Sapporo Holdings Limited · TSE:2501

Sapporo — Q1 2024 Earnings Presentation

26 slides from Sapporo's earnings presentation, May 14, 2024

  1. Slide 1: Sapporo Group Business Results Presentation for the Three Months Ended March 31, 2024

    Sapporo Group Business Results Presentation for the Three Months Ended March 31, 2024 *In this document, the name abbreviations are used: May 14th 2024 SH: Sapporo Holdings Limited SB: Sapporo Breweries Ltd. SLN: Sapporo Lion Limited. URL https://www.sapporoholdings.jp/en/ PS: Pokka Sapporo Food & B

  2. Slide 2: Business Results / Appendix

    １． Business Results ・・・P3~P13 2． Appendix ・・・P14~P26 Copyright, 2024 SAPPORO HOLDINGS LTD. All rights reserved. 2/26

  3. Slide 3: Summary

    Summary Business results:While there was an increase in revenue and a decrease in profit, things are progressing according to forecasts 2023 Q1 2024 Q1 YoY changes YoY changes The strategy and action plan outlined in the medium-term （billions of yen） Result Result (amount) (%) management plan will l

  4. Slide 4: Financial Highlights

    Financial Highlights 2023 Q1 2024 Q1 YoY changes YoY changes （billions of yen） Result Result (amount) (%) Revenue 108.8 112.8 4.0 3.7% Revenue（Excluding liquor tax） 85.2 88.6 3.4 4.0% Overseas revenue 25.9 28.5 2.6 10.2% EBITDA 2.0 1.3 (0.7) (35.9%) Core operating profit ー (Revenue - Cost of sales -

  5. Slide 5: Financial Highlights

    Financial Highlights YoY YoY YoY YoY 2023 Q1 2024 Q1 2023 Q1 2024 Q1 （billions of yen） changes changes （billions of yen） changes changes Result Result Result Result (amount) (%) (amount) (%) Core Operating Profit Revenue by Segment 108.8 112.8 4.0 3.7% (2.9) (3.8) (0.9) - by Segment Alcoholic Bevera

  6. Slide 6: Financial Highlights: Revenue changes

    Financial Highlights Revenue increased for all our businesses, excluding the Japan Food & Soft Drinks business where structural reforms are being implemented. The strong performance of beer in the Japan alcoholic beverages business and strong performance of SPB for overseas alcoholic beverages (incl

  7. Slide 7: Financial Highlights: Core operating profit changes

    Financial Highlights While there were factors driving an increase in revenue, we ended with a decrease in profit due to up-front investments including marketing investment, investment in human capital, and IT infrastructure investment. Progressing as anticipated in relation to targets Details of the

  8. Slide 8: Business Strategies: Action Plan

    Business Strategies：Action Plan Plan to steadily disclose On slides after page 9, we have included further explanations for action plan numbers (1-1) through (10) details of action plan 2023 2024 2025 to 2026 Japan alcoholic Increase beer sales(1-1) ★ Alcohol tax revisions ★ Alcohol tax revisions be

  9. Slide 9: Business Strategies: Alcoholic Beverages (Japan)

    Business Strategies：Alcoholic Beverages Japanese Reasons for changes in core operating profit(billions of yen） Investment in human capital(0.3) repair costs(0.3) Revenue：55.7billions of yen（YoY+1.7billions of yen、＋3.1%） Core operating profit：0.6billions of yen（YoY+0.8billions of yen） Beer-type wine,

  10. Slide 10: Business Strategies: Alcoholic Beverages (Overseas)

    Business Strategies：Alcoholic Beverages Overseas Reasons for changes in core operating profit(billions of yen） Decrease in quantity and worsening of the Revenue：20.3billions of yen（YoY+2.0billions of yen、＋11.1%） product mix. Resolution to dissolve Anchor+0.3 Core operating profit：(1.0)billions of ye

  11. Slide 11: Business Strategies: Food & Soft Drinks

    Business Strategies：Food & Soft Drinks Japanese Reasons for changes in core operating profit(billions of yen） Improvement of variable selling cost per unit+0.2 Revenue：19.7billions of yen（YoY(0.5)billions of yen、(2.5%)） Core operating profit：(0.7)billions of yen（YoY(0.0)billions of yen） decrease in

  12. Slide 12: Business Strategies: Real Estate

    Business Strategies：Real Estate Real Estate Reasons for changes in core operating profit(billions of yen） Revenue：5.5billions of yen（YoY+0.2billions of yen、＋3.2%） Core operating profit：(0.2)billions of yen（YoY(0.2)billions of yen） EBITDA：1.3billions of yen（YoY(0.0)billions of yen） YGP Sapporo Others

  13. Slide 13: Action Plan KPI

    Action Plan KPI ※1 Forex assumption: ¥130 Q1results Full year medium-term ※2 Local currency basis (Singapore dollar) plan Target 2022 Q1 2023 Q1 2024 Q1 2022 2023 2024 plan Japan alcoholic Reinforcement of Beer / Improving Profitability of Beer-type Bev. beverages Increase beer sales: share of beer

  14. Slide 14: Appendix

    Appendix Copyright, 2024 SAPPORO HOLDINGS LTD. All rights reserved. 14/26

  15. Slide 15: Financial Indicator: Financial Targets

    Financial Indicator Financial Targets medium-term Q1 result Full year plan Target Targets for 2026 have not been changed since the Medium-Term Business Plan was formulated 2022 Q1 2023 Q1 2024 Q1 2022 2023 2024 plan 2026 Target ROE - - - 3.3% 5.0% 5.5% 8.0% (Approximation) (6.4) (2.9) (3.8) 9.3 15.6

  16. Slide 16: Financial Indicator: Target for core operating profit margin

    Financial Indicator Target for core operating profit margin medium-term Q1 result Full year plan Target Targets for 2026 have not been changed since the Medium-Term Business Plan was formulated 2022 Q1 2023 Q1 2024 Q1 2022 2023 2024 plan 2026 Target Japan alcoholic beverages (6.2)% (0.4)% 1.0% 3.5%

  17. Slide 17: Balance Sheets

    Balance Sheets （billions of yen） Total assets End of 2023 2024 Q1 Change Total liabilities and equity End of 2023 2024 Q1 Change Cash and cash equivalents 17.2 17.2 (0.0) Trade payables 38.7 35.5 (3.2) Trade receivables 98.0 77.5 (20.5) Short-term financial liabilities 39.7 56.2 16.5 Inventories 47.

  18. Slide 18: Status of Each Cash Flow

    Status of Each Cash Flow （billions of yen） 2023 Q1 2024 Q1 Change Change (%) CF from operating activities 13.5 1.7 (11.8) (87.7%) CF from investing activities (2.8) (10.8) (8.0) ー ＜Investment total（①＋②）＞ billion Free CF 10.7 (9.1) (19.8) ー CF from financing activities (13.3) 8.5 21.8 ー ➀ Capital exp

  19. Slide 19: Alcoholic Beverages Data

    Alcoholic Beverages Data ※1：:Following the agreement of the Brewers Association of Japan, Japanese there is no disclosure of the sales volume for the first quarter. The sales volume for the first half and end of the fiscal year shall be disclosed. (10,000 cases) YoY Sales Volume:Beer (Japan) (※1) 20

  20. Slide 20: Alcoholic Beverages Data

    Alcoholic Beverages Data Japanese ＜ Jan- Mar sales revenue ＞ (billions of yen) （billions of yen） YoY Sales:Beer (Japan) 2023Q1 2024Q1 Change(%) Beer 30.1 32.7 8.6% Happoshu (include New genre) 10.3 9.0 (11.7%) Beer-type beverages 40.4 41.7 3.4% RTD 5.8 5.9 0.4% Domestic wines 0.8 0.6 (29.0%) Importe

  21. Slide 21: 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 46.99 yen New genre RTD 37.8 35 ✓ RTD 28 yen 2020 2023 2026 （year） Copyright, 2024 SAPPORO HOLDINGS LTD. All rights reserved. 21/26

  22. Slide 22: Alcoholic Beverages Data: Overseas

    Alcoholic Beverages Data Overseas (10,000 cases) YoY Sales Volume:Beer (International) 2023Q1 2024Q1 Change(%) Overseas brand (※1) 349 327 (6.3%) Sapporo brand 100 107 7.2% ①North America 449 434 (3.3%) Sapporo brand 69 85 23.0% ②Other areas 69 85 23.0% Total（①＋②） 518 519 0.2% Sapporo brand Total 16

  23. Slide 23: Alcoholic Beverages Data: Restaurants

    Alcoholic Beverages Data Restaurants ＜Composition of Restaurants by Format＞ YoY Restaurants 2023Q1 2024Q1 Change(%) Revenue （billions on yen） 4.3 4.6 8.3% Number of Restaurants 135 128 (5.2%) ＜Trend in Revenue of Restaurants Business 128Outlets and Number of Restaurants＞（Jan-Mar） （billions of yen） （

  24. Slide 24: Food & Soft Drinks Data

    Food & Soft Drinks Data Japanese （billions of yen） YoY Sales:Food & Soft Drinks (Japan) (※1) 2023Q1 2024Q1 Change(%) Soft Drinks 12.1 11.0 (9.2%) Food（Lemon・Soups・Plant milk) 7.4 6.6 (11.2%) ※1：Only domestic sales(Before Rebate subtracted from sales) 【Coffee drinks】 【Tea drinks】 ＜Japanese soft drink

  25. Slide 25: Real Estate Data

    Real Estate Data Real Estate ＜ Information about Investment property ＞ (billions of yen) ＜ Major rental properties & occupancy rates：（Averages for 2024 Q1)> 400.0 Occupa Site area Floor area 300.0 ncy rate No. of floors （㎡） （㎡） （%） 200.0 385.7 383.0 40 floors above ground, Yebisu Garden Place（1） 56,

  26. Slide 26: 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. 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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