Summary of Consolidated Financial Statements (Japanese Standards)
for the first three quarters of the year ending December 31st, 2013 (Q3 2013YTD)
thNovember 11 , 2013

Listed Company Name

Coca-Cola East Japan Co., Ltd.

Security Code

2580

Representative

title

Contact

title

Representative
Director ,President
Senior Executive Officer
Finance Function

Scheduled date of submission of

Nagoya Stock Exchange

URL

http://www.ccej.co.jp

Name

Calin Dragan

Name

Asako Aoyama

TEL:
03(5443)8077

Schedule date of start ofthNovember 13 , 2013

Quarterly Report

Tokyo Stock Exchange

Stock Exchange－

dividend payment

Preparation of supplementary documents for quarter results

Yes

Quarterly results briefing

Yes(Amounts of less than 1 MM yen are rounded down)st

1． Consolidated Financial Results for the first three quarters of the year ending December 31 , 2013
stth
(January 1 , 2013 – September30 , 2013)(1)
Consolidated Results of Operations(YTD)(Percentages show year-on-year changes)
Net Sales

Operating Income

MM Yen%Ordinary Income

MM Yen%Q3 2013 YTD
246,786
65.5
8,077
219.2
Q3 2012 YTD
149,109
1.4
2,530
△42.9
(Note) Comprehensive income: Q3 2013 YTD 15,964 MM yen (945.9%)%

MM YenYen

Yen

220.9732.76

220.84
32.73

.

(2)

Consolidated Financial Position
Total Assets

Net Assets

MM YenQ3 2013 YTD
329,553
FY2012
112,785(Reference) Shareholders’ equity: Q3 2013 : 220,135 MM yen
FY2012 : 87,417 MM yen

Equity Ratio
MM Yen%220,154
87,461

66.8
77.5

2．Dividends
End of Q1Yen

FY2012FY2013
FY2013(forecast)－－

Dividend per share
End of Q2
End of Q3
Yen

18.00
18.00

(Note) Revisions to the dividend forecast disclosed most recently

Yen

%

8,177
212.2
15,481 970.8
2,619
△31.8
1,445 △6.6
Q3 2012 YTD 1,526 MM yen (△5.9%)

Net income per share(fully diluted)

Net income per share
Q3 2013 YTD
Q3 2012 YTD

MM YenNet Income

Year-end

Annual

Yen

Yen

－

18.00

36.00

－

14.00

32.00

Yes

(Note) Second quarter 2013 interim dividend reflects the operations of Coca-Cola Central Japan Co., Ltd. The full-year2013 annual dividend estimate has changed as a result of the integration of four bottlers into Coca-Cola East Japan on July 1,
2013. Our full-year dividend has been revised to JPY 32/share from JPY 30/share, which represents the average dividend
per share paid by the four bottlers in 2012.
st

st

3．The Consolidated Earnings forecasts for the fiscal year commencing January 1 and ending December 31 ,2013(Percentages show year-on-year changes)

Net sales
Full-Year

Operating Income

Ordinary Income

Net Income

Net Income
Per Share

MM Yen%MM Yen%MM Yen%MM Yen%Yen

376,100

94.1

6,300

86.0

6,400

95.4

10,900568.4

131.46(Note) Revisions to the Earnings forecasts disclosed most recently
Yes(Note) The Company announced that it had not determined the consolidated earnings forecast s estimated due to impacts
associated with the business integration on July 1st 2013.
However, the Company hereby announces that it has determined full-year consolidated earnings forecasts for fiscal year
2013 under the business circumstance after the integration.
Notes:(1) Changes of important subsidiaries during consolidated Q3 FY2013 (Changes of specific subsidiaries
accompanied by changes in the consolidation scope)
Mikuni Coca-Cola Bottling Co., Ltd., Tokyo Coca-Cola Bottling Co., Ltd., Tone Coca-Cola Bottling Co., Ltd.
COCA-COLA EAST JAPAN PRODUCTS Co, Ltd(2) Application of particular accounting treatments to the preparation of quarterly consolidated financial
statements

YES

None

(3) Changes in accounting policies and changes or restatement of accounting estimates① Changes in accounting policies accompanied by revisions of accounting standards, etc.

None

② Changes in accounting policies other than ①None③ Changes in accounting estimates

None④ Restatement

None(4) Number of Issued Shares (Common Shares)① Number of the issued shares at the end of theperiod (including treasury stock)② Number of the treasury stock at the end of theperiod③ Average number of the shares during theperiod (accumulated total)

Q3 2013

121,898,978 shares

FY 201245,003,495 shares

Q3 2013849,769 shares

FY 2012

861,446 shares

Q3 2013YTD

70,062,189 shares

Q3 2012YTD

44,131,316 shares*Statement regarding the status of the quarterly review
stThis summary of financial statements for the first three quarters of the year ended December 31 , 2013 fall outside thequarterly audit review required by the Financial Instruments and Exchange Act and the quarterly audit review of quarterly
consolidated financial statements required by the Financial Instruments and Exchange Act had not been completed as of thetime when this summary was disclosed.
*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 for earnings forecasts and notes on the use of earnings forecasts, please see “Qualitative informationon the consolidated earnings forecasts,” page 3 of the attached material of the summary.

Contents of the Attached Materialsst

1. Qualitative information on results for the first three quarters of the year ending December 31 , 2013 ････････

2(1) Qualitative information on the consolidated operating results ･････････････････････････････････････

2(2) Qualitative information on the consolidated financial positions ････････････････････････････････････

3(3) Qualitative information on the consolidated earnings forecast ･････････････････････････････････････

3

2. Matters relating to summary information (notes)･･････････････････････････････････････････････････

4(1) Changes of important subsidiaries during the consolidated Q3 2013 YTD(accumulated)･･･････････････････

4(2) Application of particular accounting treatments to preparation of quarterly consolidated financial statements

4(3) Changes in accounting policies and changes or restatement of accounting estimates ････････････････････

4(4) Additional information･････････････････････････････････････････････････････････････････････

4

3. Quarterly consolidated financial statements ･･･････････････････････････････････････････････････････

5(1) Quarterly consolidated balance sheets ････････････････････････････････････････････････････････

5(2) Quarterly consolidated profit and loss statements and comprehensive profit statements･････････････････

7

Quarterly consolidated profit and loss statement
Consolidated Q3 2013YTD(accumulated)････････････････････････････････････････････････････ 7
Quarterly consolidated comprehensive profit statements
Consolidated Q3 2013YTD(accumulated)･･･････････････････････････････････････････････････

8(3) Notes relating to assumptions for the going concern･･････････････････････････････････････････････

9(4) Notes in the event of significant changes in amount of shareholders’ equity･･･････････････････････････

9(5) Other annotation information ････････････････････････････････････････････････････････････････ 9

11. Qualitative information on the results for the third quarter of the year ending December31, 2013
(1) Qualitative information on consolidated operating results
With regard to the economy of Japan during this consolidated cumulative third quarter, amidst concern regarding
economic stagnation in China, a general improvement in business earnings due to the economic stimulus measures of“Abenomics” can be seen. Furthermore, private consumption is showing an improving trend and recent pricedevelopments indicate that deflation is slowing.
In the non-alcoholic ready to drink beverage industry, while there was market growth partly due to the intense heat
during the summer, sales competition remains intense.
Q3 2013 marked the first quarter of operations for Coca-Cola East Japan after the management integration of the four
Kanto and Tokai Region Coca-Cola bottling companies on July 1, 2013. As a result of the integration, Coca-Cola East
Japan (CCEJ) is now the fifth largest global Coca-Cola bottler in terms of annual revenue and the largest Coca-Colabottler in Japan, with close to 50% of total Coca-Cola Japan system volume.
CCEJ now encompasses one contiguous geographic territory in one of the most dynamic and competitive consumer
markets in Japan. The integration allows us to make business-building decisions from a customer service and supply
chain perspective that leverage the scale of our newly expanded size and the related efficiencies of having one
optimized set of functional organizational structures instead of multiple individual businesses running in separate
geographies. In addition we have the unique opportunity to tap into the extensive network of the Coca-Cola systemworldwide and leverage subject matter experts and best practices to build CCEJ from a simple combination of fourbottling companies to our goal of becoming a world-class Japanese Coca-Cola bottler.
During the quarter, although still early in our integration work, we were pleased with the pace of our integration efforts.
With over 250 integration initiatives ongoing there are many visible signs of progress to highlight, including thefollowing:







We started operations on July 1, 2013 as a fully functionally integrated company with no interruption in service,even year-to-date volume performance overall on a pro-forma basis, and growth in our flagship Coca-Cola
Trademark, up 3%.
We realigned our Commercial organization on October 1, 2013 to reflect a customer and channel orientation
instead of the previous bottler region structure and we initiated an excellence in marketplace execution pilot
program at our Chiba sales center.
On November 1, 2013, we announced the merger of our four production companies into one company, Coca-Cola
East Japan Products Co., Ltd. to ensure “One Voice” in driving an efficient and effective consolidated supply chain.
We are also consolidating our headquarters management functions into one headquarters location in Tokyo, to becompleted by the end of this year, while at the same time leveraging our existing real estate assets across our
territory to centralize business support and other functions into centers of excellence.

Performance Highlights
Year-to-date pro-forma BAPC volume was even, with year-to-date volume growth in unsweetened teas (+3%); sports
drinks (+2%); sparkling beverages (+0.4%), driven by Trademark Coca-Cola, and juice (+3%). During the quarter andyear-to-date, volume grew primarily in the drug and discounter channel and regional supermarkets, with the vending
and convenience store channels continuing to experience volume pressure.
With regard to marketing activities, our efforts have been focused on our “core eight” brands: Coca-Cola, Coca-Cola
Zero, Fanta, GEORGIA, Sokenbicha, Aquarius, Ayataka, and I LOHAS. We have particularly put continuous effort into
Trademark Coca-Cola, with a summer campaign and music promotion driving brand Coca-Cola volume growth and thesuccessful continuation of in-store execution and promotions under our “Zero Limit” Campaign driving volume growthin Coca-Cola Zero. During the period, Ayataka green tea continued to show strong momentum and Sokenbicha tea
returned to growth following the successful “Sokenbicha People’s Vote” campaign, which won the “Web Award” of the
Web Marketing Association, an organization established with the goal of contributing to the development of theworld’s internet marketing and websites. Aquarius VitaminGuard was also relaunched in the third quarter. Finally,as Tokyo was selected as the host city for the 2020 Olympic and Paralympic Games, CCEJ is proud to be the “hometown
Coca-Cola bottler” of the 2020 Olympic Games, and to represent, together with our partners at Coca-Cola Japan, The
Coca-Cola Company, which has been a Worldwide Olympic Partner since the 1928 Amsterdam Games.
2Our reported year-to-date earnings results reflect the impact of the integration of the four Kanto and Tokai Region
bottlers on July 1, 2013, and therefore the year-to-date results reported today reflect the consolidated results of the
newly integrated CCEJ in the third quarter (July 1 to September 30) and the performance of the legacy stand-alone
Coca-Cola Central Japan Co., Ltd. for the first and second quarters (January 1 to June 30).
Year-to-date reported net sales revenue for the group was JPY 246,786MM, up 65%, or JPY 97,676MM versus the prioryear period and reflects the benefit of the integration of the four Kanto and Tokai Region bottlers on July 1, 2013. Net
sales revenue also reflects the negative impact of price/mix reflecting volume growth in supermarkets (+1%) and thedrug and discounter channel (+3%), offset by weak volume performance in the vending channel (-2%).
Year-to-date reported operating income was JPY 8,077MM, up +219%, or JPY 5,547MM versus the prior year period.
This reflects the benefit of the bottler integration, including the benefit of supply chain savings related to Coca-Cola East
Japan Products (CCEJP) achieved during the third quarter, and includes the negative impact of JPY 1,922MM in nonrecurring items related to integration and restructuring initiatives during the period.
Year-to-date reported net income was JPY 15,481MM, up +971%, or JPY 14,035MM versus the prior year period. This
reflects the benefit of the bottler integration as well as a net JPY 10,187 one-time gain in extraordinary profit primarily
related to the recognition of negative goodwill associated with the bottler integration.
The group operates as a single beverage business segment and has accordingly omitted any segment information.

(2) Qualitative information on consolidated financial position
The financial position at the end of this consolidated cumulative third quarter is as follows. Due to the aforementioned
management integration, this is the financial position of the integrated company.
Assets at the end of third quarter were JPY 329,553MM, an increase of JPY216,767MM from the end of the previous
fiscal year. This is mainly due to increases in cash & deposits, merchandise & products, and tangible fixed assets as aresult of the aforementioned management integration.
Liabilities at the end of third quarter were JPY 109,398MM, an increase of JPY 84,074MM from the end of previous
fiscal year. This is mainly due to increases in accounts payable and reserve for retirement allowance as a result of theaforementioned management integration.
Net assets at the end of third quarter were JPY 220,154MM, an increase of JPY 132,693MM. This is primarily a resultof an increase in capital surplus as a result of the aforementioned management integration.
(3)Qualitative information on consolidated earnings forecast
The performance estimate for this consolidated 2013 full-year period for CCEJ is as follows. As a result of theaforementioned bottler integration, we have added the third quarter results and the fourth quarter estimate for the
new integrated company to those of Coca-Cola Central Japan Company, Ltd. (01/01 – 06/30). Furthermore, in the fullyear 2013 reported estimate for CCEJ, reported operating income and ordinary profit reflect the negative impact of JPY
2,000MM and JPY 1,700MM, respectively, in non-recurring items related to integration and restructuring initiatives
during the period. In addition, net income reflects extraordinary profit of JPY 4,900MM primarily related to therecognition of negative goodwill associated with the bottler integration.
The group will generate JPY 376,100MM (+94.1% from previous fiscal year) in reported sales revenue for the full year.
In terms of profitability, the group will generate JPY 6,300MM (+86.0% from previous fiscal year) in operating income,and JPY 6,400MM (+95.4% from previous fiscal year) in ordinary profit. In terms of net income, the group will
generate JPY 10,900MM (+568.4 % from previous fiscal year), primarily reflecting the recognition of negative goodwill
associated with the bottler integration.

3

2. Matters relating to summary information (notes)(1) Changes of important subsidiaries during the consolidated Q3 2013 YTD (accumulated)
From the consolidated accounting period for Q3 2013, the Company has included 18 companies in the scope of ourconsolidation in conjunction with the share acquisition of Mikuni Coca-Cola Bottling Co., Ltd., Tokyo Coca-Cola BottlingCo., Ltd. and TONE Coca-Cola Bottling Co., Ltd. COCA-COLA EAST JAPAN PRODUCTS Co., Ltd . Furthermore, of thecompanies in the scope of our consolidation, Mikuni Coca-Cola Bottling Co., Ltd., Tokyo Coca-Cola Bottling Co., Ltd. and
TONE Coca-Cola Bottling Co., Ltd. fall under Specified Subsidiary Company.
(2)Application of accounting treatments to the preparation of quarterly consolidated financial statements
There is no matter applicable.
(3)Changes in accounting policies and changes or restatement of accounting estimate
There is no matter applicable.
(4) Additional information
The Company traditionally recorded the loss on retirement of fixed assets for sales equipment and vehicle transport
equipment as "loss on disposal or retirement of fixed assets" of “extraordinary loss,” but reclassified the account item
in "loss on disposal or retirement of fixed assets" of "non-operating expense" from the consolidated accounting
period for Q3 2013.
As a result of reviews of the business processes following the business integration on July 1st, 2013, andcomprehensively taking into account the characteristics of these transactions, this change was made to reclassify theloss on retirement of fixed assets for sales equipment and vehicle transport equipment in "loss on disposal orretirement of fixed assets" of "non-operating expense" in order to reflect the actual performance of the sales
activities more appropriately.
Due to this change, the consolidated financial statements for Q3 2012 YTD are also presented after reclassification of
the above account item.
In fact, the JPY 295MM has reclassified from "loss on disposal or retirement of fixed assets" of “extraordinary loss,” to"loss on disposal or retirement of fixed assets" of "non-operating expense" in the consolidated period for Q3 2012
YTD.

4

3. Quarterly Consolidated financial statements(1) Consolidated balance sheets(Million yen)
FY2012Q3 2013 YTD

AssetsCurrent assets
Cash and deposits

6,017

40,583

Notes and accounts receivable-trade

13,652

41,475

Short-term investment securities

16,000

1,998

Merchandise and finished goods

6,593

34,824Work in process－130

Raw materials and supplies

495

3,775

5,684

21,131Other
Allowance for doubtful accounts

△6

△ 42

48,437

143,876

Buildings and structures, net

14,16437,767

Sale equipment, net

14,36740,231

Land

18,681

46,715

Other, net

6,020

25,960Property, plant and equipment

53,233

150,674

1,499

3,783

Other

9,708

31,561

Allowance for doubtful accounts

△ 94

△ 343

Investments and other assets

9,614

31,21864,347

185,676

112,785

329,553

Accounts payable-trade

7,676

29,585

Short-term loans payable

－

1,267

Current portion of long-term loans payable－

100

Income taxes payable

1,308

2,902

Provision for bonuses

－

3,535

Provision for directors' bonuses

42

66

Other

11,03432,888Current liabilities

20,062

70,346

Current assets
Noncurrent assets
Property, plant and equipment

Intangible assets
Investments and other assets

Noncurrent assets
AssetsLiabilities
Current liabilities

Noncurrent liabilities
Long-term loans payable
Provision for retirement benefits
Provision for directors' retirement benefits
Provision for environmental measures

－

3,150

2,870

17,999

59

349

85

359

Other

2,246

17,192

Noncurrent liabilities

5,262

39,051

25,324

109,398

Liabilities

5

(Million yen)
FY2012Q3 2013 YTD

Net assets
Shareholders' equity
Capital stock

6,499

6,499

Capital surplus

24,805

143,136

Retained earnings

57,04170,933

Treasury stock△ 1,163△ 1,151

87,183

219,418

233

718

Deferred gains or losses on hedges－△0

Valuation and translation adjustments

233

718

44

18

Shareholders' equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities

Subscription rights to shares
Net assets
Liabilities and net assets

6

87,461

220,154

112,785

329,553

(2) Consolidated profit and loss statement and comprehensive profit statements(Consolidated profit and loss statement)(Million yen)
Q3 2012 YTD

Q3 2013 YTD

Net sales

149,109

246,786

Cost of sales

91,120139,005

Gross profit

57,989107,781

Selling, general and administrative expenses

55,45999,703Operating income

2,530

8,077

Interest income

30

56Dividends income

23

20

Equity in earnings of affiliates

194

190

Rent income

96

207

Gain on sales of valueable wastes

90

160

Miscellaneous income

65

105

501

741

Interest expenses

11

127

Rent expenses

37

54

Loss on sales and retirement of noncurrent assets

295

437

Miscellaneous loss

67

21

Non-operating expenses

412

641

2,619

8,177

Gain on negative goodwill－

12,969

Other

－

6

Extraordinary income－

12,976

Loss on sales and retirement of noncurrent assets

71

71

Loss on valuation of investment securities

19－

Integration expenses

－

1,961

Loss on step acquisitions

－

821

Other

18

40

Extraordinary loss

110

2,894

Income before income taxes

2,509

18,259

Income taxes-current

1,803

3,381

Income taxes-deferred

△ 739

△ 603

Income taxes

1,063

2,778

Income before minority interests

1,445

15,481

Net income

1,445

15,481Non-operating income

Non-operating income
Non-operating expenses

Ordinary income
Extraordinary income

Extraordinary loss

7

(Consolidated comprehensive profit statement)(Million yen)
Q3 2012 YTD

Income before minority interests

Q3 2013 YTD

1,445

15,481Other comprehensive income
Valuation difference on available-for-sale securities

80

484

Deferred gains or losses on hedges－△0

Other comprehensive income
Comprehensive income

80

483

1,526

15,964

1,526

15,964－－Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests8(3) Notes relating to assumptions for the going concern
None(4) Notes in the event of significant changes in amount of shareholders’ equity
The Company effected share exchanges in which the Company became a wholly owning parent company and eachof Mikuni Coca-Cola Bottling Co., Ltd., Tokyo Coca-Cola Bottling Co., Ltd. and TONE Coca-Cola Bottling Co., Ltd.
became a wholly owned subsidiary company on July 1st 2013. As a result of the share exchange, our capital surplus
has increased by 118,342 MM yen.
(5) Other annotation information(Business Combinations)
Business combination through acquisition
1．Overview of business combination(1) Name of acquired companies and the businesses
Name of acquired companies:

Mikuni Coca-Cola Bottling Co., Ltd.
Tokyo Coca-Cola Bottling Co., Ltd.
TONE Coca-Cola Bottling Co., Ltd.

Business domain:

Manufacturing and sales of soft drinks(2)Main reasons for business combination
The beverage industry in Japan has been facing diversifying consumer trends and intensifying cost competition.
The Company, Mikuni Coca-Cola Bottling Co., Ltd., Tokyo Coca-Cola Bottling Co., Ltd. and TONE Coca-Cola BottlingCo., Ltd. have integrated their businesses in order to build a more solid management foundation and to make thebest use of scale advantages across the business. Further, through this integration, the Company is positioned toleverage new growth opportunities and thus realize sustainable growth despite a competitive businessenvironment.

The company will assemble best practices from across each company as well as the global Coca-

Cola system and make an effort to further improve efficiencies with the aim to enhance value for all stakeholders.
(3)Date of business combination
July 1st 2013(4)Legal form of business combination
Share exchange and incorporation-type company split(5)Name of the company after business combination
Coca-Cola East Japan Co., Ltd.
(6)Percentage of voting rights acquired
100%(7)Main rationale for selecting the acquiring company
The Company was selected as the acquiring company considering the several factors comprehensively, such as
relatively large percentage of voting rights of its shareholders, the difference of the scale and so on, as well as thefact that the Company became a wholly-owning parent company.
2．Period of the acquired companies (operating companies) performance subject to the quarterly consolidated profit
and loss statement for the quarterly consolidated cumulative periodstthJuly 1 2013 to Sep. 30 20139

3．Acquisition costs for each acquired company (operating companies) and each breakdown(1) Mikuni Coca-Cola Bottling Co., Ltd.
Consideration for acquisition (Market value of the common shares
held immediately before the date of the business combination)
Consideration for acquisition (Market value of the common shares issued
on the date of the business combination)
Costs directly incurred for the acquisition (Advisory fee, etc.)
Acquisition cost

20 MM yen
58,683 MM yen
93 MM yen
58,797 MM yen(2) Tokyo Coca-Cola Bottling Co., Ltd.
Consideration for acquisition (Market value of the common shares issued
on the date of the business combination)
Costs directly incurred for the acquisition (Advisory fee, etc.)
Acquisition cost

26,100 MM yen
40 MM yen
26,141 MM yen(3) TONE Coca-Cola Bottling Co., Ltd.
Consideration for acquisition (Market value of the common shares issued
on the date of the business combination)
Costs directly incurred for the acquisition (Advisory fee, etc.)
Acquisition cost

33.557 MM yen
52 MM yen
33,609 MM yen

4．Exchange ratio and the calculation methods by type of shares and number of shares issued(1) Exchange ratio of common shares

Exchange ratio

CCCJ

Mikuni

Tokyo

Tone

１

0.790

69.883

6.814(2) Calculation method of share exchange ratio
The Company, Mikuni Coca-Cola Bottling Co., Ltd., Tokyo Coca-Cola Bottling Co., Ltd. and TONE Coca-Cola Bottling Co., Ltd.
each carefully considered the share exchange ratio based on the calculation results of the share exchange ratios
submitted from their respective third party calculation agents, SMBC Nikko Securities Inc., Mitsubishi UFG Morgan
Stanley Securities Co., Ltd., Nomura Securities Co., Ltd. and KPMG FAS Co., Ltd. and conducted negotiations anddiscussions among the parties after comprehensively taking into account each party’s financial positions, asset conditions
and future prospects, the level of the market stock prices of Coca-Cola Central Co., Ltd. and Mikuni Coca-Cola BottlingCompany and other factors.
(3) Number of shares issued
76,895,483 shares
5． Amount of difference between market price and book value with respect to shares of acquired company (CCEJP)
821 MM yen

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6．Amount of negative goodwill generated, reason for the generation, amortization method and the period(1) Amount of negative goodwill generated
12,969 MM yen(2) Reason for the generation
Net amount of acquired assets and assumed liabilities exceeded the acquisition value of the shares and the difference has
been recorded as gain on negative goodwill.
7．Allocation of acquisition coststh

Allocation of the acquisition costs have not been completed as of Q3 2013 ended Sep. 30 and therefore, the Company
has applied a tentative accounting treatment based on reasonable information which is available at the point of time.

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