Sapporo Holdings Limited · TSE:2501

Sapporo — Q3 2021 Earnings Presentation

36 slides from Sapporo's earnings presentation, Nov 5, 2021

1. Slide 1: Sapporo Group Business Results Presentation for the Nine Months Ended September 30, 2021

   Sapporo Group Business Results Presentation for the Nine Months Ended September 30, 2021 *In this document, the following company name abbreviations are used: November 5th 2021 SH: Sapporo Holdings Limited SB: Sapporo Breweries Ltd. SLN: Sapporo Lion Limited. URL https://www.sapporoholdings.jp/en/ P

2. Slide 2: １. Key Factors of 2021 3Q Results and Full-year Earnings Forecast ・・・P３ ２. Business

   １. Key Factors of 2021 3Q Results and Full-year Earnings Forecast ・・・P３ ２. Business Results ・・・P4～P22 ３. Appendix ・・・P23～P35 Copyright, 2021 SAPPORO HOLDINGS LTD. All rights reserved. 2/36

3. Slide 3: Key Factors of 2021 3Q Results and Full-year Earnings Forecast

   Key Factors of 2021 3Q Results and Full-year Earnings Forecast SB commercial-use beer and restaurant business results Full-year earnings forecast*: Unchanged for 2021 3Q and current status Restrictions on alcoholic beverage provision due to the state of emergency Toward fulfilling the core operating

4. Slide 4: Business Results

   Business Results Copyright, 2021 SAPPORO HOLDINGS LTD. All rights reserved. 4/36

5. Slide 5: Review of the Nine Months Ended September 30, 2021: Results

   Review of the Nine Months Ended September 30, 2021: Results Sales of canned beer, lemon-based products, and plant-based milk products remained solid. RTD and Sapporo brand sales in North America rose strongly. Black Label brand canned Yebisu brand canned RTD sales volume product sales volume product

6. Slide 6: Review of the Nine Months Ended September 30, 2021: Results

   Review of the Nine Months Ended September 30, 2021: Results Progress of structural reforms ◆ Restaurant Business: Progress in efforts to reform the break-even point ◆ Liquidation of owned properties for 2021 3Q Along with closing unprofitable stores and opening low-cost format stores, continuing rep

7. Slide 7: Review of the Nine Months Ended June 30, 2021: Issues

   Review of the Nine Months Ended June 30, 2021: Issues Commercial-use beer and restaurant business are sluggish due to shortened operating hours and restrictions on the provision of alcoholic beverages. Office occupancy rate declined from worsening market conditions. Beer (bottles・kegs） Restaurants Y

8. Slide 8: Results Highlight

   Results Highlight 2020 3Q 2021 3Q YoY changes YoY changes （billions of yen） Result Result (amount) (%) Revenue 315.3 (2.0%) Revenue（Excluding liquor tax） 238.4 234.5 (3.9) (1.7%) Overseas revenue 48.9 54.7 5.8 11.8% EBITDA 18.4 16.9 (1.5) (8.1%) Core operating profit 1.2 31.7% Core operating profit

9. Slide 9: Results Highlight

   Results Highlight On a recovery track until 2Q, but sales and profits fell in 3Q (Jul–Sep) due to the impact of COVID-19. Revenue Core operating profit Alcoholic Beverages (1.1) Food & Soft Drinks +0.6 Profit attributable to owners of parent （ billions of yen) Real Estate (0.8) （ billions of yen) （

10. Slide 10: Results Highlight: Impact on Restaurant-Related Companies

    Results Highlight: Impact on Restaurant-Related Companies Overall profit levels are still being weighed down by struggling restaurant-related companies. However, sales in the restaurant business improved from 2020 thanks to the effects of structure reforms, covering a significant decrease in sales.

11. Slide 11: Results Highlight

    Results Highlight Balance of net debt Equity Capital expenditure (cash basis) 2020 3Q End of 2020 2020 3Q 213.4 221.5 2021 revised plan 2021 3Q 184.8 End of 2020 163.1 149.6 167.8 22.4 15.6 2021 3Q (Progress: 70%) （billions of yen） 2021 3Q D/E ratio (net) Down 20% YoY （billions of yen） （billions of

12. Slide 12: Revenue by Segment

    Revenue by Segment 2020 3Q 2021 3Q YoY changes YoY changes （billions of yen） Result Result (amount) (%) Revenue by Segment 315.3 (2.0%) Alcoholic Beverages 206.8 (2.3%) Japanese 163.7 158.3 (5.4) (3.3%) Overseas 34.8 39.5 4.7 13.6% Restaurants 8.3 4.2 (4.1) (49.9%) Food & Soft Drinks 91.0 (0.6%) Rea

13. Slide 13: Main Contributors to Changes in Revenue

    Main Contributors to Changes in Revenue Revenue of RTD, overseas alcoholic beverages and soft drinks rose, but overall revenue declined due to struggling commercial-use beer and restaurant business (down billion yen). YoY Changes （billions of yen） Total １Q ２Q 3Q = Increase Total (6.3) (9.9) 9.7 (6.0

14. Slide 14: Core Operating Profit by Segment

    Core Operating Profit by Segment 2020 3Q 2021 3Q YoY changes YoY changes （billions of yen） Result Result (amount) (%) Core Operating Profit by Segment 1.2 31.7% Alcoholic Beverages 0.3 (85.9%) Japanese 3.8 2.4 (1.4) (37.0%) Overseas 0.4 1.6 1.2 (269.1%) Restaurants (4.1) (3.9) 0.1 ー Food & Soft Drin

15. Slide 15: Main Contributors to Changes in Core Operating Profit

    Main Contributors to Changes in Core Operating Profit While profit declined in commercial-use beer, new-genre beer, and the Real Estate business, growth in RTD, recovery overseas, and cost controls resulted in an increase of billion yen in profit. ➡ Also covered a reversal of 1.8 billion yen of COVI

16. Slide 16: Profit attributable to owners of parent

    Profit attributable to owners of parent 2020 3Q 2021 3Q （billions of yen） (Details) (Details） Result Result Core operating Profit 1.2 Gain on sales of non- Gain on sales of non-current assets: 23.2 billion yen Other operating income 2.7 current assets: 1.0 billion 25.5 COVID-19 related subsidies: 1.

17. Slide 17: Alcoholic Beverages

    Alcoholic Beverages While sales of home-use beer, RTD, and international alcoholic beverages remain strong, commercial-use beer and the restaurant business were sluggish due to COVID-19. Progress with cost structure reforms led to a slight decrease in profit. ➢ Sales of canned beer, RTD products, an

18. Slide 18: Food & Soft Drinks

    Food & Soft Drinks In Japan, sales of lemon-based products were strong, while soft drinks and some vending machine locations struggled due to bad weather and COVID-19. Profit increased thanks to the recovery overseas, a reduction in depreciation due to the previous year’s impairment, and cost contro

19. Slide 19: Real Estate

    Real Estate Revenues and profits declined due to worsening office market conditions and impact of some tenants leaving. <Revenue> Down (billions of yen) Positive ➢ Progressed with leasing of 60% of all lots in Yebisu Garden Place 20.0 Tower (commercial wing*) ahead of remodeling (over 90% of tenants

20. Slide 20: Changes in Balance Sheets

    Changes in Balance Sheets Total assets decreased ¥39.5 billion from year end Cash and cash equivalents Total assets Total assets (billions of yen) Trade receivables 19.7 ➢ Impact of seasonal factors and bank holidays 84.5 13.3 Current assets YoY change Inventories 62.9 (34.0) 36.0 40.5 20.6 10.1 Oth

21. Slide 21: Changes in Balance Sheets

    Changes in Balance Sheets Total liabilities declined ¥57.8 billion from year end, total equity increased ¥18.3 billion Trade payables Total liabilities and equity Total liabilities and equity (billions of yen) Short-term financial liabilities 31.9 ➢ Redemption of bonds 31.4 83.2 Other current liabil

22. Slide 22: Financial Status

    Financial Status Investment on a cash basis was ¥ billion <Investment total (①+②+③)> ¥ billion <Consolidated cash flow (CF) statement> ➀ Capital expenditure (cash basis) : ¥ billion 2020 2021 (billions of yen) Change Change (%) (Property, plant and equipment, intangible assets, investment property)

23. Slide 23: Appendix

    Appendix Copyright, 2021 SAPPORO HOLDINGS LTD. All rights reserved. 23/36

24. Slide 24: Appendix: Initiatives for Sustainability Management

    Appendix： Initiatives for Sustainability Management Business Highlights for 2021 Release Date Topic Related Priority Issues Formulation of Sapporo Group Plastics Policy Oct. 5 https://www.sapporoholdings.jp/csr/news/dit/?id=8849 * Japanese Tohoku Reconstruction Support through Shareholder Benefit Pl

25. Slide 25: Appendix: Major sales volume & sale

    Appendix： Major sales volume & sale Sales:Beer (Japan) *including liquor tax (billions of yen) Sales Volume:Beer (Japan) ※1 (10,000 cases) Jan. 1 - Jan. 1 - YoY Jan. 1 - Jan. 1 - YoY Sep.30, 2020 Sep.30, 2021 Change(%) Sep.30, 2020 Sep.30, 2021 Change(%) Beer 94.8 86.9 (8.3%) Sapporo Draft Beer Blac

26. Slide 26: Appendix: Alcoholic Beverages (Japan)

    Appendix：Alcoholic Beverages (Japan) <Domestic beer and beer-type beverages: <YoY changes in sales volume of beer and beer-type beverages by genre> YoY change in sales volume by genre> (Jan – Sep) (cumulative for each month) （％） [Beer and beer-type beverages total] down % YoY 100 90 ✓ Beer: down ％ y

27. Slide 27: Appendix: Alcoholic Beverages (Japan)

    Appendix：Alcoholic Beverages (Japan) ＜Main brand Jan- Sep Sales volume change＞ ＜ Beer lineup (Jan- Sep break down) ＞ (10,000 cases) 1,400 1,200 20% 1,000 800 28% 600 400 52% 200 0 Black Lable Yebisu Others 2015 2016 2017 2018 2019 2020 2021 Black Lable brand total Yebisu brand total Mugi to Hop bran

28. Slide 28: Appendix: Alcoholic Beverages (Japan)

    Appendix：Alcoholic Beverages (Japan) ＜ Jan- Sep sales revenue ＞ ＜ Jan- Sep sales breakdown by category ＞ ※Incl. liquor tax (billions of yen) 180.0 10% 1% 160.0 44.4 7% 140.0 52.5 48.8 37.8 34.2 52% Beer 120.0 41.7 7% Happoshu & New genre 39.1 100.0 Wine & Spirits Japanese liquor 80.0 RTD 60.0 117.8

29. Slide 29: 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. 0.7 Achieved annual sales plan for Koime no Lemon Sour 1.5 5.1 5.4 5.4 5.2 (released in October 19, 2021) 1.1 5.4 4.2 1.3 3.9 15.6 1.2 12.0 10

30. Slide 30: Appendix: Alcoholic Beverages (Japan)

    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, 2021 SAPPORO HOLDINGS LTD. All rights reserved. 30/36

31. Slide 31: Appendix: Alcoholic Beverages (Overseas)

    Appendix：Alcoholic Beverages (Overseas) ＜Overseas beer : YoY change in sales volume＞ ＜ Overseas sales volume by brand(Jan-Sep) ＞ （10,000cases） (Jan – Sep) 【North America Total up % y-o-y 1,500 ✓ Overseas brand 1,200 463 336 407 %* YoY down ％ y-o-y 900 600 1,007 1,033 1,008 ✓ Sapporo brand 2020 2021

32. Slide 32: Appendix: Alcoholic Beverages (Restaurants)

    Appendix：Alcoholic Beverages (Restaurants) ＜ Sales revenue and number of Sapporo Lion Outlets ＞ ※before rebate deduction (Billions of yen) （Jan- Sep） 20.0 200 ＜Sapporo Lion outlets As of September 30, 2021 ＞ 177 16.0 168 173 170 180 11 158 8 12.0 151 160 Tokyo Metroporitan 8.0 18.9 18.7 19.0 18.1 18

33. Slide 33: Appendix: Food & Soft Drinks

    Appendix：Food & Soft Drinks ＜ Japanese soft drinks POKKA SAPPORO Food & Beverage ＞ ＜ Japanese soft drinks POKKA SAPPORO Food & Beverage ＞ Sales volume & Sales by genre(Jan- Sep) Sales composition by sales channel (Jan- Sep) 【Lemon based-drinks】 【Lemon-based food products】 38% ✓ up ％ y-o-y ✓ up ％ y-o

34. Slide 34: Appendix: Food & Soft Drinks

    Appendix：Food & Soft Drinks 【 Pokka Create Co., Ltd .】 ＜ Food & Soft Drinks segment Revenue break down by geographic area ＞ ✓ Jan- Sep Sales revenue billion 84% up % y-o-y ＜ Number of outlets as of September 30, 2021> 110 16% 54 East Japan 201 Outlets Central Japan West Japan Japan Overseas ＜Japanes

35. Slide 35: Appendix: Real Estate

    Appendix：Real Estate ＜ Information about Investment property ＞ ＜ Major rental properties & occupancy rates：（Averages for 2021 3Q )> (billions of yen) 400.0 Occupancy Site area Floor area rate No. of floors （㎡） （㎡） 300.0 （%） Yebisu Garden Place（1） 56,943 298,007 92 40 floors above ground, 5 below 200

36. Slide 36: As an intrinsic part of people's lives, Sapporo will contribute to the evolution of creative lifestyles

    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

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