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Management Plan

  • Based on Nov 2, 2016  News Releases

Formulation of The First Medium-Term
Management Plan 2020

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Sapporo Holdings Limited (the “Company”) has formulated the Sapporo Group Long-Term Management Vision “SPEED150” and the First Medium-Term Management Plan 2020. The First Medium-Term Management Plan 2020 lays out the basic strategies the Company will implement over the next four years through 2020.

1.  Fundamental Policy

The Company aims to transition to a growth stage as early as possible based on the theme of “Transformation with Unprecedented Speed.”

(1) Business Activities

    The Company will enhance its cash generation capabilities by achieving continuous growth and producing results based on the identification of competitive fields in each business.

    1.  Achieve continuous growth in existing businesses

      Achieve steady growth based on identification of competitive fields in the existing five businesses

    2.  Produce results in the investment business

      Enhance profitability in the Vietnam business, North American beverage business and the food & soft drinks business

    3.  Capture growth opportunities

      Capture growth opportunities by allocating resources to growth in the “Food” field and global business expansion

(2) Group Management

    The Company will take the lead in strengthening its platform through the strategic shift of
    resources, and business structure reforms and promotion of segment management.

      1. Implement a Group structure that fits the actual state of growth and optimization of Head Office functions

      2. Strengthen platform functions

        -R&D

          Bolster resources (human resources and research and development expenses) to drive growth in the” Food” field

        -Personnel and human resources

          Shift human resources to growth fields and implement health promotion measures

        -Finance

          Strengthen the financial base by enhancing asset efficiency and bolstering monitoring

2. Management Targets

(1) Quantitative Targets for 2020

    Net sales: Maintain sales growth that has continued since 2010

    Operating income: Deliver the Group's highest-ever earnings during the First Medium-Term Management Plan period

<Quantitative Targets by Business Segment>

(Billions of yen)

(※ operating margin is before goodwill)

2016 Forecast 2020 Target Percentage change
Net sales Operating income※ Net sales Operating income※ Net sales Operating income※
Consolidated total 547.7 24.0 640.0 34.0 116.9% 141.7%
Japanese Alcoholic Beverages 288.0 11.1 315.0 14.0 109.4% 126.1%
International 64.7 2.3 79.0 5.0 122.1% 217.4%
Food & Soft Drinks 136.4 3.6 162.0 6.5 118.8% 180.6%
Restaurants 28.2 0.9 32.0 1.6 113.5% 177.8%
Real Estate 22.8 10.0 25.0 12.0 109.6% 120.0%
New Businesses and Others 7.6 0.2 27.0 0.9 355.3% 450.0%
Corporate (4.1) (6.0)

(2) Financial Indicators

    The Company has set the following indicators to build a financial base able to promptly address changes in the environment and investment opportunities in the growth stage.

<Financial indicators to be achieved during the four years from 2017 to 2020>

Cash flows from operating activities ¥180.0 billion Generate cash flows by strengthening platform functions, achieving continuous growth in existing businesses, and producing results in investment businesses
Cash flows from investing activities ¥130.0 billion Proactively allocate cash to the “Alcoholic Beverages”, “Food” and “Soft Drinks” fields
Interest-bearing liabilities Targeting a debt-to-equity (D/E) ratio of around 1.0.
Shareholder returns Targeting a dividend payout ratio of 30%

 

The plans and targets stated in this document were prepared based on forecasts made by the SAPPORO Group from information available at the time of publication and therefore involves potential risks and uncertainties.

Actual outcomes may differ materially from these plans and targets due to changes in various underlying factors.