Sapporo Holdings Limited · TSE:2501

Sapporo — Q1 2022 Earnings Presentation

31 slides from Sapporo's earnings presentation, May 12, 2022

  1. Slide 1: Sapporo Group Business Results Presentation for the Three Months Ended March 31, 2022

    Sapporo Group Business Results Presentation for the Three Months Ended March 31, 2022 *In this document, the following company name abbreviations are used: May 12th 2022 SH: Sapporo Holdings Limited SB: Sapporo Breweries Ltd. SLN: Sapporo Lion Limited. URL https://www.sapporoholdings.jp/en/ PS: Pokk

  2. Slide 2: Contents

    １． Business Results for the Three Months Ended March 31, 2022 ・・・P3~P16 2． Appendix ・・・P17~P31 Copyright, 2022 SAPPORO HOLDINGS LTD. All rights reserved. 2/31

  3. Slide 3: Business Results

    Business Results Copyright, 2022 SAPPORO HOLDINGS LTD. All rights reserved. 3/31

  4. Slide 4: Financial Highlights

    Financial Highlights ➢ Despite the impact from the resurgence of COVID-19 infections, restaurant demand recovered to some degree. Steady growth for RTD and alcoholic beverages in overseas contributed to an increase in revenue. ➢ Core operating profit improved thanks to the effect of revenue increase

  5. Slide 5: Reasons for changes in sales revenue

    Reasons for changes in sales revenue Due to the sale of property last year and decrease of rent over the renovation of the YGP (billions of yen) commercial complex*,real estate business revenue were down from the previous quarter. = Increase However, thanks to increasing sales in restaurants and alc

  6. Slide 6: Reasons for changes in core operating profit

    Reasons for changes in core operating profit The recovery in restaurant demand, strong sales for RTD, and steady growth in the overseas (billions of yen) market offset a decline in profit in the real estate business. As a result, profit increased ¥ = Increase million. Alcoholic Beverages Food & Soft

  7. Slide 7: Alcoholic beverages in Japan

    Alcoholic beverages in Japan We saw an increase in revenue and profit attributed from the demand recovery for restaurants business and strong sales for RTD which offset a fixed cost from Sendai Brewery depreciation, etc. Up ＜Revenue＞ ＜Core operating profit＞ （billions of yen） y-o-y （billions of yen）

  8. Slide 8: Alcoholic beverages in overseas

    Alcoholic beverages in overseas The demand recovery for restaurants business and steady sales with the expansion of SPB* led to an increase in revenue and profit. ＜Revenue＞ ＜Core operating profit＞ （billions of yen） （billions of yen） Up y-o-y Canada: +0.9 Up U.S.:+1.0 y-o-y The growth strategy and pr

  9. Slide 9: Alcoholic beverages in restaurants

    Alcoholic beverages in restaurants The demand recovery for restaurants business and decrease in fixed cost from the structural reforms led to an increase in revenue and profit. ＜Revenue＞ Up ＜Core operating profit＞ （billions of yen） （billions of yen） y-o-y Up y-o-y The growth strategy and progress of

  10. Slide 10: Food & Soft Drinks

    Food & Soft Drinks With the effect of series of renewal, Lemon beverages on its course in Japan. Increased revenue and profit contributed by CNY* sales in Singapore Up ＜Revenue＞ ＜Core operating profit＞ （billions of yen） y-o-y （billions of yen） Up y-o-y The growth strategy and progress of structure r

  11. Slide 11: Real Estate business

    Real Estate business The sales of Yebisu First Square last year and decrease of rent over the ｓrenovation for YGP commercial complex* led to decrease in revenue and profit. ＜Revenue＞ ＜Core operating profit＞ （billions of yen） Down （billions of yen） sale of property(0.4) y-o-y Down sale of property(0.

  12. Slide 12: Profit attributable to owners of parent

    Profit attributable to owners of parent 2021 Q1 2022 Q1 （億円） 主な内訳 主な内訳 実績 実績 Core operating Profit (6.9) (6.4) Other operating income 1.3 2.5 Gain on sales of fixed assets, etc. Other operating expenses 0.6 0.6 Operating Profit (6.2) (4.5) Profit before tax (6.2) (4.3) Income taxes (1.0) (0.3) Profi

  13. Slide 13: Changes in Balance Sheets

    Changes in Balance Sheets Total assets declined 42.9 billions yen from the previous year end Total assets Total assets Cash and cash equivalents 17.4 25.7 Trade receivables Current assets 91.5 64.2 Change ➢ seasonal factors, bank holiday (12.0) 39.2 42.0 Inventories 19.7 23.9 Other current assets 12

  14. Slide 14: Changes in Balance Sheets

    Changes in Balance Sheets Total liabilities declined 1.1 billions yen from the previous year end and total capital declined 3.2 billions yen from the previous year end Balance of net debt Total liabilities and Total liabilities and equity （billions of yen） equity Trade payables 33.2 31.4 Short-term

  15. Slide 15: Financial Status

    Financial Status Investment on a cash basis was ¥ billion <Consolidated cash flow (CF) statement> ＜ Investment total (①＋②＋③)> ¥ billion 2021 Q1 2022 Q1 （billions of yen） Change Change (%) ➀ Capital expenditure (cash basis): ¥ billion Result Result CF from operating activities 2.1 (0.8) (2.9) ー （Prop

  16. Slide 16: The Group Topics for DX promotion

    The Group Topics for DX promotion The growth strategy and progress of structure reform 2022年取り組み方針 Policy for 2022 Initiatives 評価 Evaluation 進捗状況 Progress 「サッポログループDX方針」を策定して本年3/22にリリース “The Sapporo Group’s DX policies” released on March 22 https://www.sapporoholdings.jp/news/dit/?id=8912 Structural

  17. Slide 17: Appendix

    Appendix Copyright, 2022 SAPPORO HOLDINGS LTD. All rights reserved. 17/31

  18. Slide 18: Appendix: Initiatives for Sustainability Management

    Appendix: Initiatives for Sustainability Management Sustainability management strategy The Sapporo Group will address global environmental and social issues to make people happy. The earth, the source of nature's bounty, is our most important partner. We will strive to collaborate and prosper togeth

  19. Slide 19: Sapporo Group Environmental Vision 2050

    Appendix: Initiatives for Sustainability Management Sapporo Group Environmental Vision 2050 Toward a “carbon-free society, recycling-oriented society and society in harmony with nature” Specific initiatives Carbon-free society ・Reduce CO2 of our own business sites by 20% (by 2030 vs. 2013) SB PS -Re

  20. Slide 20: Major sales volume & sale

    Appendix： Major sales volume & sale (Beer and beer-type beverages and non-alcoholic beer calculations based on large bottles,RTDs are calculated by 250 ml × 24 bottles.) Sales Volume:Beer (Japan) ※1 (10,000 cases) Sales:Beer (Japan) *including liquor tax (billions of yen) Jan. 1 - Jan. 1 - YoY Jan.

  21. Slide 21: Appendix: Alcoholic Beverages (Japan)

    Appendix：Alcoholic Beverages (Japan) <Domestic beer and beer-type beverages: <YoY changes in sales volume of beer and beer-type YoY change in sales volume by genre> beverages by genre> (Jan – Mar) （％） (cumulative for each month) [Beer and beer-type beverages total] down % YoY 110 100 ✓ Beer: up ％ y-

  22. Slide 22: Appendix: Alcoholic Beverages (Japan)

    Appendix：Alcoholic Beverages (Japan) ＜Main brand Jan- Mar Sales volume change＞ ＜ Beer lineup sales volume(Jan- Mar break down) ＞ (10,000 cases) 400 350 21% 300 250 200 22% 150 100 57% 50 Black Lable Yebisu Others 0 2015 2016 2017 2018 2019 2020 2021 2022 Black Lable brand total Yebisu brand total Mu

  23. Slide 23: Appendix: Alcoholic Beverages (Japan)

    Appendix：Alcoholic Beverages (Japan) ＜ Jan- Mar sales revenue ＞ ＜ Jan- Mar sales breakdown by category ＞ (billions of yen) ※Incl. liquor tax 50 11% 1% 8% 48% Beer 40 12.7 Happoshu & New genre 13.9 11.7 8% 14.4 9.8 Wine & Spirits 12.3 Japanese Liquor 30 12.1 11.4 RTD Non-alcoholic beer 20 24% 29.3 31

  24. Slide 24: Appendix: Alcoholic Beverages (Japan)

    Appendix：Alcoholic Beverages (Japan) ＜ Jan- Mar sales revenue ＞ (billions of yen) *From 2021, Hyosai Sour and 99.99 keg are reclassified from Spirits to RTD. 0.3 0.2 1.6 1.6 1.7 1.6 0.4 1.6 1.5 1.3 1.3 0.4 4.5 4.9 0.4 4.0 0.3 2.9 1.2 1.1 1.1 1.1 0.3 0.3 1.9 0.9 0.9 0.8 0.8 1.5 0.9 1.0 2015 2016 2017

  25. Slide 25: Appendix: Alcoholic Beverages (Japan) liquor tax changes

    Appendix：Alcoholic Beverages (Japan) ＜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, 2022 SAPPORO HOLDINGS LTD. All rights reserved. 25/31

  26. Slide 26: Appendix: Alcoholic Beverages (Overseas)

    Appendix：Alcoholic Beverages (Overseas) ＜Overseas beer : YoY change in sales volume＞ ＜ Overseas sales volume by brand (Jan-Mar) ＞ (Jan – Mar) （10,000 cases） 【North America Total up ％ y-o-y 500 ✓ Overseas brand 400 141 121 104 145 down ％ y-o-y 300 200 279 277 277 265 ✓ Sapporo brand 100 0 up ％ y-o-y

  27. Slide 27: Appendix: Alcoholic Beverages (Restaurants)

    Appendix：Alcoholic Beverages (Restaurants) ＜ Sales revenue and number of Sapporo Lion Outlets ＞ ＜Sapporo Lion outlets As of Mar 31, 2022 ＞ (Billions of yen) ※before rebate deduction （Jan- Mar） 200 12.0 179 170 174 170 180 11 9.0 162 8 Tokyo Metroporitan 155 160 Kanto (excl. Tokyo) 6.0 12 Hokkaido 12

  28. Slide 28: Appendix: Food & Soft Drinks

    Appendix：Food & Soft Drinks ＜ Japanese soft drinks POKKA SAPPORO Food & Beverage ＞ Sales volume & Sales by genre(Jan- Mar) ＜ Japanese soft drinks POKKA SAPPORO Food & Beverage ＞ Changes in sales volume for lemon beverages and lemon Food 【Lemon based-drinks】 【Lemon-based food products】 (the total vol

  29. Slide 29: Appendix: Food & Soft Drinks

    Appendix：Food & Soft Drinks ＜ Japanese soft drinks ＜ Food & Soft Drinks segment POKKA SAPPORO Food & Beverage ＞ Revenue break down by geographic area ＞ Sales composition by sales channel (Jan- Mar) ※Except connection adjustment 35% 79% 7.69 million Vending machine 21% cases Retailer 65% Japan Overse

  30. Slide 30: Appendix: Real Estate

    Appendix：Real Estate ＜ Information about Investment property ＞ ＜ Major rental properties & occupancy rates：（Averages for 2022 1Q )> (billions of yen) Occupa 400.0 Site area Floor area ncy rate No. of floors （㎡） （㎡） （%） 300.0 40 floors above ground, 200.0 408.1 Yebisu Garden Place（1） 56,943 298,007 9

  31. Slide 31: As an intrinsic part of people's lives, Sapporo will contribute to the evolution of creative 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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