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

Consolidated Financial Summary for
the Second Quarter Ended June 30, 2020 (IFRS)
August 12, 2020
Listed company name: Coca-Cola Bottlers Japan Holdings Inc.
Listed stock exchanges: Tokyo
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: August 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 second quarter 2020 (from January 1, 2020 to June 30, 2020)(1) Consolidated financial results

2nd quarter, 2020
2nd quarter, 2019

(Percentages indicate changes over the same period in the prior fiscal year)
Net loss attributable to Total comprehensive
Net lossowners of the parent
loss

Net sales

Business loss

million yen％
386,679 (10.8)
433,710 (3.2)

million yen％(5,539)4,122 (64.4)

Loss per share

Operating loss
million yen(13,110)(65,457)

million yen(6,462)(64,537)％-

million yen(6,452)(64,565)％-％-

million yen(11,504)(63,537)％-

Diluted earnings per shareyenyen
2nd quarter, 2020
(35.97)
2nd quarter, 2019(358.14)
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
974,323
952,444

Jun. 30, 2020
Dec. 31, 2019

Equity attributable to parent owners

million yen
491,170
506,491

million yen
490,715505,999

Ratio of equity attributable toparent owners
％
50.4
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

-

0.00
-

25.00

25.00

FY ending December 2020
(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: None
The financial forecast for 2020 has been withdrawn and is currently being evaluated given uncertainty around the COVID-19 spread. It is planned to announce
the forecast for 2020 once we have clear visibility on Q3 results.

-

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):2nd Quarter, June 2020:
206,268,593 shares
FY ended December 2019:

206,268,593 shares

2) The number of treasury shares:
2nd Quarter, June 2020:

26,918,523 shares

FY ended December 2019:

26,917,320 shares

3) The number of average shares outstanding:
2nd Quarter, June 2020:
179,350,582 shares
2nd Quarter, June 2019:180,280,315 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 results 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 5 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 ........................................................................................................... 5(3) Qualitative Information on the Future Outlook, such as Forecast of Consolidated Financial Results ............................................. 5
2. Condensed Consolidated Financial Statements and Notes .................................................................................................................... 6(1) Condensed Consolidated Statement of Financial Position ............................................................................................................... 6(2) Condensed Consolidated Statements of Loss and Comprehensive Loss .......................................................................................... 8(3) Condensed Consolidated Statements of Changes in Equity ........................................................................................................... 10(4) Condensed Quarterly Consolidated Statements of Cash Flows ..................................................................................................... 11(5) Notes to Condensed Consolidated Financial Statements ............................................................................................................... 13(Notes Relating to Going Concern Assumption) ............................................................................................................................. 13(Changes in Accounting Policies).................................................................................................................................................... 13(Segment Information) .................................................................................................................................................................... 13

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 year-to-date second-quarter results
for the fiscal year ending on December 31, 2020 (January 1, 2020 to June 30, 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 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 been working withcomprehensive business continuity actions in place to ensure safe and secure product supply.
In the year-to-date second-quarter period, total nonalcoholic ready-to-drink (NARTD) beverage industry volume performance is
expected to decline about 10% versus the prior-year period as customer outlets have closed or reduced operating hours, and foottraffic has declined as consumers refrain from going out in accordance with the government’s emergency declaration to prevent
further spread of COVID-19. The health food and cosmetics industries continue to expand, driven by demand from health-conscious
consumers and new demand driven by new functionality and efficacies, although they too are expected to be impacted by 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 alsofinding opportunities during this turbulent period to accelerate the pace of ongoing transformation projects and to identify newopportunities. This will ensure that we are well-prepared for the evolution of the business environment in the longer term.
Our year-to-date second-quarter results were impacted by a sharp drop in beverage business sales volume since March due to the
COVID-19 situation, and we expect the second quarter (April to June, Q2) will prove to be the one of the most challenging quartersof the year, given the impact of the government’s emergency declaration during the period.
In addition to the business update in this document, please also see our earnings presentation material posted on the Company IR
website (https://en.ccbjholdings.com/ir/library/presentation.php) to be used in our earnings conference call on Thursday, August 13,
2020 at 1:30 pm (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 the Second Quarter・ Q2 reflects impact of emergency declaration and decision to postpone Olympics. Q2 volume down 18% and year-to-datevolume down 11%. Lemon-dou alcohol brand ahead of plan.
・ Targeting appropriate balance of value and volume–slight over-the-counter market share decline as we maintain wholesale
price hike, focus on core business and pivot from Olympics-heavy 2020 plan. Vending market share growth continued despite
COVID-19 drop in market volume.
・ Significant cost savings helping to offset current-year topline pressure. Achieved over 10 billion yen in year-to-date costsavings. Year-to-go cost-saving efforts to continue.
・ Accelerated important vending channel operation transformation project by six months; Completed company-wide
deployment by the end of Q2・ Completed brand-new, world-class Hiroshima plant. Expanded supply network on-plan, with seven new lines installed sincelast year, including four new lines in 2020.
・ Carefully watching peak summer performance to update full-year forecast, amid ongoing COVID-19 uncertainty and extended
rainy season in July. Announced plan to reinstate 25 yen per share year-end dividend.

2Summary of Consolidated Financial Results

Year-to-date Q2 (January to June)
2019

In million JPY

2020

ChangeNet Revenue

433,710386,679(10.8%)

Gross Profit

210,246

179,259(14.7%)

205,202

183,899(10.4%)

Other income (Recurring)

560

385

(31.3%)

Other expenses (Recurring)

1,457

1,054

(27.6%)

(24)

(230)

-

4,122

(5,539)-Impairment losses of goodwill

61,859-(100.0%)

Other income (Non-recurring)

1,240

0

(100.0%)

Other expenses (Non-recurring)

8,960

7,571

(15.5%)

Operating Loss

(65,457)(13,110)-

Net Loss Attributable to Owners of Parent(64,565)(6,452)

-

237

212

(11%)

Selling, General & Administrative Expenses

Investment loss on equity method
Business Income (Loss)

Sales volume of beverage business (million cases)

Q2 (April to June)
2019

In million JPY

2020

ChangeNet Revenue

234,978

187,964(20.0%)

Gross Profit

115,644

85,841(25.8%)

107,062

84,253(21.3%)

Other income (Recurring)

267

157

(41.0%)

Other expenses (Recurring)

657

580

(11.8%)

Investment loss on equity method

(10)

(170)

-

8,182

995

(87.8%)

Impairment losses of goodwill

61,859-(100.0%)

Other income (Non-recurring)

1,240

-

(100.0%)

Other expenses (Non-recurring)

195

6,223

3,086.5%

Operating Loss

(52,633)(5,228)-Net Loss Attributable to Owners of Parent(56,563)(761)-

Selling, General & Administrative Expenses

Business Income

Sales volume of beverage business (million cases)
127
104
(18%)
Note: “Business Income (loss)” is a measure of our underlying or recurring business performance. Business Income (loss) deducts cost of goods andselling, general and administrative expenses from revenue, and includes other income and expenses which we believe are recurring in nature.

Year-to-date second-quarter net revenue was 386,679 million yen, a decrease of 47,031 million yen or 10.8%, in comparison to
the prior-year period. Net revenue of the beverage business declined 46,806 million yen or 11.1% to 374,598 million yen, due
to the volume decline since March, driven by the spread of COVID-19 and the government’s emergency declaration. Net
revenue of the healthcare & skincare business was less impacted by the COVID-19 situation, and declined by 225 million yen(down by 1.8%) year-on-year to 12,081 million yen, driven by new-product launches and expansion into new sales channels
following a comprehensive renewal of the core product lineup and corporate logo in October 2019.

3

Year-to-date second-quarter Business Income, an indicator of our recurring business performance, was a loss of 5,539 million
yen (4,122 million yen Business Income in the prior year period). Business income for the beverage business was a loss of 7,368
million yen (2,523 million yen Business Income in the prior year period). This reflects a gross profit decline driven in large partby channel mix as the vending and convenience store channels were impacted by a decline in consumer traffic during the
COVID-19 emergency declaration period, partially offset by significant efforts to drive cost reductions across labor, promotion
and back-office expenses. Business income in the healthcare & skincare business was 1,829 million yen, an increase of 229
million yen or 14.3% from the prior year period driven by a strong focus on cost reduction and controlling sales promotion
expenses.
Year-to-date consolidated operating loss improved from the prior year to 13,110 million yen (65,457 million yen loss in theprior period) mainly by cycling a 61,859 million yen impairment loss on Goodwill in the prior-year second quarter. As areference, other expenses (non-recurring) in year-to-date second-quarter 2019 results include 8,706 million yen of special
retirement allowance and others due to the introduction of a voluntary employee retirement program. Other expenses (nonrecurring) during the 2020 period include 2,841 million yen of temporary paid leave expenses in the second quarter, 1,908
million yen of transformation-related expenses and special retirement allowances of 1,424 million yen.

We anticipate thetemporary paid leave expenses will be partially offset by government subsidies that we expect to receive in the third quarter.
Net loss attributable to owners of parent for the year-to-date second quarter was 6,452 million yen (64,565 million yen loss inthe prior period) led by improvement of the operating loss.

Beverage volume performanceYear-to-date volume performance through February was positive versus the prior year, reflecting a solid start to our new strategic
business plan period, and including the contribution of the Lemon-dou alcohol brand launched nationwide in October 2019.
However, year-to-date second-quarter volume declined 11% due to a sharp decline starting in March triggered bycountermeasures to prevent the spread of COVID-19. Second-quarter volume declined 18%, impacted by the government’s
emergency declaration, with April and May volume down over 20%, respectively, during the peak period of the state of
emergency.
Our year-to-date nonalcoholic ready-to-drink beverage volume declined 12% and second-quarter volume declined 20%. Volume
declines were led by the retail & food and vending channels as a result of school closures, increased working from home,
restricted operations of restaurants and eating outlets and people refraining from going out, in line with the government’s
recommended COVID-19 emergency countermeasures. The vending channel started the year with positive momentum throughFebruary, but as sales volume declined sharply in train stations, schools, leisure venues and offices starting in March, year-todate vending channel volume declined 15%. Retail & food channel sales volume declined 32% year-to-date driven primarily bya sharp decline in food channel volume as people stopped dining out. Convenience store channel volume declined 9% year-todate mainly driven by a decline of water volume, partially offset by relatively stable volume performance in sparkling beverages,
including trademark Coca-Cola. Drug & Discounter (D&D) channel volume has grown since February, and year-to-date volume
grew 7% led by increased shopper traffic, demand for home consumption and stocking-up at home. Supermarket volume
decreased 1% as consumers adjusted the frequency of shopping trips and the composition of their shopping basket purchases.
NARTD volume performance by category is primarily impacted by the COVID-19 situation. Sparkling beverages declined 9%
year to date, driven by the strong decline in the retail & food channel, offsetting growth from the newly-launched Fanta Premiere
Grape and growth in the supermarket and D&D channels. Year-to-date non-sugar tea (NST) volume decreased 10% despite thecontribution of newly-launched Ayataka Koiryokucha. Coffee volume declined 8%, as growth in PET bottled coffee brands,
including Georgia Japan Craftsman and the newly-launched Georgia Latte Nista, was offset by a decline in can and bottle canproducts. The sports drink category declined 19% year to date as a result of a decline in the overall category, with weakerperformance in large PET packaging. Water volume declined 10%, as immediate consumption small package volume declines
offset growth in large PET volume in supermarket and D&D channels driven by increased demand for at-home consumption
and pantry-loading.
The ready-to-drink alcohol brand, Lemon-dou continues to perform well since expanding nationwide in October 2019, and sold
4.22 million cases year to date. We will consider enhancing our supply capacity for the Lemon-dou brand based on the results
to the date and the future sales outlook.

4(2) Qualitative Information on Consolidated Financial Position
Assets at the end of this quarter were 974,323 million yen, an increase of 21,879 million yen from the end of the prior year. Thisis mainly due to an increase of Cash and cash equivalents, increase of Inventories to ensure stable supply toward peak season
and higher Property, plant and equipment as a result of the strategic capital investments we have been making to increase supply
capacity and space to sell and increase of Differed tax assets.
Liabilities at the end of the quarter were 483,154 million yen, an increase of 37,201 million yen from the end of the prior year.
This is mainly due to an increase of Bonds and Debts as we accessed 50 billion yen in short-term borrowing from banks in April
2020 to ensure sufficient liquidity and access to cash as a backstop during this period of high uncertainty.
Net Assets at the end of the quarter were 491,170 million yen, a decrease of 15,321million 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.

Cash flows for the year-to-date period are as follows:
Net cash generated from operations was 11,274 million yen (9,141 million net cash used for operations in the prior year period).
This results from the 13,245 million yen net loss before tax, increase of inventories and other assets, decrease of other liabilities,
and payment of income taxes offset by depreciation and amortization, decrease of trade and other receivables and income taxes
refund.
Net cash used for investment activities was 47,697 million yen (38,820 million yen in the prior year period) due to purchases of
fixed assets as we recover our supply network and progressively expand production capacity.
Net cash generated from financing activities was 41,203 million yen (27,680 million yen in the prior year period), driven by anincrease of short-term loans for operating capital, partially offset by cash spent for payment of year-end dividends, lease liabilities.
As a result of these activities, cash and cash equivalents at the end of second quarter was 118,605 million yen, an increase of
73,375 million yen in comparison to the end of second quarter in the prior year.
(3) Qualitative Information on the Future Outlook, such as Forecast of Consolidated Financial Results
We plan to announce updated full-year 2020 forecast once we have clear visibility on COVID-19 developments and third-quarter(July to September) results, as our full-year results rely heavily on the peak summer season in the third quarter.
Also, through the evaluation on cash allocation priorities and cash flow projections, the Company decided to pay 25 yen per
share year-end dividend for this year. For details, please refer to the “Revision of Dividend Forecast” separately announced
today.

5

2. Condensed Consolidated Financial Statements and Notes(1) Condensed Consolidated Statement of Financial Position(Millions of yen)
As ofJune 30, 2020

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

113,825

118,605

Trade and other receivables

98,52893,026Inventories

74,12078,032752

620

Other financial assets
Other current assets

17,587

23,374

Total current assets

304,812313,657

Property, plant and equipment

467,136

477,600

Right-of-use assets

39,62937,396

Goodwill

27,021

27,021Intangible assets

67,123

66,891

Non-current assets:

Investments accounted for using the equity method

310

293

Other financial assets

33,49927,832

Deferred tax assets

6,093

14,897

Other non-current assets

6,820

8,736

Total non-current assets

647,632

660,666

952,444974,323

Total assets

6

(Millions of yen)
As ofJune 30, 2020

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

122,364

113,413

Bonds and debts

17,261

67,094

Lease liabilities

6,634

6,548

Other financial liabilities

916

2,206

Income taxes payable

1,104

1,974

20

20

Other current liabilities

19,886

14,660Total current liabilities

168,186

205,915

Bonds and debts

188,487

187,986

Lease liabilities

34,13832,235

Provisions

Non-current liabilities:

Other non-current liabilities-

133

Net defined benefit liabilities

24,90826,433

Provisions

2,104

2,150

Deferred tax liabilities

24,876

24,849Other non-current liabilities

3,254

3,452

Total non-current liabilities

277,767

277,238

445,953

483,154

Capital stock

15,232

15,232

Capital surplus

450,526

450,689

Retained earnings

121,372

110,658

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

4,517

(212)

505,999

490,715

Total liabilities
Equity:Accumulated other comprehensive income (loss)
Equity attributable to owners of parent
Non-controlling interests
Total equity
Total liabilities and equity

7

492

454

506,491

491,170

952,444974,323

(2) Condensed Consolidated Statements of Loss and Comprehensive Loss
(Consolidated Statements of Loss)
Six months ended
June 30, 2019433,710(Millions of yen)Six months ended
June 30, 2020
386,679

Cost of sales

223,465

207,420Gross profit

210,246

179,259

Selling and general administrative expenses

205,202

183,899

Impairment losses of goodwill

61,859-Other income

1,800

385

Other expenses

10,417

8,626

Net sales

(24)

(230)

Operating loss

(65,457)(13,110)

Financial revenue

501

405

Finance costs

557

540

(65,513)(13,245)

Share of loss of entities accounted for using equity method

Loss for the period before income tax benefit
Income tax benefit
Net loss for the period(976)(6,783)(64,537)(6,462)(64,565)(6,452)28(10)(358.14)(35.97)Net loss for the period attributable to
Owners of parent
Non-controlling interests

Loss per share (yen)8(Condensed Consolidated Statements of Comprehensive loss)
Six months ended
June 30, 2019(64,537)

Net loss for the period(Millions of yen)Six months ended
June 30, 2020
(6,462)Other comprehensive income (loss):
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 loss
Subtotal

1,785

-

(408)

(3,377)

1,377(3,377)(377)(1,665)(377)(1,665)

Items that may be reclassified subsequently to loss:
Cash flow hedges
Subtotal
Total other comprehensive income (loss) for the period
Total comprehensive loss for the period

1,000(5,042)(63,537)(11,504)(63,566)(11,494)28(10)Comprehensive loss attributable to:
Owners of parent
Non-controlling interests9(3) Condensed Consolidated Statements of Changes in Equity(Millions of yen)
Equity attributable to owners of the parent company
Capital stockSharepremium

Retainedearnings

Accumulated othercomprehensive
incomeTreasury
Shares

Noncontrollinginterests

Total

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--(64,565)--(64,565)28(64,537)

-

-

-

-

1,000

1,000

-

1,000

-

-

(64,565)-

1,000(63,566)

28(63,537)

-

(64)
(0)

(4,587)-(12,995)
1-(4,587)(13,059)1(22)-(4,609)(13,059)
1-(2)

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

-

(2)

-

-

-

(2)

Reclassification fromaccumulated other comprehensive
income (loss) to retained earnings

-

-

2,355

-

(2,355)---

Reclassification fromaccumulated other comprehensive
income to non-financial assets

-

-

-

-

189

189

-

189

-

(66)

(2,232)(12,994)(2,166)(17,458)(22)(17,480)

15,232450,467

115,283(85,644)3,749

499,087464

499,551

Total transactions with owners.
Balance as of June 30, 2019

(Millions of yen)
Equity attributable to owners of the parent company

Capital stock
Balance as of January 1, 2020

15,232Sharepremium

Retainedearnings

450,526

Accumulated othercomprehensive
income (loss)(85,649)
4,517

Treasury shares

121,372

Non-controllinginterests

Total

Total

505,999492

506,491

Comprehensive loss for the period
Net income (loss) for the period
Other comprehensive loss
Total comprehensive income (loss)
for the period
Transactions with owners-(6,452)--(5,042)(6,452)(5,042)(10)-(6,462)(5,042)-(6,452)-(5,042)(11,494)(10)(11,504)

Dividends of surplus-(4,484)--(4,484)(28)(4,512)

Purchase of treasury stock

-

-

(4)

-

(4)

-

(4)

Disposal of treasury stock

-

(1)

-

2

-

1

-

1

Transactions of share-based
payment

-

163

-

-

-

163

-

163

-

Reclassification from accumulated
other comprehensive income (loss)
to retained earnings

-

221

-

(221)

-

-

Reclassification from accumulated
other comprehensive income tonon-financial assets

-

-

-

534

534

-

534

(4,263)
110,658(3)(85,652)

313
(212)

(3,790)490,715(28)
454(3,818)491,170

Total transactions with owners
Balance as of June 30, 2020

15,232

163
450,68910

(4) Condensed Quarterly Consolidated Statements of Cash Flows(Millions of yen)Six months ended
June 30, 2019

Six months ended
June 30, 2020

Cash flows from operating activities
Loss for the period before income tax benefit
Adjustments for:
Depreciation and amortization
Impairment loss

(65,513)(13,245)

28,11429,387

62,10985

Change in allowance for doubtful accounts

(471)

(67)

Interest and dividends income

(308)

(288)

Interest expenses
Share of loss of entities accounted for using equity
methodGain on sale of property, plant and equipment
Loss on disposal and sale of property, plant andequipment(Increase) decrease in trade and other receivables

557

540

24

230

(1,259)

(4)

1,014

760

(9,355)

5,524

Increase in inventories(15,656)(3,912)

Increase in other assets(2,715)(9,821)

Increase in trade and other payables

10,8602,899(Decrease) increase in net defined benefit liabilities(2,148)

1,525

Decrease in other liabilities(7,389)(5,404)436

202(1,702)

8,413

OthersSubtotalInterest received

00Dividends received

308

287

Interest paid
Income taxes paid

(527)

(471)

(8,882)(4,651)

Income taxes refund

1,662

7,696

Net cash (used in) provided by operating activities(9,141)

11,274(42,892)(48,261)

Cash flows from investing activities
Acquisitions of property, plant and equipment andintangible assets
Proceeds from sales of property, plant and equipment
and intangible assets
Purchases of other financial assets
Proceeds from sale of other financial assets
Other
Net cash used in investing activities

11

2,346

97

(27)

(26)

1,683

542

71

(48)

(38,820)(47,697)(Millions of yen)Six months ended
June 30, 2019
Cash flows from financing activities
Increase in short-term loans payable

Six months ended
June 30, 2020

50,000

Repayments of long-term loans payable

50,.000

(943)

(724)

(4,587)(4,484)

Dividends paid to non-controlling interests

(22)

(28)

Proceeds from disposal of treasury stock

1

1

Dividends paid

Purchases of treasury stock(13,088)(4)

Repayments of lease liabilities(3,681)(3,558)Net cash provided by financing activities

27,68041,203

Net change in cash and cash equivalents(20,281)

4,780

Cash and cash equivalents at the beginning of the year

65,510113,825

Cash and cash equivalents at the end of the year

45,230118,60512

(5) 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 Company for which separate financial information is available that isevaluated regularly by the Board of Directors, chief operating decision-maker, in making resource allocation decisions and inassessing performance. The Company has identified the following operating segments. No operating segments have been
aggregated to form reportable segments. 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, as well as
the 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:
Impairment loss of 61,859 million yen was recorded in the Beverage Business during the first six-month period of the prior year.
Second quarter of the prior year (January 1, 2019 – June 30, 2019)(Millions of yen)

Reportable segments
Healthcare &SkincareBusiness

Beverage
Business
Sales revenue to external customers

421,404

Intersegment sales accumulation

Reportablesegments
Total

12,306

Adjustment

433,710-

Total
433,710

-

-

-

-

-

Total sales revenue

421,404

12,306433,710-433,710Segment profit (loss)(67,057)

1,600(65,457)-(65,457)

Adjustments
Financial revenue

501

Finance costs

557

Loss before income tax benefit(65,513)

Second quarter of the current year (January 1, 2020 – June 30, 2020)
Reportable segments
Beverage
Business
Sales revenue to external customer
Intersegment sales revenue(Millions of yen)

Healthcare &SkincareBusiness

Reportablesegments
Total

Adjustment

12,081

386,679-

374,598

Total
386,679

-

-

-

-

-

Sales revenue

374,598

12,081

386,679-

386,679

Segment income (loss)(14,937)

1,827(13,110)-(13,110)Adjustments
Financial revenue

405

Finance costs

540

Loss before income tax benefit(13,245)13