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, 2019 (IFRS)
February 13, 2020
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: Calin Dragan
Name: Cordula Thomas
Phone: +81-3-6896-1707

Expected date of general shareholders meeting: March 26, 2020
Expected date of the dividend payment: March 27, 2020
Expected date of submission of annual securities report: March 27, 2020
FY 2019 supplementary information: Yes
FY 2019 financial presentation: Yes(Fractions of one million yen are rounded)

1. Consolidated financial results for the fiscal year ended December 31, 2019 (from January 1, 2019 to December 31, 2019)(Percentages indicate changes over the same period in the prior fiscal year)(1) Consolidated financial results
Net sales

Dec. 31, 2019
Dec. 31, 2018

Business Income

Operating income

millionyen％

millionyen％

914,783
927,307

(1.4)
10.8

15,042
23,276(35.4)(42.1)

Earnings per share

millionyen

millionyen％(55,389)－
14,682 (60.9)

Diluted earnings per share

yen

yen

Net income for the
Total comprehensive
year attributable toincomeowners of the parent

Net income

millionyen％(57,895)－
10,162 (53.6)％(57,952)－
10,117 (53.9)

millionyen％(52,108)－
3,197 (89.4)

Ratio of income to equity
Ratio of income before tax Ratio of Operating income
attributable to owners of
to total assets
to net sales
the parent％％％－
Dec. 31, 2019(322.22)(10.7)
(6.1)
(6.1)
52.68
－
1.6
1.6
1.6
Dec. 31, 2018
Reference: Share of income (loss) of entities accounted for using equity method
Fiscal Year 2019: 43 million yen
Fiscal Year 2018: (5) million yen* “Business Income” is a measure of our underlying or recurring business performance after the adoption of IFRS, and deducts costof goods and SG&A from revenue, and includes other income and expenses which we believe are recurring in nature.

(2) Consolidated financial position
Total assets

Dec. 31, 2019
Dec. 31, 2018

Equity attributable toEquity attributable to parent Ratio of equity attributableowners of the parent per
ownersto parent owners
share

Total equity

million yen

million yen

million yen％

yen

952,444877,472

506,491
580,906

505,999
580,44853.1
66.2

2,821.27
3,163.63(3) Consolidated cash flows
Net cash from (used in)Investing activities

Operating activities

Financing activities

Cash and cash equivalents
at end of year

Year ended

million yen

million yen

million yen

million yen

Dec. 31, 2019
Dec. 31, 2018

42,62951,244(68,308)(48,628)

73,994(55,835)

113,825
65,5102. Dividends(Record date)

1Q

Dividends per share
Year2Q
3Q
end

AnnualTotal dividend
Dividend
Ratio of dividends
payments
payout ratio
to net assets（annual）(consolidated)(consolidated)Year ended

yen

yen

yen

yen

yen

million yen%%

Dec. 31, 2018
Dec. 31, 2019
Dec. 31, 2020
(forecast)

－
－

25.00
25.00

－
－

25.00
25.00

50.00
50.00

9,266
8,968

94.9
－

1.6
1.7

－

25.00

－

25.00

50.00

99.6

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

Full year
2020

Business Income(Percentages indicate changes over the same period in the prior fiscal year)
Net income for the year
Earnings
Operating income
Net income
attributable to owners ofper share
the parent

million yen％

millionyen％

millionyen％

millionyen％

million yen％

yen

927,200

1.4

18,00019.7

14,000

－

9,000

－

9,000

－

50.18

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 2019: 206,268,593 shares
FY 2018: 206,268,593 shares
2) Number of treasury shares at the end of period:
FY 2019: 26,917,320 shares
FY 2018: 22,793,049 shares
3) Average number of outstanding shares during the period:
FY 2019: 179,852,114 shares
FY 2018: 192,050,508 shares(Reference) Summary of the Non-consolidated Financial Results
1. Non-consolidated financial results for the fiscal year ended December 31, 2019 (from January 1, 2019 to December 31, 2019)(1) Non-consolidated financial results(Percentages indicate changes over the same period in the prior fiscal year)

Operating revenue

Operating income

Recurring income

Net income

Year ended

million yen%

million yen%

million yen%

million yen%

Dec. 31, 2019
Dec. 31, 2018

26,517
10,375155.6(10.3)

21,730
5,734

278.9
99.3

20,273
5,224

288.1(14.2)

20,7024,395

371.0(11.9)

Earnings per
share

Dec. 31, 2019
Dec. 31, 2018

Diluted earnings per
share
yen

yen

115.11

－

22.89

－

(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, 2019
Dec. 31, 2018549,683

331,13960.2

1,846.32

478,594
Reference: Net assets (excl. minority interests)
Fiscal Year 2019: 331,139 million yen

332,50769.5

1,812.27

Fiscal Year 2018: 332,507 million yen* Consolidated Financial Results are not subject to quarterly review procedures conducted by certified public accountant
or audit firm.
* Explanation regarding appropriate use of the forecast, other special instructions
Figures in the above forecast are based on information available to management at the time of announcement.
Due to number of inherent uncertainties in the forecast, actual results may differ materially from theforecast. Furthermore, please refer to “1. Overview of Operating Results, etc. (1) Analysis of Operating
Results (Outlook for 2020)” on page 4 for matters relating to performance forecasts.

Table of contents
Page
Attachment
1. Overview of Operating Results, etc. …………………………………………………………………………………………

2(1) Analysis of Operating Results ……………………………………………………………………………………………

2(2) Analysis of Financial Position ……………………………………………………………………………………………

5(3) Basic Policies for Income Distribution and Dividends for FY2019 and FY2020……………………………………….

6

2. Basic Concept Concerning the Selection of Accounting Standards………………………………………………………….

6

3. Consolidated Financial Statements and Notes ……………………………………………………………………………….

7(1) Consolidated Statement of Financial Position…………………………………………………………………………….

7(2) Consolidated Statements of Income and Comprehensive Income ……………………………………………………….

9(Consolidated Statements of Income) ……………………………………………………………………………………

9(Consolidated Statements of Comprehensive Income) ………………………………………………………………….

10(3) Consolidated Statements of Changes in Equity …………………………………………………………………………

11(4) Consolidated Statements of Cash Flows …………………………………………………………………………………

13(5) Notes to Consolidated Financial Statements ……………………………………………………………………………

15(Notes Relating to Going Concern Assumption) ………………………………………………………………………

15(Changes in Accounting Policies) ………………………………………………………………………………………

15(Segment Information, etc.) ……………………………………………………………………………………………

16(Per Share Information) ……………………………………………………………………………………………….…

18(Significant Subsequent Events) …………………………………………………………………………………………

18

4. Others …………………………………………………………………………………………………………………………

19(1) Changes in Key Consolidated Management Indicators …………………………………………………………………

19(2) Officer Change……………………………………………………………………………………………………………

20

1

1. Overview of Operating Results, etc.
(1) Analysis of Operating Results(Qualitative information on the Consolidated Operating Results)(Overview of Full-year 2019 Results)
Coca-Cola Bottlers Japan Holdings Inc. (“CCBJH” or the “Company”) announced the results of the fiscal year ending on
December 31, 2019 (January 1, 2019 to December 31, 2019). In this fiscal year, total non-alcoholic ready-to-drink (NARTD)
beverage industry volume performance is estimated to be slightly negative versus prior year mainly due to cycling of strong
demand driven by hot summer weather last year as well as longer rainy and cool weather in July. The health food and cosmetics
industries continue to grow, driven by demand from health-conscious consumers and inbound tourism, while the competitiveenvironment has been marked by successive product launches by various industry players.
For CCBJH, 2019 has been a transition year focused on recovery from the flooding damage and disruption to product supply
in 2018 and building a solid foundation for future growth. We have been making major investments to recover our supply networkand progressively expand production capacity, and will continue to do so through second quarter 2020. We were the first in thebeverage industry to announce and implement a wholesale price increase for large PET products in April, the first time in 27
years, as an important initiative toward achieving more balanced volume and revenue growth.
We developed and announced a new five-year strategic business plan in August 2019 with targets for both Business Income
margin and ROE in 2024 of 5 to 6%. The new five-year strategic business plan includes focused investments to reignite sales
growth in close collaboration with Coca-Cola (Japan) Company, Limited as well as fundamental transformation to drive costsavings. Over the course of the five-year plan, we expect net cost savings of approximately 35 billion yen, representing ongoingsavings initiatives and incremental programs focused on transforming our vending channel operations, evolving our frontline
salesforce capabilities and identifying opportunities across procurement and our supply chain.
Our full-year results were impacted by a decline of topline revenue due to lower beverage business sales volume, reflecting
supply constraints of higher-growth aseptic PET products and continued lower manufacturing efficiencies and elevated logistics
and distribution expenses as we recover our supply and distribution infrastructure after the flooding in 2018. Business income
for our core beverage business was ahead of the plan we announced in May 2019, offset by weaker performance in the healthand skincare segment. Consolidated year-to-date results also reflect impairment of goodwill recorded in the second quarter.
In addition to the qualitative information contained in this report, please also see our earnings presentation material posted on
the Company IR website (https://en.ccbj-holdings.com/ir/library/presentation.php) to be used at our earnings presentation on
Friday, February 14, 2020 at 1:30pm (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.
Full-year 2019 Highlights
・ Full-year NARTD beverage volume declined 2%, reflecting unseasonably cool and rainy weather in July and thewholesale price increase in April, recovering to 1% growth in the fourth quarter (October to December). Full-year
beverage business revenue declined 1% and grew 1% in the fourth quarter.
・ Beverage business market share improved, with value share growth ahead of volume share in the fourth quarter led bycoffee, non-sugar tea and sports category performance. Premium-priced new products contributed to value share growth・ Business Income (BI) was substantially in-line with the full-year plan announced in May 2019 led by ahead-of-plancore beverage performance despite underachievement of the health care & skin care business. Full-year Business
Income decreased 35% versus prior year as we continue to recover from the supply disruption of 2018.
・ Full-year operating loss of 55 billion yen reflects the goodwill impairment recorded in the second-quarter.
・ Continued investment for recovery of supply network, expanding production capacity and improving infrastructure.
Capital investments of close to 90 billion yen in 2019, with three new manufacturing lines and two new automatedwarehouses, as well as completion of company-wide deployment of a new ERP system, “CokeOne”.
・ Major transformational initiatives ongoing. Announced new organizational structure aligned with the strategic businessplan and grounded in new corporate mission, vision and value statement. Executing transformation in vending businessand investing in people capability development to achieve sustainable growth.

2

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

2018

2019

YoY

Net Revenue

927,307914,783(1.4)%

Gross Profit

452,151

441,060(2.5)%

426,195

423,685(0.6)%

Other income (Recurring)

1,635

1,083

(33.8)%

Other expenses (Recurring)

4,310

3,459

(19.7)%

(5)

43

－

23,276

15,042(35.4)%

Impairment losses of goodwill－

61,859－Other income (Non-recurring)

481

3,045

533.2%

Other expenses (Non-recurring)

9,075

11,61728.0%

Operating Income (Loss)

14,682(55,389)－

Net Income (Loss) Attributable to Owners of Parent

10,117(57,952)－

Sales volume of beverage business (Million cases)

515

503

(2)%

Selling, General & Administrative Expenses

Investment gain (loss) on equity method
Business Income

Q4 (October to December)
In Million JPY, IFRS

2018

2019

Net Revenue

216,991

220,020

1.4%

Gross Profit

102,766

103,7961.0%

106,252

104,874(1.3)%

Other income (Recurring)

522

194

(62.9)%

Other expenses (Recurring)

2,458

1,309

(46.7)%

149

133(11.2)%(5,272)(2,061)－Other income (Non-recurring)

－

908

－

Other expenses (Non-recurring)

137

2,357

1,625.6%

Operating Income (Loss)(5,409)(3,510)－Net Income (Loss) Attributable to Owners of Parent(2,737)(2,258)－

Sales volume of beverage business (Million cases)

119

119

1%

Selling, General & Administrative Expenses

Investment gain on equity method
Business Income (Loss)

YoY* Sales volume of beverage business excludes alcoholic beverage volume, which was 1.9 million cases in 2019.
* We have introduced “Business Income” as a measure of our underlying or recurring business performance after the adoptionof IFRS in 2019. Business income deducts cost of goods and SG&A from revenue and includes other income and expenses
which we believe recurring in nature.
Full-year 2019 net revenue was 914.8 billion yen, a decrease of 12.5 billion yen, or 1.4% compared to the prior-year period.
Net revenue of the beverage business decreased 9.9 billion yen (1.1%) versus the prior-year period, to 890 billion yen, reflecting
a 2% volume decline offset by improved price/mix from the wholesale price increase of large PET packages in April and thenational launch of Lemon dou “chu-hi” alcohol beverage in the fourth quarter. Net revenue of the healthcare & skincare businessdeclined 2.7 billion yen (9.7%) year-on-year to 24.8 billion yen, reflecting continued weakness of mail/web order sales withsome recovery in the fourth quarter due to new product launches and marketing activities.

3

Full-year business income, an indicator of our recurring business performance, was 15.0 billion yen, a decrease of 8.2 billion,
or 35.4% year-on-year, and roughly in line with full-year expectations. Business income of the core beverage business was 11.4
billion yen (down 6.5 billion yen or 36.2% year-on-year), which was slightly above the revised plan target announced in May
driven by tight control of expenses. The beverage business performance reflects weaker topline revenue due to the sales volume
decline of 2% and continued lower manufacturing efficiencies and elevated logistics and distribution expenses this year as werecover and expand supply capacity after the disruption in the second half of 2018. Partly offsetting this pressure, we achievedlabor savings as a result of integrating retirement benefit programs in the first quarter and completing a voluntary employee
retirement program in the second quarter. Promotional expenses in the period were also lower, in line with volume performance.
Business income in the healthcare & skincare business was 3.6 billion yen, a decrease of 1.7 billion yen or 32.7% year-on-year,
reflecting lower revenues while we continue to focus on promotional expense control and other cost savings opportunities.
We reported a consolidated operating loss for the fiscal year of 55.4 billion yen (14.7 billion yen operating income in prioryear period), mainly driven by the impairment of goodwill recorded in the second quarter. As a reference, other expenses (nonrecurring) in the prior-year period include loss on disaster of 8.9 billion yen from the flooding damage in our Hongo Plant in
Mihara-city, Hiroshima Prefecture in July 2018. Other expenses (non-recurring) in 2019 include 9.2 billion yen of special
retirement allowance and 655 million yen of transformation-related expenses to drive fundamental transformation of ourbusiness for sustainable growth, further value creation and efficiency improvement following our newly developed strategic
business plan announced in August 2019.
Net income attributable to owners of parent was a loss of 58.0 billion yen (10.1 billion yen in the prior-year period).

Beverage volume performance by channel and category (excluding alcohol)
Full-year volume performance was impacted by weaker performance of new launches and product renewals this year as we
focus on rebuilding supply capacity, large PET volume declines due to the wholesale price increase in April, and unseasonably
rainy and cool weather in July. Volume performance has recovered and 1% growth in the fourth quarter.
By channel, full-year supermarket, drug & discounter and convenience store volume declined 3%, 2% and 4%, respectively.
The vending and retail & food channels both declined 1% versus the prior year. Supermarket and drug & discounter channels
were initially impacted by the wholesale price increase in April, as the large PET volume contribution is relatively higher inthese channels, with double-digit volume declines in the second quarter. Fourth-quarter volume for both channels grew 3%
and 4%, respectively, as the wholesale price increase settled in and we started to cycle the worst of the prior-year supply
constraints in the second half of the year. Also, revenue per case continued to improve in both channels after the wholesale
price increase. Vending volume in the fourth quarter was even versus prior year, reflecting continued moderating volume trends
from third quarter. We have expanded initiatives to drive vending purchase transaction growth, such as new package sizes andprice points, as well as increasing availability of the Georgia Japan Craftsman brand in aseptic PET packaging.
By category, full-year coffee volume was even versus prior year supported by expanding coverage of Georgia Japan Craftsman
across all channels and introducing smaller package sizes in coffee in vending. Non-sugar tea and sports category volumes grewin the fourth quarter, but full-year volume decreased 1% and 3%, respectively, impacted by large PET package volume declines
after the wholesale price increase. Sparkling beverage volume declined 5% for the full year due to weaker product renewal
performance and the wholesale price increase, which was partially offset by new product launches such as Coca-Cola Energy inthe third quarter. Full-year water volume declined 8% as we cycled prior year product launches of immediate consumption
iLohas-brand water, and as a result of the wholesale price increase, which impacted sales of Mori no Mizu brand water sold in
two-liter packaging. Fourth-quarter water volume grew 1%, led by growth of plain iLohas-brand water.
(Outlook for next fiscal year)
In 2020, we expect the overall Japan non alcoholic ready-to-drink (NARTD) beverage market volume to be flat versus 2019,cycling lower demand due to the cool and rainy summer weather in 2019 and the large PET wholesale price increase.
Under these circumstances, and reflecting the mid-term business plan’s guiding principle that “business as usual is not an
option”, CCBJH is executing a transformation of our cost structure, including in the important vending channel and back-officeroutines, and increasing front-facing investments for growth in such areas as production capacity, space-to-sell and people
development, and we will continue to drive fundamental business change to return to a sustainable growth trajectory.
In the beverage business segment, in order to grow together as one “Coca-Cola System” in Japan, we will work closely with
the Coca-Cola (Japan) Company, Ltd. with aligned investment plans and more focused innovation on “fewer, bigger bets” to4

drive revenue growth. And we will continue to transform the Commercial organization to realize best-in-class customer
management, starting with a new organizational structure in January 2020 in order to strengthen customer relationships and sales
execution. Regarding the vending channel, we aim to deliver sustainable growth by expanding the operational process
reengineering we started in the Kinki region in 2019. In addition, together with The Coca-Cola Company as a world-wide partner,
we will leverage the excitement of the Tokyo Olympic and Paralympic games held in Japan for the first time in 56 years, andwe will implement comprehensive marketing campaigns to activate the market. Finally, the national launch of the Lemon-dou
alcohol brand is performing well, and we will continue to expand our presence in this new beverage category.
Regarding our manufacturing capacity and efforts to optimize our logistics and distribution network, which are key elementsof our growth plan, we will commission four new production lines in 2020, including the new Hiroshima plant, and we continue
to build out the Project Shinsei logistics and distribution infrastructure, including optimization of sales centers and constructionof automated warehouses and a new mega distribution center in Saitama Prefecture. We will also expand the transformation of
our back office operations into what we call centers of excellence and centers of scale, including outsourcing of transactional
processing where feasible. Our intiatives include people strategies aligned with our new Mission, Vision and Values as well as
initiatives for ESG goals for creating shared value including World Without Waste, our 2030 Package Vision for the Coca-Colasystem in Japan.
In the health food and cosmetic business, we expect continued market growth, but with intensified competition as more players
seek to participate in this growing market segment. Under these circumstances, we will activate the existing main products andrecent new launches with effective marketing and advertising, including expanding to internet sales and focusing on action to
expand our customer base. Also, we will continue to make efforts in product development and marketing capabilities to ensure
a pipeline of relevant products that meet consumers’ changing needs.
We expect consolidated revenue for this year will be 927.2 billion yen, an increase of 1% versus 2019, reflecting total beveragevolume growth of 3%. Business income is expected to increase 20.0% versus the prior year, to 18.0 billion yen. Reported
operating income is expected to increase 14.0 billion yen (In 2019, Operating loss is 55.4 billion yen). Net income attributable
to the owners of the parent is expected to 9.0 billion yen (In 2019, Net loss attributable to the owners of the parent is 58.0 billion
yen).
(2) Analysis of Financial Position
Assets at the end of the fiscal year were JPY 952.4 billion yen, an increase of 75.0 billion yen from the end of the previous
fiscal year. This is mainly attributable to an increase of Cash and cash equivalents by bond issuance in the third quarter, increaseof fixed assets as a result of commissioning three new production lines in Kumamoto and Kyoto plant, and two new automatedwarehouses in Hakushu and Kumamoto plant as well as non-current assets by newly including Right-of- use assets as a result of
the implementation of IFRS 16 starting from this fiscal year, which are partially offset by decrease of goodwill by goodwill
impairment in the second quarter.
Liabilities at the end of the quarter were 446.0 billion yen, an increase of 149.4 billion yen from the end of previous fiscal
year. This is mainly due to an increase of Bonds and debt in non-current liabilities due to issuance of the bond, and an increaseof Lease liabilities in conjunction with including Right-of-use assets.
Net assets at the end of the quarter were 506.5 billion yen, a decrease of 74.4 billion yen. This is mainly due to a decrease of
Retained Earnings as a result of the goodwill impairment and an increase of Treasury Shares due to the completion of the sharebuyback program in February 2019.
The cash flow conditions for the full-year are as follows.
<Cash Flows from Operations>
Net cash used for operations was 42.6 billion yen (51.2 billion net cash generated from operations in the previous year period).
This results mainly from the 55.4 billion yen net loss before tax, loss due to impairment of goodwill, depreciation expenses,
increase of notes and account payable-trade, etc. offset by an increase of trade and other receivable, inventories, payment oftaxes, etc.
<Cash Flows from Investment Activities>
Net cash used for investment activities was 68.3 billion yen (48.6 billion yen in the previous year period), due to purchases of
fixed assets as we recover our supply network and progressively expand production capacity, etc.
5<Cash Flows from Financing Activities>
Net cash generated from financing activities was 74.0 billion yen (55.8 billion yen net cash used for financing activities in theprevious year period), driven by an issuance of 150 billion yen of straight bond, etc., partially offset by cash spent for share buyback, payment of year-end dividends, etc.
As a result of these activities, cash and cash equivalents at the end of the fiscal year was 113.8 billion yen, an increase of 48.3
billion yen versus the prior year period.
(3) Basic Policies for Income Distribution and Dividends for FY2019 and FY2020
The Company periodically reviews its capital structure and dividend payout ratio to maximize shareholder returns while
maintaining flexibility to pursue growth 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 to ownersof the parent. 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 2019, and the annual dividend
will be 50 yen per share including the 25 yen-per-share interim dividend. This represents the same per-share dividend versus
prior year. Regarding the dividend forecast for the year ending December 2020, the Company plans to pay the same amount ofdividend per share, which is 25 yen per share for the interim and year-end dividends, respectively, and therefore the expectedannual dividend will be 50 yen per share. This reflects the business outlook for the year as well as our policy of prioritizing stabledividends payment during this period of transformation.
The Company continues to consider the implementation of share buybacks by comprehensively reviewing the Company’sbusiness performance and level of retained earnings. The Company completed 13 billion yen of share buybacks in the fiscal year
ending December 2019.

2. Basic Concept Concerning the Selection of Accounting Standards
Coca-Cola Bottlers Japan Holdings Group (The Group) discloses consolidated financial statements based on International
Financial Reporting Standards (IFRS) starting from the fiscal year ending December 2018, with a view to enhancing the international
comparability of financial statements and contributing 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, 2018
AssetsCurrent assets:
Cash and cash equivalents
Trade and other receivables
Inventories
Other financial assets
Other current assets
Total current assets
Non-current assets:
Property, plant and equipment
Right-of-use assets
Goodwill
Intangible assets
Investments accounted for using the equity
methodOther financial assets
Net defined benefit assets
Deferred tax assets
Other non-current assets

65,51092,402
68,781645
10,740113,825
98,52874,120752
17,587238,078

304,812435,305

467,136
39,62927,021
67,123－
88,88066,539298

Total non-current assets
Total assets

7(Millions of yen)
As ofDecember 31, 2019310

34,796
38
6,264
7,274

33,499
－
6,093
6,820

639,394
877,472

647,632
952,444

As ofDecember 31, 2018

(Millions of yen)
As ofDecember 31, 2019

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

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

122,364
17,261
6,634
916
1,104
20
19,886
168,186

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

56,401－749
33,712
2,191
23,082
2,907

188,487
34,13824,9082,104
24,876
3,254

Total non-current liabilities
Total liabilities

119,042
296,566

277,767
445,953

Equity:Capital stock
Capital surplus
Retained earnings
Treasury shares
Accumulated other comprehensive income
Equity attributable to owners of parent
Non-controlling interests
Total equity

15,232450,533
182,418(72,651)
4,915
580,448458
580,906

15,232450,526
121,372(85,649)4,517
505,999492
506,491

Total liabilities and equity

877,472

952,4448

(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statements of Income)Net sales
Cost of sales
Gross profit
Selling and general administrative expenses
Impairment losses of goodwill
Other income
Other expenses
Share of income (loss) of entities accounted for using
equity method
Operating income (loss)
Financial revenue
Finance costs
Income (loss) for the year before income taxes
Income tax expense
Net income (loss) for the year

For the year ended
December 31, 2018927,307475,156
452,151
426,195－
2,116
13,385(Millions of yen)
For the year ended
December 31, 2019914,783
473,723
441,060
423,685
61,8594,127
15,076(5)

43

14,682830
745
14,767
4,605
10,162(55,389)
1,145
1,175
(55,419)2,476(57,895)

10,117
45(57,952)56

52.68(322.22)

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

Earnings per share (yen)9(Consolidated Statements of Comprehensive Income)Net income (loss) for the year
Other comprehensive income.
Items that will not be reclassified subsequently toincome or loss:
Remeasurements of defined benefit plans
Share of other comprehensive income of equity
method investees
Net change in financial assets measured at fair value
through other comprehensive income
Subtotal
Items that may be reclassified subsequently to income or
loss:
Foreign currency translation adjustments of foreign
operations
Cash flow hedges

For the year ended
December 31, 2018
10,162(Millions of yen)
For the year ended
December 31, 2019(57,895)(2,889)

5,596

(4)

4

(3,344)621(6,236)

6,221

(12)

－

(716)
(728)
(6,965)

(434)
(434)
5,788

3,197

(52,108)

3,152
45(52,164)
56

Subtotal
Total other comprehensive income (loss) for the year
Total comprehensive income (loss) for the year
Comprehensive income (loss) attributable to:
Owners of parent
Non-controlling interests10(3) Consolidated Statements of Changes in Equity
For the year ended December 31, 2018
(Millions of yen)
Equity attributable to owners of the parent company

Capital stockSharepremium

Retainedearnings

Treasury
Shares

Other
Comprehensive
incomeAccumulated

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

Transactions of sharebased payment

－

67

－

－

－

67

－

67

Reclassification fromaccumulated othercomprehensive income toretained earnings－－(2,843)

－

2,843

－

－

－

Reclassification fromaccumulated othercomprehensive income tonon-financial assets

－

－

－

－

(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

580,906

Balance as of January 1, 2018
Comprehensive income forthe year
Net income (loss) for theyear
Other comprehensive
income (loss)
Total comprehensive income(loss) for the year
Transactions with owners,
etc.

Total transactions withowners etc.
Balance as of December 31,
2018

11

Noncontrollinginterests

Total

Total

For the year ended December 31, 2019
(Millions of yen)
Equity attributable to owners of the parent company
Noncontrollinginterests

Capital stockSharepremium

Retainedearnings

15,232450,533

182,418(72,651)

4,915

580,448458

580,906

－

－

(338)

－

－

(338)

－

(338)

15,232450,533

182,080(72,651)

4,915

580,110458

580,568－－(57,952)－－(57,952)

56(57,895)

－

－

－

－

5,788

5,788

－

5,788

－

－

(57,952)－

5,788(52,164)56(52,108)

Dividends of surplus－－(9,071)－－(9,071)(22)(9,093)Purchase of treasury stock

－

(64)

－

(13,002)－(13,066)－(13,066)

Disposal of treasury stock

－

(1)

－

3

－

3

－

3

Transactions of sharebased payment

－

57

－

－

－

57

－

57

Reclassification fromaccumulated othercomprehensive income toretained earnings

－

－

6,315

－

(6,315)

－

－

－

－

－

－

－

129

129

－

129

－

(7)

(2,756)(12,999)(6,186)(21,947)(22)(21,970)

15,232450,526

121,372(85,649)4,517

505,999492

506,491

Balance as of January 1, 2019
(Before restatement)
Adjustments resulting fromthe adoption of IFRS 16
Balance as of January 1, 2019
(After restatement)
Comprehensive income forthe year
Net income (loss) for theyear
Other comprehensive
income (loss)
Total comprehensive income(loss) for the year
Transactions with owners,
etc.

Reclassification fromaccumulated othercomprehensive income tonon-financial assets
Total transactions withowners, etc.
Balance as of December 31,
2019

TreasurysharesOther
comprehensive
incomeaccumulated

12

Total

Total

(4) Consolidated Statements of Cash Flows(Millions of yen)
For the year ended
December 31, 2018

For the year ended
December 31, 2019

Cash flows from operating activities
Income (loss) for the year before income taxes
Adjustments for:
Depreciation and amortization
Impairment loss
Change in allowance for doubtful accounts
Interest and dividends income
Interest expenses
Share of loss (income) of entities accounted for using
equity method
Gain on sale of property, plant and equipment
Loss on disposal and sale of property, 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 liabilities
Increase (decrease) in other liabilities
Others

14,767(55,419)

47,531
202
255
(516)
612

56,95162,870
(515)
(509)
1,175

5

(43)

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

SubtotalInterest received
Dividends received
Interest paid
Income taxes paid
Income taxes refund

65,5793
487(548)(14,553)275(2,183)2,513(6,149)(5,339)
(266)
6,259
(213)
(3,543)(451)
55,1381508(1,018)(13,675)
1,675

Net cash provided by operating activities

51,244

42,629(49,752)(78,213)

658

7,621

(137)
273

(58)
2,255

406

－

(75)
(48,628)

88

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 other financial assets
Proceeds from sale of other financial assets
Proceeds from sales of shares of subsidiaries resulting inchange in scope of consolidation
OthersNet cash used in investing activities

13(68,308)

For the year ended
December 31, 2018
Cash flows from financing activities
Increase (decrease) in short-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of bonds
Bond redemption
Dividends paid
Dividends paid to non-controlling interests
Proceeds from disposal of treasury stock
Purchases of treasury stock
Repayments of lease liabilities
OthersFor the year ended
December 31, 201924,000(1,817)－－(9,173)(21)
4(67,998)－(830)(55,835)(24,000)(1,686)
149,441(20,000)(9,071)(22)
3(13,095)(7,576)－73,994

Net cash provided by (used in) financing activities
Net foreign exchange differences on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year

(12)

－

(53,231)
118,742

48,31565,510Cash and cash equivalents at the end of the year

65,510113,825

14

(5) Notes to Consolidated Financial Statements(Notes Relating to Going Concern Assumption)
Not applicable.
(Changes in Accounting Policies)
The Group adopted the new accounting standards and interpretations, which became mandatory in the year ended
December31, 2019. Significant accounting standards and interpretations are as follows:
Establishment or revision of accounting
standards and interpretations

Summary of requirements

IFRS 16 Leases(published January 2016)

New standard for leases, replacing IAS 17, requires all leases to be shown on thestatements of financial position as if they were financed purchases. The newstandard sets out the principles for the recognition, measurement, presentationand disclosures of leases.

The impact of the application of IFRS 16 is as follows. There is no significant impact of this change in accounting policy onearnings per share. The Group retrospectively applied IFRS 16 according to transitional measures, the cumulative effect of thecommencement of application is recognized as an adjustment to the opening balance of retained earnings in the current
consolidated fiscal year. In the transition to IFRS 16, the practical expedient of IFRS 16.C3 was selected as to whether anarrangement contains a lease or not, it takes over the judgment of IAS 17 “Leases” and IFRIC 4 “Determining whether an
Arrangement contains a Lease”.
IFRS 16 requires that lessee's lease not be classified as finance lease or operating lease, but rather as a single accounting
model and, in principle, recognize the right-of-use asset representing the right to use the underlying asset and the lease liability
representing the obligation to pay the lease payments for all leases. However, for short-term leases or leases for which theunderlying asset is of low value, the Group may elect not to apply the requirements of this standard. After recognizing rightof-use asset and lease liability, right-of-use asset depreciation and interest expense related to lease liability are recognized.
In the Group, the lease term of the right-of-use assets is estimated by adding a reasonably reliable period in which theoption to extend the lease is not exercised or the option to cancel the lease is not exercised. In addition, the discount rateapplied to the lease liabilities for the right-of-use assets uses the lessee's incremental borrowing rate, and the weighted average
is mainly 1.0%. Right-of-use assets are depreciated using the straight-line method mainly over 15 years from the start date.
As of the end of the previous consolidated fiscal year, finance lease liabilities that were recognized by applying IAS 17 were
901 million yen.
Of 7,644 million yen (before discount) of the operating lease contracts disclosed by applying this standard, 549 million yen(before discount) is accounted for as a small-value asset lease, in addition, there is a 37,409 million yen increase in leaseliabilities over a period in which it is reasonably certain that the extension option will be exercised.
As a result, in the consolidated statement of financial position at the beginning of the current consolidated fiscal year underreview, right-of-use assets increased by 44,034 million yen, deferred tax assets increased by 15,200 million yen, lease liabilities
increased by 44,505 million yen, deferred tax liabilities increased by 15,028 million yen and long-term accounts payable
increased by 40 million yen, retained earnings decreased by 338 million yen. Deferred tax assets and Deferred tax liabilities
are offset on the consolidated balance sheets based on IAS 12 “Income taxes”.
In addition, cash flow from operating activities increased by 7,000 million yen and cash flows from financing activities
decreased by 7,000 million yen in condensed quarterly consolidated cash flows for the year.

15

(Segment Information, etc.)(1) Reportable segments
Operating segments are defined as the components of the Group for which separate financial information is available thatis 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.
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.
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).

16

Information about reportable segments is as follows:
For the year ended December 31, 2018

Sales revenue to external customers
Intersegment sales revenue
Total sales revenue
Segment income (loss)
Adjustments
Financial revenue
Finance costs
Income (loss) before tax
Other items
Depreciation and amortization
Impairment loss
Equity-method loss

Reportable segments
Healthcare &Beverage
SkincareBusiness
Business
899,863
27,444－－
899,863
27,444
8,864
5,818(Millions of yen)
Reportablesegments
Total
927,307－927,307
14,682Adjustment
－
－
－
－

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

47,149
202
(5)

381
－
－

47,531
202
(5)

－
－
－

47,531202(5)

For the year ended December 31, 2019

Sales revenue to external customer
Intersegment sales revenue
Sales revenue
Segment income (loss)
Adjustments
Financial revenue
Finance costs
Income (loss) before tax
Other items
Depreciation and amortization
Impairment losses of goodwill
Impairment loss
Equity-method gains

Reportable segments
Healthcare &Beverage
SkincareBusiness
Business
890,009
24,774－－890,009
24,774
3,515(58,904)(Millions of yen)
Reportablesegments
Total
914,783－
914,783(55,389)

Adjustment
－
－
－
－

Total
914,783－
914,783(55,389)
1,145
1,175
(55,419)

56,40861,859
1,011
43

543
－
－
－

56,951
61,859
1,011
43

－
－
－
－

56,951
61,8591,01143(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 forthe majority of sales 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
statement of 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.

17(Per share information)
The calculation of basic earnings per share is based on the net income for the year attributable to owners of the Company andthe weighted-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, 2018
Net income (loss) for the year attributable to ownerof parent (million yen)
Weighted-average shares of ordinary shareoutstanding (in thousands)
Earnings (loss) per share (yen):(Significant Subsequent Events)
Not applicable18

For the year ended
December 31, 201910,117(57,952)

192,051

179,85252.68(322.22)

4. Others(1) Changes in Key Consolidated Management Indicators
Japanese Standard

Net revenues / Net sales
Net revenues growth rate /Net sales growth rate
Operating income
Operating margin
Recurring income
Recurring income margin
Income before income taxes
and minority interests / Income
for the year before income tax
Ratio of income before income
taxes to sales / Ratio of income
for the year before income tax
to net sales
Net income attributable toowners of the company(millionyen)(%)(millionyen)(%)(millionyen)(%)(millionyen)(%)(million
yen)

IFRS

FY2015FY2016FY2017FY2017FY2018FY2019440,476

460,455

872,623

837,069

927,307914,783

3.8

4.5

89.5

－

10.8

(1.4)

14,262

21,14340,57937,594

14,682(55,389)

3.2

4.6

4.7

4.5

1.6

(6.1)

13,723

20,60239,859

－

－

－

3.1

4.5

4.6

－

－

－

15,22812,707

39,24037,914

14,767(55,419)

3.5

2.8

4.5

4.5

1.6

(6.1)

9,970

5,245

25,244

21,967

10,117(57,952)

2.3

1.1

2.9

2.6

1.1

(6.3)

11,217

5,022

31,97630,065

3,197(52,108)

Net income attributable toowners of the company/Net
revenues attributable to owners(%)

of the company
Comprehensive income / Total(millioncomprehensive income

yen)Earnings per share

(yen)

91.35

48.05

144.26125.5352.68(322.22)

Diluted earnings per share

(yen)

－

－

－

－

－

－

ROE

(%)

3.9

2.0

5.7

4.6

1.6

(10.7)

ROA

(%)

3.8

5.5

6.3

5.6

1.6

(6.1)

378,105

377,468

883,918

929,304

877,472

952,444

260,878

261,173

627,485

655,038

580,906

506,491

(%)

68.9

69.1

70.9

70.4

66.2

53.1

(yen)

2,386.81

2,389.28

3,070.01

3,204.90

3,163.63

2,821.27(times)

26.9

71.7

28.5

32.8

62.4

(8.7)

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.

19

(2) Officer Change
Following transfer of an officer is decided internally in the Board Meeting held today.
1. New Director Candidates (as of March 26, 2020)(1) Directors (excluding Directors serving on the Audit & Supervisory Committee)
Name
Hirokazu Yamura

New

Current
Representative Director & President,
Michinoku Coca-Cola Bottling Co., Ltd.

Director (Outside Director)(2) Directors serving on the Audit & Supervisory Committee (as of March 26, 2020)
Name
Enrique Rapetti

New

Current
Latin America Group CFO, The Coca-Cola
Company – USA

Director (Outside Director)

2. Resigning Directors (March 26, 2020)(1) Director (excluding Directors serving on the Audit & Supervisory Committee)
Tamio Yoshimatsu(Director)(2) Director serving on the Audit & Supervisory Committee
Jennifer Mann

(Outside Director)

3. Reference Information (Board structure as of March 26, 2020)(1) Directors (excluding Directors serving on the Audit & Supervisory Committee)
Representative Director Calin Dragan
Representative Director Bjorn Ivar Ulgenes
Director
Hiroshi Yoshioka(Outside Director)

Director
Director(Outside Director)(Outside Director)

Hiroko Wada
Hirokazu Yamura(2) Directors serving on the Audit & Supervisory Committee
Director
Director

Irial Finan
Celso Guiotoko(Outside Director)(Outside Director)

Director
Director

Nami Hamada
Enrique Rapetti(Outside Director)(Outside Director)* The official decision will be made according to the resolutions required during the Ordinary General Meeting of Shareholder for the fiscal year ended
December 31, 2019 to be held on March 26, 2020 and subsequent meetings of Board of Directors and Audit & Supervisory Committee to be held on
the same day.

End of document20