2014
Sapporo Group Business Results Presentation
for the Nine Months Ended September 30, 2014

November 5, 2014

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

Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved.

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Contents

1. Third-Quarter 2014 Topics

2. Overview of Third-Quarter 2014 Results

Reference
1. Supplementary Information to Third-Quarter 2014 Results (Business Summary)
2. Sapporo Group’s Medium-Term Management Plan 2014 - 2016

Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved.

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1. Third-Quarter 2014 Topics

Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved.

3/20

Third-Quarter 2014 Topics (1)Japanese Alcoholic Beverages
 Jan-Sep cumulative: Sales volume of beer and beer-type beverages (beer, happoshu and new genre)
up 3% yoy (total demand down 2% yoy)
”Goku Zero,” which was re-launched in July, continued to show strong sales, and beer and beer-type
beverages increased the share as a whole driven by premium beer Yebisu andnew genre Mugi to Hop<Status of core brands>Beer Total sales of Yebisu brand increased 4% yoy, supported by sales of Yebisu Natsu no koku, avialable
only in summer gift and the launch in September of Kohaku Yebisu

Happoshu*The world’s first new genre beverage with no carbohydrates or purine bodies launched on June 2013
Re-launched as happoshu on July 15, 2014: “Goku Zero” sales in line with plan for Jul-Sep
Total of 4.45 million cases (large bottle count) combined with Jan-Jun new genre sales(no change to FY2014 plan of 5.5 million cases

New Genre Sales of Mugi to Hop The gold, re-launched in February, continued to be strong.
Launched Mugi to Hop Red in September

Jan – Sep Cumulative Sales Volume YoY Comparison (total for beer, happoshu and new genre)

125
110

％
99

105

Total demand
96

125 ％

Sapporo99

Jan – Sep Cumulative Sales Volume YoY Comparison (total for happoshu and new genre)

98

103

110

95

95

80

80

65

65

50

115

Total demand

Sapporo
108

98

97

Jan-JunJan-Sep50
Jan-Jun

Jul-Sep

Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved.

Jan-Sep

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Third-Quarter 2014 Topics (2)International BusinessNorth America
SLEEMAN Net Sales (before elimination of inter-company transactions)in Local Currency (Jan-Sep)

SLEEMAN (Canada)（Jan-Sep)

 Despite sales declining amid intensifying
price competition of best-value products,
sales outperformed total demand year
over year Jan-Sep cumulative: Premium – up 4%;
Value – down 3%
 Sales of best-value products bottomed out
after the price reduction since April

Vietnam2014

SLEEMAN*

104%

99%

Canada total
demandApprox.

Approx.

97%

98%（Jan-Sep)

Sales declined by 13% yoy in the firstquarter due to shipment delays caused by
the cold waves in January and February
Sales grew 6% yoy in Apr-Sep as shipment
delays were resolved
Cumulative sales for Jan-Sep recovered toprevious year’s level

Sapporo Vietnam
Long An Plant Can line

2013

*Excluding Sapporo brand

Sapporo USA (U.S.)
Sapporo USA Net Sales (before elimination of inter-company transactions)in Local Currency (Jan-Sep)

Unit sales (YoY)

Unit sales (YoY)

2013

2014

Sapporo USA*

107%

100%

*Sapporo brandJan-Sep 2014 yoy sales volume in Vietnam (excluding exports)

In Vietnam,
despite impacts such as the reaction to the temporary demand in
March last year before the liquor tax increase in April, sales volume
grew significantly from April, as cumulative sales for first ninemonths grew 39% yoy
Continue active sales promotion investment to establish brand andexpand sales channels
Sequential start of export to neighboring countries, exporting to 12
countries and regions as of September 30•Sapporo brand has a presence in 8 of 10 ASEAN countries
Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved.

160
150

139

130

100

50
Jan-Jun

Jul-Sep

Jan-Sep

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Third-Quarter 2014 Topics (3)Food & Soft Drinks
 POKKA SAPPORO Food & Beverages Ltd., into its second year after integration: Sales increasedslightly, while operating income was more or less at previous year’s level
Apr 14: Green Shower•Domestic soft drinks sales declined 3% yoy due to the bad weather this year compared to last year’sheat wave (99% of total demand)•Strong sales for re-launched Kireto Lemon Sparkling, while lemon-based products and instant soups
also remained robust•Overseas, sales increased 16% yoy as domestic sales and exports grew steadily in Singapore, which
serves as the business baseDomestic Food & Soft Drinks Jan – Sep Cumulative Sales Volume YoY

％
110
100

111

Total demand
Sapporo
99

97

100

102

105

launched
Sales volume growing
strongly with total salesof 600,000 cases against
annual target of 750,000
cases

New product: nourishment support
soups

Medish soup90
80

Domestic soft drinks Lemon based products Instant soups (incl.
(flavorings)
soups in a cup)

Total demand data: Source – Total for SM CVS formats by Intage SRI(nationwide retailer panel research)
Jan–Sep 2014 yoy comparison of cumulative sales amount for the lemon-based products market (Sapporo’s
definition) and instant soup market
Pokka Malaysia plant completed■ Soft Drinks (International): POKKA Corporation (Singapore) Pte. Ltd.
 Boost production capacity by bringing the new plant in Malaysia on line
 Maintain and expand the lead in the market share for tea drinks in
Singapore Accelerate POKKA brand recognition in countries, other thanSingapore, where its products are available
Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved.

Production started in OctoberCapacity: 6 million cases/yearObtained Malaysian Halalcertification, which is trusted
world-wide

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Third-Quarter 2014 Topics (4)Restaurants
 Jan-Sep sales at existing outlets were same as previous year (excluding the Ginza 5-chome andShiｍbashi restaurants which were closed for building reconstruction)
Sales for all outlets declined as key restaurants in Ginza and Shiｍbashi
suspended operations due to redevelopment of the buildings housing them
Sales for existing outlets remained the same yoy for the Jan-Sep period
despite heavy snowfall in February and bad weather in August
New format restaurants of “Ginza Lion” newly opened, including “BIER KELLER TOKYO” in September< Anniversary festivals >•April: Beer Hall LION GINZA 7-Chome in Ginza, Japan’s oldest operational beer hall (no reconstruction) celebrated its
80th anniversary•May: Beer Hall LION Tanukikoji inSapporo celebrated 100th anniversary since start of operation
銀座

1934 Completion (Ginza)

New format
casual beer hall
“BIER KELLER TOKYO”

Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved.

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Third-Quarter 2014 Topics (5)Real Estate Activities to enhance the value of existing properties

Yebisu Garden Place•Enhance the value of existing properties through renovation to realize fair value for existing
real estate
Yebisu Garden Place Efforts to enhance the value and improve profitability in view of its 20th anniversary this year
•

•
•
•

Office renovation focused on business continuity, including augmentation of emergency power supply
facilities in times of disaster as well as enhancement of office convenience. Refurbishing commercial
and restaurant facilities to enhance the appeal of the entire Ebisu district
Augmentation of emergency power supply completed in March
Renovation of communal space in the second basement restaurant floor coinciding with the opening of large
high-end restaurant
Leasing to a new tenant after the end of the lease contract with a large tenant at the end of May is
expected to complete by the end of December.

Redevelopment of the Ginza and Ebisu Areas

Ebisu First Square Construction of Ebisu First Square completed at the site of Seiwa Yebisu Building• Completed as planned, including costs and construction period, on September 30, 2014,
and starts operation fully occupied.
• 6 floors above ground, 1 below ⇒12 floors above ground, 1 below(total floor area 10,400㎡⇒15,496㎡)• Office building with superior safety and environmental features including energy savings,
seismic isolation structure and 72-hour emergency power generation capability
 Redevelopment of Sapporo Ginza Building situated on Ginza 4-chome intersection• 10 floors above ground, 4 below ⇒11 floors above ground, 2 below(total floor area 4,232㎡⇒7,082㎡)• Demolition started in April 2014 towards completion in May 2016•

Façade design has been finalized and it is expected to be a commercial facility that would
contribute to the further revitalization of Ginza and generate footfalls
Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved.

Sapporo Ginza Building(artist’s rendering ofrenovated building)

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Third-Quarter 2014 Topics (6)Implementation Status of Strategic Investments(Including Ordinary Capex, on a cash basis)<Capital expenditure and lease fees>
Consolidated total: Approx. ¥16.9 bn
 Property, plant and equipment, intangible assets, lease fees, etc.
Major items:
 Chiba plant for Goku Zero production (Japanese Alcoholic
Beverages): approx. ¥0.2 billion, Nagoya plant construction-related(Food & Soft Drinks): approx. ¥1.2 billion, photovoltaic power
generation at Gunma plant (Food & Soft Drinks): approx. ¥0.3
billion, construction of Malaysian plant (Food & Soft Drinks):
approx. ¥1.4 billion, construction of Ebisu First Square (Real
Estate): approx. ¥3.0 billion, value enhancement of Yebisu Garden
Place (Real Estate): approx. ¥1.0 billion, lease fees (Food & Soft
Drinks, Other): approx. ¥2.5 billion, etc.

<Other investments>
Consolidated total: Approx. ¥4.8 billion
 Long-term prepaid expenses, investment securities, compensation
expenses, etc.
Major items:
 Long-term prepaid expenses (Japanese Alcoholic Beverages, Food
& Soft Drinks) : approx. ¥2.8 billion, investment securities, etc.:
approx. ¥0.5 billion, compensation expenses for Sapporo Ginza
Building : approx. ¥1.5 billion<Jan-Sep 2014 strategic investment total (incl.
ordinary capex, on a cash basis>
 Approx. ¥21.7 billion

Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved.

Credit Ratings<Credit rating by JCR> As of October 5, 2014: A- (stable)<Credit rating by R&I>
 As of October 5, 2014: BBB+ (stable)<Achievement of low-cost financing> In December 2013, issued ¥10 bn in seven-year straight bonds at alow cost of 0.614%
 In September 2014, issued ¥10 bn in five-year straight bonds at a low
cost of 0.308%

Direction of Long-Term Strategic Investments
 We will continue to actively carry out strategic investments for
growth.
 The scale of strategic investment from 2012 to 2016 isanticipated to be from ¥150 billion to ¥200 billion (in principle,
funded from accumulated operating cash flow).
– Including ordinary capex (approx. half of strategic
investments)– 2012 strategic investment total: Approx. ¥65.7 bn– 2013 strategic investment total： Approx. ¥ 23.5 bn– 2014 strategic investment plan： Approx. ¥33.9 bn (Plan atbeginning of year) For details：Capex ¥23.2 bn Other investment 10.7bn

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2. Overview of Third-Quarter 2014 Results

Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved.

10/20

Overview of Third-Quarter 2014 Results
 Net sales: up YoY
・ Japanese Alcoholic Beverages: sales increased, as
sales volume of beer and beer-type beverages rosefrom the beginning of the year compared with the same
period a year earlier.
・ Food & Soft Drinks: sales increased, as sales volumeof the Japanese food and soft drinks slightly decreased
over year and overseas soft drink sales rose.

 Operating income: down YoY・Though declined over year, exceeded the plan・ Japanese Alcoholic Beverages: profit increased, as
sales rose, despite spending on sales promotion
・International: profit decreased due to priceadjustments in North America and brand establishment
investment in Vietnam
・ Real Estate: revenues declined due lo lower rents
given that the properties under redevelopment are notoperating Net income: down YoY
Extraordinary income: negative factor includes
reduction in the 3.5 billion yen of gain on sales ofinvestment securities recorded in the previous year.
Extraordinary loss: negative factors include therecording of 2.3 billion yen as cost for demolition,
removal, etc. in the Sapporo Ginza Building
redevelopment project this year, and recording of
11.6 billion yen as a difference in liquor tax amountdue to voluntary filing of revised tax liquor return for
Goku Zero this year.

Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved.

YoY changes(amount, %)2013 3Q

2014 3Q

Japanese Alcoholic
Beverages

195.3

204.0

8.7

4.5%

International

36.2

37.0

0.7

2.2%

Food & Soft Drinks

95.9

97.6

1.6

1.7%

Restaurants

20.2

19.9

（0.3)

(1.7)%

Real Estate

16.8

16.2

(0.5)

(3.4)%

Other

4.8

4.4

(0.4)

(8.3)%

Consolidated net sales

369.5

379.3

9.8

2.7%

Operating income before goodwill
amortization

12.4

11.1

(1.3)

(10.8)%

Japanese Alcoholic
Beverages

5.5

5.9

0.4

8.0%

International

1.0

(0.0)

(1.1)

2.3
(1.3)

1.6
(1.6)

(0.8)
(0.3)

―
(33.5)％
―

(1.5)

(1.2)

0.2

―

Restaurants

0.2

0.0

(0.1)

(57.7)%

Real Estate

6.7

6.2

(0.5)

(7.8)%

Other

0.1

0.2

0.0

83.5%

(2.7)

(2.9)

(0.1)

―

Consolidated operating income

9.4

8.2

(1.1)

(12.2)%

Consolidated ordinary income

8.8

7.6

(1.2)

(13.5)%

Consolidated net income

5.4

(6.6)

(12.0)―(billions of yen)

North America, other
VietnamFood & Soft Drinks

General corporate

11/20

Reference 1: Supplementary Information to
Third-Quarter 2014 Results (Business Summary)

For information on the profitability of each business, please see theSupplementary Information to our Earnings Report.

Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved.

12/20

Japanese Alcoholic Beverages(billions of yen)

*Incl. liquor taxes

Results highlights
Net sales increased year over year, as total sales volumes for beer andbeer-type beverages rose 3% and sales of wine, shochu and RTD also
exceeded the previous year’s level.
Operating income rose as sales grew even after spending sales
expenses.

Key points in business plan: implementation status<Initiatives other than beer and beer-type beverages>
RTD
 Sales increased significantly by 74% thanks to continued strong sales ofcollaborative products offered for each price range led by Sapporo Otoko
Ume Sour.
 Bacardi grew strongly, exceeding the previous year’s level significantly.
• Offered canned products, with focus on Bacardi Mojito, at ¥189
• Offered bottled products, with focus on Bacardi Mojito Bottle, at¥230
 The sales Sapporo Otoko Ume Sour have been exceeding the sales plansignificantly.
• 350ml cans are offered at ¥160, and we have decided to offer
500ml cans at ¥217.
 Re-launched group collaborative product Kireto Lemon Sour offered at¥160 with a new package design .
*All prices are reference retail prices (excl. tax).

YoY change

2013 3Q

2014 3Q

Amount%Net sales*

195.3

204.0

8.7

4.5%

Operatingincome

5.5

5.9

0.4

8.0％

Wine
 Total net sales of imported and domestic wine rose 11% year overyear Imported wines: strong performance from Yellow Tail, Garcia
Carrion and Santa Rita
 Domestic wines: sales of Grande Polaire have been strong.
Sales of new product Sangria Rico also have been strong; its sales
target has been revised upward

Western spirits
 Conclusion of an operating alliance agreement with Bacardi Japan,
supplier of the world’s No.1 rum brand.
• Net sales was largely flat year over year
• Promoting continued active business development
in both the household and commercial markets.
 Introduced Martini Royale RTS*,
off to smooth start*Ready to serve. Liqueur which can be madeinto cocktail just by adding soda, etc.

Shochu Net sales increased 12% year over year Net sales of blended Imo Shochu Kokuimo and Mugi Shochu
Koimugi grew
Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved.

13/20

International(billions of yen)

Results highlights
Sales volume recovered to the previous year’s level, though they
declined on a local currency basis due to intensifying competition
in Canada and the impact of the cold wave in the U.S. in January
and February. Net sales slightly increased thanks to the impact of
weaker yen, while they fell on a local currency basis.
Operating income decreased due to spending on the sales
promotion investment in North America and Vietnam .

YoY change

2013 3Q

2014 3Q

AmountNet sales

36.2

37.0

0.7

2.2%

Operatingincome

1.0
2.3
(1.3)

(0.0)
1.6
(1.6)

(1.1)
(0.8)
(0.3)

－
(33.5)％－

North America,
othersVietnam%

Key points in business plan: implementation status

North American (excl. SLEEMAN, Sapporo USA)
Silver Springs Citrus (U.S.)Singapore

the largest U.S. maker of private-brand chilled drinks (a 51% stake) Household market sales channel expansion in collaboration withPOKKA for beer produced in Vietnam•

 2014 sales target: Approx. 150,000 cases (1 case = 355 ml×24 bottles）

The beverage business has been performing strongly in the North
American market

Asian and Oceania Market (excl. Vietnam)

 Striving to be the No. 1 Japanese beer brand.
 2014: In line with the previous fiscal year’s level

South Korea
 Strengthened Sapporo brand value and sales structure in South Korea
by entering into an alliance with Maeil Dairies Co., Ltd. (market shareleader in cheese, low-fat milk, and chilled coffee drinks) in January 2012
and acquiring a 15% stake in M’s Beverage Co., Ltd., a wholly owned
liquor sales subsidiary of Maeil
Non-equity method affiliate

Oceania 2012 sales target of 380,000 cases (1 case = 350 ml×24 bottles):
420,000 cases sold and target achieved

 2012 sales target of 160,000 cases (1 case = 355 ml×24 bottles）:
160,000 cases sold and target achieved

 2015 sales target of 1.5 million cases (1 case = 350 ml×24 bottles)
 Aiming to be the No. 1 imported brand.

 2016 sales target of 500,000 cases(1 case = 355 ml×24 bottles ） 2014: Double digit growth year over year

 2014 results: Double digit growth year over year

Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved.

 Entered the Australian/New Zealand premium beer market via a licensing
agreement with Coopers Brewery Ltd. (No.3 in Australia’s beer market,
No. 2 in premium beer market with a 17.3% share) Full-scale start-up in 2012

Aim to be the No. 1 Japanese beer brand.

14/20

Food & Soft Drinks (1)YoY change(billions of yen)

Results highlights
Into the second year of the integration, net sales exceeded theprevious year's level, as the overseas soft drinks businessincreased significantly while those of the domestic food andsoft drinks business declined slightly.
Operating loss narrowed, as efficiency improved after the
integration and costs were controlled.

Key points in business plan: implementation status2013 3Q

2014 3Q

AmountNet sales

95.9

97.6

1.6

1.7%

Operatingincome

(1.5)

(1.2)

0.2

－

0.5

0.6

0.0

%

Before GW
amortization%■ Food and Soft Drinks (Domestic): POKKA SAPPORO Food & Beverages Ltd.
Businesses other than beverages (domestic), lemon and food/soupOverseasbrandsCommercial
marketVending machine
channel: 100,000
machine network

Further strengtheningof marketing tocorporate customers■ Restaurants (Domestic): POKKA CREATE Co., Ltd.
 Further improve FC support system
 Expand and enhance high-quality outlets
 Nurture human resources for FC business, enhance
education and training system
Outlets: 182 (as of September 30, 2014)(Directly operated: 93 outlets; FC: 89 outlets)

Vittel, Contrex

Otoko Ume Syrup

Launched in

Sequentially increasing
the number ofrestaurants using the
product

January 2014

Hokkaido 1, Kanto 104, Tokai 38
Kansai 29, Kyushu 7, Shikoku 3■ Restaurants (overseas):
POKKA CORPORATION (Hong Kong) Outlet: 32 in total (as of September 30, 2014)
・Hong Kong 31, Macau 1

Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved.

15/20

Restaurants
Results highlights(billions of yen)

Net sales declined, although comparable-store sales showed signsof recovery at 100.1% in the nine months through September. This ismainly attributable to the fact that key restaurants in Ginza andShimbashi suspended operations for long periods as the buildings
housing them are being renovated.
Operating income slightly decreased reflecting the sales decline.

YoY change
2013 3Q

2014 3Q

Amount%

Key points in business plan: implementation status

Net sales

20.2

19.9

(0.3)

(1.7)%

Restaurant expansion

Operatingincome

0.2

0.0

(0.1)

(57.7)%

 Locations newly opened Jan-Sep 2014: 15 outlets (Japan)
 Synergy with Japanese Alcoholic Beverages: Opening of
YEBISU BAR outlets• New outlets opened in Nishi-shinjuku in Jan, in Ueno in Apr:
Increased to 14 outlets as of June 30
 Opening of a new format restaurant• Jul: Opened Shabushabu & wine Jukuseiniku Roku, a restaurant
offering shabushabu , in Roppongi Locations closed Jan-Sep 2014: 17 (Japan)
 Locations operating as of September 30, 2014: 188 in Japan

 Restaurant business in Singapore•Transfer of the restaurant business in Singapore from POKKA Corporation(Singapore) Pte. Ltd. to Sapporo Lion Limited in 2013

Singapore Ginza Lion Beer Hall
the Second outlet•Opened the Second Ginza Lion in Singapore in October 2014
 Locations operating as of Sep 30, 2014 in
Singapore: 13 outlets•Spreading the beer hall culture around the world – start of overseas
operations

・Ginza Lion (beer hall): 1 outlet•Aim to expand the number of restaurants in Southeast Asia including
Singapore and started selecting candidate locations for opening restaurants

・Domani (Italian): 1 outlet

Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved.

Shabushabu & wine
Jukuseiniku Roku
Roppongi outlet

・Tonkichi (pork cutlet): 4 outlets
・ Rive Gauche (patisserie): 7 outlets

16/20

Real Estate(billions of yen)

Results highlights

YoY change

Both sales and profits declined year over year due to a decline in rents resulting fromreconstruction of Sapporo Ginza Building*The property portfolio largely comprises the following properties inTokyo (5 central wards).
Occupancy rates are averages for Jan–Sep 2014 (contract basis).
Major rental properties inTokyo’s 23 wards

Site area (m2)

Floor area (m2)Occupancy
rate (%)

Yebisu Garden Place *1

56,943

298,007

87%

Yebisu First Square*

2,596

15,496*0%

Yebisu Square

1,561

9,126

100%

Shibuya Sakuragaoka
Square

1,200

9,268

100%

Sapporo Ginza Building*

644

7,028

*19%

1,117

11,411100%

Strata Ginza *2

No. of floors
40 floors above
ground, 5 below
12 floors above
ground, 1 below
7 floors above
ground, 1 below
10 floors above
ground, 1 below
11 floors above
ground, 2 below
13 floors above
ground, 1 below

2013 3Q

2014 3Q

Amount%Net sales

16.8

16.2

(0.5)

(3.4)%

Operatingincome

6.7

6.2

(0.5)

(7.8)%

Unrealized gain on real estate for lease was ¥127.7 billion as ofDec. 31, 2013.
Balance sheet value at December 31, 2013 : approx. ¥210.0 billion
Fair value at December 31, 2013 : approx. 337.7 billion yen

Site areas are taken from the land registry. Floor areas are as per building certification.”*”s are redevelopment projects. Occupancy rate are before redevelopment.
*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
Jan-Sep 2013
Real estate leasing
Tokyo’s 23
wards

Jan-Sep 2014

Change

5.9

5.5

(0.4)

Other areas
Real estate leasing
total

0.9

0.9

(0.0)

6.8

6.4

(0.4)

Real estate total

－
(0.1)
6.7

－
(0.2)
6.2

－
(0.1)
(0.5)

Other operations*
Total

EBITDA(billions of yen)*”Other operations” includes back-office operations.

Real estate leasing
Tokyo’s 23
wards
Other areas
Real estate leasing
total
Real estate total
Other operations*
Total

operating income + depreciation and amortization(billions of yen)

Jan-Sep 2013

Jan-Sep 2014

8.5

7.8

(0.6)

1.5

1.5

(0.0)

10.1

9.4

(0.6)

－
(0.0)
10.1

－
(0.0)
9.4

－
(0.0)
(0.6)

*”Other operations” includes back-office operations.

Change17/20

Reference 2: Sapporo Group’s Medium-Term
Management Plan 2014-2016*2014 targets have been revised among the figures announced on February
12, 2014.
(Revision of 2014 targets: only net income and figures that are affected by
the change to net income)Copyright, 2013 SAPPORO HOLDINGS LTD. All rights reserved.

18/20

2014-2016 Targets Based on Current Businesses
With revised 2014 targets
2006 results

Consolidated
net sales*incl. liquor tax

Medium-Term Management Plan

2013 results

2014 targets(revised)2015 targets

2016 targets

2016 NewManagement
Framework¥435.0 bn¥509.8 bn¥537.7 bn¥563.0 bn¥595.0 bn¥600.0 bn(excl. liquor tax)
Consolidated
operating income(before goodwill
amortization)
Consolidated
ordinary income
Consolidated
net income
Consolidated
operating margin*excl. liquor tax(before goodwill
amortization)¥294.0 bn¥395.3 bn¥430.1 bn¥454.3 bn¥484.4 bn¥450.0 bn¥8.6 bn¥15.3 bn

¥15.0 bn

¥19.5 bn

¥27.5 bn

¥8.6 bn¥19.3 bn

¥19.0 bn

¥23.4 bn

¥31.2 bn

¥5.8 bn¥15.1 bn

¥13.6 bn

¥17.8 bn

¥25.7 bn-

¥2.3 bn¥9.4 bn(¥2.0 bn)

¥8.6 bn¥13.4 bn

-

2.9%

3.9%

3.5%

4.2%

5.2%

2.9%

4.9%

4.4%

5.2%

6.4%

D/E ratio

2.1 times

1.6 times

1.7 times

1.5 times

1.3 times

ROE(before goodwill
amortization)

2.1%

6.7%

-

5.5%

8.1%

2.1%

9.5%

1.3%

8.0%

10.4%

¥40.0 bn

9.0%

around 1:1
8% or higher*Assumed exchange rates: 2014-2016: US$ = ¥105.00, CAN$ = ¥101.00*We aim to achieve the goals of the 2016 New Management Framework through further cost reduction, creation of group synergies and M&A s in addition toachievement of targets based on the performance of current businesses under the Medium-Term management Plan 2014-2016.
Copyright, 2014 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, 2014 SAPPORO HOLDINGS LTD. All rights reserved.

20/20