Financial Results
for the three Months Ended March 31, 2014 — Consolidated(Based on Japanese GAAP)May 9, 2014

Company name

Sapporo Holdings Limited

Security code
Listings
URL

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

Representative
Contact

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

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

Filing of quarterly financial report

May 14, 2014

Commencement of dividend payments-

Supplementary information to the quarterly earnings results

Available

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

1. Consolidated Financial Results for the three Months Ended March 31, 2014
(January 1 – March 31, 2014)(Amounts in million yen rounded down to the nearest million yen)

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

Three months ended
March 31, 2014
Three months ended
March 31, 2013

Operating income

Ordinary income
million yen%

million yen%

million yen

112,084

11.5(1,726)-(2,348)-(3,815)-

100,498

3.2(4,755)-(5,191)-(3,068)-

Note: Accumulated other comprehensive income
Three months ended March 31, 2014 (5,994) million yen
Three months ended March 31, 2013 4,050 million yen

Net income per
share

Diluted net income
per share

Yen

Yen

Three months ended
March 31, 2014(9.78)-

Three months ended
March 31, 2013(7.84)-

1%

Net income
million yen%

(2) Financial Position
Total assets

Net assets

Shareholders’equity ratio

Net assets per
sharemillion yen

million yen%

yen

March 31, 2014

589,998

146,54524.2

366.07

December 31, 2013

616,752

155,36624.6

388.77

Note: Shareholders’ equity
March 31, 2014:
142,822 million yen
December 31, 2013: 151,683 million yen

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

Full year

yen

yen

yen

yen

yen

Year ended
December 31, 2013—

Year ending
December 31, 2014

—

0.00

—

Year ending
December 31, 2014
(forecast)

7.00

7.00

7.00

7.00

Note: No changes were made to dividend forecasts in the three months ended March 31, 2014.

3. Forecast of Consolidated Earnings for the Year Ending December 31, 2014
(January 1 – December 31, 2014)(Percentage figures represent year-over-year changes)
Net
Net sales

Operating income

Ordinary income

Net income

incomeper share

Year ending
December 31,
2014

million yen%

million yen%

million yen%

million yen%

yen

537,700

5.5

15,000(2.2)

13,600(10.1)

5,000(47.1)

12.82

Note: No Changes have been made to earnings forecasts since the latest release.

24. Other*For details, see "2. Other" on page 9.
(1) Changes in significant subsidiaries during the three months ended March 31, 2014: None
(2) Simplified accounting: Yes*Use of simplified accounting methods and/or accounting methods specific to quarterly consolidated
financial statements(3) Changes in accounting policy, changes in accounting estimates, and retrospective restatement
1) Changes in accordance with amendments to accounting standards etc.: None
2) Changes other than 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
Note: For details, see (3) Changes in accounting policy, changes in accounting estimates, andretrospective restatement, in section “2. Other” on page 9 in the accompanying material.
(4) Number of shares issued and outstanding (common stock)1) Number of shares issued at end of period (treasury stock included):
March 31, 2014:
393,971,493 shares
December 31, 2013: 393,971,493 shares
2) Number of shares held in treasury at end of period:
March 31, 2014: 3,820,894 shares
December 31, 2013:
3,805,058 shares
3) Average number of outstanding shares during the period:
Three months ended March 31, 2014:
390,155,704 shares
Three months ended March 31, 2013:
391,378,116 shares*Quarterly review status
The quarterly financial results are not subject to quarterly reviews pursuant to the Financial
Instruments and Exchange Act. The quarterly review of the quarterly financial results herein had
not been completed as of the date of this document.
Appropriate Use of Earnings Forecasts and Other Important Information
This document contains projections and other forward-looking statements based on information
available to the Company as of the date of this document. Actual results may differ from thoseexpressed or implied by forward-looking statements due to various factors.

3

1. Analysis of Operating Results(1) Consolidated Financial Results for the Three Months ended March 31, 2014
In the first quarter of 2014 (January 1 – March 31, 2014), the domestic economy showed signsof a moderate recovery supported by monetary easing and economic stimulus measures.
However, the consumption environment remains clouded with uncertainties as the surge indemand seen in March ahead of the consumption tax hike is expected to be followed by adecline in consumption from April caused by the higher tax rate and a reversal of the temporary
demand increase before the tax hike.
Amid this environment, the SAPPORO Group saw its first-quarter sales rise sharply above theprevious year’s level as the March demand surge added to the year-over-year gains inshipments of beer and beer-type beverages achieved by the Japanese Alcoholic Beveragebusiness from the start of the year. The Food & Soft Drinks business also saw sales volumes
increase, with year-over-year gains from both foods and soft drink products. The International
Business also did well, with support from a weaker yen, leading to a sizable increase in sales for
the Group as a whole.
The strong sales performance at the Japanese Alcoholic Beverage business and the Food &Soft Drinks business contributed to a sharp year-over-year reduction in the first-quarter operatingloss.
As a result of the above factors, the SAPPORO Group posted consolidated sales of ¥112.0
billion (up ¥11.5 billion or 12% year over year), an operating loss of ¥1.7 billion (compared with a¥4.7 billion loss a year earlier), and an ordinary loss of ¥2.3 billion (compared with a ¥5.1 billion
loss a year earlier). Extraordinary losses included the costs of ¥2.3 billion for demolition andremoval posted by the Real Estate business in relation to the redevelopment of the Sapporo
Ginza Building property located at the Ginza 4-chome intersection. As a result, the SAPPOROGroup posted a net loss of ¥3.8 billion in the first quarter of 2014 (compared with a ¥3.0 billion
loss a year earlier).

Segment information is outlined below.

Seasonal Factors
The Group’s operating results exhibit substantial seasonal variation because demand for the
products and services offered by the Japanese Alcoholic Beverages, International Business,
Food & Soft Drinks, and Restaurant businesses tends to be concentrated in the summer months.
Sales and profits consequently tend to be lower in the first quarter than in the other threequarters.

4Japanese Alcoholic Beverages
We estimate that total domestic demand for beer and beer-type beverages in the first quarterof 2014 expanded 9% year over year. Fueled by the surge in demand in March ahead of theconsumption tax hike, demand rose sharply in all product categories, including beer, happoshu,
and new-genre.
Under these market conditions, the Japanese Alcoholic Beverage business continued its
efforts to realize further growth by implementing its new vision of “seek No.1 by accumulating
one-of-a-kind products” while adhering to its campaign slogan “Bringing more cheer to your‘Cheers’!” as its constantly provides the customers with a unique value proposal.
In the beer and beer-type beverages category, we achieved a solid year-on-year increase insale of our core Yebisu brand, with increased sales of Yebisu Beer supplemented by the releaseagain this year of a limited volume of Kaori Hanayagu Yebisu in January. In the new-genre beer
segment, in February we launched Mugi to Hop The gold, a flavorful derivative of our popular
Mugi to Hop, to the evident delight of many customers. In addition, Goku Zero continued to beatour sales targets for the product, a new-genre beer and the world’s first beer-type beverage withzero purine bodies. As a result, sales of our beer and beer-type beverages expanded sharply
over the first quarter of 2013, as did total demand, and we increased our market share.
In the RTD* category, a renewed version of Sapporo Nectar Sour Peach, launched in February,posted solid sales, while the Sapporo Otoko Ume Sour, first introduced last year, continued topost strong sales. As a result, the RTD category as a whole achieved a sizable increase in sales
over the previous year’s level.
At our wine and liquor business, sales of our mainstay domestic premium brand,
Grande Polaire, remained on a steady pace. In March, we launched Polaire Sangria Rico, a newline of Sangria beverages that are enjoying increasing popularity, especially with young women.
Sales to date have exceeded plan. Sales of our imported wines also expanded, contributing to
year-over-year sales growth for our wine products as a whole.
Our western spirits business also achieved sales growth, with a strong contribution from our
Bacardi brand products.
The shochu business achieved strong year-over-year sales growth, driven by the continued
popularity of our two blended shochus – Imo Shochu Kokuimo and Mugi Shochu Koimugi.
Overall, the Japanese Alcoholic Beverage business posted first-quarter sales of ¥59.2 billion,up ¥9.0 billion or 18% year over year. In addition, continued cost-control efforts enabled thebusiness to reduce its first-quarter operating loss to ¥1.1 billion, compared with a ¥3.3 billion lossa year ago.
* RTD, or ready-to-drink, beverages are already-mixed, low-alcohol content cocktail-likebeverages that can be consumed as is immediately after opening.
International Business
In North America, we estimate that total demand in the beer market was largely flat year overyear in the first quarter of 2014, despite some positive developments, including improving
employment conditions. The Asian beer market, however, continues to grow steadily, supported

5

by the region’s fast-growing economies.
In this environment, our International Business segment continued marketing activities
targeting the premium beer market, where it has core strengths. However, our Canadiansubsidiary SLEEMAN BREWERIES was challenged by intensifying price competition while
Sapporo USA saw shipments delayed by severe winter weather in the United States. As a result,
the two companies’ first-quarter sales volumes of Sapporo brand products were sluggish.
Meanwhile, Silver Springs Citrus, our North American soft drinks subsidiary, continued to post
solid results.
In Vietnam, we continued to our full-fledged marketing activities aimed at establishing the
Sapporo brand in the local market. We launched a TV ad campaign during the prime Tet (NewYear’s holiday) sales season and received a favorable customer response. In South Korea, we
continued our efforts to expand sales of beers to the household and commercial markets throughcooperation with our local partner, Maeil Dairies’ group companies. In Oceania, we continued
efforts to expand sales via our brewing licensing agreement with Australia’s Coopers Brewery,and in Singapore we worked with our local subsidiary to expand sales channels in the local
household market. The efforts outlined above led to year-over-year sales volume gains for beers
in each market mentioned except for North America.
Overall, the International Business posted first-quarter sales of ¥10.4 billion, up ¥0.4 billion or
5% year over year, as the efforts noted above plus benefits from a weaker yen overcame thelower sales in North America. Nonetheless, the segment posted an operating loss of ¥0.8 billion(compared with a ¥0.1 billion loss a year earlier).
Food & Soft Drinks
Domestic demand for soft drinks in the first quarter of 2014 was initially adversely affected byheavy snowfall and then buoyed by the demand surge ahead of the consumption tax hike. We
estimate overall domestic demand increased 6% year on year in the first quarter. Demand forlemon-based products (flavorings) held steady with the previous-year level, while that for instantsoup (including soups in a cup) increased an estimated 6%.
In this overall demand environment, Food & Soft Drinks business started its second year of
integrated operations as POKKA SAPPORO Food & Beverage Ltd. The subsidiary isconcentrating investments on core brands as it endeavors to strengthen and nurture its various
brands.
The domestic food and soft drinks business saw sales of its domestic brand drinks raise
steadily in the first quarter, supported by launches of Pokka Coffee Teito, a low sugar version of
the popular canned coffee drink, and Pokka Coffee Fighters Can, a limited edition sold only in
Hokkaido. The Gabunomi series continued to enjoy steady sales, with a good contribution fromthe series’ newest member, Gabunomi Ichigo Cream Soda. In the lemon and natural foods
category, we launched a renewed version of Kireto Lemon Sparkling in a 410ml PET bottle inMarch as a first step in preparing our summer product lineup. The new offering has beenfavorably received. We renewed packaging design for our core Pokka Lemon 100 brand, sales ofwhich remained on a steady pace. Pokka Lemon Lemotte, a 10% lemon juice–based seasoning

6

says that can be stored at normal temperatures, enabling its use in a variety of indoor andoutdoor venues. We added to our lineup of overseas brands sold in Japan. In addition to
Gerolsteiner naturally carbonated water from Germany, we began sales in January of theimported bottled water brands Vittel and Contrex, as we seek to build a more robust market for
hard drinking water. In the soup and related foods category, the Jikkuri Kotokoto Kongari Pan
series enjoyed steady sales, supported by expanded product lineups. In the commercial-use
products category, sales of our core lemon and syrup product lineups fared well, as did our soupand dessert offerings. Overall, sales rose above year-earlier levels. In new product categories,
we began sales of Shoshurei-cha, a tea with roasted rice developed with the needs of people
receiving nursing care in mind.
In the domestic restaurants business, the Café de Crié coffee shop chain was adversely
affected by the unusually heavy snowfall this winter, but timely menu revisions helped keepcomparable-store sales on a steady growth pace.
The overseas soft drinks business fared well overall, as a continued increase in exports
helped offset some slight weakness in sales in Singapore.
The overseas restaurant business had a somewhat weak amid economic slowdown in Hong
Kong and a decline in tourist traffic from mainland China.
As a result of above, the Food & Soft Drinks segment recorded first-quarter sales of ¥29.8
billion, up ¥2.1 billion or 8% year over year. The segment’s operating loss contracted to ¥0.7
billion (compared with a ¥1.8 billion loss a year earlier).
Restaurants
Japan’s restaurant industry continued to see some signs of improvement in consumer
sentiment, but the overall operating environment remained difficult, with the costs burden
growing heavier as yen weakness pushes up ingredient costs and energy costs.
In this environment, our Restaurants business pursued the fulfillment of its corporate
philosophy of “Enhancing the Joy of Living” by continuing its efforts to raise the quality of its
service as well as its food and beverages, including draft beer, and by endeavoring to create
restaurants that “deliver 100% satisfaction to customers.”
New outlet openings in the first quarter included a new outlet in Tokyo’s Shinjuku district for the
Yebisu Bar chain, one of our core restaurant brands, and six other shops, including outlets
operated on a contract basis.
Our ongoing effort to improve the profit structure of existing outlets included shifting older
shops to smaller Ginza Lion outlets and our new Yebisu Beer Hall format, as we seek to expand
the customer base.
Meanwhile, we closed nine outlets during the period, including the flagship Beer Hall LION
GINZA 5-Chome outlet, which we had to close for a long term as part of the redevelopment of the
Sapporo Ginza Building. The net result of store openings and closings during the first quarter
brings the total number of outlets open in Japan at the end of the period to 188.
Overseas, our initial Ginza Lion Beer Hall in Singapore, which opened in October 2013, isdoing well, and we are planning further expansion of this chain.

7

Overall, Restaurants business recorded sales of ¥5.6 billion in the first quarter, ¥0.0 billion or
1% lower than a year ago, largely owing to the impact of heavy snowfall in February. The
segment posted an operating loss of ¥0.3 billion, equivalent to the previous year’s first-quarter
result.
Real Estate
In Japan’s real estate industry, vacancy rates in the Greater Tokyo office leasing market
continue to improve and rents are now also showing signs of a moderate recovery.
Amid such market conditions, our real estate leasing business maintained high occupancy
rates at its properties in the Tokyo Metropolitan area. Our core property, Yebisu Garden Place,faces the exit of a large tenant at the expiration of the lease contract this May and is steadily
progressing with its efforts to find replacement tenants in order to return the facility to a highoccupancy rate at an early date.
Yebisu Garden Place will celebrate the 20th anniversary of its opening during 2014, and we arecontinuing efforts to enhance the property’s value and to provide tenants and visitors withenjoyable experiences in comfortable and pleasant surroundings. In preparation for the April
opening of a large upscale restaurant on the commercial-use floor, we undertook a majorrenovation of public-use floors. At the complex’s rental housing building, we carried out
renovations designed to enhance the building’s comfort level and amenities, including
refurbishing the entrance hall, improving the building’s barrier-free and universal design features,and replacing standard equipment in each apartment unit. At the complex’s office tower, in Marchwe completed the installation of emergency power-generating systems that will help ensure
tenants’ business continuity in the event of a disaster by providing electricity supply to tenant
spaces. We also began to install equipment to ensure the operation of toilets and elevators
during a disaster. Completion of this work is scheduled for spring 2015. We are also proceedingwith renovations to improve the flexibility of office layouts, provide more comfortable working
environments, and improve the sense and usability of common-use floors.
The real estate development business is making steady progress with the redevelopment of
the Sapporo Ebisu Building (tentative name), which we expect to become a new center of activity
in Tokyo’s Ebisu district. The building is scheduled for completion in autumn 2014. In addition, we
have decided to redevelop the Sapporo Ginza Building at the Ginza 4-chome intersection. We
believe the project, scheduled for completion in the first half of 2016, will stimulate activity in the
Ginza district and contribute to the district’s revitalization.
As result of the efforts as outlined above, the Real Estate business posted sales of ¥5.6 billion,up ¥0.2 billion or 4% year over year, and operating income of ¥2.2 billion, up ¥0.1 billion or 6%.

(2) Review of Consolidated Financial Condition
Consolidated Financial Condition
Consolidated assets as of the end of the first quarter on March 31, 2014, totaled ¥589.9 billion, a¥26.7 billion decrease from the end of the previous fiscal year (December 31, 2013). The decline
is attributable to a decrease in notes and accounts receivable - trade, which more than offset

8increases in merchandize and finished products and construction in progress.
Consolidated liabilities totaled ¥443.4 billion, a ¥17.9 billion decrease from December 31, 2013,
primarily reflecting a decrease in notes and accounts payable - trade and liquor taxes payable,
which more than offset increases in accrued bonuses and long-term bank loans.
Consolidated net assets as of March 31, 2014, totaled ¥146.5 billion, an ¥8.8 billion decline from
December 31, 2013. The decline is attributable to decreases in unrealized holding gain on
securities and foreign currency translation adjustments combined with the distribution of
year-end dividends and the booking of a net loss for the first quarter.

(3) Consolidated Earnings Forecast
The consolidated earnings forecast for the full fiscal year ending December 31, 2014 isunchanged from the forecast announced by the Company on February 12, 2014.

2. Other Information(1) Changes in significant subsidiaries during the three months ended March 31, 2014
Not applicable(2) Application of accounting methods specific to the preparation of quarterly
consolidated financial statements(Calculation of tax liabilities)
The Company calculates tax liabilities by producing a reasonable estimate of the effective tax
rate after applying tax-effect accounting to income before taxes and minority interests for the
fiscal year, which encompasses the three months ended March 31, 2014, and then multiplying
income (loss) before taxes and minority interests by this estimated effective tax rate.
(3) Changes in accounting policy, changes in accounting estimates, and retrospective
restatement
Not applicable93. Consolidated Financial Statements(1) Consolidated Balance Sheets(millions of yen)

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

10

December 31, 2013

March 31, 2014

AmountAmount11,55287,14820,832
13,552
14,479(228)
147,336

10,717
62,951
22,826
12,901
15,667(208)
124,855

390,326(212,741)
177,585
218,275(176,691)
41,583
115,056
5,668
37,757(24,768)
12,988352,882

387,848(211,718)
176,129
218,897(177,283)
41,614
115,063
7,054
37,235(24,473)
12,762352,623

34,418
7,566
41,98533,3296,830
40,15951,221
9,544
15,109(1,326)74,548469,416
616,752

49,814
9,281
14,587(1,324)72,359465,143
589,998

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

11

December 31, 2013

March 31, 2014

AmountAmount35,902
63,64225,00033,7003,837
2,090
10,82452,309227,308

31,71264,05222,00018,343507
4,071
10,872
57,616
209,176

52,000107,185
5,907
32,42336,561
234,077
461,386

52,000108,966
5,584
32,76434,962
234,276
443,453

53,88645,91137,409(1,311)
135,896

53,88645,911
30,774(1,317)129,255

15,4674314
15,786
3,683
155,366
616,752

14,290(1)(721)
13,567
3,722
146,545589,998

(2) Consolidated Statements of Income

I Net sales
II Cost of sales
Gross profit
III Selling, general and administrative expenses
1 Sales incentives and commissions
2 Advertising and promotion expenses
3 Salaries
4 Provision for bonuses
5 Retirement benefit expenses
6 Other
Total selling, general and administrative expenses
Operating loss
IV Non-operating income
1 Interest income
2 Dividend income
3 Foreign exchange gains
4 Other
Total non-operating income
V Non-operating expenses
1 Interest expense
2 Equity in loss of affiliates
3 Foreign exchange losses
4 Other
Total non-operating expenses
Ordinary loss
VI Extraordinary gains
1 Gain on sales of property, plant and equipment
2 Gain on sales of investment securities
Total extraordinary gains
VII Extraordinary losses
1 Loss on disposal of property, plant and equipment
2 Loss on sales of property, plant and equipment
3 Loss on devaluation of investment securities
4 Loss on sales of investment securities
5 Impairment loss
6 Business structure improvement expenses
7 Compensation expenses
Total extraordinary losses
Loss before income taxes and minority interests
Income taxes
Loss before minority interests
Minority interests
Net lossThree months ended
March 31, 2013
Amount100,498
65,78534,712(millions of yen)Three months ended
March 31, 2014
Amount112,084
73,21538,869

6,780
6,005
7,158
1,352
857
17,312
39,467(4,755)

7,583
5,846
7,046
1,360
763
17,99440,596(1,726)

62
66
339
268
735

58
95
176
331

734
63
374
1,172
(5,191)

619
8
90
234
953
(2,348)

10
3,477
3,487

36
4
41

129

536
(2,240)806(3,047)21(3,068)

1,110
43
10
1,540
2,704
(5,012)(1,103)(3,908)(93)(3,815)(3,047)(3,908)

4,900
19
2,178
7,098
4,050

(1,176)(12)(896)(2,086)(5,994)3,770
280(6,034)
40

6
0
222
176

Loss before minority interests
Other comprehensive income*1
Unrealized holding gain on securities
Deferred hedge gains (losses)
Foreign currency translation adjustments
Total other comprehensive income
Comprehensive income*2(Breakdown)Comprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests12(3) Notes on the Going-concern Assumption
Not applicable(4) Segment Information
Ⅰ

Three months ended March 31, 2013 (January 1, 2013 – March 31, 2013)

1. Sales, income, and loss by reportable segment(millions of yen)
Reportable segments
Japanese
Alcoholic
Beverages

International Food&
Restaurants
Soft Drinks

Real
Estate

Total

Other *1

Total

Amounts
reported on
Adjustments thestatements
of income *2

Net sales(1) Operating revenues(2) Intra-group sales and transfers
Total
Segment income (loss)

50,246

9,953

27,637

5,741

5,391

98,969

1,528

444

15

27

0

641

1,130

3,895

50,691

9,969

27,664

5,741

6,032

100,100

5,423(3,348)(190)(1,892)

(318)

2,135

(3,615)(135)

100,498
5,025
105,523(3,751)-

100,498(5,025)(5,025)

100,498(1,003)(4,755)-

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

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

Amount(3,615)

Total other losses
Unallocated corporate costs
Intra-segment sales
Operating income on the statement ofincome

(135)
(781)
(222)
(4,755)

3. Impairment loss on fixed assets or goodwill by reportable segment(Significant impairment losses on fixed assets)
For fixed assets, such as machinery, in the International Business segment, the book value has been reduced to the recoverable amount as a result of
restructuring of production facilities. Impairment loss of 222 million yen was recorded for the three months ended March 31, 2013.
(Significant changes in the amount of goodwill)
Not applicable(Material Gain on negative goodwill)
Not applicable13

ⅡThree months ended March 31, 2014 (January 1, 2014 – March 31, 2014)

1. Sales, income, and loss by reportable segment(millions of yen)
Reportable segments
Japanese
Alcoholic
Beverages

International Food&
Restaurants
Soft Drinks

Real
Estate

Total

Other *1

Total

Amounts
reported on
Adjustments thestatements
of income *2

Net sales(1) Operating revenues(2) Intra-group sales and transfers
Total
Segment income (loss)

59,24910,44029,801

5,674

5,608

110,775

1,309

497

21

28

0

647

1,195

4,281

59,747

10,462

29,830

5,674

6,255

111,970

5,591(1,138)

(891)

(771)

(333)

2,264

(870)

10

112,084
5,477
117,562(859)-

112,084(5,477)(5,477)

112,084(867)(1,726)-

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

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

AmountTotal for reportable segments(870)

Total other losses
Unallocated corporate costs
Intra-segment sales
Operating income on the statement ofincome

10
(855)
(12)
(1,726)

3. Impairment loss on fixed assets or goodwill by reportable segment(Significant impairment losses on fixed assets)
Not applicable(Significant changes in the amount of goodwill)
Not applicable(Material Gain on negative goodwill)
Not applicable(5)Notes on Significant Changes in the Amount of Shareholder's Equity
Not applicable(6)Subsequent Events
Not applicable14