Interim report
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- 1 - *This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. Financial Results for the Year Ended December 31, 2025 — Consolidated (Based on IFRS) February 13, 2026 Company name Sapporo Holdings Limited Security code 2501 Listed on Tokyo Stock Exchange (Prime Market); Sapporo Securities Exchange URL https://www.sapporoholdings.jp/en/ Representative Hiroshi Tokimatsu, President and Representative Director Contact Yosuke Nakamura, Director of the Corporate Planning Department Telephone +81-3-5423-7407 Scheduled dates: Annual general meeting of shareholders March 27, 2026 Filing of annual financial report March 30, 2026 Commencement of dividend payments March 25, 2026 Supplementary information on the year-end earnings results Available Financial results briefing Yes (mainly targeted at institutional investors and analysts) 1. Consolidated Financial Results for the Year Ended December 31, 2025 (January 1 – December 31, 2025) (Amounts in million yen rounded to the nearest million yen) (1) Operating Results (Percentage figures represent year-over-year changes) Revenue Core Operating profit Operating profit Profit million yen % million yen % million yen % million yen % Year ended December 31, 2025 506,861 (1.1) 25,009 48.6 24,437 332.9 19,536 151.4 Year ended December 31, 2024 512,434 - 16,827 - 5,645 - 7,771 (11.3) Profit attributable to owners of parent Total comprehensive income million yen % million yen % Year ended December 31, 2025 19,498 152.8 26,869 54.0 Year ended December 31, 2024 7,714 (11.6) 17,444 (9.3) Basic earnings per share Diluted earnings per share Ratio of profit to equity attributable to owners of parent Ratio of profit before tax to total assets Core operating profit margin Yen Yen % % % Year ended December 31, 2025 50.02 49.99 9.4 3.4 4.9 Year ended December 31, 2024 19.80 19.79 4.1 1.1 3.3 Note: Equity method investment gains: Year ended December 31, 2025: 15 million yen Year ended December 31, 2024: 23 million yen
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- 2 - Profit (loss) before tax: Year ended December 31, 2025: 22,704 million yen Year ended December 31, 2024: 7,217 million yen Operating profit margin: Year ended December 31, 2025: 4.8% Year ended December 31, 2024: 1.1% Notes: 1. Core operating profit is a proprietary profit indicator that measures the performance consistency of its business. Core operating profit is calculated as Revenue – Cost of sales – SG&A expenses. 2. The Company conducted a stock split at a ratio of 5 shares for each share of common stock, effective January 1, 2026. "Basic earnings per share" and "Diluted earnings per share" are calculated on the assumption that the stock split was conducted at the beginning of the previous consolidated fiscal year. 3. In the current consolidated fiscal year, the Real Estate business, consisting of Sapporo Real Estate Co., Ltd. and other subsidiaries, has been classified as discontinued operations. Accordingly, revenue, core operating profit, operating profit, and profit before tax are presented as amounts for continuing operations, excluding discontinued operations. The same reclassification has been applied to the previous consolidated fiscal year, and therefore, year-over-year changes for these items are not presented.
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- 3 - (2) Financial Position Total assets Total equity Equity attributable to owners of parent Ratio of equity attributable to owners of parent to total assets Equity per share attributable to owners of parent million yen million yen million yen % Yen As of December 31, 2025 653,690 220,117 218,862 33.5 561.41 As of December 31, 2024 664,963 197,157 196,030 29.5 503.14 Note: The Company conducted a stock split at a ratio of 5 shares for each share of common stock, effective January 1, 2026. " Equity per share attributable to owners of parent " is calculated on the assumption that the stock split was conducted at the beginning of the previous consolidated fiscal year. (3) Cash flows Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and equivalents at end of period million yen million yen million yen million yen Year ended December 31, 2025 44,592 (2,972) (42,274) 22,360 Year ended December 31, 2024 36,109 (5,836) (25,372) 24,140 2. Dividends Dividend per share Total dividends paid (full year) Payout ratio (consolidated) Dividends to equity attributable to owners of parent (consolidated) Record date or period End Q1 End Q2 End Q3 Year-end Full year yen yen yen yen yen million yen % % Year ended December 31, 2024 - 0.00 - 52.00 52.00 4,057 52.5 2.1 Year ended December 31, 2025 - 0.00 - 90.00 90.00 7,022 36.0 3.4 Year ending December 31, 2026 (forecast) - 20.00 - 20.00 40.00 5.3 Notes: 1. As disclosed today (February 13, 2026) in the "Notice Concerning Implementation of Interim Dividend," starting from the fiscal year ending December 2026, the Company will distribute dividends of surplus twice a year—an interim dividend and a year-end dividend—in order to enhance opportunities for profit return to its shareholders. 2. The Company conducted a stock split at a ratio of 5 shares for each share of common stock, effective January 1, 2026. For the fiscal years ending December 2024 and December 2025, the actual dividend amounts before the stock split are stated. For the fiscal year ending December 2026 (forecast), the figures after the stock split are stated. If the stock split is not taken into account, the annual dividend for the fiscal year ending December 2026 (forecast) would be 200 yen.
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- 4 - 3. Forecast of Consolidated Earnings for the Year Ending December 31, 2026 (January 1 – December 31, 2026) (Percentage figures represent year-over-year changes) Notes: 1. The Company conducted a stock split at a ratio of 5 shares for each common stock, effective January 1, 2026. The "Basic earnings per share" in the consolidated earnings forecast is calculated based on the number of shares outstanding (excluding treasury stock) after the stock split. 2. The Company manages its performance on an annual basis and therefore omits disclosure of consolidated earnings forecasts for the second quarter (cumulative). Revenue Core operating profit Operating profit Profit Profit attributable to owners of parent Basic earnings per share million yen % million yen % million yen % million yen % million yen % yen Year ending December 31, 2025 505,000 (0.4) 22,000 (12.0) 6,000 (75.4) 296,040 - 296,000 - 759.28
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- 5 - 4. Other (1) Significant changes in the scope of consolidation during the period: Yes Newly included: None Excluded: 2 companies (Sapporo Group Management Ltd., ANCHOR BREWING COMPANY, LLC) (2) Changes in accounting policy, changes in accounting estimates, and retrospective restatement 1) Changes in accounting policies required by IFRS: None 2) Changes other than 1) above: None 3) Changes in accounting estimates: None (3) Number of shares issued and outstanding (common stock) 1) Number of shares issued at end of period (treasury stock included): December 31, 2025: 393,971,490 shares December 31, 2024: 393,971,490 shares 2) Number of shares held in treasury at end of period: December 31, 2025: 4,129,135 shares December 31, 2024: 4,354,890 shares 3) Average number of outstanding shares during the period: Year ended December 31, 2025: 389,787,450 shares Year ended December 31, 2024: 389,585,005 shares Note: The Company conducted a stock split at a ratio of 5 shares for each common stock, effective January 1, 2026. The number of shares issued and outstanding (common stock) has been calculated assuming that the stock split was implemented at the beginning of the previous consolidated fiscal year. Review of the Japanese-language originals of the attached condensed quarterly consolidated financial statements by certified public accountants or an audit firm: None Appropriate Use of Earnings Forecasts and Other Important Information This document contains projections and other forward-looking statements based on information available to the Company as of the date of this document. Actual results may differ from those expressed or implied by forward-looking statements due to various factors. For the assumptions underlying the forecasts herein and other information on the use of earnings forecasts, refer to “Outlook for fiscal year ending December 31, 2026,” on page 13.
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- 6 - 1. Analysis of Operating Results and Financial Condition (1) Operating Results (a) Review of the fiscal Year ended December 31, 2025 The Group has resolved, on December 24, 2025, to execute a series of transactions (hereinafter, the “Transactions”) including an investment in Sapporo Real Estate Co., Ltd. (hereinafter, “SRE”), a wholly owned subsidiary of its company, by SPARK LLC, which is jointly funded by PAG Investment Management Co., Ltd. and funds advised or managed by Kohlberg Kravis Roberts & Co. L.P. or their respective affiliates, and has executed agreements related to the Transactions. Accordingly, a portion of the Real Estate business (*) has been classified as discontinued operations, and the same presentation has been applied to both the current and prior consolidated fiscal years. For revenue, core operating profit, and operating profit, the amounts for continuing operations, excluding discontinued operations, are presented. For net income attributable to owners of the parent company, the total of continuing operations and discontinued operations is presented. For details regarding discontinued operations, please refer to "3. Consolidated Financial Statements and (6) Notes to Consolidated Financial Statements (Discontinued Operations)." In addition, its group previously reported three segments: "Alcoholic Beverages," "Food & Beverages " and "Real Estate." However, from this fiscal year, the Company has changed to two segments: "Alcoholic Beverages " and "Food & Beverages." For details, please refer to "3. Consolidated Financial Statements and (6) Notes to Consolidated Financial Statements (Segment Information)." During the current period, the economic environment remained uncertain due to factors such as prolonged geopolitical risks, rising prices caused by surging raw material and energy costs, and concerns about the impact of U.S. tariff policies on the global economy. Amid such circumstances, in the third year of its Medium-Term Management Plan (2023–26), its group has been steadily achieving results by advancing initiatives aimed at further enhancing profitability through decisive structural reform and accelerated growth. Consolidated revenue decreased year on year, despite strong beer sales in the domestic market and increased revenue from the price revision in April, due to the impact of decreased revenue resulting from structural reforms in the Food & Beverages business. Consolidated core operating profit increased from the previous fiscal year, due to higher sales in the Alcoholic Beverages business, as well as the effects of cost structure reforms in the Food & Beverages business and a rebound effect following IT investments in the previous fiscal year. Consolidated operating profit increased year on year, mainly due to the rebound from the impairment loss on goodwill recorded in the previous fiscal year upon the acquisition of stock in STONE BREWING CO., LLC (hereinafter, "Stone") and other factors. Profit attributable to owners of parent increased compared to the previous fiscal year, as the increase in consolidated operating profit outweighed the decrease in exchange rate gains due to fluctuations in exchange rates. * Prior to the Transactions, 30% of SRE’s trust beneficiary rights in Yebisu Garden Place, along with Ginza Place, and part of Sapporo Garden Park will be transferred to Sapporo Breweries Limited, another wholly owned subsidiary.
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- 7 - Summary in key figures Millions of yen, except percentages Revenue Core operating profit Operating profit Profit attributable to owners of parent Year ended December 31, 2025 506,861 25,009 24,437 19,498 Year ended December 31, 2024 512,434 16,827 5,645 7,714 Change (%) (1.1) 48.6 332.9 152.8 Notes: 1. Core operating profit is a proprietary profit indicator that measures the performance consistency of its business. Core operating profit is calculated as Revenue – Cost of sales – SG&A expenses. 2. Revenue, core operating profit, and operating profit represent the amounts for continuing operations, excluding discontinued operations, while profit attributable to owners of parent represents the total of continuing operations and discontinued operations. Results by segment are outlined below. Alcoholic Beverages Revenue increased from the previous fiscal year, despite a decrease in sales volume of overseas brand beer, due to strong sales of beer in the domestic market and the impact of the price revision in April. Core operating profit increased from the previous fiscal year, mainly due to higher sales in Domestic Alcoholic Beverages. Operating profit increased from the previous period due to the increase in core operating profit, as well as the absence of the goodwill impairment loss that was recorded in the previous period when acquiring stock of Stone. ■Revenue: ¥400.2billion (up ¥5.9 billion, or 1.5% year-on-year) ■Core operating profit: ¥28.5 billion (up ¥7.1 billion, or 33.1% year-on-year) ■Operating profit: ¥30.3 billion (up ¥2.3 billion, or 315.4% year-on-year) Details of Alcoholic Beverages (Japan and Overseas) and Restaurants in the Alcoholic Beverages segment are as follows. Japan Due to the deterioration of business sentiment and the impact of the price revision in April, both the on trade and off trade markets in Japan remained sluggish. The total demand for beer-type beverages (beer, happoshu (including happoshu (2))) is estimated to be 96% compared to the previous year. In addition, the total demand for beer is estimated to be 99% compared to the previous year. In the current period, the Company is further strengthening its initiatives for beer in anticipation of the liquor tax revision in October 2026, while focusing on business growth centered on RTD. Amid such circumstances, the sales volume of Sapporo Draft Beer Black Label canned products was 107% compared to the previous year, and the sales volume of Yebisu Beer canned products was 102% compared to the previous year, both showing strong performance. As a result, the total sales volume of beer-type beverages in its group in Japan reached 99% compared to the previous year, exceeding total market demand. In addition, the sales volume of RTD cans was 108% compared to the previous year. *: RTD, or ready-to-drink beverages, are pre-mixed, low-alcohol cocktail-like beverages that can be consumed as is immediately after opening.
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- 8 - Overseas The North American beer market remained sluggish compared to the previous year due to weak consumer demand and changes in category composition. In particular, the U.S. craft beer segment continued to experience market weakness, and sales volume of its overseas brands fell below the previous year's level. On the other hand, the Sapporo brand performed steadily in North America, with sales volume reaching 105% of the previous year, driven by expanded distribution in key areas and strengthened communication that consistently conveyed the brand worldview. Restaurants Restaurant demand remained steady as the recovery in foot traffic and consumer spending on in- person services continued gradually with the normalization of socio-economic activities. Amid these conditions, existing store sales revenue in the Restaurants business reached 104% year-on-year, driven by capturing inbound demand, attracting senior customers, and revising menus and prices. Food & Beverages Revenue decreased from the previous fiscal year due to the impact of structural reforms such as business transfers in the domestic market up to last year, as well as a decline in sales resulting from the temporary suspension of operations and lower operating rates at the Malaysia plant of Overseas Beverages. Although core operating profit was affected by surging raw material costs, the effects of the cost structure reform contributed to an increase in profit compared to the previous fiscal year. Operating profit decreased from the previous period, mainly due to the recording of an impairment loss associated with the conclusion of a transfer agreement for the shares and receivables of Shinsyu- ichi Miso Co., Ltd., as well as the absence of gains from the reversal of impairment losses on non- current assets and gains on the sale of land that were recorded in the previous period. ■Revenue: ¥106.6 billion (down ¥11.3 billion, or 9.6% year-on-year) ■Core operating profit: ¥4.2 billion (up ¥0.8 billion, or 23.3% year-on-year) ■Operating profit: ¥1.9 billion (down ¥3.3 billion, or 63.8% year-on-year) Details of Food & Beverages (Japan) and Overseas Beverages in the International Business segment are as follows. Food & Beverages (Japan) The total domestic beverage demand is estimated to be 97% compared to the previous period. In this environment, the sales amount of domestic beverages for its group saw steady growth, with its main beverage brand "Kireto Lemon" achieving 109% compared to the previous period. Merchandise with unique value, such as the "Hokkaido Corn Tea" series and "Hokkaido Furano Hop," also performed well, each recording double-digit growth compared to the previous period. However, due to product renewals and discontinuations, overall beverage sales amounted to 94% compared to the previous period. In addition, the main brand 'Pokka Lemon 100' continued to perform well, achieving 117% compared to the previous period, as in the previous year. Overseas Beverages Regarding the defect in finished goods packages that occurred at the Malaysia plant from early March 2025, the situation has now been normalized. Under such circumstances, in Singapore, due to the diversification of consumer preferences and the resulting decline in demand in existing markets, sales amounted to 93% of the previous year (on a local currency basis). In Malaysia, which is a key focus area, while the Company worked to expand sales through the sales network of new distributors, sales amounted to 85% of the previous year (on a local currency basis) due to the impact of manufacturing conditions. In export businesses other than those mentioned above, exports to the Middle East resumed in August 2024. Although the recent situation in the Middle East has had some negative impact,
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- 9 - sales amounted to 108% of the previous year (on a local currency basis). Real Estate (Discontinued Operations) In the office leasing market in the Greater Tokyo area, both occupancy rates and average rent levels have remained steady. In particular, among the five central wards, the office vacancy rate in Shibuya Ward is lower compared to other wards, and as a result, rents are also on an upward trend. Amid such circumstances, revenue increased from the previous period due to the continued high office operating rate at Yebisu Garden Place, strong customer traffic at Sapporo Factory driven by cinema and events, and an increase in lease revenue from properties acquired last year.
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- 10 - (2) Consolidated Financial Condition As of the end of the fiscal year consolidated accounting period, the following were the changes in the condition of assets, liabilities, and equity. (Millions of yen) As of December 31, 2024 As of December 31, 2025 Change Current assets 193,918 340,461 146,543 Non-current assets 471,045 313,229 (157,816) Total assets 664,963 653,690 (11,273) Current Liabilities 207,007 217,757 10,750 Non-current liabilities 260,799 215,815 (44,983) Total liabilities 467,805 433,572 (34,233) Total equity 197,157 220,117 22,960 Total liabilities and equity 664,963 653,690 (11,273) At the end of the fiscal year, assets decreased by 11.3 billion yen compared to the end of the previous fiscal year to 653.7 billion yen, mainly due to a decrease in other financial assets resulting from the sale of investment securities. Liabilities decreased by 34.2 billion yen compared to the end of the previous fiscal year, to 433.6 billion yen, mainly due to a decrease in bonds and loans payable. Equity increased by 23 billion yen compared to the end of the previous fiscal year, to 220.1 billion yen, mainly due to an increase in retained earnings resulting from the recording of profit attributable to owners of the parent.
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- 11 - (3) Consolidated Cash Flows At the end of the fiscal year consolidated accounting period, cash and cash equivalents (collectively “cash”) decreased by ¥1.8 billion (7%) to ¥22.4 billion, relative to the previous consolidated fiscal year- end. The components of cash flow categories were as follows. (Millions of yen) Category As of December 31, 2024 As of December 31, 2025 Change Cash flows from operating activities 36,109 44,592 8,483 Cash flows from investing activities (5,836) (2,972) 2,864 Free cash flow 30,273 41,620 11,347 Cash flows from financing activities (25,372) (42,274) (16,902) Effect of exchange rate change on cash and cash equivalents 2,035 (313) (2,348) Net increase (decrease) in cash and cash equivalents 6,936 (968) (7,904) Cash and cash equivalents at beginning of period 17,204 24,140 6,936 Cash and cash equivalents included in assets of disposal groups classified as held for sale - (813) (813) Cash and cash equivalents at end of period 24,140 22,360 (1,780) (Cash Flows from Operating Activities) Net cash provided by operating activities was 44.6 billion yen (compared to net cash provided of 36.1 billion yen in the previous fiscal year). This was mainly due to a decrease in income taxes paid of 12.9 billion yen, while there were increases due to depreciation and amortization expenses of 22.8 billion yen, profit before tax of 22.7 billion yen, profit before tax from discontinued operations of 6.3 billion yen, and a decrease in trade and other receivables of 4.6 billion yen. (Cash Flows from Investing Activities) Funds used as a result of investing activities amounted to 3 billion yen (compared to an outflow of 5.8 billion yen in the previous period). This was mainly due to increases from proceeds from the sale of investment securities of 9 billion yen and proceeds from redemption of investment securities of 8.2 billion yen, while there were decreases due to purchase of property, plant and equipment of 11.9 billion yen, purchase of investment securities of 5.5 billion yen, and an outflow of 3.7 billion yen for the acquisition of investment property. (Cash Flows from Financing Activities) Net cash used in financing activities was 42.3 billion yen (compared to an outflow of 25.4 billion yen in the previous period). This was mainly due to an increase of 1.1 billion yen from proceeds from short-term borrowings, while there were decreases due to redemption of bonds payable of 20 billion yen, repayment of long-term borrowings of 15.5 billion yen, and dividend payments of 4.1 billion yen.
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- 12 - Cash Flow Indicators 2024 2025 Ratio of equity attributable to owners of parent to total assets (%) 29.5 33.5 Ratio of equity attributable to owners of parent to total assets based on market capitalization (%) 97.5 100.5 Cash flow to interest-bearing debt (years) 7.5 5.1 Interest coverage ratio (times) 11.3 13.0 Ratio of equity attributable to owners of parent to total assets: Equity attributable to owners of parent to total assets / Total assets Ratio of equity attributable to owners of parent to total assets based on market capitalization: Market capitalization / Total assets Cash flow to interest-bearing debt: Interest-bearing debt / Cash flow Interest coverage ratio: Cash flow / Interest expense Notes: 1. Market capitalization is calculated based on the number of shares issued and outstanding, excluding treasury stock. 2. “Cash flow” is operating cash flow. 3. Of the debt carried on the consolidated balance sheet, interest-bearing debt is total debt on which interest is currently payable.
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- 13 - (4) Outlook for Fiscal Year Ending December 31, 2026 (Outlook for 2026) Reporting segments will be changed from the previous "Alcoholic Beverages " and "Food & Beverages " to two segments: "Domestic Business" and "Overseas Business" starting from the first quarter of fiscal year 2026. For details, please refer to "3. Consolidated Financial Statements" and "(6) Notes to Consolidated Financial Statements (Significant Subsequent Events) (Matters Concerning Change in Reportable Segments, etc.)." In fiscal year 2025, while taking into account the results of the business portfolio review and structural reform that have been promoted so far, the Company achieved the fiscal 2026 financial target of ROE 8%, as set forth in the Medium-Term Management Plan (2023–2026), one year ahead of schedule. Fiscal year 2026 is positioned as a transition period toward growth from fiscal year 2027 onward, and the Company will work to strengthen its business foundation for future sustainable growth through structural reform and growth investments. In the domestic business, while responding to changes in the market environment and rising costs, the Company aim to enhance profitability by focusing on the growth of the alcoholic beverages business centered on beer, as well as including the restaurants business and the food & beverages business. The overseas business will primarily focus on expanding sales of alcoholic beverages in North America, while also implementing cost structure reforms. Based on the above, the Group's overall revenue, core operating profit, and operating profit are expected to decrease, reflecting factors such as the classification of discontinued operations and temporary impacts associated with structural reform. On the other hand, profit attributable to owners of the parent is forecast to increase, as a gain of approximately 330 billion yen is expected to be recorded in 2026 due to the gain on loss of control over subsidiaries in real estate business (discontinued operations). Overall outlook Millions of yen, except percentages Revenue Core operating profit Operating profit Profit attributable to owners of parent 2026 forecast 505,000 22,000 6,000 296,000 2025 results 506,861 25,009 24,437 19,498 Projected change (%) (0.4) (12.0) (75.4) - Note: Revenue, core operating profit, and operating profit represent the amounts for continuing operations, excluding discontinued operations, while profit attributable to owners of the parent represents the total of continuing operations and discontinued operations. Forecasts by segment are outlined below. Domestic Business Revenue is expected to increase in Domestic Alcoholic Beverages due to strengthened investment mainly in 'Sapporo Draft Beer Black Label' and 'Yebisu Beer.' On the other hand, due to the impact of the business transfer in Domestic Food & Beverages in 2025 and other factors, overall domestic business is forecasted to see a decrease in revenue. Core operating profit and operating profit are expected to decrease for the overall domestic business. While positive effects such as price revisions and improved product mix in Domestic Alcoholic Beverages are anticipated, the forecast reflects the impact of surging raw material costs and logistics expenses, increased promotion expenses associated with strengthening beer, and temporary costs related to the injection of external capital into real estate business. ■Revenue ¥381.5 billion (down ¥2.4 billion, or 0.6% year-on-year) ■Core operating profit ¥30.1 billion (down ¥0.4 billion, or 1.4% year-on-year) ■Operating profit ¥25.1 billion (down ¥4.2 billion, or 14.2% year-on-year)
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- 14 - Details of Domestic Alcoholic Beverages, Restaurants, and Domestic Food & Beverages, which belong to the domestic business, are as follows. Domestic Alcoholic Beverages Toward the October 2026 liquor tax revision, the Company will further strengthen its initiatives for beer and aim for business growth centered on RTD. In particular, in the beer business, the Company will reinforce brand investment mainly in 'Sapporo Draft Beer Black Label' and 'Yebisu Beer, ' continue initiatives for growth, and once again strive to pursue and enhance the appeal of beer. Following 2025, inflationary pressure in the market, including raw materials and logistics costs, is expected to continue to significantly impact the performance of domestic alcoholic beverages. However, the Company expects to absorb these impacts through the effects of the price revision implemented in April of the previous year, improvements in product mix, and continued efforts in cost control. Restaurants The Company will maintain the recovery trend established in 2023 and, in order to further strengthen its management foundation, focus on the growth of existing stores as its main pillar, while taking initiatives to enhance the functions of its alcoholic beverage business as customer touchpoints and brand communication hubs. Although raw material costs and various other expenses are expected to continue rising, the Company will enhance profitability and brand appeal through timely and appropriate price revisions and efforts to enhance customer experience value. Domestic Food & Beverages Following 2025, in addition to the diversification of customer preferences and intensifying competition among manufacturers, increases in raw material, energy, and logistics costs are expected. Even under such an environment, the Company will strive to drive growth in its core lemon-related products, while advancing functional research on lemons, technological development, and the strengthening of procurement and production systems. In addition, the Company will continue to strengthen its earnings base by steadily implementing cost reduction measures. Overseas business Revenue is forecasted to increase due to the expansion of sales of core brands, mainly in North America, as well as growth in the non-alcoholic beer and RTD categories. Core operating profit and operating profit are forecasted to increase as a result of continued growth investments through strengthened marketing investment, while also implementing structural reforms in North America. ■Revenue ¥123.5 billion (up ¥0.6 billion, or 0.5% year-on-year) ■Core operating profit ¥3.4 billion (up ¥1.2 billion, or 51.9% year-on-year) ■Operating profit ¥3.2 billion (up ¥0.2 billion, or 5.9% year-on-year) Details of Overseas Alcoholic Beverages and Overseas Beverages under the Overseas Business are as follows. Overseas Alcoholic Beverages In the United States, the Company recognize the improvement of profitability as an urgent issue and will continue to advance structural reform, focusing on a fundamental review of operational costs at production sites. In addition, for the Sapporo brand, which continues to grow even in the sluggish North American beer market, the Company will strengthen marketing investments to further enhance growth and value creation, thereby increasing the brand's appeal. In Canada, in addition to premium brand beer, the Company will continue to promote the strengthening of non- alcoholic beer such as "SAPPORO 0.0" and the RTD category, while also advancing cost structure reform to improve business efficiency and profitability.
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- 15 - Overseas beverages Overseas Beverages will continue to address key issues in each market. In Singapore, the Company will work to improve profitability by strengthening the low- and zero-sugar tea category and reviewing unprofitable businesses and SKUs. In Malaysia, the Company will further strengthen collaboration with distributors to take initiatives to improve its sales base. For exports, the Company will aim to move away from dependence on the Middle East, select and develop markets with high growth potential and profitability, and work to stabilize its business portfolio.
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- 16 - (5) Basic Policy on Profit Distribution and Dividends for the Current and Next Fiscal Year The Company positions the return of profits to its shareholders as an important management policy, and its basic policy is to provide stable dividends, taking into consideration its business performance and financial condition. Regarding future dividend levels, the Company aims for a DOE of 3% or higher as a benchmark, with a goal of achieving a DOE of 4% or higher by 2030. For the current fiscal year (fiscal year ending December 2025), in accordance with the above policy and taking into consideration business performance and financial condition, the Company has decided to increase the dividend per share by 38 yen from the previous fiscal year and pay a dividend of 90 yen per share. Its distribution of dividends of surplus has previously been conducted once a year as a year-end dividend. However, starting from the fiscal year ending December 2026, in order to enhance opportunities to return profits to shareholders, the Company has decided to distribute dividends of surplus twice a year, with both an interim dividend and a year-end dividend. In addition, the Company has implemented a stock split at a ratio of 5 shares for each ordinary stock, with December 31, 2025 as the record date and January 1, 2026 as the effective date. Based on the above, for the next fiscal year (fiscal year ending December 2026), the Company plans to increase the shareholder dividend to 40 yen per share annually (including an interim dividend of 20 yen). (On a pre-stock split basis, this would be 200 yen per year.) According to its Articles of Incorporation, the Board of Directors may, by resolution, set June 30 as the record date for the interim dividend each year. Note: DOE = Dividend amount / Total equity attributable to owners of the parent (average of beginning and end of the period) 2. Basic Approach to Selecting Accounting Standards The Sapporo Group has voluntarily applied the International Financial Reporting Standards (IFRS) to its consolidated accounts from the first quarter of 2018. This change in accounting standard is aimed at facilitating international comparisons of Group financial information in the capital markets.
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17 3. Consolidated Financial Statements (1) Consolidated Statement of Financial Position (Millions of yen) As of December 31, 2024 As of December 31, 2025 Assets Current assets Cash and cash equivalents 24,140 22,360 Trade and other receivables 99,458 94,523 Inventories 58,148 45,687 Other financial assets 6,178 3,091 Other current assets 5,340 6,220 Subtotal 193,265 171,881 Assets held for sale 653 168,580 Total current assets 193,918 340,461 Non-current assets Property, plant and equipment 157,799 144,970 Investment property 209,176 82,607 Goodwill 22,362 22,509 Intangible assets 6,279 5,820 Investments accounted for using equity method 1,323 86 Other financial assets 67,528 52,145 Retirement benefit asset 409 － Other non-current assets 3,403 3,058 Deferred tax assets 2,766 2,034 Total non-current assets 471,045 313,229 Total assets 664,963 653,690
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18 (Millions of yen) As of December 31, 2024 As of December 31, 2025 Liabilities and equity Liabilities Current liabilities Trade and other payables 38,027 36,423 Bonds and borrowings 56,996 51,389 Lease liabilities 3,741 3,561 Income taxes payable 7,485 3,667 Other financial liabilities 32,060 26,386 Provisions 8,272 8,412 Other current liabilities 60,426 58,793 Subtotal 207,007 188,632 Liabilities directly associated with assets held for sale － 29,125 Total current liabilities 207,007 217,757 Non-current liabilities Bonds and borrowings 148,117 119,199 Lease liabilities 27,730 24,396 Other financial liabilities 60,987 49,546 Retirement benefit liability 3,297 2,647 Provisions 2,146 2,100 Other non-current liabilities 936 616 Deferred tax liabilities 17,585 17,312 Total non-current liabilities 260,799 215,815 Total liabilities 467,805 433,572 Equity Share capital 53,887 53,887 Capital surplus 40,832 40,901 Treasury shares (1,722) (1,633) Retained earnings 65,268 85,689 Other components of equity 37,766 40,019 Total equity attributable to owners of parent 196,030 218,862 Non-controlling interests 1,127 1,256 Total equity 197,157 220,117 Total liabilities and equity 664,963 653,690
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19 (2) Consolidated Statement of Profit or Loss (Millions of yen) Fiscal year ended December 31, 2024 Fiscal year ended December 31, 2025 Continuing operations Revenue 512,434 506,861 Cost of sales 353,002 339,815 Gross profit 159,433 167,046 Selling, general and administrative expenses 142,605 142,038 Other operating income 6,367 3,868 Other operating expenses 17,549 4,439 Operating profit 5,645 24,437 Finance income 5,041 2,379 Finance costs 3,492 4,128 Share of profit of investments accounted for using equity method 23 15 Profit before tax 7,217 22,704 Income tax expense 4,456 7,612 Profit from continuing operations 2,761 15,092 Discontinued operations Profit from discontinued operations 5,010 4,444 Profit 7,771 19,536 Profit attributable to Owners of parent 7,714 19,498 Non-controlling interests 57 39 Profit 7,771 19,536 Basic earnings per share Continuing operations 6.94 38.62 Discontinued operations 12.86 11.40 Basic earnings per share 19.80 50.02 Diluted earnings per share Continuing operations 6.94 38.60 Discontinued operations 12.85 11.39 Diluted earnings per share 19.79 49.99
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20 (3) Consolidated Statement of Comprehensive Income (Millions of yen) Fiscal year ended December 31, 2024 Fiscal year ended December 31, 2025 Profit 7,771 19,536 Other comprehensive income Items that will not be reclassified to profit or loss Net change in fair value of equity instruments designated as measured at fair value through other comprehensive income 6,256 5,968 Remeasurements of defined benefit plans (694) (521) Total of items that will not be reclassified to profit or loss 5,561 5,447 Items that may be reclassified to profit or loss Exchange differences on translation of foreign operations 4,115 1,882 Effective portion of cash flow hedges (3) 3 Total of items that may be reclassified to profit or loss 4,112 1,885 Total other comprehensive income, net of tax 9,673 7,332 Comprehensive income 17,444 26,869 Comprehensive income attributable to Owners of parent 17,244 26,731 Non-controlling interests 201 138 Comprehensive income 17,444 26,869
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21 (4) Consolidated Statement of Changes in Equity (Millions of yen) Share capital Capital surplus Treasury shares Retained earnings Other components of equity Exchange differences on translation of foreign operations Effective portion of cash flow hedges Financial assets measured at fair value through other comprehen sive income Remeasur ements of defined benefit plans Total other component s of equity Balance at January 1, 2024 53,887 40,754 (1,783) 50,828 8,886 3 29,740 - 38,630 Profit 7,714 - Other comprehensive income 3,971 (3) 6,256 (694) 9,529 Comprehensive income - - - 7,714 3,971 (3) 6,256 (694) 9,529 Purchase of treasury shares (21) - Disposal of treasury shares 82 - Dividends (3,667) - Share-based payment transactions 78 - Transfer to retained earnings 10,394 (11,088) 694 (10,394) Total transactions with owners - 78 61 6,727 - - (11,088) 694 (10,394) Balance at December 31, 2024 53,887 40,832 (1,722) 65,268 12,858 - 24,908 - 37,766 Total equity attributable to owners of parent Non- controlling interests Total equity Balance at January 1, 2024 182,315 933 183,248 Profit 7,714 57 7,771 Other comprehensive income 9,529 144 9,673 Comprehensive income 17,244 201 17,444 Purchase of treasury shares (21) - (21) Disposal of treasury shares 82 - 82 Dividends (3,667) (7) (3,674) Share-based payment transactions 78 - 78 Transfer to retained earnings - - - Total transactions with owners (3,528) (7) (3,535) Balance at December 31, 2024 196,030 1,127 197,157
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22 (Millions of yen) Share capital Capital surplus Treasury shares Retained earnings Other components of equity Exchange differences on translation of foreign operations Effective portion of cash flow hedges Financial assets measured at fair value through other comprehen sive income Remeasur ements of defined benefit plans Total other components of equity Balance as of January 1, 2025 53,887 40,832 (1,722) 65,268 12,858 - 24,908 - 37,766 Profit 19,498 - Other comprehensive income 1,783 3 5,968 (521) 7,233 Comprehensive income - - - 19,498 1,783 3 5,968 (521) 7,233 Purchase of treasury shares (60) - Disposal of treasury shares 37 149 - Dividends (4,057) - Share-based payment transactions 31 - Transfer to retained earnings 4,980 (5,501) 521 (4,980) Total transactions with owners - 68 89 923 - - (5,501) 521 (4,980) Balance as of December 31, 2025 53,887 40,901 (1,633) 85,689 14,641 3 25,375 - 40,019 Total equity attributable to owners of parent Non- controlling interests Total equity Balance as of January 1, 2025 196,030 1,127 197,157 Profit 19,498 39 19,536 Other comprehensive income 7,233 99 7,332 Comprehensive income 26,731 138 26,869 Purchase of treasury shares (60) - (60) Disposal of treasury shares 186 - 186 Dividends (4,057) (9) (4,066) Share-based payment transactions 31 - 31 Transfer to retained earnings - - - Total transactions with owners (3,899) (9) (3,908) Balance as of December 31, 2025 218,862 1,256 220,117
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23 (5) Consolidated Statement of Cash Flows (Millions of yen) Fiscal year ended December 31, 2024 Fiscal year ended December 31, 2025 Cash flows from operating activities Profit before tax 7,217 22,704 Profit before tax from discontinued operations 4,359 6,342 Depreciation and amortization 22,622 22,768 Impairment losses (reversal of impairment losses) 13,360 2,013 Interest and dividend income (1,174) (1,059) Interest expenses 3,258 3,714 Foreign exchange loss (gain) (1,318) 55 Share of loss (profit) of investments accounted for using equity method (76) (100) Loss (gain) on sale and retirement of property, plant and equipment, and intangible assets (1,266) (354) Decrease (increase) in trade and other receivables (1,360) 4,624 Decrease (increase) in inventories 1,441 (880) Increase (decrease) in trade and other payables (1,493) (1,243) Increase (decrease) in accrued alcohol tax 1,438 (519) Increase or decrease in retirement benefit asset or liability (1,467) (1,848) Other (1,366) 3,623 Subtotal 44,174 59,839 Interest and dividends received 1,320 1,043 Interest paid (3,197) (3,419) Income taxes refund (paid) (6,188) (12,870) Net cash provided by (used in) operating activities 36,109 44,592 Cash flows from investing activities Purchase of property, plant and equipment (17,671) (11,941) Proceeds from sale of property, plant and equipment 5,630 2,055 Purchase of investment property (17,490) (3,667) Proceeds from sale of investment property 1,002 - Purchase of intangible assets (1,797) (1,405) Purchase of investment securities (786) (5,500) Proceeds from sale of investment securities 20,569 8,990 Proceeds from redemption of investment securities 1,702 8,226 Incomes from refund in capital of subsidiaries and associates - 810 Proceeds from sale of businesses 1,088 - Payments for loans receivable (167) (48) Collection of loans receivable 52 52 Proceeds from sale of shares of subsidiaries resulting in change in scope of consolidation 2,986 410 Other (955) (955) Net cash provided by (used in) investing activities (5,836) (2,972)
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24 (Millions of yen) Fiscal year ended December 31, 2024 Fiscal year ended December 31, 2025 Cash flows from financing activities Net increase (decrease) in short-term borrowings 7,079 1,063 Net increase (decrease) in commercial papers (8,000) (1,000) Proceeds from long-term borrowings 569 1,000 Repayments of long-term borrowings (17,376) (15,507) Redemption of bonds - (20,000) Dividends paid (3,667) (4,055) Repayments of lease liabilities (4,015) (3,877) Purchase of treasury shares (21) (60) Other 58 161 Net cash provided by (used in) financing activities (25,372) (42,274) Effect of exchange rate changes on cash and cash equivalents 2,035 (313) Net increase (decrease) in cash and cash equivalents 6,936 (968) Cash and cash equivalents at beginning of period 17,204 24,140 Cash and cash equivalents included in assets of disposal groups classified as held for sale - (813) Cash and cash equivalents at end of period 24,140 22,360
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25 (6) Notes to the Consolidated Financial Statements (Notes on the Going-concern Assumption) Not applicable (Reporting entity) Sapporo Holdings Limited (the "Company") is a stock company located in Japan. Both its registered head office and principal business address are located in Shibuya-ku, Tokyo. The Company's consolidated financial statements, with a year-end date of December 31, 2024, consist of the Company and its subsidiaries (collectively the "Group"), as well as the Company's interest in its affiliates. The Group's business and key activities are described in (Segment Information). (Basis of Creation) (a) Compliance with IFRS The Group's consolidated financial statements are prepared in accordance with IFRS (International Financial Reporting Standards). The Company has applied the provisions of Article 312 of the Regulation, as it meets the requirements of "Specified Company Complying with Designated International Accounting Standards" as stipulated in Article 1-2 of the Regulation on Consolidated Financial Statements. (b) Presentation currency The Group's consolidated financial statements are presented in Japanese yen, the functional currency of the Company, and are rounded to the nearest million yen. (c) Changes in the presentation method The profit or loss related to businesses classified as discontinued operations is separately presented in the consolidated statement of profit or loss, after profit from continuing operations and after deduction of Income tax expenses. For businesses classified as discontinued operations, certain reclassifications have been made in the consolidated statement of profit or loss, consolidated cash flow statement, and related notes to the consolidated financial statements for the previous fiscal year. (Segment Information) (1) Overview of Reportable Segments The Company’s reportable segments are components of the Group for which separate financial information is available. These segments are periodically reviewed by the Board of Directors to decide on the allocation of resources and assess performance. Under its pure holding company, each operating company in its group formulates business development and strategies for the finished goods, services, and sales markets they handle, and conducts business activities accordingly. As of December 24, 2025, the Company entered into a series of agreements related to the injection of external capital to Sapporo Real Estate Co., Ltd., a subsidiary of the Company (hereinafter referred to as "the Transaction"). In light of the Transaction, the real estate business has been classified as discontinued operations. In addition, 30% of trust beneficiary rights in Yebisu Garden Place, along with Ginza Place, and part of Sapporo Garden Park will be transferred to Sapporo Breweries Limited, another wholly owned subsidiary, and will be transferred from the real estate business to the alcoholic beverages business. Accordingly, from the current fiscal year, the Company has changed its reportable segments to two segments: the Alcoholic Beverages and the Food & Beverages. The reportable segments of its group are mainly organized based on operating companies and their affiliates, and are classified by finished goods, services, and sales markets. The Alcoholic Beverages business is engaged in the manufacturing and sales of alcoholic beverages, as well as the management of restaurants of various types. The Food & Beverages business is engaged in the manufacturing and sales of food and beverages. The segment information for the previous consolidated fiscal year is disclosed based on the classification method of the reporting segments after the change in segment categories.
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26 (2) Segment Revenue and Results The revenue and performance by reporting segment of the Group are as follows. For the Year ended December 31, 2024 (Unit: Million yen) Alcoholic Beverages Food & Beverages Other Total Adjustment amount Consolidated Revenue External Revenue 394,353 117,950 69 512,373 61 512,434 Inter-segment Revenue 12,026 895 - 12,921 (12,921) - Total 406,380 118,845 69 525,294 (12,859) 512,434 Operating profit 7,298 5,210 1,107 13,614 (7,969) 5,645 (Note) Intersegment revenue is based on prevailing market prices.. For the Year ended December 31, 2025 (Unit: Million yen) Alcoholic Beverages Food & Beverages Other Total Adjustment amount Consolidated Revenue External Revenue 400,244 106,609 - 506,853 9 506,861 Inter-segment Revenue 8,819 241 - 9,060 (9,060) - Total 409,064 106,849 - 515,913 (9,051) 506,861 Operating profit 30,318 1,886 - 32,204 (7,766) 24,437 (Note) Intersegment revenue is based on prevailing market prices. The "Other" category comprises business segments that are not included in the reportable segments. Adjustment includes general corporate expenses and intercompany eliminations. General corporate expenses are general administrative expenses that do not belong to any reporting segment.
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27 (Discontinued Operations) (1) Overview of discontinued operations The Company resolved, at the meeting of its Board of Directors held on December 24, 2025, to enter into a series of transactions (collectively, the "Transactions"), including an investment by SPARK LLC ("SPARK"), which is jointly funded by PAG Investment Management Co., Ltd. and Kohlberg Kravis Roberts & Co. L.P. or funds advised or managed by their respective affiliates (collectively, the "Consortium"), in Sapporo Real Estate Development Co., Ltd. ("SRE"), a wholly owned subsidiary of the Company, and has executed the relevant agreements for such transactions. In addition, the closing of this transaction will be conducted in three stages, with the transfer of SRE's voting rights to be carried out incrementally. On the first closing date (scheduled for June 1, 2026), SPARK will acquire 51.0% of voting rights associated with SRE’s stock as a result of transactions including an investment by the Consortium and a share buyback. On the second closing date (scheduled for June 1, 2028), SPARK will acquire an additional 29.0% of voting rights associated with SRE’s stock. Then, on the third closing date (scheduled for June 1, 2029), the Company plans to transfer all the remaining voting rights in SRE that it holds at that point to SPARK. Furthermore, ahead of the Transactions, the Company plans to transfer 30% of SRE’s trust beneficiary rights in Yebisu Garden Place, along with GINZA PLACE, and part of Sapporo Garden Park to Sapporo Breweries Limited, another wholly owned subsidiary. Based on the above, the Real Estate business, excluding 30% of the trust beneficial rights of Yebisu Garden Place ,GINZA PLACE and part of Sapporo Garden Park, has been classified as discontinued operations, and profit from discontinued operations is presented separately from continuing operations in the consolidated statement of income. Note that, with some exceptions, assets and liabilities held by the Real Estate business are classified as assets held for sale and liabilities directly associated with assets held for sale. (2) Profit and loss from discontinued operations (Unit: Million yen) Fiscal year ended December 31,2024 Fiscal year ended December 31,2025 Discontinued operations Revenue 17,749 20,903 Expense 13,390 14,561 Profit before tax from discontinued operations 4,359 6,342 Income tax expenses (651) 1,897 Non-profit from continuing operations 5,010 4,444 (3) Profit for the period attributable to (Unit: Million yen) Fiscal year ended December 31,2024 Fiscal year ended December 31,2025 Owners of the parent company Profit from continuing operations 2,704 15,053 Non-profit from continuing operations 5,010 4,444 Total 7,714 19,498 Noncontrolling interests Profit from continuing operations 57 39 Non-profit from continuing operations - - Total 57 39
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28 (Per share data) The basis for calculating basic earnings per share and diluted earnings per share is as follows. Fiscal year ended December 31,2024 Fiscal year ended December 31,2025 Profit attributable to owners of the parent (million yen) 7,714 19,498 Continuing operations 2,704 15,053 Discontinued operations 5,010 4,444 Net income adjustment (million yen) - - Net income (million yen) used for calculation of diluted profit per share 7,714 19,498 Continuing operations 2,704 15,053 Discontinued operations 5,010 4,444 Average number of common shares outstanding during the period (thousand shares) 389,585 389,787 Effect of potentially dilutive common stock (thousand shares) Stock Benefit Trust (BBT) 260 240 Average number of diluted shares outstanding during the period (thousand shares) 389,845 390,027 Basic earnings per share (Yen) 19.80 50.02 Continuing operations 6.94 38.62 Discontinued operations 12.86 11.40 Diluted earnings per share 19.79 49.99 Continuing operations 6.94 38.60 Discontinued operations 12.85 11.39 Notes: 1. The Company conducted a five-for-one stock split of its common stock effective January 1, 2026. "Equity attributable to owners of parent per share" and "Basic earnings per share" have been calculated as if the stock split had been implemented at the beginning of the previous consolidated fiscal year. 2. The shares of the Company held by Custody Bank of Japan, Ltd. (Trust E Account) under the Stock Benefit Trust (BBT) system are included in treasury shares to be deducted in the calculation of the average number of common shares outstanding during the period for the computation of earnings per share attributable to owners of the Company. The average number of such treasury shares deducted for the calculation of earnings per share attributable to owners of the Company was 530,975 shares in the previous consolidated fiscal year and 336,975 shares in the current consolidated fiscal year.
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- 29 - (Significant Subsequent Events) (Matters Concerning Change in Reportable Segments, etc.) The Company will change its reportable segments starting from the financial results for the first quarter of the fiscal year ending December 31, 2026. As described in “Notice Concerning Absorption-Type Merger (Simplified, Short-form Merger) of Wholly- Owned Subsidiary with Change of Trade Name and Partial Amendments to Articles of Incorporation” published on December 24, 2025, the Company will transition to a business holding company structure as the optimal organizational format to support sustainable growth, change its business portfolio management to the Domestic Business and the Overseas Business based on the management approach, and work to enhance capital profitability and reduction in the cost of capital to strategically promote the increase of corporate value. The Company will change its former reportable segments of Alcoholic Beverages and Food & Beverages to the Domestic Business and the Overseas Business. After the change, the Domestic Business reportable segment will consist of Alcoholic Beverages (Japan), Restaurants, and Food & Beverages (Japan), and the Overseas Business reportable segment will consist of Alcoholic Beverages (Overseas) and Overseas Beverages. In addition, the export business of Sapporo Breweries Limited (APAC and Europe), which was classified under the former Alcoholic Beverages reportable segment, will be included under the Overseas Business segment. Moreover, as described in “Notice Concerning Revisions to Full-Year Earnings Forecast and Changes in Reportable Segments,” published on December 24, 2025, the Company classified the Real Estate Business as a discontinued operation and excluded it from its reportable segments in the fiscal year ended December 31, 2025 in conjunction with the execution of the agreement on a series of transactions related to the external capital injection into its wholly owned subsidiary, Sapporo Real Estate Co., Ltd. Reportable segments Reportable segments Main business company Alcoholic Beverages Domestic Business Alcoholic beverages (Japan) Alcoholic beverages (Japan) Sapporo Breweries Limited Alcoholic beverages (Overseas) Restaurants SAPPORO LION, Inc. Restaurants Food & Beverages (Japan) POKKA SAPPORO Food & Beverage Ltd. Food & Soft Drinks Overseas Business Food & Soft Drinks (Japan) Alcoholic beverages (Overseas) SLEEMAN BREWERIES LTD. Overseas Soft Drinks Overseas Beverages POKKA PTE. LTD. *Change to Reportable Segments The export business of Sapporo Breweries Limited (APAC and Europe), which was classified under the former Alcoholic Beverages reportable segment will be included under the Overseas Business segment. Notes: 1. The wording of “Food & Soft Drinks (Japan)” changed to “Food & Beverages (Japan)”. 2. The wording of “Overseas Soft Drinks” changed to “Overseas Beverages”.
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- 30 - (Stock Split and Partial Amendment to Articles of Incorporation in Conjunction with Stock Split) At its meeting held on November 12, 2025, the Company’s Board of Directors resolved to carry out a stock split and make partial amendments to its Articles of Incorporation in connection with the stock split. 1. Regarding the Stock Split (1) Purpose of the Stock Split The purpose of the stock split is to boost liquidity and further expand the investor base by reducing the minimum investment unit of the Company’s stock and improving the investment environment. (2) Method of the Stock Split The Company will conduct a 5-for-1 stock split for each share of common stock held by shareholders of record as of December 31, 2025. (3) Increase in number of shares due to the split i) Total number of shares outstanding before the stock split 78,794,298 shares ii) Increase in number of shares due to the split 315,177,192 shares iii) Total number of shares outstanding after the split 393,971,490 shares iv) Total number of authorized shares after the split 1,000,000,000 shares (4) Schedule for the split i) Date of public notice for setting the record date Tuesday, December 16, 2025 ii) Record date Wednesday, December 31, 2025 iii) Effective date Thursday, January 1, 2026 (5) Change in the Amount of Share Capital There will be no change in the amount of share capital as a result of this stock split. 2. Partial Amendment to the Articles of Incorporation (1) Reason for amendments to the Articles of Incorporation In accordance with the stock split, the Company's Articles of Incorporation will be partially amended, effective January 1, 2026, by resolution of the Board of Directors, pursuant to Article 184, Paragraph 2 of the Companies Act. (2) Details of the amendments to the Articles of Incorporation The details of the amendments are as follows. (Amendments are underlined.) Before amendment After amendment (Total number of authorized shares) Article 5. The total number of authorized shares of the Company shall be two hundred million (200,000,000) shares. (Total number of authorized shares) Article 5. The total number of authorized shares of the Company shall be one billion (1,000,000,000) shares. (3) Schedule for amending the Articles of Incorporation Date of resolution by the Board of Directors: Wednesday, November 12, 2025 Effective date: Thursday, January 1, 2026