SAPPORO HOLDINGS LIMITED [Translation]
July 12, 2023
Company Name | Sapporo Holdings Limited |
Representative | Masaki Oga |
President and Representative Director | |
Stock Code | 2501 |
Listed on | Tokyo Stock Exchange (Prime Market) |
Sapporo Securities Exchange | |
Inquiries | Yosuke Nakamura |
Director of Corporate Planning Department | |
Tel: 81-3-5423-7407 |
Notice Regarding the Commencement of the Assignment for the Benefit of Creditors Process of a Specified
Subsidiary
ANCHOR BREWING COMPANY, LLC (hereinafter referred to as "Anchor"), a 100% consolidated subsidiary of Sapporo Holdings Limited (hereinafter referred to as the "Company"), resolved today (July 11, 2023, US time) to commence the Assignment for the Benefit of Creditors process (hereinafter referred to as the "ABC"). We inform that we also have approved Anchor's commencement of the ABC at the Board of Directors meeting held today.
Additionally, we inform you that we expect to record losses incurred due to the commencement of the ABC as other operating expenses, etc., and that this matter falls within a change in a specified subsidiary.
1. Reasons for the Commencement of theABC
In 2017, we implemented the acquisition of Anchor in order to expand our beer business in the US market.
However, Anchor was significantly affected by the impact of the novel coronavirus, and such impact was particularly prolonged in the San Francisco area. As a result, Anchor's sales have significantly decreased. Over the past several years, we implemented a variety of measures to improve the business, such as releasing new products, product renewals, and making brand investments. However, Anchor's business performance continued to be sluggish. Since it would be difficult to improve profitability in the medium to long term, Anchor decided to commence theABC.
We launched our four-year plan, "medium-term management plan (2023-26)," this year and are working to increase the corporate value through the twin pillars of "structural reforms and business growth."
We will promptly dispose of businesses that we have classified as a business to be disposed of and resolutely implement structural reforms. Meanwhile, in the US, which serves as a growth driver, we will aim to achieve further growth centering on SAPPORO PREMIUM BEER by generating synergies with STONE BREWING CO., LLC, which we acquired as a subsidiary in August last year.
2. Outline of the Subsidiary which will commence the ABC
(1) | Name | ANCHOR BREWING COMPANY, LLC |
(2) | Location | 1705 Mariposa Street' San Francisco' California' USA |
(3) | Job | Title/Name | of | President/CEO, Masashi Minami | ||||||
Representative | ||||||||||
(4) | Description | of | Beer manufacturing and sales | |||||||
Businesses | ||||||||||
(5) | Capital Amount | $106 million US | ||||||||
(6) | Date of Incorporation | March 23, 1896 | ||||||||
(7) | Equity | Holders | and | SAPPORO U.S.A., INC. | 100% | |||||
Percentage of Holding | ||||||||||
Capital | The Company owns all of the membership interests in Anchor | |||||||||
relationship | through SAPPORO U.S.A., INC. | |||||||||
Anchor's | Relationship | Personnel | One | of SAPPORO U.S.A.'s | employees serves as the | |||||
(8) | President/CEO of Anchor and four of SAPPORO U.S.A.'s | |||||||||
with the Company | relationship | |||||||||
employees also serve as other officers/directors ofAnchor. | ||||||||||
Business | Not applicable. | |||||||||
relationship | ||||||||||
(9) | Business results and financial conditions of Anchor for the last three years (Unit: USD million) | |||||||||
Fiscal year | Year ended in December | Year ended in December | Year ended in December | |||||||
2020 | 2021 | 2022 | ||||||||
Net Assets | 35 | 13 | 3 | |||||||
Total Assets | 66 | 68 | 67 | |||||||
Net Sales | 12 | 12 | 10 | |||||||
Operating Profit (Loss) | (12) | (9) | (9) | |||||||
Profit (Loss) Attributable to | ||||||||||
Owners | of | the Parent | (13) | (22) | (10) | |||||
Company | ||||||||||
3. Schedule of the Commencement of theABC
(1) | Date of resolution byAnchor | July 11, 2023 (US time) |
(2) | Date of resolution for the commencement of theABC | July 11, 2023 (US time) |
by the member of Anchor | ||
(3) | Date of resolution of the Board of Directors of the | July 12, 2023 (Japan time) |
Company | ||
(4) | Filing of the Certificate of Cancellation ofAnchor | Scheduled for July 2024 |
4. LossesArising from the Commencement of the ABC
The amount of the losses due to the commencement of the ABC is expected to be approximately JPY6 billion, and such amount is expected to be recorded as other operating expenses, etc. for the year ending in December 2023. ※At the rate of USD1=JPY140
5. Future Outlook
The amount of the losses due to the commencement of the ABC of Anchor has been taken into account in developing the plan, so there is no change in the consolidated earnings forecast for the fiscal year ending December 2023.
We will promptly inform you if any matter that should be disclosed arises in the future.
[End]
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Sapporo Holdings Limited published this content on 12 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 July 2023 08:22:06 UTC.
