This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2020 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Quarterly Report（Report Pursuant to Article 24, Paragraph 1 of the Financial Instruments
and Exchange Act）
Fiscal Year
From July 1, 2020
（The 3rd Quarter of the 63rd Term）
To September 30, 2020

Coca-Cola Bottlers Japan Holdings Inc.

（E00417)

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2020 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Table of Contents[Cover Page]
Part I Corporate information ..................................................................................................................................................................... 1
Section 1. Corporate overview .............................................................................................................................................................. 1
1. Summary of business results ......................................................................................................................................................... 1
2. Business content ............................................................................................................................................................................ 1
Section 2. Business situations................................................................................................................................................................ 2
1. Risk of business ............................................................................................................................................................................. 2
2. Management's analysis of financial condition, results of operations and cash flows ..................................................................... 2
3. Significant management contracts ................................................................................................................................................. 7
Section 3. Status of the filing company ................................................................................................................................................. 8
1. Status of Shares ............................................................................................................................................................................. 8
2. Status of Officers ........................................................................................................................................................................... 9
Section 4 Accounting status................................................................................................................................................................. 10
1. Condensed Quarterly Consolidated Financial Statements and Notes .......................................................................................... 11
2. Others .......................................................................................................................................................................................... 32
Part II Information of guarantor companies of the filing company ......................................................................................................... 33

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2020 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

【Cover Page】[Documents to be submitted]

Quarterly Report[Underlying article]

Article 24, Paragraph 1 of the Financial Instruments andExchange Act[Recipient]

Director-General of the Kanto Local Finance Bureau[Submission date]November 13, 2020

[Fiscal year]

63rd fiscal term (from July 1, 2020 to September 30, 2020)[Company name]Coca-Cola Bottlers Japan Holdings Inc.

[Name and position of representative]

Calin Dragan, Representative Director & President[Address of head office]9-7-1 Akasaka, Minato-ku, Tokyo(From March 26, 2020, the location of the head office has been changed to the abovefrom 7-9-66 Hakozaki, Higashi-ku, Fukuoka City.)[Telephone number](03)-6896-1707[Name of administrative contact]

Cordula Thomas, Head of Controllers Senior Group Division, Finance[Closest contact point]

9-7-1 Akasaka, Minato-ku, Tokyo[Telephone number](03)-6896-1707[Name of administrative contact]

Cordula Thomas, Head of Controllers Senior Group Division, Finance[Location provided for viewing]

Tokyo Stock Exchange, Inc.
（2-1 Nihonbashi Kabutocho, Chuo-ku, Tokyo）

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) filed with the Director-General of the Kanto
Local Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments andExchange Act of Japan. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki
Hokokusho shall prevail.
For the purpose of this Quarterly Report, unless context indicates otherwise, the “Company”, “we”, and “CCBJH” refer to Coca-Cola
Bottlers Japan Holdings Inc., and the “Group” refers to the Company and its subsidiaries.

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2020 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Part I Corporate information
Section 1. Corporate overview
1. Summary of business results
Issuance

The 62nd Term
Consolidated Cumulative
Third Quarter

The 63rd Term
Consolidated Cumulative
Third Quarter

The 62nd Term

Accounting period

From
January 1, 2019
toSeptember 30, 2019

From
January 1, 2020
toSeptember 30, 2020

From
January 1, 2019
toDecember 31, 2019

Revenue[Current Third quarter](Millions of yen)694,763[261,053]

616,774[230,094]

914,783

Loss for the period before tax benefits(Millions of yen)

(51,848)(6,546)(55,419)(55,693)[8,872](4,644)[1,807](54,920)(11,420)(52,164)

Net loss for the period attributable to ownersof the parent(Millions of yen)[Current Third quarter]
Comprehensive loss attributable to owners(Millions of yen)of the parent(57,952)

Equity attributable to owners of the parent(Millions of yen)

502,994492,860

505,999

Total Assets(Millions of yen)

968,031

966,337

952,444

Basic earnings per share[Current Third quarter](Yen)(309.40)[49.47](25.90)[10.08](322.22)

Diluted earnings per share

(Yen)

－

－

－

Ratio of equity attributable to owners of theparent to total assets

(%)

52.0

51.0

53.1

Cash flows from operating activities(Millions of yen)

30,46435,13842,629Cash flows from investing activities(Millions of yen)

(53,748)(59,259)(68,308)

Cash flows from financing activities(Millions of yen)

95,98938,76173,994

Cash and cash equivalents at the end of the(Millions of yen)period138,215

128,465

113,825

Notes:
1. Because the Company prepares quarterly consolidated financial statements, the summary of standalone business results for the Company is notdescribed.
2. Consumption tax is not included in revenue.
3. Diluted earnings per share is not presented, since there is no dilutive stock.
4. The consolidated financial statements are disclosed in accordance with International Financial Reporting Standards ("IFRS") as issued by theInternational Accounting Standards Board.
5. Figures are rounded to the nearest million yen.

2. Business content
There were no significant changes in the businesses that the Group (the Company and its subsidiaries) is engaged in during thethird quarter of 2020－1－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2020 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Section 2. Business situations
1. Risk of business
During the current third quarterly consolidated accounting period (July 1 to September 30, 2020, hereinafter referred to as the"current third quarter”), business risks related to the new coronavirus (“COVID-19”) were still evident. Although the spread of
infection around April and May seemed to have temporarily slowed down, it resurged from July to August.
Government measures to prevent the further spread continued to be enforced, including the shortening of the business hours at
eating and dining establishments, and the self-restraint of holding large-scale events. The effect of these measures resulted in thebeverage business suffering a decline in sales. Also, the increasing cost of measures to prevent COVID-19 infection is expected tohave an impact on the earnings.
Under such circumstances, we are responding to changes in the environment by increasing the speed of business transformationand further cost savings with measures including transition of working arrangements to work from home, mainly in back office.
We continue to actively monitor our risk environment and there is no material change to the other business risks that are provided
in the securities report of the prior fiscal year.

2. Management's analysis of financial condition, results of operations and cash flows
Note that matters related to future developments that are mentioned in this section are judgments of the Group that were madeas of the date of quarterly securities report submission.
(1) Qualitative Information on Consolidated Financial Results
During the continued outbreak of the novel coronavirus (COVID-19), the safety and health of our consumers, our customers
and our employees— especially those working daily to produce and supply essential goods and services— is our number one
priority. Our mission is to deliver happy moments to everyone, even in challenging times, and we have been working withcomprehensive business continuity actions in place to ensure safe and secure product supply.
In the year-to-date third-quarter period, total nonalcoholic ready-to-drink (NARTD) beverage industry volume performance is
expected to continue to decline versus the prior-year reflecting weaker consumer traffic and demand driven by the COVID-19
outbreak as well as rainy and cool weather in July. The health food and cosmetics industries are also expected to decline reflecting
weaker consumer traffic and demand as well as drop of inbound tourists’ demand driven by the COVID-19 outbreak.
We continue to drive fundamental business transformation under the guiding principle of our mid-term business plan announcedin August 2019 that “business as usual is not an option”. We are implementing initiatives to return the business to a sustainablegrowth trajectory, including transformation in the important vending channel and back-office routines to drive cost efficiencies,
and increasing front-facing investments for growth in such areas as production capacity, space-to-sell and people development. In
the short term, we are focusing on various urgent mitigation initiatives to deal with the rapidly evolving situation triggered by the
COVID-19 outbreak, as we continue to address our cost structure and high fixed-cost base of the beverage business. We are alsofinding opportunities during this turbulent period to accelerate the pace of ongoing transformation projects and to identify newopportunities. This will ensure that we are well-prepared for the evolution of the business environment in the longer term.
Our year-to-date third-quarter results were impacted by a sharp drop in beverage business sales volumes since March due to the
COVID-19 situation, but we have seen moderating performance trends in the third quarter (July to September) compared to thesecond quarter (April to June), which has been the most impacted quarter thus far during the pandemic.

Highlights of the Third Quarter・ Volume, revenue and Business Income in third quarter shows moderating trend versus prior quarters this year and third quarter
Business Income was almost even versus prior year. Year-to-date third-quarter revenue declined 11% and Business Income
declined 59% versus prior year, reflecting negative channel/package mix and weaker consumer traffic and demand driven by
the COVID-19 outbreak.
・ Vending channel value share continues to improve, with 18 consecutive months of positive momentum. Focus on recovering
year-to-date over-the-counter (“OTC”) market share decline with selective marketing reinvestment in fourth quarter (October
to December), in line with gradual return of consumer demand.
－2－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2020 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

・ Delivering significant cost saving efforts to mitigate topline pressure while accelerating transformation including vending and
OTC sales route transformation.
・ Alcohol business continues to perform well. New alcohol manufacturing line installed in Kyoto Plant to meet growing demandand ensure stable supply.
・ Announced updated full-year 2020 plan on October 5, targeting even Business Income through continued cost savings in spiteof topline pressures. No change to 25 yen-per-share year-end dividend forecast.
・ Continue to drive fundamental business transformation guided by our mid-term strategic plan amid the current COVID-19
driven challenges.
Summary of Consolidated Financial Results

Year-to-date Q3 (January to September)
2019

In million JPY

2020

ChangeRevenue

694,763616,774(11.2％)

Gross Profit

337,265

290,027(14.0％)

318,810

281,883(11.6％)

Other income (Recurring)

889

582

(34.5％)

Other expenses (Recurring)

2,150

1,459

(32.2％)

(90)

(310)

－

17,103

6,958(59.3％)

Impairment losses of goodwill

61,859－(100.0％)

Other income (Non-recurring)

2,137

1,782

(16.6％)

Other expenses (Non-recurring)

9,260

15,074

62.8％

Operating Loss

(51,880)(6,334)－

Net Loss Attributable to Owners of Parent(55,693)(4,644)

－

384

344

(11%)

Selling, General & Administrative Expenses

Investment loss on equity method
Business Income (Loss)

Sales volume of beverage business (million cases)

Q3 (July to September)
2019

In million JPY

2020

ChangeRevenue

261,053

230,094(11.9％)

Gross Profit

127,019

110,768(12.8％)

113,608

97,984(13.8％)

Other income (Recurring)

329

198

(39.9％)

Other expenses (Recurring)

693

404

(41.7％)

Investment loss on equity method

(66)

(80)

－

12,98012,497(3.7％)

Other income (Non-recurring)

897

1,782

98.7％

Other expenses (Non-recurring)

300

7,503

2,403.3％

Operating Income

13,5786,776(50.1％)Net Income Attributable to Owners of Parent

8,872

1,807

(79.6％)

Selling, General & Administrative Expenses

Business Income

Sales volume of beverage business (million cases)
147
132
(10%)
Note: “Business Income (loss)” is a measure of our underlying or recurring business performance. Business Income (loss) deducts cost of goods and selling,
general and administrative expenses from revenue, and includes other income and expenses which we believe are recurring in nature－3－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2020 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Year-to-date third-quarter revenue were 616,774 million yen, a decrease of 77,989 million yen or 11.2%, in comparison to theprior-year period. Revenue of the beverage business declined by 77,468 million yen or 11.5% to 598,547 million yen, due tothe sales volume decline since March, driven by the ongoing impact of COVID-19 and unseasonably rainy and cool weather inthe summer, especially in the month of July. Revenue of the healthcare & skincare business was less impacted by the COVID19 situation and declined by 521million yen or 2.8% year-on-year to 18,227 million yen, supported by new-product launches
and expansion into new sales channels following a comprehensive renewal of the core product lineup and corporate branding in
October 2019.
Year-to-date third-quarter Business Income, an indicator of our recurring business performance, was 6,958 million yen, 10,145
million yen or 59.3% decline versus the prior year period. Business income for the beverage business declined by 10,277 million
yen or 70.3%, to 4,336 million yen. This reflects a gross profit decline driven in large part by channel mix as the vending andconvenience store channels were impacted by a decline in consumer traffic during the COVID-19 emergency declaration period,
partially offset by significant efforts to drive cost reductions across labor, promotion and back-office expenses. Business incomein the healthcare & skincare business was 2,622 million yen, an increase of 132 million yen or 5.3% from the prior year period
driven by a strong focus on cost reduction and controlling sales promotion expenses.
Year-to-date consolidated operating loss improved from the prior year to a loss of 6,334 million yen (51,880 million yen loss
in the prior period) mainly by cycling a 61,859 million yen impairment loss on Goodwill in the prior-year second quarter. As areference, other income (non-recurring) includes 1,782 million yen of government subsidies which partially offset the temporary
paid leave expenses in the second quarter. Other expenses (non-recurring) in year-to-date third-quarter 2019 results included
8,698 million yen of special retirement allowances and others due to the introduction of a voluntary employee retirement program.
Other expenses (non-recurring) in year-to-date third-quarter 2020 include 2,841 million yen of temporary paid leave expenses
in the second quarter, 3,440 million yen of transformation-related expenses and special retirement allowances of 7,435 million
yen.
Net loss attributable to owners of parent for the year-to-date third quarter was 4,644 million yen (55,693 million yen loss inthe prior period) led by improvement of the operating loss.
(2) Qualitative Information on Consolidated Financial Position
Assets at the end of this quarter were 966,337 million yen, an increase of 13,893 million yen from the end of the prior year.
This is mainly due to an increase of Cash and cash equivalents, increase of Property, Plant and Equipment as a result of thestrategic capital investments we have been making to increase supply capacity.
Liabilities at the end of the quarter were 473,039 million yen, an increase of 27,086 million yen from the end of the prior year.
This is mainly due to an increase of Bonds and Debt as we accessed 50 billion yen in short-term borrowing from banks in April
2020 to ensure sufficient liquidity and access to cash as a backstop during this period of high uncertainty.
Net Assets at the end of the quarter were 493,298 million yen, a decrease of 13,193 million yen. This is mainly due to adecrease of Other Comprehensive Income and a decline of Retained Earnings as a result of paying year-end dividends for 2019.

－4－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2020 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(3) Cash flows
The cash flow conditions for the third quarter of the current year are as follows.
<Cash Flows from Operations>
Net cash generated from operations was 35,138 million yen (30,464 million net cash used for operations in the prior year
period). This results from the 6,546 million yen net loss before tax, increase of inventories and other assets, decrease of otherliabilities, and payment of income taxes offset by depreciation and amortization, decrease of trade and other receivables andincome taxes refund.
<Cash Flows from Investment Activities>
Net cash used for investment activities was 59,259 million yen (53,748 million yen in the prior year period) due to purchasesof fixed assets as we recover our supply network and progressively expand production capacity.
<Cash Flows from Financing Activities>
Net cash generated from financing activities was 38,761 million yen (95,989 million yen in the prior year period), driven by
an increase of short-term loans for operating capital, partially offset by mainly cash spent for payment of year-end dividends
and lease liabilities.
As a result of these activities, cash and cash equivalents at the end of third quarter was 128,465 million yen, an decrease of
9,750 million yen in comparison to the end of third quarter in the prior year.
(4) Business and financial challenges to be addressed
1. Issues to be addressed
There are no material changes regarding the issues that the Group needs to address during the consolidated cumulative third
quarter of the current year.
2. Basic Policies on the Control of the Joint-stock Company
a. Descriptions of basic policies
The Company believes that the persons and/or entities (hereinafter referred as “Persons”) who control decisions on the
Company’s financial and business policies need to understand the source of the Company’s corporate value and will make itpossible to continually and persistently ensure and enhance the Company’s corporate value and, in turn, the common interestsof its shareholders. The Company believes that a decision on any proposed acquisition that would involve a change of corporate
control of the Company should ultimately be made based on the intent of its shareholders as a whole. Also, the Company
would not reject a large-scale acquisition of the shares in the Company if it would contribute to the corporate value of theCompany and, in turn, the common interests of its shareholders.
However, there are some forms of large-scale acquisition of shares that benefit neither the corporate value of the target
company nor the common interests of its shareholders: those with a purpose that would obviously harm the corporate value ofthe target company and, in turn, the common interests of its shareholders; those with the potential to substantially coerce
shareholders into selling their shares; those that do not provide sufficient time or information for the target company’s boardof directors and shareholders to consider the terms of the large-scale acquisition of shares, or for the target company’s boardof directors to present a business plan or an alternative proposal; and those that require the target company to discuss ornegotiate with the acquirer in order to procure more favorable terms for shareholders than those presented by the acquirer.
The Company believes that the Persons who control decisions on the Company’s financial and business policies need to be
Persons who (A) fully understand the importance of (i) providing freshness and refreshment to people around the world andembedding the ”Coca-Cola” brand, which is now a part of our life style, in local communities; (ii) striving aggressively to win
in the market as the customers’ preferred partner with a deep understanding of the Company’s corporate philosophy; (iii)appreciating employees who have a strong sense of responsibility to thoroughly pursue customer satisfaction, and proactively
working on building a workplace environment that can make each and every employee feel rewarded, motivated and proud of
being a member of the Coca-Cola family; and (iv) contributing to local communities and proactively dealing withenvironmental issues with a strong sense of responsibility as a corporate citizen that continues to strive to assist in therealization of an affluent society, (B) preserve relationships of mutual trust with customers, business partners, shareholders－5－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2020 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

and employees and perform to their expectations, and (C) make it possible to continually and persistently ensure and enhance
the Company’s corporate value and, in turn, the common interests of its shareholders from a mid- to long-term perspective.
Therefore, the Company believes that Persons who would make a large-scale acquisition of the shares in the Company in amanner that does not contribute to the corporate value of the Company and, in turn, the common interests of its shareholders
would be inappropriate to become Persons who would control decisions on the Company’s financial and business policies.
b. Initiatives to realize the basic policies(a) Summary of special initiatives that contribute to realizing the basic policies
The Group not only assumes a leading role in transforming the Coca-Cola business in Japan by deploying various joint
initiatives such as product development and test marketing with The Coca-Cola Company and Coca-Cola (Japan) Company,
Limited (100% subsidiary of The Coca-Cola Company) as a strategic partner, but also strives to become a company trusted
by the stakeholders of consumers, customers, shareholders and employees.
Soft drink industry volume growth in Japan is expected to be muted, given the developed nature of the market as a whole,and the business environment surrounding the Company is projected to stay competitive as multiple players compete in themarket.
Under such circumstances, the Group aims at becoming the preferred partner of our customers and consumers in all
drinking occasions by establishing a robust and sustainable operating model, pursuing success in high-priority areas, anddrastically transforming the business to ensure growth.
The Company also made a transition to a company with an Audit and Supervisory Committee in order to further reinforce
the governance system. The Audit and Supervisory Committee serves as the auditing body of the Company that is comprised
exclusively of external directors, including multiple independent external directors. To strengthen the management oversightfunction, these external directors that serve as members of the Audit and Supervisory Committee have each been grantedwith a voting right in the Board of Directors meetings, in addition to the right to state their opinions in shareholders’ meetings
on matters pertaining to the designation of board members and their remuneration, among others. In order to separate thedecision-making, business management and business execution functions, the Company is implementing a corporate
executive officer system. In addition to the foregoing, for more fruitful deliberations of highly important matters in the
Board of Directors meetings, the Company is delegating the authority to make decisions on certain important matters that
require prompt business executions to specific directors as well as facilitating speedy decision making of other matters.
(b) Outline of measures to prevent inappropriate persons from controlling the finance and business policy decisions of theCompany in light of the basic policy
Upon any substantial acquisition of the Company shares, the Company strives to proactively collect and timely disclose
information in order to ensure and improve the corporate value of the Company and the common interest of shareholders
as well as make appropriate measures as needed under the scope permitted by laws and regulations and the Articles ofIncorporation.
When Board Meeting determines it necessary to apply anti-takeover measures in order to ensure and improve thecorporate value of the Company and the common interest of shareholders, taking into consideration of the future trend of
the society, the Company consults with shareholders at the Meeting of Shareholders as stipulated in the Articles ofIncorporation for decision of the implementation.
c. Decisions of the Board of Directors of the Company on the specific measures and the reasons
The measure described in the previous b. (a) was introduced as a specific measure to continuously and sustainably
improve the corporate value of the Company and the common interest of shareholders and is consistent with the Company’s
basic policy.
In addition, the measure described in the previous b. (b) was introduced as a specific measure to ensure and improve thecorporate value of the Company and the common interest of shareholders as needed under the scope permitted by laws andregulations and the Articles of Incorporation focusing on the intention of shareholders, and it is not intended to undermine－6－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2020 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

the shareholders’ common interests or preserve the positions of the Company officers.
(5) Research and development activities
Although research and development activities were conducted in the healthcare & skincare business during the third quarterof the current year, there are no specific items to highlight as the monetary amounts were not material.

(6) Major facilities
The new installation of the important facilities that had been planned as of the end of the prior year and completed during theconsolidated cumulative third quarter of the current year are as listed below.

Name of company

Name of office / site (location) Name of business segment

Coca-Cola Bottlers Japan Inc.

Branches / (-)

〃(Mihara-shi, Hiroshima

Facility description

Amount(millions of yen)Completed in

Beverage business

Vending machines/coolers

9,078

September 2020〃

Production facilities

20,762September 2020

Hiroshima plant
Prefecture)
Note: Consumption tax is not included in the above amounts.

3. Significant management contracts
Not applicable.

－7－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2020 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Section 3. Status of the filing company
1. Status of Shares(1) Total number of shares① Total number of shares
Class

Total Number of Authorized Shares

Common shares

500,000,000

Total

500,000,000② Issued shares
No. of issued shares as of end of

No. of issued shares as of filing

3rd Quarter

date（September 30, 2020）（November 13, 2020）

206,268,593

206,268,593

206,268,593

206,268,593

Class

Commonshares
Total

Name of listed stock exchangeor registered authorized
financial instruments firms`

Details

association
Tokyo Stock Exchange（1st Section）－

100-unit shares－(NOTE) We delisted the Fukuoka Stock Exchange on July 11th.
(2) Status of stock acquisition rights① Status of share options
Not applicable.
② Other stock acquisition rights
Not applicable(3) Status of exercised moving strike convertible bonds
Not applicable.
(4) Total number of issued shares, transition of capital
Date

Increase/decrease in total no.
of issued shares(thousand share)

July 1, 2020 –September 30, 2020－

Balance of total no. of Increase/ decrease ofissued shares
capital(thousand share）(Millions of yen)

206,269(5) Major shareholder status
Not applicable as this is the third quarter of the current year

－8－－

Capital balance(Millions of yen）

Increase/decrease ofcapital reserve(Millions of yen)

Capital reservebalance(Millions of yen)

15,232－

108,167

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2020 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(6) Status of voting rights① Issued shares
As of September 30, 2020
Class

Number of shares

Number of votes

Details

Non-voting shares

－

－

－

Shares with restricted voting right (Treasury Shares)

－

－

－

Shares with restricted voting right (Others)

－

－

－

－

－

Shares with full voting rights (Treasury Shares)

Common shares

26,919,400

Shares with full voting rights (Others)

Common shares

178,541,300

Odd lot shares

Common shares

807,893－－

206,268,593－-

Total number of issued shares

1,785,413－

Voting rights of all shareholders

1,785,413－-(Note): “Shares with full voting rights (Others)” includes 2,300 shares in JASDEC’s name (23 voting rights).

② Treasury Shares
As of September 30, 2020

Name of owner

Coca-Cola Bottlers
Japan Holdings Inc.

Address of owner

No. of shares

No. of shares

owned under own

owned undernameothers’ name

Total number ofshares owned

Ratio of shares owned
against total no. of issued
shares (%)

9-7-1 Akasaka, Minato-ku, Tokyo

26,919,400－

26,919,400

13.05

－

26,919,400－

26,919,400

13.05

Total

2. Status of Officers
Not applicable.

－9－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2020 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Section 4 Accounting status
1. Preparation methods for the quarterly consolidated financial statements
The Group’s condensed quarterly consolidated financial statements have been prepared in accordance with International
Accounting Standards Article 34 "Interim Financial Reporting".

2. Audit certification
The Company’s quarterly consolidated financial statements for the third quarter of the current year (July 1, 2020 to September
30, 2020) and the first nine-month period of the current year (January 1, 2020 to September 30, 2020) have been reviewed by Ernst& Young ShinNihon LLC based on the provisions of Article 193-2 Paragraph 1 of the Financial Instruments and Exchange Act.

－10－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2020 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

1. Condensed Quarterly Consolidated Financial Statements and Notes(1) Condensed Quarterly Consolidated Balance Sheets
Notes(Millions of yen)
As of
September 30, 2020

As ofDecember 31, 2019

AssetsCurrent assets:
Cash and cash equivalents

113,825

128,465

Trade and other receivables

98,52894,491Inventories

74,12078,112752

999

Other financial assets

12

Other current assets

17,587

20,700Total current assets
Non-current assets:

304,812322,767

Property, plant and equipment

467,136

473,896

Right-of-use assets

39,62933,654

Goodwill

27,021

27,021Intangible assets

67,123

66,678Investments accounted for using the equity method

310

285

33,49927,690

Deferred tax assets

6,093

6,310

Other non-current assets

6,820

8,035

Total non-current assets

647,632

643,569

952,444966,337

Other financial assets

12

Total assets－11－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2020 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(Millions of yen)
As of
September 30, 2020

As ofDecember 31, 2019
Liabilities and equity
Liabilities
Current liabilities:
Trade and other payables
Bonds and debts

6,12

Lease liabilities
Other financial liabilities

12

Income taxes payable

122,364

111,470

17,261

67,094

6,634

7,226

916

1,730

1,104

2,243

20

20

Other current liabilities

19,886

17,517

Total current liabilities

168,186

207,300

188,487

187,489

34,13827,615－353

Net defined benefit liabilities

24,90826,597

Provisions

2,104

2,161

Deferred tax liabilities

24,87617,995

Other non-current liabilities

3,254

3,529

Total non-current liabilities

277,767

265,738

445,953

473,039

Provisions

Non-current liabilities:
Bonds and debts

6,12

Lease liabilities
Other non-current financial liabilities

12

Total liabilities
Equity:Capital stock

15,232

15,232

Capital surplus

450,526

450,757

121,372

112,358(85,649)(85,653)

Retained earnings

8

Treasury shares
Accumulated other comprehensive income (loss)
Equity attributable to owners of parent

4,517

165

505,999492,860

492

439

Total equity

506,491493,298

Total liabilities and equity

952,444966,337

Non-controlling interests－12－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2020 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(2) Condensed Quarterly Consolidated Statements of Income【First nine-month period of this fiscal year】(Millions of yen)
Notes
Revenue

5,9Nine months ended
September 30, 2019

Nine months ended
September 30, 2020

694,763616,774

Cost of sales

357,499

326,746

Gross profit

337,265

290,027

318,810

281,883

Selling and general administrative expenses
Impairment losses of goodwill

1061,859－Other income

11

3,026

2,365

Other expenses

11

11,41016,533

(90)

(310)

(51,880)(6,334)

Share of loss of entities accounted for using equity method
Operating loss

5

Financial revenue

872

611

Finance costs

840

823

Loss for the period before income tax benefit(51,848)(6,546)

Income tax (benefit)

3,802(1,875)

Net Loss for the period(55,650)(4,670)(55,693)(4,644)43(26)(309.40)(25.90)Net loss for the year attributable to:
Owners of the parent
Non-controlling interests

Loss per share (yen)

14

－13－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2020 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

【Third quarter of this fiscal year】(Millions of yen)
Notes
Revenue5

Three months ended
September 30, 2019

Three months ended
September 30, 2020

261,053

230,094

Cost of sales

134,034

119,326

Gross profit

127,019

110,768

Selling and general administrative expenses

113,608

97,984

Other income

11

1,226

1,980

Other expenses

11

993

7,907

(66)

(80)

5

13,578

6,776

Financial revenue

371

206

Finance costs

283

282

13,665

6,700

Income tax (benefit)

4,779

4,908

Net income for the period

8,887

1,792

8,872

1,807

15

(16)

49.47

10.08

Share of loss of entities accounted for using equity method
Operating income

Income for the period before income tax (benefit)

Net income (loss) for the year attributable to:
Owners of the parent
Non-controlling interests

Earnings per (yen)

14

－14－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2020 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(3) Condensed Quarterly Consolidated Statements of Comprehensive Loss
【First nine-month period of this fiscal year】(Millions of yen)
Notes
Loss for the period
Other comprehensive income (loss)

Nine months ended
September 30, 2019

Nine months ended
September 30, 2020

(55,650)(4,670)Remeasurements of defined benefit plans

1,785

－

Net changes in financial assets measured at fair value throughother comprehensive loss

(325)

(3,364)

Subtotal

1,460(3,364)(686)(3,411)

Items that will not be reclassified subsequently to profit or loss:

Items that may be reclassified subsequently to profit orloss:
Cash flow hedges
Subtotal
Total other comprehensive income (loss) for the period
Total comprehensive loss for the period(686)(3,411)773(6,775)(54,877)(11,446)(54,920)(11,420)

43(26)

Comprehensive income (loss) attributable to:
Owners of parent
Non-controlling interests－15－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2020 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

【Third quarter of this fiscal year】(Millions of yen)
Notes
Net income for the period
Other comprehensive income (loss)

Three months ended
September 30, 2019

Three months ended
September 30, 2020
8,887

1,792

Remeasurements of defined benefit plans(0)－

Net changes in financial assets measured at fair value throughother comprehensive income (loss)

83

13

Subtotal

83

13

(309)

(1,746)

Subtotal
Total other comprehensive income (loss) for the period(309)(1,746)(226)(1,733)

Total comprehensive income for the period

8,661

58

Items that will not be reclassified subsequently to profit or loss:

Items that may be reclassified subsequently to profit orloss:
Cash flow hedges

Comprehensive income (loss) attributable to:
Owners of parent
Non-controlling interests

－16－

8,646

74

15

(16)

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2020 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(4) Condensed Quarterly Consolidated Statements of Changes in Equity
Nine months ended September 30, 2019
(Millions of yen)
Equity attributable to owners of the parent
Accumulated
othercomprehensive
incomeTreasuryshares

Noncontrollinginterests

Capital stockSharepremium

Retainedearnings

Balance as of January 1, 2019
(Before restatement)

15,232450,533

182,418(72,651)

4,915

580,448458

580,906

Adjustments resulting from theadoption of IFRS 16

－

－

(338)

－

－

(338)

－

(338)

Balance as of January 1, 2019
(After restatement)

15,232450,533

182,080(72,651)

4,915

580,110458

580,568－－(55,693)－－(55,693)43(55,650)

－

－

－

－

773

773

－

773

－

－

(55,693)－773(54,920)

43(54,877)

Total

Total

Comprehensive income for theperiodNet (loss) income for the period

Other comprehensive income

Total comprehensive income (loss)
for the year
Transactions with owners

Dividends of surplus

8

－

－

(9,071)－－(9,071)(22)(9,093)Purchase of treasury stock

7

－

(64)

－

(12,998)－(13,061)－(13,061)

Disposal of treasury stock

－

(0)

－

3

－

2

－

2

Transactions of share-based
payment

－

30

－

－

－

30

－

30

－

－

2,355

－

(2,355)

－

－

－

－

－

－

－

(96)

(96)

－

(96)

－

(34)

(6,716)(12,995)(2,451)(22,196)(22)(22,218)

15,232450,499

119,670(85,645)3,238

502,994479

503,473

Reclassification fromaccumulated othercomprehensive income toretained earnings
Reclassification fromaccumulated othercomprehensive income to nonfinancial assets
Total transactions with owners
Balance as of September 30, 2019－17－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2020 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Nine months ended September 30, 2020
(Millions of yen)
Equity attributable to owners of the parent

Balance as of January 1, 2020

Accumulated
othercomprehensive
income (loss)

Treasuryshares

Noncontrollinginterests

Capital stockSharepremium

Retainedearnings

15,232450,526

121,372(85,649)4,517

505,999492

506,491－－(4,644)－－(4,644)(26)(4,670)

－

－

－

－

(6,775)(6,775)－(6,775)－－(4,644)－(6,775)(11,420)(26)(11,446)

Total

Total

Comprehensive loss for the period
Net loss for the period

Other comprehensive loss

Total comprehensive loss) for theperiodTransactions with owners

Dividends of surplus－－(4,484)－－(4,484)(28)(4,512)

Purchase of treasury stock

－

－

－

(6)

－

(6)

－

(6)

Disposal of treasury stock

－

(1)

－

3

－

2

－

2

Transactions of share-based
payment

－

232

－

－

－

232

－

232

－

－

114

－

(114)

－

－

－

－

－

－

－

2,538

2,538

－

2,538

－

231

(4,370)

(4)

2,424

(1,719)(28)(1,747)

15,232450,757

112,358(85,653)165

492,860

439

493,298

Reclassification fromaccumulated othercomprehensive income (loss) toretained earnings
Reclassification fromaccumulated othercomprehensive income to nonfinancial assets
Total transactions with owners

Balance as of September 30, 2020

8

－18－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2020 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(5) Condensed Quarterly Consolidated Statements of Cash Flows(Millions of yen)
Nine months ended
September 30, 2019

Notes

Nine months ended
September 30, 2020

Cash flows from operating activities
Loss for the period before income tax benefit(51,848)(6,546)

Adjustments for:
Depreciation and amortization

42,45644,286

Impairment loss

62,282

86

Change in allowance for doubtful accounts

(509)

35

Interest and dividends income

(317)

(297)

Interest expenses
Share of loss of entities accounted for using equity
methodGain on sale of property, plant and equipment
Loss on disposal and sale of property, plant andequipment(Increase) decrease in trade and other receivables

840

823

90

310

(1,326)

(5)

1,348

1,053

(5,063)

3,932

Increase in inventories(5,042)(3,992)

Increase in other assets(1,519)(8,542)

Increase in trade and other payables

4,768

1,847

(Decrease) Increase in net defined benefit liabilities(1,155)

1,689

Decrease in other liabilities(1,290)(1,072)OthersSubtotalInterest received

(938)

294

42,77733,90200Dividends received

316

297

Interest paid

(662)

(738)

Income taxes paid

(13,634)(6,000)

Income taxes refund

1,665

7,677

Net cash (used in) provided by operating activities

30,46435,138(58,833)(60,135)

3,366

120

Cash flows from investing activities
Acquisitions of property, plant and equipment andintangible assets
Proceeds from sales of property, plant and equipment
and intangible assets
Purchases of other financial assets
Proceeds from sale of other financial assets
Other
Net cash used in investing activities

－19－

(40)

(39)

1,683

808

75

(13)

(53,748)(59,259)This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2020 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(Millions of yen)
Nine months ended
September 30, 2019

Notes

Cash flows from financing activities
Increase in short-term loans payable

Nine months ended
September 30, 2020

(24,000)

50,000

Repayments of long-term loans payable(1,643)(1,249)Proceeds from issuance of bonds

6

149,441－

Dividends paid

8

(9,071)(4,484)

(22)

(28)

Dividends paid to non-controlling interests
Proceeds from disposal of treasury stock2

2(13,090)(6)

Repayments of lease liabilities(5,627)(5,473)

Net cash provided by financing activities

95,98938,761

Net change in cash and cash equivalents

72,705

14,640Purchases of treasury stock

7

Cash and cash equivalents at the beginning of the year

65,510113,825

Cash and cash equivalents at the end of the period

138,215

128,465－20－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2020 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Notes to consolidated financial statements
1. Introduction
The Company is a holding company domiciled in Japan and is listed on the First Section of the Tokyo Stock Exchange.
Under the Coca-Cola brand, the Company and its subsidiaries (collectively, the "Group") engage in purchases, sales, bottling,
packaging, distribution and marketing of carbonated beverages, coffee beverages, tea-based beverages, mineral water and othersoft drinks in Japan. The Group also develops, manufactures and sells a variety of healthcare products. We delisted from the
Fukuoka Stock Exchange on July 11th, 2020.
The Group’s consolidated financial statements consist of the Company, subsidiaries and associates. The consolidated
financial statements were approved by our Representative Director & President, Calin Dragan and our Representative Director,
Vice President and Chief Financial Officer (Treasurer), Bjorn Ivar Ulgenes on November 12, 2020 and takes into account events
after the reporting period to that date (see notes 15, "events after the reporting period").
2. Basis of preparation
The Company’s condensed quarterly consolidated financial statements have been prepared in accordance with International
Accounting Standards Article 34 "Interim Financial Reporting" based on the Ordinance on the Terminology, Forms, andPreparation Methods of Quarterly Consolidated Financial Statements (Cabinet Office Ordinance No. 64 of 2007).
Condensed quarterly consolidated financial statements should be used in conjunction with consolidated financial statements
for the prior year as they do not include all the information required in the annual consolidated financial statements.
Condensed quarterly consolidated financial statements have been prepared on the basis of cost except for measurement at fairvalue.
Condensed quarterly consolidated financial statements are stated in Japanese yen. All condensed quarterly consolidated
financial information is rounded to the nearest million yen unless otherwise stated.
3. Significant accounting policies
The significant accounting policies applied by the Group in the condensed quarterly consolidated financial statements are thesame as the accounting policies applied in the consolidated financial statements for the prior year.
Income tax benefit for the nine months ended September 30, 2020, has been calculated on the basis of the annual estimatedeffective tax rate. In addition, during the 3rd quarter of the current year, the government subsidies were paid and recognized asother income (non-recurring).
4. Critical accounting judgments, estimates and assumptions
In preparing the condensed quarterly consolidated financial statements in accordance with IFRS, management is required tomake judgments, estimates and assumptions that affect the application of the Group’s accounting policies and the reported
amounts of assets, liabilities, revenue and expenses. Actual results may differ from these estimates. The estimates and theassumptions underlying the estimates are continually reviewed and are based on historical experience and other factors,
including future events, which are believed to be reasonable under the circumstances. Accounting estimates are based on themost appropriate information at the time the condensed quarterly consolidated financial statements are filed. In regard to theimpact of COVID-19 on our business, it is difficult to estimate when it will be converged exactly, but the company updated its
full-year 2020 earnings forecast, reflecting year-to-date business performance and our best estimate of the rest-of-year outlook,based on the assumption that the COVID-19 situation does not materially worsen and therefore gradual recovery of consumer
traffic continues, with no further intensification of the competitive environment.
If there are changes to any future estimates, the impact of the revision is recognized in the condensed quarterly consolidated
statements of income and condensed quarterly consolidated statements of comprehensive income subsequent to the reporting
period in which they are revised.
Accounting judgments, estimates and assumptions that have a significant impact on the condensed quarterly consolidated
financial statements will be revised based on the same concept as in the consolidated financial statements for the previous
consolidated fiscal year.
－21－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2020 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

5. Segment Information
Operating segments are defined as the components of the Group for which separate financial information is available that isevaluated regularly by the Board of Directors, chief operating decision-maker, in making resource allocation decisions and inassessing performance. The Group has established an organizational management system for each product and service. Based on
the types and characteristics of products and sales markets, the Group identified the following operating segments. No operating
segments have been aggregated to form reportable segments.
The principal products and services belonging to the reportable segments are as follows, and the Healthcare and Skincare
segment is operated by a wholly owned subsidiary, Q'SAI CO., LTD. and its subsidiaries
Reportable segments

Principal Products and Services

Beverage Business

Purchase, manufacture and sale of carbonated beverages such as Coca-Cola, coffee and black tea
beverages, mineral water, bottling, packaging, distribution and marketing, vending machine-related
business in Japan

Healthcare & Skincare Business

Manufacture and sale of kale juice (aojiru) and other products made from Kale, as well as the
manufacture and sale of health foods, cosmetics and other related products

The Board of Directors evaluates the performance of its segments in comparison to its peers based on operating income
reported in accordance with generally accepted accounting standards (IFRS). The accounting methods used for operating segment
reported are the same as those described in notes 3 "Significant accounting policies."－22－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2020 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Reportable segment information is as follows:
Impairment loss of 61,859 million yen was recorded in the Beverage Business during the first nine-month period of the prior year.
Third quarter of the prior year (January 1, 2019 –September 30, 2019)
Reportable segments(Millions of yen)

Revenues to external customers

676,015

Healthcare &SkincareBusiness
18,748Intersegment revenue
Total revenue－
676,015－
18,748－694,763

Segment profit (loss)(54,369)

2,489(51,880)

Beverage
Business

Reportablesegments
Total
694,763

Adjustment

Total

－
－

694,763－－694,763－(51,880)

Adjustments
Financial revenue

872

Finance costs

840

Loss before income tax benefit(51,848)

Third quarter of the current year (January 1, 2020 – September 30, 2020)(Millions of yen)

Reportable segments

598,547

Healthcare &SkincareBusiness
18,227

Reportablesegments
Total
616,774－－－－

616,774－

Total revenue

598,547

18,227616,774－

616,774

Segment profit (loss)(8,953)

2,619(6,334)－(6,334)Beverage
Business
Revenues to external customers
Intersegment revenue

Adjustment

Total

－

Adjustments
Financial revenue

611

Finance costs

823

Loss before income tax benefit(6,546)

Third quarter of the prior fiscal year (July 1, 2019 – September 30, 2019)
Reportable segments(Millions of yen)Intersegment sales revenue

254,611－

Healthcare &SkincareBusiness
6,442－

Reportablesegments
Total
261,053－

Total sales revenue

254,611

6,442

Segment profit (loss)

12,688890

Beverage
Business
Sales revenue to external customers

Adjustment

Total

－
－

261,053－

261,053－

261,053

13,578－

13,578Adjustments
Financial revenue

371

Finance costs

283

Income before income tax

13,665

Third quarter of the current fiscal year (July 1, 2020 – September 30, 2020)(Millions of yen)

Reportable segments

223,949

Healthcare &SkincareBusiness
6,145

Reportablesegments
Total
230,094－－－－

230,094－

Total sales revenue

223,949

6,145

230,094－

230,094

Segment profit (loss)

5,983

793

6,776

－

6,776

Beverage
Business
Sales revenue to external customers
Intersegment sales revenue

Adjustments
Financial revenue

Adjustment

Total

－

206

Finance costs

282

Income before income tax

6,700

－23－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2020 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

6. Bond
The issuance of the bonds was as follows.
Third quarter of the previous fiscal year (July 1, 2019 – September 30, 2019)

Name

Name of bond

The
CompanyThe
CompanyThe
Company

Date of issue

1st Unsecured bond2nd Unsecured bond
3rd Unsecured bondIssue amount

September 19
2019
September 19
2019
September 19
2019Interest rate(%)

Collateral

40,0000.10

None60,0000.20

None50,0000.27

None(Millions of yen)
The due date
for redemption
September 19
2024
September 18
2026
September 19
2029

7. Acquisition of treasury stock
Based on the resolution of the Board of Directors on November 9, 2018, the Company acquired its treasury stock during thethird quarter of the prior year. As a result of this acquisition, treasury stock increased by 4,120,300 shares in the third quarter ofthe prior year.
8. Dividends
Dividends payments were as follows:First nine-month of the prior year (January 1, 2019 – September 30, 2019)
Resolution

Type of shares

Total amount ofdividends paid
(Millions of yen)

Dividends per
share
(Yen)

Dividend record date

Effective dateOrdinary share

4,587

25

December 31, 2018

March 27, 2019

Ordinary share

4,484

25

June 30, 2019

September 2, 2019

March 27, 2019
Ordinary General Meetingof Shareholders
August 7, 2019
Board of directors

First nine-month of the current year (January 1, 2020 – September 30, 2020)
Resolution

Type of shares

Total amount ofdividends paid
(Millions of yen)

Dividends per share(Yen)

Dividend record date

Effective dateOrdinary share

4,484

25

December 31, 2019

March 27, 2020

March 26, 2020
Ordinary General Meetingof Shareholders－24－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2020 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

9. Revenue
The Group's organizational structure is based on two businesses, the Beverage business and Healthcare & Skincare business.
These two businesses are components for which discrete financial information is available, and whose operating results are
regularly reviewed by the entity’s Board of Directors (chief management decision maker) to make decisions about resources
to be allocated to the segment and assess its performance. Therefore, the revenue in these two businesses are presented as“Revenue” in the consolidated financial statement of profit and loss. In the Beverage business, the Group purchases,
manufactures, and sells carbonated beverages such as Coca-Cola, coffee beverages, black tea beverages, mineral water andother beverages in Japan. In the Healthcare & Skincare business, the Group manufactures and sells kale juice (aojiru) and otherproducts made from Kale and manufactures and sells health foods and cosmetics and other related products.
Revenue for sales of these products is recognized primarily at the time of delivery as the customer has obtained control overthe products and the performance obligation is satisfied.
Payments relating to such performance obligations are received generally within two months of delivery. The contracts withcustomers do not include any material financial elements.
The contract liabilities, refund liabilities, amount of assets recognized from the costs of obtaining a contract or to fulfil acontract and amount of revenue recognized from performance obligations satisfied in prior periods were immaterial. In addition,
information regarding the remaining performance obligations is omitted as there are no significant transactions in which theestimated individual contract periods exceed one year in the Group.
The breakdown of revenue and the relationship between reportable segments is as follows.
First nine-month of the prior year (January 1, 2019 – September 30, 2019)(Millions of yen)
Reportable segments
Beverage business

Healthcare &Skincare business

Total

675,276－

675,276

Health food－

18,74818,748

Other

739

－

739

676,015

18,748694,763

Beverage

Total

First nine-month of the current year (January 1, 2020 – September 30, 2020)(Millions of yen)
Reportable segments
Beverage business

Healthcare &Skincare business

Total

597,914－597,914

Health food－

18,227

18,227

Other

633

－

633

598,547

18,227616,774

Beverage

Total

－25－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2020 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

10. Impairment losses of goodwill
Impairment losses on goodwill occurred in the Beverage Business during the previous consolidated second quarter. The
earnings forecast based on the mid-term plan up to 2024 announced on August 7, 2019 is expected to be lower than thebusiness plan expected at the time of acquisition of Coca-Cola Bottlers Japan Inc. (formerly Coca-Cola East Japan Co., Ltd.)As a result, based on the mid-term plan, we assessed the recoverable value of the cash-generating unit group to which the
goodwill belongs. As a result, the Company recorded an impairment loss of goodwill of 61,859 million yen in the previous
consolidated second quarter.
11. Other income and other expenses
The breakdown of other income and other expenses are as follows:
Third quarter of the prior year

Third quarter of the prior year

(January 1, 2019 – September 30, 2019)(January 1, 2020 – September 30, 2020)

1,326

167

Rent income

288

266

Government subsidies (Note 1)

－

1,782

1,412

150

3,026

2,365

423

86

2,009

1,652

139

3,440

Special retirement allowance (Note 3)

8,698

7,435

Temporary paid leave expenses (Note 4)

－

2,841

Product valuation losses (Note 5)－

273

Costs of postponing the Olympics (Note 6)

－

257

Other

142

549

11,41016,533

Other income
Gains on sales of property, plant and equipment

Other
Total

Other expense
Impairment losses
Losses on sales and disposals of property, plant andequipment
Transformation-related expenses (Note 2)

Total(Note) 1. Government subsidies are grants to cover employee’s temporary leave cost due to the spread of COVID-19 during the firstnine-month of the current year.
2. Transformation-related expenses are expenses related to measures aimed at creating an efficient new system with the aimof creating more value and further improving productivity for the sustainable growth of the Group.
3. Special retirement allowances are allowances and outplacement support expenses incurred in the implementation of thevoluntary retirement program for the previous consolidated third quarter and the current consolidated third quarter.
4. Temporary paid leave expenses are the allowance associated with employee’s temporary leave due to the spread of COVID19. The expenses are reclassified from cost of sales and selling and general administrative expenses to other expenses, 315
million yen and 2,525 million yen, respectively.
5. Product valuation loss is a valuation loss of product inventory at the time of the emergency declaration of the government
to prevent COVID-19 outbreak. This is because the product inventory is planned to be disposed due to the effects of thesuspension of operation of restaurants. The losses are reclassified from cost of sales.
6. Costs related to the postponement of the Olympics were incurred by the postponement of the Olympic and Paralympic
Games due to COVID-19. The expenses are mainly for hotels and warehouses cancellation fees and reclassified fromselling and general administrative expenses.

－26－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2020 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

12. Fair value of financial instruments(a) Classification by level of the fair value hierarchy
Financial instruments measured at fair value on a recurring basis after initial recognition are classified into three levelsof the fair value hierarchy, depending on the observability and significance of the inputs used in the measurement.
The fair value hierarchy is defined as follows:
Level 1: fair value (unadjusted) in the active market of the same asset or liability
Level 2: fair value based on inputs other than quoted prices included in Level 1, either directly observable inputs orindirectly, of observable inputs for asset or liability
Level 3: fair value based on unobservable inputs for asset or liability
When more than one input is used to measure the fair value, the level of the fair value hierarchy is determined basedon the lowest level of input that is significant to the fair value measurement as a whole. Transfers between levels of thefair value hierarchy are recognized as having occurred at the beginning of each quarter.
There were no transfers between Level 1 and Level 2 during the third quarter of the prior year and third quarter of thecurrent year.
(b) Fair value measurement
Securities are classified as Level 1 of the fair value hierarchy by the measurement of share prices, if any, in active
market for the same asset or liability. If there is no active market stock price for the same asset or liability, the Group uses
valuation techniques such as stock prices in non-active markets, quoted market prices of similar companies anddiscounted future cash flow models. If significant inputs, such as quoted market prices and discount rates used inmeasurement are observable, such financial instruments are classified as Level 2, but are classified as Level 3 if inputs
used in its measurement include significant unobservable inputs.
Unlisted securities are classified into Level 3 of the fair value hierarchy using valuation techniques based on discounted
future cash flows, valuation techniques based on quoted market prices of similar companies, valuation techniques basedon net asset value, and other valuation techniques. In the fair value measurement of unlisted securities, the Group uses
unobservable inputs such as discount rates and valuation multiples and considers certain illiquidity discounts and noncontrolling interest discounts as needed. The measurement methods for such fair value are determined by the Financedivision in accordance with the Group’s accounting policies.

－27－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2020 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

The valuation techniques and significant unobservable inputs used in Level 3 fair value measurement are as follows:
As of December 31, 2019
Type

Valuation techniqueSignificant unobservable inputs

Interactions between significant unobservable inputs andfair value measurement

Financial
instrument
measured at fairvalue throughothercomprehensive

Comparison of

EBIT Multiple: 9.2-46.5 times

Estimated fair value increases (decreases) when equity

similar

EBITDA Multiple: 8.6times

indices of comparable listed companies of the target arecompanies

PBR: 1.0-2.7 times

high (low)income(Securities)

As of September 30, 2020
Type

Valuation techniqueSignificant unobservable inputs

Interactions between significant unobservable inputs andfair value measurement

Financial
instrument
measured at fairvalue throughothercomprehensive

Comparison of

EBIT Multiple: 6.6－42.6 times

Estimated fair value increases (decreases) when equity

similar

EBITDA Multiple: 14.2 times

indices of comparable listed companies of the target arecompanies

PBR: 1.0－3.0 times

high (low)income(Securities)
EBIT Multiple: Corporate Value/EBIT
EBITDA Multiple: Corporate Value/EBITDAPBR: Price Book Value Ratio－28－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2020 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(c) Financial instrument measured fair value on a recurring basis
The breakdown of financial instrument measured at fair value on a recurring basis is as follows:
As of December 31, 2019
(Millions of yen)
Level 1

Level 2

Level 3

Total

Financial assets
Financial instrument measured at fair value throughprofit or loss:
－

579

－

579

－

579

－

579

22,475－

5,253

27,728

－

－

138

138

Derivative assets
Subtotal
Financial instrument measured at fair value throughother comprehensive income:Securities
Other
Subtotal

22,475－

5,392

27,867

Total

22,475579

5,392

28,446

－

916

－

916

－

916

－

916

Financial liabilities
Financial instrument measured at fair value throughprofit or loss:
Derivative liabilities
Total

As of September 30, 2020
(Millions of yen)
Level 1

Level 2

Level 3

Total

Financial assets
Financial instrument measured at fair value throughprofit or loss:
Derivative assets
Subtotal

－

305

－

305

－

305

－

305

17,319－4,643

21,962Financial instrument measured at fair value throughother comprehensive income:Securities

－

－

126

126

Subtotal

17,319－4,769

22,088

Total

17,319305

4,769

22,392

－

2,083

－

2,083

－

2,083

－

2,083

Other

Financial liabilities
Financial instrument measured at fair value throughprofit or loss:
Derivative liabilities
Total

－29－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2020 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

A reconciliation of the beginning and ending balances of financial instrument classified as Level 3 is as follows:(Millions of yen)
Financial assets measured at fair value through other comprehensive income
Balance at January 1, 2019

4,914

Disposals(0)Gains recognized in other comprehensive income

246

Balance at September 30, 2019

5,160

Balance at January 1, 2020

5,392

Disposals(1)

Losses recognized in other comprehensive income(622)

Balance at September 30, 2020

4,769

Gains or losses recognized in other comprehensive income are recognized in "Net changes in financial asset
measured at fair value through other comprehensive income" in the consolidated statements of comprehensive income.
(d) Financial instrument measured at amortized cost
The components of carrying amount and fair value of financial instruments measured at amortized cost are as follows:
As of December 31, 2019
(Millions of yen)
Carrying amountLong-term loans payable and bonds

Fair value

205,748

Difference
205,627122

As of September 30, 2020
(Millions of yen)
Carrying amountLong-term loans payable and bonds

204,583

Fair value

Difference
204,086497

Long-term loans payable and bonds include current portion. Cash and cash equivalents, trade and other receivables,
trade and other payables, and short-term loans payable are not included in the above table because their fair value
approximates their carrying amount because they are collected and settled in a short period of time.
The main valuation techniques used to measure fair value of the financial instruments in the table above are as follows:a. Loans payable
Loans payable with variable interest rates are calculated using the carrying amount as its fair value because interest
rates are considered to reflect market interest rates in the short term. Loans payable with fixed interest rates are calculated
based on the present value of future cash flows discounted using interest rates adjusted for the remaining term and credit
risk. Loans payable with fixed interest rates are classified into level 2 of the fair value hierarchy.
b. Bonds
For bonds with quoted market prices, the fair value is estimated based on quoted market prices. For bonds without
quoted market prices, the fair value is calculated based on the present value of future cash flows discounted using interest
rates adjusted for the remaining term and credit risk. Bonds with quoted market prices are classified into level 1 of thefair value hierarchy and bonds without quoted market prices are classified into level 2.

－30－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2020 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

13. Retirement benefits
Regarding retirement benefit plans for employees of the Group, some subsidiaries are to adopt defined contribution pension
plans and defined benefit pension plans, which calculate the amount of contributions and benefits based on their position, yearsof services and other factors. However, as of April 1, 2019, the beverage business was unified into a defined contribution
pension plan and a lump-sum retirement plan.
As a result, in the consolidated statement of income for the third quarter, cost of sales, selling, general and administrative
expenses decreased by 2,170 million yen.
14. Earnings per share
The calculation of basic earnings per share attributable to owners of the parent is based on the quarterly net income
attributable to owners of the parent and the weighted average number of common shares issued.
The basis for calculating the basic earnings per share for the third quarter of the current year and prior year is as follows.

Nine months ended
September 30, 2019

Nine months ended
September 30, 2020

Loss for the period attributable to owner of parent (millions of yen)

(55,693)(4,644)Weighted-average shares of ordinary share outstanding (in thousands)

180,002179,350

Loss per share (yen)(309.40)(25.90)Three months ended
September 30, 2019
Net income for the period attributable to owner of parent(millions of yen)
Weighted-average shares of ordinary share outstanding (in thousands)
Earnings per share (yen)

15. Events after the reporting period
Not applicable－31－

Three months ended
September 30, 2020

8,872

1,807

179,353

179,350

49.47

10.08

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2020 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

2. Others
Not applicable－32－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2020 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Part II Information of guarantor companies of the filing company
Not applicable－33－