Slide 1: Sapporo Group Business Results Presentation, Three Months ended March 31, 2011
2011 Sapporo Group Business Results Presentation for the Three Months ended March 31, 2011 May 11, 2011 Sapporo Holdings Ltd. URL http://www.sapporoholdings.jp Copyright, 2011 SAPPORO HOLDINGS LTD. All rights reserved. 1/30
Slide 2: Contents
Contents 1. Overview of First-Quarter 2011 Results 2. 2011 Full-Year Earnings Forecasts 3. Operating Results by Segment 4. Growth Strategy and Future Policies 5. Integration with POKKA CORPORATION For Reference: Overview of POKKA CORPORATION Performance for April 2010 – March 2011 Copyright, 2011 SA
Slide 3: Overview of First-Quarter 2011 Results
1. 1.Overview Overviewof ofFirst-Quarter First-Quarter2011 2011Results Results Copyright, 2011 SAPPORO HOLDINGS LTD. All rights reserved. 3/30
Slide 4: Overview of First-Quarter 2011 Results – Consolidated
Overview of First-Quarter 2011 Results – Consolidated The Japanese Alcoholic Beverages and Restaurants businesses’ sales fell as a direct result of the Great East Japan Earthquake. Operating income rose by ¥0.2 bn year over year on improved profits in the International Alcoholic Beverages and Soft D
Slide 5: Overview of First-Quarter 2011 Results – By Segment
Overview of First-Quarter 2011 Results – By Segment The International Alcoholic Beverage business achieved profit growth even with upfront investment of ¥0.2 bn in Vietnam. Soft Drinks and Real Estate also posted profit growth. Consolidated operating loss narrowed by ¥0.2 bn. Fixed expenses totaling
Slide 6: Overview of First-Quarter 2011 Results – Earthquake's Impact
Overview of First-Quarter 2011 Results – Earthquake’s Impact Breakdown Breakdownof of¥1.9 ¥1.9bn bn in inquake-related quake-relatedlosses lossestaken takenin in1Q 1Q Main Mainitems itemsin inquake-related quake-relatedlosses lossestaken takenin in1Q 1Q ¾ Fixed asset disposals and inventory losses ¾
Slide 7: 2011 Full-Year Earnings Forecasts
2. 2.2011 2011Full-Year Full-YearEarnings EarningsForecasts Forecasts Copyright, 2011 SAPPORO HOLDINGS LTD. All rights reserved. 7/30
Slide 8: Outlook for 2011 Full-Year
Outlook for 2011 Full-Year The Sapporo Group Management Plan 2011-2012 was unveiled on February 10. However, because it is not yet possible to reasonably estimate the earthquake’s impact, we are unable to provide a fair, reliable disclosure to our shareholders and investors. We intend to revise our
Slide 9: Operating Results by Segment
3. 3.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. 9/30
Slide 10: 1Q Results: Japanese Alcoholic Beverages Business (1)
1Q Results: Japanese Alcoholic Beverages Business (1) (billions of yen) Year-over-year changes Results Resultshighlights highlights 2010 2011 Amount % Earthquake’s impact reduced sales Net sales 53.9 49.2 (4.6) (8.6)% Facility expenditure and other cost cuts Operating income down ¥0.1 bn Operating (
Slide 11: 1Q Results: Japanese Alcoholic Beverage Business (2)
1Q Results: Japanese Alcoholic Beverage Business (2) Key Impact Impactof ofGreat GreatEast EastJapan JapanEarthquake Earthquake(1Q) (1Q)and and Keypoints pointsin inbusiness businessplan: plan:implementation implementationstatus status current status of restoration efforts current status of restorat
Slide 12: 1Q Results: International Alcoholic Beverages (1)
1Q Results: International Alcoholic Beverages (1) (billions of yen) Results Resultshighlights highlights Year-over-year changes Quarterly sales up 3.8% YoY, led by solid sales increases in North American business 2010 2011 Amount % Operating loss shrunk by ¥0.1 bn despite Net sales 5.2 5.4 0.1 3.8%
Slide 13: 1Q Results: International Alcoholic Beverages (2)
1Q Results: International Alcoholic Beverages (2) Key Keypoints pointsin inbusiness businessplan: plan:implementation implementationstatus status Developments in Singapore 2. Expansion in Asian market ¾ Expanding imported beer sales in local Developments in Vietnam household market in cooperation wi
Slide 14: 1Q Results: Soft Drinks
1Q Results: Soft Drinks (billions of yen) Results Resultshighlights highlights Year-over-year changes Achieved large YoY sales increase in 1Q despite impact of earthquake and flat industrywide demand 2010 2011 Amount % 2011 monthly sales volume (as % of year-ago) – Soft Drinks 115 ％ 当社 Total 総需要 Net
Slide 15: 1Q Results: Restaurants
1Q Results: Restaurants (billions of yen) Results Resultshighlights highlights Year-over-year changes The earthquake hit amid an already tough competitive 2010 2011 Amount % environment as consumers sought to cutback on spending. Consumer spending thus fell sharply. Net sales 5.9 4.7 (1.1) (20.0)% C
Slide 16: 1Q Results: Real Estate (1)
1Q Results: Real Estate (1) (billions of yen) Results Year-over-year changes Resultshighlights highlights Even absent signs of improvement in 2010 2011 Amount % vacancy rates and rents in the Greater Net sales 5.7 5.7 (0.0) (0.6)% Tokyo office leasing market, we are maintaining stable revenue stream
Slide 17: 1Q Results: Real Estate (2)
1Q Results: Real Estate (2) Overview Overviewof ofour ourReal RealEstate Estatebusiness business ¾ The majority of our Real Estate business’s operating income comes from real estate leasing – The business’s portfolio largely comprises properties in metropolitan Tokyo (i.e., the 5 central wards; see
Slide 18: Growth Strategy and Future Policies
4. 4.Growth GrowthStrategy Strategyand andFuture FuturePolicies Policies Copyright, 2011 SAPPORO HOLDINGS LTD. All rights reserved. 18/30
Slide 19: Growth Strategy and Future Policies
Growth Strategy and Future Policies Strategic Strategicinvestments investmentsoutlays outlaysin in1Q 1Q Direction Directionof oflong-term long-termstrategic strategicinvestment investment Additional acquisition of shares in conjunction with integration with POKKA CORPORATION ¾ Investment plans will
Slide 20: Integration with POKKA CORPORATION
5. 5.Integration Integrationwith withPOKKA POKKACORPORATION CORPORATION Copyright, 2011 SAPPORO HOLDINGS LTD. All rights reserved. 20/30
Slide 21: Steps to Integration
Steps to Integration Toward Toward Launch Launch of of the the New New Organizational Organizational Structure Structure in in April April 2012 2012 Integration Integrationcommittee committee(S APPORO-POKKA Alliance (SAPPORO-POKKA AllianceCommittee Committee) ) established establishedon onMarch Marc
Slide 22: Future Plans: Integration Committee Discussions Commenced
Future Plans Integration Integration Committee Committee Discussions Discussions Commenced Commenced Integration Integrationcommittee committeestructure structure ••Integration Integrationcommittee committee(SAPPORO-POKKA (SAPPORO-POKKAAlliance AllianceCommittee) Committee)established established on
Slide 23: Integration with POKKA (1) Beverages and Foods Business Strengths
Integration with POKKA (１) Beverages and Foods Business Strengths POKKA’s Impact Impactofofintegration integrationwith withPOKKA POKKA’sstrengths strengths POKKA 1. Major player in beverages and foods business ¾ High market shares in lemon-juice beverages and soups Post-consolidation net sales (bn y
Slide 24: Integration with POKKA (2) Accelerating International Expansion
Integration with POKKA (2) Accelerating International Expansion Asia Asia North NorthAmerica America POKKA Hong Kong <Restaurants> Net sales: ¥3.5bn (actual for FY ended Mar. 2011) SAPPORO VIETNAM LTD. Net sales: $128mn (2019 target) Overseas sales (¥bn) and their ratio to total sales (%) 600 60.0 1
Slide 25: For Reference: Overview of POKKA CORPORATION
For ForReference: Reference:Overview Overviewof ofPOKKA POKKACORPORATION CORPORATION Performance Performancefor forApril April2010 2010––March March2011 2011 Copyright, 2011 SAPPORO HOLDINGS LTD. All rights reserved. 25/30
Slide 26: POKKA CORPORATION Performance for Apr. 2010 – Mar. 2011
Ref: POKKA CORPORATION Performance for Apr. 2010 – Mar. 2011 Net sales up by ¥2.0bn year over year on ¥1.1bn growth in Beverages & Foods (Overseas), ¥0.4bn growth in Beverages & Foods (Japan), and ¥0.4bn growth in Restaurants (Overseas). Consolidated operating income up by ¥2.1bn year over year on r
Slide 27: Segment Overview—POKKA: Beverages and Foods Business (Japan)
Ref: Segment Overview—POKKA CORPORATION Beverages and Foods Business (Japan) POKKA CORPORATION Operates a nation-wide network of beverage vending machines based on its core lemon-based products, coffee, and soups businesses. Lemon-based Vending Coffee Soups products machines Fine Fine flavors flavor
Slide 28: Segment Overview—POKKA: Beverages and Foods Business (Overseas)
Ref: Segment Overview—POKKA CORPORATION Beverages and Foods Business (Overseas) Pokka Corporation Singapore Pte Ltd Established in 1977. In 1993, Pokka Corporation Singapore established a joint-venture company, Pokka Ace (M) Sdn. Bhd., in Malaysia. Pokka Corporation Singapore manufactures and sells
Slide 29: Segment Overview—POKKA: Restaurants (Japan and Overseas)
Ref: Segment Overview— POKKA CORPORATION Restaurants (Japan) POKKA CREATE Co., Ltd. Operates coffee shop franchise Cafe de Crie: 102 locations in the Kanto area, 32 in the Tokai area, 19 in the Kansai area, 1 in the Kyusyu area. Total: 154 locations (as (as of of April April 2011) 2011) Ref: Segment
Slide 30: Segment Overview—POKKA: Other Businesses
Ref: Segment Overview— POKKA CORPORATION’s Other Businesses Foremost Blue Seal, Ltd. Manufacture/sale Manufacture/sale of of Blue Blue Seal Seal ice ice cream cream "Born "Born in in America America and and raised raised in in Okinawa" Okinawa" POKKA POKKA Logistics Logistics Co., Co., Ltd. Ltd. Tra