This flash report is unaudited and the translation of the Japanese language version.

Consolidated Financial Summary for
the First Quarter Ended March 31, 2020 (IFRS)
May 13, 2020
Listed company name: Coca-Cola Bottlers Japan Holdings Inc.
Listed stock exchanges: Tokyo and Fukuoka
Code number: 2579
URL: https://en.ccbj-holdings.com/
Delegate: Title: Representative Director & President
Name: Calin Dragan
Contact: Title: Head of Controllers Senior Group Division, Finance Name: Cordula Thomas
Phone: 03-6896-1707
Expected date of quarterly report submission: May 13, 2020
Schedule for dividends payment: Preparation of supplementary materials on quarterly financial results: Yes
Holding of quarterly financial results conference: Yes(Fractions of one million yen are rounded)

1. Consolidated financial results for the first quarter 2020 (from January 1, 2020 to March 31, 2020)(1) Consolidated financial results
Net sales
1st quarter, 2020
1st quarter, 2019

million yen
198,715
198,733(Percentages indicate changes over the same period in the prior fiscal year)
Net loss attributable to Total comprehensive
Net lossowners of the parent
loss

Business loss
％
(0.0)
(3.3)

Loss per share

million yen(6,534)(4,059)Operating loss
million yen(7,881)(12,824)％-

million yen(5,689)(7,985)％-

million yen(5,690)(8,002)％-％-

million yen(10,807)(5,536)％-

Diluted earnings per shareyenyen
1st quarter, 2020
(31.73)
1st quarter, 2019(44.22)
Note “Business loss” is a measure of our recurring business performance that is calculated as costs of goods and selling, general and administrative expenses
are deducted from revenue, and other income and expenses are added and subtracted accordingly.

(2) Consolidated financial position
Total assets

Total equity

million yen
933,373
952,444

Mar. 31, 2020
Dec. 31, 2019

Equity attributable to parent owners

million yen
491,405
506,491

million yen
490,939
505,999

Ratio of equity attributable toparent owners
％
52.6
53.1

2. Dividends
Dividends per share
1Q

2Q

3Q

Year-end

Annual

yen

yen

yen

yen

yen

FY ended December 2019

-

25.00

-

25.00

50.00

FY ending December 2020

-

-

-

FY ending December 2020
0.00
(forecast)
Note: Revisions to the cash dividends forecasts most recently announced: Yes

3. Forecast for consolidated financial results 2020 (from January 1, 2020 to December 31, 2020)
Net sales

Full-year 2020

Business Income

million yen％

million yen

％

-

-

-

-

(Percentages indicate changes over the same period in the prior fiscal year)
Net income for the year
Earnings per
Operating income
Net income
attributable to owners of theshareparentmillion yen
million yen
million yen
yen
％
％
％
-

-

-

-

-

-

Note: Revisions to the forecasts of consolidated operating results most recently announced: Yes
The financial forecast for 2020 has been withdrawn and is currently being evaluated given uncertainty around the COVID-19 spread and emergency declaration
by government as well as the decision to postpone the Tokyo 2020 Olympic and Paralympic Games to 2021.

-

Notes(1) Changes in significant subsidiaries during the current period:(2) Changes in accounting policies and changes in accounting estimates:
1) Changes in accounting policies as required by IFRS:
2) Changes other than those in 1) above:3) Changes in accounting estimates:

None

None
None
None

(3) Number of outstanding shares (common shares)
1) The number of outstanding shares (including treasury shares):
1st Quarter, March 2020:
206,268,593 shares
FY ended December 2019:

206,268,593 shares

2) The number of treasury shares:
1st Quarter, March 2020:

26,918,223 shares

FY ended December 2019:

26,917,320 shares

3) The number of average shares outstanding:
1st Quarter, March 2020:
179,350,772 shares
1st Quarter, March 2019:180,975,250 shares※ The consolidated financial summary is 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 at a time of issuance of this report, and the actual result may bechanged due to a number of inherent uncertainties in the forecast. Actual results may differ materially from the forecast.
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 4 for matters relating to performance forecasts.

Table of Contents
1. Qualitative Information on the Financial Summary for this Quarter .................................................. 2(1) Qualitative Information on Consolidated Financial Results...................................................... 2(2) Qualitative Information on Consolidated Financial Position ..................................................... 4(3) Qualitative Information on the Future Outlook, such as Forecast of Consolidated Financial Results ...................... 4
2. Condensed Consolidated Financial Statements and Notes ......................................................... 5(1) Condensed Consolidated Statement of Financial Position ....................................................... 5(2) Condensed Consolidated Statements of Loss and Comprehensive Loss ............................................ 7(3) Condensed Consolidated Statements of Changes in Equity ...................................................... 9(4) Notes to Condensed Consolidated Financial Statements ....................................................... 10(Notes Relating to Going Concern Assumption) .............................................................. 10(Changes in Accounting Policies) ......................................................................... 10(Segment Information) ................................................................................. 10

1

1. Qualitative Information on the Financial Summary for this Quarter(1) Qualitative Information on Consolidated Financial Results
Coca-Cola Bottlers Japan Holdings Inc. (“CCBJH” or the “Company” or “we”) announced first-quarter results for the fiscal year
ending on December 31, 2020 (January 1, 2020 to March 31, 2020).
During the outbreak of the novel coronavirus (COVID-19), the safety and health of our consumers, our customers and our
employees— especially those on the frontline working daily to produce and supply essential goods and services— is our number
one priority. Our mission is to deliver happy, refreshing moments to everyone, even in challenging times, and we have beenworking with comprehensive business continuity actions in place to ensure safe and secure product supply.
In the quarter, total nonalcoholic ready-to-drink (NARTD) beverage industry volume performance is expected to be negative versus
the prior year mainly due to a decline in March as the government recommended closing schools, working from home and curtailinglarge gatherings as countermeasures against the spread of COVID-19 in late February. The health food and cosmetics industries
continue to expand, driven by demand from health-conscious consumers and new demand driven by new functionality andefficacies, although they too are expected to be impacted during the quarter by the initial impact of the COVID-19 outbreak.
We continue to drive fundamental business transformation under the guiding principle of our mid-term business plan announced inAugust 2019 that “business as usual is not an option”. We are implementing initiatives to return the business to a sustainable growthtrajectory, including transformation in the important vending channel and back-office routines to drive cost efficiencies, andincreasing front-facing investments for growth in such areas as production capacity, space-to-sell and people development. In the
short term, we are focusing on various urgent mitigation initiatives to deal with the rapidly evolving situation triggered by the
COVID-19 outbreak, as we continue to address our cost structure and high fixed-cost base of the beverage business. We are also
accelerating the pace of transformation and identifying new opportunities to ensure we not only address the immediate needs of thebusiness during this crisis, but also that we are well-prepared in the longer term for the post-crisis business environment.
Our first-quarter results, as described below, trended in line with plan in January and February, but were impacted by a drop inbeverage business sales volume in March due to the COVID-19 outbreak.
In addition to this report, please also see our supplementary earnings presentation posted on the Company IR website(https://en.ccbj-holdings.com/ir/library/presentation.php) to be used at our earnings presentation on Thursday, May 14, 2020 at
12:00pm (JST). The earnings presentation and audio will be available live and on demand as an audio webcast in the IR section of
the CCBJH website.

Highlights of First Quarter・ Volume down 2%, reflecting in-line performance in January and February, including vending channel growth and strong
contribution from the Lemon-dou alcohol brand. Sharp decline and channel mix shift in March from outbreak of COVID-19.
・ Value share growth in both over-the-counter and vending channels.
・ Net revenue even versus prior year, reflecting continued benefit from the large-PET wholesale price increase in April 2019and lower rebates as we reprioritize promotional expenses from Deductions from Revenue to Direct Marketing Expense.
・ Business Income loss of 6,534M yen (4,059M yen loss in Q1 2019) reflects planned investments in capacity, marketing andcapabilities, with additional pressure in March due to COVID-19 outbreak.
・ Operating loss of 7,881M yen (12,824M loss in Q1 2019) improved as we cycled one-time expenses from the 2019 voluntary
employee retirement program.
・ Announced withdrawal of our full-year 2020 forecast, given current uncertainty around the spread of COVID-19 andgovernment emergency declaration, as well as the decision to postpone the Tokyo 2020 Olympic and Paralympic Games.
・ Heavier focus on key transformation initiatives to drive deeper and faster results, to help us emerge from the crisis wellpositioned for a “new normal”. Expanding Osaka-area vending transformation project nationwide by end of second quarter.
・ Commissioned new manufacturing line at Hakushu plant (Yamanashi Prefecture). On track to recover and normalize supply
capacity and network. Evaluating current-year capital project timing and rollout given COVID-19 situation.
・ Acting as good stewards of capital; Strong focus on liquidity and capital structure in turbulent times, supported by solid balance
sheet and sufficient debt capacity. Evaluating cash priorities including CAPEX and dividend outlook.

2

Summary of Consolidated Financial Results (IFRS)In million JPY

2019

2020

1st Quarter

1st Quarter(January - March)(January - March)

ChangeNet Revenue

198,733

198,715(0.0%)

Gross Profit

94,602

93,418(1.3%)

98,14099,645

1.5%

Other income (Recurring)

293

227

(22.5%)

Other expenses (Recurring)

800

475

(40.6%)

Investment loss on equity method

(14)

(59)

－

(4,059)(6,534)－

Other income (Non-recurring)

-

0

－

Other expenses (Non-recurring)

8,765

1,348

(84.6%)

Operating Loss

(12,824)(7,881)－

Net Loss Attributable to Owners of Parent(8,002)(5,690)－

Selling, General & Administrative Expenses

Business Income

Sales volume of beverage business (million cases)
110
108
(2%)
Note: “Business Income” is a measure of our underlying or recurring business performance. Business Income deducts cost of goods and selling, generaland administrative expenses from revenue, and includes other income and expenses which we believe recurring in nature.

First-quarter net revenue was 198,715 million yen, nearly even (a decrease of 17 million yen, 0%) with the prior-year period.
Sales volume of the beverage business in the first quarter declined 2% versus the prior year, driven by a sharp decline in Marchas COVID-19 began to spread in Japan. Net revenue of the beverage business grew slightly (up 262 million yen, or +0.1%) to
193,029 million yen, supported by the large PET wholesale price increase from April 2019, national expansion of the Lemondou alcohol brand and lower rebates (decrease of deduction from revenue) as we reprioritize how we invest in promotional andmarketing expenses. Net revenue of the healthcare & skincare business fell by 279 million yen (down by 4.7%) year-on-year to
5,687 million yen, despite new product launches following renewal of the corporate logo and core products in October 2019.
First-quarter business income, an indicator of our recurring business performance, was a loss of 6,534 million yen (4,059 million
yen loss in Q1 2019), reflecting in-line performance in January and February, with additional pressure from the initial impact of
the COVID-19 outbreak. Business income of the beverage business was a loss of 7,081 million yen (4,774 million yen loss in
Q1 2019). This reflects cycling of labor driven by prior-year pension program alignment as well as higher depreciation and otherexpenses reflecting our strategic investments in production capacity, “Big Bet” brand initiatives and expanded selling space, andorganizational capability improvements. Business income in the healthcare & skincare business was 547 million yen, a decreaseof 167 million yen or 23.4% year-on-year driven by revenue decline despite a strong focus on controlling sales promotion
expenses. Consolidated operating loss improved versus the prior year to 7,881 million yen (12,824 million yen loss in Q1 2019).
As a reference, other expenses (non-recurring) in the first quarter 2019 include 8,706 million yen of special retirement allowanceand others due to the introduction of a voluntary employee retirement program. Other expenses (non-recurring) during thisperiod include special retirement allowances of 746 million yen as well as 331 million yen of transformation-related expenses
to drive fundamental transformation of our business for sustainable growth following our newly-developed strategic businessplan announced in August 2019. Net loss attributable to owners of parent also improved, to a loss of 5,690 million yen (8,002
million yen loss in Q1 2019).

Beverage volume performance
In the first quarter, cumulative volume performance through February was positive versus the prior year, including thecontribution of the Lemon-dou brand alcoholic beverage launched nationwide in October 2019. However, as a result of thevolume decline in March triggered by countermeasures to prevent the spread of COVID-19, first-quarter volume declined 2%.
We expect this volume pressure to continue in the second quarter, with April volume down more than 20% versus prior year andsignificant channel-mix shifts as consumers change their behavior. Under the government’s expanded national state of
emergency, all sectors of industry are expected to reduce physical contact among people by more than 70%. On top of that,requests to stay-at-home, event cancellations, and the shortening of opening hours and suspension of operation for restaurants
and leisure facilities are impacting the entire market.
NARTD-beverage volume in the first quarter decreased 4% versus the prior year. Volumes declined in the retail & food and3vending channels in March as a result of school closures, more employees working from home and people refraining from goingout. The vending channel maintained positive momentum through February, but as sales volume declined sharply in train stations,schools, leisure venues and offices in March, vending channel volume declined 3% for the full quarter. Retail & food channel
sales volume declined 10% in the first quarter driven primarily by a sharp decline in food channel volume in March as people
stopped dining out. Convenience store channel volume declined 1% in the quarter as good performance of the renewed
Kochakaden brand Royal Milk Tea was offset by lower performance in coffee, sports drinks and water. Drug & discounterchannel volume has grown steadily since February, and first-quarter volume grew 3% led by increased demand for homeconsumption and stocking-up at home. Supermarket volume decreased 2%, with stable performance throughout the quarter as
sparkling beverage and water category growth was offset by a decline in the sports drink category, driven by overall industry
category decline.
In terms of beverage category volume performance, sparkling beverages declined 3%, driven by the strong decline in the retail& food channel, offsetting growth from the newly-launched Coca-Cola Strawberry and Fanta Premiere Grape. Non-sugar tea(NST) volume also decreased 3% in the first quarter driven by weakness in the vending and retail & food channels, primarily
from March. The Ayataka green tea brand was even versus prior year led by the newly-launched Ayataka Koiryokucha. Coffee
volume declined 2%, as growth in vending supported by PET bottled coffee brands, Georgia Japan Craftsman and the newlylaunched Georgia Latte Nista was offset by a decline in can and bottle can products. The sports drink category declined 17%
due to weak performance in large PET package as a result of overall industry category decline. Water volume grew 2% as the I
Lohas brand grew in supermarket and drug & discounter channels driven by increased demand for at-home consumption.
The alcohol ready-to-drink brand, Lemon-dou, continued to perform well since expanding nationwide in October 2019 and sold1.87 million cases in the first quarter.
(2) Qualitative Information on Consolidated Financial Position
Assets at the end of the quarter were 933,373 million yen, a decrease of 19,071 million yen from the end of the prior year. Thisis mainly due to an increase of inventories to ensure stable supply as we continue to ramp up production capacity in the first halfof 2020, and higher fixed assets as a result of the strategic capital investments we have been making to increase supply capacity
and space to sell. This was offset by decreases in Cash and Cash Equivalents, Trade and Other Receivables. Furthermore, Other
Financial Assets decreased due to lower values in Investment in Securities driven by recent stock market performance.
Liabilities at the end of the quarter were 441,968 million yen, a decrease of 3,985 million yen from the end of the prior year.
This is mainly due to a decrease of Trade and Other Payables by paying prior-year period capital expenditure upon completionof capital projects.
Net Assets at the end of the quarter were 491,405 million yen, a decrease of 15,086 million yen. This is mainly due to a decreaseof Other Comprehensive Income and a decline of Retained Earnings as a result of paying year-end dividends.
Also, we accessed 50 billion yen in short-term borrowing from banks in April 2020 in order to ensure sufficient liquidity andaccess to cash as a backstop during this period of high uncertainty.
(3) Qualitative Information on the Future Outlook, such as Forecast of Consolidated Financial Results
After reviewing recent business performance, the Company announced an update to its full-year 2020 (January 1 to December
31, 2020) earnings forecast, which was previously released on February 13, 2020. For details, please refer to the “Revision of
Full-Year 2020 Earnings and Dividend Forecast” separately announced today.

42. Condensed Consolidated Financial Statements and Notes(1) Condensed Consolidated Statement of Financial Position(Millions of yen)
As ofMarch 31, 2020

As ofDecember 31, 2019
AssetsCurrent assets:
Cash and cash equivalents

113,825

89,261

Trade and other receivables

98,52885,855Inventories

74,12080,954752

711

Other financial assets
Other current assets

17,587

20,285

Total current assets

304,812

277,066

Property, plant and equipment

467,136474,968

Right-of-use assets

39,62938,936

Goodwill

27,021

27,021Intangible assets

67,12367,003

Non-current assets:

Investments accounted for using the equity method

310

309

Other financial assets

33,49928,312

Deferred tax assets

6,093

11,717

Other non-current assets

6,820

8,041

Total non-current assets

647,632

656,307952,444933,373

Total assets

5

(Millions of yen)
As ofMarch 31, 2020

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

122,364

115,501

Bonds and debts

17,261

17,105

Lease liabilities

6,634

6,727

Other financial liabilities

916

2,941

Income taxes payable

1,104

568

20

23

Other current liabilities

19,886

21,554

Total current liabilities

168,186

164,420

Bonds and debts

188,487

187,986

Lease liabilities

34,13833,575Net defined benefit liabilities

24,90825,684

Provisions

2,104

2,183

Deferred tax liabilities

24,876

24,793

Provisions

Non-current liabilities:

Other non-current liabilities

3,254

3,326

Total non-current liabilities

277,767

277,548445,953441,968

Total liabilities
Equity:Capital stock

15,232

15,232

Capital surplus

450,526

450,592

Retained earnings

121,372

111,198

Treasury shares(85,649)(85,652)

4,517

(432)

505,999

490,939

Other comprehensive income accumulated
Equity attributable to owners of parent
Non-controlling interests
Total equity
Total liabilities and equity

6

492

466

506,491

491,405

952,444933,373(2) Condensed Consolidated Statements of Loss and Comprehensive Loss
(Consolidated Statements of Loss)
Three months ended
March 31, 2019
198,733(Millions of yen)Three months ended
March 31, 2020
198,715

104,131

105,297

Gross profit

94,602

93,418Selling and general administrative expenses

98,14099,645Net sales
Cost of sales

Other income

293

227

Other expenses

9,565

1,822

Share of loss of entities accounted for using equity method

(14)

(59)

Operating loss

(12,824)(7,881)

Financial revenue

377

95

268

276

(12,715)(8,063)

Income tax benefit(4,730)(2,374)

Net loss for the period(7,985)(5,689)(8,002)(5,690)172(44.22)(31.73)Finance costs
Loss for the period before income taxes

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

Loss per share (yen)7

(Condensed Consolidated Statements of Comprehensive loss)

Net loss for the period

Three months ended
March 31, 2019
(7,985)(Millions of yen)Three months ended
March 31, 2020
(5,689)

1,785

-

673

(3,414)

2,458(3,414)(9)(1,704)(9)(1,704)

Other comprehensive income:Items that will not be reclassified subsequently to income or loss:
Remeasurements of defined benefit plans
Net change in financial assets measured at fair value through othercomprehensive income
Subtotal
Items that may be reclassified subsequently to loss:
Cash flow hedges
Subtotal
Total other comprehensive income for the period

2,449(5,119)Total comprehensive loss for the period(5,536)(10,807)(5,553)(10,809)17

2

Comprehensive income (loss) attributable to:
Owners of parent
Non-controlling interests8(3) Condensed Consolidated Statements of Changes in Equity(Millions of yen)

Capital stock

Equity attributable to owners of the parent company
Other
Retained
Treasurycomprehensive
Total
earnings
Sharesincomeaccumulated

Sharepremium

Noncontrollinginterests

Total

Balance as of January 1, 2019
(Before restatement)

15,232450,533

182,418(72,651)

4,915

580,448458

580,906

Adjustments resulting from theadoption of IFRS 16

-

-

(338)

-

-

(338)

-

(338)

Balance as of January 1, 2019
(After restatement)

15,232450,533

182,080(72,651)

4,915

580,110458

580,568--(8,002)--(8,002)

17(7,985)

-

-

-

-

2,449

2,449

-

2,449

-

-

(8,002)-

2,449(5,553)17(5,536)

-

(64)
(0)

(4,587)-(12,991)
0-(4,587)(13,055)0(22)-(4,609)(13,055)
0

-

41

-

-

-

41

-

41

Reclassification fromaccumulated other comprehensive
income (loss) to retained earnings

-

-

1,785

-

(1,785)---

Reclassification fromaccumulated other comprehensive
loss to non-financial assets

-

-

-

-

(41)

(41)

-

(41)

-

(23)

(2,802)(12,991)(1,827)(17,642)(22)(17,664)

15,232450,511

171,276(85,641)

5,538

556,915453

557,368

Comprehensive income (loss) for theyear
Net income (loss) for the period
Other comprehensive income
Total comprehensive income (loss)
for the year
Transactions with owners.
Dividends of surplus
Purchase of treasury stock
Disposal of treasury stock
Transactions of share-based
payment

Total transactions with owners.
Balance as of March 31, 2019

(Millions of yen)
Equity attributable to owners of the parent company
Othercomprehensive
Retained
incomeearnings
Treasury shares
accumulated
Total
121,372(85,649)4,517
505,999

Capital stock
15,232Sharepremium
450,526

Net income (loss) for the period--(5,690)--

Other comprehensive loss
Total comprehensive income (loss)
for the period
Transactions with owners

-

-

-

-

-

-

(5,690)

Dividends of surplus--

Purchase of treasury stock-

Disposal of treasury stock-

Transactions of share-based
payment-

Balance as of January 1, 2020
Comprehensive income (loss) for theperiodReclassification from accumulated
other comprehensive income toretained earnings

Reclassification from accumulated
other comprehensive income tonon-financial assets

Total transactions with owners
Balance as of March 31, 2020

Non-controllinginterests
492

Total
506,491(5,690)2(5,689)(5,119)(5,119)-(5,119)-(5,119)(10,809)2(10,807)(4,484)--(4,484)(28)(4,512)

-

-

(3)

-

(3)

-

(3)

(0)

-

0

-

0

-

0

66

-

-

-

66

-

66

-

-

0

-

(0)

-

-

-

-

-

-

-

170

170

-

170

15,232

66
450,592(4,484)111,198(3)(85,652)

170
(432)

(4,250)490,939(28)
466(4,278)491,4059

(4) Notes to Condensed Consolidated Financial Statements(Notes Relating to Going Concern Assumption)
Not applicable.
(Changes in Accounting Policies)
Not applicable.
(Segment Information)
Operating segments are defined as the components of the Group for which separate financial information is available that isevaluated 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 to form reportablesegments. The principal products and services belonging to the reportable segments are as follows.
Reportable segments
Beverage Business

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

Healthcare & Skincare Business

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

The Board of Directors evaluates the performance of 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:
For the three months ended March 31, 2019
(Millions of yen)

Reportable segments
Beverage
Business
Sales revenue to external customers

Healthcare &Reportable

Skincaresegments

Business

Total

192,767Intersegment sales accumulation

5,966

Adjustment

198,733-

Total

198,733

-

-

-

-

-

Total sales revenue

192,767

5,966

198,733-

198,733

Segment profit (loss)(13,538)714(12,824)-(12,824)

Adjustments
Financial revenue

377

Finance costs

268

Loss before tax(12,715)

For the three months ended March 31, 2020
(Millions of yen)

Reportable segments
Beverage
Business
Sales revenue to external customer

Healthcare &Reportable

Skincaresegments

Business

Total

Adjustment

Total

193,029

5,687

198,715

-

-

-

-

-

-

Sales revenue

193,029

5,687

198,715-

198,715

Segment income (loss)(8,428)547(7,881)-(7,881)

Intersegment sales revenue

198,715

Adjustments
Financial revenue

95

Finance costs

276

Loss before tax(8,063)10