Financial Results
for the Nine Months Ended September 30, 2010 — Consolidated(Based on Japanese GAAP)
October 29, 2010

Company name

Sapporo Holdings Limited

Security code
Listings
URL

2501
Tokyo Stock Exchange (First Section); Sapporo Securities Exchange
http://www.sapporoholdings.jp/english/

Representative
Contact

Takao Murakami, President and Representative Director, Group CEO
Yoichi Kato, Director and General Manager of the Corporate Planning
Department

Telephone
Scheduled dates:+81-3-5423-7407

Filing of quarterly financial reports

November 11, 2010

Commencement of dividend payments―

Supplementary information to the quarterly earnings results

Available

Quarterly earnings results briefing

Available(mainly targeted at institutional
investors and analysts)

1. Consolidated Financial Results for the Nine Months Ended September 30, 2010
(January 1 – September 30, 2010)(Amounts in million yen rounded down to the nearest million yen)

(1) Operating Results(Percentage figures represent year-over-year changes)
Net sales

Operating income

Ordinary income

Net income

million yen%

million yen%

million yen%

million yen%

Nine months ended
September 30, 2010

284,085

0.3

9,497

21.1

8,575

36.8

3,352

44.6

Nine months ended
September 30, 2009

283,109

-

7,843

-

6,269

-

2,319

-

Net income per
share

Diluted net income
per share

yen

yen

Nine months ended
September 30, 2010

8.56

7.51

Nine months ended
September 30, 2009

5.92

5.41

1

(2) Financial Position
Total assets

Net assets

Shareholders’equity ratio

Net assets per
sharemillion yen

million yen%

yen

September 30, 2010

499,102

119,275

23.5

299.83

December 31, 2009

506,874

118,59023.4

302.16

Note: Shareholders’ equity
September 30, 2010:

117,431 million yen

December 31, 2009:

118,371 million yen

2. Dividends
Dividend per share
Record date or
End Q1End Q2End Q3Year-end

Full year

yen

yen

yen

yen

yen

Year ended
December 31, 2009

-

0.00

-

7.00

7.00

Year ending
December 31, 2010

-

0.00

7.00

7.00

periodYear ending
December 31, 2010
(forecast)

Note: No changes were made to dividend forecasts in the nine months ended September 30, 2010.

3. Forecast of Consolidated Earnings for the Year Ending December 31, 2010
(January 1 – December 31, 2010)(Percentage figures represent year-over-year changes)
Net
Net sales

Operating income

Ordinary income

Net income

incomeper share

Full year

million yen%

million yen%

million yen%

million yen%

yen

391,000

0.9

13,500

4.7

11,000

2.6

4,800

5.8

12.25

Note: No changes were made to earnings forecasts in the nine months ended September 30, 2010.

2

4. Other*For details, see “4. Other” on page 9.
(1) Changes to scope of consolidation: None
*Changes affecting the status of significant subsidiaries (scope of consolidation)(2) Simplified accounting: Yes*Use of simplified accounting methods and/or accounting methods specific to quarterly
consolidated financial statements(3) Changes in accounting principles, procedures, and methods of presentation
1) Changes in accord with amendments to accounting standards: Yes
2) Changes other than the above: None
*Changes in accounting principles, procedures, and methods of presentation used toprepare the quarterly financial statements(4) Number of shares issued and outstanding (common stock)1) Number of shares issued at end of period (treasury stock included):
September 30, 2010: 393,971,493 shares
December 31, 2009: 393,971,493 shares
2) Number of shares held in treasury at end of period:
September 30, 2010:
2,308,024 shares
December 31, 2009:
2,218,784 shares
3) Average number of outstanding shares during the period:
Nine months ended September 30, 2010: 391,711,624 shares
Nine months ended September 30, 2009: 391,886,745 shares*Quarterly review status
The quarterly financial results are not subject to quarterly reviews pursuant to the Financial
Instruments and Exchange Act. The quarterly review of the quarterly financial results herein had
not been completed as of the date of this document.
Appropriate Use of Earnings Forecasts and Other Important Information
This document contains projections and other forward-looking statements based on information
available to the Company as of the date of this document. Actual results may differ from thoseexpressed or implied by forward-looking statements due to various factors. For the assumptions
underlying the forecasts herein and other information on the use of earnings forecasts, refer to"Earnings Forecasts" on page 9.

3

1. Analysis of Operating Results
Consolidated financial results for the nine months ended September 30, 2010
(January 1 – September 30, 2010)
Consolidated net sales for the nine months ended September 30, 2010, totaled¥284.0 billion (up ¥0.9 billion year over year), marking a rebound from a ¥5.2 billion(3%) year-over-year drop in sales in the first half of the year, which was partly due tounseasonal early-spring weather. Our International Alcoholic Beverages Business’s
sales volume, which has looked good all year, continued to grow, and revenues werealso buoyed by our Japanese Alcoholic Beverages Business and Soft Drinks
Business achieving above-industry-average sales volume in the third quarter(July–September).
The increase in sales volume, combined with lower manufacturing costs, offset anincrease in depreciation charges due to the launch of our new sales and logistics
system. As a result, we recorded operating income of ¥9.4 billion (up ¥1.6 billion, or21%, from the first nine months of 2009), ordinary income of ¥8.5 billion (up ¥2.3
billion, or 37%), and net income of ¥3.3 billion (up ¥1.0 billion, or 45%).
Segment Information
Alcoholic Beverages
Alcoholic Beverages (Japan)
Although the domestic economy has yet to begin a clear-cut recovery, demand forbeer improved during the third quarter as summer temperatures soared to record
highs. As a result, total domestic demand for beer and beer-type beverages in the firstnine months of 2010 appears to have contracted by around 2% from the same periodof 2009, an improvement of about two percentage points from the pace seen throughthe first half of the year.
While demand for conventional beer and happoshu (low-malt beer) continues to fall,
new-genre beer shipments evidently increased about 11%, highlighting consumers’continued shift into this lower-priced segment of the beer market.
In this operating environment, our Japanese Alcoholic Beverages business adopted
the campaign slogan “Bringing more cheer to your ‘Cheers!’” (translated from theJapanese). Under this slogan, the business focused marketing activities on its core
Yebisu, Sapporo Draft Beer Black Label, and Mugi to Hop brands while developing4new products to offer beer drinkers new value propositions (i.e., developing
differentiated products that embody Sapporo beer’s unique qualities).
As a result, total unit sales of all Sapporo beer products through the first ninemonths of 2010 were up 1.2% year over year, outperforming the industry as a whole.
We enjoyed particularly strong sales growth in the third quarter, with shipments
increasing 8.1% year over year.
Unit sales of Sapporo Draft Beer Black Label fell 5.9%, reflecting the industry-wide
decline in total demand for conventional beer products of around 3.5% due toconsumers’ shift to new-genre beer products and weak demand from commercial
customers. However, total unit sales for our Yebisu brand—now in its 120th
year—were up 5.5%, supported by the anniversary-year marketing campaign
launched in January and the release in September of a limited quantity of Yebisu
Asuka Cruise Maroyaka Jukusei, a beer that normally can be enjoyed only aboard the
AsukaⅡcruise ship. The strong Yebisu brand sales helped limit the decline in ourconventional beer sales to 3.6%, about equal to the fall in industry-wide demand.
Unit sales of our new-genre beer products were up 14.3% in the first nine months ofthe year, sharply outperforming industry-wide sales figures for the category. We
enjoyed a 26.3% increase in unit sales of Mugi to Hop, now marketed under theslogan “So tasty you’ll think it’s real beer” (translated from the Japanese). New-genre
beer sales also were boosted by the September launch of Sapporo Creamy White, a
new product brewed with a proprietary process that yields a creamy and long-lasting
foam head.
In the low-alcohol category, we followed up our May launch of Sapporo Nectar Sour
Sparkling Peach, developed in collaboration with Fujiya, with the September launch of
the limited-quantity Sapporo Nectar Cocktail Torotoro Peach. Sales of both products
have exceeded targets.
In the wine and liquor business, revenues and earnings were both down year overyear, despite efforts to reduce costs.
Overall, our Japanese Alcoholic Beverages business achieved operating income of¥5.0 billion (up ¥1.1 billion, or 31%) on sales of ¥200.8 billion (down ¥3.5 billion, or 2%,
year over year) for January–September 2010, as increased beer and beer-type
beverage unit sales and reduced manufacturing costs offset an increase indepreciation charges due to the launch of our new sales and logistics system.

5

Alcoholic Beverages (International)
North American beer demand remained relatively sluggish despite some indications
that consumers might be starting to increase their spending on certain items.
Industry-wide demand appears to have contracted by around 2–3% from a year
earlier. The Asian beer market, however, is steadily expanding in tandem with theregion’s strong economic growth.
In this environment, the International Alcoholic Beverages business continued toactively focus on sales to the premium market segment. Canadian subsidiary
Sleeman Breweries’ unit sales (excluding outsourced production of Sapporo brandproducts) increased 6% year over year. Sapporo USA’s Sapporo brand unit sales to
the North American market rose 15% from a year earlier, and its overseas unit sales,
concentrated mainly in Asia, expanded 31%.
In December 2009, we reached a decision to enter the Vietnam market. Brewery
construction is set to begin in July, and we continue to formulate a marketing strategy
and build a distribution network in preparation for locally producing and selling beer inpartnership with the state-owned Vietnam National Tobacco Corp.
As a result of these efforts, the International Alcoholic Beverages business achieved
operating income of ¥0.5 billion over the first nine months of 2010 (a marginalyear-over-year increase of less than ¥0.1 billion) on sales of ¥19.5 billion (up ¥2.5
billion, or 15%, year over year), despite startup costs in Vietnam.
Soft Drinks
Our estimates indicate that the domestic soft drink market expanded by around 3%
year over year during January–September 2010, as record high summer
temperatures spurred sales despite a still stagnant economy.
Against that backdrop, the Soft Drinks business focused its marketing strategy on
cultivating and strengthening existing brands. As such, marketing expenditure andsales efforts were concentrated on the Gabunomi, Ribbon, and Gerolsteiner brands.
The Soft Drinks business increased unit sales by 2% year over year in theJanuary–September period as a result.
Sales of the Gabunomi lineup’s milk coffee and melon cream soda offerings werestrong, thanks to aggressive interactive sales campaigns based on mobile
communications content. Meanwhile, in-store campaigns featuring our Ribbon-chanpromotional character enabled us to expand shelf space allotted to our Ribbon softdrinks. Unit sales of Gerolsteiner naturally carbonated water from Germany surged
30% year over year as we increased brand awareness among consumers through6television commercials and sample distribution in major cities as well as throughin-store trial offers and repeat purchase promotions.
We continued to implement cost-structure reforms throughout the value chain in theaim of laying a stable earnings foundation for the business. Specifically, we continued
efforts to reduce costs associated with production, purchasing, and logistics
operations, especially by tapping synergies derived from our alliance with Pokka
Corporation.
In our food business, we expanded sales areas for Sapporo Potekaru non-friedpotato chips to include all of Honshu and the Shikoku region. We are continuing
efforts to increase sales of this new product, including expanding its lineup to six
flavors.
Overall, the Soft Drinks business achieved sales of ¥25.7 billion (up ¥2.2 billion, or 9%
year over year) and operating income of ¥0.6 billion (up ¥0.3 billion, or 96%).
Restaurants
The Japanese restaurant industry has entered a phase of intensifying pricecompetition as increasingly frugal consumers dine out less often.
In response, our Restaurants business has been working to attract customers backto its existing locations through differentiation strategies centering on campaigns
featuring various Sapporo beer brands, celebrating the 111th anniversary of thecompany’s founding, and offering seasonal menus. We also stepped up marketing tocorporate customers amid signs of a recovery in the corporate events market
segment. In addition, we closed 13 unprofitable locations over the first nine months ofthe year as part of ongoing profit-structure reforms.
During the period, we tapped further into group synergies by opening a second
Yebisu Bar location and a Brasserie Ginza Lion beer hall together at theKasumigaseki Common Gate complex in January. In July, we opened another
Brasserie Ginza Lion beer hall in Tokyo Station’s Yaesu underground shopping area.
We consequently had a total of 202 locations operating as of end-September.
During the January–September period, our Restaurants business recorded sales of¥20.6 billion (down ¥0.6 billion, or 3%, year over year) and posted operating loss ofless than ¥0.1 billion (versus a loss of ¥0.1 billion a year earlier).

7

Real Estate
In the Greater Tokyo office leasing market, rents remain in a downtrend, althoughsigns of improvement in vacancy rates have begun to emerge.
Rents for some of our existing office buildings have been adversely affected byfalling rents in some areas, but we responded by stepping up efforts to maintainoccupancy rates and rent levels while making additional cost cuts.
Real estate development activities during the term included completion of the
Shinjuku Square office building in June and continued work on an extension to our Pal
Urayasu fitness facility in Urayasu, Chiba.
Our property acquisitions remain focused on properties in Central Tokyo. In April,
we acquired the recently built Shibuya Sakuragaoka Square office building, which isoperating at high occupancy.
Real Estate business earnings during the first nine months of 2010 were boosted bya number of properties acquired in 2009, including the Rose City Higashi Sapporo
rental housing complex, the Ebisu Square office building, and the MLB café Tokyo, acommercial property in Ebisu.
In sum, the Real Estate business posted sales of ¥17.2 billion (up ¥0.3 billion, or 2%
year over year) and achieved operating income of ¥5.5 billion (up marginally).
2. Review of Consolidated Financial Condition
Consolidated Financial Condition
Consolidated assets totaled ¥499.1 billion at September 30, 2010, a ¥7.7 billion
decrease from the end of the previous fiscal year (December 31, 2009). The decreasereflects the net result of several changes over the past nine months, most notably an
increase in land holdings due to real estate acquisitions and a decrease in notes andaccounts receivable. The launch of a new sales and logistics system resulted in an
increase in other intangible assets and an associated decrease in construction inprogress.
Consolidated liabilities stood at ¥379.8 billion, an ¥8.4 billion decrease from
December 31, 2009. The decrease is primarily due to decrease in liquor taxes
payable and deposits received.
Consolidated net assets totaled ¥119.2 billion, a ¥0.6 billion increase from
December 31, 2009. The difference primarily reflects the dividend distribution at theend of the previous fiscal year and the booking of net income for first three quarters.

8Consolidated Cash Flows
Consolidated cash flows for the nine months ended September 30, 2010 were as
follows.
Operating activities provided net cash of ¥24.4 billion. The major sources of cash
inflows were income before income taxes and minority interests (¥6.8 billion),
depreciation and amortization (¥17.0 billion), a decrease in notes and accounts
receivable (¥9.9 billion), and an increase in notes and accounts payable (¥3.9 billion).
Major uses included decreases in liquor taxes payable (¥14.2 billion) and in deposits
received (¥6.9 billion).
Investing activities used net cash of ¥21.2 billion. Major investment outflows
included purchases of property, plant and equipment (¥15.4 billion) and of investment
securities (¥2.7 billion).
Financing activities provided net cash of ¥0.6 billion. The major financing inflows
were from proceeds from long-term bank loans (¥15.6 billion) and the issuance ofcorporate bonds (¥11.9 billion). The major outflows were repayments of short-termand long-term bank loans (respectively, ¥12.5 billion and ¥11.4 billion).
As a result of the above cash flows, cash and cash equivalents totaled ¥9.7 billion
as of September 30, 2010.
3. Consolidated Earnings Forecast
Our sales and profit forecasts for the fiscal year ending December 31, 2010, areunchanged from the forecasts announced on July 30, 2010.
4. Other(1) Changes affecting the consolidation status of material subsidiaries (scope of
consolidation)
None(2) Use of simplified accounting methods and/or accounting methods specific toquarterly consolidated financial statements
Simplified accounting
Calculation of deferred tax assets and deferred tax liabilities
If there have been no material changes in either the business environment or
temporary differences since the end of the previous fiscal year, the Company
uses the same earnings forecasts and tax planning strategies that it used in9the previous fiscal year to assess the likelihood of deferred tax assets being
used at a later date. If there have been material changes in the businessenvironment and/or in temporary differences since the end of the previous
fiscal year, the Company uses the earnings forecasts and tax planning
strategies that it used in the previous fiscal year but modifies them to allow for
the likely impact of these material changes.
Accounting methods specific to quarterly consolidated financial statements
Calculation of tax liabilities
The Company calculates tax liabilities by producing a reasonable estimate of
the effective tax rate after applying tax-effect accounting to income before
taxes and minority interests for the fiscal year, which encompasses the ninemonths ended September 30, 2010, and then multiplying income (loss) before
taxes and minority interests by this estimated effective tax rate. Note that
“deferred income taxes” are included under “income taxes”.
(3) Changes in accounting principles, procedures, and methods of presentation used
to prepare the quarterly financial statements
Changes in accord with amendments to accounting standards
Change in accounting standard for recognizing revenues from and costs ofcompleted construction
Effective the first quarter of the fiscal year ending December 31, 2010, theCompany adopted the Accounting Standard for Construction Contracts (ASBJ
Statement No. 15, December 27, 2007) and its accompanying Guidance on
Accounting Standard for Construction Contracts (ASBJ Guidance No. 18,
December 27, 2007) for recognizing revenues associated with contracted
construction. All construction contracts, including those in existence at the
beginning of the first quarter, for which certain elements were determinablewith certainty at end of the third quarter (September 30, 2010) were accounted
for with the percentage-of-completion method.
The impact of this change of profit and loss is minor.
The impact on each business segment is stated in the relevant sections of
this document.
(4) Notes on the going-concern assumption
None
10

3. Consolidated Financial Statement
1. Consolidated Balance Sheets(millions of yen)

AssetsI Current assets
1 Cash and cash equivalents
2 Notes and accounts receivable - trade
3 Marketable securities
4 Merchandize and finished products
5 Raw materials and supplies
6 Other
7 Allowance for doubtful receivables
Total current assets
II Fixed assets
1 Property, plant and equipment(1) Buildings and structures
Accumulated depreciation
Buildings and structures, net(2) Machinery and vehicles
Accumulated depreciation
Machinery and vehicles, net(3) Land(4) Construction in progress(5) Other
Accumulated depreciation
Other, net
Total property, plant and equipment
2 Intangible assets(1) Goodwill(2) Other
Total intangible assets
3 Investments and other assets(1) Investment securities(2) Long-term loans receivable(3) Deferred tax assets(4) Other(5) Allowance for doubtful receivables
Total investments and other assets
Total fixed assets
Total assets

11

September 30, 2010

December 31, 2009

AmountAmount9,908
49,767
6
13,976
9,448
10,321(166)
93,261

6,387
60,12047
13,258
9,689
12,966(192)
102,277

366,451(190,495)
175,955
181,701(142,464)
39,23691,334
2,573
20,570(15,406)
5,163
314,263361,276(184,898)
176,378
182,373(138,387)
43,98684,384
8,487
19,784(15,182)
4,601
317,838

15,903
11,092
26,995

14,926
6,967
21,89436,553
10,434
4,757
14,435(1,599)64,581
405,840
499,10235,39011,072
4,824
15,339(1,763)64,863
404,596506,874

(millions of yen)

Liabilities
I Current liabilities
1 Notes and accounts payable - trade
2 Short-term bank loans
3 Current portion of long-term debt
4 Liquor taxes payable
5 Income taxes payable
6 Accrued bonuses
7 Deposits received
8 Other
Total current liabilities
II Long-term liabilities
1 Bonds
2 Long-term bank loans
3 Deferred tax liabilities
4 Employees' retirement benefits
5 Directors’ and corporate auditors’ severance benefits
6 Dealers' deposits for guarantees
7 Other
Total long-term liabilities
Total liabilities
Net Assets
I Shareholders' equity
1 Common stock
2 Capital surplus
3 Retained earnings
4 Treasury stock, at cost
Total shareholders' equity
II Valuation and translation adjustments
1 Unrealized holding gain on securities
2 Deferred hedge gains (losses)
3 Foreign currency translation adjustments
Total valuation and translation adjustments
III Minority Interests
Total net assets
Total liabilities and net assets

12

September 30, 2010

December 31, 2009

AmountAmount24,06433,71630,00020,957
1,270
2,395
20,15043,222
175,777

20,18536,735
10,00035,242843
1,638
27,08437,523
169,252

35,843
100,437
12,0797,253
42
32,422
15,970204,049
379,827

43,843106,216
12,0977,487
45
32,011
17,330219,032
388,284

53,88646,316
20,897(1,169)119,930

53,88646,31820,286(1,131)
119,360

2,632(3)(5,128)(2,499)1,843
119,275
499,1022,637
0(3,627)(988)
218
118,590
506,874

2. Consolidated Statements of Income

I Net sales
II Cost of sales
Gross profit
III Selling, general and administrative expenses
1 Sales incentives and commissions
2 Advertising and promotion expenses
3 Salaries
4 Provision for bonuses
5 Retirement benefit expenses
6 Other
Total selling, general and administrative expenses
Operating income
IV Non-operating income
1 Interest income
2 Dividend income
3 Equity in income of affiliates
4 Foreign exchange gain
5 Gain (loss) on gift voucher redemptions
6 Other
Total non-operating income
V Non-operating expenses
1 Interest expense
2 Other
Total non-operating expenses
Ordinary income
VI Extraordinary gains
1 Gain on sales of property, plant and equipment
2 Gain on sales of investment securities
3 Reversal of provision for doubtful receivables
4 Reversal of removal costs
Total extraordinary gains
VII Extraordinary losses
1 Loss on disposal of property, plant and equipment
2 Impairment loss
3 Business structure improvement expenses
4 Loss on devaluation of investment securities
5 Loss on devaluation of inventories
Total extraordinary losses
Income before income taxes and minority interests
Income taxes
Minority Interests (losses)
Net income

13

Nine months ended
September 30, 2009
Amount283,109
196,117
86,992(millions of yen)
Nine months ended
September 30, 2010
Amount284,085
191,113
92,972

13,66813,085
13,3481,376
2,329
35,33979,148
7,843

14,965
13,574
13,5181,399
2,148
37,867
83,474
9,497

299
386
69
21
375
358
1,510

374
393
280
21
467
494
2,031

2,650
433
3,084
6,269

2,735
218
2,953
8,575

19
18
38

2
656
71
569
1,299

1,001
196
125
1,323
4,984
2,672
(7)
2,319

912
112
650
1,348
3,024
6,851
3,468
30
3,352

3. Consolidated Statements of Cash Flows(millions of yen)
Nine months ended
September 30, 2009
AmountI Cash flows from operating activities
1 Income before income taxes and minority interests
2 Depreciation and amortization
3 Amortization of goodwill
4 Increase (decrease) in employees’ retirement benefits
5 Increase (decrease) in allowance for doubtful receivables
6 Interest and dividend income
7 Interest expense
8 (Gain) loss on sales and disposal of property, plant and equipment
9 (Gain) loss on sales of investment securities
10 (Gain) loss on devaluation of investment securities
11 (Increase) decrease in notes and accounts receivable - trade
12 (Increase) decrease in inventories
13 (Increase) decrease in other current assets
14 Increase (decrease) in notes and accounts payable - trade
15 Increase (decrease) in liquor taxes payable
16 Increase (decrease) in deposits received
17 Other
Sub total
18 Interest and dividends received
19 Interest paid
20 Income taxes paid
21 Income taxes refunded
Net cash provided by (used in) operating activities
II Cash flows from investing activities
1 Purchases of investment securities
2 Purchases of newly consolidated subsidiaries
3 Purchases of property, plant and equipment
4 Proceeds from sales of property, plant and equipment
5 Purchases of intangibles
6 Other
Net cash provided by (used in) investing activities
III Cash flows from financing activities
1 Net increase (decrease) in short-term bank loans
2 Proceeds from long-term bank loans
3 Repayment of long-term bank loans
4 Proceeds from issuance of bonds
5 Cash dividends paid
6 Other
Net cash provided by (used in) financing activities
IV Effect of exchange rate changes on cash and cash equivalents
V Net increase (decrease) in cash and cash equivalents
VI Cash and cash equivalents at beginning of period
VII Cash and cash equivalents at end of period

14

Nine months ended
September 30, 2010
Amount4,984
16,855
767
10
(83)
(685)
2,650
982
(18)
196
17,137(2,364)
7,328(3,324)(15,376)(17,343)
3,149
14,864766(2,396)(1,754)
2,828
14,3096,851
17,057
872
(233)
(187)
(768)
2,735
909
(656)
1,348
9,996
(812)
386
3,991
(14,235)(6,934)
5,822
26,143894(2,641)(1,148)1,207
24,455(2,110)(16,713)372(2,868)(1,974)(23,295)(2,763)(1,608)(15,478)472(1,666)(209)(21,253)(12,755)
39,000(15,511)(2,741)
(52)
7,940
55
(990)
22,217
21,227(12,524)
15,600(11,473)
11,952(2,739)
(168)
646
(327)
3,520
6,267
9,788

4. Notes on the Going-concern Assumption
Not applicable

5. Segment Information
1. Segment Information by Business(millions of yen)
Nine months ended September 30, 2009 (January 1, 2009 – September 30, 2009)
Alcoholic
Soft
Real
Corporate andRestaurants
Total
Consolidated
Beverages
DrinksEstateeliminations
Net sales(1) Operating revenues(2) Intra-group sales and transfers
Total
Operating income (loss)

221,423
4,070
225,494
4,456

Alcoholic
Beverages
Net sales(1) Operating revenues(2) Intra-group sales and transfers
Total
Operating income (loss)

23,536
203
23,739354

21,236
21,236(181)

16,913
1,690
18,604
5,445

283,109
5,964
289,074
10,075(5,964)(5,964)(2,232)

283,109283,109
7,843

Nine months ended September 30, 2010 (January 1, 2010 – September 30, 2010)
Soft
Real
Corporate andRestaurants
Total
Consolidated
DrinksEstateeliminations

220,399
4,240
224,640
5,647

25,761
210
25,972694

20,634
20,634(14)

17,2891,690
18,9795,529

284,0856,141
290,226
11,856(6,141)(6,141)(2,358)284,085
284,085
9,497

Notes:(1) Segment classifications reflect the similarity of constituent businesses and take into account standard industry classifications in Japan.
(2) Main products in each segment
Business segment
Main products
Alcoholic Beverages
Beer, happoshu and new-genre beverages, wine, whiskey, shochu and other products,
distribution, brewing equipment, etc.
Soft Drinks
Soft drinks, other non-alcoholic beverages, and snack foods
Restaurants
Operation of beer halls and restaurants
Real Estate
Real estate leasing, real estate sales, operation of commercial facilities,
utility supplies, and operation of fitness clubs(3) Changes in Accounting Policies
Nine months ended September 30, 2009 (January 1, 2009 – September 30, 2009)
1) Measurement of Inventories
Effective the first quarter of the fiscal year ending December 31, 2009, the Company adopted the Accounting Standard for the Measurement of
Inventories (ASBJ Statement No. 9) and switched from the conventional cost method of measurement to a cost method that involves reducing
book values to reflect diminished profit potential.
Due to this change, in the nine months ended September 30, 2009, operating income in the Alcoholic Beverages business was ¥577 million
lower, and in the Soft Drinks business, ¥169 million lower, than the amounts that would have resulted with the previous method.

2) Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements
Effective the first quarter of the fiscal year ending December 31, 2009, the Company adopted the Practical Solution on Unification of
Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements (ASBJ Practical Issues Task Force Report No. 18).
Due to this change, operating income in the Alcoholic Beverages business was ¥279 million lower in the nine months ended September 30,
2009, than it would have been under the previous method.

15

Additional information
Change in Useful Life of Property, Plant and Equipment
The Company and its subsidiaries in Japan have reviewed the useful lives of property, plant and equipment following the 2008 revision ofJapan’s Corporation Tax Act, and effective the fiscal year ending December 31, 2009, began using new useful lives for depreciation ofmachinery assets.
Due to this change, in the nine months ended September 30, 2009, compared with what they would have been under the previous accounting
method, operating income in the Alcoholic Beverages business was ¥1,102 million lower; in the Soft Drinks business, higher by approximately ¥0 million; and in the Real Estate business, approximately ¥0 million lower. By the same comparison, operating loss in the Restaurants businesswas ¥10 million higher.

Nine months ended September 30, 2010 (January 1, 2010 – September 30, 2010)
Change in accounting standard for recognizing revenues from and costs of completed construction
Effective the first quarter of the fiscal year ending December 31, 2010, the Company adopted the Accounting Standard for Construction
Contracts (ASBJ Statement No.15, December 27, 2007) and its accompanying Guidance on Accounting Standard for Construction Contracts(ASBJ Guidance No.18, December 27, 2007) for recognizing revenues associated with contracted construction. All construction contracts,
including those in existence at the beginning of the first quarter, for which certain elements were determinable with certainty at end of the third
quarter were accounted for with the percentage-of-completion method.
The effect of this change on segment information was negligible.

2. Segment Information by Geographic Area
Nine months ended September 30, 2009 (January 1, 2009 – September 30, 2009) andnine months ended September 30, 2010 (January 1, 2010 – September 30, 2010)
Sales in Japan constituted more than 90% of consolidated sales.
Accordingly, geographical segment information has not been disclosed.

3. Overseas Sales
Nine months ended September 30, 2009 (January 1, 2009 – September 30, 2009) andnine months ended September 30, 2010 (January 1, 2010 – September 30, 2010)
Overseas sales constituted less than 10% of consolidated sales.
Accordingly, overseas sales have not been disclosed.

6. Notes on Significant Changes in the Amount of Shareholders’ Equity
Not applicable
7. Subsequent Events
Not applicable16