Consolidated Third Quarter Earnings Report ： Supplementary Information

Nine Months ended September 30, 2021

Consolidated Third Quarter Earnings Report - Supplementary Information

Consolidated Results (Nine Months ended September 30, 2021)

1. Consolidated Financial Highlights
2. Major Sales and Sales Volume Data
3. Condensed Consolidated Results Consolidated Statements of Income Consolidated Statements of Cash Flows
4. Consolidated Statements of Income : Breakdown of Key Changes
5. Segment information
6. Condensed Consolidated Balance Sheets

Consolidated Forecasts (Year ending December 31, 2021)

1. Full-YearConsolidated Business Results estimate
2. Full-YearConsolidated Statement of Income: Breakdown of Key Changes
3. Full-YearConsolidated Segment information

November 2021

Securities Code: 2501

URL https://www.sapporoholdings.jp/en/

1. Financial Highlights

Consolidated Financial Highlights	(billions of yen, except percentages, ratios, per-share data, and exchange rates)
		Nine Months ended	Nine Months ended
		September 30,	September 30,	Change	Change(%)
		2020	2021
Revenue		315.3	309.1	(6.3)	(2.0%)
（ref.）Excluding liquor tax	238.4	234.5	(3.9)	(1.7%)
Revenue growth rate		(12.7%)	(2.0%)	ー	ー
	（ref.）Excluding liquor tax	(12.6%)	(1.7%)	ー	ー
Overseas revenue		48.9	54.7	5.8	11.8%
Overseas revenue growth rate	(10.1%)	11.8%	ー	ー
Core operating profit（*1）		1.2	1.5	0.4	31.7%
Core operating margin		0.4%	0.5%	ー	ー
Operating profit		(2.0)	23.9	26.0	ー
Profit attributable to owners of parent	(0.9)	15.7	16.7	ー
Total assets		643.7	576.8	(66.9)	(10.4%)
Total equity		163.1	167.8	4.7	2.9%
Balance of debt :Net （*2）		213.4	184.8	(28.6)	(13.4%)
Debt-to-equity ratio (times) :Net（*3）	1.3	1.1	ー	ー
Depreciation and amortization		17.3	15.4	(1.9)	(10.8%)
EBITDA（*4）		18.4	16.9	(1.5)	(8.1%)
	US$	107.57	108.58	ー	ー
Exchange rates (Yen) （*9）
CAN$	79.48	86.82	ー	ー
	SG$	77.36	81.08	ー	ー
		Year ended	Year ending
		December 31, 2021	Change	Change(%)
		December 31, 2020
		(Forecast)
Revenue		434.7	447.2	12.5	2.9%
（ref.）Excluding liquor tax	328.6	337.3	8.7	2.7%
Revenue growth rate		(11.6%)	2.9%	ー	ー
（ref.）Excluding liquor tax	(11.5%)	2.7%	ー	ー
Overseas revenue		65.5	78.4	12.8	19.6%
Overseas revenue growth rate	(8.0%)	19.6%	ー	ー
Core operating profit（*1）		4.3	6.7	2.4	57.2%
Core operating margin		1.0%	1.5%	ー	ー
Operating profit		(15.9)	18.0	33.9	ー
Profit attributable to owners of parent	(16.1)	12.0	28.1	ー
Total assets		616.3
Total equity		149.6
Balance of debt :Net （*2）		221.5	199.9	(21.6)	(9.8%)
Debt-to-equity ratio (times) :Net（*3）	1.5	1.3	ー	ー
Depreciation and amortization		23.1	20.9	(2.2)	(9.5%)
EBITDA（*4）		27.4	27.6	0.2	0.7%
EBITDA interest-bearing debt ratio(times) （*5)	8.1	7.2	ー	ー
Capital expenditure	Cash basis	16.1	22.4	6.3	38.9%
ＲＯＥ（％） （*6)		(9.9%)	7.8%	ー	ー
ＥＰＳ（yen sen）（*7)		(206.31)	154.05	ー	ー
ＤＯＥ（％） （*8)		2.0%	2.1%	ー	ー
Payout ratio（％）		ー	27.3%	ー	ー
	US$	106.77	108.00	ー	ー
Exchange rates (Yen) （*9）
CAN$	79.66	87.00	ー	ー
	SG$	77.43	81.00	ー	ー

*1: Core operating profit is calculated as Revenue - Cost of sales - SG&A expenses.

*2: The balance of debt includes commercial paper but excludes the balance of lease obligations.

*3: Balance of debt:Net(excluding lease liabilities) ／Equity attributable to owners of parent

*4: EBITDA (IFRS)=Core operating profit + Depreciation and amortization

(excluding depreciation expense on leased assets which is charged on the rent of restaurants） *5: Balance of debt:Net (excluding lease liabilities)／EBITDA

*6: Profit attributable to owners of parent／Equity attributable to owners of parent

*7: Profit attributable to owners of parent／Average number of shares during the period

*8: Dividend／Equity attributable to owners of parent(Average)

*9: Revenues and expenses are translated into Japanese yen at the average exchange rate for the fiscal year.

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2. Major Sales and Sales Volume

Sales Volume:Beer (Japan)								(10,000 cases)
			Jan. 1 -	Jan. 1 -	YoY	YoY	Year ended	Full-year	YoY	YoY
			December 31,	estimate for
			Sep.30, 2020	Sep.30, 2021	Change	Change(%)	Change	Change(%)
			2020	fiscal 2021
		Sapporo Draft Beer Black Label (total)	ー	ー	ー	(11.1%)	1,335	1,313	(22)	(1.7%)
		YEBISU (total)	ー	ー	ー	(4.0%)	705	700	(5)	(0.7%)
	1 Beer (total)	ー	ー	ー	(4.7%)	2,473	2,495	22	0.9%
	2 Happoshu (total)	ー	ー	ー	(6.5%)	176	161	(15)	(8.5%)
	3 New genre beer products (total)	ー	ー	ー	(15.3%)	1,346	1,262	(84)	(6.2%)
	Beer, happoshu, and new genre （total 1+2+3）	ー	ー	ー	(8.8%)	3,995	3,918	(76)	(1.9%)
	RTD(*1)	597	930	333	55.7%	811	1,200	389	48.0%
	Non-alcoholic beer taste beverage	44	44	(0)	(0.5%)	57	54	(3)	(5.6%)
*1: RTD 1 case = 250 ml x 24 bottles
Sales Volume:Beer (International)								(10,000 cases)
			Jan. 1 -	Jan. 1 -	YoY	YoY	Year ended	Full-year	YoY	YoY
			December 31,	estimate for
			Sep.30, 2020	Sep.30, 2021	Change	Change(%)	Change	Change(%)
			2020	fiscal 2021
		Overseas brand (SLEEMAN, Anchor, etc.)	1,033	1,008	(25)	(2.4%)	1,359	1,392	32	2.4%
		Sapporo brand	215	275	60	27.7%	296	374	77	26.1%
	North America	1,248	1,283	35	2.8%	1,656	1,765	110	6.6%
		Sapporo brand	120	132	12	10.2%	168	218	50	29.8%
	Other areas	120	132	12	10.2%	168	218	50	29.8%
	Total	1,369	1,416	47	3.4%	1,823	1,983	160	8.8%
Sales:Beer (Japan) *including liquor tax							(billions of yen)
			Jan. 1 -	Jan. 1 -	YoY	YoY	Year ended	Full-year	YoY	YoY
			December 31,	estimate for
			Sep.30, 2020	Sep.30, 2021	Change	Change(%)	Change	Change(%)
			2020	fiscal 2021
		Beer	94.8	86.9	(7.8)	(8.3%)	137.2	133.8	(3.4)	(2.5%)
		Happoshu	5.1	4.7	(0.4)	(7.4%)	6.8	6.2	(0.6)	(8.6%)
		New genre	36.6	34.4	(2.2)	(6.0%)	45.5	46.4	0.9	2.1%
		Subtotal	136.5	126.0	(10.5)	(7.7%)	189.5	186.4	(3.1)	(1.6%)
		Rebate subtracted from sales	(8.0)	(7.7)	0.3	ー	(11.0)	ー	ー	ー
		Total	128.5	118.3	(10.2)	(7.9%)	178.5	ー	ー	ー

Sales:Alcoholic Beverage (Japan)

(billions of yen)

								Year ended	Full-year	YoY	YoY
				Jan. 1 -	Jan. 1 -	YoY	YoY
				December 31,	estimate for
				Sep.30, 2020	Sep.30, 2021	Change	Change(%)	Change	Change(%)
				2020	fiscal 2021
			Domestic wines	2.6	2.2	(0.3)	(12.5%)	3.6	3.2	(0.4)	(10.9%)
			Imported wines	4.2	3.9	(0.4)	(8.4%)	6.8	6.5	(0.3)	(4.0%)
		Wine (total)	6.8	6.1	(0.7)	(9.9%)	10.4	9.7	(0.7)	(6.4%)
		Spirits and Shochu (total)	16.3	16.9	0.7	4.3%	22.8	24.3	1.5	6.5%
		Subtotal	23.0	23.1	0.0	0.1%	33.2	34.0	0.8	2.5%
		Rebate subtracted from sales	(4.4)	(4.3)	0.0	ー	(6.2)	ー	ー	ー
		Total	18.7	18.7	0.1	0.3%	27.0	ー	ー	ー

Sales:Food & Soft Drinks (Japan) *2

(billions of yen)

	Jan. 1 -	Jan. 1 -	YoY	YoY	Year ended	Full-year	YoY	YoY
	December 31,	estimate for
	Sep.30, 2020	Sep.30, 2021	Change	Change(%)	Change	Change(%)
	2020	fiscal 2021
Soft Drinks	47.2	47.2	0.0	0.1%	62.5	62.3	(0.2)	(0.3%)
Food（Lemon・Soups・Plant milk）	21.5	21.9	0.4	2.0%	32.8	36.2	3.4	10.5%

*2:Only domestic sales(Before Rebate subtracted from sales)

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3. Consolidated Results (Nine months ended September 30, 2021)

Consolidated Statements of Income

(billions of yen)

			Nine Months ended	Nine Months ended
			September 30,	September 30,	Change	Change(%)
			2020	2021
	Alcoholic Beverages（*1）（*2）	206.8	202.0	(4.8)	(2.3%)
	Japanese		163.7	158.3	(5.4)	(3.3%)
	Overseas		34.8	39.5	4.7	13.6%
	Restaurants	8.3	4.2	(4.1)	(49.9%)
	Food & Soft Drinks	91.0	90.4	(0.6)	(0.6%)
	Real Estate		17.5	16.5	(0.9)	(5.4%)
	Other（*1）	0.1	0.1	(0.0)	(0.0%)
Revenue		315.3	309.1	(6.3)	(2.0%)
	Alcoholic Beverages（*1）（*2）	0.3	0.0	(0.3)	(85.9%)
	Japanese		3.8	2.4	(1.4)	(37.0%)
	Overseas		0.4	1.6	1.2	269.1%
	Restaurants	(4.1)	(3.9)	0.1	ー
	Food & Soft Drinks	(2.3)	(0.3)	2.1	ー
	Real Estate		8.0	6.4	(1.6)	(20.0%)
	Other・General corporate and	(4.8)	(4.6)	0.2	ー
	intercompany eliminations（*1）
Core operating profit（*3）	1.2	1.5	0.4	31.7%
	Other operating income	2.7	25.5	22.9	856.1%
	Other operating expense	5.9	3.1	(2.8)	(46.9%)
Operating profit	(2.0)	23.9	26.0	ー
	Financial income (expense)	(0.8)	(0.1)	0.7	ー
	Equity in net income (loss) of affiliates	0.0	0.0	0.0	97.7%
Profit before tax	(2.9)	23.9	26.7	ー
	Income taxes	(1.7)	8.2	9.9	ー
Profit (loss)		(1.2)	15.7	16.8	ー
	Profit (loss) attributable to non-controlling interest	(0.2)	(0.1)	0.2	ー
Profit (loss) attributable to owners of parent	(0.9)	15.7	16.7	ー
（ref.）
ＥＢＩＴＤＡ	（*4）	18.4	16.9	(1.5)	(8.1%)

*1: Effective from the fiscal year 2020, the logistics businesses were listed under "Alcoholic Beverages".

*2:The Vietnam and Europe businesses which were previously listed under "Japan & Asia business", but has been classified under "Overseas business" in 2021.

With the change of the classification, the name of "Japan & Asia business" changed to "Japanese business".

To enable year-on-year comparisons, figures for the previous fiscal year have been adjusted to reflect the new reportable segments.

*3: Core operating profit is calculated as Revenue - Cost of sales - SG&A expenses.

*4: EBITDA (IFRS)=Core operating profit + Depreciation and amortization

(excluding depreciation expense on leased assets which is charged on the rent of restaurants）

	Consolidated Statements of Cash Flows			(billions of yen)
		Nine Months ended	Nine Months ended
		September 30,	September 30,	Change	Change(%)
		2020	2021
Increase (decrease) in cash and cash equivalents	37.3	(6.4)	(43.7)	ー
Cash flows from operating activities	21.3	26.9	5.6	26.3%
	Profit before tax	(2.9)	23.9	26.7	ー
	Depreciation and amortization	19.8	17.0	(2.7)	(13.8%)
	Income tax payment	(5.6)	0.2	5.8	ー
Cash flows from investing activities	(14.3)	17.7	32.0	ー
	Purchase(Proceeds from sales ) of property,	(8.2)	(8.7)	(0.5)	ー
	plant and equipment
	Purchase(Proceeds from sales ) of	(2.5)	29.4	31.9	ー
	Investment property
Free Cash flows	7.0	44.6	37.6	535.3%
Cash flows from financial activities	30.3	(51.5)	(81.8)	ー
	Change in financial liabilities	38.5	(43.6)	(82.1)	ー
	Dividend paid	(3.3)	(3.3)	0.0	ー
	Repayments of lease liabilities	(4.9)	(4.7)	0.2	ー
Cash and cash equivalents	15.2	19.7	4.5	29.7%
(beginning of the period)
Cash and cash equivalents	52.5	13.3	(39.2)	(74.7%)
(end of the period)

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4. Consolidated Results (Nine months ended September 30, 2021)

Breakdown of key income Changes(Year-on-year)

（１）Alcoholic Beverages

(billions of yen)

				Change factor	Jan. 1 -	Jan. 1 -	Change		Details
				Sep.30, 2020	Sep.30, 2021
				Beer increase (decrease) in volume			(4.7)	Beer (1.8)
								Happoshu	(0.2)
								New genre	(2.7)
				Beer product mix			0.5	Including composition difference between container
				Manufacturing cost ,other			0.6
				Wine・Spirits・Shochu			0.0
				Others			1.6	Including Non-alcoholic & RTD
			Marginal profit			(2.0)
				Advertising and promotion expenses（*1）			(0.6)
				Personnel expenses, Facilities costs ,other			0.9
			Fixed costs and other			0.3
		Domestic subsidiary,consolidation adjusting, other			0.2
	Alcoholic Beverages in Japanese	3.8	2.4	(1.4)
	Alcoholic Beverages in Overseas	0.4	1.6	1.2
	Restaurants	(4.1)	(3.9)	0.1
	Segment adjustment	0.2	-	(0.2)
Alcoholic Beverages(Core operating profit)	0.3	0.0	(0.3)
（*1）Advertising and promotion expenses(2021) 15billions of yen

（２）Food & Soft Drinks				(billions of yen)
			Change factor	Jan. 1 -	Jan. 1 -	Change	Details
			Sep.30, 2020	Sep.30, 2021
			Increase (decrease) in volume			0.1	Including product mix
			Manufacturing cost ,other			(0.9)
			Logistics costs			(0.2)
		Marginal profit			(1.1)
			Advertising and promotion expenses			0.4
			Personnel expenses, Facilities costs ,other			2.4
		Fixed costs and other			2.7
		Domestic subsidiary,consolidation adjusting, other			0.1
	Japanese Food & Soft Drinks			1.8
	Overseas Soft Drinks/ Domestic coffee shop chain			0.3	Overseas+0.3・Domestic others+0.0
Food & Soft Drinks(Core operating profit)	(2.3)	(0.3)	2.1

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