Sapporo Group Business Results for 2023
Management Plan for 2024

February 14th 2024

*In this document, the name abbreviations are used:
SH: Sapporo Holdings Limited

SB: Sapporo Breweries Ltd.

PS: Pokka Sapporo Food & Beverage Ltd.
SPB：SAPPORO PREMIUM BEER

SLN: Sapporo Lion Limited.

URL https://www.sapporoholdings.jp/en/

SRE: Sapporo Real Estate Co., Ltd.

YGP：Yebisu Garden Place

PVS：Public Vending Service company
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１. Summary

・・・ P.3

２. Progress of the Medium-Term Management Plan

・・・ P.4~6

３. Medium- and Long- Term Management Policies for Increasing Group-wide Corporate Value

・・・ P.7~P.13

４. Financial results for fiscal year 2023

・・・ P.14~P.19

５. Management plan for fiscal year 2024

・・・ P.20~P.42

６. Appendix

・・・ P.43~P.57

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Summary2023 financial results: Off to a good start in the first year of the Medium-Term Management Plan⚫

Steady implementation of beer strengthening and structural reforms, increased revenue and profit, and achievement of the plan for the year⚫

With regard to capital efficiency, promotion of balance sheet reform, including the sale of assets held and cross-shareholdings⚫

Decision based on profit growth to increase dividend by 2 yen (from 45 yen to 47 yen) from the most recent dividend forecast

2024 plan: A year to set a structural reform goals and solidify the foundation⚫

Plan to increase sales and profit, while focusing on structural reforms and investing in brands and human resources for future growth⚫

Annual expected dividend is set at 52 yen, an increase of 5 yen and the second consecutive increase
Financial results for fiscal year 2023

Management plan for fiscal year 2024

2022
Result2023
ResultYoYchanges(amount)

YoYchanges
(%)

478.4

518.6

40.2

8.4%

Revenue

518.6

Core operating profit

9.3

15.6

6.3

67.9%

Core operating profit

Operating profit

10.1

11.8

1.7

17.0%

Profit attributable to owners of parent

5.4

8.7

3.3

60.1%

3.3%

5.0%

-

-

（billions of yen）

Revenue

ROE

YoYchanges(amount)

YoYchanges
(%)

523.5

4.9

0.9%

15.6

19.0

3.4

21.5%

Operating profit

11.8

17.6

5.8

48.9%

Profit attributable to owners of parent

8.7

10.0

1.3

14.6%

5.0%

5.5%

-

-

（billions of yen）

ROE

2023
Result2024
Plan

Formulation of medium- to long-term management policies⚫

Formulation of medium- to long-term management policies to enhance Group value based on discussions within the Group Strategy Review Committee
and the Board of Directors
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Progress of the Medium-Term Management Plan

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Progress of the Medium-Term Management Plan -Achieving the Plan by 2026Steady start to achieve ROE of 8% by 2026
To transform the business structure and achieve new growth, 2024 is the year to set structural reform goals and solidify the foundation

2023
Work toward future growth whilesteadily implementing structuralreforms(Specific results mentioned P6.)

ROE
3.3%
EBITDA¥29.9billionCore
operatingprofit¥9.3 billion
2022(Result)2024
Set structural reform goals andinvest in human resources, brands,
etc. to achieve the 2026 Plan

ROE
5.0%
EBITDA¥36.0billionCore
operatingprofit¥15.6 billion

2023(Result)

ROE
8.0%
EBITDA¥50.0billion

ROE
5.5%
EBITDA¥40.7billionCore
operatingprofit¥19.0 billion

2024(Forecast)

Although financial targets and targets forcore operating profit for 2026 remainunchanged from the original plan, Japan
alcoholic beverages and restaurant
business are making steady progress. We
aim to achieve the 2026 targets for Japan
alcoholic beverages as soon as possible
and maintain the 2024 profit level forrestaurants. Overseas alcoholic beverages
are slightly behind due notably to theimpact of inflation, and we are working
toward recovery.

Core
operatingprofit¥25.0
billion**Approximation for achieving
financial targets

2026(Forecast)Core operating profit trend
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Progress of the Medium-Term Management Plan -2023 ResultsIn 2023, we worked toward future growth while steadily implementing initiatives for structural reforms
Main results of structural reforms
Alcoholic Beverages（Japan）

Restaurants

Food & Soft Drinks（Japan）(Business portfolio)(Asset reduction)

Cost-related structuralreforms

Improvements in store profitability
Reduce unprofitable restaurants

Cost-related structuralreforms

Reshuffling of businessportfolio

Balance sheet reforms(Asset-light initiatives)¥

billion¥billion¥billion¥billion¥billion(P/L basis)(P/L basis)(P/L basis)(P/L basis)(B/S basis)

Reorganization of Sendai factory
Streamlining promotional expenses

Closures of unprofitable restaurantscompleted 30% reduction compared
to pre-COVID-19 levels

Waste reduction due to SKU reduction
Decrease in vending machine costs

Resolution to dissolve Anchor
Liquidation of subsidiary of PS

Reduce cross-shareholdings
Sales of assets held

Initiatives for future growth
Alcoholic Beverages（Japan）

Alcoholic Beverages（Japan）

Alcoholic Beverages（Overseas）

Alcoholic Beverages（Overseas）

Overseas Soft Drinks

Increase beer sales

Increase RTD sales

SPB growth

Creation of synergies
in the U.S.

Sales increase in Malaysia

%

%

%

(volume basis)(volume basis)(volume basis)

Beer growth
focused on Black Label

Record-high sales achieved
through growth of key brands

U.S.-centered growth
Record-high sales volume in the U.S.

$

M

%

(amount basis)(SGD basis)

Steady progress made withfunction integration
Start of SPB manufacturing in
the U.S.
in December 2023

Growth in Malaysia, our focus region(Singapore +6%)

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Medium- and Long- Term Management Policies

for Increasing Group-wide Corporate Value

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Recognition of challenges and Strengths
Challenges

Low capital profitability• The diversified business portfolio has
caused scattered resources and issues of
intra-group competition relating to
growth investments.

Strengths✓ High quality and brand power of beer

✓ Product development andproduction technology

Lack of strong commitment to the performance•organizational culture•

human resource diversity•

thoroughness of performance-based evaluations✓ Consumer contact points and brandexperience venues that are created byrestaurants business and real estate business

Based on the above-mentioned intrinsic challenges and strengths, the Company has formulated its
vision for the future and management policies over the medium to long term.
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Sapporo group’s vision for the future

The Company will further concentrate its management resources to focus on beerbusinesses with competitive advantages and businesses in which synergies with thosecompetitive businesses can be created.
➢ Specialize in Sapporo brand➢ Expand export business➢ Concentrate resources on beer business➢ Expand consumer contact points➢ Strengthen RTD

Overseas
Alcoholic
Beverages

Japan Alcoholic
Beverages
Coordinate productdevelopment for
RTD, etc.

Food &
Soft Drinks

Real Estate

Invest capital for
expansion of growthinvestment

Overseas Beverages

Food &
Soft Drinks

Real Estate

Coordinate overseas sales
channels
To be utilized as a venue for consumer contact points andbrand experiences➢ Improve property value➢ Reform and reorganize unprofitabledivisions➢ Strengthen lemon business

Previous form

Future form

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Management policy of the alcoholic beverages business

The Company develops its market-creation capabilities in alcoholic beverages, which has been the
Company’s DNA since its foundation and grows our beer business.
Alcoholic beverages business••

Investment in our core brands such as“Sapporo Beer called Black Label” and“Yebisu Beer”
Expanding direct consumer contact
points

New markets

Overseas beer businessJapanese beer business•••

Investment in Sapporo brand
M&A execution
Form a special task team

The company that pursues the creation of
products loved by true beer fans and cherishes
the history and culture of beer•••Strengthening cooperation with otherbusiness units within the group
Create new markets in RTD and nonalcoholic fields
Co-creation with external partners

The company thattries making new value creation
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Organizational Management policy

Redesign group’s organizational structure and organizational operationto accelerate capability of transformation.

Organization➢ The Company will consider the new organizational structure as a business group centered on
alcoholic beverages business (i.e. a business holding company).

➢ Review management requirements

Human
resources➢ Supplement talents from outside➢ Redesign our human resources
development system

Capitalefficiency➢ The Company will thoroughly
implement business management
and financial management policies
based on capital costs.

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Financial Management policy

The Sapporo Group recognizes increasing capital efficiency as one of our key challenge andaims to achieve an ROE of 10% or higher.
✓ The Company will also adopt ROIC as an internal indicator to thoroughly conduct strict criteria of
business continuity based on business-specific WACC and business monitoring using an ROIC tree
✓ In addition, while elevating its financial stability by utilizing external equity, the Company will
accelerate efforts to reduce cross-shareholdings to improve the flexibility of growth investments in thealcoholic beverages business.

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(Reference)
Points that remain unchanged✓Creation of high-quality products that are loved by beer
fans
Strengthening of business foundation through productdevelopment and production technology✓Investment in our core brands and structural reforms tostrengthen profitability

Points to be changed (ahead of the current MediumTerm Management Plan)✓Change from the collection of alcoholic beverages / food &non-alcoholic beverages / real estate businesses to a corporate
entity that realizes value enhancement through growth of thealcoholic beverage business, which is to be achieved by the
total strength of the group✓Introduction of external capital to real estate business andsignificant expansion of growth investment in beer business✓Overseas business growth✓Group’s organizational structure and governance system✓Management with a sense of capital efficiency and capital
costs✓Management requirements in respect of senior
management to realize improvement in capital profitability
and overseas business growth, and formulation of personnel
and other systems to increase commitment to performance

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Business Results for 2023

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Financial Highlights（billions of yen）

2022
Result2023
ResultYoY changes(amount)

YoY changes
(%)

478.4

518.6

40.2

8.4%

Revenue（Excluding liquor tax）

364.2

400.8

36.5

10.0%

Overseas revenue

102.2

119.6

17.4

17.0%

EBITDA

29.9

36.0

20.6%

Core operating profit

9.3

15.6

6.1
6.3

1.9%
0.8
10.1

3.0%
(3.8)

-

-

(4.6)
1.7
3.3

17.0%

-

-

RevenueCore operating profit margin
Other operating income (expense)
Operating profit
Profit attributable to owners of parent
ROE

5.4
3.3%

11.8
8.7
5.0%

67.9%

60.1%

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Financial Highlights
2022
Result2023
ResultYoYchanges(amount)

YoYchanges(%)

2022
Result2023
ResultYoYchanges(amount)

YoYchanges
(%)

478.4

518.6

40.2

8.4%

Core Operating Profit by Segment

9.3

15.6

6.3

67.9%

334.6

376.9

42.2

12.6%

Alcoholic Beverages

7.7

16.0

8.3 107.2%

Japanese

245.4

268.3

22.9

9.3%

Japanese

8.5

14.2

5.7

67.5%

Overseas

74.0

88.6

14.6

19.8%

Overseas

(0.3)

(0.3)

(0.0)

-

Restaurants

15.3

20.0

4.7

30.4%

Restaurants

(0.5)

2.1

2.6

-

Food & Soft Drinks

122.9

119.9

(3.0)

(2.4)%

Food & Soft Drinks

1.8

1.6

(0.1)

(7.5)%

Japanese

98.3

93.5

(4.8)

(4.9)%

Japanese

0.8

2.2

1.4

174.3%

Overseas

24.6

26.4

1.9

7.5%

Overseas

0.9

(0.6)

(1.5)

-

Real Estate

20.7

21.7

1.0

4.7%

Real Estate

6.5

5.8

(0.7) (10.5)%

4.3%

Other・ General
corporate andintercompany eliminations

(6.6)

(7.8)

(1.2)

（billions of yen）

Revenue by Segment

Alcoholic Beverages

Other

0.1

0.1

0.0

（billions of yen）

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Financial Highlights
Revenue increased by 40.2 billion yen (+8.4%) driven by the alcoholic beverages business
For Japan alcoholic beverages, in addition to the strong performance of beer and RTD, the price revision effect contributed to increased sales
The primary factors for increased revenue were, in the overseas alcoholic beverage business, the continued strong performance of SPB and the effect of newly consolidating Stone, and, in therestaurants business, the recovery in demand for dining out at beer halls and other establishments
Revenue decreased for Japan food & soft drinks due to structural reforms in the previous year, including the transfer of the cafe business, the liquidation of a vending machine operator
subsidiary, and SKU reduction.

Reasons for changes in sales revenue

Alcoholic Beverages

Food & Soft Drinks

Real Estate(billions of yen)Japanese= Increase= Decrease
Increase beersales volume
+9%

Stone
New
consolidation
effect +11.0

Overseas

Japaneseexchange
rate

2023

RTD+4.4

Subsidiaryliquidation
(0.8)

2022

Businesstransfer (1,7)

Decrease in happoshu
sales volume by 5%
Decrease in new genre
sales volume by 15%

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Financial Highlights
Profit increased by 6.3 billion yen (+67.9%) due to increased revenue and the effect of structural reforms
Increased revenue in the Japan alcoholic beverages business and the effect of structural reforms on the restaurant business and Japan food & soft drinks
business steadily contributed to profitability, resulting in increased profit
Profit decrease in overseas soft drinks affected by provisions for doubtful accounts for past-due receivables
Profit decrease in real estate due to lower occupancy rates resulting from HVAC work at the YGP offices
Reasons for changes in core operating profit(billions of yen)Japanese

Alcoholic Beverages

Food & Soft Drinks

Real Estate

Details of the factors behind the changes
are shown on the business strategy pagefrom p. 29 onward

Japanese= Increase（Structural reform effect+1.8）

RTD+1.3= Decrease
2023

Provision for
doubtfulaccounts (1.8)

2022
Sales
promotion
investment(1.6)
Fixed costs,
etc.(1.3)

DXIT
investment, etc.

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Financial Highlights
Although assets were reduced by 15.5 billion yen through asset-light initiatives, including the sale of assets held and crossshareholdings, total assets increased by 24.5 billion yen from the end of the previous fiscal year due to overseas growth investments.
★Contents of asset-light initiatives

Liabilities +8.4 billion yen
471.9 billion yen at the end of the previous term
→ 480.3 billion yen at the end of the term under review
・Decrease in financial liabilities: (19.3) billion yen
・ Others +22.7 billion yen(Income taxes payable, consumption taxes payable, etc.)

Inventories

Total assets +24.5 billion yen

Liabilities

639.1 billion yen at the end of the previous term
→ 663.6 billion yen at the end of the term under review★ Reduction of wine inventory (0.8) billion yen★ Review of assets held, etc. (10.1) billion yen★Cross-shareholdings (4.8) billion yen(reduced holdings ofstocks)AssetsCapital +16.0 billion yen

Tangible fixed
assetsIntangible assets

Other financial
assets167.2 billion yen at the end of the previous term
→ 183.2 billion yen at the end of the term under review

Capital・Increase of retained earnings+7.4 billion yen
・Foreign currency translation adjustments+4.1 billion yen
・Valuation difference on available-for-sale securities+4.3 billion yen
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Management Plan for 2024

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Main progress toward business portfolio transformation and business strategy update
Business portfolio presented in the Medium-Term Management Plan⚫

Main progress toward business portfolio transformation(1) Business liquidation

Structural reforms

Strengthening/Growth

Restructuring

GrowthResolution to dissolve Anchor and transfer the plant-based yogurt business with respect to certain alcoholic
beverages and food and Soft Drinks(2) Restructuring
Repositioning of Restaurants business from "restructuring" to "strengthening earning power" after completionof structural reforms

・Food & Soft Drinks

・Alcoholic beverages(Japan)(Overseas)

・Restaurants

・Overseas Soft Drinks⚫

Business strategy update(1) Alcoholic beverages business (Japan)
Strengthening of beer: further enhancement of the appeal of the Black Label and Yebisu brands, which have beenstrengthened in anticipation of alcohol tax revisions
Strengthening of RTD: strengthening of key brands and new product proposals
Promotion of cost-related structural reforms to further improve profitability(2) Alcoholic Beverages business (overseas)

Business liquidation

Improvement of
earning power

・Part of alcoholic
beverages business（Dissolution of Anchor）

・Part of food and Soft
Drinks business（Transfer of the plant-based

Strengthening of SPB in the U.S., creation of synergies*, and enhancement of earning power of the Stonebrand* Improvement of manufacturing efficiency and reduction of logistics costs through the launch of SPB manufacturing in the U.S.

・Alcoholic beverages(Japan)・Real Estate

Back-office consolidation, sales, and marketing synergies (e.g., distribution expansion)(3) Real Estate business
Increase of the value of core properties and promotion of community development
With regard to the asset turnover business**, plan to invest in light of interest rate trends, real estateand construction market conditions, etc.

yoghurt business）**Advancement of Value-Added (VA) & equity investment※ Changed to not included in the action plan KPIs listed on p. 25 and beyond, as the impact on performance has become negligible due torestrained investment
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Figures based on the plan’s assumptions⚫

Higher costs, such as surging raw material costs
Costs are expected to increase by ¥6.5 billion vs. 2023, but price revisions implemented through last year will absorb this increase. Respond to the risk of additional cost increases by closely monitoring the situation

Domestic⚫

Overseas

Year-on-year comparison（billions of yen）

Year-on-year comparison（billions of yen）

Market trend and plan
Japan alcoholic beverages: Plan to outperform the market by continuing to strengthen mainstay beer brands and RTD amid an expected shift to beer ,RTD in light of the October 2023 alcohol tax revisions.
Overseas alcoholic beverages: Although gross demand in Canada is expected to be lower year-on-year due to inflation and other factors, and gross demand in the U.S. is expected to be at the same level as theprevious year, the Sapporo brand’s growth trend is expected to continue.
Food and beverages: Domestic sales of lemon products, the main focus, are expected to grow year-on-year, but sales of other food and beverage products are expected to fall below the previous year's level due to
SKU reduction. Overseas sales, mainly in Malaysia, are expected to exceed the previous year's level.
※（Only canned products, RTD 1 case = 250ml x 24 bottles）

Alcoholic Beverages Japanese（10,000case）

Total demand
(YoY)

YoY

Sales plan

Alcoholic Beverages Japanese（10,000case）

当社計画

当社（前年比）

3,969

(1)%

(2)%

North America

2,038

+1%

3,144

+8％

+4%

Other areas

348

+23%

825

(24)%

(9)%

Total

2,386

+4%

bottle

-

+1%

(2)%

809

+13%

can

-

(1)%

(3)%

Food & Soft Drinks Overseas（millions of SGD）

keg

-

+0%

+0%

Singapore

157

+2%

RTD※

1,564

+11%

+3%

Malaysia

29+17%

International

52

+7%

Beer, happoshu, and new genre
Beer
Happoshu(include New genre)

Food & Soft Drinks Japanese（billions of yen）

当社計画

当社（前年比）Soft Drinks

58.1

+2%

Food（Lemon・Soups）

28.9

(5)%

Sapporo brand Total

当社計画

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Group Management Plan 2024
（billions of yen）

2023
Result2023
Plan

YoY changes(amount)

YoY changes
(%)

518.6

523.5

4.9

0.9%

Revenue（Excluding liquor tax）

400.8

407.6

6.8

1.7%

Overseas revenue

119.6

124.4

4.8

4.0%

EBITDA

36.0

40.7

13.0%

Core operating profit

15.6

19.0

4.7
3.4

Core operating profit margin

3.0%
(3.8)
11.8

3.6%
(1.4)

-

-

2.4
5.8
1.3

48.9%

-

-

Revenue

Other operating income (expense)
Operating profit
Profit attributable to owners of parent
ROE

8.7
5.0%

17.6
10.0
5.5%

21.5%

14.6%

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Group Management Plan 2024 ～Financial Targets～【Financial Targets】
Targets for 2026 have not been changed since theMedium-Term Business Plan was formulated

ROE(Approximation)
Core operating profit※

2022 Result

2023 Result

2024 Plan

2026 Target

3.3%

5.0%

5.5%

8.0%

9.3billion yen

15.6billion yen

19.0billion yen

25.0billion yen

20.6%

16.7%

36.0billion yen

40.7billion yen

17.0%

10.3%

119.6billion yen

124.4billion yen

EBITDA
Average growth rate (CAGR)(Approximation)
EBITDA

※

29.9billion yen

Overseas revenue
Average growth rate (CAGR)(Approximation)
Overseas revenue※

102.2billion yen※Approximation for achieving financial targets

About

10%

50.0billion yen
About

10%

140.0billion yen

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Group Management Plan 2024
2023
Result

2024
Plan

YoY
changes(amount)

YoYchanges(%)

2023
Result

2024
Plan

YoY
changes(amount)

YoYchanges
(%)

518.6

523.5

4.9

0.9%

Core Operating Profit by Segment

15.6

19.0

3.4

21.5%

376.9

380.0

3.1

0.8%

Alcoholic Beverages

16.0

18.3

2.3

14.3%

Japanese

268.3

270.0

1.7

0.6%

Japanese

14.2

15.5

1.3

9.3%

Overseas

88.6

90.0

1.4

1.6%

Overseas

(0.3)

1.0

1.3

-

Restaurants

20.0

20.0

0

0.2%

Restaurants

2.1

1.8

(0.3)

(16.6)%

Food & Soft Drinks

119.9

120.0

0.1

0.1%

Food & Soft Drinks

1.6

3.5

1.9

114.2%

Japanese

93.5

92.0

(1.5)

(1.6)%

Japanese

2.2

2.2

0

1.7%

Overseas

26.4

28.0

1.6

5.9%

Overseas

(0.6)

1.3

1.9

-

Real Estate

21.7

23.5

1.8

8.3%

Real Estate

5.8

5.8

0

0.3%

(7.8)

(8.5)

(0.7)

-

（billions of yen）

Revenue by Segment

Alcoholic Beverages

Other

0.1

0

(0.1)

(86.3)%（billions of yen）

Other・ General
corporate andintercompany eliminations

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Group Management Plan 2024 ～Target for core operating profit～【Target for core operating profit】
Targets for 2026 have not been changed since theMedium-Term Business Plan was formulated

2022 Result

2023 Result

2024 Plan

2026 Target

Alcoholic beverages in Japan

3.5%

5.3%

5.7%

5.7%

Alcoholic beverages in Overseas(0.4)%(0.3)%

1.1%

6.2%

Restaurants(3.3)%

10.5%

8.8%

5.0%
(Aim to maintain 2024 profit level)

Food & Soft Drinks
In Japan

0.9%

2.3%

2.4%

3.8%

Food & Soft Drinks
In Overseas

3.6%(2.2)%

4.6%

5.0%

4.9%

4.7%

4.7%

5.7%

Real Estate※ EBITDA-based ROA※

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Group Management Plan 2024
Aim for an increase in sales of 4.9 billion yen (+0.9%) by focusing on beer, our strength, and achieving growth overseas
Strengthening of beer ,RTD in Japan alcoholic beverages, growth of SPB in overseas alcoholic beverages, and sales channel expansion in Malaysia in overseas Soft Drinks
will be the drivers of revenue growth
Domestic food and beverage sales decreased due to business liquidation and SKU reduction, while real estate sales increased due to the effect of hotel reopening in
Sapporo, etc.

Reasons for changes in sales revenue(billions of yen)

= Increase

Increase inbeer sales
volumeBy 8%Japanese

Alcoholic Beverages

Overseas

Food & Soft Drinks

Real Estate

Japanese= Decrease
2024
Plan

（alcohol tax
revision(5.4)）2023
results（alcohol tax
revision+1.9）

Decrease inhapposhu sales
volume by 24%

RTD +2.7
Wine etc.(3.5)

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Group Management Plan 2024
Profit increased by 3.4 billion yen (+21.5%) due to increased revenue and the effect of synergies of overseas alcoholic beverages
Profit for Japan alcoholic beverages increased due to an increase in the marginal profit of beer , RTD, despite an increase in fixed costs due to investment in sales
promotion and human resources for future growthProfit for overseas alcoholic beverages increased due to SPB growth and synergies, profit for overseas beverages increased due to revenue growth and a decrease inprovisions for doubtful accounts recorded in the previous year

Reasons for changes in core operating profit(billions of yen)

Alcoholic Beverages

Japanese

Food & Soft Drinks

Details of the factors behind the changes
are shown on the business strategy pagefrom p. 29 onward

Japanese= Increase= Decrease

Real Estate（Structural reform effect+0.7）

RTD+1.1
Synergy +0.9

Provision for
doubtfulaccounts 1.8

2024
Plan

2023
results

Sales
promotion
investment(3.3)

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Business Strategies：Action Plan
On slides after page 30, we have included further explanations for action plan numbers (1-1) through (10)Plan to steadily disclosedetails of action plan

Japan alcoholic
beverages

2023
Increase beer sales(1-1)

2024★ Alcohol tax revisions★ Alcohol tax revisions

Increase RTD sales(1-2)
Reorganize RTD production locations(2)Overseasalcoholicbeverages

2025 to 2026

Completed

Generate synergies through function integration(3-1)
Begin producing SPB (keg draft) in the U.S.(3-2)
Optimize global production and logistics(3-3)

Restaurants

Reduce unprofitable restaurants(4-1)

Completed

Strengthen existing stores (improve customer experience value) and shift focus to new formats(4-2)

Japan Food &Soft Drinks

Fundamental structural reforms(5)Overseas Soft
DrinksIncrease sales in countries with room for growth(6)Real Estate

Build an asset turnover business model(7)Changed to no longer included in KPIs as the change in strategy
had a negligible impact on business performance.

Increase value of core properties centered on YGP(8)Entire Group

Fundamentally reshuffle business portfolio(9)Fundamentally reshuffle by 2024 and review the business portfolio annually thereafter

Generate Group synergies around brand and connections with customers and communities(10)Completed※In order to formulate scenarios for enhancing the group's long-term corporate value beyond the midterm management plan, we established Group Strategy Committee this September.
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Business Strategies：Alcoholic Beverages ～Japanese～
2023

2024

Revenue：268.3billions of yen（YoY+22.9billions of yen、＋9.3%）

Revenue：270.0billions of yen（YoY+1.7billions of yen、＋0.6%）

Core operating profit：14.2billions of yen（YoY+5.7billions of yen、＋67.5% ）Reasons for changes in core operating profit(billions of yen）

Beer,Happoshu,New genre
increase in volume

Beer,Happoshu,New genre
Marginal profit
improvement

wine, spirits,
non-alcoholic
beverages, etc

RTD

Cost-related
structuralreforms+0.7

Reorganize RTD locations +1.0
Increase in expenses associatedwith personnel investment (1.2)
Other expenses etc. (1.0)

Sales promotion
investment

Fixed costs, etc.

Core operating profit：15.5billions of yen（YoY+1.3billions of yen、＋9.3% ）Increase in expenses associatedwith personnel investment (0.7)
Fixed cost reduction, etc. +1.2

Reasons for changes in core operating profit(billions of yen）

Beer,Happoshu,New genre
decrease in volume

Beer,Happoshu,New genre
Marginal profit
improvement

wine, spirits,
non-alcoholic
beverages, etc

RTD

Sales promotion
investment

Fixed costs, etc.

“Break away from low profitability" and achieve "business growth" with the strengthening of beer RTD and cost-related structural reforms
Increase beer sales (1-1)
Steadily increase beer sales, with Black Label driving the growthBeer: +9% YoY, Black Label brand: +11% YoY (sales volume basis)✓

Share of beer✓

Beer selling price before
alcohol tax％（+5% YoY）

％ YoY

Increase on share of high-margin beers
Improvement of the productmix/Improvement due to pricerevisions

Result of medium- to long-term initiatives in the Black Label brandSuccessfully increased the number of purchasers of Black Label throughmarketing that cultivates individuality and strengthens customer contact

Strengthen marketing with a focus on mainstay brands✓

Share of beer✓

Beer selling price before
alcohol tax

First renewal in 8 years“Yebisu, perfected time and time again”％（+6% YoY）

％ (VS2022)

Expansion of customer contact points and promotion of thecreation of enthusiastic fansBlack Label brandYebisu brand
THE PERFECT Black Label
EXPERIENCE 2024

YEBISU BREWERY TOKYO(Planned opening on April 3, 2024)

Approx 1.8x vs. 2014

Source: Intage SCI, Number of purchasersof Black Label
Cumulative total for January to Novemberof each year

Black Label Extra Brew:
Planned launch on March 5, 2024

CREATIVE BREW 3rd edition Yebisu Citrus Blanc:
Planned launch on February 20, 2024

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Business Strategies：Alcoholic Beverages ～Japanese～
2023

2024

Increase RTD sales (1-2)
Aiming for further growth by strengthening key brands and proposing new products

RTD achieved record high sales due to growth of key brands✓

RTD (cans) total% YoY (sales amount basis)
Growth significantly outperforming the market due to strong performance of
key brands and new products

+

% YoY

(sales volume basis)+ % YoY+ % against
the Forecast+ % against
the Forecast(sales volume basis)(sales volume basis)(sales volume basis)✓

RTD (cans) total% vs. 2022 (sales amount basis)

Product renewal and expansion of product lineup

January
releaseFebruary
releaseNew 3rd edition of standard alcohol to drink during a meal
"Non-alcoholic dark squeezed lemon sour”

Plannedrelease in
March

Non-alcoholic lemon sour with the authenticity of an izakaya's hand-pressed sour

Cost-related structural reforms (2)Reorganize RTD production locations

Initiatives for cost-related structural reforms

The RTD production line at the Sendai factory began operating from October 11
RTD in-house manufacturing capacity doubled, contributing to greater flexibility insupply and demand

Promoting cost-related structural reforms to break awayfrom low-earning power⚫ SKU optimization⚫ Streamlining of selling costs✓

Share of in-house manufacturing%

Increase of in-house manufacturing share to88% by 2026

⚫ Further improvements of productivity- “Use of DX” “Efficient organizational management”

Details to be disclosed alongwith results
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Business Strategies：Alcoholic Beverages ～Overseas～
2023

2024
Supplement: Increasing/decreasing factors of the Q4

Revenue：88.6billions of yen（YoY+14.6billions of yen、＋19.8%） core operating profit

Revenue：90.0billions of yen（YoY+1.4billions of yen、＋1.6%）

Core operating profit：(0.3)billions of yen（YoY(0.0)billions of yen）

Core operating profit：1.0billions of yen（YoY+1.3billions of yen）

Profit increase due to improvement of logistics costs
and the effect of Anchor’s dissolution

Reasons for changes in core operating profit(billions of yen）

CanadaResolution to dissolve Anchor+0.6
Cost synergies+0.5
Stone‘s loss and integration cost etc.(1.0)

CanadaThe U.S.

U.S.

Vietnam

Reasons for changes in core operating profit(billions of yen）

Decrease due to decline in aggregate demandand promotional investments

Resolution to dissolve Anchor+0.6
Cost synergies+0.9

VietnamCanadaThe U.S.

Vietnam

Launch of SPB manufacturing in the U.S. to improve earning power and expand business
Growth of the Sapporo brandContinuous growth of the Sapporo brand volume

Further growth achieved, especially in the U.S.

Sales volume in the U.S. above total demand and reaching a record highExpansion into the U.S. market and growth achieved through appropriate brand investment✓✓

Sapporo sales volume + % YoY (sales volume basis)

Sapporo sales volume +% YoY (sales volume basis)

Status of synergies with Stone (3/1-3)
Smooth progress of PMI, creating functional integration synergies and sales synergies

Completion of PMI to improve profitability and expand businessStart of SPB manufacturing at Richmond plant in December 2023
In terms of sales, successful collaboration with Stone's sales team to expand the number of stores that carry the
product

Launch of manufacturing at Escondido factory in 2024 Q1
Planned completion of transfer of SPB production to the U.S. by the end of the year✓✓

Cost synergies

Cost synergies

Status of Canada
Soft markets due to inflation and other factors. Company performance above total demand but below the previous year’s level
Achievement of core operating profit plan through control of cost increase and early realization of price revisions, etc.

Improvement of product mix while maintaining volume
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Business Strategies：Alcoholic Beverages ～Restaurant～
2023

2024

Revenue：20.0billions of yen（YoY+4.7billions of yen、＋30.4%）

Revenue：20.0billions of yen（YoY+0.0billions of yen、＋0.2%）

Core operating profit：2.1billions of yen（YoY+2.6billions of yen）

Core operating profit：1.8billions of yen（YoY(0.3)billions of yen、(16.6)%）

Reasons for changes in core operating profit(billions of yen）

Reasons for changes in core operating profit(billions of yen）

SLN
（non-consolidated
settlement）

Decrease in core operating profit due to surging personnel and energy costs
Aim to maintain the profit level of 2024 during the Medium-Term
Management Plan period (2023-2026)

Affiliated companies
and others

Strengthening of contacts with alcohol brands while reinforcing existing stores
Strengthen of existing stores (improvement of customer experience value) and shift to focus business categories (4-2)
Steady contribution to profit from structural reforms, achieving profitability in allquarters

Strengthening of existing stores and shift to focus business categories while
maintaining profit levels

Recovery of existing store base to levels exceeding 2019, thanks to improvement of sales per customer
Success to attract inbound and senior citizens

Improvement of customer experience value and acquisition of repeat customers and fans
Focus on development of Yebisu bar and LEO business with high investment efficiency

Sales results for existing SLN stores (vs. 2019)（Vs2019）revenue

Toward improving customer experience value

Jan.

Feb.

Mar.

Apr.

May.

June

July

Aug.

Sep.

Oct.

Nov.

Dec.

93%

98%

104%

106%

108%

105%

109%

96%

105%

114%

109%

113%

number of customer

84%

88%

92%

91%

92%

90%

95%

86%

91%

98%

95%

98%

sales per customer

111%

112%

113%

116%

117%

116%

115%

113%

115%

117%

115%

115%

Value proposition through analysis of customer survey and app membership data
Promotion of productivity improvement and customer satisfaction improvement by utilizing DX,IT

Stronger contacts with alcohol brands (10)Brand communication of Japan alcoholic beverages

Provision of brand contact points and brand experience opportunities

Operation of Black Label THE BAR FUKUOKA/OSAKA
Sale of Limited edition Yebisu Orange <Keg Draft> at YEBISU BARStrengthening of the partnership with SB, provision of opportunities for brand contact and brandexperience, and contribution to improving the brand value of alcoholic beverage brands

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Business Strategies：Food & Soft Drinks ～Japanese～
2023

2024

Revenue：93.5billions of yen（YoY(4.8)billions of yen、(4.9)%）

Revenue：92.0billions of yen（YoY(1.5)billions of yen、(1.6)%）

Core operating profit：2.2billions of yen（YoY+1.4)billions of yen、+174.3%）

Core operating profit：2.2billions of yen（YoY+0.0billions of yen、+1.7%）

PVS liquidation +0.5

Reasons for changes in core operating profit(billions of yen）

decrease involumeMarginal profit
improvement

fixed cost

Reasons for changes in core operating profit(billions of yen）

structural reform,
etc

decrease involumeMarginal profit
improvement

fixed cost etc.

Set structural reform goals and shift resources to focus businesses
Fundamental structural reforms (5)Structural reforms progressing ahead of schedule,
contributing to improved business profit

KPI cost structural reforms

Steady progress in cost reduction and restructuring at PS- Improvement of marginal profit ratio
Decrease in disposal value due to SKU reduction +300 million yen
Improvement of variable selling cost per unit +300 million yen- Reduction of fixed costs
Reduction of unprofitable vending machine columns +700 million yen- Structural reforms, etc. (Review of business portfolio)
Liquidation of vending machine operator subsidiary PVS +500 million yen
Transfer of the plant-based yoghurt business

Focus on lemon business with a view to implement structural reforms by 2024
・ Cost-related structural reforms
Continuous efforts to reduce unprofitable vending machines, improve sales cost efficiency, etc.
・ Review of business portfolio
Sale or withdrawal from unprofitable and non-core businesses (specific details to be disclosed in due course)⇒

Product mix improvement by reducing unprofitable SKU +500 million yen

Fundamental structural reforms

・Efforts concentrated on the lemon products business
The lemon products market continues to expand due to its highly regarded functionality, in
addition to its delicious taste
Focus on expanding the demand for lemon products as No.1 lemon products manufacturer(lemon's growth strategy will be disclosed after restructuring)

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Business Strategies：Food & Soft Drinks ～Overseas～
2023

2024

Revenue：26.4billions of yen（YoY+1.9billions of yen、+7.5%）

Revenue：28.0billions of yen（YoY+1.6billions of yen、+5.9%）

Core operating profit：(0.6)billions of yen（YoY+1.5billions of yen）

Core operating profit：1.3billions of yen（YoY+1.9billions of yen）

Reasons for changes in core operating profit(billions of yen）

decrease involumeProduct
mix, etc

Provision for
doubtful accounts(1.8)

Reasons for changes in core operating profit(billions of yen）

increase involumefixed cost

Product
mix, etc

Decrease in Provision for
doubtful accounts 1.8

fixed cost

Establishment of a foundation for growth in Malaysia, our most important focus market,
while maintaining a high market share in Singapore
SingaporeNo. 1* share of tea beverage market (57%) *Market share is the Company’s estimate based on data reported by NielsenlQ (Copyright © 2023, NielsenlQ)

Maintenance of strong sales, especially of tea beverages (sales through EC and CVS channels are strong)✓

Singapore sales amount + % YoY (sales amount on a local currency basis)

Aim to expand health and wellness products while focusing on key brands✓

Singapore sales amount + % YoY (sales amount on a local currency basis)

Malaysia
Increase of sales through strengthening of sales structure

Establishment of a foundation for growth by continuing to enhancerecognition and sales structure✓

Expansion of brand awareness and distribution network through marketing

Malaysia sales amount + % YoY (sales amount on a local currency basis)✓

Malaysia sales amount +% YoY (sales amount on a local currency basis)

ExportSales decrease YoY (due to the impact of the suspension of sales to customers at some
export destinations, etc.)✓ Export sales amount – % YoY (sales amount on a local currency basis)

Aim to re-establish sales channels and achieve growth of profitability in other areas✓

Export sales amount + % YoY (sales amount on a local currency basis)
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Business Strategies：Real Estate
2023

2024

Revenue：21.7billions of yen（YoY+1.0billions of yen、+4.7%）

Revenue：23.5billions of yen（YoY+1.8billions of yen、+8.3%）

Core operating profit：5.8billions of yen（YoY(0.7)billions of yen、(10.5)%）

Core operating profit：5.8billions of yen（YoY+0.0billions of yen、+0.3%）

EBITDA：11.3billions of yen（YoY(0.2)billions of yen、(2.0)%）

EBITDA：11.9billions of yen（YoY+0.6billions of yen、+5.6%）

Reasons for changes in core operating profit(billions of yen）

Reasons for changes in core operating profit(billions of yen）

HVAC work

Repair costs, etc.

YGP

SapporoOthersYGP

SapporoOthersEnhancement of the value of properties owned in the Ebisu and Sapporo areas to promote community development
Initiatives to enhance property value (Ebisu area)
Status of YGP value enhancement initiatives
The number of visitors of YGP Center Plaza increased by 1.8 to 2 times after the renovation in November 2022
Decline in occupancy rate of office space due to HVAC work*, but occupancy rate on track to meet the plan✓

Rate of increase in average unit rents +(%)

YGP* office space occupancy rate

Occupancy rate excluding HVAC work areas in the upper 80% toupper 90% range

100
85

rents increase in line with
% YoY Unit
property value improvement

19Q4

20Q4

21Q1

21Q2

21Q3

Occupancy rate

21Q4

22Q1

22Q2

22Q3

Promotion of property value enhancement and community development✓

Rate of increase in average unit rent
+2.8% vs. 2022

Initiatives for YGP’s 30th anniversary
Development of measures to once again communicate the attractiveness of YGP to visitors and office workers
・Partnership with YEBISU BREWERY TOKYO to create beer brewing experiences for YGP 30th Anniversary
・Organization of music festivals in collaboration with Blue Note Place*HVAC work scheduled to take place over about 10 years starting in 2022
(Adjustment of work areas implemented from 2021)

70

Further value enhancement of YGP as it celebrates its 30th anniversary

22Q4

23Q1

23Q2

23Q3

23Q4

Occupancy rate excluding zones of HVAC work

Initiatives to enhance property value (Sapporo area)
Closure of Hotel Clubby (April 2023), preparations for reopening

Opening of Hotel Sosei Sapporo MGallery (January 30, 2024)
Sosei Cross scheduled to open on the site of the former Sapporo Factory parking lot(scheduled for August 2024)
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Action Plan KPI※1 Forex assumption: ¥130
※2 Local currency basis (Singapore dollar)

Japan alcoholic
beverages

2022 results

2023 results

2024 Planmedium-termplan Target

68%

73%

79%

79%

+9%

+11%

+11%

（VS 2022）（VS 2022）

Reinforcement of Beer / Improving Profitability of Beer-type Bev.

Increase beer sales: share of beer sales（1-1）
Improve profit margin: selling price excluding alcohol tax（1-1）-

RTD Business Growth and Production Streamlining, Etc.

RTD growth: RTD sales amount（1-2）
Increase production efficiency: ratio of in-house production（2）Overseasalcoholicbeverages

Sapporo brand volume （3-1~3）（3-1~3） ※1

Japan
Cost Structure Reforms（5）food & soft drinks

Real Estate

Expanding Sales and Increasing Logistics Efficiency

Overseas sales amount (6) ※2
Increase value of YGP

Rate of increase in average rental price (8)Entire Group

+19%

+31%

+74%

（VS 2022）（VS 2022）（VS 2022）

73%

63%

88%

88%

6.61million
cases

7.16million
cases

8.09million
cases

10.0million
cases

-

$4M

$11M

$23M

-

1.3billion

2.0billion

2.0billion-

Stone Acquisition Synergy / SPB Growth

Cost synergy

Overseas
soft drinks（VS 2022）

Fundamentally reshuffle business portfolio（9）PVS liquidation effect +500 million yen
Anchor dissolution effect +600 million yen

+2.8%

+7.6%

+30%

（VS 2022）（VS 2022）（VS 2022）-+0.5%（VS 2022）+2.8%（VS 2022）+2.5%（VS 2022）

1.0billion（VS 2021）

1.1billion（VS 2022）---

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Financial strategy: progress in cash allocation
Securement of financial flexibility to prepare for growth investment opportunities by reviewing investment policy andstrengthening balance sheet management in the Real Estate business■ 4-year cash allocation (planned for 2023-2026)

Cash inflow

Progress of shareholder return policy

Cash outflow
At the time of announcement of theMedium-Term Management Plan
(2023-2026)

Investing CF

Investing CF(Investment - sale ofassets)Operating CF¥150.0 billion¥130.0 billion(of which, about
50% of growthinvestments)(Investment - sale of assets)¥80.0 billion(of which, about 60% of
growth investments)

Shareholder return
Repayment of financial
liabilities

Fundraising as
needed・Based on the current dividend policy, we havedecided to increase dividends in 2023 in linewith profit growth・Planned dividend increase in 2024 for thesecond consecutive year

・Dividend per share
60
50
40
30
20
10
0

42

2022

Unit: yen

52

47

2023

2024
（Plan）

Review of the investment policy・Control of investment in the Real Estate business in light of the impact ofchanges in the market environment

Asset reduction policy (accelerated reduction of cross-shareholdings)

Shareholder return(additional investment
capabilities)¥50.0 billion

・Clarification of immediate policy for further reduction and setting of newquantitative targets◆ Target until 2024: less than 20% of capital◆ Target until 2026: less than 10% of capital

Flexible growthinvestments

Flexible growthinvestments

Securement of financial flexibility

Use of leverage to the extent possible
to ensure maintenance of credit ratings

・Strengthening of financial security through reduction of financial liabilities
・Flexible response to profitable growth investment opportunities by leveraging
additional investment capabilities
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Reference) Financial Strategy: progress in cash allocation_changes from the Medium-Term Management Plan

Cash allocation policy as indicated in the Medium-Term Management Plan (2023-26)■ 4-year cash allocation (planned for 2023-2026)

Review of the investment policy・Control of investment in the Real Estate business in light of the impact ofchanges in the market environment

Review of asset reduction policy (accelerated reduction of cross-shareholdings)

・Clarification of immediate policy for further reduction and setting of newquantitative targets◆ Target until 2024: less than 20% of capital◆ Target until 2026: less than 10% of capital

Progress of shareholder return policy・Based on the current dividend policy,
we have decided to increase dividends
in 2023 in line with profit growth・Dividend per share

Unit: yen・Planned dividend increase in 2024 forthe second consecutive year
Use of leverage to the extent possible
to ensure maintenance of credit ratings

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Sustainability management initiatives
Implementation of specific actions in line with priority issues set from the perspective of relevance to each business, degree of impact
on society and the environment, and degree of impact on the Company's finances.
Contributing to the wellbeing of people and communities through the time and spaces all of our businesses offer★ Top priority issues

Harmony with theenvironment

Co-prosperity with society① Realization of adecarbonized society ★
② Realization of arecycling-oriented society③ Realization of a society inharmony with nature④ Co-prosperity with local communities ★
⑤ Provision of health value⑥ Establishment of a sustainable supply
chain

Active participation ofhuman resources⑦ Active participation ofdiverse human resources ★

⑧ Promotion of responsible alcohol consumption⑨ Provision of safe products and facilities

Governance
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Sustainability management initiatives
Click here to learn more about our sustainability-related priorities, goals, and progress

Harmony with the environment

Co-prosperity with society

Sapporo Group and House Foods begin joint transportation between Kita-Kanto and Osaka
By combining the transportation of shochu (heavy cargo) and snacks (light cargo), a weight loading ratio of
approximately 98% was achieved, significantly improving transportation efficiency.
The volume loading ratio has been improved by approximately 13%, and CO2 emissions are expected to be reduced
by approximately 18 tons per year compared to before the partnership.

Expansion of regional development projects
As part of the Sapporo Group's regional development activities, Sapporo Lion held cooking fairs that make thebest use of local ingredients・”Lucky Japan Food Tour in Fukushima”
・”Fukuoka Umakomon Fair”

Sapporo Beer products
Empty space appears above the loading platform
Sapporo
Gunma
Factory
Jointtransportation
Beforeimplementation

Sapporo
Gunma
Factory

Human rights due diligence

House
Foods
Kansai
Logistics
Centersnacks

House
Foods
Kanto
Factory

Support everyday health through lemon nutrition education activities
First certification as a "Nutrition Education Promoting Company/Organization”
House Foods products

There is plenty of room for loading
weight even when fully loaded
House
Foods
Kanto
Factory

Jointtransportation
After
implementation

Sapporo
Osaka
Logistics
CentershochusnacksshochuWe respect the human rights of Group partners and ensure a work environment free from
unfair discrimination. To confirm our stance, we promote establishing and implementing ahuman rights due diligence process.

House Foods
Kansai
Logistics
Center

Sapporo
Osaka
Logistics
CenterIn the supply chain, we will strengthen ourefforts to respect human rights by prioritizing
the status of key raw materials* in ourbusiness and raw materials that are deemed topose a high risk to human rights**.
*Malt, hops, grapes/grape juice, lemon, plum**Palm oil, tea leaves, coffee beans, soybeans, cocoa beans, liquid sugar, crudedistillate alcohol

Update of the Sapporo Group Environmental Vision 2050 to “realize a decarbonized society”
Update of our 2030 target for reducing greenhouse gas emissions and setting a new FLAG targets

Signing of first virtual PPA in the real estate industry (according to our research)
First step toward generating 100% of own electricity consumption by 2040
Estimated CO2 emissions reduction is about 2,000 tons, equivalent to about 15% of the company's electricity
consumption

Active participation of human resources
Consecutive “Cancer Ally Awards 2023" for SB and PS
SB received the newly established "Diamond" award and PS received the "Silver"award for the fifth consecutive year

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Initiatives to strengthen governance
Governance
Enhanced monitoring: through appropriate monitoring, we have enhanced our ability to execute on our plans
Monitoring by the Board of Directors
Decision making and business execution by execution side

<Review of business portfolio annually>
Review business portfolio based on an accurate understanding of cost ofcapital and return on capital<Progess management of action plan and KPIs monthly and quarterly>
The Board of Directors monitors action plans and KPIs appropriately andexecutes actions while implementing the PDCA cycle

Current analysis of cost of capital and return on capital

Setting of appropriate KPIs and action plan

Plan formulation

Business portfolio management
Exit businesses that cannot be expected to improveand focus on growth areas⚫

Monthly monitoring by the holding and operating companies

KPI management

Execution of action plan

See p.21 for details about the review of our business portfolio

Majority of outside directors (as of December 31, 2023)

applies them to management

Review of the skill matrix
・Review of the skill matrix to achieve the Medium-Term Management Plan

strengthening the supervisory function

The Board of Directors takes the opinions of capital markets seriously andSee p.29 for details about action plan and KPI details⚫

Since 2023, outside directors comprise the majority of the Board,

Review of measures

Independent outside
directors

Addition of “sustainability," and classification of the required knowledge, experience, and abilities
into eight categories

Audit & Supervisory
Committee

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Appendix

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Promotion of management that is conscious of cost of capital and stock price
While the P/B ratio is above 1.0, we recognize that the current ROE level does not
sufficiently exceed the cost of shareholders’ equity as required by the market
Change in P/B ratio - Past 10 years

2026
Aim for 8% ROE

Change in ROE - Past 10 years
2.7

3.0

10.0%

Cost of equity isrecognized to be around 6%

5.0%

2.0
1.3

1.3

1.5

1.5

2023
5.0% ROE

1.5
1.1

1.2

1.0

1.0

0.0%

1.0 P/B ratio is above 1.0

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

-5.0%

Awareness ofstatus quo

0.0
2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

-10.0%- Target of 8% ROE set in the Medium-Term Management Plan announced in November 2022
- ROE of 5.0% in 2023 was on an improving trend, but we recognize that the low ROE relative to the industry average is an issue that must be resolved assoon as possible
Reference: Stock price data (stock price index using the closing price as of the end of December 2013 as 100)

300
250
200
150
100
50
0

Sapporo HD

TOPIX

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Promotion of management that is conscious of cost of capital and stock price

PolicyTo promote a financial strategy that emphasizes "sustainable growth" and "capital efficiency," which we have beenworking on for some time, and to achieve an increase in corporate value- Aim to achieve Medium-Term Management Plan financial targets (ROE of at least 8% in 2026, overseas sales revenue and EBITDA growth of 10%/year)- Promote both growth investment and shareholder returns based on cash allocation policy
For the realization of sustainable growth⚫ Growth investment⚫ Enhance the earning capacity of each business- Investment in overseas businesses with growth potential- Realization of business growth- Investment in domestic business to strengthen the earnings base

Proactively develop areas of strength

Respond flexibly to growth investment opportunities by utilizing financial leverage- Cost-related structural reforms

to the extent that our current credit rating can still be guaranteed

Create business structures that can respond to changes in the environment

For the enhancement of capital efficiency

Efforts toenhance ROE● Thorough monitoring using ROIC as an indicator-Company-wide management ess using ROE, business segment
management using ROIC
Execution of improvement initiatives in a streamlined fashion using the
ROIC tree⚫ Balance sheet reforms- Review of assets
Improve or sell underutilized assets and assets with low turnover- Reduce cross-shareholdings
Reduction of the ratio of book value of shareholdings to total equity attributableto owners of the parent to less than 20% by 2024 and less than 10% by 2026

⚫ Review of business portfolio- Fundamental review of businesses positioned for
restructuring/reorganization⚫ Shareholder returns- Increase the level of dividends in accordance with profit growth

Exit businesses that cannot be expected to improve and focus on growth

Aim to increase the amount of dividends while maintaining dividend stability

areas(Dividend increase in 2023 (from 42 yen to 47 yen) and planned dividend increase again in 2024 (52 yen))

Updated information from Q3 financial results presentation is shown in red

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Promotion of management that is conscious of cost of capital and stock price
Promotion of initiatives to improve capital profitability as well as initiatives to reduce the cost of capital
Main initiatives
Reshuffling of businessportfolio

Exit businesses that cannot be expected to improve and focus on
growth areas

Structural reforms

Create business structures that can respond to changes in theenvironment

Improvement of capitalprofitability(ROE of 8% by 2026)

Proactively develop areas of strength

Balance sheet reforms

Improve or sell underutilized assets and assets with low turnoverReduce cross-shareholdings

Capital policy andshareholder return

Achievement of optimal capital structure
Aim to increase the amount of dividends while maintaining dividend
stability

Strengthening of ESG

Reduce long-term risks by promoting sustainability management
Strengthening of governance

Strengthening of SR and IR
activities

Eliminate information asymmetry by expanding information disclosure(Results and details of dialogue with capital markets will be disclosed
in the Integrated Report)

Improvement of corporate value

Profit growth

Aim to expand theequity spread

Reduction of capital cost
(Cost of equity is recognized to bearound 6%)

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Status of the income statement
・Revenue and all profit categories achieved the plan announced at the beginning of the year

・Core operating profit and operating profit did not meet the revised forecast, but revenue and net profit did
2023
Initial Plan

（vs Initial Plan）

518.6

490.0

28.6

510.0

8.6

Core operating profit

15.6

13.5

2.1

16.5

(0.9)

Operating profit

11.8

9.5

2.3

12.0

(0.2)

8.7

5.5

3.2

7.0

1.7

（billions of yen）
Revenue

2023
ResultProfit attributable to owners of parent

Changes

2023
RevisedPlan

2023
Changes
Revised Plan （vs Revised Plan）

2023
Initial Plan

518.6

490.0

28.6

510.0

8.6

Core Operating Profit by Segment

15.6

13.5

2.1

16.5

(0.9)

347.0

29.9

370.5

6.4

Alcoholic Beverages

2.6

16.5

(0.5)

250.0

18.3

265.0

3.3

Japanese

12.5

1.7

14.5

(0.3)

80.0

8.6

86.0

2.6

Overseas

0.5

(0.8)

0.1

(0.4)

17.0

3.0

19.5

0.5

Restaurants

0.4

1.7

1.9

0.2

121.0

(1.1)

118.0

1.9

Food & Soft Drinks

2.4

(0.8)

3.4

(1.8)

95.0

(1.5)

92.0

1.5

Japanese

1.3

0.9

2.3

(0.1)

26.0

0.4

26.0

0.4

Overseas

16.0
14.2
(0.3)
2.1
1.6
2.2
(0.6)

13.4

Overseas

376.9
268.3
88.6
20.0
119.9
93.5
26.4

1.1

(1.7)

1.1

(1.7)

Real Estate

21.7

22.0

(0.3)

21.5

0.2

Real Estate

5.8

5.9

(0.1)

5.2

0.6

0.1

0

0.1

0

0.1

Other・ General corporate andintercompany eliminations

(7.8)

(8.1)

0.3

(8.6)

0.8

Revenue by Segment

Alcoholic Beverages
Japanese
Overseas
Restaurants

Food & Soft Drinks
Japanese

Other

Changes（vs Initial Plan）

Changes（vs Revised Plan）（billions of yen）

2023
Result2023
Initial Plan

2023
RevisedPlan

2023
Result（billions of yen）

Changes（vs Initial Plan）

Changes（vs Revised Plan）

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Balance Sheets（billions of yen）

Total assets

End of 2022 End of 2023

ChangeTotal liabilities and equity

End of 2022 End of 2023

ChangeCash and cash equivalents

15.4

17.2

1.8

Trade payables

35.7

38.7

3.0

Trade receivables

96.6

98.0

1.4

Short-term financial liabilities

86.5

39.7

(46.9)

Inventories

47.5

47.6

0.1

Other current liabilities

97.3

112.8

15.6

Other current assets

19.9

13.6

(6.4)

Long-term financial liabilities

155.4

182.9

27.6

Fixed assets and intangible assets

138.4

152.7

14.2

Net defined benefit liabilities

3.5

3.4

(0.1)

Investment property

209.6

211.2

1.5

Other non-current liabilities

93.6

102.8

9.2

Goodwill

33.8

35.1

1.3

471.9

480.3

8.4

Other non-current assets

77.8

88.3

10.4

Total liabilities
Equity attributable to ownersof parent

166.3

182.3

16.0

639.1

663.6

24.5

Non-controlling interests

0.9

0.9

0.0

Total equity

167.2

183.2

16.0

Total liabilities and equity

639.1

663.6

24.5

1.4

1.1

－

241.9

222.6

(19.3)

Total assets

Debt-to-equity ratio (times) :Net
Balance of financial liabilities

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Status of Each Cash Flow（billions of yen）

2022

2023

ChangeChange (%)

CF from operating activities

7.8

45.4

37.6

481.6%

CF from investing activities(46.1)(16.4)

29.7

ー(38.3)

29.0

67.3

ー

36.5

(27.1)(63.6)ーFree CF

CF from financing activities＜Investment total（①＋②）＞

billion➀ Capital expenditure (cash basis） ：billion（Property, plant and equipment, intangible assets, investment property）＜Major items＞
・Alcoholic Beverages：¥(12.2)billion
Japan：¥(4.3)billion

Capital expenditures¥(28.9) billion

CF from operating
activities+¥45.4 billion

overseas：¥(8.0)billion

・Food & Soft Drinks：¥(3.4)billion
Other investments－Asset sales+¥12.5 billion

Japan：¥(2.8)billion

・Real Estate：¥(11.9)billion
Yebisu Garden Place and others

・Group-wide：¥(1.4)billion② Other investments－Asset sale ：billion（Stock sales, etc.）

Cash in¥45.4billion

Cash out¥(16.4)billion

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Alcoholic Beverages Data
Japanese※1：:Following the agreement of the Brewers Association of Japan,
there is no disclosure of the sales volume for the first quarter.
The sales volume for the first half and end of the fiscal year shall be disclosed.

Sales Volume:Beer (Japan) (※1)
①Beer (total)
Sapporo Draft Beer Black Label (total)
YEBISU (total)②Happoshu (total)③New genre beer products (total)
Beer, happoshu, and new genre （total ①+②+③)

2022

2023

2,677
1,399
666
151
1,114
3,942

2,917
1,556
634
144
944
4,005

(10,000 cases)
YoY
Change(%)
9.0%
11.2%
(4.8%)(5.0%)(15.2%)
1.6%＜ Beer lineup sales volume (break down) ＞(Jan – Dec)

＜10-year change in composition ratio
of beer,happoshu, and new genre＞

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Alcoholic Beverages Data
Japanese
Sales:Beer (Japan)
Beer
Happoshu
New genre
Beer, happoshu, and new genre
RTD
Domestic wines
Imported wines
Wine (total)
Spirits and Shochu (total)
Total（billions of yen）
2022

145.2
5.9
41.5
192.6
22.3
3.4
7.1
10.5
27.2
252.6

2023

＜ Jan- Dec sales revenue ＞ (billions of yen)

YoY
Change(%)

162.7
5.9
37.7
206.3
26.7
3.1
6.7
9.8
30.5
273.3

12.0%
1.2%
(9.2%)
7.1%
19.8%(8.2%)(5.6%)(6.4%)
12.1%
8.2%＜ Jan- Dec sales breakdown by category ＞*Before subsidiary companies sales, elimination ofinter- company transactions and rebate deduction*From 2021, Hyosai Sour and 99.99 keg
are reclassified from Spirits to RTD.

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Alcoholic Beverages Data
Japanese＜Changes in the amount of liquor tax per 350 ml＞
（yen）

77
70

63.35
Beer

54.25

Happoshu
New genre

46.99
37.8

RTD

✓ Beer and Beer
type beverages
yen
✓ RTD
yen

35

28

2020

2023

2026

（year）

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Alcoholic Beverages Data
Overseas(10,000 cases)

Sales Volume:Beer (International)

2022

Overseas brand (※1)

1,457
418
1,876
243
243
2,118
661

Sapporo brand①North America
Sapporo brand②Other areas
Total（①＋②）
Sapporo brand Total

2023

1,585
433
2,019
282
282
2,301
716

YoY
Change(%)
8.8%
3.6%
7.6%
16.4%
16.4%
8.6%
8.3%

※1：SLEEMAN, Anchor, Stone, etc.

＜ Overseas sales volume by brand (Jan-Dec) ＞（10,000 cases）

2,500
2,000
1,500

596

464

569

661

1,323

1,359

1,330

（10,000 cases）

2,500
2,000

1,457

1,585

1,000

243

231

168

190

1,688

1,656

1,709

2019

2020
2021
2022
North America
Other areas

1,500

1,000
500

716

＜ Overseas sales volume by Area (Jan-Dec) ＞

1,876

282

2,019

500

0

0
2019

2020

2021

Overseas brand

2022
Sapporo brand

2023

2023

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Alcoholic Beverages Data
Restaurants
Restaurants
Revenue （billions on yen）
Number of Restaurants＜Composition of Restaurants by Format＞
2022

15.3
140

YoY

2023

Change(%)

20.0
130

30.4%
(7.1%)＜Trend in Revenue of Restaurants Businessand Number of Restaurants＞（Jan-Dec）（billions of yen）

130Outlets（Restaurants）＜Composition of Restaurants by Region＞

130Outlets
Bar graph: Trend in Restaurant business core operating profit
Line graph: Trend in number of Sapporo Lion Group restaurants

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Food & Soft Drinks Data
Japanese（billions of yen）

Sales:Food & Soft Drinks (Japan) (※1)
Soft Drinks
Food（Lemon・Soups・Plant milk)

2022

61.0
32.9

2023

56.9
30.3

YoY
Change(%)(6.9%)(7.9%)※1：Only domestic sales(Before Rebate subtracted from sales)＜ Japanese soft drinks POKKA SAPPORO Food & Beverage ＞
Sales composition by sales channel (Jan- Dec)

＜Japanese soft drinks Sales composition by genre (Jan- Dec)>

32.43 million
cases

32.43 million
cases

Overseas
Sales:Food & Soft Drinks (Overseas) (※2)
Singapore(millions of SGD)
Malaysia(millions of SGD)
International(millions of SGD)
※2： Before sales deduction, exclude OEM sales

2022

14.6
2.3
5.2

2023

15.4
2.4
4.9

YoY
Change(%)
5.7%
6.5%(7.0%)
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Real Estate Data
＜ Information about Investment property ＞

Real Estate(billions of yen)

＜ Major rental properties & occupancy rates：（Averages for 2023)>
Site area（㎡）

Yebisu Garden Place（1）Ginza Place
Strata Ginza（2）Floor area（㎡）

Occupancy rate（%）

No. of floors

400.0

300.0
200.0

56,943

298,00779

40 floors above ground,
5 below

645

7,350

93

11 floors above ground,2 below

1,117

11,411100

13 floors above ground,
1 below

100.0

385.7
209.6

382.9
203.2

0.0
As of December 31,

As of December 31,

2021

2022

Carrying value on the consolidated statement*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 922m 2 of the site (sectional ownership) and 89.72% of the building(joint management)of financial position
Fair value(billions of yen)(billions of yen)＜Core Operating profit＞

2022

2023

Change＜EBITDA＞

2022

2023

ChangeYebisu Garden Place, etc.

4.9

4.7

(0.2)

Yebisu Garden Place, etc.

8.2

8.5

0.3

Other area &other operations

2.0

2.0

(0.0)

Other area &other operations

2.7

2.7

(0.1)

))Hokkaido

0.7

0.5

(0.2)

Hokkaido

1.3

1.0

(0.3)

Equity investment, etc

(1.1)

(1.3)

(0.2)

Equity investment, etc

(0.7)

(0.9)

(0.1)

Total

6.5

5.8

(0.7)

Total

11.5

11.3

(0.2)
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As an intrinsic part of people's lives, Sapporo will contribute to
the evolution of creative, enriching and rewarding lifestyles.

This document was prepared for the purpose of providing information to serve as a reference for investors in making investment decisions and not
for the solicitation of investment or any other similar such actions.
The earnings forecasts and forward-looking statements contained in this document were prepared based on the judgment of the Company as ofthe date of this document and include potential risks and uncertainties.
Actual published future results may therefore differ materially from the content of this document.
The Company shall not in any way be responsible or liable for any losses or damages resulting from the use of the information in this document.

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