This document is a summary translation of the Japanese language original version. In the event of any discrepancy, errors
and/or omissions, the Japanese language version shall prevail.

Summary of Consolidated Financial Statements (Japanese Standards)
for the First Quarter of the Year Ending December 31st, 2017 (Q1 2017)
May 1, 2017
Listed Company Name:
Security Code:
Representative:
Contact:

Coca-Cola Bottlers Japan Inc.
(For Coca-Cola East Japan Co., Ltd.)
2579(2580 for Coca-Cola East Japan)
Representative Director,
Title
President
Leader, Controller Group
Title

Scheduled date of submission of quarterly
security report:

Listed Stock Exchange:

Tokyo Stock Exchange
Fukuoka Stock Exchange

URL:

https://en.ccbji.co.jp/

Name:

Tamio Yoshimatsu

Name:

Masakiyo Uike

TEL: 03 (6896) 1707

Schedule date of start ofdividend payment:

May 15, 2017

Preparation of supplementary documents for earnings results:

Yes

Earnings results presentation/conference:

No-(Amounts of less than one million yen are rounded down)

1． Consolidated Financial Results for the First Quarter Ending March 31, 2017 (January 1, 2017 – March 31, 2017)(1)
Consolidated Operating Results (YTD)(Percentages show year-on-year changes)
Net Income
Attributable to
Net Sales
Operating Income
Ordinary Income
Owners of Parent
Million Yen%

Million Yen%

Million Yen%

Million Yen%

Q1 2017
122,737
-1.4
1,381
－
1,354
－
585
－
Q1 2016
124,522
13.0
-442
－
-695
－
-838
－
(Remarks)
1. Comprehensive income: Q1 2017: Million Yen (－%)
Q1 2016: -2,080 Million Yen (－%)
2. Change of presentation has been applied since the beginning of the first quarter. Q1 2016 ordinary income was revised
reflecting the reclassification by this change.
Net Income per Share
Q1 2017
Q1 2016(2)

Diluted Net Income per Share
Yen

Yen

4.62
-6.61

4.60
－

Consolidated Financial Position
Total Assets
Million Yen

Net Assets
Million Yen

Equity Ratio%

Q1 2017368,166
231,53362.9
FY2016369,348
233,635
63.1(Reference) Shareholders’ equity: Q1 2017: 231,533 Million Yen FY2016: 232,961 Million Yen

2． Dividends
End of Q1

End of Q2

Yen

Dividend Per Share
End of Q3

Yen

Year-end

Yen

AnnualYenyen

FY2016
－
16.00
－
16.00
32.00
FY2017－FY2017 (Forecast)－－－－(Remarks)
1. Revisions to the Earnings forecasts disclosed most recently:
No
2. FY2017 dividend forecast for CCEJ is omitted, as business integration between the company and Coca-Cola West Co., Ltd.
through a combination of a share exchange and incorporation-type company split became effective on April 1, 2017.
Useful Information for Investors for Estimating Full-year Results(Percentages show year-on-year changes)

Net Sales
Million Yen

Operating Income%

Million Yen%

Ordinary Income

Net Income
Attributable to
Owners of Parent

Million Yen

Million Yen

%

EPS

%

Yen

Full-Year(Remarks)
1. Revisions to the Earnings forecasts disclosed most recently:
No
2. FY2017 forecast for CCEJ is omitted, as business integration between the company and Coca-Cola West Co., Ltd. througha combination of a share exchange and incorporation-type company split became effective on April 1, 2017.
Notes:(1)
Changes of important subsidiaries during consolidated Q1 2016

None

(Changes of specific subsidiaries accompanied by changes in the consolidation scope)(2)

Application of particular accounting treatments to the preparation of quarterly consolidated
financial statements

(3)

-

None

Changes in accounting policies and changes or restatement of accounting estimates(i) Changes in accounting policies accompanied by revisions of accounting standards, etc.

None(ii) Changes in accounting policies other than (i)None(iii) Changes in accounting estimatesNone(iv) Restatement

None

(4)
Number of Issued Shares (Common Shares)(i) Number of issued shares at the end of each
Q1 2017
fiscal year (including treasury stocks)(ii) Number of treasury stocks at the end of
Q1 2017each fiscal year(iii) Average number of the shares during each
Q1 2017
fiscal year

127,875,749 shares

FY 2016

127,680,144 shares- shares

FY 2016

839,207 shares

126,843,449 shares

Q1 2016

126,824,279 shares* This quarterly financial statements summary falls outside the quarterly audit review.
* Explanation regarding the appropriate use of earnings forecasts and other special notes
The forward-looking statements such as plans, forecasts, strategies, etc. appearing in this summary shall not be deemed ascommitments of the Company. The forward-looking statements have been prepared based on various information available
to the Company and certain assumptions considered reasonable by the Company. The actual results may differ significantly
due to various factors.

Contents of the Attached Materials

1. Qualitative Information on Results for the First Quarter of the Year Ending December 31, 2017 ...........2(1) Qualitative Information on the Consolidated Operating Results......................................................................2(2) Qualitative Information on the Consolidated Financial Positions ....................................................................3
2. Consolidated Financial Statements and Notes to Consolidated Financial Statements ............................4(1) Consolidated Balance Sheet .............................................................................................................................4(2) Consolidated Profit and Loss Statement and Comprehensive Profit and Loss Statement............................6(3) Notes to Consolidated Financial Statements....................................................................................................8(Notes to assumption of going concern) ............................................................................................................8(Notes in the event of significant changes in amount of shareholders’ equity) ................................................8(Additional information) .......................................................................................................................................81

1. Qualitative Information on Results for the First Quarter of the Year Ending December 31,
2017(1) Qualitative Information on the Consolidated Operating Results
On April 1, 2017, Coca-Cola Bottlers Japan Inc. (“CCBJI”) was established as a result of the businessintegration between Coca-Cola East Japan Co., Ltd. (“CCEJ” or the “Company”) and Coca-Cola West Co., Ltd.
CCEJ as a standalone company was delisted from the Tokyo Stock Exchange on March 29, 2017.
CCEJ, as a subsidiary of CCBJI, announced the consolidated financial results for the first quarter 2017
(January 1, 2017 to March 31, 2017). In addition to this qualitative information section, please also see thesupplemental material related to CCEJ’s first quarter performance posted on CCBJI investor relations website(https://en.ccbji.co.jp/ir/).
CCBJI expects to host a kick-off presentation to explain its mission, vision and values, strategy and businessplan and will announce these plans and presentation date once they are decided. At that time, a live webcast
and replay will be available on the CCBJI investor relations website (https://en.ccbji.co.jp/ir/).
First Quarter Results Highlight・

Operating income reached 1.3 billion JPY, a significant improvement from an operating loss of 442 M
in the first quarter 2016.

・

Volume performance was slightly negative (1%) year-on-year, driven by one fewer selling day in thequarter. Strong performance of sparkling soft drinks was partially offset by weakness in coffee, water.

・

Revenue per case improvements across most channels was offset by channel mix pressure.

Operating Review
Total nonalcoholic ready-to-drink (NARTD) beverage industry volumes were generally flat versus prior year in
the first quarter. First quarter total BAPC sales volume for CCEJ declined 1% year-on-year, impacted by one
fewer selling day versus the prior year.
Volume performance in the first quarter showed mixed results across channels, with an improvement of selling
price to customers observed across most channels. The Supermarket and Drug & Discounter channels wereeven year-on-year due to a decrease of water and larger-sized packages, partially offset by growth of sparklingand smaller-sized packages. Convenience Store volume declined 3%, as growth of non-sugar tea andsparkling beverages was offset by weakness in coffee and waters. Vending channel volume declined 6%
cycling strength in coffee and non-sugar tea in the prior year, however channel profitability has improved
supported by growth of sparkling, water and the rollout of vending-exclusive products. Eating & Drinking
channel volume grew 4%.
In terms of first quarter beverage category volume performance, sparkling beverage volume grew 7% withgrowth in all channels, led by growth in trademark Coca-Cola and Coca-Cola Plus, a newly launched FOSHU(Food for Specified Health Use) product. Non-sugar tea volume was slightly negative with growth of therenewed Sokenbicha brand offset by weakness in the supermarket and vending channels. Coffee volume
declined 9% due to weak performance in the Vending and Convenience Store channels. Water volume
declined 11% due to a decrease of larger package-sized Morinomizu Dayori brand as well as a decrease ofiLohas premium water mainly in the Convenience Store channel due to cycling of new product launches in theprior year. Sports drinks volume was negative 8% and Juice volume was slightly positive.

2

Financial Review
Reported Results
Q1 2017 (January to March)
2016

2017

% Change

Volume** (BAPC, in thousand)

68,34967,423-1.4%

Net Sales

124,522

122,737-1.4%

Operating Income (Loss)

(442)

1,381

-

Net Income (Loss)

(838)

585

-

In Million JPY, except volume

Attributableto Owners of Parent

Our quarterly operating results during the year tend to exhibit seasonal variation, as the demand fornonalcoholic ready-to-drink beverages is higher in the summer months. Sales and profits consequently areoften lower in the first quarter than in subsequent quarters.
First quarter reported revenue was JPY 122,737 million, a 1% decrease compared to the prior year period,
mainly attributable to volume decline, which was impacted by one fewer selling day in the quarter versus theprior year.
First quarter operating income grew significantly to JPY1,381 million (JPY442 million operating loss in the prioryear period). Lower advertisement & sales promotion expenses, sales commissions, etc. due to cycling ofactivities in the prior year period resulted in a decrease of selling, general and administrative expenses.
Net income attributable to owners of parent was JPY585 million (JPY838 million net loss in the prior year
period), reflecting extraordinary expenses related to the integration planning for CCBJI, as well as growth inoperating income.

(2) Qualitative Information on the Consolidated Financial Positions
The financial positions at the end of the first quarter are as follows:
Assets at the end of the quarter were JPY 368,166 million, a decrease of JPY 1,182 million from the end of theprevious fiscal year. This is mainly attributable increase of merchandise and finished goods, raw material andsupplies, etc. in current assets due to seasonal factors offset by a decrease of fixed asset, etc.
Liabilities at the end of this quarter were JPY 136,632 million, an increase of JPY 919 million from the end of
previous fiscal year. This is mainly due to an increase of accounts payable-trade, short-term loans payable, etc.
Net assets at the end of this quarter were JPY 231,533 million, a decrease of JPY 2,101 million. This is due toretirement of treasury stock, decrease of retained earnings as a result of paying year-end dividends, etc.

3

2. Consolidated Financial Statements and Notes to Consolidated Financial Statements(1) Consolidated Balance Sheet(MM yen)

FY2016

Q1 2017 YTDAssetsCurrent assets
Cash and deposits

16,357

15,409Notes and accounts receivable-trade43,51041,295Merchandise and finished products

31,67633,140Work in process－187

Raw materials and supplies

3,531

5,912

Others

19,766

19,643

Allowance for doubtful accounts

(153)

(126)

114,688

115,462

Buildings and structures, net

45,40644,646

Machinery, equipment and vehicles,net

43,35842,463

Sale equipment, net

65,80265,931

Land

63,132

63,043

Other, net

3,002

3,507

220,702219,592

9,119

9,291

Other

25,06524,038

Allowance for doubtful accounts

(227)

(219)

Investments and other assets

24,83823,819254,660

252,703369,348

368,166

Accounts payable-trade21,60728,542

Short-term loans payable

－

2,000

Current portion of bonds payable

14,00014,000Current portion of long-term loans payable

1,855

1,819

Income taxes payable

420

82

Provision for bonuses

2,761

1,947

Provision for directors' bonuses

169

4

Provision for environmental measures

45－

Provision for early termination

850

720

Asset retirement obligations

27

28

Other

39,40134,014Current liabilities

81,14083,160Bonds payable

16,00016,000Long-term loans payable

13,664

12,841

254

254

Current assets
Noncurrent assets
Property, plant and equipment

Property, plant and equipment
Intangible assets
Investments and other assets

Noncurrent assets
AssetsLiabilities
Current liabilities

Noncurrent liabilities

Provision for environmental measures

4

Provision for early termination

581

492

Net defined benefit liability

22,39922,067

Asset retirement obligations

816

813

Other

855

1,003

54,57253,472

135,713

136,632

Noncurrent liabilities
Liabilities(MM yen)
FY2016

Q1 2017 YTD

Net assets
Shareholders' equity
Capital stock

6,499

6,499

Capital surplus

157,323

156,230

Retained earnings

75,11473,670Treasury stock(1,158)－

Shareholders' equity

237,779

236,401

Valuation difference on available-for-sale securities

1,732

1,557

Deferred gains or losses on hedges

(89)

(125)

Remeasurements of defined benefit plans(6,461)(6,299)Total accumulated other comprehensive income(4,818)(4,867)673－

Net assets

233,635

231,533

Liabilities and net assets

369,348

368,166

Accumulated other comprehensive income

Stock acquisition rights

5(2) Consolidated Profit and Loss Statement and Comprehensive Profit and Loss Statement(Consolidated Profit and Loss Statement)(MM yen)Q1 2016 YTD

Q1 2017 YTD

Net sales

124,522

122,737

Cost of sales

65,81864,223Gross profit

58,70358,513

Selling, general and administrative expenses

59,145

57,131

Operating income

(442)

1,381

18

9

Non-operating income
Interest income
Dividends income

1

1

Share of profit of entities accounted for using equity method

35

15

Rent income

104

105

Gain on sales of valuable wastes

95

122

Other

75

90

330

345

Interest expenses

47

27

Loss on sales and retirement of noncurrent assets

496

245

Other

39

99

Non-operating expenses

583

372

(695)

1,354

Gain on sales of investment securities

74

0

Others－2

Extraordinary income

74

3Lease contract cancellation penalty

334－

Restructuring cost

119－

Loss on retirement of treasury subscription rights to shares－

154

Integration cost－

536

Others31

2

Extraordinary loss

485

693

Income before income taxes(1,105)

664

Income taxes-current

509

170

Income taxes-deferred

(776)

(91)

Income taxes

(267)

78

Net income

(838)

585

Net income attributable to owners of parent

(838)

585

Non-operating income
Non-operating expenses

Ordinary lncome
Extraordinary income

Extraordinary loss

6

(Consolidated Comprehensive Profit and Loss Statement)(MM yen)Q1 2016YTD
Net income

Q1 2017 YTD

(838)

585

Valuation difference on available-for-sale securities

(370)

(174)

Remeasurements of defined benefit plans

(496)

161

(322)

(36)

Other comprehensive income(1,190)(48)

Quarterly comprehensive income(2,028)536

Quarterly comprehensive income attributable to owners of parent(2,028)536

Other comprehensive income

Share of other comprehensive income of associates accounted for using equity
method7

(3) Notes to Consolidated Financial Statements(Notes to assumption of going concern)
Not applicable(Notes in the event of significant changes in amount of shareholders’ equity)
During the first quarter period, both treasury stock and capital surplus decreased JPY1,112 million. This is due to aretirement of all treasury stock of the company as of March 31, 2017 based on the resolution of board of directors
meeting on March 13, 2017.

(Additional information)(Implementation of Implementation Guidance on Recoverability of Deferred Tax Assets)“Implementation Guidance on Recoverability of Deferred Tax Assets” (Implementation Guidance of Corporate
Accounting Standard No.26, March 28, 2016) has been implemented from the beginning of this first quarter period.

8