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 Fiscal Year Ended December 31, 2014
February 13, 2015
Listed Company Name
Security CodeCoca-Cola East Japan Co., Ltd.
2580
Representative Director &title
President
Senior Executive Officer
title
Finance Function

Representative
Contact

Stock ExchangeTokyo Stock Exchange
URL
http://www.ccej.co.jp

Scheduled date of general
March 30, 2015
shareholders meeting
Scheduled date of submission ofMarch 31, 2015
annual securities report
Preparation of supplementary documents for the earnings results
Earnings results presentation/conference

NameCalin Dragan

Name

Asako Aoyama

Schedule date of start ofdividend payment
Yes
Yes

TEL:
03-5575-3859

March 31, 2015

(Amounts of less than one million yen are rounded down)

1．Consolidated Financial Results for the Fiscal Year ended December 31, 2014
(1)
Consolidated Results of Operations(Percentages show year-on-year changes)
Net Sales
Operating Income
Ordinary Income
Net Income
FY 2014
FY 2013

million yen%

million yen%

million yen%

million yen%

523,299372,792

40.4
92.4

9,356
7,581

23.4
123.8

9,606
7,732

24.2
136.1

3,434
11,582--70.3610.2

Note: Comprehensive income: FY2014: 4,716million yen (-60.7%)

Net income per
share(fully diluted)

Net income per
share
FY 2014
FY 2013

Yen

％

％

％

28.36
139.64

1.6
7.6

2.9
3.6

1.8
2.0

FY 2014 : 61million yen,

Net Assets

Equity Ratio

Net assets per share

million Yen%

Yen

342,672
314,490

213,754
216,191

62.3
68.7

1,764.07
1,785.92

FY 2014 : 213,530 million yen, FY 2013 : 216,172 million yen

Consolidated cash flows
Operating activities

FY 2014
FY 2013

FY 2013 : 202million yen

million yen(Reference) Shareholders’ equity:(3)

Operating income
marginROA

YenConsolidated Financial Position
Total Assets
FY2014FY2013ROE

28.37
139.70(Reference) Equity income or loss :(2)

FY2013: 12,013 million yen (569.2%)

Investing activities

Financing activities

Cash and cash equivalents at year-end

million yen

million Yen

million Yen

million Yen

12,45532,264-40,546-310

23,272-24,176

24,971
29,7902．Dividends
Dividend per share
Q1

FY2013
FY2014FY2015(forecast)

Q2

Q3

Q4

Total

Total dividend
payment (annual)

Dividend
payout ratio(consolidated)

Ratio of dividends
to net assets(consolidated)

Yen

Yen

Yen

Yen

yen

million Yen

%

%

－

－

－

18.00
16.00

－

14.00
16.00

32.00
32.00

2,489
3,873

22.9
112.8

1.6
1.8

－

16.00

－

16.00

32.00

47.8

3．The Consolidated Earnings forecasts for the fiscal year commencing January 1 and ending December 31, 2015
(Percentages show year-on-year changes)

Net Sales
Mil yenOperating Income%

Mil yenOrdinary Income%

Mil yen

Net Income Per
Share

Net Income%

Mil yen%Yen

535,700 2.4
15,60066.7
15,70063.4
8,100 135.8
66.92(Note): The above forecast does not include the planned acquisition of Sendai Coca-Cola Bottling, which we expect tocomplete as of April 1, 2015, pending required approvals.
Full-Year(1) Changes of important subsidiaries during the period (Changes of specific subsidiaries accompanied
by changes in the consolidation scope)None(2) Changes in accounting policies and changes or restatement of accounting estimates① Changes in accounting policies accompanied by revisions of accounting standards, etc.
Yes
② Changes in accounting policies other than ①Yes③ Changes in accounting estimatesYes④ Restatement
None
Note[rules for terminology,format and method of consolidated financial statement]14-7(if it is difficult to distinguish Changes inaccounting policies and accounting estimates).for details please refer page 19[４．Consolidated financial statements-(5) （Changes
in accounting policies）](3) Number of Issued Shares (Common Shares)① Number of the issued shares at the end of the
FY 2014
121,898,978 shares FY 2013
121,898,978 sharesperiod (including treasury stock)② Number of the treasury stock at the end of the
FY 2014854,430 shares FY 2013
856,494 sharesperiod③ Average number of the shares during the period
FY 2014
121,047,933 shares FY 2013
82,912,957 shares(accumulated total)
Note: The number of shares for calculating Net Income Per Share (consolidated), please refer page 29 [Per share information].
*Statement regarding the status of auditor review
At the time of disclosure of this financial summary, the audit procedures in accordance with the Financial Instruments andExchange Act are in progress.
*Explanation regarding the appropriate use of earnings forecasts and other special notes
Although the statements in this summary are prepared based on various information available to the Company and certain assumptions
considered reasonable by the Company, actual results may differ significantly due to various factors. For details of assumptions forearnings forecasts and notes on the use of earnings forecasts, please see “Qualitative information on the consolidated earnings forecasts,”
page 2 of the attached material of the summary.

Contents of the Attached Materials
1.

Analysis of operating results and financial position ........................................................................ 2(1) Qualitative information on the full-year 2014 results.................................................................... 2(2) Qualitative information on the consolidated financial positions ................................................... 5(3) Basic policies for profit distribution and dividends for FY2014 and FY2015 ............................... 6(4) Risks of Businesses, etc. ................................................................................................................... 6
2. Status of corporate group ....................................................................................................................... 8
3. Management policies .............................................................................................................................. 9(1) Basic management policies ............................................................................................................... 9(2) Targeting management benchmark ................................................................................................. 9(3) Medium-to-long term management strategies ................................................................................ 9(4) Issues Requiring Action .................................................................................................................... 9(5) Other significant matters for management ..................................................................................... 9
4. Consolidated financial statements .................................................................................................... 10(1) Consolidated balance sheets ........................................................................................................... 10(2) Consolidated profit and loss statement and comprehensive profit statement ........................... 12
Consolidated profit and loss statement ............................................................................................... 12
Consolidated comprehensive profit statement ................................................................................... 13(3) Consolidated Statements of changes in net assets ..................................................................... 14(4) Consolidated cash flow statement ................................................................................................ 16(5) Notes to consolidated financial statements ................................................................................. 18(Notes to assumption of going concern) ............................................................................................... 18(Basis for preparation of consolidated financial statements) ............................................................ 18(Changes in accounting policies) .......................................................................................................... 19(Unapplied accounting standard, etc.) ................................................................................................ 20(Change in presentation) ...................................................................................................................... 21(Additional information) ....................................................................................................................... 22(Consolidated balance sheet)................................................................................................................ 22(Consolidated profit and loss statement) ............................................................................................ 22(Consolidated comprehensive profit statement) ................................................................................. 25(Consolidated statement of changes in net assets)............................................................................. 26(Consolidated cash flow statement) ..................................................................................................... 27(Segment information, etc.) .................................................................................................................. 28(Per share information) ........................................................................................................................ 30(Significant subsequent events) ........................................................................................................... 30
5．Others ( Appointment of Officers (Effective from March 30th, 2015)) ............................................. 31(1) New Director candidate .................................................................................................................. 31(2) Retiring Director ............................................................................................................................. 31(3) New corporate auditor candidate ................................................................................................... 31(4) Retiring Corporate Auditor ............................................................................................................. 31－

1 －1. Analysis of operating results and financial position(1) Qualitative information on the full-year 2014 results(i) Qualitative information on the consolidated operating results

Coca-Cola East Japan Co., Ltd. (CCEJ) today announced its consolidated financial results for the full-year2014 (January 1, 2014 to December 31, 2014)
Key Messages
・ Solid progress in Q4 after a tough summer. Achieved volume growth of 0.4% for the full year
and operating income slightly ahead of revised plan.
・ Five consecutive quarters of volume and value share growth, despite a challenging environment.
・ Delivered strong synergies and cost savings in Q4 to offset earlier production line delays andongoing price-mix pressure.
・ Rapid transformation and integration work continues. All legacy bottler legal entities now
integrated into Coca-Cola East Japan.
・ Announced planned acquisition of Sendai Coca-Cola Bottling Company, with operations inFukushima, Miyagi and Yamagata prefectures.
*For additional details and management discussion of results, please also see the presentation material
posted on our Company website, which will be used for the earnings presentation and webcast on Monday,
February 16, 2015 at 5 p.m. (JST).
The webcast is available both live and on demand at
http://www.investor.ccej.co.jp.
Industry Update
The fourth quarter (October to December, 2014) was characterized by a continued challenging macroeconomic environment following the April 1 consumption tax increase. As a result, total nonalcoholic
ready-to-drink (NARTD) beverage industry volumes were down. In this volatile environment, Coca-Cola
East Japan achieved continued market share growth both in terms of volume share and value share.
Integration Update
CCEJ was formed after the integration of the four Kanto and Tokai region Coca-Cola bottling companies
on July 1, 2013. As part of the company’s mid-term strategic plan, the One+ Roadmap for Growth, we arefocused on transforming our business, with strong focus on people, process and systems capabilities.
There are many visible signs of progress to highlight in the fourth quarter, including the following:・ Completed the legal integration of the four legacy bottlers into CCEJ (as of January 1, 2015)
・ On track with new Route to Market (RTM) program introduction and implementation in all CCEJ
sales centers by June 2015
・ Five new production lines and two in-line PET bottle blowers operational after earlier delays
・ On track with deployment of back office functionality for new Enterprise Resource Planning (ERP)system “CokeOne+”, a foundation for further strategic transformation, to be commissioned in April
2015
・ Plan for integration of “mixed” vending subsidiary companies in April, 2015 approved by Board of
Directors and in progress.
We continue to make progress with the legal integration of multiple subsidiary companies, with 23 of theoriginal 26 legal entities we started with on July 1, 2013 now being integrated. This includes theintegration of four production companies at the beginning of 2014 and seven logistics and equipment
maintenance subsidiaries mid-year, as well as the four legacy bottler legal entities that were integrated asof January 1, 2015. We expect an additional eight legal entities to be integrated in April, 2015 as part of
the “mixed” vending integration referenced above.
Operating Review
Full-year total BAPC (Bottler Actual Physical Cases) sales volume grew 0.4% on a comparable basis, andwe continued to grow both volume and value share in total NARTD beverages, led by colas, teas, waterand coffee. The volume growth by channel was led by the drug & discounter (+8%) and convenience
store channels (+7%). The supermarket channel grew slightly, while volume in the vending (-3%) andeating & drinking (-2%) channels declined, impacted by the poor summer weather and consumers
continuing to adjust to the consumption tax rate hike.
－

2 －Full-year sparkling beverage volume was even. In the hydration category, unsweetened teas grew 8% andwater grew 10%. Sports drinks volume declined 9% due to the poor summer weather as well as cycling
strong volume performance from the prior year. Unsweetened tea growth was led by Ayataka green tea
and the launch of Karada Sukoyakacha W, our new FOSHU (Food for Specific Health Use) tea brand,which contributed 2.2 million cases of volume in 2014. The ilohas water brand continued to perform welland also benefited from the launch of ilohas sparkling variants in plain and lemon flavors. Importantly,
coffee volume continued to improve sequentially, led by the introduction of new products such as the
Georgia European series, with 2% growth in the full-year.
In the fourth quarter, we delivered our fifth consecutive quarter of volume and value share gains bystrengthening sales promotion activities of newly launched products mainly in the convenience store
channel, however total BAPC sales volume declined slightly (0.2%) on a comparable basis. Convenience
store channel volume grew 10%, driven by growth in coffee, unsweetened teas and sparkling water. The
drug & discounter channel grew 8%, led by our strong portfolio of unsweetened tea brands. The
supermarket channel showed recovery in the quarter (+1%) led by unsweetened teas, water and coffee.
Vending (-5%) and eating & drinking (-3%) channel performance was impacted by a continued weaker
macro-economic environment and channel shifts following the April 1 consumption tax hike.
Fourth quarter sparkling beverage volume declined 2%, primarily because of soft performance in thevending channel despite the growth in the convenience store and drug and discounters channels. In thehydration category, unsweetened tea and water volumes grew 6% and 12%, respectively. Sports drink
volume declined 10% in the quarter, while Karada Sukoyakacha W and Ayataka green tea helped tocontinue our strong growth momentum in unsweetened tea. Water volume grew as a result of theintroduction of immediate consumption iLohas Sparkling in plain and lemon flavors. Coffee volume grew
2% in the quarter, driven primarily by the success of new products introduced in the second quarter, withpositive performance across channels, led by vending (+2%), an important sales channel for our coffee
products, drug and discounters (+7%), convenience stores (+4%) and the supermarket (+2%) channel.
Financial Review
Reported* Results
Full-Year 2014 (January to December)
In Million JPY

Net Sales
Operating Income
Net Income

2013
372,792
7,581
11,582

2014
523,299
9,356
3,434

% Change+40.4%+23.4％-70.3%* Reported: CCEJ began operations as an integrated company starting in the third quarter of 2013. As a result, above reported
results in 2013 reflect the consolidated results of CCEJ in the third and fourth quarter and consolidated result of the legacy CocaCola Central Japan (CCCJ) for the first and second quarters. Please see our “Comparable” results below which present results as
if the four Kanto and Tokai area Coca-Cola bottlers were integrated as of January 1, 2013 and after excluding exceptional items
such as charges, gains, etc. which are viewed by management as one-time items impacting only the current period or thecomparable period, but not both.

Comparable* Results
Full-Year 2014 (January to December)
In Million JPY, except volume
Volume (BAPC, in thousand)2013
Comparable

2014
Comparable% Change283,777

284,989+0.4%

Net Sales

533,602523,299-1.9%

Operating Income

10,24010,474+2.3%

Net Income

5,693

5,975

+5.0%

－

3 －

Fourth Quarter 2014 (October to December)
2013
Comparable
In Million JPY, except volume
Volume (BAPC, in thousand)
66,6992014
Comparable% Change

66,576-0.2%

Net Sales

126,006

122,698-2.6%

Operating Income (Loss)(1,006)

3,887

-

(630)

2,619

-

Net Income (Loss)* Comparable: Presentation of results as if the four Kanto and Tokai area Coca-Cola bottlers were integrated as of January 1, 2013 and after excluding
exceptional items such as charges, gains, etc. which are viewed by management as one-time items impacting only the current period or the comparable period,
but not both. These comparability adjustments should be viewed in addition to, and not as an alternative for, the Company's reported results prepared inaccordance with JGAAP.
Note: 2013 volumes have changed slightly as a result of data and system standardization. The impact is not deemed material.

Full-year 2014 reported net sales revenue was JPY 523,299 million (up 40.4%, or JPY 150,506 million
compared to the prior year period), reflecting the integration of the four Kanto and Tokai region Coca-Colabottlers on July 1, 2013. Full-year 2014 comparable net sales revenue declined 1.9%, or 1% after
adjusting for the sale of non-core businesses such as Mikuni Wine. This reflects volume growth of 0.4%,
mainly offset by negative price mix. Fourth quarter comparable volume declined 0.2% and net sales
revenue declined 2.6%, or 1.4% after adjusting for the sale of non-core businesses such as Mikuni Wine,mainly attributable to the volume decline in vending, a channel with relatively higher selling prices.
Full-year reported operating income was JPY 9,356 million (up 23.4%, or JPY 1,775 million compared tothe prior-year period). Full-year comparable operating income was JPY 10,474 million (up 2.3%, or JPY
234 million compared to the prior-year period). This reflects decrease of gross profit impacted bynegative price/mix due to the unseasonable weather in summer and weaker consumer sentiment following
the consumption tax hike, offset by lower selling, general and administrative expenses (SG&A) mainly
driven by a strong focus on operating expense control and lower pension and other personnel-related
expenses. Full-year comparable operating income also reflects a net JPY 5.5 billion benefit indepreciation expense related to a change in accounting policy and estimates related to the depreciation
method for fixed assets and a revision to the estimated useful lives of cold drink sales equipment, effective
January 1, 2014. Fourth quarter comparable operating income was JPY 3,887 million (operating loss of
1.0 billion in the prior year period). This increase reflects improved gross profit at Coca-Cola East Japan
Products (CCEJP) and was primarily a result of the newly installed manufacturing lines ramping up
production after delays earlier in the year, as well as the continued insourcing of production volumes.
This offset the negative impact of ongoing pricing and mix pressure, which the industry has experienced
throughout the year. Total SG&A decreased through a strong focus on OPEX efficiency, including adecrease in personnel-related expenses in the quarter, which was partly offset by a planned increase in
DME (Direct Marketing Expenses, sales promotion-related expenses reported in advertisement & sales
promotion expenses and partly in sales commissions). Fourth quarter comparable operating income also
reflects a JPY 3.6 billion benefit in depreciation as a result of the above change in accounting policy andestimates.
We reported full-year net income of JPY 3,434 million (down 70.3%, JPY 8,148 million compared to theprior year period). This reflects the above-mentioned operating performance in the full-year 2014 period
as well as cycling extraordinary items from the prior year period, including a JPY 13 billion one-time gainfrom negative goodwill and various integration-related expenses. In addition, full-year reported net
income includes restructuring costs, primarily related to our employee voluntary separation program in thefirst quarter, and quality-related extraordinary expenses due to a limited product recall in the third quarter.
(ii)Forecast for next fiscal year (Reported, January 1, 2015 to December 31, 2015)
Unit: Million JPY except EPS
Revenue
Operating Income Ordinary Income Net Income
EPS
Full-Year
535,700
15,60015,7008,100
66.92
2015 Forecast
Full-Year523,299
9,356
9,606
3,434
28.37
2014 Result
Variance (%)
2.4
66.7
63.4
135.8
(Note): The above forecast does not include the planned acquisition of Sendai Coca-Cola Bottling, which－ 4 －we expect to complete as of April 1, 2015, pending required approvals.

We have a strong marketing and innovation calendar planned for 2015 together with our partners at
Coca-Cola Japan (CCJC). This year, we celebrate the 100-year anniversary of the Coca-Cola
contour bottle, a unique and instantly recognizable icon of the Coca-Cola brand. To mark thisanniversary, we have exciting plans to activate various anniversary campaigns throughout the year.
As a first element of this year-long celebration, we launched in January the “Heritage” campaign
focusing on the long and proud history of Coca-Cola. We also plan to launch a number of exciting
new products during the year, starting with Coca-Cola Life and Tsumugi Oolong tea in March. CocaCola Life a reduced-calorie version of Coca-Cola sweetened with a blend of sugar and stevia leaf
extract. In the unsweetened tea category, Tsumugi is a mild-tasting Japanese oolong tea which
uniquely features 100% Japanese-grown tea leaves. In the coffee category, we introduced Georgia
Mitsuboshi (Three Star) Presso in January, and we are continuing the successful Georgia Coffee
campaign, The World is Made Up of Someone’s Work. We are also expanding availability ofaluminum can packaging across much of our coffee portfolio as well as the introduction of our new
lightweight and crushable PEKO RAKU PET bottles for large PET packages.
(2) Qualitative information on the consolidated financial positions(i) The financial positions at the end of this fiscal year are as follows:
Assets at the end of this fiscal year were JPY 342,672 million, an increase of JPY 28,181 million from theend of the previous fiscal year. This is mainly due to an increase in sales equipment as we have been
aggressively increasing the installation of coolers as well as new vending machines in order to drive
profitable immediate consumption packaging sales growth. In addition, machinery, equipment and vehicles
increased as a result of the introduction in 2014 of five new production lines, two new in-line PET bottle
blowers, and new trucks.
Liabilities at the end of this fiscal year were JPY 128,917 million, an increase of JPY 30,618 million fromthe end of previous fiscal year. This is mainly due to an increase in short-term borrowing for our working
capital as well as an increase of noncurrent liabilities as a result of our bond issuance earlier this year.
Net assets at the end of this fiscal year were JPY 213,754 million, a decrease of JPY 2,436 million. Thisis primarily due to a decrease of valuation and translation adjustments by reporting remeasurements ofdefined benefit plans.
(ii) Cash flow position
The consolidated cash flow position and activity as of and for this fiscal year are as follows.
CCEJ began operations as an integrated company starting in the third quarter of 2013. As a result, yearon-year comparison descriptions of the cash flow are compared against the consolidated results of CCEJ
in the third and fourth quarter and consolidated results of the legacy bottler CCCJ for the first and second
quarters.
During this consolidated accounting period, Cash and Cash Equivalents are JPY 24,971 million, adecrease of JPY 4,818 million compared with the end of last fiscal year. Cash flow by activities in thisconsolidated accounting period is as follows.
(Cash Flow from Operating Activities)
Cash generated from operating activities was JPY 12,455 million (the cash generated decreased JPY
19,808 million year-on-year). This results mainly from income before tax of JPY 6,545 million, depreciation
and amortization, amortization of long-term prepaid expenses, etc. against income tax paid, etc.
(Cash Flow from Investing Activities)
Cash used for investing activities was JPY 40,546 million (cash out increasing JPY 40,235 million yearon-year). The outflow includes expenditure for new fixed assets such as machinery and equipment forplants and cold drink equipment as well as expenditure for intangible assets, etc. The inflow reflects－

5 －proceeds from sales of property, plant and equipment and proceeds from sales and cash-in of investment
securities, etc.
(Cash Flow from Financing Activities)
Cash generated from financing activities was JPY 23,272 million (increasing JPY 47,448 million year-onyear). The inflow is attributable to net increase of short-term loans and straight bond issuance. The outflow
includes payment of the dividends, etc.
Transition of Ratios for cash flow of CCEJ is as follows.
2010
2011
2012
2013
2014
Capital-to-asset ratio (%)
78.3
76.0
77.5
68.7
62.3
Capital-to-asset ratio based on
42.9
37.8
41.9
84.1
65.4
market price (%)
Cash flow / interest bearing
240.9
－
－
－
－
liability ratio (%)
Interest coverage ratio (times)
724.3
809.4
687.5
134.6
32.4
Equity Ratio: Shareholder’s equity / Total Assets
Capital-to-asset ratio based on market price: Market cap / Total Asset
Cash flow / interest bearing liability ratio: Interest bearing liability / Operating Cash Flow
Interest Coverage Ratio: Operating Cash Flow / interest paid
(Note 1) All numbers are based on consolidated basis.
(Note 2) Market cap is calculated by “Closing share price at the end of the year × Number of shares issued(after deduction of treasury stock)”.
(Note 3) Operating cash flow and interest paid come from operating cash flow and interest paid in consolidated
cash flow statement which includes interest for lease liabilities.
(Note 4) Interest bearing liability consists of all the liabilities which are listed in consolidated balance sheet andrequire interest payment.

(3) Basic policies for profit distribution and dividends for FY2014 and FY2015
The Company regards a dividend policy as one of the key managerial issues and declares semi-annual
dividends under the basic policies to continue with business investment and place the top priority on
healthy and stable payment of dividends to secure sustainable development and high profitability of theCompany in the future
Regarding the dividend of the retained earnings, year-end dividend is determined by the resolution of
the Annual Shareholders Meeting and and interim dividend is determined by the Board of Directors
Meeting, respectively, and we would like to propose 16 yen per share for the year-end dividend for FY2014
and it will be 32 yen per share for annual dividend for FY2014 together with 16 yen of the interim dividend
paid in September 2014.
Also, we would like to secure internal reserve for development of our future businesses and costs ofcapital expenditure, etc.
For the annual dividend in the following period, we plan to pay a total annual dividend of 32 yen per
share comprised of an interim dividend of 16 yen per share and a year-end dividend of 16 yen per sharein accordance with the above-mentioned policy.

(4) Risks of Businesses, etc.
Of the matters related to operating results and financial positions declared in the summary of financial
statements, matters which could have a significant impact on investors’ judgment are as follows.
The below stipulation referring to the future matters are determined by the Group at the end of FY2014.
i.
Agreements with The Coca-Cola Company and Coca-Cola (Japan) Company Limited.
The Company conducts businesses under the Bottler’s Agreement executed by and between the
Company, The Coca-Cola Company and Coca-Cola (Japan) Company Limited and the Delegation
Authorization Agreement executed by and between the Company, The Coca-Cola Company, CocaCola (Japan) Company Limited and Coca-Cola East Japan Products. Please refer to “(5) Othersignificant matters for management, 3. Management Policies” for more details of the above
agreements.
ii.
Market competition- Market competition

－

6 －

iii.

iv.

v.

vi.

vii.

The beverage market has a fierce competition over shares among soft drink manufactures in ourbusiness area whereas it cannot foresee a big market growth. The Company’s sales
performance may be influenced by an increase of promotion costs, etc. due to the pressure on
retail prices at supermarkets, etc.
- Climate factors
Soft drink sales are susceptible to the climate, etc. due to the product characteristics. In
particular, bad weather during the peak season may influence the Group’s sales results.
Risks due to natural disasters, etc.
The Group has established and prepared the systems and measures to minimize impacts of blackout,
etc. on its business activities. On the other hand, we have no guarantee to prevent natural disasters
such as typhoon and earthquake. In case of occurrence of such disasters, the Group’s operating
results and financial position may be affected.
Quality control
Our products are soft drinks. The Group has been promoting quality control and freshness
management systems so as to provide safe and good-tasting products to our customers. If, by any
possibility, an accident relating to the quality occurrs, our brand image may be damaged regardlesswhether the accident results from the Group or not. Therefore, in the event of such accident, theGroup’s sales performance may be affected.
Influences due to economic climate
The net sales of soft drinks of our products are closely related to trends of population and personal
spending of our business areas; Tokyo and 12 prefectures in Kanto, Koshin-etsu and Chubu region.
Based on the current economic circumstances in Japan, we do not expect a rapid upward shift of
population and personal spending in the said areas whereas a rapid downward shift for the said items
may give negative impacts on the Group’s operating performance.
-Risks of market fluctuation for pension assets
The Group has a defined benefit pension plan. In cases when operation of pension assets which areconsisted of securities grow worse, retirement benefit expenses may increase, thus it may influence
the Group’s financial performance.
Specific legal regulation
The Group conducts soft drink manufacture and sales business and the ancillary businesses such as
maintenance and repair service of sales equipment and delivery service of products and there arevarious regulations such as “Food Sanitation Act,” “Product Liability Act,” “Road Traffic Act” and “Antimonopoly Act.” The Group strives to conform to all the laws and regulations and provide safe
products. If such laws and regulations were reinforced (revised), new expenses incurred for thecompliance may influence the Group’s operating results.
Environment-related
The Group proactively strives to conserve the earth’s environment and prevent environment pollution
and conform to the related laws by effectively utilizing the following two management systems,“ISO14001” and “KORE.” All the warehouses have obtained “ISO14001” and the Coca-Cola System
has originally developed and introduced “KORE.” If, by any possibility, the Group’s credibility isdamaged by environmental pollution, etc. it may influence the Group’s sales performance and financial
position.

－

7 －2. Status of corporate group
The Group consists of the Company, 11 consolidated subsidiaries, four non-consolidated subsidiaries, and threeequity method affiliated companies.The key companies and the organizational diagram of the Company asfollows.
(1) Sales of soft drinks, etc.
Coca-Cola Central Japan Co., Ltd., Mikuni Coca-Cola Bottling Co., Ltd., Tokyo Coca-Cola Bottling Co., Ltd.,
Tone Coca-Cola Bottling Co., Ltd., and 5 other companies are engaged in the said business.
As of January 1, 2015, Coca-Cola Central Japan Co., Ltd., Mikuni Coca-Cola Bottling Co., Ltd., Tokyo CocaCola Bottling Co., Ltd., Tone Coca-Cola Bottling Co., Ltd. were integrated into the Company.
As of April 1, 2015, FV-Central Co., Ltd., Mikuni Foods Co., Ltd. (hereinafter referred to as “MFD”), Urban
Vend-X Network Co., Ltd., WEX Tokyo Co., Ltd., Fresh Vendor Service Co., Ltd., EX- Service Co., Ltd., TX
Campus Co., Ltd. Co., Ltd. Co., Ltd. and Nitto Pacific Vending Co., Ltd., will be merged into MFD, with MFD
being surviving entitiy.
(2) Manufacture, logisitics and distribution of soft drinks, etc. and maintenance and repair service of sales
equipment
Coca-Cola East Japan Products Co., Ltd., is engaged with the said businesses.

The below diagram illustrates the structure of the Group.
*1*1
FV Corporation Co., Ltd.

TX Campus Co., Ltd.

Sale of Beverages, etc.
FV Central Co., Ltd.

Mikuni Foods Co., Ltd.

EX‐Service Co., Ltd.

WEX (TOKYO) Co., Ltd.
Beverages

Nitto Pacific Vending Co., Ltd. *1
Fresh Vendor Service Co., Ltd. *1,2

Distrbution, Production
And Maintain and Repair

Distrbution

Distrbution and Production of Beverages, etc.

Production

Maintain and Repair sales equipment, etc.
Coca-Cola East Japan Products Co., Ltd.

Maintain and Repair

Beverages
Maintainand Repair

General Consumers (Custmers)

Coca-Cola East Japan Co., Ltd.

Urban Vend-X Network Co., Ltd.

Other BusinessInsuarance

Mikuni Service Co., Ltd.
Beverages*2*2

Coca-Cola Business Service Co., Ltd.

Coca-Cola Customer Marketing Co., Ltd.

*1:Non-consolidated subsidiaries*2:Equity method non-consolidated subsidiaries and affiliated companies:－

8 －3. Management policies(1) Basic management policies
Based on our mission, “Create a new world of beverages,” the Group will achieve further development tocontribute to all stakeholders through sustainable growth, being: “# One in the Beverage Industry,” “The Only
One for the Community,” and “The Best One as a Workplace,” while placing our first and top priority on deliveryof safe products and services to our customers.

(2) Targeting management benchmark
As the management benchmark for FY2015, the Group is targeting to deliver 2.9% of comparable operating
income margin.

(3) Medium-to-long term management strategies
Following the business integration of the four legacy Tokyo-area bottlers, we will further improve theefficiencies in the business processes by bringing together the best practices of sales activities which havebeen cultivated in each company, enhance the best market execution abilities and cost competitive edge in
the industry through optimization of business processes in all the business areas and supply chain and aim
for a sustainable growth by acquiring new business chances.

(4) Issues Requiring Action
The beverage industry in Japan has been challenged by price competition, introduction of private brandproducts by customers and brewed coffee at convenience stores, etc. However, we will seek further growth
opportunities by occasion, brand, package, price, channel and geographic area, and categories as well as
progressing various integration initiatives.
In addition, we expect to seek further synergies and acceralate growth through the planned acquisition of Sendai
Coca-Cola Bottling Co., announced in December 2014, and strive to become a world-class Coca-Cola Bottler.

(5) Other significant matters for management
The Company has executed the Agreement with The Coca-Cola Company and Coca-Cola (Japan) Company
Ltd. to manufacture and sell Coca-Cola products and use the trademarks in 13 Prefectures in Kanto, Koshinetsu,
and Chubu regions, and based on this Agreement, the Company has concluded the Delegation Authorization
Agreement with The Coca-Cola Company, Coca-Cola (Japan) Company Ltd. and Coca-Cola East Japan
Products Co., Ltd. to outsource the manufacturing business to Coca-Cola East Japan Products Co., Ltd.

－

9 －

4. Consolidated financial statements(1) Consolidated balance sheets(MM yen)
FY2014FY2013
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Short-term investment securities
Merchandise and finished goods
Raw materials and supplies
Deferred tax assets
Short-term loan to associated firms
Accounts receivable
Other
Allowance for doubtful accounts
Current asset
Noncurrent assets
Property, plant and equipment
Buildings and structures, net
Accumulated depreciation
Buildings and structures, net
Machinery Equipment And Vehicles
Accumulated depreciation
Machinery, equipment and vehicles,
net
Sale equipment, net
Accumulated depreciation
Sales equipment,net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Lease assets
Accumulated depreciation
Lease assets, net
Construction in progress
Property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Stocks of subsidiaries and affiliates
Long-term loans receivable
Prepaid pension cost
Deferred tax assets
Other
Allowance for doubtful accounts
Investments and other assets
Noncurrent assets
Assets－10 －29,90135,934
1,505
31,261
1,931
2,678
960
10,8075,715-51
120,645

24,982
36,611
1,204
31,433
2,750
2,928
2,958
11,084
14,112-98
127,969

104,367-66,676
37,691
41,650-32,958
8,692

106,956-68,831
38,12458,312-28,693
29,618

188,342-149,784
38,558
7,120-5,7681,351
46,75920,511-7,59812,912
12,733
158,699
3,616

188,665-140,219
48,445
7,006-5,802
1,204
45,642
19,020-9,042
9,978
6,428
179,442
5,488

10,645
385
3,050
2,119
5,664
9,922
-260
31,528
193,844
314,490

9,762
1,128
2,262
7,108
9,702
-193
29,772214,703342,672(MM yen)
FY2014FY2013Liabilities
Current liabilities
Accounts payable-trade
Short-term loans payable
Lease obligations
accounts payable-other and accrued
expenses
Income taxes payableaccrued consumption taxes
Provision for bonuses
Provision for directors' bonuses
Other
Current liabilities
Noncurrent liabilities
Bonds
Lease obligations
Deferred tax liabilities
Provision for retirement benefits
Provision for directors' retirement benefits
Provision for environmental measures
Provision for loss on contract
Net defined benefit liability
Other
Noncurrent liabilities
Liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Shareholders' equity
Valuation and translation adjustments
Valuation difference on available-for-salesecurities
Deferred gains or losses on heages
Remeasurements of defined benefit plans
Total valuation and translation adjustments
Subscription rights to shares
Net assets
Liabilities and net assets

－

11 －

21,5103,090
28,896

22,94416,0002,904
30,003

1,585
1,171
1,264
131
3,639
61,289

2,425
1,700
1,945
37
3,829
81,791－
10,053
2,678
17,579
367
359
3,173
－
2,796
37,00998,29914,000
7,283
1,784
2
478
2,187
18,6892,700
47,126
128,917

6,499
143,136
67,034-1,164
215,507

6,499
143,134
66,837-1,170215,301

867

1,644

-201
－
665
19
216,191
314,490302-3,717-1,770223
213,754342,672

(2) Consolidated profit and loss statement and comprehensive profit statement
Consolidated profit and loss statement(MM yen)
FY2014FY2013

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Equity in earnings of affiliates
Rent income
Gain on sales of valuable wastes
Gain on collection of deposits of bottles
Other
Non-operating income
Non-operating expenses
Interest expenses
Loss on sales(retirement) of noncurrent assets
Rent expenses
Other
Non-operating expenses
Ordinary income
Extraordinary income
Gain from negative goodwill or Gains fromacquisitions
Gain on sales of subsidiaries stocks
Insurance income
Gain on sales of noncurrent assets
Other
Extraordinary income
Extraordinary loss
Impairment and losses on disposal on fixed
assetsImpairment loss
Losses from realignment activities
Expenses relating to quality
Defective work cost
Integration Lost
Loss from consolidation of previousiy
unconsolidated entity
Loss on valuation of investment securities
Extraordinary loss
Income before income taxes
Income taxes – current
Income taxes - deferred
Income taxes
Income before minority interests
Net income

－

12 －

372,792
207,719
165,073523,299
283,963
239,336

157,491
7,581

229,979
9,356

93
52
202
297
228
285
230
1,390

131
167
61
372
354
4
148
1,240

236
880
70
52
1,239
7,732

383
370
95
141
990
9,606

12,969－－－4
612,980

69
137
595
17
819

605

435

1,171
4,665
－
－
1,961
821

69
1,922
643
562
－
－

28
9,252
11,4601,973-2,095-122
11,582
11,582

247
3,880
6,545
3,963
-852
3,110
3,434
3,434

Consolidated comprehensive profit statement(MM yen)
FY2014FY2013

Income before minority interests
Other comprehensive income
Unrealized gain (loss) on available for sales
securities
Deferred hedging loss
Share of other comprehensive income ofassociated for using equity method
Other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to ownersof the parent company
Comprehensive income attributable to minority
interests－

13 －11,582

3,434

633

777

-2
-199

2
502

431
12,013

1,281
4,716

12,013

4,716

－

－

(3) Consolidated Statements of changes in net assets（from January 1st, 2013

to December 31st, 2013）(MM yen)Shareholders' equity

Balance as of December 31st
2012
Changes of items during theperiodIncrease by shareexchanges

Capital surplus

Capital surplus

Capital surplus

Capital surplus

Capital surplus

6,499

24,80557,041-1,16387,183

118,342

118,342Dividends from surplus-1,588-1,588Net income

11,582

11,582

Purchase of treasury stock
Disposal of treasury stock
Net changes of items otherthan shareholders' equity
Total changes of items during
the period
Balance as of December 31st
2013

-11

6,499

-56

-56

55

44

118,3309,993-0128,324

143,136

67,034-1,164

215,507

Valuation and translation adjustments
Valuationdifference
onavailable-forsale securities
Balance as of December 31st 2012

Unlialized loss/gainfrom hedging
activities

Total valuation andtranslation
adjustments

Subscription
rights to shares

Net assets

－

233

44

87,461

233

Changes of items during the period
Increase by shareexchanges

118,342Dividends from surplus-1,588Net income

11,582

Purchase of treasury stock-56

Disposal of treasury stock44

Net changes of items other thanshareholders' equity
Total changes of items during theperiodBalance as of December 31st 2013

633

-201

431

-24

406

633

-201

431

-24

128,730

867

-201

665

19

216,191－

14 －（from January 1st, 2014

to December 31st, 2014）(MM yen)Shareholders' equity

Balance as of December 31st2013
Changes of items during theperiodCapital surplus

Capital surplus

Capital surplus

Capital surplus

Capital surplus

6,499

143,136

67,034-1,164

215,507

Dividends from surplus-3,631-3,631

Net income

3,434

3,434

Purchase of treasury stock
Disposal of treasury stock

-2

-22

-22

15

13

Net changes of items otherthan shareholders' equity
Total changes of items during
the period
Balance as of December 31st
2014

6,499

-2

-196

-6

-205

143,134

66,837-1,170215,301

Valuation and translation adjustments

Balance as of December 31st 2013

Valuationdifference
onavailable-forsale securities

Unlialized
loss/gain fromhedging activities

Remeasurements ofdefinedbenefit plans

Total valuationand translation
adjustments

Subscription
rights to shares

Net assets

867

-201

－

665

19

216,191

Changes of items during the period
000000
Dividends from surplus-3,631

Net income

3,434

Purchase of treasury stock-22

Disposal of treasury stock13

Net changes of items other thanshareholders' equity
Total changes of items during theperiodBalance as of December 31st 2014

777

504

-3,717-2,435204-2,230777

504-3,717-2,435204-2,436

1,644

302-3,717-1,770223

213,754－15 －(4) Consolidated cash flow statement(MM yen)
FY2013

FY2013

Net cash provided by operating activities
Income before income taxes.
Depreciation and amortization
Amortization of long-term prepaid expenses
Increase (Decrease) in allowance for doubtful accounts
Increase (Decrease) in provision for retirement benefits
Increase (Decrease) in net defined benefit liability
Decrease(Increase) in prepaid penshion costs
Increase (Decrease) in provision for directors’ bonuses
Increase (Decrease) in provision for directors’ retirement
benefirts
Interest and dividend income
Interest expenses
Equity in losses (gains) of affiliates
Special retirement expenses
Loss (Gain) on sales of noncurrent assets
Loss on retirement of noncurrent assets
Loss on imparement of fixed assets
Decrease (increase) in notes and accounts receivabletrade
Decrease (increase) in inventories
Decrease (increase) in long term prepaid expeses
Increase (decrease) in notes and accounts payable-trade
Increase/decrease in other assets/liabilities
Gain on negative goodwill
Loss (Gain) on step acquisitions
Other
SubtotalInterest and dividends income received
Interest expenses paid
Special retirement expenses paid
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Proceeds from sales and redemption of short term andlong term investment securities
Purchase of investment securities
Proceeds from phrchase of investments in subsidiaries
resulting in change in scope of consolidation
Proceeds from sales of Investments In Subsidiaries
resulting In change In scope of consolidation
Net decrease (increase) in short-term loans receivable
Payments of loans receivableCollection of loans receivable
Other
Net cash provided by (used in) investing activities

－

16 －

11,46017,292
5,855
-22
-429
－
217
9
-726

6,545
23,925
9,839
-18
－
1,109

-146
236
-210
419
-7
1,482
1,171
4,110

-298
383
-61
1,484
-550
754
69
-1,608

11,642-6,378-6,430
7,675-12,969821-894
34,178152-239-7-1,85031
32,264-1,804-10,766
1,725-7,694－－
222
24,924315-384-1,739-11,343
683
12,455-27,184716-511－-42,331
2,895-3,5582,419-26
31,412

-434
－

－

765

-5,047
-335
663
2
-310

-1,855-1,156
2,609
101-40,546

2,119
-89
-364

(MM yen)
FY2013

Net cash provided by (used in) financing activities
Net incrase (decrease) in short-term loans
payableRepayament of long-term loans payable
Proceeds From Issuance Of Bonds
Proceeds from sales of treasury stock
Purchase of treasury stock
Repayments of lease obligations
Cash dividends paid
Proceeds from exercise of stock option
Net cash provided by (used in) financing
activities
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents
Cash and cash equivalents

－

17 －

FY2013-17,030

16,000-3,2504-40-2,270-1,5880-24,176－
14,0002-22-3,071-3,635
023,272

7,777-4,81822,012
29,79029,79024,971

(5) Notes to consolidated financial statements(Notes to assumption of going concern)
Not applicable(Basis for preparation of consolidated financial statements)
１

Scope of consolidation:
All the subsidiaries are included in the consolidation scope.

(1) Number of consolidated subsidiaries: 11
The listing of major consolidated subsidiaries are omitted since it is provided in “2. Status of corporategroup.”(2) Major nonconsolidated subsidiaries:
FV Corporation Co., Ltd.
The size of each of the 4 nonconsolidated subsidiaries are small, and each company’s total assets,
sales, current net income (amount corresponding to equity) and retained earings (amount corresponding
to equity) are small in size and do not have a material effect on the consolidated financial statements.

２

Application of equity method(1) Number of the affiliated companies with equity method applied:3

Coca-Cola Business Service Co., Ltd., Coca-Cola Customer Marketing Company Co., Ltd., and Fresh
Vender Service Co., Ltd.
(2) Non-Consolidated Subsidiaries and Affiliated Companies excluded from the equity method

３

FV Corporation Co., Ltd.
Reason for exclusion from the equity method: The above three non-consolidated subsidiaries
are excluded from the equity method as the impact on the consolidated financial statements isminor and there is little significance in totality taking into account various factors such as thecurrent net income or loss (amount corresponding to the equity interest) and retained earnings(amount corresponding to the equity interest).
Fiscal year of consolidated subsidiaries, etc.

The end of fiscal year of consolidated subsidiaries is same as that of the consolidated
account closing date.
４

Accounting standards(1) Valuation standards and methods for significant assets
1) Securities:
Other securities
Securities with available fair market values:…Market value method based on the market value, etc. as at the account closing date(Valuation differences are to be reported as a component of shareholders’ equity andthe cost of products sold is to be calculated by using the moving average method.)
Securities without market value:…Cost method based on the moving average method
2) Inventory assets:
Mainly by gross average method or cost method based on the moving average method(Balance sheet amount are calculated by the inventory write-down method to reflect the
decline of profitability)(2) Depreciation method used for significant depreciable assets
1) Tangible fixed assets: (Excluding the lease assets)
Straight-line method
Durable years of the major items are as follows.
Buildings:
3-50 years
Machinery, equipment & vehicles:
4-17 years
Sales equipment:
4- 9 years
2) Intangible fixed assets: (Excluding the lease assets)
Straight-line method
Straight-line method based on the Company’s available years (5years) is applied forsoftware.
3) Lease assets:
The lease period is the durable years for the lease assets and the residual value iszero, calculated by the straight-line method.
－

18 －4) Long-term prepaid expenses: Fully depreciated within the period(3) Basis for recording significant allowance1) Allowance for doubtful accounts: In order to prepare for bad debts loss of receivables
such as accounts receivable-trade, we have reviewed general accounts receivables
and specific receivables such as doubtful accounts receivables based on the loan loss
ratio and individual collectability, respectively, and recorded the unrecoverable amounts.
2) Allowance for bonuses: In order to prepare for the payment of bonuses for employees,
we have recorded an estimated amount at as of the end of the consolidated FY 2014.
3) Allowance for officers’ bonuses: In order to prepare for the payment of bonuses forofficers, we have recorded an estimated amount at as of the end of the consolidated FY
2014.
4) Allowance for retirement benefits for officers: In order to prepare for the payment of
retirement benefits for the Officers, we have posted an estimated amount at as of the endof the consolidated FY 2014 in accordance with Bylaw concerning Retirement Benefits
for Officers.
5) Allowance for environmental measures: In order to prepare for disposing polychlorinatedbiphenyl waste kept in storage, we have posted an estimated incurred amount at as ofthe end of the consolidated FY 2014.
6) Allowance for losses on contracts: In preparation for payment of system usage fees
after cancellation under the contracts, the estimated amount is recorded. Allowance forenvironmental measures:(4) Accounting treatment for retirement benefits
1) Cut off for expected retirement benefit payments
When calculating retirement benefit liabilities, straight-line attribution is used as the methodof attributing the expected retirement benefit payments for the period up to the end of thecurrent fiscal year.
2) Treatment of actuarial differences, past service costs and transition obligations
Actuarial differences are allocated by the straight-line method using a certain number ofyears within the employees’ average remaining service years when the difference occurs(mainly 13 years), and the amount is treated as an expense from the following
consolidated fiscal year.
Past service liabilities are allocated by the straight-line method using a certain number ofyears within the employees’ average remaining years of service when the liability occurred(mainly 13 years), and the amount is treated as an expense. Scope of the Cash declaredin the consolidated cash flow statement(5) Scope of the Cash declared in the consolidated cash flow statement
For The Cash (cash and cash equivalents), we have posted cash on-hand, demand
deposits
and short-term investments which are highly liquid (to be matured within 3 months from theacquisition),easily convertible and bear little risk in price fluctuation in the consolidated cash
flow statement.
(6) Other significant matters for preparation of the consolidated financial statements
Accounting treatment for consumption tax, etc.
Before-tax method is applied.
(Changes in accounting policies)

1．Application of accounting standards regarding retirement benefits
The “Accounting Standard for Retirement Benefits” (ASBJ Statement No. 26, issued on May 17,
2012, hereinafter referred to as “Retirement Benefit Accounting Standard”) and “Guidance on
Application of Accounting Standard for Retirement Benefits” (ASBJ Guidance No. 25, issued on May
17, 2012, hereinafter referred to as “Retirement Benefit Guidance”) have been applied from the endof the current consolidated fiscal year (excluding the provisions in the main text of paragraph 35 in
the Retirement Benefit Accounting Standard and the main text of paragraph 67 of the Retirement
Benefit Guidance), and the accounting method has been changed to recording the amount obtainedby deducting the pension assets from the retirement benefit liabilities as the liability for retirement
benefits. In addition, the unrecognized actuarial difference and unrecognized past service cost havebeen recorded in the liability for retirement benefits.
Concerning the application of the Retirement Benefits Accounting Standard, we are acting in－19 －accordance with the transitional handling defined in paragraph 37 of the Retirement Benefit
Accounting Standard, and as of the end of the current consolidated fiscal year, the impact resulting
from this change has been included in the cumulative adjustment amount for the retirement benefits
in other accumulated income.
As a result, for the liabilities for retirement benefits at the end of the current term,18,689 million
yen has been recorded as the liability for retirement benefits, and the other accumulated income
amount decreased by 3,717 million yen.
Hence, the net assets per share decreased by 30.71 yen.
2. Changes in accounting policies that are difficult to distinguish from changes in accounting estimatesand changes in accounting estimates
Changes to the depreciation method, service life and residual value of tangible fixed assets
Previously, the old declining balance method was primarily used as the depreciation method fortangible fixed assets, but the method was changed to the straight-line method from the current
consolidated fiscal year.
Following the merger on July 1, 2013, in the initial 2014 annual business plan, through theintroduction from 2014 of a new strategy and policy for sales equipment that aimed at optimally using
sales equipment beyond the borders of each bottler, the sales equipment is expected to make alarger contribution to achieving stable profits over the long-term. Also, a new supply chain strategy
for manufacturing equipment was implemented from 2014, large investments were made in
manufacturing equipment and the merger of manufacturing subsidiaries, optimum production
systems that improve production capacity and extend beyond the territories of each individual bottler
were established, and it became possible to operate manufacturing equipment efficiently and stably
over the long-term. As a result, it was determined that allocating expenses through the straight-line
method is the depreciation method that more appropriately reflects the actual situation, and thus, themethod was changed to the straight-line method.
Also, the service life of the main sales equipment has traditionally been set as 5-6 years for the
purpose of depreciation, but following the change to the depreciation method, as a result ofreconsidering the expected length of time sales equipment will be used, the service life has beenrevised to 9 years from the current consolidated fiscal year, and this service length will continued tobe applied going forward.
In addition, following the change to the depreciation method for tangible fixed assets, as a result ofconsidering the price when disposing tangible fixed assets after the service life has expired, because
the income earned from the sale in consideration of the ancillary expenses for disposal is minimal,
the residual value of tangible fixed assets has been changed to the remainder price of 1 yen from thecurrent fiscal year.
Based on above, compared with the previous method, for this fiscal year operating income increased
5,573 million yen, ordinary income increased 6,183 million yen, and income before income tax
increased 6,279 million yen.
(Unapplied accounting standard, etc.)
1. Accounting Standard for Retirement Benefit“Accounting Standard for Retirement Benefit” (ASBJ Statement No. 26, issued on May 17th, 2012)“Guidance on Accounting Standard for Retirement Benefit” (ASBJ Guidance No. 25, issued on May
17th, 2012)(1)Overview
Based on viewpoints to improve the financial reporting and international movement, the said
standard and guidance were revised mainly for improving the method to treat unrecognizedactuarial differences and past service liabilities and to calculate retirement benefit liabilities andservice cost and the disclosure.
(2)Schedule date for the application
The Group will apply the revised retirement benefit liabilities and service cost from the
beginning of the consolidated fiscal year starting after January 1st, 2015.
(3)Impacts of the application of the said accounting standard
The impacts on the consolidated financial statements are under evaluation at the time of－

20 －preparing the consolidated financial statements.
2. Accounting Standards for Business Combinations
・“Accounting Standards for Business Combinations” (ASBJ Statement No. 21, issued on September
13, 2013)
・”Accounting Standards regarding Consolidated Financial Statements” (ASBJ Statement No. 22, issued
on September 13, 2013)
・“Accounting Standards for Business Divestitures” (ASBJ Statement No.7, issued on September 13,
2013)
・”Accounting Standards for Net Income Per Share” (ASBJ Statement No. 2, issued on September 13,
2013)・ ”Guidance on Application of Accounting Standards for Business Combinations and AccountingStandards for Business Divestitures” (ASBJ Guidance No. 10, issued on September 13, 2013)
・”Guidance on Application of Accounting Standards for Net Income Per Share ” (ASBJ Guidance No.
4, issued on September 13, 2013)(1) Overview
Revisions of these accounting standards mainly apply to (i) the accounting treatment of any
changes in a parent’s ownership interest in a subsidiary when the parent retains control overthe subsidiary, (ii) the accounting for acquisition-related costs, (iii) the presentation of net
income and the change of name from “minority interests” to “non-controlling interests”, and (iv)the transitional treatments for these accounting standards.
(2) Scheduled date for the application
The revised accounting standards and guidance are scheduled to take effect from the
beginning of the fiscal year starting on January 1, 2016. The transitional treatment will beapplied to business combinations executed at or after the beginning of the year starting on
January 1, 2016.
(3) Impacts of the application of the said accounting standards
The impacts on the consolidated financial statements are under evaluation at the time of
preparing the consolidated financial statements.
(Change in presentation)(Consolidated cash flow statement)
In accordance with the growing importance since the previous fiscal year; “Special retirement
expenses” included in “Others” above the Subtotal for “Net cash provided by operating activities”;“Special retirement expenses paid” included in “Others” below the Subtotal; “Decrease (increase) inlong term prepaid expenses” included in “Increase/decrease in other assets/liabilities”; and “Income
taxes refunded” included in “Income taxes paid”; are stated independently from this fiscal year.
Consequently, -475 MM yen included in “Others” above the Subtotal for “Net cash provided byoperating activities” was reclassified to 419 MM yen of “Special retirement expenses” and -894 MM
yen of “Others”; -7 MM yen included in “Others” below the Subtotal was reclassified to -7 MM yen of“Special retirement expenses paid”; 1,297 MM yen included in “Increase/decrease in otherassets/liabilities” was reclassified to -6,378 MM yen of “Decrease (increase) in long term prepaid
expenses” and 7,675 MM yen of “Increase/decrease in other assets/liabilities”; and -1,819 MM yen
included in “Income taxes paid” was reclassified to -1,850 MM yen of “Income taxes paid” and 31
MM yen of “Income taxes refunded”;

－

21 －

(Additional information)

Concerning the share exchange agreement for simple share exchange with Sendai Coca-Cola
Bottling Co., Ltd.
Coca-Cola East Japan Co., Ltd. (“CCEJ”) was pleased to announce at their board meeting on
December 16th, 2014, that we resolved to conduct a share exchange to make CCEJ the parent
company and Sendai Co. its wholly-owned subsidiary (the “Share Exchange”) and on the same
day both companies executed a share exchange agreement (the “Share Exchange Agreement”).
When the the share exchange is executed, CCEJ will issue 5,781,166 common shares.The shareexchange, based on company law 796-No3, is expected to be conducted as of April 1st 2015.
(Consolidated balance sheet)
Acumulated imparement loss is included in Accumulated depreciation of tangible assets.
(Consolidated profit and loss statement)*1 Year-end inventory represents the amount after write-down due to a decreased profitability andthe next inventory appraisal loss is included in the cost of goods sold.
FY2013

FY201452 MM yen

244MM yen

*2 Major items and amounts of selling and general administration expenses are as follows.
FY2013

FY2014

Sales commission
Advertisement and promotion cost

31,065MM yen
16,46845,011MM yen
25,217

Transportation cost
Salaries/allowance and bonuses

33,831
30,693

51,772
46,791Retirement benefit cost
Provision of allowance for bonus

2,284
1,264

1,868
1,945

35

2

100

37

60

44

14,43016,740

Provision of allowance for retirement
benefits for Officers
Provision of allowance for bonuses
for Officers
Provision of allowance for doubtful
accounts
Depreciation cost

*3

Breakdown of loss on sales of noncurrent assets are as follows.
FY2013

FY2014

Machinery Equipment And Vehicles

0MMyenSale equipment

879

370

880 MM

Total*4

0MM yen370MM yen

yen

Breakdown of gain on disposal of fixed assets are as follows.
FY2013

FY2014

Buildings and structures-MMyenMachinery Equipment And
Vehicles

4

43

Land
Lease assets

0

546
-

4MMyen595MM yen

Total

－

22 －

6MMyen*5

Breakdown of loss on sales of noncurrent assets are as follows.
FY2013

FY2014

Buildings and structures

259MM yen

188MM yen

Machinery Equipment And Vehicles
Tools, furniture and fixtures

322
11

Lease assets
Intangible assets

1
10

236
5
－

Total

5

605

435

－

23 －

*6

Breakdown of Restructuring cost is as follows.
FY2013

FY2014

Expenses related to transition of
mission-critical systems－ MMyen3,984MM yen

Expenses for the relocation ofhead office nad branch offices, etc
Special retirement expenses
Special retirement expenses for

261

253

419

1,484

－

183

Directors
Total

4,665 MM yen

1,922 MM yen

Expenses related to transition of mission-critical systems (2013) include Allowance for losses on contracts
3,393MMyen*7

Expenses relating to quality ,It is recorded for self-imposed product recall, breakdown is abandonment loss 515 MM yen , costof recovery 127 MM yen.

*8 Impairment loss
The Group has posted the impairment loss for the below assets for FY 2013 as follows.
Location

PurposeType

Impairment loss (MM yen)

Nagoya-city Aichi Pref.

Plant

Shimizu-City,Shizuoka Pref.

Plant

Izu-City, Shizuoka Pref.

Unutilized asset

Land

11

Toba-City, Mie Pref.

Unutilized asset

Land

8

Takayama-City, Gifu Pref.

Unutilized asset

Land

4

Tsu-City,Mie Pref.

Unutilized asset

Land

1

Buildings
andstructures
Buildings
andstructures

417

727

For assets for business, the Group uses management accounting unit for the basis of asset groups andapplies the grouping minimum unit to produce independent cash flow. In addition, for assets leased toothers and unutilized assets, the Group has judged signs of impairment loss using an individual property
as grouping minimum unit.
Effective with our decision to terminate certain plant activities, the value of the affected assets was
adjusted from book value to realizable value with difference recorded as impairment losses.
Regarding the unutilized assets, they are currently idle and expected to be under suspension ofoperation. Moreover the future use is not determined, thus we have decreased the book value torecoverable value and posted the decrease as impairment loss for extraordinary loss.
In addition, the recoverable value has been measured at net sales value and the evaluation is of lessimportance, thus it is based on the value calculated with rational adjustment of the fixed asset tax
assessed valuation.

－

24 －

The Group has posted the impairment loss for the below assets for FY 2014 as follows.
Location

PurposeUtsunomiya-city Tochigi Pref. Unutilized asset

Type

Impairment loss (MM yen)

Land

37

Nasu, Tochigi Pref.

Unutilized asset

Land

18

Kashima-City, Ibaraki Pref.

Unutilized asset

Land

8

Takayama-City, Gifu Pref.etc. Unutilized asset

Land

4

For assets for business, the Group uses management accounting unit for the basis of asset groups andapplies the grouping minimum unit to produce independent cash flow. In addition, for assets leased toothers and unutilized assets, the Group has judged signs of impairment loss using an individual property
as grouping minimum unit.
Regarding the unutilized assets, they are currently idle and expected to be under suspension ofoperation. Moreover the future use is not determined, thus we have decreased the book value torecoverable value and posted the decrease as impairment loss for extraordinary loss.
In addition, the recoverable value has been measured at net sales value and the evaluation is of lessimportance, thus it is based on the value calculated with rational adjustment of the fixed asset tax
assessed valuation.
(Consolidated comprehensive profit statement)*Amounts of reclassification adjustment and tax effect for other comprehensive profits
FY2013

FY2014

Valuation difference on available-for-salesecurities：
Amount incurred during the period
Reclassificaiton adjustment value

976MM yen－

1,198MM yen
12

976
-343

1,210
-433

633

777

Amount incurred during the period
Reclassificaiton adjustment value

-3
－

－

Before tax effect adjustment-33

Tax effect value

1-1

Deffered gains or losses on headges

-2

2

-199
－

502
－

-199

502

431

1,281

Before tax effect adjustment
Tax effect value
Valuation difference on availablefor-sale securities
Deffered gains or losses on headges：

3

Share of other comprehensive income of associates
accounted for using equity method：Amount incurred during the period
Reclassificaiton adjustment value
Share of other comprehensive income ofassociates accounted for using equity method
Other comprehensive profit total

－

25 －

(Consolidated statement of changes in net assets)
FY 2013 (Jan 1st, 2013- Dec. 31st, 2013)
1. Type and total number of issued shares and type and number of treasury shares
Shares as of Jan. 1st, Increase in Shares for Decrease in shares
2013
FY 2013
for FY 2013

Type of shares

Issues shares

SharesCommon shares
Total

SharesShares

76,895,483－

121,898,978

45,003,495

76,895,483－

121,898,978

Shares

Total

Shares

45,003,495

Treasury shares
Common shares

Shares as of Dec.
31st, 2013

SharesSharesShares

861,446

36,321

41,273

856,494

861,446

36,321

41,273

856,494

Notes:
1.
The increase in the number of treasury shares is due to share exchange implemented among Mikuni Coca-Cola
Bottling Co., Ltd.,(share exchange ratio:1:0.790) Tokyo Coca-Cola Bottling Co., Ltd., (share exchange
ratio:1:69.883) and Tone Coca-Cola Bottling Co., Ltd. (share exchange ratio:1:6.814) on July 1, 2013.

2.

2.

The increase in the number of treasury shares is due to purchase by the Company of odd lot shares.
the same as above?)(is this3.

The decrease in the number of treasury shares is due to sale by the Company of odd lot shares andexercise of stock options.
Share Options, etc.

Share options as stock options
Closing balance of share options at the end of FY2013:19MM yen

3. Dividends(1）Dividends paid
Resolution
March 28, 2013
AnnualShareholders
Meeting
August 9, 2013
BOD Meeting

Type of ShareTotal dividends Dividends per share(MM yen)(yen)

Base Date

Effective Date

Common794

18

December 31, 2012

March 29, 2013

Common794

18June 30, 2013

September 6, 2013

(2) Of the dividends which base date is in FY2013, dividends which effective date is in FY2014
Resolution

Type of
Share

Dividend
resource

CommonRetainedearnings

Total dividends Dividends per(MM yen)share (yen)Base Date

Effective Date

March 30, 2014
AnnualShareholders

1,694

Meeting－

26 －14 December 31, 2013

March 31, 2014

FY 2014 (Jan 1st, 2014- Dec. 31st, 2014)
1. Type and total number of issued shares and type and number of treasury shares
Shares as of Jan. 1st, Increase in Shares for Decrease in shares
2014
FY 2014
for FY 2014

Type of shares

Issues shares

SharesCommon shares
Total

SharesShares121,898,978－－

121,898,978

121,898,978－－

121,898,978

SharesSharesTreasury shares

SharesCommon shares
Total

Shares as of Dec.
31st, 2014
SharesShares856,494

9,499

11,563

854,430

856,494

9,499

11,563

854,430

Notes:

1. The increase in the number of treasury shares is due to purchase of odd lot shares.
2. The decrease in the number of treasury shares is due to disposal due to purchase demand of sharesless than one unit and exercise of stock options.
2. Share Options, etc.
Share options as stock options
Closing balance of share options at the end of FY2014:

223MM yen

3. Dividends(1）Dividends paid
Resolution

Type of ShareTotal dividends Dividends per share(MM yen)(yen)

Base Date

Effective Date

March 28, 2014
AnnualShareholders

Common1,694

14

December 31, 2013

March 31, 2014

Common1,936

16June 30, 2014

September 8, 2014

Meeting
August 6, 2014
BOD Meeting(2) Of the dividends which base date is in FY2014, dividends which effective date is in FY2015
Resolution
March 30, 2015
AnnualShareholders
MeetingType of
Share

CommonDividend
resource

Retainedearnings

Total dividends Dividends per(MM yen)share (yen)1,936Base Date

16 December 31, 2014

Effective Date

March 31, 2015

(Consolidated cash flow statement)*1.Relation between the closing balance of cash and cash equivalent for the period and amounts ofitems declared in the consolidated balance sheet
FY 2013
FY 2014(Jan 1st, 2013- Dec. 31st, 2013) (Jan 1st, 2014- Dec. 31st, 2014)
Cash and deposit account29,901 MM yen
24,982 MM yen
Fixed-term deposit which deposit term exceeds 3 months-111-11
Cash and cash equivalent
29,79024,971－27 －*2. Assets and liabilities of new consolidated subsidiaries acquired through share exchanges during theconsolidated fiscal year
FY 2013 (Jan 1st, 2013- Dec. 31st, 2013)
Breakdown of assets and liabilities of Mikuni Coca-Cola Bottling Co., Ltd. and 16 other companies that became
consolidated subsidiaries due to stock exchange at time of their consolidations as well as the relation between theacquisition cost of the stock and “proceeds from purchase of investments in subsidiaires resulting in change in scope of
consolidation” are presented below.
Current asset

105,070 MMyen

Noncurrent asset
Current liability

123,531－63,264

Noncurrent asset
Gain from negative goodwill－34,844－12,969

Loss from consolidation of previousiy unconsolidated entity
the acquisition cost of the stock
Cash and cash equivalentIssuance Costs for share exchange

821
118,343－31,600－118,342

Commision for share exchange
Proceeds from phrchase of investments in subsidiaries

186
31,412

resulting in change in scope of consolidation

3. Non-fund transaction

FY 2013 (Jan 1st, 2013- Dec. 31st, 2013)
Capital surplus increased through share exchange: 118,342 MMyen(Segment information, etc.)
a. Segment Information
The Group has sole segment of beverage business, thus the description is omitted.
b. Related Information
Consolidated FY 2013 (Jan. 1st, 2013-Dec. 31st, 2013)
1. Information by product and service
The beverage business’ net sales to unaffiliated customers accounts for more than 90% of the total net
sales in the consolidated profit and loss statement, thus the description is omitted.
2. Information by area
(1) Net sales
The net sales to unaffiliated customers in Japan accounts for more than 90% of the net sales in the
consolidated profit and loss statement, thus the description is omitted.
(2) Tangible fixed assets
Tangible fixed assets amount in Japan is more than 90% of . Tangible fixed assets in the consolidated
profit and loss statement, thus the description is omitted.
3. Information by major customer
Of the net sales to unaffiliated customers, the Group has no account whose net sales accounts for 10%of the nets sales in the consolidated profit and loss statement, thus the description is omitted.
Consolidated FY 2014 (Jan. 1st, 2014-Dec. 31st, 2014)
1. Information by product and service
The beverage business’ net sales to unaffiliated customers accounts for more than 90% of the total net
sales in the consolidated profit and loss statement, thus the description is omitted.
2. Information by area
(1) Net sales
The net sales to unaffiliated customers in Japan accounts for more than 90% of the net sales in the－

28 －consolidated profit and loss statement, thus the description is omitted.
(2) Tangible fixed assets
Not applicable as the Group has no tangible fixed assets located in overseas.
3. Information by major customer
Of the net sales to unaffiliated customers, the Group has no account whose net sales accounts for 10%of the nets sales in the consolidated profit and loss statement, thus the description is omitted.
c. Information on impairment loss of fixed assets by reported segment
Consolidated FY 2013 (Jan. 1st, 2013-Dec. 31st, 2013)
The Group has sole segment, thus the description of impairment loss of fixed assets byreported segment is omitted.
Consolidated FY 2014 (Jan. 1st, 2014-Dec. 31st, 2014)
The Group has sole segment, thus the description of impairment loss of fixed assets byreported segment is omitted.
d. Information on amortized amount and unamortized balance of goodwill by reported segment
Consolidated FY 2013 (Jan. 1st, 2013-Dec. 31st, 2013)
Not applicable.
Consolidated FY 2014 (Jan. 1st, 2014-Dec. 31st, 2014)
Not applicable.
e. Information on profit of negative goodwill by reported segment
Consolidated FY 2013 (Jan. 1st, 2013-Dec. 31st, 2013)
The Group has sole segment, thus the Gain from negative goodwill or Gains from acquisitions
by reported segment is omitted.
Consolidated FY 2014 (Jan. 1st, 2014-Dec. 31st, 2014)
Not applicable.

－

29 －

(Per share information)
FY2013

FY2014

Net assets per share

1,785.92 yen

1,764.07 yen

Net income per share for the year

139.70 yen

28.37 yen

Net income per share fully diluted for the year

139.64 yen

28.36 yen

Note: The basis for calculation is as follows.
(1) Net assets per share
FY2013

FY2014

Net assets per share
Total amount of the section of net assets (MM yen)

216,191

213,754

19

223

（19）

（223 ）

216,172

213,530

121,042,484

121,044,548

Amount deducted from total amount of the section of net
assets (MM yen)
(Share options of the above (MM yen))
Net assets for common shares at year-end
Number of issued common shares at year-end (shares)(2) Net income per share for the year and net income per share fully diluted for the year
FY2013

FY2014

Net income per share for the year
Net income for the year (MM yen)

11,582

Amount not attributable to common shareholders

3,434

－

Net income for the year attributable to common shares

11,582Average number of common shares (shares)

82,912,957

3,434
121,047,933

Net income per share fully diluted for the year
Adjustment to net income (MM yen)－

Increase in number of common shares (shares)(share options (shares) of the above)(Significant subsequent events)
Not applicable.

- 30 -

33,306

51,105（33,306）（51,105）

5．Others ( Appointment of Officers (Effective from March 30th, 2015))(1) New Director candidate
Director & Senior Executive Officer(2) Retiring Director
Current: Director & Executive
Officer, Senior Manager of Non KO
Subsidiaries and M&A, FinanceFunction

Haruko Ozeki(Current: Chief Legal Officer)

Masaki Ito(3) New corporate auditor candidate
Corporate Auditor (Part-time)

Haraomi Kondo(Current: Vice President & Manager ofpresident's office, CCJC

* Haraomi Kondo is Outside Corporate Auditor candidate.

(4) Retiring Corporate Auditor
Current: Corporate Auditor (Parttime)

Kana Odawara(Current: Senior VP & Finance Controller,
CCJC
End

- 31 -