Slide 1: Sapporo Group Business Results Presentation for the Three Months ended March 31, 2012
2012 Sapporo Group Business Results Presentation for the Three Months ended March 31, 2012 May 9, 2012 Sapporo Holdings Ltd. URL http://www.sapporoholdings.jp/english Copyright, 2012SAPPORO HOLDINGS LTD. All rights reserved. 1/25
Slide 2: Contents
Contents 1. Progress of Implementation of 2012 Basic Strategies 2. Overview of First-Quarter 2012 Results 3. Supplementary Information to First-Quarter 2012 Results Reference: Management Targets 2012-2013 Copyright, 2012 SAPPORO HOLDINGS LTD. All rights reserved. 2/25
Slide 3: 1. Progress of Implementation of 2012 Basic Strategies
1. Progress of Implementation of 2012 Basic Strategies Copyright, 2012 SAPPORO HOLDINGS LTD. All rights reserved. 3/25
Slide 4: Progress of Implementation of 2012 Basic Strategies
Progress of Implementation of 2012 Basic Strategies We promoted three basic strategies for achieving dramatic growth We will leverage the strengths of our To realize the fruits of the various We will continue to aggressively pursue various business’s brands and initiatives undertaken in recent years
Slide 5: 2. Overview of First-Quarter 2012 Results
2. Overview of First-Quarter 2012 Results Copyright, 2012 SAPPORO HOLDINGS LTD. All rights reserved. 5/25
Slide 6: Overview of First-Quarter 2012 Results - Special Factors
Overview of First-Quarter 2012 Results -Special Factors- Breakdown of special factors does not allow meaningful comparisons between net sales and operating income for the first quarter of 2012 and the same period a year earlier See the Supplementary Information to our Earnings Report for factors beh
Slide 7: Overview of First-Quarter 2012 Results - Consolidated
Overview of First-Quarter 2012 Results -Consolidated- Sales increased significantly due to recovery of Japanese Alcoholic Beverages and Restaurants, which were directly affected by the earthquake in 2011 as well as the special factors discussed in the previous slide. Despite profit increase at Resta
Slide 8: Overview of First-Quarter 2012 Results - by Segment
Overview of First-Quarter 2012 Results -by Segment- Operating Income YoY changes (billions of yen) 2011 1Q 2012 1Q Amount % Japanese Alcoholic (4.0) (4.8) (0.8) ― Beverages International (0.1) (0.4) (0.2) ― North America, other 0.0 (0.0) (0.1) ― Vietnam (0.2) (0.4) (0.2) ― Food & Soft Drinks 0.0 (1.
Slide 9: Overview of First-Quarter 2012 Results - Strategic Investments
Overview of First-Quarter 2012 Results -Strategic Investments- Implementation Status of Strategic Investments (excl. ordinary capex) Credit Ratings <Acquisition of stake in Silver Springs Citrus> <Announcement of the acquisition of 15% of trust beneficiary ¾ On January 31, acquired 51% of outstandin
Slide 10: 3. Supplementary Information to First-Quarter 2012 Results
3. Supplementary Information to First-Quarter 2012 Results *For information on each business’s profitability, please also see the Supplementary Information to our Earnings Report Copyright, 2012 SAPPORO HOLDINGS LTD. All rights reserved. 10/25
Slide 11: Japanese Alcoholic Beverages (1)
Japanese Alcoholic Beverages (1) (billions of yen) Year-over-year changes Results highlights Sales increased reflecting strong sales of the three core *Incl. liquor taxes 2011 1Q 2012 1Q Amount % brands and rebound from the direct impact of the earthquake. Operating income declined due to Net sales*
Slide 12: Japanese Alcoholic Beverages (2)
Japanese Alcoholic Beverages (2) Key points in business plan: implementation status 3. Expand sales of wine, western spirits and shochu 2. Laying the groundwork for growth in expanding areas Wine RTD-related actions <Sapporo’s first year of ¾ Both imported and Japanese wines achieved year-over-year
Slide 13: International Business (1)
International Business(1) billions of yen Results highlights Year-over-year changes Sales rose 7.5% YoY, even though yen appreciation erased gains in local currency terms, especially in 2011 1Q 2012 1Q Amount % North America. 59.9 Operating income fell due to the impact of 55 expenses related to bui
Slide 14: International Business (2)
International Business(2) Key points in business plan: implementation status Developments in South Korea ¾ Strengthened Sapporo brand value and sales structure in South 2. Expansion in Asian market (incl. Oceania) Korea by acquiring a 15% stake in M’s Beverage Co., Ltd., a Developments in Vietnam wh
Slide 15: Food & Soft Drinks – Sapporo Beverage
Food & Soft Drinks – Sapporo Beverage Results highlights billions of yen Sales volume in 1Q declined to 91% of the previous year Year-over-year changes against a overall demand rise to104%, partly due to the impact of special demand for Japanese drinking water 2011 1Q 2012 1Q Amount % following the
Slide 16: Food & Soft Drinks – POKKA Group (1)
Food & Soft Drinks – POKKA Group (1) Year-over-year changes billions of yen Results highlights 2011 1Q 2012 1Q Amount % New consolidation from April 2011 makes YoY comparisons meaningless, but comparisons based on figures below show sales were boostedby contribution from Domestic Restaurants through
Slide 17: Food & Soft Drinks – POKKA Group (2)
Food & Soft Drinks – POKKA Group (2) Key points in business plan: implementation status Beverage & Food Business (Japan): POKKA Corp. and six group vending machine operators 1. Beverage Business ¾ Concentrating investments in core brands Kireto Lemon Re-launched the product Started airing new TV com
Slide 18: Food & Soft Drinks – POKKA Group (3)
Food & Soft Drinks – POKKA Group (3) Key points in business plan: implementation status Beverage & Food Business (Overseas): POKKA Singapore Restaurants Business (Domestic): POKKA CREATE Co., Ltd. 1. Expand into Singapore’s neighboring countries 1. Expand sales via growth at existing stores, chain e
Slide 19: Restaurants
Restaurants Results highlights billions of yen Year-over-year increase in sales in the Restaurant Business, Year-over-year changes which was directly affected by the Great East Japan Earthquake last year. 2011 1Q 2012 1Q Amount % Sales for 1Q increased 13.3% YoY at existing stores, with March alone
Slide 20: Real Estate (1)
Real Estate (1) billions of yen Results highlight Year-over-year changes Maintaining stable revenues despite high 2011 1Q 2012 1Q Amount % vacancy rates and continued fall in rents in Tokyo office leasing market Net sales 5.7 5.3 (0.3) -6.0% Operating Key point in business plan: implementation statu
Slide 21: Real Estate (2)
Real Estate (2) Overview of Real Estate Business ¾ Majority of the business’s operating income is from real estate leasing – Property portfolio largely comprises properties in Tokyo 5 central wards: see previous page ¾ In January, we changed the name of Yebisu Garden Place Co., Ltd. to Sapporo Real
Slide 22: Ref. 2012-2013 Management Targets
Ref. 2012-2013 Management Targets * 2012-2013 Management Targets are unchanged from the figures announced on February 10, 2012 Copyright, 2012 SAPPORO HOLDINGS LTD. All rights reserved. 22/25
Slide 23: 2012-2013 Management Targets
2012-2013 Management Targets Consolidated targets 2006 results 2011 results 2012 targets 2013 targets 2016 targets Consolidated net sales ¥435.0 bn ¥449.4 bn*1 ¥510.0 bn ¥535.0 bn *incl. liquor taxes ¥600.0 bn (excl. liquor taxes) ¥294.0 bn ¥336.8 bn*1 ¥396.0 bn ¥420.0 bn ¥450.0 bn Consolidated oper
Slide 24: 2012-2013 Management Targets by Segment
2012-2013 Management Targets by Segment Targets 2011 results 2012 targets 2013 targets Japanese Alcoholic Beverages ¥268.1 bn ¥288.0 bn ¥300.0 bn International Business ¥25.8 bn ¥37.3 bn ¥44.0 bn Food & Soft Drinks ¥108.0 bn*1 ¥134.6 bn ¥140.0 bn Net sales Restaurants ¥24.0 bn ¥24.9 bn ¥26.0 bn Real
Slide 25: To make people's lives richer and more enjoyable.
To make people’s lives richer and more enjoyable. 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 assessment of potential risks and uncertainties. Actual outcomes may differ mate