Notice Regarding Absorption-Type Merger of a Wholly Owned Subsidiary (Simplified and Short-Form Merger), Trade Name Change, and Partial Amendment of Articles of Incorporation

Overview of the Corporate Restructuring

Sapporo Holdings Limited will execute an absorption-type merger with its wholly owned subsidiary, Sapporo Breweries Limited, as the surviving company, and Sapporo Breweries Limited as the dissolved company effective July 1, 2026. This merger qualifies as a simplified merger under Article 796, Paragraph 2 of the Companies Act for our company, and as a short-form merger under Article 784, Paragraph 1 for Sapporo Breweries Limited. The merger agreement was signed on December 24, 2025, and the proposal for partial amendment of the Articles of Incorporation, including the trade name change, will be submitted to the Annual General Meeting of Shareholders scheduled for March 2026. There will be no allocation of shares or other monetary consideration in connection with the merger.

Purpose and Background of the Restructuring

The Sapporo Group transitioned to a pure holding company structure in July 2003, promoting autonomous and speedy management and profitability improvement in each business. In light of changes in domestic and international social and market environments, and to realize sustainable growth marking its 150th anniversary in 2026, the group has determined that further profitability improvement and concentration of dispersed management resources are necessary. Under the new structure, the group will shift to a business holding company system focusing its management resources on the core domestic and overseas alcoholic beverage businesses and growth areas, aiming to enhance management efficiency, strengthen governance, and accelerate management speed. The group will also continue investing in human capital and strengthen talent development domestically and internationally.

Impact on Shareholders and Investors

Since the merger is with a wholly owned subsidiary, the impact on the Group’s consolidated financial results is expected to be minimal. There will be no share allocation due to the merger, and no change to the capital structure. Following the trade name change, the company will transition from a pure holding company to a business holding company, smoothly inheriting the business activities of Sapporo Breweries Limited, the group’s core. The effective date is contingent upon approval of the partial amendment of the Articles of Incorporation at the Annual General Meeting of Shareholders in March 2026.