Sapporo Group Business Results Presentation
for the Three Months Ended March 31, 2019

May 9, 2019
URL ttps://www.sapporoholdings.jp/english
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First-Quarter 2019 Highlight
Although revenue from Japanese alcoholic beverages and soft drinks declined, profits increased
thanks to cost control and sale of investment property(billions of yen)
YoY change
YoY change

Revenue

Profit attributable to owners ofparentOperating Profit

YoY change02017 1Q2018 1Q

2019 1Q

Sales of the alcoholic beverage business declined
year on year due to absence of year-earlier
temporary demand ahead of commercial-use
alcoholic beverage price increase
Soft drink sales declined, primarily in Japan2017 1Q

2018 1Q

02019 1Q

Profit of the alcoholic beverage business in Japanand Asia improved ¥0.5 billion thanks to costcontrol and improvement in product mix
 Profit of food & soft drinks business in Japan andAsia declined ¥1.3 billion reflecting sales decline.
 Sale of Yebisu Square resulted in a ¥1.9 billion
gain2017 1Q

2018 1Q

2019 1Q



Loss reduced by ¥0.7 billion, as operating profit
improved.

*All figures are based on IFRS

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First-Quarter 2019 Highlight(billions of yen)

Balance of Net debt

EquityEnd of 2018

End of 20182019 1Q

2019 1Q

D/E ratio (Net)times

Cash basis investment

2019 planYoY change-0.1 times

Transformation of the Groupmanagement platform
Group Topics

Demonstrated improvement of sleep quality with “SBL88 lactic acid bacteria” (see
p.15)



Certified as “2019 Excellent Enterprise of Health and Productivity ManagementWhite 500”

Started “Can Stars,” an in-house community for employees who have or have hadcancer

Held “SPIRAL UP!” a diversity forum co-sponsored by six food companies

Creating a foundation for development of personnel specialized in logistics with
“Sapporo Logistics University”

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2019

Revenue by Segment(billions of yen)

2018
１Q

2019
１Q

YoY changes(amount)

YoY changes(%)

Revenue by Segment

111.3(2.3)%

Alcoholic Beverages

67.7（3.9)%

Japan & Asia

51.1

(2.4)

(4.7)%

North America

10.5

(0.2)

(1.7)%

Restaurants

6.1

(0.0)

(0.8)%

Food & Soft Drinks

36.3

Japan & Asia

29.3

(0.8)

(2.6)%

North America

7.1

0.8

11.2%

Real Estate

6.0

Other

1.3

0.1%

1.1%
0.0

1.8%

Factors are explainedin the next slide Copyright, 2019 SAPPORO HOLDINGS LTD. All rights reserved. 4/36

Main Factors Contributing to Changes in Revenue
Revenue declined due to decreased sales volumes in food and soft drinks in Japan and happoshu/new genre(billions of yen)
2018
1Q

= Increase= Decrease

Alcoholic Beverages

Food & Soft Drinks

Real Estate

2019
1Q

Includingforeign exchange +0.1

Includingforeign exchange -0.2

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2019

Operating Profit byOperating
Segment Profit by Segment(billions of yen)

2018
1Q
Operating Profit bySegment
Alcoholic Beverages

(3.9)

-

Food & Soft Drinks(1.2)

Japan & Asia
North America

YoY changes(%)-

Restaurants

North America

YoY changes(amount)

(5.5)
(3.0)
(0.2)
(0.5)

Japan & Asia

2019
1Q

(1.0)
(0.2)

0.7
(0.2)
0.2

-

(1.3)
0.1

-

Other

1.1
(0.1)

173.5%-

General corporate andintercompany eliminations

(1.5)

-

Real Estate

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Main Factors Contributing to Changes in Operating Profit
Profit increased, as improvement in product mix of alcoholic beverages, control of sales
promotion costs, and gain on sale from real estate securitization offset the profit decline at the
Food & Soft Drinks Business.
2018
1Q

Alcoholic Beverages(billions of yen)

Sales promotion costs+0.3
Product mix ＋1.1
Non-alcoholic beer & RTD +0.6
Other -0.1

Food & Soft Drinks

Sales volume -0.7
Production cost -0.3

Real Estate

2019
1Q

Proceeds fromsale of Yebisu
Square +1.9

= Increase= Decrease*Reclassification under IFRS: Other non-operating revenues and expenses as well as extraordinary income and loss.

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Alcoholic Beverages
Situation in 1Q
Positive(1) Continued to strengthen beer in Japan
Sales of both Black Label and Yebisu canned products increased(2) Expanded presence of RTD (up 104% year on year)(3) Sapporo Premium grew in North America(4) Sales of keg and bottled products fell year on year due to absenceof year-earlier temporary demand ahead of price increase forcommercial-use products(5) Sales of new genre products fell short of the previous year’s level(6) Stagnation in the beer market in San Francisco continued.
Anchor had a difficult time

Future initiatives, etc.
(1) Shift to more proactive sales promotion of Black Label from April 1,
following relaunch. Introduced the limited version of
Yebisu beer (Fukkoku Tokusei Yesbisu) to capture demand fromcelebrations associated with the Japanese imperial era name change.
(2) We aim to expand the scale of RTD with 99.99 at the core andintroduction of Lemon the Rich.
(3) While there is a trend towards narrowing of SKU in the U.S. retailmarket, the high level of presence in the Asian market has served as afavorable tailwind.
We will strengthen the brand and further expand sales.

(4) The impact of temporary demand will gradually fade away.
(5) New genre has been performing in line with the initial plan.
The limited version of Mugi to Hop (Mugi to Hop Honjuku)
has been performing strongly and has exceeded projections.
We aim to reach the projected level by building up sales of Honkaku
Karakuchi.
(6) Sapporo USA and Anchor integrated management on April 1.
While market conditions are expected to continue to be difficult, we are
steadily working on structural enhancement.

Negative
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Food & Soft Drinks
Situation in 1Q
Positive(1) Lemon-based food products continue to be strong (up 19%)(2) The soymilk yogurt plant construction in Gunma completed(3) Promoted the restructuring of the overseas soft drinks (Asia)
business(4) Signs of improvement in North American soft drinks.
Profitability in sight(5) Sales of soft drinks and soup products in Japandeclined

Future initiatives, etc.
(1) We will continue with aggressive sales of products includingcommercial-use products and strive to expand the market.
(2) Plan to introduce new soymilk yogurt products
We will embark on full-fledged sales expansion in conjunction
with the start of in-house production.
(3) In Indonesia, we are shifting to a scheme where DIMA sells
Pokka brand products and receives royalty income(4) Food Service (FS) grew and production efficiency is
gradually improving. We are aiming to become profitable with
FS as the core.

(5) We will promote new products etc. in the lead-up to the peakseason.

Negative
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Real Estate
Situation in 1Q

Future initiatives, etc.
(1) Aim for stable growth through measures to increase value andregular maintenance and repair

Positive(1) The mainstay properties maintained high occupancy rates(2) We booked 1.9 billion yen gain on sale of Yebisu Square(3) New business EBISU UPDATE PROJECT launched(2) Continue to promote urban development through strategic
reshuffling of property portfolio(3) We will promote the charms of the Ebisu area online as part ofa “digital urban development” initiative and aim for monetization.
(see p.35)-Nothing of note

Negative
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Special factors in the business results
Impact of exchange rates on operating profit is minimal<Special factors in business results (YoY)>
Business segment

Food & Soft
Drinks

Details

Yasuma Co., Ltd.
Consolidated from 1Q of 2019 *Balance sheet only

Impact on
revenue

Impact on
operating profit

Incomestatement to beconsolidated
from 2Q〃

Impact on
revenue

Impact on
operating profit-: negligible impact<Impact of foreign exchange rates (currency translation)>
2018
1Q

2019
1Q

$US

¥108.23¥110.23

EUR¥133.15¥125.16$CAN¥85.62¥82.96$SG¥82.10¥81.37*Average rates for the quarter

Alcoholic Beverages
Food & Soft Drinks

Approx.

-¥0.2 billion
Approx.

+¥0.1 billion-

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Changes in Balance sheets
Total assets decreased ¥14.2 billion from year end

Total assets

Cash and cash equivalents

Trade receivables

10.0

Total assets

12.3

93.3

72.2

Inventories

37.1
13.1

42.5
14.4

Other current assets

164.7

165.4

→Seasonal factor

Fixed assets

Investment property(billions of yen)

Current assets-12.2

Non-current assets

215.5

209.5

21.2

21.2

84.7

88.1

End of 2018

End of 2019 1Q

YoY change

YoY change-2.0→Sale of Yebisu Square
Goodwill

Other non-current asssets

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Changes in Balance sheets
Total liabilities declined ¥15.7 billion from year end, total equity increased ¥1.6 billion

Trade payables

Total liabilities andequity(billions of yen)
Total liabilities andequityShort-term financial liabilities
35.3
Other current liabilities→Decline in liquor taxes payable

73.9
105.4

Long-term financial liabilities→Transfer to short-term financial liabilities

34.5
83.8
94.8

146.0

11.7

6.2

Other non-current liabilities

94.2

94.0

Equity attributable to owners ofparent

161.5

163.5

Non-controlling interests

YoY change

-1.5

154.5

Net defined benefit liabilities

Current liabilities

Non-current liabilities
YoY change-14.2

EquityYoY change

+1.6

3.2
End of 2018

2.8
End of 2019 1Q
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Financial Status
Investment on a cash basis was ¥7.8 billion①<Capital expenditure>
about ¥
(billions of yen)billion in consolidated total

60(Property, plant and equipment/intangible assets)<Major items>
・“Alcoholic Beverages,” “Food,” and “Soft Drinks”-related:about ¥2.6 billion

50

Domestic beer plant system updating work: About ¥0.9 billion
Capital investment at Sleeman: About ¥0.1 billion
Pokka plant facilities-related: About ¥0.5 billion and so on<Changes in amount of investment (cash basis)>・Group-wide infrastructure optimization, etc.:¥0.7 billion② <Investment properties>

40

42.9

about ¥

30

Cash flow frominvestment activities:

20¥
billionplanned over four-year period(¥50.7 billion planned in 2019)

40.2
31.0

36.5

32.7

billion in consolidated total③ <Lease fees> about ¥consolidated totalbillion in*Excluding lease fees for renting restaurant outlets④ <Other investments> about ¥consolidated totalbillion in(including long-term prepaid expenses, investment
securities, etc.)10①+②+③+④ <2019 1Q investment total>

7.8(cash basis; including recurring capital expenditure andlease fees)

0
2015

2016

2017

2018

2019

2020

(full year)(full year)(full year)(full year)（1Q）(full year)

about ¥

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Transformation of the Group management platform
R&D

Demonstration of improvement in sleep quality with SBL88 lactic acid bacteria

Score for recovery fromfatigue (points)*3 A double-blind experiment is one in which neither experiment subjects nor those
implementing the experiment know which items the subjects are being assigned.
*4 The placebo was a food product with the same appearance and taste as the test
food product but that did not include the functional component being tested.
*5 A psychological scale for introspective evaluation of sleep at the time of rising.

Score for drowsiness at
the time of rising (points)

In clinical trials, we were able to confirm improved sleep quality as an additional health function of our proprietary functional foodingredient SBL88 lactic acid bacteria. The trials showed reduced sleepiness at the time of rising and improved recovery from fatigue
felt when getting up in subjects who took the test food containing SBL88 lactic acid bacteria for four weeks.
We carried out a randomized double-blind*3 placebo-controlled parallel group comparison study involving 220 healthy adult males
and females, who were dissatisfied with the quality of their sleep. The test food product was given to half of the subjects with therest consuming a placebo*4 food product for four consecutive weeks, and we assessed their OSA-MA*5 scores, sleep evaluation,and subjective symptoms (AIS, JESS, BDI-II, and VAS method) before and after taking the food products.
[Main outcomes]
The trial confirmed that after four weeks the group given the test food product had reduced sleepiness and improved recovery from
temporary fatigue when getting up compared with the group given the placebo food products (202 cases were analyzed). The
findings appeared in the Japanese Pharmacology & Therapeutics magazine (vol.46 no.10., 2018).

Placebo

Placebo

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Appendix

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Appendix: 2018 1Q ( Previous yearʼs result ) Conversion Table of Revenue, Operating Profit by Segment*( ) denotes new segment

Former segments
New segments(5 business domain (3 business domain
structure)
structure)

Difference

111.3

-

50.8

16.9

International (-)

17.8(17.8)

Food & Soft Drinks(Food & Soft Drinks)
Restaurants

27.8
6.1
6.0
2.8

8.5
(6.1)
0.0
(1.5)

Revenue(billions of yen)Japanese Alcoholic Beverage(Alcoholic Beverages)

Real Estate (Real Estate)
Other

Former segments
New segments(5 business domain (3 business domain
structure)
structure)

Difference

(5.5)

-

Japanese Alcoholic Beverage(Alcoholic Beverages)

(3.1)

(0.8)

International (-)

(0.4)

(0.4)

Food & Soft Drinks(Food & Soft Drinks)

(1.0)

(0.2)

Restaurants

(0.5)

0.5

1.1

-

Operating profit

Real Estate (Real Estate)[Corporate] Other

(1.6)

-

Remarks

・North American alcoholic beverages and Vietnam
moves to Alcoholic Beverages \10.7 billion
・North American soft drinks moves to Food & Soft
Drinks\7.1 billion

・To Alcoholic Beverages \6.1 billion
・Shinshu-ichi Miso moves to Food & Soft Drinks\1.5 billion

Remarks

・North American alcoholic beverages and Vietnam
moves to Alcoholic Beverages \-0.2 billion
・North American soft drinks moves to Food & Soft
Drinks \-0.2 billion

・To Alcoholic Beverages \-0.5 billion

・Shinshu-ichi Miso moves to Food & Soft Drinks\-0.0 billion
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Appendix：Major sales & sale volume

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Appendix：Alcoholic Beverages (Japan)＜Y-o-y change in sales volume of
3 core brands>【Beer】（Sales volume）%％ y-o-y

Jan-Mar downBlack Label brand total down

％ y-o-y（Sales of the canned version: up％ y-o-y ）Yebisu brand total down

110

％ y-o-y

100
90
80
70
Jan

【Happoshu and new genre】（Sales volume）％ y-o-y

Jan- Mar down

Mugi to Hop brand total down

Feb

Mar

Total beer demand

Sapporo total

Black label

Yebisu％ y-o-y%120（Sales revenue）【Wine, Spirits and other】



Wine：down％ y-o-y

RTD：up％ y-o-y

Spirits ：up％ y-o-yJapanese liquor：down

100
80
60
Jan

％ y-o-yFeb

Total new genre demandMar

Mugi to Hop

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Appendix：Alcoholic Beverages (Japan)＜3 core brand Jan- Mar Sales volume change＞＜Beer lineup ( Jan- Mar break down)＞

400
350

13%

300

25%

250
200
150

62%

100
50
0
2013

2014

2015

2016

Black label brand total

2017

2018

2019

Black label

YebisuOther

Yebisu brand total

Mugi to Hop brand total

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20/36

Appendix：Alcoholic Beverages (Japan)＜Jan- Mar sales breakdown by category＞＜Jan- Mar Sales revenue＞ ※incl. liquor tax
60.0(Billions of yen)

4%

50.0

40.0

19.3
13.8

14.4

13.9

12.7

11.7

9%

8%

Beer

9.7

Happoshu & New genre

30.0
Wine & Spirits
20.0Japanese liquor

28.2

29.9

27.8

29.3

31.1

30.9

30.3

10.0

19%

60%

RTD & Non-alcoholic
beer

0.0
2013

2014
Beer

2015

2016

2017

Happoshu & New genre

2018

2019

*before subsidiary companies sales, elimination ofinter- company transactions and rebate deduction

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Appendix：Alcoholic Beverages (Japan)＜Jan- Mar Sales revenue＞(Billions of yen)

3.5
3
2.5
2
1.5

1.7

1
0.5

1.6

1.6

1.7

1.6

1.4

1.2

1.1

1.1

1.1

0.9

2014

2015

2016

2017

2018

2019

1.5

1.1

1.6

0
2013

Japanese wine

2
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0

1

2013

1.2

1.1

2014

2015

4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0

4.0
0.5

0.9

0.9

1.0

2013

2014

2015

2016

1.3

2016

2017

Spirits

1.7

2018

1.9

2017

2018

3.6

3.8

3.8

2016

2017

2019

ＲＴＤ

Imported wine

1.4

1.5

1.9

2019

4
3.5
3
2.5
2
1.5
1
0.5
0

2.9

2013

3.5

3.3

2014

2015

2.7

2018

2019

Japanese liquor
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Appendix：Major New Alcoholic Beverages (Japan) Product Launches in Jan, Feb, and Mar*incl. improved products (*1)

YEBISU Premium Ale

Sapporo Draft Beer Black Label(*1）

Mugi to Hop Honjuku

RTD
Sapporo Chu-Hi 99.99〈Four nine〉
Left：Lime
Right：Citrus

RTD
Rirakusu(*1）

Sapporo Magnum
Import wine
Beringer tunnel of elms
RTD
Ai no Skal
Goldenpine sour
Domestic wine

RTD
Plum wine cocktail
Umekaku (*1）

Domestic wine
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23/36

Appendix：Alcoholic Beverages (Japan)
A Black Label campaign involving gifting consumers with beer glasses that they could select from a
range of 41 different designs won an award at the Japan Promotion Planning Contest*
The award was given in recognition of the fact that the project was befitting of Sapporo Breweries, whichemphasizes the creation of “spaces in which people can experience the brand.”The award is given to outstanding sales promotion initiatives judged based on the following three points:① The quality of the idea behind the initiative and quality of its execution② The quality of tools used (attractiveness, design, technology, thoroughness, and safety)③ Newsworthiness and freshness
The project succeeded in promoting sales by encouraging consumers to try the brand,
and contributed to sales of Black Label canned products, which have increased for four straight years
despite sluggish total demand.

*A contest sponsored by Business Guide-Sha, Inc.

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24/36

Appendix：Alcoholic Beverages (Japan)
Sapporo Chu-hi 99.99 won the Superior Hit Product Award in the alcoholic beverage divisionof the Hit Food Product Awards-Rated highly by retail chain operators and wholesalers. Won the award for the second year
runningThe product received the excellence award in the alcoholic beverage division of the 37th Hit Food Product Awards
sponsored by the Japan Food Journal. This is the second consecutive year the Company has won the award
after winning with Ai no Skal White Sour last year.
Prominent supermarkets, wholesalers, co-ops, etc. around the nation serve as monitors for selecting the candidate products andalso serve as selection committee members. The 99.99 is rated highly by distribution chain operators and wholesalers.

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Appendix：Alcoholic Beverages (Overseas)【Overseas brand】 （Products of Sleeman and Anchor)

Jan-Mar down

＜Trend of overseas sales volume ( Jan- Mar)＞（10,000 cases）％ y-o-y *sales volume
350【Sapporo brand】
Jan- Mar down

％ y-o-y *sales volume

300
250

【Vietnam】
Jan- Mar up％（including export）

200
150

＜Y-o-y change in domestic sales volume in Vietnam

256

250

257

259

268

289

279

100

120%
100%

50

111

103

2013

2014

134

131

146

149

141

2015

2016

2017

2018

2019

80%
0

60%
40%

Sapporo brand20%

Sleeman brandSleeman ＋Anchor

0%
17.1Q 17.2Q 17.3Q 17.4Q 18.1Q 18.2Q 18.3Q 18.4Q 19.1Q

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26/36

Appendix：Alcoholic Beverages (Overseas)＜Sleeman：Sales revenue in local currency (Jan- Mar）＞*before elimination of inter- company transactions＜Sapporo U.S.A.& Anchor：Sales revenue in local currency (Jan- Mar）＞*before elimination of inter- company transactions

25

120
J GAAP（Excluded liquor
tax）

IFRS
（Included liquor
tax）

100

Acquired Anchor

20

80
15
60

103 106 107
40

20

43

48

52

54

63

65

64

69

20

10

15

71
5

11

10

12

13 14

13

15

20

15 15

0

0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 20192008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019SLEEMAN(Can$ million)

USA（US$ million）
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27/36

Appendix：Alcoholic Beverages (Restaurants)＜Trend of Sales revenue and number of Sapporo Lion outlets>(Billions of yen)

8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0

※before rebate deduction＜Sapporo Lion outlets > As of Mar 31, 2019

220
200

186

5.5

188

5.4

179
5.4

170

174

5.4

5.5

170
5.2

180

162

160

5.3

140

4

14

7 10

Tokyo
Metroporitan
Kanto (excl. Tokyo)

162 Outlets

120

Hokkaido

100
2013

2014

2015

2016

Sales revenue

2017

2018

2019

Number of outlets＜Total number of outlets＞

78

24

TohokuNagoya25＜Brands＞

162

Sapporo Lion

8

189 outlets

New Sanko
Marushinkawamura

18
1Singapore
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Appendix：Food & Soft Drinks【Lemon based-drinks】【Lemon-based food products】



Jan-Mar down

％ y-o-yJan-Mar up（Sales volume)＜Japanese soft drinks
POKKA SAPPORO Food & Beverage
Sales composition by sales channel (Jan- Mar)＞46%％ y-o-y（Sales volume)

8.19million

Vending machines
Retailercases【Unsweetend tea drinks】【Soups】



Jan-Mar down

％ y-o-y（Sales volume)

Jan-Mar down

Jan-Mar down

【Soy milk, chilled products】％ y-o-y（Sales volume)Jan-Mar down

Jan-Mar up％ y-o-y（Sales volume)【U.S. Soft drinks 】
※Vending machines (end of Mar.)own brand machines : about 80,000％ y-o-y（Sales volume)【Coffee drinks】
54%％ y-o-y+ Multi-brand machines＜ Japanese soft drinks
Sales composition by genre (Jan- Mar)>

18%
4%
15%

20%

Coffee drinks
Lemon-based

8.19million

drinksTea drinks

cases

Carbonated
Water

28%

15%

Other

（Sales revenue after elimination of inter-company transactions）
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Appendix：Food & Soft Drinks＜ Food & Soft Drinks segment
Revenue break down by geographic area>【Pokka Create Co., Ltd.】billion Jan- Mar Sales revenue
unchanged y-o-y82%＜Number of outlets as of Mar. 31, 2019:197＞

18%

110
53

Japan

Overseas＜ Japanese soft drinks
POKKA SAPPORO Food & Beverage
Sales composition (Jan- Mar)>

3%

28%

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

28%

¥16.0
billionFood

West Japan

Central Japan

Decreased 5 outlets compared with2018 4Q（East -3, Central -3, West＋1）

197
88
72%

Singaporeoutlets
34

50
SG＄ million

Soy and Chilled product

East Japan

109

69%
Soft drinks

197

Exportoutlets

Directory operated
FC
Decreased 5 outlets compared with2018 4Q（Directory operated +１, FC -６）

Copyright, 2019 SAPPORO HOLDINGS LTD. All rights reserved.

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Appendix: Major New Food & Soft Drinks (Japan) Product Launches in Jan, Feb, and Mar

Ingredients and tea leaves
from various parts of Japan

The products use rare ingredientsand local specialty products

Producers

The faces and passion of producers*incl. improved products (*1)

Process

Strong emphasis on manufacturing
processes and craftsmanship

Yasashiku, Shimikomu Mizu to Lemon

Hokkaido Yubari Melon Soda

Hita no Nashi

Local cultural traditions

Collaboration with local communities
and public bodies

Old design

New design
JELEETS (*1）

To be updated to a
design that leverages
both the design from the
1990s and the current
one.

Relaunched unsweetened tea series with Japan-produced ingredients under
the new concept of TOCHI & CRAFT

Can design from 1994.
The “face can” fromthe peak days of the
product, which is a
design familiar tocustomers.

The current candesign. In use
since 2013.

Updated to a modern“face can” based on the“face can” design of the
1990s.

Pokka Coffee (*1）
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Appendix：Major New Food & Soft Drinks (Japan) Product Launches in Jan, Feb, and Mar
Soups

Jikkurikotokoto series

Lemon-based food products

Risorante

Soups
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Appendix: Food & Soft Drinks (Japan)
Completion of soymilk yogurt production line and launch of operations-Moving on to the next stage by creating new demand and engaging in aggressive business expansionUntil now, we have been producing soymilk yogurt at an outsourced plant, but we will be beginning in-house production andembarking on sales expansion based on integrated production and distribution to generate new domestic demand and pursue
further business expansion in the soymilk yogurt category, which will become the core of the soy beans and chilled products
business.
The innovative new production line that is commencing operations covers everything from the process of extracting soymilk fromsoy beans to fermentation of the soymilk and packing of soymilk yogurt in an integrated manner. Further, this enables us to
manufacture products in large containers in addition to the small container products the Company has been selling so far, and alsoenables us to launch new soymilk yoghurt products that respond to customer needs even better. With this production line becoming
operational, we are now able to produce a wide range of products at the Gunma Plant, from room-temperature products to chilled
products, including soft drinks, soups, and soymilk yoghurts.

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Appendix：Real Estate＜ Information about
Investment property ＞＜ Major rental properties & occupancy rates：（Averages for 2019 1Q )>＞Occupancy
rate（%）

Site area（㎡）

Floor area（㎡）

Yebisu Garden Place（1）56,943

298,00799

40 floors above
ground, 5 below

Ebisu First Square

2,596

16,012100

12 floors above
ground, 1 below

645

7,350

98

11 floors above
ground, 2 below

100

13 floors above
ground, 1 below

Ginza Place
Strata Ginza（2）1,117

11,411

No. of floors

500.0
400.0
300.0
200.0
100.0
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)(billions of yen)

397.6
200.0

386.0
215.5

As of

As of

December 31, December 31,
2017

2018

Carrying value on the consolidated
statement of financial position
Fair value(billions of yen)(billions of yen)

＜Operating profit＞

2018 1Q

2019 1Q

Change＜EBITDA＞

2018 1Q

2019 1Q

ChangeYebisu Garden Place, etc.

0.9

0.9

0.0

Yebisu Garden Place, etc.

1.7

1.7

(0.0)

Hokkaido

0.1

0.1

0.0

Hokkaido

0.1

0.2

0.0

Other area & otheroperations

0.3

2.3

2.0

Other area & otheroperations

0.7

0.7

0.0

General corporate

(0.2)

(0.3)

(0.0)

General corporate

(0.2)

(0.3)

(0.0)

Total

1.1

3.0

1.9

Total

2.5

2.4

(0.1)
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Appendix: Real Estate
Digital Urban Development “EBISU UPDATE PROJECT” launched-Creating the “Ebisu of the Future” online-

With the “EBISU UPDATE PROJECT” we will design an “Ebisu of the Future” in digital space based on the image of the presentday Ebisu area with its worldview and lifestyles associated with high quality and refinement, incorporating future trends such as
SDGs so as to respond to the needs of the society of the future.
With “Ebisu of the Future” we aim to create a place where people can gather and meet up and encounter things that enable themto experience the richness of the future enhanced not only by things such as physical objects and status, but also by social
wellness and social contribution, based on the concept of “Social Wellness – Creating a urban area where “Feeling good benefitssociety and the planet.”
WebsiteReference:
Press release by Kodansha Ltd.
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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, 2019 SAPPORO HOLDINGS LTD. All rights reserved.

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