3D Investment Partners Issues Open Letter to Sapporo Shareholders

Highlights Company�s Long-Term Underperformance, Disappointing Medium-Term Plan and Inadequate Board Composition

We welcome your opinions as we continue to engage in constructive dialogue with Sapporo’s Board and management team to enhance corporate value for all shareholders

Invites Shareholders to Share with 3D Their Perspectives on Sapporo’s Strategy, Capital Allocation, Business Configuration, Governance and Opportunities

TOKYO–(BUSINESS WIRE)–3D Investment Partners Pte. Ltd. (together with the funds it manages, “3D”), one of Sapporo’s largest shareholders, today sent an open letter to shareholders of Sapporo Holdings Limited (“Sapporo” or the “Company”) (2501.T).

In the letter, 3D notes that Sapporo has seriously undermanaged its potential and failed to create corporate value. Especially, Sapporo’s management has allowed brand value to dissipate for many years. Sapporo’s Medium-Term Management Plan fails to address these issues and instead seeks to divert attention from Sapporo’s long-running failure to capitalize on its iconic alcoholic beverage brands by repositioning the Company’s real estate development activities as a “core” business.

We believe that Sapporo’s real estate business has structural problems that allow management to be lax and neglect the underperformance of the alcoholic beverage business.

3D does not believe Sapporo or its stakeholders should be satisfied with the continued poor performance of the alcoholic beverages business, nor should Sapporo focus on real estate simply because the current management has been unable to fix Sapporo’s ailing alcoholic beverages business.

Furthermore, we are concerned that Sapporo’s Board is ill-suited to the task of addressing Sapporo’s challenges and opportunities.

In the letter, 3D asks for shareholders to share their perspectives on Sapporo so that 3D may continue to engage in constructive dialogue with the Company to drive change and create corporate value.

The full letter link:

https://www.3dipartners.com/engagement/letter-to-sapporo-shareholders-en.pdf

About 3D Investment Partners Pte.

3D Investment Partners Pte. Ltd. is an independent Singapore-based Japan focused value investing fund manager founded in 2015. 3D Investment Partners Pte. Ltd. focuses on partnering with managements who share its investment philosophy of medium- to long-term value creation through compound capital growth and a common objective of achieving long-term returns.

Disclaimer

This press release is provided for informational purposes only and does not constitute an offer to purchase or sell any security or investment product, nor does it constitute professional or investment advice. This press release should not be relied on by any person for any purpose and is not, and should not be construed as investment, financial, legal, tax or other advice.

3D Investment Partners Pte. Ltd. and its affiliates and their related persons (“3DIP”) believe that current market price of Sapporo does not reflect its intrinsic value. 3DIP acquired beneficially and/or economic interest based on its own idea that Sapporo securities have been undervalued and provides attractive investment opportunity and may in the future beneficially own and/or have an economic interest in, Sapporo securities. 3DIP intends to review its investments in the Sapporo on a continuing basis and, depending upon various factors including, without limitation, the Sapporo’s financial position and strategic direction, the outcome of any discussions with Sapporo, overall market conditions, other investment opportunities available to 3DIP, and the availability of Sapporo securities at prices that would make the purchase or sale of Sapporo securities desirable, 3DIP may, from time to time (in the open market or in private transactions), buy, sell, cover, hedge, or otherwise change the form or substance of any of its investments (including the investment in Sapporo securities) to any degree in any manner permitted by any applicable law, and expressly disclaims any obligation to notify others of any such changes.

3DIP provides no representation or warranty, either expressed or implied, in relation to the accuracy, completeness, or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets, or developments referred to herein. 3DIP expressly disclaims any responsibility or liability for any loss howsoever arising from any use of, or reliance on, this press release or its contents as a whole or in part by any person, or otherwise howsoever arising in connection with this press release. 3DIP hereby expressly disclaims any obligation to update or provide additional information regarding the contents of this press release or to correct any inaccuracies in the information contained in this press release.

3DIP disclaims any intention or agreement to be treated as a joint holder (kyodo hoyu sha) under the Financial Instruments and Exchange Act of Japan, a closely related party (missetsu kankei sha) under the Foreign Exchange and Foreign Trade Act with other shareholders, or receiving any power or permission to represent other shareholders in relation to the exercise of their voting rights, and has no intention to solicit, encourage, induce or require any person to cause other shareholders to represent such voting rights.

3DIP does not have the intention to make a proposal, directly or through other shareholders of Sapporo, to transfer or abolish the business or asset of Sapporo and/or Sapporo group companies at the general shareholders meeting of Sapporo. 3DIP does not have the intention and purpose to engage in any conduct which constricts the continuing and stable implementation of business of Sapporo and/or Sapporo Holdings group companies.

This press release may include content or quotes from news coverage or other third party public sources (“Third Party Materials”). Permission to quote from Third Party Materials in this press release may neither have been sought nor obtained. The content of the Third Party Materials has not been independently verified by 3DIP and does not necessarily represent the views of 3DIP. The authors and/or publishers of the Third Party Materials are independent of, and may have different views to 3DIP. The quoting Third Party Materials on this press release does not imply that 3DIP endorses or concurs with any part of the content of the Third Party Materials or that any of the authors or publishers of the Third Party Materials endorses or concurs with any views which have been expressed by 3DIP on the relevant subject matter. The Third Party Materials may not be representative of all relevant news coverage or views expressed by other third parties on the stated issues.

In respect of information that has been prepared by 3DIP (and not otherwise attributed to any other party) and which appear in the English language version of this press release, in the event of any inconsistency between the English language version and the Japanese language version of this press release, the meaning of the Japanese language version shall prevail unless otherwise expressly indicated.

Contacts

KRIK (PR Agent)

Koshida: +81-070-8793-3990

Sugiyama: +81-070-8793-3989