Notice Regarding Gain on Transfer and Impairment Loss Recording Associated with Asset Transfer and Production System Review in U.S. Operations

Overview of Asset Transfer and Production System Review

Sapporo Holdings has resolved to transfer intellectual property rights related to the Stone brand and hospitality business assets held by its consolidated subsidiary Stone Brewing Co., LLC to a third party, aiming for sustainable growth and profitability improvement of its U.S. operations. Furthermore, the Richmond plant in the eastern U.S. will be designated as the core production site, and manufacturing at the Escondido plant in the west will be discontinued within this year to optimize the production system. This initiative aims to enhance production efficiency and reduce fixed costs.

Financial Impact and Outlook

In the second quarter of the fiscal year ending December 2026, a gain on transfer of approximately USD 23 million (about JPY 3.6 billion) will be recorded, while the book value of assets related to the ESCO plant will be reduced to recoverable value, resulting in an impairment loss of approximately USD 80 million (about JPY 12.6 billion). Certain structural reform costs are incorporated into the consolidated earnings guidance, and the impact of this matter is expected to be minor. The execution date of the transfer is planned for late May 2026.