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
Fiscal Year Ended December 31, 2018 (IFRS)
February 14, 2019
Listed company name: Coca-Cola Bottlers Japan Holdings Inc.
Code number: 2579
Delegate: Title: Representative Director & President
Contact: Title: Head of Controllers Senior Group Division, Finance

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 general shareholders meeting: March 26, 2019
Expected date of the dividend payments: March 27, 2019
Expected date of submission of annual securities report: March 27, 2019
FY 2018 supplementary information: Yes
FY 2018 financial presentation: Yes(Fractions of one million yen are rounded)

1. Consolidated financial results for the fiscal year ended December 31, 2018 (from January 1, 2018 to December 31, 2018)(Percentages indicate changes over the same period in the prior fiscal year)(1) Consolidated financial results
Net sales

Business Income

Operating profit

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

Net profit

millionyen％

millionyen％

millionyen％

millionyen％

millionyen％

millionyen％

Dec. 31, 2018927,307

10.8

23,276(42.1)

14,682(60.9)

10,162(53.6)

10,117(53.9)

3,197(89.4)

Dec. 31, 2017

837,069－

40,177－37,594－

21,883－

21,967－30,065－

Basic earnings per share

Diluted earnings per share

yen

yen

Ratio of profit to equity
Ratio of profit before tax to Ratio of Operating profit
attributable to owners of
total assets
to net sales
the parent
％
％
％
1.6
1.6
1.6
4.6
5.6
4.5

52.68
－
Dec. 31, 2018125.53－
Dec. 31, 2017
Reference: Share of income (loss) of entities accounted for using
Fiscal Year 2018: (5) million yen
Fiscal Year 2017: 12 million yen(2) Consolidated financial position
Total assets
Dec. 31, 2018
Dec. 31, 2017

Equity attributable toEquity attributable to parent Ratio of equity attributableowners of the parent per
ownersto parent owners
share
yen
million yen％
580,44866.2
3,163.63
654,61170.4
3,204.90

Total equity

million yen

million yen

877,472
929,304

580,906
655,038(3) Consolidated cash flows
Net cash from (used in)Operating activities

Investing activities

million yen

million yen

million yen

million yen

51,24473,014(48,628)(14,299)(55,835)(26,717)65,510118,741

Year ended

Dec. 31, 2018
Dec. 31, 2017

Financing activities

Cash and cash
equivalents at end of
period

2. Dividends(Record date)

1Q

Dividends per share
Year2Q
3Q
end

AnnualTotal dividend
payments（annual）

Dividend
payout ratio(consolidated)

Ratio of dividends
to net assets(consolidated)Year ended

yen

yen

yen

yen

yen

million yen%%

Dec. 31, 2017
Dec. 31, 2018
Dec. 31, 2019
(forecast)

－
－

22.00
25.00

－
－

22.00
25.00

44.00
50.00

8,987
9,266

35.1
94.9

1.5
1.6

－

25.00

－

25.00

50.00

125.1

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

Full year
2019(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

Business Income

millionyen％

millionyen％

millionyen％

millionyen％

millionyen％

million yen

936,100

0.9

18,500(20.5)

12,700(13.5)

7,200(29.1)

7,200(28.8)

39.97

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):
FY 2018: 206,268,593 shares
FY 2017: 206,268,593 shares
2) Number of treasury shares at the end of period:
FY 2018: 22,793,049 shares
FY 2017: 2,015,532 shares
3) Average number of outstanding shares during the period:
FY 2018: 192,050,508 shares
FY 2017: 174,990,953 shares(Reference) Summary of the Non-consolidated Financial Results
1. Non-consolidated financial results for the fiscal year ended December 31, 2018 (from January 1, 2018 to December 31, 2018)(1) Non-consolidated financial results(Percentages indicate changes over the same period in the prior fiscal year)

Operatingrevenue

Net revenues
Year ended

Dec. 31, 2018
Dec. 31, 2017

million yen

Recurring income%

million yen%

million yen%

million yen%

10,375 (10.3)

5,734

99.3

5,224

(14.2)

4,395(11.9)－

2,877(77.5)

6,087(58.4)

4,991(58.5)% million yen－ (100.0)
82,140Operating income(78.7)

11,565

Diluted earnings per share

Earnings per share
Dec. 31, 2018
Dec. 31, 2017

Profit

yen

yen

22.89
28.52

－
－

(2) Non-consolidated financial position
Total assets

Net assets

Net assets (excl. minority
interests) to total assets

Net assets(excl. minority interests)
per share

As ofmillion yen

million yen%

yen

Dec. 31, 2018
Dec. 31, 2017478,594475,220332,507405,24269.5
85.3

1,812.27
1,984.02

Reference: Net assets (excl. minority interests)
Fiscal Year 2018: 332,507 million yen

Fiscal Year 2017: 405,242 million yen* 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 ofannouncement.
Due to number of inherent uncertainties in the forecast, actual results may differ materially from theforecast. Furthermore, please refer to “1. Overview of Operating Results, etc. (1) Analysis of Operating
Results (Outlook for 2019)” on page 4 for matters relating to performance forecasts.

Table of contents
Page
Attachment
1. Overview of Operating Results, etc. …………………………………………………………………………………………
(1) Analysis of Operating Results ……………………………………………………………………………………………
(2) Analysis of Financial Position ……………………………………………………………………………………………
(3) Basic Policies for Profit Distribution and Dividends for FY2018 and FY2019………………………………………….
2. Basic Concept Concerning the Selection of Accounting Standards………………………………………………………….
3. Consolidated Financial Statements and Notes ……………………………………………………………………………….
(1) Consolidated Statement of Financial Position…………………………………………………………………………….
(2) Consolidated Statements of Income and Comprehensive Income ……………………………………………………….
Consolidated Statements of Income ……………………………………………………………………………………
Consolidated Statements of Comprehensive Income ………………………………………………………………….
(3) Consolidated Statements of Changes in Equity …………………………………………………………………………
(4) Consolidated Statements of Cash Flows ………………………………………………………………………………..
(5) Notes to Consolidated Financial Statements ……………………………………………………………………………
(Notes Relating to Assumptions for the Going Concern) ……………………………………………………………..
(Changes in Accounting Policies) ……………………………………………………………………………………
(Segment Information, etc.) …………………………………………………………………………………………..
(Per Share Information) ……………………………………………………………………………………………….
(Significant Subsequent Events) ………………………………………………………………………………………
4. Others ………………………………………………………………………………………………………………………
Changes in Key Consolidated Management Indicators …………………………………………………………………

1

2
2
5
6
6
7
7
9
9
10
11
13
15
15
15
15
17
17
18
18

1. Overview of Operating Results, etc.
(1) Analysis of Operating Results(Qualitative Information on the Consolidated Operating Results)(Overview of Full-Year 2018 Results)
Coca-Cola Bottlers Japan Holdings Inc. (“CCBJH” or the “Company”) announced full-year results for the fiscal year ending
on December 31, 2018 (January 1, 2018 to December 31, 2018). In this period, total nonalcoholic ready-to-drink (NARTD)
beverage industry volume performance is expected to be slightly positive versus prior year, supported by strong demand driven
by a record hot summer which helped to offset the negative impact of various natural disasters, such as earthquakes, heavy rain
and flooding. The health food and 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.
In 2018, CCBJH remained focused on initiatives linked to our “Growth Roadmap for 2020 and Beyond” strategic plan,
representing the principles of local presence on a national scale, driving innovation and successfully meeting our synergy andsavings commitments. However, our business was significantly impacted by supply constraints and higher manufacturing andlogistics costs related to the extraordinary rain and flooding experienced in Western Japan in July 2018. The Hongo
manufacturing plant and adjacent warehouse and distribution center of our subsidiary, Coca-Cola Bottlers Japan Inc., located in
Mihara City, Hiroshima Prefecture, experienced substantial flooding, with damage to equipment and finished goods inventory
resulting in a complete shutdown of the Hongo facilities and disruption to the regional transport infrastructure. We expect the
manufacturing and logistics cost outlook to remain elevated through Spring of 2020 as we continue to rely on alternate productsupply points and longer shipping distances until new manufacturing capacity is built, including the relocation of the Hongo
plant in Hiroshima. Further, rapidly increasing consumer demand for aseptically produced beverages in PET packaging put
additional pressure on product supply capacity, which also impacted our 2018 results.
The Company has adopted International Financial Reporting Standards (IFRS) for reporting full-year 2018 results, and prioryear results have been converted to IFRS to measure year-on-year performance. For reference purposes, the supporting
documentation to be used at our earnings presentation on Friday, February 15, 2019 at 1:30pm (JST) includes both IFRS andJGAAP summaries of full-year 2018 results. The earnings presentation materials and audio webcast will be available live andon demand on our Company IR website (https://en.ccbj-holdings.com/ir/library/presentation.php).
Full-Year 2018 Highlights (IFRS-based)
・ Pro-forma beverage volume decreased 2% versus prior year, with a priority on value share performance over volume share.
・ Reported net revenue increased 11% versus prior year due to the April 1, 2017 business integration. Net revenue decreased
2% on a pro-forma basis, primarily driven by lower volume and negative mix resulting from weak performance in thevending channel.
・ Reported business income decreased 42% and pro-forma business income decreased 41% versus prior year driven byhigher manufacturing and logistics expenses due to supply constraints and flooding disruption. Reported operating
income decreased 61%, mainly due to loss on disposal and impairment of damaged assets and inventories due to theWestern Japan flooding.
・ Continued progress on integration and setting foundation for growth. Created one aligned HR and benefit system including
equity linked long-term incentive plan; Completed deployment of ERP system back-office solution across all territories;
Finalized legal entity consolidation from 25 in December 2017 to 12 in December 2018; Acquired new plant facilities in
Hiroshima to replace flooded Hongo factory.
・ Announced first customer price increase in 27 years for large PET products, effective April 2019.
・ Announced new 25 billion yen share-buyback program in November as part of financial framework for value creation.
Also completed share repurchase worth 55.9 billion yen in April. 2018 annual dividend per share expected to be 50 yen,
an increase of 6 yen versus prior year.
・ Announced management change and restructuring. New board of director nominees reflect best-in-class governance,
independence and diversity standards.
*Pro-forma: Assuming the business integration of Coca-Cola West Co., Ltd. (CCW) and Coca-Cola East Japan Co., Ltd.
(CCEJ) from January 2017.

2

Review of Results
Reported Results (IFRS)
Full-year (January to December)
In Million JPY

2017

2018

YoY

Net Revenue

837,069

927,307+10.8%

Business Income

40,177

23,276-42.1%Net Income Attributable to Owners of Parent

21,967

10,117-53.9%*2017 results are consolidated results of former CCW in the first quarter, and integrated results of CCBJH from April 1, 2017
to December 31, 2017.
* We introduce “Business Income” as a measure of our underlying or recurring business performance after the adoption of
IFRS. Business Income deducts cost of goods and SG&A from revenue, and includes other income and expenses which we
believe are recurring in nature.
Following table shows bridge between business income and operating income in IFRSIn Million JPY
2017
Gross Profit

2018412,782

452,151

371,007426,195

Other income (Recurring)

931

1,635

Other expenses (Recurring)

2,541

4,310

Selling, General & Administrative Expenses

Investment gain/loss on equity method
Business Income
Other income (Non-recurring)
Other expenses (Non-recurring)Operating Income

12

(5)

40,177

23,276

489

481

3,073

9,075

37,594

14,682Full-year reported consolidated net revenue was 927,307 million yen, an increase of 90,238 million yen, or 11% compared tothe prior-year period, and net revenue of the beverage business increased 92,698 million yen to 899,863 million yen (up11%) year-on-year, primarily due to the business integration of CCW and CCEJ effective April 1, 2017. Net revenues of thehealthcare & skincare business fell by 2,460 million yen to 27,444 million yen (down 8%) year-on-year, as growth of newlylaunched products was unable to offset weakness of existing product performance due to increased competition, etc.
Full-year reported business income, an indicator of our recurring business performance, was 23,276 million yen, a decrease of
16,901 million or 42% year-on-year. Business income of the beverage business decreased 17,198 million yen, or 49% year-onyear to 17,939 million yen, mainly driven by disruptions to product supply caused by the heavy rain in Western Japan andsupply constraints due to rapidly growing demand of newly-launched aseptic products. In addition, channel and package mix
continued to have a negative impact, primarily as a result of performance in the vending channel. Business income in thehealthcare & skincare business was 5,337 million yen, an increase of 297 million yen or 6% year-on-year, as we continued astrong focus on operating efficiency in sales promotion, etc. Reported operating income was 14,682 million yen, a decreaseof 22,912 million yen or 61% year-on year driven by loss on disposal of damaged assets and inventories due to disaster in thebeverage business. Reported net income attributable to owners of parent was 10,117 million yen, a decrease of 11,850 million
yen, or 54% versus prior year.

3<Reference>
Pro-forma Results (IFRS)
Full-year (January to December)
In Million JPY

2017(Pro-forma)
950,7322018

YoY

927,307-2%

Business Income

39,552

23,276-41%

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

21,161
522

10,117
512

-52%
-2%

Net Revenue

Following table shows bridge between business income and operating income in IFRS (Pro-forma)
In Million JPY
2017(Pro-forma)

2018465,779

452,151424,582

426,195

Other income (Recurring)

1,229

1,635

Other expenses (Recurring)

2,886

4,310

Gross Profit
Selling, General & Administrative Expenses

Investment gain/loss on equity method

12

(5)

39,552

23,276

Other income (Non-recurring)

492

481

Other expenses (Non-recurring)

3,766

9,075

36,278

14,682Business Income

Operating Income

Pro-forma net revenue, assuming the business integration of CCW and CCEJ from January 2017, decreased JPY 23,424
million, or 2% year on year driven by the loss of production capacity at the Hongo plant after the July flooding and supply
constraints due to rapidly growing demand for newly-launched aseptic products, coupled with ongoing negative channel andpackage mix trends. Sales volume for the beverage business declined 2%. Pro-forma business income decreased 16,276
million yen, or 41%, due to the revenue decline as well as higher transportation and logistics costs due to alternate productsourcing, negative channel and package mix, etc. Pro-forma net income attributable to owners of parent decreased JPY
11,044 million or 52% year on year, mainly driven by loss on damaged assets and inventories due to disaster.
Pro-forma beverage volume performance by channel and category
By channel, we were impacted by the decision to rationalize some SKUs, especially in large-package format, as well as therequest of the suspension of “chirashi” promotional activities by certain retail customers. Supported by new product launches,volume grew 2% in the drug & discounter channel and 1% in the convenience store channel. Supermarket channel volume
declined 1%. Vending channel volume declined 7% as we prioritized customer supply relationships instead of vending due tosupply constraints in the third quarter.
By category, although overall volume growth was impacted by supply constraints, primarily in aseptic products, sparkling
beverage volume grew 3% and non-sugar tea volume was even. Coffee, sports and water category volumes decreased 3%,
5% and 10%, respectively. Newly-launched products such as The TANSAN STRONG (sparkling water), Coca-Cola Peach,and Ayataka Chaba no Amami (green tea) contributed to sparkling and non-sugar tea category volume performance. Coffee
category volume performance was flat in the fourth quarter driven by active product offerings for the winter season as well as
growth of the newly-launched aseptic PET coffee, Georgia Japan Craftsman. However, full-year coffee volume declined due
to continued weakness in can and bottle can packages and weakness in the vending channel. In the water category, premiumiLohas natural mineral water volume grew, however, overall category volume declined as we cycled successful flavor launches
in the prior year as well as due to the pull-back in large-package volume.
(Outlook for 2019)
In 2019, we expect overall Japan non-alcoholic ready-to-drink (NARTD) beverage market volume to be slightly negative
driven by a number of factors, including cycling of surge demand due to the record-hot summer weather in 2018, weakerconsumer sentiment related to the planned consumption tax increase in October 2019 and expected industry price increases
4stemming from rising input costs and continued distribution and logistics cost pressure.
CCBJH has characterized 2019 as a year of recovery and reestablishment of a solid foundation for growth, following
challenges in 2018 related to production capacity constraints and the impact of natural disasters. We are making investments
in production and distribution capacity and marketplace execution to address current challenges and return to a growthtrajectory in 2020 and beyond as well as ongoing new challenges driven by the rapidly changing business environment.
We announced a change of representative directors and a slate of nominees for our Board of Directors with an eye toward
best-in-class standards of governance, independence and diversity. Also, we have announced other organizational changes toswiftly respond to the rapidly changing business environment, including reducing the number of executive officers from 33 to
18 and simplifying management reporting lines as of February 1. Finally, we announced our first price increase in 27 years aswell as a voluntary employee retirement program as part of our ongoing work to transform our business.
In the beverage business segment, the company expects flat volume growth in 2019. We will focus on initiatives to drive
profitable revenue growth by expanding product offerings to meet the diversified needs of consumers as well as implementing
the customer price increase for large PET products from April 2019. We will activate comprehensive marketing campaigns andmarket execution plans while leveraging the Coca-Cola system’s unique partnership assets, including Cola-Cola’s official
sponsorship of the Japan National Rugby Teams and the Tokyo 2020 Olympic and Paralympic Games. In addition, we have a
newly established Vending Business Unit as one virtual organization together with Coca-Cola (Japan) Company. The unit has
central responsibility for all aspects of vending channel performance from strategic planning to market execution, to restore
momentum to the important vending channel. We continue to grow our manufacturing capacity and optimize our logistics anddistribution network to recover and re-build a solid supply chain foundation for growth, while also streamlining businessprocesses by completing the implementation of a new company-wide ERP system.
In the health food and cosmetic industries, we expect continued market growth, but with intensified competition as more
players seek to participate in this growing market segment. Our healthcare and skincare business is focused on more effective
marketing and advertising to expand our customer base by appealing to consumers in their 40s and 50s, and to increase
consumer loyalty. Also, we will continue to make efforts in product development and marketing capabilities to ensure apipeline of relevant products that meet consumers’ changing needs.
We expect consolidated revenue for this year will be 936.1 billion yen, an increase of 1% versus 2018, reflecting the
expected impact of the price increases to be implemented in April, as well as our ongoing efforts to balance volume and value
growth and improve wholesale pricing and mix in the beverage business. Business income is expected to decrease 21%
versus the prior year, to 18.5 billion yen driven by continued pressure in manufacturing costs and transportation expenses as werely on alternate sources of product supply until we can fully recover from the extraordinary rain and flooding of July 2018,
partially offset by expected cost reductions through restructuring. Reported operating income is expected to decrease 14%
versus 2018, to 12.7 billion yen, due to lower business income and special retirement expenses related to the announced
voluntary employee retirement program in the beverage business.
decrease 29%, to 7.2 billion yen.

Net income attributable to the owners of the parent will

(2) Analysis of Financial Position
Assets at the end of this year were 877,472 million yen, a decrease of 51,831 million yen from the end of the previous fiscal
year. This is mainly attributable to a decrease of cash and equivalents due to total share repurchases of 68 billion yen
completed in 2018. In addition, assets and inventories decreased as a result of write-off/disposal of damaged assets andinventories due to the flooding disaster, etc.
Liabilities at the end of this year were 296,566 million yen, an increase of 22,301 million yen from the end of the previous
fiscal year. This is mainly due to an increase of loans, net defined benefits liabilities, etc.
Net assets at the end of this year were 580,906 million yen, a decrease of 74,132 million yen. This is mainly due to anincrease of treasury stock due to the completed share repurchases.

5

The cash flow conditions for the full-year are as follows.
<Cash Flows from Operations>
Net cash generated from operations was JPY 51,244 million (JPY 73,014 million in previous year term). This results mainly
from JPY 14,767 million from net profit before tax, depreciation expenses, increase of account payable-trade and others,
posting loss on write-off/disposal of fixed assets due to disaster, etc. offset by an increase of accounts receivable-trade andothers, inventories, payment of taxes, etc.
<Cash Flows from Investment Activities>
Net cash used for investment activities was JPY 48,628 million (JPY 14,299 million in previous year term), due to purchasesof fixed assets to drive growth and synergy capture, etc.
<Cash Flows from Financing Activities>
Net cash used for financing activities was JPY 55,835 million (JPY 26,717 million in previous year term), due to total 68
billion yen share buy-back in 2018, increase of short-term loan for share buyback and operating capital, payment of dividends,
etc.
As a result of these activities, cash and cash equivalents at the end of this year was JPY 65,510 million, a decrease of JPY
53,231 million versus prior year term.
(3) Basic Policies for Profit Distribution and Dividends for FY2018 and FY2019
The Company periodically reviews its capital structure and dividend payout ratio to maximize shareholder returns while
maintaining flexibility to pursue expansion opportunities. The Company seeks to use retained earnings to fund investment forsustainable growth for our business and further enhancement of corporate value.
CCBJH sets its basic policy regarding dividends, which includes active redistribution of profits while placing the highest
priority on paying dividends in a stable manner, by comprehensively reviewing the Company’s business performance and levelof retained earnings. In addition, the Company has set a payout ratio target of 30% or more for net profit attributable toowners of the parent, starting from full-year 2018 results announcement (after adoption of IFRS). The company pays interim
and year-end dividends.
The Company plans to pay 25 yen per share for year-end dividend for the year ending December 2018, and the annual
dividend will be 50 yen per share including the 25 yen-per-share interim dividend. This represents an increase of 6 yen versus
prior year.
Regarding the dividend forecast for the year ending December 2019, the Company plans to pay the same amount of dividend
per share, which is 25 yen per share for the interim and year-end dividends, respectively, and therefore the expected annual
dividend will be 50 yen per share.
of dividends in a stable manner.

This reflects the business outlook for the year as well as our policy of prioritizing payment

The Company continues to reflect on the implementation of share buybacks by comprehensively reviewing the Company’sbusiness performance and level of retained earnings. The Company completed 55.9 billion yen of share buybacks on April
2018. In addition, the Company announced a separate 25 billion yen share-buyback program from November 2018 to May
2019, and has completed 18.3 billion yen in buybacks related to this new program by the end of January 2019.

2.

Basic Concept Concerning the Selection of Accounting Standards
The Group discloses consolidated financial statements based on the International Financial Reporting Standards (IFRS) from thefiscal year ending December 2018, with a view to enhancing the international comparability of financial statements andcontributing to the improved convenience for shareholders and investors of the Company.

63. Consolidated Financial Statements and Notes(1) Consolidated Statement of Financial Position
As ofDecember 31, 2017

(Millions of yen)
As ofDecember 31, 2018

AssetsCurrent asset:
Cash and cash equivalents

118,742

65,510Trade and other receivables

88,061

92,402Inventories

61,98968,781Other financial assets

1,691

645

Other current assets

11,688

10,740Total current assets

282,170

238,078

Non-current asset:
Property, plant and equipment

439,059435,305

Goodwill

88,88088,880Intangible assets

67,38566,539327

298

40,353

34,79643

38

Deferred tax assets

5,149

6,264

Other non-current assets

5,938

7,274

Total non-current assets

647,133

639,394

929,304

877,472

Investments accounted for using the equity
methodOther financial assets
Net defined benefit asset

Total assets

7

As ofDecember 31, 2017

(Millions of yen)
As ofDecember 31, 2018

Liabilities and equity
Liability
Current liabilities:
Trade and other payables

100,576

105,701

1,817

45,512Other financial liabilities

941

993

Income taxes payable

7,666

3,069

57

18

Other current liabilities

20,893

22,230Total current liability

131,950

177,524

Bonds and debts

77,85456,401Other financial liabilities

1,285

749

Obligations for retirement pay

27,94033,712

Provisions

2,080

2,191

Deferred tax liabilities and deferred

29,92723,082Other non-current liability

3,229

2,907

Total non-current liability

142,315

119,042274,265

296,566

Capital stock

15,232

15,232

Share premium

450,498

450,533

Retained earnings

184,317

182,418

Treasury Shares(4,693)(72,651)

Accumulated other comprehensive income

9,258

4,915

Equity attributable to parent owners (total)

654,611

580,448427

458

655,038

580,906

929,304

877,472

Bonds and debts

Provisions

Non-current liabilities:

Total liabilities
Equity;Non-controlling interests
Total equity
Total liabilities and equity8(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
For the year ended
December 31, 2018

For the year ended
December 31, 2017
Net sales

837,069

927,307

Cost of sales

424,287

475,156

Gross profit

412,782

452,151

Selling and general administrative expenses

371,007426,195

Other income

1,421

2,116

Other expenses

5,614

13,38512(5)Operating profit

37,594

14,682Financial revenue

961

830

Finance costs

641

745

Profit for the year before income tax

37,914

14,767

Income tax expense

16,031

4,605

Net profit for the year

21,883

10,162

21,967

10,117

Non-controlling interests

(83)

45

Earnings per share (yen)Basic125.53

52.68

Share of income (loss) of entities accounted for using
equity method

Net profit for the year attributable to:
Owners of the parent

9

(Consolidated Statements of Comprehensive Income)(Millions of yen)
For the year ended
December 31, 2018

For the year ended
December 31, 2017
Net income

21,883

10,162Remeasurements of defined benefit plans

4,126(2,889)

Share of other comprehensive income of equity
method investees
Net change in financial assets measured at fair value
through other comprehensive income

(12)

(4)

3,612

(3,344)

7,726(6,236)

16

(12)

440

(716)

)Subtotal

456

(728)

Total other comprehensive income

8,182(6,965)

Total comprehensive income

30,065

3,197

30,149

3,152

(83)

45

Other comprehensive income.
Items that will not be reclassified subsequently to profit
or loss:

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

Comprehensive income attributable to:
Owners of the parent.
Non-controlling interests10(3) Consolidated Statements of Changes in Equity
For the year ended December 31, 2017
(Millions of yen)
Equity attributable to owners of the parent company

Capital stock
Balance as of January 1,
2017(Before restatement)
Adjustments resulting fromthe adoption of IFRS 9
Balance as of January 1,
2017(After restatement)

Sharepremium

Retainedearnings

Treasury
Shares

Other
Comprehensi
ve incomeAccumulated

Noncontrollinginterests

Total

Total

15,232109,072

164,436(4,593)7,674

291,821415

292,235

－

－

577

－

(2,503)(1,927)－(1,927)

15,232109,072

165,012(4,593)

5,171

289,894415

290,309－－21,967－－

21,967(83)

21,883

－

－

－

－

8,182

8,182

－

8,182

－

－

21,967－8,182

30,149(83)

30,065

Dividends of surplus－－(7,113)－－(7,113)(29)(7,142)

Purchase of treasury stock

－

－

－

(111)

－

(111)

－

(111 )

Disposal of treasury stock

－

6

－

12

－

17

－

17

Changes due to businesscombinations
Change in ownershipinterest in subsidiaries
Reclassification fromaccumulated othercomprehensive income toretained earnings
Stock issued in exchangeof shares
Other

－

－

－

－

－

－

398

398

－

(143)

－

－

356

213

(273)

(60)

－

－

4,451

－

(4,451)

－

－

－

－

341,563－－－341,563－341,563

Total transactions withownersBalance as of December 31,
2017－341,425(2,662)(100)(4,095)334,56996334,664

15,232450,498

184,317(4,693)

9,258

654,611427

655,038

Total comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive income
for the year
Transactions with owners,
etc.

11

For the year ended December 31, 2018
(Millions of yen)
Equity attributable to owners of the parent company

Capital stockSharepremium

Retainedearnings

Other
Comprehensi
ve incomeAccumulated

Treasury
Shares

Noncontrollinginterests

Total

Total

Balance as of January 1,
15,232450,498

184,317(4,693)

9,258

654,611427

655,038－－

10,117－－

10,11745

10,162－－－－(6,965)(6,965)－(6,965)－－

10,117－(6,965)

3,152

45

3,197

Dividends of surplus－－(9,173)－－(9,173)(21)(9,194)Purchase of treasury stock

－

(25)

－

(67,961)－(67,987)－(67,987)

Disposal of treasury stock

－

1

－

4

－

4

－

4

Share-based paymenttransactions
Reclassification fromaccumulated othercomprehensive income toretained earnings
Reclassification fromaccumulated othercomprehensive income tonon-financial assets

－

67

－

－

－

67

－

67

－

－

(2,843)

－

2,843

－

－

－

－

－

－

－

(221)

(221)

－

(221)

Other changes

－

(7)

－

－

－

(7)

7

－

－

36

(12,016)(67,958)

2,622(77,316)(14)(77,329)

15,232450,533

182,418(72,651)

4,915

580,448458

580,9062018
Total comprehensive income
Net income
Other comprehensive
incomeTotal comprehensive income
for the year
Transactions with owners,
etc.

Total transactions withownersBalance as of December 31,
2018

12

(4) Consolidated Statements of Cash Flows(Millions of yen)
For the year ended
December 31, 2017

For the year ended
December 31, 2018

Cash flows from operating activities
37,914

14,76741,383
1,603
238
(494)

47,531
202
255
(516)

Interest expense

611

612

Share of loss (profit) of entities accounted for using equity
methodLoss on step acquisitions
Gain on sales of property, plant and equipment
Loss on disposal and sales of plant and equipment
Decrease (increase) in trade and other receivables
Decrease (increase) in inventories
Decrease (increase) in other assets
Increase (decrease) in trade and other payables
Increase (decrease) in net defined benefit liability
Increase (decrease) in other liabilities
Other
Subtotal
Amount of interest received

(12)

5

538
(536)
1,494
(4,693)
8,474
1,299(5,981)
759
(293)
63
82,367
17

－
(215)
9,399
(4,355)(6,869)
393
2,234
491
1,148
501
65,579
3

453

487

(565)
(10,484)
1,226
73,01417(548)(14,553)275
51,244(43,111)(49,752)

1,605

658

(130)
609
－

(137)
273
406

26,798(70)(14,299)－(75)(48,628)

Profit before tax
Adjustments for:
Depreciation and amortization expense
Impairment losses
Change in allowance for doubtful accountInterest and dividends income

Amount of dividend received
Amount of interest paid
Amount of income taxes paid
Income tax refund
Aggregate cash flow by operating activities
Cash flows from investing activities
Acquisitions of property, plant and equipment and intangible
assetsProceeds from sales of property, plant and equipment andintangible assets
Purchases of investment securities
Proceeds from sale of investment securities
Proceeds from sales of shares of subsidiaries resulting inchange in scope of consolidation
Proceeding by business Combinations
Other
Aggregate cash flow by investing activities

13

For the year ended
December 31, 2017
Cash flows from financing activities
Increase (decrease) in short-term loans payable
Repayments of long-term debt
Increase in long-term loans
Bond redemption
Dividends paid
Dividends payments to non-controlling interests
Proceeds from sales of treasury stock
Purchase of treasury stock
Purchase of treasury stock of subsidiaries in consolidation
Acquisition of shares of subsidiaries not resulting in change
in scope of consolidation
Other
Aggregate cash flow by financing activities
Translation adjustments on cash and Cash Equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of year
Cash and cash equivalents at the end of year

14

(Millions of yen)
For the year ended
December 31, 2018

(2,000)(2,070)29(14,000)(7,113)
(29)
22
(111)
(7)

24,000(1,817)－－(9,173)(21)
4(67,998)
－

(409)

－

(1,028)(830)(26,717)16
32,014(55,835)(12)(53,231)

86,728

118,742

118,742

65,510(5) Notes to Consolidated Financial Statements(Notes Relating to Assumptions for the Going Concern)
Not applicable.
(Changes in Accounting Policies)
The Group adopted the new accounting standards and interpretations, which became mandatory in the year ended
December31, 2018. Significant accounting standards and interpretations are as follows:

New or amended standards and interpretations
IFRS 15 Revenue from contracts with customers(issued May 2014)
Clarification to IFRS 15 (issued April 2016)

Summary of the requirements
IFRS 15 develops a comprehensive framework as to whether and when torecognize revenue. IFRS 15 supersedes the current revenue recognition guidancein IAS 18 Revenue, IAS 11 Construction contracts, and IFRIC 13 Customer
Loyalty Programs.

The Group elected to apply IFRS 15 retrospectively in accordance with the transitional provisions and recognize thecumulative effect of initially adopting this standard as an adjustment to the opening balance of retained earnings of the year
ended December 31, 2018. The adoption of IFRS 15 did not have a material impact on the consolidated financial statements.
(Segment Information, etc.)(1) Reportable segments
Operating segments are defined as the components of the Group for which separate financial information is available
that is evaluated regularly by the chief operating decision maker in making resource allocation decisions and in assessing
performance. The Group has identified the following operating segments. No operating segments have been aggregated toform reportable segments.
As a result of the business integration between the Company and CCEJ as of April 1, 2017, the results of operation of
CCEJ and its group companies are included in the Beverage segment from the second quarter of the year ended December
31, 2017.
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.
In the year ended December 31, 2018, the former "Soft Drink" segment was renamed as the "Beverage Business"segment in order to reflect the nature of the business more properly. The change of the name of the segment has no impact on
segment information.

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, etc., bottling, packaging, distribution andmarketing, vending machine-related business in Japan

Healthcare & Skincare Business

Manufacture and sell 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 byusing operating income as reported in accordance with generally accepted accounting principles (IFRS).

15

Information about reportable segments is as follows:
For the year ended December 31, 2017

Sales revenue to external customer
Intersegment sales revenue
Sales revenue
Segment profit
Adjustments
Financial revenue
Finance costs
Profit before tax
Other items
Depreciation and amortization
Impairment losses
Equity-method gains

Reportable segments
Healthcare &Beverage
SkincareBusiness
Business
807,165
29,904－－807,165
29,90433,932
3,662(Millions of yen)
Reportablesegments
Total
837,069－
837,069
37,594

Adjustment
－
－
－
－

Total
837,069－
837,069
37,594961
641
37,91440,932
224
12

451
1,378
－

41,383
1,603
12

Reportable segments
Healthcare &Beverage
SkincareBusiness
Business
899,863
27,444－－
899,863
27,444
8,864
5,818

Reportablesegments
Total
927,307－927,307
14,682－－－

41,383
1,603
12For the year ended December 31, 2018

Sales revenue to external customer
Intersegment sales accumulation
Sales revenue
Segment profit
Adjustments
Financial revenue
Finance costs
Profit before tax
Other items
Depreciation and amortization
Impairment losses
Equity-method losses(Millions of yen)

Adjustment
－
－
－
－

Total
927,307－927,307
14,682830
745
14,767

47,149
202
(5)

381
－
－

47,531
202
(5)

－
－
－

47,531202(5)(2) Information for each product and service
This information is omitted because the same information is disclosed in "(1) Reportable Segments."(3) Information for each region
Sales revenue by geographic region is omitted because the revenue of domestic sales to external customer accounts for the majority ofsales revenue in the consolidated statements of income.
Since the carrying amount of non-current assets in Japan accounts for the majority of non-current assets in the consolidated statementof financial position, the description of non-current assets by region is omitted.
(4) Major customer
There is no customer to which sales exceeds 10% of the Group’s total revenue.

16(Per Share Information)
The calculation of basic earnings per share is based on the net profit for the year attributable to owners of the Company and theweighted-average number of ordinary shares outstanding during the years.
The basis for calculating basic and diluted earnings per share is as follows.
For the year ended
December 31, 2017
Profit attributable to owners of the parent (Millionsof yen)Weighted average number of shares of common
stock outstanding (thousands)
Earnings per share (yen):
Basic

For the year ended
December 31, 2018

21,967

10,117

174,991

192,051125.5352.68(Significant Subsequent Events)
The Company, at its Board of Directors meeting held on February 14, 2019, resolved to implement a voluntary retirement
program (solicitation of voluntary retirees) targeting employees (excluding some organizations and duties) of our group company.
For the details, please refer to the news release “Implementation of Voluntary Retirement Program (solicitation of voluntary
retirees)” announced on the same date.

17

4. Others
Changes in Key Consolidated Management Indicators
Japanese Standard

Net revenues / Net sales
Net revenues growth rate /Net sales growth rate
Operating income / Operating(million(%)(millionyen)

Operating marging(%)

Recurring income margin
Income before income taxes
and minority interests / Profit
for the year before income tax

FY2014FY2015FY2016FY2017FY2017FY2018424,406

440,476

460,455

872,623

837,069

927,307

△1.7

3.8

4.5

89.5

－

10.8

11,00814,262

21,14340,57937,594

14,682

2.6

3.2

4.6

4.7

4.5

1.6

10,60913,723

20,60239,859

－

－

2.5

3.1

4.5

4.6

－

－

8,409

15,22812,707

39,24037,914

14,767

2.0

3.5

2.8

4.5

4.5

1.6

4,482

9,970

5,245

25,244

21,967

10,117

1.1

2.3

1.1

2.9

2.6

1.1

6,931

11,217

5,022

31,97630,065

3,197

yen)

profitRecurring income

IFRS(millionyen)(%)(millionyen)

Ratio of income before income
taxes to sales / Ratio of profit
for the year before income tax(%)

to net sales
Net profit attributable toowners of the company
Net profit attributable toowners of the company/Net(millionyen)(%)

revenues
Comprehensive income / Total(millioncomprehensive income

yen)Earnings per share / Basicearnings per share

(%)

41.07

91.35

48.05

144.26125.53

52.68

(yen)

－

－

－

－

－

－

ROE

(%)

1.8

3.9

2.0

5.7

4.6

1.6

ROA

(%)

3.0

3.8

5.5

6.3

5.6

1.6

337,260

378,105

377,468

883,918

929,304

877,472

254,150

260,878

261,173

627,485

655,038

580,906

(%)

75.2

68.9

69.1

70.9

70.4

66.2

(yen)

2,325.19

2,386.81

2,389.28

3,070.01

3,204.90

3,163.63(times)

40.4

26.9

71.7

28.5

32.8

62.4

Diluted earnings per share /Diluted earnings per share

Total assets
Net assets / Total equity(millionyen)(millionyen)

Net assets (excl. minority
interests) to total assets / Ratioof equity attributable to parent
ownersNet assets (excl. minority
interests) per share / Equity
attributable to owners of theparent per share
Price earnings ratio / Ratio of
equity attributable to parent
owners
*1. Items with "/" will be named "Japanese Standard / IFRS".
*2. As for the amount, Japanese Standards are rounded down, and IFRS is rounded off. In addition, the ratio is rounded off.

18