Sapporo Breweries (2501) Investor presentation summary

Financial performance and capital efficiency

• Achieved ROE of 9.4% in 2025, surpassing the 2026 target of 8% and exceeding the cost of equity, which has risen to 6-7% due to higher domestic interest rates.

• PBR has been around 3x but is expected to drop to 1.3x in 2026 after external capital injection into the real estate business.

• Core operating profit and margins improved, driven by profitability gains in domestic alcoholic beverages and structural reforms.

Strategic capital allocation and investment

• Injected external capital into the real estate business to fund growth investments, mainly in the alcoholic beverages segment.

• Plans to allocate ¥300-400 billion to growth investments and ¥100 billion to shareholder returns by 2030, with a focus on M&A and innovation.

• Priority investment areas include strengthening core beer brands, expanding non-alcoholic and RTD sectors, and enhancing overseas operations.

Shareholder returns and capital policy

• Dividend policy targets DOE of 3% or higher, aiming for 4% by 2030, with flexible share buybacks to optimize capital efficiency.

• Additional shareholder returns will be considered if attractive investment opportunities are not identified.

• Dividend per share increased for the third consecutive year, with a projected rise from 52 yen to 90 yen in 2025.