Sapporo Group Business Results Presentation
for the Nine Months Ended September 30, 2023

November 10th 2023

*In this document, the name abbreviations are used:
SH: Sapporo Holdings Limited

SB: Sapporo Breweries Ltd.

PS: Pokka Sapporo Food & Beverage Ltd.
SPB：SAPPORO PREMIUM BEER

SLN: Sapporo Lion Limited.

URL https://www.sapporoholdings.jp/en/

SRE: Sapporo Real Estate Co., Ltd.

YGP：Yebisu Garden Place

PVS：Public Vending Service company
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１. Summary

・・・ P.3

２. Earnings Forecast Revision

・・・ P.4~P.7

３. Business Results

・・・ P.8~P.22

４. Promotion of management that is aware of cost of capital and stock price・・・ P.23~P.25

５. Appendix

・・・ P.26~P.38

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Summary

Business results: increased revenue and core operating profit
2022 Q3
Result2023 Q3
ResultYoYchanges(amount)

YoYchanges
(%)

345.8

377.7

31.9

9.2%

Core operating profit

5.8

14.4

8.6

149.8%

Operating profit

7.5

9.6

2.0

27.1%

Profit attributable to owners of parent

5.3

3.1

(2.2)

(42.2)%（billions of yen）

Revenue

In addition to strong sales in the alcoholic
beverages business, structural reforms are steadily
contributing to profitability, resulting in increased
revenue and profit● Profit declined due to the impact of one-off costs
for the dissolution of Anchor and decreased foreignexchange profit● Upwardly revise the full-year earnings forecast
based on steady progress against the plan●

Main topics
⚫
⚫
⚫

⚫
⚫

The continuing recovery trend for sales volume of commercial-use products in Alcoholic Beverages and sales atexisting restaurants exceeded expectations at the beginning of the year
Canned Black Label was down 3% due to the impact of the downturn following last year’s rush demand prior to pricerevisions, but this was still higher than the change in overall demand for canned beer, which was down 8% (Black Labelwas up 1% compared to the previous year for the cumulative period from Jan.-Oct.)In addition to core brands, there were steady sales for the new RTD products “Shin Lemon Sour” and “Craft Spice
Soda”
Sapporo brand continues to see strong sales overseas
The effect of structural reforms in the Restaurants and Food & Soft Drinks businesses implemented since thepandemic are contributing steadily to bottom line
Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

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Earnings Forecast Revision

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Earnings Forecast Revision

Earnings Forecast Revision
We will upwardly revise the full-year earnings forecast for FY2023. We will implement
appropriate measures to promote structural reforms and growth strategy.
（billions of yen）

InitialPlan

Revised
Plan

RevisedAmount2022
ResultChangeAmount

490.0

510.0

20.0

478.4

31.5

13.5

16.5

3.0

9.3

7.2

Operating profit

9.5

12.0

2.5

10.1

1.9

Profit attributable to owners of parent

5.5

7.0

1.5

5.4

1.5

3.3%

4.1%

―

3.3%

―

RevenueCore operating profit

ROE

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Earnings Forecast Revision

Earnings Forecast Revision_Revenue
Revenue(billions of yen)

InitialPlan

Revised
Plan

RevisedAmount2022
ResultMain revisions

ChangeAmountRevenue

490.0

510.0

20.0

478.4

31.5

Alcoholic Beverages Japanese

250.0

265.0

Increased sales of commercial-use products,
15.0 -pricerevisions for commercial-use products

245.4

19.6

Alcoholic Beverages Overseas

80.0

86.0

6.0 - Revision of foreign exchange forecast

74.0

12.0

Restaurants

17.0

19.5

2.5 - Increased sales at existing restaurants

15.3

4.2

Food & Soft Drinks Japanese

95.0

92.0

Volume decrease associated with structural(3.0) -reforms
such as SKU reduction

98.3

(6.3)

Food & Soft Drinks Overseas

26.0

26.0

24.6

1.4

Real Estate

22.0

21.5

20.7

0.7

0.0

0.0

0.1

(0.1)

Other

0.0
- Decline in equity investments

Because investments are being made after scrutinizing market(0.5) conditions
and deals

0.0

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Earnings Forecast Revision

Earnings Forecast Revision_Core operating profit
Core operating profit(billions of yen)

InitialPlan

Revised
Plan

RevisedAmount2022
ResultMain revisions

ChangeAmountRevenue

13.5

16.5

3.0

9.3

7.2

Alcoholic Beverages Japanese

12.5

14.5

of increased revenue
2.0 -- Effect
Cost management

8.5

6.0

Alcoholic Beverages Overseas

0.5

0.1

(0.4) - One-off integration costs

(0.3)

0.3

Restaurants

0.4

1.9

1.6 - Effect of increased revenue

(0.5)

2.4

Food & Soft Drinks Japanese

1.3

2.3

reforms
1.0 -- Structural
Cost management

0.9

1.4

Food & Soft Drinks Overseas

1.1

1.1

0.0

0.9

0.2

6.5

(1.3)

(6.6)

(1.9)

Real Estate
Other

5.9

5.2

(8.1)

(8.6)

- Decline in equity investments

Because investments are being made after scrutinizing market(0.7) conditions
and deals(0.5)

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Business Results

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Financial Highlights（billions of yen）

2022 Q3
Result2023 Q3
ResultYoY changes(amount)

YoY changes
(%)

345.8

377.7

31.9

9.2%

Revenue（Excluding liquor tax）

261.6

291.6

30.0

11.4%

Overseas revenue

72.5

90.0

17.4

24.0%

EBITDA

20.9

29.3

40.5%

Core operating profit

5.8

14.4

8.5
8.6

149.8%

1.7%
1.8
7.5

3.8%
(4.8)

ー

ー

(6.6)
2.0
(2.2)

ー

RevenueCore operating profit margin
Other operating income (expense)
Operating profit
Profit attributable to owners of parent

5.3

9.6
3.1

27.1%

(42.2)%

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Situation of External Environment Affecting Business Results
Higher costs such as surging raw material costs

Impacts of the COVID-19 pandemic

Costs are expected to increase by ¥14.0 billion vs. 2022 and ¥1.5 billion vs. theinitial forecast,(No change from Q2 financial results) but price revisions willaddress the situation.
We will respond appropriately to the risk of additional cost increases by closely
monitoring the situation.

Sales volume of commercial-use products for Japan alcoholic beverages
and sales of Restaurants business continue to recover, exceeding
expectations at the beginning of the year.
Alcoholic beverages in Japan
Bar graph: Commercial-use (bottles and kegs) Sales Volume Results(vs. 2019)Year-on-yearcomparison

Line graph: Total Demand for Commercial-use Products (vs. 2019) (estimated by Sapporo HD)（billions of yen）

93%

59%

64%

69%

67%

78%

77%
69%

72%

85%

82% 84% 81% 82%

84%
78%

Domestic

Full-year
earnings forecast

Q3 cumulative(14.0)(10.0)

70%

62%

Domestic_Q3 cumulative
54%

(8.2)

44%
31%

Jan.

Feb. Mar. Apr. May. June

July

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.

Feb. Mar. Apr. May. June

2022

July

Aug.

Sep.

2023

Alcoholic beverages in resutaurants
Overseas

Bar graph ：Sapporo Lion restaurants existing store Sales Results(vs. 2019)
99%
74%

39%

98%

105%
96%

Overseas_Q3 cumulative
(1.8)

79%

76%
61%

58%

53%

Jan.

83% 85%92% 92% 93%

109%
104% 106% 108% 105%

（vs.2019）

2023 Jan.

2023 July

2023 Aug.

number of guests

84%

88%

92%

91%

92%

90%

95%

86%

91%

unit price

111%

112%

113%

116%

117%

116%

115%

113%

115%

Sep.

Nov.

Feb. Mar. Apr. May. June

July

2022

Aug.

2023 Feb. 2023 Mar.

Oct.

2023 Apr. 2023 May. 2023 June

Dec.

Jan.

Feb. Mar. Apr. May. June

2023

July

2023 Sep.

Aug.

Sep.

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Financial Highlights
2023 Q3
ResultYoYchanges(amount)

YoYchanges
(%)

345.8

377.7

31.9

9.2%

241.0

274.3

33.3

13.8%

Japanese

178.4

192.5

14.1

7.9%

Overseas

51.7

66.9

15.2

Restaurants

10.8

14.9

Food & Soft Drinks

89.5

Japanese

2022 Q3（billions of yen）
ResultRevenue by Segment

2022 Q3（billions of yen）
ResultCore Operating Profit
by Segment

2023 Q3
ResultYoYchanges(amount)

YoYchanges
(%)

5.8

14.4

8.6 149.8%

4.9

12.8

7.8 159.9%

Japanese

4.7

10.2

5.5

118.4%

29.3%

Overseas

1.0

0.8

(0.2)

(19.2)%

4.1

37.7%

Restaurants

(0.8)

1.7

2.5

ー

87.4

(2.1)

(2.4)%

Food & Soft Drinks

0.8

3.0

2.2 263.1%

71.5

67.6

(3.9)

(5.5)%

Japanese

(0.3)

1.9

2.2

ー

Overseas

18.0

19.8

1.8

9.9%

Overseas

1.1

1.1

0.1

5.0%

Real Estate

15.2

16.0

0.7

4.9%

Real Estate

4.8

4.2

(0.7) (13.7)%

11.7%

Other・ General
corporate andintercompany eliminations

(4.8)

(5.6)

(0.7)

Alcoholic Beverages

Other

0.1

0.1

0.0

Alcoholic Beverages

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ー
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Financial Highlights
Revenue increased 31.9 billion yen <+9.2%> driven by the alcoholic beverages business
For Japan alcoholic beverages, in addition to the recovery in commercial-use beer products and strong performance of RTD, the price revision effect also contributed to increased sales
The primary factors for increased revenue were, in the overseas alcoholic beverage business, the continued strong performance of SPB and the effect of newly consolidating Stone, and, in therestaurants business, the recovery in demand for dining out at beer halls and other establishments
Revenue decreased for Japan food & soft drinks due to structural reforms in the previous year, including the transfer of the cafe business, the liquidation of a vending machine operator
subsidiary, and SKU reduction.

Reasons for changes in sales revenue

Alcoholic Beverages

Food & Soft Drinks

Real Estate(billions of yen)

= Increase

Japanese= Decrease

Overseas

Japanese2023
Q3

Stone+11.0

RTD+3.2

2022
Q3

PVS
liquidation(0.8)

Transfer ofcafebusiness(1.7)

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Financial Highlights
Profit increased by 8.6 billion yen <+149.8%> due to increased revenue and the effect of structural reforms
Increased revenue in the alcoholic beverages business and the effect of structural reforms on the restaurant business and Japan food &soft drinks business steadily contributed to profitability, resulting in increased profit
Profit decreased for real estate due to factors such as HVAC work at the YGP offices

Reasons for changes in core operating profit
Alcoholic Beverages(billions of yen)

= Increase

Japanese= Decrease

Food & Soft Drinks
Japanese（Structural reform effect+1.5）

RTD+1.0

Real Estate

2023
Q3

2022
Q3

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Action Plan
On slides after page 15, we have included further explanations for action plan numbers (1-1) through (10)Plan to steadily disclosedetails of action plan

Japan alcoholic
beverages

2023
Increase beer sales(1-1)

2024★ Alcohol tax revisions

2025 to 2026
★ Alcohol tax revisions

Increase RTD sales(1-2)
Reorganize RTD production locations(2)Overseasalcoholicbeverages

Generate synergies through function integration(3-1)
Begin producing SPB (barrel-aged beer) in the U.S.(3-2)
Optimize global production and logistics(3-3)

Restaurants

Reduce unprofitable restaurants(4-1)
Shift focus to new formats(4-2)

Japan Food &Soft Drinks

Fundamental structural reforms(5)Overseas Soft
DrinksIncrease sales in countries with room for growth(6)Real Estate

Build an asset turnover business model(7)Increase value of core properties centered on YGP(8)Entire Group

Fundamentally reshuffle business portfolio(9)Fundamentally reshuffle by 2024 and review the business portfolio annually thereafter

Generate Group synergies around brand and connections with customers and communities(10)※In order to formulate scenarios for enhancing the group's long-term corporate value beyond the midterm management plan, we established Group Strategy Committee this September.
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Alcoholic Beverages ～Japanese～
Reasons for changes in core operating profit(billions of yen）

Revenue：192.5billions of yen（YoY+14.1billions of yen、＋7.9%）

Reorganize RTD locations +1.1
Streamlining promotional expenses +0.6
Increase in expenses associated with personnel
investment and resumption of activities (1.6)

Core operating profit： 10.2billions of yen（YoY+5.5billions of yen 、＋118.4% ）Beer/Happoshu/New genre
decrease in volume

Volume of beer-type beverages is declining due to the impact of the downturn
following last year’s rush demand prior to price revisions,but beer strengthening (1-1) is progressing well andcontributing to improved profitability✓ Situation of beer and beer-type beverage sales volume
Decrease due to impact of the downturn following last year’s rush demand prior to price revisions

YoY％✓ Total for RTD (cans) +Q3 2023

Q3 2022

Q3 2023

Q3 2022

Koime no Lemon Sour +（3/22 release）% y-o-y（Sales volume basis）

Total demand(estimated by SH): (2%)

Total demand(estimated by SH): +2%

Total demand(estimated by SH): (8%)+% y-o-yCraft Spice Soda

（ Sales volume basis ）Q3 2023

Beer Can（9/12 release）✓ Efforts to strengthen manufacturing and development✓ share of beer sales

There has been progress in improving unit price due to mix improvement
and the effect of price revisions＜New products＞（Canned Black Label(3%)）

Beer✓ selling price excluding alcohol tax

Fixed costs, etc.

Shin Lemon Sour

( ％)Beer, happoshu, and new genre

The share of highly profitable beer products increased, improving the mix% y-o-y（Sales amount basis）

Otoko Ume Sour
Q3 2022

wine, spirits,
non-alcoholic
beverages, etc

RTD

RTD strengthening (1-2) is progressing well
In addition to existing brands, there were strong sales for new products
The RTD production line at the Sendai factory began
operating from October

YoY

YoY

( ％)

Beer/Happoshu/New genre
Marginal profit improvement

Reorganize RTD production locations（2022 Q3）

（2023 Q3）

Total demand (estimated by SH):
share of beer sales 49%％ y-o-y

The RTD production line at the Sendai
factory began operating from October 11
In 2026 we will aim to produce 88% of RTD
in house
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Alcoholic Beverages ～Japanese～

Alcohol tax revisions: Efforts from OctoberMarket trends: A shift to beer/RTD is expected
Image of pricing before/after Oct. 2023 alcohol tax revisions

Change in volume share of canned beer-type beverages/RTD (%)

The price gap between beer and new genre has narrowed, and the price gap
between new genre and RTD has widened

After the 2020 alcohol tax revision, there was an influx from new genre to beer/RTD

Price

High

(before revision) Beer

100%

Alcohol tax
revisions

Source: Intage SRI+ total of four business types (SM, CVS, alcohol volume sales, DRUG)
Cumulative from Jan.-Dec. for 2020 to 2022, cumulative from Jan.-Jul. for 2023

+5%

90%
29%

34%

80%

(after revision) Beer

70%

Price difference contracts

50%(after revision) New genre

(7)%

60%
38%

31%

40%
30%

(before revision) New genre

11%

12%

+3%

20%

Price difference expands

10%

24%

21%

0%

Price

Low

(not covered) RTD

2020

2021

2022

Canned beer

Happoshu

New genres

2023
RTD

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Alcoholic Beverages ～Japanese～

Alcohol tax revisions: Efforts from October
Our efforts: These changes present a possible opportunity for our company, which has a high proportion of beer products
Break away from low profitability and realize business growth by strengthening main brands and proposing new products

New product proposals

Strengthening main brands
Black Label

YebisuCapture new customers &enhance brand loyalty

Advertising

Experiences

Strengthen unique worldview

Home-use
Launch of limited
release products

Brand experience

Commercial-use
Black Label TheBar

Existing brand+ & roll-out of
CREATIVE BREW

Craft Spice Soda
Our 2nd RTD product promoted
as going great with a meal,
following the New Lemon Sour

A “draft” beer with 70% lesspurine bodies and carbs

There is a growing need for new
alcoholic drinks that go great with ameal and can be drank as a first drink

About 90% of light/zero beer-type
beverages are happoshu or new genre⇒There is room for growth for beer

⚫ Stimulate purchase ofhigh-priced beer during
the year-end and New
Years period when
demand is at its peak
⚫ Roll-out of new CREATIVE BREW line

Part 1: New Origin(2/21 launch)
Perfect
Black Label

Nanamaru

The light/zero market is expanding against a
backdrop of growing health consciousness

Realize a deliciousness that is not
sweet by utilizing spices
We propose a drink that goes great withand complements a mealPart 2: Orange New proposal for beer that is both delicious and(10/11 launch) low in purine bodies and carbs amid growing

awareness of the need to take care of one's body
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Alcoholic Beverages ～Overseas～
Revenue：66.9billions of yen（YoY+15.2billions of yen、＋29.3%）

Reasons for changes in core operating profit(billions of yen）
Including Stone‘s loss and integration cost
(Because SPB* is in preparation for production)

Core operating profit： 0.8billions of yen（YoY+(0.2)billions of yen 、(19.2)% ）CanadaThe U.S.

Vietnam*南カリフォルニア州

In Canada we increased both revenue and profit mainly due to the effect of improved unit price, despite the impact of inflation and other factors
In the US, while SPB continues to perform well and the function integration and improvements in logistics costs are taking effect, profit declined due to deteriorating market
conditions caused by bad weather in Southern CA*, which is Stone’s main battleground, and inflation, as well as the fact that SPB production is in preparation (3-2)✓ Sales in each country✓ Status of synergies with Stone
Steadily generate synergies through function integration

Canada％ y-o-y- The home-use market declined year-on-year, partly due to
inflation- Company performance exceeded total demand and wason par with last year

The U.S.(SPB)％ y-o-yVietnam- Total demand declined year-on-year, due to bad weather
and inflation, among other factors- SPB remained strong, at +2% year-on-year- Strong performance for beer kegs
- Both the market and group results were sluggish for canned
beverages due to stagnancy of the Vietnamese economy and theimpact of inflation

Preparations continue to start SPB manufacturing within the year⚫

Intensification of collaboration with agents in APAC
Distributorship agreement signed with Carlsberg for SPB in Hong Kong,
Singapore and Malaysia
Aiming to sell 1.5 million cases** in the ASEAN + Hong Kong market* in 2026
- Hong Kong, Singapore
Signed agreement prior to distributorship contract(Aim to launch from Jan. 1, 2024)- Malaysia
Signed agreement prior to distributorship contract
and production outsourcing contract*Includes Vietnam, Singapore, Malaysia, Thailand, Indonesia, the Philippines, and Cambodia within ASEAN**Equivalent to 20 large bottles of 633 ml each

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Alcoholic Beverages ～Restaurant～
Reasons for changes in core operating profit(billions of yen）

Revenue：14.9billions of yen（YoY+4.1billions of yen、＋37.7%）
Core operating profit： 1.7billions of yen（YoY+2.5billions of yen）

SLN
（non-consolidated
settlement）

Affiliatedcompanies
and others

The effect of structural reforms (4-1) implemented during the pandemic steadily contributed to profit,
and the company continued to be profitable✓ Trends in Core operating Profit and Number of Stores
Continued profitability from Q2 FY2022 onward due to the effects ofstructural reforms, including reduction of unprofitable locations

0.7

0.4
1
2019

2020

2021

2022
Q1

0.1

0.1

2022
Q2

2022
Q3

0.3

⚫ Brand communication of Japan alcoholic beverages⚫

Limited Sale of Yebisu Orange <Keg Beer> at YEBISU BAR⚫

Beer hall celebrates 124th anniversary

0.9

0.1

2022
Q4

2023
Q1

2023
Q2

2023
Q3

(1.0)
Reduced the number 0.7
of restaurants by 30%
(5.0)

(4.2)

Bar graph: Trend in restaurant business core operating profit
Line graph: Trend in number of Sapporo Lion Group restaurants(change with 2019 as 1)

Cumulative sales results for existing locations by time slot for SLN Jan.-Sep. (compared to 2019)
Opening～14:59

112%

15:00～16:59

124%

17:00～19:59

109%

20:00～Closed

92%

Sales were strong for the after-lunch to evening time slot due to capturing
the inbound tourist and senior customer groups

Ebisu Beer Hall, Japan’s first beer hall, opened 124 years ago
on August 4, 1899 as a promotional location for Yebisu beer.
On the occasion of the 100th anniversary of Sapporo Lion's founding, thecompany designated August 4, the day of its founding, as "Beer Hall Day" tocommemorate the birth of the first beer hall in Japan. It was also recognized by
the Japan Anniversary Association.
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Food & Soft Drinks～Japanese～～Overseas～

Revenue：67.6billions of yen（YoY(3.9)billions of yen、(5.5)%)

Revenue：19.8billions of yen（YoY+1.8billions of yen、＋9.9%）Core operating profit： 1.9billions of yen（YoY+2.2billions of yen）

Core operating profit： 1.1billions of yen（YoY+0.1billions of yen、＋5.0% ）Reasons for changes in core operating profit(billions of yen）

Reasons for changes in core operating profit(billions of yen）

decrease involumeMarginal profit
improvement

fixed cost

Effects of structural reforms contributed steadily to the bottom line
Take actions outlined in the medium-term management plan, and proceed tofundamental structural reforms (5)✓ - Status of structural reforms

marginal
profitstructuralreform, etc

KPI cost structural reforms

fixed cost

othersSales grew steadily primarily in Singapore and Malaysia (6)Continue with initiatives to expand sales channels✓ Situation of sales expansion

Steady progress in cost structure, contributing to improved business profit- Improve marginal profit ratio

Singapore

Product mix improvement by reducing unprofitable SKU +500 million yen

Malaysia- Structural reforms, etc. (Review of business portfolio)
Liquidation of vending machine operator subsidiary PVS +500 million yen％ y-o-yDemand is sluggish, but growth is being
achieved by strengthening the sales structure(Sales amount on a local currency basis)- Reduction of fixed costs
Reduction of unprofitable vending machine columns +600 million yen

Strong primarily for home-use channel(Sales amount on a local currency basis)

Decrease in disposal value due to SKU reduction +200 million yen
Variable selling cost unit price improvement +200 million yen％ y-o-yExport％ y-o-ySelection of export destinations based on
profitability(Sales amount on a singapore currency basis)
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Real Estate
Revenue：16.0billions of yen（YoY+0.7billions of yen、＋4.9%）

Reasons for changes in core operating profit(billions of yen）
Impact of office HVAC work

Core operating profit： 4.2billions of yen（YoY+(0.7)billions of yen 、(13.7)% ）YGP

SapporoOthers

While there was increased revenue from YGP Center Plaza, there was a decline in revenue due to HVAC work at the YGP office space
and a decrease in profit due to one-off costs
Proceeding with efforts to build an asset turnover business model (7) and increase value of core properties centered on YGP (8)✓ Initiatives promoting reusable energy✓ Status of YGP⚫

YGP Center Plaza
Number of visitors increased 1.5 to 2.0x since remodel*(*Remodeled in November 2022)

YGP office wing
Occupancy rate is as expected with decline due to HVAC work**
Seeking to maintain rent levels by increasing property value(%)

YGP office space occupancy rate

100

The occupancy rate excluding HVAC work areas
is in the upper 80% to 90% range

90
80**HVAC work scheduled to take placeover about 10 years starting in 2022
(Adjustment of work areas implemented
from 2021)

70

Occupancy rate is as expected
vs. the year-long plan of 79%

19Q1 19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 22Q4 23Q1 23Q2 23Q3
occupancy rate

occupancy rate excluding HVAC work areas

Signing of first virtual PPA in the real estate industry(according to our research)
First step toward generating 100% of own electricity consumption by 2040
Estimated CO2 emissions reduction is about 2,000 tons, equivalent toabout 15% of the company's electricity consumption
Virtual PPA
PPA is a form of contract for the direct sale of renewable energy power.
A virtual PPA is an arrangement separating electrical power and its
environmental value to distribute these separately.
(this enables power generating companies to supply environmental value fromremote locations without physical restrictions, and consumers are able to obtaincertificates of environmental value for the amount of electricity generated by thefacilities subject to the contract while entering into electricity supply and demand
contracts with electricity retail providers as usual)✓ Status of building an asset turnover business model- Equity investments
Investments are being made after scrutinizing market conditions and deals- The REIT Preparatory Office was newly established in Marchand we established an investment advisory company in August
Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

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Action Plan KPI※1Forex assumption: ¥130

Q3results※2 Local currency basis (Singapore dollar)＊ to be disclosed in Q2 or fiscal year end financial results

Japan alcoholic
beverages

2022 Q3

2023 Q3

2022

2023Plan

Increase beer sales: share of beer sales（1-1）

66%

69%
+11%

68%

71%
+9%

79%
+11%

（y-o-y）（VS 2022）

+23%

+74%

（y-o-y）（VS 2022）-

RTD Business Growth and Production Streamlining, Etc.

（y-o-y）

+18%

-

-

RTD growth: RTD sales amount（1-2）-

Increase production efficiency: ratio of in-house production（2）

-

＊

73%

64%

88%

4.99million
cases

5.31million
cases

6.61million
cases

7.47million
cases

10.0million
cases

-

＊

-

$4M

$23M

-

¥1.0billion-¥1.0billion¥2.0billion

+3%

+30%

（y-o-y）（VS 2022）

Stone Acquisition Synergy / SPB Growth

Sapporo brand volume （3-1~3）
Cost synergy（3-1~3） ※1

Japan
Cost Structure Reforms（5）food & soft drinks

Overseas
soft drinks

Expanding Sales and Increasing Logistics Efficiency

Real Estate

Revenue Structure Diversification

Overseas sales amount (6) ※2
Asset share of securitization business (7)Increase value of YGP** **YGP: Yebisu Garden Place

Rate of increase in average rent price (8)Entire Groupmedium-termplan Target

Reinforcement of Beer / Improving Profitability of Beer-type Bev.

Improve profit margin: selling price excluding alcohol tax（1-1）

Overseasalcoholicbeverages

Full year

Drastic Reorganization of Unprofitable Businesses, Etc.（9）PVS liquidation effect +500 million yen
Anchor dissolution effect +300 million yen-（y-o-y）（y-o-y +6%）

+0.7%
（y-o-ｙ）

-

-

＊

3.7%

7.2%

19.2%

-

＊

-

+0.4%
（y-o-y）+2.5%（VS 2022）-¥0.8billion¥1.0billion（y-o-y）¥0.5billion（y-o-y）-

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Promotion of management that is aware of cost of capital and stock price

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

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Promotion of management that is aware of cost of capital and stock price
While the P/B ratio is above 1.0, we recognize that the current ROE level does not
sufficiently exceed the cost of shareholders’ equity as required by the market
Change in P/B ratio - Past 10 years
2.0
1.5
1.0

10.0%

1.1

1.3

1.3

1.5

1.5

1.5
1.1

1.2

Cost of equity isrecognized to be around 6%

5.0%
1.0

1.0

0.0%

P/B ratio is above 1.0

2013

0.5

Awareness ofstatus quo

2026
Aim for 8% ROE

Change in ROE - Past 10 years

2014

2015

2016

2017

2018

2019

2020

2021

2022

2026

-5.0%

0.0
2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

-10.0%- Target of 8% ROE set in the Medium-Term Management Plan announced in November 2022
- ROE improvement in 2023 is expected to be limited at a forecasted 4.1% due to the implementation of structural reforms, and the low
ROE compared to the industry average is a challenge that needs to be resolved as soon as possible
Reference: Stock price data (stock price index using the closing price as of the end of December 2012 as 100)
400

300

200

100

0
end-

end-

end-

end-

end-

end-

end-

end-

end-

end-

end-

2023

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

endSep.

Sapporo HD

TOPIX

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

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Promotion of management that is aware of cost of capital and stock priceTo promote a financial strategy that emphasizes "sustainable growth" and "capital efficiency," which we have beenworking on for some time, and to achieve an increase in corporate value

Policy- Aim to achieve Medium-Term Management Plan financial targets (ROE of at least 8% in 2026, overseas sales revenue and EBITDA growth of 10%/year)- Promote both growth investment and shareholder returns based on cash allocation policy

For the realization of sustainable growth

For the enhancement of capital efficiency⚫ Enhance the earning capacity of each business⚫ Review of business portfolio- Fundamental review of businesses positioned for
restructuring/reorganization- Realization of business growth
Proactively develop areas of strength- Cost-related structural reforms
Create business structures that can respond to changes in the

Efforts toenhance ROE

environment

Exit businesses that cannot be expected to improve and focus on growthareas⚫ Balance sheet reforms- Review of assets held
Improve or sell underutilized assets and assets with low turnover⚫ Growth investment- Investment in overseas businesses with growth potential- Investment in domestic business to strengthen the earnings baseRespond flexibly to growth investment opportunities by utilizing- Reduce cross-shareholdings
Aim to reduce the ratio of book value of cross-shareholdings to total equity
attributable to owners of parent to less than 20% at an early stage during
the period of the Medium-Term Management Plan

financial leverage to the extent that our current credit rating can still be⚫ Shareholder returns

guaranteed- Increase the level of dividends in accordance with profit growth
Aim to increase the amount of dividends while maintaining dividend stability
Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

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Appendix

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

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Financial Indicator
Financial Targets
Q3results

ROE

Core operating profit(Approximation) *2023 Q3

2022

-

-

3.3%

5.8

14.4
billions of yen

9.3

4.1%
<3.3%>

16.5<13.5>
billions of yen<16.2%>

29.3

29.9

billions of yen

billions of yen

billions of yen

37.3<34.7>
billions of yen

14.1%

24.0%

<9.4%>

72.5

90.0

102.2

billions of yen

billions of yen

billions of yen*Approximation for achieving financial targets

2023 plan<Initial plan>

24.8%

20.9

Overseas revenue
Average growth rate (CAGR)

Overseas revenue(Approximation) *billions of yen

40.5%

EBITDA
Average growth rate (CAGR)EBITDA(Approximation) *Full year

2022 Q3

billions of yen

medium-termplan Target

116.7<111.8>billions of yen

2026 Target

8.0%
25.0

*
billions of yen

About 10%50.0*

billions of yen

About 10%140.0 *
billions of yen

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

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Financial Indicator
Target for core operating profit margin
Q3results

medium-termplan Target

Full year

2022 Q3

2023 Q3

2022

2023 plan(Initial plan)

2026 Target

Alcoholic beverages in Japan

2.6%

5.3%

3.5%

5.5%
<5.0%>

5.7%

Alcoholic beverages in Overseas

2.0%

1.2%

(0.4)%

0.1%<0.6%>

6.2%

Alcoholic beverages
in Restaurants(7.2)%

11.6%(3.3)%

9.9%<2.1%>

5.0%
3.8%

Food & Soft Drinks
In Japan(0.5)%

2.8%

0.9%

2.5%
<1.3%>

Food & Soft Drinks
In Overseas

5.9%

5.7%

3.6%

4.2%
<4.2%>

5.0%

4.9%

4.5%
<4.6%>

5.7%

Real Estate ※*EBITDA-based ROA

3.5%

3.5%

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

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Balance Sheets（billions of yen）

Total assets

End of 2022

2023 Q3

ChangeCash and cash equivalents

15.4

18.6

3.2

Trade receivables

96.6

91.0

(5.6)

Inventories

47.5

51.0

3.5

Other current assets

19.9

11.2

(8.7)

Fixed assets and intangible assets

138.4

149.3

Investment property

209.6

Goodwill
Other non-current assets
Total assets

Total liabilities and equity

End of 2022

2023 Q3

ChangeTrade payables

35.7

37.1

1.4

Short-term financial liabilities

86.5

53.4

(33.2)

Other current liabilities

97.3

101.0

3.7

Long-tern financial liabilities

155.4

175.9

20.6

10.9

Net defined benefit liabilities

3.5

3.4

(0.1)

210.1

0.5

Other non-current liabilities

93.6

105.4

11.9

33.8

36.1

2.3

471.9

476.2

4.3

77.8

89.9

12.0

Total liabilities
Equity attributable to ownersof parent

166.3

180.1

13.8

639.1

657.2

18.1

Non-controlling interests

0.9

0.9

0.0

Total equity

167.2

181.0

13.8

Total liabilities and equity

639.1

657.2

18.1

1.4

1.2

－

241.9

229.3

(12.6)

Debt-to-equity ratio (times) :Net
Balance of financial liabilities

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Status of Each Cash Flow（billions of yen）

2022 Q3

2023 Q3

ChangeChange (%)

CF from operating activities

13.6

38.2

24.6

180.0%

CF from investing activities(42.0)(15.2)

26.8

ー(28.4)

23.0

51.4

ー

30.7

(19.9)(50.7)ーFree CF

CF from financing activities＜Investment total（①＋②）＞

billion➀ Capital expenditure (cash basis） ：billion（Property, plant and equipment, intangible assets, investment property）＜Major items＞
・Alcoholic Beverages：¥(7.3)billion
Japan：¥(2.7)billion

Capital expenditures¥(19.6) billion

CF from operating
activities+¥38.2 billion

Other investments－Asset sales+¥4.3 billion

overseas：¥(4.5)billion

・Food & Soft Drinks：¥(2.3)billion
Japan：¥(1.9)billion

・Real Estate：¥(8.9)billion
Yebisu Garden Place and others

・Group-wide：¥(1.2)billion② Other investments－Asset sale ：billion（Stock sales, etc.）

Cash in¥38.2billion

Cash out¥(15.2)billion

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

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Alcoholic Beverages Data
Japanese※1：:Following the agreement of the Brewers Association of Japan,
there is no disclosure of the sales volume for the first quarter.
The sales volume for the first half and end of the fiscal year shall be disclosed.

Sales Volume:Beer (Japan) (※1)
①Beer (total)
Sapporo Draft Beer Black Label (total)
YEBISU (total)②Happoshu (total)③New genre beer products (total)
Beer, happoshu, and new genre （total ①+②+③)

2022Q3

YoY

2023Q3

ー
ー
ー
ー
ー
ー

(10,000 cases)

Change(%)

ー
ー
ー
ー
ー
ー

3.5%
5.9%
(7.8%)(6.9%)(12.2%)(1.7%)＜ Beer lineup sales volume (break down) ＞(Jan – Sep)

＜10-year change in composition ratio
of beer,happoshu, and new genre＞

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

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Alcoholic Beverages Data
Japanese
Sales:Beer (Japan)
Beer（billions of yen）
2022Q32023Q3

YoY
Change(%)

Happoshu

104.0
4.5

112.3
4.5

(0.4%)New genre

32.4

31.1

(3.8%)

140.9
16.8

148.0
20.0

5.0%
19.2%

Domestic wines

2.4

2.2

(5.2%)

Imported wines

4.6

4.4

(4.9%)

7.0
19.3

6.6
22.1

(5.0%)

184.0

196.7

6.9%

Beer, happoshu, and new genre
RTD

Wine (total)
Spirits and Shochu (total)
Total＜ Jan- Sep sales revenue ＞ (billions of yen)

8.0%

14.4%

＜ Jan- Sep sales breakdown by category ＞*Before subsidiary companies sales, elimination ofinter- company transactions and rebate deduction*From 2021, Hyosai Sour and 99.99 keg
are reclassified from Spirits to RTD.
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Alcoholic Beverages Data
Japanese＜Changes in the amount of liquor tax per 350 ml＞
（yen）

77
70
63.35
Beer

54.25

Happoshu
New genre

46.99
37.8

RTD

✓ Beer and Beer
type beverages
yen

✓ RTD
yen

35

28

2020

2023

2026

（year）

Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

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Alcoholic Beverages Data
Overseas(10,000 cases)

Sales Volume:Beer (International)

2022Q3

Overseas brand (※1)

2023Q3

YoY
Change(%)

1,039

1,222

17.6%

Sapporo brand

319

325

2.0%

①North America

1,358

1,547

14.0%

Sapporo brand

180

206

14.6%

②Other areas

180

206

14.6%

Total（①＋②）

1,538

1,753

14.0%

499

531

6.5%

Sapporo brand Total※1：SLEEMAN, Anchor, Stone, etc.

＜ Overseas sales volume by brand (Jan-Sep) ＞＜ Overseas sales volume by Area (Jan-Sep) ＞（10,000 cases）（10,000 cases）

2,000

2,000

1,500

531
463

407

336

499

1,000
500

1,500

206
180

187

120

132

1,283

1,248

1,283

1,358

2019

2020

2021

2022

1,000
1,007

1,033

1,008

1,039

1,222

0

500

1,547

0
2019

2020

2021

Overseas brand

2022
Sapporo brand

2023

North America

2023

Other areas
Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved.

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Alcoholic Beverages Data
Restaurants
Restaurants＜Composition of Restaurants by Format＞
2022Q3

YoY

2023Q3

Change(%)

Revenue （billions on yen）

10.8

14.9

37.7%

Number of Restaurants

153

135

(11.8%)＜Trend in Revenue of Restaurants Businessand Number of Restaurants＞（Jan-Sep）（billions of yen）

135Outlets（Restaurants）＜Composition of Restaurants by Region＞

135Outlets
Bar graph: Trend in Restaurant business core operating profit
Line graph: Trend in number of Sapporo Lion Group restaurants

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Food & Soft Drinks Data
Japanese（billions of yen）

Sales:Food & Soft Drinks (Japan) (※1)

2022Q32023Q3

YoY
Change(%)

Soft Drinks

45.7

43.1

(5.8%)

Food（Lemon・Soups・Plant milk)

21.8

20.5

(5.8%)※1：Only domestic sales(Before Rebate subtracted from sales)＜ Japanese soft drinks POKKA SAPPORO Food & Beverage ＞
Sales composition by sales channel (Jan- Sep)

＜Japanese soft drinks Sales composition by genre (Jan- Sep)>

24.15 million
cases

24.15 million
cases

Overseas
Sales:Food & Soft Drinks (Overseas) (※2)
Singapore(billions of SGD)
Malaysia(billions of MYR)
International(billions of SGD)
※2： Before sales deduction, exclude OEM sales

2022Q3

11.1
5.6
4.0

2023Q3

11.7
6.1
4.0

YoY
Change(%)
5.3%
8.5%
0.5%
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Real Estate Data
＜ Information about Investment property ＞

Real Estate(billions of yen)

＜ Major rental properties & occupancy rates：（Averages for 2023 Q3)>
Site area（㎡）
Yebisu Garden Place（1）Ginza Place
Strata Ginza（2）Floor area（㎡）

Occupancy rate（%）

No. of floors

400.0
300.0
200.0

56,943

298,00777

40 floors above ground,
5 below

645

7,350

91

11 floors above ground,2 below

1,117

11,411100

13 floors above ground,
1 below

100.0

385.7
209.6

382.9
203.2

0.0
As of December 31,

As of December 31,

2021

2022

Carrying value on the consolidated statement*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 922m 2 of the site (sectional ownership) and 89.72% of the building(joint management)of financial position
Fair value(billions of yen)(billions of yen)＜Core Operating profit＞

2022 Q3

2023 Q3

Change＜EBITDA＞

2022 Q3

2023 Q3

ChangeYebisu Garden Place, etc.

3.7

3.1

(0.6)

Yebisu Garden Place, etc.

6.0

5.9

(0.1)

Other area &other operations

1.5

1.4

(0.1)

Other area &other operations

2.0

1.9

(0.1)

Hokkaido

0.5

0.6

0.0

Hokkaido

0.9

1.0

0.0

Equity investment, etc

(0.9)

(0.9)

(0.1)

Equity investment, etc

(0.5)

(0.5)

(0.1)

Total

4.8

4.2

(0.7)

Total

8.5

8.3

(0.3)
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As an intrinsic part of people's lives, Sapporo will contribute to
the evolution of creative, enriching and rewarding lifestyles.

This document was prepared for the purpose of providing information to serve as a reference for investors in making investment decisions and not
for the solicitation of investment or any other similar such actions.
The earnings forecasts and forward-looking statements contained in this document were prepared based on the judgment of the Company as ofthe date of this document and include potential risks and uncertainties.
Actual published future results may therefore differ materially from the content of this document.
The Company shall not in any way be responsible or liable for any losses or damages resulting from the use of the information in this document.

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