Q&A from Financial Statements Briefing for Closing Accounts of Year Ended December 31, 2017

<Date and Time> February 16, 10:00-11:30<Speakers> President and Representative Director Masaki Oga, Director of Corporate Finance andBusiness Management Department Shinichi Soya, and President of Sapporo BreweriesLtd. Hideya Takashima

Q. I would like to know the assumption based on which you developed the 2018 sales plan of theJapanese Alcoholic Beverages Business for each category.
A. (SB President Takashima) We assumed the following when we developed the 2018 sales planby category:1) For beers, sales grew three years in a row thanks to brisk sales of canned products of the Black
Label brand in 2017. By continuing to strengthen branding efforts for beers, we expect to see a2% YoY growth in quantity.
2) As for happoshu and new-genre beers, because we did not make much change in ourcommunication, etc., in advertisements in 2017 except for “Mugi to Hop The gold”, a new-genre
beer which was renewed, we failed to turn the tide in the new-genre beer market. In addition, therevised Liquor Tax Law hiked shop prices, putting a brake on sales. “Mugi to Hop,” which will berenewed on March 6, 2018, and “Goku Zero Sokai Zero,” launched in January 2018, are expected
to contribute to sales, based on which we expect 13% sales growth in quantity from the previousyear.
3) While we estimate the growth of total demand for RTD in 2017 was around 10% YoY, we grewnearly 40% in this market. We have been able to create unique products only Sapporo could provide.
Based on the accelerating growth of the current market and future prospects, we expect to see sales
grow by 2 billion yen in 2018 by increasing our efforts in the RTD market.

Q. Please give us the breakdown of the sales promotion cost plan for the 2018 Japanese Alcoholic
Beverages Business, which suggests a 3.3 billion yen increase from the previous year.
A. (SB President Takashima) We plan to introduce new products in the markets of non-alcoholicbeers and RTD in 2018 and expect to see sales growth of some 6.1 billion yen for all multilayeredproducts. With the sales promotion cost plan, we expressed our intention to spend sufficientamounts of money for promotion to achieve such growth.

Q. Please tell us about measures to improve results this year for each business that showed poor
performance in 2017, namely 1) North American Soft Drinks in the International Business, 2)Vietnam Beers in the International Business, and 3) Singapore Soft Drinks in the Food and Soft
Drinks Business.
A. (President Oga)
1) (North American Soft Drinks) We will develop a more advantageous purchasing organization
by integrating our two North American subsidiaries (SSC and CPF). In addition, we will improve

production efficiency at factories and integrate quality control systems to enhance production.
Almost all SSC products are related to orange and were subjected to a sharp rise in raw material
price, whereas CPF has a varied product mix and various sales channels. We will improve sales bymaking the most of the enhanced product mix from integration of the two affiliates amid declining
consumption of orange juice.
2) (Vietnam Beers) Beer business in Vietnam grew slightly in 2017 but is yet to reach profitability.
When we entered the Vietnamese market, the awareness of the Sapporo brand was quite low, so
we have since implemented a strategy to grow sales volume while increasing the brand awarenessby spending an appreciable amount of money on promotion. As a result, the Sapporo brand is now
well recognized in the Vietnamese market and we are in the phase of revising sales promotion
costs to create profits. We will also restructure our distribution networks by reducing unprofitablesales channels. In addition, by transferring a part of production of “Silver Cups” to Vietnam tobenefit the manufacturing capacity of Sleeman, Canada, we will improve production efficiency inour Vietnam brewery and increase exports to Southeast Asia, thereby improving Vietnamesebusiness.
3) (Singapore Soft Drinks) We are undergoing a drastic revision of the product-development backup system for improved functionality to deal with the introduction of sugar tax in some countries
to which products are exported from Singapore. Holding around 70% of the green tea market in
Singapore, Pokka Sapporo enjoys exceedingly strong brand power and we are trying to harness it
to find sales methods immune to price competition.

Q. Will we see a major change in the methods and the system for management of overseassubsidiaries by each business company in Japan?
A. (President Oga) Yes, you will. We are considering a change to the system so that the Japanese
Alcoholic Beverages Business and the Food and Soft Drinks Business will integrate businesses inand outside of Japan and manage and develop brands in the future.

Q. Regarding the Food and Soft Drinks Business, what is your strategy for vending machines?
A. (Director Soya) The number of vending machines is on the decline when you look at the entire
soft drink industry and demand for canned coffee is shrinking, shifting to tea and water. Vendingmachines placed inside buildings are also subject to the impact of shorter hours when people stayin the office due to work-style reform. We will continue to protect sites of good-performing
vending machines we run by ourselves but will not implement a strategy of adding new vending
machines, considering the huge burden in terms of funds, labor, and operation.

End.