Sapporo Holdings Limited · TSE:2501
Sapporo — FY2024 Earnings Presentation
48 slides from Sapporo's earnings presentation, Feb 14, 2025
Slide 1: Sapporo Group Business Results for 2024 / Management Plan for 2025
Sapporo Group Business Results for 2024 Management Plan for 2025 *In this document, the name abbreviations are used: February 14, 2025 SH: Sapporo Holdings Limited SB: Sapporo Breweries Ltd. SLN: Sapporo Lion Limited. URL https://www.sapporoholdings.jp/en/ PS: Pokka Sapporo Food & Beverage Ltd. SRE:
Slide 2: Contents
1. Summary ・・・ P.3~P.4 2. Progress of the Medium-Term Management Plan(2023-2026) ・・・ P.5~P.7 3. Financial results for fiscal year 2024 ・・・ P.8~P.16 4. Management Plan for fiscal year 2025 ・・・ P.17~P.34 5. Appendix ・・・ P.35~P.47 *For details on the results of the review of the Medium- to Long-Term Po
Slide 3: 1. Summary
1. Summary Copyright, 2025 SAPPORO HOLDINGS LTD. All rights reserved. 3/48
Slide 4: Summary
Summary 2024 Financial Results: Despite a net profit decline due to impairment losses in the overseas alcoholic beverages segment (U.S. business), core operating profit increased ⚫ Strengthening the domestic beer business and structural reforms across various segments led to core operating profit ex
Slide 5: 2. Progress of the Medium-Term Management Plan (2023-2026)
2. Progress of the Medium-Term Management Plan (2023-2026) Copyright, 2025 SAPPORO HOLDINGS LTD. All rights reserved. 5/48
Slide 6: Progress on the Medium-Term Management Plan: Toward Achieving the 2026 Financial Targets
Progress on the Medium-Term Management Plan (2023–2026): Toward Achieving the 2026 Financial Targets ◼ Core operating profit is steadily increasing through improvements in the profitability of each business. The company is now at a stage where achieving an ROE of 8% in 2026 is well within sight. Cor
Slide 7: Progress on the Medium-Term Management Plan: Results up to 2024
Progress on the Medium-Term Management Plan (2023–2026): Results up to 2024 ◼ In 2024, initiatives were implemented on both fronts: strengthening & growth, and structural reforms & business liquidation ◼ In the overseas alcoholic beverages segment (U.S. business), new challenges emerged, and measure
Slide 8: 3. Financial results for fiscal year 2024
3. Financial results for fiscal year 2024 Copyright, 2025 SAPPORO HOLDINGS LTD. All rights reserved. 8/48
Slide 9: Financial Highlights 2024
Financial Highlights 2024 2023 2024 YoY changes YoY changes （¥ bn） Results Results (amount) (%) Revenue 518.6 530.8 +12.2 +2.3% Revenue（Excluding liquor tax） 400.8 413.0 +12.2 +3.0% Overseas revenue 119.6 128.5 +8.8 +7.4% EBITDA 36.0 44.0 +8.0 +22.3% Core operating profit 15.6 22.0 +6.4 +41.0% Core
Slide 10: Recording of impairment loss in U.S. business
Recording of impairment loss in U.S. business (Supplementary Explanatory Material for Timely Disclosure on January 30, 2025 (Reprint)) ◼ Established a local production and sales system for the growth of the Sapporo brand, but faced unexpected challenges and profitability declined significantly ◼ Rev
Slide 11: Future measures for the U.S. business
Future measures for the U.S. business (Supplementary Explanatory Material for Timely Disclosure on January 30, 2025 (Reprint)) ◼ Restructuring the U.S. business is an urgent issue for the future growth of the overseas alcoholic beverages business ◼ Review overseas management not only in the U.S. but
Slide 12: Changes in Business Management under the New Structure
Changes in Business Management under the New Structure In our future transition to a business holding company structure, we will strengthen management by dividing our businesses into two geographic segments: Domestic and Overseas. This will enable each segment to focus its resources on addressing un
Slide 13: Financial Highlights 2024
Financial Highlights 2024 YoY YoY YoY YoY 2023 2024 2023 2024 (¥ bn) changes changes (¥ bn) changes changes Result Result (amount) (%) Result Result (amount) (%) Revenue by Segment 518.6 530.8 +12.2 +2.3% Core Operating Profit by Segment 15.6 22.0 +6.4 +41.0% Alcoholic Beverages 376.9 388.2 +11.3 +3
Slide 14: Financial Highlights 2024: Revenue changes
Financial Highlights 2024 Revenue increased by 12.2 billion yen (+2.3%) driven by growth in the alcoholic beverages and real estate businesses. - Alcoholic beverages (Japan) saw revenue growth due to strengthened beer sales and the impact of price revisions, while the real estate business benefited
Slide 15: Financial Highlights 2024: Core operating profit changes
Financial Highlights 2024 Alcoholic beverages (Japan) and the real estate business drove overall growth, leading to a core operating profit increase of 6.4 billion yen (+41.0%). - Alcoholic beverages (Japan) saw profit growth due to strengthened beer sales, improved product mix, and the impact of pr
Slide 16: Financial Highlights 2024: Balance sheet
Financial Highlights 2024: Balance sheet ◼ While advancing asset-light initiatives, including the sale of cross-shareholdings, and reducing assets by 19.7 billion yen, total assets increased by 1.4 billion yen compared to the end of the previous fiscal year due to an increase in business assets (suc
Slide 17: 4. Management Plan for fiscal year 2025
4. Management Plan for fiscal year 2025 Copyright, 2025 SAPPORO HOLDINGS LTD. All rights reserved. 17/48
Slide 18: Main progress toward business portfolio transformation
Main progress toward business portfolio transformation ◼ Structural reforms initially planned in the current Medium-Term Plan are progressing smoothly and are largely complete - ① Restructuring: Structural reforms in the restaurants segment have been completed. Business Liquidation: Business exits f
Slide 19: Figures based on the 2025 plan's assumptions
Figures based on the 2025 plan’s assumptions <Higher costs, such as surging raw material costs> A cost increase of 5.0 billion yen is expected year-on-year, but it will be absorbed through price revisions and other measures. Additional cost increase risks will be addressed as the situation is monito
Slide 20: Group Management Plan 2025
Group Management Plan 2025 2024 2025 YoY changes YoY changes （¥ bn） Result Plan (amount) (%) Revenue 530.8 532.0 +1.2 +0.2% Revenue（Excluding liquor tax） 413.0 415.8 +2.8 +0.7% Overseas revenue 128.5 130.3 +1.8 +1.4% EBITDA 44.0 46.7 +2.6 +6.0% Core operating profit 22.0 24.5 +2.5 +11.2% Core operat
Slide 21: Group Management Plan 2025: Financial Targets
Group Management Plan 2025: Financial Targets 【Financial Targets】 Progress towards 2026 Medium-Term 2022 Result 2024 Result 2025 Plan Plan target*2 Medium-Term Plan targets*3 ROE 3.3% 4.1% 5.5% 8.0% (Approximation) Core operating profit*1 9.3billion yen 22.0billion yen 24.5billion yen 25.0billion ye
Slide 22: Group Management Plan 2025
Group Management Plan 2025 YoY YoY YoY YoY 2024 2025 2024 2025 (¥ bn) changes changes (¥ bn) changes changes Result Plan Result Plan (amount) (%) (amount) (%) Revenue by Segment 530.8 532.0 +1.2 +0.2% Core Operating Profit by Segment 22.0 24.5 +2.5 +11.2% Alcoholic Beverages 388.2 393.5 +5.3 +1.4% A
Slide 23: Group Management Plan 2025: Target for core operating profit
Group Management Plan 2025: Target for core operating profit 【Target for core operating profit】 2026 Medium-Term 2022 Result 2024 Result 2025 Plan Outlook for 2026*1 Plan target*2 Alcoholic beverages (Japan) 3.5% 6.0% 7.0% 7.5% 5.7% Alcoholic beverages (Overseas) (0.4%) 0.4% 0.4% 2.8% 6.2% Restauran
Slide 24: Group Management Plan 2025: Revenue changes
Group Management Plan 2025 Due to structural reforms, revenue of food & soft drink (Japan) is expected to decline, but overall revenue is projected to remain on par with the previous year (+1.2 billion yen), driven by growth in the alcoholic beverages business. - Alcoholic beverages (Japan): Revenue
Slide 25: Group Management Plan 2025: Core operating profit changes
Group Management Plan 2025 Strengthening beer and RTD in alcoholic beverages (Japan) is expected to drive an overall profit increase of 2.5 billion yen (+11.2%). - Alcoholic beverages (Japan): While fixed costs will rise due to promotional investments ahead of the alcohol tax revision, profit growth
Slide 26: Business Strategies: Action Plan
Business Strategies: Action Plan On slides after p.27, we have included further explanations for action plan numbers (1-1) through (10) Details of the action plan will be disclosed appropriately . 2023 to 2024 2025 2026 Alcoholic Increase beer sales (1-1) ★ Alcohol tax revisions ★ Alcohol tax revisi
Slide 27: Business Strategies: Alcoholic Beverages (Japan)
Business Strategies: Alcoholic Beverages (Japan) 2024年（Result） 2025 (Plan) Revenue: ¥273.0 billion (YoY+¥4.7 bn, ＋1.7%) Revenue: ¥277.0 billion (YoY+¥4.0 bn, ＋1.5%) Core operating profit: ¥16.4 billion (YoY+¥2.2 bn, ＋15.6%) Core operating profit: ¥19.5 billion (YoY+¥3.1 bn, ＋18.9%) Reasons for chang
Slide 28: Business Strategies: Alcoholic Beverages (Japan)
Business Strategies: Alcoholic Beverages (Japan) 2024 (Result) 2025 (Plan) ⚫Increase RTD sales (1-2) ✓ RTD exceeded the previous year's level ✓ Drive continuous growth by strengthening core brands and introducing new products • While new product launched last year struggled to gain traction and fell
Slide 29: Business Strategies: Alcoholic Beverages (Overseas)
Business Strategies: Alcoholic Beverages (Overseas) 2024 (Result) 2025 (Plan) Revenue: ¥94.3 billion (YoY+¥5.7 bn, ＋6.5%） Revenue: ¥95.0 billion (YoY+¥0.7 bn, ＋0.7%) Core operating profit: ¥0.4 billion (YoY+¥0.7 bn) Core operating profit: ¥0.4 billion (YoY+¥0.0 bn, +3.9%) Reasons for changes in core
Slide 30: Business Strategies: Alcoholic Beverages (Restaurants)
Business Strategies: Alcoholic Beverages (Restaurants) 2024 (Result) 2025 (Plan) Revenue: ¥20.9 billion (YoY+¥0.9 bn, ＋4.5%) Revenue: ¥21.5 billion (YoY+¥0.6 bn, ＋3.0%) Core operating profit: ¥1.9 billion (YoY (¥0.2) bn, (7.8%)） Core operating profit: ¥2.0 billion (YoY+¥0.0 bn, +0.8%) Reasons for ch
Slide 31: Business Strategies: Food & Soft Drinks (Japan)
Business Strategies: Food & Soft Drinks (Japan) 2024 (Result) 2025 (Plan) Revenue: ¥90.7 billion (YoY(¥2.7) bn, (2.9%)) Revenue: ¥85.0 billion (YoY(¥5.7) bn, (6.3%)) Core operating profit: ¥2.2 billion (YoY+¥0.1 bn, ＋3.9%) Core operating profit: ¥2.9 billion (YoY+¥0.6 bn, ＋28.6%) Reasons for changes
Slide 32: Business Strategies: Soft Drinks (Overseas)
Business Strategies: Soft Drinks (Overseas) 2024 (Result) 2025 (Plan) Revenue: ¥27.2 billion (YoY+¥0.8 bn, ＋2.9%) Revenue: ¥28.0 billion (YoY+¥0.8 bn, ＋2.9%) Core operating profit: ¥1.2 billion (YoY+¥1.8 bn) Core operating profit: ¥1.3 billion (YoY+¥0.1 bn, +11.5%) Reasons for changes in core operat
Slide 33: Business Strategies: Real Estate Business
Business Strategies: Real Estate Business 2024 (Result) 2025 (Plan) Revenue: ¥24.6 billion (YoY+¥2.9 bn, ＋13.4%) Revenue: ¥25.5 billion (YoY+¥0.9 bn, +3.6%) Core operating profit: ¥7.8 billion (YoY+¥2.1 bn, +35.7%) Core operating profit: ¥7.0 billion (YoY(¥0.8) bn, (10.8%)) EBITDA: ¥14.0 billion (Yo
Slide 34: Business Strategies: Action Plan KPI
Business Strategies : Action Plan KPI ※1 Forex assumption: ¥130 2026 Medium-Term ※2 Local currency basis (Singapore dollar) 2022 Result 2024 Result 2025 Plan Plan target Alcoholic Reinforcement of Beer / Improving Profitability of Beer-type Bev. Beverages Increase beer sales: share of beer sales （1-
Slide 35: Appendix
Appendix Copyright, 2025 SAPPORO HOLDINGS LTD. All rights reserved. 35/48
Slide 36: Sustainability management initiatives
Sustainability management initiatives Implementation of specific actions in line with material issues set from the perspective of relevance to each business, degree of impact on society and environment, and the Company's finances. In January 2025, Sustainability Material Issues were updated. Additio
Slide 37: Sustainability management initiatives
Sustainability management initiatives Information on priority issues, goals and progress in sustainability here Harmony with the Environment Co-prosperity with Society Start of disclosure of nature-related financial information integrated with “initiatives Full-fledged development of “regional devel
Slide 38: Financial strategy: progress in cash allocation
Financial strategy: progress in cash allocation ・Securing financial flexibility for growth investment opportunities through a review of the real estate business investment policy and promotion of an asset-light strategy Progress of shareholder return policy ■4-year cash allocation (2023-2026 Plan) ・
Slide 39: Balance Sheets
Balance Sheets （billions of yen） Total assets End of 2023 End of 2024 Change Total liabilities and equity End of 2023 End of 2024 Change Cash and cash equivalents 17.2 24.1 6.9 Trade payables 38.7 38.0 (0.7) Trade receivables 98.0 99.5 1.4 Short-term financial liabilities 39.7 57.0 17.3 Inventories
Slide 40: Status of Each Cash Flow
Status of Each Cash Flow （billions of yen） 2023 2024 Change Change (%) CF from operating activities 45.4 36.1 (9.3) (20.5) CF from investing activities (16.4) (5.8) 10.6 ー Free CF 29.0 30.3 1.3 4.4 ＜Investment total（①＋②）＞ ¥ (5.8) billion CF from financing activities (27.1) (25.4) 1.8 ー ➀ Capital exp
Slide 41: Alcoholic Beverages Data
Alcoholic Beverages Data Japanese ※1: Following the agreement of the Brewers Association of Japan, The sales volume for the first half and end of the fiscal year shall be disclosed. (10,000 cases) ＜ Beer lineup sales volume (break down) ＞ (Jan – Dec) ＜10-year change in composition ratio of beer and
Slide 42: Alcoholic Beverages Data
Alcoholic Beverages Data Japanese ＜ Jan- Dec sales revenue ＞ (billions of yen) （billions of yen） YoY Sales:Beer (Japan) 2023 2024 Change(%) Beer 162.7 170.8 5.0% Happoshu (include happoshu (2)) 43.6 37.8 (13.4%) Beer-type beverages 206.3 208.6 1.1% RTD 26.7 28.2 5.7% Domestic wines 3.1 1.8 (42.3%) I
Slide 43: Alcoholic Beverages Data: Liquor tax changes
Alcoholic Beverages Data Japanese ＜Changes in the amount of liquor tax per 350 ml＞ （yen） 77 70 63.35 Beer ✓ Beer-type 54.25 Happoshu beverages Happoshu(2) 46.99 54.25yen RTD 37.8 35 ✓ RTD 28 35yen 2020 2023 2026 （year） Copyright, 2025 SAPPORO HOLDINGS LTD. All rights reserved. 43/48
Slide 44: Alcoholic Beverages Data: Overseas
Alcoholic Beverages Data Overseas (10,000 cases) YoY Sales Volume:Beer (International) 2023 2024 Change(%) Overseas brand (※1) 1,585 1,493 (5.8%) Sapporo brand 433 479 10.5% ①North America 2,019 1,972 (2.3%) Sapporo brand 282 404 43.0% ②Other areas 282 404 43.0% Total（①＋②） 2,301 2,375 3.2% Sapporo b
Slide 45: Alcoholic Beverages Data: Restaurants
Alcoholic Beverages Data Restaurants ＜Composition of Restaurants by Format＞ 127Outlets ＜Trend in Revenue of Restaurants Business and Number of Restaurants＞ （Jan-Dec） ＜Composition of Restaurants by Region＞ 127Outlets （billions of yen） （Restaurants） Bar graph: Trend in Restaurant business core operati
Slide 46: Food & Soft Drinks Data
Food & Soft Drinks Data Japanese （billions of yen） YoY Sales:Food & Soft Drinks (Japan) (※1) 2023 2024 Change(%) Soft Drinks 56.9 55.3 (2.8%) Food（Lemon・Soups・Plant milk) 30.3 27.5 (9.4%) ※1：Only domestic sales(Before Rebate subtracted from sales) 【Coffee drinks】 【Tea drinks】 ＜Japanese soft drinks S
Slide 47: Real Estate Data
Real Estate Data Real Estate ＜ Information about Investment property ＞ (billions of yen) Market value information will be updated in the first quarter materials of the next fiscal year ＜ Major rental properties & occupancy rates：（Averages for 2024 )> 400.0 Average Site area Floor area Occupancy 300.
Slide 48: 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