Sapporo Holdings Limited · TSE:2501

Sapporo — Q1 2021 Earnings Presentation

33 slides from Sapporo's earnings presentation, May 7, 2021

  1. Slide 1: Sapporo Group Business Results Presentation for the Three Months Ended March 31, 2021

    Sapporo Group Business Results Presentation for the Three Months Ended March 31, 2021 *In this document, the following company name abbreviations are used: May 7th 2021 SH: Sapporo Holdings Limited SB: Sapporo Breweries Ltd. SLN: Sapporo Lion Limited. URL https://www.sapporoholdings.jp/en/ PS: Pokka

  2. Slide 2: Agenda

    １． Business Results for the Three Months Ended March 31, 2021 ・・・P3~P20 2． Appendix ・・・P21~P33 Copyright, 2021 SAPPORO HOLDINGS LTD. All rights reserved. 2/33

  3. Slide 3: Business Results

    Business Results Copyright, 2021 SAPPORO HOLDINGS LTD. All rights reserved. 3/33

  4. Slide 4: Review of Three Months Ended March 31, 2021: Result

    Review of Three Months Ended March 31, 2021: Result Beer continued to see strong sales of core brands. New product Koime no Lemon Sour became a hit, greatly boosting RTD sales. Lemon-based products and plant-based milk products maintain solid performance. Black Label brand canned YEBISU brand canned

  5. Slide 5: Review of Three Months Ended March 31, 2021: Issues

    Review of Three Months Ended March 31, 2021: Issues Sales of commercial-use beer, sales at restaurants, and sales of soft drinks for vending machines declined substantially due to COVID-19. In new genre beer sector, GOLD STAR sales grew, but Mugi to Hop sales struggled. Beer (bottles・kegs） Sapporo L

  6. Slide 6: Results Highlight

    Results Highlight 2020 1Q 2021 1Q YoY changes YoY changes （billions of yen） Result Result (amount) (%) Revenue 99.8 (9.9%) Revenue（Excluding liquor tax） 77.1 68.5 (8.6) (11.2%) Overseas revenue 15.2 14.3 (1.0) (6.3%) EBITDA (0.1) (1.7) (1.6) ー Core operating profit (6.2) ー Core operating profit marg

  7. Slide 7: Results Highlight

    Results Highlight Overall revenue and profits for 1Q declined due to the impacts of COVID-19 from the start of the year. Revenue Core operating profit Profit attributable to owners of parent (billions of yen) (billions of yen) (billions of yen) Down Down Down 150 y-o-y y-o-y y-o-y 100 0 (2) (6.2) (6

  8. Slide 8: Results Highlight

    Results Highlight Despite a drop in overall profit, core operating profit excluding the restaurant business was roughly on par with the previous year. ◆ Breakdown showing core operating profit for restaurants and other (billions of yen) Up businesses y-o-y (1) Excl. restaurant-related companies* 0 C

  9. Slide 9: Results Highlight

    Results Highlight Balance of net debt Equity Capital expenditure (cash basis) 2020 1Q 2020 1Q 2021 Plan End of 2020 End of 2020 2021 1Q 213.1 221.5 228.5 2021 1Q 152.7 149.6 145.6 33.4 5.8 (Progress: 17%) （billions of yen） Result of 2021 1Q D/E ratio (net) Up 20% YoY （billions of yen） （billions of y

  10. Slide 10: Revenue by Segment

    Revenue by Segment 2020 1Q 2021 1Q YoY changes YoY changes （billions of yen） Result Result (amount) (%) Revenue by Segment 99.8 (9.9%) Alcoholic Beverages 63.4 (10.6%) Japanese 48.6 44.7 (3.9) (8.0%) Overseas 10.3 10.2 (0.1) (1.0%) Restaurants 4.5 1.8 (2.7) (60.4%) Food & Soft Drinks 30.3 (9.1%) Rea

  11. Slide 11: Main Contributors to Changes in Revenue

    Main Contributors to Changes in Revenue Revenue of RTD rose, but declined for beer, restaurants and soft drinks, resulting = Increase in a net decrease of yen billion year on year. = Decrease Alcoholic Beverages Food & Soft Drinks Real Estate 2020 1Q Japanese liquor: 0.3 Canada: 0.3 (Alcohol tax rev

  12. Slide 12: Core Operating Profit by Segment

    Core Operating Profit by Segment 2020 1Q 2021 1Q YoY changes YoY changes （billions of yen） Result Result (amount) (%) Core Operating Profit by Segment (6.2) ー Alcoholic Beverages (4.6) ー Japanese (2.9) (3.0) (0.1) ー Overseas (0.6) (0.3) 0.3 ー Restaurants (1.2) (1.7) (0.5) ー Food & Soft Drinks (1.4)

  13. Slide 13: Main Contributors to Changes in Core Operating Profit

    Main Contributors to Changes in Core Operating Profit In Alcoholic Beverages and Food & Soft Drinks segments, we worked to reduce fixed costs, = Increase but fell short of covering the drop in revenue, resulting in a year-on-year decline of billion = Decrease yen. Alcoholic Beverages Food & Soft Dri

  14. Slide 14: Profit attributable to owners of parent

    Profit attributable to owners of parent 2020 1Q 2021 1Q （billions of yen） Details Details Result Result Core operating Profit (6.2) Other operating Proceeds from sale of real income 0.4 1.3 estate +0.9 Other operating expenses 0.2 0.6 Operating Profit (6.1) (6.2) Profit before tax (6.3) (6.2) Income

  15. Slide 15: Alcoholic Beverages

    Alcoholic Beverages Downtrodden conditions in commercial-use beer and the restaurant business due to COVID-19, while home-use beer and RTD products posted strong sales. Progress with cost structure reforms in the restaurant business helped to slow the decrease in profits. ＜Revenue＞ (billions of yen)

  16. Slide 16: Food & Soft Drinks

    Food & Soft Drinks Sales of soft drinks for vending machines and cafés struggled due to the pandemic. Lemon-based products and plant-based milk products recorded strong sales. Profit increased amid cost controls and a reduction in depreciation owing to the previous year’s impairment. ＜Revenue＞ (bill

  17. Slide 17: Real Estate

    Real Estate Slight decline in revenue amid the impacts after some tenants left. ＜Revenue＞ Positive (billions of yen) 8 Down ➢ Decide on tenants for the food and lifestyle floor ahead of the remodeling of y-o-y Yebisu Garden Place Tower (commercial wing). 6 ➢ Promote strategic reshuffling of properti

  18. Slide 18: Changes in Balance Sheets

    Changes in Balance Sheets Total assets declined 13.9 billions yen YoY Cash and cash equivalents Total assets Total assets Trade receivables 19.7 19.1 ➢ Impacts of seasonal factors and bank holidays 84.5 60.8 Current assets Change Inventories 36.0 39.8 (21.0) 20.6 20.1 Other current assets 135.7 138.

  19. Slide 19: Changes in Balance Sheets

    Changes in Balance Sheets Total liabilities declined 10.0 billions yen YoY and total capital declined 3.9 billions yen YoY Total liabilities and Total liabilities and Trade payable equity equity Short-term financial liabilities 31.9 30.5 83.2 90.5 Current liabilities Change Other current liabilities

  20. Slide 20: Financial Status

    Financial Status Investment on a cash basis was ¥ billion <Consolidated cash flow (CF) statement> <Investment total (①＋②＋③)> ¥ billion 2020 1Q 2021 1Q (billions of yen) Change Change (%) Result Result ➀ Capital expenditure (cash basis): ¥ billion CF from operating activities 11.2 2.1 (9.1) (81.4%) (

  21. Slide 21: Appendix

    Appendix Copyright, 2021 SAPPORO HOLDINGS LTD. All rights reserved. 21/33

  22. Slide 22: Appendix: Major sales volume & sale

    Appendix： Major sales volume & sale (Beer and beer-type beverages and non-alcoholic beer calculations based on large bottles, Sales:Beer (Japan) *including liquor tax (billions of yen) RTDs are calculated by 250 ml × 24 bottles.) Sales Volume:Beer (Japan) (10,000 cases) Jan. 1 - Jan. 1 - YoY Mar.31,

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

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

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

    Appendix：Alcoholic Beverages (Japan) ＜Main brand Jan- Mar Sales volume change＞ ＜ Beer lineup sales volume(Jan- Mar break down) ＞ (10,000 cases) 400 350 18% 300 250 25% 200 150 100 57% 50 Black Label brand total YEBISU brand total Others 0 2015 2016 2017 2018 2019 2020 2021 Black Label brand total YE

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

    Appendix：Alcoholic Beverages (Japan) ＜ Jan- Mar sales revenue ＞ ＜ Jan- Mar sales breakdown by category ＞ (billions of yen) ※Incl. liquor tax 50.0 10% 1% 40.0 19.3 12.7 8% 49% 13.9 11.7 Beer 14.4 9.8 12.3 Happoshu & New genre 30.0 12.1 7% Wine & Spirits Japanese liquor RTD 20.0 Non-alcoholic beer 29.

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

    Appendix：Alcoholic Beverages (Japan) ＜ Jan- Mar sales revenue ＞ (billions of yen) *From 2021, Hyosai Sour and 99.99 keg are reclassified from Spirits to RTD. 0.2 0.4 1.6 1.6 1.7 1.6 0.4 1.6 1.5 1.3 4.5 0.4 4.0 0.3 2.9 1.2 1.1 1.1 1.1 0.3 0.3 1.9 0.9 0.9 0.8 1.5 0.9 1.0 2015 2016 2017 2018 2019 2020

  27. Slide 27: 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. 27/33

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

    Appendix：Alcoholic Beverages (Overseas) ＜Overseas beer : YoY change in sales volume＞ ＜ Overseas sales volume by brand (Jan-Mar) ＞ （10,000 cases） 【North America Total down % y-o-y 500 (Jan – Mar) ✓ Overseas brand 400 121 up ％ y-o-y 300 104 200 ✓ Sapporo brand 277 277 100 down ％ y-o-y 0 2020 2021 Over

  29. Slide 29: Appendix: Alcoholic Beverages (Restaurants)

    Appendix：Alcoholic Beverages (Restaurants) ＜ Sales revenue and number of Sapporo Lion Outlets ＞ ＜Sapporo Lion outlets As of Mar 31, 2021 ＞ (Billions of yen) ※before rebate deduction （Jan- Mar） 6.0 200 179 174 11 Tokyo Metroporitan 5.0 170 170 180 8 162 Kanto (excl. Tokyo) 4.0 155 3.0 160 11 Hokkaido

  30. Slide 30: Appendix: Food & Soft Drinks

    Appendix：Food & Soft Drinks ＜ Japanese soft drinks ＜ Japanese soft drinks POKKA SAPPORO Food & Beverage ＞ POKKA SAPPORO Food & Beverage ＞ Sales volume & Sales by genre(Jan- Mar) Sales composition by sales channel (Jan- Mar) 【Lemon based-drinks】 【Lemon-based food products】 39% ✓ up ％ y-o-y ✓ up ％ y-o

  31. Slide 31: Appendix: Food & Soft Drinks

    Appendix：Food & Soft Drinks ＜ Food & Soft Drinks segment Revenue break down by geographic area ＞ 【 Pokka Create Co., Ltd .】 ※Except connection adjustment ✓ Jan- Mar Sales revenue billion 84% down ％ y-o-y ＜ Number of outlets as of Mar 31, 2021> 16% 109 56 East Japan 201 outlets Central Japan Japan Ov

  32. Slide 32: Appendix: Real Estate

    Appendix：Real Estate ＜ Information about ＜ Major rental properties & occupancy rates：（Averages for 2021 1Q )> Investment property ＞ (billions of yen) Occupa 400.0 Site area Floor area ncy rate No. of floors （㎡） （㎡） （%） 300.0 40 floors above ground, Yebisu Garden Place（1） 56,943 298,007 90 408.1 5 be

  33. Slide 33: As an intrinsic part of people's lives, Sapporo will contribute to the evolution of 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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