Sapporo Holdings Limited · TSE:2501

Sapporo — H1 2014 Earnings Presentation

23 slides from Sapporo's earnings presentation, Aug 6, 2014

  1. Slide 1: Sapporo Group Business Results Presentation for the Six Months Ended June 30, 2014

    2014 Sapporo Group Business Results Presentation for the Six Months Ended June 30, 2014 August 6, 2014 Sapporo Holdings Ltd. URL http://www.sapporoholdings.jp/english Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved. 1/23

  2. Slide 2: Contents

    Contents 1. First-Half 2014 Topics 2. Revision of 2014 Full-Year Earnings Forecasts Reference 1. Overview of First-Half 2014 Results 2. Supplementary Information to First-Half 2014 Results (Business Summary) 3. Sapporo Group’s Medium-Term Management Plan 2014 - 2016 Copyright, 2014 SAPPORO HOLDINGS

  3. Slide 3: 1. First-Half 2014 Topics

    1. First-Half 2014 Topics Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved. 3/23

  4. Slide 4: First-Half 2014 Topics (1) Japanese Alcoholic Beverages

    First-Half 2014 Topics (1) Japanese Alcoholic Beverages  Jan-Jun cumulative: Sales volume of beer and beer-type beverages (beer, happoshu and new genre) up ５% yoy (total demand down 1% yoy) Following 1Q, Sapporo's 2Q sales growth again exceeded total demand growth despite the reaction to the last-

  5. Slide 5: First-Half 2014 Topics (2) International Business

    First-Half 2014 Topics (2) International Business North America SLEEMAN (Canada) SLEEMAN Net Sales (before elimination of inter-company transactions) in Local Currency (Jan-Jun)  Despite sales declining amid intensifying （Jan-Jun) 154.2 155.9 price competition of best-value products, 150 147.1 sale

  6. Slide 6: First-Half 2014 Topics (3) Food & Soft Drinks

    First-Half 2014 Topics (3) Food & Soft Drinks  POKKA SAPPORO Food & Beverages Ltd., into its second year of operations: Sales have exceeded the previous year’s level from the beginning of the year •While domestic soft drinks sales volume stayed more or less at the same level year over year, sales v

  7. Slide 7: First-Half 2014 Topics (4) Restaurants

    First-Half 2014 Topics (4) Restaurants  Sapporo’s comparable-store sales in Jan-Jun period were 100.1% while those of overall pub/izakaya dining format underperformed the previous year’s level While sales for all restaurants declined due to renovation of buildings that house key restaurants in Ginz

  8. Slide 8: First-Quarter 2014 Topics (5) Real Estate

    First-Quarter 2014 Topics (5) Real Estate  Activities to enhance the value of existing properties • In consideration of the future recovery in rent levels, enhance the value of existing properties through renovation. Yebisu Garden Place  Efforts to enhance the property’s value in view of its 20th

  9. Slide 9: First-Half 2014 Topics (6)

    First-Half 2014 Topics (6) Implementation Status of Strategic Investments (Including Ordinary Capex, on a cash basis) Credit Ratings <Capital expenditure and lease fees> <Credit rating by JCR> Consolidated total: Approx. ¥11.4 bn  Property, plant and equipment, intangible assets, lease fees,  As o

  10. Slide 10: 2. Revision of 2014 Full-Year Earnings Forecasts

    2. Revision of 2014 Full-Year Earnings Forecasts Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved. 10/23

  11. Slide 11: Revision of 2014 Full-Year Earnings Forecasts

    Revision of 2014 Full-Year Earnings Forecasts Consolidated net income target alone Comparison 2014 2014 has been revised 2013 revised initial YoY change with initial results (amount, %) targets  revision limited to recording of targets targets (amount, %) (billions of yen) 11.6 billion yen extraord

  12. Slide 12: Reference 1: Overview of First-Half 2014 Results

    Reference 1: Overview of First-Half 2014 Results Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved. 12/23

  13. Slide 13: Overview of First-Half 2014 Results

    Overview of First-Half 2014 Results YoY changes 2013 2Q 2014 2Q  Net sales: up YoY (billions of yen) (amount, %) ・ Japanese Alcoholic Beverages: sales increased, Japanese Alcoholic 120.5 127.1 6.6 5.5% as sales volume of beer and beer-type beverages Beverages rose from the beginning of the year com

  14. Slide 14: Reference 2: Supplementary Information to First-Half 2014 Results (Business Summary)

    Reference 2: Supplementary Information to First-Half 2014 Results (Business Summary) For information on the profitability of each business, please see the Supplementary Information to our Earnings Report. Copyright, 2014 SAPPORO HOLDINGS LTD. All rights reserved. 14/23

  15. Slide 15: Japanese Alcoholic Beverages

    Japanese Alcoholic Beverages *Incl. liquor taxes (billions of yen) YoY change Results highlights 2013 2Q 2014 2Q Amount % Net sales increased year over year, as total sales volumes for beer and beer-type beverages rose 5% and sales of wine, western spirits and Net sales* 120.5 127.1 6.6 5.5% shochu

  16. Slide 16: International

    International (billions of yen) YoY change Results highlights 2013 2Q 2014 2Q Amount % Net sales slightly increased thanks to the impact of weaker yen, though they declined on a local currency basis due to intensifying Net sales 23.0 23.7 0.6 2.8% competition in Canada and the impact of the cold wav

  17. Slide 17: Food & Soft Drinks (1)

    Food & Soft Drinks (1) (billions of yen) YoY change Results highlights 2013 2Q 2014 2Q Amount % Net sales of the domestic food and soft drinks business and the overseas soft drinks business, which entered the second Net sales 60.7 62.7 2.0 3.3% year after the integration, increased year over year. O

  18. Slide 18: Food & Soft Drinks (2)

    Food & Soft Drinks (2) Key points in business plan: implementation status ■ Soft Drinks (International): ■ Restaurants (Domestic): POKKA CREATE Co., Ltd. POKKA Corporation (Singapore) Pte Ltd  Boost production capacity by bringing the new plant in Malaysia on  Further improve FC support system lin

  19. Slide 19: Restaurants

    Restaurants (billions of yen) Results highlights Net sales declined, although comparable-store sales showed signs YoY change of recovery at 100.1% in the six months through June. This is mainly attributable to the fact that key restaurants in Ginza and Shinbashi 2013 2Q 2014 2Q Amount % suspended op

  20. Slide 20: Real Estate

    Real Estate (billions of yen) Results highlights YoY change  The majority of operating income from the Real Estate business is from real estate leasing. – The property portfolio largely comprises the following properties in Tokyo (5 central 2013 2Q 2014 2Q Amount % wards). Occupancy rates are avera

  21. Slide 21: Reference 3: Sapporo Group's Medium-Term Management Plan 2014-2016

    Reference 3: Sapporo Group’s Medium-Term Management Plan 2014-2016 *2014 targets have been revised among the figures announced on February 12, 2014. (Revision of 2014 targets: only net income and figures that are affected by the change to net income) Copyright, 2013 SAPPORO HOLDINGS LTD. All rights

  22. Slide 22: 2014-2016 Targets Based on Current Businesses

    2014-2016 Targets Based on Current Businesses With revised 2014 targets Medium-Term Management Plan 2014 targets 2016 New 2006 results 2013 results 2015 targets 2016 targets Management (revised) Framework Consolidated net sales ¥435.0 bn ¥509.8 bn ¥537.7 bn ¥563.0 bn ¥595.0 bn ¥600.0 bn *incl. liquo

  23. Slide 23: 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. 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

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