Financial Results
for the Year Ended December 31, 2023 — Consolidated(Based on IFRS)
February 14, 2024
Company name

Sapporo Holdings Limited

Security code
2501
Listed on
Tokyo Stock Exchange (First Section); Sapporo Securities Exchange
URL
https://www.sapporoholdings.jp/en/
Representative
Masaki Oga, President and Representative Director
Contact
Satoshi Funakoshi, Director of the Corporate Planning Department+81-3-5423-7407
Telephone
Scheduled dates:
March 28, 2024
Annual general meeting of shareholders
March 29, 2024
Filing of annual financial report
March 29, 2024
Commencement of dividend payments
Available
Supplementary information to the year-end earnings results
Yes
Year-end earnings results briefing held
(mainly targeted at institutional
investors and analysts)

1. Consolidated Financial Results for the Year Ended December 31, 2023
(January 1 – December 31, 2023)(Amounts in million yen rounded to the nearest million yen)

(1) Operating Results(Percentage figures represent year-over-year changes)
Revenuemillion yen

Core operating profit%

million yen%

Operating profit
million yen%

Profitmillion yen%

Year ended
December 31, 2023

518,632

8.4

15,633

67.9

11,820

17.0

8,758

58.8

Year ended
December 31, 2022

478,422

9.4

9,312

14.4

10,106(54.1)

5,515(55.1)

Profit attributable toowners of parent
million yen

Year ended
December 31, 2023
Year ended
December 31, 2022

Total comprehensive
income%million yen

%

8,724

60.1

19,228

170.7

5,450

(55.8)

7,103(58.5)

Basic earnings
per share

Diluted earnings
per share

Ratio of profit toequity attributableto owners of parent

Ratio of profit
before tax to total
assetsCore
operating profit
margin

yen

yen

%

%

%

Year ended
December 31, 2023

111.99111.95

5.0

1.9

3.0

Year ended
December 31, 2022

69.96

69.95

3.3

1.8

1.9

- 1 -

Note: Equity method investment gains:
Year ended December 31, 2023: 69 million yen
Year ended December 31, 2022: 108 million yen
Profit (loss) before tax:
Year ended December 31, 2023: 12,144 million yen
Year ended December 31, 2022: 11,367 million yen
Operating profit margin:
Year ended December 31, 2023: 2.3%
Year ended December 31, 2022: 2.1%
Note: Core Operating Profit is a proprietary profit indicator that measures the performance consistency of our business.
Core operating profit is calculated as Revenue – Cost of sales – SG&A expenses.
.

(2) Financial Position

Total assets

Total equity

Equityattributable toowners of parent

million yen

million yen

million yen

Ratio ofequity attributable toowners of parent tototal assets

Equity per share
attributable toowners of parent%

Yen

Year ended
December 31, 2023

663,573

183,248

182,31527.5

2,340.41

Year ended
December 31, 2022

639,118

167,201

166,31026.0

2,134.98(3) Cash Flows
Cash flows fromoperatingactivities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at endof period

million yen

million yen

million yen

million yen

Year ended
December 31, 2023

45,446(16,439)(27,140)

17,204

Year ended
December 31, 2022

7,814

(46,137)

36,465

15,3802. Dividends

Dividend per share
Record date or period

End
Q1

End
Q2

End Year-end Full year
Q3

yen

yen

yen

Year ended December
31, 2022—

0.00

Year ended December
31, 2023—

Year ending December
31, 2024 (forecast)

—

Total
dividends paid
(full year)

Payout ratio(consolidated)

Dividends to equity
attributable toowners of parent(consolidated)

million yen

%

%

yen

yen

—

42.00

42.00

3,277

60.0

2.0

0.00

—

47.00

47.00

3,667

42.0

2.1

0.00

—

52.00

52.00

- 2 -

40.5

3. Forecast of Consolidated Earnings for the Year Ending December 31, 2024
(January 1 – December 31, 2024)(Percentage figures represent year-over-year changes)Core
operating profit

RevenueYear ending
December31, 2023

Operating profit

Profit attributable toowners of parent

ProfitBasicearnings
per share

million yen%

million yen%

million yen%

million yen%

million yen%

yen

523,500

0.9

19,00021.5

17,60048.9

10,03014.5

10,00014.6

128.37

Note: Earnings forecasts for the six months ending June 30, 2024 are omitted because the company manages
performance targets on a yearly basis.

4. Other(1) Changes to scope of consolidation: None
(2) Changes in accounting policy, changes in accounting estimates, and retrospective restatement
1) Changes in accounting policies required by IFRS: None
2) Changes other than 1) above: None
3) Changes in accounting estimates: None
(3) Number of shares issued and outstanding (common stock)1) Number of shares issued at end of period (treasury stock included):
December 31, 2023: 78,794,298 shares
December 31, 2022: 78,794,298 shares
2) Number of shares held in treasury at end of period:
December 31, 2023: 895,451 shares
December 31, 2022: 896,678 shares
3) Average number of outstanding share during the period:
December 31, 2023: 77,898,919 shares
December 31, 2022: 77,897,725 shares

Audit Status
The year-end financial results are outside the scope of audit procedures based on the Financial Instruments
and Exchange Act.
Appropriate Use of Earnings Forecasts and Other Important Information
This document contains projections and other forward-looking statements based on information available to
the Company as of the date of this document. Actual results may differ from those expressed or implied byforward-looking statements due to various factors. For the assumptions underlying the forecasts herein andother information on the use of earnings forecasts, refer to “Outlook for fiscal year ending December 31,2024” on page 10.

- 3 -1. Analysis of Operating Results and Financial Condition(1) Operating Results(a) Review of the fiscal year ended December 31, 2023
Lifestyle patterns of living with COVID-19 penetrated society and economic activity continued tonormalize as the impact of COVID-19 lessened. On the other hand, the uncertain outlook continues,
with concerns over rising prices due to factors such as the situation in Ukraine, the depreciation of
the yen, and inflation from surging prices of raw materials and energy will lead to consumers
becoming more cautious with their spending.
Under these circumstances, the Sapporo Group decisively implemented structural reforms, aiming
to realize its growth strategy in the first year of our “Medium-Term Management Plan (2023-2026),”
and delivered solid results.
Consolidated revenue overall increased compared to the same period last year. This was becauseof the positive recovery of the commercial-use products market in Alcoholic Beverages, along with
the inclusion of STONE BREWING CO., LLC (Stone) as a consolidated subsidiary at the end of
August 2022 and its contribution over the year, which counteracted decreased revenue following thetransfer of the cafe business in April 2022 and the full-year liquidation of a vending machine operator
subsidiary in November 2022 intended to shift management resources of Food & Soft Drinks togrowth areas.
Consolidated core operating profit increased year-on-year amid the effects of increased revenue in
the Japan Alcoholic Beverages business and structural reforms in the Restaurants business andJapan Food & Soft Drinks business.
Summary in key figures
Millions of yen, except percentages

Core operating
profitOperating profit

Profit attributableto owners ofparent518,632

15,633

11,8208,724

478,422

9,312

10,106

5,450

8.4

67.9

17.0

60.1

RevenueYear ended
December 31, 2023
Year ended
December 31, 2022
Change (%)*Core operating profit is the Sapporo Group’s unique profit benchmark for measuring the performance of its regularbusiness and is calculated by deducting cost of sales, and selling, general and administrative expenses, from revenue.

Results by segment are outlined below.
Alcoholic Beverages
Revenue increased year-on-year thanks to a steady recovery in the commercial-use products
market, price revisions, strong sales in North America, and the addition of Stone Brewing Co., LLC to
the Group at the end of August 2022.
Core operating profit increased year-on-year despite increased variable costs due to factors suchas increased raw material prices. This was thanks to the effects of increased revenue from therecovery in the on-trade market as well as the effects of structural reforms in the Restaurants
business.
While there were impairment losses associated with the resolution to dissolve an overseas
subsidiary, which had been under consideration as a part of our business review, operating profit
increased year-on-year due to the year-on-year increase in core operating profit, among other factors.
■Revenue: ¥376.9 billion (up ¥42.2 billion, or 12.6% year on year)■Core operating profit: ¥16.0 billion (up ¥8.3 billion, or 107.2% year on year)■Operating profit: ¥9.0 billion (up ¥0.1 billion, or 0.8% year on year)- 4 -Details of Alcoholic Beverages (Japan and Overseas) and Restaurants in the Alcoholic Beverages
business were as follows.
Japan
The commercial-use products market was on a recovery path as economic activity continued tonormalize as a result of the lessened impact of COVID-19, while the home-use products market
remained weak. Total domestic demand for beer beverages (the general term for beers, sparkling
alcohol, new genres) was 99% of the previous year’s level and total domestic demand for beer was
107%.
We are focusing more on strengthening beer and RTD* taking into account the liquor tax revision
made in October 2023.
In this context, the Group’s total domestic sales volume of beer and beer-like beverages was 102%of the previous year’s level. Commercial-use products’ sales volume was at 123% year-on-year.
Moreover, while impacted by the shrinking sparkling alcohol and new genre markets due to the liquor
tax revision and the recovery in the commercial-use products market, strong sales continued forhousehold use products, with the sales quantity of Black Label cans at 104% year-on-year and sales
quantity for RTD canned beverages at 116% year-on-year.
Overseas
In Canada, COVID-19 countermeasures have spurred an economic restart, and the on-trade
products market was in a year-on-year recovery trend, but the total demand for Beer-type beverages
is expected to have been lower year-on-year primarily due to the impact of rising inflation. This isalso expected to have been lower year-on-year in the United States due to the impact of rising
inflation.
In this context, the sales volume of overseas beer brands exceeded that of the previous year
thanks to a recovery of the on-trade market in Canada and after including the sales of Stone in the
United States. Additionally, sales volume of Sapporo brand beer in the focus market of North America
was 104% of the previous first quarter’s level, another record high after the previous fiscal year.
Also, a resolution to dissolve ANCHOR BREWING COMPANY, LLC (“Anchor”) was made in July
2023. Anchor was positioned as subject to liquidation in the Medium-Term Management Plan due toits continued poor business performance. In the United States, which will become a growth driver,
we are shifting resources by enacting decisive structural reforms, and aim to achieve further growthcentered on Sapporo brand beer by creating synergies with Stone. In addition, we have partiallystarted manufacturing at Stone in December 2023.
Restaurants
The recovery trend for the restaurant market is continuing as economic activity continues tonormalize as a result of the lessened impact of COVID-19.
Amid this, due to price revisions, a recovery in the number of customers, and attracting inboundtourist and senior customers, the Sapporo Group’s Restaurants business recorded existing store
sales at 106% of 2019 levels, recovering to roughly the same level as before the outbreak of the
COVID-19 pandemic.
*: RTD, or ready-to-drink beverages, are pre-mixed, low-alcohol cocktail-like beverages that canbe consumed as is immediately after opening.
Food & Soft Drinks
Revenue declined year-on-year due to the impacts of reduced units in operations following theliquidation of a vending machine operator subsidiary in November 2022 and divestment of the cafe
business in April 2022.
Core operating profit and operating profit both decreased compared to the same period of theprevious fiscal year due to increased raw material costs and the booking of provisions for doubtful
accounts for accounts receivable in arrears in the overseas beverage business, despite the effect ofprice revisions and structural reforms.

- 5 -■Revenue: ¥119.9 billion (down ¥3.0 billion, or 2.4% year on year)■Core operating profit: ¥1.6 billion (down ¥0.1 billion, or 7.5% year on year)■Operating profit: ¥1.7 billion (down ¥0.6 billion, or 25.4% year on year)
Food & Soft Drinks (Japan)
Total domestic beverage demand is estimated to remain around 99% of the previous year,
despite the commercial-use products market and vending machine demand roughly recovering
thanks to the transition of COVID-19 to the Class 5 category.
Meanwhile, the sales value of the Group’s domestic beverages was 93% of that of the previous
year, as overall beverage sales decreased due to product lineup changes and a decrease in thenumber of vending machines in operation, despite sales value for Kireto Lemon, the main brand in
the lemon business, growing 109% year-on-year, and no-sugar-added tea made with selected
domestic ingredients performing well at 160%, centered on the strong performance of corn tea,
thanks to the effect of price revisions.
Regarding the sales value of lemon products, the main brand Pokka Lemon 100, reached 102%of the previous year’s level, and the overall sales value progressed favorably at 105% year-on-year.
Overseas Beverage
In Singapore, the sales value, focused on the home-use channel, trended strongly at 106% yearon-year with the impact of price revisions contributing to the performance. In addition, while total
demand slumped in Malaysia, a focus area, as the recovery in the post-COVID-19 demandstabilized, sales value was 107% year-on-year because of progress made in strengthening theGroup’s sales structure.
In the Middle East export business, the sales value was 93% year-on-year due to the suspensionof sales to customers whose financial condition deteriorated.
Real Estate
In the office leasing market in the Greater Tokyo area, the stagnating occupancy rates and weak
average rent levels—both of which declined during the COVID-19 pandemic—have yet to see arecovery.
Meanwhile, revenue increased year-on-year mainly due to the effect of increased revenue from therenovation and opening in November 2022 of Center Plaza at the Yebisu Garden Place, which is alarge complex facility, and the increased occupancy rates at The Garden Hall/Room, a multi-purpose
auditorium.
Core operating profit declined year-on-year because of a declining office occupancy rate of Yebisu
Garden Place caused by work to update the HVAC facilities of the office tower started in 2022.
Operating profit increased in reaction to the gain on sale of investment properties among otherfactors, while core operating profit decreased year-on-year.
■Revenue: ¥21.7 billion (up ¥1.0 billion, or 4.7% year on year)■Core operating profit: ¥5.8 billion (down ¥0.7 billion, or 10.5% year on year)■Operating profit: ¥8.9 billion (up ¥3.4 billion, or 62.9% year on year)- 6 -(2) Consolidated Financial Condition
As of the end of the fiscal year consolidated accounting period, the following were the change
factors in the condition of assets, liabilities and equity.
(Millions of yen)
2022

2023

Increase (decrease)

Current assets

179,431

176,353(3,079)Non-current assets

459,687

487,220

27,533

Total assets

639,118

663,573

24,455Current Liabilities

219,515

191,204(28,311)

Non-current liabilities

252,402289,12136,719Total liabilities

471,917480,325

8,408

Total equity

167,201

183,248

16,047

Total liabilities and639,118
663,573
24,455equityAt the end of the fiscal year under review, assets had increased by ¥24.5 billion to ¥663.6 billion
relative to the previous fiscal year end due to increases in property, plant and equipment, an increasein other non-current financial assets from investments and other factors, which offset the decline inother current financial assets due to the redemption of investment in securities.
Consolidated total liabilities came to ¥480.3 billion, which was an increase of ¥8.4 billion as comparedto the end of the previous fiscal year, because of the increase in corporate bonds and borrowings (noncurrent) resulting from a bond issuance, and an increase in other financial liabilities associated withcapital expenditures, which offset the decline in corporate bonds and borrowings (current).
On the same comparative basis, capital increased by ¥16.0 billion to ¥183.2 billion. Although there
was a decrease in retained earnings stemming from the payment of end-period dividends, the postingof profit attributable to owners of the parent and increases in other capital components, due to changes
in financial assets measured in fair value through other comprehensive income and foreign currencytranslation adjustments on foreign operating entities, contributed to the increase.

- 7 -(3) Consolidated Cash Flows
Cash and cash equivalents (collectively “cash”) totaled ¥17.2 billion as of December 31, 2023,¥1.8 billioor 12% more than at the end of the previous fiscal year.
The components of the quarter’s cash flow categories were as follows.
(Millions of yen)
Increase
2022
2023(decrease)
Cash flows from operating activities

7,814

45,446

37,631

Cash flows from investing activities(46,137)(16,439)

29,698

Free cash flow

(38,323)

29,007

67,330Cash flows from financial activities

36,465(27,140)(63,606)

(131)

(43)

88

Net increase (decrease) in cash and cash equivalents(1,988)

1,824

3,812

Cash and cash equivalents at beginning of period

17,36815,380(1,988)Cash and cash equivalents at end of period

15,38017,204

1,824

Effect of exchange rate change on cash and cash
equivalents(Cash flows from operating activities)
Cash provided by operating activities was ¥45.4 billion (compared to ¥7.8 billion provided in theprevious fiscal year). This was mainly due to increase factors which were depreciation and amortizationof ¥21.0 billion, income before tax of ¥12.1 billion and impairment losses and reversal of impairment
losses of ¥7.3 billion, which offset decrease factors which were proceeds from the sale and retirementof property, plant and equipment, and intangible assets of ¥3.7 billion, and interest expenses of ¥2.1
billion.
(Cash flows from investing activities)
Cash used in investing activities was ¥16.4 billion (compared to ¥46.1 billion used in the previous
fiscal year). Although there was income of ¥7.4 billion from the redemption of investment securities,
expenses related to the purchase of property, plant and equipment of ¥16.5 billion, the purchase ofinvestment securities of ¥10.7 billion, the purchase of investment property of ¥10.5 billion contributed
to this result.
(Cash flows from financing activities)
Cash used in financing activities was ¥27.1 billion (compared to ¥36.5 billion provided in the previous
fiscal year). The main outflows were 21.5 billion in repayment of long-term borrowings, ¥17.0 billion
decrease in commercial papers, a ¥16.3 billion decrease in short-term borrowings, ¥10.0 billion in
expenditures for the redemption of corporate bonds, which outweighed proceeds from long-termborrowings of ¥25.0 billion and proceeds from the issuance of bonds of ¥20.0 billion.
Cash Flow Indicators
2022
Ratio of equity attributable to owners ofparent to total assets (%)
Ratio of equity attributable to owners ofparent to total assets based on market
capitalization (%)

2023
26.0

27.5

40.0

73.0

Cash flow to interest-bearing debt (years)

37.9

6.1

Interest coverage ratio (times)

4.5

21.3

- 8 -

Ratio of equity attributable to owners of parent to total assets: Equity attributable to owners ofparent to total assets / Total assets
Ratio of equity attributable to owners of parent to total assets based on market capitalization:
Market capitalization / Total assets
Cash flow to interest-bearing debt: Interest-bearing debt / Cash flow
Interest coverage ratio: Cash flow / Interest expense
Notes:
1. Market capitalization is calculated based on the number of shares issued and outstanding,excluding treasury stock.
2. “Cash flow” is operating cash flow.
3. Of the debt carried on the consolidated balance sheet, interest-bearing debt is total debt on
which interest is currently payable.

- 9 -(4) Outlook for fiscal year ending December 31, 2024
(Outlook for 2024)
In the next fiscal year, under the theme of “Beyond150 - New Growth Through Business Structure
Transformation -,” we will aim for structural reforms in the second year of our "Medium-Term
Management Plan (2023-2026)" and ensure the implementation of our growth strategy for 2025 andbeyond.
In addition to the expected rise in prices due to surging prices of raw materials, which was
expected to continue in 2023, logistics costs are expected to soar due to the "2024 problem inlogistics" (stricter regulations on overtime work for drivers).
Under these circumstances, the Sapporo Group will strengthen its profitability by decisively
implementing structural reforms and accelerating growth. We expect raw material prices andtransportation costs to rise further in the domestic Alcoholic Beverages and Food & Soft Drinks
segments, but we will work to improve profitability through structural reforms, including cost
reductions and a drastic shakeup of unprofitable businesses, in addition to price revisions. In theReal Estate business, we seek to improve overall asset value over a long-term time horizon, throughthe value improvement of core properties in the Ebisu and Sapporo areas. In addition, overseas, theGroup will expand sales of alcoholic beverages in North America and overseas soft drinks andmaximize synergies with Stone, making the overseas business a growth driver for the Sapporo
Group. Through these efforts, we will strive to improve the profitability of the entire Group.
As a result of the above, revenue, core operating profit, operating profit, and profit attributable toowners of the parent company are expected to increase compared to the period under review.
Overall outlook
RevenueCore operating
profitMillions of yen, except percentages
Profit attributable toOperating profit
owners of parent

2024 forecast

523,500

19,00017,60010,0002023 results

518,632

15,633

11,820

8,724

0.9

21.5

48.9

14.6

Projected change (%)

Results by segment are outlined below.
Alcoholic Beverages
Revenue is expected to increase due to growth in sales of RTD in Japan and Sapporo Premium Beerin North America, as well as price revisions.
Core operating profit and operating profit are expected to increase due to synergies with Stone inNorth America, the effect of increased revenue, and improvements to the product mix, despite theincrease of variable costs due to surging raw materials and transportation costs, and the increase insales promotion expenses to strengthen the beer business.
■Revenue: ¥380.0 billion (up ¥3.1 billion, or 0.8% year on year)■Core operating profit: ¥18.3 billion (up ¥2.3 billion, or 14.3% year on year)■Operating profit: ¥17.0 billion (up ¥8.0 billion, or 89.3% year on year)
Details of Alcoholic Beverages (Japan and Overseas) and Restaurants in the Alcoholic Beverages
business were as follows.
Japan
In the next fiscal year, we will focus more on strengthening beer and RTD based on the liquor tax
revision in October 2023. Along with sales growth, efforts for RTD will be made by improving
productivity through the RTD production facilities at the Sendai Brewery. Continuing from thecurrent fiscal year, soaring raw material prices will have a strong impact on our domestic alcoholic
beverage performance, but we expect to offset this impact through efforts to improve the productmix.

- 10 -

Overseas
In the United States, the manufacturing of Sapporo Premium Beer will proceed at full tilt at
Stone, with the creation of synergy effects to the maximum degree. Moreover, we aim to achieve
further growth and further promote the appeal of the Sapporo brand by increasing marketinginvestment. In Canada, we will continue to focus on strengthening our premium-brand beer and
RTD, while also striving to further improve profitability by enhancing business efficiency throughstructural cost reforms.
Restaurants
In order to maintain the trend of 2023, when demand transitioned to a significant recovery, and tobuild an even stronger management structure, we will continue to shift resources to focusedbusiness categories such as YEBISU BAR and Ginza Lion, with the strengthening of existing
stores as a pillar. Although raw materials and other costs are expected to continue to rise, we aim
to secure earnings through timely and appropriate price revisions and efforts to enhance customer
experience value.
Food & Soft Drinks
Revenue is expected to increase due to the growth of sales of all-lemon products and overseas softdrinks, which should offset the impact of the review of unprofitable businesses.
Core operating profit and operating profit are both estimated to increase year-on-year because of
initiatives to reduce variable selling costs and a reaction to the booking of provisions for doubtful
accounts for accounts receivable in arrears in 2023, among other factors, despite increased raw
material and transportation costs.
■Revenue: ¥120.0 billion (up ¥0.1 billion, or 0.1% year on year)■Core operating profit: ¥3.5 billion (up ¥1.9 billion, or 114.2% year on year)■Operating profit: ¥5.8 billion (up ¥4.1 billion, or 242.6% year on year)
Details of domestic food & soft drinks and overseas beverages categorized in Food & Soft Drinks
are as follows.
Food & Soft Drinks (Japan)
We will accelerate our initiatives to concentrate resources on the growing lemon business in thenext fiscal year. Raw material prices were expected to rise in 2023, but we will work to strengthen
our earning power through structural reforms, including further cost reductions and a shakeup of
unprofitable businesses, in addition to price revisions.
Overseas Beverage
Overseas beverages will be affected by soaring raw material prices, but we will address this byrevising prices and taking other measures. We will aim to turn our overseas businesses into a
growth driver for the Group by strengthening our sales and marketing structure in countries andregions with growth potential, such as Malaysia and the Middle East, starting from Singapore.
Real Estate
Revenue is expected to increase due to improvements in the office occupancy rate of Ebisu Garden
Place and the reopening of the hotel managed in Sapporo City in January 2024 after renovations.
An increase in core operating profit is expected due to the impact of the revenue increase.
Operating profit is expected to decrease due to a reaction to the gain on sales of investment properties
in 2023, despite the increase in core operating profit.
■Revenue: ¥23.5 billion (up ¥1.8 billion, or 8.3% year on year)■Core operating profit: ¥5.8 billion (up ¥0.0 billion, or 0.3% year on year)■Operating profit: ¥5.4 billion (down ¥3.5 billion, or 39.1% year on year)- 11 -

In the next fiscal year, we will work toward enhancing our competitiveness by improving the value ofcore properties in the Ebisu and Sapporo areas and promoting community development, while striving
to improve the value of the Sapporo Group to increase overall asset value over a long-term time
horizon.
(Medium- to long-term management policies for increasing Group value)
Our Company approved the “Medium- to Long-Term Management Policy for Increasing Group Value”
at the Board of Directors meeting held on February 14, 2024. Following the announcement of the Group’s
Medium-Term Management Plan (2023-2026) in November 2022, we have received various opinionsfrom capital markets through our IR and SR initiatives. Taking these into consideration, we establishedthe Group Strategy Review Committee, which includes third-party advisors, in September 2023 todiscuss management policies to enhance corporate value over the medium to long term beyond thecurrent medium-term management plan from multiple and objective perspectives, including those ofoutside partners, and have recently reached a resolution.
Our Group is carrying forward the further concentration of management resources to improve corporate
value over the medium to long term, in line with the future vision we aim to achieve. We will grow as acompany that creates rich beer and customer experiences worldwide and increase our profitability byconcentrating on businesses where we have a competitive edge and where we can clearly find synergies
and by refining our market creation capabilities, which have been part of our DNA since our founding.
As a financial policy, we aim for ROE of 10% or higher, as we view the improvement of capital efficiency
as an important issue. We will also utilize capital brought in from outside sources to enhance financial
stability and increase the agility of growth investment in Alcoholic Beverages.
We plan to proceed with further discussions and release more specific details on our initiatives.
(5) Dividend Policy and Dividends for 2023 and 2024
The Company considers the appropriate return of profits to its shareholders as a fundamental aspectof management policy and has adopted a basic policy to undertake stable dividend payments, taking into
consideration the Company’s performance and financial condition.
With regard to the level of dividends in the future, the Company will strive to raise the level of dividends
in line with the increase in corporate value, based on a consolidated dividend payout ratio of 30% or
more, with the current level as the minimum under the “Medium-Term Management Plan (2023-2026),”
announced in November 2022. However, if the profit attributable to owners of parent changes
significantly because of an extraordinary profit or loss stemming from special factors, the impact may betaken into consideration when deciding the dividend. Retained earnings will be used for operational andcapital investments, contributing to the future growth of the corporate value.
Given the above policy and taking into consideration operating results and the financial condition, theCompany decided to pay a dividend of 47 yen per share for 2023, an increase of 2 yen per share overthe previous forecast. The Company’s Articles of Incorporation stipulate that interim dividends may also
be distributed, but we currently are distributing an annual dividend once a year. Decisions regarding thepayment of dividends from surplus profits are, in the case of the year-end distribution, approved at thegeneral meeting of shareholders, while the interim dividend, if any, is determined at the sole discretionof the Board of Directors.
We plan to pay an annual per-share dividend of ¥52 in 2024, an increase of ¥5 per share over thecurrent fiscal year to further return profits to our shareholders.

2. Basic Approach to Selecting Accounting Standards
The Sapporo Group has voluntarily applied the International Financial Reporting Standards (IFRS) to
its consolidated accounts from the first quarter of 2018. This change in accounting standard is aimed at
facilitating international comparisons of Group financial information in the capital markets.

- 12 -

3. Consolidated Financial Statements(1) Consolidated Statement of Financial Position(Millions of yen)
December 31, 2022

December 31, 2023

AssetsCurrent assets
Cash and cash equivalents

15,38017,204

Trade and other receivables
Inventories

96,59347,52598,02347,575

Other financial assets
Other current assets

8,454
11,479

4,393
7,589

Assets held for sale

179,431－

174,785
1,568

Total current assets

Subtotal

179,431

176,353

Non-current assets
Property, plant and equipment

129,102145,687

Investment property
Goodwill

209,628
33,783

211,164
35,124

Intangible assets
Investments accounted for using equity method

9,328
1,370

6,993
1,359

Other financial assets
Retirement benefit Asset

68,616
1,353

79,400
1,266

Other non-current assets
Deferred tax assets

3,938
2,569

3,366
2,863

Total non-current assets

459,687

487,220

Total assets

639,118

663,573- 13 -

(Millions of yen)
December 31, 2022

December 31, 2023

Liabilities and equity
Liabilities
Current liabilities
Trade and other payables

35,73038,717

Bonds and borrowings
Lease liabilities

86,524
3,825

39,672
3,645

Income taxes payable
Other financial liabilities

890
32,9995,919
37,158Provisions
Other current liabilities

7,485
52,0608,504
57,589Total current liabilities
Non-current liabilities

219,515

191,204

Bonds and borrowings
Lease liabilities

155,369
17,478

182,930
19,377

Other financial liabilities
Retirement benefit liability

51,8593,471

58,252
3,412

Provisions
Other non-current liabilities

1,941
278

2,422
897

Deferred tax liabilities

22,007

21,831

Total non-current liabilities

252,402289,121

Total liabilities

471,917480,325

EquityShare capital

53,88753,887

Capital surplus
Treasury shares

40,645(1,785)40,754(1,783)Retained earnings
Other components of equity

43,39230,17150,82838,630Total equity attributable to owners of parent

166,310

182,315

Non-controlling interests

891

933

Total equity

167,201

183,248

Total liabilities and equity

639,118

663,573- 14 -

(2) Consolidated Statement of Profit or Loss and Comprehensive Income
Consolidated Statement of Profit or Loss
(Millions of yen)
Year ended
December 31, 2022
RevenueYear ended
December 31, 2023

478,422518,632

Cost of sales

339,180

361,793

Gross profit

139,243

156,839

Selling, general and administrative expenses

129,931

141,206

Other operating income
Other operating expenses

3,992
3,198

6,406
10,219Operating profit (loss)

10,106

11,820Finance income

3,044

3,361

Finance costs
Share of profit of investments accounted for

1,891

3,107

108

69

11,367

12,144

Income tax expense

5,852

3,386

Profit (loss)

5,515

8,758

Owners of parent
Non-controlling interests

5,450
65

8,724
33

Profit (loss)

5,515

8,758

Basic earnings (loss) per share

69.96

111.99Diluted earnings (loss) per share

69.95

111.95using equity method
Profit (loss) before tax

Profit attributable to- 15 -

(3) Consolidated Statement of Comprehensive Income(Millions of yen)

Profit (loss)

Year ended

Year ended

December 31, 2022

December 31, 2023

5,515

8,758

Net change in fair value of equity instruments designatedas measured at fair value through other comprehensive

2,539

6,353

incomeRemeasurements of defined benefit plans(3,977)(71)

Total of items that will not be reclassified to profit or loss

(1,439)6,282

Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations

3,002

4,195

Other comprehensive income
Items that will not be reclassified to profit or loss

Effective portion of cash flow hedges
Total of items that may be reclassified to profit or loss

25

(7)

3,027

4,188

Total other comprehensive income, net of tax

1,588

10,470Comprehensive income

7,103

19,228Comprehensive income attributable to
Owners of parent

6,969

19,172

Non-controlling interests

135

56

Comprehensive income

7,103

19,228- 16 -

(4) Consolidated Statement of Changes in Equity(Millions of yen)
Other components of equity

Balance as of January 1, 2022

SharecapitalCapitalsurplusTreasurysharesRetainedearnings

53,88740,596(1,785)44,791

Profit (loss)

Exchange differenceson translation offoreign operations

Comprehensive income--

Purchase of treasury shares

(15)

2,932

25

-

5,450

2,932

25

(4)

Disposal of treasury shares

0

3

Dividends(3,277)

Share-based remunerationtransactions
Transfer from othercomponents of equity toretained earnings

49(3,572)

Total transactions with owners

-

49

(0)

(6,849)--53,88740,645(1,785)43,392

4,714

10

Other components of equity

Balance as of January 1, 2022

1,782

5,450

Other comprehensive
incomeBalance as of December 31,
2022

Effective portion of
cash flow hedges

Total equity
attributableto ownersof parent

Noncontrollinginterests

Total equity

Financial assets measured
at fair value through othercomprehensive income

Remeasurementsof defined benefit
plans

Total othercomponentsof equity

23,313-25,080

162,570

757

163,327

-

5,450

65

5,515

Profit (loss)
Other comprehensive
income2,539(3,977)

1,519

1,519

69

1,588

Comprehensive income

2,539(3,977)

1,519

6,969

135

7,103

Purchase of treasury shares

-

(4)

-

(4)

Disposal of treasury shares

-

3

-

3

Dividends-(3,277)(1)(3,278)

Share-based remunerationtransactions

-

49

-

49

Transfer from othercomponents of equity toretained earnings

(406)

3,977

3,572

-

-

-

Total transactions with owners

(406)

3,977

3,572

(3,228)(1)(3,229)Balance as of December 31,
2022

25,446-30,171

166,310891

167,201- 17 -

(Millions of yen)
Other components of equity

Balance as of January 1, 2023

SharecapitalCapitalsurplusTreasurysharesRetainedearnings

53,88740,645(1,785)43,292

Profit (loss)

Exchange differenceson translation offoreign operations

Comprehensive income--

Purchase of treasury shares

10

4,172

(7)

-

8,724

4,172

(7)

(7)

Disposal of treasury shares

08Dividends(3,277)

Share-based remunerationtransactions
Transfer from othercomponents of equity toretained earnings

109
1,988

Total transactions with owners

-

109

2

(1,289)--53,88740,754(1,783)50,828

8,886

3

Other components of equity

Balance as of January 1, 2023

4,714

8,724

Other comprehensive
incomeBalance as of December 31,
2023

Effective portion of
cash flow hedges

Total equity
attributableto ownersof parent

Noncontrollinginterests

Total equity

30,171

166,310891

167,201

-

8,724

33

8,758

Financial assets measured
at fair value through othercomprehensive income

Remeasurementsof defined benefit
plans

Total othercomponentsof equity

25,446-

Profit (loss)
Other comprehensive
income

6,353

(71)

10,447

10,44723

10,470Comprehensive income

6,353

(71)

10,447

19,172

56

19,228Purchase of treasury shares

-

(7)

-

(7)

Disposal of treasury shares

-

8

-

8

Dividends-(3,277)(15)(3,292)

Share-based remunerationtransactions

-

109

-

109

Transfer from othercomponents of equity toretained earnings(2,059)71(1,988)---

Total transactions with owners(2,059)71(1,988)(3,167)(15)(3,181)

Balance as of December 31,
2023

29,740-38,630182,315933

183,248- 18 -

(5) Consolidated Statement of Cash Flows(Millions of yen)
Year ended

Year ended

December 31, 2022

December 31, 2023

Cash flows from operating activities
Profit (loss) before tax

11,367

12,144

Depreciation and amortization
Impairment losses and reversal of impairment losses

21,234
1,326

20,971
7,333

Interest and dividend income
Interest expenses(1,056)
1,886(1,193)
2,245

Share of loss (profit) of investments accounted for using
equity method

(108)

(69)

Loss (gain) on sale and retirement of property, plant andequipment, and intangible assets(749)(3,668)Decrease (increase) in trade and other receivables
Decrease (increase) in inventories(2,862)(5,013)

(499)
1,042

Increase (decrease) in trade and other payables
Increase (decrease) in accrued alcohol tax

295(2,434)

2,547
1,286

Increase (decrease) in Retirement benefit Asset and liability
Other(5,736)282(1,125)5,429

SubtotalInterest and dividends received

18,431
1,066

46,445
1,250Interest paid
Income taxes paid

(1,725)(9,958)(2,138)(111)

Net cash provided by (used in) operating activities

7,814

45,446

Cash flows from investing activities
Purchase of property, plant and equipment(8,040)(16,466)

1,928(12,706)－

3,073(10,500)

Proceeds from sale of property, plant and equipment
Purchase of investment property
Proceeds from sale of investment property
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from redemption of investment securities
Payments for acquisition of subsidiaries due to change inscope of consolidation
Payments for loans receivableCollection of loans receivable
Other
Net cash provided by (used in) investing activities- 19 -(1,580)7,264(1,957)(4,187)1,140(10,720)
5,322

－

7,420

(22,558)

－

(48)

(39)

130
(216)

64
99

(46,137)(16,439)

(Millions of yen)
Year ended
December 31, 2022

Year ended
December 31, 2023

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Net increase (decrease) in commercial papers

9,625
10,000(16,309)(17,000)

Proceeds from long-term borrowings
Repayments of long-term borrowings

50,000(16,563)－

25,000(21,254)

Proceeds from issuance of bonds
Redemption of bonds(10,026)

20,000(10,000)

Dividends paid
Repayments of lease liabilities(3,277)(4,685)(3,277)(4,459)Purchase of treasury shares
Other

(4)
1,395

(7)
434

Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents

36,465(131)(27,140)(43)

Net increase (decrease) in cash and cash equivalents(1,988)

1,824

Cash and cash equivalents at beginning of period

17,36815,380Cash and cash equivalents at end of period

15,38017,204- 20 -

(6) Notes to Consolidated Financial Statements(Notes on the Going-concern Assumption)
Not applicable(Reporting entity)
Sapporo Holdings Limited (the "Company") is a stock company located in Japan. Both its
registered head office and principal business address are located in Shibuya-ku, Tokyo. The
Company's consolidated financial statements, with a year-end date of December 31, 2023, consist of
the Company and its subsidiaries (collectively the "Group"), as well as the Company's interest in its
affiliates. The Group's business and key activities are described in (Segment Information).
(Basis of Creation)(a) Compliance with IFRSThe Group's consolidated financial statements are prepared in accordance with IFRS (International
Financial Reporting Standards). The Company has applied the provisions of Article 93 of theRegulation since meeting the requirements of "Specified Company Complying with DesignatedInternational Accounting Standards" as stipulated in Article 1-2 of the Regulation on Consolidated
Financial Statements.
(b) Presentation currency
The Group's consolidated financial statements are presented in Japanese yen, the functional
currency of the Company, rounded to the nearest million yen.
(Significant accounting estimates and judgments involving estimates)
In preparing consolidated financial statements in accordance with IFRS, management is required tomake judgments, estimates, and assumptions that affect the application of accounting policies andthe amounts of assets, liabilities, revenues, and expenses. Actual results may differ materially fromthese estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Changes in accounting
estimates are recognized in the accounting period in which the estimate is revised and in futureaccounting periods thereafter.
Significant accounting estimates and judgments involving estimates in the consolidated financial
statements are the same as those used in the consolidated financial statements for the previous fiscal
year.
(Segment Information)(a) Overview of reportable segments
The Company’s reportable segments are components of the Sapporo Group about which separate
financial information is available. These segments are subject to periodic examinations to enable theCompany’s board of directors to decide how to allocate resources and assess performance.
Under the Company, which is a pure holding company, Group companies carry out business activities
and formulate strategies for the products and services they offer and for the sales markets they cover.
The Group’s businesses are segmented mainly based on the products, services and sales markets ofGroup companies and their affiliate companies. The Company’s three reportable segments are
Alcoholic Beverages, Food & Soft Drinks, and Real Estate.
The Alcoholic Beverages segment produces and sells alcoholic beverages and operates restaurants
of various styles.
The Food & Soft Drinks segment produces and sells foods and soft drinks.
The Real Estate segment’s activities include leasing and development of real estate.

- 21 -

(b) Revenue, profit (or loss)(Millions of yen)
Years ended December 31, 2022 (January 1, 2022 – December 31, 2022)
Alcoholic
Beverages

Food &
Soft
DrinksReal
EstateOther *1

Total

Adjustment

Consolidated
total

Revenue
To outside customers

334,644

122,914

20,724140

478,422－478,422

Inter-segment revenue

12,571

912

2,332

－

15,815(15,815)－

347,215

123,826

23,057140494,237(15,815)

478,422

8,908

2,270

5,442

18

16,638(6,531)

10,106

Total
Operating profit (loss)(Millions of yen)
Years ended December 31, 2023 (January 1, 2023 – December 31, 2023)
Alcoholic

Food &Real

Other *1

Total

Adjustment

Consolidated

Beverages

Soft
DrinksEstateTo outside customers

376,862

119,922

21,702

146

518,632－

518,632

Inter-segment revenue

12,363

1,025

2,388

－

15,777(15,777)－

389,225

120,947

24,090146

534,408(15,777)

518,632

8,980

1,693

8,867

15

19,555(7,735)

11,820total

Revenue

Total
Operating profit (loss)"Other" comprises businesses, such as health food business, etc., that are not included in reportablesegments. Adjustment included General corporate and intercompany eliminations.
General corporation are general administrative expenses that do not belong to the reporting segment.
(Subsequent Events)
None- 22 -