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

Summary of Consolidated Financial Statements (Japanese Standards)
for the First Quarter of the Year Ending December 31st, 2016 (Q1 2016YTD)
May 13th, 2016
Listed Company Name:

Coca-Cola East Japan Co., Ltd.

Stock Exchange:

Security Code:

2580

URL:

http://www.ccej.co.jp

Name:

Calin Dragan

Name:

Johan Rolf

Representative:

title

Contact:

title

Representative Director,
President
Senior Executive Officer
Finance Function

Scheduled date of submission of quarterlyTEL:
03 (5575) 3859

Schedule date of start of

May 13, 2016

report:Tokyo Stock Exchange

Not Applicabledividend payment:

Preparation of supplementary documents for quarter results:

Yes

Quarterly earnings results presentation/conference:

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

1． Consolidated Financial Results for the First Quarter Ending March 31, 2016 (January 1, 2016 – March 31, 2016)(1)
Consolidated Results of Operations (YTD)(Percentages show year-on-year changes)
Net Income
belonging to parent
Net Sales
Operating Income
Ordinary Income
company
shareholders
Million Yen%

Million Yen%

Q1 2016
124,522
13.0-442
Q1 2015
110,220-1.5-1,939(Note) Comprehensive income: Q1 2016: -2,080 Million Yen (－%)%

Million Yen

Net Income per Share(Fully Diluted)

Net Income per Share
Q1 2016
Q1 2015

Million Yen

－
-672
－
－
-1,926－
Q1 2015: 3,165 Million Yen (－%)

Yen

Yen

-6.61
-12.75

－
－

.

(2)

Consolidated Financial Position
Total Assets

Net Assets

Million Yen

Equity Ratio

Million Yen%

226,924
230,945

61.5
62.0

Q1 2016
367,994
FY2015
371,771(Note) Shareholders’ equity: Q1 2016 : 226,466Million Yen
FY2015 : 230,525 Million Yen
2．Dividends
End of Q1Yen

FY2015FY2016FY2016 (Forecast)－－

Dividend Per Share
End of Q2
End of Q3
Yen

Yen

Year-end

Annual

Yen

yen

16.00

－

16.00

32.00

16.00

－

16.00

32.00

(Note) Revisions to the dividend forecast disclosed most recently

0

No

-838
-1,543%－－

3．The Consolidated Earnings Forecasts for the Fiscal Year Commencing January 1st and Ending December 31st ,2016(Percentages show year-on-year changes)

Net Sales

Full-Year

Operating Income

Ordinary Income

Net Income
belonging toparent company
shareholders

EPS

Million Yen%

Million Yen%

Million Yen%

Million Yen%

Yen

571,300

1.4

14,00029.7

13,600

30.6

7,200

34.5

57.42

(Note) Revisions to the Earnings forecasts disclosed most recentlyNo

Notes:(1) Changes of important subsidiaries during consolidated Q1 2016

None

(Changes of specific subsidiaries accompanied by changes in the consolidation scope)(2) Application of particular accounting treatments to the preparation of quarterly consolidated financial
statements

None(3) Changes in accounting policies and changes or restatement of accounting estimates(i) Changes in accounting policies accompanied by revisions of accounting standards, etc.

Yes(ii) Changes in accounting policies other than (i)No(iii) Changes in accounting estimatesYes(iv) Restatement

None(4) Number of Issued Shares (Common Shares)(i) Number of the issued shares at the end of
Q1 2016
the period (including treasury stock)(ii) Number of the treasury stock at the end of
Q1 2016
the period(iii) Average number of the shares during theQ1 2016
period (accumulated total)

127,680,144 shares

FY 2015

127,680,144 shares

855,961 shares

FY 2015855,654 shares

126,824,279 shares

Q1 2015

121,044,122shares*Statement regarding the status of the quarterly review
This summary of financial statements for the first quarter of the year ending December 31st, 2016 falls outside the quarterly
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 the time when thissummary 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 detailsof assumptions for earnings forecasts and notes on the use of earnings forecasts, please see “Qualitative information on the
consolidated earnings forecasts,” page 4 of the attached material of the summary.

1

Contents of the Attached Materials

1. Qualitative information on results for the first quarter of the year ending December 31, 2016 ...........................2(1) Qualitative information on the consolidated operating results .........................................................................2(2) Qualitative information on the consolidated financial positions .......................................................................4(3) Qualitative information on the consolidated earnings forecast ........................................................................4
2. Matters relating to summary information (notes) ...................................................................................................5(1) Change of important subsidiaries during the consolidated Q1 2016 ..............................................................5(2) Application of particular accounting treatments to preparation of quarterly consolidated financial
statements ...............................................................................................................................................................5(3) Changes in accounting policies, accounting estimate or restatement ............................................................5(4) Additional information ........................................................................................................................................6
3. Consolidated financial statements..........................................................................................................................7(1) Consolidated Balance Sheets ...........................................................................................................................7(2) Consolidated Profit and Loss Statement and Comprehensive Profit and Loss Statement ...........................9(Consolidated Profit and Loss Statement) .........................................................................................................9(Consolidated Comprehensive Profit and Loss Statement) ........................................................................... 10(3) Notes relating to quarterly consolidated financial statements ....................................................................... 11(Notes relating to assumptions for the going concern) .................................................................................... 11(Notes in the event of significant changes in amount of shareholders’ equity) .............................................. 11(Segment information and others) .................................................................................................................... 11(Important subsequent event) ........................................................................................................................... 111

1. Qualitative information on results for the first quarter of the year ending December 31, 2016
(1) Qualitative information on the consolidated operating results
Coca-Cola East Japan Co., Ltd. (CCEJ) today announced its consolidated financial results for the first quarter2016 (January 1, 2016 to March 31, 2016).
For additional details and management discussion of results, please also see the supporting presentationmaterial posted on our Company website, which will be used for the earnings presentation and webcast on
Monday, May 16, 2016 at 3:30 p.m. (JST).

The webcast is available both live and on demand at

http://investor.ccej.co.jp.
Key Messages
Volume grew 16% year-on-year, and market share continued to recover, with growth in both volume andvalue share. Excluding the integration of Sendai Coca-Cola Bottling Co., (Sendai), volume grew 6%.

First quarter revenue grew 13% year-on-year, driven by the benefit of the integration of Sendai on April 1,2015 as well as volume growth, etc.

First quarter reported operating loss improved by JPY 1.5 billion year-on-year, mainly driven by continuous
synergy capture from supply chain initiatives.



Agreed and signed memorandum of understanding on April 26, 2016 to proceed with discussions/review ofbusiness integration with Coca-Cola West Co, Ltd.

Operating Review
Total nonalcoholic ready-to-drink (NARTD) beverage industry volumes were generally positive in the first quarter.
Total BAPC sales volume of CCEJ grew 16% year-on-year led by the integration of Sendai, continued good
performance of newly launched products and cycling new customer acquisitions. Volume excluding the
integration impact (assuming previous year first quarter volume included Sendai) was positive 6% in the quarter.
Volume grew across all channels, with supermarket +15%, driven by the growth of Ayataka green tea, premium
ilohas water, etc. Drug & discounter volume grew +32% and Convenience Store volume grew +25%, led bycoffee, teas and water growth.

The Eating & Drinking channel grew volume +14% and vending channel

volume grew +9%, reflecting the inclusion of Sendai in our performance results.
Sparkling beverage volume grew +11% in the first quarter, led by growth in Brand Coca-Cola, Coca-Cola Zeroand Fanta.

In the hydration category, unsweetened tea volume grew +18%, water grew +30% thanks tocontinued strong performance of ilohas water, and sports drinks grew +9%. Coffee volume continued to grow, up
21% in the first quarter led by newly launched products and juice grew +18%.
We have a solid marketing and innovation calendar planned for the second quarter onward together with ourpartners at Coca-Cola Japan (CCJC), including extensive deployment of premium products and related
marketing and sales promotion activities.
We will continue the global advertising campaign for Coca-Cola, “Taste the Feeling”, throughout the year as wellas marketing and sales promotions focusing on the Rio de Janeiro Olympics to be held in August.

We

introduced a new healthy lactic product, “Yogurstand” in April and we fully renewed “Sokenbicha” tea on May 9.
Further, we recently announced the planned launch on May 23 of “Georgia Cold Brew” coffee as a premium
products featuring cold brew technology with new slim bottle can packaging for OTC channels (Supermarket,
convenience stores, etc.).

2

We have been continuously working to improve profitability across all channels with a segmented approach to
growing volume and revenue across channels. In the vending machine channel, deployment of vendingexclusive initiatives such as loyalty programs for consumers using smart phone application “Coke On”, developed
by CCJC, was introduced in April and we launched “Minute Maid Healthy Recipe Beauty Mix” at the end of
March as a vending-only product exclusive for CCEJ territory. We will continue to focus on launching vendingexclusive products as well as to develop indoor machine placements to achieve revenue and volume growth.
Financial Review
First Quarter 2016 (January to March)
Reported Results
In Million JPY

2015

2016

% Change

Net Sales

110,220

124,522

13.0%

Operating Income (Loss)(1,939)(442)-

Net Income (Loss)(1,543)

(838)

-

2015

2016

% Change

Volume** (BAPC, in thousand)

59,00968,349

15.8%

Net Sales

110,220

124,522

13.0%

Operating Income (Loss)(1,598)(392)-

Comparable* Results
In Million Yen, except volume* Comparable: Presentation of results after excluding exceptional items such as charges, gains, etc. which are viewed bymanagement as non-recurring 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 in accordance with JGAAP.
** Previous year volume shown above may be slightly different from what we shared in the previous year, as part of theimplementation and standardization for the new ERP system, CokeOne+.

Our quarterly operating results during the year will likely exhibit seasonal variation, as the demand fornonalcoholic ready-to-drink beverages tends to be higher in the summer months. Sales and profits consequently
are expected to be lower in the first quarter than subsequent quarters.
First quarter reported revenue was JPY 124,522 million (positive 13.0% compared to the prior year period), mainly
attributable to the integration of Sendai as of April 1, 2015 as well as volume growth, etc.
First quarter reported operating loss was JPY 442 million (reported operating loss of 1,939 million in the prior year
period). This improvement was mainly driven by gross profit increase reflecting continuous synergy capture
from supply chain efficiency, volume growth, etc.
We reported first quarter net loss of JPY 838 million (net loss of 1,543 million in the prior year period), reflecting
a loss on disposals of fixed assets, penalty on lease termination, etc.

3(2) Qualitative information on the consolidated financial positions
The financial positions at the end of this quarter are as follows:
Assets at the end of this quarter were JPY 367,994 million, a decrease of JPY 3,776 million from the end of theprevious fiscal year. This mainly reflects a decrease in notes and accounts receivable-trade due to seasonalchanges.
Liabilities at the end of this quarter were JPY 141,069 million, an increase of JPY 244 million from the end of
previous fiscal year. This is due to an increase in short-term loans payable partly offset by decreases in Other
Current liabilities and Noncurrent liabilities driven by the lease termination.
Net assets at the end of this quarter were JPY 226,924 million, a decrease of JPY 4,020 million. This is primarily
due to a decrease in retained earnings by paying year-end dividends, valuation and translation adjustment, etc.

(3) Qualitative information on the consolidated earnings forecast
No change from our forecast for the fiscal year ending December 2016, issued on February 12, 2016.
Additionally, on April 26, 2016, CCEJ and Coca-Cola West Co., Ltd. agreed to proceed with discussions/review
of a business integration and have entered into a non-binding Memorandum of Understanding between the twoparties. For details, please refer to “Announcement of Memorandum of Understanding Regarding Business
Integration between Coca-Cola East Japan Co., Ltd. and Coca-Cola West Co., Ltd.” on April 26, 2016. If further
disclosure concerning this matter shall be required and/or any impact to the forecast of this fiscal year expected,
we will disclose accordingly.

42. Matters relating to summary information (notes)(1) Change of important subsidiaries during the consolidated Q1 2016
There is no matter applicable.
(2) Application of particular accounting treatments to preparation of quarterly consolidated financial statements
There is no matter applicable.
(3) Changes in accounting policies, accounting estimate or restatement
Changes in accounting policies(Application of accounting standards regarding business combinations)
The Policy has been modified to apply the “Accounting Standard for Business Combination” (Accounting Standards
Board of Japan Statement No.21, Sept. 13, 2013. Hereinafter referred to as “Accounting Standard for Business
Combination”), the “Accounting Standard for Consolidated Financial Statements” (Accounting Standards Board of Japan
Statement No.22, Sept. 13, 2013. Hereinafter referred to as “Accounting Standard for Consolidated Financial
Statements”), and the “Revised Accounting Standard for Business Divestures” (Accounting Standards Board of Japan
Statement No.7, Sept. 13, 2013. Hereinafter referred to as “Revised Accounting Standard for Business Divestures”), etc.
from the first quarter of the consolidated accounting period concerned, and to post the difference due to this company’schange in equity of a subsidiary, when control of the subsidiary continues, as capital surplus and as expense in the
consolidated accounting year in which acquisition-related expenses were incurred. Furthermore, with regard to thebusiness combination executed at the beginning of the first quarter of the concerned consolidated accounting period or
thereafter, revisions to the allotment of the acquisition cost as a result of finalized accounting processes shall be reflectedin the Quarterly Consolidated Financial Statements of the quarterly consolidated accounting period in which the businesscombination date is referred. In order to reflect these changes, the Quarterly Consolidated Financial Statements and theConsolidated Financial Statements for the previous first quarter of the cumulative consolidated period and the previous
consolidated accounting year have been reclassified.
The application of the Accounting Standard for Business Combination etc. follows the transitional process defined in the
Accounting Standard for Business Combination Statement No.58 – 2(A), Accounting Standard for Consolidated Financial
Statements Statement No.44 -5 (4) and Revised Accounting Standard for Business Divestures Statement 57 – 4 (4) andis effective as of the start of the first quarter of the concerned consolidated accounting period and shall persist into the
future.
Moreover, there is no impact to the Quarterly Consolidated Financial Statements for the first quarter of the concerned
consolidated accounting period.

Changes in accounting estimates(Change of useful lives of fixed assets)
The useful lives of machinery and equipment used for production purposes had been previously defined as 10 years.
Prompted by events such as the creation of a systematic maintenance policy for the CCEJ group’s machinery andequipment and the progress of internalization of maintenance activities, as well as the commencement of a new
production structure for the entire CCEJ group in response to the legal entity integration of Sendai Coca-Cola BottlingCo., Ltd. effective January, 2016, we revisited the physical durability and lifecycle of production machinery, etc. As aresult, we have prospectively changed the useful lives to a range of 7 – 20 years, which more accurately reflects the
economical useful lives effective the first quarter of the concerned consolidated accounting period.
As a result of this change, gross profit increased by JPY376 million, and operating loss, ordinary loss and quarterly loss
before income taxes decreased by JPY376 million, respectively.

5(4) Additional information(Modification of the amount of deferred tax assets and deferred tax liabilities due to changes of corporate tax
rate)
The “Law Revising a Portion of the Income Tax Law” (2016, Law No. 15) and “Law Revising a Portion of Local Tax”
(2016, Law No. 13) were promulgated on March 31, 2016, which amends corporate tax rate, etc. from the consolidated
fiscal year starting on April 1, 2016 onwards.
Consequently, the effective statutory tax rates to be used for the calculation of deferred tax assets and deferred tax
liabilities shall be as follows, according to the periods for the settlement of temporary differences:
33.0% up to December 31, 2016
30.8% from January 1, 2017 to December 31, 2018
30.6% from January 1, 2019 onwards
As a result of these tax rate changes, deferred tax assets (the amount after subtracting deferred tax liabilities)
decreased by 121 million yen, Income Taxes-Deferred increased by 106 million yen, while Valuation Difference on
Available-for-Sale Securities increased by 50 million yen, respectively. Remeasurements of defined benefit plansdecreased by 65 million yen.

6

3. Consolidated financial statements(1) Consolidated Balance Sheets(MM yen)
FY2015

Q1 2016 YTD

AssetsCurrent assets
Cash and deposits

21,57824,651

Notes and accounts receivable-trade44,56540,771

Short-term investment securities

301

300

Merchandise and finished goods

34,35931,416Work in process－250

Raw materials and supplies

3,377

5,375

Others23,22723,920Allowance for doubtful accounts

-67

-81

127,343

126,604

Buildings and structures, net

45,86145,175

Machinery, equipment and vehicles,net

37,652

43,228

Sale equipment, net

66,112

65,484

Land

50,88350,883

Other, net

9,808

3,420

210,318

208,192

8,361

8,496

25,97324,936

Current assets
Noncurrent assets
Property, plant and equipment

Property, plant and equipment
Intangible assets
Investments and other assets
Other
Allowance for doubtful accounts

-225

-235

Investments and other assets

25,74824,701

244,428

241,390371,771367,994

Accounts payable-trade29,14928,017

Short-term loans payable

5,160

22,000Current portion of long-term loans payable

1,234

1,145

Income taxes payable

1,100

323

Provision for bonuses

1,364

1,829

Provision for directors' bonuses

37

22

Provision for environmental measures－

0

Provision for early contract termination

963

905

Noncurrent assets
AssetsLiabilities
Current liabilities

Asset retirement obligations

33

31

Other

43,62432,948Current liabilities

82,66887,225

Bonds payable

30,00030,000Long-term loans payable

2,520

2,160

Noncurrent liabilities

Provision for environmental measures

335

320

Provision for early contract termination

1,392

1,187

Net defined benefit liability

17,597

17,913

Asset retirement obligations

776

775

Other

5,533

1,486

Noncurrent liabilities

58,156

53,844140,825

141,069

Liabilities

7

(MM yen)
FY2015

Q1 2016 YTD

Net assets
Shareholders' equity
Capital stock

6,499

6,499

Capital surplus

157,313

157,313Retained earnings

68,45465,586

Treasury stock-1,178-1,178

Shareholders' equity

231,089

228,221

Valuation difference on available-for-sale securities

2,151

1,780

Deferred gains or losses on hedges

-463

-786

Accumulated other comprehensive income

Remeasurements of defined benefit plans-2,251-2,748

Total accumulated other comprehensive income-564-1,754

Subscription rights to shares

420

458

Net assets

230,945

226,924

Liabilities and net assets

371,771367,9948

(2) Consolidated Profit and Loss Statement and Comprehensive Profit and Loss Statement(Consolidated Profit and Loss Statement)(MM yen)Q1 2015 YTD

Q1 2016 YTD

Net sales

110,220

124,522

Cost of sales

58,84665,818Gross profit

51,37458,703

Selling, general and administrative expenses

53,31359,145

Operating loss

-1,939

-442

25

18

Non-operating income
Interest income
Dividends income

3

1

Share of profit of entities accounted for using equity method

21

35

Rent income

81

104

Gain on sales of valueable wastes

83

95

Other

45

74

260

329

Interest expenses

80

47

Loss on sales and retirement of noncurrent assets

50

472

Rent Expenses

12

19

Other

104

19

Non-operating income
Non-operating expenses

Non-operating expenses
Ordinary loss

248

559

-1,926-672

Extraordinary income
Gain on transfer of business

247－

Gain on sales of investment securities－

74

Gain on sales of noncurrent assets

2

1

Others99－

Extraordinary income

348

76

Extraordinary loss
Loss on sales and retirement of noncurrent assets

514

23

Lease contract cancellation penalty

174

334

Restructuring cost

93

119

Cost of defective work

235－

Integration expenses

39－

Others39

31

Extraordinary loss

1,096

509

Loss before income taxes-2,674-1,105

Income taxes-current

267

509

Income taxes-deferred-1,397-776

Income taxes-1,130-267

Net loss-1,543-838

Net loss belonging to parent company shareholders-1,543-838

9

(Consolidated Comprehensive Profit and Loss Statement)(MM yen)Q1 2015 YTD

Q1 2016 YTD-1,543

-838

781

-370

4,123

-496

-195

-322

Other comprehensive income

4,708-1,190Quarterly comprehensive income

3,165-2,0283,165-2,028Net loss
Other comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans
Share of other comprehensive income of associates accounted for using
equity method

Quarterly comprehensive income attributable to owners of the parent company

10

(3) Notes relating to quarterly consolidated financial statements(Notes relating to assumptions for the going concern)
None(Notes in the event of significant changes in amount of shareholders’ equity)
None(Segment information and others)(Segment Information) January 1 – March 31, 2015
The Group has sole segment of beverage business, thus the description is omitted.
(Segment Information) January 1 – March 31, 2016
The Group has sole segment of beverage business, thus the description is omitted.
(Important subsequent event)(A non-binding Memorandum of Understanding to proceed with discussions/review of a business integration between
CCEJ and Coca-Cola West Co., Ltd. (hereinafter referred to as “CCW”))
CCEJ and CCW agreed to proceed with discussions/review of a business integration (hereinafter referred to as “thebusiness integration”) and have entered into a non-binding Memorandum of Understanding between the two parties
based on the resolution in the respective Board of Directors meeting held April 26, 2016.
The execution of the business integration is contingent upon the following: both parties signing definitive agreements
regarding the business integration; required approval being obtained from the shareholders’ meeting of the twoparties; required permits, licenses, and other approvals being obtained from authorities concerned with regard to thebusiness integration.
1. Background and Objective etc. of the Business Integration
In the Japanese soft drinks industry, the requirements of customers and consumers have continued to evolve, with achallenging business environment driven by fierce competition among the industry players. In this environment, thetwo parties have been reinforcing ties as entities belonging to the Coca-Cola system in Japan, and have agreed toproceed with discussions/review toward business integration in the spirit of equal partnership.
Through this integration, the combined entity would be better positioned to drive future growth in the soft drinks
industry, react to changes in the market environment, respond to customer and consumer needs, and acceleratemarket competition.

Also, the combined entity would build competitive advantage through the integration andaccelerate the transformation of the Coca-Cola system in Japan. The two parties expect to maximize the enterprisevalue of the combined entity and establish one of the leading Coca-Cola bottlers in the world by improving its supply
chain for efficient manufacturing and logistics operation, and integrating and evolving its systems and processes acrossthe combined entity.
2. Form of Business Integration and Approach, Integration Ratio, Business Structure Following the Integration,
Timeline, etc.
The form of business integration and approach, integration ratio, name of the integrated company, location of
headquarters, representatives, board compositions, organization, timeline, etc. shall be determined by the conclusionof the definitive agreements through discussions/review by both parties in accordance with the establishment of an
Integration Preparation Committee as well as in consideration of the results of the due diligence to be conductedhereafter.

11