This flash report is unaudited and the translation of the Japanese language version. In the event of any discrepancy, errors and/or
omissions, the Japanese language version shall prevail.

Consolidated Financial Summary for
Fiscal Year Ended December 31, 2020 (IFRS)
February 10, 2021
Listed company name: Coca-Cola Bottlers Japan Holdings Inc.
Listed stock exchanges: Tokyo
Code number: 2579
URL: https://en.ccbj-holdings.com/
Delegate: Title: Representative Director & President
Name: Calin Dragan
Contact: Title: Head of Finance Operations and Controllers Division, Finance, Name: Satoshi Kon Phone: +81-3-6896-1707
Expected date of general shareholders meeting: March 25, 2021
Expected date of the dividend payment: March 26, 2021
Expected date of submission of annual securities report: March 26, 2021
FY 2020 supplementary information: Yes
FY 2020 financial presentation: Yes(Fractions of one million yen are rounded)

1. Consolidated financial results for the fiscal year ended December 31, 2020 (from January 1, 2020 to December 31, 2020)(1) Consolidated financial results
Revenuemillionyen

Dec. 31, 2020 791,956
Dec. 31, 2019 890,009(Percentages indicate changes over the same period in the prior fiscal year)

Business Income

Operating loss

Net loss attributable
Total comprehensive
to owners of thelossparentNet loss％millionyen％

millionyen％

millionyen％

millionyen％

millionyen％(11.0)(4.0)

169
11,447(98.5)(50.8)(11,722)(58,904)－－(4,729)(57,895)－－(4,715)(57,952)－－(2,228)(52,108)－－

Loss per share

Diluted earnings per share

yen

yen

Ratio of income to equity
Ratio of income before tax Ratio of Operating income
attributable to owners of
to total assets
to net sales
the parent％％％－
Dec. 31, 2020(26.29)
(0.9)
(1.3)
(1.5)
(322.22)－(10.7)(6.4)(6.6)
Dec. 31, 2019
Reference: Share of income (loss) of entities accounted for using equity method
Fiscal Year 2020: (245) million yen
Fiscal Year 2019: 43 million yen*1. “Business Income (loss)” is a measure of our recurring business performance that is calculated as costs of goods and selling,
general and administrative expenses are deducted from revenue, and other income and expenses are added and subtracted
accordingly. .
2. In the fiscal year ending 31 December 2020, the Healthcare and Skincare business has been classified as a discontinued operation
as a result of the decision to sell all shares in Q'sai held by the Company. As a result, revenue, business Income and operating loss
for the previous financial year have been reclassified to the amounts for continuing operations excluding discontinued operations.

(2) Consolidated financial position
Total assets

Dec. 31, 2020
Dec. 31, 2019

Equity attributable toEquity attributable to parent Ratio of equity attributableowners of the parent per
ownersto parent owners
share

Total equity

million yen

million yen

million yen％

yen939,603
952,444502,093
506,491

501,643505,999

53.4
53.1

2,797.03
2,821.27(3) Consolidated cash flows
Net cash from (used in)Investing activities

Operating activities

Financing activities

Cash and cash equivalents
at end of year

Year ended

million yen

million yen

million yen

million yen

Dec. 31, 2020
Dec. 31, 2019

43,716
42,629(52,076)(68,308)

20,91273,994

126,378
113,825

2. Dividends(Record date)

1Q

Dividends per share
Year2Q
3Q
end
yen

AnnualYear ended

yen

yen

yen

Dec. 31, 2019
Dec. 31, 2020
Dec. 31, 2021
(forecast)

－
－

25.00
0.00

－
－

yen

25.00
25.00

50.00
25.00

－

25.00

－

25.00

50.00

Total dividend
Dividend
Ratio of dividends
payments
payout ratio
to net assets（annual）(consolidated)(consolidated)
million yen

%

%

8,968
4,484

－
－

1.7
0.9

－

3. Forecast of consolidated financial results 2021 (from January 1, 2021 to December 31, 2021)
Revenue

Business Income(Percentages indicate changes over the same period in the prior fiscal year)
Net income for the year
Earnings
Operating income
Net income
attributable to owners ofper share
the parent

million yen％

millionyen％

million
yen

－

－

－

－

－

Full year
2021

％
－

millionyen％

million yen

％

yen

－

－

－

－

－

*There are many uncertainties related to the impact of the ongoing COVID-19 pandemic, including the new declaration of a state of
emergency in Japan, the expected timing of a reduction in infection rates and a potential vaccine approval, and the impact on the market.
Therefore, it is not possible to estimate and announce our full-year 2021 earnings forecast at this time. We will provide an update when weare able to estimate the impact to our outlook.

Notes(1) Changes in significant subsidiaries during the current period:: None(2) Changes in accounting policies, changes in accounting estimates:
1) Changes in accounting policies as required by IFRS:
2) Changes other than those in 1) above
3) Changes in accounting estimates: None: None: None(3) Number of outstanding shares (common shares)
1) Number of outstanding shares at the end of period (including treasury shares):
FY 2020: 206,268,593 shares
FY 2019: 206,268,593 shares
2) Number of treasury shares:
FY 2020: 26,920,298 shares
FY 2019: 26,917,320 shares
3) The number of average shares outstanding:
FY 2020: 179,349,902 shares
FY 2019: 179,852,114 shares(Reference) Summary of the Non-consolidated Financial Results
1. Non-consolidated financial results for the fiscal year ended December 31, 2020 (from January 1, 2020 to December 31, 2020)(1) Non-consolidated financial results(Percentages indicate changes over the same period in the prior fiscal year)

Operating revenue

Operating income

Recurring income

Net income

Year ended

million yen%

million yen%

million yen%

million yen%

Dec. 31, 2020
Dec. 31, 201919,202
26,517(27.6)
155.6

14,831
21,730(31.8)
278.9

14,345
20,273(29.2)
288.1

15,742
20,702(24.0)
371.0

Earnings per
share

Dec. 31, 2020
Dec. 31, 2019

Diluted earnings per
share
yen

yen

87.77

－

115.11－

(2) Non-consolidated financial position
Total assets

Net assets

Net assets (excl. minority
interests) to total assets

Net assets(excl. minority
interests) per share

As ofmillion yen

million yen%

yen

Dec. 31, 2020
Dec. 31, 2019587,306

342,39158.3

1,909.09

549,683
Reference: Net assets (excl. minority interests)
Fiscal Year 2020: 342,391 million yen

331,13960.2

1,846.32

Fiscal Year 2019: 331,139 million yen* The consolidated financial summary is 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 issuance of thisreport, and the actual results may be changed due to a member of inherent uncertainties in the forecast. .
Furthermore, please refer to “1. Overview of Operating Results, etc. (1) Analysis of Operating Results(Outlook for 2020)” on page 4 for matters relating to performance forecasts.

Table of contentsPage

1. Overview of Operating Results, etc. …………………………………………………………………………………………

2(1) Analysis of Operating Results ……………………………………………………………………………………………

2(2) Analysis of Financial Position ……………………………………………………………………………………………

5(3) Basic Policies for Income Distribution and Dividends for FY2020 and FY2021……………………………………….

6

2. Basic Concept Concerning the Selection of Accounting Standards………………………………………………………….

6

3. Consolidated Financial Statements and Notes ……………………………………………………………………………….

7(1) Consolidated Statement of Financial Position…………………………………………………………………………….

7(2) Consolidated Statements of Income and Comprehensive Income ……………………………………………………….

9(Consolidated Statements of Income) ……………………………………………………………………………………

9(Consolidated Statements of Comprehensive Income) ………………………………………………………………….

10(3) Consolidated Statements of Changes in Equity …………………………………………………………………………

11(4) Consolidated Statements of Cash Flows …………………………………………………………………………………

13(5) Notes to Consolidated Financial Statements ……………………………………………………………………………

15(Notes Relating to Going Concern Assumption) ………………………………………………………………………

15(Changes in Accounting Policies) ………………………………………………………………………………………

15(Segment Information, etc.) ……………………………………………………………………………………………

15(Per Share Information) ……………………………………………………………………………………………….…

15(Significant Subsequent Events) …………………………………………………………………………………………

16

4. Others …………………………………………………………………………………………………………………………

17(1) Changes in Key Consolidated Management Indicators …………………………………………………………………

17(2) Officer Change……………………………………………………………………………………………………………

18

1

1. Overview of Operating Results, etc.
(1) Analysis of Operating Results(Qualitative information on the Consolidated Operating Results)(Overview of Full-year 2020 Results)
Coca-Cola Bottlers Japan Holdings Inc. (“CCBJH” or the “Company”, or “we”) announced full-year results for the fiscal year
ending on December 31, 2020 (January 1, 2020 to December 31, 2020).
During the continued outbreak of the novel coronavirus (COVID-19), the safety and health of our consumers, our customers,
our employees and our communities is our number one priority. Our mission is to deliver happy moments to everyone, even inchallenging times, and we have been working with comprehensive business continuity actions in place to ensure safe and secure
product supply.
In this fiscal year, total nonalcoholic ready-to-drink (NARTD) beverage industry volume performance is expected to continue
to decline versus the prior-year, reflecting weaker consumer traffic and demand driven by the COVID-19 outbreak as well as
unseasonably rainy and cool weather in July.
We continue to drive fundamental business transformation under the guiding principle of our mid-term strategic business planannounced in August 2019 that “business as usual is not an option”. We are focusing on our core beverage business andimplementing initiatives to fundamentally transform our business, including transformation in the important vending channel
and back-office routines to drive cost efficiencies, increasing production and supply capacity, and promoting new and more
flexible working styles. In the short term, we are focusing on various urgent cost mitigation initiatives to deal with the rapidly
evolving situation triggered by the COVID-19 outbreak, as we continue to address our cost structure and high fixed-cost base of
the beverage business. We are also finding opportunities during this turbulent period to accelerate the pace of ongoingtransformation projects and to identify incremental growth and efficiency improvement opportunities. This will ensure that weare well-prepared for the evolution of the business environment in the longer term.
The Company has also been evaluating future opportunities for growth and operating synergies for the health and skincare
business. We determined that the best way to support the next era of growth for this business is to sell Q’sai to Q-Partners Co.,
Ltd., a company formed for this purchase led by investment funds in which Advantage Partners Inc. provides services, euglena
Co., Ltd., and, Tokyo Century Corporation. The Company entered into a share transfer agreement with Q-Partners Co., Ltd. asof December 15, 2020 and sold all of the shares of the Company’s consolidated subsidiary, Q'sai Co., Ltd. as of February 1, 2021
for a profit of 12.5 billion yen and cash inflow of 45 billion yen. As a result of executing the share-transfer agreement, Q'sai isclassified as discontinued operations for the fiscal year ending December 31, 2020. Accordingly, the relevant section of prioryear financial statements and notes have been reclassified.
Our full-year results were impacted by weak beverage business sales volumes due to the COVID-19 situation while we
addressed urgent mitigation efforts by driving fundamental business transformation and other cost-savings initiatives to partially
offset the current-year revenue decline. In spite of approximately 100 billion yen decline in consolidated revenue for the year,
we were able to deliver slightly positive Business Income through significant fixed-cost savings, making costs more variablethrough process improvements, investments in IT systems and organizational restructuring.
In addition to the business update in this document, please also see our earnings presentation material posted on the Company
IR website (https://en.ccbjholdings.com/ir/library/presentation.php) to be used in our earnings conference call on Friday,
February 12 at 1:30 pm (JST). The earnings presentation and audio will be available live and on demand as an audio webcast in
the IR section of the CCBJH website.
Full-year 2020 Highlights
・ Business Income exceeded plan driven by acceralation of fundamental transformation and incremental cost savings
・ Vending channel value share continues to improve, with 21 consecutive months of positive momentum. Recovery ofover-the-counter (“OTC”) market share in fourth quarter driven by selective marketing reinvestment in the quarter・ Continue to drive fundamental business transformation guided by our mid-term strategic plan amid the current COVID19 challenges and postponement of the Tokyo 2020 Olympic and Paralympic Games; Transformation in vending and
OTC sales routes ahead of plan, reduction of fixed costs to increase flexibility; 35 billion yen in cost savings
・ Recovery and expansion of supply capacity completed as planned, with seven new manufacturing lines including the
new Hiroshima plant. Saitama “mega distribution center”, which will help optimize the logistics network in the Tokyo
metropolitan area, started operations in February 2021
・ Alcohol business continues to perform well with expanded product lineup introduced in the fourth quarter2

・ Divested healthcare and skincare business as of February 1, 2021. Cash inflow of 45 billion yen. Proceeds expected to
be used for investment to drive transformation and growth as well as initiatives to improve shareholder value
・ No 2021 full-year earnings guidance provided, given renewed market uncertainty and reductions in consumer traffic
after declaration of 2nd state of emergency in Japan and lack of clarity on a timeline for vaccinations and expectedmarket recovery
Summary of Consolidated Financial Results(In million JPY except sales volume)
Full-year (January to December)

Change
(%)

2019

2020

890,009791,956(11.0)

Continuing Operation (Beverage Business)
Revenue
Sales volume of beverage business (million cases)
Gross Profit

505

458

(9)

421,224

362,916(13.8)

Selling, General & Administrative Expenses

407,510359,645(11.7)

Other income (Recurring)

1,052

772

(26.6)

Other expenses (Recurring)

3,362

3,628

7.9

Investment gain (loss) on equity method

43

(245)

－

Business Income

11,447169(98.5)

Impairment losses of goodwill

61,859－(100.0)

Other income (Non-recurring)

3,045

7,714

153.4

Other expenses (Non-recurring)

11,537

19,606

69.9

Operating Income (Loss)(58,904)(11,722)－Net Income (Loss) Attributable to Owners of Parent(57,952)(4,715)－

Q4 (October to December)

2019

2020

213,994

193,409

(9.6)

121

114

(6)

Gross Profit

99,01787,423(11.7)

Selling, General & Administrative Expenses

101,239

89,673(11.4)

Other income (Recurring)

187

209

11.8

Other expenses (Recurring)

1,264

2,190

73.3

133

65

(51.0)(3,166)(4,167)－

Other income (Non-recurring)

908

5,932

553.2

Other expenses (Non-recurring)

2,277

4,534

99.1

Operating Income (Loss)(4,535)(2,769)－(2,258)(71)－

Change(%)

Continuing Operation (Beverage Business)
Revenue
Sales volume of beverage business (million cases)

Investment gain on equity method
Business Income (Loss)Net Income (Loss) Attributable to Owners of Parent* 1. “Business Income (loss)” is a measure of our recurring business performance that is calculated as costs of goods and selling, general andadministrative expenses are deducted from revenue, and other income and expenses are added and subtracted accordingly.
2 Net Income (Loss) Attributable to Owners of Parent is a total of continuing operation and discontinued operation results.

3

Net revenue of continuing operation (beverage business) for full-year 2020 declined 98,053 million yen, or 11.0 % to 791,956
million yen, reflecting declining volume trends since March, driven by the ongoing impact of COVID-19 and unseasonably
rainy and cool weather in the summer, especially in the month of July.
Business income from continuing operations declined by 11,278 million yen or 98.5 %, to 169 million yen. This reflects agross profit decline driven in large part by negative channel mix due to volume declines in the vending and convenience store
channels, partially offset by significant efforts to drive cost reductions across labor, promotional activities and back-office
expenses.
Consolidated operating loss from continuing operations improved from the prior year to a loss of 11,722 million yen (58,904
million yen loss in the prior year) mainly by cycling a 61,859 million yen impairment loss on Goodwill in the prior-year second
quarter. As a reference, other income (non-recurring) includes 2,520 million yen of government subsidies which partially offset
temporary paid leave expenses in 2020 due to the COVID-19 pandemic. Other expenses (non-recurring) in 2019 results include
9,184 million yen of special retirement allowances and others due to the introduction of a voluntary employee retirement program.
Other expenses (non-recurring) in 2020 include 3,923 million yen of temporary paid leave expenses, 4,546 million yen oftransformation-related expenses and special retirement allowances of 7,969 million yen.
Net loss attributable to owners of parent for the full-year, a total of continuing operations and discontinued operations, was
4,715 million yen (57,952 million yen loss in the prior year) led by improvement of the operating loss.

Beverage volume performance
Full-year volume declined 9% due to a sharp decline starting in March triggered by less consumer traffic and reduced operating
hours in restaurants and other businesses as a result of countermeasures to prevent the spread of COVID-19. This impact waspartially offset by the contribution of the ready-to-drink alcohol brand, Lemon-dou launched nationwide in October 2019.
Fourth-quarter volume declined 6% versus prior year period, reflecting a gradually recovering trend from the second quarter tothe end of the year.
Full-year nonalcoholic ready-to-drink (NARTD) beverage volume declined 11%, and fourth-quarter volume declined 6%.
Volume declines were led by the on-premise (retail & food), vending and convenience store channels as a result of people
refraining from going out and limited operations of restaurants and eating outlets. We continued to gain share in the vending
channel, but as sales volumes declined sharply in train stations, schools, leisure venues and offices, full-year vending channel
volume declined 13%, which has a strong impact on overall net-sales mix. Retail & food channel sales volume declined 28%
driven primarily by a sharp decline in food channel volume impacted by closure and shortened operating hours of eating anddrinking outlets. This decline was partially offset by continued strong growth in the online channel. Full-year convenience
store channel volume declined 11%, reflecting lower consumer traffic as well as a revised marketing and product launch calendar
due to the postponement of the Tokyo 2020 Olympic Games. Drug & Discounter (D&D) channel volume has grown since
February, and volume grew 8% for the full year, led by increased shopper traffic, demand for home consumption and bulk
purchasing. Supermarket volume increased 1% supported by value share and volume growth in the fourth quarter.
In terms of beverage category performance, sparkling beverages declined 9%, offsetting growth from renewed Coca-Cola
Zero and the newly-launched Fanta Premiere series. Non-sugar tea (NST) volume decreased 9%. Coffee volume declined 7%,
as growth in PET bottled coffee brands, including Georgia Japan Craftsman and the new Georgia Latte Nista, was offset by adecline in can and bottle can products. The sports drink category volume declined 12% as a result of a decline in the overall
category, with weaker performance in large PET packaging. Water volume declined 3%, as immediate consumption smallpackage volume declines offset emerging growth in large PET packages in supermarket and Drug and Discounter channels.
The ready-to-drink alcohol brand, Lemon-dou continues to perform well since expanding nationwide in October 2019 andsold 7.87 million cases in 2020, including newly added SKU “Kamisori Lemon” in December 2020.
(Outlook for next fiscal year)
In 2021, we expect uncertainty to continue in the overall Japan NARTD beverage market. Although cycling of the COVID19 impact from 2020 can be expected, the Japanese government declared a renewed state of emergency in January 2021 due tothe rapidly increasing COVID-19 infection rate, and this situation is expected to continue at least into March, with little visibility
into a timeline for vaccination and a broader return to normal in the market.
Under these circumstances, and reflecting the guiding principle of our mid-term strategic business plan announced in August
2019 that “business as usual is not an option”, we are keeping a strict focus on managing what is in our control, and we willcontinue to drive fundamental business change to recover and grow by transforming our cost structure, including organization
4

restructuring and digitalization, focusing on an appropriate balance of marketing “big bets” and innovation, and increasing frontfacing investments for growth in space-to-sell and market share.
In the commercial area, while the impact of COVID-19 is expected to continue, we will work closely with Coca-Cola (Japan)
Company, Ltd. to acheive steady profit growth in the era of “New Normal” by staying relevant to evoving consumer purchasetrends and channel mix and by “growing where the growth is”. Regarding strategic initiatives for growth categories, we launched
a new product named “Lemon-dou Kamisori Lemon” to further expand our presence in ready-to-drink alcohol beverages at theend of 2020. In addition, we continue to expand sales of the “Fanta Premier” series that contains fruit puree and features a rich,adult-oriented sparkling taste, as well as high value-added functional products like “Karada Odayakacha W”, and the premium“Georgia Latte Nista” coffee series, along with extensive deployment of “COSTA Coffee”, the largest coffee brand in Europe.
Regarding our important vending channel, we aim to deliver sustainable growth by selectively increasing vending machine
placements with a ROI focus on high-potential locations, and gearing up the digital strategy by utilizing high-performing tools,
such as our smartphone app “Coke ON”. In addition, together with The Coca-Cola Company, a worldwide Olympic partner, we
will leverage the excitement of the Tokyo Olympic and Paralympic Games which were postponed to 2021, and implement
comprehensive marketing campaigns to activate the market, based on multiple scenarios to align with the actual event operations.
Regarding our efforts to strengthen manufacturing capabilities and optimize our logistics and distribution network, which are
key elements of our growth plan, we will fully leverage our expanded manufacturing capacity to optimize manufacturing
efficiency and inventory levels and introduce new products and new packages, including those in the new alcohol category, as
well as enhancing our logistics and distribution infrastructure. As a part of our logistics network optimization efforts, that wecall the “Shinsei Project”, we continue to build a high-quality and low-cost supply chain network that ensures stable supply,
centered on our newest high-capacity automated warehouse facility and “Mega Distribution Center” in Saitama, which started
operations in February 2021. Going forward, we will work on optimizing the number of sales centers and other inventory
locations that will operate in sync with the Saitama Mega DC.
Finally, we will continue to streamline and transform our operations through the standardization of business processes andpromotion of digital transformation to build a resilient cost structure that can respond to the changes in the business environment
with agility, and improve the balance sheet from the standpoint of appropriate capital management. Furthermore, we are actively
strengthening people development initiatives in accordance to our company “Mission, Vision and Values”, and pushing forward
ESG-related initiatives through the implementation of our CSV (creating shared value) Goals, which include the ambitious“2030 Packaging Vision” for the Coca-Cola system in Japan in order to contribute to the global Coca-Cola system’s goal torealize a World Without Waste.
We will continue to execute the above initiatives, but there are many uncertainties related to the impact of the ongoing COVID19 pandemic, including the new declaration of a state of emergency in Japan, the expected timing of a reduction in infection
rates and a potential vaccine approval, and the impact on the market. Therefore, it is not possible to estimate and announce ourfull-year 2021 earnings forecast at this time. We will provide an update when we are able to estimate the impact to our outlook.
In the meantime, our focus will be on delivering improvements in the following areas:Value share growth

New recurring cost savings from ongoing transformation initiatives and additional cost focus to offset weaker topline
Restraint in new capital investments in 2021 during ongoing COVID-19 uncertainty



Reinstatement of full-year dividend outlook of 50 yen per share
Good stewardship of capital, including ongoing balance sheet optimization due to focus on core beverage businesssegment, sales of under-utilized assets and cross shareholdings and prudent investment focus grounded in ROI(2) Analysis of Financial Position
Assets at the end of this fiscal year were 939,603 million yen, a decrease of 12,840 million yen from the end of the prior year.
This is mainly due to a decrease of Property, plant and equipment as a result of restrained investment in sales equipment andselling idle assets, decrease of Right-of-use assets by decline of office locations due to termination of tenant agreements, etc.
Liabilities at the end of this fiscal year were 437,510 million yen, a decrease of 8,443 million yen from the end of the prioryear. This is mainly due to an increase of Bonds and Debt as we accessed 50 billion yen in short-term borrowing from banks in
April 2020 to ensure sufficient liquidity and access to cash as a backstop during this period of high uncertainty, which was offset
by a decline of Trade and other payables driven by sales volume declines and a decrease of Net Defined Benefit Liabilities due
to favorable pension fund performance.
Net Assets at the end of this fiscal year were 502,093 million yen, a decrease of 4,398 million yen. This is mainly due to a5

decrease of Other Comprehensive Income and a decline of Retained Earnings as a result of a decrease of net income and paying
year-end dividends for 2019.
Also, in this fiscal year, the Company concluded a share transfer agreement with Q-Partners Co., Ltd. to sell all shares of its
consolidated subsidiary, Q’sai Co., Ltd. to divest its healthcare and skincare business. Accordingly, assets and liabilities related
to the Company’s healthcare and skincare business have been classified as held for sale from this fiscal year. As a result, assets
held for sale increased 48,138 million, and liabilities directly related to assets held for sales increased 7,193 million, comparedto the end of the prior year.
The cash flow conditions for the full-year are as follows:<Cash Flows from Operations>
Net cash used for operations was 43,716 million yen (42,629 million net cash generated from operations in the previous year
period). This results mainly from the 12,065 million yen net loss before tax from continuing operation, increase of other assets,
decrease of other liabilities, payment of income taxes, etc. offset by depreciation, decrease of inventories, refund on taxes, etc.
<Cash Flows from Investment Activities>
Net cash used for investment activities was 52,076 million yen (68,308 million yen in the previous year period), as cash used
for purchasing of fixed assets as we recover our supply network and progressively expand production capacity, etc. was offset
by cash-in from Proceeds from sales of property, plant and equipment and intangible assets and Proceeds from sale of otherfinancial assets by selling idle assets and cross-share holdings.
<Cash Flows from Financing Activities>
Net cash generated from financing activities was 20,912 million yen (55,835 million 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
payment of bond redemption, year-end dividends and lease liabilities.
As a result of these activities, cash and cash equivalents at the end of the fiscal year was 126,378 million yen, an increase of
12,553 million yen versus the prior year.
(3) Basic Policies for Income Distribution and Dividends for 2020 and 2021
The Company periodically reviews its capital structure and dividend payout ratio to maximize shareholder returns while
maintaining flexibility to pursue growth opportunities. The Company seeks to use retained earnings to fund investment forsustainable growth for our business and further enhancement of corporate value.
CCBJH sets its basic policy regarding dividends, which includes active redistribution of profits while placing the highest
priority on paying dividends in a stable manner, by comprehensively reviewing the Company’s business performance and levelof retained earnings. In addition, the Company has set a payout ratio target of 30% or more for net profit attributable to ownersof the parent. The company pays interim and year-end dividends.
With regards to the dividends for the fiscal year ending December 2020, the Company plans to distribute an annual dividendof 25 yen per share, with no interim dividend and a year-end dividend of 25 yen per share. In order to reduce the impact of thedeclaration of a state of emergency for the entire nation in response to the spread of COVID-19 and the decision to postpone theOlympic Games Tokyo 2020 on its business activities, the Company has been making efforts to reduce costs, review capital
investment plans, and optimize the balance sheet. And taking into consideration of the current profit levels and cash flow
performance, the Company plans to distribute the above dividends.
With the aim of placing the highest priority on stable dividends, the Company forecasts its annual dividend for the fiscal year
ending December 2021 to recover to 50 yen, with an interim dividend of 25 yen and a year-end dividend of 25 yen per share,
equivalent to those of the fiscal year ending December 2019.
The Company continues to consider means to maximize shareholder reruns by comprehensively reviewing the Company’sbusiness performance and level of retained earnings, including implementation of share buybacks.

2. Basic Concept Concerning the Selection of Accounting Standards
Coca-Cola Bottlers Japan Holdings Group (The Group) discloses consolidated financial statements based on International
Financial Reporting Standards (IFRS) starting from the fiscal year ending December 2018, with a view to enhancing theinternational comparability of financial statements and contributing to the improved convenience for shareholders and investorsof the Company.

63. Consolidated Financial Statements and Notes(1) Consolidated Statement of Financial Position
As ofDecember 31, 2019
AssetsCurrent assets:
Cash and cash equivalents
Trade and other receivables
Inventories
Other financial assets
Other current assets
Subtotal
Assets held for trading

113,825
98,52874,120752
17,587

114,778
96,00968,180702
17,195

304,812296,865
48,138－304,812

Total current assets
Non-current assets:
Property, plant and equipment
Right-of-use assets
Goodwill
Intangible assets
Investments accounted for using the equity
methodOther financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

7(Millions of yen)
As ofDecember 31, 2020

345,003

467,136
39,62927,021
67,123

460,50229,810－66,193310

287

33,4996,093
6,820
647,632

25,6404,986
7,183
594,601

952,444939,603As ofDecember 31, 2019

(Millions of yen)
As ofDecember 31, 2020

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
Subtotal
Liabilities directly associated with assets held
for sale
Total current liabilities

122,364
17,261
6,634
916
1,104
20
19,886
168,186

102,480
51,072
5,547
408
3,238
9
15,923
178,676－

7,193

168,186

185,869

Non-current liabilities:
Bonds and debts
Lease liabilities
Other financial liabilities
Net defined benefit liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities

188,487
34,138－24,9082,104
24,876
3,254

187,51425,858605
14,876
2,119
17,296
3,375

Total non-current liabilities
Total liabilities

277,767
445,953

251,641
437,510

15,232450,526
121,372(85,649)
4,517

15,232450,605
120,473(85,654)
1,095

－

(107)

505,999492

501,643450

506,491

502,093

952,444939,603

Equity:Capital stock
Capital surplus
Retained earnings
Treasury shares
Accumulated other comprehensive income
Accumulated other comprehensive income ofdisposal groups classified as for sale
Equity attributable to owners of parent
Non-controlling interests
Total equity
Total liabilities and equity8(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statements of Income)For the year ended
December 31, 2019
Continuing operations
Revenue
Cost of sales
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
Income (loss) for the year before income taxes
Income tax expense
Net income(loss) for the year from continuing operations
Discontinued operations
Net income(loss) for the year from discontinuing
operations
Net income (loss) for the year
Net income (loss) for the year attributable to
Owners of parent
Loss from continuing operations attributable to ownersof parent
Profit from discontinuing operations attributable toowners of parent
Non-controlling interests

Earnings per share (yen)Continuing operations
Discontinued operations
Loss per share

9(Millions of yen)
For the year ended
December 31, 2020

890,009468,785
421,224
407,51061,8594,096
14,899791,956
429,040
362,916
359,645－8,486
23,23543(245)(58,904)
1,144
1,162
(58,922)
1,357(11,722)767
1,110(12,065)(4,918)(60,278)(7,148)

2,383

2,418

(57,895)(4,729)(60,313)(7,130)

2,361

2,415

56

(14)

(335.35)
13.13(322.22)(39.76)13.47(26.29)(Consolidated Statements of Comprehensive Income)Net income (loss) for the year
Other comprehensive income.
Items that will not be reclassified subsequently toincome or loss:
Remeasurements of defined benefit plans
Share of other comprehensive income of equity
method investees
Net change in financial assets measured at fair value
through other comprehensive income
Subtotal
Items that may be reclassified subsequently to income orloss:
Cash flow hedges
Subtotal
Total other comprehensive income (loss) for the year
Total comprehensive income (loss) for the year

For the year ended
December 31, 2019(57,895)(Millions of yen)
For the year ended
December 31, 2020
(4,729)

5,596

7,662

4

－

621

(3,003)

6,221

4,659

(434)
(434)

(2,157)(2,157)

5,788(52,108)

2,502(2,228)(52,164)56(2,214)(14)

Comprehensive income (loss) attributable to:
Owners of parent
Non-controlling interests10(3) Consolidated Statements of Changes in Equity
For the year ended December 31, 2019
(Millions of yen)
Equity attributable to owners of the parent company
Noncontrollinginterests

Capital stockSharepremium

Retainedearnings

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－－(57,952)－－(57,952)

56(57,895)

－

－

－

－

5,788

5,788

－

5,788

－

－

(57,952)－

5,788(52,164)56(52,108)

Dividends of surplus－－(9,071)－－(9,071)(22)(9,093)Purchase of treasury stock

－

(64)

－

(13,002)－(13,066)－(13,066)

Disposal of treasury stock

－

(1)

－

3

－

3

－

3

Transactions of sharebased payment

－

57

－

－

－

57

－

57

Reclassification fromaccumulated othercomprehensive income toretained earnings

－

－

6,315

－

(6,315)

－

－

－

－

－

－

－

129

129

－

129

－

(7)

(2,756)(12,999)(6,186)(21,947)(22)(21,970)

15,232450,526

121,372(85,649)4,517

505,999492

506,491

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 theyear
Other comprehensive
income (loss)
Total comprehensive income(loss) for the year
Transactions with owners,
etc.

Reclassification fromaccumulated othercomprehensive income tonon-financial assets
Total transactions withowners, etc.
Balance as of December 31,
2019

TreasurysharesOther
comprehensive
incomeaccumulated

11

Total

Total

For the year ended December 31, 2020
(Millions of yen)
Equity attributable to owners of the parent company

CapitalAccumulated other
Other
comprehensive
comprehensive income of disposal
incomegroups classified asaccumulated
for sale

Noncontrollinginterests

stock

Share
premium

Retainedearnings

Treasuryshares

15,232450,526

121,372(85,649)4,517－

505,999492

506,491－－(4,715)－－－(4,715)(14)(4,729)

－

－

－

－

2,502

－

2,502

－

2,502

－

－

(4,715)

－

2,502

－

(2,214)(14)(2,228)Dividends of surplus－－(4,484)－－－(4,484)(28)(4,512)

Purchase of treasury stock

－

－

－

(8)

－

－

(8)

－

(8)

Disposal of treasury stock

－

(1)

－

3

－

－

2

－

2

Transactions of sharebased payment

－

80

－

－

－

－

80

－

80

Reclassification fromaccumulated othercomprehensive income toretained earnings

－

－

8,300

－

(8,300)

－

－

－

－

－

－

－

－

2,268

－

2,268

－

2,268

－

－

－

－

107

(107)

－

－

－

－

79

3,816

(5)

(5,924)(107)(2,142)(28)(2,170)15,232450,605

120,473(85,654)

1,095

(107)

501,643450

502,093

Balance as of January 1, 2020
Comprehensive income forthe year
Net income (loss) for theyear
Other comprehensive
income (loss)
Total comprehensive income(loss) for the year
Transactions with owners,
etc.

Reclassification fromaccumulated othercomprehensive income tonon-financial assets
Transfer to accumulated
other comprehensive
income of disposal groups
classified as for sale
Total transactions withowners, etc.
Balance as of December 31,
2020

12

Total

Total

(4) Consolidated Statements of Cash Flows(Millions of yen)
For the year ended
December 31, 2019

For the year ended
December 31, 2020

Cash flows from operating activities
Income (loss) for the year before income taxes fromcontinuing operations(58,922)(12,065)

Income (loss) for the year before income taxes fromdiscontinuing operations

3,502

3,545

56,95162,870
(515)
(509)
1,175

59,583
1,057
88
(432)
1,095

(43)

245

(2,183)(5,201)

2,513

3,728

(6,149)(5,339)
(266)
6,259
(213)
(3,543)(451)

Adjustments for:
Depreciation and amortization
Impairment loss
Change in allowance for doubtful accounts
Interest and dividends income
Interest expenses
Share of loss (income) of entities accounted for using
equity method
Gain on sale of property, plant and equipment andintangible assets
Loss on disposal and sale of property, plant and equipment
and intangible assets
Decrease (increase) in trade and other receivables
Decrease (increase) in inventories
Decrease (increase) in other assets
Increase (decrease) in trade and other payables
Increase (decrease) in net defined benefit liabilities
Increase (decrease) in other liabilities
OthersInterest received
Dividends received
Interest paid
Income taxes paid
Income taxes refund

55,1381508(1,018)(13,675)
1,675

1,043
3,909
(5,196)(9,277)2,038(1,904)318
42,5730431(945)(6,022)
7,678

Net cash provided by operating activities

42,62943,716(78,213)(67,565)

7,621

12,325

(58)
2,255
88
(68,308)

(55)
3,237
(17)
(52,076)

Subtotal

Cash flows from investing activities
Acquisitions of property, plant and equipment and intangible
assetsProceeds from sales of property, plant and equipment andintangible assets
Purchases of other financial assets
Proceeds from sale of other financial assets
OthersNet cash used in investing activities

13

For the year ended
December 31, 2019
Cash flows from financing activities
Increase (decrease) in short-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of bonds
Bond redemption
Dividends paid
Dividends paid to non-controlling interests
Proceeds from disposal of treasury stock
Purchases of treasury stock
Repayments of lease liabilities

For the year ended
December 31, 2020

(24,000)(1,686)
149,441(20,000)(9,071)(22)
3(13,095)(7,576)50,000(1,274)－(16,000)(4,484)(28)
2(8)(7,296)

Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year

73,994
48,31565,51020,912
12,553
113,825

Cash and cash equivalents at the end of the year

113,825

126,37814

(5) Notes to Consolidated Financial Statements(Notes Relating to Going Concern Assumption)
Not applicable.
(Changes in Accounting Policies)
Not applicable.
(Segment Information, etc.)(1) Reportable segments
Operating segments are defined as the components of the Group for which separate financial information is available thatis evaluated regularly by the chief operating decision maker in making resource allocation decisions and in assessing
performance.
From the current financial year, the Group has changed to a single segment of "Beverages". This is because the healthcare
and skincare business was classified as a discontinued operation following the conclusion of an agreement to transfer all
shares in Q'sai to Q-Partners Inc. on 15 December 2020.
Reportable segments

Principal Products and Services

Beverage Business

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 JapanThe Board of Directors evaluates the performance of each segment compared to other companies in the same industry byusing operating income as reported in accordance with generally accepted accounting principles (IFRS).
(2) Information for each product and service
This information is omitted because the same information is disclosed in "(1) Reportable Segments."(3) Information for each region
Sales revenue by geographic region is omitted because the revenue of domestic sales to external customer accounts forthe majority of sales revenue in the consolidated statements of income.
Since the carrying amount of non-current assets in Japan accounts for the majority of non-current assets in the consolidated
statement of financial position, the description of non-current assets by region is omitted.
(4) Major customer
There is no customer to which sales exceeds 10% of the Group’s total revenue.

(Per share information)
The calculation of basic earnings per share is based on the net income for the year attributable to owners of the Company andthe weighted-average number of ordinary shares outstanding during the years.
The basis for calculating basic and diluted earnings per share is as follows.
For the year ended
December 31, 2019
Net income (loss) for the year attributable to ownerof parent (million yen)
Weighted-average shares of ordinary shareoutstanding (in thousands)

For the year ended
December 31, 2020

(57,952)(4,715)

179,852

179,350(335.35)
13.13(39.76)
13.47

Earnings (loss) per share (yen):
Continued operations
Discontinued operations

15

(Significant Subsequent Events)
The Company’s Board of Directors resolved to sell all of the shares of the Company’s consolidated subsidiary, Q’sai Co., Ltd to
Q-Partners Co., Ltd. (the Acquiring Company”) , a company formed for this purchase led by investment funds in which Advantage
Partners Inc. provides services, euglena Co., Ltd., and, Tokyo Century Corporation on December 15, 2020 and sold all of the sharesof the Company’s consolidated subsidiary, Q'sai Co., Ltd. on February 1, 2021.
consolidation of the Company.

As a result, Q’sai is removed from the scope of

1. Reasons for the share transfer
In the healthcare and skincare business, we have been promoting improvements in efficiency and business contribution and havebeen examining the possibility of evaluating future opportunities for synergies across the two business segments.
In order to support the growth of this business at the next stage, we have determined that the transfer of the business to the transfereecompany is the most appropriate way to support the growth of the business, and we are therefore transferring all of our shares in
Qsai.
2. Overview of the subsidiary (Q'sai) to be sold(1)
Name
Q'sai Co., Ltd.
(2)

Description of Businesses(3)

Transaction details

Manufacture and sale of healthcare products, skincare products, etc.
The Company has a business relationship with Q’sai,including the purchase of products and raw materials, andborrowing and lending of funds.

3. Name of the company to which the shares will be transferred
Q-Partners Co., Ltd.
4.Number of shares to be sold, selling price and status of shares held before and after the transaction
(1)
(2)
(3)
(4)
(5)

Shares owned by the Company prior
to the transaction
Number of the shares to be soldSelling price

302,755 shares(Voting rights the Company owns: 100%)
302,755 shares
Approximately 37.8 billion yen

Gain on sale
Shares owned by the Company after
the transaction

Approximately 12.5 billion yen
0 shares(Voting rights the Company owns: 0%)16

4. Others(1) Changes in Key Consolidated Management Indicators
Japanese Standard

Net revenues / Net sales
Net revenues growth rate /Net sales growth rate
Operating income
Operating margin
Recurring income
Recurring income margin
Income before income taxes
and minority interests / Income
for the year before income tax
Ratio of income before income
taxes to sales / Ratio of income
for the year before income tax
to net sales
Net income attributable toowners of the company(millionyen)(%)(millionyen)(%)(millionyen)(%)(millionyen)(%)(million
yen)

IFRS

FY2016FY2017FY2017FY2018FY2019FY2020460,455

872,623

837,069

927,307890,009791,956

4.5

89.5

－

10.8

(4.0)

(11.0)

21,14340,57937,594

14,682(58,904)(11,722)

4.6

4.7

4.5

1.6

(6.6)

(1.5)

20,60239,859

－

－

－

－

4.5

4.6

－

－

－

－

12,707

39,24037,914

14,767(58,922)(12,065)

2.8

4.5

4.5

1.6

(6.6)

(1.5)

5,245

25,244

21,967

10,117(57,952)(4,715)

1.1

2.9

2.6

1.1

(6.5)

(0.6)

5,022

31,97630,065

3,197(52,108)(2,228)Net income attributable toowners of the company/Net
revenues attributable to owners(%)

of the company
Comprehensive income / Total(millioncomprehensive income

yen)Earnings per share

(yen)

48.05

144.26125.5352.68(322.22)(26.29)Diluted earnings per share

(yen)

－

－

－

－

－

－

ROE

(%)

2.0

5.7

4.6

1.6

(10.7)

(0.9)

ROA

(%)

5.5

6.3

5.6

1.6

(6.4)

(1.3)

377,468

883,918

929,304

877,472

952,444939,603

261,173

627,485

655,038

580,906

506,491

502,093

(%)

69.1

70.9

70.4

66.2

53.1

53.4

(yen)

2,389.28

3,070.01

3,204.90

3,163.63

2,821.27

2,797.03(times)

71.7

28.5

32.8

62.4

(8.7)

(61.2)

Total assets
Net assets / Total equity(millionyen)(millionyen)

Net assets (excl. minority
interests) to total assets / Ratioof equity attributable to parent
ownersNet assets (excl. minority
interests) per share / Equity
attributable to owners of theparent per share
Price earnings ratio / Ratio of
equity attributable to parent
owners
*1. Items with "/" will be named "Japanese Standard / IFRS".
*2. As for the amount, Japanese Standards are rounded down, and IFRS is rounded off. In addition, the ratio is rounded off.

17

*3. In the fiscal year ending 31 December 2020, the Healthcare and Skincare business has been classified as a discontinued
operation as a result of the decision to sell all shares in Q'sai held by the Company. As a result, revenue, Business Income andoperating loss for the previous financial year have been reclassified to the amounts for continuing operations excluding discontinued
operations(2) Officer Change
Following transfer of an officer is decided internally in the Board Meeting held today.
1. New Director Candidates (as of March 25, 2021)
Directors serving on the Audit & Supervisory Committee (Outside Director)
Name
Current
President, Greater China & Mongolia Operating Unit,
Vamsi Mohan Thati
The Coca-Cola Company
2. Resigning Directors (as of March 25, 2021)
Director serving on the Audit & Supervisory Committee
Enrique Rapetti (Outside Director)
3. Reference Information (Board structure as of March 25, 2021)(1) Directors (excluding Directors serving on the Audit & Supervisory Committee)
Representative Director
Calin Dragan
Representative Director
Bjorn Ivar Ulgenes
Director
Hiroshi Yoshioka (Outside Director)
Director
Hiroko Wada (Outside Director)
Director
Hirokazu Yamura (Outside Director)(2) Directors serving on the Audit & Supervisory Committee
Director
Irial Finan (Outside Director)
Director
Celso Guiotoko (Outside Director)
Director
Nami Hamada (Outside Director)
Director
Vamsi Mohan Thati (Outside Director)* The official decision will be made according to the resolutions required during the Ordinary General Meeting of Shareholder
for the fiscal year ended December 31, 2020 to be held on March 25, 2021 and subsequent meetings of Board of Directors andAudit & Supervisory Committee to be held on the same day.
End of document18