Sapporo Holdings Limited · TSE:2501

Sapporo — H1 2015 Earnings Presentation

25 slides from Sapporo's earnings presentation, Aug 6, 2015

  1. Slide 1: Sapporo Group Business Results Presentation for the Six Months Ended June 30, 2015

    2015 Sapporo Group Business Results Presentation for the Six Months Ended June 30, 2015 August 6, 2015 Sapporo Holdings Ltd. URL http://www.sapporoholdings.jp/english Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved. 1/26

  2. Slide 2: Contents

    Contents 1. First-Half 2015 Topics 2. Overview of First-Half 2015 Results Reference 1. Sapporo Group Management Plan 2015 - 2016 2. Supplementary Information to First-Half 2015 Results and Data Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved. 2/25

  3. Slide 3: 1. First-Half 2015 Topics

    1. First-Half 2015 Topics Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved. 3/25

  4. Slide 4: First-Half 2015 Group Topics

    First-Half 2015 Group Topics First-Half 2015 Results Operating income: down ¥2.2 billion Y-o-Y The group posted consolidated operating loss of ¥1.2 billion (compare with operating income of ¥1.0 billion a year earlier ). Japanese alcoholic beverages business income decline ¥1.9 billion year over ye

  5. Slide 5: First-Half 2015 Topics (1): Japanese Alcoholic Beverages

    First-Half 2015 Topics (1) Japanese Alcoholic Beverages  Sales volume of beer and beer-type beverages down 8% y-o-y (total demand down 1%) － intensified competition in happoshu and new genre Y-o-y change in beer sales volume % Summer: strong in industrial use Japanese beer business Black Label and

  6. Slide 6: First-Half 2015 Topics (2): International

    First-Half 2015 Topics (2) International  North American beer business is on a recovery track; competition intensifying in Vietnamese premium beer market , considering new development North American beer Focus on premium market, U.S. soft drinks business sales increasing Pursuing synergies business

  7. Slide 7: First-Half 2015 Topics (3): Food & Soft Drinks

    First-Half 2015 Topics (3) Food & Soft Drinks  Domestic soft drinks sales volume were up 3% y-o-y (total demand was unchanged), while both domestic food and overseas soft drinks businesses finished 1H with increased sales Domestic Food and Soft Drinks Lemon-based drinks and unsweetened tea led sale

  8. Slide 8: First-Half 2015 Topics (4): Restaurants

    First-Half 2015 Topics (4) Restaurants  The restaurants business in Japan maintained net sales at the same level as the previous year while it reduced the number of unprofitable restaurants Restaurants business in Japan Renewal open in April Trends of net sales and number of Billion Sapporo Lion ou

  9. Slide 9: First-Half 2015 Topics (5): Real Estate

    First-Half 2015 Topics (5) Real Estate  Yebisu Garden Place improved office occupancy rate. Drive forward refurbishment to boost <Yebisu Garden Place> attractiveness of the area  Tenant leasing has been progressing smoothly and the Trend of average occupancy rate of occupancy rate is expected to r

  10. Slide 10: 2. Overview of First-Half 2015 Results

    2. Overview of First-Half 2015 Results Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved. 10/25

  11. Slide 11: Overview of First-Half 2015 Results (1)

    Overview of First-Half 2015 Results (1) Special factors in 1Q and 2Q business results <Net sales> <Operating income> <Japanese Alcoholic Beverages><Restaurants> <International>  Change in reportable segment: New Sanko Inc.  Changed from Japanese Alcoholic Beverages to Restaurants  Account period

  12. Slide 12: Overview of First-Half 2015 Results (2)

    Overview of First-Half 2015 Results (2) YoY change 2014 2Q 2015 2Q (billions of yen) (amount, %)  Net sales: up YoY Japanese Alcoholic ・ Japanese Alcoholic Beverages: sales volume of beer and Beverages 126.8 121.6 (5.1) (4.0)% beer-type beverages significantly declined from the International 23.7 3

  13. Slide 13: Overview of First-Half 2015 Results (3): Net Sales Factors

    Overview of First-Half 2015 Results(3) Factors Contributing to Change in Net sales Japanese Foreign (billions of yen) food &Soft exchange Sale of some drinks 2015 2Q Increase Decrease Sales 0.9 rental properties Consolidated 0.6 (2.6) and sports increase facilities operator Net sales Overseas 1.9 So

  14. Slide 14: Overview of First-Half 2015 Results (4): Operating Income Factors

    Overview of First-Half 2015 Results (4) Factors Contributing to Changes in Operating Income 2014 2Q (billions of yen) Consolidated 2015 2Q Operating Increase Decrease Consolidated income Operating 1.0 income (1.2） y-o-ｙ Japanese food &Soft （2.2) drinks Ingredients ±0 Sales cost North America volume

  15. Slide 15: Overview of First-Half 2015 Results (5): Strategic Investments

    Overview of First-Half 2015 Results(5) Implementation Status of Strategic Investments Direction of Long-Term Strategic Investments (Including Ordinary Capex, on a cash basis)  We will continue to actively carry out strategic ①<Capital expenditure and lease fees> investments for growth. Consolidated

  16. Slide 16: Reference 1: Sapporo Group Management Plan

    Reference 1: Sapporo Group Management Plan 2015-2016 *There has been no changes to the figures announced on February 12, 2015. Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved. 16/25

  17. Slide 17: 2015-2016 Targets Based on Current Businesses

    2015-2016 Targets Based on Current Businesses Management plan 2014 results 2015 targets 2016 targets New management framework Consolidated net sales *incl. liquor tax ¥518.7 bn ¥545.7 bn ¥579.5 bn ¥600.0 bn Consolidated operating income ¥18.4 bn ¥20.7 bn ¥28.0 bn (before goodwill amortization) ¥40.0

  18. Slide 18: 2015-2016 Targets Based on Current Businesses by Segment

    2015-2016 Targets Based on Current Businesses by Segment Management Plan 2014 results 2015 targets 2016 targets Japanese Alcoholic Beverages ¥281.8 bn ¥290.2 bn ¥305.0 bn International ¥49.6 bn ¥67.8 bn ¥76.0 bn Food & Soft Drinks ¥133.4 bn ¥133.7 bn ¥141.7 bn Net sales Restaurants ¥26.3 bn ¥27.2 bn

  19. Slide 19: Reference 2: Supplementary Information to First-Half 2015 Results and Data

    Reference 2: Supplementary Information to First-Half 2015 Results and Data *For information on the profitability of each business, please see the Supplementary Information to our Earnings Report. Copyright, 2015 SAPPORO HOLDINGS LTD. All rights reserved. 19/25

  20. Slide 20: Reference Material (1) Japanese Alcoholic Beverages

    Reference Material (1) Japanese Alcoholic Beverages Beer and Beer-type Beverages Data ＜Beer and beer-type beverages sales volume YoY change (Jan-Jun)＞ ＜Beer and beer-type beverages core brand sales volume YoY change (Jan-Jun)＞ 10,000 cases Total Beer, happoshu, new genre Sapporo Beer demand Beer, ha

  21. Slide 21: Reference Material (2) Japanese Alcoholic Beverages Multilayers

    Reference Material (2) Japanese Alcoholic Beverages Multilayers Jan-Jun sale value (billion yen) Wine Japanese Imported wine wine 6.0 6.2 Strategic alliances with global brands 5.1 5.5 5.7 3.5 3.3 3.4 2.8 3.1 Strategic partnership agreement with Treasury Wine Estates Japan (TWE) 2.3 2.3 2.3 2.7 2.5

  22. Slide 22: Reference Material (3) International business Data

    Reference Material (3) International business Data SLEEMAN Net Sales in Local Currency (Jan-Jun) Overseas expansion of SAPPORO brand (before elimination of inter-company transactions) Trend of overseas sales volume of SAPPORO brand products (Jan-Jun) (10,000 cases) Sapporo USA Net Sales in Local Cur

  23. Slide 23: Reference Material (4) Food & Soft Drinks Data

    Reference Material (4) Food & Soft Drinks Data Food & Soft Drinks <Soft Drinks (Japan): POKKA SAPPORO Food & Beverage Ltd.> <Lemon-based drinks> Japanese soft drinks sales composition POKKA SAPPORO Food & Beverage Japanese soft drinks sales volume by sales channel (Jan–Jun) sales composition (Jan-Ju

  24. Slide 24: Reference Material (5) Real Estate Data

    Reference Material (5) Real Estate Data Real Estate Occupancy rates are averages for Jan–Jun 2015 (contract basis). <Real Estate for Lease as of Dec. 31, 2014> Major rental properties in Site area Occupancy rate (m2) Floor area (m2) (%) No. of floors Tokyo’s 23 wards Balance sheet value at December

  25. Slide 25: 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. The earnings forecasts and forward-looking statements appearing in this document were prepared by the SAPPORO Group based on currently available information and its best

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