[This English translation is an abridged version of the original notice in Japanese. In the event of any discrepancy, the Japanese version prevails.] (Securities code: 2501) March 5, 2024 To Our Shareholders Masaki Oga President and Representative Director Sapporo Holdings Limited 20-1, Ebisu 4-chome, Shibuya-ku, Tokyo Notice of Convocation of the 100th Ordinary General Meeting of Shareholders Dear Sirs/Madams: You are cordially invited to attend the 100th Ordinary General Meeting of Shareholders of Sapporo Holdings Limited (the "Company") to be held as described below. We would be grateful if you would take the time to exercise your voting rights by one of the methods described on pages 3 and 4.
Description
Date and time of the meeting: Place of the meeting: Purpose of the meeting: Matters to be reported:
2. Report on the non-consolidated financial statements for the 100th business term (from January 1, 2023 to December 31, 2023).
● As for the convocation of this General Meeting of Shareholders, in addition to the delivery of the (written) convocation notice, the Company takes measures to electronically provide the information contained in the reference materials for the General Meeting of Shareholders (matters to be provided electronically) pursuant to laws and regulations and the provisions of Article 15 of the Articles of Incorporation of the Company. The content of the convocation notice has been published on the Company website and the Tokyo Stock Exchange website as the "Notice of Convocation of the 100th Ordinary General Meeting of Shareholders." ● If any amendments are made to the matters to be provided electronically, they will be posted on the Company website and the Tokyo Stock Exchange website.

Guidance Notes on the Exercise of Voting Rights
Voting rights exercised at the General Meeting of Shareholders represent an important right of the shareholders by which the shareholders can participate in business management of the Company. We cordially request our shareholders to participate in the General Meeting of Shareholders by exercising voting rights using the following methods.
1. Exercise of Voting Rights via the Internet
Deadline: Please register by no later than 5:30 p.m. on Wednesday, March 27, 2024 If you wish to exercise your voting rights via the internet, access the website for exercising voting rights from terminal devices such as your smartphone or personal computer, etc. and register your approval or disapproval in respect of each proposal by following the directions on the screen. Exercise of Voting Rights Using Smartphones --------------------- You may use a smartphone to scan the "QR Code to Log into Website for Exercising Voting Rights by Smartphone" located on the bottom right of the voting rights exercise form. After doing so, please register your approval or disapproval in respect of each proposal by following the directions on the screen. For details on exercising voting rights using a smartphone, please refer to the leaflet. * QR Code is a registered trademark of DENSO WAVE INCORPORATED. Exercise of Voting Rights by Personal Computer, etc. ----------------https://soukai.mizuho-tb.co.jp/ Please directly access the website for exercising voting rights, use the "login ID" and "temporary password" described in the voting rights exercise form and register your approval or disapproval in respect of each proposal by following the directions on the screen. If you exercise your voting rights both by mail (in writing) and via the internet, we will only accept, as effective, the exercise of your voting rights via the internet. If you exercise your voting rights more than once via the internet, we will only accept, as effective, the last exercise of your voting rights. The cost of internet access (access fees to internet service providers, telecommunications fees, etc.) will be borne by you, the shareholder. Depending on your internet operating environment, you may be unable to use the website for exercising voting rights.
For Inquiries with Respect to the Exercise of Voting Rights via the Internet
Please contact:
Internet Help Dial [Japanese only] Stock Transfer Agency Department Mizuho Trust & Banking Co., Ltd. Telephone: 0120-768-524 (toll-free, domestic calls only) Operating hours: 9:00 a.m. to 9:00 p.m.
To Institutional Investors
In addition to the above-mentioned method for exercising voting rights via the internet, the electronic platform for exercising voting rights, which is operated by Investor Communications Japan Inc. (ICJ, Inc.), is available to those who have applied to use such platform beforehand.
2. Exercise of Voting Rights by Mail
Deadline: Please post to arrive by no later than 5:30 p.m. on Wednesday, March 27, 2024 * As the enclosed voting rights exercise form is a postage-paid postcard, the processing time inside the post office may take up to a week longer than regular mail. Please mail it early to ensure it is delivered on time. Please indicate your approval or disapproval in respect of each proposal on the voting rights exercise form and send the form back to us (without affixing a stamp). If you do not indicate your approval or disapproval in respect of each proposal, it shall be deemed that you have voted in favor of the proposal.
3. Exercise of Voting Rights via Attending the Meeting
Date and time of the meeting: Thursday, March 28, 2024 at 10:00 a.m. (The reception desk is presently scheduled to open at 9:00 a.m.) Place of the meeting: The Garden Hall (inside Yebisu Garden Place) 13-2, Mita 1-chome, Meguro-ku, Tokyo Please submit the voting rights exercise form to the receptionist at the place of the meeting on the day of the meeting. We kindly ask you to bring this Notice of Convocation as reference documents describing the planned proceedings on the day.
Information on the Live Streaming of the General Meeting of Shareholders
Information on the live streaming of the General Meeting of Shareholders
We will live stream the General Meeting of Shareholders of the Company via the Internet as detailed below so that shareholders can view it from places such as their home. Shareholders may not exercise voting rights, ask questions or propose motions through the live stream. Please exercise your voting rights in advance by mail or via the Internet.

Proposal No. 1 – Dividends from Surplus
The Company considers the appropriate return of profits to its shareholders as a fundamental aspect of management policy and has adopted a basic policy to undertake stable dividend payments taking into consideration the Company's performance and financial condition. After taking into consideration the Company's performance in the current business term, the outlook for the business environment and other factors, the Company intends to provide year-end dividends from surplus of 47 yen (dividend increase of 5 yen) per share for the current term. 1 Category of dividend assets: Cash 2 Matters relating to the allocation of dividend assets and the total amount of such allocation: Dividend per share of the Company's common stock: 47 yen Total amount of dividends: 3,667,168,749 yen 3 Date on which the dividends from surplus will take effect: March 29, 2024
At the conclusion of this general meeting, the terms of office of all eight (8) Directors (including four (4) Outside Directors) (excluding Directors who are Audit & Supervisory Committee Members. The same applies in this proposal) will expire. The Company therefore proposes the election of eight (8) Directors (including five (5) Outside Directors). As for the constitution of the Board of Directors of the Company, if this proposal is approved, seven (7) out of total eleven (11) Directors (including Directors who are Audit & Supervisory Committee Members) will be Independent Outside Directors, and Independent Outside Directors will represent a majority in the Board of Directors. In regard to this proposal, the Company's Audit & Supervisory Committee verified and examined the ideal approach to supervision and performance of duties by the Board of Directors, the nomination criteria of candidates for Director and other factors. As a result, it was concluded that the deliberation and decision- making processes related to the nomination of each candidate are appropriate, and that all candidates are well-qualified for their positions.
The candidates for Director are as follows:
2. Each candidate has no special interest in the Company. 1. The number of shares held in the Company is the effective number of shares held, including shares held through Sapporo Group's Officer Stock Ownership Plan and Sapporo Group's Employee Stock Ownership Plan. 3. The Company has entered into limited liability contracts, as stipulated in Article 427, Paragraph 1 of the Companies Act, with Mr. Tetsuya Shoji, Mr. Toshihiro Uchiyama and Mr. Makio Tanchashi. Should the reelection of the said three (3) persons be approved, the Company intends to continue the said contracts. In addition, should the election of Mr. Kotaro Okamura and Mr. Ryotaro Fujii be approved, the Company also intends to enter into a limited liability contract of a similar kind with them. The amount of limit of liability which is stipulated in these contracts is to be the minimum liability amount which is stipulated in Article 425, Paragraph 1 of the Companies Act. The Company has entered into indemnity contracts, as stipulated in Article 430-2, Paragraph 1 of the Companies Act, with Mr. Masaki 4. Oga, Mr. Yoshitada Matsude, Ms. Rieko Shofu, Mr. Tetsuya Shoji, Mr. Toshihiro Uchiyama and Mr. Makio Tanehashi. Should the reelection of the said six (6) persons be approved, the Company intends to continue the said contracts. In addition, should the election of Mr. Kotaro Okamura and Mr. Ryotaro Fujii be approved, the Company also intends to enter into an indemnity contract of a similar kind with them. The outline of the indemnity contracts is that the Company will provide compensation for the expenses set forth in Article 430-2, Paragraph 1, Item 1 of the Companies Act and the losses set forth in Item 2 of the said Paragraph within the range stipulated by laws and regulations. 5. The Company has taken out directors and officers liability insurance (D&O insurance), as stipulated in Article 430-3, Paragraph 1 of the Companies Act, with all Directors as the insured. If each candidate is elected and appointed to the position of Director, each candidate will be included as the insured under this insurance policy. The Company intends to renew the said insurance policy on April 1, 2024. The outline of the insurance policy is that the insurance company will cover the liability borne by the insured Directors in the course of to acts in violation of laws or regulations that were carried out with full knowledge of thei insurance policy will be renewed
every yar.
performance of their duties or for
Proposal No. 3 – Election of Three (3) Directors Who Are Audit & Supervisory Committee
Members
At the conclusion of this general meeting, the terms of office of all three (3) Directors who are Audit & Supervisory Committee Members (including two (2) Outside Directors) will expire. The Company therefore proposes the election of three (3) Directors who are Audit & Supervisory Committee Members (including two (2) Outside Directors). The Company has obtained the approval of the Audit & Supervisory Committee of the Company for submitting this proposal to this general meeting.
The candidates for Director who is an Audit & Supervisory Committee Member are as follows: New candidate: Candidate for new election as a Director who is an Audit & Supervisory Committee Member Outside: Candidate for Outside Director Independent: Candidate for Independent Officer Note: The positions and business responsibilities in the Company of the above candidates for Director are as of the beginning of the General Meeting of Shareholders.
1. Each candidate has no special interest in the Company. The number of shares held in the Company is the effective number of shares held, including shares held through Sapporo Group's Officer 2. Stock Ownership Plan and Sapporo Group's Employee Stock Ownership Plan. 3. The Company has entered into a limited liability contract, as stipulated in Article 427, Paragraph 1 of the Companies Act, with Mr. Kohtaro Yamamoto. Should the reelection of him be approved, the Company intends to continue the said contract. In addition, should the election of Mr. Toru Miyaishi and Ms. Naoko Tanouchi be approved, the Company also intends to enter into limited liability contracts of a similar kind with them. The amount of limit of liability which is stipulated in these contracts is to be the minimum liability amount which is stipulated in Article 425, Paragraph 1 of the Companies Act. 4. The Company has entered into an indemnity contract, as stipulated in Article 430-2, Paragraph 1 of the Companies Act, with Mr. Kohtaro Yamamoto. Should the reelection of him be approved, the Company intends to continue the said contract. In addition, should the election of Mr. Toru Miyaishi and Ms. Naoko Tanouchi be approved, the Company also intends to enter into indemnity contracts of a similar kind with them. The outline of the indemnity contracts is that the Company will provide compensation for the expenses set forth in Article 430-2, Paragraph 1, Item 1 of the Companies Act and the losses set forth in Item 2 of the said Paragraph within the range stipulated by laws and regulations. 5. The Company has taken out directors and officers liability insurance (D&O insurance), as stipulated in Article 430-3, Paragraph 1 of the Companies Act, with all Directors who are Audit & Supervisory Committee Members as the insured. If each candidate is elected and appointed to the position of Director who is an Audit & Supervisory Committee Member, each candidate will be included as the insured under this insurance policy. The Company intends to renew the said insurance policy on April 1, 2024. The outline of the insurance policy is that the insurance company will cover the liability borne by the insured Directors in the course of performance of their duties or for their liability arising from claims in pursuit of that liability, and the insurance policy will be renewed every year. However, the insurance policy does include certain exemption clauses, such as that no compensation will be made for liability attributable to acts in violation of laws or regulations that were carried out with full knowledge of their illegality.
(Reference) Skills Matrix for the Candidates for Director
With the Medium-Term Management Plan (2023 to 2026), the Company defined the basic policy to revise our business portfolio and transform the business structure for new growth. We are aiming to contribute to the well-being of people and local communities through the time and space where all our businesses provide. For the steady promotion of the Medium-Term Management Plan and further strengthening of the supervisory function to achieve our goals, we have classified the knowledge, experience and abilities required for the Board of Directors into eight categories. Regarding the skills of each candidate for Director, for clearer disclosure of the diversity of the Company's Directors and the efficacy of the Board of Directors, we show those particularly expected by the Company with the maximum number limited to four categories.
The matrix is intended to clarify the balance of skills of the Board of Directors and focuses on the skills particularly expected by the 2. Company among those possessed by each candidate for Director. It does not represent all the skills (knowledge, experience, and capabilities) possessed by each candidate. 3. Mr. Toru Miyaishi, Mr. Kohtaro Yamamoto and Ms. Naoko Tanouchi are Directors who are concurrently serving as Audit & Supervisory Committee Members.
The effect of the election of Mr. Takanori Iizuka as a substitute Director who is an Audit & Supervisory Committee Member approved at the 99th Ordinary General Meeting of Shareholders held on March 30, 2023, continues only until the commencement of this general meeting. As a precaution against situations in which the number of Directors who are Audit & Supervisory Committee Members falls short of the number provided for in laws and regulations, the Company, again, proposes the election of one (1) substitute Director who is an Audit & Supervisory Committee Member. The Company has obtained the approval of the Audit & Supervisory Committee for submitting this proposal to this general meeting. The candidate for substitute Director who is an Audit & Supervisory Committee Member is as follows:
4' indemnity contracts is that the Company will provide compensation for the expenses set forth in Article 430-2, Paragraph 1, Item 1 of the Companies Act and the losses set forth in Item 2 of the said Paragraph within the range stipulated by laws and regulations. The Company has taken out directors and officers liability insurance (D&O insurance), as stipulated in Article 430-3, Paragraph 1 of the Companies Act, with all Directors who are Audit & Supervisory Committee Members as the insured. Should Mr. Takanori Iizuka assume the position of Director who is an Audit & Supervisory Committee Member, he will be included as the insured under this insurance policy. The Company intends to renew the said insurance policy on April 1, 2024. The outline of the insurance policy is that the insurance company will cover the liability borne by the insured Directors in the course of performance of their duties or for their liability arising from claims in pursuit of that liability, and the insurance policy will be renewed every year. However, the insurance policy does include certain exemption clauses, such as that no compensation will be made for liability attributable to acts in violation of laws or regulations that were carried out with full knowledge of their illegality.
The amount of annual remuneration for Directors of the Company (excluding Directors who are Audit & Supervisory Committee Members) is "500 million yen or less (this amount includes annual remuneration for Outside Directors capped at 50 million yen, and excludes employee salary of Director-employees, etc.)," which was approved at the 96th Ordinary General Meeting of Shareholders held on March 27, 2020, and has been the same. With the aim of improving corporate governance, the Company increased the number of Outside Directors by one (1) at the 99th Ordinary General Meeting of Shareholders held on March 30, 2023, and has presented for a resolution regarding the increase of the number of Outside Directors by one (1) in Proposal No. 2 "Election of Eight (8) Directors (Excluding Directors Who Are Audit & Supervisory Committee Members)" at this General Meeting of Shareholders. In addition, giving consideration to the recent expansion of roles expected of Outside Directors, the Company proposes the revision of the amount of annual remuneration for Outside Directors to be 100 million yen or less, while the total amount of annual remuneration for Directors remains the current 500 million yen or less. The amount of remuneration for Directors continues not to include employee salary of Director-employees, etc. This proposal has been approved by the Board of Directors after consultation with the Compensation Committee, which is composed of all Independent Outside Directors (excluding Directors who are Audit & Supervisory Committee Members), all Directors who are Audit & Supervisory Committee Members, and the President and Representative Director, and whose Chairperson is elected from among the Independent Outside Directors, giving comprehensive consideration to the Company's business scale, the Directors' remuneration system and remuneration levels, the current number of Directors, prospects for the future situation, etc., and we consider the content of this proposal is appropriate. The Company's policy on determination of details of remuneration for each Director, etc., is as specified in "Officers of the Company (5) Remuneration for Directors, etc. (a) Policy on Determination of Details of Remuneration for Officers, etc." of the Business Report. The current number of Directors (excluding Directors who are Audit & Supervisory Committee Members) is eight (8) (including four (4) Outside Directors). If Proposal No. 2 "Election of Eight (8) Directors (Excluding Directors Who Are Audit & Supervisory Committee Members)" is approved as proposed, the number of Directors (excluding Directors who are Audit & Supervisory Committee Members) will be eight (8) (including five (5) Outside Directors). Concerning this proposal, the Company's Audit and Supervisory Committee has expressed its opinion that the remuneration amount for Directors (excluding Directors who are Audit and Supervisory Committee Members) was examined by the Remuneration Committee, which includes Directors who are Audit and Supervisory Committee Members as its members, based on the Company's "Policy on Determination of Details of Remuneration for Officers, etc.," at the Remuneration Committee and the calculation method of remuneration, remuneration level, including the total amount, etc. determined by the Remuneration Committee were reasonable. Reference Judgment on Independence The Company established the Standards for Independence of Outside Directors in the Basic Policy on Corporate Governance as described below. Standards for Independence of Outside Directors 1. In order for the Outside Directors of the Company to be Outside Directors who are independent ("Independent Officers"), any such Outside Directors shall satisfy the applicable standards of independence specified by the financial instruments exchanges and, no such Outside Directors may fall under any of the following Items (1) through (3). (1) A person who currently is or during the past ten years was an executive officer ( gyomu shikkou sha ) of the Company or its consolidated subsidiaries (collectively, "Group") (*1). (2) A person who currently falls under or during the past three years has fallen under any of the following sub-items (i) through (viii). A person having the Group as a major business partner, or its executive officer ( gyomu shikkou sha ) (i) (*2); A major business partner of the Group or its executive officer ( gyomu shikkou sha ) (*3); (ii) (iii) A consultant, accounting professional, or legal professional who has obtained from the Group large sums of money or other property other than officer remuneration, etc. (if a person who has obtained such properties is a corporation, association, or other group, this means a person who belongs to such group) (*4); (iv) A major shareholder of the Group (if such major shareholder is a corporation, an executive officer (gyomu shikkou sha) of such corporation) (*5); (v) In the case where the executive officer ( gyomu shikkou sha ) of the Company holds the office of Outside Directors or Outside Audit & Supervisory Board Members of another company, an executive officer ( gyomu shikkou sha ) of such other company; (vi) A person who has received large donations from the Group or a Director or other executive officer (gyomu shikkou sha) of a group that received such donations (*6); (vii)  A member, partner, or employee of the audit corporation that is the accounting auditor for the Group; and (viii) A major lender of the Group or its executive officer ( gyomu shikkou sha ) (*7) (3) A spouse or a relative in the second degree or closer of any person listed in Item (1) or Item (2) above (excluding any unimportant person). 2. An Independent Officer of the Company must be an Outside Director with respect to whom there is no likelihood of a constant and substantial conflict of interests arising with the entire general shareholders of the Company for any reason other than the reasons considered in Items (1) through (3) of Paragraph 1 above. 3. An Outside Director who falls under any of Items (1) through (3) of Paragraph 1 above may nonetheless be appointed as an Independent Officer of the Company, if the Company considers such Outside Director to be appropriate as an Independent Officer in light of such Outside Director's personality and insight etc., on the condition that such Outside Director satisfy the applicable standards of independence specified by the financial instruments exchanges and that a public explanation be given of the reasons why we consider such Outside Director to be appropriate as an Independent Officer of the Company. Notes: *1. For any person who was a non-executive Director, an Accounting Advisor (if the Accounting Advisor is a juridical person; a member who is to execute its duties) or an Audit & Supervisory Board Member of the Group at any time over the last ten years, the ten-year period prior to assumption of such office. *2. *3. *4. *5. *6. *7. "Executive officer ( gyomu shikkou sha )" means a person stipulated in Article 2, Paragraph 3, Item 6 of the enforcement regulations of the Companies Act. "Person having the Group as a major business partner" means a person who has received from the Group payment of an amount equivalent to 2% or more of its annual consolidated sales (annual consolidated revenue) in the most recent fiscal year. "Major business partner of the Group" means a person who in the most recent fiscal year made payment to the Group payment of an amount equivalent to 2% or more of the Company's annual consolidated revenue. "Consultant, accounting professional, or legal professional who has obtained from the Group large sums of money or other property other than officer remuneration, etc." means a person who in the most recent fiscal year obtained, other than officers remuneration, etc., money or property in an amount or value equivalent to 2% of annual consolidated sales (annual consolidated revenue) or ten million yen, whichever is higher, or a member, partner, associate or employee of any law firm, auditing corporation, tax accountant corporation, consulting firm, or other professional advisory firm that received from the Group payment of an amount equivalent to 2% or more of that firm's annual total sales in the most recent fiscal year. "Major shareholder of the Group" means a person or a corporation who directly or indirectly holds 10% or more of the total voting rights of a company within the Group. "Large donation" means a donation that is made in the most recent fiscal year, the amount of which is not less than the higher of (i) ten million yen or (ii) 30% of the average annual expenses for the relevant group. "Major lender of the Group" means any financial institution or other major creditor that is essential for the Company's fund-raising, upon which the Company relies to such extent that such lender is not replaceable.
(From January 1, 2023 to December 31, 2023) 1. Review of Sapporo Group Operations
(1) Operations and Operating Results
Sapporo Group's perspective, economic activities returned to normal levels in 2023 as a lifestyle that coexists with the coronavirus became prevalent among people both in Japan and overseas and the effects of COVID-19 subsided. On the other hand, the outlook was still uncertain, with concerns about consumers becoming more cautious with their spending due to the increase of price arising from factors such as the situation in Ukraine, the depreciation of the Japanese yen, and surging prices of raw materials and energy. In this context, Sapporo Group conducted structural reforms in the first year of the Medium-Term Management Plan (2023 to 2026) and intensified efforts to implement our growth strategy, producing steady results. The overall consolidated revenue increased year on year because of the steady recovery of the commercial market in the Alcoholic Beverages business, and Stone Brewing Co., LLC ("STONE"), which became our consolidated subsidiary at the end of August 2022 and joined Sapporo Group, made a full-year contribution, etc., despite a decrease in revenue from the Food & Soft Drinks business resulting from the transfer of the Cafe business in April 2022, which was conducted in order to shift the management resources to growth areas, and from the year-long liquidation of a vending machine operating subsidiary in November 2022, etc. The consolidated operating profits increased year on year due to the effects of increased revenue from the domestic Alcoholic Beverages business, structural reforms in the Restaurant business and the domestic Food & Soft Drinks business, etc.
(2) Issues to be Addressed by the Group
(i) Management philosophy and value provided Sapporo Group has established its management philosophy of "As an intrinsic part of people's lives, Sapporo will contribute to the evolution of creative, enriching and rewarding lifestyles" and its fundamental management policy of "striving to maintain integrity in corporate conduct that reinforces stakeholder trust and aim to achieve continuous growth in corporate value." [Our Value] Through the Time and Space where all our businesses provide, we contribute to Well-being of People and Local Communities Utilizing the assets of “Highly Unique Brands” and “Engaging with customers and communities,” Sapporo Group has created a unique brand experience in 2 domains: "time" and "space." With the essence of "richness" that changes with the times, we will contribute to the "richness" of nature, society, and the spirit that will lead to tomorrow.
(ii) Medium-Term Management Plan (2023 to 2026)
Since its foundation in 1876, the Company has constantly innovated and delivered products and services that have enriched customers' lives. In 2026, the Company will mark its 150th anniversary. In order to keep demonstrating its exclusive value to society beyond 150 years, we have developed and been promoting a management plan for the four (4) year period from 2023 to 2026. The key points of this plan are a revision of our business portfolio, realizing group management aligned with the positioning of each of our businesses, and increasing our corporate value through higher capital efficiency. We look to reliably meet the expectations of stakeholders. For details please refer to the following website: https://www.sapporoholdings.jp/en/news/items/20221109_sh_en_2.pdf <Essentials of Medium-Term Management Plan (2023 to 2026)> < Basic Policy>  Beyond150 - New Growth Through Business Structure Transformation -

(iii) Promotion of sustainability management
Under “Sapporo Group Sustainability Policy,” Sapporo Group set the sustainability material issues based on the pillars of "Harmony with the environment," "Co-prosperity with Society" and "Success of Human Assets," in response to changes in the social situation and business environment surrounding our group. In particular, Sapporo Group positioned "Realization of a Decarbonized Society," "Mutual Prosperity with Local Communities" and "Active Participation of Diverse Human Assets" as the top priority management issues. Sapporo Group has set new targets for each of the nine sustainability material issues that lie at the heart of initiatives and promote initiatives while monitoring the progress toward the achievement of said targets. In addition, Sapporo Group agrees with the recommendations put forth by the Task Force on Climate-related Financial Disclosures, which encourage companies to evaluate and manage risks and opportunities associated with climate change and to disclose related information, and is therefore actively promoting such information disclosure. Drawing from partnerships between employees of Sapporo Group and its stakeholders around the world, we are working to realize a sustainable society by creating both social and economic value. For details, please refer to the website: https://www.sapporoholdings.jp/sustainability/ (iv) Human assets strategy In order to realize the basic policy of the "Medium-Term Management Plan (2023 to 2026)," "Beyond150 - New Growth Through Business Structure Transformation -," Sapporo Group has positioned its human assets strategy as a pillar of its management platform, under the slogan, "Leveraging diversity to create a go beyond Boundaries, challenging positive change." As for the human assets strategy, Sapporo Group has identified "actively investing for speedy growth," "fostering management talent," "promoting diversity," “agile utilization of human resources internally and externally,” and “increasing engagement and promoting health" as priority measures, and ensures support for the execution of management strategies through more specific action plans and KPIs. For the detail, please refer to the website: https://www.sapporoholdings.jp/sustainability/human/ (in Japanese)
(v) Promotion of DX
We have been promoting the development and contribution provided by DX and IT human assets inside the Group, based on the "Sapporo Group DX Policy" announced in March 2022. Sapporo Group has been carrying out training programs for each segment in order to develop the DX talents of all employees and make them "DX human assets." Sapporo Group has been also utilizing digital technologies in various ways, such as adopting AI in demand forecasting and product development, and will continue to actively utilize digital technologies. [Sapporo Group DX Policy (Overview)] Policy (1) Increase Customer Contact Points: Become connected with, deepen understanding of, and stay at the side of customers Policy (2) Expand Existing and New Businesses: Create customer-centered and well-thought-out new value and strengthen earning power Policy (3) Workstyle Reforms: Make our jobs more comfortable and enjoyable, with work we can take pride in, so that we can continue growing along with every stakeholder associated with Sapporo Group For the detail, please refer to the website: https://www.sapporoholdings.jp/news/dit/?id=8912 (in Japanese)
(vi) Financial strategy
Under the theme "Focus on Sustainable Growth and Capital Efficiency," the Company will enhance capital efficiency by strengthening profitability through structural reform and business growth, as well as review of assets and the business portfolio, and will ensure the improvement of corporate value. With respect to financial soundness, the Company, in principle, will maintain its current credit rating levels. With respect to investments, the Company will promote growth by prioritizing investments overseas while maintaining a balance with operating cash flow and promote sustainability-related investments as well. In addition, the Company will flexibly respond to growth investment opportunities, including M&A, to the extent the Company can maintain its current credit rating levels. The Company regards the return of profits to shareholders as an important management policy, and the Company takes the basic policy of paying stable dividends in consideration of its business performance and financial condition. As for the level of dividends going forward, the Company will make efforts to improve the level of dividends, toward a consolidated dividend payout ratio of greater than or equal to 30% in principle, setting the current ratio as a minimum, while enhancing its corporate value. In the event that profit for the year fluctuates significantly due to temporary losses related to special factors or recording of profits, the dividend amount may be determined taking into account the impact of such fluctuations.
(vii) Issues to be addressed in the principal business lines of Sapporo Group

[Real Estate] ● Enhance the value of the property in the Ebisu and Sapporo areas and promote community development - Enhance the value of the property in Yebisu Garden Place - Promote initiatives to redevelop Sapporo Garden Park - Open Hotel Sosei Sapporo MGallery and conduct stable operations - Strengthen relationships with local communities through community development ● Improve asset efficiency through investment management business Real Estate Business (viii) Medium to Long Term Management Policies for Increasing Group-wide Corporate Value The Company received various comments from the capital markets after the announcement of Sapporo Group's "Medium-Term Management Plan (2023 to 2026)" (November 2022) through various channels, including IR and SR activities. In September 2023, the Company established a Group Strategy Committee (the "Committee"), which includes outside experts, and added multifaceted and objective perspectives, including that of third-party advisors, to discuss the management policies for increasing corporate value over the medium to long term that lies ahead of the current medium-term management plan. The Company recently resolved at a meeting of the Board of Directors in February 2024 to set the "Medium to Long Term Management Policies for Increasing Group-wide Corporate Value," taking the Committee's advice into account. A summary of the policies is as follows. - In order to improve its corporate value in the medium to long term, the Company will further concentrate its management resources to focus on beer businesses with competitive advantages and businesses in which synergies with those competitive businesses can be created. The Company refines its market-creation capabilities in alcoholic beverages, which has been the Company's DNA since its foundation, then grows to a global scale, creating rich consumer-experiences and increases its capital profitability. The Company considers improvement in capital efficiency to be a key challenge and aims to achieve ROE of 10% or higher. The Company will also adopt ROIC as an internal indicator in order to thoroughly conduct strict criteria of business continuity based on business-specific WACC and business monitoring using a 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 the alcoholic beverages business. The Company will consider the above-mentioned issues in detail and disclose more specific details of its efforts at a later date. For details, please visit our website at https://www.sapporoholdings.jp/en/news/items/20230214_ml_e