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 Third Quarter of the Year Ending December 31st, 2015 (Q3 2015YTD)
November 6th, 2015
Listed Company Name:
Security Code:Coca-Cola East Japan Co., Ltd.
2580
Representative Director,
Representative:
title
President
Senior Executive Officer
Contact:
title
Finance Function
Scheduled date of submission of quarterly
November 9, 2015
report:Preparation of supplementary documents for quarter results:
Quarterly earnings results presentation/conference:

Stock Exchange:
Tokyo Stock Exchange
URL:
http://www.ccej.co.jp
Name:

Calin Dragan

Name:

Asako AoyamaTEL:
03 (5575) 3859

Schedule date of start ofdividend payment:
Yes
Yes

Not Applicable(Amounts of less than one million yen are rounded down)

1． Consolidated Financial Results for the Third Quarter Ending September 30, 2015 (January 1, 2015 – September 30, 2015)(1)
Consolidated Results of Operations (YTD)(Percentages show year-on-year changes)
Net Sales

Operating Income

Million Yen%

Ordinary Income

Million Yen%

Million Yen

Q3 2015 YTD
425,530
6.2
7,689
34.1
Q3 2014 YTD
400,601
62.3
5,732
-29.0
(Note) Comprehensive income: Q3 2015 YTD 8,126Million Yen (465.6%)

7,780
5,985
Q3 2014 YTD

Million Yen

Yen

Yen

33.47
7.41

33.43
7.41

.

(2)

Consolidated Financial Position
Total Assets

Net Assets

Million Yen

Equity Ratio

Million Yen%

Q3 2015 YTD
383,169
232,470
FY2014
342,672
213,754(Note) Shareholders’ equity: Q3 2015 : 232,091 million yen
FY2014 : 213,530 million yen

60.6
62.3

2．Dividends
End of Q1Yen

FY2014FY2015FY2015 (Forecast)－－End of Q2

Dividend Per Share
End of Q3

Yen

Yen

16.00
16.00

(Note) Revisions to the dividend forecast disclosed most recently0Year-end

Annual

Yen

yen

－

16.00

32.00

－

16.00

32.00

No

%

30.0
4,181 366.0-26.8
897 -94.2
1,436 Million Yen (-91.0%)

Net Income per Share(Fully Diluted)

Net Income per Share
Q3 2015 YTD
Q3 2014 YTD

Net Income%

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

562,500

7.5

10,60013.3

10,500

9.3

5,800

68.9

46.25

(Note) Revisions to the Earnings forecasts disclosed most recentlyNo

Notes:(1) Changes of important subsidiaries during consolidated Q3 2015 YTD (Changes of specificsubsidiaries accompanied by changes in the consolidation scope)

Yes

Sendai Coca-Cola Bottling Company(2) Application of particular accounting treatments to the preparation of quarterly consolidated financial
statements(3) Changes in accounting policies and changes or restatement of accounting estimates(i) Changes in accounting policies accompanied by revisions of accounting standards, etc.
(ii) Changes in accounting policies other than (i)(iii) Changes in accounting estimates(iv) Restatement(4) Number of Issued Shares (Common Shares)(i) Number of the issued shares at the end of
Q3 2015
the period (including treasury stock)(ii) Number of the treasury stock at the end of
Q3 2015
the period(iii) Average number of the shares during theQ3 2015
period (accumulated total)

None

Yes
None
None
None

127,680,144 shares

FY 2014

121,898,978 shares

855,159 shares

FY 2014854,430 shares

124,918,547 shares

Q3 2014 YTD

121,048,892 shares*Statement regarding the status of the quarterly review
This summary of financial statements for the third quarter of the year ending December 31st, 2015 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 5 of the attached material of the summary.

1

Contents of the Attached Materials

1. Qualitative information on results for the third 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) ...................................................................................................5(1) Change of important subsidiaries during the consolidated Q3 2015 YTD......................................................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
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) .................................................................................................................... 111

1. Qualitative information on results for the third 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 third quarterand year-to-date 2015 (January 1, 2015 to September 30, 2015).
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 conference call and webcast on
Monday, November 9, 2015 at 1:30 p.m. (JST).

The webcast is available both live and on demand at

http://investor.ccej.co.jp.
Key Messages
・Growth in year-to-date volume, revenue and operating income, including the benefit of the Sendai CocaCola Bottling Company (Sendai) integration in the second quarter・

Continuously improving gross margins, as we continue to deliver manufacturing and procurementsavings・Year-to-date market share negative, partly attributable to our decision to pull back on promotional pricing
in supermarkets as well as competitor new product launches

・

Full-year operating income growth forecast revised to +13% on October 7. Task forces established toaddress priority areas (vending, synergies and cost structure) for recovery and growth

Industry Update
Impacted by changeable weather over the summer, total nonalcoholic ready-to-drink (NARTD) beverage industry
volumes were generally positive in the third quarter, with hot weather through early-August and unseasonably
cool and rainy weather for the remainder of the quarter. At the same time, strong competition has accelerated
with many players introducing new products as well as continued aggressive promotional activities in themarketplace.
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 on April 1, 2015. As part of the company’s mid-term strategicplan, the One+ Roadmap for Growth, we are focused on transforming our business, with a strong focus on people,
processes and system capabilities. Integration progress in the third quarter includes:
・Commissioned one new production line in Iwatsuki and a new bottle can filler in Tokai・

Stabilized initial operation of new Enterprise Resource Planning (ERP) system “CokeOne+”・Continued smooth integration of Sendai people, processes and systems into CCEJ

Operating Review
Year-to-date total BAPC (Bottler Actual Physical Cases) sales volume was positive 6.8% reflecting the integrationof Sendai in the second quarter. Organic volume performance excluding Sendai was even year-to-date.
Year-to-date volume performance by channel was impacted by weaker-than-expected performance in thevending channel, due to a continued shift of consumers' purchasing behavior across channels and inclement
weather, as well as continued pricing pressure. However, driven by the Sendai integration as well as good
execution in the marketplace and new customer development, volume grew across all channels:, eating &drinking (+17%), convenience store (+14%), drug & discounter (+8%), supermarket (+3%) and vending (+4%).
Year-to-date sparkling beverage volume grew 4%. In the hydration category, unsweetened teas, water and sports2drinks volume grew 11%, 4% and 4%, respectively. Coffee volume continued to grow 11%, led by the introductionof new products. Our total NARTD beverage share declined 0.4 points year-to-date as we pulled back on lessprofitable promotional activity while strong competitive product launches and price discounting continued. We
gained share in the cola, tea and sports drink categories year-to-date and we held coffee share at even.
Third quarter total BAPC sales volume grew 9% year-on-year mainly driven by the integration of Sendai. Organic
volume was slightly negative in the quarter.
Similar to our year-to-date performance, volume by channel in the third quarter was impacted by weaker-thanexpected performance in the vending channel. However, led by the Sendai integration, volume grew across allchannels: eating & drinking (+21%), drug & discounter (+11%), convenience store (+10%), vending (+7%) andsupermarket (+6%).
Sparkling beverage volume grew +8% in the third quarter. In the hydration category, unsweetened teas andsports drinks volume grew 10% and 7%, respectively, however, water was slightly negative as we pulled back on
promotions for large-pack 2L water.

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 Tsumugi – Japanese Oolong
Tea, which was newly launched in the first quarter, and customer exclusive branded product launched in thesecond quarter. Coffee volume continued to grow, up 17% in the third quarter, supported by the introduction of
new products such as customer exclusive-branded products, mainly in the convenience store channel. We
gained share in the coffee, tea and sports drink categories in the quarter.
We have a solid marketing and innovation calendar planned for the fourth quarter together with our partners at
Coca-Cola Japan (CCJC), including extensive deployment of hot beverage SKUs for the winter across multiple
channels. In the vending channel, we are raising the temperature of hot beverages by two degrees (Celsius) in
response to extensive consumer testing to provide warmer hot beverages during the colder winter months. In
the coffee category, we introduced a new product, “Georgia Premium”, to celebrate the 40th anniversary campaign
of Georgia brand coffee in Japan. Additionally, together with raising the temperature of hot beverages in thevending channel, we launched a new campaign for Georgia coffee, “Warmer than normal winter”. Also, thisyear, we have been celebrating the 100-year anniversary of the Coca-Cola bottle, a unique and instantly
recognizable icon of the Coca-Cola brand. As part of this year-long celebration, we have launched our “CocaCola Winter Song Bottle Campaign” for Christmas and the New Year holiday season.

3

Financial Review
All results below include Sendai from Q2 2015.

Reported Results
Year-To-Date 2015 (January to September)
In Million JPY

2014

2015

% Change

Net Sales

400,601

425,530

+6.2%

5,732

7,689

+34.1%

897

4,181

366.0%

2014

2015% Change

Volume** (BAPC, in thousand)

215,923

230,577+6.8%

Net Sales

Operating Income
Net Income
Comparable* Results

Year-To-Date 2015 (January to September)
In Million JPY, except volume

400,601

425,530+6.2%

Operating Income

6,587

8,719

+32.4%Net Income

3,356

5,940

+77.0%

2014

2015% Change

Third Quarter 2015 (July to September)
In Million JPY, except volume

Volume** (BAPC, in thousand)

83,31390,783+9.0%

Net Sales

152,106

163,480+7.5%

Operating Income

7,810

6,078

-22.2%Net Income

4,899

3,377

-31.1%* 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.
** 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.

Year-to-date reported and comparable net sales revenue was JPY 425,530 million (positive 6.2% compared tothe prior year period), mainly attributable to the integration of Sendai as of April 1, 2015. Third-quarter revenue
grew 7.5% year-on-year.
Year-to-date reported operating income was JPY 7,689 million (positive 34.1% compared to the prior year period)
mainly attributable to the integration of Sendai and reflecting the cycling of a change in accounting policy andestimates related to the depreciation method for fixed assets and the related write-off of residual value of existingtangible fixed assets during the first quarter of last year. Third quarter comparable operating income was negative
22.2%, mainly due to lower organic sales volume and price/mix as well as higher logistics and depreciation
expenses and continued on-plan investments in DME (Direct Marketing Expenses).
We reported a year-to-date net income of JPY 4,181 million (positive 366.0% compared to the prior year period) ,mainly attributable to lower income taxes due to the increase of deferred tax assets by merging previously nonconsolidated subsidiaries into FV East Japan Co., Ltd. as of April 4, 2015.

4

(2) Qualitative information on the consolidated financial positions
Assets at the end of this quarter were JPY 383,169 million, an increase of JPY 40,497 million from the end of theprevious fiscal year. This is attributable due to an increase of Accounts Receivable-Trade reflecting the growth inrevenue. In addition, Merchandise and Finished Goods and Raw Material and Supplies increased as a resultof our focus on bringing more production and logistics volume in-house. Sales Equipment also increased as aresult of continued placement of vending machines and coolers in the marketplace. All of the above also reflect
the impact of the integration of Sendai from the second quarter of this year.
Liabilities at the end of this quarter were JPY 150,698 million, an increase of JPY 21,781 million from the end of
previous fiscal year. This is mainly due to an increase of Short-term Loans Payable, an increase of AccountPayable-Trade due to the increase of Merchandise and Finished Goods, Raw Material and Supplies, etc. The
integration of Sendai also is reflected in the overall year-on-year increase in liabilities.
Net assets at the end of this quarter were JPY 232,470 million, an increase of JPY 18,716 million from the endof previous fiscal year. This is primarily due to the increase of Capital Surplus by issuing new shares for the
integration of Sendai.

(3) Qualitative information on the consolidated earnings forecast
On October 7, 2015, the company revised the forecast for the fiscal year ending December 2015, issued on May
12, 2015. Our full-year outlook decreased versus plan mainly driven by weaker-than-expected performance inthe vending channel, impacted by a continued shift of consumers' purchasing behavior across channels andinclement weather, as well as continued pricing pressure. As a result, the Company estimates our full-year
results will not reach the forecast announced on May 12, 2015 and we have revised the full-year forecast
accordingly.
The comparable revised full-year forecast excluding one-time items are shown below for your reference
Revenue

Comparable Operating Income

Comparable Net Income

2015 full-year forecast

562,500

11,937

8,305

2014 full-year result

523,299

10,474

5,975

+7.4%

+14.0%+39.0%

Variance

2. Matters relating to summary information (notes)(1) Change of important subsidiaries during the consolidated Q3 2015 YTD
Since the second quarter of the current fiscal year, the company has newly added 5 entities into its
consolidation scope as a result of the acquisition of Sendai Coca-Cola Bottling Co., Ltd, through shareexchange. Sendai Coca-Cola Bottling Co., Ltd. is our specific wholly-owned subsidiary.
(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 previous consolidated accounting period of the first quarter with5

respect 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 previous 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 the impact
resulting from the changes in the calculation methods of retirement benefits liabilities and service cost has been
included in the retained earnings at the beginning of this fiscal year.
Consequently, the liabilities for retirement benefits have been decreased by 1,425 million yen and the retained
earnings has been increased by 917 million yen at the beginning of this fiscal year. The impact to year-to-date
operating income, ordinary income and net income before taxes is minor.

63. Consolidated financial statements(1) Consolidated Balance Sheets78

(2) Consolidated Profit and Loss Statement and Comprehensive Profit and Loss Statement(Consolidated Profit and Loss Statement)9

(Consolidated Comprehensive Profit and Loss Statement)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)
Our company underwent a stock exchange effective April 1, 2015, having our company as the parent company and Sendai
Coca-Cola Bottling Co., Ltd. as our wholly-owned subsidiary. Consequently, the capital surplus is increased by 14,175million
yen in this third quarter consolidated period and capital surplus balance is 157,313million yen at the end of this third quarter
consolidated accounting period.
(Segment information and others)(Segment Information) January 1 - September 30, 2014
The Group has sole segment of beverage business, thus the description is omitted.
(Segment Information) January 1 – September 30, 2015
The Group has sole segment of beverage business, thus the description is omitted.

11