Financial Strategy

Under the Mid-Term Management Plan 2027–2030, the Sapporo Group has embarked on a growth phase to accelerate long-term value creation toward 2035 and realize JAPAN PREMIUM BEER No.1 “SAPPORO”.
Under the previous Mid-Term Management Plan, we advanced structural reforms and business portfolio transformation to improve profitability and capital efficiency. As a result, we achieved our ROE target of 8% one year ahead of schedule, establishing a foundation for the next phase of growth.
Under the Mid-Term Management Plan 2027–2030, we will leverage the management resources generated through the injection of external capital into the real estate business to accelerate growth with alcoholic beverages at its core. In Japan, we will focus on the premiumization of our beer portfolio, centered on Black Label and Yebisu, while strengthening the Beyond Beer category, including RTDs and non-alcoholic beer. Overseas, we will expand the Sapporo Brand, primarily in North America and ASEAN, while cultivating the Healthier Choice category, centered on lemon-based products, as a new pillar of growth.

To achieve this growth, we plan to make growth investments totaling 300 billion to 400 billion yen. These investments will include expanding production capacity in North America and Vietnam, securing sales channels overseas, strengthening our RTD capabilities in Japan, and developing manufacturing facilities and customer experience centers to support the shift toward premium beer. In making these investments, we will utilize the WACC and hurdle rates for each region and business segment to ensure that returns consistently exceed the cost of capital.

The fundamental principle of the financial strategy under this Mid-Term Management Plan is to balance growth investments with shareholder returns. To improve capital efficiency while securing the capital necessary for growth investments, we have set an appropriate level of shareholders’ equity at approximately 350 billion yen as of 2030. This level reflects a comprehensive consideration of three key factors: securing the capital necessary for growth investments, maintaining financial soundness, and improving capital efficiency. We will also utilize financial leverage within the limits necessary to maintain an “A” credit rating, thereby balancing growth and financial soundness.

With regard to shareholder returns, we plan to distribute approximately 250 billion yen to shareholders over the term of this Mid-Term Management Plan. Regarding dividends, we will introduce a progressive dividend policy targeting a dividend on equity (DOE) of 3% or higher, while aiming to achieve a DOE of 5% or higher by 2030. Additionally, we plan to repurchase approximately 170 billion yen of our own shares. We will simultaneously achieve profit growth through growth investments and improved capital efficiency through shareholder returns, thereby enhancing both corporate value and shareholder value.
 
Our financial targets include an EBITDA growth rate of 10.0% or higher, an EPS of 1.5 times or higher, and an ROE of 8.0% or higher. We view an ROE of 8.0% or higher as the minimum level we must achieve, and in addition to organic growth, we aim to achieve an ROE of 10% or higher over the medium to long term by steadily capitalizing on the results of growth investments and strategic capital and business alliances.
 
We will continue to engage in constructive dialogue with our shareholders and investors and incorporate their feedback into our management decisions. By creating a virtuous cycle of profit growth and improved capital efficiency through growth investments, and through the realization of JAPAN PREMIUM BEER No.1 “SAPPORO,” we will deliver value to our shareholders, investors, and other stakeholders, while supporting sustainable growth in corporate value from a financial perspective.