This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2021 pursuant to the Japanese Financial Instrumentand Exchange 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 July 1, 2021
（The 3rd Quarter of the 64th Term）
To September 30, 2021

Coca-Cola Bottlers Japan Holdings Inc.

（E00417)

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2021 pursuant to the Japanese Financial Instrumentand Exchange 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
2. Management's analysis of financial condition, results of operations and cash flows ..................................................................... 2
3. Significant management contracts ................................................................................................................................................. 7
Section 3. Status of the filing company ................................................................................................................................................. 8
1. Status of Shares ............................................................................................................................................................................. 8
2. Status of Officers ........................................................................................................................................................................... 9
Section 4 Accounting status................................................................................................................................................................. 10
1. Condensed Quarterly Consolidated Financial Statements and Notes .......................................................................................... 11
2. Others .......................................................................................................................................................................................... 31
Part II Information of guarantor companies of the filing company ......................................................................................................... 32

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2021 pursuant to the Japanese Financial Instrumentand Exchange 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]November 12, 2021

[Fiscal year]

64th fiscal term (from July 1, 2021 to September 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]

Tatsuhiro Ishikawa, Head of Controllers Senior Group Division, Finance[Closest contact point]

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

Tatsuhiro Ishikawa, Head of Controllers Senior Group 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 September 30, 2021 pursuant to the Japanese Financial Instrumentand Exchange 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
Third Quarter
Third Quarter

Issuance

From
January 1, 2020
toSeptember 30, 2020

Accounting period

From
January 1, 2021
toSeptember 30, 2021

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

Revenue[Current Third quarter](Millions of yen)

598,547[223,949]

589,531[220,222]

791,956

Loss before income tax(Millions of yen)

(9,157)(20,395)(12,065)

Net loss for the period attributable to owners(Millions of yen)of the parent(4,644)[1,807](1,535)[(1,181)](4,715)Comprehensive income (loss) attributable to(Millions of yen)owners of the parent(11,420)

2,445(2,214)Equity attributable to owners of the parent(Millions of yen)

492,860

494,503

501,643

Total Assets(Millions of yen)

966,337

866,711

939,603

Basic loss per share(Yen)(25.90)[10.08](8.56)[(6.58)](26.29)Diluted earnings per share

(Yen)

－

－

－

Ratio of equity attributable to owners of theparent to total assets

(%)

51.0

57.1

53.4

Cash flows from operating activities(Millions of yen)

35,13823,19943,716

Cash flows from investing activities(Millions of yen)

(59,259)

11,346(52,076)

Cash flows from financing activities(Millions of yen)

38,761(65,386)

20,912

Cash and cash equivalents at the end of the(Millions of yen)period128,465

95,538126,378

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 Income (Loss) before income
tax for the 63rd Term Consolidated Cumulative Third quarter and the 63rd Term Consolidated Third quarter accounting period have been reclassified tothe amounts 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 of the 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 Third 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 September 30, 2021 pursuant to the Japanese Financial Instrumentand Exchange 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 third quarter of the current fiscal year (July 1, 2021 to September 30, 2021, hereinafter referred to as "the third
quarter"), the coronavirus (COVID-19), continued to impact the business influenced by government responses. On July 12, thegovernment declared a state of emergency for the fourth time this year, which continued until September 30 including the Olympics
and Paralympics period. As part of the state of emergency the government implemented measures to prevent the spread of thedisease, such as shortening the opening hours of restaurants and asking people to refrain from outing and traveling of lessimportance. Therefore, the outlook for sales in the beverage business remained uncertain during the third 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 vaccinated our employees, their family members, and subcontractors at our workplaces. In addition, the Company
has continued telecommuting, mainly in the indirect departments, thereby reducing employee exposure in the work place.
In the forth quarter, we will continue to actively monitor our overall risk environment. There are no significant changes to otherbusiness 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 and the business environment remains to be challenging, the continuing
supply of our goods and services which are essential for our customers and consumers, and the safety and health of our employees
and communities are our top priorities. In accordance with our mission to deliver happy moments to everyone, we have been
operating our business to ensure safe and secure product supply while taking comprehensive measures.

In the year-to-date third quarter period (January 1, 2021 to September 30, 2021), despite last year's COVID-19 impact andrebound from the initial impact, the multiple state of emergency declaration and heavy rain fall in August this year, the total domestic
nonalcoholic ready-to-drink (NARTD) beverage industry volume performed at similar levels to the same period of the previous
fiscal year.
Under these circumstances, we have been working on measures to minimize the impact on sales by introducing new products
and responding to changing consumer and channel trends. Under the guiding principle that “business as usual is not an option”,
announced as part of our mid-term strategic business plan in August 2019, we continue to drive fundamental business
transformation initiatives. We have been pushing forward our transformation efforts in the further evolution of the vending channel
operation model, the relocation of product inventories, and the consolidation of distribution bases centered around the Saitama
Mega DC to optimize the distribution network in the Kanto area, the streamlining of the supply chain system to realize low-cost
operations, and the promotion of new work styles. While the business environment continues to be challenging, we are focused on
identifying the issues and implementing short-term mitigation plans, as well as seeking new opportunities for growth and efficiency
as we work to respond to changes in the business environment over the medium and long term.
We also continue our activities to realize our ESG goals based on creation of shared value with society. As part of our efforts toachieve the 2030 Packaging Vision, towards a “World Without Waste”, we continue to increase the use of 100% recycled PET
bottles. In October, the Coca-Cola system in Japan has formulated targets to reduce greenhouse gas emissions across the entire
value chain in Japan by 2030. The system aims to reduce Scope 1 and 2 emissions by 50% and Scope 3 emissions by 30% against
the level in 2015.
As announced on December 15, 2020, “Notice of Selling of Shares of Q'sai Co., Ltd. and Gain on The Sale of Shares as well as
Revision of Earnings Forecast”, the share transfer of Q'sai Co., Ltd. ("Q'sai") was completed on February 1, 2021. We have revised
our business segment reporting to reflect only the results of continuing operations, the beverage business, after the sale of the healthand skincare segment. Relevant sections of prior year financial statements and notes have been reclassified.
Details for the year-to-date third-quarter period are as follows.
－2－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2021 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Highlights for the year-to-date third quarter・ Continued COVID-19 impact and repeated emergency declarations resulted in a slow consumer traffic recovery. Recordbreaking rainfall in August significantly impacted the peak summer month.
・ Sales volume increased by +2% YoY in Q3 and +2% year-to-date Q3. New products contributed to the volume growth but
was not able to offset the negative business environment impact. Year-to-date Q3 revenue declined -2% YoY due to changing
consumer preference on channel and package mix, and a decrease in wholesale revenue per case. Value share continued to
grow in the vending channel, and Supermarkets, drugstores and discounters channel market share started to recover・ Business income for year-to-date Q3 decreased by -18.4B yen YoY. In addition to the prolonged COVID-19 impact,
performance was impacted by heavy rains in August, a peak summer month, and the cycling of one-time cost savings in thesame period last year. Despite challenges, we continue to invest in our marketing and human resources at appropriate levels
to achieve sustainable future growth.
・ In a challenging operating environment, we are focused on what we can control, and implement short-term and mid-to-longterm plans. Transformation is progressing on track; about 8B yen of recurring cost savings achieved to date.
・ FY2021 guidance was announced. For the full year, 2% volume growth YoY, revenue of 789.6B yen (1.2%,9.4B yen
decrease), business income loss of 15.9B yen (16.1B yen decrease). Q4 reflects a subsiding of the COVID-19 impact.
However, expect the impact from competitive environment, cycling of the cost savings achieved last year, and the recent
surge in raw material prices.

Summary of Consolidated Financial Results(Millions of yen)

Year-to-date Q3 (January to March)
2020

2021

ChangeContinuing Operation (Beverage Business)
598,547

589,531

(1.5％)

343

351

2%

Gross Profit

275,493

260,823(5.3％)

Selling, General & Administrative Expenses

269,971

273,868

1.4％

Other income (Recurring)

563

650

15.5％

Other expenses (Recurring)

1,438

1,507

4.8％

Investment loss on equity method

(310)

(121)

－

Business Income (Loss)

4,336(14,023)－

Other income (Non-recurring)

1,782

5,584

213.3％

Other expenses (Non-recurring)

15,072

11,539(23.4％)

Operating Loss

(8,953)(19,978)－(4,644)(1,535)－

Revenue
Sales volume of beverage business (million cases)

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

(Millions of yen)

Q3 (July to September)
2020

2021

Change223,949

220,222(1.7％)

131

134

2％

Gross Profit

105,949

97,554(7.9％)

Selling, General & Administrative Expenses

93,95596,574

2.8％

Other income (Recurring)

190

235

23.7％

Other expenses (Recurring)

399

452

13.1％

Investment income (loss) on equity method

(80)

12

－

Business Income

11,704776(93.4％)

Other income (Non-recurring)

1,782

982

(44.9％)

Other expenses (Non-recurring)

7,503

3,486

(53.5％)

Operating Income (Loss)

5,983(1,728)－Net Income (Loss) Attributable to Owners of Parent

1,807(1,181)－

Revenue
Sales volume of beverage business (million cases)

Note: 1. “Business Income (Loss)” is a measure of our underlying or recurring business performance. Business Income (loss) deducts cost of goods andselling, general and administrative expenses from revenue, and includes other income and expenses which we believe are recurring in nature.
2. Net Income (Loss) Attributable to Owners of Parent is a total of continuing operation and discontinued operation results.
3. Sales volume in 2020 is revised retroactively due to changes of counting segmentation and scope in some products.

Consolidated net revenue decreased to 589,531 million yen (1.5% decrease of 9,016 million yen from the same period prioryear) due to a slower than expected sales volume of 2% YoY due to continued COVID-19 impact and the multiple state of
emergency delaying the recovery of traffic, and a decrease in demand in the peak month of August affected by unseasonably
wet weather. This is despite favorable contributions from new products and our responses to changes and trends in channels, thebusiness environment has seen an increase of at-home consumption with people refraining from going out or working fromhome resulting in consumer preference changes impacting channel and mix, and a decrease in revenue per case.
Consolidated business loss was 14,023 million yen (4,336 million yen profit in the same period of prior year). To minimize
the impact of the decrease in revenue on profits, cost saving efforts were made in all areas, including recurring cost savings
through transformation. Negative factors include channel and package mix headwinds from consumer preference changes,
decline in revenue per case, rise in commodity prices, and the increase in logistics costs. We have made investments at
appropriate levels in marketing and human resources that will contribute to our future growth.
Consolidated operating loss was 19,978 million yen (8,953 million yen loss in the same period of prior year). Other income(non-recurring) includes 4,634 million yen in government subsidies for employment adjustment to offset temporary leave
expenses. Other expenses (non-recurring) include 6,901 million yen in temporary leave expenses and 1,445 million yen intransformation-related expenses related to the implementation of transformation based on the medium-term plan, and 1,572
million yen in special retirement allowances due to the 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 1,535 million yen (4,644 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 performanceYear-to-date 3Q 2021 sales volume (hereinafter percentage change represent changes from the same period of the previous
year.), although there were contributions from the introduction of new products and responses to changing trends in each channel,
the increase was 2% compared to the same period of the previous year due to the delay in the recovery of traffic driven byrepeated emergency declarations and was impacted by heavy rains in August, a peak summer month.
In terms of channel performance, Vending sales increased by 1% year-to-date Q3 due to delayed recovery of people traffic
and unfavorable weather in August. Although the market environment continues to be challenging, the value share of Vending
continued to grow for 30 consecutive months, mainly due new products in non-sugar teas and water. Consumer traffic started torecover driving a volume-increase of 11% in July. Supermarkets, drugstores and discounters increased 6% and 8% respectively－4－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2021 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

in the year-to-date Q3. This is partially due to capturing demand for at home consumption and bulk purchases, as well as
responding to changes in customers' purchasing patterns, and promotional activities. In the CVS channel despite contributions
from new products and strategically rolled out 950ml PET, volume recovery has been delayed due to increased competition inpromotions, resulting in a 1% decrease for year-to-date Q3. In Retail and food, sales for commercial use continued to be negative
due to factors such as shortened restaurant opening hours and decreased by 13% for the year-to-date Q3. Online sales continued
to grow strongly and increased by 56% for year-to-date Q3 supported by the successful rollout of label-less products wellreceived by consumers' changing purchasing behavior and environmental awareness during COVID-19.
In terms of beverage category performance, Sparkling beverages increased 1% in Q3 and was flat for the year-to-date Q3 due
to contributions from the premium-priced Fanta Premier series and other products as well as growth in Supermarkets and otherchannels. New products such as Yakan Barly Tea from Hajime and Ayataka Cafe Matcha Latte respectively contributed to an
8% increase in non-sugar tea sales and 5% increase for the year-to-date Q3. Coffee sales decreased 3% for the year-to-date Q3
due to a decline in sales of canned coffee, despite growth in PET bottle coffee through the introduction of new products such as
Costa Coffee and Georgia Shot & Break. In sports, despite the lifting of some restrictions on events and the improved sentimentwith the Olympic Games, the category grew 1% in Q3 year-to-date, as the Olympics Games were held without any spectatorsand the record-breaking heavy rains during the summer. Water volume increased 24% in Q3 year-to-date, supported by thegrowth of large PET in supermarkets, drugstores, discounters and online channels. This was as a result of increased at-homeconsumption, as well as contributions from new ICY SPARK and Ilohas small PET.
The ready-to-drink alcohol category, with the contribution from new Nomel’s Hard lemonade and Lemon-dou summer
promotions, increased 23% in Q3, and 7% in year-to-date Q3. We are working to further strengthen the category by launching
Topo Chico Hard Seltzer, the first global alcohol brand from The Coca-Cola Company, in select areas.
(2) Qualitative Information on Consolidated Financial Position
Assets at the end of the quarter were 866,711 million yen, a decrease of 71,893 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.
Liabilities at the end of the quarter were 372,072 million yen, a decrease of 65,438 million yen from the end of the prior year
period. This is mainly due to decrease of bonds and borrowings with the repayment of short term loans, and the sales of the Q’sai
shares, decreasing the Liabilities directly associated with assets held for sale.
Net Assets at the end of the quarter were 494,638 million yen, a decrease of 7,455 million yen from the end of the prior year
period. This mainly reflects a decrease in Retained earnings as a result of dividend payments.
(3) Cash flows
The cash flow conditions for the 3rd quarter of the current year are as follows:<Cash Flows from Operating activities >Net cash generated from operating activities was 23,199 million yen (35,138 million net cash generated from operationsin the previous year period). This results mainly from the 20,395 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 Investing Activities>
Net cash generated for investing activities was 11,346 million yen (59,259 million yen outflow from investing activities
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 65,386 million yen (38,761 million yen net cash generated from 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 quarter was 95,538 million yen, a decrease of
30,840 million yen from the end of the prior fiscal year-end.
－5－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2021 pursuant to the Japanese Financial Instrumentand Exchange 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 third
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, anddrastically transforming the business to ensure growth.
－6－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2021 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

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 third 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

5,449

September 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 September 30, 2021 pursuant to the Japanese Financial Instrumentand Exchange 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 3rd Quarter(September 30,2021）

Class

No. of issued shares as offiling date（November 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
Increase/decrease in total no.
of issued shares(thousand share)

Date

July 1, 2021 –－September 30,2021

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

206,269－(5) Major shareholder status
Not applicable as this is the third quarter of the current year.

－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 September 30, 2021 pursuant to the Japanese Financial Instrumentand Exchange 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 September 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

26,923,600

Shares with full voting rights (Others)

Common shares

178,564,100

Odd lot shares

Common shares

780,893－－

206,268,593－-

Total number of issued shares

1,785,641－

Voting rights of all shareholders

1,785,641－-(Note): “Shares with full voting rights (Others)” includes 2,300 shares in JASDEC’s name (23 voting rights).

② Treasury Shares
As of September 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

26,923,600－

26,923,600

13.05

－

26,923,600－

26,923,600

13.05

Total

2. Status of Officers
Not applicable.

－9－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2021 pursuant to the Japanese Financial Instrumentand Exchange 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 third quarter of the current year (July 1, 2021 to September
30, 2021) and the first nine-months period of the current year (January 1, 2021 to September 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.

－10－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2021 pursuant to the Japanese Financial Instrumentand Exchange 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－11－(Millions of yen)
As of
September 30,2021

As ofDecember 31, 2020

114,778
96,00968,180702
17,195

95,53894,59876,5491,161
15,963296,865

283,809

48,138－345,003

283,809460,50229,81066,193445,478
25,88766,007287

323

25,6404,986
7,183
594,601

24,45011,696
9,061
582,901

939,603866,711

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2021 pursuant to the Japanese Financial Instrumentand Exchange 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 of
September 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－12－

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

101,879
30,986
5,403
23
648
16
15,481
154,437

7,193－

185,869

154,437

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

156,602
21,940－16,5662,131
17,407
2,989

251,641
437,510217,635
372,072

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

15,232450,888
109,880(85,660)

1,095

4,163

(107)

－

501,643450

494,503
136

502,093
939,603494,638
866,711

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2021 pursuant to the Japanese Financial Instrumentand Exchange 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 nine -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 discontinued operations attributable toowners of parent
Non-controlling interests
Earnings (Loss) per share (yen)Continuing operations
Discontinued operations
Loss per share (yen)

11

－13－

Nine months ended

Nine months ended

September 30, 2020

September 30,2021

598,547
323,054
275,493269,971
2,345
16,510(310)(8,953)611
815(9,157)(2,718)(6,439)589,531
328,708
260,823
273,868
6,234
13,046(121)(19,978)309
726(20,395)(6,338)(14,057)

1,769

12,505(4,670)(1,552)(6,412)(14,040)

1,768

12,505(26)(17)(35.75)9.86(25.90)(78.28)69.72(8.56)

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

【Third 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:
Profit (Loss) from continuing operations attributableto owners 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－

Three months ended
September 30, 2020Three months ended
September 30, 2021

223,949
118,000
105,949
93,955
1,972
7,902
(80)
5,983
206
280
5,910
4,693
1,216

220,222
122,668
97,55496,574
1,218
3,938
12
(1,728)38
230(1,920)(735)(1,185)

575

－

1,792

(1,185)

1,230(1,181)

577

－

(16)

(5)

6.86
3.22
10.08

(6.58)－(6.58)

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2021 pursuant to the Japanese Financial Instrumentand Exchange 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 nine -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:

Nine months ended

Nine months ended

September 30, 2020

September 30,2021(4,670)(1,552)

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)(3,364)

1,794(3,364)

1,782

Subtotal
Total other comprehensive income (loss) for the period
Total comprehensive income (loss) for the period(3,411)(3,411)(6,775)(11,446)

2,198
2,198
3,980
2,428

Comprehensive income (loss) attributable to:
Owners of parent
Non-controlling interests(11,420)
(26)

2,445
(17)

Subtotal
Items that may be reclassified subsequently to income (loss):
Cash flow hedges－15－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2021 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

【Third 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:
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
Subtotal
Total other comprehensive income (loss) for the period
Total comprehensive income (loss) for the period
Comprehensive income (loss) attributable to:
Owners of parent
Non-controlling interests－16－

Three months ended(Millions of yen)Three months ended

September 30, 2020

September 30,2021

1,792(1,185)

13

366

13

366

(1,746)(1,746)(1,733)
58

111
111
477
(708)

74
(16)

(703)
(5)

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2021 pursuant to the Japanese Financial Instrumentand Exchange 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
Nine months ended September 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－－(4,644)－－(4,644)(26)(4,670)

－

－

－

－

(6,775)(6,775)－(6,775)－－(4,644)－(6,775)(11,420)(26)(11,446)

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

－

－

－

(6)

－

(6)

－

(6)

Disposal of treasury stock

－

(1)

－

3

－

2

－

2

Transactions of share-based
payment

－

232

－

－

－

232

－

232

－

－

114

－

(114)

－

－

－

－

－

－

－

2,538

2,538

－

2,538

－

231

(4,370)

(4)

2,424

(1,719)(28)(1,747)

15,232450,757

112,358(85,653)165

492,860

439

493,298

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

7

－17－

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

Nine months ended September 30,2021(Millions of yen)

Capitalstock

Capitalsurplus

Equity attributable to owners of the parent
Accumulated other
Other
comprehensive
comprehensive
income of disposal
Retained
Treasury
incomegroups classified as
earnings
sharesaccumulated
held for sale

15,232450,605

120,473(85,654)

1,095

(107)

501,643450

502,093－－(1,535)－－－(1,535)(17)(1,552)Other comprehensive income(loss)

－

－

－

－

3,980

－

3,980

－

3,980

Total comprehensive income (loss)
for the period－－(1,535)

－

3,980

－

2,445

(17)

2,428

Notes
Balance as of January 1, 2021

Total

Noncontrollinginterests

Total

Comprehensive income for theperiodNet income for the period

Transactions with owners

Dividends of surplus－－(8,967)－－－(8,967)－(8,967)Purchase of treasury stock

－

－

－

(6)

－

－

(6)

－

(6)

Disposal of treasury stock

－

(0)

－

0

－

－

0

－

0

Transactions of share-based
payment

－

283

－

－

－

－

283

－

283

－

－

17

－

(17)

－

－

－

－

－

－

－

－

(895)

－

(895)

－

(895)

Changes from loss of control

－

－

(107)

－

－

107

－

(297)

(297)

Other

－

－

－

－

－

－

－

－

－

－

283

(9,058)

(6)

(912)

107

(9,586)(297)(9,883)

15,232450,888

109,880(85,660)

4,163－

494,503136

494,638

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

Total transactions with owners
Balance as of September 30,2021

7

－18－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2021 pursuant to the Japanese Financial Instrumentand Exchange 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

Nine months ended

Nine months ended

September 30, 2020

September 30,2021

Cash flows from operating activities
Loss for the period before income tax from continuing(9,157)(20,395)

2,611

12,841

44,28643,083operations
Income for the period before income tax fromdiscontinued operations
Adjustments for:
Depreciation and amortization
Impairment loss

86

427

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

35

989

Interest and dividends income

(297)

(172)

Interest expenses

823

702

Investment loss on equity method

310

121

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

(5)

(247)

1,053

923

3,932

849

Increase in inventories(3,992)(8,369)

Increase in other assets(8,542)

1,697

Increase in trade and other payables

1,847

10,182

Increase in net defined benefit liabilities

1,689

1,678

Decrease in other liabilities(1,072)

235

294

(127)

33,90230,868OthersSubtotalInterest received

0

1

Dividends received

297

171

Interest paid
Income taxes paid

(738)

(686)

(6,000)(10,108)

Income taxes refund

7,677

2,953

Net cash (used in) provided by operating activities

35,13823,199(60,135)(35,707)

120

506

－

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

(39)

(36)

Proceeds from sale of other financial assets

808

4,473

－

34,490

Proceeds from sale of stock of subsidiaries

6

Other
Net cash used in investing activities

－19－

(13)

219

(59,259)

11,346

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

(Millions of yen)
Notes

Nine months ended

Nine months ended

September 30, 2020

September 30,2021

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

50,000(50,000)(1,249)(1,072)

Dividends paid

(4,484)(8,967)

Dividends paid to non-controlling interests

(28)

－

Proceeds from disposal of treasury stock

2

0

7

Purchases of treasury stock

(6)

(6)

Repayments of lease liabilities(5,473)(5,341)

Net cash provided by financing activities

38,761(65,386)

Net change in cash and cash equivalents

14,640(30,840)

Cash and cash equivalents at the beginning of the year

113,825

126,378

Cash and cash equivalents at the end of the period

128,465

95,538－20－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2021 pursuant to the Japanese Financial Instrumentand Exchange 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 November 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 Nine months ended September 30,2021, has been calculated on the basis of the annual estimatedeffective 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. Although themultiple state of emergency declarations due to the spread of the new coronavirus infection were lifted in all prefectures in
September, the situation is expected to continue to be uncertain as to the timing and extent of the impact of the convergence. In
addition, since the recovery of demand is expected to take a certain period of time, the Company has made an accounting
estimate based on the assumption that this impact will continue in 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.

－21－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2021 pursuant to the Japanese Financial Instrumentand Exchange 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
Total assets

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

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
Total non-current liabilities

1,088
366
148
1,602
7,193

Total liabilities－22－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2021 pursuant to the Japanese Financial Instrumentand Exchange 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)
Nine months ended
September 30, 2020
Discontinued operations
Revenue
Cost of sales

Nine months ended
September 30, 2021

18,227
3,692－－

Gross profit

14,535－

Selling and general administrative expenses
Other income
Other expenses

11,91219
23－
12,841

Operating income

2,619

12,841

Financial revenue
Finance costs

0
8

－
－

2,611
842

12,841337

1,769

12,505

Income for the period before income taxes
Income tax expense
Net income for the period from discontinued
operations－(3) Cash flows of discontinued operations
The results of discontinued operations are as follows:(Millions of yen)
Nine months ended
September 30, 2020
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities

Nine months ended
September 30, 2021
2,795
(388)
(123)

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

－23－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2021 pursuant to the Japanese Financial Instrumentand Exchange 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)
Nine months ended
September 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

34,490－24－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2021 pursuant to the Japanese Financial Instrumentand Exchange 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 nine -months of the prior year (January 1, 2020 – September 30, 2020)
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

First nine-months of the current year (January 1, 2021 – September 30,2021)
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

Ordinary share

4,484

25

September 30, 2021

September 1, 2021

March 25, 2021
Ordinary General Meeting of
Shareholders
August 11, 2021
Board of directors

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)
Nine months ended
September 30, 2020

Nine months ended
September 30, 2021

597,914633

589,221310

598,547

589,531

Beverage
Other
Total

－25－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2021 pursuant to the Japanese Financial Instrumentand Exchange 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)
Nine months ended
September 30, 2020

Nine months ended
September 30,2021

Other income
Gains on sales of property, plant and equipment

167

247

Rent income

266

230

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

1,782

4,634

－

708

131

415

Total

2,345

6,234

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

86

427

1,643

1,126

3,440

1,445

Special retirement allowance (Note 4)

7,435

1,572

Temporary paid leave expenses (Note 5)

2,841

6,901

Product valuation losses (Note 6)

273－

Costs of postponing the Olympics (Note 7)

Other expense

257－

System failure-related costs (Note 8)

－

1,188

Other

535

387

16,51013,046

Total(Note) 1. Government subsidies are grants to cover employee’s temporary leave cost due to the spread of COVID-19.
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 315million yen and 532million yen
from cost of sales and 2,525 million yen and 6,369 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.

－26－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2021 pursuant to the Japanese Financial Instrumentand Exchange 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 third 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 September 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: 7.3－51.5 times

Estimated fair value increases (decreases)

similar

EBITDA Multiple: 6.6 times

when equity indices of comparable listedcompanies

PBR: 1.0－2.8 times

companies of the target are high (low)EBIT Multiple: Corporate Value/EBIT
EBITDA Multiple: Corporate Value/EBITDAPBR: Price Book Value Ratio－27－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2021 pursuant to the Japanese Financial Instrumentand Exchange 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 September 30,2021(Millions of yen)
Level 1

Level 2

Level 3

Total

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

1,690

－

1,690

－

1,690

－

1,690

13,698
－

－
－

4,577
145

18,275145

Subtotal

13,698－

4,722

18,420Total

13,698

1,690

4,722

20,110

－

23

－

23

－

23

－

23

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

－28－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2021 pursuant to the Japanese Financial Instrumentand Exchange 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 (losses) recognized in other comprehensive income

(1)
(622)

Balance at September 30, 2020

4,769

Balance at January 1, 2021
Disposals

4,694
(25)

Gains (losses) recognized in other comprehensive income

53

Balance at September 30,2021

4,722

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

187,588

Fair value
187,853

Difference(265)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.

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

11. Income 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 third quarter of the current year and prior year
is as follows:

Nine months ended
September 30, 2020

Nine months ended
September 30,2021

Loss from continuing operations attributable to owners ofparent(6,412)(14,040)

Profit from discontinued operations attributable to ownersof parent

1,768

12,505Weighted-average shares of ordinary share outstanding (inthousands)

179,350

179,346

Earnings (Loss) per share (yen)Continuing operations(35.75)(78.28)Discontinued operations
Loss per share (yen)9.86(25.90)69.72(8.56)

Three months ended
September 30, 2020Three months ended
September 30, 2021

Profit (Loss) from continuing operations attributable toowners of parent

1,230(1,181)

Profit from discontinued operations attributable to ownersof parent

577－

Weighted-average shares of ordinary share outstanding (inthousands)

179,350

179,345

Earnings (Loss) per share (yen)Continuing operations

6.86

Discontinued operations
Loss per share (yen)

3.22
10.08

(6.58)－(6.58)

Note 1. In the cumulative third quarter of the current fiscal year, 411 thousand shares of stock-based compensation were accounted for
antidilutive, "Diluted earnings per share" is not shown.
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－30－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2021 pursuant to the Japanese Financial Instrumentand Exchange 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

－31－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2021 pursuant to the Japanese Financial Instrumentand Exchange 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－32－