This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 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 January 1, 2020
（The 1st Quarter of the 63rd Term）
To March 31, 2020

Coca-Cola Bottlers Japan Holdings Inc.

（E00417)

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 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 ........................................................................ 6
Section 3. Status of the filing company ........................................................................ 7
1. Status of Shares ...................................................................................... 7
2. Status of Officers ..................................................................................... 8
Section 4 Accounting status................................................................................. 9
1. Condensed Quarterly Consolidated Financial Statements and Notes ............................................ 10
2. Others ............................................................................................ 26
Part II Information of guarantor companies of the filing company .................................................... 27

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 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]

May 14, 2020

[Fiscal year]

63rd fiscal term (from January 1, 2020 to March 31, 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）
Fukuoka Stock Exchange（2-14-2 Tenjin, Chuo Ward, Fukuoka City）

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 March 31, 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
The 62nd Term
The 63rd Term
Consolidated Cumulative First Consolidated Cumulative First
Quarter
Quarter

Issuance

From
January 1, 2019
toMarch 31, 2019

Accounting period

From
January 1, 2020
toMarch 31, 2020

The 62nd Term

From
January 1, 2019
toDecember 31, 2019

Net sales(Millions of yen)

198,733

198,715

914,783

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

(12,715)(8,063)(55,419)

loss for the period attributable to Owners of(Millions of yen)
parent(8,002)(5,690)(57,952)

Comprehensive loss attributable to ownersof the parent(Millions of yen)

(5,553)(10,809)(52,164)

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

556,915490,939

505,999

Total assets(Millions of yen)

936,411

933,373

952,444

Loss per share(Yen)(44.22)(31.73)(322.22)

Diluted loss per share

(Yen)

－

－

－

Ratio of equity attributable to owners of theparent to total assets

(%)

59.5

52.6

53.1

Cash flows from operating activities(Millions of yen)

10,051

9,762

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

(20,295)(27,356)(68,308)

Cash flows from financing activities(Millions of yen)

(1,137)(6,970)73,994

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

54,12989,261

113,825

Notes:
1. Because the Company prepares quarterly consolidated financial statements, the summary of business results for each subsidiary is not described.
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 the firstquarter of FY 2020－1－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 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
The loss of the current consolidated fiscal year is expected to be impacted by lost sales opportunities, elevated purchase costs invarious areas as a result of the spread of the new coronavirus infection (COVID-19). There is no material change to other businessrisks that are provided in the securities report of the prior 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 the frontline working daily to produce and supply essential goods and services— is ournumber one priority. Our mission is to deliver happy, refreshing moments to everyone, even in challenging times, and we havebeen working with comprehensive business continuity actions in place to ensure safe and secure product supply.
In the quarter, total nonalcoholic ready-to-drink (NARTD) beverage industry volume performance is expected to be negative
versus the prior year mainly due to a decline in March as the government recommended closing schools, working from homeand curtailing large gatherings as countermeasures against the spread of COVID-19 in late February. The health food andcosmetics 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 during the quarter by the initial impact of the COVID19 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 arealso accelerating the pace of transformation and identifying new opportunities to ensure we not only address the immediate needsof the business during this crisis, but also that we are well-prepared in the longer term for the post-crisis business environment.
Our first-quarter results, as described below, trended in line with plan in January and February, but were impacted by a drop inbeverage business sales volume in March due to the COVID-19 outbreak.

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

－2－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 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.

Summary of Consolidated Financial Results
2019

2020

Q1

Q1

Net sales

198,733

198,715(0.0%)

Gross Profit

94,602

93,418(1.3%)

98,14099,645

1.5%

Other income (Recurring)

293

227

(22.5%)

Other expenses (Recurring)

800

475

(40.6%)

Investment gain (loss) on equity method

(14)

(59)

－

(4,059)(6,534)－

Other income (Non-recurring)

-

0

－

Other expenses (Non-recurring)

8,765

1,348

(84.6%)

Operating Income (Loss)(12,824)(7,881)－Net Income (Loss) Attributable to Owners of Parent(8,002)(5,690)－In Million JPY

Selling, General & Administrative Expenses

Business Income (Loss)

YoY

Sales volume of beverage business (Million cases)
110
108
(2%)
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.

First-quarter net revenue was 198,715 million yen, nearly even (a decrease of 17 million yen, 0%) with the prior-year period.
Sales volume of the beverage business in the first quarter declined 2% versus the prior year, driven by a sharp decline in Marchas COVID-19 began to spread in Japan. Net revenue of the beverage business grew slightly (up 262 million yen, or +0.1%) to
193,029 million yen, supported by the large PET wholesale price increase from April 2019, national expansion of the Lemondou alcohol brand and lower rebates (decrease of deduction from revenue) as we reprioritize how we invest in promotional andmarketing expenses. Net revenue of the healthcare & skincare business fell by 279 million yen (down by 4.7%) year-on-year to
5,687 million yen, despite new product launches following renewal of the corporate logo and core products in October 2019.
First-quarter business income, an indicator of our recurring business performance, was a loss of 6,534 million yen (4,059
million yen loss in Q1 2019), reflecting in-line performance in January and February, with additional pressure from the initial
impact of the COVID-19 outbreak. Business income of the beverage business was a loss of 7,081 million yen (4,774 million
yen loss in Q1 2019). This reflects cycling of labor driven by prior-year pension program alignment as well as higher depreciationand other expenses reflecting our strategic investments in production capacity, “Big Bet” brand initiatives and expanded sellingspace, and organizational capability improvements. Business income in the healthcare & skincare business was 547 million yen,a decrease of 167 million yen or 23.4% year-on-year driven by revenue decline despite a strong focus on controlling sales
promotion expenses. Consolidated operating loss improved versus the prior year to 7,881 million yen (12,824 million yen loss
in Q1 2019). As a reference, other expenses (non-recurring) in the first quarter 2019 include 8,706 million yen of special
retirement allowance and others due to the introduction of a voluntary employee retirement program. Other expenses (nonrecurring) during this period include special retirement allowances of 746 million yen as well as 331 million yen oftransformation-related expenses to drive fundamental transformation of our business for sustainable growth following our
newly-developed strategic business plan announced in August 2019. Net loss attributable to owners of parent also improved, toa loss of 5,690 million yen (8,002 million yen loss in Q1 2019).
(2) Qualitative Information on Consolidated Financial Position
Assets at the end of the quarter were 933,373 million yen, a decrease of 19,071 million yen from the end of the prior year.
This is mainly due to an increase of inventories to ensure stable supply as we continue to ramp up production capacity in the firsthalf of 2020, and higher fixed assets as a result of the strategic capital investments we have been making to increase supply
capacity and space to sell. This was offset by decreases in Cash and Cash Equivalents, Trade and Other Receivables. Furthermore,
Other Financial Assets decreased due to lower values in Investment in Securities driven by recent stock market performance.
Liabilities at the end of the quarter were 441,968 million yen, a decrease of 3,985 million yen from the end of prior year.
This is mainly due to a decrease of trade and other payables by paying prior year period capital expenditure upon completion ofcapital projects.
－3－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 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.

Net assets at the end of the quarter were 491,405 million yen, a decrease of 15,086 million yen. This is mainly due to a decreaseof other comprehensive income and decline of retained earnings as a result of paying year-end dividends.
Also, we accessed 50 billion yen in short-term borrowing from banks in April 2020 in order to ensure sufficient liquidity andaccess to cash as a backstop during this period of high uncertainty.
(3) Cash flows
The cash flow conditions for the first quarter of the current year are as follows.
<Cash Flows from Operations>
Net cash provided by operating activities was 9,762 million yen (10,051 million yen in the same period in the prior year),due to an increase in depreciation expenses, and decrease in trade and other receivables, despite loss for the period before
income tax.
<Cash Flows from Investment Activities>
Net cash used in investing activities was 27,356 million yen (20,295 million yen in the same period in the prior year), mainly
due to purchases of fixed assets.
<Cash Flows from Financing Activities>
Net cash used in financing activities was 6,970 million yen (income of 1,137 million yen in the same period in the prioryear), due to the payment of year-end dividends, repayment of lease liability.
As a result of these activities, cash and cash equivalents at the end of this period was 89,261 million yen, an increase of 35,132
million yen in comparison to the same period 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 work upon during the consolidated cumulative
first 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－4－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 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.

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
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.
－5－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 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.

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
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 first quarter ofthe current year, there are no items that particularly need to be pointed out as the monetary amounts were insignificant.

(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 first quarter of the current year are as listed below.

Name of company
Coca-Cola Bottlers Japan Inc.

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

Beverage businessNote: Consumption tax is not included in the above amounts.

3. Significant management contracts
Not applicable.

－6－

Facility description
Vending machines/coolers

Amount(millions of yen)
6,387

Completed in
March 2020

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 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（March 31, 2020）（May 14, 2020）

Class

Name of listed stock exchangeor registered authorized
financial instruments firms`

Details

association
Tokyo Stock Exchange

Common206,268,593

shares（1st Section）

206,268,593

100-unit shares

Fukuoka Stock Exchange

Total

206,268,593

206,268,593--(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

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

January 1, 2020 –March 31, 2020-

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

206,269(5) Major shareholder status
Not applicable as this is the first quarter of the current year

－7－-

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 March 31, 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 March 31, 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

26,918,200

Shares with full voting rights (Others)

Common shares

178,527,800

Odd lot shares

Common shares

822,593--

206,268,593--

Total number of issued shares
Voting rights of all shareholders

1,785,278-

1,785,278--

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

② Treasury Shares
As of March 31, 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

26,918,200-

26,918,200

13.05

-

26,918,200-

26,918,200

13.05

Total

2. Status of Officers
Not applicable.

－8－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 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 has 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 first quarter of the current year (January 1, 2020 to March 31,2020) 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.

－9－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 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 ofMarch 31, 2020

As ofDecember 31, 2019

AssetsCurrent assets:
Cash and cash equivalents

113,825

89,261

Trade and other receivables

98,52885,855Inventories

74,12080,954752

711

Other financial assets

10

Other current assets

17,587

20,285

Total current assets
Non-current assets:

304,812

277,066

Property, plant and equipment

467,136474,968

Right-of-use assets

39,62938,936

Goodwill

27,021

27,021Intangible assets

67,12367,003

Investments accounted for using the equity method

310

309

33,49928,312

Deferred tax assets

6,093

11,717

Other non-current assets

6,820

8,041

Total non-current assets

647,632

656,307952,444933,373

Other financial assets

10

Total assets－10－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 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 ofMarch 31, 2020

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

10

Lease liabilities
Other financial liabilities

10

Income taxes payable

122,364

115,501

17,261

17,105

6,634

6,727

916

2,941

1,104

568

20

23

Other current liabilities

19,886

21,554

Total current liabilities

168,186

164,420

Provisions

Non-current liabilities:
10

188,487

187,986

Lease liabilities

34,13833,575Net defined benefit liabilities

24,90825,684

Bonds and debts

Provisions

2,104

2,183

Deferred tax liabilities

24,876

24,793

Other non-current liabilities

3,254

3,326

Total non-current liabilities

277,767

277,548445,953441,968

Total liabilities
Equity:Capital stock

15,232

15,232

Capital surplus

450,526

450,592

121,372

111,198(85,649)(85,652)

Retained earnings

7

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

－11－

4,517

(432)

505,999

490,939492

466

506,491

491,405

952,444933,373

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 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
(Millions of yen)
Notes
Net sales

5,8

Three months ended
March 31, 2019

Three months ended
March 31, 2020

198,733

198,715

Cost of sales

104,131

105,297

Gross profit

94,602

93,418Selling and general administrative expenses

98,14099,645

Other income
Other expenses

293

227

9

9,565

1,822

(14)

(59)

5

(12,824)(7,881)

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

377

95

Finance costs

268

276

Loss for the period before income taxes(12,715)(8,063)

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

Loss for the period(7,985)(5,689)(8,002)(5,690)172(44.22)(31.73)

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

Loss per share (yen)

12

－12－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 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

Notes
Loss for the period
Other comprehensive income(Millions of yen)Three months ended
March 31, 2020Three months ended
March 31, 2019
(7,985)(5,689)Items that will not be reclassified subsequently to profit or loss:
Remeasurements of defined benefit plans

1,785

-

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

673(3,414)

Subtotal

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

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

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

2

Comprehensive income (loss) attributable to:
Owners of parent
Non-controlling interests－13－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 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

Other
comprehensive
incomeaccumulated

Treasuryshares

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--(8,002)--(8,002)

17(7,985)

Other comprehensive income(loss)

-

-

-

-

2,449

2,449

-

2,449

Total comprehensive income (loss)
for the year--

(8,002)-

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

Total

Total

Comprehensive income for theperiodNet income (loss) for the period

Transactions with owners

Dividends of surplus

7

-

-

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

6

-

(64)

-

(12,991)-(13,055)-(13,055)

Disposal of treasury stock

-

(0)

-

0

-

0

-

0

Transactions of share-based
payment

-

41

-

-

-

41

-

41

-

-

1,785

-

(1,785)

-

-

-

-

-

-

-

(41)

(41)

-

(41)

-

(23)

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

15,232450,511

171,276(85,641)

5,538

556,915453

557,368

Reclassification fromaccumulated othercomprehensive income toretained earnings
Reclassification fromaccumulated othercomprehensive income to nonfinancial assets
Total transactions with owners
Balance as of March 31, 2019－14－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 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

Other
comprehensive
incomeaccumulated

Treasuryshares

Noncontrollinginterests

Capital stockSharepremium

Retainedearnings

15,232450,526

121,372(85,649)4,517

505,999492

506,491--(5,690)--(5,690)2(5,689)

-

-

-

-

(5,119)(5,119)-(5,119)--(5,690)-(5,119)(10,809)2(10,807)

Total

Total

Comprehensive income for theperiodNet loss for the period

Other comprehensive loss

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

Dividends of surplus

7

-

-

(4,484)--(4,484)(28)(4,512)

Purchase of treasury stock

-

-

-

(3)

-

(3)

-

(3)

Disposal of treasury stock

-

(0)

-

0

-

0

-

0

Transactions of share-based
payment

-

66

-

-

-

66

-

66

-

-

0

-

(0)

-

-

-

-

-

-

-

170

170

-

170

-

66

(4,484)(3)

170(4,250)(28)(4,278)15,232450,592

111,198(85,652)(432)

490,939466

491,405

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

Balance as of March 31, 2020

－15－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 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)Three months ended
March 31, 2019

Notes

Three months ended
March 31, 2020

Cash flows from operating activities
Loss for the period before income benefits(12,715)(8,063)Adjustments for:
Depreciation and amortization

13,78914,670

Impairment loss
Change in allowance for doubtful accounts

59

66

(170)

(82)

Interest and dividends income

(27)

(27)

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
Decrease in trade and other receivables

268

264

14

59

(18)

(4)

632

401

1,929

12,702

Decrease (increase) in inventories(3,275)(6,834)

Decrease (increase) in other assets

1,192

(989)

Increase (decrease) in trade and other payables

15,918550(Decrease) Increase in net defined benefit liabilities(1,731)776

Decrease in other liabilities(1,949)(2,347)

OthersSubtotalInterest received
Dividends received
Interest paid
Income taxes paid
Income taxes refund
Net cash provided by operating activities

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

－16－

(105)

8

13,811

11,151

0

0

27

27

(134)

(262)

(3,654)(1,154)1

0

10,051

9,762(20,482)(27,454)

187

78

(11)

(11)

1

0

10

31

(20,295)(27,356)

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 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)Three months ended
March 31, 2019

Notes

Cash flows from financing activities
Increase in short-term loans payable

Three months ended
March 31, 2020

19,000

－

(723)

(685)

(4,587)(4,484)

Dividends paid to non-controlling interests

(22)

(28)

Proceeds from disposal of treasury stock

0

0

Repayments of long-term loans payable
Dividends paid

Purchases of treasury stock

7(13,084)(3)

Repayments of lease liabilities(1,721)(1,771)

Net cash used in financing activities(1,137)(6,970)Net decrease in cash and cash equivalents(11,382)(24,564)

Cash and cash equivalents at the beginning of the year

65,510113,825

Cash and cash equivalents at the end of the year

54,12989,261

6－17－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 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 andthe Fukuoka 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 other soft drinks in Japan. The Group also develops, manufactures and sells a variety of healthcare
products.
The Group’s consolidated financial statements consists of the Company, subsidiaries and associates. The consolidated
financial statements was approved by our Representative Director & President, Calin Dragan and our Representative Director
Vice President and Chief Financial Officer (Treasurer), Bjorn Ivar Ulgenes on May 13, 2020 and is considering the events after
the reporting period to that date (see notes 13, "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 taxes benefits for the three months ended March 31, 2020, have been calculated on the basis of the annual estimatedeffective 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 environments. Accounting estimates are based on themost appropriate information at the time the condensed quarterly consolidated financial statements are filed, however, with the
spread of COVID-19 and government emergency declaration and the decision to postpone the Tokyo 2020 Olympic andParalympic Games, the Group`s current accounting estimates and assumptions will continue to be evaluated.
If any estimates in further into the future changes, the impact of the revises is recognized in the condensed quarterly
consolidated statements of loss and condensed quarterly consolidated statements of comprehensive loss subsequent to thereporting 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.
－18－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 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 chief operating decision maker in making resource allocation decisions and in assessing performance.
The Group has established an organizational management system for each product and service. Based on the types andcharacteristics 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."
Reportable segment information is as follows:First quarter of the prior year (January 1, 2019 – March 31, 2019)
Reportable segments

Intersegment sales revenue

192,767-

Healthcare &SkincareBusiness
5,966-

Total sales revenue

192,767

5,966

Segment profit (loss)(13,538)

714

Beverage
Business
Sales revenue to external customers(Millions of yen)
Reportablesegments
Total
198,733-

Adjustment

Total

-

198,733-

198,733-

198,733(12,824)-(12,824)

Adjustments
Financial revenue

377

Finance costs

268

Loss before tax(12,715)First quarter of the current year (January 1, 2020 – March 31, 2020)(Millions of yen)

Reportable segments

193,029

Healthcare &SkincareBusiness
5,687

Reportablesegments
Total
198,715

-

-

-

-

-

Total sales revenue

193,029

5,687

198,715-

198,715

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

Beverage
Business
Sales revenue to external customers
Intersegment sales accumulation

Adjustment-

Total
198,715

Adjustments
Financial revenue

95

Finance costs

276

Loss before tax(8,063)

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 thefirst quarter of the prior year. As a result of this acquisition, treasury stock increased by 4,120,300 shares in the first quarter ofthe prior year.

－19－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 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.

7. Dividends
Dividends payments were as follows:First quarter of the prior year (January 1, 2019 – March 31, 2019)
Resolution

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

Effective date

March 27, 2019
Ordinary General Meetingof Shareholders

First quarter of the current year (January 1, 2020 – March 31, 2020)
Resolution

Type of shares

Total amount ofdividends paid
(Millions of yen)

Dividends per share(Yen)

Dividend record
dateOrdinary share

4,484

25

December 31, 2019

March 26, 2020
Ordinary General Meetingof Shareholders

March 27,2020

8. Revenue
The Group's organizational structure is based on the two business of 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 chief operating decision maker to make decisions about resources to be allocatedto the segment and assess its performance. Therefore, the revenue in these two businesses are presented as “Revenue” in the
consolidated financial statement of loss. In the Beverage business, the Group purchases, manufactures, and sells carbonatedbeverages such as Coca-Cola, coffee beverages, black tea beverages, mineral water and other beverages in Japan. In the
Healthcare & Skincare business, the Group manufactures and sells kale juice (aojiru) and other products made from Kale andmanufactures 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 customer has obtained control over the
products and the performance obligation is satisfied.
Payments relating to such performance obligation are received generally within two months of delivery. The contracts withcustomer 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 obligation satisfied in prior periods were immaterial. In addition,
information regarding the remaining performance obligation 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.
First quarter of the prior year (January 1, 2019 – March 31, 2019)(Millions of yen)
Reportable segments
Healthcare &Skincare business

Beverage business
Beverage
Health food
Other
Total

Total

192,541-

192,541

-

5,966

5,966

226

-

226

192,767

5,966

198,733－20－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 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.

First quarter of the current year (January 1, 2020 – March 31, 2020)(Millions of yen)
Reportable segments
Healthcare &Skincare business

Beverage business
Beverage
Health food
Other
Total

Total

192,812-

192,812

-

5,687

5,687

217

-

217

193,029

5,687

198,715

9. Other expenses
Other expenses (non-recurring) for the first quarter of the prior year include 8,706 million yen in special retirement allowanceand outplacement support service incurred in connection with the implementation of the voluntary retirement program resolvedby the Board of Directors in February 2019.
Other expenses (non-recurring) for the first quarter of the current year include special retirement allowances, outplacement
support service of 746 million yen and business structure improvement expenses of 331 million yen. Business structure
improvement expenses are costs associated with the efforts of creating an efficient new system with the aim of creating morevalue and further improving productivity for the sustainable growth of the Group.
10. 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 measurement the fair value, the level of the fair value hierarchy is determinedbased on the lowest level of input that is significant to the fair value measurement as a whole. Transfers between levelsof the 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 first quarter of the prior year and first quarter of thecurrent 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 flows 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 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 based－21－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 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.

on 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 March 31, 2020
Type

Valuation techniqueSignificant unobservable inputs

Interactions between significant unobservable inputs andfair value measurement

Financial
instrument
measured at fairvalue throughothercomprehensive

Comparison of

EBIT Multiple: 2.9-46.5 times

Estimated fair value increases (decreases) when equity

similar

EBITDA Multiple: 11.5 times

indices of comparable listed companies of the target arecompanies

PBR: 0.9-2.1 times

high (low)income(Securities)
EBIT Multiple: Corporate Value/EBIT
EBITDA Multiple: Corporate Value/EBITDAPBR: Price Book Value Ratio－22－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 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 March 31, 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

-

307

-

307

-

307

-

307

17,795-

4,804

22,599

-

-

120

120

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

17,795-

4,924

22,719

Total

17,795307

4,924

23,026

-

2,941

-

2,941

-

2,941

-

2,941

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

－23－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 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

246

Balance at March 31, 2019

5,161

Balance at January 1, 2020

5,392

Disposals-

Losses recognized in other comprehensive income(468)

Balance at March 31, 2020

4,924

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 March 31, 2020
(Millions of yen)
Carrying amountLong-term loans payable and bonds

205,091

Fair value

Difference
204,469623

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 fair value measurement the financial instruments in the table above are as
follows:
a. Loans payable
Loans payable with variable interest rates are calculated 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 is calculated basedon the present value of future cash flows discounted using interest rates adjusted for 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 1of the fair value hierarchy and bonds without quoted market prices are classified into level 2.

－24－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 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.

11. 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 first quarter, cost of sales, selling, general and administrative
expenses decreased by 2,170 million yen.
12. 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 first quarter of the current year and prior year is as follows.

Three months ended
March 31, 2019

Three months ended
March 31, 2020

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

(8,002)(5,690)Weighted-average shares of ordinary share outstanding (in thousands)

180,975

179,351

Loss per share (yen)(44.22)(31.73)

13. Events after the reporting period
Not applicable.

－25－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 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.

－26－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 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－27－