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 Second Quarter Ended June 30, 2017 (Japanese Standard)August 1, 2017
Listed company name: Coca-Cola Bottlers Japan Inc.
Code number: 2579
Delegate: Title: Representative Director & President
Contact:
Title: Leader, Finance Controller Group
Expected date of quarterly report submission: August 10, 2017
FY 2017 2Q supplementary information: Yes
FY 2017 2Q financial presentation: Yes

Listed stock exchanges: Tokyo and Fukuoka
URL: https://en.ccbji.co.jp
Name: Tamio Yoshimatsu
Name: Masakiyo Uike
Phone: +81-3-6896-1707
Expected date of the dividend payments: September 1, 2017

(Fractions of one million yen are rounded down)

1. Consolidated financial results for the 2nd quarter 2017 (from January 1, 2017 to June 30, 2017)(Percentages indicate changes over the same period in the prior fiscal year)(1) Consolidated financial results
Net revenues
2nd quarter 2017
2nd quarter 2016

Operating income

Net profit attributable toshareholders of parent

Recurring income

million yen%

million yen%

million yen%

million yen%

357,837
219,306

63.2
9.1

17,098
8,883

92.5
265.5

16,795
8,630

94.6
275.9

9,692
4,633

109.2
(47.7)

Note: Comprehensive income
2Q 2017: 11,591 million yen 791.9%

2Q 2016: 1,299 million yen (87.2%)

Diluted earnings
per share

Earnings per
share
2nd quarter 2017
2nd quarter 2016

yen

yen

64.65
42.45

－
－

(2) Consolidated financial position
Total assets

Net assets

Net assets (excl. minority
interests) to total assets

As ofmillion yen

million yen%

2nd quarter 2017
Full year 2016

891,936
377,468

612,234
261,17368.5
69.1

Reference: Net assets (excl. minority interests)
2Q 2017: 611,247 million yen
End of 2016: 260,758 million yen

2. Dividends(Record date)

End of 1Q

Year ended

Full year 2016
Full year 2017
Full year 2017 (forecast)End of 2Q

Dividends per share
End of 3Q
Year-end

Annual

yen

yen

yen

yen

yen

－
－

22.00
22.00

－

24.00

46.00

－

22.00

44.00

Note: Revisions to the cash dividends forecasts most recently announced: None
End of 2Q FY 2016 dividend: an ordinary dividend of 21.00 yen, a commemorative dividend of 1.00 yen
FY 2016 ending dividend: an ordinary dividend of 23.00 yen, a commemorative dividend of 1.00 yen

3. Forecast of consolidated financial results 2017 (from January 1, 2017 to December 31, 2017)(Percentages indicate changes over the same period in the prior fiscal year)

Net revenues

Full year 2017

Operating income Recurring income

Net profit
attributable toshareholders ofparentEarnings
per share

million yen%

million yen%

million yen%

million yen%

Yen

906,500

96.9

40,10089.7

38,10084.9

21,500309.9122.85

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

Notes(1) Changes in significant subsidiaries during the current period: Yes(changes in specified subsidiaries resulting in change in scope of consolidation)
Newly included: One (Coca-Cola East Japan Co., Ltd.)
Excluded: None
Note: Please refer to “2. Quarterly Consolidated Financial Statements (4) Notes to Quarterly Consolidated
Financial Statements (Change in Significant Subsidiaries during the Current Period)” on page 10 for
details.
(2) Application of special accounting for preparing the quarterly consolidated financial statement: None(3) 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 and other regulations : None
2) Changes other than those in 1) above: Yes3) Changes in accounting estimates: Yes4) Restatement of prior period financial statements after error corrections: None(4) Number of outstanding shares (common shares)
1) Number of outstanding shares at the end of period (including treasury shares):
2Q 2017: 206,268,593 shares
FY 2016: 111,125,714 shares
2) Number of treasury shares at the end of period:
2Q 2017: 2,006,714 shares
FY 2016: 1,989,069 shares
3) Average number of outstanding shares at end of period (three months):
2Q 2017: 149,906,073 shares
2Q 2016: 109,138,332 shares
Note: The total number of outstanding shares increased by 95,142,879 to 206,268,593 as of April 1, 2017 inconnection with the integration with Coca-Cola East Japan Co., Ltd.
* These Consolidated Financial Results are not subject to quarterly review procedures.
* 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 3 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....................................................................................................... 3(3) Information on the Future Outlook, Including Forecast of Consolidated Financial Results ........................ 3

2.

Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets............................................................................................................ 4(2) Quarterly Consolidated Statements of Income and Comprehensive Income.................................................... 6
Quarterly Consolidated Statements of Income ................................................................................................ 6
Quarterly Consolidated Statements of Comprehensive Income ..................................................................... 7(3) Quarterly Consolidated Statements of Cash Flows .......................................................................................... 8(4) Notes to Quarterly Consolidated Financial Statements ................................................................................... 10(Notes Relating to Assumptions for the Going Concern) .............................................................................. 10(Change in Significant Subsidiaries during the Current Period) .................................................................... 10(Notes for Case Where Shareholders’ Equity underwent Significant Changes in Value) ............................. 10(Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statement)........... 10(Changes in Accounting Policies, etc.) .......................................................................................................... 10(Additional Information)................................................................................................................................ 11(Segment Information) ................................................................................................................................... 111

1. Qualitative Information on the Financial Summary for this Quarter(1) Details of Consolidated Financial Results
During the first six-month period of the fiscal year under review, the Japanese economy continued to show an
overall trend of modest recovery with the corporate capital investment, job market and income situations continuing
to improve.
In the soft drink industry, despite diversified consumer needs and fierce competition among companies in theindustry, soft drink companies continue their initiatives focusing on revenue and aggressively roll out high value
products. As a result, the market remained nearly unchanged from the same period in the previous year.
Both health food and cosmetic industries are in the continued trend of expansion partly backed by aggressive
rollout of functional-claim food products and a stream of market entrants from other industries in the health foodindustry and diversified consumer needs in the cosmetic industry.
In this operating environment, in order to pursue new business opportunities under such severe operating
environment and realize sustainable growth, the Company conducted the business integration with Coca-Cola East
Japan Co., Ltd. effective as of April 1, 2017 through a combination of a share exchange and an absorption-typecompany split, and Coca-Cola Bottlers Japan Inc. was launched as of the same date.
Furthermore, the Company announced the medium term business plan “Growth Roadmap for 2020 & Beyond”
for the period up to 2020, which sets forth the Company’s focused initiatives, namely profitable revenue growth,
capturing of integration synergies, establishment of a new operating model and holistic financial framework tocreate shareholder value while investing in people capability development and shared value with local communities
for the long term. The Company will focus on these initiatives to achieve sustainable growth and create synergy
effects of the business integration, and continues to lead the domestic soft drink industry as the market leader.
The business performance status for the first six-month period of this fiscal year is as follows.
<Net Revenues>
Consolidated net revenues of the soft drink business in the first six-month period of this fiscal year
increased by 139,972 million yen to 342,817 million yen (up 69.0%) year on year, owing to factors such as theimpact of the business integration with Coca-Cola East Japan Co., Ltd. effective as of April 1, 2017.
Consolidated net revenues of the healthcare & skincare business in the first six-month period of this fiscal year
fell by 1,442 million yen to 15,019 million yen (down 8.8%) year on year. As a result, the total consolidated net
revenues for all segments in the first six-month period of this fiscal year increased by 138,530 million yen to357,837 million yen (up 63.2%) year on year.
<Operating Income and Recurring Income>Consolidated operating income of the soft drink business in the first six-month period of this fiscal year
increased by 8,439 million yen to 15,430 million yen (up 120.7%) year on year, due partly to an increase in net
revenues thanks to the impact of the business integration described above, despite the impact of an increase in
expenses brought about by the change in our depreciation method for fixed assets. Consolidated operating
income in the healthcare & skincare business in the first six-month period of this fiscal year fell by 224 million
yen to 1,667 million yen (down 11.9%) year, due to factors such as the aforementioned drop in net revenues.
As a result, the total consolidated operating income for all segments for the first six-month period of this fiscal
year increased by 8,214 million yen to 17,098 million yen (up 92.5%) year on year. Furthermore, consolidated
recurring income in the first six-month period of this fiscal year increased by 8,164 million yen to 16,795
million yen (up 94.6%) year on year, owing mainly to an increase in operating income.
<Quarterly Net Profit Attributable to Shareholders of Parent>
Profit attributable to owners of parent in the first six-month period of this fiscal year increased by 5,058
million yen to 9,692 million yen (up 109.2%) year on year, mainly due to an increase in recurring income.

2(2) Details of Consolidated Financial Position
Total assets at the end of the second quarter of the fiscal year under review increased by 514,467 million yen to891,936 million yen (up 136.3%) compared to the end of the previous consolidated fiscal year, mainly due to theinclusion of Coca-Cola East Japan Co., Ltd. in our scope of consolidation in connection with the business integration.
Liabilities increased by 163,406 million yen to 279,702 million yen (up 140.5%) from the end of the previous
consolidated fiscal year. This was chiefly due to the impact of the aforementioned new consolidated company.
Net assets increased by 351,061 million yen to 612,234 million yen (up 134.4%) compared to the end of theprevious consolidated fiscal year as a result primarily of an increase in other capital surplus in connection with theissuance of new shares as part of the business integration.
The cash flow conditions for the first six-month period of this fiscal year are as follows. Please note that cash
and cash equivalents of 26,798 million yen have been included in connection with the Company making Coca-Cola
East Japan Co., Ltd. a wholly owned subsidiary through a share exchange.
<Cash flows from operating activities>
Net Cash provided by operating activities for the six months ended June 30, 2017 increased by 3,840 million yen
year on year to 8,347 million yen from 4,506 million yen for the six months ended June 30, 2016, mainly due to theimpact of the inclusion of Coca-Cola East Japan Co., Ltd. in our scope of consolidation in connection with the businessintegration.
<Cash flows from investing activities>
Net Cash used in investing activities for the six months ended June 30, 2017 increased by 7,107 million yen year
on year to 16,915 million yen from 9,807 million yen for the six months ended June 30, 2016, mainly due to the impactof purchase of fixed assets.
<Cash flows from financing activities>
Net Cash used in financing activities for the six months ended June 30, 2017 increased by 1,461 million yen year
on year to 5,198 million yen from 3,737 million yen for the six months ended June 30, 2016, mainly due to the impact
of proceeds from short-term loans and repayment of short-term loans.
As a result of these activities, cash and cash equivalents at the end of the second quarter of the consolidated fiscal
year increased by 13,054 million from the end of the second quarter of the previous consolidated fiscal year, to 99,782
million yen (up 40.9% year on year).

(3) Information on the Future Outlook, Including Forecast of Consolidated Financial Results
Full-year consolidated performance forecasts of Coca-Cola Bottlers Japan Inc. for the fiscal year ending
December 31, 2017 remain unchanged from the performance forecasts released on June 5, 2017.

3

2. Quarterly Consolidated Financial Statements and Main Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of December 31, 2016
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

4

As of June 30, 2017

63,84929,64923,112
27,279652
1,998
17,333(287)

84,90874,23915,00067,248821
12,363
41,610(371)

163,587

295,822

31,162
22,68839,99962,128
5
1,829
157,815

73,77565,037
108,434
150,5881,250
5,326
404,412

22,668－4,889
27,557

79,682
51,39915,573
146,655

20,144
123
8,760
(519)
28,508
213,881
377,468

29,615130
16,048(748)
45,046596,114891,936(Millions of yen)
As of December 31, 2016
Liabilities
Current liabilities
Trade notes and accounts payable
Current portion of bonds 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
Liabilities for directors' and corporate
auditors' retirement benefits
Provision for environmental measures
Other
Total non-current liabilities
Total liabilities
EquityShareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income
Net unrealized gains(loss) on othermarketable securities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
Net assets
Total liabilities and equity

5

As of June 30, 201715,990－17
5,717
25,042
308
－
－
8,662

55,90914,0002,102
4,067
53,729384
194
56
13,76755,739144,21150,000183
3,505

66,00013,50625,266

191

291

－

254

6,675
60,556116,295

30,171
135,491

15,231109,072
137,404(4,593)
257,114

15,231450,638
144,477(4,657)605,691

4,092

5,334

77
(3)
(522)

54
19
149

3,643

5,556

414
261,173
377,468986
612,234

279,702891,936(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statements of Income)(First six-month period of this fiscal year)(Millions of yen)Six months ended
June 30, 2016
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
Loss on disposal of property plant and equipment
Other
Total non-operating expenses
Recurring income
Extraordinary income
Gain on sale of property plant and equipment
Gain on sale of investment securities
Gain on step acquisitions
Total extraordinary income
Extraordinary loss
Loss on disaster
Loss on impairment of investment securities
Business integration-related expenses
Total extraordinary loss
Income before income taxes and minority interests
Income taxes - current
Income taxes - deferred
Total income taxes
Net profit
Net profit (loss) attributable to non-controlling interests
Net profit attributable to owners of parent

Six months ended
June 30, 2017

219,306
105,821357,837
172,659

113,485
104,602
8,883

185,177
168,079
17,098

26
221
15
64
51
134

13
270
10
140
155
155

514

744

234
264
268
766
8,630

257
302
486
1,046
16,795

－
－
－

63
16
192

－

273

605
148
－
754

－
－

7,876
2,666
544
3,210
4,665
31
4,633

6

711
711
16,357
4,110
2,568
6,679
9,677
(14)
9,692

(Quarterly Consolidated Statements of Comprehensive Income)(First six-month period of this fiscal year)(Millions of yen)Six months
ended June 30, 2016

Six months
ended June 30, 2017

4,665

9,677

(3,362)

1,242

－
48
332

1
22
650

(384)

(3)

(3,365)
1,299

1,913
11,591

1,268

11,60531(14)Net profit
Other comprehensive income
Net unrealized gains (loss) on other marketablesecurities
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 to owners of
the parent
Non-controlling interests7(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)Six months
ended June 30,
2017

Six months
ended June 30,
2016
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in provision for directors’ bonuses
Increase (decrease) in provision for directors’ retirement benefits
Increase (decrease) in net defined benefit liability
Decrease (increase) in net defined benefit asset
Interest and dividends income
Interest expense
Share of (profit) loss of entities of equity-method investees
Loss (gain) on sales of short-term and long-term investment securities
Loss (gain) on valuation of short-term and long-term investment securities
Loss (gain) on sales of non-current assets
Loss on retirement of non-current assets
Gain on step acquisitions
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Decrease (increase) in other assets
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in other liabilities
Other
SubtotalInterest and dividends received
Interest expenses paid
Income taxes paid
Income taxes refund
Net cash provided by operating activities
Cash flows from investing activities
Purchase of short-term and long-term investment securities
Proceeds from sales and redemption of short-term and long-term
investment securities
Purchase of non-current assets
Proceeds from sales of non-current assets
Purchase of shares of subsidiaries and associates
Payments of long-term loans
Collection of long-term loans receivable
Payments into time deposits
Proceeds from withdrawal of time deposits
Other
Net cash used in investing activities

8

7,876
8,269
1,151
－
15
513
(57)
(248)
234
(15)
－
148
(42)
159
－
(1,490)(6,037)(3,815)
1,495(1,788)
69
6,437
248
(239)
(2,707)766
4,506

16,357
15,725
1,637
46
(36)
(61)
(7)
(283)
257
(10)
(16)
－
(72)
162
(192)
(8,799)(9,913)(5,189)10,907(7,493)138
13,155283(278)(6,034)
1,220
8,347

(86)

(100)

1

177

(10,237)
195
(3)
(158)
473
(100)
107
－
(9,807)(17,324)
395
－
(79)
20
(100)
100
(4)
(16,915))

Cash flows of financing activities
Proceeds from short-term loan
Repayments of short-term loans payable
Proceeds from long-term loan
Repayments of long-term loans payable
Purchase of treasury shares
Proceeds from sales of treasury shares
Cash dividends paid
Dividends paid to non-controlling interests
Other
Cash flows of financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents from newly consolidated subsidiary
Cash and cash equivalents at end of period

9

Six months
ended June 30,
2016(Millions of yen)Six months
ended June 30,
2017

－
－
－
(1,258)(3)－(2,291)(28)(154)(3,737)48(8,989)79,828－70,8398,000(10,000)
18
(304)
(71)
16
(2,619)(29)(208)(5,198)22(13,743)
86,727
26,79899,782

(4) 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)
The Company conducted a share exchange with Coca-Cola East Japan Co., Ltd. as of April 1, 2017, throughwhich the Company became the wholly owning parent company and Coca-Cola East Japan Co., Ltd. became awholly owned subsidiary company.
As a result, during the first six-month period of this fiscal year, capital surplus increased by 341,562 million yen,
and is recorded at 450,638 million yen as of the end of the second quarter.
(Change in Significant Subsidiaries during the Current Period)(Significant Change in the Scope of Consolidation)
The Company made Coca-Cola East Japan Co., Ltd. a wholly owned subsidiary through a share exchange as ofApril 1, 2017, and included it in the scope of consolidation on the same day.
(Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statement)
Not applicable.
(Changes in Accounting Policies)(Changes in accounting policies that are difficult to distinguish from changes in accounting estimates, and changes
in accounting estimates)(Change in depreciation method and change in service life)
Previously, the Company and some of its consolidated subsidiaries mainly used the declining balance method to
calculate depreciation of property, plant and equipment (excluding sales equipment and leased assets), but we haveswitched to the straight-line method from the first quarter of this fiscal year.
The business integration with Coca-Cola East Japan Co., Ltd. carried out as of April 1, 2017 gives us a stronger
business platform, and by bringing together the know-how in the areas of sales and manufacturing that bothcompanies have cultivated over the past years it will allow us to create an optimal production structure covering awide geographical area. Consequently, as we expect to be able to benefit from the long-term, stable use of property,
plant and equipment (excluding sales equipment and leased assets), using straight-line depreciation to distribute theexpense over its service life will appropriately reflect the pattern of consumption of economic benefits for suchproperty, plant and equipment, so we have therefore decided to change our depreciation method to the straight-line
method.
The Company and some of its consolidated subsidiaries also used the opportunity provided by the change in ourdepreciation method to conduct a utilization study. Previously, we had set the key service life of manufacturingmachinery and equipment at 10 years, but as a result of our study we have revised it to 7-20 years – a predictedeconomic life that more accurately reflects the reality of the situation – and have made changes extending into the
future.
We also took the opportunity provided by the change in our depreciation method for property, plant andequipment to devaluate the residual value of property, plant and equipment after the elapse of its service life to anominal value of one yen, from the first quarter of this consolidated fiscal year.
Compared to the previous method, the aforementioned changes have resulted in a reduction in operating income,recurring income and income before income taxes and minority interests of 284 million yen, 301 million yen and
300 million yen, respectively, for the first six-month period of this consolidated fiscal year.
Please refer to “2. Quarterly Consolidated Financial Statements and Main Notes (4) Notes to Quarterly
Consolidated Financial Statements (Segment Information)” for the impact on segment information.

10(Additional Information)(Changes in Presentation)
Since “rent income” and “gain on sales of valuable wastes,” which were included in “other” in “non-operating
income” in the first six-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 madecertain reclassifications to its consolidated financial statements for the first six-month period of the previous fiscal
year.
As a result, 250 million yen, which was presented in “other” in “non-operating income” in the Consolidated
Statements of Income for the first six-month period of the previous fiscal year, has been reclassified as rent income(64 million yen), gain on sales of valuable wastes (51 million yen) and other (134 million yen).
(Application of Implementation Guidance on Recoverability of Deferred Tax Assets)“Implementation Guidance on Recoverability of Deferred Tax Assets” (ASBJ Guidance No. 26 dated March 28,2016) is applied from the first quarter of this consolidated fiscal year.
(Segment Information)
First six-month period of the previous fiscal year (January 1, 2016 – June 30, 2016)
1. Information on net revenues and profits or losses by reported segment(Millions of yen)
Healthcare & skincare
business

Soft drink business

Total

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

202,844

16,462

219,306

－

－

－

Total

202,844

16,462

219,306

Segment profit

6,991

1,892

8,883

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

11

First six-month period of this fiscal year (January 1, 2017 – June 30, 2017)
1. Information on net revenues and profits or losses by reported segment(Millions of yen)
Healthcare & skincare
business

Soft drink business

Total

Net revenues
Net revenues-outside
customers
Net revenues andtransfer-inter-segment342,817

15,019357,837

－

－

－

Total

342,817

15,019357,837

Segment profit

15,4301,667

17,098(Note) Net revenues and Segment profit are equivalent to Net revenues and Operating income in Quarterly Consolidated
Statements of Income, respectively.
2. Matters relating to assets by reported segment
In connection with the Company making Coca-Cola East Japan Co., Ltd. its wholly-owned subsidiary as of April
1, 2017, the Company included Coca-Cola East Japan Co., Ltd., two of its subsidiaries and four affiliates of theCompany accounted for under the equity method in the scope of consolidation, effective the same day. Mainly
due to the impact of such inclusion, the amount of assets by reported segment in the soft drink business at the endof the first six-month period of this fiscal year increased by 515,591 million yen year on year.
3. Matters relating to changes in the Company’s reported segments(Change in depreciation method and change in service life)
As discussed in “2. Quarterly Consolidated Financial Statements and Main Notes (4) Notes to Quarterly
Consolidated Financial Statements (Changes in Accounting Policies, etc.),” from the first quarter of thisconsolidated fiscal year the depreciation method for property, plant and equipment (excluding sales equipment
and leased assets) was changed to the straight-line method. The key service life of machinery and equipment
has been revised to 7-20 years, and changes have been applied into the future. Furthermore, from the firstquarter of this consolidated fiscal year the residual value of property, plant and equipment after the elapse of its
service life has been devaluated to a nominal value of one yen.
As a result of these changes, compared to the previous method, segment revenue for the first six-month
period of this fiscal year has reduced by 272 million yen in the soft drink business and 12 million yen in thehealthcare & skincare business.
4. Information on impairment loss of fixed assets or goodwill by reported segment(Significant change in the amount of goodwill)
In connection with the Company making Coca-Cola East Japan Co., Ltd. its wholly-owned subsidiary as ofApril 1, 2017, goodwill has arisen with respect to the soft drink business.
The recorded amount of goodwill provisionally calculated in connection with the above is 58,651 million
yen for the first six-month period of this fiscal year.

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