Sapporo Holdings Limited · TSE:2501

Sapporo — Q3 2022 Earnings Presentation

29 slides from Sapporo's earnings presentation, Nov 9, 2022

1. Slide 1: Sapporo Group Business Results Presentation for the Nine Months Ended September 30, 2022

   Sapporo Group Business Results Presentation for the Nine Months Ended September 30, 2022 *In this document, the following company name abbreviations are used: November 9th 2022 SH: Sapporo Holdings Limited SB: Sapporo Breweries Ltd. SLN: Sapporo Lion Limited. URL https://www.sapporoholdings.jp/en/ P

2. Slide 2: Summary, Business Results, Appendix

   １． Summary ・・・P3~P4 ２． Business Results ・・・P5~P16 ３． Appendix ・・・P17~P29 Copyright, 2022 SAPPORO HOLDINGS LTD. All rights reserved. 2/29

3. Slide 3: Summary

   Summary Copyright, 2022 SAPPORO HOLDINGS LTD. All rights reserved. 3/29

4. Slide 4: Summary: FY2022 Q3 Results and Medium-Term Management Plan

   Summary ➢ FY2022 Q3 Results ・Increased revenue and profit achieved in Q3 ・The initial annual plan is expected to be achieved. ➢ Medium-Term Management Plan (2023-2026) ・Basic policy：“Beyond150 - New Growth Through Business Structure Transformation -” ・Management with a strong awareness of capital ef

5. Slide 5: Business Results

   Business Results Copyright, 2022 SAPPORO HOLDINGS LTD. All rights reserved. 5/29

6. Slide 6: Financial Highlights for Q3 in FY2022

   Financial Highlights for Q3 in FY2022 2021 Q3 2022 Q3 YoY changes YoY changes （billions of yen） Result Result (amount) (%) Revenue 309.1 345.8 36.8 11.9% Revenue（Excluding liquor tax） 234.5 261.6 27.2 11.6% Overseas revenue 54.7 72.5 17.9 32.7% EBITDA 16.9 20.9 3.9 23.3% Core operating profit 1.5 5.

7. Slide 7: Financial Summary for Q3 in FY2022

   Financial Summary for Q3 in FY2022 Continuous growth of overseas alcoholic beverages in North America, increased revenue due to the recovery in demand for the restaurant market Despite the impact of rising input costs continue, increased core operating profit thanks to revenue increase and cost stru

8. Slide 8: Material, Transportation, and Energy Cost Increases

   Material, Transportation, and Energy Cost Increases Forecast for FY2022 Costs are expected to increase 8.5 billion yen on an annual basis (1.5 billion yen higher than forecast in Q2). Jan.-Sep. Results Oct.-Dec. Outlook ・Rising raw material costs ¥(4.1) billion ・Rising raw material costs ¥(1.8) bill

9. Slide 9: Alcoholic beverages in Japan

   Alcoholic beverages in Japan Increase in revenue and profit attributed to the recovery in demand for restaurant business and transient demand ahead of price revisions despite upfront brand investment and more variable costs due to soaring raw material prices and fixed costs from Sendai Brewery depre

10. Slide 10: Alcoholic beverages in Japan - Future Strategy for the Yebisu Brand

    Alcoholic beverages in Japan - Future Strategy for the Yebisu Brand - As the pioneer of the premium beer category, Yebisu has enhanced and expanded the appeal of beer Starting in 2021, we launched the “Color Your Time!” campaign, which strengthens proposals that color customers’ times. We are streng

11. Slide 11: Alcoholic beverages in overseas

    Alcoholic beverages in overseas *SPB: SAPPORO PREMIUM BEER The demand recovery for restaurant business and steady sales with the expansion of SPB* home-use products led to an increase in revenue. Due to rising raw material costs, transportation costs, and cost for acquiring of Stone Brewing Co. LLC,

12. Slide 12: Alcoholic beverages in restaurants

    Alcoholic beverages in restaurants The demand recovery for restaurant business and decrease in fixed costs from structural reforms led to an increase in core operating profit. Structural Reforms Recovery from COVID-19 Status of recovery in profitability ＜Revenue＞（billions of yen） through structural

13. Slide 13: Food & Soft Drinks

    Food & Soft Drinks Revenue was down due to sale of café business and reorganization of vending machine operator subsidiaries while revenue increased the overseas Core operating profit increased thanks to contribution of structural reforms *all lemon：lemon beverages + lemon food Growth strategy Growt

14. Slide 14: Real Estate business

    Real Estate business The sales of properties last year and decrease of rent over the renovation for YGP commercial complex* led to decrease in revenue and profit ＜Revenue＞（billions of yen） Growth strategy Strategic leasing through YGP* property value enhancement and rebranding 2021 2022 ➢ Foodies Ga

15. Slide 15: Profit attributable to owners of parent

    Profit attributable to owners of parent 2021 Q3 2022 Q3 （billions of yen） Details Details Result Result Core operating Profit 1.5 5.7 Gain on sales of fixed assets, etc. Gain on sales of fixed assets, etc. Other operating income 25.5 ¥(23.2) billion 3.7 ¥(1.6) billion Other operating expenses 3.1 1.

16. Slide 16: Sustainability Management Initiatives

    Sustainability Management Initiatives Harmony with the environment Co-prosperity with society Biodegradable plant-derived bioplastic cups introduced at Made donation to Hokkaido Marine Resource Restoration Project through RISING SUN ROCK FESTIVAL 2022 in EZO shareholder benefit program and Supported

17. Slide 17: Appendix

    Appendix Copyright, 2022 SAPPORO HOLDINGS LTD. All rights reserved. 17/29

18. Slide 18: Appendix: Quarterly results for FY2022

    Appendix: Quarterly results for FY2022 YoY YoY YoY YoY YoY YoY 2021 Q1 2022 Q1 changes changes 2021 Q2 2022 Q2 changes changes 2021 Q3 2022 Q3 changes changes （billions of yen） Result Result (amount) (%) Result Result (amount) (%) Result Result (amount) (%) Revenue by Segment 89.9 93.2 3.4 3.7% 109.

19. Slide 19: Appendix: Changes in Balance Sheets

    Appendix：Changes in Balance Sheets （billions of yen） Total assets End of 2021 2022Q3 change Total liabilities and equity End of 2021 2022Q3 change Cash and cash equivalents Trade payables 17.4 19.5 2.1 33.2 33.7 0.4 Trade receivables Short-term financial liabilities 91.5 82.0 (9.6) 61.2 90.6 29.4 In

20. Slide 20: Appendix: Financial Status

    Appendix： Financial Status Investment on a cash basis was ¥ billion ＜ Investment total (①＋②＋③)> ¥ billion ＜Consolidated cash flow (CF) statement＞ 2021 Q3 2022 Q3 ➀ Capital expenditure (cash basis): ¥ billion （billions of yen） Change Change (%) Result Result （Property, plant and equipment, intangible

21. Slide 21: Appendix: Major sales volume & sale

    Appendix： Major sales volume & sale (Beer and beer-type beverages and non-alcoholic beer calculations based on large bottles,RTDs are calculated by 250 ml × 24 bottles.) Sales Volume:Beer (Japan) ※1 (10,000 cases) Sales:Beer (Japan) *including liquor tax (billions of yen) Jan. 1 - Jan. 1 - YoY Jan.

22. Slide 22: Appendix: Alcoholic Beverages (Japan)

    Appendix：Alcoholic Beverages (Japan) <Domestic beer and beer-type beverages: <Major domestic brands: YoY change in sales volume> YoY change in sales volume by genre> (Jan – Sep) (Jan – Sep) [Beer and beer-type beverages total] up % YoY ✓ Black Label brand ✓ YEBISU brand up ％ y-o-y up ％ y-o-y ✓ Beer:

23. Slide 23: Appendix: Alcoholic Beverages (Japan)

    Appendix：Alcoholic Beverages (Japan) ＜Main brand Jan- Sep Sales volume change＞ ＜ Beer lineup sales volume(Jan- Sep break down) ＞ (10,000 cases) (Jan – Sep) (Jan – Sep) Copyright, 2022 SAPPORO HOLDINGS LTD. All rights reserved. 23/29

24. Slide 24: Appendix: Alcoholic Beverages (Japan)

    Appendix：Alcoholic Beverages (Japan) ＜ Jan- Sep sales breakdown by category ＞ ＜Jan- Sep sales revenue＞ (billions of yen) ※Incl. liquor tax *Before subsidiary companies sales, elimination of inter- company transactions and rebate deduction *From 2021, Hyosai Sour and 99.99 keg are reclassified from S

25. Slide 25: Appendix: Alcoholic Beverages (Japan)

    Appendix：Alcoholic Beverages (Japan) ＜ Jan- Sep sales revenue ＞ (billions of yen) *From 2021, Hyosai Sour and 99.99 keg are reclassified from Spirits to RTD. Copyright, 2022 SAPPORO HOLDINGS LTD. All rights reserved. 25/29

26. Slide 26: Appendix: Alcoholic Beverages (Japan) - Liquor tax changes

    Appendix：Alcoholic Beverages (Japan) ＜Changes in the amount of liquor tax per 350 ml＞ （yen） 77 70 63.35 Beer ✓ Beer and Beer 54.25 Happoshu type beverages 46.99 yen New genre RTD 37.8 35 ✓ RTD 28 yen 2020 2023 2026 （year） Copyright, 2022 SAPPORO HOLDINGS LTD. All rights reserved. 26/29

27. Slide 27: Appendix: Food & Soft Drinks

    Appendix：Food & Soft Drinks ＜ Japanese soft drinks ＜Japanese soft drinks ＜Japanese soft drinks POKKA SAPPORO Food & Beverage ＞ POKKA SAPPORO Food & Beverage＞ Sales composition by genre (Jan- Sep)> Sales composition by sales channel (Jan- Sep) Sales composition (Jan- Sep) 67.5 27.78 million 27.78 mil

28. Slide 28: Appendix: Real Estate

    Appendix：Real Estate ＜ Information about Investment property ＞ ＜ Major rental properties & occupancy rates：（Averages for 2022 3Q )> (billions of yen) Occupa 400.0 Site area Floor area ncy rate No. of floors （㎡） （㎡） （%） 300.0 40 floors above ground, 200.0 408.1 Yebisu Garden Place（1） 56,943 298,007 8

29. Slide 29: As an intrinsic part of people's lives, Sapporo will contribute to the evolution of

    As an intrinsic part of people's lives, Sapporo will contribute to the evolution of creative, enriching and rewarding lifestyles. This document was prepared for the purpose of providing information to serve as a reference for investors in making investment decisions and not for the solicitation of i

Sapporo Holdings — Q3 2022 Earnings Presentation on 6ix