Sapporo Holdings Limited · TSE:2501

Sapporo — Q1 2020 Earnings Presentation

33 slides from Sapporo's earnings presentation, May 14, 2020

  1. Slide 1: Sapporo Group Business Results Presentation for the Three Months Ended March 31, 2020

    Sapporo Group Business Results Presentation for the Three Months Ended March 31, 2020 May 14th 2020 URL https://www.sapporoholdings.jp/en/ Copyright, 2020 SAPPORO HOLDINGS LTD. All rights reserved. 1/59

  2. Slide 2: １． Business Results for the Three Months Ended March 31, 2020 ・・・P3~P18 ２． Revision

    １． Business Results for the Three Months Ended March 31, 2020 ・・・P3~P18 ２． Revision of Consolidated Earnings Forecasts ・・・P19~P20 ３． Appendix ・・・P21~P33 Copyright, 2020 SAPPORO HOLDINGS LTD. All rights reserved. 2/59

  3. Slide 3: Business Results

    Business Results Copyright, 2020 SAPPORO HOLDINGS LTD. All rights reserved. 3/59

  4. Slide 4: Impact of the Novel Coronavirus Outbreak (COVID-19)

    Impact of the Novel Coronavirus Outbreak (COVID-19) Sapporo Group’s response policy and measures https://www.sapporoholdings.jp/announce/dit/?id=8643 - We are continuing production and logistics operations at our business bases in and outside Japan so as to fulfill our responsibility of supplying pr

  5. Slide 5: Results Highlight

    Results Highlight 2019 2020 YoY changes （billions of yen） 1Q 1Q (amount/%) Revenue Revenue（Excluding liquor tax） 77.4 77.1 (0.3) (0.3%) Overseas revenue 16.2 15.2 (0.9) (5.8%) EBITDA 0.2 (0.1) (0.3) - Core operating profit Core operating profit margin (5.7%) (6.2%) - - Operating profit (4.1) (6.1) (

  6. Slide 6: Results Highlight

    Results Highlight Overall revenue and profit declined. Food & Soft Drinks achieved revenue and profit growth and Real Estate performed solidly, but profitability worsened for Alcoholic Beverages, where the impact of the novel coronavirus outbreak appeared early on. YoY Core Operating YoY Profit attr

  7. Slide 7: Results Highlight

    Results Highlight Balance of net debt Equity Capital expenditure (cash basis) 2019期末 End of 2019 2020Q1 1Q 2020 212.1 213.1 2019期末 End of 2019 Full-year plan is under 2020Q1 1Q 2020 174.5 152.7 review (billions of yen) YoY change 6.1 D/E ratio (net) times +0.1 times (billions of yen) (billions of ye

  8. Slide 8: Revenue by Segment

    Revenue by Segment YoY changes YoY changes （billions of yen） 2019 1Q 2020 1Q (amount) (%) Revenue by Segment (1.1%) Alcoholic Beverages 66.3 (4.5%) Japan & Asia 50.0 (1.3) (2.6%) North America 10.3 (0.1) (1.4%) Restaurants 6.1 (1.5) (25.5%) Food & Soft Drinks 28.5 6.5% Real Estate 6.1 (0.2%) Other 0

  9. Slide 9: Main Factors Contributing to Changes in Revenue

    Main Factors Contributing to Changes in Revenue Revenue declined ¥ billion YoY due to stagnation of beer, RTDs, and restaurants, despite = Increase growth of new genre sales and contribution from Yasuma consolidation. = Decrease 2019 (billions of yen) Alcoholic Beverages Food & Soft Drinks Real Esta

  10. Slide 10: Core Operating Profit by Segment

    Core Operating Profit by Segment YoY changes YoY changes （billions of yen） 2019 1Q 2020 1Q (amount) (%) Core Operating Profit by Segment - Alcoholic Beverages (3.4) ‐ Japan & Asia (2.5) (0.3) ‐ North America (0.5) (0.1) - Restaurants (0.3) (0.8) - Food & Soft Drinks (2.0) - Real Estate 1.1 7.3% Othe

  11. Slide 11: Main Factors Contributing to Changes in Core Operating Profit

    Main Factors Contributing to Changes in Core Operating Profit Core operating profit declined ¥ billion due to decline in beer sales volume and restaurant stagnation, despite increased profit from Food & Soft Drinks and strong new genre = Increase performance = Decrease (billions of yen) Alcoholic Be

  12. Slide 12: Profit attributable to owners of parent

    Profit attributable to owners of parent （billions of yen） 2019 1Q （Details） 2020 1Q （Details） Core operating Profit (5.8) Other operating Proceeds from sale of income 2.7 Yebisu Square +1.9 Other operating expenses 1.1 Operating Profit (4.1) Profit before tax (4.5) Income taxes (0.9) Loss from disco

  13. Slide 13: Alcoholic Beverages

    Alcoholic Beverages Revenue and profit declined due to impact of novel coronavirus outbreak, even as total domestic sales volume of beer and beer-type products increased Positive  Strong performance of Black Label (cans) continued <Future initiatives>  New product GOLD STAR performing strongly  S

  14. Slide 14: Food & Soft Drinks

    Food & Soft Drinks Revenue and profit increased as sales volume of both soft drinks and food rose YoY, despite struggling with the impact of the novel coronavirus outbreak  Kireto Lemon continues to perform strongly Positive  LEMON MADE, reintroduced as a full-year product, <Future initiatives> al

  15. Slide 15: Real Estate Corporate, Other

    Real Estate High occupancy rates maintained at core properties, which are performing solidly Positive <Future initiatives>  High occupancy rates maintained at core properties  Secure profit by controlling fixed costs, capital expenditure, and sales promotion expenses <Topics>  Sapporo Real Estate

  16. Slide 16: Changes in Balance Sheets

    Changes in Balance Sheets Total assets decreased ¥29.6 billion from year end Total assets Total assets (billions of yen) 現預金 Cash and cash equivalents  Increased cash reserves as novel coronavirus countermeasure 営業債権 Trade receivables 15.2  Seasonal factors 92.5 29.4 Current assets YoY change 60.5

  17. Slide 17: Changes in Balance Sheets

    Changes in Balance Sheets Total liabilities declined ¥7.8 billion from year end, total equity fell ¥21.9 billion Total liabilities and Total liabilities and equity equity 営業債務 Trade payables (billions of yen) 短期金融負債 Short-term financial liabilities 34.5 31.2  To procure cash reserves 72.1 98.9 Curr

  18. Slide 18: Financial Status

    Financial Status Investment on a cash basis was ¥8.1 billion <Consolidated cash flow (CF) statement> <Investment total (①+②+③)> ¥ billion 2019 2020 Change (billions of yen) Change ➀ Capital expenditure (cash basis) : ¥ billion 1Q results 1Q results (%) (Property, plant and equipment, intangible asse

  19. Slide 19: Revision of Consolidated Earnings Forecasts

    Revision of Consolidated Earnings Forecasts Copyright, 2020 SAPPORO HOLDINGS LTD. All rights reserved. 19/59

  20. Slide 20: Revision of Consolidated Earnings Forecasts

    Revision of Consolidated Earnings Forecasts Revision of Consolidated Earnings Forecasts 2020 The businesses of the Sapporo Group have been impacted by the novel coronavirus outbreak since March. While there are sectors in which sales have been growing thanks to increased stay-at-home consumption sin

  21. Slide 21: Appendix

    Appendix Copyright, 2020 SAPPORO HOLDINGS LTD. All rights reserved. 21/59

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

    Appendix：Major sales volume & sale Sales:Beer (Japan) *including liquor tax (billions of yen) Sales Volume:Beer (Japan) (10,000 cases) Jan. 1 - Jan. 1 - Change Change(%) Jan. 1 - Jan. 1 - Mar.31, 2019 Mar.31, 2020 Change Change(%) Mar.31, 2019 Mar.31, 2020 Beer 30.3 27.5 (2.8) (9.3%) Sapporo Draft B

  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) 200 [Beer and beer-type beverages total] up % YoY 175 150  Beer: down

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

    Appendix：Alcoholic Beverages (Japan) ＜Main brand Jan- Mar Sales volume change＞ ＜ Beer lineup (Jan- Mar break down) ＞ (10,000 cases) 400 350 12% 300 23% 250 200 150 65% 100 50 Black label Yebisu Other 0 2014 2015 2016 2017 2018 2019 2020 Black label brand total Yebisu brand total Mugi to Hop Copyrigh

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

    Appendix：Alcoholic Beverages (Japan) ＜ Jan- Mar sales revenue ＞ ＜ Jan- Mar sales breakdown by category ＞ ※Incl. liquor tax 50.0 (Billions of yen) 45.0 6% 6% 1% Beer 40.0 19.3 12.7 54% Happoshu & New genre 13.9 11.7 35.0 14.4 9.8 12.3 9% Wine & Spirits 30.0 Japanese liquor 25.0 RTD 20.0 Non-alcoholic

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

    Appendix：Alcoholic Beverages (Japan) ＜ Jan- Mar sales revenue ＞ (billions of yen) 3 4 3 1.7 2 1.6 1.6 1.7 1.6 1.6 1.5 2 4.0 2.9 1 1 1.5 1.9 1.4 1.2 1.1 1.1 1.1 0.9 0.9 0.9 0.9 1.0 0 0 2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017 2018 2019 2020 ＲＴＤ Japanese wine Imported wine 4 2.5 3 1.5 2

  27. Slide 27: Appendix: Alcoholic Beverages (Japan) Beer and RTD

    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, 2020 SAPPORO HOLDINGS LTD. All rights reserved. 27/59

  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) ＞ （10,000cases） 【North America Total】Unchanged y-o-y 500 (Jan – Mar)  Overseas brand 400 141 121 down ％ y-o-y 300 200 279 277  Sapporo brand 100 up ％ y-o-y 0 2019 2020 海外ブ

  29. Slide 29: Appendix: Alcoholic Beverages (Restaurants) 189 Outlets

    Appendix：Alcoholic Beverages (Restaurants) ＜ Sales revenue and number of Sapporo Lion Outlets ＞ ＜Sapporo Lion outlets As of Mar 31, 2020 ＞ (Billions of yen) ※before rebate deduction （Jan- Mar） 6 200 10 11 5 188 179 180 170 174 170 4 Tokyo Metroporitan 162 155 160 14 Kanto (excl. Tokyo) 3 5.4 5.4 5.4

  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 by genre(Jan- Mar) Sales composition by sales channel (Jan- Mar) 【Lemon based-drinks】 【Lemon-based food products】 45%  up ％ y-o-y  up ％ y-o-y 8.58

  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 .】  Jan- Mar Sales revenue billion 84% up ％ y-o-y ＜ Number of outlets as of Mar 31, 2020> 16% 111 East Japan 59 206 outlets Central Japan West Japan Japan Overseas ＜Japanese soft

  32. Slide 32: Appendix: Real Estate

    Appendix：Real Estate ＜ Information about ＜ Major rental properties & occupancy rates：（Averages for 2020 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） 56,943 298,007 100 5 below 2

  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. Copyright, 2020 SAPPORO HOLDINGS LTD. All rights reserved. 33/59

Sapporo Holdings — Q1 2020 Earnings Presentation on 6ix