This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2020 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Quarterly Report（Report Pursuant to Article 24, Paragraph 1 of the Financial Instruments
and Exchange Act）
Fiscal Year
From April 1, 2020
（The 2nd Quarter of the 63rd Term）
To June 30, 2020

Coca-Cola Bottlers Japan Holdings Inc.

（E00417)

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2020 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Table of Contents[Cover Page]
Part I Corporate information ..................................................................................................................................................................... 1
Section 1. Corporate overview .............................................................................................................................................................. 1
1. Summary of business results ......................................................................................................................................................... 1
2. Business content ............................................................................................................................................................................ 1
Section 2. Business situations................................................................................................................................................................ 2
1. Risk of business ............................................................................................................................................................................. 2
2. Management's analysis of financial condition, results of operations and cash flows ..................................................................... 2
3. Significant management contracts ................................................................................................................................................. 7
Section 3. Status of the filing company ................................................................................................................................................. 8
1. Status of Shares ............................................................................................................................................................................. 8
2. Status of Officers ......................................................................................................................................................................... 10
Section 4 Accounting status................................................................................................................................................................. 11
1. Condensed Quarterly Consolidated Financial Statements and Notes .......................................................................................... 12
2. Others .......................................................................................................................................................................................... 32
Part II Information of guarantor companies of the filing company ......................................................................................................... 33

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2020 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

【Cover Page】[Documents to be submitted]

Quarterly Report[Underlying article]

Article 24, Paragraph 1 of the Financial Instruments andExchange Act[Recipient]

Director-General of the Kanto Local Finance Bureau[Submission date]August 13, 2020

[Fiscal year]

63rd fiscal term (from April 1, 2020 to June 30, 2020)[Company name]Coca-Cola Bottlers Japan Holdings Inc.

[Name and position of representative]

Calin Dragan, Representative Director & President[Address of head office]9-7-1 Akasaka, Minato-ku, Tokyo(From March 26, 2020, the location of the head office has been changed to the abovefrom 9-66 Hakozaki, Higashi-ku, Fukuoka City.)[Telephone number](03)-6896-1707[Name of administrative contact]

Cordula Thomas, Head of Controllers Senior Group Division, Finance[Closest contact point]

9-7-1 Akasaka, Minato-ku, Tokyo[Telephone number](03)-6896-1707[Name of administrative contact]

Cordula Thomas, Head of Controllers Senior Group Division, Finance[Location provided for viewing]

Tokyo Stock Exchange, Inc.
（2-1 Nihonbashi Kabutocho, Chuo Ward, Tokyo）

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) filed with the Director-General of the Kanto
Local Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments andExchange Act of Japan. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki
Hokokusho shall prevail.
For the purpose of this Quarterly Report, unless context indicates otherwise, the “Company”, “we”, and “CCBJH” refer to Coca-Cola
Bottlers Japan Holdings Inc., and the “Group” refers to the Company and its subsidiaries.

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2020 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Part I Corporate information
Section 1. Corporate overview
1. Summary of business results
Issuance

The 62nd Term
Consolidated Cumulative
Second Quarter

The 63rd Term
Consolidated Cumulative
Second Quarter

The 62nd Term

Accounting period

From
January 1, 2019
toJune 30, 2019

From
January 1, 2020
toJune 30, 2020

From
January 1, 2019
toDecember 31, 2019

Net sales[Current Second quarter](Millions of yen)

433,710[234,978]386,679[(187,964)]

914,783

Loss for the period before tax benefits(Millions of yen)

(65,513)(13,245)(55,419)(64,565)[(56,563)](6,452)[(761)](57,952)(63,566)(11,494)(52,164)

loss for the period attributable to Owners ofparent(Millions of yen)[Current Second quarter]
Comprehensive loss attributable to owners(Millions of yen)of the parent
Equity attributable to owners of the parent(Millions of yen)

499,087

490,715505,999

Total assets(Millions of yen)883,777

974,323

952,444

Loss per share[Current Second quarter](Yen)(358.14)[(315.37)](35.97)[(4.24)](322.22)

Diluted loss per share

(Yen)

－

－

－

Ratio of equity attributable to owners of theparent to total assets

(%)

56.5

50.4

53.1

Cash flows from operating activities(Millions of yen)

(9,141)

11,274

42,629Cash flows from investing activities(Millions of yen)

(38,820)(47,697)(68,308)

Cash flows from financing activities(Millions of yen)

27,68041,20373,994

Cash and cash equivalents at the end of the(Millions of yen)year

45,230118,605

113,825

Notes:
1. Because the Company prepares quarterly consolidated financial statements, the summary of standalone business results for the Company is notdescribed.
2. Consumption tax is not included in net revenues.
3. Diluted net loss per share is not presented, since there is no dilutive stock.
4. The consolidated financial statements are disclosed in accordance with International Financial Reporting Standards ("IFRS") as issued by theInternational Accounting Standards Board.
5. Figures are rounded to the nearest million yen.

2. Business content
There were no significant changes in the businesses that the Group (the Company and its affiliates) is engaged in during thesecond quarter of FY 2020－1－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2020 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Section 2. Business situations
1. Risk of business
During the current second quarterly consolidated accounting period (from April 1 to June 30, 2020, hereinafter referred to as the"current second quarter”), sales of the beverage business has been declining due to the self-restraint of going outside, operating
restaurant business and holding large-scale events as measures to prevent the spread of new coronavirus (COVID-19) infection.
Also, the increasing cost of measures to prevent the new coronavirus (COVID-19) infection is expected to have an impact on theearnings.
Under such circumstances, we are responding to changes in the environment by increasing the speed of business transformation
through further drive of cost savings with measures including transition of working arrangements to work from home, mainly inback office.
There is no material change to other business risks that are provided in the securities report of the prior fiscal year.

2. Management's analysis of financial condition, results of operations and cash flows
Note that matters related to future developments that are mentioned in this section are judgments of the Group that were madeas of the date of quarterly securities report submission.
(1) Qualitative Information on Consolidated Financial Results
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 performanceis 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 announcedin August 2019 that “business as usual is not an option”. We are implementing initiatives to return the business to a sustainablegrowth trajectory, including transformation in the important vending channel and back-office routines to drive cost efficiencies,
and increasing 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 tothe COVID-19 situation, and we expect the second quarter (April to June, Q2) will prove to be the one of the most challenging
quarters of the year, given the impact of the government’s emergency declaration during the period.

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.
－2－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2020 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

・ 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.
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 and selling,
general and administrative expenses from revenue, and includes other income and expenses which we believe are recurring in nature－3－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2020 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

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.

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
in the prior period) led by improvement of the operating loss.
(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.
This is mainly due to an increase of Cash and cash equivalents, increase of Inventories to ensure stable supply toward peakseason 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.

－4－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2020 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(3) Cash flows
The cash flow conditions for the second quarter of the current year are as follows.
<Cash Flows from Operations>
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 ofother liabilities, and payment of income taxes offset by depreciation and amortization, decrease of trade and other receivables
and income taxes refund.
<Cash Flows from Investment Activities>
Net cash used for investment activities was 47,697 million yen (38,820 million yen in the prior year period) due to purchasesof fixed assets as we recover our supply network and progressively expand production capacity.
<Cash Flows from Financing Activities>
Net cash generated from financing activities was 41,203 million yen (27,680 million yen in the prior year period), driven by
an increase of short-term loans for operating capital, partially offset by cash spent for payment of year-end dividends, leaseliabilities.
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.
(4) Business and financial challenges to be addressed
1. Issues to be addressed
There are no material changes regarding the issues that the Group needs to address during the consolidated cumulative
second quarter of the current year.
2. Basic Policies on the Control of the Joint-stock Company
a. Descriptions of basic policies
The Company believes that the persons and/or entities (hereinafter referred as “Persons”) who control decisions on the
Company’s financial and business policies need to understand the source of the Company’s corporate value and will make itpossible to continually and persistently ensure and enhance the Company’s corporate value and, in turn, the common interestsof its shareholders. The Company believes that a decision on any proposed acquisition that would involve a change of corporate
control of the Company should ultimately be made based on the intent of its shareholders as a whole. Also, the Company
would not reject a large-scale acquisition of the shares in the Company if it would contribute to the corporate value of theCompany and, in turn, the common interests of its shareholders.
However, there are some forms of large-scale acquisition of shares that benefit neither the corporate value of the target
company nor the common interests of its shareholders: those with a purpose that would obviously harm the corporate value ofthe target company and, in turn, the common interests of its shareholders; those with the potential to substantially coerce
shareholders into selling their shares; those that do not provide sufficient time or information for the target company’s boardof directors and shareholders to consider the terms of the large-scale acquisition of shares, or for the target company’s boardof directors to present a business plan or an alternative proposal; and those that require the target company to discuss ornegotiate with the acquirer in order to procure more favorable terms for shareholders than those presented by the acquirer.
The Company believes that the Persons who control decisions on the Company’s financial and business policies need to be
Persons who (A) fully understand the importance of (i) providing freshness and refreshment to people around the world andembedding the ”Coca-Cola” brand, which is now a part of our life style, in local communities; (ii) striving aggressively to win
in the market as the customers’ preferred partner with a deep understanding of the Company’s corporate philosophy; (iii)appreciating employees who have a strong sense of responsibility to thoroughly pursue customer satisfaction, and proactively
working on building a workplace environment that can make each and every employee feel rewarded, motivated and proud of
being a member of the Coca-Cola family; and (iv) contributing to local communities and proactively dealing withenvironmental issues with a strong sense of responsibility as a corporate citizen that continues to strive to assist in therealization of an affluent society, (B) preserve relationships of mutual trust with customers, business partners, shareholders－5－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2020 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

and employees and perform to their expectations, and (C) make it possible to continually and persistently ensure and enhance
the Company’s corporate value and, in turn, the common interests of its shareholders from a mid- to long-term perspective.
Therefore, the Company believes that Persons who would make a large-scale acquisition of the shares in the Company in amanner that does not contribute to the corporate value of the Company and, in turn, the common interests of its shareholders
would be inappropriate to become Persons who would control decisions on the Company’s financial and business policies.
b. Initiatives to realize the basic policies(a) Summary of special initiatives that contribute to realizing the basic policies
The Group not only assumes a leading role in transforming the Coca-Cola business in Japan by deploying various joint
initiatives such as product development and test marketing with The Coca-Cola Company and Coca-Cola (Japan) Company,
Limited (100% subsidiary of The Coca-Cola Company) as a strategic partner, but also strives to become a company trusted
by the stakeholders of consumers, customers, shareholders and employees.
Soft drink industry volume growth in Japan is expected to be muted, given the developed nature of the market as a whole,and the business environment surrounding the Company is projected to stay competitive as multiple players compete in themarket.
Under such circumstances, the Group aims at becoming the preferred partner of our customers and consumers in all
drinking occasions by establishing a robust and sustainable operating model, pursuing success in high-priority areas, anddrastically transforming the business to ensure growth.
The Company also made a transition to a company with an Audit and Supervisory Committee in order to further reinforce
the governance system. The Audit and Supervisory Committee serves as the auditing body of the Company that is comprised
exclusively of external directors, including multiple independent external directors. To strengthen the management oversightfunction, these external directors that serve as members of the Audit and Supervisory Committee have each been grantedwith a voting right in the Board of Directors meetings, in addition to the right to state their opinions in shareholders’ meetings
on matters pertaining to the designation of board members and their remuneration, among others. In order to separate thedecision-making, business management and business execution functions, the Company is implementing a corporate
executive officer system. In addition to the foregoing, for more fruitful deliberations of highly important matters in the
Board of Directors meetings, the Company is delegating the authority to make decisions on certain important matters that
require prompt business executions to specific directors as well as facilitating speedy decision making of other matters.
(b) Outline of measures to prevent inappropriate persons from controlling the finance and business policy decisions of theCompany in light of the basic policy
Upon any substantial acquisition of the Company shares, the Company strives to proactively collect and timely disclose
information in order to ensure and improve the corporate value of the Company and the common interest of shareholders
as well as make appropriate measures as needed under the scope permitted by laws and regulations and the Articles ofIncorporation.
When Board Meeting determines it necessary to apply anti-takeover measures in order to ensure and improve thecorporate value of the Company and the common interest of shareholders, taking into consideration of the future trend of
the society, the Company consults with shareholders at the Meeting of Shareholders as stipulated in the Articles ofIncorporation for decision of the implementation.
c. Decisions of the Board of Directors of the Company on the specific measures and the reasons
The measure described in the previous b. (a) was introduced as a specific measure to continuously and sustainably
improve the corporate value of the Company and the common interest of shareholders and is consistent with the Company’s
basic policy.
In addition, the measure described in the previous b. (b) was introduced as a specific measure to ensure and improve thecorporate value of the Company and the common interest of shareholders as needed under the scope permitted by laws andregulations and the Articles of Incorporation focusing on the intention of shareholders, and it is not intended to undermine－6－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2020 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

the shareholders’ common interests or preserve the positions of the Company officers.
(5) Research and development activities
Although research and development activities were conducted in the healthcare & skincare business during the second quarterof the current year, there are no specific items to highlight as the monetary amounts were not material.

(6) Major facilities
The new installation of the important facilities that had been planned as of the end of the prior year and completed during theconsolidated cumulative second quarter of the current year are as listed below.

Name of company

Name of office / site (location) Name of business segment

Coca-Cola Bottlers Japan Inc.

Branches / (-)

〃(Mihara-shi, Hiroshima

Facility description

Amount(millions of yen)Completed in

Beverage business

Vending machines/coolers

8,748

June 2020〃

Production facilities

13,959June 2020

Hiroshima plant
Prefecture)
Note: Consumption tax is not included in the above amounts.

3. Significant management contracts
Not applicable.

－7－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2020 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Section 3. Status of the filing company
1. Status of Shares(1) Total number of shares① Total number of shares
Class

Total Number of Authorized Shares

Common shares

500,000,000

Total

500,000,000② Issued shares
No. of issued shares as of end of 1st

No. of issued shares as of filing

Quarterdate（June 30, 2020）（August 13, 2020）

Class

CommonsharesTotal

206,268,593

206,268,593

206,268,593

206,268,593

Name of listed stock exchangeor registered authorized
financial instruments firms`

Details

association
Tokyo Stock Exchange（1st Section）-

100-unit shares-(NOTE) We delisted the Fukuoka Stock Exchange on July 11th.
(2) Status of stock acquisition rights① Status of share options
Not applicable.
② Other stock acquisition rights
Not applicable(3) Status of exercised moving strike convertible bonds
Not applicable.
(4) Total number of issued shares, transition of capital
Date

April 1, 2020 –June 30, 2020

Increase/decrease in total no.
of issued shares(thousand share)-

Balance of total no. of Increase/ decrease ofissued shares
capital(thousand share）(Millions of yen)

206,269－8－-

Capital balance(Millions of yen）

Increase/decrease ofcapital reserve(Millions of yen)

Capital reservebalance(Millions of yen)

15,232-

108,167

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2020 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(5) Major shareholder status
As of June 30, 2020

Name

Coca-Cola (Japan) Company, Limited

Address

Number ofshares held
(thousands ofshares)Percentage of thenumber of shares
held to the total
number of issued
shares (excluding
treasury stock) (%)

4-6-3, Shibuya, Shibuya-ku, Tokyo

27,956

15.59

2-11-3, Hamamatsucho, Minato-ku, Tokyo

9,071

5.06

Ichimura Foundation of New Technology

1-26-10, Kitamagome, Ota-ku, Tokyo

5,295

2.95

Satsuma Shuzo Co., Ltd.

26 Kamimotocho, Makurazaki-shi,
Kagoshima

4,699

2.62

Japan Trustee Service Bank, Ltd. (Trust Account)

1-8-11, Harumi, Chuo-ku, Tokyo

4,633

2.58

P.O. BOX 351 BOSTONMASSACHUSETTS 02 101 U.S.A.
(2-15-1 Konan, Minato-ku Tokyo)

4,229

2.36

Senshusha Co., Ltd.

339 Noda, Noda-shi, Chiba

4,088

2.28

Coca-Cola Holdings West Japan Inc.

1013 Wilmington Center Road, U.S.A.

(Standing proxy: Coca-Cola (Japan) Company,
Limited)Delaware
(4-6-3 Shibuya, Shibuya-ku, Tokyo)

4,075

2.27

Mitsubishi Heavy Industries Machinery Systems,
Ltd.

1-1-1, Wadazakicho, Hyogo-ku, Kobe-shi,
Hyogo

3,912

2.18

MCA Holdings, Co., Ltd.

2-6-15, Kyobashi, Chuo-ku, Tokyo

3,408

1.90

71,367

39.79

The Master Trust Bank of Japan, Ltd.
(Trust Account)

STATE STREET BANK AND TRUSTCOMPANY 505225(Standing proxy Settlement & Clearing &Services Division, Mizuho Bank, Ltd.)

Total

-

(Note) 26,919 thousand treasury shares are not included in the status of major shareholders above because they do not have voting
rights.

－9－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2020 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(6) Status of voting rights① Issued shares
As of June 30, 2020
Class

Number of shares

Number of votes

Details

Non-voting shares

-

-

-

Shares with restricted voting right (Treasury Shares)

-

-

-

Shares with restricted voting right (Others)

-

-

-

-

-

Shares with full voting rights (Treasury Shares)

Common shares

26,918,500

Shares with full voting rights (Others)

Common shares

178,536,700

Odd lot shares

Common shares

813,393--

206,268,593--

Total number of issued shares
Voting rights of all shareholders

1,785,367-

1,785,367--(Note): “Shares with full voting rights (Others)” includes 2,300 shares in JASDEC’s name (23 voting rights).

② Treasury Shares
As of June 30, 2020

Name of owner

Coca-Cola Bottlers
Japan Holdings Inc.

Address of owner

No. of shares

No. of shares

owned under own

owned undernameothers’ name

Total number ofshares owned

Ratio of shares owned
against total no. of issued
shares (%)

9-7-1 Akasaka, Minato-ku, Tokyo

26,918,500-

26,918,500

13.05

-

26,918,500-

26,918,500

13.05

Total

2. Status of Officers
Not applicable.

－10－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2020 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Section 4 Accounting status
1. Preparation methods for the quarterly consolidated financial statements
The Group’s condensed quarterly consolidated financial statements have been prepared in accordance with International
Accounting Standards Article 34 "Interim Financial Reporting".

2. Audit certification
The Company’s quarterly consolidated financial statements for the second quarter of the current year (April 1, 2020 to June 30,2020) and the first six-month period of the current year (January 1, 2020 to June 30, 2020) have been reviewed by Ernst & Young
ShinNihon LLC based on the provisions of Article 193-2 Paragraph 1 of the Financial Instruments and Exchange Act.

－11－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2020 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

1. Condensed Quarterly Consolidated Financial Statements and Notes(1) Condensed Quarterly Consolidated Balance Sheets
Notes(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

11

Other current assets

17,587

23,374

Total current assets
Non-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

Investments accounted for using the equity method

310

293

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

Other financial assets

11

Total assets－12－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2020 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(Millions of yen)
As ofJune 30, 2020

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

11

Lease liabilities
Other financial liabilities

11

Income taxes payable

122,364

113,413

17,261

67,094

6,634

6,548

916

2,206

1,104

1,974

20

20

Other current liabilities

19,886

14,660Total current liabilities

168,186

205,915

188,487

187,986

34,13832,235-133

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

Provisions

Non-current liabilities:
Bonds and debts

11

Lease liabilities
Other non-current financial liabilities

11

Total liabilities
Equity:Capital stock

15,232

15,232

Capital surplus

450,526

450,689

121,372

110,658(85,649)(85,652)

Retained earnings

7

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

－13－

4,517

(212)

505,999

490,715492

454

506,491

491,170

952,444974,323

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2020 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(2) Condensed Quarterly Consolidated Statements of loss
【First six-month period of this fiscal year】(Millions of yen)
Notes
Net sales

5,8

Six months ended
June 30, 2019

Six months ended
June 30, 2020
433,710386,679

Cost of sales

223,465

207,420Gross profit

210,246

179,259

205,202

183,899-

Selling and general administrative expenses
Impairment losses of goodwill

961,859
1,800

385

10

10,417

8,626

(24)

(230)

Other income
Other expenses
Share of loss of entities accounted for using equity method
Operating loss

(65,457)(13,110)

Financial revenue

5

501

405

Finance costs

557

540

(65,513)(13,245)

Income tax benefit(976)(6,783)

Loss for the period(64,537)(6,462)(64,565)(6,452)28(10)(358.14)(35.97)

Loss for the period before income tax benefit

Net loss for the year attributable to:
Owners of the parent
Non-controlling interests

Loss per share (yen)

13

－14－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2020 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

【Second quarter of this fiscal year】(Millions of yen)
Notes
Net sales

5

Three months ended
June 30, 2019

Three months ended
June 30, 2020

234,978

187,964

119,333

102,123

Gross profit

115,644

85,841

Selling and general administrative expenses

107,062

84,253

Cost of sales

Impairment losses of goodwill

9

Other income
Other expenses

10

Share of loss of entities accounted for using equity method
Operating loss

561,859

-

1,507

157

853

6,803

(10)

(170)

(52,633)(5,228)Financial revenue

123

311

Finance costs

289

265

Loss for the period before income tax (benefit)(52,799)(5,183)

Income tax (benefit)

3,754(4,410)Loss for the period(56,552)(773)(56,563)

(761)

11

(12)

(315.37)(4.24)Net loss for the year attributable to:
Owners of the parent
Non-controlling interests

Loss per share (yen)

13

－15－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2020 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(3) Condensed Quarterly Consolidated Statements of Comprehensive Loss
【First six-month period of this fiscal year】(Millions of yen)
Notes
Loss for the period
Other comprehensive income (loss)

Six months ended
June 30, 2019

Six months ended
June 30, 2020
(64,537)(6,462)Remeasurements of defined benefit plans

1,785

-

Net changes in financial assets measured at fair value throughother comprehensive loss

(408)

(3,377)

Subtotal

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

Items that will not be reclassified subsequently to profit or loss:

Items that may be reclassified subsequently to profit orloss:
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 income (loss) attributable to:
Owners of parent
Non-controlling interests－16－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2020 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

【Second quarter of this fiscal year】(Millions of yen)
Notes
Loss for the period
Other comprehensive income (loss)

Three months ended
June 30, 2019

Three months ended
June 30, 2020

(56,552)(773)

Items that will not be reclassified subsequently to profit or loss:
Remeasurements of defined benefit plans

0-

Net changes in financial assets measured at fair value throughother comprehensive income (loss)(1,081)

37

Subtotal(1,081)

37

(368)

39

(368)

39

Items that may be reclassified subsequently to profit orloss:
Cash flow hedges
Subtotal
Total other comprehensive income (loss) for the period(1,449)77

Total comprehensive loss for the period(58,001)(696)(58,012)

(685)

11

(12)

Comprehensive income (loss) attributable to:
Owners of parent
Non-controlling interests－17－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2020 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(4) Condensed Quarterly Consolidated Statements of Changes in Equity(Millions of yen)
Equity attributable to owners of the parent

Retainedearnings

Accumulated
othercomprehensive
incomeTreasuryshares

Noncontrollinginterests

Capital stockSharepremium

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)

Total

Total

Comprehensive income for theperiodNet (loss) income for the period

Other comprehensive income

Total comprehensive income (loss)
for the year
Transactions with owners

Dividends of surplus

7

-

-

(4,587)--(4,587)(22)(4,609)Purchase of treasury stock

6

-

(64)

-

(12,995)-(13,059)-(13,059)

Disposal of treasury stock

-

(0)

-

1

-

1

-

1

Transactions of share-based
payment

-

(2)

-

-

-

(2)

-

(2)

-

-

2,355

-

(2,355)

-

-

-

-

-

-

-

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

Reclassification fromaccumulated othercomprehensive income toretained earnings
Reclassification fromaccumulated othercomprehensive income to nonfinancial assets
Total transactions with owners
Balance as of June 30, 2019－18－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2020 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.
(Millions of yen)
Equity attributable to owners of the parent

Balance as of January 1, 2020

Accumulated
othercomprehensive
income (loss)

Treasuryshares

Noncontrollinginterests

Capital stockSharepremium

Retainedearnings

15,232450,526

121,372(85,649)4,517

505,999492

506,491--(6,452)--(6,452)(10)(6,462)

-

-

-

-

(5,042)(5,042)-(5,042)--(6,452)-(5,042)(11,494)(10)(11,504)

Total

Total

Comprehensive loss for the period
Net loss for the period

Other comprehensive loss

Total comprehensive loss) for theperiodTransactions with owners

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

-

-

221

-

(221)

-

-

-

-

-

-

-

534

534

-

534

-

163

(4,263)(3)313(3,790)(28)(3,818)15,232450,689

110,658(85,652)(212)

490,715454

491,170

Reclassification fromaccumulated othercomprehensive income (loss) toretained earnings
Reclassification fromaccumulated othercomprehensive income to nonfinancial assets
Total transactions with owners

Balance as of June 30, 2020

7

－19－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2020 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

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

Notes

Six months ended
June 30, 2020

Cash flows from operating activities
Loss for the period before income tax benefit(65,513)(13,245)

Adjustments for:
Depreciation and amortization

28,11429,387

Impairment loss

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)

OthersSubtotalInterest received

436

202

(1,702)

8,413

0

0

Dividends received

308

287

Interest paid

(527)

(471)

Income taxes paid

(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)

2,346

97

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

－20－

(27)

(26)

1,683

542

71

(48)

(38,820)(47,697)

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2020 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(Millions of yen)Six months ended
June 30, 2019

Notes

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

7(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

45,230118,605

6－21－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2020 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Notes to consolidated financial statements
1. Introduction
The Company is a holding company domiciled in Japan and is listed on the First Section of the Tokyo Stock Exchange.
Under the Coca-Cola brand, the Company and its subsidiaries (collectively, the "Group") engage in purchases, sales, bottling,
packaging, distribution and marketing of carbonated beverages, coffee beverages, tea-based beverages, mineral water and othersoft drinks in Japan. The Group also develops, manufactures and sells a variety of healthcare products. We delisted from the
Fukuoka Stock Exchange on July 11th, 2020.
The Group’s consolidated financial statements consist of the Company, subsidiaries and associates. The consolidated
financial statements were approved by our Representative Director & President, Calin Dragan and our Representative Director,
Vice President and Chief Financial Officer (Treasurer), Bjorn Ivar Ulgenes on August 12, 2020 and takes into account events
after the reporting period to that date (see notes 14, "events after the reporting period").
2. Basis of preparation
The Company’s condensed quarterly consolidated financial statements have been prepared in accordance with International
Accounting Standards Article 34 "Interim Financial Reporting" based on the Ordinance on the Terminology, Forms, andPreparation Methods of Quarterly Consolidated Financial Statements (Cabinet Office Ordinance No. 64 of 2007).
Condensed quarterly consolidated financial statements should be used in conjunction with consolidated financial statements
for the prior year as they do not include all the information required in the annual consolidated financial statements.
Condensed quarterly consolidated financial statements have been prepared on the basis of cost except for measurement at fairvalue.
Condensed quarterly consolidated financial statements are stated in Japanese yen. All condensed quarterly consolidated
financial information is rounded to the nearest million yen unless otherwise stated.
3. Significant accounting policies
The significant accounting policies applied by the Group in the condensed quarterly consolidated financial statements are thesame as the accounting policies applied in the consolidated financial statements for the prior year.
Income tax benefit for the six months ended June 30, 2020, has been calculated on the basis of the annual estimated effective
tax rate.
4. Critical accounting judgments, estimates and assumptions
In preparing the condensed quarterly consolidated financial statements in accordance with IFRS, management is required tomake judgments, estimates and assumptions that affect the application of the Group’s accounting policies and the reported
amounts of assets, liabilities, revenue and expenses. Actual results may differ from these estimates. The estimates and theassumptions underlying the estimates are continually reviewed and are based on historical experience and other factors,
including future events, which are believed to be reasonable under the circumstances. Accounting estimates are based on themost appropriate information at the time the condensed quarterly consolidated financial statements are filed. In regard to theimpact of COVID-19, the financial forecast for 2020 is currently being evaluated given ongoing uncertainty around the spreadof COVID-19. The Group`s current accounting estimates and assumptions are based on the expectation that COVID-19 will
be under control in 2020 and sales will recover to a more normalized level in 2021.
If there are changes to any future estimates, the impact of the revision is recognized in the condensed quarterly consolidated
statements of income and condensed quarterly consolidated statements of comprehensive income subsequent to the reporting
period in which they are revised.
Accounting judgments, estimates and assumptions that have a significant impact on the condensed quarterly consolidated
financial statements will be revised based on the same concept as in the consolidated financial statements for the previous
consolidated fiscal year.
－22－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2020 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

5. Segment Information
Operating segments are defined as the components of the Group 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 Group has established an organizational management system for each product and service. Based on
the types and characteristics of products and sales markets, the Group 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, 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, 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 its segments in comparison to its peers based on operating profit reported
in accordance with generally accepted accounting standards (IFRS). The accounting methods used for operating segment reported
are the same as those described in notes 3 "Significant accounting policies."－23－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2020 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Reportable segment information is as follows:
Impairment loss of 61,859 million yen was recorded in the Beverage Business during first six-month period of the prior year.
Second quarter of the prior year (January 1, 2019 – June 30, 2019)
Reportable segments(Millions of yen)

Total sales revenue

421,404
421,404

Healthcare &SkincareBusiness
12,306
12,306

Reportablesegments
Total
433,710433,710Segment profit (loss)(67,057)

1,600(65,457)

Beverage
Business
Sales revenue to external customers
Intersegment sales revenue

Adjustment

Total

-

433,710--433,710-(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)(Millions of yen)

Reportable segments

Intersegment sales accumulation

374,598-

Healthcare &SkincareBusiness
12,081-

Reportablesegments
Total
386,679-

Total sales revenue

374,598

12,081

Segment profit (loss)(14,937)

1,827

Beverage
Business
Sales revenue to external customers

Adjustment

Total

-

386,679-

386,679-

386,679(13,110)-(13,110)Adjustments
Financial revenue

405

Finance costs

540

Loss before income tax benefit(13,245)

Second quarter of the prior fiscal year (April 1, 2019 – June 30, 2019)
Reportable segments

Intersegment sales revenue

228,637-

Healthcare &SkincareBusiness
6,340-

Total sales revenue

228,637

6,340

Segment profit (loss)(53,518)885

Beverage
Business
Sales revenue to external customers(Millions of yen)
Reportablesegments
Total
234,978-

Adjustment

Total

-

234,978-

234,978-

234,978(52,633)-(52,633)

Adjustments
Financial revenue

123

Finance costs

289

Loss before income tax benefit(52,799)

Second quarter of the current fiscal year (April 1, 2020 – June 30, 2020)(Millions of yen)

Reportable segments

Intersegment sales accumulation

181,569-

Healthcare &SkincareBusiness
6,395-

Reportablesegments
Total
187,964-

Total sales revenue

181,569

6,395

Segment profit (loss)(6,508)1,280

Beverage
Business
Sales revenue to external customers

Adjustment

Total

－
-

187,964-

187,964－

187,964(5,228)－(5,228)Adjustments
Financial revenue

311

Finance costs

265

Loss before income tax benefit(5,183)－24－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2020 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

6. Acquisition of treasury stock
Based on the resolution of the Board of Directors on November 9, 2018, the Company acquired its treasury stock during thesecond quarter of the prior year. As a result of this acquisition, treasury stock increased by 4,120,300 shares in the second quarterof the prior year.
7. Dividends
Dividends payments were as follows:First half of the prior year (January 1, 2019 – June 30, 2019)
1. Dividend payment amountResolution

Type of shares

Total amount ofdividends paid
(Millions of yen)

Dividends per
share
(Yen)

Dividend record date

Effective dateOrdinary share

4,587

25

December 31, 2018

March 27, 2019

March 27, 2019
Ordinary General Meetingof Shareholders

2. Dividends with the cut-off date in the first half of FY 2019 and the effective date following the first half of FY 2019
Resolution
August 7, 2019
Board of directors

Type of shares

Total amount ofdividends paid
(Millions of yen)

Dividends per share(Yen)

Ordinary share

4,484

25

Dividend record date

Effective dateJune 30, 2019

September 2, 2019

First half of the current year (January 1, 2020 – June 30, 2020)
1. Dividend payment amountResolution

Type of shares

Total amount ofdividends paid
(Millions of yen)

Dividends per share(Yen)

Dividend record date

Effective dateOrdinary share

4,484

25

December 31, 2019

March 27, 2020

March 26, 2020
Ordinary General Meetingof Shareholders

2. Dividends with the cut-off date in the first half of FY 2020 and the effective date following the first half of FY 2020
Not applicable－25－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2020 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

8. Revenue
The Group's organizational structure is based on two businesses, the Beverage business and Healthcare & Skincare business.
These two businesses are components for which discrete financial information is available, and whose operating results are
regularly reviewed by the entity’s Board of Directors (chief management decision maker) to make decisions about resources
to be allocated to the segment and assess its performance. Therefore, the revenue in these two businesses are presented as“Revenue” in the consolidated financial statement of profit and loss. In the Beverage business, the Group purchases,
manufactures, and sells carbonated beverages such as Coca-Cola, coffee beverages, black tea beverages, mineral water andother beverages in Japan. In the Healthcare & Skincare business, the Group manufactures and sells kale juice (aojiru) and otherproducts made from Kale and manufactures and sells health foods and cosmetics and other related products.
Revenue for sales of these products is recognized primarily at the time of delivery as the customer has obtained control overthe products and the performance obligation is satisfied.
Payments relating to such performance obligations are received generally within two months of delivery. The contracts withcustomers do not include any material financial elements.
The contract liabilities, refund liabilities, amount of assets recognized from the costs of obtaining a contract or to fulfil acontract and amount of revenue recognized from performance obligations satisfied in prior periods were immaterial. In addition,
information regarding the remaining performance obligations is omitted as there are no significant transactions in which theestimated individual contract periods exceed one year in the Group.
The breakdown of revenue and the relationship between reportable segments is as follows.
Second quarter of the prior year (January 1, 2019 – June 30, 2019)(Millions of yen)
Reportable segments
Healthcare &Skincare business

Beverage business
Beverage

420,892-

420,892-

12,306

12,306

512

-

512

421,404

12,306433,710

Health food
Other
Total

Total

Second quarter of the current year (January 1, 2020 – June 30, 2020)(Millions of yen)
Reportable segments
Healthcare &Skincare business

Beverage business
Beverage
Health food
Other
Total

Total

374,166-

374,166-

12,081

12,081

432

-

432

374,598

12,081

386,679－26－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2020 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

9. Impairment losses of goodwill
Impairment losses on goodwill occurred in the Beverage Business during the previous consolidated second quarter. The
earnings forecast based on the mid-term plan up to 2024 announced on August 7, 2019 is expected to be lower than thebusiness plan expected at the time of acquisition of Coca-Cola Bottlers Japan Inc. (formerly Coca-Cola East Japan Co., Ltd.)As a result, based on the mid-term plan, we assessed the recoverable value of the cash-generating unit group to which the
goodwill belongs. As a result, the Company recorded an impairment loss of goodwill of 61,859 million yen in the previous
consolidated second quarter.
10. Other expenses
The breakdown of other expenses is as follows:
Second quarter of the prior year
(January 1, 2019 – June 30, 2019)

Second quarter of the current year
(January 1, 2020 – June 30, 2020)

250

85

1,293

1,062

－

1,908

8,711

1,424

Temporary leave costs (Note 3)

－

2,841

Product valuation losses (Note 4)－604

Costs of postponing the Olympics (Note 5)

－

201

Other

164

499

10,417

8,626

Impairment losses
Losses on sales and disposals of property, plant andequipment
Transformation-related expenses (Note 1)
Special retirement allowance (Note 2)

Total(Note) 1. Transformation-related expenses are expenses related to measures aimed at creating an efficient new system with the aimof creating more value and further improving productivity for the sustainable growth of the Group.
2. Special retirement allowances are allowances and outplacement support expenses incurred in the implementation of thevoluntary retirement program for the previous consolidated second quarter and the current consolidated second quarter.
3. Temporary leave cost is the allowance associated with employee’s temporary leave due to the spread of COVID-19. The
cost is reclassified from cost of sales and selling and general administrative expenses to other expenses, 309 million yen
and 2,532 million yen, respectively. Once the amount of employment adjustment subsidy from the government is confirmed,
it is netted with other expenses.
4. Product valuation loss is a valuation loss of product inventory at the time of the emergency declaration of the government
to prevent COVID-19 outbreak. This is because the product inventory is planned to be disposed due to the effects of thesuspension of operation of restaurants. The losses are reclassified from cost of sales.
5. Costs related to the postponement of the Olympics were incurred by the postponement of the Olympic and Paralympic
Games due to COVID-19. The expenses are mainly for hotels and warehouses cancellation fees and reclassified fromselling and general administrative expenses.
11. Fair value of financial instruments(a) Classification by level of the fair value hierarchy
Financial instruments measured at fair value on a recurring basis after initial recognition are classified into three levelsof the fair value hierarchy, depending on the observability and significance of the inputs used in the measurement.
The fair value hierarchy is defined as follows:
Level 1: fair value (unadjusted) in the active market of the same asset or liability
Level 2: fair value based on inputs other than quoted prices included in Level 1, either directly observable inputs orindirectly, of observable inputs for asset or liability
Level 3: fair value based on unobservable inputs for asset or liability
When more than one input is used to measure the fair value, the level of the fair value hierarchy is determined basedon the lowest level of input that is significant to the fair value measurement as a whole. Transfers between levels of the－27－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2020 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

fair value hierarchy are recognized as having occurred at the beginning of each quarter.
There were no transfers between Level 1 and Level 2 during the second quarter of the prior year and second quarter ofthe current year.
(b) Fair value measurement
Securities are classified as Level 1 of the fair value hierarchy by the measurement of share prices, if any, in active
market for the same asset or liability. If there is no active market stock price for the same asset or liability, the Group uses
valuation techniques such as stock prices in non-active markets, quoted market prices of similar companies anddiscounted future cash flow models. If significant inputs, such as quoted market prices and discount rates used inmeasurement are observable, such financial instruments are classified as Level 2, but are classified as Level 3 if inputs
used in its measurement include significant unobservable inputs.
Unlisted securities are classified into Level 3 of the fair value hierarchy using valuation techniques based on discounted
future cash flows, valuation techniques based on quoted market prices of similar companies, valuation techniques basedon net asset value, and other valuation techniques. In the fair value measurement of unlisted securities, the Group uses
unobservable inputs such as discount rates and valuation multiples and considers certain illiquidity discounts and noncontrolling interest discounts as needed. The measurement methods for such fair value are determined by the Financedivision in accordance with the Group’s accounting policies.
The valuation techniques and significant unobservable inputs used in Level 3 fair value measurement are as follows:
As of December 31, 2019
Type

Valuation techniqueSignificant unobservable inputs

Interactions between significant unobservable inputs andfair value measurement

Financial
instrument
measured at fairvalue throughothercomprehensive

Comparison of

EBIT Multiple: 9.2-46.5 times

Estimated fair value increases (decreases) when equity

similar

EBITDA Multiple: 8.6times

indices of comparable listed companies of the target arecompanies

PBR: 1.0-2.7 times

high (low)income(Securities)

As of June 30, 2020
Type

Valuation techniqueSignificant unobservable inputs

Interactions between significant unobservable inputs andfair value measurement

Financial
instrument
measured at fairvalue throughothercomprehensive

Comparison of

EBIT Multiple: 7.3－42.4 times

Estimated fair value increases (decreases) when equity

similar

EBITDA Multiple: 12.5 times

indices of comparable listed companies of the target arecompanies

PBR: 1.0-2.6 times

high (low)income(Securities)
EBIT Multiple: Corporate Value/EBIT
EBITDA Multiple: Corporate Value/EBITDAPBR: Price Book Value Ratio－28－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2020 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(c) Financial instrument measured fair value on a recurring basis
The breakdown of financial instrument measured at fair value on a recurring basis is as follows:
As of December 31, 2019
(Millions of yen)
Level 1

Level 2

Level 3

Total

Financial assets
Financial instrument measured at fair value throughprofit or loss:
Derivative assets

-

579

-

579

-

579

-

579

22,475-

5,253

27,728

-

-

138

138

Subtotal
Financial instrument measured at fair value throughother comprehensive income:Securities
Other
Subtotal

22,475-

5,392

27,867

Total

22,475579

5,392

28,446

-

916

-

916

-

916

-

916

Financial liabilities
Financial instrument measured at fair value throughprofit or loss:
Derivative liabilities
Total

As of June 30, 2020
(Millions of yen)
Level 1

Level 2

Level 3

Total

Financial assets
Financial instrument measured at fair value throughprofit or loss:
Derivative assets
Subtotal

－

209

－

209

－

209

－

209

17,648－

4,455

22,104

Financial instrument measured at fair value throughother comprehensive income:Securities

－

－

125

125

Subtotal

17,648－4,580

22,228

Total

17,648209

4,580

22,437

－

2,339

－

2,339

－

2,339

－

2,339

Other

Financial liabilities
Financial instrument measured at fair value throughprofit or loss:
Derivative liabilities
Total

－29－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2020 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

A reconciliation of the beginning and ending balances of financial instrument classified as Level 3 is as follows:(Millions of yen)
Financial assets measured at fair value through other comprehensive income
Balance at January 1, 2019

4,914

Disposals(0)Gains recognized in other comprehensive income

158

Balance at June 31, 2019

5,073

Balance at January 1, 2020

5,392

Disposals-

Losses recognized in other comprehensive income(811)

Balance at June 30, 2020

4,580

Gains or losses recognized in other comprehensive income are recognized in "Net changes in financial asset
measured at fair value through other comprehensive income" in the consolidated statements of comprehensive income.
(d) Financial instrument measured at amortized cost
The components of carrying amount and fair value of financial instruments measured at amortized cost are as follows:
As of December 31, 2019
(Millions of yen)
Carrying amountLong-term loans payable and bonds

Fair value

205,748

Difference
205,627122

As of June 30, 2020
(Millions of yen)
Carrying amountLong-term loans payable and bonds

205,080

Fair value

Difference
204,406

674

Long-term loans payable and bonds include current portion. Cash and cash equivalents, trade and other receivables,
trade and other payables, and short-term loans payable are not included in the above table because their fair value
approximates their carrying amount because they are collected and settled in a short period of time.
The main valuation techniques used to measure fair value of the financial instruments in the table above are as follows:a. Loans payable
Loans payable with variable interest rates are calculated using the carrying amount as its fair value because interest
rates are considered to reflect market interest rates in the short term. Loans payable with fixed interest rates are calculated
based on the present value of future cash flows discounted using interest rates adjusted for the remaining term and credit
risk. Loans payable with fixed interest rates are classified into level 2 of the fair value hierarchy.
b. Bonds
For bonds with quoted market prices, the fair value is estimated based on quoted market prices. For bonds without
quoted market prices, the fair value is calculated based on the present value of future cash flows discounted using interest
rates adjusted for the remaining term and credit risk. Bonds with quoted market prices are classified into level 1 of thefair value hierarchy and bonds without quoted market prices are classified into level 2.

－30－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2020 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

12. Retirement benefits
Regarding retirement benefit plans for employees of the Group, some subsidiaries are to adopt defined contribution pension
plans and defined benefit pension plans, which calculate the amount of contributions and benefits based on their position, yearsof services and other factors. However, as of April 1, 2019, the beverage business was unified into a defined contribution
pension plan and a lump-sum retirement plan.
As a result, in the consolidated statement of income for the second quarter, cost of sales, selling, general and administrative
expenses decreased by 2,170 million yen.
13. Loss per share
The calculation of basic loss per share attributable to owners of the parent is based on the quarterly loss attributable to ownersof the parent and the weighted average number of common shares issued.
The basis for calculating the basic loss per share for the second quarter of the current year and prior year is as follows.

Six months ended
June 30, 2019

Six months ended
June 30, 2020

Loss for the period attributable to owner of parent (millions of yen)

(64,565)(6,452)

Weighted-average shares of ordinary share outstanding (in thousands)

180,280

179,351

Loss per share (yen)(358.14)(35.97)

Three months ended
June 30, 2019

Three months ended
June 30, 2020

Loss for the period attributable to owner of parent (millions of yen)

(56,563)(761)

Weighted-average shares of ordinary share outstanding (in thousands)

179,354

179,350

Loss per share (yen)(315.37)(4.24)

14. Events after the reporting period
Not applicable－31－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2020 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

2. Others
Not applicable－32－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended June 30, 2020 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Part II Information of guarantor companies of the filing company
Not applicable－33－