Financial Results
for the three months ended March 31, 2020 — Consolidated(Based on IFRS)
May 14, 2020

Company name

Sapporo Holdings Limited

Security code
2501
Listed on
Tokyo Stock Exchange (First Section); Sapporo Securities Exchange
URL
https://www.sapporoholdings.jp/english/
Representative
Masaki Oga, President and Representative Director
Contact
Tatsuya Komatsu, Director of the Corporate Planning Department
Telephone+81-3-5423-7407
Scheduled dates:
Filing of quarterly financial report
May 15, 2020
Commencement of dividend payments
Supplementary information to the year-end earnings results
Available
Yes
Quarterly earnings results briefing held
(mainly targeted at institutional
investors and analysts)
1. Consolidated Financial Results for the three months ended March 31, 2020
(January 1 – March 31, 2020)(Amounts in million yen rounded to the nearest million yen)
(1) Operating Results(Percentage figures represent year-over-year changes)
Core Operating profit
Operating profit
ProfitRevenuemillion yen%

million yen

million yen%

million yen

Three months ended
March 31, 2020

99,824(1.1)(6,197)%_(6,078)_(4,704)_Three months ended
March 31, 2019100,958(3.2)(5,772)_(4,147)_(3,782)_

Profit attributable toowners of parent

Total comprehensive
incomemillion yen%

Basic earnings
per share%

Diluted earnings
per share

million yen

%

Yen

Yen

Three months ended
March 31, 2020

(4,649)_(18,591)_(59.69)(59.69)Three months ended
March 31, 2019

(3,590)

_

5,167

_

(46.09)(46.09)Note: Profit before tax
Three months ended March 31, 2020
(6,304) million yen
Three months ended March 31, 2019
(4,494) million yen
Note: Core operating profit is a proprietary profit indicator that measures the performance consistency of ourbusiness. Core operating profit is calculated as Revenue – Cost of sales – SG&A expenses.

－ 1 －(2) Financial Position
Total assets

Total equity

Equityattributable toowners of parent

Ratio ofequity attributableto owners of parent
to total assets

million yen

million yen

million yen%

Three months ended
March 31, 2020

609,079

152,655

152,29725.0

Year ended
December 31, 2019

638,722

174,524

174,071

27.3

2. Dividends
Dividend per share
Record date or period

End Q1End Q2yen

End Q3yen

Year ended December
31, 2019—

Year ended December
31, 2020—

Year-end

Full year

yen

yen

yen
—

—

42.00

42.00

—
—
Year ending December
31, 2020 (forecast)
Note: Changes to the latest dividend forecast announced: None

42.00

42.00

3. Forecast of Consolidated Earnings for the Year Ending December 31, 2020
(January 1 – December 31, 2020)
Note: Changes to the latest consolidated results forecast announced: Yes

With regard to the Forecast of Consolidated Earnings for the Year Ending December 31, 2020, the difficulty inreasonably calculating the impact of the novel coronavirus outbreak means the Company is unable to disclose
fair and reliable forecast figures to shareholders and investors at this time. The Company has therefore opted
to omit the forecast figures and will submit them to a review.
For details, please see““1.Analysis of Operating Results and Financial Condition (3) Consolidated Earnings
Forecast” page 7 of the accompanying material.

－

2 －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):
March 31, 2020: 78,794,298 shares
December 31, 2019: 78,794,298 shares
2) Number of shares held in treasury at end of period:
March 31, 2020: 898,430 shares
December 31, 2019: 898,162 shares

3) Average number of outstanding share during the period:
Three months ended March 31, 2020: 77,895,889 shares
Three months ended March 31, 2019: 77,885,982 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 “1.Analysis of Operating Results and Financial
Condition (3) Consolidated Earnings Forecast” on page 7.

－ 3 －1. Analysis of Operating Results and Financial Condition(1) Operating Results
In the first quarter of 2020 (January 1 – March 31, 2020), uncertainty in the global economy further
increased owing to the concerns about an economic slowdown caused by the novel coronavirus
outbreak, in addition to US-China trade frictions and the UK’s exit from the EU. Amid growing
downside risks for the Japanese economy from the travel restrictions announced by the government
as well as requests to refrain from non-essential/non-urgent outings and holding events as measures
to prevent the spread of the virus, it remains unclear as to when the outbreak will end and there areconcerns over prolonged adverse effects on the economy.
In this environment, the Sapporo Group endeavored to accelerate growth strategies under its LongTerm Management Vision “SPEED 150” and Group Management Plan 2024 and work towardachieving its financial targets for 2020, as it strives to be a company with highly unique brands in thefields of “Alcoholic Beverages”, “Food”, and “Soft Drinks” around the world.
As a result, in the first quarter of 2020, consolidated revenues totaled ¥99.8 billion (down ¥1.1
billion, or 1% year on year), the core operating loss* was ¥6.2 billion (compared with a core operating
loss of ¥5.8 billion in the first quarter of the previous fiscal year), the operating loss came to ¥6.1
billion (compared with an operating loss of ¥4.1 billion a year earlier), and the net loss attributable toowners of the parent came to ¥4.6 billion (compared with a net loss of ¥3.6 billion a year earlier).
*Core operating profit (loss) is the Company’s unique profit benchmark for measuring theperformance of its regular business and is calculated by deducting cost of sales, and selling, generaland administrative expenses from revenue.
Results by segment are outlined below. From this year, the logistics business, which used to belisted under “other business,” is classified under “Alcoholic Beverages.” To enable year-on-yearcomparisons, figures for the previous fiscal year have been adjusted to reflect the new reportablesegments.
Seasonal Factors
The Group’s operating results are affected by substantial seasonal variation in demand for theAlcoholic Beverages and the Food & Soft Drinks businesses. Revenues consequently tend to belower in the first quarter than in the other three quarters.
Alcoholic Beverages
Sapporo Breweries set forth its new vision for 2026 as“Be the first to offer someone the best,
create stronger consumer connections by enhancing the Sapporo experience. Focus on two
positions: Premium & Reasonable values. Have global vision & reach while respecting local
perspectives”. Along with continuously honing the quality of our premium value offerings that only
we can provide, we aim to achieve growth through continuous provision of reasonable value offerings
by delivering high quality products for less.
(Japan & Asia)
In the beer markets in Japan and Asia, the commercial-use market is beginning to be significantly
impacted by the novel coronavirus outbreak. Total demand in Japan for beer and beer-type
beverages has fallen significantly, with a 13% decrease in March compared with a year earlier, andtotal cumulative year-to-date demand is estimated to have only reached 94% of the year-earlier level.
In the beer category, while commercial-use beer sales declined, sales of canned Sapporo Draft
Beer Black Label have been strong, growing 4% year on year, based on our “beer revival declaration”
business policy. In the new genre category, the new product Sapporo Gold Star, which was launchedin February, has been well-received and total sales volume of new genre products rose 36% year on
year. As a result, total sales of beer and beer-type beverages increased 3% year on year.
－

4 －In the RTD*1 category, sales of core collaborative RTD product Otoko Ume Sour were strong, but
category revenue declined year on year partly due to sluggish growth of the core Sapporo Chuhai
99.99 (Four Nines) brand products.
In the wine category, we stepped up marketing of our fine wines*2, including the imported wine
Penfolds, Taittinger champagne, and our domestic Grande Polaire wines. However, weak sales of oureveryday wines*2 and sluggish growth in demand for commercial-use products led to revenue for thewine category being below that of the previous year.
Our spirits business achieved year-on-year growth in revenue, driven by strong sales of products
from major overseas brands including Dewar’s.
Our Japanese liquor business also posted a year-on-year increase in revenue with solid sales of
Kokuimo brand, Japan's best-selling*3 blended imo shochu, as well as Koime no Lemon Sour noMoto, which was launched in October 2019.
In Asia, in the Vietnam market we are continuing our efforts to establish sales channels capable ofgenerating profit growth while the business faces tightened restrictions against alcoholic beverages
and the impact of the novel coronavirus outbreak.
(North America)
In the North American beer market, demand in the commercial-use market is beginning to beaffected significantly by the novel coronavirus outbreak. We estimate that total beer demand declined
markedly year on year in both the U.S. and Canada.
In this environment, our North American business worked to strengthen the mainstay brands,
primarily premium beer brands, and enhance the portfolio for each brand.
In Canada, our subsidiary Sleeman Breweries continued to invest in the marketing of its core
premium brands, but beer sales volume (excluding Sapporo brand beer) fell slightly compared with ayear earlier.
In the U.S., Sapporo USA's sales volume of Sapporo brand beers grew year on year due to thecompany's sales promotion activities for Sapporo brands targeting the general population as well as
Asian-Americans. Meanwhile, Anchor Brewing Company worked to bolster sales synergies with
Sapporo USA amid the challenging business environment created by the continued decline indemand for craft beer in its home market in the San Francisco area.
(Restaurants)
In Japan’s domestic restaurant market, Japan's restaurant industry as a whole has been seriously
impacted by the novel coronavirus outbreak and is facing an extremely severe business environment.
Amid plummeting sales, most companies and restaurants are forced to shorten their business hours
or temporarily close their premises and switch to new business models, including offering takeout
meals.
In this environment, Sapporo Lion continued to operate, albeit with shortened hours and temporary
closures, to fulfill its social responsibility as a provider of meals, and strived to reduce costs amid asignificant decline in the number of customers. We opened two new restaurants in March under acontract-based format: One at a golf course in Numazu, Shizuoka Prefecture, and another in the
Saitama Prefectural Citizens’ Activities General Center in Ina-machi, Saitama Prefecture. In terms ofrenovating restaurants, we are working on full refurbishment of the Otemachi and Ebisu outlets ofGinza Lion in Tokyo and are preparing for re-opening in summer this year. Meanwhile, we closed nine
restaurants during the first quarter due to expiration of contracts, unprofitability, or other factors.
Consequently, our domestic restaurant business had 188 outlets open for business at the end of
March.
As a result, revenue in the Alcoholic Beverages segment in the first quarter of 2020 came to ¥63.4
billion (down ¥3.0 billion, or 4% year on year), while the segment posted a core operating loss of ¥4.6
billion (compared with a core operating loss of ¥3.4 billion in the first quarter of the previous fiscal
year) and an operating loss of ¥4.5 billion (compared with a loss of ¥3.3 billion a year earlier).
－ 5 －*1) RTD, or ready-to-drink beverages, are pre-mixed, low-alcohol cocktail-like beverages that can be
consumed as is immediately after opening.
*2) Fine wines are wines priced in the mid-to-high price range of ¥1,500 or more per bottle, while
everyday wines are those priced at less than ¥1,500 per bottle.
*3) Based on lntage SRI market research on combined blended imo shochu sales in the
supermarket, convenience store, and direct sales channels from July 2018 through March 2020.
Food & Soft Drinks
Due to the impact of the novel coronavirus outbreak, the Japanese domestic food and soft drinks
market is seeing declines in commercial-use market demand and vending machine sales. We
estimate that overall demand for soft drinks in Japan in the first quarter of 2020 declined by 2% year
on year.
In this market environment, POKKA SAPPORO continued to perform strongly with full-year sales of
LEMON MADE Original Lemonade, which had proved popular when put on sale for a limited time inJune 2019, in addition to sales of the mainstay Kireto Lemon. It also strengthened the Kireto Lemonbrand by launch new products including Kireto Lemon Double Lemon and Kireto Lemon Kuensan
2700. Total sales volume of soft drinks increased 5% year on year as product development leveraging
the value of lemons, one of the company’s strengths, proved successful.
In the domestic food business, the company launched the protein-rich Kichinto Chicken soup series
to propose new value to customers. It has launched new canned chilled soup products, which havebeen increasing in number in recent years, and will market them as quick, easy, and nutritious
products to drink during the hot summer months. Sales of Jikkuri Kotokoto Kongari Pan also continue
to be strong and the company plans to further boost product awareness through advertising. As aresult of these initiatives, sales volume of soup products increased 6% year on year. Sales volume oflemon-based food products increased 5% year on year, as core product Pokka Lemon 100 continues
to perform strongly and the company worked on expansion of lemon-related demand by launching
Reito Pokka Lemon Sonomama Tsukaeru Cut Lemon in response to customer demand for being able
to use only the quantity of fresh lemon they require for a certain purpose. In the soy beans and chilled
products category, in March we relaunched two SOYBIO Soymilk Yogurt products and Almond Breeze.
Sales volume of the products rose 59% year on year through enhanced marketing of the appeal of
the products’ ingredients and the introduction of new package designs that further clarify the products’
special features.
The Café de Crié coffee shop chain continued to introduce new menu items with seasonal andtrendy dishes, etc., but revenue fell year on year with a large decline in the number of customers dueto the novel coronavirus outbreak.
Overall, revenue in the Food & Soft Drinks segment came to ¥30.3 billion (up ¥1.8 billion, or 6%
year on year), while the segment posted a core operating loss of ¥1.4 billion (compared with a core
operating loss of ¥2.0 billion in the first quarter of the previous fiscal year) and an operating loss of¥1.4 billion (compared with a loss of ¥2.3 billion a year earlier).
Real Estate
In Japan's real estate industry, vacancy rates continued to remain low in the Greater Tokyo officeleasing market as demand for office space continued to be firm. As a result, rents remained on amoderate upward trend.
In this environment, our real estate leasing business maintained high occupancy rates at its
properties in the Greater Tokyo area, including Yebisu Garden Place Tower, the business's coresource of earnings.
We continued to enhance the asset value of Yebisu Garden Place commercial complex—alandmark in the Ebisu district of Tokyo, which is marking its 25th anniversary—through constantefforts to provide tenants and visitors with enjoyable experiences in comfortable, pleasant, andsophisticated surroundings by enhancing convenience and strengthening the property's brand appeal.
The real estate development business proceeded with the renovation of the Sapporo Factory－

6 －commercial complex as part of Sapporo City's urban redevelopment program focused on the area on
the east side of the Sosei River. Amid the changing environs surrounding the complex, we arecontributing to the development of the area through proposing new lifestyles and enhanced
convenience. The number of guests at Hotel Clubby Sapporo decreased due to the impact of thenovel coronavirus outbreak.
We worked on development of new business, etc. while continuing to strategically review andrevise our property portfolio from a long-term perspective so as to enhance the overall value of ourReal Estate business. We also worked on investment for growth such as acquisition of rental
properties in the Ebisu area and equity investment in private placement funds.
As a result of the efforts outlined above, revenue in the Real Estate business came to ¥6.1 billion(the same as one year earlier), while core operating profit came to ¥1.2 billion (up ¥0.1 billion, or 7%
year on year) and operating profit was ¥1.2 billion (down ¥1.8 billion, or 60% year on year).
(2) Consolidated Financial Condition
Consolidated assets as of March 31, 2020, totaled ¥609.1 billion, ¥29.6 billion less than at the endof the previous fiscal year (December 31, 2019). The decline was mainly due to the decrease in tradeand other receivables as well as other financial assets (non-current), which more than offset anincrease in cash and cash equivalents in anticipation of the tightening of the fund procurement
environment due to the novel coronavirus outbreak.
Consolidated total liabilities totaled ¥456.4 billion, which was ¥7.8 billion less than on December 31,
2019, primarily owing to the decrease in other current liabilities and bonds and borrowings (noncurrent), which helped to offset the increase in bonds and borrowings (current) resulting fromadditional issuance of commercial papers in anticipation of the tightening of the fund procurement
environment due to the novel coronavirus outbreak.
Consolidated total equity totaled ¥152.7 billion, down ¥21.9 billion from December 31, 2019. Thisdecline was due to the posting of a net loss attributable to owners of parent, the payment of year-end
dividends, and a decline in other components of equity.
(3) Consolidated Earnings Forecast
The businesses of the Sapporo Group have been impacted by the novel coronavirus outbreaksince March. While there are sectors in which sales have been growing thanks to increased stay-athome consumption since authorities issued requests for people to refrain from non-essential outings,
sales of commercial-use products have declined. Moreover, restaurants, which are included in the
Alcoholic Beverages and Food and Soft Drinks businesses, are temporarily closing or shortening theiroperating hours in response to requests to do so from authorities following the state of emergency
declaration in April.
The Sapporo Group is placing utmost priority on the health and safety of its employees and taking
measures to prevent the spread of the novel coronavirus including thorough implementation of
teleworking, and encouraging employees to stay at home and avoid the “3Cs” (closed spaces,
crowded places, and close contact with others) when going out, including during outings unrelated towork duties. At the same time, to fulfill its responsibility as an alcoholic beverage, food, and soft drink
manufacturer to supply products to customers, the Group is continuing to produce and supply beertaste products and other alcoholic beverages, drinking water, soup products, and lemon-based
products while taking every measure to ensure the safety of employees and prevent the spread of
infection.
It is currently difficult to predict when the novel coronavirus pandemic will end, when the state of
emergency will be lifted, and in which municipalities it will be lifted first, and this uncertain businessenvironment is expected to continue. Under these circumstances, it is extremely difficult to provide a
reasonable earnings forecast and the consolidated earnings forecast for the fiscal year ending
December 31, 2020 is therefore yet to be determined. The Company will disclose the forecast assoon as this becomes possible.
－ 7 －2. Consolidated Financial Statements(1) Consolidated Statement of Financial Position(Millions of yen)
December 31, 2019
AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other financial assets
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Investment property
Goodwill
Intangible assets
Investments accounted for using
equity method
Other financial assets
Other non-current assets
Deferred tax assets
Total non-current assets
Total assets－

March 31, 2020

15,21592,52936,5285,403
6,090
155,765

29,36460,50538,332
4,459
8,233
140,892

147,014219,589
18,358
8,844

144,253
219,918
18,215
8,649

428

430

78,7287,445
2,551
482,957
638,722

65,241
6,560
4,921
468,187
609,079

8 －(Millions of yen)
December 31, 2019

March 31, 2020

Liabilities and equity
Liabilities
Current liabilities
Trade and other payables
Bonds and borrowings
Lease liabilities
Income taxes payable
Other financial liabilities
Other current liabilities
Total current liabilities

34,475
72,121
6,538
2,414
33,021
61,903
210,472

31,236
98,923
6,329
482
36,39943,860217,228

Non-current liabilities
Bonds and borrowings
Lease liabilities
Other financial liabilities
Retirement benefit liability
Other non-current liabilities
Deferred tax liabilities
Total non-current liabilities
Total liabilities

155,220
23,921
46,624
5,007
2,828
20,125
253,725
464,197

143,504
22,87546,748
7,953
2,777
15,337239,196456,424

53,88740,958(1,792)
51,521
29,49753,88740,958(1,793)
41,201
18,045174,071

152,297454
174,524
638,722358
152,655
609,079

EquityShare capital
Capital surplus
Treasury shares
Retained earnings
Other components of equity
Total equity attributable to ownersof parent
Non-controlling interests
Total equity
Total liabilities and equity－ 9 －(2) Consolidated Statement of Profit or Loss and Comprehensive Income
Consolidated Statement of Profit or Loss
(Millions of yen)Three months ended
March 31, 2019
Continuing operations
Revenue
Cost of sales
Gross profit
Selling, general and administrative
expenses
Other operating income
Other operating expenses
Operating loss

Three months ended
March 31, 2020

100,958
71,971
28,98899,82471,44628,37834,76034,5752,731
1,105(4,147)355
237(6,078)

194
542

239
466

Finance income
Finance costs
Share of profit of investments accounted
for using equity method
Loss before tax

3

2(4,494)(6,304)

Income tax expense
Profit (loss) from continuing operations(858)(3,635)(1,599)(4,704)(147)－(3,782)(4,704)

Loss attributable to
Owners of parent
Non-controlling interestsLoss(3,590)(193)(3,782)(4,649)(55)(4,704)

Basic earnings (loss) per share
Continuing operations
Discontinued operations
Basic loss per share(45.29)(0.80)(46.09)(59.69)－(59.69)Diluted earnings (loss) per share
Continuing operations
Discontinued operations
Diluted loss per share(45.29)(0.80)(46.09)(59.69)－(59.69)

Discontinued operations
Loss from discontinued operations
Loss

－

10 －

(3) Consolidated Statement of Comprehensive Income(Millions of yen)Three months ended
March 31, 2019
Loss
Other comprehensive income
Items that will not be reclassified to
profit or loss
Financial assets measured at fairvalue through othercomprehensive income
Remeasurements of defined
benefit plans
Total of items that will not bereclassified to profit or loss
Items that may be reclassified to
profit or loss
Exchange differences ontranslation of foreign operations
Effective portion of net change infair value of cash flow hedges
Total of items that may bereclassified to profit or loss
Other comprehensive income,net of tax
Comprehensive income
Comprehensive income attributable to
Owners of parent
Non-controlling interests
Comprehensive income－ 11 －

Three months ended
March 31, 2020

(3,782)(4,704)

4,216(9,838)4,087(2,038)8,304(11,876)641(2,007)

5

(4)

645

(2,011)

8,949(13,887)

5,167(18,591)

5,262
(95)
5,167

(18,496)(95)(18,591)

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

Balance as of January 1,
2019

Share
capitalCapitalsurplusTreasurysharesRetainedearnings

53,88740,998(1,822)

46,065

Exchange differenceson translation offoreign operations

Effective portion of
cash flow hedges(1,485)(188)(3,590)Loss
Other comprehensive
income

-

-

-

-

545

3

Comprehensive income

-

-

-

(3,590)

545

3

4,095

-

-

Purchase of treasury
shares
Disposal of treasury
shares(2)00(3,277)

Dividends
Changes due to sale ofconsolidated subsidiaries
Transfer from othercomponents of equity toretained earnings
Total transactions withownersBalance as of March 31,
2019

-

0

(1)

818

-

-

53,88740,998(1,823)43,293

(940)

(185)

Other components of equity

Balance as of January 1,
2019

Total equity
attributableto ownersof parent

Noncontrollinginterests

Total
equityFinancial assets measured
at fair value through othercomprehensive income

Remeasurementsof defined benefit
plans

Total othercomponentsof equity

24,046-

22,373

161,501

3,234

164,735-(3,590)(193)(3,782)Loss
Other comprehensive
income

4,216

4,087

8,851

8,851

98

8,949

Comprehensive income

4,216

4,087

8,851

5,262

(95)

5,167

-

(2)

-

(2)

-

0

-

0

Dividends-(3,277)-(3,277)

Changes due to sale ofconsolidated subsidiaries

-

-

(320)

(320)

Purchase of treasury
shares
Disposal of treasury
sharesTransfer from othercomponents of equity toretained earnings
Total transactions withownersBalance as of March 31,
2019

(8)

(4,087)(4,095)

-

-

-

(8)

(4,087)(4,095)(3,279)(320)(3,599)28,254-

27,129163,484

2,819

166,303－

12 －(Millions of yen)
Other components of equity

Balance as of January 1,
2020

Share
capitalCapitalsurplusTreasurysharesRetainedearnings

53,88740,958(1,792)

51,521

Exchange differenceson translation offoreign operations

Effective portion of
cash flow hedges

(863)

(68)

(4,649)Loss
Other comprehensive
income----(1,967)(4)

Comprehensive income

-

-

-

(4,649)(1,967)(4)Purchase of treasury
shares
Disposal of treasury
shares(1)(0)

0Dividends(3,277)

Transfer from othercomponents of equity toretained earnings(2,394)--

Total transactions withownersBalance as of March 31,
2020

-

(0)

(1)

(5,671)--53,88740,958(1,793)

41,201(2,829)(72)

Other components of equity

Balance as of January 1,
2020

Total equity
attributableto ownersof parent

Noncontrollinginterests

Total equity

29,497174,071454

174,524-(4,649)(55)(4,704)

Financial assets measured
at fair value through othercomprehensive income

Remeasurementsof defined benefit
plans

Total othercomponentsof equity

30,428-Loss
Other comprehensive
income(9,838)(2,038)(13,846)(13,846)(40)(13,887)

Comprehensive income(9,838)(2,038)(13,846)(18,496)(95)(18,591)

-

(1)

-

(1)

-

0

-

0

-

(3,277)-(3,277)Purchase of treasury
shares
Disposal of treasury
sharesDividends
Transfer from othercomponents of equity toretained earnings
Total transactions withownersBalance as of March 31,
2020

356

2,038

2,394

-

-

-

356

2,038

2,394

(3,278)-(3,278)20,946-

18,045

152,297358

152,655－ 13 －

(5)Notes on the Going-concern Assumption
Not applicable(6)Segment Information
1. 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 the Company’s boardof 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 andformulate 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 of Group
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 ofvarious 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.
Changes to Reportable Segments

From this year, the logistics business, which used to be listed under “other business,” is classified under“Alcoholic Beverages.” To enable year-on-year comparisons, figures for the previous fiscal year havebeen adjusted to reflect the new reportable segments.
The profit and loss of the North American soft drinks business has been classified under discontinued
operations in 2019.Therefore, the amount of continuing operations excluding the amount of discontinued
operations from related items is shown.
2.

Revenue, profit (or loss)(millions of yen)Three months ended March 31, 2019 (January 1, 2019 – March 31, 2019)
Alcoholic
Beverages

Food &
Soft Drinks

Real Estate

28,498

6,086

Other *1

Total

Adjustment

Consolidated
total

Revenue
To outside customers
Inter-segment revenue
Total
Operating profit (loss)

66,341

34

100,958－

100,958

1,955

28

664

－

2,648

(2,648)－68,29628,5266,750

34

103,606(2,648)100,958(3,278)(2,312)3,011

6(2,574)(1,574)(4,147)(millions of yen)Three months March 31, 2020 (January 1, 2020 – March 31, 20120)
Alcoholic
Beverages

Food &
Soft Drinks

Real Estate

Other *1

Total

Adjustment

Consolidated
total

Revenue
To outside customers

63,37330,3386,073

40

99,824－

Inter-segment revenue

2,234

34

660

0

2,929

(2,929)－65,60730,372

6,733

40

102,752(2,929)99,824(4,534)(1,395)1,192

7(4,729)(1,349)(6,078)

Total
Operating profit (loss)

99,824(1)"Other" comprises businesses, such as health food business, etc., that are not included in reportable segments.

－

14 －