Sapporo Holdings Limited · TSE:2501

Sapporo — 9M 2020 Earnings Presentation

36 slides from Sapporo's earnings presentation, Nov 6, 2020

  1. Slide 1: Sapporo Group Business Results Presentation for the Nine Months Ended September 30, 2020

    Sapporo Group Business Results Presentation for the Nine Months Ended September 30, 2020 November 6th 2020 URL https://www.sapporoholdings.jp/en/ Copyright, 2020 SAPPORO HOLDINGS LTD. All rights reserved. 1/36

  2. Slide 2: Agenda

    １．Progress with Management Plan ・・・P3~P5 ２．Business Result ・・・P6~P23 ３．Appendix ・・・P24~P36 Copyright, 2020 SAPPORO HOLDINGS LTD. All rights reserved. 2/36

  3. Slide 3: Progress with Management Plan

    Progress with Management Plan Copyright, 2020 SAPPORO HOLDINGS LTD. All rights reserved. 3/36

  4. Slide 4: Progress with Group Management Plan 2024 Initiatives

    Progress with Group Management Plan 2024 Initiatives Strengthened initiatives in each business. Making progress as shown below in narrowing loss margins and achieving further growth in fields in which we have strengths ・Initiatives for businesses whose earnings will Progress significantly decline Co

  5. Slide 5: Progress with 2020 Full Year Plan

    Progress with 2020 Full Year Plan Market recovery delayed by resurgence of COVID-19 infection meaning Food & Soft Drinks and restaurant-related business were unable to achieve targets Meanwhile, beer and beer-type beverages, led by canned products, cumulatively exceeded targets with no major deviati

  6. Slide 6: Business Result

    Business Result Copyright, 2020 SAPPORO HOLDINGS LTD. All rights reserved. 6/36

  7. Slide 7: Review of Nine Months Ended September 30, 2020 [Result]

    Review of Nine Months Ended September 30, 2020 [Result] While there was a reversal from the temporary demand ahead of the consumption tax hike last year for household products, cumulative figures exceeded the previous year’s level New genre continued to grow partly due to temporary demand ahead of t

  8. Slide 8: Review of Nine Months Ended September 30, 2020 [Issues]

    Review of Nine Months Ended September 30, 2020 [Issues] Commercial-use beer, restaurant-related business, and vending machine soft drink business continued to slump due to the impact of COVID-19 RTDs struggled as 99.99 (Four Nines) made little progress Beer (bottles・kegs） RTD Sapporo Lion sales volu

  9. Slide 9: Results Highlight

    Results Highlight 2019 2020 YoY changes YoY changes （billions of yen） 3Q 3Q (amount) (%) Revenue 361.0 (12.7%) Revenue（Excluding liquor tax） 272.9 238.4 (34.5) (12.6%) Overseas revenue 54.4 48.9 (5.5) (10.1%) EBITDA 24.4 18.4 (6.0) (24.6%) Core operating profit 6.4 (81.7%) Core operating profit marg

  10. Slide 10: Results Highlight

    Results Highlight While earnings are on a gradual recovery trend accompanying the market recovery, performance still down year on year Revenue Core operating profit Profit attributable to owners of parent (billions of yen) (billions of yen) (billions of yen) (1.4) +0.1 150 1,500 (17.4) 808 （-18.7%）

  11. Slide 11: Results Highlight

    Results Highlight While overall profit declined due to slump in the restaurant business, core operating profit excluding the restaurant business was in line with previous year’s level (cumulative Jan-Sep) (billions of yen) 808 +0.6 Positive （+10.1%） Core operating profit (consolidated) ➀＋② Core oper

  12. Slide 12: Results Highlight

    Results Highlight Balance of net debt Equity Capital expenditure (cash basis) 2019期末 2019期末 2019Q3 212.1 213.4 2020Q3 174.5 163.1 2020Q3 25.5 2020Q3 13.5 （billions of yen） （billions of yen） （billions of yen） Transformation of the Group Group Topics management platform <July-September> <July-Septembe

  13. Slide 13: Revenue by Segment

    Revenue by Segment 2019 2020 YoY changes YoY changes （billions of yen） 3Q 3Q (amount) (%) Revenue by Segment 361.0 (12.7%) Alcoholic Beverages 242.8 (14.8%) Japan & Asia 185.4 164.0 (21.4) (11.5%) North America 36.6 34.5 (2.1) (5.8%) Restaurants 20.7 8.3 (12.4) (60.0%) Food & Soft Drinks 99.8 (8.9%)

  14. Slide 14: Main Factors Contributing to Changes in Revenue

    Main Factors Contributing to Changes in Revenue Revenue declined overall, despite new genre and Japanese liquor sales growth and contribution from Yasuma consolidation, as sales at other businesses fell (billions of yen) Alcoholic Beverages Food & Soft Drinks Real Estate YoY difference 2019 3Q Total

  15. Slide 15: Core Operating Profit by Segment

    Core Operating Profit by Segment 2019 2020 YoY changes YoY changes （billions of yen） 3Q 3Q (amount) (%) Core Operating Profit by Segment 6.4 (81.7%) Alcoholic Beverages 4.7 (93.3%) Japan & Asia 4.3 4.1 (0.3) (6.7%) North America 0.2 0.2 0.1 55.4% Restaurants 0.2 (4.1) (4.3) - Food & Soft Drinks (1.0

  16. Slide 16: Main Factors Contributing to Changes in Core Operating Profit

    Main Factors Contributing to Changes in Core Operating Profit While overall profit declined due to slump in restaurant business, core operating profit excluding restaurant-related business was in line with previous year’s level due to increased profit from increased new genre and Japanese liquor sal

  17. Slide 17: Profit attributable to owners of parent

    Profit attributable to owners of parent 2019 （Details） 2020 （billions of yen） （Details） 3Q 3Q Core operating Profit 6.4 Other operating Proceeds from sale of Proceeds from sale of real estate income 3.1 Yebisu Square +1.9 2.7 +1.0 Coronavirus losses (3.5) Other operating 1.8 5.9 The expenses for Ear

  18. Slide 18: Alcoholic Beverages

    Alcoholic Beverages Continued to underperform previous year as commercial-use beer and restaurant business struggled due to the impact of COVID-19 ➢ Restaurant market gradually recovering <Revenue> (13.7) Positive ➢ Gold Star continued to be strong partly due to (billions of yen) 1000 100 (19.3) （-2

  19. Slide 19: Food & Soft Drinks

    Food & Soft Drinks Revenue and core operating profit declined reflecting sluggish vending machine soft drink sales and restaurant slump, despite strong performance of lemon-based products and food products <Revenue> 400 40 (3.4) Positive (billions of yen) (7.2) （-9.5%） +1.8 （-20.7%） ➢ Lemon-based pr

  20. Slide 20: Real Estate

    Real Estate While Sapporo Factory struggled, Yebisu Garden Place remained solid <Revenue> 808 Positive (billions of yen) (0.0) (0.3) ➢ High offices and rental housing occupancy rates (0.6) （-4.7%） （-0.2%） （-9.3%） 606 maintained ➢ Commercial facility sales and visitors on recovery track 404 6.1 6.1 6

  21. Slide 21: Changes in Balance Sheets

    Changes in Balance Sheets Total assets increased ¥5.0 billion from previous year end 現預金 Cash and cash equivalents Total assets Total assets ➢ Increased cash in hand and early procurement of corporate bonds as COVID-19 countermeasures 営業債権 Trade receivables 15.2 52.5 Current assets ➢ Seasonal factor

  22. Slide 22: Changes in Balance Sheets

    Changes in Balance Sheets Total liabilities increased ¥16.4 billion from previous year end, total equity fell ¥11.4 billion Total liabilities and Total liabilities and equity equity 営業債務 Trade payables 短期金融負債 Short-term financial liabilities 34.5 31.4 ➢ To procure cash reserves Current liabilities 7

  23. Slide 23: Financial Status

    Financial Status Investment on a cash basis was ¥ billion <Consolidated cash flow (CF) statement> <Investment total (①+②+③)> ¥ 2019 2020 billion (billions of yen) Change Change (%) 3Q 3Q CF from operating activities 34.4 21.3 (13.0) (37.9)% ➀ Capital expenditure (cash basis) : ¥ billion (Property, p

  24. Slide 24: Appendix

    Appendix Copyright, 2020 SAPPORO HOLDINGS LTD. All rights reserved. 24/36

  25. Slide 25: Appendix: Major sales volume & sale

    Appendix： Major sales volume & sale Sales Volume:Beer (Japan) ※1 (10,000 cases) Year ending Jan. 1 - Jan. 1 - Change Change(%) December 31, Change Change(%) Sep.30, 2019 Sep.30, 2020 2020 (Forecast) Sapporo Draft Beer Black Label (total) ー ー ー (23.2%) 1,380 (287) (17.2%) YEBISU (total) ー ー ー (19.3%)

  26. Slide 26: 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 – Sep) （％） (cumulative for each month) 200 [Beer and beer-type beverages total] down % YoY 175 ✓ Beer: down ％

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

    Appendix：Alcoholic Beverages (Japan) ＜Main brand Jan- Sep Sales volume change＞ ＜ Beer lineup (Jan- Sep break down) ＞ (10,000 cases) 1,400 1,200 17% 1,000 800 600 27% 56% 400 200 Black label Yebisu Other 0 2014 2015 2016 2017 2018 2019 2020 Black label brand total Yebisu brand total Mugi to Hop Copyr

  28. Slide 28: Appendix: Alcoholic Beverages (Japan)

    Appendix：Alcoholic Beverages (Japan) ＜ Jan- Sep sales revenue ＞ ＜ Jan- Sep sales breakdown by category ＞ (billions of yen) ※Incl. liquor tax 180.0 160.0 44.4 6% 1% 140.0 60.0 48.8 6% 52.5 37.8 34.2 120.0 55% Beer 41.7 8% 100.0 Happoshu & New genre Wine & Spirits 80.0 Japanese liquor RTD 60.0 117.8 1

  29. Slide 29: Appendix: Alcoholic Beverages (Japan)

    Appendix：Alcoholic Beverages (Japan) ＜ Jan- Sep sales revenue ＞ (billions of yen) 5.3 5.1 5.4 5.4 5.2 12.0 5.4 10.1 4.2 8.0 5.3 3.9 3.7 3.5 3.5 3.3 3.3 3.3 3.8 3.1 2.6 2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017 2018 2019 2020 Japanese Wine Imported Wine ＲＴＤ 7.2 6.1 6.5 4.9 5.5 11.8 4.2 4

  30. Slide 30: 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, 2020 SAPPORO HOLDINGS LTD. All rights reserved. 30/36

  31. Slide 31: Appendix: Alcoholic Beverages (Overseas)

    Appendix：Alcoholic Beverages (Overseas) ＜Overseas beer : YoY change in sales volume＞ ＜ Overseas sales volume by brand(Jan-Sep) ＞ （10,000cases） 【North America Total down % y-o-y 1,500 (Jan – Sep) 463 ✓ Overseas brand 1,200 336 up ％ y-o-y 900 600 1,007 1,033 ✓ Sapporo brand 300 down ％ y-o-y 0 2019 202

  32. Slide 32: Appendix: Alcoholic Beverages (Restaurants)

    Appendix：Alcoholic Beverages (Restaurants) ＜ Sales revenue and number of Sapporo Lion Outlets ＞ ＜Sapporo Lion outlets As of Sep 30, 2020 ＞ (Billions of yen) ※before rebate deduction （Jan- Sep） 200 18.0 188 11 15.0 177 180 10 Tokyo Metroporitan 168 173 170 12.0 158 160 13 Kanto (excl. Tokyo) 9.0 19.0

  33. Slide 33: Appendix: Food & Soft Drinks

    Appendix：Food & Soft Drinks ＜ Japanese soft drinks ＜ Japanese soft drinks POKKA SAPPORO Food & Beverage ＞ POKKA SAPPORO Food & Beverage ＞ Sales volume & Sales by genre(Jan- Sep) Sales composition by sales channel (Jan- Sep) 【Lemon based-drinks】 【Lemon-based food products】 39% ✓ up ％ y-o-y ✓ up ％ y-o

  34. Slide 34: Appendix: Food & Soft Drinks

    Appendix：Food & Soft Drinks ＜ Food & Soft Drinks segment Revenue break down by geographic area ＞ 【 Pokka Create Co., Ltd .】 ✓ Jan- Sep Sales revenue billion 86% down ％ y-o-y ＜ Number of outlets as of Sep 30, 2020> 115 14% 60 East Japan 212 outlets Central Japan Japan Overseas West Japan ＜Japanese so

  35. Slide 35: Appendix: Real Estate

    Appendix：Real Estate ＜ Information about ＜ Major rental properties & occupancy rates：（Averages for 2020 3Q )> Investment property ＞ (billions of yen) Occupa 400.0 Site area Floor area ncy rate No. of floors （㎡） （㎡） （%） 300.0 40 floors above ground, Yebisu Garden Place（1） 56,943 298,007 99 5 below 20

  36. Slide 36: As an intrinsic part of people's lives, Sapporo will contribute to creative lifestyles

    As an intrinsic part of people's lives, Sapporo will contribute to the evolution of creative, enriching and rewarding lifestyles. Copyright, 2020 SAPPORO HOLDINGS LTD. All rights reserved. 36/36

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