February 20, 2017
To Whom It May Concern:
Company:
Coca-Cola West Company, Limited
Representative: Representative Director and President
Tamio Yoshimatsu(TSE/FSE Code 2579)
Inquiries:
Director/Senior Executive Officer,
Planning & Finance Division
Yasunori Koga
(TEL 092-641-8774)

Announcement on Reduction in the Amount of Capital Reserves that will Increase upon theShare Exchange and Transfer of the Reduced Amount to Other Capital Surplus
Coca-Cola West Company, Limited (hereinafter referred to as “CCW”) hereby announces that theBoard of Directors has resolved at its meeting held today to reduce the amount of “capitalreserves” and transfer the reduced amount to “other capital surplus” as follows. There will be noimpact on the results of operations of CCW.
1.

Purpose of the reduction in the amount of capital reserves

As announced in the press release “Announcement Regarding Proposed Integration and Share
Exchange Agreement between Coca-Cola West Co., Ltd. and Coca-Cola East Japan Co., Ltd., andShift to Holding Company Structure through Company Split, Change of Trade Name and Partial
Amendment of Articles of Incorporation of Coca-Cola West Co., Ltd.; Integrated Company to beNamed Coca-Cola Bottlers Japan Inc.” dated September 30, 2016, CCW and Coca-Cola East
Japan Co., Ltd. (hereinafter referred to as “CCEJ”) are planning to integrate their businesses
through a combination of a share exchange (hereinafter referred to as the “Share Exchange”),
under which CCW becomes a sole parent company and CCEJ becomes a wholly owned
subsidiary, and an absorption-type company split (hereinafter referred to as “Absorption-TypeCompany Split”), under which CCW is the splitting company and New CCW Establishment
Preparation Co., Ltd., a wholly owned subsidiary of CCW, is the succeeding company. In thisregard, CCW has decided to reduce the entire amount of capital reserves that will increase upon
the Share Exchange and transfer it to other capital surplus at the same time as the Share Exchange
to enable the implementation of more flexible capital policies after the business integration.
2.

Outline of the Reduction in the Amount of Capital Reserves

The amount of capital reserves will be reduced as follows on the condition that the amount ofcapital reserves of CCW will increase upon the Share Exchange.

1(1) Amount of capital reserves to be reduced
Amount of increase in capital reserves upon the Share Exchange(Note 1) In the Share Exchange, the amount of increase in stated capital of CCW shallbe 0 yen and the amount of increase in capital reserves will be separately
determined by CCW pursuant to Article 39 of the Company Accounting
Regulations of Japan. The specific amount of increase in capital reserves will
be calculated based on the market value of the shares of CCW to be delivered
as consideration for the Share Exchange (number of shares: 95,117,769(expected)).
(Note 2) The planned reduction in the amount of capital reserves is to reduce, at thesame time as the Share Exchange, capital reserves by an amount equal to theamount it will increase upon the Share Exchange. The amount of capitalreserves of CCW after the Share Exchange takes effect will, therefore, be thesame as the amount of capital reserves as of today, which is 108,166,569,280
yen.
(2) Handling of the amount of capital reserves to be reduced
The amount of capital reserves to be reduced will not be incorporated into stated capitaland will instead be transferred in whole to other capital surplus.
(3) Method of reducing the amount of capital reserves
In accordance with Article 448, paragraph (3) of the Companies Act of Japan, CCW will
reduce the amount of capital reserves based on a resolution of the Board of Directors.
3.

Schedule(1) Date of resolution of the Board of Directors:(2) Period in which creditors may make objections:(3) Effective date (expected):4.

February 20, 2017
February 28, 2017 to March 27, 2017
April 1, 2017(Same day as the effective date of theShare Exchange)

Future outlook

This reduction in the amount of capital reserves is to transfer a certain amount of capital reserves toother capital surplus and gives rise to no changes to the amount of CCW’s net assets. There will
be no impact on the result of operations of CCW.
Moreover, as described in 1. above, CCW will implement the Absorption-Type Company Split on
the condition that the Share Exchange takes effect. In connection with the Absorption-TypeCompany Split, CCW will reduce the amount of other capital surplus in accordance with theprovisions of the Company Accounting Regulations of Japan. However, there will be no impact
on the results of operations of CCW.
The specific amount of capital reserves to be reduced will be separately announced as soon as it isdetermined.
End2

In conjunction with its business integration (“Business Integration”) with Coca-Cola East Japan
Co., Ltd. (“CCEJ”), Coca-Cola West Company, Limited (“CCW”) may be required to submit
Form F-4 as registration to the U.S. Securities and Exchange Commission (“SEC”). In such a case,the prospectus and other documentation will be included as part of Form F-4. Once Form F-4 issubmitted and is made effective, the prospectus submitted as part of Form F-4 is expected to besent to CCEJ’s shareholders in the U.S., prior to the General Shareholders’ Meeting where thevoting will be held to approve the Business Integration. If Form F-4 must be submitted, the Formand prospectus will include valuable information related to both parties, the Business Integration,and other relevant data. We request that the U.S. shareholders, to which the said prospectus shallbe distributed, carefully read through Form F-4, which may be submitted to SEC with respect tothe Business Integration, the prospectus, and other documents, prior to exercising the voting rights
for the Business Integration at the General Shareholders’ Meeting. All documentation submitted toSEC with respect to the Business Integration will be disclosed free of charge on SEC’s homepage(www.sec.gov). In addition, such documentation may be sent by post upon request free of charge.
Please contact the person below if you wish to apply for the documentation to be sent by post:
Company Name: Coca-Cola West Company, Limited
Address: 7-9-66, Hakozaki, Higashi-ku, Fukuoka-shi, Fukuoka, Japan, 812-8650
Person in charge: Masakiyo Uike, Finance Department
Tel: +81-92-641-8585 Email: masakiyo-uike@ccwest.co.jp3