Q&A from Financial Statements Briefing for Closing Accounts of Year Ended December 31, 2018

<Date and Time> February 14, 10:00-11:30<Speakers> President and Representative Director Masaki Oga, Director of Corporate Finance andBusiness Management Department Shinichi Soya, and President of Sapporo BreweriesLtd. Hideya Takashima■General management
Q. Sapporo Group has said that it will modify its business segments under its 2019 management
objective of structural reform. However, could you please detail what exactly will change?
A. (Oga) Under our previous system of five business segments, Sapporo International supervised
both sides of our international business: international alcoholic beverages and international foodand soft drinks. However, we have decided to rearrange the focal points of our businesses bychanging the current segments. We intend to use structural reforms to clarify matters concerning
responsibilities, authority, and task assignments.
Q. Regarding Sapporo Group's thoughts on future M&A possibilities, in what areas do you
hypothesize M&A transactions?
A. (Oga) Our M&A priorities are, in terms of business sectors, in the alcoholic beverages business
and, in terms of region, in the US. We are proud that we have achieved continuous growth in Canada
after our 2006 acquisition of Sleeman Breweries. This experience has made us aware that anessential factor in our success is our unified operation of raw materials sourcing, production,logistics, sales, and branding. There are exciting expansion possibilities in the Japanese foodbusiness, but we intend to move forward with sectors that have synergy with our existing businesses.
Regarding M&A possibilities, in light of our reflection on Anchor Brewing's current losses, we needto reassess our PMI targets, how we handle governance and the roles of directors, and other matters.
We also need to build a management structure through which we can rapidly address problems once
we have discovered them.
■By business segment
Q. Does your 2019 Japanese alcoholic beverages business plan account for setting aside profits
during H1 to prepare for the October consumption tax hike?
A. (Soya) Because we manage performance by fiscal year, I would like to refrain from discussing
H1 targets for the alcoholic beverages business. In H1 2018, operating profits were down by ¥2.3billion in the Japanese alcoholic beverages business, with a particularly noteworthy loss of ¥3.1billion in Q1. The cause of this loss was that we could not recoup our upfront investments inpromotional expenses for our Mugi to Hop update and our second-year sales of Yebisu
Hanamiyabi. We continued to recover throughout the year, with operating profit of ¥1.8 billion inQ3 and ¥6.7 billion at year-end.
On a year-over-year basis, we expect our 2019 Japanese alcoholic beverages business toapproach the BEP in H1 and to experience a decline in profits in H2. Our year-end target is anincrease in profits of approximately ¥600 million.

[Note: In FY2019, we have changed our business segments, and the profit growth target for theentire alcoholic beverages business (including North American alcoholic beverages andrestaurants and Asian alcoholic beverages) is ¥5.8 billion.](Takashima) It is crucial that we set aside profits in H1 2019. Currently, Yebisu beer is performing
well, and on February 26, our Yebisu brand will launch a new product, Yebisu Premium Ale. Our
pre-order numbers are steady, and we expect the new product to contribute to H1 profits.

Q. What kind of changes in consumption trends for alcoholic beverages do you expect after theconsumption tax hike?
A. (Takashima) After the consumption tax hike, I believe the shift to preferences for low prices
will continue. However, in October 2020, the revised liquor taxes will lower the tax on beer andraise the tax on happoshu, which could be a boon for beer.

Q. Sales of Sapporo Chuhai 99.99 (Four-Nines) in the RTD market have been robust. To what doyou attribute this result?
A. (Takashima) This product has received praise for tasting like something the consumer could get
at a real bar, and its strength as an RTD product is that consumers can savor the alcohol. The
refined design is also receiving acclaim.

Q. What direction could you take to experience high growth in Japanese soft drinks?
A. (Soya) The most significant struggle in the Japanese soft drinks business is the vending
machine business. The crucial question is how do we leverage our assets. In the traditionalvending machine business, we needed to provide a full lineup of products. However, we areaiming for growth in the sectors of lemon soft drinks—one of our strengths—distinctive tea-based
soft drinks, and instant soups. We are formulating a strategy to refine our product range so that it
predominantly focuses on these growth sectors, which should serve as the turning point for our
profitability in this segment. We want to accelerate the pace at which we achieve this goal. We arelooking at a timeline that puts 2020 as a critical juncture. We also have another plan to see growthin our soy yogurt products. In March, we will build a new production line for soy yogurt that
includes equipment for extracting raw soy milk, and we intend to create new demand and actively
expand this business.
End.