Slide 1: Sapporo Group Business Results Presentation for the Nine Months ended September 30, 2011
2011 Sapporo Group Business Results Presentation for the Nine Months ended September 30, 2011 November 1, 2011 Sapporo Holdings Ltd. URL http://www.sapporoholdings.jp/english 1/27
Slide 2: Contents
Contents 1． Overview of Results in First Nine Months of 2011 2． Operating Results by Segment 3. Growth Strategies and Future Policies 4. For Reference: 2011 Full-Year Earnings Forecasts ※These materials contain forward-looking statements that are based on information available when the materials wer
Slide 3: Overview of Results in First Nine Months of 2011
1. 1.Overview Overviewof ofResults Resultsin inFirst FirstNine Ninemonths monthsof of2011 2011 Copyright, 2011 SAPPORO HOLDINGS LTD. All rights reserved. 3/27
Slide 4: Overview of Results in First 9 months of 2011 – Consolidated
Overview of Results in First 9 months of 2011 –Consolidated Third-quarter sales rose sharply as gains at the Soft Drinks Business and the consolidation of the POKKA Group compensated for declines at the Japanese Alcoholic Beverage and Restaurants businesses, partially due to impact of the Great East
Slide 5: Overview of Results in First 9 months of 2011 – By Segment
Overview of Results in First 9 months of 2011– By Segment Excluding the Japanese Alcholic Beverages Business and Restaurants Business, which were hurt by the disaster, and the Soft Drinks Business, which booked goodwill amortization of ¥0.4 billion, all other segments posted YoY gains. Income gains
Slide 6: Overview of Results in First 9 months of 2011 – Trends
Overview of Results in First 9 months of 2011 – Trends – Sharp increases in operating and ordinary income. Profit growth trend intact even w/o consolidation of POKKA Group Trends Trendsfor forOperating OperatingIncome Incomeand andOrdinary OrdinaryIncome Income billions of yen 2007 2008*1 2009*2 201
Slide 7: Overview of Results – Earthquake's Impact
Overview of Results for the first 9 months of 2011 – Earthquake’s Impact Breakdown ※※Reference Reference Breakdownof of¥4.7bn ¥4.7bnin inquake-related quake-related Breakdown extraordinary Breakdownof of¥5.0 ¥5.0bn bnin inquake-related quake-relatedextraordinary extraordinary extraordinary losses po
Slide 8: Operating Results by Segment
2. 2. Operating OperatingResults Resultsby bySegment Segment ※Please refer to the Supplementary Information for more details on each business’s profitability Copyright, 2011 SAPPORO HOLDINGS LTD. All rights reserved. 8/27
Slide 9: Japanese Alcoholic Beverage Business (1)
Results for the first 9 months: Japanese Alcoholic Beverage Business (1) (billions of yen) Year-over-year changes Results Resultshighlights highlights 2010 2011 Amount % Sales down on Earthquake impact. Operating income was around the same as the Net sales 201.2 191.5 (9.7) (4.9%) previous year with
Slide 10: Japanese Alcoholic Beverage Business (2)
Results for the first 9 months: Japanese Alcoholic Beverage Business (2) Key Keypoints pointsin inbusiness businessplan: plan:implementation implementationstatus status 2. Positioning for growth in expanding areas Non-alcoholic beer market initiatives Low-alcohol beer segment initiatives ¾ Feb: Laun
Slide 11: Japanese Alcoholic Beverage Business (3)
Results for the first 9 months: Japanese Alcoholic Beverage Business (3) Moves Movestoward towardgrowth growthin inexpanding expandingareas areas during during first 9 months of2011 first 9 months of 2011 ¾ Signed sales agreement with major Korean foods maker CJ Group ¾ Entered into alliance with Ba
Slide 12: International Alcoholic Beverages (1)
Results for the first 9 months: International Alcoholic Beverages (1) (billions of yen) Results Resultshighlights highlights Year- over-year changes Yen appreciation erased gains in local currency terms, 2010 2011 Amount % especially in North America, resulting in flat YoY sales in yen terms. Net sa
Slide 13: International Alcoholic Beverages (2)
Results for the first 9 months: International Alcoholic Beverages (2) Key Keypoint pointin inbusiness businessplan: plan:implementation implementationstatus status 2. Expansion in Asian market (incl. Oceania) Developments in Vietnam Developments in South Korea ¾ Started sales of imported beer to hou
Slide 14: Soft Drinks
Results for the first 9 months: Soft Drinks (Billions of yen) Results Resultshighlights highlights While overall domestic market struggled to match 2010 volumes prompted by the hot summer, we achieved strong YoY sales growth Year-over-year changes on the back of the rise in demand following the eart
Slide 15: POKKA Corporation (1) [consolidated from 2Q]
Results for the first 9 months: POKKA Corporation (1) [consolidated from 2Q] (billions of yen) Year-over-year changes Results Resultshighlights highlights 2011 2010 Amount % (Apr-Sep)※ New consolidation makes YoY comparisons meaningless, but comparisons based on figures below shows POKKA sales up in
Slide 16: Pokka Corporation (2) [consolidated from 2Q]
Results for the first 9 months: Pokka Corporation (2) [consolidated from 2Q] Key Keypoints pointsin inbusiness businessplan: plan:implementation implementationstatus status Beverages & Foods Business (Japan): POKKA Corp. and six group vending machine operators １．Beverages Business ¾ Concentrating in
Slide 17: Pokka Corporation (3) [consolidated from 2Q]
Results for the first 9 months: Pokka Corporation (3) [consolidated from 2Q] Key points pointsin inbusiness 事業計画のポイント：取組状況 Key 事業計画のポイント：取組状況 businessplan: plan:implementation implementationstatus status ■Beverages & Foods Business (Overseas): POKKA Singapore ■Restaurants Business (Domestic): POKKA
Slide 18: Restaurants
Results for the first 9 months: Restaurants Results Resultshighlights highlights (billions of yen) Consumer spending dropped sharply after the Great East Japan Year-over-year change Earthquake. Although consumer spending is recovering, the business environment remains highly competitive. 2010 2011 A
Slide 19: Real Estate (1)
Results for the first 9 months: Real Estate (1) (billions of yen) Results Year-over-year changes Resultshighlights highlights 2010 2011 Amount % Maintaining stable revenues despite continued fall in rents in Tokyo office leasing market Net sales 17.2 16.6 (0.6) (3.9)% Key Operating Keypoint pointin
Slide 20: Real Estate (2)
Results for the first 9 months: Real Estate (2) Overview Overviewof of Real RealEstate EstateBusiness Business ¾ Majority of the business’s operating income is from real estate leasing – Property portfolio largely comprises properties in metropolitan Tokyo (5 central wards; see previous page) ¾ Targ
Slide 21: Growth Strategies and Future Policies
3. 3.Growth GrowthStrategies Strategiesand andFuture FuturePolicies Policies Copyright, 2011 SAPPORO HOLDINGS LTD. All rights reserved. 21/27
Slide 22: Business Strategy: Outlook for International Expansion
Business Strategy: Outlook for International Expansion Promote unique international strategy through organic growth and lcoal partnerships Strengthening StrengtheningSoutheast SoutheastAsian Asianbusiness business Unique UniqueInternational InternationalExpansion ExpansionStrategy Strategy base base
Slide 23: Business Strategy: Domestic Business Initiatives
Business Strategy: Domestic Business Initiatives Strengthen profitability of stable revenue sources by concentrating resources on premium assets Narrowing Narrowingthe thebrand branduniverse universeand Bolster Bolstersoft softdrinks drinks/ /foods foods/ /restaurant and restaurant Use Useof of“prem
Slide 24: Growth Strategies and Future Policies
Growth Strategies and Future Policies Strategic StrategicInvestments Investmentsin inFirst First99months monthsof of2011 2011 Direction Directionof ofStrategic StrategicLong-Term Long-TermInvestments Investments Acquisition of shares related to integration of POKKA CORPORATION ¾ Investment plans wil
Slide 25: For Reference: 2011 Full-Year Earnings Forecasts
4. 4.For ForReference:2011 Reference:2011Full-Year Full-YearEarnings EarningsForecasts Forecasts ※The company has made no revisions to its consolidated earnings forecast for the year ending December 31, 2011, since it last revised its forecast on June 30, 2011. Please also refer to our June 30 news
Slide 26: 2011 Consolidated Earnings Forecasts (vs 2010)
2011 Consolidated Earnings Forecasts (vs 2010) We expect consolidated sales to rise as positive contributions from the International Alcoholic Beverages and Soft Drinks combine with the consolidation of the POKKA Group to offset disaster-induced earnings declines at the Japanese Alcoholic Beverages
Slide 27: 2011 Operating Income Forecasts (vs 2010) by Segment
2011 Operating Income Forecasts (vs 2010) by Segment In addition to the consolidation of the POKKA Group, we expect positive contributions to operating income from all segments except International Alcoholic Beverages, where earnings will be weighed down by investments in Vietnam, and Soft Drinks, w