This document is a summary translation of the Japanese language original version. In the event of any discrepancy, errors and/oromissions, the Japanese language version shall prevail.

August 7, 2019
To whom it may concern:
Company Name

Coca-Cola Bottlers Japan Holdings Inc.

Representative Name

Calin Dragan
Representative Director and President

Securities Code:

2579

Stock Listings:

Tokyo Stock Exchange, First Section
Fukuoka Stock Exchange

Contact:

Masakiyo Uike

Phone:

General Manager, Controllers SeniorGroup, Finance+81-3-6896-1707

Loss due to impairment of goodwill and revision of Full-Year 2019 Forecast
Coca-Cola Bottlers Japan Holdings Inc. (the Company) announced that it had recorded an impairment
loss in the consolidated financial results for the 2nd quarter 2019 and revised its full-year 2019 earnings
forecast, which was previously released on May 15, 2019, as follows.
1.

Impairment losses of goodwill

The Company announced its new mid-term business plan toward 2024, “THE ROUTE to 2024” today,
together with the consolidated financial results for the 2nd quarter 2019. In the plan, the Company isplanning to carry out structural transformation and capital investments to improve cost efficiencies andto drive medium and long-term sustainable growth, and these initiatives will have impacts on free cash
flow generation in short term.
The Company performed an impairment test on goodwill as required by IFRS, which was recognized
upon acquisition of Coca-Cola Bottlers Japan Inc. (former Coca-Cola East Japan Co., Ltd.) when it
became a consolidated subsidiary of the Company as a result of the business integration in April 2017,and assessed recoverable amount according to the updated strategic business plan. As a result, theCompany has decided to reduce the carrying amount of goodwill to the recoverable amount, and torecord 61,859 million JPY of “Impairment loss of Goodwill” which represents the full goodwill balance
allocated to beverage business in the consolidated financial results for the 2nd quarter 2019.

12.

Revision of full-year forecast(1) Revision of full-year 2019 (from January 1, 2019 to December 31, 2019) forecast
Net income
attributable
to the ownersof parent

Net
revenues

Business
incomeOperatingincomeNet
incomemillion yen

million yen

million yen

million yen

million yen

923,300

15,400

8,800

5,200

5,200

28.91Yen923,300

15,400-53,100-56,700-56,700-315.26Yen

Difference (A-B)－－-61,900-61,900-61,900

Difference (%)－－－－－

927,307

23,276

14,682

10,162

10,117

Forecast as of May 15,
2019 (A)
Revised forecast
announced today (B)(Reference)
Full-year 2018 results

Earnings
per share

52.68 Yen

* We have introduced “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 otherincome and expenses which we believe are recurring in nature.
(2) Reason for revision
As a result of goodwill impairment loss of 61,859 million JPY in the consolidated financial results for the2nd quarter 2019 as stated, the Company expects that full-year operating income, net income, and net
income attributable to owners of the parent will be lower than the previously announced forecast. TheCompany’s recurring business performance is trending in-line with the revised forecast announced onMay 15, 2019, therefore there are no changes for the revenue and business income forecast at thistime.
Although the Company expects net loss attributable to owners of the parent, we maintain full-year
dividend forecast unchanged from previously announced guidance (Full-year dividend forecast: 50
JPY/share, with interim dividend of 25 JPY/share and year-end dividend forecast 25 JPY/share).
* Figures in the above forecast are based on information available to management at the time of announcement. Dueto inherent uncertainties in the forecast, actual results may differ materially from the forecast.
(End of document)2