This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2021 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Quarterly Report（Report Pursuant to Article 24, Paragraph 1 of the Financial Instruments
and Exchange Act）
Fiscal Year
From April 1, 2021
（The 2nd Quarter of the 64th Term）
To June 30, 2021

Coca-Cola Bottlers Japan Holdings Inc.

（E00417)

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2021 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Table of Contents[Cover Page]
Part I Corporate information ..................................................................................................................................................................... 1
Section 1. Corporate overview .............................................................................................................................................................. 1
1. Summary of business results ......................................................................................................................................................... 1
2. Business content ............................................................................................................................................................................ 1
Section 2. Business situations................................................................................................................................................................ 2
1. Risk of business ............................................................................................................................................................................. 2
3. Significant management contracts ................................................................................................................................................. 7
Section 3. Status of the filing company ................................................................................................................................................. 8
1. Status of Shares ............................................................................................................................................................................. 8
2. Status of Officers ......................................................................................................................................................................... 10
Section 4 Accounting status................................................................................................................................................................. 11
1. Condensed Quarterly Consolidated Financial Statements and Notes .......................................................................................... 12
2. Others .......................................................................................................................................................................................... 32
Part II Information of guarantor companies of the filing company ......................................................................................................... 33

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2021 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

【Cover Page】[Documents to be submitted]

Quarterly Report[Underlying article]

Financial Instruments and Exchange Act Article 24-4-7 Paragraph 1[Recipient]

Director-General of the Kanto Local Finance Bureau[Submission date]August 12, 2021

[Fiscal year]

64th fiscal term (from April 1, 2021 to June 30, 2021)[Company name]Coca-Cola Bottlers Japan Holdings Inc.

[Name and position of representative]

Calin Dragan, Representative Director & President[Address of head office]9-7-1 Akasaka, Minato-ku, Tokyo[Telephone number](03)-6896-1707[Name of administrative contact]

Satoshi Kon, Head of Finance Operations and Controllers Division, Finance[Closest contact point]

9-7-1 Akasaka, Minato-ku, Tokyo[Telephone number](03)-6896-1707[Name of administrative contact]

Satoshi Kon, Head of Finance Operations and Controllers Division, Finance[Location provided for viewing]

Tokyo Stock Exchange, Inc.
（2-1 Nihonbashi Kabutocho, Chuo-ku, Tokyo）

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) filed with the Director-General of the Kanto
Local Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments andExchange Act of Japan. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki
Hokokusho shall prevail.
For the purpose of this Quarterly Report, unless context indicates otherwise, the “Company”, “we”, and “CCBJH” refer to Coca-Cola
Bottlers Japan Holdings Inc., and the “Group” refers to the Company and its subsidiaries.

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2021 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Part I Corporate information
Section 1. Corporate overview
1. Summary of business results
The 63rd Term
The 64th Term
Consolidated Cumulative Consolidated Cumulative
Second Quarter
Second Quarter

Issuance

From
January 1, 2020
toJune 30, 2020

Accounting period

From
January 1, 2021
toJune 30, 2021

The 63rd Term
From
January 1, 2020
toDecember 31, 2020

Revenue[Current Second quarter](Millions of yen)

374,598[181,569]

369,309[200,909]

791,956

Loss before income tax(Millions of yen)

(15,067)(18,475)(12,065)

Net loss for the period attributable to owners(Millions of yen)of the parent(6,452)[(761)](354)[(1,670)](4,715)Comprehensive income (loss) attributable to(Millions of yen)owners of the parent(11,494)

3,149(2,214)Equity attributable to owners of the parent(Millions of yen)490,715499,875

501,643

Total Assets(Millions of yen)

974,323

884,060

939,603

Basic loss per share(Yen)(35.97)[(4.24)](1.98)[(9.31)](26.29)Diluted earnings per share

(Yen)

－

－

－

Ratio of equity attributable to owners of theparent to total assets

(%)

50.4

56.5

53.4

Cash flows from operating activities(Millions of yen)

11,274

10,60643,716

Cash flows from investing activities(Millions of yen)

(47,697)

21,119(52,076)

Cash flows from financing activities(Millions of yen)

41,203(58,563)

20,912

Cash and cash equivalents at the end of the(Millions of yen)period118,605

99,540126,378

Notes: 1. Because the Company prepares quarterly consolidated financial statements, the summary of standalone business results for the Company is not described.
2. Consumption tax is not included in revenue.
3. Diluted earnings per share is not presented, as the effects of dilutive stock on earnings per share are anti-dilutive.
4. The consolidated financial statements are disclosed in accordance with International Financial Reporting Standards ("IFRS")
5. Figures are rounded to the nearest million yen.
6. In the fiscal year ending 31 December 2020, the businesses of Q'sai and its subsidiaries were classified as discontinued operations as a result of thedecision made in December 2020 to sell all shares in Q'sai Co. Ltd. held by the Company. Accordingly, the Revenue and the Loss before income tax forthe 63rd Term Consolidated Cumulative Second quarter and the 63rd Term Consolidated Second quarter accounting period have been reclassified to theamounts for continuing operations excluding discontinued operations. Refer to “Ⅳ. Financial information, (1) Notes to consolidated financial statements,
6. Disposal groups classified as held for sale and discontinued operations” for the reclassified amounts of the Revenue and Profit before income tax ofthe discontinued operations.

2. Business content
There were no significant changes in the businesses that the Group (the Company and its subsidiaries) is engaged in during
the Second quarter of 2021.
As the transfer of all shares of Q'sai Co., Ltd. ("Q'sai") was completed during the first quarter of the current fiscal year, thecompany and its subsidiaries were excluded from the Group.
As the transfer of all shares of Apex Nishi-Nihon Corporation was completed during the second quarter of the current fiscal
year, the company was excluded from the scope of application of the equity method.

－1－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2021 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Section 2. Business situations
1. Risk of business
During the second quarter of the current fiscal year (April 1, 2021 to June 30, 2021, hereinafter referred to as "the second
quarter"), the coronavirus infection (COVID-19), continued to impact the business influenced by government responses. On April
25, the government declared a state of emergency for the second time this year, which continued until June 20. As part of the stateof emergency the government implemented further measures to prevent the spread of the disease, such as shortening the opening
hours of restaurants and refraining from holding large-scale events. Therefore, the outlook for sales in the beverage businessremained uncertain during the second quarter.
In this circumstance, the Company is actively monitoring the risk and responding to the changes in the business environment.
We have sped up our business transformation and management reforms, responded to changes in customer and consumer behavior,and pushed forward with cost reductions. The Company remains focused on employee safety maintaining COVID-19 responseroutines and has started vaccinating our employees, their family members, and subcontractors at our workplaces. In addition, theCompany has continued telecommuting, mainly in the indirect departments, thereby reducing employee exposure in the work place.
In the third quarter of the current fiscal year (July 1, 2021 to September 30, 2021), we will continue to actively monitor our
overall risk environment and uncertainties remain about the impact of the revised Olympics and Paralympics Games Tokyo 2020
on our business. There are no significant changes to other business risks as described in the Annual Securities Report for the 2020
fiscal year.

2. Management's analysis of financial condition, results of operations and cash flows
Note that matters related to future developments that are mentioned in this section are judgments of the Group that were madeas of the date of quarterly securities report submission.
(1) Qualitative Information on year-to-date second quarter Consolidated Financial Results
As the effect of the coronavirus (COVID-19) continues, the continuing supply of our goods and services which are essential forour customers and consumers, and the safety and health of our employees and communities are our top priorities. Our mission is todeliver happy moments to everyone, and we have been working with comprehensive business continuity actions in place to ensure
safe and secure product supply. In addition to implementing comprehensive infection prevention measures in our commercial
activities, we also implemented more flexible work style initiatives, such as working from home and adoption of online meetings.
In our efforts to ensure the safety of our employees and their families, we have implemented workplace vaccinations in order tocreate an environment in which employees and their families can easily access vaccinations. We are granting special paid leave toemployees experiencing side effects from the vaccinations as well, depending on their working conditions.
In the year-to-date second-quarter period (January 1, 2021 to June 30, 2021), while the industry cycle last year's COVID-19
impact from April in the previous fiscal year, the impact of the additional state of emergency declaration and other factors haveresulted in the total domestic nonalcoholic ready-to-drink (NARTD) beverage industry volume growth was soft and only increasedslightly compared to the previous fiscal year. Although the impact on consumer traffic at retail stores, restaurants and vending
machines continued, there was some recovery in demand in the second quarter at vending machines and restaurants, which weresignificantly affected in the same period of the previous year.
Under these circumstances, we have been working on measures to minimize the impact on sales by rolling out new products andresponding to changing trends in each channel. Under the guiding principle that “business as usual is not an option”, announced aspart of our mid-term strategic business plan announced in August 2019, we continue to drive fundamental business transformation
initiatives. Key initiatives include further evolving our vending channel operation model, relocation of product inventories, and theconsolidation of distribution bases centered around the Saitama Mega DC in order to optimize the distribution network in the Kantoarea, leading to the streamlining of the supply chain structure to achieve low-cost operations; and the promotion of new work styles.
Although the current business environment remains challenging, we are focusing on areas that we can control, and we are taking
steps to respond to changes in the business environment over the medium-to-long term by implementing key initiatives oftransformation based on our medium-term plan ahead of schedule, while seeking new opportunities for growth and efficiency.
As disclosed in the December 15, 2020, “Notice of Selling of Shares of Q'sai and Gain on The Sale of Shares as well as Revisionof Earnings Forecast”, the share transfer of Q'sai was completed on February 1, 2021. We have revised our business segment－2－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2021 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

reporting to reflect only the results of continuing operations, the beverage business, after the sale of the health and skincare segment
and relevant sections of prior year financial statements and notes have been reclassified.
Details for the year-to-date second-quarter period are as follows.

Highlights for the First Half
・ Market uncertainty continued. Despite the cycling impact of COVID-19, recovery of consumer traffic remains challenged
driven by the increase in COVID-19 cases leading to additional state of emergency declarations.
・ Sales volume increased 15% YoY in the second quarter and 3% in the first half driven by new products and channel-specificinitiatives tailored to the changing environment. Volume recovery lead to sales revenue increase of 11% in second quarter. We
continue to grow vending market share, with 27 consecutive months of value share growth. Although the OTC value share
was negative overall, supermarkets, drugstores & discounters gained share, while CVS channel continues to be an area ofimprovement. We will continue to focus on market share growth and aim to "win in the market” and “winning where thegrowth is”.
・ First half business income loss of 14,799 million yen. Revenue recovered in the second quarter, however the deteriorating
pricing, package mix and cycling impact of the large one-time cost savings conducted in the same period of the previous year
have had an impact. This year, we will invest in marketing and human capital at an appropriate level, which we restrained in
the previous year.
・ Transformation is progressing as planned and achieved about 6 billion yen of recurring cost saving in the first half of the year.
As the environment remains to be uncertain, we will continue to focus on what we can control and drive our transformation
to create a solid foundation for future growth. For this year the transformation in vending and supply chain has contributed
・ We continued to focus on ESG initiatives, and started the use of 100% recycled PET resin for our Brand Coca-Cola and othersmall PET bottles in May. With this initiative, we were able to reduce the CO2 per bottle by about 60%, as the Coca-Cola
Japan system as a whole, reducing our footprint by about 35,000 tons of CO2 per year.
Summary of Consolidated Financial Results(Millions of yen)

Year-to-date Q2 (January to March)
2020

2021

ChangeContinuing Operation (Beverage Business)
374,598369,309(1.4％)

212

217

3%

Gross Profit

169,544

163,269(3.7％)

Selling, General & Administrative Expenses

176,016

177,295

0.7％

Other income (Recurring)

373

415

11.4％

Other expenses (Recurring)

1,039

1,055

1.6％

Investment loss on equity method

(230)

(133)

－

(7,368)(14,799)－

Other income (Non-recurring)

0

4,601

－

Other expenses (Non-recurring)

7,569

8,053

6.4％

(14,937)(18,250)－(6,452)(354)－

Revenue
Sales volume of beverage business (million cases)

Business Loss

Operating Loss
Net Loss Attributable to Owners of Parent－3－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2021 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(Millions of yen)

Q2 (April to June)
2020

2021

Change181,569

200,909

10.7％

104

120

15％

Gross Profit

80,655

89,108

10.5％

Selling, General & Administrative Expenses

80,35391,869

14.3％

Other income (Recurring)

151

216

42.7％

Other expenses (Recurring)

571

664

16.3％

Investment income (loss) on equity method

(170)

6

－

Business Loss

(287)

(3,202)－Other income (Non-recurring)

－

3,611

－

Other expenses (Non-recurring)

6,221

3,516

(43.5％)

Operating Loss

(6,508)(3,107)－(761)(1,670)－

Revenue
Sales volume of beverage business (million cases)

Net Loss Attributable to Owners of Parent

Note: 1. “Business Loss” is a measure of our underlying or recurring business performance. Business Income (loss) deducts cost of goods and selling, generaland administrative expenses from revenue, and includes other income and expenses which we believe are recurring in nature.
2. Net Loss Attributable to Owners of Parent is a total of continuing operation and discontinued operation results.

Consolidated net revenue for year-to-date second-quarter 2021 declined to 369,309 million yen (1.4% decrease to 5,289
million yen from the prior-year period). Net revenue decreased in spite of a 3% increase in sales volume due to cycling of
COVID-19 impact in the same period in the prior year, and the adverse package and pricing mix affected by changes in theenvironment, including increase in demand of at home consumption due to consumers refraining from going out and working at
home.
Consolidated business loss was 14,799 million yen (7,368 million yen loss in the same period of prior year). Transformation
initiatives to achieve cost savings were not able to absorb the revenue decline driven by deteriorating price and package mix.
Among the costs that were controlled in the previous year, investments in marketing and human capital that will contribute tomedium- to long-term growth were implemented at appropriate levels.
Consolidated operating loss was 18,250 million yen (14,937 million yen loss in the same period of previous year). Other
income (non-recurring) includes 3,876 million yen in government subsidies for employment adjustment to offset temporary
leave expense. Other expenses (non-recurring) include 5,636 million yen in temporary leave expenses and 623 million yen intransformation-related expenses related to the implementation of transformation based on the medium-term plan, and 1,177
million yen in special retirement allowances due to voluntary employee retirement program.
Net income attributable to owners of parent for the quarter, a total of continuing operations and discontinued operation, wasa loss of 354 million yen (6,452 million yen loss in the prior year period) as a gain of 12,841 million yen was recorded indiscontinued operations as gains from stock sales due to the transfer of shares in Q’sai.
Beverage volume performanceFirst half 2021, increased by 3% due to introduction of new products, capturing at-home demand, and strengthening activities
in the growing online channel. In the second quarter, sales volume increased by 15% due to the cycling impact of COVID-19
and a rebound from the initial impact in the same period of the previous year.
In terms of channel performance, vending in the second quarter, with the state of emergency declaration being lifted in April
the consumer traffic recovered and volume increased by 18%, and increase of 2% for the first half. There was recovery in sales
per vending machine especially in outdoor locations. While the challenging operating environment continues, we continue togrow our market share in vending, with 27 consecutive months of value share growth. Supermarket, drugstore & discounters
increased by 7% and 9% respectively, for the first half, reflecting our efforts to “win where the growth is” by responding tochanges in the frequency of customer visits and consumption patterns, such as rising at-home consumption and bulk purchases.
CVS in the second quarter, due to intensified competitor promotion activities, led to intensified competition and resulted in－4－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2021 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

slower volume recovery, resulting in a 3% decrease for the first half. In retail and food channels, sales decreased by 12% for the
first half, due to reduced customer traffic at restaurants and other commercial venues especially during the first quarter. Whileonline sales are still relatively small, sales are growing significantly, with 60% growth driven by expansion of label-less products
in-line with changes in customers' consumption and consciousness.
In terms of beverage category performance, while the challenging operating environment continues, all major categories
recorded growth. Sparkling beverages increased 7% in the second quarter and was flat in the first half, with the contribution
from the new Fanta Premiere Orange and growth in supermarket and online. With the contribution from new Yakan Barley Tea
from Hajime, and Ayataka Café Matcha Latte, Non-sugar tea (NST) volume increased 17% for the second quarter and 4% for
the first half. Coffee volume decreased 2% for the first half with weak can coffee sales, but second quarter grew 7% with new
products such as COSTA COFFE leading to a growth in PET coffee growth in all channels. Sports category volume increased
12% due to the cycling of last year’s impact of severe restrictions on sporting events. Water volume increased 29%, due togrowth in large PETs, mainly in supermarkets, drugstores & discounters and online, as a result of increased home consumption,
as well as contributions from new ICY SPARK and small PET Irohas.
The ready-to-drink alcohol, with the contribution from Lemon-dou Homerun size and newly launched Nomel’s Hard
Lemonade, increased 1% for the first half, and 13% for the second quarter. We continue to expand our manufacturing capacity
for alcoholic beverages through a new alcohol production line at the Komatsu Plant in May.
(2) Qualitative Information on Consolidated Financial Position
Assets at the end of the quarter were 884,060 million yen, a decrease of 55,543 million yen from the end of the prior fiscal
year-end period. This is mainly due the sales of the Q’sai shares on February 1, 2021, resulting in a decrease in Assets held forsale and decrease of Cash and cash equivalents with the repayment of short term loans. Other key drivers include Inventories
increasing ahead of the peak season and a decrease in Property, plant and equipment from consolidation of sales/distribution
locations.
Liabilities at the end of the quarter were 384,045 million yen, a decrease of 53,466 million yen from the end of the prior year
period. This is mainly due to the sales of the Q’sai shares, decreasing the Liabilities directly associated with assets held for sale.
Net Assets at the end of this quarter were 500,015 million yen, a decrease of 2,078 million yen from the end of the prior year
period. This reflects a decrease in Retained earnings as a result of dividend payments.
(3) Cash flows
The cash flow conditions for the 2nd quarter of the current year are as follows:<Cash Flows from Operations>
Net cash generated from operations activities was 10,606 million yen (11,274 million net cash generated from operationsin the previous year period). This results mainly from the 18,475 million yen net loss before tax from continuing operation,
depreciation, increase in trade and other payables and refund on taxes, etc., offset by increase in inventory and payment ofincome taxes, etc.
<Cash Flows from Investment Activities>
Net cash generated for investment activities was 21,119 million yen (47,697 million yen outflow the previous year period),
as cash used for acquisition of fixed assets was controlled, accounting for the current operating environment and by cash-in
from proceeds from sales of Q’sai share resulted in proceeds from sales of shares of subsidiaries.
<Cash Flows from Financing Activities>
Net cash used for financing activities was 58,563 million yen (41,203 million yen net cash generated from for financing
activities in the previous year period), driven by decrease of short-term loans for operating capital, cash spent for paymentof year-end dividends and repayments of lease liabilities.
As a result of these activities, cash and cash equivalents at the end of the fiscal year was 99,540 million yen, a decreaseof 26,838 million yen from the end of the prior fiscal year-end period.

－5－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2021 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(4) Business and financial challenges to be addressed
1. Issues to be addressed
There are no material changes regarding the issues that the Group needs to address during the consolidated cumulative
second quarter of the current year.
2. Basic Policies on the Control of the Joint-stock Company
a. Descriptions of basic policies
The Company believes that the persons and/or entities (hereinafter referred as “Persons”) who control decisions on the
Company’s financial and business policies need to understand the source of the Company’s corporate value and will make itpossible to continually and persistently ensure and enhance the Company’s corporate value and, in turn, the common interestsof its shareholders. The Company believes that a decision on any proposed acquisition that would involve a change of corporate
control of the Company should ultimately be made based on the intent of its shareholders as a whole. Also, the Company
would not reject a large-scale acquisition of the shares in the Company if it would contribute to the corporate value of theCompany and, in turn, the common interests of its shareholders.
However, there are some forms of large-scale acquisition of shares that benefit neither the corporate value of the target
company nor the common interests of its shareholders: those with a purpose that would obviously harm the corporate value ofthe target company and, in turn, the common interests of its shareholders; those with the potential to substantially coerce
shareholders into selling their shares; those that do not provide sufficient time or information for the target company’s boardof directors and shareholders to consider the terms of the large-scale acquisition of shares, or for the target company’s boardof directors to present a business plan or an alternative proposal; and those that require the target company to discuss ornegotiate with the acquirer in order to procure more favorable terms for shareholders than those presented by the acquirer.
The Company believes that the Persons who control decisions on the Company’s financial and business policies need to be
Persons who (A) fully understand the importance of (i) providing freshness and refreshment to people around the world andembedding the ”Coca-Cola” brand, which is now a part of our life style, in local communities; (ii) striving aggressively to win
in the market as the customers’ preferred partner with a deep understanding of the Company’s corporate philosophy; (iii)appreciating employees who have a strong sense of responsibility to thoroughly pursue customer satisfaction, and proactively
working on building a workplace environment that can make each and every employee feel rewarded, motivated and proud of
being a member of the Coca-Cola family; and (iv) contributing to local communities and proactively dealing withenvironmental issues with a strong sense of responsibility as a corporate citizen that continues to strive to assist in therealization of an affluent society, (B) preserve relationships of mutual trust with customers, business partners, shareholders
and employees and perform to their expectations, and (C) make it possible to continually and persistently ensure and enhance
the Company’s corporate value and, in turn, the common interests of its shareholders from a mid- to long-term perspective.
Therefore, the Company believes that Persons who would make a large-scale acquisition of the shares in the Company in amanner that does not contribute to the corporate value of the Company and, in turn, the common interests of its shareholders
would be inappropriate to become Persons who would control decisions on the Company’s financial and business policies.
b. Initiatives to realize the basic policies(a) Summary of special initiatives that contribute to realizing the basic policies
The Group not only assumes a leading role in transforming the Coca-Cola business in Japan by deploying various joint
initiatives such as product development and test marketing with The Coca-Cola Company and Coca-Cola (Japan) Company,
Limited (100% subsidiary of The Coca-Cola Company) as a strategic partner, but also strives to become a company trusted
by the stakeholders of consumers, customers, shareholders and employees.
Soft drink industry volume growth in Japan is expected to be muted, given the developed nature of the market as a whole,and the business environment surrounding the Company is projected to stay competitive as multiple players compete in themarket.
Under such circumstances, the Group aims at becoming the preferred partner of our customers and consumers in all
drinking occasions by establishing a robust and sustainable operating model, pursuing success in high-priority areas, and－6－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2021 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

drastically transforming the business to ensure growth.
The Company also made a transition to a company with an Audit and Supervisory Committee in order to further reinforce
the governance system. The Audit and Supervisory Committee serves as the auditing body of the Company that is comprised
exclusively of external directors, including multiple independent external directors. To strengthen the management oversightfunction, these external directors that serve as members of the Audit and Supervisory Committee have each been grantedwith a voting right in the Board of Directors meetings, in addition to the right to state their opinions in shareholders’ meetings
on matters pertaining to the designation of board members and their remuneration, among others. In order to separate thedecision-making, business management and business execution functions, the Company is implementing a corporate
executive officer system. In addition to the foregoing, for more fruitful deliberations of highly important matters in the
Board of Directors meetings, the Company is delegating the authority to make decisions on certain important matters that
require prompt business executions to specific directors as well as facilitating speedy decision making of other matters.
(b) Outline of measures to prevent inappropriate persons from controlling the finance and business policy decisions of theCompany in light of the basic policy
Upon any substantial acquisition of the Company shares, the Company strives to proactively collect and timely disclose
information in order to ensure and improve the corporate value of the Company and the common interest of shareholders
as well as make appropriate measures as needed under the scope permitted by laws and regulations and the Articles ofIncorporation.
When Board Meeting determines it necessary to apply anti-takeover measures in order to ensure and improve thecorporate value of the Company and the common interest of shareholders, taking into consideration of the future trend of
the society, the Company consults with shareholders at the Meeting of Shareholders as stipulated in the Articles ofIncorporation for decision of the implementation.
c. Decisions of the Board of Directors of the Company on the specific measures and the reasons
The measure described in the previous b. (a) was introduced as a specific measure to continuously and sustainably
improve the corporate value of the Company and the common interest of shareholders and is consistent with the Company’s
basic policy.
In addition, the measure described in the previous b. (b) was introduced as a specific measure to ensure and improve thecorporate value of the Company and the common interest of shareholders as needed under the scope permitted by laws andregulations and the Articles of Incorporation focusing on the intention of shareholders, and it is not intended to undermine
the shareholders’ common interests or preserve the positions of the Company officers.
(5) Research and development activities
Not applicable.
(6) Major facilities
The new installation of the important facilities that had been planned as of the end of the prior year and completed during theconsolidated cumulative second quarter of the current year are as listed below.

Name of company
Coca-Cola Bottlers Japan Inc.

ditto

Name of office / site (location) Name of business segment
Branches / (-)
Saitama “Mega distribution
center”(Hiki-gun Yoshimi-machi,

Facility description

Amount(millions of yen)Completed in

Beverage business

Vending machines/coolers

3,021

June 2021

ditto

Logistics equipment

15,869February 2021

Saitama Prefecture)
Note: Consumption tax is not included in the above amounts.

3. Significant management contracts
Not applicable.
－7－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2021 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Section 3. Status of the filing company
1. Status of Shares(1) Total number of shares① Total number of shares
Class

Total Number of Authorized Shares

Common shares

500,000,000

Total

500,000,000② Issued shares
No. of issued shares as of endof 2nd Quarter(June 30,2021）

Class

No. of issued shares as offiling date（August 12, 2021）

Name of listed stock
exchange or registeredauthorized financial
instruments firms`
association

Details

Commonshares206,268,593

206,268,593

Tokyo Stock Exchange（1st Section）

100-unit shares

Total

206,268,593

206,268,593－－(2) Status of stock acquisition rights① Status of share options
Not applicable.
② Other stock acquisition rights
Not applicable(3) Status of exercised moving strike convertible bonds
Not applicable.
(4) Total number of issued shares, transition of capital
Date

April 1, 2021 –June 30,2021

Increase/decrease in total no.
of issued shares(thousand share)－

Balance of total no. of Increase/ decrease ofissued shares
capital(thousand share）(Millions of yen)

206,269－－8－

Capital balance(Millions of yen）

Increase/decrease ofcapital reserve(Millions of yen)

Capital reservebalance(Millions of yen)

15,232－

108,167

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2021 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(5) Major shareholder status
As of June 30, 2021

Name

Coca-Cola (Japan) Company, Limited

Address

Number ofshares held
(thousands ofshares)Percentage of thenumber of shares
held to the total
number of issued
shares (excluding
treasury stock) (%)

4-6-3, Shibuya, Shibuya-ku, Tokyo

27,956

15.59

2-11-3, Hamamatsucho, Minato-ku, Tokyo

11,234

6.26

Custody Bank of Japan, Ltd. (Trust Account)

1-8-12, Harumi, Chuo-ku, Tokyo

5,731

3.20

Ichimura Foundation of New Technology

1-26-10, Kitamagome, Ota-ku, Tokyo

5,295

2.95

Satsuma Shuzo Co., Ltd.

26 Kamimotocho, Makurazaki-shi,
Kagoshima

4,699

2.62

Senshusha Co., Ltd.

339 Noda, Noda-shi, Chiba

4,088

2.28

Coca-Cola Holdings West Japan Inc.
(Standing proxy: Coca-Cola (Japan) Company,

1013 Wilmington Center Road, U.S.A.
Delaware

4,075

2.27

Limited)(4-6-3 Shibuya, Shibuya-ku, Tokyo)

Mitsubishi Heavy Industries Machinery Systems,

1-1-1, Wadazakicho, Hyogo-ku, Kobe-shi,

Ltd.
STATE STREET BANK AND TRUSTCOMPANY 505225

Hyogo

3,912

2.18

3,701

2.06

3,408

1.90

74,09941.32

The Master Trust Bank of Japan, Ltd.
(Trust Account)(Standing proxy Settlement & Clearing &Services Division, Mizuho Bank, Ltd.)MCA Holdings, Co., Ltd.

P.O. BOX 351 BOSTONMASSACHUSETTS 02 101 U.S.A.
(2-15-1 Konan, Minato-ku Tokyo)
2-6-15, Kyobashi, Chuo-ku, Tokyo

Total

-

(Notes) 26,923 thousand treasury shares are not included in the status of major shareholders above because they do not have voting rights.

－9－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2021 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(6) Status of voting rights① Issued shares
As of June 30,2021
Class

Number of shares

Number of votes

Details

Non-voting shares

－

－

－

Shares with restricted voting right (Treasury Shares)

－

－

－

Shares with restricted voting right (Others)

－

－

－

－

－

Shares with full voting rights (Treasury Shares)

Common shares

26,922,600

Shares with full voting rights (Others)

Common shares

178,564,800

Odd lot shares

Common shares

781,193－－

206,268,593－-

Total number of issued shares

1,785,648－

Voting rights of all shareholders

1,785,648－-(Note): “Shares with full voting rights (Others)” includes 2,300 shares in JASDEC’s name (23 voting rights).

② Treasury Shares
As of June 30,2021

Name of owner

Coca-Cola Bottlers
Japan Holdings Inc.

Address of owner

No. of shares

No. of shares

owned under own

owned undernameothers’ name

Total number ofshares owned

Ratio of shares owned
against total no. of issued
shares (%)

9-7-1 Akasaka, Minato-ku, Tokyo

26,922,600－

26,922,600

13.05

－

26,922,600－

26,922,600

13.05

Total

2. Status of Officers
Not applicable.

－10－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2021 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Section 4 Accounting status
1. Preparation methods for the quarterly consolidated financial statements
The Group’s condensed quarterly consolidated financial statements have been prepared in accordance with International
Accounting Standards Article 34 "Interim Financial Reporting".

2. Audit certification
The Company’s quarterly consolidated financial statements for the second quarter of the current year (April 1, 2021 to June 30,2021) and the first six-months period of the current year (January 1, 2021 to June 30, 2021) have been reviewed by Ernst & Young
ShinNihon LLC based on the provisions of Article 193-2 Paragraph 1 of the Financial Instruments and Exchange Act.

－11－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2021 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

1. Condensed Quarterly Consolidated Financial Statements and Notes(1) Condensed Quarterly Consolidated Balance Sheets
Notes

AssetsCurrent assets:
Cash and cash equivalents
Trade and other receivables
Inventories
Other financial assets
Other current assets
Subtotal
Assets of disposal groups classified as held
for sale
Total current assets
Non-current assets:
Property, plant and equipment
Right-of-use assets
Intangible assets
Investments accounted for using the equity
methodOther financial assets
Deferred tax assets
Other non-current assets

10

6

10

Total non-current assets
Total assets－12－(Millions of yen)
As ofJune 30,2021

As ofDecember 31, 2020

114,778
96,00968,180702
17,19599,54096,57977,4991,502
16,783296,865

291,904

48,138－345,003291,904

460,50229,81066,193452,892
27,63966,236287

311

25,6404,986
7,183
594,601

23,851
11,012
10,215592,156

939,603

884,060

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2021 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

As ofDecember 31, 2020

(Millions of yen)
As ofJune 30,2021

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

10
10

6

10
10

Total non-current liabilities
Total liabilities
Equity:Capital stock
Capital surplus
Retained earnings
Treasury shares
Accumulated other comprehensive income(loss)
Accumulated other comprehensive income ofdisposal groups classified as held for sale
Equity attributable to owners of parent
Non-controlling interests

7

Total equity
Total liabilities and equity－13－

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

114,472
31,002
6,087
－
1,995
16
11,477
165,049

7,193－

185,869

165,049

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

157,082
23,188－16,144
2,121
17,4962,963

251,641
437,510

218,995
384,045

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

15,232450,793
115,545(85,659)

1,095

3,964

(107)

－

501,643450

499,875140

502,093
939,603

500,015884,060

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2021 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(2) Condensed Quarterly Consolidated Statements of Income【First six -months period of this fiscal year】(Millions of yen)
Notes

Continuing operations
Revenue
Cost of sales
Gross profit
Selling and general administrative expenses
Other income
Other expenses
Investment loss on equity method
Operating loss
Financial revenue
Finance costs
Loss for the period before income taxes
Income tax expense
Net loss for the period from continuing operations
Discontinued operations
Net income for the period from discontinuing
operations
Net loss for the period

8

9
9

6

Net loss for the period attributable to
Owners of parent
Loss from continuing operations attributable toowners of parent
Profit from discontinuing operations attributable toowners of parent
Non-controlling interests
Earnings (Loss) per share (yen)Continuing operations
Discontinued operations
Loss per share

11

－14－

Six months ended

Six months ended

June 30, 2020

June 30,2021

374,598
205,054
169,544
176,016
373
8,608
(230)
(14,937)405
535(15,067)(7,411)(7,656)369,309
206,040
163,269
177,295
5,017
9,108
(133)
(18,250)272
497(18,475)(5,603)(12,872)

1,194

12,505(6,462)(367)(7,643)(12,859)

1,191

12,505(10)(13)(42.61)6.64(35.97)(71.70)69.72(1.98)

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2021 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

【Second quarter of this fiscal year】(Millions of yen)
Notes

Continuing operations
Revenue
Cost of sales
Gross profit
Selling and general administrative expenses
Other income
Other expenses
Investment income (loss) on equity method
Operating loss
Financial revenue
Finance costs
Loss for the period before income taxes
Income tax expense
Net Loss for the period from continuing operations
Discontinued operations
Net income for the period from discontinuing
operations
Net loss for the period
Net loss for the period attributable to
Owners of parent:
Loss from continuing operations attributable toowners of parent
Profit from discontinuing operations attributable toowners of parent
Non-controlling interests
Earnings (Loss) per share (yen)Continuing operations
Discontinued operations
Loss per share

11

－15－

Three months ended
June 30, 2020Three months ended
June 30, 2020

181,569
100,91480,65580,353
151
6,792
(170)
(6,508)310
262(6,460)(4,823)(1,637)200,909111,801
89,10891,869
3,827
4,180
6
(3,107)203
156(3,060)(1,388)(1,673)

864

－

(773)

(1,673)(1,623)(1,670)

862

－

(12)

(3)

(9.05)
4.81(4.24)(9.31)－(9.31)

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2021 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(3) Condensed Quarterly Consolidated Statements of Comprehensive Income【First Six -months period of this fiscal year】(Millions of yen)
Notes

Net loss for the period
Other comprehensive income (loss)
Items that will not be reclassified subsequently to profit or loss:

Six months ended

Six months ended

June 30, 2020

June 30,2021(6,462)(367)

Share of other comprehensive income of investments
accounted for using equity method

－

(12)

Net changes in financial assets measured at fair value throughother comprehensive income (loss)(3,377)

1,428(3,377)

1,416

Subtotal
Total other comprehensive income (loss) for the period
Total comprehensive income (loss) for the period(1,665)(1,665)(5,042)(11,504)

2,087
2,087
3,503
3,136

Comprehensive income (loss) attributable to:
Owners of parent
Non-controlling interests(11,494)
(10)

3,149
(13)

Subtotal
Items that may be reclassified subsequently to income (loss):
Cash flow hedges－16－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2021 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

【Second quarter of this fiscal year】
Notes

Net loss for the period
Other comprehensive income (loss)
Items that will not be reclassified subsequently to profit or loss:(Millions of yen)Six months ended

Six months ended
June 30, 2020

June 30,2021(773)(1,673)

37

(589)

37

(589)

Subtotal
Total other comprehensive income (loss) for the period
Total comprehensive income (loss) for the period

39
39
77
(696)

384
384
(205)
(1,877)

Comprehensive income (loss) attributable to:
Owners of parent
Non-controlling interests

(685)
(12)

(1,874)(3)

Net changes in financial assets measured at fair value throughother comprehensive income (loss)
Subtotal
Items that may be reclassified subsequently to income (loss):
Cash flow hedges－17－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2021 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(4) Condensed Quarterly Consolidated Statements of Changes in Equity
Six months ended June 30, 2020
(Millions of yen)
Equity attributable to owners of the parent

Notes
Balance as of January 1, 2020

Capital stock Capital surplus

Retainedearnings

Treasuryshares

Accumulated
othercomprehensive
incomeNoncontrollinginterests

Total

Total

15,232450,526

121,372(85,649)4,517

505,999492

506,491－－(6,452)－－(6,452)(10)(6,462)

－

－

－

－

(5,042)(5,042)－(5,042)－－(6,452)－(5,042)(11,494)(10)(11,504)

Comprehensive income for theperiodNet loss for the period

Other comprehensive income

Total comprehensive income (loss)
for the year
Transactions with owners

Dividends of surplus－－(4,484)－－(4,484)(28)(4,512)

Purchase of treasury stock

－

－

－

(4)

－

(4)

－

(4)

Disposal of treasury stock

－

(1)

－

2

－

1

－

1

Transactions of share-based
payment

－

163

－

－

－

163

－

163

－

－

221

－

(221)

－

－

－

－

－

－

－

534

534

－

534

－

163

(4,263)(3)313(3,790)(28)(3,818)15,232450,689

110,658(85,652)(212)

490,715454

491,170

Reclassification fromaccumulated othercomprehensive income toretained earnings
Reclassification fromaccumulated othercomprehensive income to nonfinancial assets
Total transactions with owners
Balance as of June 30, 2020

7

－18－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2021 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Six months ended June 30,2021(Millions of yen)

Capitalstock

CapitalsurplusRetainedearnings

Equity attributable to owners of the parent
Accumulated other
Other
comprehensive
comprehensive
income of disposal
Treasury
incomegroups classified assharesaccumulated
for sale

15,232450,605

120,473(85,654)

1,095

－

－

(354)

－

Other comprehensive income(loss)－－－

Total comprehensive income (loss)
for the period

－

－

Notes
Balance as of January 1, 2021

Total

Noncontrollinginterests

Total

(107)

501,643450

502,093

－

－

(354)

(13)

(367)

－

3,503

－

3,503

－

3,503

(354)

－

3,503

－

3,149

(13)

3,136

Comprehensive income for theperiodNet income for the period

Transactions with owners

Dividends of surplus－－(4,484)－－－(4,484)－(4,484)Purchase of treasury stock

－

－

－

(4)

－

－

(4)

－

(4)

Disposal of treasury stock

－

(0)

－

0

－

－

0

－

0

Transactions of share-based
payment

－

188

－

－

－

－

188

－

188

－

－

17

－

(17)

－

－

－

－

－

－

－

－

(616)

－

(616)

－

(616)

Changes from loss of control

－

－

(107)

－

－

107

－

(297)

(297)

Other

－

－

－

－

－

－

－

－

－

Total transactions with owners－

188(4,574)

(4)

(634)

107

(4,917)(297)(5,214)

Balance as of June 30,2021

15,232450,793

115,545(85,659)3,964－

499,875140

500,015

Reclassification fromaccumulated othercomprehensive income (loss) toretained earnings
Reclassification fromaccumulated othercomprehensive income to nonfinancial assets

7

－19－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2021 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(5) Condensed Quarterly Consolidated Statements of Cash Flows(Millions of yen)
Notes

Six months ended

Six months ended

June 30, 2020

June 30,2021

Cash flows from operating activities
Loss for the period before income tax from continuing(15,067)(18,475)

1,821

12,841

29,38728,892operations
Income for the period before income tax fromdiscontinuing operations
Adjustments for:
Depreciation and amortization
Impairment loss

85－

Gain on sales of subsidiaries' stock

6－(12,841)

Gain on sales of stocks of subsidiaries and affiliates

9

－

(708)

Change in allowance for doubtful accounts

(67)

680

Interest and dividends income

(288)

(165)

Interest expenses

540

473

Investment loss on equity method

230

133

Gain on sale of property, plant and equipment
Loss on disposal and sale of property, plant andequipment(Increase) decrease in trade and other receivables

(4)

(21)

760

687

5,524

(1,201)

Increase in inventories(3,912)(9,318)

Increase in other assets(9,821)(871)

Increase in trade and other payables

2,899

18,334

Increase in net defined benefit liabilities

1,525

1,257

Decrease in other liabilities(5,404)(3,811)

202

107

8,413

15,992OthersSubtotalInterest received

0

1

Dividends received

287

163

Interest paid
Income taxes paid

(471)

(456)

(4,651)(8,047)

Income taxes refund

7,696

2,952

Net cash (used in) provided by operating activities

11,274

10,606(48,261)(25,698)

97

272

－

7,400

Cash flows from investing activities
Acquisitions of property, plant and equipment andintangible assets
Proceeds from sales of property, plant and equipment
and intangible assets
Proceeds from collection of loans receivable resulting
from sales of stock in subsidiaries

6

Purchases of other financial assets

(26)

(26)

Proceeds from sale of other financial assets

542

4,473

－

34,490

Proceeds from sale of stock of subsidiaries

6

Other
Net cash used in investing activities

－20－

(48)

208

(47,697)

21,119

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2021 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(Millions of yen)
Notes

Six months ended

Six months ended

June 30, 2020

June 30,2021

Cash flows from financing activities
Increase in short-term loans payable
Repayments of long-term loans payable

50,000
(724)

(550)

Dividends paid

(4,484)(4,484)

Dividends paid to non-controlling interests

(28)

－

Proceeds from disposal of treasury stock

1

0

7

Purchases of treasury stock(50,000)(4)(4)

Repayments of lease liabilities(3,558)(3,525)

Net cash provided by financing activities

41,203(58,563)

Net change in cash and cash equivalents

4,780(26,838)

Cash and cash equivalents at the beginning of the year

113,825

126,378

Cash and cash equivalents at the end of the period

118,605

99,540－21－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2021 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Notes to consolidated financial statements
1. Introduction
The Company is a holding company domiciled in Japan and is listed on the First Section of the Tokyo Stock Exchange.
Under the Coca-Cola brand, the Company and its subsidiaries (collectively, the "Group") engage in purchases, sales, bottling,
packaging, distribution and marketing of carbonated beverages, coffee beverages, tea-based beverages, mineral water and otherbeverages in Japan.
The Group’s consolidated financial statements consist of the Company, subsidiaries and associates. The consolidated
financial statements were approved by our Representative Director & President, Calin Dragan and our Representative Director,
Vice President and Chief Financial Officer (Head of finance), Bjorn Ivar Ulgenes on August 12, 2021 and takes into account
events after the reporting period to that date (see notes 12, " Subsequent events ").
2. Basis of preparation
The Company’s condensed quarterly consolidated financial statements have been prepared in accordance with International
Accounting Standards Article 34 "Interim Financial Reporting" based on the Ordinance on the Terminology, Forms, andPreparation Methods of Quarterly Consolidated Financial Statements (Cabinet Office Ordinance No. 64 of 2007).
Condensed quarterly consolidated financial statements should be used in conjunction with consolidated financial statements
for the prior year as they do not include all the information required in the annual consolidated financial statements.
Condensed quarterly consolidated financial statements have been prepared on the basis of cost except financial instruments
measured at fair value
Condensed quarterly consolidated financial statements are stated in Japanese yen. All condensed quarterly consolidated
financial information is rounded to the nearest million yen unless otherwise stated.
3. Significant accounting policies
The significant accounting policies applied by the Group in the condensed quarterly consolidated financial statements are thesame as the accounting policies applied in the consolidated financial statements for the prior year.
Income tax benefit for the Six months ended June 30,2021, has been calculated on the basis of the annual estimated effective
tax rate.
4. Critical accounting judgments, estimates and assumptions
In preparing the condensed quarterly consolidated financial statements in accordance with IFRS, management is required tomake judgments, estimates and assumptions that affect the application of the Group’s accounting policies and the reported
amounts of assets, liabilities, revenue and expenses. Actual results may differ from these estimates. The estimates and theassumptions underlying the estimates are continually reviewed and are based on historical experience and other factors,
including future events, which are believed to be reasonable under the circumstances. Accounting estimates are based on themost appropriate information at the time the condensed quarterly consolidated financial statements are filed. As a result of there-emergence of COVID-19, a fourth state of emergency was declared in July 2021 in Tokyo, and the continuing impact of thisis expected to be inevitable, and the situation is expected to remain uncertain. Since it is difficult to reasonably estimate thespecific impact of the situation, including the timing of convergence and the extent of the impact, the Company has madeaccounting estimates based on the assumption that the impact will continue for a certain period of time during the fiscal year
ending December 31, 2021.
If there are changes to any future estimates, the impact of the revision is recognized in the condensed quarterly consolidated
statements of income and condensed quarterly consolidated statements of comprehensive income subsequent to the reporting
period in which they are revised.
Accounting judgments, estimates and assumptions that have a significant impact on the condensed quarterly consolidated
financial statements will be revised based on the same concept as in the consolidated financial statements for the previous
consolidated fiscal year.

－22－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2021 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

5. Segment Information
From the prior fiscal year, the Group has changed to a single segment of "Beverages". As the Group operates a single segment
of beverage business. Please see Note 8 "Revenue" for information on products and services of reportable segments. This isbecause 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 Co., Ltd. on December 15, 2020. The transfer of all shares in Q’sai was completed on
February 1, 2021.
6. Disposal groups classified as held for sale and discontinued operations
On December 15, 2020, the Company’s Board of Directors resolved to sell all of the shares of the Company’s consolidated
subsidiary, Q’sai to Q-Partners Co., Ltd., a company formed for this purchase led by investment funds in which Advantage
Partners Inc. provides services (“Advantage Partners”), euglena Co., Ltd., and Tokyo Century Corporation.
As a result of executing the share transfer agreement. The transfer of all shares in Q’sai was completed on February 1 2021.
(1) Disposal groups classified as held for sale
The breakdown of disposal groups classified as held for sale is as follows:
As for the disposal group classified as held for sale, the transfer of all shares was completed during the first quarterof the current fiscal year.
(Millions of yen)

As ofDecember 31, 2020
AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other financial assets
Other current assets
Total current assets

11,599
1,308
2,031
3
61
15,001

Non-current assets
Property, plant and equipment
Right-of-use assets
Goodwill
Intangible assets
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets

2,931
1,197
27,021
778
322
880
6
33,137
48,138

Total assets
Liabilities
Current liabilities
Trade and other payables
Lease liabilities
Income taxes payable
Other current liabilities
Total current liabilities

2,940
155
610
1,886
5,591

Non-current liabilities
Lease liabilities
Net defined benefit liabilities
Other non-current liabilities

1,088
366
148
1,602

Total non-current liabilities
Total liabilities

7,193

－23－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2021 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(2) Gain from discontinued operations
The results of discontinued operations are as follows:
In the first quarter of the current fiscal year, the gain on the sale of all shares of Q’sai was 12,841 million yen, and theincome tax expense related to this was 337 million yen. Due to immateriality, no gains or losses other than those fromsales transactions related to discontinued operations were recognized in the current fiscal year.
(Millions of yen)Six months ended
June 30, 2020
Discontinued operations
Revenue
Cost of sales

Six months ended
June 30, 2021

12,081
2,366－－

Gross profit

9,716

－

Selling and general administrative expenses
Other income
Other expenses

7,883
12
18

－
12,841

Operating income

1,827

12,841

Financial revenue
Finance costs

0
6

－
－

1,821
628

12,841337

1,194

12,505

Income for the period before income taxes
Income tax expense
Net income for the period from discontinuing
operations－(3) Cash flows of discontinued operations
The results of discontinued operations are as follows:(Millions of yen)Six months ended
June 30, 2020

Six months ended
June 30, 2021
2,129
(260)
(86)

Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities－
34,490－(Note) Cash flows from investing activities in the second quarter of the current fiscal year was due to the proceeds from thesale of all shares of Q’sai.

－24－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2021 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(4) The component of assets and liabilities as of the date of loss of control(Millions of yen)
Date of loss of control
February 1,2021
AssetsCurrent assets

6,501

Non-current assets

33,137

Total assets

39,638

Liabilities
Current liabilities

12,991

Non-current liabilities

1,602

Total liabilities

14,593Note 1. Current assets include cash and cash equivalents.
2. Current liabilities include short-term loans payable of 7,400 million yen from the Company. This loan was repaid infull during the first quarter of the current fiscal year.
(5) Change in cash and cash equivalents relation to loss of control(Millions of yen)
As ofJune 30,2021
Proceeds received for sales

37,590Cash and cash equivalents received for sales

37,590Cash and cash equivalents held at the time of loss of control

3,099

Increase from loss of control over subsidiaries

34,490－25－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2021 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

7. Dividends
Dividends payments were as follows:First six -months of the prior year (January 1, 2020 – June 30, 2020)
1. Dividend payment amountType of shares

Total amount ofdividends paid
(Millions of yen)

Dividends per
share
(Yen)

Dividend record date

Effective dateOrdinary share

4,484

25

December 31, 2019

March 27, 2020

Resolution
March 26, 2020
Ordinary General Meetingof Shareholders

2. Dividends with the cut-off date in the first half of FY 2020 and the effective date following the first half of FY 2020
Not applicableFirst six-months of the current year (January 1, 2021 – June 30,2021)
1. Dividend payment amountResolution

Type of shares

Total amount ofdividends paid
(Millions of yen)

Dividends per share(Yen)

Dividend record date

Effective dateOrdinary share

4,484

25

December 31, 2020

March 26, 2021

March 25, 2021
Ordinary General Meetingof Shareholders

2. Dividends with the cut-off date in the first half of FY 2021 and the effective date following the first half of FY 2021
Resolution
August 11, 2021
Board of directors

Type of shares

Total amount ofdividends paid
(Millions of yen)

Dividends per share(Yen)

Ordinary share

4,484

25

Dividend record date

Effective dateJune 30, 2021

September 1, 2021

8. Revenue
The Group's organizational structure is based on the one business segment of the Beverage business. The business iscomponents for which discrete financial information is available, and whose operating results are regularly reviewed by theentity’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its
performance. Therefore, the revenue in beverage business is presented as “Revenue” in the Consolidated financial statementof income. In the Beverage business, the Group purchases, manufactures, and sells carbonated beverages such as CocaCola, coffee beverages, black tea beverages, mineral water and other beverages in Japan.
Revenue for sales of these products is recognized primarily at the time of delivery as customer has obtained control overthe products and the performance obligation is satisfied.
Payments relating to such performance obligation are received generally within two months of delivery. The contracts
with customer do not include any material financial elements.
The contract liabilities, refund liabilities, amount of assets recognized from the costs of obtaining a contract or to fulfil acontract and amount of revenue recognized from performance obligation satisfied in prior periods were immaterial. In
addition, information regarding the remaining performance obligation is omitted as there are no significant transactions inwhich the estimated individual contract periods exceed one year in the Group.
(Millions of yen)Six months ended
June 30, 2020

Six months ended
June 30, 2021

374,166

369,094

432

215

374,598369,309

Beverage
Other
Total
－26－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2021 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

9. Other income and other expenses
The breakdown of other income and other expenses are as follows:(Millions of yen)Six months ended
June 30, 2020

Six months ended
June 30,2021

Other income
Gains on sales of property, plant and equipment

4

21

Rent income

178

155

Government subsidies (Note 1)
Gain on sales of stocks of subsidiaries andaffiliates (Note 2)
Other

－

3,876

－

708

191

256

Total

373

5,017

Impairment losses
Losses on sales and disposals of property, plantand equipment
Transformation related expenses (Note 3)

85

－

1,055

778

1,908

623

Special retirement allowance (Note 4)

1,424

1,177

Temporary paid leave expenses (Note 5)

2,841

5,636

Product valuation losses (Note 6)

604－

Costs of postponing the Olympics (Note 7)

Other expense

201－

System failure-related costs (Note 8)

－

612

Other

489

283

8,608

9,108

Total

(Note) 1. Government subsidies are grants to cover employee’s temporary leave cost due to the spread of COVID-19 during the firstsix -months of the current year.
2. Gain on sales of stocks of subsidiaries and affiliates represents the gain on sales of all stocks of Apex Nishi-Nihon
Corporation, an equity-method affiliate of the Company.
3. Transformation related expenses are expenses related to measures aimed at building an efficient new system with the aimof creating more value and further improving productivity for the sustainable growth of the Group.
4. Special retirement allowances are allowances and outplacement support expenses incurred in the implementation of thevoluntary retirement program.
5. Temporary paid leave expenses are the allowance associated with employee’s temporary leave to respond to the impact toour business by the economic contraction and to secure the safety and health of our employee following the state of
emergency declaration due to the spread of COVID-19. The expenses are reclassified 309million yen and 411million yen
from cost of sales and 2,532 million yen and 5,225 million yen from selling and general administrative expenses to otherexpenses, respectively.
6. Product valuation losses are a valuation loss of product inventory at the time of the emergency declaration of thegovernment to prevent COVID-19 outbreak. This is because the product inventory is planned to be disposed due to theeffects of the suspension of operation of restaurants. The losses are reclassified from cost of sales.
7. Costs of postponing the Olympics were incurred by the postponement of the Olympic and Paralympic Games due to
COVID-19. The expenses are mainly for hotels and warehouses cancellation fees and reclassified from selling and generaladministrative expenses.
8. System failure-related costs are expenses incurred to recover the system failures that occurred in the core system used by
the Group during cumulative second quarter of the current fiscal year.

－27－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2021 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

10. Fair value of financial instruments(a) Classification by level of the fair value hierarchy
Financial instruments measured at fair value on a recurring basis after initial recognition are classified into three levelsof the fair value hierarchy, depending on the observability and significance of the inputs used in the measurement.
The fair value hierarchy is defined as follows:
Level 1: fair value (unadjusted) in the active market of the same asset or liability
Level 2: fair value based on inputs other than quoted prices included in Level 1, either directly observable inputs orindirectly, of observable inputs for asset or liability
Level 3: fair value based on unobservable inputs for asset or liability
When more than one input is used to measure the fair value, the level of the fair value hierarchy is determined basedon the lowest level of input that is significant to the fair value measurement as a whole. Transfers between levels of thefair value hierarchy are recognized as having occurred at the beginning of each quarter.
There were no transfers between Level 1 and Level 2 during the prior fiscal year and cumulative second quarter of thecurrent year.
(b) Fair value measurement
Securities are classified as Level 1 of the fair value hierarchy by the measurement of share prices, if any, in active
market for the same asset or liability. If there is no active market stock price for the same asset or liability, the Group uses
valuation techniques such as stock prices in non-active markets, quoted market prices of similar companies anddiscounted future cash flow models. If significant inputs, such as quoted market prices and discount rates used inmeasurement, are observable, such financial instruments are classified as Level 2, but are classified as Level 3 if inputs
used in its measurement include significant unobservable inputs.
Unlisted securities are classified into Level 3 of the fair value hierarchy using valuation techniques based on discounted
future cash flows, valuation techniques based on quoted market prices of similar companies, valuation techniques basedon net asset value, and other valuation techniques. In the fair value measurement of unlisted securities, the Group uses
unobservable inputs such as discount rates and valuation multiples and considers certain illiquidity discounts and noncontrolling interest discounts as needed. The measurement methods for such fair value are determined by the Financedivision in accordance with the Group’s accounting policies.
The valuation techniques and significant unobservable inputs used in Level 3 fair value measurement are as follows:
As of December 31, 2020
Type
Financial instrument measured atfair value through othercomprehensive income(Securities)

Valuation technique

Comparison ofsimilar companies

Significant unobservable inputs

Interactions between significant unobservable
inputs and fair value measurement

EBIT Multiple: 6.7-46.7 times

Estimated fair value increases (decreases)

EBITDA Multiple: 12.6times

when equity indices of comparable listed

PBR: 1.0-3.0 times

companies of the target are high (low)As of June 30,2021
Significant unobservable inputs

Interactions between significant unobservable
inputs and fair value measurement

Type

Valuation technique

Financial instrument measured atfair value through othercomprehensive income(Securities)

Comparison of

EBIT Multiple: 7.8－51.0 times

Estimated fair value increases (decreases)

similar

EBITDA Multiple: 6.6 times

when equity indices of comparable listedcompanies

PBR: 0.9－2.7 times

companies of the target are high (low)EBIT Multiple: Corporate Value/EBIT
EBITDA Multiple: Corporate Value/EBITDAPBR: Price Book Value Ratio－28－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2021 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(c) Financial instrument measured fair value on a recurring basis
The breakdown of financial instrument measured at fair value on a recurring basis is as follows:
As of December 31, 2020
(Millions of yen)
Level 1

Level 2

Level 3

Total

Financial assets
Financial instrument measured at fair value
through profit or loss:
Derivative assets

－

654

－

654

－

654

－

654

15,337
－

－
－

4,561

19,898133

133

Subtotal

15,337－

4,694

20,031

Total

15,337654

4,694

20,685

－

1,013

－

1,013

－

1,013

－

1,013

Subtotal
Financial instrument measured at fair value
through other comprehensive income:Securities
Other

Financial liabilities
Financial instrument measured at fair value
through profit or loss:
Derivative liabilities
Total
As of June 30,2021(Millions of yen)
Level 1

Level 2

Level 3

Total

Financial assets
Financial instrument measured at fair value
through profit or loss:
－

1,943

－

1,943

－

1,943

－

1,943

13,222
－

－
－

4,513
139

17,735139

Subtotal

13,222－

4,652

17,874

Total

13,222

1,943

4,652

19,817

－

－

－

－

－

－

－

－

Derivative assets
Subtotal
Financial instrument measured at fair value
through other comprehensive income:Securities
Other

Financial liabilities
Financial instrument measured at fair value
through profit or loss:
Derivative liabilities
Total

－29－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2021 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

A reconciliation of the beginning and ending balances of financial instrument classified as Level 3 is as follows:(Millions of yen)
Financial assets measured at fair value through othercomprehensive income
Balance at January 1, 2020

5,392
－

Disposals
Gains recognized in other comprehensive income(811)

Balance at June 30, 2020

4,580

Balance at January 1, 2021
Disposals

4,694
(25)

Losses recognized in other comprehensive income(16)

Balance at June 30,2021

4,652

Gains or losses recognized in other comprehensive income are recognized in "Net changes in financial asset
measured at fair value through other comprehensive income" in the consolidated statements of comprehensive income.
(d) Financial instrument measured at amortized cost
The components of carrying amount and fair value of financial instruments measured at amortized cost are as follows:
As of December 31, 2020
(Millions of yen)
Carrying amountLong-term loans payable and bonds

188,585

Fair value

Difference

188,075

510

As of June 30,2021(Millions of yen)
Carrying amountLong-term loans payable and bonds

188,084

Fair value
188,501

Difference(416)

Long-term loans payable and bonds include current portion. Cash and cash equivalents, trade and other receivables,
trade and other payables, and short-term loans payable are not included in the above table because their fair value
approximates their carrying amount because they are collected and settled in a short period of time.
The main valuation techniques used to measure fair value of the financial instruments in the table above are as follows:a. Loans payable
Loans payable with variable interest rates are calculated using the carrying amount as its fair value because interest
rates are considered to reflect market interest rates in the short term. Loans payable with fixed interest rates are calculated
based on the present value of future cash flows discounted using interest rates adjusted for the remaining term and credit
risk. Loans payable with fixed interest rates are classified into level 2 of the fair value hierarchy.
b. Bonds
For bonds with quoted market prices, the fair value is estimated based on quoted market prices. For bonds without
quoted market prices, the fair value is calculated based on the present value of future cash flows discounted using interest
rates adjusted for the remaining term and credit risk. Bonds with quoted market prices are classified into level 1 of thefair value hierarchy and bonds without quoted market prices are classified into level 2.

－30－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2021 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

11. Loss per share
The calculation of basic earnings (loss) per share attributable to owners of the parent is based on the quarterly net income(loss) attributable to owners of the parent and the weighted average number of common shares issued.
The basis for calculating the basic earnings (loss) per share for the Cumulative second quarter of the current year and prioryear is as follows:

Six months ended
June 30, 2020

Six months ended
June 30,2021

Loss from continuing operations attributable to owners ofparent(7,643)(12,859)

Profit from discontinuing operations attributable toowners of parent

1,191

12,505

179,351

179,347

Earnings (Loss) per share (yen)Continuing operations(42.61)(71.70)Discontinuing operations
Loss per share (yen)6.64(35.97)69.72(1.98)

Weighted-average shares of ordinary share outstanding (inthousands)

Three months ended
June 30, 2020
Loss from continuing operations attributable to owners ofparentThree months ended
June 30, 2021

(1,623)(1,670)862－

179,350

179,346

Earnings (Loss) per share (yen)Continuing operations(9.05)

Discontinuing operations
Loss per share (yen)

4.81(4.24)(9.31)－

Profit from discontinuing operations attributable toowners of parent
Weighted-average shares of ordinary share outstanding (inthousands)(9.31)

Note 1. In the cumulative second of the current fiscal year, 393 thousand shares of stock-based compensation were excluded from thecalculation of "diluted earnings per share" because they were antidilutive.
2. For more information on the quarterly income from discontinued operations attributable to owners of the parent company, seeNote 6, " Disposal groups classified as held for sale and discontinued operations.
12. Subsequent events
Not applicable－31－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2021 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

2. Others
At the Board of Directors held on August 11, 2021, it was resolved to provide the following interim dividend
to shareholders or registered pledges recorded in the final shareholders’ register on June 30, 2021

a. Total dividends through interim dividends:

4,484 million yen

b. Amount per share: 25 yenc. Effective date of payment claims and payment start date: September 1, 2021

－32－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2021 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Part II Information of guarantor companies of the filing company
Not applicable－33－