Suntory Holdings Limited SUMMARY OF CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2016 (English Translation, UNAUDITED)

Company Name: Suntory Holdings Limited (URL: http://www.suntory.com/)

Representative: Takeshi Niinami, President

Contact: Toru Niwa, Head of Public Relations Public Relations Office: Tel:+81(0)3 5579-1150

Tel:+81(0)6 6346-0835

February 14, 2017

(Fractions of millions have been truncated)

  1. Consolidated operating results and financial positions for the fiscal year (January 1, 2016 - December 31, 2016)
  2. Operating results (% figures represent change from the same period of the previous fiscal year)

    Net sales

    Operating income

    Ordinary income

    Net income attributable to owners of parent

    Fiscal year ended

    million %

    ¥ million %

    million %

    million %

    December 31, 2016

    2,651,479 (1.3)

    197,988 7.0

    175,825 12.5

    121,518 168.6

    December 31, 2015

    2,686,765 9.4

    185,094 12.3

    156,286 1.6

    45,239 17.9

    Referential Information Income before amortization of goodwill and others

    Operating income

    Ordinary income

    Net income attributable to owners of parent

    Fiscal year ended

    ¥ million %

    million %

    million %

    December 31, 2016

    264,288 3.7

    242,125 7.1

    175,517 69.6

    December 31, 2015

    254,827 18.0

    226,019 10.2

    103,471 30.7

    NoteIncome before amortization of goodwill and others = Income + Amortization of Goodwill, Trademarks and other

    recognized in connection with M&A

    Basic net income per share

    Diluted net income per share

    Ratio of net income to equity

    Ratio of ordinary income to total assets

    Ratio of operating income to net sales

    Fiscal year ended December 31, 2016

    December 31, 2015

    ¥

    177.62

    66.19

    ¥

    -

    -

    %

    14.0

    5.2

    %

    3.9

    3.4

    %

    7.5

    6.9

    Reference EBITDA Ratio for the fisical year ending December 31, 2016

    EBITDA Ratio for the fisical year ending December 31, 2015

    3.8

    4.5

    EBITDA RatioNet interest-bearing debt after adjusted for Hybrid bonds and loans / EBITDA

  3. Financial positions

    Total assets

    Net assets

    Ratio of equity to total assets

    Net assets per share

    As of

    ¥ million

    ¥ million

    %

    ¥

    December 31, 2016

    4,374,356

    1,156,720

    20.0

    1,276.01

    December 31, 2015

    4,606,990

    1,162,629

    18.6

    1,254.32

    Reference (Net)Debt / Equity Ratio for the fisical year ending December 31, 2016

    (Net)Debt / Equity Ratio for the fisical year ending December 31, 2015

    0.97

    1.11

    (Net)Debt / Equity RatioNet interest-bearing debt after adjusted for Hybrid bonds and loans / Net Assets

  4. Cash flows

  5. Operating

    activities

    Investing

    activities

    Financing

    activities

    Cash and cash

    equivalents at year end

    Fiscal year ended

    ¥ million

    ¥ million

    ¥ million

    ¥ million

    December 31, 2016

    256,326

    (64,366)

    (91,840)

    352,525

    December 31, 2015

    266,237

    (207,552)

    6,527

    257,990

  6. Dividends

    (Fractions of millions have been truncated)

    Annual dividends

    Total cash dividends (Annual)

    Payout ratio (Consolidated)

    Cash dividends as a percentage of net assets (Consolidated)

    Fiscal year ended

    ¥

    ¥ million

    %

    %

    December 31, 2016

    13.00

    8,902

    7.3

    1.0

    December 31, 2015

    12.00

    8,205

    18.1

    0.9

  7. Consolidated result forecast for the fiscal year ending December 2016 (January 1, 2017 - December 31, 2017)
  8. Net sales

    Operating income

    Ordinary income

    Net income attributable

    to owners of parent

    Basic net income per

    share

    Fiscal year ending

    December 31, 2017

    ¥ million %

    2,690,000 1.5

    ¥ million %

    201,000 1.5

    ¥ million %

    178,000 1.2

    ¥ million %

    71,000 (41.6)

    ¥

    103.78

    267,000

    1.0

    244,000

    0.8

    125,000

    (28.8)

    Income before amortization of goodwill and others

    SUMMARY OF NON-CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2016 (English Translation, UNAUDITED)
    1. Operating results (% figures represent change from the same period of the previous fiscal year)

      Net sales

      Operating income

      Ordinary income

      Fiscal year ended

      ¥ million %

      ¥ million %

      ¥ million %

      December 31, 2016

      115,874 91.9

      78,305 220.3

      80,247 229.0

      December 31, 2015

      60,377 (20.8)

      24,447 (43.3)

      24,389 (45.4)

      Net income

      Basic net earnings per

      share

      Fiscal year ended

      ¥ million %

      ¥

      December 31, 2016

      81,699 987.3

      119.42

      December 31, 2015

      7,513 (80.7)

      10.99

    2. Financial positions

    3. Total assets

      Net assets

      Ratio of equity

      to total assets

      Total equity

      per share

      As of

      ¥ million

      ¥ million

      %

      ¥

      December 31, 2016

      2,172,686

      605,113

      27.9

      883.65

      December 31, 2015

      2,046,401

      530,658

      25.9

      776.07

      Operating Results

      1. Overview of the Twelve-Month Period Ended December 31, 2016

      Although a mild recovery was observed overall in the global economy during the FY2016 consolidated cumulative period from January 1, 2016 to December 31, 2016, the business environment continued to be characterized by uncertainty. Gradual recovery continued in the Japanese economy, but some weakness was seen, such as in personal consumption and in corporate profits.

      Amid these circumstances, the Suntory Group has actively expanded business in each of three segments, "Non-Alcoholic Beverages and Food," "Alcoholic Beverages," and "Other Businesses" both domestically and abroad. In terms of business results for the fiscal year under review, while net sales decreased by 1.3% year on year to 2.6515 trillion yen, reflecting the adverse impact of currency exchange rates, record high levels were achieved for operating income (up 7% year on year to 198 billion yen) and ordinary income (up 12.5% year on year to 175.8 billion yen). Net income attributable to owners of parent was 121.5 billion yen, up 168.6% year on year, due to the impact of gains on the transfer of businesses and capital reorganization or restructuring of overseas subsidiaries.

      When calculations exclude amortization of goodwill and others, operating income increased by 3.7% year on year to 264.3 billion yen, ordinary income by 7.1% year on year to 242.1 billion yen and net income attributable to owners of parent by 69.6% year on year to 175.5 billion yen.

      [Non-Alcoholic Beverages and Food Segment]

      Suntory Beverage & Food Limited proposed products based on the concepts of "natural & healthy" and "unique & premium", focused on strengthening brands and creating new demand, while all members of the Suntory Beverage & Food Limited aimed to strengthen profitability and improve product quality by reforming the cost structure based on insights provided by its Group companies.

      The domestic business aimed to create new demand for the products through strengthening the lineup of high-value-added products such as food for specified health uses (FOSHU) in addition to strengthening core brands, resulting in sales volume exceeding the level of the previous year. In the Suntory Tennensui line, sales of Suntory Yogurina & Minami-Alps Tennensui performed well, and the brand's annual overall sales volume grew significantly as over 100 million cases were sold for the brand for the first time. The BOSS brand focused on promoting flagship products, and the sales volume of the bottle-shaped canned coffees Premium BOSS Black and Premium BOSS Bito grew significantly, driving sales for the brand as a whole. In September, a new product was launched in the Premium BOSS brand, expanding the lineup. In the Iyemon series, the sales volume of the FOSHU green tea Tokucha grew considerably, and there was significant growth for the brand overall. In FOSHU products, the company is driving market expansion and building for itself an unshakable position. We continued to work on proactive marketing for Iyemon Tokucha and Suntory Black Oolong Tea, and in August we launched Tokucha Caffeine Zero. As a result, total sales volumes of FOSHU products grew considerably from the year earlier level.

    Suntory Beverage & Food Limited published this content on 14 February 2017 and is solely responsible for the information contained herein.
    Distributed by Public, unedited and unaltered, on 14 February 2017 07:43:09 UTC.

    Original documenthttp://www.suntory.com/news/article/mt_items/SBF0499E.pdf

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