1Q Financial Results - Consolidated (Based on IFRS)

*This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

May 13, 2025

1. Consolidated Financial Results for the three months Ended March 31, 2025 (January 1 - March 31, 2025)

   (Amounts in million yen rounded to the nearest million yen)

   1. Operating Results

      (Percentage figures represent year-over-year changes)

      	Revenue		Core Operating profit		Operating profit		Profit
      	million yen	%	million yen	%	million yen	%	million yen	%
      Three months ended March 31, 2025	118,678	5.2	(865)	-	(2,227)	-	(4,215)	-
      Three months ended March 31, 2024	112,761	3.7	(3,795)	-	(1,936)	-	(1,970)	-

      	Profit attributable to owners of parent		Total comprehensive income		Basic earnings per share	Diluted earnings per share
      	million yen	%	million yen	%	Yen	Yen
      Three months ended March 31, 2025	(4,222)	-	(7,839)	-	(54.18)	(54.18)
      Three months ended March 31, 2024	(1,977)	-	8,597	-	(25.38)	(25.38)

      Note: Profit before tax

      Three months ended March 31, 2025 (3,899) million yen

      Three months ended March 31, 2024 (1,507) million yen

      *Core operating profit is a proprietary profit indicator that measures the performance consistency of our business. Core operating profit is calculated as Revenue - Cost of sales - SG&A expenses.

   2. Financial Position

   	Total assets	Total equity	Equity attributable to owners of parent	Ratio of equity attributable to owners of parent to total assets
   	million yen	million yen	million yen	%
   Three months ended March 31, 2025	634,247	185,267	184,189	29.0
   Year ended December 31, 2024	664,963	197,157	196,030	29.5

2. Dividends

   	Dividend per share
   Record date or period	End Q1	End Q2	End Q3	Year-end	Full year
   	yen	yen	yen	yen	yen
   Year ended December 31, 2024	-	0.00	-	52.00	52.00
   Year ended December 31, 2025	-
   Year ending December 31, 2025 (forecast)		0.00	-	60.00	60.00

   Note: Changes to the latest dividend forecast announced: None

3. Forecast of Consolidated Earnings for the Year Ending December 31, 2025 (January 1 - December 31, 2025)

   (Percentage figures represent year-over-year changes)

   	Revenue		Core operating profit		Operating profit		Profit		Profit attributable to owners of parent		Basic earnings per share
   	million yen	%	million yen	%	million yen	%	million yen	%	million yen	%	yen
   Year ending December 31, 2025	532,000	0.2	24,500	11.2	20,000	92.0	11,030	41.9	11,000	42.6	141.16

   Note: Changes to the latest consolidated results forecast announced: None

   *Earnings forecasts for the six months ending June 30, 2025 are omitted because the company manages performance targets on a yearly basis.

4. Other

1. Significant changes in the scope of consolidation during the period: Yes Newly included: None

   Excluded: 1 (Sapporo Group Management Ltd.)

2. Changes in accounting policy, changes in accounting estimates, and retrospective restatement

   1. Changes in accounting policies required by IFRS: None

   2. Changes other than 1) above: None

   3. Changes in accounting estimates: None

3. Number of shares issued and outstanding (common stock)

   1. Number of shares issued at end of period (treasury stock included): March 31, 2025: 78,794,298 shares

      December 31, 2024: 78,794,298 shares

   2. Number of shares held in treasury at end of period: March 31, 2025: 871,324 shares

      December 31, 2024: 870,978 shares

   3. Average number of outstanding shares during the period: March 31, 2025: 77,923,123 shares

March 31, 2024: 77,898,566 shares

The year-end financial results are outside the scope of audit procedures based on the Financial Instruments and Exchange Act.

This document contains projections and other forward-looking statements based on information available to the Company as of the date of this document. Actual results may differ from those expressed or implied by forward-looking statements due to various factors. For the assumptions underlying the forecasts herein and other information on the use of earnings forecasts, refer to "1. Analysis of Operating Results and Financial Condition (4) Consolidated Earnings Forecast" on page 8.

The Group's operating results are affected by substantial seasonal variations in demand in the Alcoholic Beverages and Food & Soft Drinks businesses. Revenues consequently tend to be lower in the first quarter than in the other three quarters.

1. Operating Results
   1. Review of the fiscal three months Ended March 31, 2025

      In this quarterly consolidated accounting period (January 1 - March 31, 2025), the uncertain

      outlook continues, driven by concerns over the impact of persistent geopolitical risks, inflation from surging prices of raw materials and energy, and the potential effects of U.S. tariff policies on the global economy.

      Under these circumstances, the Sapporo Group continued to implement structural reforms and accelerate growth with the aim of strengthening profitability in the third year of our "Medium-Term Management Plan (2023-2026)," and has delivered steady results.

      Despite a decline in sales volume of overseas brand beers and Sapporo brand beers in North America, consolidated revenue increased year-on-year thanks to continued strong beer sales in the Japan market and last-minute demand ahead of price revisions.

      Consolidated core operating profit increased year-on-year due to the effects of increased revenue in the Alcoholic Beverages segments and a reactionary decline in IT investment compared to the previous year.

      Consolidated operating profit decreased from the same period of the previous year, despite an increase in consolidated core operating profit. This was mainly due to the recognition of impairment losses following the conclusion of agreements to transfer shares in Shinsyu-ichi Miso Co., Ltd. and receivables from the company in the Food & Soft Drinks business, as well as the absence of gains recorded in the previous year from the reversal of impairment losses on fixed assets and the sale of land.

      Quarterly profit attributable to owners of parent decreased year-on-year due to a decline in consolidated operating profit, as well as a shift from foreign exchange gains in the previous year to foreign exchange losses caused by fluctuations in exchange rates.

      Summary in key figures

      Millions of yen, except percentages

      	Revenue	Core operating profit	Operating profit	Profit attributable to owners of parent
      Three months Ended March 31, 2025	118,678	(865)	(2,227)	(4,222)
      Three months Ended March 31, 2024	112,761	(3,795)	(1,936)	(1,977)
      Change (%)	5.2	-	-	-

      *Core operating profit is a proprietary profit indicator that measures the performance consistency of our business. Core operating profit is calculated as Revenue - Cost of sales - SG&A expenses.

      Results by segment are outlined below.

      Alcoholic Beverages

      Despite a decline in sales volume of overseas brand beers and Sapporo brand beers in North America, revenue increased year-on-year thanks to continued strong beer sales in the Japan market and last-minute demand ahead of price revisions.

      Core operating profit increased year-on-year mainly due to the increase in revenue in the Japan Alcoholic Beverages business.

      Operating profit increased year-on-year due to an increase in core operating profit, as well as gains from the sale of the Nasu Plant and other assets.

      • Revenue: ¥88.0 billion (up ¥7.4 billion, or 9.1% year-on-year)

      • Core operating profit: ¥1.4 billion (compared with a loss of ¥0.2 billion a year earlier)

      • Operating profit: ¥2.6 billion (compared with a loss of ¥0.3 billion a year earlier)

        Details of Alcoholic Beverages (Japan and Overseas) and Restaurants in the Alcoholic Beverages segment were as follows.

        Japan

        Both the on-trade and off-trade products markets were strong, due in part to last-minute demand before various companies revised their prices. Total domestic demand for beer-type beverages (beer, happoshu (including happoshu (2)) was estimated to have been about 113% year-on-year. Total domestic demand for beer was estimated to be at roughly 115% year-on-year.

        In this fiscal year, we are focusing more on strengthening beer and RTD*, taking into account the alcohol tax revision in October 2026.

        In this context, the Sapporo Draft Beer Black Label canned products continued to perform strongly with sales volume at 133% year-on-year, and that of Yebisu Beer cans was 129% year-on-year, resulting in a 115% year-on-year increase in the Group's total domestic sales volume of beer-type beverages. In addition, sales of canned RTDs grew 150% year-on-year.

        *: RTD, or ready-to-drink beverages, are pre-mixed, low-alcohol cocktail-like beverages that can be consumed as is immediately after opening.

        Overseas

        In Canada, total demand for beer remains weak and is expected to decrease year-on-year. Likewise, a year-on-year decrease in total demand for beer in the US is also expected. In particular, the craft beer market continues to slow, remaining below previous year's level. As a result, the sales volume of overseas beer brands fell year-on-year.

        Sales volume of Sapporo brand beer in North America was 96% year-on-year. While the market slowdown had some impact, the main factor behind the decline was a temporary reactionary drop following strong shipments in the U.S. at the end of last year. Sales at retail stores have continued to show steady growth.

        Given the ongoing uncertainty, we will closely monitor changes in consumer sentiment and respond appropriately.

        Restaurants

        Restaurant demand remained steady as the recovery in foot traffic and consumer spending on in-person services continued gradually with the normalization of socio-economic activities.

        Amid this environment, the Sapporo Group's Restaurants business recorded a 103% year-on-year increase in existing store sales thanks to efforts to attract inbound tourists and senior customers, as well as menu and price revisions.

        Food & Soft Drinks

        Revenue declined year-on-year due to the effects of structural reforms such as business transfers in the Japan market through last year, as well as a temporary suspension of operations at the Malaysia factory, which handles part of the production of overseas soft drink products.

        Core operating profit increased compared to the same period of the previous fiscal year despite the impact of rising raw material costs, supported by the positive effects of cost structure reforms.

        Operating profit decreased from the same period of the previous year due to the recognition of impairment losses following the conclusion of agreements to transfer shares in Shinsyu-ichi Miso Co., Ltd. and receivables from the company, as well as the absence of gains recorded in the previous year from the reversal of impairment losses on fixed assets and the sale of land.

      • Revenue: ¥24.4 billion (down ¥2.2 billion, or 8.4% year-on-year)

      • Core operating profit: ¥(0.4) billion (compared with a loss of ¥0.6 billion a year earlier)

      • Operating profit: ¥(2.9) billion (compared with a profit of ¥1.5 billion a year earlier)

        Details of Food & Soft Drinks (Japan) and Overseas Soft Drinks in the Food & Soft Drinks segment were as follows.

        Food & Soft Drinks (Japan)

        Total demand for soft drinks in Japan was estimated to be 97% year-on-year. Meanwhile, the sales amount of the Group's domestic soft drinks was 98% year-on-year due to product lineup changes and other factors, despite Kireto Lemon, the main brand in the lemon business, performing strongly at 122% year-on-year.

        In addition, three bottled products of Pokka Lemon 100 (120ml, 300ml, and 450ml), our main brand product, were renewed and launched as food products with a functional claim to "lower elevated blood pressure (systolic blood pressure)," and the brand has had strong sales at 114% of the previous year's level.

        Overseas Soft Drinks

        At the Malaysia factory, which handles the production of some overseas beverage products, operations were temporarily halted from early March due to packaging issues, resulting in shipping disruptions to various regions.

        Amid these conditions, sales in Singapore amounted to 79% year-on-year (in local currency terms), affected in part by a market environment where diversifying consumer preferences are driving down demand in existing markets.

        In Malaysia, a priority market, efforts were made to expand sales through a new distributor network; however, sales remained at 87% year-on-year (in local currency terms).

        Excluding the above, exports to the Middle East resumed in August 2024, bringing sales in the export business to 119% year-on-year (in local currency terms).

        Real Estate

        In the office leasing market in the Greater Tokyo area, both occupancy rates and average rent levels have been steadily trending upward. Notably, within the five central wards, Shibuya Ward has a relatively low office vacancy rate compared to other wards, which has led to an upward trend in rents. In this context, revenue increased year-on-year due to improved office occupancy at Yebisu Garden Place, increased demand for outdoor brand products at Sapporo Factory due to continued inbound

        demand, and an increase in rental income from properties acquired last year.

        Core operating profit and operating profit increased year-on-year due to the positive impact of increased revenue, despite the increase in administrative expenses from surging personnel costs.

        • Revenue: ¥6.3 billion (up ¥0.8 billion, or 15.2% year-on-year)

        • Core operating profit: ¥0.3 billion (compared with a loss of ¥0.2 billion a year earlier)

        • Operating profit: ¥0.2 billion(compared with a loss of ¥0.3 billion a year earlier)

2. Consolidated Financial Condition

   As of the end of this Q1 consolidated accounting period, the following were the operative factors in the condition of assets, liabilities and equity.

   (Millions of yen)
   	As of December 31, 2024	As of March 31, 2025	Change
   Current assets	193,918	170,410	(23,508)
   Non-current assets	471,045	463,837	(7,208)
   Total assets	664,963	634,247	(30,716)
   Current Liabilities	207,007	201,656	(5,350)
   Non-current liabilities	260,799	247,323	(13,475)
   Total liabilities	467,805	448,980	(18,826)
   Total equity	197,157	185,267	(11,890)
   Total liabilities and equity	664,963	634,247	(30,716)

   In end-Q1, assets decreased by ¥30.7 billion from the end of the previous consolidated fiscal year, falling to ¥634.2 billion, due to reductions in trade and other receivables from seasonal factors and a decrease in property, plant and equipment from foreign-exchange effects.

   Total liabilities came to ¥449.0 billion, which was a decrease of ¥18.8 billion as compared to the end of the previous fiscal year, as increases in current bonds and borrowings were offset by decreases in other current liabilities due to seasonal reasons and non-current bonds and borrowings

   On the same comparative basis, total equity decreased by ¥11.9 billion to ¥185.3 billion. primarily due to the recording of a quarterly loss, a decrease in retained earnings from year-end dividends, and a decrease in other components of equity from exchange differences on translation of foreign

   operations.

3. Consolidated Cash Flows

   At the end-Q1, cash and cash equivalents (collectively "cash") declined by ¥1.7 billion (7%) to ¥22.4 billion, relative to the previous consolidated fiscal year-end.

   The components of Q1's cash flow categories were as follows.

   (Millions of yen)
   Category	As of March 31, 2024	As of March 31, 2025	Change
   Cash flows from operating activities	1,658	5,273	3,614
   Cash flows from investing activities	(10,778)	(3,340)	7,437
   Free cash flow	(9,119)	1,932	11,051
   Cash flows from financial activities	8,486	(2,359)	(10,845)
   Effect of exchange rate change on cash and cash equivalents	724	(1,230)	(1,955)
   Net increase (decrease) in cash and cash equivalents	91	(1,657)	(1,748)
   Cash and cash equivalents at beginning of period	17,204	24,140	6,936
   Cash and cash equivalents included in assets of disposal groups classified as holdings for sale	(114)	(63)	51
   Cash and cash equivalents at end of period	17,180	22,420	5,240

   (Cash Flows from Operating Activities)

   Cash provided by operating activities amounted to ¥5.3 billion (compared to ¥1.7 billion provided in the previous period). This was primarily due to decreases in accrued alcohol tax of ¥11.6 billion, payments of income taxes amounting to ¥7.0 billion, and a loss before tax of ¥3.9 billion, offset by decreases in trade and other receivables of ¥21.0 billion and increases in depreciation and amortization expenses of ¥5.7 billion.

   (Cash Flows from Investing Activities)

   Cash used in investing activities was ¥3.3 billion (compared to ¥10.8 billion used in the previous period). This was mainly attributable to cash inflows of ¥1.6 billion from the sale of property, plant and equipment and ¥0.8 billion from refund in capital of subsidiaries and associates, which were offset by cash outflows of ¥3.3 billion for the purchase of property, plant and equipment, ¥1.5 billion for the purchase of investment properties, and ¥0.8 billion for the purchase of investment securities.

   (Cash Flows from Financing Activities)

   Cash used in financing activities was ¥2.4 billion (compared to ¥8.5 billion provided in the previous period). This was mainly due to an increase of ¥4.1 billion in short-term borrowings and an increase of ¥1.0 billion in commercial paper, offset by dividend payments amounting to ¥3.9 billion and cash outflows of ¥3.5 billion for the repayment of long-term borrowings.

4. Consolidated Earnings Forecast

The consolidated earnings forecast for the full fiscal year to December 31, 2025, is unchanged from the forecast announced by the Company on February 14, 2025.

1. Consolidated Statement of Financial Position

   			(Millions of yen)
   As of December 31, 2024			As of March 31, 2025
   Assets
   Current assets
   Cash and cash equivalents	24,140		22,420
   Trade and other receivables	99,458		77,120
   Inventories	58,148		58,737
   Other financial assets	6,178		4,834
   Other current assets	5,340		5,203
   Subtotal	193,265		168,314
   Assets held for sale	653		2,096
   Total current assets	193,918		170,410
   Non-current assets
   Property, plant and equipment	157,799		152,718
   Investment property	209,176		209,196
   Goodwill	22,362		22,020
   Intangible assets	6,279		5,920
   Investments accounted for using equity method	1,323		518
   Other financial assets	67,528		67,110
   Retirement benefit asset	409		-
   Other non-current assets	3,403		3,302
   Deferred tax assets	2,766		3,053
   Total non-current assets	471,045		463,837
   Total assets	664,963		634,247

   			(Millions of yen)
   As of December 31, 2024			As of March 31, 2025
   Liabilities and equity
   Liabilities
   Current liabilities
   Trade and other payables	38,027		33,941
   Bonds and borrowings	56,996		70,844
   Lease liabilities	3,741		3,790
   Income taxes payable	7,485		895
   Other financial liabilities	32,060		35,585
   Provisions	8,272		9,819
   Other current liabilities	60,426		45,448
   Subtotal	207,007 -		200,321 1,335
   Liabilities directly associated with assets held for sale
   Total current liabilities	207,007		201,656
   Non-current liabilities
   Bonds and borrowings	148,117		136,641
   Lease liabilities	27,730		27,065
   Other financial liabilities	60,987		60,777
   Retirement benefit liability	3,297		3,457
   Provisions	2,146		2,080
   Other non-current liabilities	936		869
   Deferred tax liabilities	17,585		16,434
   Total non-current liabilities	260,799		247,323
   Total liabilities	467,805		448,980
   Equity
   Share capital	53,887		53,887
   Capital surplus	40,832		40,848
   Treasury shares	(1,722)		(1,725)
   Retained earnings	65,268		56,592
   Other components of equity	37,766		34,587
   Total equity attributable to owners of parent	196,030		184,189
   Non-controlling interests	1,127		1,079
   Total equity	197,157		185,267
   Total liabilities and equity	664,963		634,247

2. Consolidated Statement of Profit or Loss

   		(Millions of yen)
   Three months ended March 31, 2024		Three months ended March 31, 2025
   Revenue	112,761	118,678
   Cost of sales	81,193	84,127
   Gross profit	31,568	34,552
   Selling, general and administrative expenses	35,363	35,417
   Other operating income	2,290	1,365
   Other operating expenses	432	2,727
   Operating profit	(1,936)	(2,227)
   Finance income	1,033	126
   Finance costs	619	1,814
   Share of profit of investments accounted for using equity method	16	16
   Profit before tax	(1,507)	(3,899)
   Income tax expense	463	315
   Profit	(1,970)	(4,215)
   Profit attributable to
   Owners of parent	(1,977)	(4,222)
   Non-controlling interests	7	8
   Profit	(1,970)	(4,215)
   Basic earnings per share	(25.38)	(54.18)
   Diluted earnings per share	(25.38)	(54.18)

3. Consolidated Statement of Comprehensive Income

   			(Millions of yen)
   Three months ended March 31, 2024			Three months ended March 31, 2025
   Profit (loss)	(1,970)		(4,215)
   Other comprehensive income
   Items that will not be reclassified to profit or loss
   Net change in fair value of equity instruments designated as measured at fair value through other comprehensive income	5,996		(345)
   Remeasurements of defined benefit plans	1,727		(598)
   Total of items that will not be reclassified to profit or loss	7,723		(943)
   Items that may be reclassified to profit or loss
   Exchange differences on translation of foreign operations	2,847		(2,677)
   Effective portion of cash flow hedges	(3)		(5)
   Total of items that may be reclassified to profit or loss	2,844		(2,681)
   Total other comprehensive income, net of tax	10,567		(3,624)
   Comprehensive income	8,597		(7,839)
   Comprehensive income attributable to
   Owners of parent	8,555		(7,790)
   Non-controlling interests	42		(48)
   Comprehensive income	8,597		(7,839)

4. Consolidated Statement of Changes in Equity

   (Millions of yen)

   	Share capital	Capital surplus	Treasury shares	Retained earnings	Other components of equity
   					Exchange differences on translation of foreign operations	Effective portion of cash flow hedges	Financial assets measured at fair value through other comprehen sive income	Remeasur ements of defined benefit plans	Total other component s of equity
   Balance as of January 1, 2024	53,887	40,754	(1,783)	50,828	8,886	3	29,740	-	38,630
   Profit (loss)				(1,977)					-
   Other comprehensive income					2,812	(3)	5,996	1,727	10,533
   Comprehensive income	-	-	-	(1,977)	2,812	(3)	5,996	1,727	10,533
   Purchase of treasury shares			(3)						-
   Dividends				(3,667)					-
   Share-based payment transactions		2							-
   Transfer to retained earnings				4,117			(2,390)	(1,727)	(4,117)
   Total transactions with owners	-	2	(3)	450	-	-	(2,390)	(1,727)	(4,117)
   Balance as of March 31, 2024	53,887	40,756	(1,786)	49,300	11,699	-	33,346	-	45,045

   	Total equity attributable to owners of parent	Non-controlling interests	Total equity
   Balance as of January 1, 2024	182,315	933	183,248
   Loss	(1,977)	7	(1,970)
   Other comprehensive income	10,533	34	10,567
   Comprehensive income	8,555	42	8,597
   Purchase of treasury shares	(3)	-	(3)
   Dividends	(3,667)	-	(3,667)
   Share-based payment transactions	2	-	2
   Transfer to retained earnings	-	-	-
   Total transactions with owners	(3,668)	-	(3,668)
   Balance as of March 31, 2024	187,202	975	188,177

   (Millions of yen)

   	Share capital	Capital surplus	Treasury shares	Retained earnings	Other components of equity
   					Exchange differences on translation of foreign operations	Effective portion of cash flow hedges	Financial assets measured at fair value through other comprehen sive income	Remeasur ements of defined benefit plans	Total other components of equity
   Balance as of January 1, 2025	53,887	40,832	(1,722)	65,268	12,858	-	24,908	-	37,766
   Profit				(4,222)					-
   Other comprehensive income					(2,621)	(5)	(345)	(598)	(3,568)
   Comprehensive income	-	-	-	(4,222)	(2,621)	(5)	(345)	(598)	(3,568)
   Purchase of treasury shares			(3)						-
   Dividends				(4,064)					-
   Share-based payment transactions		16							-
   Transfer to retained earnings				(390)			(208)	598	390
   Total transactions with owners	-	16	(3)	(4,454)	-	-	(208)	598	390
   Balance as of March 31, 2025	53,887	40,848	(1,725)	56,592	10,237	(5)	24,355	-	34,587

   	Total equity attributable to owners of parent	Non-controlling interests	Total equity
   Balance as of January 1, 2025	196,030	1,127	197,157
   Profit	(4,222)	8	(4,215)
   Other comprehensive income	(3,568)	(56)	(3,624)
   Comprehensive income	(7,790)	(48)	(7,839)
   Purchase of treasury shares	(3)	-	(3)
   Dividends	(4,064)	-	(4,064)
   Share-based payment transactions	16	-	16
   Transfer to retained earnings	-	-	-
   Total transactions with owners	(4,051)	-	(4,051)
   Balance as of March 31, 2025	184,189	1,079	185,267

5. Consolidated Statement of Cash Flows

   		(Millions of yen)
   Three months ended March 31, 2024		Three months ended March 31, 2025
   Cash flows from operating activities
   Profit (loss) before tax	(1,507)	(3,899)
   Depreciation and amortization	5,218	5,744
   Impairment losses (reversal of impairment losses)	(1,721)	2,500
   Interest and dividend income	(85)	(124)
   Interest expenses	607	929
   Foreign exchange loss (gain)	(814)	878
   Share of loss (profit) of investments accounted for using equity method	(16)	(16)
   Loss (gain) on sale and retirement of property, plant and equipment, and intangible assets	(132)	(1,132)
   Decrease (increase) in trade and other receivables	20,595	20,980
   Decrease (increase) in inventories	(905)	(2,583)
   Increase (decrease) in trade and other payables	(3,705)	(3,049)
   Increase (decrease) in accrued alcohol tax	(6,833)	(11,645)
   Increase or decrease in retirement benefit asset or liability	(309)	(494)
   Other	(3,162)	4,993
   Subtotal	7,234	13,081
   Interest and dividends received	152	102
   Interest paid	(725)	(914)
   Income taxes refund (paid)	(5,002)	(6,996)
   Net cash provided by (used in) operating activities	1,658	5,273
   Cash flows from investing activities
   Purchase of property, plant and equipment	(5,032)	(3,256)
   Proceeds from sale of property, plant and equipment	1,942	1,555
   Purchase of investment property	(10,770)	(1,483)
   Purchase of intangible assets	(797)	(547)
   Purchase of investment securities	(773)	(801)
   Proceeds from sale of investment securities	4,146	344
   Incomes from refund in capital of subsidiaries and associates	-	810
   Proceeds from redemption of investment securities	623	263
   Payments for loans receivable	(25)	(42)
   Collection of loans receivable	12	1
   Other	(105)	(183)
   Net cash provided by (used in) investing activities	(10,778)	(3,340)

   		(Millions of yen)
   Three months ended March 31, 2024		Three months ended March 31, 2025
   Cash flows from financing activities
   Net increase (decrease) in short-term borrowings	3,500	4,067
   Net increase (decrease) in commercial papers	14,000	1,000
   Proceeds from long-term borrowings	69	1,000
   Repayments of long-term borrowings	(4,501)	(3,501)
   Dividends paid	(3,540)	(3,942)
   Repayments of lease liabilities	(1,039)	(981)
   Other	(3)	(3)
   Net cash provided by (used in) financing activities	8,486	(2,359)
   Effect of exchange rate changes on cash and cash equivalents	724	(1,230)
   Net increase (decrease) in cash and cash equivalents	91	(1,657)
   Cash and cash equivalents at beginning of period	17,204	24,140
   Cash and cash equivalents included in assets of disposal groups classified as held for sale	(114)	(63)
   Cash and cash equivalents at end of period	17,180	22,420

6. Notes to the Consolidated Financial Statements (Segment Information)

   1. Overview of reportable segment

      The Company's reportable segments are components of the Sapporo Group for which separate financial information is available. These segments are periodically reviewed by the Board of Directors to decide on the allocation of resources and assess performance.

      As a pure holding company, the Company oversees Group companies that independently formulate and execute business strategies for their products, services, and target market.

      The Group's businesses are segmented mainly by the products, services, and sales markets of its companies and their affiliates. The Company's three reportable segments are Alcoholic Beverages, Food & Soft Drinks, and Real Estate.

      The Alcoholic Beverages segment produces and sells alcoholic beverages and operates restaurants of various styles.

      The Food & Soft Drinks segment produces and sells foods and soft drinks.

      The Real Estate segment's activities include leasing and development of real estate.

   2. Revenue, profit (or loss)

Revenue and performance of the Group by reportable segment is as follows.

Three months ended March 31, 2024 (January 1 - March 31, 2024)

(Millions of yen)

(Note) Intersegment revenue is based on prevailing market prices.

Three months Ended March 31, 2025 (January 1 - March 31, 2025)

(Millions of yen)

(Note) Intersegment revenue is based on prevailing market prices.

The "Other" category comprises business segments that are not included in the reportable segments. Adjustment includes general corporate expenses and intercompany eliminations. General corporate expenses are general administrative expenses that do not belong to any reporting segment.

None