2015
Sapporo Group Business Results Presentation
for the Six Months Ended June 30, 2015

August 6, 2015

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

Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

1/26

Contents

1. First-Half 2015 Topics

2. Overview of First-Half 2015 Results

Reference
1. Sapporo Group Management Plan 2015 - 2016
2. Supplementary Information to First-Half 2015 Results and Data

Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

2/25

1. First-Half 2015 Topics

Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

3/25

First-Half 2015 Group Topics
First-Half 2015 Results

Operating income: down ¥2.2 billion Y-o-Y

The group posted consolidated operating loss of ¥1.2 billion (compare with operating income of ¥1.0 billion
a year earlier ). Japanese alcoholic beverages business income decline ¥1.9 billion year over year
Sales of the Group’s beer and beer-type beverages were about 92% of the same period a year ago
due to increase in new products and intensifying competition in happoshu and new genre

Expanding the strengths
The Group continued to invest in the core brands, and sales of beer were more or less at the same level
as the previous year
Domestic soft drinks were up 3% year-on-year. Sales of lemon-based drinks grew significantly on theback of new launches such as ENEGIE
Occupancy rate at Yebisu Garden Place to recover within the year. Started full-fledged renovation of
the commercial area.

New growth strategy implementation
Started consolidating Country Pure Foods, Inc. from February, strengthening U.S. soft drinks business.
Overseas net sales( excluding liquor tax) to total ratio:24.3%
 Partnership agreements with Treasury Wine Estates Japan for wine imports and Taittinger for
champagnes
Strategy review phase corresponding to the environmental changes in the Vietnam business
Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

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First-Half 2015 Topics (1)Japanese Alcoholic Beverages
 Sales volume of beer and beer-type beverages down 8% y-o-y (total demand down 1%)－ intensified competition in happoshu and new genre
Y-o-y change in beer sales volume%

Summer: strong in industrial use
and seasonal gift exchangeBlack Label
RelaunchJapanese beer business<Beer> Jan – Jun down 0.4% y-o-y (total demand down 2%)

Total demand

Sapporo
Jan

Feb

Mar

Apr

May

Jun

Y-o-y change in happoshu + new genre sales volume%<Happoshu + new genre> Jan – Jun down 16% y-o-y(total demand down 1%)

Total demand
SapporoJan
10,000 cases

Feb

Mar

Apr

Canned products up 2% y-o-y on impact of relaunch of Black Label
Perfect Black Label Antenna Shop opened in Osaka, expanding sales
in western JapanJan – Jun beer breakdown 2014: 52%→2015: 56% (industry 48%)

May


Jun

Change in monthly sales volume of Goku Zero

Increase in new products from competitors primarily of functional
beverages and intensifying competition
Goku Zero Jan – Jun sales volume: 1.88 million cases(2.9 million cases in new genre in previous year)
Mugi to Hop The gold Down 14% y-o-y due also to reaction torelaunch of last year 100% y-o-y in Apr – Jun<Proposing new value in the functional beverage market>


SAPPORO+ (plus)
First ever non-alcoholic + FOSHUMay 26 to Jun sales volume of 280,000 cases (large bottle count)

New genre Jan - Jun

Happoshu Jul - Dec
Happoshu
Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

5/25

First-Half 2015 Topics (2)International
 North American beer business is on a recovery track; competition intensifying in
Vietnamese premium beer market , considering new development
North American beerbusiness

Focus on premium market,
sales increasing

North American beer sales volume for Jan-Jun
Totaldemand in
CanadaSleeman Premium
total 103%

Value

Total
demand in

Sapporo
USA

U.S.

U.S. soft drinks
business

Pursuing synergies

Silver Springs Citrus
Stake2014-end
capital51%

32.5 mil＄Acquired in 20122014
net sales

No. ofplantsMain products

11.6 billion yen 1 (Florida) Private brand chilled fruit juice
drinks for major retailers

Country Pure Foods

Consolidation started on Feb 24, 2015

Stake 2014-end capital 2014 net sales Acquisition cost
51%

37.1 mil ＄



2012
2013
2014
2015
Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

9 years

Main products

4 (Ohio, Florida, Connecticut, Texas)

Commercial-use fruit juice drinks, contractbased products for major manufacturers

Competition intensifying
due to new entries, etc.


4.8 billion yen 3.8 billion yen

Amortization period

No. of plants

Vietnamese beer business
Domestic sales volume in Vietnam for Jan-Jun
The value in 2013 is set as 100

155 mil＄

Goodwill

Domestic sales volume in
Vietnam was down 5% y-o-y(exports were up 20%)
Competitors entered into thepremium beer market, fuelingcompetition
Considering reviewing
business strategy

Vietnamese beer market categories by price●Sales price per 330ml can
100
yen
100円

<Premium>

7070円
yen

<Mainstream>

Sapporo, Heineken,
Budweiser, etc.

Tiger, Saigon Special., etc.

<Economy>
4040円
yen

Saigon Beer, 333, etc.

6/25

First-Half 2015 Topics (3)Food & Soft Drinks
 Domestic soft drinks sales volume were up 3% y-o-y (total demand was unchanged), while both
domestic food and overseas soft drinks businesses finished 1H with increased sales
Domestic Food and Soft Drinks
Domestic food and soft drinks cumulative sales volume for Jan-Jun (y-o-y change)
TotaldemandLemon-based drinks and unsweetened tea led sales
increase, coffee drinks also recovered Domestic soft drinks: Sales volume of 21.48 million cases

POKKA SAPPORO Lemon-based drinks: New product Kireto Lemon ENERGIE
and other Kireto Lemon series were strong: up 34% y-o-y Coffee drinks: Price review of vending machines contributed: unchanged
 Instant soup: Strengthened the lineup of Jikkuri Kotokoto Kongari Pan
series including a collaboration with Koikeya: up 19%

Lemon-based
Instant soup (incl.
products
soups in a cup)
(flavorings)
Total demand data: Source – Total for SM CVS formats by Intage SRI(nationwide retailer panel research)
Jan–Jun 2015 y-o-y comparison of cumulative sales amount for the lemon-based products market (Sapporo’s definition) and instant soup market
Domestic soft drinks

Overseas Soft Drinks

Strong overseas net sales up 4% year on year
(local currency base)Overseas soft drinks cumulative sales for Jan-Jun (local currency)

POKKA brand net sales ratio(Jan-Jun)

SG$ millions<Singapore’s non-chilled juice market>
Top market share for 12 consecutive
months*Exports
48%

WithinSingapore
52%

2014

2015

Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

Growing into a pillar following teabased drinks*12 months through Mar 2015
Based on the data from Nielsen MarketTrack(Copyright C 2015, The Nielsen Company)

7/25

First-Half 2015 Topics (4)Restaurants
 The restaurants business in Japan maintained net sales at the same level as the previous year
while it reduced the number of unprofitable restaurants
Restaurants business in Japan
Billionyen

Trends of net sales and number of
Sapporo Lion outlets in Japan
12.5

12

11.8

12.1

11.8

Renewal open in April
Yebisu Bar 1st outlet in Hokkaido

outlets
11.8

 Sapporo Lion comparable-store sales were

10.6

up 4% y-o-y8 Jan-Jun: new opening 1: format change 2
 Harsh environment as raw ingredients andpersonnel expenses rose, driving forward
closure of unprofitable restaurants

402010 2Q

2011 2Q

2012 2Q 2013 2Q

Net sales

2014 2Q 2015 2Q

Overseas restaurants business

Number of outlets

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

Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

GINZA LION BEER HALL conveying Sapporo
brand’s taste in with 2 outlets in Singapore
1st: the Rodyk outlet

2nd: Suntec outlet

8/25

First-Half 2015 Topics (5)Real Estate Yebisu Garden Place improved office occupancy rate. Drive forward refurbishment to boost
attractiveness of the area
<Yebisu Garden Place> Tenant leasing has been progressing smoothly and theoccupancy rate is expected to recover within 2015
 Value up promotion
 New-concept movie theater opened in March Refurbished and reopened the first basement of Glass
Square dining area in June
It houses six new restaurants, including those opening forthe first time in Japan
 Planning to refurbish the dining areas on 38th and 39th floors.

Trend of average occupancy rate ofYebisu Garden Place office space(contract basis)
2014
1~2Q

2014
3~4Q

2015
1Q

2015
2Q

2015
3Q
（FC)

2015
4Q
（FC)

2016
1~2Q
（FC)

93%

77%

87%

91%

93%

98%

99%

First basement Glass Square
Exterior design of the Ginza 5-chome redevelopment project<Ginza 5-chome redevelopment project>
 Started construction of the new building in March with an eye on
opening in Summer 2016
• Redevelopment plan of the site facing Ginza 4-chome crossing, thecenter of Ginza• 11 floors above ground, 2 below Total floor space 4,232㎡⇒7,082㎡• Building a commercial facility that will be Ginza’s new land mark andinformation dissemination center.
Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

9/25

2. Overview of First-Half 2015 Results

Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

10/25

Overview of First-Half 2015 Results (1)Special factors in 1Q and 2Q business results<Net sales><Japanese Alcoholic Beverages><Restaurants>
 Change in reportable segment: New Sanko Inc.
 Changed from Japanese Alcoholic Beverages to Restaurants
 The impact on net sales and operating income is minor.
（2014 result has been retroactively adjusted to reflect this change)<International>
Foreign exchange +2.6billion yen Account period change: Silver Springs Citrus
 Initially, 6 months from Oct 2014 to Mar 2015 for 2H→ consolidating the results for 9 months from Oct 2014 to Jun 2015
 Impact: ＋approx. 2.3 billion yen(Foreign exchange ＋0.4 billion yen, total 2.7 billion yen）

 Newly consolidation: Country Pure Foods<Operating income><International>
 Account period change: Silver Springs Citrus
 Consolidating the results for 9 months from Oct 2014 to Jun 2015

 Newly consolidation: Country Pure Foods
 Consolidation started from Feb 24, 2015, when the stake was
acquired Impact: -approx. 0.1 billion yen<Real Estate>
 Sale of sports facilities operator business.
Liquidation of property
 In Dec 2014, sold the sports business and some lease properties In Feb 2015, sold of Shibuya Sakuragaoka Square trust
beneficiary right Impact: total of –approx. 0.3 billion yen

 Consolidation started from Feb 24, 2015, when the stake was acquired Impact: ＋approx. 6.2 billion yen<Food & Soft Drinks> Foreign exchange +0.9.6billion yen
 Sale of overseas restaurants business In Dec 2014, sold the restaurant business in Hong Kong
 Impact: -approx. 2.6 billion yen (Impact on operating income is minor )<Real Estate>
 Sale of sports facilities operator business. Liquidation ofproperty In Dec 2014, sold the sports business and some lease properties In Feb 2015, sold of Shibuya Sakuragaoka Square trust beneficiary right Impact: total of –approx. 1.0 billion yen (sports -0.6 , property sale -0.4 )Copyright, 2015SAPPORO HOLDINGS LTD. All rights reserved.

<Impact of foreign exchange rates>Net sales: approx. + 3.5 billion yen(International +2.6, Food & Soft Drinks +0.9)

Operating income: slightly negative
Average rateduring the period(Jan-Jun)

2014

2015

US＄

102.46120.31

CAN＄

93.40

97.33

11/25

Overview of First-Half 2015 Results (2) Net sales: up YoY

・ Japanese Alcoholic Beverages: sales volume of beer andbeer-type beverages significantly declined from theprevious year due to the impact of competition inhapposhu and new genre.
・International: sales increased significantly year on year,
as SSC was consolidated for nine months due to thechange in the account period and new consolidation of
CPF was started in Feb 24, also partly due to the foreignexchange rate impact.

 Operating income: down YoY

・ Japanese Alcoholic Beverages: profit declined due2015 2Q

126.8

121.6

(5.1)

(4.0)%

International

23.7

34.7

11.0

46.5%

Food & Soft Drinks

62.7

63.9

1.1

1.8%

Restaurants

12.7

12.8

0.0

0.7%

Real Estate

10.9

9.8

(1.1)

(10.1)%

Other

2.8

2.8

(0.0)

(0.7)%

239.8

245.8

6.0

2.5%

2.8

0.7

(2.1)

(75.0)％

1.3

(0.6)

(1.9)

―

(0.5)

(0.7)

(0.1)

―

0.6
(1.2)

0.3
(1.1)

(0.2)
0.1

(43.5)％
―

(1.8)

(1.4)

0.3

―

Restaurants

(0.3)

(0.2)

0.1

―

Real Estate

4.3

3.7

(0.5)

(13.1)%

Other

0.1

(0.0)

(0.1)

―

(1.9)

(2.0)

(0.0)

―

1.0

(1.2)

(2.2)

―

0.2

(1.4)

(1.7)

―

(10.9)

1.1

12.0

―

Consolidated net sales

largely to sales decline in beer and beer-type beverages Operating income before goodwill
amortization
despite cost reduction efforts primarily targeting fixed
Japanese Alcoholic
cost
Beverages
・ International: loss posted due to the steep rise in cost oforanges at the U.S. soft drinks business
International
・ Food & Soft Drinks: profit rose due to increased sales
North America, other
Vietnamvolume of soft drinks in Japan and overseas
・ Real Estate: profit declined due to property sales in 2014
and 2015 as well as temporary decline in occupancy rate
Food & Soft Drinksof Yebisu Garden Place Net income: up YoY

Extraordinary income: 2015 ¥7.3 billion from the sale oftrust beneficiary right of Shibuya Sakuragaoka Square

Extraordinary loss: 2014 ¥2.3 billion in cost for demolition,
General corporate
removal, etc. in the Sapporo Ginza Building
redevelopment project, and recording of 11.6 billion
Consolidated operating income
yen as a difference in liquor tax amount due to revised
Consolidated ordinary income
tax rate category for Goku Zero.
Consolidated net income
Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

YoY change(amount, %)2014 2Q(billions of yen)Japanese Alcoholic
Beverages

12/25

Overview of First-Half 2015 Results(3)Factors Contributing to Change in Net sales
Japanesefood &Soft
drinksSales
increase(billions of yen)

Increase

Decrease

North
North America
Foreign
America SoftＳＳＣ
exchangeBeerdrinksaccount period
2.6change:0.8(0.8)
3 months

2014 2Q
Consolidated
Net sales

239.8

1.9

Foreignexchange
0.9

0.6
Overseas
Soft drinks
Sales
increase(2.6)

Sale ofrestaurants
business inHong Kong

2.3

ＣＰＦ
Beer andnewly
beerconsolidation
genre
Other
sales
6.2
alcoholicvolumebeverages
declinesales
volume(4.8)
decline
(0.2)

(1.0)
(0.1)

1.1

(1.1)

International

Food & Soft Drinks

Real Estate

Copyright, 2015SAPPORO HOLDINGS LTD. All rights reserved.

2015 2Q
Consolidated
Net sales

245.8（＋6.0）

Sales
decline:YGP
Sales
increase:
Ebisu First
Square

11.0

(5.1)

Japanese Alcoholic
Beverages

Sale of somerental properties
and sports
facilities operator
business

13/25

Overview of First-Half 2015 Results (4)Factors Contributing to Changes in Operating Income
2014 2Q
Consolidated
Operatingincome(billions of yen)2015 2Q
Consolidated
OperatingincomeIncrease Decrease

1.0±0
Beer andbeer-genre
sales volume
decline（2.9）

Nonalcoholicbeer sales
Other Costs
increase/
Sales reduction
Production
promotion
costs
costs
reduction
increase

0.4

North America
Increase inVolume

Wine,
Other

0.2

Japanesefood &Soft
Ingredientsdrinkscost
Sales
increasevolumeincrease

(0.3)

0.8

(0.5)
(0.3)

(1.2）
y-o-ｙ
（2.2)
Overseas
Soft drinks
Sales
volumeincrease

0.2

0.9

North America
Higheringredients costSales
promotion
costs
increase

0.3

Sale of somerentalproperties

0.1

Comparablestore sales
increase

(0.5)

(1.9)
Japanese Alcoholic Beverages

Copyright, 2015SAPPORO HOLDINGS LTD. All rights reserved.

(0.1)
International

国際

(0.3)
(0.2)
Sales
decline:YGP
Sales
increase:
Ebisu First
Square

0.3

0.1

(0.5)

Food & Soft Drinks

Restaurants

Real Estate

14/25

Overview of First-Half 2015 Results(5)Implementation Status of Strategic Investments(Including Ordinary Capex, on a cash basis)①<Capital expenditure and lease fees>
Consolidated total: Approx. ¥15.0 bn
 Property, plant and equipment, intangible assets, lease fees, etc.
Major items:
 Ojima factory(Japanese Alcoholic Beverages): approx.¥0.3 billion,
Nagoya factory (Food & Soft Drinks): approx.¥0.5 billion ,Ginza 5-chome redevelopment project (Real Estate): approx.¥3.7
billion, Ebisu First Square (Real Estate): approx.¥1.8 billion,
Yebisu Garden Place(Real Estate): approx.¥1.9 billion,
Lease fees((Food & Soft Drinks):approx.¥1.5 billion② <Other investments>
Consolidated total: Approx. ¥ 10.0 billion
 Long-term prepaid expenses, investment securities, compensation
expenses, etc.
Major items:
 Long-term prepaid expenses (Japanese Alcoholic Beverages, Food &Soft Drinks) : approx. ¥2.2 billion
Consolidated subsidiaries :approx.. ¥6.6 billion (acquired CPF ¥4.8bn),
Investment securities, etc.: approx. ¥1.1 billion

Direction of Long-Term Strategic Investments
 We will continue to actively carry out strategic
investments for growth.
 The scale of strategic investment from 2012 to 2016 isanticipated to be from ¥150 billion to ¥200 billion (inprinciple, funded from accumulated operating cashflow).
 Trend of Strategic investment (Jan-Jun)– Including ordinary capex (approx. half of strategic
investments)– 2012 strategic investment total: Approx. ¥53.3 bn(Full year: Approx. ¥ 65.7 bn)– 2013 strategic investment total： Approx. ¥ 12.5 bn(Full year: Approx. ¥ 23.5 bn)– 2014 strategic investment total： Approx. ¥14.8 bn(Full year: Approx. ¥ 29.5 bn)– 2015 strategic investment total：Approx. ¥25.0 bn
2015 plan: ¥35.1 bn (capex ¥19.8 bn, other investments ¥15.3bn)①＋② < Jan-Jun 2015 strategic investment total (incl. ordinary capex, on a
cash basis) > Approx. ¥25.0 billion

Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

15/25

Reference 1: Sapporo Group Management Plan
2015-2016*There has been no changes to the figures announced on
February 12, 2015.

Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

16/25

2015-2016 Targets Based on Current Businesses
Management plan2014 results2015 targets

2016 targets

New management
framework

Consolidated net sales*incl. liquor tax¥518.7 bn¥545.7 bn¥579.5 bn¥600.0 bn¥18.4 bn

¥20.7 bn¥28.0 bn

Consolidated operating
incomeConsolidated ordinary
income¥14.7 bn

¥16.3 bn

¥23.5 bn

¥14.5 bn

¥15.2 bn

¥22.1 bn－

Consolidated net income¥0.3 bn¥8.0 bn¥11.4 bn－

Consolidated operating
income(before goodwill amortization)

D/E ratio

1.5 times

1.3 times

1.2 times

2.7 ％

7.8 ％

9.6 ％

ROE
(before goodwill amortization)

ROE¥40.0 bn

Around 1:1

8% or higher
0.2 ％

5.0 ％

6.9 ％

*Assumed exchange rates: 2015-2016: US$ = ¥113.00, CAN$ = ¥99.00
Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

17/25

2015-2016 Targets Based on Current Businesses by Segment
Management Plan

2014 results2015 targets

2016 targets¥281.8 bn¥290.2 bn¥305.0 bn¥49.6 bn

¥67.8 bn

¥76.0 bn

¥133.4 bn¥133.7 bn¥141.7 bn

Restaurants¥26.3 bn

¥27.2 bn

¥27.5 bn

Real Estate¥21.5 bn

¥20.8 bn

¥22.8 bn

¥5.9 bn¥6.0 bn¥6.5 bn¥518.7 bn¥545.7 bn¥579.5 bn¥10.2 bn

¥9.5 bn¥12.0 bn

International¥0.1 bn¥1.0 bn¥2.6 bn

Food & Soft Drinks¥0.1 bn¥0.7 bn¥1.4 bn

Restaurants¥0.2 bn¥0.9 bn¥1.3 bn

Real Estate¥7.6 bn¥7.9 bn¥9.9 bnOther¥0.1 bn¥0.2 bn¥0.2 bn

Eliminations and Corporate¥(3.9) bn¥(3.9) bn¥(3.9) bn

Consolidated total¥14.7 bn

¥16.3 bn

¥23.5 bn

¥18.4 bn

¥20.7 bn¥28.0 bn

Japanese Alcoholic Beverages
International

Net sales

Food & Soft Drinks

Other
Consolidated total
Japanese Alcoholic Beverages

Operating income

Consolidated total(before goodwill amortization)*Assumed exchange rates: 2015-2016: US$ = ¥113.00, CAN$ = ¥99.00
Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

18/25

Reference 2: Supplementary Information toFirst-Half 2015 Results and Data

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

Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

19/25

Reference Material (1) Japanese Alcoholic Beverages
Beer and Beer-type Beverages Data
＜Beer and beer-type beverages sales volume YoY change (Jan-Jun)＞ ＜Beer and beer-type beverages core brand sales volume
YoY change (Jan-Jun)＞
10,000 cases

Beer, happoshu, new genre

Total
demandBeer

Beer, happoshu, Black Labelnew genre

SapporoYebisuMugi to Hopbrand total
The gold<30th anniversary of the 100% maltbeer this year>
Sapporo Classic＜Beer and beer-type beverages net sales(Jan-Jun; incl. liquor tax)＞(billion yen)

100% malt, sales limited to Hokkaido
14 consecutive years of sales growth (FY2014)
Jan-Jun YoY change: up 7%

2014 1H

2015 1H

change

Beer

68.0

67.8

(0.1)

Happoshu

1.8

8.7

6.9

New genre

36.5

24.5

(12.0)

Sapporo －0℃

Total

106.4

101.1

(5.2)

New genre, Launched July

<Offering new product >Sales target: 1.2mn cases
Copyright, 2015SAPPORO HOLDINGS LTD. All rights reserved.

20/25

Reference Material (2) Japanese Alcoholic Beverages
Multilayers
Jan-Jun sale value (billion yen)
Wine Japanese
Imported
wine

Strategic alliances with global brands
Strategic partnership agreement with Treasury Wine
Estates Japan (TWE) Growing fine wine* To introduce global brands into the market
 Distribution in Japan will start one after another from July 2015
onwards
 Sales agreement for 7 more brands*Medium- to high-priced wine costing 1,500 yen or more[Core brands]
・Penfolds : Australian wine・Matua : New Zealand wine・Chateau St.Jean: American wine

Strategic partnership agreement with Taittinger
 Sales agreement with world-class champagne manufacturer
Taittinger
 Distribution in Japan will start one after another from
September 2015 onwards[Core brands]
・Comtes de Champagne
・Brut Reserve
・Nocturne

6.2

6.0

5.1

5.5

5.7

2.8

3.1

3.3

2.3

2.3

2.3

2.7

2011

2012

2013

2014

2.5

2.6

2.6

2013

2014

2015

6.2

6.8

6.9

2013

2014

2015

Spirits

3.5

3.4

2.5

2015

2.1

0.7

2011

2012

Japanese
5.1
liquor
4.2

2011

RTD

2012

2.3
1.8

2.0

1.2

1.0

2011
Copyright, 2015SAPPORO HOLDINGS LTD. All rights reserved.

wine

2012

2013

2014

2015

21/25

Reference Material (3) International business
Data
SLEEMAN Net Sales in Local Currency (Jan-Jun)(before elimination of inter-company transactions)

Overseas expansion of SAPPORO brand
Trend of overseas sales volume of SAPPORO brand products (Jan-Jun)(10,000 cases)

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

Sales Breakdown by Geographic Area
(Jan-Jun)
2010

Oceania,
etc.

2015

Oceania,

Asia

etc.

Asia

North
America

North
America

North America: Canada, U.S.
Asia: Vietnam, Singapore, South Korea, etc.
Oceania, etc.: Australia, Europe, etc.
Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

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Reference Material (4) Food & Soft Drinks
Data
Food & Soft Drinks<Soft Drinks (Japan): POKKA SAPPORO Food & Beverage Ltd.>POKKA SAPPORO Food & Beveragesales composition (Jan-Jun)

Japanese soft drinks sales volume
composition by genre (Jan-Jun)

Soft drinks
Other
Food

<Lemon-based drinks> Japanese soft drinks sales composition
by sales channel (Jan–Jun)

Coffeedrinks 25%
Retailer

Water¥39.9 billion

Carbonated

21.48
millioncases

Lemon-based
drinksUnsweetened
tea<Soft Drinks (overseas): POKKA Corporation (Singapore) Pte. Ltd.>

Enhancing production structure for sales expansion
Production
startSingapore
Malaysia

Remarks

1977

Own plant, halal certified

1993

JV with local company, halal certified

Malaysia new

Autumn 2014 Own plant, halal certified

Indonesia

Summer 2016 JV with local company

MyanmarSpring 2016

Production outsourced to local company

Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

21.48
millioncases

Vending
machines**Vending machines (end of Jun)Own brand machines : about
95,000 ＋ Multi-brand Machines<Restaurants (Domestic): POKKA CREATE Co., Ltd.> CAFÉ de CRIÉ has been actively pursuing opening
new outlets in new areas and proposal of new menu
items. Net sales have been up 7% on year and strong
 Aiming to expand in new markets such as intrahospital and suburban-type cafes.
Outlets: 180 (as of June 30, 2015)(Directly operated: 92 outlets; FC: 88 outlets)
Hokkaido 3, Kanto 99, Tokai 38
Kansai 29, Kyushu 8, Shikoku 3

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Reference Material (5) Real Estate
Data
Real Estate<Real Estate for Lease as of Dec. 31, 2014>

Occupancy rates are averages for Jan–Jun 2015 (contract basis).
Major rental properties inTokyo’s 23 wards

Site area(m2)

Floor area (m2)Occupancy rate(%)

Yebisu Garden Place *1

56,943

298,00789%

Ebisu First Square

2,596

15,496100%

Ebisu Square

1,561

9,126

100%

Strata Ginza *2

1,117

11,411100%

No. of floors

Balance sheet value at December 31, 2014 : approx. ¥207.8 billion*

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

Fair value at December 31, 2014 : approx. 348.2 billion yen*Including Shibuya Sakuragaoka Square sold in Feb. 2015
(Book value as of the sale: approx. 9.6 billion)

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

Operating income(billions of yen)

Jan-Jun 2014

Jan-Jun 2015

(billions of yen)

Jan-Jun 2015

ChangeTokyo’s 23
wards

5.5

5.1

(0.4)

Other areas
Real estate leasing
total

0.9

0.8

(0.0)

6.4

6.0

(0.4)

－
(0.0)
6.4

－
(0.2)
5.8

－
(0.1)
(0.5)

Real estate leasing

Tokyo’s 23
wards

3.9

3.5

(0.4)

Other areas
Real estate leasing
total

0.5

0.5

(0.0)

4.5

4.0

(0.5)

Real estate total

－
(0.2)
4.3

－
(0.3)
3.7

－
(0.0)
(0.5)

Total

EBITDA =operating income + depreciation and amortization

Jan-Jun 2014

ChangeReal estate leasing

Other operations*

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

Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

Real estate total
Other operations*
Total* “Other operations” includes back-office operations.

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

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

Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved.

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