Sapporo Holdings Limited · TSE:2501

Sapporo — Q3 2016 Earnings Presentation

30 slides from Sapporo's earnings presentation, Nov 4, 2016

  1. Slide 1: Sapporo Group Business Results Presentation for the Nine Months Ended September 30, 2016

    2016 Sapporo Group Business Results Presentation for the Nine Months Ended September 30, 2016 November 4, 2016 Sapporo Holdings Ltd. URL http://www.sapporoholdings.jp/english Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved. 1/30

  2. Slide 2: Contents

    Contents 1. Overview of Third Quarter 2016 Results 2. Revision of 2016 Full-Year Earnings Forecasts Appendix: Collection of Data by Business Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved 2/30

  3. Slide 3: 1. Overview of Third Quarter 2016 Results

    1. Overview of Third Quarter 2016 Results Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved 3/30

  4. Slide 4: Third-Quarter 2016 Group Results Overview

    Third-Quarter 2016 Group Results Overview Earnings: operating income improves ¥6.8 billion y-o-y (billions of yen) 2015 3Q 2016 3Q Change Topline continued to increase (7th straight term of net sales increase) and measures to improve management Net sales 388.1 392.2 4.1 efficiency made progress Ope

  5. Slide 5: Third-Quarter 2016 Topics (1): Japanese Alcoholic Beverages

    Third-Quarter 2016 Topics (1): Japanese Alcoholic Beverages The “first year of a new period of growth in the beer business” showed remarkable result and component ratio increased % Beer and beer-type beverages Y-o-y change in sales volume of 3 core brands <Beer>  Jan-Sep up 5% y-o-y (total demand

  6. Slide 6: Third-Quarter 2016 Topics (2): International

    Third-Quarter 2016 Topics (2): International North American beer business continues to grow, Vietnamese business started recovering in 2Q North American beer business  North America sales have been North American beer sales volume for Jan-Sep (y-o-y) * <SLEEMAN> rising continuously  Jan-Sep up 1%

  7. Slide 7: Third-Quarter 2016 Topics (3): Food & Soft Drinks

    Third-Quarter 2016 Topics (3): Food & Soft Drinks Domestic soft drinks and lemon-based products have been strong; continuing to promote cost reductions Y-o-y change in Jan- Sep Domestic food and soft drinks Y-o-y change in Jan- Sep soft drinks sales volume foods sales value <Domestic soft drinks> 

  8. Slide 8: Third-Quarter 2016 Topics (4): Restaurants

    Third-Quarter 2016 Topics (4): Restaurants Amid harsh market environment, enhancing earnings capability through steady structural reform Restaurants business in Japan Trends of net sales and number of Sapporo Lion outlets (billions <Sapporo Lion> of yen)  Comparable-store sales: unchanged y-o-y H

  9. Slide 9: Third-Quarter 2016 Topics (5): Real Estate

    Third-Quarter 2016 Topics (5): Real Estate GINZA PLACE opens; Yebisu Garden Place maintains stable occupancy rate Real estates Change in average occupancy rate of Yebisu Garden Place office space (contract basis) <Yebisu Garden Place> 2015 2015 2015 2015 2016 2016 2016 1Q 2Q 3Q 4Q 1Q 2Q 3Q  Contin

  10. Slide 10: Third-Quarter 2016 Topics (6): Miyasaka Jozo Co., Ltd.

    Third-Quarter 2016 Topics (6): Miyasaka Jozo Co., Ltd.  Aim to expand the food domain with the Shinsyu Ichi brand at the core September 5, 2016: Purchased a 51% stake in Miyasaka Jozo Co., Ltd., which manufactures and markets miso, instant miso soup and freeze- dried products. Company profile  Tr

  11. Slide 11: 2016 3Q Results Highlight

    2016 3Q Results Highlight (billions of yen) Consolidated financial YoY changes 2015 3Q 2016 3Q results (amount, %) Net sales(incl. liquor tax) 388.1 392.2 4.1 1.1% Net sales（excl. liquor tax) 305.6 307.7 2.0 0.7% Overseas net sales to total 23.5 ％ 21.0％ (2.5) ー (excl. liquor tax) Operating income 5.

  12. Slide 12: Overview of Third Quarter 2016 Results (1) Special Factors

    Overview of Third Quarter 2016 Results (1) Special Factors <Special factors in the business results (year-on-year)> (―: negligible) Operating income Business segment Details Sales impact impact 2015: Silver Spring Citrus account period change (changed from Oct 2015 to Sep 2016 -> Jan 2016 to Dec 201

  13. Slide 13: Overview of Third Quarter 2016 Results (2) Net Sales by Segment

    Overview of Third Quarter 2016 Results (2) Net Sales by Segment YoY change （billions of yen） 2015 3Q 2016 3Q Notes （amount,%） Consolidated 388.1 392.2 4.1 1.1％ net sales Japanese Alcoholic 195.2 200.0 4.8 2.5％ Beverages Foreign exchange rates (average rate of 2016 3Q) International 53.2 48.0 (5.2) (

  14. Slide 14: Factors Contributing to Change in Net Sales

    Overview of Third-Quarter 2016 Results (3): Factors Contributing to Change in Net Sales <Main Factors Contributing to Changes in Net Sales> (billions of yen) Increase Decrease Jan-Sep 2016 Jan-Sep 2015 Consolidated Consolidated net sales net sales Sales ¥392.2 billion volume ¥388.1 billion increase,

  15. Slide 15: Overview of Third Quarter 2016 Results (4) Operating Income by Segment

    Overview of Third Quarter 2016 Results (4) Operating Income by Segment （billion of yen） 2015 3Q 2016 3Q Change Notes Consolidated Operating income 5.9 12.8 6.8 Japanese Alcoholic Beverages 3.0 6.3 3.3 Beer and related product 1.3 4.0 2.7 Marginal profit+1.5,Fixed cost and other+1.3 Wine and spirits

  16. Slide 16: Factors Contributing to Change in Operating Income

    Overview of Third-Quarter 2016 Results (5): Factors Contributing to Change in Operating Income <Main Factors Contributing to Changes in Operating Income> (billions of yen) Increase Decrease Jan-Sep 2016 consolidated Jan-Sep 2015 operating income consolidated ¥12.8 billion operating income (+¥6.8 bil

  17. Slide 17: Changes in Extra Ordinary Gains and Losses

    Overview of Third Quarter 2016 Results (6) Changes in Extra Ordinary Gains and Losses Consolidated Statements of Income （billions of yen） 2015 3Q 2016 3Q Change Primary Reasons Net sales 388.1 392.2 4.1 Operating income 5.9 12.8 6.8 Financial account balance (0.8) (0.7) 0.1 Other non-operating expen

  18. Slide 18: Implementation Status of Strategic Investment

    Overview of Third Quarter 2016 Results (7) Implementation Status of Strategic Investment Implementation Status of Strategic Investments (including ordinary capex, on a cash bases) Direction of Long-Term Strategic Investment  The scale of strategic investment from 2012 to 2016 is anticipated (1) <Ca

  19. Slide 19: Overview of Third Quarter 2016 Results (8) Balance sheets

    Overview of Third Quarter 2016 Results (8) Balance sheets Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved. 19/30

  20. Slide 20: 2. Revision of 2016 Full-Year Earnings Forecasts

    2. Revision of 2016 Full-Year Earnings Forecasts Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved 20/30

  21. Slide 21: Revision of 2016 Full-Year Earnings Forecasts

    Revision of 2016 Full-Year Earnings Forecasts 2016 initial 2016 revised Revised (billions of yen) 2015 results Change  Net sales: down ¥17.7 billion from initial forecasts forecasts amount forecast Japanese Alcoholic 288.0 288.0 - 273.6 14.3 • International: forecast was cut by ¥13.1 billion due Be

  22. Slide 22: Appendix: Collection of Data by Business

    Appendix： Collection of Data by Business Copyright, 2016 SAPPORO HOLDINGS LTD. All rights reserved. 22/30

  23. Slide 23: 2016 3Q: Major Sales and Sales Volume (YoY)

    2016 3Q:Major Sales and Sales Volume (YoY) Alcoholic Beverage (Japan) (10,000 cases) Beer (International) (10,000 cases) Jan. 1 - Jan. 1 - YoY Jan. 1 - Jan. 1 - Sep.30, 2016 Sep.30, 2015 YoY Sep.30, 2016 Sep.30, 2015 Sapporo Draft Beer Black Label - - 103% SLEEMAN BREWERIES LTD.（*2） 963 957 101% YEB

  24. Slide 24: Reference Material (1) Japanese Alcoholic Beverages

    Reference Material (1) Japanese Alcoholic Beverages Beer and Beer-Type Beverages Data <Beer and beer-type beverages category <Beer lineup (Jan-Sep breakdown)> (10,000 cases) Jan-Sep sales volume YoY change (Shipment base)> 21.54 million Cases (1) Sapporo Lager Beer: Japan’s oldest heat treated beer.

  25. Slide 25: Reference Material (2) Japanese Alcoholic Beverages Beer Category Data

    Reference Material(2) Japanese Alcoholic Beverages ～Beer Category Data～ ＜Jan〜Sep Net sales> （billions of yen)Wine Beer + Beer type beverages (incl. liquor tax) Spirits Japanese Liquor Promotion of diversification of product offering ＜Japanese Alcoholic Beverage Business Jan-Sep sales breakdown by ca

  26. Slide 26: Reference Material (3) International Business Data

    Reference Material(3) International Business ～Data ～ ＜Trend of overseas sales volume of SAPPORO brand products (Jan-Sep)> SLEEMAN Net Sales in Local Currency (Jan-Sep) (before elimination of inter-company transactions) （10,000 cases) Sapporo USA Net Sales in Local Currency (Jan-Sep) (before eliminat

  27. Slide 27: Reference Material (4) Food & Soft Drinks Data

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

  28. Slide 28: Reference Material (5) Restaurants Data

    Reference Material(5) Restaurants ～ Data ～ ＜New Sanko Outlets＞ ＜Sapporo Lion outlets＞  1954 Established in Otaru 177 Outlets(as of Sep 30, 2016)  9 Outlets located in Hokkaido  Reopening of ※2 Sapporo Lion flagship outlets ＜Marushinkawamura Outlets＞ ・Ginza Lion Shimbashi 3 floor, Approx. 401㎡  K

  29. Slide 29: Reference Material (6) Real Estate Data

    Reference Material(6) Real Estate ～ Data ～ Major rental properties & occupancy rates * (*Averages for 2016 3Q (contract basis) Information about real estate for lease Major rental properties in Occupancy rate Site area (m2) Floor area (m2) (%) No. of floors Tokyo’s 23 wards 40 floors above Balance s

  30. Slide 30: 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. 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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