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 Second Quarter Ended June 30, 2019 (IFRS)
August 7, 2019
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: August 9, 2019
FY 2019 2Q supplementary information: Yes
FY 2019 2Q earnings presentation: Yes

Listed stock exchanges: Tokyo and Fukuoka
URL: https://en.ccbj-holdings.com/
Name: Calin Dragan
Name: Masakiyo Uike
Phone: +81-3-6896-1707
Expected date of the dividend payments: September 2 2019

(Fractions of one million yen are rounded)

1. Consolidated financial results for the 2nd quarter 2019 (from January 1, 2019 to June 30, 2019)(Percentages indicate changes over the same period in the prior fiscal year)(1) Consolidated financial results
Net sales

2nd quarter2019
2nd quarter
2018

Business Income

Operating profit

Net profit for the year
Total comprehensive
attributable to owners
incomeof the parent

Net profit

millionyen％

millionyen％

millionyen％

433,710

(3.2)

4,122

(64.4)(65,457)－(64,537)－

448,103－

11,571－

12,052

－

7,764

－

Earnings per share

2nd quarter 2019
2nd quarter 2018％

million yen％

millionyen％(64,565)－(63,537)

－

7,740

－

6,078

－

million yen

Diluted earnings per share

yen

yen

(358.14)
39.30

－
－

* “Business Income” is a measure of our underlying or recurring business performance after the adoption of IFRS, and deducts cost of
goods and SG&A from revenue, and includes other income and expenses which we believe are recurring in nature.

(2) Consolidated financial position
Total assets
Jun. 30, 2019
Dec. 31, 2018

Equity attributable to parent Ratio of equity attributableownersto parent owners

Total equity

million yen

million yen

million yen％

883,777
877,472

499,551
580,906

499,087
580,448

56.5
66.2

2. Dividends(Record date)

End of 1Q

Year ended

Full year 2018
Full year 2019
Full year 2019 (forecast)End of 2Q

Dividends per share
End of 3Q
Year-end

Annual

yen

yen

yen

yen

yen

－
－

25.00
25.00

－

25.00

50.00

－

25.00

50.00

Note: Revisions to the cash dividends forecasts most recently announced: None
3. Forecast of consolidated financial results 2019 (from January 1, 2019 to December 31, 2019)
Net sales

Full year
2019

Business Income(Percentages indicate changes over the same period in the prior fiscal year)
Net profit for the year
Earnings per
Operating profit
Net profit
attributable to owners
shareof the parent

millionyen％

millionyen％

millionyen％

millionyen

923,300(0.4)

15,400(33.8)(53,100)－(56,700)

million
yen

％

yen

(56,700)－(315.26)％－

Note: Revisions to the forecasts of consolidated financial results most recently announced: Yes

Notes(1) Changes in significant subsidiaries during the current period: None(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period
financial statements after error corrections
1) Changes in accounting policies due to revisions to accounting standards under IFRS
: Yes
2) Changes other than those in 1) above: None3) Changes in accounting estimates: None(3) Number of outstanding shares (common shares)
1) Number of outstanding shares at the end of period (including treasury shares):
2Q 2019: 206,268,593 shares
FY 2018: 206,268,593 shares
2) Number of treasury shares at the end of period:
2Q 2019: 26,915,309 shares
FY 2018: 22,793,049 shares
3) Average number of outstanding shares during the period:
2Q 2019: 180,280,315 shares
2Q 2018: 196,932,506 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, Such as Forecast of Consolidated Financial Results” on page 5 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 .......................... 52.

Condensed Quarterly Consolidated Financial Statements and Main Notes(1) Condensed Quarterly Consolidated Balance Sheets ......................................................................................... 6(2) Condensed Quarterly Consolidated Statements of Income and Comprehensive Income ................................. 8(3) Condensed Quarterly Consolidated Statements of Changes in Equity .......................................................... 10(4) Condensed Quarterly Consolidated Cash Flows ............................................................................................ 12(5) Notes to Condensed Quarterly Consolidated Financial Statements ................................................................ 14(Notes Relating to Going Concern Assumption) .......................................................................................... 14(Changes in Accounting Policies) ................................................................................................................. 14(Segment Information) .................................................................................................................................. 15

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 second-quarter
results for the fiscal year ending on December 31, 2019 (January 1, 2019 to June 30, 2019). In this period, total
nonalcoholic ready-to-drink (NARTD) beverage industry volume performance is estimated to be slightly
negative versus prior year. The health food and cosmetics industries continue to grow, driven by demand fromhealth-conscious consumers and inbound tourism, while the competitive environment has been marked bysuccessive product launches by various industry players.
For CCBJH, 2019 is a transition year that has been focused on recovery from the flooding damage anddisruption to product supply in 2018, and building a solid foundation for future growth, including the creationof an updated mid-term strategic plan under the direction of a new leadership team. We have been making
major investments to recover our supply network and progressively expand production capacity through second
quarter 2020. We were the first in the beverage industry to announce and implement a wholesale price increase
for large PET products in April—the first time in 27 years, and we are actively monitoring the results of thisimportant initiative to learn for the future. Importantly, we have developed a new five-year strategic businessplan, “THE ROUTE to 2024”, announced together with year-to-date second quarter results, which outlines
steps to first reset and transform the business with major cost efficiencies and investments for growth inalignment with the Coca-Cola (Japan) Company.
Our year-to-date second quarter results were impacted by a decline of topline revenue due to lower beveragebusiness sales volume, combined with continued lower manufacturing efficiencies and elevated logistics anddistribution expenses as we recover our supply and distribution infrastructure over the course of this year.
Year-to-date results also reflect a one-time, non-cash charge related to impairment of goodwill in the second
quarter.
In addition to the qualitative information contained in this report, please also see our earnings presentationmaterial posted on the Company IR website (https://en.ccbj-holdings.com/ir/library/presentation.php) to be
used at our earnings presentation on Thursday, August 8, 2019 at 1:30pm (JST). The earnings presentation andaudio will be available live and on demand as an audio webcast in the IR section of the CCBJH website.

Highlights
・ Year-to-date beverage volume down 4% and net revenue down 3%, reflecting a 7% volume decline in
the second quarter after initial rollout in April of the first customer price increase in 27 years.
・ Year-to-date Business Income decreased 64% versus prior year, trending in line with the revised fullyear plan announced in May, reflecting expected quarterly phasing in 2019 as we cycle supply disruption
primarily in the second half of 2018.
・ Announced a one-time, non-cash goodwill impairment charge of 61.9 billion yen resulting from thestrategic business plan evaluation process and updated business outlook.
・ Year-to-date operating loss of 65.5 billion yen (12.1 billion yen operating income in 2018) reflecting thesecond-quarter goodwill impairment. 2019 full-year operating income forecast has been revised due tothis impairment.
・ Interim dividend of 25 yen per share as planned, with no change to expected year-end dividend.
Prioritizing stable dividend payment in a year of transition and recovery.
・ New mid-term business plan, “THE ROUTE to 2024” announced, focusing on important cost savings
from transformation and necessary investments for sales growth in order to grow volume and value share,
improve profit margins and increase return on equity (ROE).

Overview of strategic mid-term business plan
CCBJH developed a new five-year strategic business plan with full alignment of the leadership teams of both
CCBJH and the Coca-Cola (Japan) Company on the need for transformational change to drive cost savings aswell as focused investments to reignite sales growth. This strategic plan is a multiple step roadmap to return
CCBJH to a growth trajectory, with targets for both Business Income margin and ROE in 2024 of 5-6%. Overthe course of the five-year plan, we expect cost savings of approximately 35 billion yen, representing ongoingsavings initiatives and incremental programs focused on transforming our vending machine operations,evolving our frontline salesforce capabilities and identifying opportunities across procurement and our supply
chain to offset anticipated higher costs. We have also integrated into the strategic plan key non-financial ESG2

related initiatives and commitments, which we refer to as CSV, or Creating Shared Value. For more
information about the new strategic business plan, please refer to our second-quarter earnings presentationmaterial posted on the Company IR website.

Review of Results

Year-to-date Q2 (January to June)
In Million JPY, IFRS

2018

2019

YoY

Net Revenue

448,103433,710(3.2%)

Gross Profit

220,525

210,246(4.7%)

208,213205,202(1.4%)

Other income (Recurring)

689

560

(18.7%)

Other expenses (Recurring)

1,396

1,457

4.4%

(34)

(24)

－

Selling, General & Administrative Expenses

Investment gain (loss) on equity method
Business Income (Loss)

11,5714,122(64.4%)

Other income (Non-recurring)

481

1,240

157.8%

Other expenses (Non-recurring)－

70,819－Operating Income (Loss)

12,052(65,457)－

Net Income (Loss) Attributable to Owners of Parent

7,740(64,565)－

Sales volume of beverage business (Million cases)

247

237

(4%)

Q2 (April to June)
In Million JPY, IFRS

2018

2019

Net Revenue

242,489

234,978(3.1%)

Gross Profit

119,597

115,644(3.3%)

107,192

107,062(0.1%)

Other income (Recurring)

272

267

(2.0%)

Other expenses (Recurring)

882

657

(25.4%)

Investment gain (loss) on equity method

(32)

(10)

－

11,7638,182(30.4%)

Other income (Non-recurring)

481

1,240

157.8%

Other expenses (Non-recurring)－

62,054－

Operating Income

12,244(52,633)－

Net Income Attributable to Owners of Parent

8,029(56,563)

－

136

127

(6%)

Selling, General & Administrative Expenses

Business Income

Sales volume of beverage business (Million cases)

YoY* Sales volume of beverage business does not include alcoholic beverage volume* We have introduced “Business Income” as a measure of our underlying or recurring business performance after
the adoption of IFRS in 2019. Business income deducts cost of goods and SG&A from revenue and includes
other income and expenses which we believe are recurring in nature.
Year-to-date second quarter net revenue was 433.7 billion yen, a decrease of 14.4 billion yen, or 3.2%
compared to the prior-year period. Net revenue of the beverage business decreased 12.0 billion yen (down
2.8%) versus the prior-year period, to 421.4 billion yen, reflecting a 4% decline in sales volume and improved
revenue-per-case as a result of the price increase of large PET packages introduced in April, first by CCBJH
and later in the quarter by other industry players. Net revenues of the healthcare & skincare business fell by3

2.4 billion yen (down 16.1%) year-on-year to 12.3 billion yen, as mail/web order sales slowed in the quarter.
Year-to-date second quarter business income, an indicator of our recurring business performance, was 4.1
billion yen, a decrease of 7.5 billion, or 64.4% year-on-year. Business income of the beverage business was
negative 2.5 billion yen (down 6.2 billion yen or 71.1% year-on-year). This reflects weak topline revenue dueto the sales volume decline and continued lower manufacturing efficiencies and elevated logistics anddistribution expenses this year as we recover and expand supply capacity after the disruption in the second halfof 2018. Partly offsetting this pressure, we achieved labor savings as a result of integrating retirement benefit
programs and completing a voluntary employee retirement program in the second quarter. Promotional
expenses in the period were also lower, in line with volume performance and cycling prior-year marketing
activities. Business income in the healthcare & skincare business was 1.6 billion yen, a decrease of 1.2 billion
yen or 43.7% year-on-year, reflecting lower revenues while we continue to focus on promotional expense
control and other cost savings opportunities.
Consolidated operating loss was 65.5 billion yen (12.1 billion yen operating income in prior year period),
mainly driven by the impairment of goodwill. Net income attributable to owners of parent was a loss of 64.6
billion yen (7.7 billion yen in the prior-year period).
Beverage volume performance by channel and category
Year-to-date volume performance reflects the initial impact of the large PET customer price increase in April
as well as underperforming new product launches and renewals in the first quarter, and gradual recovery ofcustomer shelf space after the supply constraints in late 2018. Supermarket, Drug & Discounter andConvenience Store channel volume declined 8%, 6% and 5%, respectively. Wholesale price per case improvedin the Supermarket and Drug & Discounter channels but volume declined 13% and 10%, respectively, in thesecond quarter as the composition of large PET package volume is relatively high in both channels. Vending
channel volume declined 3% year to date and 2% in the second quarter, in line with the 2019 plan, reflecting acontinued moderation of the negative trend from 2018. This moderating trend is supported by initiatives todrive vending purchase transaction growth, such as new package sizes and price points, as well as an
improving outlook for the coffee category with expanded coverage of the Georgia Japan Craftsman brand in
aseptic PET packaging. Year-to-date sales volume was even in the Retail & Food channel.
By category, non-sugar tea and sports volume decreased 4% and 2%, respectively, impacted by large PET
package volume declines after the price hike in April. Coffee volume was negative 2% year-to-date and X% in
the second quarter. We have been expanding coverage of Georgia Japan Craftsman across all channels toimprove coffee performance. Sparkling beverages declined 7% year to date due to weak performance of CocaCola Peach and Fanta product renewals as well as the price increase. Water declined 15%, mainly driven by
weak performance of iLohas brand flavored water as we cycled prior year launches, and lower sales of large
PET packages in the second quarter due to the price rise.
(2) Details of Consolidated Financial Position
Assets at the end of the quarter were JPY 883.8 billion yen, an increase of 6.3 billion yen from the end of theprevious fiscal year. This is mainly attributable to an increase of inventory by building stock of products aheadof peak season, as well as an increase of non-current assets by newly including Right-of- use assets as a resultof the implementation of IFRS 16 starting from this fiscal year. Fixed assets increased as a result ofcommissioning two new production lines in Kumamoto and Kyoto in the first quarter. Finally, we also booked
an impairment of goodwill in the second quarter.
Liabilities at the end of the quarter were 384.2 billion yen, an increase of 87.7 billion yen from the end of
previous fiscal year. This is mainly due to an increase of Bonds and debt in current liabilities driven by higher
bank borrowing for operational needs, and an increase of Lease liabilities in conjunction with including Rightof-use assets, etc.
Net assets at the end of the quarter were 499.6 billion yen, a decrease of 81.4 billion yen. This is mainly due toa decrease of Retained Earnings as a result of the goodwill impairment and an increase of Treasury Shares dueto the completion of the share buyback program in February 2019.

Cash flows for the year-to-date period are as follows:
Net cash used for operations was 9.1 billion yen (3.7 billion net cash generated from operations in the previous
4year period). This results mainly from the 65.5 billion yen net loss before tax, loss due to impairment of
goodwill, depreciation expenses, increase of notes and account payable-trade, etc. offset by an increase of tradeand other receivable, inventories, payment of taxes, etc.
Net cash used for investment activities was 38.8 billion yen (21.4 billion yen in the previous year period), due
to purchases of fixed assets as we recover our supply network and progressively expand production capacity,etc.
Net cash generated from financing activities was 27.7 billion yen (46.9 billion yen net cash used for financing
activities in the previous year period), driven by an increase of short-term loans for operating capital, partially
offset by cash spent for share buy-back, payment of year-end dividends, etc.
As a result of these activities, cash and cash equivalents at the end of the second-quarter was 45.2 billion yen, adecrease of 8.9 billion yen versus the prior year period.
(3) Information on the Future Outlook, Such as Forecast of Consolidated Financial Results
The Company revised its full-year 2019 (January 1 to December 31, 2019) earnings forecast, which waspreviously released on May 15, 2019 due to impairment of goodwill. For details, please refer to the “Loss due
to Impairment of Goodwill and Revision of Full-Year 2019 Forecast” separately announced today.

52. Condensed Quarterly Consolidated Financial Statements and Main Notes(1) Condensed Quarterly Consolidated Balance Sheets
As of
December 31, 2018
AssetsCurrent assets:
Cash and cash equivalents
Trade and other receivables
Inventories
Other financial assets
Other current assets
Total current assets
Non－current assets:
Property, plant and equipment
Right－of－use assets
Goodwill
Intangible assets
Investments accounted for using equity
methodOther financial assets
Net defined benefit asset
Deferred tax assets
Other non－current assets
Total non－current assets
Total assets

6(Millions of yen)
As ofJune 30, 2019

65,51092,402
68,781645
10,740238,078

45,230101,786
84,437490
17,293249,236435,305－
88,88066,539449,256
41,63627,021
67,135298

304

34,796
38
6,264
7,274
639,394
877,472

32,420
－
9,527
7,242
634,541
883,777

As ofDecember 31, 2018

(Millions of yen)
As ofJune 30, 2019

Liabilities and equity
Liabilities
Current liabilities:
Trade and other payables
Bonds and debts
Lease liabilities
Other financial liabilities
Income taxes payable
Provisions
Other current liabilities
Total current liabilities
Non－current liabilities:
Bonds and debts
Lease liabilities
Other financial liabilities
Net defined benefit liabilities
Provisions
Deferred tax liabilities
Other non－current liabilities
Total non－current liabilities
Total liabilities
Equity;Capital stock
Capital Surplus
Retained earnings
Treasury Shares
Accumulated other comprehensive income
Equity attributable to owners of parent
Non－controlling interests
Total equity
Total liabilities and equity

7

105,701
45,512
－
993
3,069
18
22,230177,524

114,933
95,454
7,381
641
754
24
14,576
233,763

56,401－749
33,712
2,191
23,082
2,907
119,042

55,54535,910322
28,7982,171
24,686
3,031
150,463296,566

384,227

15,232450,533
182,418(72,651)
4,915

15,232450,467
115,283(85,644)3,749

580,448458

499,087464

580,906

499,551

877,472

883,777

(2) Condensed Quarterly Consolidated Statements of Income and Comprehensive Income(Condensed Quarterly Consolidated Statements of Income)(First six-month period of a fiscal year)
Six months ended
June 30, 2018
448,103
227,578(Millions of yen)Six months ended
June 30, 2019433,710
223,465

Gross profit
Selling and general administrative expenses
Impairment losses of goodwill.
Other income
Other expenses
Share of income (loss) of entities accounted for using
equity method
Operating income (loss)
Financial revenue
Finance costs

220,525
208,213
－
1,170
1,396

210,246
205,20261,8591,800
10,417(34)(24)

12,052560
437(65,457)501
557

Income (loss) for the period before income taxes

12,175(65,513)

Income tax expense

4,411

(976)

Net income (loss) for the period

7,764(64,537)

Net income (loss) for the period attributable to:
Owners of parent
Non－controlling interests

7,740
25

(64,565)28

39.30(358.14)

Net sales
Cost of sales

Earnings (loss) per share (yen)8(Condensed Quarterly Consolidated Comprehensive Income)(First six-month period of a fiscal year)(Millions of yen)Six months ended
June 30, 2018
Net income (loss) for the period
Other comprehensive income
Items that will not be reclassified subsequently to profit orloss:
Remeasurements of defined benefit plans
Net changes in financial assets measured at fair value
through other comprehensive income
Subtotal
Items that may be reclassified subsequently to profit orloss:
Foreign currency translation adjustments of foreign
operations
Cash flow hedges

Six months ended
June 30, 2019
7,764

(64,537)

4

1,785(1,232)(408)(1,229)

1,377

(0)

－

(457)

(377)

Subtotal
Total other comprehensive income (loss) for the period

(457)

(377)

(1,686)

1,000

Total comprehensive income (loss) for the period

6,078(63,537)

6,053
25(63,566)
28

Comprehensive income (loss) attributable to:
Owners of parent
Non－controlling interests9(3) Condensed Quarterly Consolidated Statements of Changes in Equity
Six months ended June 30, 2018
(Millions of yen)

Capital stock

Balance as of January 1,
2018Comprehensive income forthe period
Net income (loss) for theperiodOther comprehensive
income (loss)
Total comprehensive income(loss) for the year
Transactions with owners,
etc.
Dividends of surplus
Purchase of treasury
stock
Disposal of treasury
stock
Transactions of share－
based payment
Reclassification fromaccumulated othercomprehensive income toretained earnings
Reclassification fromaccumulated othercomprehensive income tonon－financial assets
Other changes
Total transactions withowners, etc.
Balance as of June 30, 2018

Equity attributable to owners of parent
Accumulated
CapitalRetained
Treasuryothersurplusearnings
Sharescomprehensive
incomeNon－controllinginterests

Total

Total

15,232450,498

184,317(4,693)

9,258

654,611427

655,038

－

－

7,740

－

－

7,740

25

7,764

－

－

－

－

(1,686)(1,686)－(1,686)

－

－

7,740

－

(1,686)

6,053

25

6,078

－

－

(4,494)－－(4,494)(21)(4,514)

－

(25)

－

(55,943)－(55,968)－(55,968)

－

0

－

1

－

1

－

1

－

78

－

－

－

78

－

78

－

－

(1)

－

1

－

－

－

－

－

－

－

(92)

(92)

－

(92)

－

(7)

－

－

－

(7)

7

－

－

46

(4,494)(55,942)(92)(60,482)(14)(60,495)

15,232450,543

187,563(60,635)

7,480

600,183438

600,62110

Six months ended June 30, 2019
(Millions of yen)

Capital stock
Balance as of January 1,
2019(Before restatement)
Adjustments resulting fromthe adoption of IFRS 16
Balance as of January 1,
2019(After restatement)
Comprehensive income forthe year
Net income (loss) for theperiodOther comprehensive
income (loss)
Total comprehensive
income (loss) for the year
Transactions with owners,
etc.
Dividends of surplus
Purchase of treasury
stock
Disposal of treasury
stock
Transactions of share－
based payment
Reclassification fromaccumulated othercomprehensive income
to retained earnings
Reclassification fromaccumulated othercomprehensive income
to non－financial assets
Total transactions withowners, etc.
Balance as of June 30, 2019

Equity attributable to owners of parent
Accumulated
CapitalRetained
Treasuryothersurplusearnings
Sharescomprehensive
incomeNon－controllinginterests

Total

Total

15,232450,533

182,418(72,651)

4,915

580,448458

580,906

－

－

(338)

－

－

(338)

－

(338)

15,232450,533

182,080(72,651)

4,915

580,110458

580,568－(64,565)－－(64,565)28(64,537)

－

－

－

－

1,000

1,000

－

1,000

－

－

(64,565)－

1,000(63,566)

28(63,537)－－(4,587)－－(4,587)(22)(4,609)

－

(64)

－

(12,995)－(13,059)－(13,059)

－

(0)

－

1

－

1

－

1

－

(2)

－

－

－

(2)

－

(2)

－

－

2,355

－

(2,355)

－

－

－

－

－

－

－

189

189

－

189

－

(66)

(2,232)(12,994)(2,166)(17,458)(22)(17,480)

15,232450,467

115,283(85,644)3,749

499,087464

499,551－11

(4) Condensed Quarterly Consolidated Cash Flows(Millions of yen)Six months ended
June 30, 2018

Six months ended
June 30, 2019

Cash flows from operating activities
Income (loss) for the period before income taxes

12,175(65,513)

Adjustments for:
Depreciation and amortization

23,893

28,114－
48

62,109Impairment loss
Change in allowance for doubtful accounts

(312)
307

(471)
(308)
557

34

24

(86)

(1,259)

1021

1,014

(19,277)(9,355)(15,656)

Interest and dividends income
Interest expenses
Share of loss (profit) of entities accounted for using
equity method
Gain on sale of property, plant and equipment
Loss on disposal and sale of property, plant andequipment
Decrease (increase) in trade and other receivables
Decrease (increase) in inventories
Decrease (increase) in other assets(16,974)(3,626)

Increase (decrease) in trade and other payables
Increase (decrease) in net defined benefit liabilities

20,661
158

Increase (decrease) in other liabilities
Others(5,844)72(2,148)(7,389)436

12,250(1,702)

3
284

0
308

SubtotalInterest received
Dividends received
Interest paid
Income taxes paid
Income taxes refund
Net cash provided by operating activities
Cash flows from investing activities
Acquisitions of property, plant and equipment andintangible assets
Proceeds from sales of property, plant and equipment
and intangible assets
Purchases of other financial assets
Proceeds from sale of other financial assets
Proceeds from sales of shares of subsidiaries resulting
in change in scope of consolidation
Other
Net cash used in investing activities

12(2,715)
10,860

(278)

(527)

(8,854)(8,882)

271

1,662

3,676

(9,141)(22,090)(42,892)

213

2,346

(29)
50

(27)
1,683

406

－

10

71

(21,441)(38,820)

(Millions of yen)Six months ended
June 30, 2018
Cash flows from financing activities
Increase (decrease) in short－term loans payable
Repayments of long－term loans payable
Dividends paid

Six months ended
June 30, 201915,000(909)(4,494)

Dividends paid to non－controlling interests
Proceeds from disposal of treasury stock
Purchases of treasury stock
Repayments of lease liabilities
Other

50,000
(943)

(21)
1

(4,587)(22)
1(55,968)(13,088)－(463)(3,681)(46,853)

27,680－Net cash provided by (used in) financing activities
Net foreign exchange differences on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year

(0)－(64,618)
118,742(20,281)
65,510Cash and cash equivalents at the end of the year

54,12445,23013

(5) Notes to Condensed Quarterly Consolidated Financial Statements(Notes Relating to Going Concern Assumption)
Not applicable.
(Changes in Accounting Policies)
The Group has adopted following standards from the first quarter.
Establishment or revision of accounting
standards and interpretations

Summary of requirements

New standard for leases, replacing IAS 17, requires all leases to be
IFRS 16 Leases(published January 2016)

shown on the statements of financial position as if they were financed
purchases. The new standard sets out the principles for the recognition,measurement, presentation and disclosures of leases.

The Group has adopted IFRS 16 “Leases” (hereinafter, “IFRS 16”), from the first quarter ended March 31, 2019.
The Group retrospectively applied IFRS 16 according to transitional measures, the cumulative effect of thecommencement of application is recognized as an adjustment to the opening balance of retained earnings in the firstquarter. In the transition to IFRS 16, the practical expedient of IFRS 16.C3 was selected as to whether anarrangement contains a lease or not, it takes over the judgment of IAS 17 “Leases” and IFRIC 4 “Determining
whether an Arrangement contains a Lease”.
IFRS 16 requires that lessee's lease not be classified as finance lease or operating lease, but rather as a single
accounting model and, in principle, recognize the right-of-use asset representing the right to use the underlying
asset and the lease liability representing the obligation to pay the lease payments for all lease. However, for shortterm lease or leases for which the underlying asset is of low value, the Group may elect not to apply therequirements of this standard. After recognizing right-of-use asset and lease liability, right-of-use asset depreciationand interest expense related to lease liability are recognized.
In the Group, the lease term of the right-of-use assets is estimated by adding a reasonably reliable period inwhich the option to extend the lease is not exercised or the option to cancel the lease is not exercised. In addition,
the discount rate applied to the lease liabilities for the right-of-use assets uses the lessee's incremental borrowing
rate, and the weighted average is 1.0%. Right-of-use assets are depreciated using the straight-line method mainly
over 15 years from the start date.
As of the end of the previous consolidated fiscal year, finance lease liabilities that were recognized by applying
IAS 17 were 901 million yen.
Of 7,644 million yen (before discount) of the operating lease contracts disclosed by applying this standard,549
million yen (before discount) is accounted for as a small-value asset lease, in addition, there is 37,409 million yen
increase in lease liabilities over a period in which it is reasonably certain that the extension option will be exercised.
As a result, in the consolidated statement of financial position at the beginning of the first quarter under review,
right-of-use assets increased by 44,034 million yen, deferred tax assets increased by 15,200 million yen, leaseliabilities increased by 44,505 million yen, deferred tax liabilities increased by 15,028 million yen and long-term
accounts payable increased by 40 million yen, retained earnings decreased by 338 million yen. Deferred tax assets
and Deferred tax liabilities are offset on the consolidated balance sheets based on IAS 12 “Income taxes”.
In addition, cash flow from operating activities increased by 3,350 million yen and cash flows from financing
activities decreased by 3,350 million yen in condensed quarterly consolidated cash flows for the second quarter.

14

(Segment Information)
Operating segments of the Group are components for which discrete separate financial information isavailable and which are regularly reviewed by the Board of Directors to make decisions about resources to beallocated to the segment and assess its performance. The Group establishes organizational management system foreach product and service and identified “Beverage Business” and “Healthcare & Skincare Business” as operating
segment and reportable segment based on the type and the nature of the products and sales market. Following
reportable segments are identified by the Group and there are no business segments or summarized segments thatconsist of reportable segments other than followings.
Reportable segments
Beverage Business

Healthcare & Skincare Business

Principal Products and Services
Purchase, manufacture and sale of carbonated beverages such as Coca－Cola, coffee
and black tea beverages, mineral water, etc. bottling, packaging, distribution andmarketing, vending machine－related business in Japan
Manufacture and sale of kale juice (aojiru) and other products made from Kale, as
well as the manufacture and sale of health foods, cosmetics and other related
products

The Board of Directors evaluates the performance of each segment compared to other companies in the same
industry by using operating income as reported in accordance with generally accepted accounting principles(IFRS).
Information about reportable segments is as follows:
Impairment loss of 61,859 million yen was recorded in Beverage Business during first six-month period of
this fiscal year.
First six-month period of the previous fiscal year (January 1, 2018 – June 30, 2018)

Beverage
Business
Sales revenue to external customers
Intersegment sales revenue
Total sales revenue
Segment profit (loss)
Adjustments
Financial revenue
Finance costs
Income (loss) before tax

433,427－
433,427
8,732

Reportable segments
Healthcare &SkincareBusiness
14,675－
14,675
3,320(Millions of yen)
Reportablesegments
Total
448,103－448,103
12,052Adjustment
－
－
－
－

Total
448,103－448,103
12,052560
437
12,175First six-month period of this fiscal year (January 1, 2019 – June 30, 2019)

Beverage
Business
Sales revenue to external customers
Intersegment sales accumulation
Total sales revenue
Segment profit (loss)
Adjustments
Financial revenue
Finance costs
Income (loss) before tax

421,404－
421,404(67,057)

Reportable segments
Healthcare &SkincareBusiness
12,306－
12,306
1,600(Millions of yen)
Reportablesegments
Total
433,710－433,710(65,457)

Adjustment
－
－
－
－

Total
433,710－433,710(65,457)501
557(65,513)15