Sapporo Holdings Limited · TSE:2501

Sapporo — Q1 2023 Earnings Presentation

27 slides from Sapporo's earnings presentation, May 11, 2023

  1. Slide 1: Sapporo Group Business Results Presentation for the Three Months Ended March 31, 2023

    Sapporo Group Business Results Presentation for the Three Months Ended March 31, 2023 *In this document, the following company name abbreviations are used: May 11th 2023 SH: Sapporo Holdings Limited SB: Sapporo Breweries Ltd. SLN: Sapporo Lion Limited. URL https://www.sapporoholdings.jp/en/ PS: Pokk

  2. Slide 2: Business Results and Appendix

    １． Business Results ・・・P3~P14 2． Appendix ・・・P15~P27 Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved. 2/27

  3. Slide 3: Summary

    Summary Business results: increased revenue and improving core operating profit 2022 Q1 2023 Q1 YoY changes YoY changes （billions of yen） Result Result (amount) (%) ⚫ P/L improving across all profit items Revenue 93.2 108.8 15.5 16.6% ⚫ Price revisions are steadily absorbing higher costs such as sur

  4. Slide 4: Financial Highlights

    Financial Highlights 2022 Q1 2023 Q1 YoY changes YoY changes （billions of yen） Result Result (amount) (%) Revenue 93.2 108.8 15.5 16.6% Revenue（Excluding liquor tax） 72.0 85.2 13.1 18.2% Overseas revenue 18.3 25.9 7.6 41.7% EBITDA (1.4) 2.0 3.4 ー Core operating profit (6.4) (2.9) 3.5 ー Core operatin

  5. Slide 5: Situation of External Environment Affecting Business Results

    Situation of External Environment Affecting Business Results Impacts of the COVID-19 pandemic Higher costs such as surging raw material costs Sales volume of commercial-use products for Japan Costs are expected to increased by ¥13.5 billion vs. 2022, but price alcoholic beverages and nest sales of R

  6. Slide 6: Financial Highlights

    Financial Highlights YoY YoY YoY YoY 2022 Q1 2023 Q1 2022 Q1 2023 Q1 （billions of yen） changes changes （billions of yen） changes changes Result Result Result Result (amount) (%) (amount) (%) Core Operating Profit Revenue by Segment 93.2 108.8 15.5 16.6% by Segment (6.4) (2.9) 3.5 ー Alcoholic Beverag

  7. Slide 7: Financial Highlights: Reasons for changes in sales revenue

    Financial Highlights *SPB: SAPPORO PREMIUM BEER Food & Soft Drinks saw revenue fall following the transfer of the cafe business last year and the liquidation of a vending machine operator subsidiary, but revenue overall rose on the effects of price revisions and inclusion of Stone in the scope of co

  8. Slide 8: Financial Highlights: Reasons for changes in core operating profit

    Financial Highlights Core operating profit rose amid increased revenue and effects of structural reforms in the Restaurants and Food & Soft Drinks businesses Decrease in revenue caused by surging raw material costs: ¥(3.5) billion Reasons for changes in core operating profit (billions of yen) Alcoho

  9. Slide 9: Action Plan

    Action Plan 2023 2024 2025 to 2026 Japan alcoholic Increase beer sales(1-1) ★ Alcohol tax revisions ★ Alcohol tax revisions beverages Increase RTD sales(1-2) Reorganize RTD production locations(2) Overseas Generate synergies through function integration(3-1) alcoholic Begin producing SPB (barrel-age

  10. Slide 10: Alcoholic Beverages

    Alcoholic Beverages Japanese Reasons for changes in core operating profit YoY +2.6billions of yen Revenue：54.0billions of yen（YoY+7.9billions of yen、＋17.2%） Core operating profit： (0.2)billions of yen（YoY+2.6billions of yen） wine, spirits, Beer/Happoshu/ Beer/Happoshu/ non-alcoholic Fixed costs, New

  11. Slide 11: Alcoholic Beverages: Overseas and Restaurants

    Alcoholic Beverages Overseas *SPB: SAPPORO PREMIUM BEER Restaurants Revenue：18.3billions of yen（YoY+6.2billions of yen、＋51.1%） Revenue：4.3billions of yen（YoY+1.9billions of yen、＋83.4%） Core operating profit： (0.4)billions of yen（YoY(0.3)billions of yen） Core operating profit： 0.1billions of yen（YoY+

  12. Slide 12: Food & Soft Drinks

    Food & Soft Drinks Japanese *Public Vending Service company Overseas Revenue：20.2billions of yen（YoY(2.1)billions of yen、(9.4%）) Revenue：6.6billions of yen（YoY+1.2billions of yen、＋22.8%） Core operating profit： (0.7)billions of yen（YoY+0.6billions of yen） Core operating profit： 0.4billions of yen（YoY

  13. Slide 13: Real Estate

    Real Estate Real Estate *YGP: Yebisu Garden Place Reasons for changes in core operating profit Revenue：5.3billions of yen（YoY+0.4billions of yen、＋7.1%） YoY (0.1)billions of yen Core operating profit： (0.0)billions of yen（YoY(0.1)billions of yen） YGP* Sapporo Others Increase value of corporate proper

  14. Slide 14: Action Plan KPI

    Action Plan KPI *Forex assumption: ¥130 Q1results Full year medium-term *2 Local currency basis (Singapore dollar) plan Target * to be disclosed in Q2 or fiscal year end financial results 2022 Q1 2023 Q1 2022 2023Plan Japan alcoholic Reinforcement of Beer / Improving Profitability of Beer-type Bev.

  15. Slide 15: Appendix

    Appendix Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved. 15/27

  16. Slide 16: Financial Indicator

    Financial Indicator Financial Targets medium-term Q1results Full year plan Target 2022 Q1 2023 Q1 2022 2023 plan 2026 Target ROE - - 3.3% 3.3% 8.0% (Approximation) Core (6.4) (2.9) 9.3 13.5 25.0 operating profit * billions of yen billions of yen billions of yen billions of yen billions of yen EBITDA

  17. Slide 17: Financial Indicator: Target for core operating profit margin

    Financial Indicator Target for core operating profit margin medium-term Q1results Full year plan Target 2022 Q1 2023 Q1 2022 2023 plan 2026 Target Alcoholic beverages in Japan (6.2%) (0.4%) 3.5% 5.0% 5.7% Alcoholic beverages in Overseas (1.0%) (2.3%) (0.4%) 0.6% 6.2% Alcoholic beverages in Restauran

  18. Slide 18: Balance Sheets

    Balance Sheets （billions of yen） Total assets End of 2022 2023 Q1 Change Total liabilities and equity End of 2022 2023 Q1 Change Cash and cash equivalents 15.4 14.1 (1.3) Trade payables 35.7 32.0 (3.8) Trade receivables 96.6 73.6 (23.0) Short-term financial liabilities 86.5 72.2 (14.3) Inventories 4

  19. Slide 19: Status of Each Cash Flow

    Status of Each Cash Flow （billions of yen） 2022 Q1 2023 Q1 Change Change (%) CF from operating activities (0.8) 13.5 14.3 ー ＜Investment total（①＋②＋③）＞ billion CF from investing activities (3.6) (2.8) 0.8 ー Free CF (4.4) 10.7 15.1 ー ➀ Capital expenditure (cash basis） ： billion CF from financing activi

  20. Slide 20: 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

  21. Slide 21: Alcoholic Beverages Data

    Alcoholic Beverages Data Japanese ＜ Jan- Mar sales revenue ＞ (billions of yen) （billions of yen） YoY Sales:Beer (Japan) 2022Q1 2023Q1 Change(%) Beer 23.5 30.1 28.4% Happoshu 1.3 1.2 (2.1%) New genre 10.2 9.0 (11.4%) Beer, happoshu, and new genre 34.9 40.4 15.7% RTD 5.2 5.8 12.3% Domestic wines 0.8 0

  22. Slide 22: 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 and Beer 54.25 Happoshu type beverages 46.99 yen New genre RTD 37.8 35 ✓ RTD 28 yen 2020 2023 2026 （year） Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved. 22/27

  23. Slide 23: Alcoholic Beverages Data: Overseas

    Alcoholic Beverages Data Overseas (10,000 cases) YoY Sales Volume:Beer (International) 2022Q1 2023Q1 Change(%) Overseas brand (※1) 265 349 31.8% Sapporo brand 91 100 10.5% ①North America 355 449 26.4% Sapporo brand 54 69 27.2% ②Other areas 54 69 27.2% Total（①＋②） 410 518 26.5% ※1：SLEEMAN, Anchor, Sto

  24. Slide 24: Alcoholic Beverages Data: Restaurants

    Alcoholic Beverages Data Restaurants ＜Composition of Restaurants by Format＞ YoY Restaurants 2022Q1 2023Q1 Change(%) Revenue （billions on yen） 2.3 4.3 83.4% Number of Restaurants 160 135 (15.6%) ＜Trend in Revenue of Restaurants Business 135Outlets and Number of Restaurants＞（Jan-Mar） （billions of yen）

  25. Slide 25: Food & Soft Drinks Data

    Food & Soft Drinks Data Japanese （billions of yen） YoY Sales:Food & Soft Drinks (Japan) (※1) 2022Q1 2023Q1 Change(%) Soft Drinks 12.4 12.1 (2.2%) Food（Lemon・Soups・Plant milk) 7.4 7.4 (0.6%) ※1：Only domestic sales(Before Rebate subtracted from sales) ＜ Japanese soft drinks POKKA SAPPORO Food & Bevera

  26. Slide 26: Real Estate Data

    Real Estate Data Real Estate ＜ Information about Investment property ＞ (billions of yen) ＜ Major rental properties & occupancy rates：（Averages for 2023 Q1)> 400.0 Occupa Site area Floor area 300.0 ncy rate No. of floors （㎡） （㎡） （%） 200.0 382.9 385.7 40 floors above ground, Yebisu Garden Place（1） 56,

  27. Slide 27: Sapporo will contribute to the evolution of creative, enriching 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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