Sapporo Holdings Limited · TSE:2501

Sapporo — Q3 2024 Earnings Presentation

33 slides from Sapporo's earnings presentation, Nov 12, 2024

  1. Slide 1: Sapporo Group Business Results Presentation for the Nine Months Ended September 30, 2024

    Sapporo Group Business Results Presentation for the Nine Months Ended September 30, 2024 *In this document, the name abbreviations are used: November 12th 2024 SH: Sapporo Holdings Limited SB: Sapporo Breweries Ltd. SLN: Sapporo Lion Limited. URL https://www.sapporoholdings.jp/en/ PS: Pokka Sapporo

  2. Slide 2: Agenda

    １. Summary ・・・ P.3 ２. Earnings Forecast Revision ・・・ P.4~P.8 ３. Business Results ・・・ P.9~P.19 4 . Appendix ・・・ P.20~P.33 Copyright, 2024 SAPPORO HOLDINGS LTD. All rights reserved. 2/33

  3. Slide 3: Summary

    Summary Business results: While there was an increase in revenue and a decrease in profit, the annual outlook is expected to be on target with the plan 2023 Q3 2024 Q3 YoY YoY ⚫ Revenue increased (excluding Japanese Food & Soft Drinks and （billions of yen） changes changes Result Result (amount) (%)

  4. Slide 4: Earnings Forecast Revision

    Earnings Forecast Revision Copyright, 2024 SAPPORO HOLDINGS LTD. All rights reserved. 4/33

  5. Slide 5: Earnings Forecast Revision

    Earnings Forecast Revision Earnings Forecast Revision Revenue forecast revised upward and core operating profit by segment revised based on the progress of the annual plan - No revision of the profit plan on a consolidated basis 2024 2024 Revised 2023 Change （billions of yen） Initial Revised Amount

  6. Slide 6: Earnings Forecast Revision (Revenue)

    Earnings Forecast Revision Earnings Forecast Revision (Revenue) 2024 2024 Revenue Revised 2023 Change Initial Revised Main revisions (billions of yen) Amount Result Amount Plan Plan Revenue 523.5 526.0 2.5 518.6 7.4 Japan Alcoholic Beverages 270.0 270.0 - 268.3 1.7 Overseas Alcoholic Beverages 90.0

  7. Slide 7: Earnings Forecast Revision (Core operating profit)

    Earnings Forecast Revision Earnings Forecast Revision (Core operating profit) 2024 2024 Core operating profit Revised 2023 Change Initial Revised Main revisions (billions of yen) Amount Result Amount Plan Plan Revenue 19.0 19.0 - 15.6 3.4 Japan Alcoholic Beverages 15.5 15.5 - 14.2 1.3 Overseas Alcoh

  8. Slide 8: Revision of Earnings Forecasts for Overseas Alcoholic Beverages

    Revision of Earnings Forecasts for Overseas Alcoholic Beverages ◼ For Overseas Alcoholic Beverages, earnings forecast has been revised downward, resulting in an annual core operating profit of 0 billion yen. The main factor was the deterioration in the profitability of the U.S. business and increase

  9. Slide 9: Business Results

    Business Results Copyright, 2024 SAPPORO HOLDINGS LTD. All rights reserved. 9/33

  10. Slide 10: Financial Highlights

    Financial Highlights 2023 Q3 2024 Q3 YoY changes YoY changes （billions of yen） Result Result (amount) (%) Revenue 377.7 385.6 7.8 2.1% Revenue（Excluding liquor tax） 291.6 300.9 9.3 3.2% Overseas revenue 90.0 96.5 6.5 7.2% EBITDA 29.3 30.4 1.0 3.5% Core operating profit (Revenue - Cost of sales - SG&

  11. Slide 11: Financial Highlights

    Financial Highlights YoY YoY YoY YoY 2023 Q3 2024 Q3 2023 Q3 2024 Q3 （billions of yen） changes changes （billions of yen） changes changes Result Result Result Result (amount) (%) (amount) (%) Core Operating Profit Revenue by Segment 377.7 385.6 7.8 2.1% 14.4 14.0 (0.4) (2.9%) by Segment Alcoholic Bev

  12. Slide 12: Financial Highlights: Reasons for changes in sales revenue

    Financial Highlights While Japanese Food & Soft Drinks sales decreased due to structural reforms and a volume decline following some product price revisions, total sales increased driven by Alcoholic Beverages and Real Estate businesses. - Foreign exchange effects overseas also a factor in revenue g

  13. Slide 13: Financial Highlights: Reasons for changes in core operating profit

    Financial Highlights While core operating profit in the Food & Soft Drinks business and Overseas Alcoholic Beverages decreased, it was offset by gains in the Japanese Alcoholic Beverages and Real Estate businesses. - Overall progress was in line with the annual plan as delays in Overseas Alcoholic B

  14. Slide 14: Business Strategies: Action Plan

    Business Strategies：Action Plan Plan to steadily disclose On slides after page 15, 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 b

  15. Slide 15: Business Strategies: Alcoholic Beverages (Japan)

    Business Strategies：Alcoholic Beverages Japanese Reasons for changes in core operating profit(billions of yen） Revenue：194.9billions of yen（YoY+2.4billions of yen,＋1.3%） Core operating profit：11.0billions of yen（YoY+0.8billions of yen,＋7.9%） Beer-type wine, spirits, Beer-type beverages beverages’ Sa

  16. Slide 16: Business Strategies: Alcoholic Beverages (Overseas)

    Business Strategies：Alcoholic Beverages Overseas Reasons for changes in core operating profit(billions of yen） Decrease in quantity and Resolution to worsening of the product mix. dissolve Revenue：71.1billions of yen（YoY+4.2billions of yen、＋6.3%） Anchor+0.6 Core operating profit：0.3billions of yen（Y

  17. Slide 17: 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+0.4 Revenue：65.9billions of yen（YoY(1.7)billions of yen、(2.5%)） Core operating profit：(1.4)billions of yen（YoY(0.5) billions of yen、(26.5%)） dec

  18. Slide 18: Business Strategies: Real Estate

    Business Strategies：Real Estate Real Estate Reasons for changes in core operating profit(billions of yen） Improvement of occupancy rate, etc. Revenue：17.6billions of yen（YoY+1.7billions of yen、＋10.5%） Core operating profit：5.1billions of yen（YoY+0.9billions of yen 、＋21.8%） EBITDA：9.7billions of yen（

  19. Slide 19: Action Plan KPI

    Action Plan KPI ※1 Forex assumption: ¥130 Q3results Full year medium-term ※2 Local currency basis (Singapore dollar) plan Target 2022 Q3 2023 Q3 2024 Q3 2022 2023 2024 plan Japan alcoholic Reinforcement of Beer / Improving Profitability of Beer-type Bev. beverages Increase beer sales: share of beer

  20. Slide 20: Appendix

    Appendix Copyright, 2024 SAPPORO HOLDINGS LTD. All rights reserved. 20/33

  21. Slide 21: Financial Indicator: Financial Targets

    Financial Indicator Financial Targets medium-term Q3 result Full year plan Target Targets for 2026 have not been changed since the Medium-Term Business Plan was formulated 2022 Q3 2023 Q3 2024 Q3 2022 2023 2024 plan 2026 Target ROE - - - 3.3% 5.0% 5.5% 8.0% (Approximation) 5.8 14.4 14.0 9.3 15.6 19.

  22. Slide 22: Financial Indicator: Target for core operating profit margin

    Financial Indicator Target for core operating profit margin medium-term Q3 result Full year plan Target Targets for 2026 have not been changed since the Medium-Term Business Plan was formulated 2022 Q3 2023 Q3 2024 Q3 2022 2023 2024 plan 2026 Target Japan Alcoholic Beverages 2.6% 5.3% 5.6% 3.5% 5.3%

  23. Slide 23: Balance Sheets

    Balance Sheets （billions of yen） Total assets End of 2023 2024 Q3 Change Total liabilities and equity End of 2023 2024 Q3 Change Cash and cash equivalents 17.2 23.4 6.2 Trade payables 38.7 37.6 (1.1) Trade receivables 98.0 77.1 (20.9) Short-term financial liabilities 39.7 66.7 27.1 Inventories 47.6

  24. Slide 24: Status of Each Cash Flow

    Status of Each Cash Flow （billions of yen） 2023 Q3 2024 Q3 Change Change (%) CF from operating activities 38.2 29.5 (8.7) (22.8) CF from investing activities (15.2) (8.7) 6.5 ー Free CF 23.0 20.7 (2.2) (9.6) ＜Investment total（①＋②）＞ ¥ (8.7) billion CF from financing activities (19.9) (14.8) 5.1 ー ➀ Ca

  25. Slide 25: 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 third 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

  26. Slide 26: Alcoholic Beverages Data

    Alcoholic Beverages Data Japanese ＜ Jan- Sep sales revenue ＞ (billions of yen) （billions of yen） YoY Sales:Beer (Japan) 2023Q3 2024Q3 Change(%) Beer 112.3 119.7 6.6% Happoshu (include happoshu (2)) 35.6 28.5 (20.1%) Beer-type beverages 148.0 148.2 0.2% RTD 20.0 20.2 0.6% Domestic wines 2.2 1.4 (35.9

  27. Slide 27: 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 Happoshu(2) 46.99 54.25yen RTD 37.8 35 ✓ RTD 28 35yen 2020 2023 2026 （year） Copyright, 2024 SAPPORO HOLDINGS LTD. All rights reserved. 27/33

  28. Slide 28: Alcoholic Beverages Data: Overseas

    Alcoholic Beverages Data Overseas (10,000 cases) YoY Sales Volume:Beer (International) 2023Q3 2024Q3 Change(%) Overseas brand (※1) 1,222 1,139 (6.8%) Sapporo brand 325 347 6.5% ①North America 1,547 1,486 (4.0%) Sapporo brand 206 300 45.7% ②Other areas 206 300 45.7% Total（①＋②） 1,753 1,785 1.8% Sappor

  29. Slide 29: Alcoholic Beverages Data: Restaurants

    Alcoholic Beverages Data Restaurants ＜Composition of Restaurants by Format＞ ＜Trend in Revenue of Restaurants Business 128Outlets and Number of Restaurants＞（Jan-Sep） （billions of yen） （Restaurants） ＜Composition of Restaurants by Region＞ 128Outlets Bar graph: Trend in Restaurant business core operatin

  30. Slide 30: Food & Soft Drinks Data

    Food & Soft Drinks Data Japanese （billions of yen） YoY Sales:Food & Soft Drinks (Japan) (※1) 2023Q3 2024Q3 Change(%) Soft Drinks 43.1 41.3 (4.2%) Food（Lemon・Soups・Plant milk) 20.5 18.5 (9.8%) ※1：Only domestic sales(Before Rebate subtracted from sales) 【Coffee drinks】 【Tea drinks】 ＜Japanese soft drin

  31. Slide 31: Real Estate Data

    Real Estate Data Real Estate ＜ Information about Investment property ＞ (billions of yen) ＜ Major rental properties & occupancy rates：（Averages for 2024 Q3)> 400.0 Average Site area Floor area Occupancy 300.0 rate No. of floors （㎡） （㎡） （%） 200.0 385.7 383.0 40 floors above ground, Yebisu Garden Place

  32. Slide 32: Initiatives for Sustainability Management

    Initiatives for Sustainability Management TNFD Initiatives New Goals Related to Natural Capital In March this year, we became the first company in Japan to receive SBT certification for FLAG-related greenhouse gas emissions reduction targets. With newly established goals, we aim to reduce FLAG- Star

  33. Slide 33: As an intrinsic part of people's lives, Sapporo will contribute to the evolution of

    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

Sapporo Holdings — Q3 2024 Earnings Presentation on 6ix