April 3, 2015
To All Concerned Parties :Company name :Representative :Inquiries on thisreleae :Nippon Paper Industries Co., Ltd.
President &Fumio Manoshiro
Representative Director(stockcode:3863,TokyoStockExchange1stSection)
Related Business Div
Tomomi Nishimoto䋨Tel䋮(03) 6665-1004䋩

Company name :Representative :Coca-Cola West Co., Ltd.
Representative Director
Tamio Yoshimatsu
and President(stockcode:2579,TokyoStockExchange1stSection,FukuokaStockExchange)
Inquiries on this
Assistant to President
Yoshitsugu Shimahara
release :Responsible for business development
䋨Tel䋮(092)641-8774䋩The Basic Agreement on the Transfer of shares ofShikoku Coca-Cola Bottling Co., Ltd.

Nippon Paper Industries Co. >ƚĚ͘;ŚĞƌĞŝŶĂĨƚĞƌ͞EŝƉƉŽŶWĂƉĞƌ͕͟,Y͗ŚŝǇŽĚĂ-ku, Tokyo) and Coca-Cola WestŽ͕͘>ƚĚ͘;ŚĞƌĞŝŶĂĨƚĞƌ͞t͕͟,Y͗&ƵŬƵŽŬĂ-shi, Fukuoka) hereby announce that today we have concluded anbasic agreement on transaction in which Nippon Paper will transfer all of the issued common shares;ŚĞƌĞŝŶĂĨƚĞƌ ͞ƚŚĞ dƌĂŶƐĂĐƚŝŽŶ͟Ϳ of Shikoku Coca-ŽůĂ ŽƚƚůŝŶŐ Ž͕͘ >ƚĚ͘ ;ŚĞƌĞŝŶĂĨƚĞƌ ͞^ŚŝŬŽŬƵ ͕͟ ,Y͗
Takamatsu-shi, Kagawa), the consolidated subsidiary of Nippon Paper, to CCW. Nippon Paper and CCW willdevelop a consultative process aiming at entering into a final contract at the earliest feasible time.
1. Background and Objective
Both Coca-Cola bottlers, CCW and Shikoku CCBC, have established a solid position in each business area asleading companies.
Business environment surrounding CCW and Shikoku CCBC, however, is becoming more and morechallenging with changing consumer needs, budget minded consumers, change in sales channels and severe
competition.
Under those circumstances, CCW has reached a recognition that it is most important to conduct unified
management of Coca-Cola bottling business in west Japan and drive business efficiency through acquiring
share of Shikoku CCBC. When CCW and Shikoku CCBC deploy collaborative marketing activity, we will beable to strive to gain competitive advantage, improve cost structure, realize effective use of human resources,
integrate supply chain and enhance productivity. Maxiimizing those synergy effect will enable further growthand development of CCW and Shikoku CCBC and increase corporate value of both party, and thus leads to thebenefit of all stakeholders ʹ shareholders, customers and consumers.

Nippon Paper established Shikokku Inryo (later changed to Shikoku CCBC) in 1963 as part of businessdiversification program, and was listed on the 2nd section of the Osaka Stock Exchange in 1993 and listed on
the 1st section of Tokyo Stock Exchange in 2000. In 2009, Nippon Paper acquired 100% ownership of Shikoku
CCBC. Nippon Paper has been implementing measures to strengthen the management base up to today.
But considering stiffer beverage market competition, Nippon Paper realized it is of critical importance for
Shikoku CCBC to improve their business efficiency in order to maintain sustainable growth.
For Nippon Paper business as well, the Transaction will enable them to focus resource allocation on theirbusiness field, such as biochemical, health care, energy to accelerate their business sturucture shift and makea big leap forward as a global level biomas enterprize.
With those background and gole in mind, Nippon Paper and CCW have been discussing about transferring
all of Shikoku CCBC stock from Nippon Paper to CCW and both parties have reached basic agreement today tothat effect.
CCW, with the Transaction in effect, will reinforce Coca-Cola business in west Japan and continue to takeleading role in Coca-Cola System change.

2. Overview of Shikoku CCBC(㧝)

Company nameShikoku Coca-Cola Bottling Co., Ltd.

(㧞)

Location

1378 Kasuga-machi, Takamatsu-shi, Kagawa(㧟)Name and title of representative

Takahiro Maeda, Representative Director and President(㧠)Business field

Production and sale of soft drink(㧡)Capital5,576 MM JPY (as of Dec 31, 2014)(㧢)Date establishedJan 7, 1963

(㧣)

Major shareholders and shareholding ratio

Nippon Paper Industries Co.

(㧤)

Most recent business results (consolidated)
FY ending Dec

2012

100 %20132014

Consolidated net asset36,433 MM JPY

35,974 MM JPY

35,675 MM JPY

Consolidated total asset

41,368 MM JPY

41,619 MM JPY

40,076 MM JPY

1,557.4 JPY

1,537.8 JPY

1,525.0 JPY

48,984 MM JPY

48,838 MM JPY

46,999 MM JPY

Consolidated operating income

289 MM JPY

326 MM JPY

ᇞ 115 MM JPY

Consolidated ordinary income

538 MM JPY

604 MM JPY

151 MM JPY

Consolidated net income

150 MM JPY

ᇞ 197 MM JPY

40 MM JPY

Consolidated earnings per share

6.4 JPYᇞ 8.4 JPY

1.8 JPY

Dividends per share

15.8 JPY

15.8 JPY

15.8 JPYConsolidated book value per share
Consolidated revenue

Note: Consolidated results of (8) are still unaudited

3. Overview of Nippon Paper
(㧝)
(㧞)
(㧟)

Company nameLocation
Name and title ofrepresentative(㧠)Business field

(㧡)
(㧢)
(㧣)
(㧤)

CapitalDate established
Consolidated net asset
Consolidated total asset(㧥)

Major shareholders andshareholding ratio(as of Sep 30, 2014)(10)

Relationship with
Shikoku CCBC

Nippon Paper Industries Co.
1-4-1 Oji, Kita-ku, Tokyo
Fumio Manoshiro, President & Representative Director
Production and distribution of newsprint, printing paper, business communication
paper, industrial paper and pulp
104,873 MM JPY (as of Dec 31, 2014)
August 1, 1949
469,249 MM JPY (as of Dec 31, 2014)
1,512,342 MM JPY (as of Dec 31, 2014)
Japan Trustee Services Bank, Ltd. (trust account)
7.12 %The Master Trust Bank of Japan, Ltd. (trust account)4.63 %
Mizuho Bank, Ltd.‫ޔ‬3.73 %
Rengo Co., Ltd.
2.88 %
Nippon Paper Employee Stock Ownership2.83 %
Capital
As of today, Nippon Paper own 100% of issued stock of Shikoku
relationshipCCBC
2 Nippon Paper employees hold the posts of auditors inPersonnel
Shikoku CCBC and 4 other employees are on loan to Shikoku
relationship
CCBC group companies
Business
Nippon Paper has a loan from Shikoku CCBC as part of CMS
relationshipprogram
Related party
Shikoku CCBC is a consolidated subsidiary of Nippon Paper, andrelationshiptherefore a Related Party of Nippon Paper

4. Overview of CCW
(㧝)
(㧞)
(㧟)
(㧠)
(㧡)
(㧢)
(㧣)
(㧤)

(㧥)

(10)

Company nameLocation
Name and title ofrepresentative
Business field
CapitalDate established
Consolidated net asset
Consolidated total asset
Major shareholders andshareholding ratio(as of Dec 31, 2014)

Relationship withShikoku CCBC

Coca-Cola West Co., Ltd.
7-9-66 Hakozaki, Higashi-ku, Fukuoka
Tamio Yoshimatsu, Representative Director and President

Production and sale of soft drinks and foods
15,231 MM JPY (as of Dec 31, 2014)
Dec 20, 1960
254,150 MM JPY (as of Dec 31, 2014)
337,260 MM JPY (as of Dec 31, 2014)
RICOH Company, Ltd.
New Technology Development Foundation
Satsuma Shuzo Co., Ltd.
MCA Holdings Co., Ltd.
Japan Trustee Service Bank (trust account)

15.37
4.76
4.23
3.97
3.79%%%%%

Capitalrelationship

As of today, Shikoku CCBC hold 8,461 CCW shares (0.01% oftotal share issued (111,125,714㧕
㧕Personnel
relationshipdoes not fall under the category of related parties

Businessrelationship

CCW has business relationship with shikoku through the salesof products each other

Related party
relationshipdoes not fall under the category of related parties

5. Future steps
Nippon Paper and CCW will continue close talk so that we can conclude the final contract in the end of April(TBD). Transfer price and the date of the Transaction shall be announced as soon as they are determined.
EOD