Penfolds g3
Penfolds Grange

Yellow tail Bubbles
Copyright, 2018 SAPPORO HOLDINGS LTD. All rights reserved.

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At Japan Wine Competition 2018,
Grande Polaire Yamanashi Koshu Barrel Fermentation 2017
won first-ever three consecutive years ofGold and top honor in its category

Appendix

At the Japan Wine Competition 2018 held in July in Yamanashi
Prefecture, Grande Polaire Yamanashi Koshu Barrel Fermentation2017 won the Gold and top honor in its category.
In the Koshu division, one of the wine varieties representing Japan,
the wine had received the Gold and top honor for two consecutive
years and made it three years in a row with this year’s win, the firstever wine to do so. Sapporo products also won four Silvers andnine Bronzes.
Grande Polaire Yamanashi Koshu Barrel Fermentation 2017 uses
only grapes grown in Katsunuma-cho, Koshu-shi, and is brewed by
selecting fully ripe Koshu grapes with superior sugar content andtaste. It is light yellow in color with a slight greenish tint and is a dry
wine with sound acidity and a fruit-derived sweet aftertaste that
harmoniously blends a flowery aroma that reminds of citrus and thegentle fragrance of the cask in which it was fermented.
The Sapporo Group will further upgrade its flagship brand Grande
Polaire to a higher level and continue to work on wine productionthat will succeed not only in Japan but also the rest of the world.
http://www.sapporobeer.jp/news_release/0000021984/index.html

Copyright, 2018 SAPPORO HOLDINGS LTD. All rights reserved.

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【U.S. soft drinks business】【Overseas brand】(Products of Sleeman and Anchor) Jan-Sep up％％

International

y-o-y *sales volume【Vietnam】
 Jan- Sep down(※)SSC and CPF integrated in Apr 201825

y-o-y *sales volume＜Y-o-y change in domestic sales volume
in Vietnam
140%
120%
100%
80%

19.2

19.2

18.6
（※）

15
％

y-o-y

＜Ｕ.S. soft drinks business Net Sales in Local Currency(Jan-Sep)＞

20

Appendix％＊sales revenue after eliminationof inter- company transactions

y-o-y *sales volume【Sapporo brand】
 Jan- Sep up

 Jan- Sep down

10
5
0
2016

2017

2018

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

60%
40%
20%
0%

Copyright, 2018 SAPPORO HOLDINGS LTD. All rights reserved.

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＜SLEEMAN：Net Sales in Local Currency (Jan-Sep)*before elimination of inter- company transactions

450

J GAAP（Excluded liquor tax）

400

Sapporo brand sales volume
breakdown by geographic area

9%

IFRS
（Included liquor tax）

7%

350

34%

300

26%

250
200

375 390

150
100
50

205
165 183 198

SLEEMAN(Can$ millions)2018 ３Q＜Trend of overseas sales volume of
Sapporo brand products (Jan- Sep)>（10,000 cases）

1,200

IFRS

57%

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

*before elimination of inter- company transactions
J GAAPmillion cases

North America：Canada, U.S.

＜Sapporo U.S.A.：Net Sales in Local Currency (Jan- Sep)
50
45
40
35
30
25
20
15
10
5
0

million cases

2013 ３Q

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

International

4.67
67%

235 246 248 261 265

0Appendix

3.37

1,000
800
600

36

33

37

39

41

43

43

44

45

47

47

400
200
0

957 963 965 1,039
833 892 912 946 938
462 467
337 365 394 417
184 201 282
2010 2011 2012 2013 2014 2015 2016 2017 20182008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
USA（US$ millions）

Sapporo brand

SLEEMAN

Oversea brand（SLEEMAN＋ANCHOR）
Copyright, 2018 SAPPORO HOLDINGS LTD. All rights reserved.

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

 Jan-Sep up％ y-o-y *sales volume【Soups】

 Jan- Sep up

 Jan- Sep down

％ y-o-y *sales volume

 Jan- Sep down

Food & Soft Drinks％ y-o-y *sales volume【Unsweetened tea drinks】

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

AppendixJan- Sep up％ y-o-y *sales volume Jan –Sep up＜Japanese soft drinks
POKKA SAPPORO Food & Beverage
Sales composition by sales channel(Jan- Sep)＞％ y-o-y *sales volume＜Japanese soft drinks
Sales composition by genre(Jan- Sep)＞

19%
53%

32.81million
cases

47%

Vending
machines
Retailer18%
Coffee drinks

5%32.81million
cases※Vending machines (end of Sep.)
own brand machines : about 82,000+ Multi-brand machines

Lemon‐based
drinksTea drinks

16%

16%

Carbonated
Water

26%
Copyright, 2018 SAPPORO HOLDINGS LTD. All rights reserved.

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(billions of Yen)

120
100

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

※April 2011 Consolidation of

J GAAP

POKKA CORPORATION＜Food & Soft Drinks segment
Revenue break down by geographic area＞

IFRS

85%

80
60
101.5 97.2 94.2
93.4 95.9 97.6 99.3

40

Appendix

Food & Soft Drinks

20

15%

74.7
28.6 23.5 25.4

0

Japan

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
＜Japanese soft drinks
POKKA SAPPORO Food & Beverage
Sales composition (Jan- Sep)＞

Overseas＜Overseas soft drinks
POKKA Corporation (Singapore)
Sales composition (Jan- Sep)＞

3%
22%

34%
¥60.1

152
SG＄ million

billion

66%

75%
Soft drinks

Food

Soy milk

Within Singapore

ExportCopyright, 2018 SAPPORO HOLDINGS LTD. All rights reserved.

32/41

【Pokka Create CO., Ltd.】 Jan- Sep Revenue

unchanged y-o-ybillion＜New & refurbish outlets ＞<Number of outlets as of September 30, 2018 : 203>

53
203

Appendix

outlets

Food & Soft Drinks

112

Central JapanWest Japan

Increased 10 outlets compared with2017 3Q（East +7, Central+1,West+2）

38

96

East Japan203
outlets107

Directory operated
FC

Increased 10FC outlets compared with2017 3Q(Directory operated +3, FC +7)
Copyright, 2018 SAPPORO HOLDINGS LTD. All rights reserved.

33/41

＜Jul-Sep Major New products > Drink *incl. improved products (※I)

参考資料

Left:Chocolate drink
Rght:Milk shake

AppendixCafé de Crie Black coffee
JELEETS Crush Pudding(Pudding shake)

Unsweetened tea

Pear drink

Lavender tea
Tea latte (※I)

Kireto lemon calcium drink

Hibiscus tea
Copyright, 2018 SAPPORO HOLDINGS LTD. All rights reserved.

34/41

＜Jul-Sep Major New products > Foods

Risorante and other soups

参考資料
Appendix

Jikkuri-kotokoto Soup series

Copyright, 2018 SAPPORO HOLDINGS LTD. All rights reserved.

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[Activities to expand Pokka Lemon brand contacts]

Lemon Sour Grand Prix 2018 in Kanto
POKKA SAPPORO Food & Beverages Ltd. in collaboration with Gurunavi, Inc. held Lemon Sour
Grand Prix 2018 in Kanto from June 18 to July 18, 2018. From the 121 original lemon sour menu
items entered by the participating restaurants, Kanto’s No. 1 lemon sour was decided based on voting
from general customers and comprehensive examination by external judges and the company.
https://www.pokkasapporo-fb.jp/company/news/release/180618_01.html*Name of menu items, restaurants: https://www.pokkasapporo-fb.jp/company/news/release/180821_01.html(From left) Grand Prix, second place, chicken best match prize, 2018 trend prize

Appendix

Lemon healthy stand limited to summer
installed in Tokyo, Ebisu, and Nagoya
Lemon healthy stand offers healthy drinks that helps
people to experience the deliciousness of lemon. All
items on the menu including Lemonade with Selectable
Lemon Content and Frozen Lemonade use lemon andare unique to Pokka Sapporo, with emphasis on thedeliciousness of lemon. Further, customers can enjoy
photogenic drinks that come with additional lemon
toppings and in frozen form.
https://www.pokkasapporofb.jp/company/news/release/180712_01.html<Exterior of the shop and the drink menu items (representative image)>

Copyright, 2018 SAPPORO HOLDINGS LTD. All rights reserved.

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Construction of new soymilk yogurt production line
POKKA SAPPORO Food & Beverages Ltd. has been creating new business and product fields while
expanding its beverage brands leveraging strengths in the lemon and soup businesses. In October 2015, itpurchased the business rights to soymilk drinks and soymilk yogurt from Toraku Foods Co., Ltd. and began thesoy beans and chilled business.
While Toraku has been manufacturing soymilk yogurt, the company decided that it is necessary to manufacture
it in-house to expand the market. The line it is newly installing can produce both existing small sized containers
and additionally large-sized containers and enables the company to deploy soymilk yogurt products that evenmore reflect customer needs.

Appendix

Going forward, the company will aim for further growth of the soy beans and chilled business by producing
soymilk yogurt products at its own plant and offering new values to consumers.
<Facility overview>
Manufacturing item:
Number of lines:

soymilk yogurt
2 (large container of about 400g, small container ofabout 100g)
Production capacity: 3.8 million cases per year
(a case has 12 small-sized containers)
3.4 million cases per year
(a case has 6 large-sized containers)
Investment:¥5.3 billion
Location:
Gunma Plant, POKKA SAPPORO Food & Beverages Ltd.
Sakai Hokubu Industrial Park, Sakai Higashi Arai 1301-1, Isesaki-shi,
Gunma Prefecture
Scheduled completion: March 2019https://www.pokkasapporo-fb.jp/company/news/release/180926_02.html
Copyright, 2018 SAPPORO HOLDINGS LTD. All rights reserved.

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(billionsof yen)Trends of net sales and number of
Sapporo Lion Outlets *before rebate deduction
220

25.0
20.0

195 194

Appendix

7 10

200

186 18815.0
10.0＜Sapporo Lion outlets ＞
As of Sep 30, 2017

177 173170
168

17.9 19.3 19.6 19.0 18.9 18.7 19.0 18.1

14

180
160

Tokyo Metroporitan

4

Kanto(excl.Tokyo)
Hokkaido

170
173

140

5.0

120

0.0

100

NagoyaKansai25

862011 2012 2013 2014 2015 2016 2017 2018

Restaurants

Net Sales

Number of outlets＜Restaurants segment total number of outlets＞

170

TohokuOther

24<Brands＞

Sapporo Lion
New Sanko

198

9

Marushinkawamura
Singapore

18
1
Copyright, 2018 SAPPORO HOLDINGS LTD. All rights reserved.

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＜Major rental properties & occupancy rates：（Averages for 201８ 3Q )Site area（㎡）

No. of floors

350

298,007100

Ebisu First Square

2,596

16,012100

12 floors above
ground, 1 below

250

Ebisu Square

1,561

8,644

100

7 floors above
ground, 1 below

150
50Strata Ginza（2）

645

7,350

100

11 floors above
ground, 2 below

1,117

11,411100

13 floors above
ground, 1 below(billions of yen)

400

56,943

Ginza Place

Real Estate

Occupancyrate（%）

40 floors above
ground, 5 below

Yebisu Garden Place（1）Appendix

Floor area（㎡）

＜Information about
Real Estate for lease＞

300
200
100

389.1
201.8

200.0

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)

As of December As of December
31, 2016
31, 2017
Balance sheet value(billions of yen)

＜Operating income＞

2017 3Q

2018 3Q

397.6

Fair value(billions of yen)

Change＜EBITDA＞

2017 3Q

2018 3Q

ChangeYebisu Garden Place, etc.

-

5.8

-

Yebisu Garden Place, etc.

-

8.2

-

Hokkaido

-

1.0

-

Hokkaido

-

0.9

-

Other area & otheroperations

-

2.0

-

Other area & otheroperations

-

3.7

-

General corporate

-

(0.7)

-

General corporate

-

(0.7)

-

Total

-

8.2

-

Total

-

12.1

-

※Thereʼs no disclosure of operating income for 2017.3Q※Under IFRS,EBITDA=Profit from operations before non-recurring items+ Depreciation and amortization
Copyright, 2018 SAPPORO HOLDINGS LTD. All rights reserved.

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Various Initiatives by the Sapporo Group

Selected as component for FTSE4Good Index Series and FTSE Blossom Japan Index, majorindexes of ESG investment.
http://www.sapporoholdings.jp/news_release/0000020447/index.html

Prior start of joint collection of beer pallets in 6 prefectures in Tohoku
http://www.sapporobeer.jp/news_release/0000022035/index.html

Donations to the afflicted areas of 2018 Hokkaido Eastern Iburi earthquake
http://www.sapporoholdings.jp/news_release/0000020452/index.html

Tohoku restoration support with shareholder special benefit plan
〜Utilization in education support for children who will play major roles in
restoration of Tohoku〜
http://www.sapporoholdings.jp/news_release/0000020443/index.html

AppendixPhoto 1

Photo 2

Donation of part of sales to Chiba Environment Restoration Fund
http://www.sapporobeer.jp/news_release/0000021987/index.html*Photos 1, 2

Photo 3
Photo 4
The 10th Yebisu Beer Festival themed on “Beer festival of grown-ups’ city”〜 Restoration Support Marché was heldcommemorating the 10th anniversary 〜
http://www.sapporoholdings.jp/news_release/0000020449/index.html*Photos 3, 4
Copyright, 2018 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.

Copyright, 2018 SAPPORO HOLDINGS LTD. All rights reserved.

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