This document is a summary translation of the Japanese language original version. In the event of any discrepancy, errors and/or
omissions, the Japanese language version shall prevail.

Consolidated Financial Summary for
the Third Quarter Ended September 30, 2018 (Japanese Standard)
November 9, 2018
Listed company name: Coca-Cola Bottlers Japan Holdings Inc.
Code number: 2579
Representative: Representative Director & President
Contact: Head of Controllers Senior Group, Finance
Expected date of quarterly report submission: November 13, 2018
FY 2018 3Q supplementary information: Yes
FY 2018 3Q earnings presentation: Yes

Listed stock exchanges: Tokyo and Fukuoka
URL: https://en.ccbj-holdings.com/
Name: Tamio Yoshimatsu
Name: Masakiyo Uike
Phone: +81-3-6896-1707
Expected date of the dividend payments: －(Fractions of one million yen are rounded down)

1. Consolidated financial results for the 3rd quarter 2018 (from January 1, 2018 to September 30, 2018)(Percentages indicate changes over the same period in the prior fiscal year)(1) Consolidated financial results
Net revenues
3rd quarter 2018
3rd quarter 2017

Operating income

million yen%

million yen%

741,254645,08814.9
82.4

32,016
38,606(17.1)
102.9

Note: Comprehensive income
3Q 2018: 14,199 million yen (46.8 %)

yen

yen

71.83
143.17－－

Total assets
As of

%

million yen%

31,196 (17.6)
37,876 106.7

13,936
23,797(41.4)
123.9

Diluted earnings
per share(2) Consolidated financial position

3rd quarter 2018
Full year 2017

million yen

3Q 2017: 26,707 million yen 228.5 %Earnings per
share
3rd quarter 2018
3rd quarter 2017

Net profit attributable toshareholders of parent

Ordinary income

Net assets

Net assets (excl. noncontrolling interests) tototal assets

million yen

million yen%

835,541
883,918

576,548
627,48569.0
70.9

Reference: Net assets (excl. non-controlling interests)
3Q 2018: 576,107 million yen
End of 2017: 627,058 million yen

2. Dividends(Record date)

End of 1Q

Year ended

Full year 2017
Full year 2018
Full year 2018 (forecast)End of 2Q

Dividends per share
End of 3Q
Year-end

Annual

yen

yen

yen

yen

yen

－
－

22.00
25.00

－
－

22.00

44.00

25.00

50.00

Note: Revisions to the cash dividends forecasts most recently announced: None

3. Forecast of consolidated financial results 2018 (from January 1, 2018 to December 31, 2018)(Percentages indicate changes over the same period in the prior fiscal year)

Operating income

Ordinary income

Net profit
attributable toshareholders ofparent%million yen%

million yen%

million yen%

Yen

965,300 10.6

27,000(33.5)

25,200(36.8)

9,000(64.3)

46.77

Net revenues
million yen

Full year 2018

Note: Revisions to the forecasts of consolidated financial results most recently announced: None

Earnings
per shareNotes(1) Changes in significant subsidiaries during the current period: None(2) Application of special accounting in preparing the quarterly consolidated financial statement: None(3) Changes in accounting policies, changes in accounting estimates, and restatement of priorperiod financial statements
1) Changes in accounting policies due to revisions to accounting standards: None2) Changes other than those in 1) above: None3) Changes in accounting estimates: None4) Restatement of prior period financial statements: None(4) Number of outstanding shares (common shares)
1) Number of outstanding shares at the end of period (including treasury stock):3Q 2018: 206,268,593 shares
FY 2017: 206,268,593 shares
2) Number of treasury stock at the end of period:
3Q 2018: 19,095,922 shares
FY 2017: 2,015,532 shares
3) Average number of outstanding shares during the period (nine months):
3Q 2018: 194,004,590 shares
3Q 2017: 166,211,884 shares* These Consolidated Financial Results are not subject to quarterly review procedures conducted by certified public
accountant or audit firm.
* Explanation regarding appropriate use of the forecast, other special instructions
Figures in the above forecast are based on information available to management at the time of announcement.
Due to number of inherent uncertainties in the forecast, actual results may differ materially from theforecast. Furthermore, please refer to “1. Qualitative Information on the Financial Summary for this Quarter(3) Information on the Future Outlook, Including Forecast of Consolidated Financial Results” on page 4 formatters relating to performance forecasts.

Table of contents
Page
Attachment
1.

Qualitative Information on the Financial Summary for this Quarter(1) Details of Consolidated Financial Results ........................................................................................................ 2(2) Details of Consolidated Financial Position....................................................................................................... 4(3) Information on the Future Outlook, Such as Forecast of Consolidated Financial Results .......................... 4

2.

Quarterly Consolidated Financial Statements and Main Notes(1) Quarterly Consolidated Balance Sheets ............................................................................................................ 5(2) Quarterly Consolidated Statements of Income and Comprehensive Income .................................................... 7
Quarterly Consolidated Statements of Income ................................................................................................ 7
Quarterly Consolidated Statements of Comprehensive Income ..................................................................... 8(3) Notes to Quarterly Consolidated Financial Statements .................................................................................... 9(Notes Relating to Assumptions for the Going Concern) ............................................................................... 9(Notes for Case Where Shareholders’ Equity underwent Significant Changes in Value) .............................. 9(Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statement) ............ 9(Segment Information) .................................................................................................................................... 9

1

1. Qualitative Information on the Financial Summary for this Quarter(1) Details of Consolidated Financial Results
Coca-Cola Bottlers Japan Holdings Inc. (“CCBJH” or the “Company”) announced year-to-date results as of third
quarter of the fiscal year ending on December 31, 2018, (January 1, 2018 to September 30, 2018). Tamio Yoshimatsu,
president of CCBJH said, “2018 has been a tough year for Coca-Cola Bottlers Japan. While it will take some time toget back on track after the flooding in Western Japan, we are making necessary investments and we remain committed
to executing our strategy to position this company for longer-term sustainable growth ”.
In the year-to-date period, total nonalcoholic ready-to-drink (NARTD) beverage industry volume performance is
expected to be positive, supported by a record hot summer which helped to offset the negative impact of various
natural disasters, such as earthquakes and typhoons. The health food and cosmetics industries continue to grow,driven by demand from health-conscious consumers and inbound tourism, while the competitive environment has
been marked by successive product launches by various industry players to meet growing consumer demand.
In the case of CCBJH, the heavy rain and flooding experienced in Western Japan in July had a severe impact on ouroperations in the region. The Hongo manufacturing plant and adjacent warehouse and distribution center of our
subsidiary, Coca-Cola Bottlers Japan Inc., located in Mihara City, Hiroshima Prefecture, experienced substantial
flooding due to the heavy rains in July, with equipment and finished goods inventory were damaged. In addition,some other facilities and sales centers in the region, as well as cold drink equipment and vehicles were damaged in theflooding, and local distribution infrastructure was impacted. CCBJH announced revised full-year earnings guidancereflecting the impact of the damage as well as underlying business trends on October 10, 2018.
CCBJH’s year-to-date results are summarized as follows. In addition to this qualitative information section, pleasealso see the supplemental earnings presentation material posted on our Company IR website (https://en.ccbjholdings.com/ir/library/presentation.php), which will be used for the earnings presentation and audio webcast on
Monday, November 12, 2018 at 1:30 p.m. (JST).
Highlights
・ Revised full-year forecast reflecting the impact of the flood damage and underlying business trends. Reported
extraordinary loss of 7.9 billion yen due to natural disaster.
・ Year-to-date pro-forma beverage volume decreased 2% versus prior year, driven by loss of manufacturing
capacity and constrained distribution as we source product supply from other supply points nationwide, as well
as some supply restrictions due to surge in demand for newly-launched aseptic products.
・ Year-to-date reported net revenue increased 15% versus prior year due to the April 1, 2017 business integration.
Net revenue decreased 3% on a pro-forma basis, primarily driven by the volume decline and negative channel
and package mix.
・ Year-to-date reported operating income decreased 17% versus prior year driven by increased logistics expenses
and continued negative channel and package mix as well as an increase of goodwill amortization from thecreation of CCBJH. Pro-forma operating income decreased 20% driven by lower revenue on top of reported
results
・ Continued focus on a clear financial framework for value creation. Announced new 25 billion yen sharebuyback program in addition to repurchase of 8.28% of total outstanding shares in April
・ Recovery of manufacturing capacity in Chugoku area and expansion of capacity to meet increasing consumer
demand nationwide are a priority. We are progressively expanding manufacturing capacity, including
relocation and reconstruction of the Hongo plant, to resume operation by Spring 2020.
*Pro-forma: Assuming the business integration of Coca-Cola West Co., Ltd. (CCW) and Coca-Cola East Japan
Co., Ltd. (CCEJ) from January 2017.

2

Review of Results
Reported Results
Year-to-date Q3 (January to September)
In Million JPY

2017

2018

YoY

Net Revenue

645,088741,254+14.9%

Operating Income

38,60632,016-17.1%Net Income Attributable to Owners of Parent

23,797

13,936-41.4%*2017 results are consolidated results of former CCW in the first quarter, and integrated results of CCBJH from
April 1, 2017 to December 31, 2017.
Third-quarter year-to-date reported consolidated net revenue was 741,254 million yen, an increase of 96,165 million
yen, or 15% compared to the prior-year period, and consolidated net revenue of the beverage business increased
97,263 million yen to 720,100 million yen (up 16%) year-on-year, primarily due to the business integration of CCW
and CCEJ effective April 1, 2017. Consolidated net revenues of the healthcare & skincare business fell by 1,097
million yen to 21,153 million yen (down 5%) year-on-year, as growth of newly-launched products was unable to offset
weakness of existing product performance due to increased competition, etc.
Third-quarter year-to-date reported operating income was 32,016 million yen, a decrease of 6,589 million or 17%
year-on-year. Operating income of the beverage business decreased 6,892 million yen, or 19% year-on-year to 29,448
million yen, mainly driven by disruptions to product supply caused by the heavy rain in Western Japan as well as some
supply constraints due to a surge in demand of newly-launched aseptic products. In addition, continued negative
channel and package mix, as well as goodwill amortization related to the business integration, impacted operating
income during the period. Operating income in the healthcare & skincare business was 2,567 million yen, an increaseof 302 million yen or 13% year-on-year, as we continued a strong focus on operating efficiency in sales promotion, etc.
Year-to-date net income attributable to owners of parent was 13,936 million yen, a decrease of 9,861 million yen, or
41% versus prior year, mainly driven by 7,945 million yen in extraordinary loss due to natural disaster.
<Reference>
Pro forma Results
Year-to-date Q3 (January to September)
In Million JPY

2017

2018

YoY

Net Revenue

764,029

741,254-3%

Operating Income

40,13132,016-20%

Net Income (Loss) Attributable to Owners of Parent

24,38913,936-43%

Sales volume of beverage business (Million cases)

403

395

-2％

* Sales volume of beverage business does not include alcoholic beverage volume
Pro-forma net revenue, assuming the business integration of CCW and CCEJ from January 2017, decreased JPY
22,774 million, or 3% year on year. Due to the loss of production capacity at the Hongo plant and related supply
constraints primarily in the third quarter after the July flooding, together with ongoing negative channel and package
mix trends, sales volume and revenue for the beverage business declined 2% and 3%, respectively, in the year-to-date
period. Pro-forma operating income decreased 8,115 million yen, or 20%, due to the revenue decline as well as higher
transportation and logistics costs due to alternate product sourcing, negative channel and package mix, higher direct
marketing expenses (DME) and goodwill amortization resulting from the business integration in April 2017. Thirdquarter year-to-date pro-forma net income attributable to owners of parent decreased JPY 10,453 million or 43% year
on year, mainly driven by 7.9 billion yen in extraordinary loss due to natural disaster.

3

Pro-forma beverage volume performance by channel and category
By channel, volume grew 2% in the drug & discounter channel and was 1% versus prior year in the convenience store
channel, with new product launches contributing to growth. The supermarket channel, non-sugar tea, sparkling
beverages and coffee volumes grew, but the channel volume slightly declined versus prior year as we rationalized
some SKUs and asked to pull back on “chirashi” promotional activities to customers in the third quarter. The vending
channel volume declined 8% as the channel was primarily impacted by supply constraints and prioritizing customer
relationship in third quarter.
By category, sparkling beverage volume grew 3% and non-sugar tea volume was even. Coffee, sports and water
categories volume decreased 5%, 4% and 11% versus prior year, respectively. Coffee category volume declined due tocontinued weakness in can and bottle can packages as well as in the vending channel, where Georgia Japan Craftsman
has not yet to be fully deployed. Excluding the vending channel, coffee volumes grew 1% year-to-date. In water,
premium iLohas natural mineral water volume grew, however, overall category volume declined due to cycling offlavor launches in the prior year and a pull-back in large-package volume.

(2) Details of Consolidated Financial Position
Assets at the end of the quarter were 835,541 million yen, a decrease of 48,377 million yen from the end of theprevious fiscal year. This is mainly attributable to a decrease of cash and deposits, marketable securities, etc. due tothe share repurchase completed in the second quarter, decrease of assets damaged by the disaster, partially offset
by an increase of merchandise and finished goods, raw material and supplies, etc.
Liabilities at the end of this quarter were 258,992 million yen, an increase of 2,560 million yen from the end of theprevious fiscal year. This is mainly due to an increase of trade notes and accounts payable driven by a seasonalincrease of merchandise and finished goods, raw material and supplies, etc. offsets by a decrease of net defined
benefits liability, long-term loans, etc.
Net assets at the end of this quarter were 576,548 million yen, a decrease of 50,937 million yen. This is mainly due
to an increase of treasury stock due to the share repurchase completed on April 2018.
(3) Information on the Future Outlook, Such as Forecast of Consolidated Financial Results
There are no change of full-year 2018 forecast the company announced on October 10, 2018.

4

2. Quarterly Consolidated Financial Statements and Main Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)

AssetsCurrent assets
Cash and deposits
Trade notes and accounts receivable
Marketable securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Sales equipment, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Franchise intangible
Other
Total intangible assets
Investments and other assets
Investment securities
Retirement benefit assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets

5

As of December 31, 2017

As of September 30, 2018

101,858
69,26617,00054,357267
7,323
36,277(376)

51,74379,655－62,318580
9,526
45,737(632)

285,974

248,930

73,14567,382
111,800
151,375
591
5,897

69,85358,896
114,343
152,097
3,661
5,429

410,192404,281

76,55750,09814,437

73,16648,146
13,566141,092

134,878

31,792257
15,567(958)

32,039295
16,336(1,221)

46,65947,450597,944586,610

883,918

835,541(Millions of yen)
As of December 31, 2017
Liabilities
Current liabilities
Trade notes and accounts payable
Current portion of long-term borrowings
Accrued income taxes
Other accounts payable
Provision for sales and promotion expenses
Provision for bonuses
Provision for directors’ bonuses
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term loans payable
Net defined benefit liability
Provision for performance-linked incentive
Liabilities for directors' retirement benefits
Provision for environmental measures
Other
Total non-current liabilities
Total liabilities
EquityShareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income
Net unrealized gains (or losses) onother marketable securities
Deferred gains (or losses) on hedges
Foreign currency translation adjustments
Accumulated adjustments for defined
benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
Net assets
Total liabilities and equity

6

As of September 30, 201840,4961,817
8,356
55,410
427
2,521
134
17,19348,883
1,606
7,733
56,041491
6,401
33
12,751

126,357

133,944

66,00012,031
20,358－30
90
31,56366,000
10,541
18,52480
23
90
29,787130,075

125,048

256,432

258,992

15,231
450,568
155,535(4,692)

15,231
450,561
160,298(60,636)

616,642

565,455

6,886

7,084

590
12

407
12

2,926

3,147

10,416

10,651426

440

627,485

576,548

883,918

835,541

(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statements of Income)(First nine-month period of a fiscal year)(Millions of yen)
Nine months ended
September 30, 2017
Net revenues
Cost of goods sold
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Rent income
Gain on sales of valuable wastes
Other
Total non-operating income
Non-operating expenses
Interest expense
Investment loss on equity method
Loss on disposal of property plant and equipment
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sale of property plant and equipment
Gain on sale of investment securities
Gain on sales of shares of subsidiaries
Gain on step acquisitions
Total extraordinary income
Extraordinary losses
Loss on disaster
Business integration-related expenses
Total extraordinary losses
Income before income taxes and non-controllinginterests
Income taxes - current
Income taxes - deferred
Total income taxes
Net profit
Net profit (loss) attributable to non-controllinginterests
Net profit attributable to shareholders of parent

7

Nine months ended
September 30, 2018

645,088
310,837
334,250
295,644
38,606741,254358,692
382,561
350,545
32,016

15
278
246
246
232
1,019

2
292
300
522
290
1,409

401
37
757
553
1,749
37,876

409
153
1,245
420
2,229
31,196

369
16
－
188
574

－
91
388
－

－
721
721

7,945
－

37,73023,73012,934
1,014
13,94923,78013,459(3,692)
9,766
13,963(16)

27

23,797

13,936480

7,945

(Quarterly Consolidated Statements of Comprehensive Income)(First nine-month period of a fiscal year)(Millions of yen)
Nine months ended
September 30, 2017
Net profit
Other comprehensive income
Net unrealized gains (or losses) on othermarketable securities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Remeasurements of defined benefits
Share of other comprehensive income ofinvestees equity-method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toshareholders of the parent
Non-controlling interests

8

Nine months ended
September 30, 201823,78013,963

1,959

197

508
18
440

(182)
(0)
224

(0)

(3)

2,926

235

26,707

14,19926,724

14,171(16)

27

(3) Notes to Quarterly Consolidated Financial Statements(Notes Relating to Assumptions for the Going Concern)
Not applicable.
(Notes for Case Where Shareholders’ Equity underwent Significant Changes in Value)
The Company repurchased its own shares by means of a tender offer in accordance with the Board of Directors
resolution as of February 21, 2018. As a result, treasury stock increased by 55,921 million yen during the ninemonth period ended September 30, 2018, and amounted to 60,636 million yen as of September 30.
(Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statement)
Not applicable.
(Segment Information)
First nine-month period of the previous fiscal year (January 1, 2017 – September 30, 2017)
1. Information on net revenues and profits or losses by reported segment(Millions of yen)
Healthcare & skincare
business

Beverage business

Total

Net revenues
Net revenues-outside
customers
Net revenues andtransfer-inter-segment

622,837

22,251

645,088

－

－

－

Total

622,837

22,251

645,088

Segment profit

36,341

2,264

38,606(Note) Net revenues and Segment profit are equivalent to Net revenues and Operating income in Quarterly Consolidated
Statements of Income, respectively.
First nine-month period of this fiscal year (January 1, 2018 – September 30, 2018)
1. Information on net revenues and profits or losses by reported segment(Millions of yen)
Healthcare & skincare
business

Beverage business

Total

Net revenues
Net revenues-outside
customers
Net revenues andtransfer-inter-segment
Total

720,100

21,153

741,254－－－

720,100

21,153

741,254

Segment profit
29,4482,567
32,016(Note) Net revenues and Segment profit are equivalent to Net revenues and Operating income in Quarterly Consolidated
Statements of Income, respectively.
2. Matters relating to changes in the Company’s reported segments(Change of segment name)
From the first quarter consolidated accounting period, the segment name of "Soft drink business" has beenchanged to "Beverage business" in order to more properly display the business contents.
There is no effect on segment information due to segment name change.

9