Coca-Cola East Japan
Q1 2017 Earnings Results
Supplemental Material
May 1, 2017
Coca-Cola Bottlers Japan Inc.
This supplemental material covers standalone Coca-Cola East Japan (CCEJ) Q1 2017 results before
establishment of Coca-Cola Bottlers Japan Inc. (CCBJI) on April 1, 2017 as a result of the businessintegration between CCEJ and Coca-Cola West. CCBJI expects to host a kick-off presentation to explain its
mission, vision and values, strategy and business plan and will announce these plans and presentation
date once they are decided.

CCEJ Q1 2017

Forward-Looking Statements
The plans, performance forecasts, and strategies appearing in this material are based on the assumptions and judgment of the management ofCoca-Cola Bottlers Japan Inc. (CCBJI) and/or Coca-Cola East Japan Co. Ltd. (CCEJ) in view of data obtained as of the date this material was released.
These forecasts may differ materially from actual performance due to risks and uncertain factors such as those listed below.
Risks and uncertain factors are not limited to the items listed below. They are also included in our annual securities report, or “Yuka Shoken
Houkokusho”.
• Intensification of price competition in the marketplace• Change in economic trends surrounding our business• Major fluctuations in capital markets• Fluctuations in currency exchange rates, particularly with respect to the value of the Japanese yen and the U.S. dollar• Increases in prices of raw materials• Change in the tax environment• CCBJI/CCEJ's ability to realize production efficiencies and to implement capital expenditures at the levels and times planned by management;• CCBJI/CCEJ's ability to market and distribute effectively• Uncertain factors other than those aboveThe information in this presentation is provided for informational purposes and should not be construed as a solicitation of an investment in oursecurities.
CCBJI/CCEJ undertakes no duty to update any statement in light of new information or future events. You should rely on your own independent
examination of us before investing in any securities issued by our company.

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CCEJ Q1 2017

CCEJ: Q1 2017 Financial Results Summary
Significant Improvement of Operating Income vs. Prior Year

• Revenue and volume impacted by one fewer selling day in Q1 vs. prior year • Revenue per case improvements acrossmost channels • SG&A decreases led by lower sales promotions and marketing due to cycling of activities in the prioryear, decrease in labor, etc. • Integration related expenses impacted net income

Q1 2017

Q1 2016

Vs. PY

in million yen

in million yen

Diff%

Sales Volume67,423

68,349-927-1.4

Net Revenue

122,737

124,522-1,785-1.4

COGS64,22365,818-1,595-2.4

Gross Profit

58,51358,703

-190

-0.3

SG&A

57,13159,145-2,013-3.4

Operating Income

1,381-442+1,823-Profit Before Tax664-1,105+1,770-

Net Income585-838+1,424-(BAPC) (,000 cases)

Capital Expenditure: 3,980M JPY / Depreciation and Amortization: 5,816M JPY

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CCEJ Q1 2017

CCEJ: Drivers of Q1 Operating Income GrowthDME• Cycling 2016activities & phasingof expenditures,
expect to be in-linewith plan in 1H• Volume decline

-281
+636
Depreciation
OtherOPEX,etc.

Q1 2016
Operating
Income-442

Gross Profit
Impact ofVolume,
Price/Mix• Improved
pricing offset
by volumedecline andchannel mix-136

SupplyChainSavings+1,280Q1 2017
OperatingIncome• Decreaseof labor,etc.

• Increase ofproperty,
plant andequipment vs.
prior year,etc.

1,381• Manufacturing andprocurement
synergies+325

Unit: Million JPY
DME: Direct Marketing Expenses

4

CCEJ Q1 2017

CCEJ: Q1 Performance by Channel
Improvement in profitability across the channels
Q1 Volume by Channel

Channel Volume Growth(% of total)
Others Supermarket
10%(SM)
Vending (VM)
21%
29%
Convenience
Eating &Store (CVS)
Drinking (E&D)
15%
14%Volume YoY: -1.4%

Drug &Discounter(D&D)
11%

vs. PYCVS

D&D

Nat’lSM

Local
SMVM

E&DQ1 2017-3%even+2%+1%-6%+4%

Q1 Performance Drivers• Sparkling & NST grew in Drug & Discounter• Growth in Sparkling and smaller packages in Supermarkets• Growth in sparkling and I LOHAS Water offset by Coffee and NST inVending• CVS impacted by cycling of prior year new launches in Coffee andWater* NST (Non-Sugar Tea)

5

CCEJ Q1 2017

CCEJ: Q1 Performance by Category
Growth in sparkling led by new launches, mixed results by category
Category Volume Growth

Q1 Volume by Category(% of total)
Juice 5%Sports 6%

Others13%Sparkling(SSD) 27%

vs. PYNSTWaterCoffee

SSDSports

JuiceQ1 2017

even-11%-9%+7%-8%+1%* NST (Non-Sugar Tea)

Water 9%Coffee
18%

Teas
22%

Volume YoY: -1.4%

Q1 Performance Drivers• Sparkling grew in all channels, led by brand Coca-Cola, newly
launched Coca-Cola Plus (FOSHU), Fanta, etc.
• Decline of Water and Coffee due to cycling of prior year strong
new launches. Growth of bottle can in Coffee continued• Renewed Sokenbicha continued good performance in NST

6CCEJ Q1 2017

CCEJ: Market Share and Retail Pricing Trend
CCEJ Market Share
Q1 2017
vs. Prior Year

Value
Volume-0.7-0.7

Source: Intage, OTC channel, NARTD beverages• Value share grew in Cola, othersparkling and water category• Convenience store channel
mainly impacted value andvolume share performance• CCEJ average retail price continues above market
average for both large and small packages• Versus prior year turns to positive in Q1
vs. Market
Averagevs. Prior Year

Large PET

+1.8+0.7

500ml PET

+14.3+1.8

CCEJ OTC Retail Price(YTD, as of March 2017)

Value Share Growth vs. Prior Year

Volume Share Growth vs. Prior Year

Unit: JPY
Source: Intage Weekly (Supermarket and Drug & Discounter)7

Appendix

CCEJ Q1 2017

The Coca-Cola System
A powerful partnership driving growth of the Coca-Cola business
The Coca-Cola system in Japan consists of the Coca-Cola (Japan) Company (CCJC), bottlers and other related companies.
CCJC, as the franchise owner, is responsible for supplying concentrate and beverage bases (coffee beans, tea leaves, juices, etc.) for all of Coca-Cola’s
brands, as well as R&D, innovation, and marketing and brand development.
The bottlers, including Coca-Cola Bottlers Japan Inc., as franchisees, are responsible for manufacturing, distribution and selling the finished products.
We all are working together with our system partners to grow the Coca-Cola business by optimizing our overall operations through more efficient
production and distribution, marketplace execution that is firmly focused on the consumer, faster response to market preferences, enhanced customer
service, and rigorous quality control.
Other Coca-Cola System Related Companies in Japan
Coca-Cola Tokyo Research &Development Co., Ltd. (CCTR&D)

Product development and technical support to respond to the needs of the customer
in Japan. A wholly owned subsidiary of The Coca-Cola Company.

Coca-Cola IBS Co., Ltd. (CCIBS)

Providing business consulting services, as well as developing and maintaining theinformation systems to support Coca-Cola System companies in Japan. Jointly owned
by The Coca-Cola Company and all the bottlers in Japan.
Providing joint procurement of raw materials, packaging, equipment, indirectmaterial, etc., for Coca-Cola System companies in Japan. Jointly owned by The CocaCola Company and all the bottlers in Japan.
Business negotiations window for nationwide retail, convenience stores, supermarket
and food-service chains as well as developing proposals for sales promotions andstorefront activities. Jointly owned by CCJC and all the bottlers in Japan.
Sales negotiations window for national chain vending operators, and deals non-CocaCola products as well as Coca-Cola branded products. Jointly owned by CCJC and allthe bottlers in Japan.

Coca-Cola Bottlers Japan Inc.
Coca-Cola Business Sourcing Co.,
Ltd. (CCBSC)
Coca-Cola Customer Marketing
Company (CCCMC)FV Corporation Co., Ltd. (FVC)9CCEJ Q1 2017

Glossary of Frequently Used TermsCDE

Abbreviation of Cold Drink Equipment. Vending machines, coolers and beverage dispensers, etc.

DME

Abbreviation of Direct Marketing Expenses. Sales promotion-related expenses reported in advertisement & sales promotion expenses andpartly in sales commissions of SG&A.

FC

Abbreviation of Future Consumption. Purchase or sell beverage for future consumption in home, etc. It also means the products / SKUs for
FC (for example, single packages 1L or more and multi-pack of IC packages) and channels that consumers purchase the beverages for FC.
(for example, supermarket, drug & discounter channels, etc.).

HORECA

Abbreviation of Hotel, Restaurants and Cafeteria. Generally means sales channels of these kinds.

IC

Abbreviation of Immediate Consumption. Purchase or sell beverage for consuming it immediately. It also means the products / SKUs for IC(for example, single packages less than 1L as well as fountain) and channels that consumers purchase the beverages for IC (for example,vending machines, convenience store channel, etc.).

OBPPC

Abbreviation of Occasion, Brand, Package, Price, Channel. A segmentation strategy tailored to consumption opportunities to drive
revenue growth in five areas: occasion, brand, package, price and channel.

OperationalExcellence(OE)

The Coca-Cola System’s way to develop people and culture around productivity which allows higher financial value achievement by driving
sustainable improvement using common language and tools as well as focusing on business priorities.

PicOS

Abbreviation of Picture of Success, which outlines standards and examples for making ideal market place execution and market place
activities including product deployment, CDE and advertisement placement, vending machine faces and column management, etc.

PTC

Abbreviation of Price, Terms and Conditions, an internal guideline for setting appropriate transaction conditions with customers,
frequently used in conjunction with RGM.

RGM

Abbreviation of Revenue Growth Management, an overall strategy and process to grow revenue and profit

RTM

Abbreviation of Route-to-Market. A framework, a process, a philosophy, a proven approach for driving profitable growth.

10THANK YOU
Coca-Cola East Japan
Q1 2017 Earnings Results
Supplemental Material
May 1, 2017
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Investor Relations
Coca-Cola Bottlers Japan Inc.
ir@ccbji.co.jp+81-3-5575-3797
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