Sapporo Holdings Limited · TSE:2501

Sapporo — Q1 2019 Earnings Presentation

36 slides from Sapporo's earnings presentation, May 9, 2019

  1. Slide 1: Sapporo Group Business Results Presentation for the Three Months Ended March 31, 2019

    Sapporo Group Business Results Presentation for the Three Months Ended March 31, 2019 May 9, 2019 URL ttps://www.sapporoholdings.jp/english Copyright, 2019 SAPPORO HOLDINGS LTD. All rights reserved. 1/36

  2. Slide 2: First-Quarter 2019 Highlight

    First-Quarter 2019 Highlight Although revenue from Japanese alcoholic beverages and soft drinks declined, profits increased thanks to cost control and sale of investment property (billions of yen) YoY change YoY change YoY change Profit attributable to owners of Revenue Operating Profit parent 0 0 2

  3. Slide 3: First-Quarter 2019 Highlight

    First-Quarter 2019 Highlight (billions of yen) Balance of Net debt Equity Cash basis investment End of 2018 End of 2018 2019 plan 2019 1Q 2019 1Q YoY change D/E ratio (Net) times -0.1 times Transformation of the Group Group Topics management platform  Demonstrated improvement of sleep quality with

  4. Slide 4: Revenue by Segment

    Revenue by Segment 2019 (billions of yen) 2018 2019 YoY changes YoY changes １Q １Q (amount) (%) Revenue by Segment 111.3 (2.3)% Alcoholic Beverages 67.7 （3.9)% Japan & Asia 51.1 (2.4) (4.7)% North America 10.5 (0.2) (1.7)% Restaurants 6.1 (0.0) (0.8)% Food & Soft Drinks 36.3 0.1% Japan & Asia 29.3 (0

  5. Slide 5: Main Factors Contributing to Changes in Revenue

    Main Factors Contributing to Changes in Revenue Revenue declined due to decreased sales volumes in food and soft drinks in Japan and happoshu/new genre = Increase (billions of yen) = Decrease Alcoholic Beverages Food & Soft Drinks Real Estate 2018 1Q 2019 Including 1Q foreign exchange +0.1 Including

  6. Slide 6: Operating Profit by Segment

    Operating Profit byOperating Segment Profit by Segment 2019 (billions of yen) 2018 2019 YoY changes YoY changes 1Q 1Q (amount) (%) Operating Profit by Segment (5.5) - Alcoholic Beverages (3.9) - Japan & Asia (3.0) 0.7 - North America (0.2) (0.2) - Restaurants (0.5) 0.2 - Food & Soft Drinks (1.2) - J

  7. Slide 7: Main Factors Contributing to Changes in Operating Profit

    Main Factors Contributing to Changes in Operating Profit Profit increased, as improvement in product mix of alcoholic beverages, control of sales promotion costs, and gain on sale from real estate securitization offset the profit decline at the Food & Soft Drinks Business. (billions of yen) Alcoholi

  8. Slide 8: Alcoholic Beverages

    Alcoholic Beverages Situation in 1Q Future initiatives, etc. Positive (1) Shift to more proactive sales promotion of Black Label from April 1, following relaunch. Introduced the limited version of Yebisu beer (Fukkoku Tokusei Yesbisu) to capture demand from (1) Continued to strengthen beer in Japan

  9. Slide 9: Food & Soft Drinks

    Food & Soft Drinks Situation in 1Q Future initiatives, etc. Positive (1) We will continue with aggressive sales of products including commercial-use products and strive to expand the market. (1) Lemon-based food products continue to be strong (up 19%) (2) Plan to introduce new soymilk yogurt product

  10. Slide 10: Real Estate

    Real Estate Situation in 1Q Future initiatives, etc. Positive (1) Aim for stable growth through measures to increase value and regular maintenance and repair (1) The mainstay properties maintained high occupancy rates (2) Continue to promote urban development through strategic reshuffling of propert

  11. Slide 11: Special factors in the business results

    Special factors in the business results Impact of exchange rates on operating profit is minimal <Special factors in business results (YoY)> Impact on Impact on -: negligible impact Business segment Details revenue operating profit Income Food & Soft Yasuma Co., Ltd. statement to be 〃 Drinks Consolid

  12. Slide 12: Changes in Balance sheets: Total assets

    Changes in Balance sheets Total assets decreased ¥14.2 billion from year end Total assets (billions of yen) Total assets Cash and cash equivalents 10.0 Trade receivables 12.3 Current assets →Seasonal factor 93.3 72.2 YoY change -12.2 Inventories 37.1 42.5 13.1 14.4 Other current assets 164.7 165.4 F

  13. Slide 13: Changes in Balance sheets: Liabilities and equity

    Changes in Balance sheets Total liabilities declined ¥15.7 billion from year end, total equity increased ¥1.6 billion Trade payables Total liabilities and (billions of yen) equity Total liabilities and equity Short-term financial liabilities 35.3 34.5 73.9 Current liabilities Other current liabiliti

  14. Slide 14: Financial Status

    Financial Status Investment on a cash basis was ¥7.8 billion ①<Capital expenditure> about ¥ billion in consolidated total (billions of yen) <Changes in amount of investment (cash basis)> (Property, plant and equipment/intangible assets) <Major items> 60 ・“Alcoholic Beverages,” “Food,” and “Soft Drin

  15. Slide 15: Demonstration of improvement in sleep quality with SBL88 lactic acid bacteria

    Transformation of the Group management platform R&D Demonstration of improvement in sleep quality with SBL88 lactic acid bacteria In clinical trials, we were able to confirm improved sleep quality as an additional health function of our proprietary functional food ingredient SBL88 lactic acid bacter

  16. Slide 16: Appendix

    Appendix Copyright, 2019 SAPPORO HOLDINGS LTD. All rights reserved. 16/36

  17. Slide 17: 2018 1Q Conversion Table of Revenue, Operating Profit by Segment

    Appendix: 2018 1Q ( Previous yearʼs result ) Conversion Table of Revenue, Operating Profit by Segment Former segments New segments *( ) denotes new segment (5 business domain (3 business domain Difference Remarks structure) structure) Revenue (billions of yen) 111.3 - Japanese Alcoholic Beverage (Al

  18. Slide 18: Appendix: Major sales & sale volume

    Appendix：Major sales & sale volume Copyright, 2019 SAPPORO HOLDINGS LTD. All rights reserved. 18/36

  19. Slide 19: Alcoholic Beverages (Japan)

    Appendix：Alcoholic Beverages (Japan) ＜Y-o-y change in sales volume of 【Beer】（Sales volume） 3 core brands> %  Jan-Mar down ％ y-o-y 110 100  Black Label brand total down ％ y-o-y （Sales of the canned version: up ％ y-o-y ） 90 80  Yebisu brand total down ％ y-o-y 70 Jan Feb Mar 【Happoshu and new genre】

  20. Slide 20: Alcoholic Beverages (Japan)

    Appendix：Alcoholic Beverages (Japan) ＜3 core brand Jan- Mar Sales volume change＞ ＜Beer lineup ( Jan- Mar break down)＞ 400 350 13% 300 25% 250 200 150 100 62% 50 0 Black label Yebisu Other 2013 2014 2015 2016 2017 2018 2019 Black label brand total Yebisu brand total Mugi to Hop brand total Copyright,

  21. Slide 21: Alcoholic Beverages (Japan)

    Appendix：Alcoholic Beverages (Japan) ＜Jan- Mar Sales revenue＞ ※incl. liquor tax ＜Jan- Mar sales breakdown by category＞ 60.0 (Billions of yen) 9% 50.0 4% 40.0 19.3 8% Beer 13.9 12.7 11.7 13.8 14.4 9.7 Happoshu & New genre 30.0 Wine & Spirits 20.0 Japanese liquor 28.2 29.9 27.8 29.3 31.1 30.9 30.3 19%

  22. Slide 22: Alcoholic Beverages (Japan)

    Appendix：Alcoholic Beverages (Japan) ＜Jan- Mar Sales revenue＞ (Billions of yen) 3.5 4.5 4.0 3 3.5 2.5 3.0 1.7 2 1.6 1.7 2.5 1.5 1.6 1.6 1.5 1.6 2.0 4.0 1.5 1 1.0 1.4 1.5 1.9 0.5 1.1 1.2 1.1 1.1 1.1 0.9 0.5 0.5 0.9 0.9 1.0 0 0.0 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2019 Ja

  23. Slide 23: Major New Alcoholic Beverages (Japan)

    Appendix：Major New Alcoholic Beverages (Japan) Product Launches in Jan, Feb, and Mar *incl. improved products (*1) YEBISU Premium Ale RTD Sapporo Chu-Hi 99.99〈Four nine〉 Left：Lime Sapporo Draft Beer Black Label(*1） Mugi to Hop Honjuku Right：Citrus RTD Rirakusu(*1） Sapporo Magnum Import wine Beringer

  24. Slide 24: Alcoholic Beverages (Japan): Black Label campaign award

    Appendix：Alcoholic Beverages (Japan) A Black Label campaign involving gifting consumers with beer glasses that they could select from a range of 41 different designs won an award at the Japan Promotion Planning Contest* The award was given in recognition of the fact that the project was befitting of

  25. Slide 25: Sapporo Chu-hi 99.99 won Hit Food Product Award

    Appendix：Alcoholic Beverages (Japan) Sapporo Chu-hi 99.99 won the Superior Hit Product Award in the alcoholic beverage division of the Hit Food Product Awards -Rated highly by retail chain operators and wholesalers. Won the award for the second year running- The product received the excellence award

  26. Slide 26: Alcoholic Beverages (Overseas)

    Appendix：Alcoholic Beverages (Overseas) 【Overseas brand】 （Products of Sleeman and Anchor) ＜Trend of overseas sales volume ( Jan- Mar)＞ （10,000 cases）  Jan-Mar down ％ y-o-y *sales volume 350 【Sapporo brand】 300  Jan- Mar down ％ y-o-y *sales volume 250 【Vietnam】 200  Jan- Mar up ％（including export）

  27. Slide 27: Alcoholic Beverages (Overseas)

    Appendix：Alcoholic Beverages (Overseas) ＜Sleeman：Sales revenue in local currency (Jan- Mar）＞ ＜Sapporo U.S.A.& Anchor：Sales revenue in local currency (Jan- Mar）＞ *before elimination of inter- company transactions *before elimination of inter- company transactions 120 25 J GAAP IFRS （Excluded liquor （

  28. Slide 28: Alcoholic Beverages (Restaurants)

    Appendix：Alcoholic Beverages (Restaurants) ＜Trend of Sales revenue and number of Sapporo Lion outlets> (Billions of yen) ＜Sapporo Lion outlets > As of Mar 31, 2019 ※before rebate deduction 8.0 220 7.0 200 6.0 5.0 186 188 179 180 7 10 Tokyo 174 4.0 170 170 162 160 14 Metroporitan 3.0 4 Kanto (excl. T

  29. Slide 29: Food & Soft Drinks

    Appendix：Food & Soft Drinks ＜Japanese soft drinks POKKA SAPPORO Food & Beverage Sales composition by sales channel (Jan- Mar)＞ 【Lemon based-drinks】 【Lemon-based food products】  Jan-Mar down ％ y-o-y  Jan-Mar up ％ y-o-y 46% （Sales volume) （Sales volume) 8.19million Vending machines Retailer cases 【U

  30. Slide 30: Food & Soft Drinks

    Appendix：Food & Soft Drinks ＜ Food & Soft Drinks segment 【Pokka Create Co., Ltd.】 Revenue break down by geographic area>  Jan- Mar Sales revenue billion unchanged y-o-y 82% ＜Number of outlets as of Mar. 31, 2019:197＞ 18% 110 53 197 East Japan Central Japan Japan Overseas outlets West Japan ＜ Japane

  31. Slide 31: Major New Food & Soft Drinks (Japan)

    Appendix: Major New Food & Soft Drinks (Japan) Product Launches in Jan, Feb, and Mar *incl. improved products (*1) Ingredients and tea leaves Process from various parts of Japan Strong emphasis on manufacturing The products use rare ingredients processes and craftsmanship and local specialty product

  32. Slide 32: Major New Food & Soft Drinks (Japan)

    Appendix：Major New Food & Soft Drinks (Japan) Product Launches in Jan, Feb, and Mar Soups Jikkurikotokoto series Lemon-based food products Risorante Soups Copyright, 2019 SAPPORO HOLDINGS LTD. All rights reserved. 32/36

  33. Slide 33: Food & Soft Drinks (Japan): Soymilk yogurt production line

    Appendix: Food & Soft Drinks (Japan) Completion of soymilk yogurt production line and launch of operations -Moving on to the next stage by creating new demand and engaging in aggressive business expansion- Until now, we have been producing soymilk yogurt at an outsourced plant, but we will be beginn

  34. Slide 34: Real Estate

    Appendix：Real Estate ＜ Information about ＜ Major rental properties & occupancy rates：（Averages for 2019 1Q )>＞ Investment property ＞ (billions of yen) Site area Floor area Occupancy 500.0 （㎡） （㎡） rate No. of floors 400.0 （%） 300.0 40 floors above 200.0 397.6 386.0 Yebisu Garden Place（1） 56,943 298,0

  35. Slide 35: Real Estate: EBISU UPDATE PROJECT

    Appendix: Real Estate Digital Urban Development “EBISU UPDATE PROJECT” launched -Creating the “Ebisu of the Future” online- With the “EBISU UPDATE PROJECT” we will design an “Ebisu of the Future” in digital space based on the image of the present- day Ebisu area with its worldview and lifestyles ass

  36. Slide 36: 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. Copyright, 2019 SAPPORO HOLDINGS LTD. All rights reserved. 36/36

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