Sapporo Holdings Limited · TSE:2501

Sapporo — H1 2024 Earnings Presentation

30 slides from Sapporo's earnings presentation, Aug 13, 2024

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

    Sapporo Group Business Results Presentation for the Six Months Ended June 30, 2024 *In this document, the name abbreviations are used: August 13th 2024 SH: Sapporo Holdings Limited SB: Sapporo Breweries Ltd. SLN: Sapporo Lion Limited. URL https://www.sapporoholdings.jp/en/ PS: Pokka Sapporo Food & B

  2. Slide 2: １. Summary ２. Update to Medium to Long Term Management Policies for Increasing Group-wide

    １. Summary ・・・P.3 ２. Update to Medium to Long Term Management Policies ・・・P.4~P.6 for Increasing Group-wide Corporate Value ・・・P.7~P.18 ３. Business Results ・・・P.19~P.30 ４. Appendix Copyright, 2024 SAPPORO HOLDINGS LTD. All rights reserved. 2/30

  3. Slide 3: Summary

    Summary Business results：Increase in sales and profit, things are progressing steadily YoY YoY 2023 Q2 2024 Q2 ⚫ Revenue increased due to strong sales of beer in the （billions of yen） changes changes Result Result (amount) (%) Japan alcoholic beverages business Revenue 238.5 247.7 9.1 3.8% ⚫ Core op

  4. Slide 4: Update to Medium to Long Term Management Policies for Increasing Group-wide Corporate Value

    Update to Medium to Long Term Management Policies for Increasing Group-wide Corporate Value Copyright, 2024 SAPPORO HOLDINGS LTD. All rights reserved. 4/30

  5. Slide 5: Update to Medium to Long Term Management Policies for Increasing Group-wide Corporate Value

    Update to Medium to Long Term Management Policies for Increasing Group-wide Corporate Value <Image of direction of Sapporo group’s transformation> <Consideration structure> ・The Company has formed a number of working groups drawing ・The Company will further concentrate its management resources to fo

  6. Slide 6: Update to Medium to Long Term Management Policies for Increasing Group-wide Corporate Value

    Update to Medium to Long Term Management Policies for Increasing Group-wide Corporate Value ＜Review status＞ ・The Company aims to acquire a 25% share of the domestic beer market and realize a higher profit ratio from a long-term perspective Japan ・Collaborating with the food & non-alcoholic beverages

  7. Slide 7: Business Results

    Business Results Copyright, 2024 SAPPORO HOLDINGS LTD. All rights reserved. 7/30

  8. Slide 8: Financial Highlights

    Financial Highlights 2023 Q2 2024 Q2 YoY changes YoY changes （billions of yen） Result Result (amount) (%) Revenue 238.5 247.7 9.1 3.8% Revenue（Excluding liquor tax） 184.6 193.4 8.9 4.8% Overseas revenue 57.4 61.4 4.0 7.0% EBITDA 13.5 14.0 0.5 3.9% Core operating profit (Revenue - Cost of sales - SG&

  9. Slide 9: Financial Highlights

    Financial Highlights YoY YoY YoY YoY 2023 Q2 2024 Q2 2023 Q2 2024 Q2 （billions of yen） changes changes （billions of yen） changes changes Result Result Result Result (amount) (%) (amount) (%) Core Operating Profit Revenue by Segment 238.5 247.7 9.1 3.8% 3.5 3.5 0.0 1.1% by Segment Alcoholic Beverages

  10. Slide 10: Financial Highlights

    Financial Highlights Revenue increased for all of our businesses, excluding the Japan Food & Soft Drinks business where structural reforms are being implemented. Driver of revenue growth is the strong performance of beer in Japanese alcoholic beverages business Reasons for changes in sales revenue A

  11. Slide 11: Financial Highlights

    Financial Highlights Maintained core operating profit on par with last year’s, supported by higher sales despite up-front investments Improvement in the marginal profit of beer-type beverages due to the strong performance of beer sales has contributed to profit Details of the factors behind the chan

  12. Slide 12: Business Strategies: Action Plan

    Business Strategies：Action Plan Plan to steadily disclose On slides after page 13, 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

  13. Slide 13: Business Strategies: Alcoholic Beverages

    Business Strategies：Alcoholic Beverages Japanese Reasons for changes in core operating profit(billions of yen） Revenue：125.0billions of yen（YoY+3.9billions of yen、＋3.2%） Core operating profit：5.2billions of yen（YoY+0.7billions of yen 、＋16.5%） Beer-type wine, spirits, Beer-type beverages beverages’ S

  14. Slide 14: Business Strategies: Alcoholic Beverages

    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：46.1billions of yen（YoY+3.9billions of yen、＋9.3%） Anchor+0.6 Core operating profit：(0.7)billions of yen

  15. Slide 15: Business Strategies: Alcoholic Beverages

    Business Strategies：Alcoholic Beverages Restaurants Revenue：9.8billions of yen（YoY+0.7billions of yen、＋7.1%） Core operating profit：0.8billions of yen（YoY+0.0billions of yen 、＋0.5%） Number of customers and sales per customer at existing stores have been increasing at existing stores, with increases i

  16. Slide 16: 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：42.0billions of yen（YoY(0.4)billions of yen、(0.9%)） Core operating profit：(0.1)billions of yen（YoY+0.1billions of yen） decrease in M

  17. Slide 17: 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：11.3billions of yen（YoY+0.8billions of yen、＋7.2%） Core operating profit：2.4billions of yen（YoY+0.5billions of yen 、＋25.6%） EBITDA：5.4billions of yen（Y

  18. Slide 18: Action Plan KPI

    Action Plan KPI ※1 Forex assumption: ¥130 Q2results Full year medium-term ※2 Local currency basis (Singapore dollar) plan Target 2022 Q2 2023 Q2 2024 Q2 2022 2023 2024 plan Japan alcoholic Reinforcement of Beer / Improving Profitability of Beer-type Bev. beverages Increase beer sales: share of beer

  19. Slide 19: Appendix

    Appendix Copyright, 2024 SAPPORO HOLDINGS LTD. All rights reserved. 19/30

  20. Slide 20: Financial Indicator: Financial Targets

    Financial Indicator Financial Targets medium-term Q2 result Full year plan Target Targets for 2026 have not been changed since the Medium-Term Business Plan was formulated 2022 Q2 2023 Q2 2024 Q2 2022 2023 2024 plan 2026 Target ROE - - - 3.3% 5.0% 5.5% 8.0% (Approximation) (2.2) 3.5 3.5 9.3 15.6 19.

  21. Slide 21: Financial Indicator: Target for core operating profit margin

    Financial Indicator Target for core operating profit margin medium-term Q2 result Full year plan Target Targets for 2026 have not been changed since the Medium-Term Business Plan was formulated 2022 Q2 2023 Q2 2024 Q2 2022 2023 2024 plan 2026 Target Japan alcoholic beverages 0.1% 3.7% 4.2% 3.5% 5.3%

  22. Slide 22: Balance Sheets

    Balance Sheets （billions of yen） Total assets End of 2023 2024 Q2 Change Total liabilities and equity End of 2023 2024 Q2 Change Cash and cash equivalents 17.2 20.2 3.0 Trade payables 38.7 38.3 (0.4) Trade receivables 98.0 88.3 (9.7) Short-term financial liabilities 39.7 58.2 18.5 Inventories 47.6 5

  23. Slide 23: Status of Each Cash Flow

    Status of Each Cash Flow （billions of yen） 2023 Q2 2024 Q2 Change Change (%) CF from operating activities 24.6 11.1 (13.5) (55.0%) CF from investing activities (8.9) (10.9) (2.0) ー ＜Investment total（①＋②）＞ billion Free CF 15.6 0.2 (15.5) ー CF from financing activities (15.7) 0.3 16.0 ー ➀ Capital expe

  24. Slide 24: 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

  25. Slide 25: Alcoholic Beverages Data

    Alcoholic Beverages Data Japanese ＜ Jan- Jun sales revenue ＞ (billions of yen) （billions of yen） YoY Sales:Beer (Japan) 2023Q2 2024Q2 Change(%) Beer 70.8 75.7 6.9% Happoshu (include New genre) 21.7 18.9 (13.1%) Beer-type beverages 92.5 94.5 2.2% RTD 12.4 12.5 1.5% Domestic wines 1.6 1.1 (34.7%) Impo

  26. Slide 26: Alcoholic Beverages Data

    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 46.99 yen New genre RTD 37.8 35 ✓ RTD 28 yen 2020 2023 2026 （year） Copyright, 2024 SAPPORO HOLDINGS LTD. All rights reserved. 26/30

  27. Slide 27: Alcoholic Beverages Data

    Alcoholic Beverages Data Overseas (10,000 cases) YoY Sales Volume:Beer (International) 2023Q2 2024Q2 Change(%) Overseas brand (※1) 800 738 (7.7%) Sapporo brand 211 226 7.2% ①North America 1,011 964 (4.6%) Sapporo brand 138 193 40.0% ②Other areas 138 193 40.0% Total（①＋②） 1,148 1,157 0.8% Sapporo bran

  28. Slide 28: Food & Soft Drinks Data

    Food & Soft Drinks Data Japanese （billions of yen） YoY Sales:Food & Soft Drinks (Japan) (※1) 2023Q2 2024Q2 Change(%) Soft Drinks 26.5 25.4 (4.5%) Food（Lemon・Soups・Plant milk) 13.7 12.4 (9.4%) ※1：Only domestic sales(Before Rebate subtracted from sales) 【Coffee drinks】 【Tea drinks】 ＜Japanese soft drin

  29. Slide 29: Real Estate Data

    Real Estate Data Real Estate ＜ Information about Investment property ＞ (billions of yen) ＜ Major rental properties & occupancy rates：（Averages for 2024 Q2)> 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

  30. Slide 30: 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 — H1 2024 Earnings Presentation on 6ix