Issue of Annual Report 2010

Yen U.S. dollars (Note 1)
As of December 31 2010 2009 2010
Net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥319.32 ¥302.16 $3.92
19. Subsequent Events
(Appropriation of retained earnings)
On March 30, 2011, the following appropriation of retained earnings was approved at the annual general meeting of the Company’s shareholders:
Millions of yen
Thousands of
U.S. dollars (Note 1)
Cash dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥2,741 $33,659
(Acquisition of POKKA CORPORATION)
On February 10, 2011, the Board of Directors authorized the acquisition of additional shares and subsequent consolidation of POKKA
CORPORATION, an affiliate of the Company since September 30, 2009. POKKA CORPORATION became a subsidiary of the Company on March
29, 2011.
Purpose of the Share Acquisition
The Company has positioned “the creation of value in food” as one of the business domains of its New Management Framework set for realization
by 2016. The additional acquisition of shares in POKKA CORPORATION will give shape to the Company’s vision of becoming a “food value
creation group” with deep competitiveness in the alcoholic beverages, soft drinks, food and restaurant fields in Japan and overseas.
Share Acquisition Details
1. Acquired company: POKKA CORPORATION
2. Business lines and scale of acquired company
Name: POKKA CORPORATION
Business lines: Mineral water and food businesses, restaurant business, snack food business, logistics business, others
Employees: 2,473 (as of March 31, 2010)
Consolidated net sales: ¥97,121 million (for the year ended March 31, 2010)
Consolidated total assets: ¥58,527 million (as of March 31, 2010)
3. Party acquiring shares: Advantage Partners, LLB MBI Fund No. 3, others
4. Acquisition date: March 29, 2011
5. Total number of shares scheduled for acquisition: 6,401,769 shares (65.9% of issued shares)
6. Shareholding after acquisition: 86.8%
7. Acquisition price: ¥22,406 million
8. Fund procurement method: Primarily funds on hand and external borrowings, etc.
9. Future plans:
The Company will immediately establish a committee ahead of management integration to deliberate business and organizational realignment
within the Group, the management structure of the holding company, corporate name, and other matters.
(Convertible bonds with stock acquisition rights issued by a subsidiary)
The former business alliance between the Company, YK, Crescent Partners and CRPBH, a fund managed by Crescent Partners (hereinafter, “the
investors”), expired on February 10, 2011.
With the expiration of this agreement, the Company plans to buy back all shares following the conversion to stock of convertible bonds with
stock acquisition rights issued by Sapporo Beverage Co., Ltd. and held by the investors.
(Impact of the Tohoku Pacific Earthquake)
As a result of the Tohoku Pacific Earthquake on March 11, 2011, the Sendai Brewery (Natori, Miyagi Prefecture) and Chiba Brewery (Funabashi,
Chiba Prefecture) of our consolidated group company Sapporo Breweries Ltd. suffered partial damage to buildings and equipment. The earthquake
also affected some other plants of Sapporo Breweries Ltd. and of other group companies also. The amount of damage caused by the
disaster is currently being assessed, and is not yet confirmed. At this time it is difficult to estimate the impact of the earthquake on our forecast
for the year ending December 2011, for the reasons described below. We will disclose the information as soon as it can be estimated.
– It is not clear to what extent total power consumption regulations will affect our production framework.
– The cost of restoring damaged equipment and buildings to their original state has yet to be rationally estimated.
– Macroeconomic and consumption trends are unclear.
SAPPORO HOLDINGS LIMITED
56 Annual Report 2010