Sapporo : 4Q (12/2021)Integrated Report

SAPPORO HOLDINGS LIMITED

Integrated Report 2021

SAPPORO HOLDINGS Integrated Report 2021	Table of	Introduction	Message from	Value Creation	Growth Strategy	Sustainability	Management		01
Contents	the President	Story	Management	Foundation

Table of Contents

01 Table of Contents

02 Editorial Policy / Information Framework

Introduction

03 Management Philosophy Framework

04 Cover Story

Achieving Creative, Enriching, and Rewarding Lifestyles

07 Message from the President

Pick Up Contents

1. Value Creation Story
2. History of Value Creation

1. Process of Value Creation
2. Sources of Value Creation
3. Business Model
4. Roadmap to the Group's Long-Term Vision
5. Group Management Plan 2024
6. Message from Managing Director (Corporate Finance)

1. Message from Director (Human Resources)
2. Financial Highlights
3. Non-FinancialHighlights

1. Growth Strategy
2. Business Overview
3. Alcoholic Beverages
4. Strategy for Further Premiumization of Beers
5. Strengthening of

International Alcoholic Beverages

1. Food & Soft Drinks
2. Expand Plant-based Foods /
   Accelerate Growth of Overseas Businesses
3. Real Estate
4. Digital Transformation (DX)

1. Sustainability Management
2. Sustainability Management
3. 4 Key Promises and Materiality
4. Promise 1: Contribute to Creative, Enriching and

Rewarding Lifestyles through Alcoholic

Beverages, Food, and Soft Drinks

1. Promote Responsible Drinking
2. Promise 2: Promote Coexistence with Society

40 Promise 3: Environmental Conservation

42Eorts Related to Climate Change

1. Plastics Reduction / Biodiversity
2. Promise 4: Cultivate Highly Unique Employees
3. Diversity and Inclusion/ Human Resource Development/ Health and Productivity Management
4. Human Rights
5. Management Foundation
6. Corporate Governance Digest
7. Message from an Outside Director

54 Corporate Governance

62 Risk Management

65 Board of Directors, Directors Who Are Audit & Supervisory Committee Members, and Group Operating Ocers

1. Ten-YearSummary of Financial and Non-Financial Data
2. Corporate Data

Message from the President	P07	Message from Managing Director	P19	Message from Director	P21	Message from an Outside Director	P52
		(Corporate Finance)		(Human Resources)

SAPPORO HOLDINGS Integrated Report 2021	Table of	Introduction	Message from	Value Creation	Growth Strategy	Sustainability	Management		02
Contents	the President	Story	Management	Foundation

Editorial Policy

Sapporo Group's integrated report serves to inform all stakeholders about our distinct value as a group with highly unique brands and expresses our commitment to contribute to the evolution of creative, enriching, and rewarding lifestyles.

Integrated Report 2021 seeks to inform readers about the Sapporo Group's vision, strategy, materiality, and governance aimed at improving medium- to long-term corporate value with a focus on our value creation story. In compiling this report, we have created a cross-functional project team to promote collaborative eorts toward information collection and content creation.

Going forward, we will continue to utilize the integrated report as an engagement tool for all stakeholders, including shareholders and investors, while striving to improve our corporate value.

Information Framework

For more information regarding nancial and non-nancial matters, please visit the Company website.

Integrated Report		Sustainability Book
Financial and sustainability		Information regarding the Sapporo
information pertaining to the		Group's sustainability-related
Sapporo Group		initiatives (Japanese only)
https://www.sapporoholdings.jp/en		https://www.sapporoholdings.jp/csr
/ir/library/factbook/		/sustainability_book/

Securities Report	Corporate Governance Report
Business overview and description, operating status,	Information related to corporate governance, including basic
nancial statements, and other related information (Japanese only)	stance and description of organizational system
https://www.sapporoholdings.jp/ir/library/securities_report/	https://www.sapporoholdings.jp/en/csr/governance/policy/pdf
/basic_governance_approach_2022.pdf

Financial Presentation Materials	ESG Data
Information related to the management plan and nancial results	Environmental, social, and governance (ESG)-related data for
https://www.sapporoholdings.jp/en/ir/library/description/	previous scal years
	https://www.sapporoholdings.jp/en/csr/esg/

Forward-Looking Statements

Statements in this integrated report with respect to the Company's forecasts, performance or otherwise, are based on the Company's judgments in light of the latest information available as of the publication of this report and contain potential risks and contingencies. For that reason, please be aware that, due to various changing factors, actual results may vary from the forecasts published in this report.

July 2022

Period Covered

This report covers the scal year ended December 2021 (Jan. 1, 2021-Dec. 31, 2021). However, it may refer to events before or after this period as necessary.

Organizations Covered

Sapporo Holdings Limited and Group companies

Referenced Guidelines

• VRF (Value Reporting Foundation),

International Integrated

Reporting Framework

• Ministry of Economy, Trade and

Industry, Guidance for

Collaborative Value Creation

• GRI (Global Reporting Initiative), Sustainability Reporting Standards (International guidelines on corporate sustainability reporting)
• International Organization for Standardization, ISO 26000 (Guidance on social responsibility)
• Ministry of the Environment, Environmental Reporting Guidelines 2018

Supported Initiatives

• UN Global Compact
• The SDGs (Sustainable Development Goals)
• The TCFD (The FSB's Task Force on Climate-related Financial Disclosures)

SAPPORO HOLDINGS Integrated Report 2021	Table of	Introduction	Message from	Value Creation	Growth Strategy	Sustainability	Management		03
Contents	the President	Story	Management	Foundation

Management Philosophy Framework

The Sapporo Group is committed to "the realization of a sustainable society" and "sustained growth of the Group" and is therefore working under its Sustainability Policy to create value leading to solutions for global issues. By doing so,

it is working to realize its Management Philosophy: "Sapporo will contribute to the evolution of creative, enriching, and rewarding lifestyles."

Management

Philosophy

Fundamental Management

Policy

2026 Group Vision

Action Guidelines

Sustainability Policy

Promise1		Promise2
Contribute to Creative, Enriching and Rewarding		Promote Coexistence with Society
Lifestyles through Alcoholic Beverages,
Food, and Soft Drinks
Promise3		Promises4
Environmental Conservation		Cultivate Highly Unique Employees

As an intrinsic part of people's lives,

Sapporo will contribute to the evolution of creative, enriching, and rewarding lifestyles.

The Sapporo Group strives to maintain integrity in corporate conduct that reinforces stakeholder trust and aims to achieve continuous growth in corporate value.

The Sapporo Group will be a company with highly unique brands in the elds of Alcoholic Beverages, Food, and Soft Drinks around the world.

• Make customers' lifestyles around the world more fullling by creating new value through the pursuit of innovation and quality

• Strive to provide products and services and to nurture brands that foster communication among customers

• Practice ecient management in tandem with addressing changes in the environment

With the earth, in harmony with society, from the start, to bring smiles to people.

SAPPORO HOLDINGS Integrated Report 2021	Table of	Introduction	Message from	Value Creation	Growth Strategy	Sustainability	Management		04
Contents	the President	Story	Management	Foundation

Cover Story: Achieving Creative, Enriching, and Rewarding Lifestyles

Our Brewing Commitment

Focused on Raw Materials

Since its founding, the Sapporo Group has been committed to ensuring quality from carefully selecting elds and conducting research on raw materials based on the conviction of making great-tasting beer using superior raw materials. Today, we continue to develop and breed new varieties of barley and hops at our business locations inside and outside of Japan through cooperation with universities, research institutes, seedling companies and hops dealers. At the same time, our "eld men," as experts in raw materials, visit growers around the world to implement collaborative contract farming in our continuous eort to craft great-tasting beers from the highest quality raw materials.