Sapporo Breweries (2501) Investor presentation summary

Strategic rationale and objectives

• Aims to focus resources on the alcoholic beverages business, leveraging competitive advantages and enhancing global brand experiences while improving capital returns.

• Off-balancing the real estate business allows for reinvestment into core growth areas and sustainable value creation.

• SRE will pursue growth and property value enhancement with new external capital.

Transaction overview and structure

• External capital injection into SRE valued at 477.0 billion yen enterprise value, with equity value at 374.6 billion yen and net debt of 102.4 billion yen.

• Transaction executed in three stages: 51% transfer in June 2026, 29% in June 2028, and 20% in June 2029.

• Counterparty is SPARK LLC, backed by PAG and KKR.

• Certain assets, including 30% of YGP, are excluded to support the alcoholic beverages business.

Financial impacts and cash allocation

• Estimated accounting gain of approximately 330.0 billion yen to be booked in 2026.

• Total cash inflow expected to be around 470.0 billion yen, including interest.

• Cash allocation: 300–400 billion yen for growth investments (including M&A), 100 billion yen for debt repayment, and 100 billion yen for shareholder returns by FY2030.

• Medium-term ROE target set at 8% or higher by 2030, with a long-term goal of 10% or higher.