Financial Results
for the nine months ended September 30, 2019 — Consolidated(Based on IFRS)
November 6, 2019

Company name

Sapporo Holdings Limited

Security code
Listed on
URL

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

Representative
Contact

Masaki Oga, President and Representative Director
Yuru Kobayashi, Director of the Corporate Communications Department

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

Filing of quarterly financial report

November 13, 2019

Commencement of dividend payments-

Supplementary information to the quarterly earnings results

Available

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

1. Consolidated Financial Results for nine months ended September 30, 2019
(January 1 – September 30, 2019)(Amounts in million yen rounded to the nearest million yen)

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

Operating profit

Profit before tax

Profitmillion yen%

million yen%

million yen%

million yen%

Nine months ended
September 30, 2019382,658

0.4

7,718

12.9

6,648

16.4

4,214

18.1

Nine months ended
September 30, 2018

381,044

(2.5)

6,837

(29.8)

5,712(34.9)

3,568(25.5)

Profit attributable toTotal comprehensive

owners of parent

incomeBasic earnings

Diluted earnings

per shareper share

million yen%

million yen

%

Yen

Yen

Nine months ended
September 30, 2019

4,560

8.3

10,933

_

58.55

55.15

Nine months ended
September 30, 2018

4,209

(20.5)(1,890)

_

54.04

51.88

1

(2) Financial Position
Total assets

Total equity

Equity attributableto owners ofparentRatio ofequity attributable toowners of parent tototal assets

million yen

million yen

million yen%

Nine months ended
September 30, 2019

645,066

172,091

169,585

26.3

December 31, 2018639,692

164,735

161,501

25.2

2. Dividends
Dividend per share
Record date or

End Q1End Q2End Q3Year-end

Full year

yen

yen

yen

yen

yen

42.00

42.00

42.00

42.00

periodYear ended
December 31, 2018

—

0.00

—

Year ended
December 31, 2019

—

0.00

—

Year ending
December 31, 2019
(forecast)

Note: Changes were made to dividends forecasts in the nine months ended September 30, 2019: None

3. Forecast of Consolidated Earnings for the Year Ending December 31, 2019
(January 1 – December 31, 2019)(Percentage figures represent year-over-year changes)
Revenuemillion yen

Operating profit%

million yen%

Profit before tax

million yen%

Profit attributable to

Basic earnings

owners of parent

per share

million yen%

542,000
3.9
6,200(42.7)
4,900(48.4)
3,300(61.3)
Year ending
December 31,
2019
Note: Changes were made to earnings forecasts in the nine months ended September 31, 2019: Yes

2

Yen
42.36

4. Other(1) Changes to scope of consolidation: Yes*Changes affecting the status of significant subsidiaries (scope of consolidation)
Newly consolidated: -Newly excluded: Sapporo International Inc.

(Note)
Sapporo International Inc. was dissolved in an absorption-type merger with Sapporo Breweries LTD. on January 1, 2019.

(2) Changes in accounting policy, changes in accounting estimates, and retrospective restatement
1) Changes in accounting policies required by IFRS: None
2) Changes other than 1) above: None
3) Changes in accounting estimates: None
(3) Number of shares issued and outstanding (common stock)1) Number of shares issued at end of period (treasury stock included):
September 30, 2019: 78,794,298 shares
December 31, 2018: 78,794,298 shares
2) Number of shares held in treasury at end of period:
September 30, 2019: 896,737 shares
December 31, 2018: 907,931 shares
3) Average number of outstanding share during the period:
Nine months ended September 30, 2019: 77,891,207 shares
Nine months ended September 30, 2018: 77,891,824 shares*Quarterly review status
The quarterly financial results are not subject to quarterly reviews pursuant to the Financial
Instruments and Exchange Act.
Appropriate Use of Earnings Forecasts and Other Important Information
This document contains projections and other forward-looking statements based on information
available to the Company as of the date of this document. Actual results may differ from thoseexpressed or implied by forward-looking statements due to various factors.

3

1. Analysis of Operating Results and Financial Condition(1) Operating Results
In the first nine months of 2019 (January 1 – September 30, 2019), the Japanese economy saw amodest, sustained recovery in personal consumption mainly on the back of favorable employment andincome conditions, despite growing concerns about a downturn primarily in the manufacturing sector in
response to a slowdown in exports. Meanwhile, uncertainty in the global economy increased owing toheightened trade frictions and other geopolitical risks.
In this economic environment, the Group recorded a year-on-year increase in revenue owing to brisk
sales of Sapporo Draft Beer Black Label canned products, despite a year-on-year sales volume decline
for happoshu and new genre categories in the Alcoholic Beverages segment.
The Group’s operating profit increased mainly due to cost controls in the alcoholic beveragebusinesses in Japan and Asia and the booking of gains on the sale of investment property, despite theimpact of decreased domestic beverage sales.
As a result, consolidated revenue in the first nine months of 2019 totaled ¥382.7 billion (up ¥1.6
billion, or less than 1% year on year). The Group posted an operating profit of ¥7.7 billion (up ¥0.9
billion, or 13% year on year), while profit attributable to owners of parent came to ¥4.6 billion (up ¥0.4
billion, or 8% year on year).
Results by segment are outlined below. From this year, in order to further strengthen management
oversight of each business, the five reportable segments used up until now have been reorganized into
three reportable segments. To enable year-on-year comparisons, figures for the previous fiscal year
have been adjusted to reflect the new reportable segments.
Alcoholic Beverages(Japan & Asia)
We estimate that total domestic demand for beer and beer-type beverages in the first nine months of2019 was 1% higher than the level of the first nine months of 2018.
In this operating environment, our Japanese Alcoholic Beverages business continues to work
towards realizing our corporate vision—Seek to be No.1 by accumulating one-of-a-kind products—andachieving further growth by constantly providing unique, new value to customers.
In the beer category, based on our "beer revival declaration" business policy, sales of Sapporo Draft
Beer Black Label, Sapporo Lager Beer, and Sapporo Classic remain brisk, and sales volume increased
2% year on year. However, total sales volume for beer and beer-type beverages decreased 2% year
on year with substantially lower sales in the new genre category due to increasingly intense competition
and the impact of a pullback in sales of new products launched last year.
In the RTD*1 category, revenue increased significantly year on year with consumers favorably
receiving Sapporo Chuhai 99.99 (Four Nines) launched in August last year, which has grown to becomea core RTD product alongside the likes of Otoko Ume Sour and others.
In the wine category, we stepped up marketing of our fine wines*2, including the imported wine
Penfolds, Taittinger champagne, and domestic Grande Polaire wines. However, weak sales of oureveryday wines*2 led to revenue being below that of the year-earlier period.
Our spirits business achieved year-on-year revenue growth, driven by strong sales of products frommajor overseas brands, such as Bacardi and Dewar’s.
Our Japanese liquor business posted a year-on-year decline in revenue, despite solid sales of
Kokuimo, Japan's best-selling*3 blended imo shochu.
In Asia, in the Vietnam market we continued our efforts to establish sales channels capable ofgenerating profit growth.
(North America)
We estimate that total demand in the North American beer market declined year on year in both the4

U.S. and Canada, partially due to the impact of the record cold snap. In this environment, we worked
to strengthen our mainstay brands, primarily premium beer, and strengthen the portfolio of each brand.
In Canada, our subsidiary Sleeman Breweries continued to invest in the marketing of its core
premium brands, but the drop in total demand stemming from inclement weather resulted in a slight
year-on-year decline in beer sales volume (excluding Sapporo brand beer).
In the U.S., Sapporo USA's sales volume of Sapporo brand beers grew year on year due to thecompany's sales promotion activities for Sapporo brands targeting the general population as well as
Asian-Americans. Meanwhile, Anchor Brewing Company worked to bolster sales synergies with
Sapporo USA amid the challenging business environment created by the continued decline in demandfor craft beer in its home market in the San Francisco area.
(Restaurants)
Japan's restaurant industry as a whole continued to enjoy year-on-year growth in revenues, but theoperating environment remained challenging in the first nine months of 2019, highlighted by risinghiring costs owing to labor shortages and increasing raw material procurement prices.
In this environment, based on the philosophy of "Enhancing the Joy of Living," Sapporo Lion worked
to deliver safe and sound products to customers while also striving to create restaurants that deliver
100% satisfaction to customers.
In Japan, our existing restaurants performed well, posting year-on-year increases each month except
for July, which was impacted by weather and other factors. In March, we opened the third Sobaemon
format restaurant in Kawasaki, while in July we opened a Yebisu Bar in Shizuoka. These have earned
rave reviews from local customers and continue to perform well. In January, we renovated and switched
the format of a Shinjuku store to reopen it as Kakoiya, while in July we refurbished the first floor of the
Shimbashi store and reopened it as the Ginza Lion Shimbashi Training Center, the first Ginza Liontraining store. Also, in August we converted HANEI INC., which operates a chain of seven gyoza
restaurants in Osaka, into a subsidiary. Meanwhile, we closed 14 restaurants during the nine-month
period due to the expiration of contracts, unprofitability, and other factors. As a result, we had 190
outlets open for business at the end of September. Going forward, we will continue to aggressively
expand our restaurant chains, opening new stores, remodeling existing stores, and changing formats
when and where desirable.
In Singapore, we continue to promote the spread of beer hall culture.
As a result, revenue in the Alcoholic Beverages segment in the first half of 2019 came to ¥238.5
billion (down ¥1.0 billion, or less than 1% year on year), while the segment posted an operating profitof ¥4.5 billion (up ¥1.8 billion, or 68% year on year).
*1) RTD, or ready-to-drink beverages, are pre-mixed, low-alcohol cocktail-like beverages that can be
consumed as is immediately after opening.
*2) Fine wines are wines priced in the mid-to-high price range (¥1,500 or more per bottle), while
everyday wines are low- priced wines (less than ¥1,500 per bottle).
*3) Based on lntage SRI market research on combined blended imo shochu sales in the supermarket,
convenience store, and direct sales channels from December 2017 to August 2019.
Food & Soft Drinks(Japan & Asia)
We estimate that overall demand for soft drinks in Japan declined by 2% compared to the level in thefirst nine months of the previous year.
In this market environment, POKKA SAPPORO implemented initiatives to further grow each productbrand and achieve further expansion.
In the domestic soft drinks business, we began sales of LEMON MADE Lemonade Soda, the second
product in the LEMON MADE brand which was launched with the aim of using lemon-based drinks tospread lemonade culture, and the product was well received by consumers. We continued to enhance
our lineup of unique products in the TOCHI & CRAFT domestic sugar-free tea series with the launch of
5

Kagabo Hojicha Kaoru Ichibancha and Chiran Nippon Kocha Sparkling. However, total sales volume
of soft drinks fell year on year owing to the impacts of the decline in sales of coffee drinks as well as
the cool summer weather in July.
In the domestic food business, we proactively implemented a number of initiatives, including therenewal launch of the boxed-type Jikkuri Kotokoto soups, the launch of the Kongari Pan GRANDE
Series of soups featuring large pieces of bread, and the launch of the Isshokubun no Yasai Series ofsoups targeted at consumers looking to increase their vegetable intake, but sales of soup products
were lower year on year due to the impact of the mild winter in the first quarter. Construction work on a
POKKA SAPPORO plant within the grounds of the Sendai brewery of Sapporo Breweries wascompleted in August. The new plant features cup-based soup production facilities etc. and we are now
planning to aggressively bolster soup operations yet further.
Sales volume of lemon-based food products remained brisk, increasing 8% year on year thanks toour successful development of products that harness the value of lemons, including our mainstay Pokka
Lemon 100. In the soy beans and chilled products business, our soymilk yogurt production plantestablished a stable production system, and our SOYBIO brand products with straws attachedlaunched exclusively in the Greater Tokyo area were well received by consumers, leading to anationwide (excluding Okinawa) rollout from September.
Revenue in the domestic restaurants business grew year on year as Pokka Create, the company
that operates the Café de Crié coffee shop chain, worked to generate new demand, including
renovating and reopening the flagship Sunshine-dori shop in Ikebukuro, Tokyo, in July.
In our overseas soft drinks business, although the export business from Singapore was somewhat
lackluster, sales remained firm in Singapore, a market in which we maintain the leading share* in thetea drinks category, including a roughly 70% share in the green tea category.
(North America)
In the U.S. soft drinks market, the business environment remained challenging due to the decline indemand for juices owing to the rise of health-conscious consumers. Amid this environment, amanagement integration of Country Pure Foods and Silver Springs Citrus was carried out in theprevious fiscal year in an effort to improve profitability. As a result, total revenue for the twocompanies increased year on year.
Overall, revenue in the Food & Soft Drinks segment came to ¥121.5 billion (up ¥2.7 billion, or 2%
year on year), while the segment posted an operating loss of ¥1.3 billion (compared with an operating
profit of ¥0.5 billion a year earlier).
*Nielsen Singapore MarketTrack October 2018 (Copyright 2018, The Nielsen Company)
Real Estate
Japan's real estate industry remains concerned about a sharp increase in supply of new office spacenegatively affecting conditions in the Greater Tokyo office leasing market, but for now vacancy rates
remain low as strong corporate earnings support demand for office space. As a result, rents remain ona moderate upward trend.
In this environment, our real estate leasing business is maintaining high occupancy rates at its
properties in the Greater Tokyo area, including Yebisu Garden Place Tower, the business's core sourceof earnings. In addition, the high occupancy rates provide a solid platform for more assertive efforts toincrease rents of existing tenants.
Meanwhile, we continue to enhance the asset value of our Yebisu Garden Place commercial complex,a landmark in the stylish and sophisticated Ebisu district of Tokyo, which is celebrating its 25th
anniversary in operation, through constant efforts to provide tenants and visitors with enjoyable
experiences in comfortable and pleasant surroundings by enhancing convenience and strengthening
the property's brand appeal. In November, one section of Glass Square will be transformed into
PORTAL POINT -Ebisu-, a complex centered on co-working spaces. This is expected to create
opportunities for people working there to interact with visitors to Yebisu Garden Place. At the GINZA
6

PLACE commercial complex, we are enhancing the facility's capacity for communicating information inline with its concept as a “base for information dissemination and exchange.” In addition to enhancing
the property's brand value, this is expected to boost customer foot traffic and make the Ginza district
an even more dynamic and bustling urban center. In July, we refurbished and reopened the basementlevel 1, and many customers have been coming to the Taiwanese cafe Chun Shui Tang, the first outlet
in Ginza, and Sapporo Draft Beer Black Label-THE BAR-, creating a vibrant environment.
The real estate development business is proceeding with the renovation of the Sapporo Factorycommercial complex as part of Sapporo City's urban redevelopment program focused on the nearby
area on the east side of the Sosei River. We will continue our efforts to make the new complex an
attractive urban space.
To further enhance the value of our real estate business as a whole, we will continue to carry out astrategic restructuring of our property portfolio and pursue urban redevelopment based on a long-term
perspective.
As a result of the efforts outlined above, revenue in the Real Estate business came to ¥18.3 billion(up less than ¥1 billion, or less than 1% year on year), while operating profit came to ¥9.7 billion (up¥1.6 billion, or 19% year on year).
(2) Consolidated Financial Condition
Consolidated assets as of September 30, 2019, totaled ¥645.1 billion, ¥5.4 billion more than at theend of the previous fiscal year (December 31, 2018). The increase owes mainly to an increase in
cash and cash equivalents and other financial assets (current), which more than offset a decline intrade and other receivables.
Consolidated total liabilities totaled ¥473.0 billion, ¥2.0 billion less than on December 31, 2018,
primarily owing to a decrease in other current liabilities, which helped offset an increase in bonds andborrowings (non-current).
Consolidated total equity came to ¥172.1 billion, up ¥7.4 billion from December 31, 2018. This
increase was due to the posting of profit attributable to owners of parent.
(3) Consolidated Earnings Forecast
Consolidated full-year earnings forecast for the fiscal year ending December 31, 2019 is expected tofall short of the previous forecast due to factors such as the impact of exchange rates and failure toachieve sales volume targets primarily in the Alcoholic Beverages (North America) and Food & Soft
Drinks (Japan & Asia) businesses as well as an increase in corporate expenses.
1) Revision of consolidated full-year earnings forecast for the fiscal year ended
December 31, 2019 (January 1 to December 31, 2019)

Previous forecast (A)Current forecast (B)Change (B-A)
Percent change(%)
For reference:
Results for the fiscal year
ended December 31, 2018

Revenue
548,800
542,000(6,800)(1.2%)

Operatingprofit12,6006,200(6,400)(50.8%)

Profitbefore tax
11,3004,900(6,400)(56.6%)

Profitattributableto ownersof parent
8,700
3,300
(5,400)(62.1%)

521,856

10,828

9,492

8,521

7

(millions of yen)Basicearnings
pershare(yen)111.7042.36
109.402. Consolidated Financial Statements(1) Consolidated Statement of Financial Position(millions of yen)
December 31, 2018

September 30, 2019

AmountAmountAssetsI Current assets
1 Cash and cash equivalents
2 Trade and other receivables
3 Inventories
4 Other financial assets
5 Other current assets
Total current assets

9,989
93,34037,1094,790
8,316
153,544

22,11674,50940,797
4,677
8,805
150,904

II Non-current assets
1 Property, plant and equipment
2 Investment property
3 Goodwill
4 Intangible assets
5 Investments accounted for using equity method
6 Other financial assets
7 Other non-current assets
8 Deferred tax assets
Total non-current assets
Total assets

152,676
215,522
21,22912,056410
70,2058,526
5,523
486,148
639,692

153,995
219,616
22,151
12,453425
75,0967,544
2,882
494,162645,066

December 31, 2018

September 30, 2019

AmountAmountLiabilities and equity
Liabilities
I Current liabilities
1 Trade and other payables
2 Bonds and borrowings
3 Lease liabilities
4 Income tax payable
5 Other financial liabilities
6 Other current liabilities
Total current liabilities

35,29273,863
6,743
1,527
33,90563,260214,591

34,76071,2266,783
559
41,44447,748
202,520

II Non-current liabilities
1 Bonds and borrowings
2 Lease liabilities
3 Other financial liabilities
4 Retirement benefit liability
5 Other non-current liabilities
6 Deferred tax liabilities
Total non-current liabilities
Total liabilities

154,483
24,49545,733
11,715
2,991
20,950260,367
474,957

166,784
24,75846,554
6,614
2,921
22,824
270,454472,974

Equity1 Share capital
2 Capital surplus
3 Treasury shares
4 Retained earnings
5 Other components of equity
Total equity attributable to owners of parent
Non-controlling interests
Total equity
Total liabilities and equity

53,88740,998(1,822)
46,06522,373
161,501
3,234
164,735
639,692

53,88740,950(1,788)51,04925,487
169,585
2,507
172,091
645,0668

(2) Consolidated Statement of Profit or Loss and Comprehensive Income
Consolidated Statement of Profit or Loss(millions of yen)
Nine months ended
September 30, 2018
Amount381,044
264,128
116,916Nine months ended
September 30, 2019
Amount382,658
266,388116,271

110,103
1,493

109,919
3,127

Other operating expenses
Operating profit

1,469
6,837

1,760
7,718

Finance income
Finance costs
Share of profit of investments accounted for using equity method
Profit before tax

750
1,889
14
5,712

759
1,843
14
6,648

Income tax expense
Profit

2,144
3,568

2,434
4,214

Owners of parent
Non-controlling interests
Total

4,209
(641)
3,568

4,560
(346)
4,214

Basic earnings per share (JPY)
Diluted earnings per share(JPY)

54.04
51.88

58.55
55.15

Nine months ended
September 30, 2018
Amount3,568

Nine months ended
September 30, 2019
Amount4,214(3,946)(863)(4,809)

3,297
3,961
7,258

(785)
136
(649)
(5,458)(1,890)

(374)
(166)
(540)
6,718
10,933(1,197)(693)(1,890)11,375(443)
10,933

Revenue
Cost of sales
Gross profit
Selling, general and administrative expenses
Other operating income

Profit attributable toConsolidated Statement of Comprehensive Income

ProfitOther comprehensive income
Items that will not be reclassified to profit or loss
Financial assets measured at fair value through other comprehensive income
Remeasurements of defined benefit plans
Total of items that will not be reclassified to profit or loss
Items that may be reclassified to profit
Exchange differences on translation of foreign operations
Effective portion of net change in fair value of cash flow hedges
Total of items that may be reclassified to profit or loss
Other comprehensive income, net of tax
Comprehensive income
Comprehensive income attributable to
Owners of parent
Non-controlling interests
Comprehensive income9(3) Consolidated Statement of Changes in Equity(millions of yen)

Other components of equity

Share capital

Balance as of January 1, 2018

Capital surplus

53,887Retainedearnings

Treasury shares

40,825(1,807)

ProfitExchange differenceson translation offoreign operations
44,491

1,137

Total comprehensive income

-

-

-

Purchase of treasury shares
0Issuance of convertible bonds with shareacquisition rights
Dividends

132

(731)

132

5

182
(3,122)(830)

Transfer to retained earnings
Total transactions with owners

ProfitOther comprehensive income,net of taxes
Total comprehensive income

4,209

(731)
(11)

Disposal of treasury shares

Balance as of January 1, 2018

(191)

4,209

Other comprehensive income

Balance as of September 30, 2018

Effective portion of
net change in fair value ofcash flow hedges

-

183

(6)

(3,951)--53,88741,007(1,813)44,748407(58)

Other components of equity
Financial assets measured
Remeasurements of defined Total other components ofat fair value through otherbenefit plans
equitycomprehensive income
34,65933,712

Total equity attributable toowners of parent

Non-controllinginterests

Total equity

172,055

3,655

-

4,209

(641)

175,710
3,568(3,945)(863)(5,406)(5,406)(52)(5,458)(3,945)(863)(5,406)(1,197)(693)(1,890)Purchase of treasury shares
Issuance of convertible bonds with shareacquisition rights

-

(11)

-

(11)

-

5

-

5

Disposal of treasury shares

-

182

-

182
(3,130)-(3,122)(9)Transfer to retained earnings

(33)

863

830

-

-

-

Total transactions with owners

(33)

863

830

(2,945)(9)(2,954)29,734-30,083

167,912

2,954

170,866

Dividends

Balance as of September 30, 201810

(millions of yen)
Other components of equity

Share capital

Balance as of January 1, 2019
ProfitOther comprehensive income
Total comprehensive income
Purchase of treasury shares

Capital surplus

53,887-

Disposal of treasury shares
Dividends
Disposal of subsidiaries
Share-based payment transactions
Transfer to retained earnings
Total transactions with owners
Balance as of September 30, 2019

Balance as of January 1, 2019
ProfitOther comprehensive income
Total comprehensive income
Purchase of treasury shares
Disposal of treasury shares
Dividends
Disposal of subsidiaries
Share-based payment transactions
Transfer to retained earnings
Total transactions with owners
Balance as of September 30, 2019

Retainedearnings

Treasury shares

40,998(1,822)

-

(5)

0

39

Exchange differenceson translation offoreign operations
46,0654,560

Effective portion ofneti change in fair value ofcash flow hedges(1,485)

(188)

(353)
(353)

(90)
(90)

(1,838)

(278)

4,560

(3,277)(48)
53,887(48)
40,95034(1,788)3,701
424
51,049Other components of equity
Total equity attributable toFinancial assets measured
Remeasurements of defined Total other components ofowners of parent
at fair value through otherbenefit plans
equitycomprehensive income
24,046
22,373
161,501
4,560
3,297
3,961
6,815
6,815
3,297
3,961
6,815
11,375(5)
39(3,277)(48)

Non-controllinginterests

Total equity
3,234
(346)
(97)
(443)
(12)
(273)
-

164,735
4,214
6,718
10,933(5)
39(3,289)
(273)
(48)

259

(3,961)(3,701)

-

-

-

259
27,603(3,961)-(3,701)
25,487(3,292)
169,585

(285)
2,507

(3,576)
172,09111

(6)Notes on the Going-concern Assumption
Not applicable(7)Segment Information
1. Overview of reportable segments
The Company’s reportable segments are components of the Sapporo Group about which separate financial information isavailable. These segments are subject to periodic examinations to enable the Company’s board of directors to decide how
to allocate resources and assess performance.
Under the Company, which is a pure holding company, Group companies carry out business activities and formulate
strategies for the products and services they offer and for the sales markets they cover.
The Group’s businesses are segmented mainly based on the products, services and sales markets of Group companies
and their affiliate companies. The Company’s three reportable segments are Alcoholic Beverages, Food & Soft Drinks,
and Real Estate.
The Alcoholic Beverages segment produces and sells alcoholic beverages and operates restaurants of various styles.
The Food & Soft Drinks segment produces and sells foods and soft drinks.
The Real Estate segment’s activities include leasing and development of real estate.
Changes to Reportable Segments
Based on the revised management structure launched in January 2017 and in line with The First Medium-Term
Management Plan of the Long-Term Management Vision SPEED150 announced in November 2016, the Company has
determined to strategically reallocate managerial resources to promote continuous group growth, and to implement
structural reforms and promote segment management in an effort to strengthen platform functions.
In the Company’s efforts to maintain steady growth by growing and strengthening its brands, the five previous businesssegments have recently been reorganized into three new segments to better develop international operations as a corebusiness by enhancing Company management. From the first quarter of 2019, the five previous business segments ofJapanese Alcoholic Beverages, International, Food & Soft Drinks, Restaurants, and Real Estate have been reorganized
into the three new segments of Alcoholic Beverages, Food & Soft Drinks, and Real Estate.
In conjunction with these changes, the former International segment was split and incorporated into the Alcoholic
Beverages and Food & Soft Drinks segments, respectively. In addition, the former Restaurants segment has been
incorporated into the Alcoholic Beverages segment, and the food business which was part of the former Other segment
has been incorporated into the Food & Soft Drinks segment.
Segment information for the third quarter of 2019 has been prepared based on the new reportable segments following
the changes.

122. Revenue, profit (or loss)(millions of yen)
Nine months ended September 30, 2018 (January 1, 2018 – September 30, 2018)
Alcoholic
Beverages

Food &
Soft Drinks

Real Estate

Other *1

Total

Consolidated
total

Adjustment

Revenue
To outside customers

239,510

118,733

18,311

4,489

381,044-

Inter-segment revenue

302

194

2,091

15,76318,350(18,350)-

239,812

118,927

20,402

20,253399,394(18,350)

381,044

2,682

463

8,156

79

11,381(4,543)

6,837

Total
Operating profit (loss)

381,044(millions of yen)
NIne months ended September 30, 2019 (January 1, 2019 – September 30, 2019)
Alcoholic
Beverages

Food &
Soft Drinks

Real Estate

Other *1

Total

Consolidated
total

Adjustment

Revenue
To outside customers

238,492

121,456

18,324

4,387

382,658-

Inter-segment revenue

429

194

2,031

16,125

18,779(18,779)-

238,920

121,650

20,355

20,512

401,437(18,779)

382,658

4,514(1,295)

9,731

(122)

12,828(5,110)

7,718

Total
Operating profit (loss)(1) "Other" comprises businesses, such as logistics businesses, that are not included in reportable segments.

13

382,658