2016
Sapporo Group Business Results Presentation
for the Three Months Ended March 31, 2016

May 10, 2016

Sapporo Holdings Ltd.
URL http://www.sapporoholdings.jp/english

Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

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Contents

1. First-Quarter 2016 Topics

2. Overview of First-Quarter 2016 Results

Appendix: Collection of Data by Business

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

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1. First-Quarter 2016 Topics

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved

3/26

First-Quarter 2016 Group Topics
Earnings: operating income increases ¥2.9 billion y-o-y(billions of yen) 2015 1Q

Net sales
OperatingincomeOrdinary
incomeNet
income2016 1Q change

108.4

111.3

2.9

(4.3)

(1.4)

2.9

(4.5)

(2.2)

2.2

0.8

(2.0)

(2.8)

Earnings improved at all segments. Consolidated
operating income increased significantly by ¥2.9
billion y-o-yIn addition to the topline, we are working on
initiatives for improving management efficiency
Net income declined ¥2.8 billion compared with 1Q
2015, when an extraordinary gain from a sale ofrental property, Shibuya Sakuragaoka Square.

Smooth start to the year of carrying out our word
Under the business policy of the “first year of a new period of growth in the beer business,”
the two top brands of Black Label and Yebisu are leading the categoryImprove management efficiency at International and Food & Soft Drinks throughreduction of production cost and review of business transactions
Yebisu Garden Place has been maintaining high occupancy rate since the beginning of
the year and rent levels also have improved.
GINZA PLACE to be completed in June as planned and currently coordinating withtenants for commencement in September

Response to the risk of failing to achieve the plan
Continue with control of costs such as sales promotion proportionate to sales in eachbusiness
Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

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First-Quarter 2016 Topics: Japanese Alcoholic Beverages
Sales volume of beer and beer-type beverages
up 1% y-o-yJapanese beer business%Y-o-y change in sales volumes of 3 core brands
Total beer demand<Beer> up 5% y-o-yBlack Label Brand total 4% y-o-yCanned products have been leading sales in a significant way since 2015

Black Label
Yebisu Yebisu Brand total 7% y-o-y
Improved quality in March.
Sales of Hanayagi no Jikan launched in January and
Yoin no Jikan launched in March have been received well
 1Q beer breakdown (volume) 2015: 55% → 2016: 57%

Jan

Feb

Mar
Total new genre demand
Mugi to Hop The gold

<Happoshu + new genre> down 5% y-o-yMugi to Hop The gold up 12% y-o-yRelaunched in February, have been received well

 Goku Zero down 16% y-o-yWhile the decline has slowed, it needs a revamp going into summer
Jan

Feb

Mar

 Sales of new genre products declined y-o-y compared with the previous year
when new products were introduced

Promoting diversification of product offerings

Penfolds

Taittinger

Dewar’sBacardi Proposing international brands in the growing fine wine*1
market Among western spirits, scotch Dewar’s and world’s top-sellingrum*2 Bacardi have been leading the sales*1 Medium to premium wines costing 1,500 yen or more *2 Source: IWSR, 2014
Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

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First-Quarter 2016 Topics: International
North American beer business performed well, Vietnamese businessslowed down partly due to tax increase
U.S. soft drinks businessNorth American beer businessNorth American beer sales volume for Jan-Mar (y-o-y)Totaldemand in SLEEMAN
Canada total 101% Premium
98%
100%

Value
103%

Total
demandin U.S.
102%

SapporoUSA
97%

Country Pure Foods, which was newly
consolidated in February 2015, began contributing
on a full-year basis

Jan-Mar net sales（US$ millions）
Total

Pursued synergies with Silver Spring Citrus
through production structure optimization, etc.
Profitability improved through revised transactions
and reduction of cost of orange juice

Chambly Brewery(Quebec)
Vernon Brewery(British
Columbia)

Vietnamese beer businessChange in Jan-Mar sales volume
in Vietnam

Guelph Brewery(Ontario) New label for bottled products
launched in April.
Unified to silver.

 SLEEMAN
In the west coast, where Vernon Brewery is located, value
products are leading
In Quebec and Ontario, Guelph and Chambly Breweries
are focusing on premium products

 Sapporo USA
Temporarily down y-o-y due to the previous year’s
inventory adjustment. It has been smooth since April
Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

The 2013 value isset as 100

Relaunched in November. Bottled and canned products have been
performing well.
Tax increase in January. Sales of silver cans and keg products declined
following the temporary demand increase ahead of the change.

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First-Quarter 2016 Topics: Food & Soft Drinks
Domestic food and soft drinks%

Y-o-y change in Jan-Mar
soft drink sales volume
Total
demandY-o-y change in Jan-Mar
food sales value*

POKKA
SAPPORO

Domestic soft drinks

Lemon-based
products(flavorings)

Instant soup(incl. soup in
a cup)*Total demand data: Source –Total for SM and CVS formats by
Intage SRI
Lemon-based product market (Sapporo’s definition) and instantsoup market: y-o-y change in Jan-Mar 2016 cumulative sales value

Profit growth to continue from product mix
improvement, higher efficiency and price increase<Domestic soft drinks> Sales volume unchanged y-o-y, sales value up 1%
Lemon-based drinks: Sales volume down 1% y-o-y in a reaction to thelaunch of Kireto Lemon-ENERGIE last year
Coffee drinks: Sales volume up 6% y-o-y; salesof Biz Time (400 mg medium sized, resealablecans) have been strong<Domestic foods>
Lemon-based food products: Sales value up 6% y-o-y;sales of Pokka Lemon 100 have been strong even after
the price increaseInstant soup: Sales value down 2% y-o-y due to theimpact of warmer-than-usual winter despite the enhanced
lineup Aim to expand sales in Indonesia,
where a new plant is scheduled tostart operation this year, and in
Jan-Mar overseas sales (SG$ million) Myanmar, where license-based
production starts
 In Singapore, maintained top market
shares in tea beverages and nonchilled juice markets.

Overseas soft drinks

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

New productKarao

Soymilk The soy milk business, launched last year,
had Jan-Mar net sales of ¥500 million

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First-Quarter 2016 Topics: Restaurants
Transforming into highly profitable structure throughstructural reforms

Restaurants business in Japanbillionyen

Sapporo Lion
Comparable-store sales: up 3% y-o-yTrends of net sales and number of
Sapporo Lion outlets
Outlets

10

Harsh environment of high ingredient andpersonnel costs continues

8

5.4

5.5

5.4

5.4

5 wards in *1
central Tokyo

Closed 20 outlets in 2015, carrying out
structural reforms, while opening new outlets
at strictly selected locations
Hokkaido※240Metropolitan Otherareas(excl. Kanto) *2

Nagoya62<Breakdown of 170 Sapporo
Lion outlets>

5.4

1Q: 2 outlets newly opened, 2 closed
2012-end

2013-end

2014-end 2015-end 2016-end

Net sales

Number of outlets

Kanto(excl. 23 wards)

Tokyo 23 wards(excl. 5 wards)*1 Chuo, Chiyoda, Minato, Shinjuku and Shibuya wards *2 Sendai, Kyoto, Osaka, Kobe, Fukuoka

Overseas restaurants business<Restaurant expansion in Singapore>

GINZA LION BEER HALL
Conveying SAPPORO Brand’s
taste

Tonkichi Ginza Shokudo
A new brand launched last year

As of the end of March 2016: 14 restaurants
in Singapore-GINZA LION (beer hall): 2 outlets-Tonkichi (pork cutlet): 4 outlets- Rive Gauche (patisserie): 8 outlets

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

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First-Quarter 2016 Topics: Real Estate
Rental properties<Yebisu Garden Place>Leasing of the space after a large-scale tenant left
has been completed. Maintaining high occupancy rate
Also working on improving rent levels of the existing
tenants
Value up promotion

Yebisu Garden Place

Ebisu First Square
Fully operational andcontributing on a fullyear basis

 Following the renovation of the dining area in Glass Square

last year, we are planning refurbishment of the restaurant floorsof 38th and 39th floors
Change in average occupancy rate of Yebisu
Garden Place office space (contract basis)

2015
1Q

2015
2Q

2015
3Q

2015
4Q

2016
1Q

87%

91%

93%

99%

99%

Property development<GINZA PLACE> Commencement on Sep. 24 finalized(Basement 1 and 2 to open in advance on Aug. 3)
 To become a commercial complex which will be the newlandmark and information dissemination/exchange base at
the Ginza 4-chome crossing Above the ground 11, below 2 :Floor space 4,232㎡⇒7,382㎡
Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

Rendering of GINZA PLACE
Floor
11
Kobe beef teppan yaki
restaurant
7
French restaurant, bistro, cafe
3
Event space with cafe
1, 2 Nissan Motor showroom
B1, 2 Sapporo Lion

9/26

2. Overview of First-Quarter 2016 Results

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved

10/26

20161Q

Results Highlight(billions of yen)

Consolidated financial
results

2015 1Q

2016 1Q

Net sales(incl. liquor tax)

108.4

111.3

2.9

2.7%

Net sales（excl. liquor tax)

86.8

88.8

2.0

2.4%

Overseas net sales to total(excl. liquor tax)

25.1 ％

23.4 ％

ーー

Operating income

(4.3)

(1.4)

2.9

ー

Operating income before
goodwill amortization

(3.3)

(0.4)

2.9

ー

Ordinary income

(4.5)

(2.2)

2.2

ー

Net income attributable toowners of the parent

0.8

(2.0)

(2.8)

ー

EBITDA

2.5

5.0

2.4

98.4%

Balance of Net debt

239.9

227.5

(12.3)(5.2)%

1.5 times

1.5 times

(0.0)

ー

Ｄ／Ｅratio※Exchange rate
2015: US$=¥119.17 CAN$=¥96.00

YoY changes(amount, %)2016:US$=¥115.33 CAN$=¥83.97

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Overview of First-Quarter 2016 Results(1) Special Factors<Special factors in the business results (year-on-year)>Business segment

Details

International

Operating income
impactSales impact

2015: Silver Spring Citrus account period changeInternational(―: negligible)(changed from Oct 2015 to Sep 2016 -> Jan 2016 to Dec 2016)⇒2015: consolidating the results for 6 months from Oct 2014 to
Mar 2015- approx. 2.8 bnyen―

2015: Country Pure Foods new consolidation(Consolidation started from Feb 24, 2015, when the stake was
acquired)+ approx. 3.1 bn
yen

2016: Sales increase for two months of Jan, Feb

Food & Soft Drinks+ approx. 0.5 bn
yenEntered soy milk business in Sep 2015

<Impact of foreignexchange rates>―

Average rate during the period (Jan – Mar)2015 1Q

2016 1Q

US＄¥119.17¥115.33

CAN＄¥96.00¥83.97SG$¥87.80¥82.18<Change indepreciation method>
Declining balance method insome portions → straight line
method for all assets
Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

Decline in depreciation(Jan-Mar)Net sales

OperatingincomeJapanese Alcoholic
Beverages――

International-1.0 bn yen―

Food & Soft Drinks- 0.4 bn yen―

Japanese Alcoholic
Beverages

Food & Soft
DrinksRestaurants

Real Estate

200 million yen

70 million yen

40 million yen

40 million yen

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Major Sales and Sales Volume (YoY)
Beer (Japan)(10,000 cases)
Full-year
estimate forfiscal 2016

Fiscal 2015
ActualJan. 1 Mar.31, 2016

Jan. 1 Mar.31, 2015

Sapporo Draft Beer Black Label

－

－

104%

1,670

1,618

103%

YEBISU (total)

－

－

107%

1,000

952

105%

1 Beer (total)

－

－

105%

3,070

2,919

105%

2 Happoshu (total)

－

－

95%

473

479

99%

3 New genre beer products (total)

－

－

95%

1,597

1,583

101%

Beer, happoshu, and new genre （total 1+2+3）

－

－

101%

5,140

4,982

103%

Non-Alcoholic Beer

15

12

124%

100

93

108%

RTD（*1)

53

44

120%

240

218

110%

YoY

Beer (International)(10,000 cases)
Full-year
estimate forfiscal 2016

Fiscal 2015
ActualJan. 1 Mar.31, 2016

Jan. 1 Mar.31, 2015

SLEEMAN BREWERIES LTD.（*2）

259

257

101%

1,310

1,262

104%

Sapporo brand

131

134

98%

595

550

108%

YoY

YoY

*2：Excludes contracted manufacturing for the Sapporo brand and sales of the Sapporo brand in Canada .

*1：RTD 1Case=250ml*24
Effective from July, 2014, the company has changed the reporting method of its sales volume of beer-type beverages, following the agreement of the
Brewers Association of Japan, and therefore no disclosure of the sales volume is made for first quarter of the current fiscal year ending December 31, 2016.
The sales volume for the first half and end of the fiscal year shall be disclosed as in the past.

(billions of yen)
Full-year
estimate forfiscal 2016

Fiscal 2015
ActualJan. 1 Mar.31, 2016

Jan. 1 Mar.31, 2015

Domestic wines

1.1

1.2

94%

5.9

5.3

112%

Imported wines

YoY

YoY

1.6

1.6

104%

10.9

8.2

133%

Wine (total)

2.8

2.8

100%

16.9

13.5

125%

Spirits (total)

1.3

1.1

118%

7.9

5.9

134%

Shochu (total)

3.6

3.3

111%

15.3

14.6

105%

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13/26

YoY

Overview of First-Quarter 2016 Results(2)Net Sales by Segment
YoY change（amount,%）（billion of yen）

2015 1Q

2016 1Q

Consolidated
net sales

108.4

111.3

2.9

2.7％

Japanese
Alcoholic
Beverages

51.2

53.1

1.9

3.7％

International
Business

16.0

15.4

(0.5)

(3.7)%

Foreign exchange rates(average rate of 2016 1Q)
US$1=¥115.33
CA$1＝¥83.97
VND1=￥0.0052
Foreign exchange rates(average rate of 2016 1Q)
SG$1=¥82.18

Food &
Soft Drinks

29.3

30.2

0.9

3.2%

Restaurant

5.8

5.7

(0.0)

(1.5)%

Real Estate

4.7

5.3

0.6

13.8%

Other

1.3

1.4

0.1

8.1%

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

Notes

14/26

Overview of First-Quarter 2016 Results(3) Factors Contributing to Change in Net Sales<Main Factors Contributing to Changes in Net Sales>[billions of yen]
+2.9 billion yen
2015 1Q
consolidated
net sales
108.4 billion
yen

2016 1Q
consolidated
net sales

Increase DecreaseNon-alcoholic
beer-taste
beverages,
Japanese
liquor sales
volumeincrease

0.9

Beer and beertype beveragesales volume
increaseNew
consolidationof CPF: 2months
SSC accountperiod3.1
change:reduction of 3
monthsForeignexchange(1.0)

Soy milk
businesssales
increase

Nihon Beans
Foreignconsolidation exchange

0.7

(0.4)

YGP, Yebisu
FS, etc. sales
increase111.3 billion
yen

0.6

0.5

0.9
(2.8)

1.9
19

(0.5)
▲5

0.9
9

0.6
6

Japanese Alcoholic
Beverages

International

Food & Soft Drinks

Real Estate

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15/26

Overview of First-Quarter 2016 Results (4)Operating Income by Segment2015 1Q

2016 1Q

Change

(4.3)

(1.4)

2.9

Japanese Alcoholic Beverages

(2.3)

(1.8)

0.5

Beer and related productWine and spirits
Other

(2.9)
0.5
0.0

(2.5)
0.5
0.1

0.4
0.0
0.1

(1.2)

(0.3)

0.8

(0.6)
(0.6)

0.１
(0.５)

0.7
0.1

(1.2)

(0.6)

0.5

(1.4)

(0.8)

0.6

Marginal profit+0.3,Fixed cost and other+0.3

0.2

0.2

0.0

Overseas Soft Drinks +0.0
Domestic coffee shop chain +0.0

Restaurant

(0.3)

(0.1)

0.1

Existing stores+0.0,Other+0.1

Real Estates

1.7

2.6

0.9

Rent+0.8,Sales/Other factors+0.1

Other

(0.0)

（0.0）

(0.0)

General corporate and intercompany
eliminations

(0.8)

(0.９)

(0.1)

0.9

0.9

(0.0)

0.4

0.4

(0.0)

Posted in “North America” & ”Vietnam” 2015
Posted in “North America” 2016

0.5

0.5

(0.0)

Posted in “Japanese Food & Soft Drinks”

(3.3)

(0.4）

2.9

（billion of yen）
Consolidated Operating income

International
North America, etc.
VietnamFood & Soft Drinks
Japanese Food & Soft Drinks
Overseas Soft Drinks/
Domestic coffee shop chain

Amortization of goodwill
International
Food & Soft Drinks
Operating income before goodwill
amortization

Notes

Marginal profit+0.6,Fixed cost and other-0.2

Marginal profit+0.3,Fixed cost and other+0.4
Marginal profit+0.0,Fixed cost and other+0.1

16/26

Overview of First-Quarter 2016 Results(5) Factors Contributing to Changes in Operating Income
2015 1Q
consolidated
operating income-4.3 billion yen<Main Factors Contributing to Changes in Operating Income>[billions of yen] Increase

2016 1Q
consolidated
operating income-1.4 billion yen(+2.9 billion yen)

Decrease［Profit/loss±0］

YGP
sales
increase
Vending
machinecost
Sales increase, decline
manufacturing
Cost
cost
0.3
reduction decreased
incl. sales
North promotion
0.2
Americancost
soft drink
raw material
0.5
Beer andcosts decline
Personnel
beer-type
cost/
Production
sales
depreciation
cost, etc.
volume0.3
declined
increase,
Sales
0.2
product mix
promotion
cost
0.4
0.5
increased

Effect ofstructuralreformYebisu FS,
etc. sales
increase

0.2

0.6

0.1

(0.6)

0.5

0.8

Japanese Alcoholic Beverages

International

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

0.5

0.1

Food & Soft Drinks Restaurants

0.9
Real Estate
17/26

Overview of First-Quarter 2016 Results(6) Changes in Extra Ordinary Gains and Losses
Consolidated Statements of Income（billion of yen）

2015 1Q

2016 1Q

ChangeNet sales

108.4

111.3

2.9

Operating income

(4.3)

(1.4)

2.9

Financial account balance

(0.2)

(0.3)

(0.2)

Other non-operating expenses

(0.0)

(0.5)

(0.4)

Ordinary income

(4.5)

(2.2)

2.2

Gain on sales of property, plantand equipment

7.4

0.0

(7.4)

2015：Sale of Shibuya Sakuragaoka Square7.3

Other extraordinary gains

0.4

0.0

(0.4)

2015：Subsidy income 0.3

Loss on sales/disposal of property,
plant and equipment

(0.2)

(0.2)

0.1

Other extraordinary losses

(0.2)

(0.3)

(0.0)

Income before income taxes andnon-controlling interests

2.7

(2.6)

(5.3)

Corporate tax, etc.

1.8

(0.6)

(2.4)

Net income attributable toowners of the parent

0.8

(2.0)

(2.8)

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

Primary ReasonsForeign exchange losses-0.2

18/26

Overview of First-Quarter 2016 Results(7) Investment Status
Implementation Status of Strategic Investments(including ordinary capex, on a cash bases)(1) <Capital expenditure and lease fees>
Consolidated total: Approx. ¥6.2 billion
 Property, plant and equipment, intangible assets, lease fees, etc.
Major items:
 Chiba factory bottling line upgrade (Japanese Alcoholic
Beverages): approx. ¥0.9 billion
Indonesian soft drinks factory construction work (Foods & Soft
Drinks): approx. ¥0.5 billion
Lease fees (Foods & Soft Drinks, etc.): approx. ¥0.7 billion(2) <Other investments>
Consolidated total: Approx. ¥0.8 billion
 Long-term prepaid expenses, subsidiaries’ shares, investment
securities, etc.
Major items:
 Long-term prepaid expenses (Japanese Alcoholic Beverages,
Food & Soft Drinks): approx. ¥0.6 billion

Direction of Long-Term Strategic Investment
 We will continue to actively carry out strategic investments
for growth.
 The scale of strategic investment from 2012 to 2016 isanticipated to be ¥150 billion to ¥200 billion (in principle,
funded from accumulated operating cash flow).
 Changes in investment from 2012 to March 2016
– Including ordinary capex (approx. a half of strategic
investments)– 2012 investment total: Approx. ¥65.7 bn– 2013 investment total: Approx. ¥23.5 bn– 2014 investment total: Approx. ¥29.5 bn– 2015 investment total: Approx. ¥40.2 bn– 2016 1Q investment total: Approx. ¥7.0 billion(Full year plan: ¥27.6 billion)(annual plan breakdown: capital expenditure worth ¥19.5 bn,other investments worth ¥8.1 bn）(1) + (2) <Jan-Mar 2016 strategic investment total>

Financing Status(incl. ordinary capex, on a cash basis)

 In Sep. 2015 issued five-year straight bonds worth ¥10.0 billion
at annual interest rate of 0.33%

 Approx. ¥7.0 billion

 In Mar. 2016 issued five-year straight bonds worth ¥10.0 billion
at annual interest rate of 0.25%
 Credit ratings

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

JCR: A- (Jan 28, 2016)
R&I: BBB+ (Feb 29, 2016)

19/26

2016 Group Financial Targets※Forecast are unchanged from the ﬁgure announced on February 10, 2016.

(billions of yen)

Consolidated financial
results

2015results

2016targets

Net sales(incl. liquor tax)

533.7

565.4

31.6

5.9%

Net sales（excl. liquor tax)

418.3

445.2

26.8

6.4%

Overseas net sales to total(excl. liquor tax)

22.6 ％

23.5 ％

0.9%

ーOperating income

13.9

21.1

7.1

51.3%

Operating income before
goodwill amortization

18.1

25.0

6.8

38.1%

Ordinary income

13.2

20.2

6.9

52.9%

Net income attributable toowners of the parent

6.1

10.5

4.3

71.9%

EBITDA

42.3

49.0

6.6

15.8%

Balance of Net debt

224.3

217.5

(6.8)

(3.0)%

1.4 times

1.3 timesーー

ＲＯＥ（before goodwill
amortization

6.5%

8.9%

2.4

ー

ROE

3.9%

6.5%

2.6

ー

Ｄ／Ｅratio※Exchange rate
2015: US$=¥121.11 CAN$=¥94.82 2016:US$=¥126.00 CAN$=¥96.00

YoY changes(amount, %)20/26

Appendix：

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

Collection of Data by Business

21/26

Reference Material(1)Japanese Alcoholic Beverages～Beer Category Data～＜＜Jan〜Mar Net sales＞
Billions of yen
WineBillions of yen Beer + Beer type beverages (incl. liquor tax)*

*The lastminute surge
in demand
before theconsumption
tax increase in
2014.

Spirits

Billions of yen

洋酒**
Promotion of diversification of product offering＜Japanese Alcoholic Beverage Business
Jan-Dec sales breakdown by category>

和酒Japanese Liquor

Billions of yen

Jan-Mar net sales
53.1 billion yen

ＲＴＤ
RTD

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

Billions of yen

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Reference Material(2) International Business ～Data ～SLEEMAN Net Sales in Local Currency (Jan-Mar)(before elimination of inter-company transactions)

Sapporo USA Net Sales in Local Currency (Jan-Mar)(before elimination of inter-company transactions)＜Trend of overseas sales volume of SAPPORO brand products (Jan-Mar)>（1,000 cases)

Net sales Breakdown by Geographic Area
(Jan-Mar)

0.69
million
cases

69
万函

2011
North America: Canada, U.S.
Asia: Vietnam, Singapore, South Korea, etc.
Oceania, etc.: Australia, Europe, etc.
Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

1.31
million
cases

2016

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Reference Material(3) Food & Soft Drinks ～ Data ～<Soft Drinks (Japan): POKKA SAPPORO Food & Beverage Ltd.>POKKA SAPPORO Food &Beverage sales composition(Jan-Mar)

Japanese soft drinks sales
volume composition by genre(Jan-Mar)¥18.6
billion＜Lemon-based
drinks＞

Japanese soft drinks sales
composition by sales channel(Jan–Mar)9.22 million
cases

9.22 million
cases*Vending machines (end of Mar)Own brand machines : about
90,000 ＋ Multi-brand Machines<Soft Drinks (overseas): POKKA Corporation (Singapore) Pte. Ltd.>POKKA Corporation (Singapore)
Sales composition (Jan-Mar)

Exporting products to
60 countries

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

＜Restaurants (Domestic): POKKA CREATE Co., Ltd.> CAFÉ de CRIÉ has been actively pursuing opening new outlets
in new areas and proposal of new menu items. Net sales havebeen up 6% on year and strong

Outlets: 189 (as of Mar 31, 2016)(Directly operated: 94 outlets; FC: 95 outlets)
Hokkaido 3, Kanto 104, Tokai 38
Kansai 35, Kyushu 6, Shikoku 3

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Reference Material(4) Real Estate ～ Data ～Major rental properties & occupancy rates *Information about real estate for lease(*Annual averages for 2016 1Q (contract basis)
Major rental properties inTokyo’s 23 wards

Site area (m2)

Floor area (m2)Occupancy rate(%)

Yebisu Garden Place *1

56,943

298,00799%

Ebisu First Square*

2,596

15,496100%

Ebisu Square

1,561

9,126

100%

Strata Ginza *2

1,117

11,411100%

No. of floors
40 floors above
ground, 5 below
12 floors above
ground, 1 below
7 floors above
ground, 1 below
13 floors above
ground, 1 below

Balance sheet value at December 31, 2015 : approx. ¥197.7 billion
Fair value at December 31, 2015 : approx. 357.4 billion yen

Site areas are taken from the land registry. Floor areas are as per building certification.

*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)

EBITDA

Operating income

EBITDA =operating income + depreciation and amortization(billions of yen)(billions of yen)

Jan-Mar2015

Jan-Mar2016

Change

1.6

2.3

0.7

0.3

0.3

0.0

Other areas
Real estate leasing
total

1.9

2.7

0.8

Real estate total

Other operations*
(0.1)
(0.1)
* “Other operations” includes back-officeTotal
1.7 operations. 2.6

0.0
0.9

Other operations*

Real estate leasing
Tokyo’s 23
wards
Other areas
Real estate leasing
total
Real estate total

Real estate leasing
Tokyo’s 23
wards

Jan-Mar 2015

Jan-Mar 2016

2.5

3.2

0.7

0.4

0.4

0.0

2.9

3.7

0.8

(0.1)
2.7

(0.1)
3.6

0.0
0.8

Total
* “Other operations” includes back-office operations.

Change* “Other operations” includes back-office operations.
Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

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

The earnings forecasts and forward-looking statements appearing in this document were prepared by the
SAPPORO Group based on currently available information and its best assessment of potential risks anduncertainties. Actual outcomes may differ materially from forecasts due to changes in various underlying
factors.

Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

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