Sapporo Group Business Results Presentation for 2015

February 2016

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

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

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Contents
1. Overview of 2015 and Policy for 2016

2. Review of New Management Framework and Toward Next
Management Framework

3. 2015 Results Overview and 2016 Results Outlook
Reference material: Appendix “Supplementary Information to the
Earnings Report”

Appendix: Collection of Data by Business
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1. Overview of 2015 and Policy for 2016

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2015 Group Overview
Consolidated earnings: operating income declines ¥0.7 billion y-o-y(billions of yen)

2014

2015

changeNet sales
OperatingincomeOrdinary
income

518.7

533.7

15.0

14.7

13.9

(0.7)

14.5

13.2

(1.3)

Net income

0.3

6.1

5.7

Operating income’s main factor was a ¥1.5 billion decline
in the Japanese Alcoholic Beverages Business.
All businesses posted operating income for two
consecutive years, strengthening the portfolio.
While we had filing of revised tax liquor return for Goku
Zero in 2014, this year it recovered and ROE came to 6.5%
(before goodwill amortization).

Concentrating resources on competitive advantages
The two main brands of Black Label and Yebisu led beer sales that were 101% y-o-y.
 The product lineup of Kireto Lemon expanded and sales of lemon-based drinks came to118% of the previous year.
We reviewed property portfolio and focused on Yebisu Garden Place and GINZA PLACE.

Strategic move for overcoming challenges
 Promoted diversification of products we offer in the Japanese Alcoholic Beverages
Business, and enhanced the lineup of fine wine whose market is expected to grow.
 The Vietnam beer business entered the second stage. It was relaunched in November
and got off to a smooth start.
Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

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2016 Group Financial Targets
Management Plan

2015results

2016targets

Consolidated
net sales¥533.7 bn¥565.4 bn

Consolidated
operating income¥18.1 bn¥25.0 bn

Consolidated
operating income¥13.9 bn

¥21.1 bn

Consolidated
ordinary income¥13.2 bn

¥20.2 bn

Consolidated
net income¥6.1 bn¥10.5 bn

ＲＯＥ

6.5 ％

8.9 ％

ＲＯＥ

3.9 ％

6.5 ％

※incl. liquor tax（before goodwill amortization）（before goodwill amortization）*We are currently formulating a medium- to long-term plan that starts
in 2017. We plan to announce it in fall this year or later.
Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

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Overview of 2015 and Policy for 2016:
by Business segment

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Overview of 2015 Japanese Alcoholic Beverages
Japanese Beer Business%

Sales volume of beer and beer-type beverages
down 5% y-o-y (total demand down 1%)

Y-o-y change in beer sales volume<Beer> Up 1% y-o-y (total demand unchanged y-o-y) Black Label‘s store coverage rate increases; canned products led the brand’s
first y-o-y sales increase in 21 years
Total
demandSapporo Yebisu recovers in the gift market led by demand for year-end
gifts; down 1% y-o-y Beer breakdown (volume) 2014: 55%→2015: 59%%

Y-o-y change in happoshu + new genre sales volume<Happoshu + new genre> down 12% y-o-y (total demand
down 1%)
 Increase in new products from competitors and competition intensifies.
Unable to recover from the late start in 1Q
Total
demandSapporo Goku Zero sales volume 3.91 million cases (2014: happoshu ＋ new genre
5.77 million cases) Mugi to Hop The gold down 8% due to failed relaunch measures

Promotion of diversification of product offering

Premium Japanese wine
Grande Polaire series

Penfolds

Matua

Taittinger

Presenting Japanese wine*2 and global brands in the growing fine wine*1 market
 Signed sales agreements of seven additional brands including Penfolds with TWE
 Signed sales agreement with world-class champagne manufacturer Taittinger*1 Medium to premium wines costing 1,500 yen or more
*2 Wine made with grapes grown and harvested in Japan alone
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2016 Key Points in Business Plan
Japanese Alcoholic Beverages“Seek No.1 by accumulating one-of-a-kind products”
Strengthen cultivation of brand in each field■Beer and beer-type beverages ■ Wine
➤ The first year of strengthening beer: improve
brand value of core brands Black Label and Yebisu➤Expand the users of new genre and happoshu
through development and nurturing of products thatmeet customers’ need.
Mugi to Hop The gold Relaunched and has a good
start
➤Create new value for beer as national craft
Enhance product lineup of Craft Label brandCopyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

➤Strengthen fine wine: expand profitability withJapanese wine Grande Polaire, imported wine
Penfolds and champagne Taittinger■ Spirits➤New proposals from the world’s No. 1 rum
Bacardi➤Expand collaborative products such as Otoko
Ume Sour in RTD field

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Overview of 2015 International
North American beer business performed well; Vietnamese beer businessto enter the second stage following relaunchNorth American beer business

Vietnamese beer business Focus on premium market; both SLEEMAN and
Sapporo USA sales expanded
North American beer sales volume for Jan-Dec (y-o-y)Total SLEEMAN
demand in total 102%
Canada100%

Premium

Value

Total
demand in
U.S.

SapporoUSA

Domestic sales volume in Vietnam
for Jan-Dec

Y-o-y change in domestic beersales volume in Vietnam

前期⽐106％106%y-o-yThe2013年＝100
value in 2013is setas 100とした指数

Competition in beer market is intensifying partly due to competitors
entering the premium market
Review of the strategy
Following the relaunch in November, it is off to a strong start

U.S. soft drinks businessCountry Pure Foods newly consolidated fromFebruaryPursuing synergies with Silver Springs Citrus
Though orange juice prices are hovering high, we will
review transactions and revise prices to rein it
Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

Key points of relaunch: appeal novelty
and further reflect Vietnameseʼ taste
Flavor: Retain Sapporoʼs original flavor,
pursue ease of drinking
Package: Unify the brand color to silver,
adopt the global designPrice: Pricing range that takes
competitiveness into account9/57

2016 Key Points in Business Plan
International

To become a company with strong presence in thepremium markets in North America and Southeast Asia
■North America■Southeast Asia
Beer: SLEEMAN, Sapporo USA

Sapporo Vietnam➤ Strengthen the premium brands and sustain
the growth of SLEEMAN brand➤ Focus on and strengthen the Asian-American
market and strengthen SAPPORO brand➤ Maximize the impact of Sapporo Premium Beerrelaunch, bolster brand strength and expand sales
areaSoft drinks: Silver Springs Citrus
Country Pure Foods⇒pursue synergies➤Expand exports to neighboring ASEAN countries➤ Expand sales by enhancing product lineupand sales channels➤ Enhance profitability through optimization of
production structure and low-cost operation

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

➤Enhance profitability by reducing production cost

■Other➤Early realization of group synergies overseas
by opening the European representative office

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Overview of 2015 Food & Soft Drinks
 Domestic soft drinks sales volume were up 2% y-o-y (total demand was up 1%);
both domestic food and overseas soft drinks businesses were up y-o-y
Lemon-based drinks, our strength, and soup led theDomestic Food and Soft Drinks
business; net sales were up 5% y-o-yDomestic food and soft drinks cumulative sales volume
for Jan-Dec (y-o-y)Total demand

Domestic softdrinks

POKKA SAPPORO

Lemon-based
products(flavorings)

Instant soup (incl.
soups in a cup)

<Domestic soft drinks> Sales volume of 45.35 million cases (up 2% y-o-y) Lemon-based drinks: Introduced ENERGIE and INNERBEAUTE from Kireto Lemon brand, bottled products arealso strong: up 18% y-o-y<Domestic foods>
 Lemon-based food products
Sales have been strong even after we raised price due torising costs driven by high ingredients costs: up 4% y-o-y Instant soup: Relaunched and differentiated Jikkuri
Kotokoto box series: up 10% y-o-yTotal demand data: Source – Total for SM CVS formats by Intage SRI(nationwide retailer panel research)
Jan–Dec 2015 y-o-y comparison of cumulative sales for the lemon-based products market (Sapporo’s definition) and instant soup market

Overseas Soft Drinks
Overseas soft drinks cumulative sales
for Jan-Dec (SG$ million)

Strong overseas net sales up 3% year on year
(local currency base)Enhancing production structure for sales expansion<Singaporean non-chilled juice market>
2015
Achieved top market share *Singapore

Production start

It is growing into the revenue pillar
following tea drinks

Malaysia

1993

Malaysia, new※Nielsen Singapore MarketTrack
December 2015(Copyright c 2015,
The Nielsen Company )Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

Indonesia
MyanmarProfileHalal certified

Own plant

○
○

2014

Joint venture with alocal company
Own plant

Summer 2016
plannedSummer 2016
plannedJoint venture with alocal company
Licensed production
by a local company

1977

○

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2016 Key Points in Business Plan
Food & Soft Drinks

Move on to the next stage through enhancement of core
brand strengths with focus on lemon and soup andthrough earnings structure reform■Domestic soft drinks■ Overseas soft drinks➤ Planning introduction of new products offering➤ Singapore: Maintain the top share in tea drinks
new values from Kireto Lemon brandand non-chilled fruit juice drinks markets; nurture
the next pillar of the business➤ Enhance earnings capability by ensuring lowcost operation➤Expand sales by deploying an on-site
production model in Indonesia, Myanmar, etc.
Develop the foundation for growth■ Restaurants in Japan■ Domestic foods➤ Disseminate lemon’s health values by
expanding lemon-based flavorings users➤Clarify the target and introduce a new soupproduct series➤ Café de Crié (Coffee shop chain):
Boost brand values and accelerate growth basedon outlet-based detailed marketing*New entry ⇒Soy beans and chilled business➤Strengthen marketing activities forsoymilk yogurt and soymilk
drinks[Right] Rendering of
the Indonesian plant
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Overview of 2015 Restaurants
 In the restaurants business in Japan, Lion maintained net sales at alloutlets, while reducing the number of unprofitable restaurants
Overseas restaurants
Restaurants business in Japanbusiness

Billionyen

Trends of net sales and number of
Sapporo Lion outlets

30
25

24.1

25.6

25.8

25.1

Outlets

24.8

20
15
5
0
2011-end

2012-end 2013-end 2014-end 2015-end
Net sales
Number of outlets

Opened in April
Garden Terrace Lion
Ibaraki Campus, Ritsumeikan University(Ibaraki-shi, Osaka)

Sapporo Lion comparable-store sales wereup 4% y-o-y Jan-Dec: Opened 5 new at strictly selected
the locations
Changed format and renovation of 5 outlets– as part of structural reform Harsh environment given the rising raw
ingredients and personnel costs. Closed
unprofitable outlets in a bid to increase
profitability.
Opened in Ginza in December
Grande Polaire Winebar TokyoA concept shop of Japanese premium wine Grande Polaire
Dishes featuring food products from the four prefecturesthat grow grapes**Hokkaido, Nagano,
Yamanashi, andOkayama

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

GINZA LION BEER HALL
conveying Sapporo brand’s taste
with 2 outlets in Singapore
 Started up a new brand withpartial renovation of an outlet inSuntecTonkichiGinza
ShokudoThe second GINZA LION BEER
HALL outlet, in Suntec

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2016 Key Points in Business Plan
Restaurants

Aspire to be the world’s No. 1 Beer Hall chain by“offering Japan’s best draft beer” and “delivering 100%
satisfaction to customers”■ Japan➤Open new outlets of Ginza Lion and Yebisu Bar
starting with the reopening of the large-scale
flagship outlet that has been closed for businessand expand the area of operation➤Develop new formats for future multi-outlet
operation➤Further strengthen initiatives of Club LION Card
(reward card)■ Overseas➤Consider expanding the regions of operationof the overseas restaurant business centered on
the GINZA LION BEER HALL format.

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Overview of 2015 Real EstateYebisu Garden Place improved office occupancy rate; Ginza 5-chome redevelopment
plan is also progressing in line with the plan
<Yebisu Garden Place>

Yebisu Garden Place

Glass Square Leasing of the space occupied by major tenants has been
completed, and we have been working on increasing rent
levels of existing tenants Value up promotion
 Yebisu Garden Cinema to open in March under a newconcept Refurbished and reopened Glass Square dining area in thefirst basement in June
 Also plan to refurbish the 38th and 39th dining floors.

Ebisu First Square
Completed in September 2014,<Ginza 5-chome redevelopment plan>

Rendering of GINZA PLACE

it has been fully occupied The name of the facility was decided as GINZA PLACE
 Construction work and leasing have been progressing strongly
towards the inauguration in summer 2016.
 To become a commercial facility which will be the landmark
and information dissemination base at the Ginza 4-chomecrossing
 11 floors above ground, 2 below
Total floor space 4,232㎡⇒7,382㎡

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2016 Key Points in Business Plan
Real Estate

Contribute to enhancement of the group brandby enhancing the value of our properties■Sustainable growth through urban renewal➤ To work on retaining the high occupancy rates and improving
rent levels at all properties➤ Yebisu Garden Place

MAP

Enhance functions of office, commercial and dining facilities andfurther promote to increase value for boosting the brand strength ofthe entire city

Ginza 4chomecrossing➤ GINZA PLACE
To contribute revenues early on towards theinauguration in summer 2016
➤ Drive forward and strategically promote review
and reshuffling of business and property
portfolio to establish a stable earnings
base for the Group.
Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

GINZA PLACE

Floor
11
8, 9,107
4, 5, 63
1, 2
B1, B2

Restaurants
Shops, services
Restaurants, cafés
Showrooms , shops, services
Event caféShow rooms
Beer hall, restaurants

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2016 R&D strategies

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2016 R&D Strategies
Further evolve the group’s R&D structure and promotecreation of new food values that will be a step to the future
Product developmentthat gives shape tothe value of materials

Food productprocessing research
aimed at expanding
application of foodGroup-wide R&D structure

Sapporo Innovation Labs
Creation of newvaluesScientifically analyze
senses and needs
Knowcustomers

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

Search for“taste”

Create“taste”

Guarantee“taste”

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2015⇒2016 Strengthen Corporate Governance

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Strengthen Corporate Governance
Sapporo Holdings’ Officer System
1997 Introduction of independent outside directors
2009 Change to the system of 3 independent outside directors*The 2015 officer system: directors (6 internal directors, 3 outside directors)
auditors (2 internal auditors, 2 outside auditors)

Driving forward an appropriate governance system in which they are
actively voicing their opinions from an independent position

Internal control over overseas subsidiaries
Familiarize the SAPPORO Group Code of Corporate Conduct at overseas
subsidiaries to reinforce an operational and management structure that conforms
to the respective country’s laws and regulations

Response to Revision to Companies Act, Corporate Governance (CG) CodeMay 1, 2015 - Revised Companies Act came into effectJune 1, 2015 - Application of Corporate Governance Code began
December 2015 - Established Basic Policy on Corporate GovernanceClarifying the Company’s corporate governance concept and operating
policyCopyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

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2.Review of New Management Framework and
Toward Next Management Framework

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21/57

Review of New Management Framework

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Changes in FY results and ROE
2011Great
East Japan
Earthquake

Net sales(¥ billion)

2014
Additional liquor tax
paid:Gokuzero

8.9％
6.5％

Income(¥ billion)（Forecast）
Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

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Trend of Overseas net sales(excluding liquor tax)
2006 Canada
Made SLEEMAN
into a subsidiary

2011
Business
integration2011 Vietnam

Beer plantwith POKKA completed

Overseas net sales to total（excluding liquor tax）

2012 U.S.

Made Silver
Springs Citrus
into a subsidiary2015 U.S.
Made Country
Pure Foods into a
subsidiary

2015:
２２．６％

2005:
１．５％
（¥ billion）

Net sales(excluding liquor tax)

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

2015
Overseas
net sales¥ 94.5billion24/57

Sales Breakdown by Geographic Area, Sales Breakdown by category
Sales Breakdown byGeographic Area2010 Overseas
net sales¥25.4 billion(Beer)

2015
Overseas net sales¥ 94.5billion

Other
7%

Sales Breakdown
by category

Asia
22%
North America
71%*Sales volume
base*Account period change: Silver Springs Citrus
consolidating the results for 15 months from Oct
2014 to Dec 2015
Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

North America: Canada, U.S.
Asia: Vietnam, Singapore, South Korea, Hong Kong, etc.
Other: Oceania, Europe, Middle East, etc.

25/57

Changes in EBITDA and Investment（¥ billion）

2006 Canada
Made SLEEMAN
into a subsidiaryBusiness
integration2012
Acquired 15%
stake in Yebisu

with POKKA

Garden Place

2011（Forecast）*1 Operating income + Depreciation and amortization + Goodwill amortization*2 (Cash flow from investments) – Proceeds from sale of investment securities, property, plant and equipment, etc.
Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

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Toward Next Management Framework

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Toward Next Management Framework
What Sapporo Group aspires to be in 2026 (150th anniversary)
The SAPPORO Group will be a group of companies that is essential forcustomers to enjoy rich lives throughout the world by continuing the creationand supply new products and services that become No. 1 in the market.

Guidelines for corporate behavior
1. We seek continued innovation and provide customers with valuable No. 1
products and services to contribute to their attainment of a richer life
2. We endeavor to create products and services that will promote
communication among customers
3. We strive to ensure efficient managementby addressing changes in the business environment
Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

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Policy Regarding
Return of Profits to Shareholders

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Policy Regarding Return of Profits to Shareholders

Providing appropriate returns to shareholders is a key
management policy of the Company. Our basic policy is
to pay stable dividends, taking our operating
performance and financial condition into account.
Concerning our internal reserves, we will appropriate
the reserves for making strategic investments in growthfields and for strengthening our financial foundation,
based on the new management plan, so as to maximize
our corporate value.
We aim to boost return of profits in line with ourachievement of the targets set forth by the management
plan.
Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

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3.2015 Results Overview and2016 Results Outlook* For information on the profitability of each business, please see theSupplementary Information to our Earnings Report.

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

31/57

Overview of 2015 Results

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32/57

2015 Results Highlight(billions of yen)

Consolidated financial
results

2014

2015

Net sales(incl. liquor tax)

518.7

533.7

15.0

2.9%

Net sales（excl. liquor tax)

401.8

418.3

16.5

4.1%

Overseas net sales to total(excl. liquor tax)

19.2 ％

22.6 ％

3.4

ーOperating income

14.7

13.9

(0.7)

(5.3)%

Operating income before
goodwill amortization

18.4

18.1

(0.3)

(2.1)%

Ordinary income

14.5

13.2

(1.3)

(9.3)%Net income

0.3

6.1

5.7

ー

EBITDA

42.9

42.3

(0.6)

(1.5)%

Balance of Net debt

237.7

224.3

(13.4)(5.7)%

1.5 times

1.4 times

(0.1)

ー

ＲＯＥ（before goodwill
amortization

2.7 ％

6.5 ％

3.9

ー

ＲＯＥ

0.2 ％

3.9 ％

3.7

ー

Ｄ／Ｅratio※Exchange rate
2014: US$=¥105.79 CAN$=¥95.74
Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

2015:US$=¥121.11

YoY changes(amount, %)CAN$=¥94.82

33/57

Overview of 2015(1)Special factors＜Special factors in the business results 2015(no change in items from 3Q)>
Net sales impact

Operatingincomeimpact

minor

minor

Account period change: Silver Springs Citrus
Initially, 9 months from Oct 2014 to Jun 2015 for 3Q→ consolidating the results for 12 months from Oct 2014 to Dec 2015

+approx.2.8bn(foreign exchange+0.4bn)-approx.0.3bn

New consolidation: Country Pure Foods
Consolidation started from Feb 24, 2015, when the stake was acquired+approx.15.2bn

Segment
Japanese Alcoholic
Beverages
International
International
Food & Soft Drinks

Factors
Change in reportable segment: New Sanko Inc.
Changed from Japanese Alcoholic Beverages to Restaurants(Changed retrospectively from 2014.)

Sale of Overseas restaurants businessIn Dec. 2014, sold the restaurant business in Hong Kong

Restaurants

Change in reportable segment: New Sanko Inc.
Changed from Japanese Alcoholic Beverages to Restaurants(Changed retrospectively from 2014.)

Real Etate

In Dec. 2014, sold the sports business

Real Etate

 ＜Impact of foreignexchange rates>

In Feb. 2015, sold Shibuya Sakuragaoka Square trust beneficiary right

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

minor

minor

minor

-approx.1.0bn

In Dec. 2014, sold some lease properties

Average rateduring theperiod(Jan-Dec)-approx.5.3bn-approx.1.0bn-approx.0.6bn

Net Sales

Operating
Income

2014

2015

US＄

105.79121.11

Japanese Alcoholic
Beverages―-0.3bn

CAN＄

95.74

94.82

International

2.7bn

―

Food & Soft Drinks

0.6bn

―

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Major Sales and Sales Volume (YoY)
Alcoholic Beverage (Japan)(10,000 cases)
Fiscal 2014

Fiscal 2015

Beer (International)(10,000 cases)
Fiscal 2014YoY
SLEEMAN BREWERIES LTD.（*2）

Sapporo Draft Beer Black Label

1,615

1,618

100%

964

952

99%

2,896

2,919

101%

387

479

124%

3 New genre beer products (total)

1,956

1,583

81%

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

5,238

4,982

95%

Non-alcoholic beer taste beverage

91

93

102%

RTD（ *1)

213

218

103%

YEBISU (total)
1 Beer (total)
2 Happoshu (total)*1：RTD

Fiscal 2015

YoY

1,237

1,262

102%

488

550

113%

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

Soft Drinks (POKKA SAPPORO FOOD & BEVERAGE) (10,000 cases)
Fiscal 2014

Fiscal 2015

4,464

Soft Drinks （ *3）

YoY

4,535

102%

*3 ：Excludes sales other than Japan

1Case=250ml*24(billions of yen)
Fiscal 2014

Fiscal 2015

5.6

5.3

93%

Imported wines

8.3

8.2

100%

Wine (total)

13.9

13.5

97%

Spirits (total)

5.7

5.9

103%

Shochu (total)

14.7

14.6

100%

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

Year ended
December 31,
2014

YoY

Domestic wines(billions of yen)

Sales (including liquor tax)
Year ended
December 31,
2015

ChangeChange (%)

Beer
Happoshu
New genre

157.6
14.8
64.5

159.3
18.3
52.2

1.7
3.5
(12.2)

1.1%
23.9%(19.0)%

Total

236.9

229.9

(7.0)

(3.0)%(billions of yen)

Sales (excluding liquor tax)
Year ended
December 31,
2014

Year ended
December 31,
2015

ChangeChange (%)

Beer
Happoshu
New genre

77.0
8.2
44.7

78.0
10.2
36.2

1.0
1.9
(8.4)

1.4%
23.8%
(18.9)%

Total

129.9

124.4

(5.4)

(4.2)%

35/57

Overview of 2015(2)Net Sales by Segment（billion of yen）

2014

2015

YoY change（amount,%）

Consolidated
net sales

518.7

533.7

15.0

2.9％

Japanese
Alcoholic
Beverages

281.0

273.6

(7.3)

(2.6)％

International
Business

49.6

70.5

20.8

41.9%

Foreign exchange rates(average rate of 2015)
US$1=¥121.11
CA$1＝¥94.82
VND1=￥0.0054
Foreign exchange rates(average rate of 2015)
SG$1=¥88.14

Food &
Soft Drinks

133.4

135.6

2.2

1.7%

Restaurant

27.1

27.0

(0.1)

(0.5)%

Real Estate

21.5

20.8

(0.6)

(3.0)%

Other

5.9

6.0

0.1

1.8%

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

Notes

36/57

Overview of 2015(3)Changes in Net Sales<Factors Contributing to Change in Net Sales>

Foreignexchange(billions of yen) Increase

11

Decrease

＋15.0

6.1
ＳＳＣ
account
periodchange:3 months

2.8
FY2014
Consolidated
Net Sales

518.7

ＣＰＦ
newly
consolidation

Foreignexchange

1.7

(1.6)

ExportandNorth
America
Beer
sales
increase

North
AmericaSoftdrinkssales
decline2.7

OverseasSoftdrinksSales
increase

Japanesefood &Soft
drinks Sales
increase

0.6

(5.3)

FY2015
Consolidated
Net Sales

Sales
increase:
YGP andEbisu First
Square

1.6
Sale ofrestaurants
business inHong Kong

533.7
(2.2)

・Sale of somerentalproperties andsports facilities
operatorbusiness
・Ginza 5-chome
redevelopment
project

Beer and Wine andOther 15.2
beeralcoholic
genre
sales beverages
sales
volumevolumedeclinedecline

(6.8)
(0.5)
(7.3)

20.8

2.2

(0.6)

Japanese Alcoholic
Beverages

International

Food & Soft Drinks

Real Estate

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

37/57

Overview of 2015(4)Operating Income by Segment

2014

2015

Change

14.7

13.9

(0.7)

Japanese Alcoholic Beverages

10.1

8.6

(1.5)

Beer and related productWine and spirits
Other

7.4
2.2
0.7

5.6
2.2
0.8

(1.8)
(0.0)
0.2

0.1

0.1

(0.0)

2.3
(2.1)

2.4
(2.2)

0.1
(0.1)

0.1

0.4

0.3

(1.2)

(1.0)

0.2

Marginal profit+1.0,Fixed cost and other-0.8

1.3

1.4

0.1

Overseas Soft Drinks +0.0
Domestic coffee shop chain +0.0

Restaurant

0.3

0.5

0.2

Existing stores+0.3,Other-0.1

Real Estates

7.6

8.2

0.5

Rent+0.8,Sales/Other factors-0.2

Other

0.1

0.0

(0.1)

(3.9)

(4.0)

(0.1)

3.7

4.1

0.3

1.2
2.5

1.8
2.2

0.5
(0.2)

18.4

18.1

(0.3)

（billion of yen）
Consolidated Operating income

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

General corporate and intercompany
eliminations

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

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

Notes

Marginal profit-3.0,Fixed cost and other+1.2

Marginal profit+0.5,Fixed cost and other-0.4
Marginal profit-0.1,Fixed cost and other+0.0

Posted in “North America” & ”Vietnam”
Posted in “Japanese Food & Soft Drinks”

38/57

Overview of 2015(5) Changes in Operating Income(billions of yen) <Factors Contributing to Change in Operating Income>
FY2014
Consolidated
Operating income

Sales
increase:
YGP andEbisu First
SquareProduction
costs
increase

Decrease
Increase
減少
増加

14.7
2.2

(1.2)

North
America
Beer and
Personnel Increase inJapanese
beerexpenses Volume
food
genre
and
&Soft
Non
sales
Depreciation 0.5(0.4) Vietnam drinks
volume alcoholic
Costs
Sales
(0.1) volume
decline/ beer sales
reduction
CPF:
Product increase/increaseAmount ofMix Production
goodwill(3.4) costs
2.3
increase
reduction
Sales
promotion
costs
increase

FY2015
Consolidated
Operating
Income

1.8

13.9
（0.7）

(1.0)

Fixed
costs
increase

(0.2)

(0.6)

0.2

Sales Comparablepromotion store sales
costs
increaseincrease

・Sale ofsome
rentalproperties
・Ginza 5chome
redevelop
ment
project

0.4

(1.0)

(1.5)

(0.0)

0.3

Japanese Alcoholic Beverages

International

Food & Soft Drinks

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

0.2
Restaurant

0.5
Real Estate

39/57

Overview of 2015(6) Changes in Extra Ordinary Gains and Losses /Over view of Cash Flows
Consolidated Statements of Income（billion of yen）

2014

2015

ChangeNet sales
Operating income

518.7
14.7

533.7
13.9

15.0
(0.7)

Ordinary income

14.5

13.2

(1.3)

3.5

7.5

3.9

1.2

0.4

(0.8)

(2.3)

(1.6)

0.7

Loss on impairment of property,
plant and equipment

(0.9)

(6.0)

(5.1)

Loss on devaluation of investment
securities

(0.0)

(1.8)

(1.7)

Additional liquor tax paid and other(11.6)－

11.6

Other extraordinary losses

(1.8)

(0.1)

1.6

2.6

11.6

8.9

(2.3)

(5.5)

(3.2)

0.3

6.1

5.7

Gain on sales of property, plantand equipment
Other extraordinary gains
Loss on sales/disposal of property,
plant and equipment

Income before income taxes andminority interests
Corporate tax, etc.
Net income

Primary Reasons

Financial income(expense)+0.4,Equity in income (losses)
ofaffiliates-0.2,Foreign exchange losses-1.1
2015：Sale of Shibuya Sakuragaoka Square7.3

2015：Goodwill of Vietnam business-2.0,
welfare facilities/Idle real estate-3.0(billions of yen)

Condensed Consolidated Statements of Cash Flows
Year ended
December 31,
2014

Year ended
December 31,
2015

ChangeChange (%)

Cash flows from operating activities

22.2

35.2

12.9

Cash flows from investing activities(17.2)

(9.7)

7.4

－

Free
Cash flows
Copyright,
2016 SAPPORO HOLDINGS LTD. All rights reserved.5.0

25.5

20.4

404.7%Cash flows from financial activities(24.8)(17.4)

－

(7.3)

58.3%

40/57

Overview of 2015(7)Consolidated Balance Sheets(billions of yen)

Condensed Consolidated Balance Sheets
December 31, 2014

December 31, 2015

ChangePrimary Reasons

156.3
9.7
89.2
36.5
20.8
469.0
356.6
29.9
82.4
625.4

156.3
10.4
92.3
38.6
14.9
464.0
347.7
30.2
86.0
620.3

(0.0)
0.6
3.0
2.0
(5.8)
(5.0)
(8.8)
0.2 Acquired the share of Country Pure Foods, Inc.
3.5
(5.0)

211.7
35.5
73.4
9.6
93.1
253.6
174.1

233.6
36.7
92.8
8.8
95.2
222.9
141.9

21.8
1.2
19.3
(0.8)
2.0
(30.7)(32.1)

4.5

7.6

75.0
465.4

73.3
456.5

(1.6)
(8.8)

133.1

133.3

0.2 method for retirement benefit obligations and service costs -3.1

Accumulated other comprehensive income

23.1

24.5

1.3

Minority interests

3.7
160.0
625.4

5.8
163.8
620.3

2.1
3.8
(5.0)

Current assets
Cash and cash equivalents
Notes and accounts receivable - trade
Inventories
Other

Fixed assets
Fixed assets
Goodwill
Investments and other assets
Total assets
Current liabilities
Notes and accounts payable - trade
Short-term debt
Deposits received
Other

Long-term liabilities
Long-term debt
Net defined benefit liability

Other
Total liabilities

Shareholders' equity

Total net assets
Total liabilities and net assets

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

The effect of the change in calculation method for retirement benefit

3.1 obligations and service costs

Distribution of dividends -2.7, The effect of the change in calculation

41/57

Overview of 2015(8)Implementation Status of Strategic Investment

Implementation Status of Strategic Investments (including
ordinary capex, on a cash bases)① <Capital expenditure and lease fees>
Consolidated total: Approx. ¥23.4 billion
 Property, plant and equipment, intangible assets, lease fees,
etc.
Major items:
 Chiba factory bottling line/logistic center reconstruction(Japanese Alcoholic Beverages) : approx. ¥1.8 billion
Nagoya factory acquisition of adjacent land/ Production line
(Food & Soft Drinks) : approx. ¥0.8 billion
Ginza 5-chome redevelopment project construction work
(Real Estate): approx. ¥4.0 billion
Ebisu First Square construction balance (Real Estate): approx.
¥1.8 billion
Yebisu Garden Place value up (Real Estate): approx. ¥2.7
billionLease fees (Food & Soft Drinks, etc.): approx. ¥3.0 billion② <Other investments>
Consolidated total: Approx. ¥16.8 billion
 Long-term prepaid expenses, subsidiariesʼ shares,
investment securities, etc.
Major items:
 Long-term prepaid expenses (Japanese Alcoholic Beverages,
Food & Soft Drinks): approx. ¥6.8 billion
Subsidiariesʼ shares: approx. ¥8.4 billion(acquisition of CPF ¥4.8 billion, etc.)
Investment securities, etc.: approx. ¥1.4 billion①+② <Jan-Dec 2015 strategic investment total>(incl. ordinary capex, on a cash basis)
 Approx. ¥40.2 billion

Direction of Long-Term Strategic Investment

 We will continue to actively carry out strategic investments
for growth.
 The scale of strategic investment from 2012 to 2016 isanticipated to be ¥150 billion to ¥200 billion (in principle,
funded from accumulated operating cash flow).
 Changes in Jan-Sep strategic investments– Including ordinary capex (approx. a half of strategic
investments)– 2012 strategic investment total: Approx. ¥65.7 bn– 2013 strategic investment total: Approx. ¥23.5 bn– 2014 strategic investment total: Approx. ¥29.5 bn– 2015 strategic investment total: Approx. ¥40.2 bn(Full year plan: ¥35.1 billion)(annual plan breakdown: capital expenditure worth ¥20.9 bn,other investments worth ¥19.3 bn）

Financing Status In Sep, issued five-year straight bond worth 10.0 billion yen atannual interest rate of 0.33%
 Credit ratings

JCR: A- (as of January 28, 2016)
R&I: BBB+

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

42/57

2016 Results Outlook

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

43/57

2016 Results Outlook Highlight(billions of yen)

Consolidated forecast

2015

2016

YoY changes(amount, %)Net sales(incl. liquor tax)

533.7

565.4

31.6

5.9%

Net sales（excl. liquor tax)

418.3

445.2

26.8

6.4%

22.6 ％

23.5 ％

0.9

ーOperating income

13.9

21.1

7.1

51.3%

Operating income before
goodwill amortization

18.1

25.0

6.8

38.1%

Ordinary income

13.2

20.2

6.9

52.9%

Net income

6.1

10.5

4.3

71.9%

EBITDA

42.3

49.0

6.6

15.8%

Balance of Net debt

224.3

217.5

(6.8)

(3.0)%

1.4times

1.3times(0.1)

ーＲＯＥ（before goodwill
amortization

6.5 ％

8.9 ％

2.4

ー

ＲＯＥ

3.9 ％

6.5 ％

2.6

ー

Overseas net sales to total (excl.
liquor tax)

Ｄ／Ｅratio※Exchange rate
2015:US$=¥121.11

CAN$=¥94.82

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

2016: US$=¥126.00 CAN$=¥96.00

44/57

Major Sales and Sales Volume (YoY)
Alcoholic Beverage (Japan)(10,000 cases)
Fiscal 2015

Full-year
estimate forfiscal 2016

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

Fiscal 2015

YoY
SLEEMAN BREWERIES LTD.（*2）

YoY

1,262

1,310

104%

550

595

108%

1,618

1,670

103%

952

1,000

105%

2,919

3,070

105%

479

473

99%

3 New genre beer products (total)

1,583

1,597

101% Soft Drinks (POKKA SAPPORO FOOD & BEVERAGE) (10,000 cases)

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

4,982

5,140

103%

Non-alcoholic beer taste beverage

93

100

108%

RTD（ *1)

218

240

110%

Sapporo Draft Beer Black LabelYEBISU (total)
1 Beer (total)
2 Happoshu (total)*1：RTD

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

Full-year
estimate forfiscal 2016

Fiscal 2015

4,535

Soft Drinks （ *3）

YoY

4,579

101%

*3：Excludes sales other than Japan

1Case=250ml*24(billions of yen)
Fiscal 2015

Full-year
estimate forfiscal 2016

YoY

Domestic wines

5.3

5.9

112%

Imported wines

8.2

10.9

133%

Wine (total)

13.5

16.9

125%

Spirits (total)

5.9

7.9

134%

Shochu (total)

14.6

15.3

105%

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

(billions of yen)

Sales (including liquor tax)
Year ended
Year ending
December 31, 2015 December 31, 2016

Beer
Happoshu
New genre
Total

159.3
18.3
52.2
229.9

Change

165.7
18.8
52.6
237.2

Change (%)
6.3
0.5
0.3
7.2

4.0%
2.8%
0.7%
3.2%

(billions of yen)

Sales (excluding liquor tax)
Year ended
Year ending
December 31, 2015 December 31, 2016

ChangeChange (%)

Beer
Happoshu
New genre

78.0
10.2
36.2

80.7
10.4
36.4

2.6
0.2
0.2

3.4%
2.7%
0.7%

Total

124.4

127.7

3.2

2.6%

45/57

2016 Results Outlook (1) Net Sales by Segment(billions of yen)

2015

2016

YoY change（amount,%）

Consolidated net
sales

533.7

565.4

31.6

5.9％

Japanese Alcoholic
Beverages

273.6

288.0

14.3

5.2％

International
Business

70.5

77.8

7.2

10.4%

Foreign exchange rates(forecast
average rate of 2016)
US$1=¥126.00
CA$1＝¥96.00
VND1=￥0.006
CPF２months addition
Foreign exchange rates(forecast
average rate of 2016)
SG$1=¥92.00

135.6

143.7

8.0

5.9%

Restaurant

27.0

27.1

0.0

0.4%

Real Estate

20.8

22.8

1.9

9.2%

6.0

6.0

(0.0)

(0.8)%

Food & Soft Drinks

Other

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

Notes

46/57

2016 Results Outlook (2) Operating Income by Segment
2015

2016

Change

13.9

21.1

7.1

Japanese Alcoholic Beverages

8.6

11.1

2.4

Beer and related productWine and spirits
Other

5.6
2.2
0.8

7.7
2.7
0.7

2.1
0.5
(0.1)

0.1

0.9

0.7

2.4
(2.2)

3.2
(2.3)

0.8
(0.1)

0.4

1.7

1.2

(1.0)

(0.1)

0.9

Marginal profit2.4,Fixed cost and other-1.6

1.4

1.8

0.4

Overseas Soft Drinks +0.1,Domestic coffee
shop chain/Other factors+0.3

Restaurant

0.5

1.3

0.7

Existing stores+0.2,New stores+0.6

Real Estates

8.2

10.0

1.7

Rent+1.7,Sales/Other factors+0.1

Other

0.0

0.2

0.1

(4.0)

(4.1)

(0.0)

4.1

3.9

(0.2)

1.8
2.2

1.7
2.2

(0.1)
0.0

18.1

25.0

6.8

（billion of yen）
Consolidated Operating income

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

General corporate and intercompany
eliminations

Amortization of goodwill
International
Food & Soft Drinks
Operating income before goodwill
amortization
Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

Notes

Marginal profit4.1,Fixed cost and other-2.0

Marginal profit2.1,Fixed cost and other-1.3
Marginal profit0.4,Fixed cost and other-0.5

Posted in “North America” & ”Vietnam”
Posted in “Japanese Food & Soft Drinks”

47/57

2016 Results Outlook (3)Changes in Operating Income
FY2016
Target＜Factors Contributing to Change in Operating Income＞(billions of yen)
FY2015
Consolidated
Operating
Income13.9

21.1(Up 7.1)
Production
Costs
increase

Increase Decrease

Wine andSpirits sales
increase
Non alcoholicbeer and
0.5
RTD sales
Sales
increasepromotion

0.8

costs
increase<NorthAmerica
Beer>
Sales volume
increase

Food& (0.5)
Softdrinkssales
increase
(1.6)

2.9

0.7

(1.4)
1.4

<NorthAmerica Softdrinks>(2.7)<North・CPF( Jan. 1 toFeb. 23)
0.7 America Softdrinks>Sales
promotion
Personnel ・CPF( Jan. 1 toFeb. 23)
costs increase
expensesSales
volume・General andandadministrative
Depreciation increase・Management
expenses
Costs
efficiency
increase
reduction
improvement

Beer andbeer-genre
sales
volumeIncrease/
Product
Mix

3.3

2.4

0.7

Japanese Alcoholic Beverages

International

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

・Overseas
soft drinks
・Coffeeshop Café 0.7
de crie

Sales
promotion
costs and
fixed costs
increase

1.2
Food & Soft Drinks

Sales
increase:
YGP and
GINZA
PLACE
.
1.7

0.4 Comparablestore sales
and new
store sales
increase

0.7
Restaurant

1.7
Real
Estate48/57

2016 Results Outlook (4) Changes in Extra Ordinary Gains and Losses /Over view of Cash Flows
Consolidated forecast（billion of yen）

2015

2016

ChangeNet sales
Operating income

533.7
13.9

565.4
21.1

31.6
7.1

Ordinary income

13.2

20.2

6.9

Operating income7.1
Financial income(expense)-0.4
Ordinary income6.9
Gain on sales of property, plant andequipment-7.5 , Loss on impairment ofproperty, plant and equipment+6.0

Primary Reasons

Income before
income taxes andminority interests

11.6

18.2

6.5

Corporate tax, etc.

(5.5)

(7.7)

(2.1)

Net income attributeto owners of theparent

6.1

10.5

4.3

Condensed Consolidated Statements of Cash FlowsY ear ended

Y ear ending

Dec ember 31,

Dec ember 31,

2015

2016 (Forec as t )ChangeChange (% )Cash flows from operating activities

35.2

37.1

1.8

5.2%

Cash flows from investing activities(9.7)(27.6)(17.8)－

Free Cash flows

25.5

9.5

(16.0)(62.8)%

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

49/57

Reference Material ： Collection of Data by Business

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

50/57

Reference Material(1) Japanese Alcoholic Beverages～Beer Category Data～＜Beer and beer-type beverages sales volume change (Jan-Dec)＞＜Core brand sales volume Y-o-Y change (Jan-Dec)＞

1,000 cases

1,000 cases＜3 core brand sales volume change (Jan-Dec)＞＜Jan-Dec beer sales breakdown by brand>(1)Sapporo Lager Beer
(3)Shirohonoka(2)Edelpils(4)Sapporo Classic etc.

29,190thousandcases(1)
Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

(2)

(3)

(4)

51/57

Reference Material(2) Japanese Alcoholic Beverages ～Multilayers ～＜Jan〜Dec Net sales＞

Wine

Beer + Beer type beverages (incl. liquor tax)

Billions of yen

Spirits

Promoting diversification of product offerings＜Japanese Alcoholic Beverage Business
Jan-Dec sales breakdown by category>Japanese liquor

Jan-Dec net sales
273.6 billion yen

ＲＴＤ

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

52/57

Reference Material(3) International Business ～Data ～SLEEMAN Net Sales in Local Currency (Jan-Dec)(before elimination of inter-company transactions)＜Trend of overseas sales volume of SAPPORO brand products (Jan-Dec)>（1,000 cases)

Sapporo USA Net Sales in Local Currency (Jan-Dec)(before elimination of inter-company transactions)

Net sales Breakdown by Geographic Area
(Jan-Dec)

2.37
million
cases

2010

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

5.50
millioncases

North America: Canada, U.S.
Asia: Vietnam, Singapore, South Korea, etc.
Oceania, etc.: Australia, Europe, etc.

2015

53/57

Reference Material(4) Food & Soft Drinks ～ Data ～Japanese soft drinks sales
composition by sales channel(Jan–Dec)<Soft Drinks (Japan): POKKA SAPPORO Food & Beverage Ltd.>POKKA SAPPORO Food &Beverage sales composition(Jan-Dec)

Japanese soft drinks sales
volume composition by genre(Jan-Dec)＜Lemon-based
drinks＞

45.35million
cases

¥86.8
billion45.35million
cases*Vending machines (end of Dec)
Own brand machines : about
95,000 ＋ Multi-brand Machines<Soft Drinks (overseas): POKKA Corporation (Singapore) Pte. Ltd.> POKKA brand green tea-based drinks
have high market share in Singapore.

POKKA Corporation (Singapore)
Sales composition (Jan-Dec)*Tea 48% / Green tea 65%＜Restaurants (Domestic): POKKA CREATE Co., Ltd.> CAFÉ de CRIÉ has been actively pursuing opening new outlets
in new areas and proposal of new menu items. Net sales havebeen up 5% on year and strong
 Aiming to expand in new markets such as intra-hospital and book& café store.

Outlets: 189 (as of Dec 31, 2015)(Directly operated: 94 outlets; FC: 95 outlets)※Nielsen Singapore MarketTrack December 2015
(Copyright c 2015, The Nielsen Company )Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

Hokkaido 3, Kanto 103, Tokai 37
Kansai 35, Kyushu 8, Shikoku 3

54/57

Reference Material(5) Restaurants ～ Data ～＜Sapporo Lion outlets＞
170 Outlets※2＜New Sanko Outlets＞
８outlets located in Hokkaido(Sapporo, Otaru)＜Outlet expansion in Singapore＞
14 outlets※1・ Ginza Lion (beer hall): 2 outlets
・ Tonkichi (pork cutlet): 4 outlets
・ Rive Gauche (patisserie): ８ outlets「GINZA LION」
1st: the Rodyk outlet※1：Chuo, Chiyoda, Minato, Shinjuku and Shibuya ward
※2：Sendai, Kyoto, Osaka, Kobe, Fukuoka

Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved.

55/57

Reference Material(6) Real Estate ～ Data ～Information about real estate for lease

Major rental properties & occupancy rates *(*Annual averages for 2015 (contract basis)

Balance sheet value at December 31, 2015 : approx. ¥197.7 billion
Major rental properties inTokyo’s 23 wards

Site area (m2)

Floor area (m2)Occupancy rate(%)

Yebisu Garden Place *1

56,943

298,00792%

Ebisu First Square*

2,596

15,496100%

Ebisu Square

1,561

9,126

100%

Strata Ginza *2

1,117

11,411100%

No. of floors

Fair value at December 31, 2015 : approx. 357.4 billion yen

40 floors above
ground, 5 below
12 floors above
ground, 1 below
7 floors above
ground, 1 below
13 floors above
ground, 1 below

Balance sheet value at December 31, 2014 : approx. ¥207.8 billion
Fair value at December 31, 2014 : approx. 348.2 billion yen*The figure at Dec 31, 2014 includes the book value of Shibuya Sakuragaoka Square,

which the company transferred trust beneficiary rights on February 13, 2015.
The amount is 9.6 billions of yen.

Site areas are taken from the land registry. Floor areas are as per building certification.
*1: The number of floors is for the office block only. Occupancy rates are for office areas only.
*2: Figures are for entire property. Sapporo owns 922m2 of the site (sectional ownership) and 89.72% of the building (joint management)

Operating income(billions of yen)

Jan-Dec 2014
Real estate leasing
Tokyo’s 23
wards

Jan-Dec 2015

Change

6.5

7.8

1.3

Other areas
Real estate leasing
total

1.2

0.7

(0.5)

7.8

8.5

0.7

Real estate total

0.1
(0.3)
7.6

(0.3)
8.2

(0.1)
(0.0)
0.5

Other operations*

EBITDA

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

Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

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

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

ChangeJan-Dec 2014

Jan-Dec 2015

10.0

11.4

1.4

1.9

0.9

(0.9)

11.8

12.3

0.5

0.1
(0.0)
11.9

0.0
12.4

(0.1)
0.1
0.5

* “Other operations” includes back-office operations.

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

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

Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

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