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.

Consolidated Financial Summary for
the First Quarter Ended March 31, 2018 (Japanese Standard)
May 11, 2018
Listed company name: Coca-Cola Bottlers Japan Holdings Inc.
Code number: 2579
Delegate: Title: Representative Director & President
Contact: Title: Head of Controllers Senior Group, Finance
Expected date of quarterly report submission: May 14, 2018
FY 2018 1Q supplementary information: Yes
FY 2018 1Q financial presentation: Yes

Listed stock exchanges: Tokyo and Fukuoka
URL: https://en.ccbj-holdings.com/
Name: Tamio Yoshimatsu
Name: Masakiyo Uike
Phone: +81-3-6896-1707
Expected date of the dividend payments: －(Fractions of one million yen are rounded down)

1. Consolidated financial results for the 1st quarter 2018 (from January 1, 2018 to March 31, 2018)(Percentages indicate changes over the same period in the prior fiscal year)(1) Consolidated financial results
Net revenues
1st quarter 2018
1st quarter 2017

Operating income

Net profit attributable toshareholders of parent

Ordinary income

million yen%

million yen%

million yen%

million yen%

213,828
99,141

115.7
(1.4)

3,162
2,167

45.9
(1.9)

3,042
1,947

56.2
(5.9)

1,530
942

62.4
(1.2)

Note: Comprehensive income
1Q 2018: (465) million yen - %1Q 2017: 1,101 million yen - %Diluted earnings
per share

Earnings per
share
1st quarter 2018
1st quarter 2017

yen

yen

7.49
8.63

－
－

(2) Consolidated financial position

million yen

million yen

Net assets (excl. noncontrolling interests) tototal assets%

888,897
883,918

622,495
627,48570.0
70.9

Total assets
As of

1st quarter 2018
Full year 2017

Net assets

Reference: Net assets (excl. non-controlling interests)
1Q 2018: 622,076 million yen
End of 2017: 627,058 million yen

2. Dividends(Record date)

End of 1Q

Year ended

Full year 2017
Full year 2018
Full year 2018 (forecast)End of 2Q

Dividends per share
End of 3Q
Year-end

Annual

yen

yen

yen

yen

yen

－
－

22.00

－

22.00

44.00

25.00

－

25.00

50.00

Note: Revisions to the cash dividends forecasts most recently announced: None

3. Forecast of consolidated financial results 2018 (from January 1, 2018 to December 31, 2018)(Percentages indicate changes over the same period in the prior fiscal year)

Operating income

Ordinary income

Net profit
attributable toshareholders ofparent%million yen%

million yen%

million yen%

Yen

1,007,300 15.4

49,70022.5

47,90020.2

28,80014.1

149.66

Net revenues
million yen

Full year 2018

Earnings
per share

Note: Revisions to the forecasts of consolidated financial results most recently announced: None
As a result of the acquisition of treasury stock in April 2018, we revised the average number of outstanding shares during the
fiscal year and changed the forecast of earnings per share.

Notes(1) Changes in significant subsidiaries during the current period: None(2) Application of special accounting in preparing the quarterly consolidated financial statement: None(3) Changes in accounting policies, changes in accounting estimates, and restatement of priorperiod financial statements
1) Changes in accounting policies due to revisions to accounting standards: None2) Changes other than those in 1) above: None3) Changes in accounting estimates: None4) Restatement of prior period financial statements: None(4) Number of outstanding shares (common shares)
1) Number of outstanding shares at the end of period (including treasury stock):
1Q 2018: 206,268,593 shares
FY 2017: 206,268,593 shares
2) Number of treasury stock at the end of period:
1Q 2018: 2,018,159 shares
FY 2017: 2,015,532 shares
3) Average number of outstanding shares during the period (three months):
1Q 2018: 204,251,699 shares
1Q 2017: 109,136,375 shares* These Consolidated Financial Results are not subject to quarterly review procedures conducted by certified public
accountant or audit firm.
* Explanation regarding appropriate use of the forecast, other special instructions
Figures in the above forecast are based on information available to management at the time of announcement.
Due to number of inherent uncertainties in the forecast, actual results may differ materially from theforecast. Furthermore, please refer to “1. Qualitative Information on the Financial Summary for this Quarter(3) Information on the Future Outlook, Including Forecast of Consolidated Financial Results” on page 4 formatters relating to performance forecasts.

Table of contents
Page
Attachment
1.

Qualitative Information on the Financial Summary for this Quarter(1) Details of Consolidated Financial Results ........................................................................................................ 2(2) Details of Consolidated Financial Position....................................................................................................... 4(3) Information on the Future Outlook, Such as Forecast of Consolidated Financial Results .......................... 4

2.

Quarterly Consolidated Financial Statements and Main Notes(1) Quarterly Consolidated Balance Sheets............................................................................................................ 5(2) Quarterly Consolidated Statements of Income and Comprehensive Income.................................................... 7
Quarterly Consolidated Statements of Income ................................................................................................ 7
Quarterly Consolidated Statements of Comprehensive Income ..................................................................... 8(3) Notes to Quarterly Consolidated Financial Statements ..................................................................................... 9(Notes Relating to Assumptions for the Going Concern) ................................................................................ 9(Notes for Case Where Shareholders’ Equity underwent Significant Changes in Value) ............................... 9(Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statement) ............. 9(Additional Information).................................................................................................................................. 9(Segment Information) ..................................................................................................................................... 9

1

1. Qualitative Information on the Financial Summary for this Quarter(1) Details of Consolidated Financial Results
Coca-Cola Bottlers Japan Holdings Inc. (“CCBJH” or the “Company”) has been diligently executing integration andtransformation initiatives with speed, and establishing a foundation for sustainable growth based on our mid-term plan,
the “Growth Roadmap for 2020 & Beyond” announced in June 2017. In 2018, we are pivoting from an integration
focus to a sustainable growth mindset, leveraging the solid foundation we have established over the past year, withinitiatives led by the principles of local presence on a national scale, driving innovation and delivering synergy
commitments.
For the first quarter of the fiscal year ending on December 31, 2018, (January 1, 2018 to March 31, 2018, or “firstquarter”), total nonalcoholic ready-to-drink (NARTD) beverage industry volume performance is expected to beslightly positive, supported by favorable weather in March which offset the impact of cold weather earlier in the year
as well as increased competitive intensity, including new product launches by many industry players. The health foodand cosmetics industries continue to grow, driven by demand from health-conscious consumers and inbound tourism,
while the competitive environment has been marked by successive product launches by various industry players tomeet growing consumer demand.
CCBJH’s first quarter results are summarized as follows. In addition to this qualitative information section, pleasealso see the supplemental earnings presentation material posted on our Company IR website (https://en.ccbjholdings.com/ir/library/presentation.php), which will be used for the earnings presentation and webcast on Monday,
May 14, 2018 at 1:30 p.m. (JST).
Highlights of First-Quarter Results
・ Reported net revenue increased significantly due to the prior-year business integration, effective April 1, 2017.
Net revenue decreased 2% on a pro-forma basis, as vending channel performance drove negative channel mix
and the competitive environment intensified.
・ Pro-forma beverage volumes grew 1% versus the prior year. Market share grew in both value and volume
terms, with value share growth ahead of volume, and consistently improving share trends since integration.
・ Reported operating income grew 46% versus prior year. Pro-forma operating income decreased 14%, primarily
due to 1.4 billion yen goodwill amortization in the first quarter from the prior-year business integration.
Without this integration-related goodwill amortization, pro-forma operating income growth was positive.
・ Generated 4 billion yen net synergies mainly from supply chain and procurement, on track to achieve full-yeartarget of 8 billion yen.
・ Clear financial framework for value creation: Completed repurchase of 8.28% of total outstanding shares,
announced new dividend policy and introduced performance-oriented equity-based compensation program fordirectors and executive officers.
・ Continued to simplify our organizational and legal entity structure. The number of legal entities decreased from25 on Day One to 14 on April 1, 2018.

*Pro-forma: Assuming the business integration of Coca-Cola West Co., Ltd. (CCW) and Coca-Cola East Japan Co.,
Ltd. (CCEJ) from January 2017 and estimating 2017 results using the same standard.

Review of Results

Reported Results
Q1 (January to March)
In Million JPY

2017

2018

YoY

Net Revenue

99,141

213,828+115.7%

Operating Income

2,167
942

3,162
1,530

+45.9%+62.4%Net Income Attributable to Owners of Parent*2017 results are consolidated results of former CCW in the first quarter, and integrated results of CCBJH from2

April 1, 2017 to December 31, 2017.
First-quarter reported consolidated net revenue was JPY 213,828 million, an increase of 114,686 million yen, or 116%
compared to the prior year period, and consolidated net revenue of the beverage business increased 114,943 million
yen to 206,588 million yen (up 125%) year-on-year, primarily due to the business integration of CCW and CCEJ
effective April 1, 2017. Consolidated net revenues of the healthcare & skincare business fell by 257 million yen to7,240 million yen (down 3%) year-on-year as growth of new products launched in 2017 did not fully offset weakerperformance of the underlying product portfolio.
First-quarter reported operating income was JPY 3,162 million, an increase of 995 million or 46% year-on-year.
Operating income of the beverage business increased 951million yen, or 72% year-on-year to 2,272 million yen, led
by the business integration of CCW and CCEJ. Operating income in the healthcare & skincare business was 890
million yen, an increase of 43 million yen or 5% year-on-year, as we continued a strong focus on operating efficiency
in sales promotion expenses, etc. First-quarter net income attributable to owners of parent was JPY 1,530 million, an
increase of JPY 588 million, or 62% versus prior year period reflecting increase of operating income, etc.

<Reference>
Pro forma Results
Q1 (January to March)
In Million JPY

2017

2018

YoY

Net Revenue

218,081

213,828-2%

Operating Income

3,690

3,162

-14%

Net Income (Loss) Attributable to Owners of Parent
Sales volume of beverage business (Million cases)

1,498
110

1,530
111

+2%
+1%

Pro-forma net revenue, assuming the business integration of CCW and CCEJ from January 2017 and estimating 2017
results using the same standard, decreased 4,253 million yen or 2% year on year to 213,828. The beverage businesssales volume grew 1% year on year, with value and volume-share improvements continuing. The volume decrease inprofitable vending, together with an increase in pricing competition, negatively impacted overall price/mix. Proforma operating income decreased 528 million yen, or 14%, to 3,162 million yen mainly due to goodwill amortization
resulting from the business integration in April 2017. Without the first-quarter impact of goodwill amortization, proforma operating income growth would have been positive. Other drivers of operating income performance include
higher direct marketing expenses (DME) in the quarter, partially offset by a decrease of depreciation expenses due tocycling of accounting harmonization actions (change of depreciation method, useful lives, etc.) in the prior year. First
quarter pro-forma net income attributable to owners of parent was JPY 1,530 million, an increase of JPY 31 million or
2% year on year.
Beverage business pro-forma volume performance:
First quarter volume grew 1%. This performance was mainly driven by growth of OTC (over-the-counter) channels.
The Supermarket channel grew 6% versus prior year led by growth in sparkling, non-sugar tea, waters, etc. The Drug
& Discounter channel grew 12%, driven by the broad-based growth across multiple beverage categories. Convenience
Store volume grew 3% supported by the growth of sparkling, non-sugar tea, etc. Vending volume declined 6% versus
prior year, with growth of sparkling, non-sugar tea and sports categories being offset by overall weakness in thevending market as well as negative performance in coffee.
By beverage category, sparkling beverages and non-sugar tea showed solid performance across major sales channels,
supported by the newly-launched Coca-Cola Peach, Canada Dry The TANSAN sparkling water, Ayataka Chaba no
Amami green tea, and others. Volume in both categories grew 6% versus prior year. The sports category grew 4%
with a recovery in Drug & Discounter, Convenience Stores and Vending channels supported by the PyongChang
Olympic Games campaign. Coffee volume in the Convenience Store channel was flat versus prior year, supported bycustomer-exclusive products, etc., however, category volume declined 7% as a result of weak performance in Vending.
Water volume declined 3% mainly in Convenience Stores and Vending due to cycling of new product launches in theprior year as well as intensified competition, etc.
3(2) Details of Consolidated Financial Position
The financial positions at the end of the first quarter are as follows:
Assets at the end of the quarter were JPY 888,897 million, an increase of JPY 4,978 million from the end of theprevious fiscal year. This is mainly attributable to an increase of cash and deposits, etc. in anticipation of thesettlement of the tender offer to repurchase shares announced in February.
Liabilities at the end of this quarter were JPY 266,402 million, an increase of JPY 9,969 million from the end of
previous fiscal year. This is mainly due to an increase of accounts payable-trade as well as short-term loans
payable in anticipation of the settlement of the tender offer to repurchase shares announced in February.
Net assets at the end of this quarter were JPY 622,495 million, a decrease of JPY 4,990 million. This is mainly due
to decrease of retained earnings as a result of paying year-end dividends, net unrealized gain on other marketablesecurities, deferred gain/loss on hedges, etc.
(3) Information on the Future Outlook, Such as Forecast of Consolidated Financial Results
Full-year consolidated performance forecasts for the fiscal year ending December 31, 2018 remain unchanged fromthe performance forecast released on February 13, 2018.

4

2. Quarterly Consolidated Financial Statements and Main Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of December 31, 2017
AssetsCurrent assets
Cash and deposits
Trade notes and accounts receivable
Marketable securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Sales equipment, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Franchise intangible
Other
Total intangible assets
Investments and other assets
Investment securities
Retirement benefit assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets

101,858
69,26617,00054,357267
7,323
36,277(376)

127,034
69,576－52,727564
9,845
37,849(346)

285,974

297,251

73,14567,382
111,800
151,375591
5,897
410,192

72,29265,498112,419
151,312311
5,649
407,485

76,55750,09814,437141,092

75,42649,447
13,960138,834

31,792257
15,567(958)
46,659597,944

30,381
268
15,610(935)
45,325591,645888,897

883,918

5

As of March 31, 2018

(Millions of yen)
As of December 31, 2017
Liabilities
Current liabilities
liabilities
Current
Trade notes and accounts payablepayableShort-term loans payable
Current portion of long-term borrowings
Accrued income taxes
Other accounts payable
Provision for sales and promotion expenses
Provision for bonuses
Provision for directors’ bonuses
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term loans payable
Net defined benefit liability

As of March 31, 201840,49615,990
－
1,817
8,356
55,410
427
2,521
134
17,19347,75418,70517,0001,747
1,094
52,098462
3,058
28
15,244

126,357

138,488

66,00050,00012,031

66,00011,30820,358－30
90
31,56319,75738
29
90
30,687130,075
256,432

127,913
266,402

15,231
450,568
155,535(4,692)

15,231
450,568
152,572(4,703)

Total shareholders' equity
Accumulated other comprehensive income
Net unrealized gains (or losses) onother marketable
Deferred
gains (orsecurities
losses) on hedges

616,642

613,668

6,886
590

5,907

Foreign currency translation adjustments
Accumulated adjustments for defined
benefitplans
Total accumulated
other comprehensive
Non-controllinginterests
incomeNet assets
Total liabilities and equity

12
2,926

11
2,995

10,416426
627,485
883,9188,407
418
622,495
888,897

Provision for performance-linked incentive
Liabilities for directors' retirement benefits
Provision for environmental measures
Other
Total non-current liabilities
Total liabilities
EquityShareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock

6

(507)

(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statements of Income)(First three-month period of this fiscal year)(Millions of yen)Three months ended
March 31, 2017
Net revenues
Cost of goods sold
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Share of profit of investees equity-method
Rent income
Gain on sales of valuable wastes
Other
Total non-operating income
Non-operating expenses
Interest expense
Investment loss on equity method
Loss on disposal of property plant and equipment
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sale of property plant and equipment
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Business integration-related expenses
Total extraordinary losses
Income before income taxes and non-controllinginterests
Income taxes - current
Income taxes - deferred
Total income taxes
Net profit
Net profit attributable to non-controlling interests
Net profit attributable to shareholders of parent

7

Three months ended
March 31, 2018

99,14147,17951,962
49,794
2,167

213,828
103,317
110,511
107,348
3,162

10
18
40
29
12
94
204

1
24
－
102
133
181
443

113
－
134
176
424
1,947

136
1
314
110
563
3,042

42
16
59

－
0
0

536
536

－
－

1,470

3,042

663
(150)
513
956
14
942

1,149
350
1,499
1,542
12
1,530

(Quarterly Consolidated Statements of Comprehensive Income)(First three-month period of a fiscal year)(Millions of yen)Three months ended
March 31, 2017

Net profit
Other comprehensive income
Net unrealized gains (or losses) on othermarketable securities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Remeasurements of defined benefits
Share of other comprehensive income ofinvestees equity-method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toshareholders of the parent
Non-controlling interests

8

Three months ended
March 31, 2018

956

1,542

(0)

(979)

－
22
127
(5)

(1,097)
(0)
71
(2)

144
1,101
1,086

(2,008)
(465)
(478)

14

12

(3) Notes to Quarterly Consolidated Financial Statements(Notes Relating to Assumptions for the Going Concern)
Not applicable.
(Notes for Case Where Shareholders’ Equity underwent Significant Changes in Value)
Not applicable.
(Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statement)
Not applicable.
(Additional Information)(Changes in the Presentation)(Quarterly Consolidated Statements of Income)“Rent income” and “gain on sales of valuable wastes,” which were included in “other” in “non-operating income”
in the first three-month period of the previous fiscal year, are shown separately from the current period, considering
their significant monetary impacts. To reflect this change in presentation, the Company has made certain
reclassifications to its consolidated financial statements for the first three-month period of the previous fiscal year.
As a result, 135 million yen, which was presented in “other” in “non-operating income” in the Consolidated
Statements of Income for the first three-month period of the previous fiscal year, has been reclassified as rent
income (29 million yen), gain on sales of valuable wastes (12 million yen) and other (94 million yen).
(Segment Information)
First three-month period of the previous fiscal year (January 1, 2017 – March 31, 2017)
1. Information on net revenues and profits or losses by reported segment(Millions of yen)
Healthcare & skincare
business

Beverage business

Total

Net revenues
Net revenues-outside
customers
Net revenues andtransfer-inter-segment

91,644

7,497

99,141

－

－

－

Total

91,644

7,497

99,141

Segment profit

1,320

846

2,167

(Note) Net revenues and Segment profit are equivalent to Net revenues and Operating income in Quarterly Consolidated
Statements of Income, respectively.

First three-month period of this fiscal year (January 1, 2018 – March 31, 2018)
1. Information on net revenues and profits or losses by reported segment(Millions of yen)
Healthcare & skincare
business

Beverage business

Total

Net revenues
Net revenues-outside
customers
Net revenues andtransfer-inter-segment

206,5887,240

213,828

－

－

－

Total

206,5887,240

213,828

Segment profit

2,272

890

3,162

(Note) Net revenues and Segment profit are equivalent to Net revenues and Operating income in Quarterly Consolidated
Statements of Income, respectively.
92. Matters relating to changes in the Company’s reported segments(Change of segment name)
From the first quarter consolidated accounting period, the segment name of "Soft drink business" has beenchanged to "Beverage business" in order to more properly display the business contents.
There is no effect on segment information due to segment name change.

10