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 Second Quarter of the Year Ending December 31st, 2015 (Q2 2015YTD)
August 6th, 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 ofAugust 7, 2015

report:Tokyo Stock Exchange

September 7, 2015

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 Second Quarter Ending June 30th, 2015 (January 1st, 2015 – June 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

Q2 2015 YTD
262,0495.5
1,345－
Q2 2014 YTD
248,495 179.7-1,873－(Note) Comprehensive income: Q2 2015 YTD 5,868 Million Yen (－%)

1,383
-1,615
Q2 2014 YTD

Million Yen－
988－-2,928-2,821 Million Yen (－%)

Net Income per Share(Fully Diluted)

Net Income per Share
Q2 2015 YTD
Q2 2014 YTD

Net Income
%

Yen

Yen

7.98
-24.19

7.97
－

.

(2)

Consolidated Financial Position
Total Assets

Net Assets

Million Yen

Equity Ratio

Million Yen%

232,205
213,75456.8
62.3

Q2 2015 YTD
408,394
FY2014
342,672(Note) Shareholders’ equity: Q2 2015 : 231,860 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

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

%

－
－

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 recentlyNo

Notes:(1) Changes of important subsidiaries during consolidated Q2 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

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
Q2 2015
the period (including treasury stock)(ii) Number of the treasury stock at the end of
Q2 2015
the period(iii) Average number of the shares during theQ2 2015
period (accumulated total)

127,680,144 shares

FY 2014

121,898,978 shares

856,615 shares

FY 2014854,430 shares

123,950,109 shares

Q2 2014 YTD

121,049,880 shares*Statement regarding the status of the quarterly review
This summary of financial statements for the second 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 second 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(i) The financial positions at the end of this quarter ...........................................................................................5(ii) The cash flow 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 Q2 2015 YTD......................................................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. 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) Consolidated Statement of Cash Flow ........................................................................................................... 11(4) Notes relating to quarterly consolidated financial statements ...................................................................... 13(Notes relating to assumptions for the going concern) ................................................................................... 13(Notes in the event of significant changes in amount of shareholders’ equity) ............................................. 13(Segment information and others) ................................................................................................................... 13(Business combination, etc.) ............................................................................................................................ 13

1

1. Qualitative information on results for the second 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 second quarterand year-to-date 2015 (January 1, 2015 to June 30, 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 conference and webcast on Friday, August 7, 2015
at 3 p.m. (JST). The webcast is available both live and on demand at http://investor.ccej.co.jp.
Key Messages
・Completed acquisition of Sendai Coca-Cola Bottling Company (hereinafter referred to as “Sendai”) andintegration of eight “mixed” vending operation subsidiaries as of April 1, 2015

・

The second quarter (April 1, 2015 to June 30, 2015, hereinafter referred to as “Q2”) revenue year-onyear growth was positive 11%, mainly due to the integration of Sendai, as well as continued emphasis
on revenue growth management and the cycling of last year’s demand decrease after the consumption
tax hike

Industry Update
Q2 was characterized by cycling of the lower demand after the consumption tax hike in April 2014. As a result,
total nonalcoholic ready-to-drink (NARTD) beverage industry volumes were positive in the quarter. Strong
competition in the market continued, with all players introducing new products as well as aggressive promotional
activities in the marketplace.
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,
process and system capabilities. There are many visible signs of progress to highlight in the second quarter,
including the following:・Commissioned two new production lines in Ebina and Ibaraki Plant

・Completed the deployment of route-to-market (RTM) initiatives to all sales centers excluding the former
Sendai territory, which is ongoing.

・Completed the introduction of Phase One of our new Enterprise Resource Planning (ERP) system“CokeOne+”, a foundation for further strategic transformation

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. The year-to-date result
consequently is expected to be lower than the second half of the fiscal year.
Year-to-date total BAPC (Bottler Actual Physical Cases) sales volume was positive 5.4% mainly due to theintegration of Sendai. Organic volume performance was slightly positive year-to-date.
Volume performance by channel was driven by the Sendai integration across all channels, led by the strong
growth in the convenience store (+17%) and eating & drinking (+14%) channels as a result of successful new
product launches and new customer development. Volume in the supermarket (+1%) and drug & discounter(+6%) channels was pressured as we cycled strong growth in the prior year. Vending channel (+2%) volume2

growth has also been pressured by shifts in channel mix since the consumption tax hike in 2014.
Reported year-to-date volume growth by category was also primarily driven by the Sendai integration. Sparkling
beverage volume grew 1%. In the hydration category (tea, water, and sports drinks), unsweetened teas andwater volume grew 11% and 8%, respectively; and sports drinks volume was even. Coffee volume continued to
grow 8%, led by the introduction of new products.
Second quarter total BAPC sales volume grew 11.1% year-on-year mainly driven by the integration of Sendai.
Organic volume grew +1.3% in the quarter.
Volume performance by channel was driven by the Sendai integration across all channels, led by strong growthin the convenience store channel (+20%) and eating & drinking (+23%) channels as a result of successful
customer exclusive-branded product launches and new customer development. Drug & discounter (+13%),supermarket (+9%) and vending (+6%) channels also grew.
Second quarter volume growth by category was also driven by the Sendai integration. Sparkling beveragevolume grew +6%. In the hydration category, unsweetened teas, water and sports drinks volume grew 16%,
12% and 9%, respectively. 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
the newly launched in the first quarter. The iLohas water brand continued to perform well and also benefited
from the newly introduced 2L package and iLohas sparkling variants in plain and lemon flavors, launched in 2014.
Coffee volume continued to grow, up 14% in Q2, led by the introduction of new products such as customer
exclusive-branded products, mainly in the convenience store channel.
We have a strong marketing and innovation calendar planned for the third quarter, a peak season for us, together
with our partners at Coca-Cola Japan (CCJC). This year, we celebrate the 100-year anniversary of the CocaCola bottle, a unique and instantly recognizable icon of the Coca-Cola brand. To mark this anniversary, we haveexciting plans to activate various anniversary programs throughout the year. As part of this year-long celebration,
we have launched our “Coca-Cola Summer Campaign” “Transform the Summer, Transform Yourself” and we
recently introduced the new Coca-Cola Aluminum Contour Bottle in July. In addition, we are engaging in active
sales and marketing activities in the marketplace during the peak season, including heat stroke prevention
campaigns, etc.

3Financial Review
All results below include Sendai from Q2 2015.

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

2014

2015

% Change

Net Sales

248,495

262,049+5.5%

Operating Income (Loss)(1,873)

1,345－

Net Income (Loss)(2,928)

988

－

2014

2015

% Change

Volume** (BAPC, in thousand)

132,610

139,794+5.4%

Net Sales

248,495

262,049+5.5%

Operating Income (Loss)(1,222)2,640－

Net Income (Loss)(1,540)

2,562

－

2014

2015

% Change

Comparable* Results
Year-To-Date 2015 (January to June)
In Million JPY, except volume

Second Quarter 2015 (April to June)
In Million JPY, except volume

Volume** (BAPC, in thousand)

72,72580,784+11.1%Net Sales

136,580

151,829+11.2%

Operating Income

3,954

4,239

+7.2%

Net Income

2,437

3,441

+41.2%* 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 262,049 million (positive 5.5% compared tothe prior year period), mainly attributable to the integration of Sendai as of April 1, 2015. Q2 comparable revenue
grew 11.2% year-on-year.
Year-to-date reported operating income was JPY 1,345 million (reported operating loss of 1,873 million in theprior year period) primarily reflecting the cycling of a change in accounting policy and estimates related to thedepreciation method for fixed assets and the related write-off of residual value of existing tangible fixed assets
during the first quarter of last year. Q2 comparable operating income was positive 7.2%.
We reported a year-to-date net income of JPY 988 million (net loss of 2,928 million in the prior year period)
reflecting the above cycling of prior year items.

4(2) Qualitative information on the consolidated financial positions(i) The financial positions at the end of this quarter
Assets at the end of this quarter were JPY 408,394 million, an increase of JPY 65,721 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 result of
seasonal inventory build-up for peak sales season as well as our focus on bringing more production and logistics
volume in-house. Sales Equipment also increased as a result of continued placement of vending machines andcoolers in the market place as well as the impact of the integration of Sendai.
Liabilities at the end of this quarter were JPY 176,189 million, an increase of JPY 47,271 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. as wellas the integration of Sendai, etc.
Net assets at the end of this quarter were JPY 232,205 million, an increase of JPY 18,450 million from the endof previous fiscal year. This is primarily due to an increase of Capital Surplus by issuing new shares for the
integration of Sendai.
(ii) The cash flow positions
Cash and Cash Equivalents at the end of this quarter was JPY 31,935 million, an increase of JPY 6,963 million
compared with the end of last fiscal year. Cash flow by activities in this consolidated accounting period is asfollows.
(Cash Flow from Operating Activities)
Cash generated from operating activities was JPY 984 million (the cash generated increased JPY 8,126 million
year-on-year). This results mainly from JPY 131 million for net income before income taxes, depreciation
expenses, increase of notes and accounts payable-trade, income tax refund, etc. as well as increase ininventories, increase in notes and accounts payable-trade, etc.
(Cash Flow from Investing Activities)
Cash used for investing activities was JPY 18,734 million (decreasing JPY 197 million year-on-year). The outflow
includes expenditure for new fixed assets such as machinery and equipment for plants, cold drink equipment,
intangible fixed assets due to new ERP system deployment, etc. The inflow includes proceeds from purchase ofinvestments in subsidiaries resulting in change in scope of consolidation by integrating Sendai, as well as
governmental subsidies, etc.
(Cash Flow from Financing Activities)
Cash generated from financing activities was JPY 24,204 million (decreasing JPY 2,415 million year-on-year).
The inflow is attributable to net increase of short-term loans. The outflow includes payment of the dividends,
repayment of lease obligations, etc.

(3) Qualitative information on the consolidated earnings forecast
No change from the revision of our forecast for the fiscal year ending December 2015, issued on May 12, 2015.

5

2. Matters relating to summary information (notes)(1) Change of important subsidiaries during the consolidated Q2 2015 YTD
Since the second quarter of the current fiscal year, the company has newly added 5 companies 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 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, 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, the liabilities for retirement
benefits have been decreased by 1,425 million yen and the retained earnings has been increased by 917 million
yen. The impact to operating income, ordinary income, and quarterly net income before taxes is minor.

63. Consolidated financial statements(1) Consolidated Balance Sheets(MM yen)
FY2014Q2 2015 YTDAssetsCurrent assets
Cash and deposits

24,982

31,959Notes and accounts receivable-trade36,611

48,831

Short-term investment securities

1,204

1,506

Merchandise and finished goods

31,43347,266－482

Work in process
Raw materials and supplies

2,750

6,197

Other

31,08329,737-98-81

127,969

165,900

Buildings and structures, net

38,12444,431

Sale equipment, net

48,44561,409Land

45,64250,961

Allowance for doubtful accounts
Current assets
Noncurrent assets
Property, plant and equipment

Other, net

47,22950,089Property, plant and equipment

179,442

206,892

5,488

8,285

29,96527,590-193-275

Intangible assets
Investments and other assets
Other
Allowance for doubtful accounts
Investments and other assets

29,772

27,315

214,703

242,493342,672

408,394

Accounts payable-trade22,94437,428

Short-term loans payable

16,00047,000－1,320

Income taxes payable

2,425

303

Provision for bonuses

Noncurrent assets
AssetsLiabilities
Current liabilities

Current portion of long-term loans payable

1,945

200

Provision for directors' bonuses

37

37

Provision for environmental measures－

82

Provision for early contract termination

556

674

Other

37,88044,214Current liabilities

81,791

131,262

14,00014,000－3,072

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

2－

Provision for environmental measures

478

388

Provision for early contract termination

2,187

1,717

Net defined benefit liability

18,68914,095

Other

11,768

11,651

Noncurrent liabilities
Liabilities-77

47,12644,926

128,917

176,189

Consolidated Balance Sheets(MM yen)
FY2014Q2 2015 YTD

Net assets
Shareholders' equity
Capital stock

6,499

6,499

Capital surplus

143,134

157,311Retained earnings

66,837

66,117

Treasury stock-1,170-1,178

Shareholders' equity

215,301

228,750

1,644

2,660

302

-20

Remeasurements of defined benefit plans-3,717470

Valuation and translation adjustments-1,7703,109

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

Subscription rights to shares

223

344

Net assets

213,754

232,205

Liabilities and net assets

342,672

408,3948

(2) Consolidated Profit and Loss Statement and Comprehensive Profit and Loss Statement(Consolidated Profit and Loss Statement)(MM yen)Q2 2014 YTD

Q2 2015 YTD

Net sales

248,495

262,049

Cost of sales

135,781

140,051

Gross profit

112,714

121,997

Selling, general and administrative expenses

114,587

120,651

Operating loss or income-1,873

1,345

Interest income

71

51

Dividends income

127

95

Non-operating income

Equity in earnings of affiliates

65

70

Rent income

159

157

Gain on sales of valueable wastes

176

137

Proceeds from miscellaneous income

77

136

678

649

Interest expenses

193

210

Rent expenses

58

18

Loss on sales and retirement of noncurrent assets

135

265

Miscellaneous loss

33

118

Non-operating expenses

421

611

-1,615

1,383

Gain on transfer of business－

247

Gain on sales of shares of subsidiaries

69－

Insurance income

100

79

Gain on negative goodwill-

84

Gain on sales of noncurrent assets

87

3

Others－30

Extraordinary income

256

445

Loss on sales and retirement of noncurrent assets

189

699

Impairment loss

60

8

1,628

319

Cost of defective work－

235

Cost of system interruption－

160

Integration expenses－

39

Non-operating income
Non-operating expenses

Ordinary loss or income
Extraordinary income

Extraordinary loss

Restructuring cost

OthersExtraordinary loss
Loss or income before income taxes

36

234

1,914

1,697

-3,274

131

Income taxes-current

986

428

Income taxes-deferred-1,332-1,285

Income taxes

-345

-856

Loss or income before minority interests-2,928988

Net loss or income-2,928988

9

(Consolidated Comprehensive Profit and Loss Statement)(MM yen)Q2 2014 YTD

Loss or income before minority interests

Q2 2015 YTD-2,928

988

217

1,016

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

－

4,187

-112

-323

Comprehensive income
Comprehensive income attributable to owners of the parent company

10

107

4,880

-2,821

5,868-2,821

5,868

(3) Consolidated Statement of Cash Flow
(MM yen)Q2 2014 YTD

Q2 2015YTD

Net cash provided by (used in) operating activities
Loss or income before income taxes-3,274131

Depreciation and amortization

13,60910,929Amortization of long-term prepaid expenses

5,088

6,630

Increase (decrease) in allowance for doubtful accounts-639

Increase (decrease) in provision for retirement benefits-1,263－－-919

Increase (decrease) in net defined benefit liability
Increase (decrease) in prepaid pension costs

-242

－

Increase (decrease) in provision for directors' bonuses

-126

-0

Increase (decrease) in provision for directors' retirement benefits

-342

-2

Interest income and dividends income

-199

-147

Interest expenses paid

193

210

Equity in (earnings) losses of affiliates

-65

-70

1,293

250

Loss (gain) on sales of noncurrent assets

-40

32

Loss on retirement of noncurrent assets

278

921

Impairment loss

60

8Special retirement expenses paid

Increase (decrease) in notes and accounts receivable-trade-9,093-9,224

Increase (decrease) in inventories-9,426-14,237

Increase (decrease) in long-term prepaid expenses-5,791-6,936

Increase (decrease) in notes and accounts payable-trade

14,80012,135

Increase (decrease) in other assets and liabilities-10,104-4,007

Other

-213

124

Subtotal-4,867-4,132201

148

Interest and dividends income received
Interest expenses paid

-193

-210

Special retirement expenses paid

-1,521-107

Income taxes paid

-1,502-2,646

Income taxes returned
Net cash provided by (used in) operating activities

739

7,932

-7,141984

Net cash provided by (used in) investing activities
Purchase of property, plant and equipment-18,976-23,783

Proceeds from sales of property, plant and equipment

663

146

Purchase of Intangible assets-921-2,417

Proceeds from sales and redemption of investment securities

301

0

Purchase of investment securities
Proceeds from acquisition of investments in subsidiaries resulting
in change in scope of consolidation
Proceeds from sale of investments in subsidiaries resulting inchange in scope of consolidation
Net increase (decrease) in short-term loans receivable

-469

-76

－

3,138

765

－

-1,064-68

Payments of loans receivable

-768

-130

Collection of loans receivable

1,564

446

－

4,033

Governmental subsidy
Other
Net cash provided by (used in) investing activities

11

-28

-22

-18,932-18,734

Consolidated Statement of Cash Flow
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable

30,00028,800

Repayment of long-term loans payable

－

-253

Proceeds from sales of treasury stock

1

0

Purchase of treasury stock

-12

-8

Repayments of lease obligations-1,673-2,396

Cash dividends paid

-1,695-1,938Other
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase (decrease) in cash and cash equivalents resulting fromchange of scope of consolidation
Cash and cash equivalents at end of period

12

0

0

26,61924,204545

6,454

29,79024,971－509

30,33531,935

(4) 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
14,175 million yen in this 2nd quarter consolidated accounting period.
(Segment information and others)(Segment Information) January 1st-June 30th 2014
The Group has sole segment of beverage business, thus the description is omitted.
(Segment Information) January 1st-June 30th 2015
1.

Information relating to net sales, income or loss by reporting segment
The Group has sole segment of beverage business, thus the description is omitted.

2.

Information regarding the impairment loss of fixed assets, goodwill, etc. by reporting segment（Significant change in the amount of goodwill）
The Group has sole segment, thus the description by reporting segment is omitted. FV East Japan Co., Ltd., (namewas changed from Mikuni Foods Co., Ltd)who is one of our consolidated subsidiaries, merged consolidated
subsidiaries -FV-Central Co., Ltd, Urban Vend-X Network Co., Ltd, WEX Tokyo Co., Ltd, EX-Service Co., Ltd, and nonconsolidated subsidiary subject to the equity method- Fresh Vendor Service Co., Ltd, and non-consolidated
subsidiaries -TX Campus Co., Ltd, Nitto Pacific Vending Co., Ltd. as of April 1, 2015. This resulted in an increase of
goodwill by 633 million yen.
（Significant gain on negative goodwill）
The Group has sole segment, thus the description by reporting segment is omitted. The outlines are provided in
the “Notes relating to quarterly consolidated financial statements (Business Combinations, etc.)” in the Quarterly
Consolidated Financial Statements.

(Business combination, etc.)
Consolidated second quarter (from April 1, 2015 to June 30, 2015)
Business combination by acquisition
1. Overview of business combination(1) Name of acquired company and description of business
Name of acquired company: Sendai Coca-Cola Bottling Co., Ltd. (hereafter “Sendai CCBC”)
Description of business: Manufacture and sales of soft drinks(2) Main reason for business combination
Integrated the business with the acquired company through share exchange to streamline the regional business
operations in Kanto and eastern Japan and promote further improvements in customer service.
(3) Date of business combination
April 1, 2015(4) Legal form of business combination
Share exchange(5) Name of company after business combination
Company name is the same with before.
(6) Acquired ratio of voting rights
100%(7) Main grounds for deciding on the acquiring company
CCEJ has been decided to be the acquiring company after taking account of multiple factors comprehensively,
including the relative large ratio of voting rights held by shareholders considered in the aggregate and the difference13

in relative corporate sizes, in addition to the fact that CCEJ will be the sole parent company through the shareexchange.
2.

Period of the acquired company’s operating results included in the quarterly consolidated profit-and-loss
statement for the second consolidated cumulative quarter

April 1, 2015 to June 30, 2015
3.

Breakdown of each cost for acquisition and type of consideration for the acquisition of the acquired company

Consideration for the acquisition (market value of common shares issued on the effective date ofbusiness combination)

14,175 million yen

Direct costs required for acquisition (advisory fee, etc.)

89 million yen

Total acquisition costs

14,265 million yen

4.

Share exchange ratio by type of share, the method of calculating the share exchange ratio, and the number ofissued shares(1) Common share exchange ratio
1 common share of Sendai CCBC: 2.563 common shares of CCEJ
(2) Method of calculating the share exchange ratio
CCEJ requested Nomura Securities Co., Ltd., an independent calculation agent, to calculate theshare exchange ratio, and, after negotiating and consulting sincerely with Sendai CCBC, calculated the shareexchange ratio by using the result of this agent’s calculation as a reference and taking the financial conditions
and performance trends of CCEJ and Sendai CCBC, and the market trend, among others, into consideration.
(3) Number of issued shares
5,781,166 shares

5.

Amount of gain on negative goodwill and the reason for negative goodwill to arise(1) Amount of gain on negative goodwill that arose
84 million yen(2) Reason for negative goodwill to arise
Since the total assets and liabilities that CCEJ took over exceeded the acquisition price of the shares, theamount of difference has been written off as the gain on negative goodwill.

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