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 Third Quarter Ended September 30, 2019 (IFRS)
November 7, 2019
Listed company name: Coca-Cola Bottlers Japan Holdings Inc.
Code number: 2579
Representative: Representative Director & President
Contact: Head of Controllers Senior Group, Finance
Expected date of quarterly report submission: November 11, 2019
FY 2019 3Q supplementary information: Yes
FY 2019 3Q earnings presentation: Yes

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

1. Consolidated financial results for the 3rd quarter 2019 (from January 1, 2019 to September 30, 2019)(Percentages indicate changes over the same period in the prior fiscal year)(1) Consolidated financial results
Net sales

Business Income

Operating profit

Net profit

millionyen％

millionyen％

millionyen％

millionyen％

millionyen％

millionyen％

694,763(2.2)

17,103(40.1)(51,880)－(55,650)－(55,693)－(54,877)－

710,317－28,548－20,090－12,882－

12,854－

12,266－rd

3 quarter2019
3rd quarter2018

Net profit for the year
Total comprehensive
attributable to owners
incomeof the parent

Earnings per share

3rd quarter 2019
3rd quarter 2018

Diluted earnings per share

yen

yen

(309.40）
66.26

－
－

* “Business Income” is a measure of our underlying or recurring business performance after the adoption of IFRS, and deducts cost of
goods and SG&A from revenue, and includes other income and expenses which we believe are recurring in nature.

(2) Consolidated financial position
Total assets

Sep. 30, 2019
Dec. 31, 2018

Total equity

million yen

million yen

968,031
877,472

503,473
580,906

Equity attributable to parent Ratio of equity attributableownersto parent owners
million yen％

502,994
580,448

52.0
66.2

2. Dividends
Dividends per share
End of 2Q
End of 3Q
Year-end

End of 1Q(Record date)Year ended

Annual

yen

yen

yen

yen

yen

－
－

25.00
25.00

－

25.00

50.00

25.00

50.00

Full year 2018
Full year 2019
Full year 2019 (forecast)－－

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

3. Forecast of consolidated financial results 2019 (from January 1, 2019 to December 31, 2019)
Net sales

Full year
2019

Business Income(Percentages indicate changes over the same period in the prior fiscal year)
Net profit for the year
Earnings per
Operating profit
Net profit
attributable to owners
shareof the parent

millionyen％

millionyen％

millionyen％

millionyen

923,300(0.4)

15,400(33.8)(53,100)－(56,700)％－

million
yen

％

yen

(56,700)－(315.26)

Note: Revisions to the forecasts of consolidated financial results most recently announced: None

Notes(1) Changes in significant subsidiaries during the current period: None(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period
financial statements after error corrections
1) Changes in accounting policies due to revisions to accounting standards under IFRS
: Yes
2) Changes other than those in 1) above: None3) Changes in accounting estimates: None(3) Number of outstanding shares (common shares)
1) Number of outstanding shares at the end of period (including treasury shares):
3Q 2019: 206,268,593shares
FY 2018: 206,268,593 shares
2) Number of treasury shares at the end of period:
3Q 2019: 26,915,847 shares
FY 2018: 22,793,049 shares
3) Average number of outstanding shares during the period:
3Q 2019: 180,002,117 shares
3Q 2018: 194,004,590 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, Such as Forecast of Consolidated Financial Results” on page 5 formatters relating to performance forecasts.

Table of contents
Page
Attachment
1.

Qualitative Information on the Financial Summary for this Quarter .........................................................................2(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 .......................... 52.

Condensed Quarterly Consolidated Financial Statements and Main Notes ............................................................. 6(1) Condensed Quarterly Consolidated Balance Sheets ......................................................................................... 6(2) Condensed Quarterly Consolidated Statements of Income and Comprehensive Income ................................. 8(3) Condensed Quarterly Consolidated Statements of Changes in Equity .......................................................... 10(4) Notes to Condensed Quarterly Consolidated Financial Statements ................................................................ 12(Notes Relating to Going Concern Assumption) .......................................................................................... 12(Changes in Accounting Policies) ................................................................................................................. 12(Segment Information) .................................................................................................................................. 13

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”) announced year-to-date third quarter
results for the fiscal year ending on December 31, 2019 (January 1, 2019 to September 30, 2019). In this period,
total nonalcoholic ready-to-drink (NARTD) beverage industry volume performance is estimated to be slightly
negative versus prior year mainly due to cycling of strong demand driven by hot summer weather last year aswell as unseasonably rainy and cool weather in July. The health food and cosmetics market continues to grow,driven by consumer interest in products with healthy and anti-aging appeal, continued growth of inboundtourism and industry innovation in marketing and new product launches.
For CCBJH, 2019 is a transition year that has been focused on recovery from the flooding damage anddisruption to product supply in 2018, and building a solid foundation for future growth. We have been making
major investments to recover our supply network and progressively expand production capacity throughsecond quarter 2020. In addition, we implemented a wholesale price increase for large PET products in
April—the first increase in 27 years, and an important initiative to encourage more balanced growth between
both volume and value.
We also developed and announced a new five-year strategic business plan, “THE ROUTE to 2024”, withtargets for both Business Income margin and ROE in 2024 of 5% to 6%. The new five-year strategic businessplan includes focused investments to reignite sales growth in close collaboration between CCBJH and the
Coca-Cola (Japan) Company as well as transformational change to drive cost savings. Over the course of the
five-year plan, we expect cost savings of approximately 35 billion yen, representing ongoing savings initiatives
and incremental programs focused on transforming our vending channel operations, evolving our frontline
salesforce capabilities and identifying opportunities across procurement and our supply chain network.
Our year-to-date third quarter Business Income results are roughly in line with our revised full-year outlook(announced in May 2019) for the beverage segment, with continued topline pressure in our health and skincare
segment. Business results in 2019 reflect manufacturing capacity constraints in aseptic PET packaging
combined with ongoing lower manufacturing efficiencies and elevated logistics and distribution expenses as
we recover our supply and distribution infrastructure over the course of this year after the flooding and supply
disruption in 2018. Year-to-date results also reflect impairment of goodwill in the second quarter.
In addition to the qualitative information contained in this report, please also see our earnings presentationmaterial posted on the Company IR website (https://en.ccbj-holdings.com/ir/library/presentation.php) to be
used at our earnings presentation on Friday, November 8, 2019 at 3:30pm (JST). The earnings presentation andaudio will be available live and on demand as an audio webcast in the IR section of the CCBJH website.
Highlights
・Moderating beverage-volume performance year to date, with third-quarter volume down 1% and year-todate volume down 3%. Flat beverage business revenue in the quarter and 2% decline year-to-date as theApril wholesale price increase settles in.
・OTC market share growth in the third quarter in both value and volume. Strong volume performance incoffee and improving trend in vending channel.
・Year-to-date Business Income decreased 40% versus prior year, trending in line with the revised full-yearplan announced in May for the beverage segment, reflecting expected quarterly phasing in 2019 as we cycle
supply disruption primarily in the second half of 2018. Continued topline pressure in the health and skincare
segment.
・Year-to-date operating loss of 51.9 billion yen reflecting the second-quarter goodwill impairment.
・150 billion yen straight bond issued in September to fund the recovery of our supply network and necessary
investments for growth.
・Commissioned new high-speed aseptic manufacturing line at our Kyoto plant in October in addition to two
new lines in the first quarter. On track to add four additional lines through second quarter 2020, including
the newly built Hiroshima Plant to replace the flooded Hongo facility.
・Company-wide implementation of ERP system “CokeOne” completed in October. Now one integrated IT
infrastructure across operations nationwide.
2

・Announced the national launch of alcohol brand Lemon-dou in October 2019, the first-ever alcoholic
beverage brand in the global Coca-Cola system, with in-house production in CCBJI facilities.
・Strong commitment to capability development grounded in new company mission, vision and values alignedwith the strategic business plan.
Review of Results
Year-to-date Q3 (January to September)
In Million JPY, IFRS

2018

2019

Net Revenue

710,317

694,763(2.2%)

Gross Profit

349,385

337,265(3.5%)

Selling, General & Administrative Expenses

YoY

319,943

318,810(0.4%)

Other income (Recurring)

1,113

889

(20.1%)

Other expenses (Recurring)

1,853

2,150

16.1%

Investment gain (loss) on equity method

(154)

(90)

－

Business Income (Loss)

28,548

17,103(40.1%)

Impairment losses of goodwill－

61,859－Other income (Non-recurring)

481

2,137

344.4%

Other expenses (Non-recurring)

8,939

9,260

3.6%

Operating Income (Loss)

20,090(51,880)－

Net Income (Loss) Attributable to Owners of Parent

12,854(55,693)－

Sales volume of beverage business (Million cases)

396

384

(3%)

Q3 (July to September)
In Million JPY, IFRS

2018

2019

Net Revenue

262,214261,053(0.4%)

Gross Profit

128,860

127,019(1.4%)

111,731

113,608

1.7%

Other income (Recurring)

424

329

(22.4%)

Other expenses (Recurring)

456

693

51.9%

Investment gain (loss) on equity method

(120)

(66)

－

16,977

12,980(23.5%)

Other income (Non-recurring)

－

897

－

Other expenses (Non-recurring)

8,939

300

(96.6%)

Operating Income

8,038

13,57868.9%

Net Income Attributable to Owners of Parent

5,115

8,872

73.5%

148

147

(1%)

Selling, General & Administrative Expenses

Business Income

Sales volume of beverage business (Million cases)

YoY* Sales volume of beverage business does not include alcoholic beverage volume.
* We have introduced “Business Income” as a measure of our underlying or recurring business performance after
the adoption of IFRS in 2019. Business income deducts cost of goods and SG&A from revenue and includes
other income and expenses which we believe are recurring in nature.
Year-to-date third quarter net revenue was 694.8 billion yen, a decrease of 15.6 billion yen, or 2.2% comparedto the prior-year period. Net revenue of the beverage business decreased 13.0 billion yen (down 1.9%) versus
the prior-year period, to 676.0 billion yen. Third-quarter beverage volume declined 1%, reflecting
unseasonably cool and rainy weather in July (July volume declined 13%), partly offset by positive cycling ofprior year supply restrictions after the flooding of our Hongo plant. Third-quarter net revenue of the beverage
3business was flat versus prior year supported by improved revenue-per-case as a result of the large PET
wholesale price increase implemented in April. Year-to-date net revenues of the healthcare & skincare businessdeclined 2.6 billion yen (down 12.1%) to 18.7 billion yen, as new product launches and other sales initiatives
could not offset the continued decline of mail/web order sales.
Year-to-date third quarter business income, an indicator of our recurring business performance, was 17.1
billion yen, a decrease of 11.4 billion yen (-40.1%). Business Income of the beverage business was 14.6 billion
yen (down 10.0 billion yen or 40.5%), roughly in line with our revised forecast announced in May. This
reflects volume and revenue trends outlined above, combined with continued lower manufacturing efficiencies
and elevated logistics and distribution expenses this year as we progressively recover and grow supply capacity
after the flooding in the prior year. Partly offsetting this pressure, we achieved labor savings as a result ofintegrating retirement benefit programs and completing a voluntary employee retirement program in the second
quarter. Promotional expenses in the period were also lower, in line with volume performance. Businessincome in the healthcare & skincare business was 2.5 billion yen, a decrease of 1.5 billion yen or 37.4% yearon-year, reflecting lower revenues while we continue to focus on promotional expense control and other costsavings opportunities.
Consolidated operating loss was 51.9 billion yen (20.1 billion yen operating income in prior year period),
mainly driven by the impairment of goodwill in the second quarter. Net income attributable to owners of parent
was a loss of 55.7 billion yen (12.9 billion yen in the prior-year period).
Beverage volume performance by channel and category
Year-to-date volume performance has been impacted by weaker new and renewal launches this year, especiallyin the first half, as well as lower large PET volume due to the wholesale price increase in April andunseasonably rainy and cool weather in July. As a result, supermarket, drug & discounter and convenience
store channel volume declined 5%, 3% and 6% during the period, respectively, while vending volume declined
2% and retail & food volume declined 1%. Supermarket and drug & discounter channels initially were
impacted by the April wholesale price increase, as large PET volume contribution is relatively higher in thesechannels, with double digit volume declines in the second quarter. The trend turned positive in the third quarterwith 1% and 2% volume growth, respectively, as the impact of the wholesale price rise began to moderate andwe benefited from positive cycling of prior year flooding damage and supply constraints. Wholesale revenue
per case has continued to improve in the third quarter. Vending channel turned to 1% volume growth in thethird quarter as the negative trend from 2018 continues to moderate. This improving trend is driven byinitiatives to drive vending purchase transaction growth, such as new package sizes and price points, as well as
third-quarter coffee volume growth of 9% in the vending channel, supported by expanded coverage of the
Georgia Japan Craftsman brand in aseptic PET packaging.
By category, coffee volume grew 1% year-to-date and 7% in the third quarter. We have been expanding
coverage of Georgia Japan Craftsman across all channels as supply capacity becomes available. This, together
with expanded small package offerings in vending has contributed to improving coffee performance. Year-todate non-sugar tea and sports volume decreased 2% and 4%, respectively, impacted primarily by large PET
package volume declines after the wholesale price increase. Sparkling beverages declined 6% year to date due
to weaker product renewals and the wholesale price increase, which was partially offset by the newly-launched
Coca-Cola Energy in the third quarter. Year-to-date water volume declined 11% as we cycled launches ofiLohas brand flavored water as well as the impact of the wholesale price increase. In the third-quarter water
volume declines moderated to negative 3% due to renewed sales of large PET water as we started to cycle thesupply constraints of the prior year.
(2) Details of Consolidated Financial Position
Assets at the end of the quarter were 968.0 billion yen, an increase of 90.6 billion yen from the end of theprevious fiscal year. This is mainly attributable to an increase of cash and cash equivalents from the bondissuance in the third quarter and an increase of fixed assets as a result of commissioning two new productionlines in Kumamoto and Kyoto in the first quarter. In addition, non-current assets increased as a result of newly
including right-of-use assets after the implementation of IFRS 16 starting from this fiscal year. This waspartially offset by a decrease of goodwill from the goodwill impairment recorded in the second quarter.

4

Liabilities at the end of the quarter were 464.6 billion yen, an increase of 168.0 billion yen from the end of
previous fiscal year. This is mainly due to an increase of bonds and debt in non-current liabilities due toissuance of the bond, and an increase of lease liabilities in conjunction with including Right-of-use assets, etc.
Net assets at the end of the quarter were 503.5 billion yen, a decrease of 77.4 billion yen. This is mainly due toa decrease of retained earnings as a result of the goodwill impairment and an increase of treasury shares due tothe completion of the share buyback program in February 2019.
(3) Information on the Future Outlook, Such as Forecast of Consolidated Financial Results
There is no change to the full-year 2019 forecast the company announced on August 7, 2019.

5

2. Condensed Quarterly Consolidated Financial Statements and Main Notes(1) Condensed Quarterly Consolidated Balance Sheets
As of
December 31, 2018
AssetsCurrent assets:
Cash and cash equivalents
Trade and other receivables
Inventories
Other financial assets
Other current assets
Total current assets
Non-current assets:
Property, plant and equipment
Right-of-use assets
Goodwill
Intangible assets
Investments accounted for using equity
methodOther financial assets
Net defined benefit asset
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

6(Millions of yen)
As of
September 30, 2019

65,51092,402
68,781645
10,740238,078

138,215
97,52473,823535
16,920327,017435,305－
88,88066,539456,785
40,53827,021
67,475298

302

34,796
38
6,264
7,274
639,394
877,472

33,034
－
9,101
6,757
641,014
968,031

As ofDecember 31, 2018

(Millions of yen)
As of
September 30, 2019

Liabilities and equity
Liabilities
Current liabilities:
Trade and other payables
Bonds and debts
Lease liabilities
Other financial liabilities
Income taxes payable
Provisions
Other current liabilities
Total current liabilities

105,701
45,512
－
993
3,069
18
22,230177,524

112,156
21,286
6,678
1,183
650
19
22,456

Non-current liabilities:
Bonds and debts
Lease liabilities
Other financial liabilities
Net defined benefit liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities

56,401－749
33,712
2,191
23,082
2,907
119,042

204,471
35,090472
29,791
2,178
25,024
3,107
300,132

Total liabilities

296,566

464,558

Equity:Capital stock
Capital Surplus
Retained earnings
Treasury Shares
Accumulated other comprehensive income

15,232450,533
182,418(72,651)
4,915

15,232450,499
119,670(85,645)3,238

Equity attributable to owners of parent
Non-controlling interests

580,448458

502,994479

Total equity

580,906

503,473

877,472

968,031

Total liabilities and equity

7

164,426

(2) Condensed Quarterly Consolidated Statements of Income and Comprehensive Income(Condensed Quarterly Consolidated Statements of Income)(First nine-month period of a fiscal year)
Nine months ended
September 30, 2018
710,317360,931

Net sales
Cost of sales

349,385
319,943

Gross profit
Selling and general administrative expenses
Impairment losses of goodwill
Other income
Other expenses
Share of income (loss) of entities accounted for using
equity method
Operating income (loss)(Millions of yen)
Nine months ended
September 30, 2019694,763
357,499－
1,594
10,791

337,265
318,81061,8593,026
11,410

(154)

(90)

20,090(51,880)

703
594

872
840

Income (loss) for the period before income taxes

20,200(51,848)

Income tax expense

7,319

3,802

Net income (loss) for the period

12,882(55,650)

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

12,854
28(55,693)43

66.26(309.40)

Financial revenue
Finance costs

Earnings (loss) per share (yen)8(Condensed Quarterly Consolidated Comprehensive Income)(First nine-month period of a fiscal year)(Millions of yen)
Nine months ended
September 30, 2018

Nine months ended
September 30, 2019

Net income (loss) for the period
Other comprehensive income
Items that will not be reclassified subsequently to profit orloss:
Remeasurements of defined benefit plans
Net changes in financial assets measured at fair value
through other comprehensive income

12,882(55,650)

4

1,785

(329)

(325)

Subtotal
Items that may be reclassified subsequently to profit orloss:
Foreign currency translation adjustments of foreign
operations
Cash flow hedges

(325)

1,460

(0)

－

(290)

(686)

Subtotal
Total other comprehensive income (loss) for the period

(290)

(686)

(615)

773

Total comprehensive income (loss) for the period

12,266(54,877)

Comprehensive income (loss) attributable to:
Owners of parent

12,239(54,920)28

43

Non-controlling interests9(3) Condensed Quarterly Consolidated Statements of Changes in Equity
Nine months ended September 30, 2018
(Millions of yen)

Capital stock
Balance as of January 1,
2018Comprehensive income forthe period
Net income (loss) for theperiodOther comprehensive
income (loss)
Total comprehensive income(loss) for the year
Transactions with owners,
etc.
Dividends of surplus
Purchase of treasury
stock
Disposal of treasury
stock
Transactions of sharebased payment
Reclassification fromaccumulated othercomprehensive income toretained earnings
Reclassification fromaccumulated othercomprehensive income tonon-financial assets
Other changes
Total transactions withowners, etc.
Balance as of September 30,
2018

Equity attributable to owners of parent
Accumulated
CapitalRetained
Treasuryothersurplusearnings
Sharescomprehensive
incomeNoncontrollinginterests

Total

Total

15,232450,498

184,317(4,693)

9,258

654,611427

655,038－－

12,854－－

12,85428

12,882

－

－

－

－

(615)

(615)

－

(615)

－

－

12,854－(615)

12,23928

12,266

－
－

－
(25)

(9,173)－－(55,946)－－(9,173)(55,971)(21)－(9,194)(55,971)

－

1

－

2

－

3

－

3

－

80

－

－

－

80

－

80

－

－

60

－

(60)

－

－

－

－

－

－

－

(197)

(197)

－

(197)

－
－

(7)
49

－
(9,113)－(55,944)

－
(257)

(7)
(65,265)7(14)－(65,278)

15,232450,546

188,058(60,637)8,386

601,586441

602,026

10

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

Capital stock
Balance as of January 1,
2019(Before restatement)
Adjustments resulting fromthe adoption of IFRS 16
Balance as of January 1,
2019(After restatement)
Comprehensive income forthe year
Net income (loss) for theperiodOther comprehensive
income (loss)
Total comprehensive
income (loss) for the year
Transactions with owners,
etc.
Dividends of surplus
Purchase of treasury
stock
Disposal of treasury
stock
Transactions of sharebased payment
Reclassification fromaccumulated othercomprehensive income
to retained earnings
Reclassification fromaccumulated othercomprehensive income
to non-financial assets
Total transactions withowners, etc.
Balance as of September
30, 2019

Equity attributable to owners of parent
Accumulated
CapitalRetained
Treasuryothersurplusearnings
Sharescomprehensive
incomeNoncontrollinginterests

Total

Total

15,232450,533

182,418(72,651)

4,915

580,448458

580,906

－

－

(338)

－

－

(338)

－

(338)

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)－－(9,071)－－(9,071)(22)(9,093)

－

(64)

－

(12,998)－(13,061)－(13,061)

－

(0)

－

3

－

2

－

2

－

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

503,47311

(4) Notes to Condensed Quarterly Consolidated Financial Statements(Notes Relating to Going Concern Assumption)
Not applicable.
(Changes in Accounting Policies)
The Group has adopted following standards from the first quarter.
Establishment or revision of accounting
standards and interpretations

Summary of requirements
New standard for leases, replacing IAS 17, requires all leases to be

IFRS 16 Leases(published January 2016)

shown on the statements of financial position as if they were financed
purchases. The new standard sets out the principles for the recognition,measurement, presentation and disclosures of leases.

The Group has adopted IFRS 16 “Leases” (hereinafter, “IFRS 16”), from the first quarter ended March 31, 2019.
The Group retrospectively applied IFRS 16 according to transitional measures, the cumulative effect of thecommencement of application is recognized as an adjustment to the opening balance of retained earnings in the firstquarter. In the transition to IFRS 16, the practical expedient of IFRS 16.C3 was selected as to whether anarrangement contains a lease or not, it takes over the judgment of IAS 17 “Leases” and IFRIC 4 “Determining
whether an Arrangement contains a Lease”.
IFRS 16 requires that lessee's lease not be classified as finance lease or operating lease, but rather as a single
accounting model and, in principle, recognize the right-of-use asset representing the right to use the underlying
asset and the lease liability representing the obligation to pay the lease payments for all lease. However, for shortterm lease or leases for which the underlying asset is of low value, the Group may elect not to apply therequirements of this standard. After recognizing right-of-use asset and lease liability, right-of-use asset depreciationand interest expense related to lease liability are recognized.
In the Group, the lease term of the right-of-use assets is estimated by adding a reasonably reliable period inwhich the option to extend the lease is not exercised or the option to cancel the lease is not exercised. In addition,
the discount rate applied to the lease liabilities for the right-of-use assets uses the lessee's incremental borrowing
rate, and the weighted average is 1.0%. Right-of-use assets are depreciated using the straight-line method mainly
over 15 years from the start date.
As of the end of the previous consolidated fiscal year, finance lease liabilities that were recognized by applying
IAS 17 were 901 million yen.
Of 7,644 million yen (before discount) of the operating lease contracts disclosed by applying this standard,549
million yen (before discount) is accounted for as a small-value asset lease, in addition, there is 37,409 million yen
increase in lease liabilities over a period in which it is reasonably certain that the extension option will be exercised.
As a result, in the consolidated statement of financial position at the beginning of the first quarter under review,
right-of-use assets increased by 44,034 million yen, deferred tax assets increased by 15,200 million yen, leaseliabilities increased by 44,505 million yen, deferred tax liabilities increased by 15,028 million yen and long-term
accounts payable increased by 40 million yen, retained earnings decreased by 338 million yen. Deferred tax assets
and Deferred tax liabilities are offset on the consolidated balance sheets based on IAS 12 “Income taxes”.

12(Segment Information)
Operating segments of the Group are components for which discrete separate financial information isavailable and which are regularly reviewed by the Board of Directors to make decisions about resources to beallocated to the segment and assess its performance. The Group establishes organizational management system foreach product and service and identified “Beverage Business” and “Healthcare & Skincare Business” as operating
segment and reportable segment based on the type and the nature of the products and sales market. Following
reportable segments are identified by the Group and there are no business segments or summarized segments thatconsist of reportable segments other than followings.
Reportable segments
Beverage Business

Healthcare & Skincare Business

Principal Products and Services
Purchase, manufacture and sale of carbonated beverages such as Coca－Cola, coffee
and black tea beverages, mineral water, etc. bottling, packaging, distribution andmarketing, vending machine－related business in Japan
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 each segment compared to other companies in the same
industry by using operating income as reported in accordance with generally accepted accounting principles(IFRS).
Information about reportable segments is as follows:
Impairment loss of 61,859 million yen was recorded in Beverage Business during first nine-month period of
this fiscal year.
First nine-month period of the previous fiscal year (January 1, 2018 – September 30, 2018)

Beverage
Business
Sales revenue to external customers
Intersegment sales revenue
Total sales revenue
Segment profit (loss)
Adjustments
Financial revenue
Finance costs
Income (loss) before tax

688,989－
688,989
15,630

Reportable segments
Healthcare &SkincareBusiness
21,327－
21,327
4,460(Millions of yen)
Reportablesegments
Total
710,317－710,317
20,090Adjustment
－
－
－
－

Total
710,317－710,317
20,090703
594
20,200First nine-month period of this fiscal year (January 1, 2019 – September 30, 2019)

Beverage
Business
Sales revenue to external customers
Intersegment sales accumulation
Total sales revenue
Segment profit (loss)
Adjustments
Financial revenue
Finance costs
Income (loss) before tax

676,015－
676,015(54,369)

Reportable segments
Healthcare &SkincareBusiness
18,748－18,7482,489(Millions of yen)
Reportablesegments
Total
694,763－694,763(51,880)

Adjustment
－
－
－
－

Total
694,763－694,763(51,880)872
840(51,848)

13