Sapporo Holdings Limited · TSE:2501

Sapporo — H1 2023 Earnings Presentation

34 slides from Sapporo's earnings presentation, Aug 10, 2023

  1. Slide 1: Sapporo Group Business Results Presentation for the Six Months Ended June 30, 2023

    Sapporo Group Business Results Presentation for the Six Months Ended June 30, 2023 *In this document, the following company name abbreviations are used: August 10th 2023 SH: Sapporo Holdings Limited SB: Sapporo Breweries Ltd. SLN: Sapporo Lion Limited. URL https://www.sapporoholdings.jp/en/ PS: Pokk

  2. Slide 2: Agenda

    １. Summary ・・・ P.3 ２. Sustainability Management Initiatives ・・・ P.4~P.5 ３. Business Results ・・・ P.6~P.21 ４. Appendix ・・・ P.22~P.34 Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved. 2/34

  3. Slide 3: Summary

    Summary Business results: increased revenue and improving core operating profit 2022 Q2 2023 Q2 YoY changes YoY changes ⚫ Revenue and core operating profit （billions of yen） Result Result (amount) (%) increased ⚫ Operating profit and profit for the period Revenue 213.8 238.5 24.7 11.6% decreased (im

  4. Slide 4: Sustainability Management Initiatives: Harmony with the Environment

    Sustainability Management Initiatives ～Harmony with the Environment～ We updated the Sapporo Group Environmental Vision 2050 The Sapporo Group Environmental Vision 2050 was updated with a view to “Realizing a decarbonized society,” which is one of our priority sustainability issues With the aim of ac

  5. Slide 5: Sustainability Management Initiatives: Sustainability Targets

    Sustainability Management Initiatives ～Sustainability Targets～ Black text indicates results and blue text indicates targets Classification Material Issues Specific Initiatives Targets Setting Companies Target Year Targets 2021 2022 2026 2030 2050 Scope1,2 （Scope1,2） 2050 Scope 1, 2, 3 Net Zero green

  6. Slide 6: Business Results

    Business Results Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved. 6/34

  7. Slide 7: Financial Highlights

    Financial Highlights 2022 Q2 2023 Q2 YoY changes YoY changes （billions of yen） Result Result (amount) (%) Revenue 213.8 238.5 24.7 11.6% Revenue（Excluding liquor tax） 162.4 184.6 22.1 13.6% Overseas revenue 43.1 57.4 14.2 33.0% EBITDA 7.9 13.5 5.6 71.1% Core operating profit (2.2) 3.5 5.7 ー Core ope

  8. Slide 8: Situation of External Environment Affecting Business Results: COVID-19 Impacts

    Situation of External Environment Affecting Business Results ～Impacts of the COVID-19 pandemic～ Sales volume of commercial-use products for Japan alcoholic beverages and sales of Restaurants business both in recovery mode Alcoholic beverages in Japan Bar graph: Commercial-use (bottles and kegs) Sale

  9. Slide 9: Situation of External Environment Affecting Business Results: Higher Costs

    Situation of External Environment Affecting Business Results ～Higher costs such as surging raw material costs～ Costs are expected to increase by ¥14.0 billion vs. 2022 and ¥1.5 billion vs. the initial forecast, but price revisions will address the situation. We will respond appropriately to the risk

  10. Slide 10: Financial Highlights

    Financial Highlights YoY YoY YoY YoY 2022 Q2 2023 Q2 2022 Q2 2023 Q2 （billions of yen） changes changes （billions of yen） changes changes Result Result Result Result (amount) (%) (amount) (%) Core Operating Profit Revenue by Segment 213.8 238.5 24.7 11.6% by Segment (2.2) 3.5 5.7 ー Alcoholic Beverage

  11. Slide 11: Financial Highlights: Revenue Changes

    Financial Highlights 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 due to the contributing effects of price revisions and inclusion of Stone in the scope of consolidatio

  12. Slide 12: Financial Highlights: Core Operating Profit Changes

    Financial Highlights In real estate, there was a drop in profit due to HVAC work on the YGP* office space, but profit increased due to the increased revenue effect of Alcoholic Beverages and the effect of structural reforms in the Restaurants and Food & Soft Drinks businesses. *YGP: Yebisu Garden Pl

  13. Slide 13: Action Plan

    Action Plan Plan to steadily disclose details of 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 integrati

  14. Slide 14: Alcoholic Beverages: Japanese

    Alcoholic Beverages ～Japanese～ Reorganize Reasons for changes in core operating profit(billions of yen） Revenue：121.1billions of yen（YoY+11.4billions of yen、＋10.4%） RTD locations+0.7 Core operating profit： 4.5billions of yen（YoY+4.4billions of yen） Beer/Happoshu/ Beer/Happoshu/ wine, spirits, New ge

  15. Slide 15: Alcoholic Beverages: Japanese

    Alcoholic Beverages ～Japanese～ Koime no Lemon Sour and Shin Lemon Sour are key drivers for increasing RTD sales (1-2) Aim to achieve the initial forecast with focused investment in core brands and the second release of beverages that go with meals, planned for autumn Reorganization of production loc

  16. Slide 16: Alcoholic Beverages: Overseas

    Alcoholic Beverages ～Overseas～ Reasons for changes in core operating profit(billions of yen） *SPB: SAPPORO PREMIUM BEER Revenue：42.2billions of yen（YoY+12.2billions of yen、＋40.6%） Including Stone‘s loss and integration cost (Because SPB* is in preparation for production) Core operating profit： (0.3)

  17. Slide 17: Alcoholic Beverages: Restaurant

    Alcoholic Beverages ～Restaurant～ Reasons for changes in core operating profit(billions of yen） Revenue：9.2billions of yen（YoY+2.8billions of yen、＋42.7%） Core operating profit： 0.8billions of yen（YoY+1.7billions of yen） SLN Affiliated （non-consolidated companies settlement） and others The effect of s

  18. Slide 18: Food & Soft Drinks

    Food & Soft Drinks ～Japanese～ *Public Vending Service company ～Overseas～ Revenue：42.4billions of yen（YoY(3.9)billions of yen、(8.4%)) Revenue：13.0billions of yen（YoY+1.8billions of yen、＋15.9%） Core operating profit： (0.2)billions of yen（YoY+1.3billions of yen） Core operating profit： 0.7billions of ye

  19. Slide 19: Real Estate

    Real Estate Reasons for changes in core operating profit(billions of yen） *YGP: Yebisu Garden Place Revenue：10.6billions of yen（YoY+0.5billions of yen、＋4.9%） Impact of office HVAC work Core operating profit： 1.9billions of yen（YoY+(0.6)billions of yen） YGP* Sapporo Others While there was increased r

  20. Slide 20: Entire Group

    Entire Group Proceeding with the review of the business portfolio (9), with the decision to dissolve Anchor Brewing Sold off strategic holdings of shares for nine stocks, and demonstrated Group synergies for alcoholic beverages and real estate in the Ebisu area (10) ✓ Review of the business portfoli

  21. Slide 21: Action Plan KPI

    Action Plan KPI ※1Forex assumption: ¥130 Q2results Full year medium-term ※2 Local currency basis (Singapore dollar) plan Target ＊ to be disclosed in Q2 or fiscal year end financial results 2022 Q2 2023 Q2 2022 2023Plan Japan alcoholic Reinforcement of Beer / Improving Profitability of Beer-type Bev.

  22. Slide 22: Appendix

    Appendix Copyright, 2023 SAPPORO HOLDINGS LTD. All rights reserved. 22/34

  23. Slide 23: Financial Indicator: Financial Targets

    Financial Indicator Financial Targets medium-term Q2results Full year plan Target 2022 Q2 2023 Q2 2022 2023 plan 2026 Target ROE - - 3.3% 3.3% 8.0% Core operating profit (2.2) 3.5 9.3 13.5 25.0 * (Approximation) * billions of yen billions of yen billions of yen billions of yen billions of yen EBITDA

  24. Slide 24: Financial Indicator: Target for Core Operating Profit Margin

    Financial Indicator Target for core operating profit margin medium-term Q2results Full year plan Target 2022 Q2 2023 Q2 2022 2023 plan 2026 Target Alcoholic beverages in Japan 0.1% 3.7% 3.5% 5.0% 5.7% Alcoholic beverages in Overseas 0.7% (0.8%) (0.4%) 0.6% 6.2% Alcoholic beverages in Restaurants (13

  25. Slide 25: Balance Sheets

    Balance Sheets （billions of yen） Total assets End of 2022 2023 Q2 Change Total liabilities and equity End of 2022 2023 Q2 Change Cash and cash equivalents 15.4 17.4 2.0 Trade payables 35.7 35.7 0.0 Trade receivables 96.6 82.6 (14.0) Short-term financial liabilities 86.5 49.2 (37.3) Inventories 47.5

  26. Slide 26: Status of Each Cash Flow

    Status of Each Cash Flow （billions of yen） 2022 Q2 2023 Q2 Change Change (%) CF from operating activities 5.5 24.6 19.1 346.7% CF from investing activities (10.5) (8.9) 1.6 ー ＜Investment total（①＋②）＞ billion Free CF (5.0) 15.6 20.6 ー CF from financing activities 3.5 (15.7) (19.1) ー ➀ Capital expendit

  27. Slide 27: 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

  28. Slide 28: Alcoholic Beverages Data

    Alcoholic Beverages Data Japanese ＜ Jan- Jun sales revenue ＞ (billions of yen) （billions of yen） YoY Sales:Beer (Japan) 2022Q2 2023Q2 Change(%) Beer 60.9 70.8 16.2% Happoshu 2.7 2.7 (1.9%) New genre 20.9 19.0 (9.2%) Beer, happoshu, and new genre 84.6 92.5 9.3% RTD 11.1 12.4 11.3% Domestic wines 1.6

  29. Slide 29: Alcoholic Beverages Data

    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. 29/34

  30. Slide 30: Alcoholic Beverages Data

    Alcoholic Beverages Data Overseas (10,000 cases) YoY Sales Volume:Beer (International) 2022Q2 2023Q2 Change(%) Overseas brand (※1) 623 800 28.4% Sapporo brand 204 211 3.5% ①North America 827 1,011 22.3% Sapporo brand 119 138 15.4% ②Other areas 119 138 15.4% Total（①＋②） 946 1,148 21.4% Sapporo brand T

  31. Slide 31: Alcoholic Beverages Data

    Alcoholic Beverages Data Restaurants ＜Composition of Restaurants by Format＞ YoY Restaurants 2022Q2 2023Q2 Change(%) Revenue （billions on yen） 6.4 9.2 42.7% Number of Restaurants 160 137 (14.4%) ＜Trend in Revenue of Restaurants Business 137Outlets and Number of Restaurants＞（Jan-Jun） （billions of yen）

  32. Slide 32: Food & Soft Drinks Data

    Food & Soft Drinks Data Japanese （billions of yen） YoY Sales:Food & Soft Drinks (Japan) (※1) 2022Q2 2023Q2 Change(%) Soft Drinks 28.3 26.5 (6.3%) Food（Lemon・Soups・Plant milk) 14.4 13.7 (4.5%) ※1：Only domestic sales(Before Rebate subtracted from sales) ＜ Japanese soft drinks POKKA SAPPORO Food & Beve

  33. Slide 33: Real Estate Data

    Real Estate Data Real Estate ＜ Information about Investment property ＞ (billions of yen) ＜ Major rental properties & occupancy rates：（Averages for 2023 Q2)> 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,

  34. Slide 34: 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. 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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