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, 2015 (Q1 2015YTD)
May 12th, 2015
Listed Company Name:

Coca-Cola East Japan Co., Ltd.

Stock Exchange:

Security Code:

2580

URL:

http://www.ccej.co.jp

Name:

Calin Dragan

Name:

Asako Aoyama

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 14th, 2015

report:Tokyo Stock Exchange－

dividend 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 31st, 2015 (January 1st, 2015 – March31st, 2015)(1)
Consolidated Results of Operations (YTD)(Percentages show year-on-year changes)
Net Sales

Operating Income

Million Yen%

Ordinary Income

Million Yen%

Q1 2015 YTD
110,220-1.5-1,939－Q1 2014 YTD
111,915 181.3-5,584－(Note) Comprehensive income: Q1 2015 YTD 3,165Million Yen (－%)

Net Income%

Million Yen-1,926－-1,543-5,520－-5,075
Q1 2014 YTD -5,281 Million Yen (－%)

Net Income per Share(Fully Diluted)

Net Income per Share
Q1 2015 YTD
Q1 2014 YTD

Million Yen

Yen

Yen

-12.75-41.93

－
－

.

(2)

Consolidated Financial Position
Total Assets

Net Assets

Million Yen

Equity Ratio

Million Yen%

215,968
213,75464.5
62.3

Q1 2015 YTD
334,449
FY2014
342,672(Note) Shareholders’ equity: Q1 2015 :215,674 million yen
FY2014 : 213,530 million yen
2．Dividends
End of Q1Yen

FY2014FY2015FY2015 (Forecast)－－End of Q2

Dividend Per Share
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

%

－
－

3．The Consolidated Earnings Forecasts for the Fiscal Year Commencing January 1st and Ending December 31st ,2015(Percentages show year-on-year changes)

Operating
IncomeNet Sales
Full-Year

Ordinary Income

Net Income
per Share

Net Income

Million Yen%

Million Yen%

Million Yen%

Million Yen%

Yen

571,900

9.3

15,80068.9

15,800

64.5

8,300

141.7

66.19

(Note) Revisions to the Earnings forecasts disclosed most recently

Yes

Notes:(1) Changes of important subsidiaries during consolidated Q1 2015 (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

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)None(iii) Changes in accounting estimatesNone(iv) Restatement

None(4) Number of Issued Shares (Common Shares)(i) Number of the issued shares at the end of
Q1 2015
the period (including treasury stock)(ii) Number of the treasury stock at the end of
Q1 2015
the period(iii) Average number of the shares during theQ1 2015
period (accumulated total)

121,898,978 shares

FY 2014

121,898,978 shares

855,423 shares

FY 2014854,430 shares

121,044,122 shares

Q1 2014 YTD

121,047,933 shares*Statement regarding the status of the quarterly review
This summary of financial statements for the first quarter of the year ending December 31st, 2015 fall 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 5 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, 2015 ...........................2(1) Qualitative information on the consolidated operating results .........................................................................2(2) Qualitative information on the consolidated financial positions .......................................................................5(3) Qualitative information on the consolidated earnings forecast ........................................................................5
2. Matters relating to summary information (notes) ...................................................................................................6(1) Change of important subsidiaries during the consolidated Q1 2015 ..............................................................6(2) Application of particular accounting treatments to preparation of quarterly consolidated financial
statements ...............................................................................................................................................................6(3) Changes in accounting policies, accounting estimate or restatement ............................................................6
3. Quarterly consolidated financial statements ..........................................................................................................6(1) Quarterly consolidated balance sheets ............................................................................................................7(2) Consolidated profit and loss statement and comprehensive profit statement (Consolidated profit and loss
statement) ................................................................................................................................................................9(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(Significant subsequent events)........................................................................................................................ 111

1. Qualitative information on results for the first quarter of the year ending December 31, 2015
(1) Qualitative information on the consolidated operating results
Coca-Cola East Japan Co., Ltd. (CCEJ) today announced its consolidated financial results for the first quarter2015 (January 1, 2015 to March 31, 2015)
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 Tuesday, May 12,2015 at 6:30 p.m. (JST). The webcast is available both live and on demand at http://www.investor.ccej.co.jp.
Key Messages
・

Q1 results impacted by the cycling of prior year growth ahead of April 1, 2014 tax increase. Volume
and revenue both declined 1.5%, reflecting improved price/mix trends during the quarter.

・Six consecutive quarters of volume and value share growth, despite a challenging environment. Value
share grew ahead of volume share.

・Completed acquisition of Sendai Coca-Cola Bottling Company and integration of eight “mixed” vending
operation subsidiaries as of April 1, 2015.

Industry Update
The first quarter (January to March, 2015) was characterized by cycling the impact of strong volume growthahead of the April 1, 2014 consumption tax hike.

As a result, total nonalcoholic ready-to-drink (NARTD)

beverage industry volumes are expected to be down in the quarter. In this challenging environment, Coca-Cola
East Japan achieved continued market share growth both in terms of volume and value.
Integration Update
CCEJ was formed after the integration of the four Kanto and Tokai region Coca-Cola bottling companies on July
1, 2013, and the subsequent acquisition of Sendai Coca-Cola Bottling Company on April 1, 2015. As part of thecompany’s mid-term strategic plan, the One+ Roadmap for Growth, we are focused on transforming our business,with a strong focus on people, process and system capabilities. There are many visible signs of progress tohighlight in the first quarter, including the following:・Completed the acquisition of Sendai Coca-Cola Bottling (as of April 1, 2015)

・Completed the integration of eight “mixed” vending subsidiary companies (as of April 1, 2015)

・

Introduction of Phase One of new Enterprise Resource Planning (ERP) system “CokeOne+”, afoundation for further strategic transformation (as of April, 2015)

Operating Review
Our quarterly operating results during the year will likely exhibit seasonal variation, as the demand fornonalcoholic ready-to-drink beverages tends to be concentrated in the summer months. Sales and profits
consequently are expected to be lower in the first quarter than subsequent quarters.
First quarter total BAPC (Bottler Actual Physical Cases) sales volume was negative 1.5%, however, we continued
to grow both volume and value share in total NARTD beverages, led by new products, etc.
Volume growth by channel was led by the convenience store channel (+14%) and eating & drinking (+4%)
channels as a result of continued successful product launches and new customer development. Volume in the
supermarket (-9%) and drug & discounter (-5%) channels was pressured as we cycled the rush in demand prior
to the consumption tax increase in the prior year. Vending channel volume also declined (-2%), while indoor
vending volume for Coca-Cola vending machines grew +1%.
2

First quarter sparkling beverage volume declined 5%. The introduction of Coca-Cola Life in March helped topartially offset the cycling of strong volume growth in sparkling beverages in the prior year quarter.

In thehydration category (tea, water, and sports drinks), unsweetened teas and water volume grew 5% and 2%,
respectively; however, sports drinks volume declined 16%. Unsweetened tea growth was led by Ayataka green
tea and Karada Sukoyakacha W, our FOSHU (Food for Specific Health Use) tea brand, as well as the newly
launched Tsumugi – Japanese Oolong Tea.

The iLohas water brand continued to perform well and also

benefited from the 1.555L package and iLohas sparkling variants in plain and lemon flavors, launched in 2014.
Coffee volume continued to grow 2%, led by the introduction of new products such as the Georgia European
series, mainly in the convenience store and vending channels.
We have a strong marketing and innovation calendar planned for second quarter and beyond together with ourpartners at Coca-Cola Japan (CCJC). This year, we celebrate the 100-year anniversary of the Coca-Cola bottle,
a unique and instantly recognizable icon of the Coca-Cola brand. To mark this anniversary, we have exciting
plans to activate various anniversary campaigns throughout the year. As a second wave of this year-longcelebration, we launched the Share-a-Coke “Name Bottle” campaign, renewing and strengthening last year’s
successful campaign. We also plan to launch a number of exciting new products as we approach our peakdemand season. We are continuing to partner with key customers by launching customer-exclusive branded
products. In addition, we renewed Aquarius Zero in May following the renewal of the Aquarius brand in March.
We also introduced a unique and refreshing new water, iLohas Tomato, lightly flavored with the essence oftomatoes harvested locally in Kumamoto Prefecture.

3

Financial Review
Reported Results
First Quarter 2015 (January to March)
In Million JPY

2014

2015

% Change

Net Sales

111,915

110,220-1.5%

Operating Income (Loss)(5,584)(1,939)-Net Income (Loss)(5,075)(1,543)

-

2014

2015

Comparable

Comparable% Change

Volume** (BAPC, in thousand)

59,88459,010-1.5%

Net Sales

111,915

110,220-1.5%

Operating Income (Loss)(5,176)(1,598)-Net Income (Loss)(3,977)(880)-

Comparable* Results
First Quarter 2015 (January to March)
In Million JPY, except volume* Comparable: Presentation of results after excluding exceptional items such as charges, gains, etc. which are viewed bymanagement 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.
** As announced in Q4 2014 results, volume conversion rates across legacy bottler entities were standardized in 2015 as partof the implementation plan for the new ERP system, CokeOne+. PY variance and 2014 volume shown above also reflect
this change.

First quarter 2015 reported and comparable net sales revenue was JPY 110,220 million (down 1.5% comparedto the prior year period), mainly attributable to the volume decline due to the cycling of increased consumer
demand ahead of the consumption tax increase last year. The decrease of revenue was in line with volume
performance in the quarter, reflecting improving price/mix trends.
First quarter reported operating loss was JPY 1,939 million (reported operating loss of 5,584 million) andcomparable operating loss was JPY 1,598 million (comparable operating loss of 5,176million in the prior year
period) primarily reflecting the cycling of a change in accounting policy and estimates related to the depreciation
method for fixed assets and the related write-off of residual value of existing tangible fixed assets during the firstquarter of last year.
We reported a first quarter net loss of JPY 1,543 million (net loss of 5,075 million in the prior year period) andcomparable net loss of JPY 880 million (comparable net loss of 3,977 million in the prior year period) reflecting
the above cycling of prior year items.

4(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 334,449 million, a decrease of JPY 8,222 million from the end of theprevious fiscal year. This is mainly due to a decrease of cash and deposits, etc., which was partially offset by anincrease in sales equipment.
Liabilities at the end of this quarter were JPY 118,480 million, a decrease of JPY 10,436 million from the end of
previous fiscal year. This is mainly due to a decrease of net defined benefit liabilities, etc.
Net assets at the end of this quarter were JPY 215,968 million, an increase of JPY 2,214 million. This is primarily
due to a decrease in retained earnings by paying year-end dividends, etc., and was offset by an increase ofvaluation and translation adjustments by reporting remeasurements of defined benefit plans.
(3) Qualitative information on the consolidated earnings forecast
The Company revised its forecast for the fiscal year ending December 2015 because of the acquisition of Sendai
Coca-Cola Bottling as of April 1, 2015, etc. Also, as of April 1, the company concluded a share exchange with
Sendai Coca-Cola Bottling Co., Ltd. as part of the integration of the two companies, and the number of shares
outstanding of the company increased by 5,781,166 shares.

Net income per share in our Consolidated

Earnings Forecasts was calculated using this revised number of shares outstanding.

52. Matters relating to summary information (notes)(1) Change of important subsidiaries during the consolidated Q1 2015
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(Application of accounting standards regarding retirement benefits)
The “Accounting Standard for Retirement Benefits” (ASBJ Statement No. 26, issued on May 17, 2012, hereinafterreferred to as “Retirement Benefit Accounting Standard”) and “Guidance on Application of Accounting Standard
for Retirement Benefits” (ASBJ Guidance No. 25, issued on March 26, 2015 hereinafter referred to as “Retirement
Benefit Guidance”) have been applied from the current consolidated accounting period of the first quarter withrespect to the provisions in the main text of paragraph 35 of the Retirement Benefit Accounting Standard and themain text of paragraph 67 of the Retirement Benefit Guidance so as to revise the calculation methods of theretirement benefit liabilities and service cost; switch from a straight-line basis to benefit-formula basis for theattribution of expected retirement benefit payment amount; and amend the way the discount rate is determinedfrom the current method of applying the approximate number of years of employees’ average remaining service
period as the base period of bond to a new method of employing the single weighted-average discount rate inwhich the expected period of retirement benefits payment and amount per such period are reflected.
Concerning the application of the Retirement Benefits Accounting Standard, we are acting in accordance withthe transitional handling defined in paragraph 37 of the Retirement Benefit Accounting Standard, and as of the
beginning of the current consolidated accounting period of the first quarter, the impact resulting from the changes
in the calculation methods of retirement benefits liabilities and service cost has been included in the retained
earnings.
Consequently, as of the beginning of the current consolidated accounting period of the first quarter, the liabilities
for retirement benefits have been decreased by 1,425 million yen and the retained earnings has been increased
by 917 million yen. In addition, the impact to operating loss, ordinary loss, and quarterly net loss is minor.

63. Quarterly consolidated financial statements(1) Quarterly consolidated balance sheets(MM yen)
FY2014

Q1 2015 YTDAssetsCurrent assets
Cash and deposits

24,982

15,768Notes and accounts receivable-trade36,611

34,909

Short-term investment securities

1,204

1,203

Merchandise and finished goods

31,43330,596Work in process－

119

Raw materials and supplies

2,750

4,149

Other

31,08332,255

Allowance for doubtful accounts

-98

-67

127,969

118,935

Buildings and structures, net

38,12437,753

Sale equipment, net

48,44554,040Land

45,642

45,628Other, net

47,22946,136

Property, plant and equipment

179,442

183,560

5,488

6,686

29,96525,500Current assets
Noncurrent assets
Property, plant and equipment

Intangible assets
Investments and other assets
Other
Allowance for doubtful accounts

-193

-233

Investments and other assets

29,77225,267214,703

215,514342,672

334,449

Accounts payable-trade22,94424,192

Short-term loans payable

16,00020,000

Income taxes payable

2,425

211

Provision for bonuses

1,945

1,858

Noncurrent assets
AssetsLiabilities
Current liabilities

Provision for directors' bonuses

37

18

Provision for early contract termination

556

645

Other

37,88035,674Current liabilities

81,79182,601

14,00014,000Noncurrent liabilities
Bonds payable
Provision for directors' retirement benefits
Provision for environmental measures

2

－

478

468

Provision for early contract termination

2,187

1,952

Net defined benefit liability

18,68911,367

Other

11,7688,090

Noncurrent liabilities
Liabilities

7

47,12635,879128,917

118,480

(MM yen)
FY2014

Q1 2015 YTD

Net assets
Shareholders' equity
Capital stock

6,499

6,499

Capital surplus

143,134

143,134

Retained earnings

66,83764,275

Treasury stock-1,170-1,173

Shareholders' equity

215,301

212,736

1,644

2,425

302

106

Remeasurements of defined benefit plans-3,717405

Valuation and translation adjustments-1,7702,938

Valuation and translation adjustments
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

Subscription rights to shares

223

294

Net assets

213,754

215,968

Liabilities and net assets

342,672

334,4498

(2) Consolidated profit and loss statement and comprehensive profit statement (Consolidated profit and loss
statement)(MM yen)Q1 2014 YTD

Q1 2015 YTD

Net sales

111,915

110,220

Cost of sales

61,552

58,846Gross profit

50,362

51,374

Selling, general and administrative expenses

55,94753,313Operating loss

-5,584-1,939Interest income

39

25

Dividends income

193

Equity in earnings of affiliates

23

21

Rent income

74

81

Gain on sales of valueable wastes

65

83

Proceeds from miscellaneous income

46

45

268

260

Interest expenses

94

80

Rent expenses

34

12

Loss on sales and retirement of noncurrent assets

46

50

Miscellaneous loss

28

104

Non-operating expenses

205

248

-5,520-1,926

Gain on transfer of business－

247

Gain on sales of shares of subsidiaries

69－

Insurance income

100

79

Gain on sales of noncurrent assets

162

Non-operating income

Non-operating income
Non-operating expenses

Ordinary loss
Extraordinary income

Others

0

19

185

348

Loss on sales and retirement of noncurrent assets

90

514

Impairment loss

18

－

1,445

93

Cost of defective work－

235

Integration expenses－

39

Extraordinary income
Extraordinary loss

Restructuring cost

Others3

213

Extraordinary loss

1,557

1,096

Loss before income taxes-6,892-2,674

Income taxes-current

413

267

Income taxes-deferred-2,229-1,397

Income taxes-1,816-1,130Loss before minority interests-5,075-1,543Net loss-5,075-1,5439

Consolidated comprehensive profit statement(MM yen)Q1 2014 YTD

Loss before minority interests

Q1 2015 YTD-5,075-1,543-206

781

Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

2-

Remeasurements of defined benefit plans
Share of other comprehensive income of associates accounted for using
equity method
Other comprehensive income

－

4,123

0

-195

Comprehensive income
Comprehensive income attributable to owners of the parent company

10

-205

4,708

-5,281

3,165-5,281

3,165

(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)
The Group has sole segment of beverage business, thus the description is omitted.
(Significant subsequent events)
CCEJ conducted a share exchange to make CCEJ the parent company and Sendai Co. its wholly-owned subsidiary basedon the approval at their respective Boards of Directors on December 16th, 2014.

And the share exchange tookeffect on April 1, 2015.
1. Purpose of the Share Exchange
The Share Exchange will drive greater efficiency and speed in serving customers across the Kanto and East Japan regions.
2. Outline of the Share Exchange(1) The method
In the Share Exchange, CCEJ became the wholly owning parent company in share exchange and Sendai Co. became thewholly owned subsidiary in share exchange, and CCEJ issued 5,781,166 shares of common stock for the Share Exchange.
(2)Effective date of the Share Exchange
April 1st, 201511