[Translation]
February 12, 2014

Company name

Sapporo Holdings Limited

Representative

Tsutomu Kamijo

President and Representative Director

Securities code

2501

Listed on

Tokyo Stock Exchange

Sapporo Securities Exchange

Inquiries

Tatsuya Komatsu

Director of Corporate Communications

Department

Tel.: +81 3-5423-7407

Notice on the Decision to Launch a Real Estate Redevelopment by a Consolidated Subsidiary and Resulting Extraordinary Loss

Sapporo Holdings Limited ("the Company") hereby announces that at the meeting of its Board of Directors held today it resolved to launch a real estate redevelopment owned by consolidated subsidiary Sapporo Real Estate Co., Ltd. As a result, the Company is expected to post an extraordinary loss as noted below.
1. Description of real estate redevelopment and extraordinary loss
The Company decided today to launch the redevelopment of Sapporo Ginza Building (Address: 8-1, Ginza 5-chome, Chuo-ku, Tokyo), which is owned by Sapporo Real Estate Co., Ltd., a consolidated subsidiary. As a result, the Company is expected to post an extraordinary loss amounting to ¥2,600 million, which consists of expenses for demolition of the existing building, losses on retirement, marketing-related expenses and others. The loss is expected to be recorded under extraordinary losses for the fiscal year ending December 31, 2014.
Outline of redevelopment:
Size (planned): 12 stories above ground and two below
Total floor area: approximately 7,082 m 2
Usage (planned): Commercial complex
Demolition of existing building: To start in spring of 2014 (planned) Start of construction of new building: Spring of 2015 (planned) Completion of construction of new building: First half of 2016 (planned)
2. Effects on consolidated financial results
The aforementioned extraordinary loss is reflected in the consolidated earnings forecast for the full fiscal year ending December 31, 2014, released today.
[End of document]

distributed by