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

Consolidated Financial Summary for
Fiscal Year Ended December 31, 2017 (Japanese Standard)
February 13, 2018
Listed company name: Coca-Cola Bottlers Japan Holdings Inc.
Code number: 2579
Delegate: Title: Representative Director & President
Contact: Title: Head of Controllers Senior Group Division, Finance

Listed stock exchanges: Tokyo and Fukuoka
URL: https://en.ccbj-holdings.com/
Name: Tamio Yoshimatsu
Name: Masakiyo Uike
Phone: +81-3-6896-1707

Expected date of general shareholders meeting: March 27, 2018
Expected date of the dividend payments: March 28, 2018
Expected date of submission of annual securities report: March 28, 2018
FY 2017 supplementary information: Yes
FY 2017 financial presentation: Yes(Fractions of one million yen are rounded down)

1. Consolidated financial results for the fiscal year ended December 31, 2017 (from January 1, 2017 to December 31, 2017)(Percentages indicate changes over the same period in the prior fiscal year)(1) Consolidated financial results
Net revenues
Year ended

Dec. 31, 2017
Dec. 31, 2016

Operating income

Net profit attributable toshareholders of parent

Recurring income

million yen%

million yen%

million yen%

million yen%

872,623
460,455

89.5
4.5

40,57921,143

91.9
48.3

39,85920,602

93.5
50.1

25,2445,245

381.3(47.4)

Note: Comprehensive income
Fiscal Year 2017: 31,976 million yen 536.7%

Earnings per
share
Dec. 31, 2017
Dec. 31, 2016

Fiscal Year 2016: 5,022 million yen (55.2)%

Diluted earnings
per share

ROE

Operating income
margin

ROA

yen

yen

%

%

%

144.26
48.05

－
－

5.7
2.0

6.3
5.5

4.7
4.6

Reference: Equity income of unconsolidated subsidiaries and affiliates
Fiscal Year 2017: 61 million yen
Fiscal Year 2016: 199 million yen(2) Consolidated financial position
Total assets

Net assets (excl. minority Net assets (excl. minority
interests) to total assetsinterests) per share

Net assets

As ofmillion yen

million yen%

yen

Dec. 31, 2017
Dec. 31, 2016

883,918
377,468

627,485
261,17370.9
69.1

3,070.01
2,389.28

Reference: Net assets (excl. minority interests)
Fiscal Year 2017: 627,058 million yen

Fiscal Year 2016: 260,758 million yen(3) Consolidated cash flows
Net cash from (used in)
Financing activities

Cash and cash
equivalents at end of
periodOperating activities

Investing activities

Year ended

million yen

million yen

million yen

million yen

Dec. 31, 2017
Dec. 31, 2016

72,45034,388(41,090)(19,921)(26,159)(7,546)

118,741
86,727

2. Dividends(Record date)

1Q

Dividends per share
Year2Q
3Q
end

AnnualTotal dividend
payments（annual）

Dividend
payout ratio(consolidated)

Ratio of dividends
to net assets(consolidated)Year ended

yen

yen

yen

yen

yen

million yen%%

Dec. 31, 2016
Dec. 31, 2017
Dec. 31, 2018
(forecast)

－
－

22.00
22.00

－
－

24.00
22.00

46.00
44.00

5,020
8,987

95.7
30.5

1.9
1.6

－

25.00

－

25.00

50.00

Note:

End of 2Q FY 2016 dividend
FY 2016 ending dividend

35.5: an ordinary dividend of 21.00 yen, a commemorative dividend of 1.00 yen: an ordinary dividend of 23.00 yen, a commemorative dividend of 1.00 yen3. Forecast of consolidated financial results 2018 (from January 1, 2018 to December 31, 2018)(Percentages indicate changes over the same period in the prior fiscal year)

Net profit attributable
Operating income Recurring income to shareholders ofparentNet revenues

Full year 2018

Earnings
per share

million yen%

million yen%

million yen%

million yen%

Yen

1,007,300

15.4

49,70022.5

47,90020.2

28,80014.1

141.00Notes(1) Changes in significant subsidiaries during the current period: Yes(Changes in specified subsidiaries resulting in change in scope of consolidation)
Newly included: One (Coca-Cola East Japan Co., Ltd.)
Excluded: None
Note: Please refer to “3. Consolidated Financial Statements and Notes (5) Notes to Consolidated
Financial Statements (Basis of Presentation of the Consolidated Financial Statements)” on page 14 fordetails.
(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period
financial statements after error corrections
1) Changes in accounting policies due to revisions to accounting standards and other regulations : None
2) Changes other than those in 1) above: Yes3) Changes in accounting estimates: Yes4) Restatement of prior period financial statements after error corrections: None(3) Number of outstanding shares (common shares)
1) Number of outstanding shares at the end of period (including treasury shares):
FY 2017: 206,268,593 shares
FY 2016: 111,125,714 shares
2) Number of treasury shares at the end of period:
FY 2017: 2,015,532 shares
FY 2016: 1,989,069 shares
3) Average number of outstanding shares during the period:
FY 2017: 174,990,952 shares
FY 2016: 109,137,811 shares
Note: The total number of outstanding shares increased by 95,142,879 to 206,268,593 as of April 1, 2017
in connection with the integration with Coca-Cola East Japan Co., Ltd.
(Reference) Summary of the Non-consolidated Financial Results
1. Non-consolidated financial results for the fiscal year ended December 31, 2017 (from January 1, 2017 to December 31, 2017)(1) Non-consolidated financial results(Percentages indicate changes over the same period in the prior fiscal year)

Operatingrevenue

Net revenues
Year ended

Dec. 31, 2017
Dec. 31, 2016

million yen% million yen

82,139 (78.7)
385,889
4.2

11,565－

Earnings per share
Dec. 31, 2017
Dec. 31, 2016

Operating income

Recurring income%

million yen%

million yen%

million yen

%

－
－

2,877
12,763(77.5)
62.2

6,086
14,647(58.4)
37.0

4,990
12,034(58.5)
72.4

Diluted earnings per share
yen

yen

28.51
110.26－－

Profit(2) Non-consolidated financial position
Total assets

Net assets

Net assets (excl. minority
interests) to total assets

Net assets(excl. minority interests)
per share

As ofmillion yen

million yen%

yen

Dec. 31, 2017
Dec. 31, 2016

475,219369,792

405,241
252,75085.3
68.3

1,984.01
2,315.90

Reference: Net assets (excl. minority interests)
Fiscal Year 2017: 405,241 million yen

Fiscal Year 2016: 252,750 million yen* These Consolidated Financial Results are outside the scope of audit.
* Explanation regarding appropriate use of the forecast, other special instructions
Figures in the above forecast are based on information available to management at the time ofannouncement.
Due to number of inherent uncertainties in the forecast, actual results may differ materially from theforecast. Furthermore, please refer to “1. Overview of Operating Results, etc. (1) Analysis of Operating
Results (Outlook)” on page 3 for matters relating to performance forecasts.

Table of contents
Page
Attachment
1. Overview of Operating Results, etc. …………………………………………………………………………………………
(1) Analysis of Operating Results ……………………………………………………………………………………………
(2) Analysis of Financial Position ……………………………………………………………………………………………
(3) Basic Policies for Profit Distribution and Dividends for FY2017 and FY2018………………………………………….
2. Basic Concept Concerning the Selection of Accounting Standards………………………………………………………….
3. Consolidated Financial Statements and Notes ……………………………………………………………………………….
(1) Consolidated Balance Sheets …………………………………………………………………………………………….
(2) Consolidated Statements of Income and Comprehensive Income ……………………………………………………….
Consolidated Statements of Income ……………………………………………………………………………………
Consolidated Statements of Comprehensive Income ………………………………………………………………….
(3) Consolidated Statements of Changes in Equity …………………………………………………………………………
(4) Consolidated Statements of Cash Flows ………………………………………………………………………………..
(5) Notes to Consolidated Financial Statements ……………………………………………………………………………
(Notes Relating to Assumptions for the Going Concern) ……………………………………………………………..
(Basis of Presentation of the Consolidated Financial Statements) ……………………………………………………
(Changes in Accounting Policies, etc.) ………………………………………………………………………………..
(Changes in Presentation) ……………………………………………………………………………………………..
(Additional Information) ………………………………………………………………………………………………
(Relating to Consolidated Balance Sheet)……………………………………………………………………………..
(Relating to Consolidated Statements of Income)……………………………………………………………………..
(Relating to Consolidated Statements of Comprehensive Income) …………………………………………………..
(Relating to Consolidated Statements of Changes in Equity) …………………………………………………………
(Relating to Consolidated Statement of Cash Flows)…………………………………………………………………
(Segment Information, etc.) …………………………………………………………………………………………..
(Tax Effect Accounting) ………………………………………………………………………………………………
(Financial Instruments) ……………………………………………………………………………………………….
(Other Marketable Securities) ………………………………………………………………………………………..
(Retirement Benefit) ………………………………………………………………………………………………….
(Business Combination Related) …………………………………………………………………………………….
(Information of Related Parties) ………………………………………………………………………………………
(Per Share Information) ……………………………………………………………………………………………….
(Significant Subsequent Events) ………………………………………………………………………………………
4. Others ………………………………………………………………………………………………………………………
Changes in Key Consolidated Management Indicators ……………………………………………………………………

1

2
2
4
5
5
6
6
8
8
9
10
12
14
14
14
16
17
17
17
18
20
21
22
23
28
29
33
35
37
40
42
42
44
44

1. Overview of Operating Results, etc.
(1) Analysis of Operating Results(Qualitative Information on the Consolidated Operating Results)
The Japanese economy continued to show a modest recovery with continued improvement of the job market and income
situation as well as positive indicators of consumer sentiment and consumer spending during the fiscal year ended December
31, 2017.
In the soft drink industry, the market remained almost flat in terms of sales volume compared to the previous year, reflecting
poor weather during the summer peak season in eastern Japan, and continued wet and colder weather across much of thecountry later in the year. Continued roll-outs of FOSHU (Food for Specific Health Usage), functional-claim and other valueadded products by various industry players have helped to offset this negative impact of weather on industry volume
performance.
The health food industry continues to grow with an intensified competitive environment, supported by launches offunctional-claim food products and a stream of market entrants from other industries driven by demand from health-conscious
consumers. In the cosmetics industry, consumer needs continue to diversify and the demand from inbound tourism has also
contributed to industry growth.
In this operating environment, in order to pursue new business opportunities and realize sustainable growth, Coca-Cola
Bottlers Japan Inc. (currently, Coca-Cola Bottlers Japan Holdings Inc., the Company) was formed through the businessintegration of Coca-Cola West (CCW) and Coca-Cola East Japan Co., Ltd. (CCEJ) effective April 1, 2017 through a
combination of a share exchange and an absorption-type company split.
The Company announced its medium-term business plan, the “Growth Roadmap for 2020 & Beyond” for the period up to2020, which sets forth the Company’s strategic initiatives, namely profitable revenue growth, integration synergies,
establishment of a new operating model and a holistic financial framework to create shareholder value while investing inpeople capability development and shared value with local communities. The Company will focus on these initiatives toachieve sustainable growth, leverage the synergy effects of the business integration, and continue to lead the domestic softdrink industry.
Following the initiatives of the medium-term business plan, in 2017 the Company has focused on strengthening profitability
and establishing a solid foundation for growth in 2018 and beyond while integrating with speed. Following are highlights ofthe deliverables this fiscal year.
•
Net profit attributable to shareholders of parent increased 381.3% versus prior year driven by the business integration,•with pro forma net income grew 61.8% versus prior year
Generated first year integration synergies and cost savings in line with plan••

Functionally managed since Day One (First date of the business integration)
Started company-wide implementation and deployment of ERP system, CokeOne+••

Strategic vending project in place and actively working to transform the vending channel from end-to-end
Integrated Business Systems function was newly established to strengthen the key IT function••

Key Account Management function was newly established to integrate sales activities for nation-wide customers
Regional sales organizations in place as of January 1, 2018 to tailor sales and marketing activities to each region based•on our community-based and customer focused operating principles
Re-organized, optimized and simplified the Company group’s legal entity structure ahead of plan, including integrationofCoca-Cola business operating companies, etc. The number of legal entities decreased from 25 on Day One to 16 on
January 1, 2018

The summary of financial results for this fiscal year is as follows.

2

<Net Revenues>
Full-year consolidated net revenues of Coca-Cola business increased by 414,491 million yen to 842,885 million yen (up96.8%) year on year, primarily due to the business integration of CCW and CCEJ effective as of April 1, 2017. Consolidated
net revenues of the healthcare & skincare business fell by 2,324 million yen to 29,737 million yen (down 7.2%) year on year
mainly due to the delay of launching new products. As a result, the total consolidated net revenues increased by 412,167
million yen to 872,623 million yen (up 89.5%) year on year.
<Operating Income and Recurring Income>Full-year consolidated operating income of Coca-Cola business increased by 19,053 million yen to 37,422 million yen (up103.7%) year on year, due to an increase in net revenues led by the business integration described above as well as a decreaseof expenses brought by synergy and cost-savings initiatives across both CCW and CCEJ as well as the change in depreciation
method for fixed assets. Consolidated operating income in the healthcare & skincare business increased by 382 million yen to3,156 million yen (up 13.8%) year, due to a diligent focus on cost reductions, which offset the negative impact of lower sales.
As a result, the total consolidated operating income for full-year increased by 19,435 million yen to 40,579 million yen (up91.9%) year on year.
93.5%) year on year.

Furthermore, consolidated recurring income increased by 19,257 million yen to 39,859 million yen (up<Net Profit Attributable to Shareholders of Parent>
Net profit attributable to owners of parent for full-year increased by 19,999 million yen to 25,244 million yen (up 381.3%)
year on year, mainly due to an increase in recurring income, etc. as we cycled certain extraordinary expenses in the prior year.
<Reference>
As a reference, the Company also provides pro-forma results, assuming the business integration of CCW and CCEJ fromJanuary 2017 and estimating 2016 results using the same standard. Full-year pro-forma net revenue decreased by 21,140
million yen to 991,563 million yen (down 2.1%) year on year, mainly impacted by a decrease of sales volume partly driven bypoor weather and continued softness in the vending channel. Our proactive focus on driving value through smaller package
sizes has also impacted volume growth. Full-year pro-forma operating income increased by 1,704 million yen to 42,104
million yen (up 4.2%) year on year driven by cost reductions in manufacturing as well as generating integration synergies inthe soft drink business, etc. Full-year pro-forma net profit attributable to shareholders of parent was 9,869 million yen, up
25,836 million yen (up 61.8%) year on year.
Supplementary earnings presentation material has been posted to the Company website (https://en.ccbj-hodings.com/ir/) inadvance of its 2017 full-year earnings presentation to analysts, scheduled at 1:30 pm on Wednesday, February 14, 2018. A
live webcast and on-demand replay will also be available on the website.
(Outlook)
Although the future outlook of the beverage industry is somewhat positive with consumer spending showing signs of recovery,
we expect the market competition to continue intensifying due to aging population and further diversification of customer andconsumer needs.
We will mainly focus on three strategic pillars: “Growth”, ”Synergies and Efficiency” and ”Operating Structure” to further
expand our Coca-Cola business and our healthcare and skincare businesses.
We will focus on driving the revenue growth of our Coca-Cola business with improved profitability by strengthening our“community-based”, “customer-centric” sales activities through segmentation of our business territory into six regions andmarket execution carried out exhaustively in each region according to marketing plans tailored to meet the area-specific needs.
In addition, we will build a vending business model that enhances our competitive advantage in this line of business byprioritizing on developments that lead to increased productivity and operational efficiency, while continuing to transform thecurrent business model from a mid- to long-term perspective. We will also invest in projects and initiatives that will ensure oursustainable growth by generating synergy through business integration and using it as the source of our capital expenditure.
The demand for healthcare and skincare products is on the rise, adding momentum to the expansion of the market size.
However, competition is expected to get tougher as more players from other industries make forays into these markets. Amidsuch circumstances, we plan to bolster our business by developing new hit products that respond effectively to the growing
demand from extension of healthy life expectancy and other consumer needs. We will also revisit our marketing andcommunication strategies to make our products more visible to a wider consumer base.
3

Through these strategic moves, we expect our consolidated net sales to grow to 1,007.3 billion yen (up 15.4% from thecurrent fiscal year), operating income to 49.7 billion yen (up 22.5%), ordinary income to 47.9 billion yen (up 20.2%) and net
income attributable to parent company shareholders to 28.8 billion yen (up 14.1% from the same period).
(2) Analysis of Financial Position
Total assets at the end of the consolidated fiscal year under review increased 506,449 million yen from the end of the previous
consolidated fiscal year, to 883,918 million yen (up 134.2% year on year). This is mainly attributable to consolidation of CocaCola East Japan Co., Ltd. in connection with the business integration.
Total liabilities at the end of the consolidated fiscal year under review were 256,432 million yen, an increase of 140,136
million yen compared to the end of the previous consolidated fiscal year (up 120.5% year on year). The primary factor was theimpact from the newly consolidated company mentioned above.
Net assets at the end of the consolidated fiscal year under review stood at 627,485 million yen, an increase of 366,312 million
yen from the end of the previous consolidated fiscal year (up 140.3% year on year), primarily reflecting an increase in othercapital surplus in connection with the issuance of new shares as part of the business integration.
The status of each type of cash flow for the consolidated fiscal year under review is as follows.

The Company’s cash anddeposits were increased by 26.798 million yen due to Coca-Cola East Japan Co., Ltd. becoming a wholly owned subsidiarythrough a share exchange.
<Cash Flow from Operating Activities>
Cash generated from operating activities in this consolidated fiscal year was 72,450 million yen, an increase of 38,061 million
yen compared with the previous consolidated fiscal year, mainly resulting from impacts from Coca-Cola East Japan Co., Ltd.
becoming a wholly owned subsidiary as part of the business integration.
<Cash Flow from Investing Activities>
Cash used for investing activities in this consolidated fiscal year was 41,090 million yen (cash used for investing activities lastyear was 19,921 million yen) an increase of 21,169 million yen compared with the previous consolidated fiscal year, mainly
due to expenditure for purchase of non-current assets.
<Cash Flow from Financing Activities>
Cash used for financing activities in this consolidated fiscal year was 26,159 million yen (cash used for financing activities lastyear was 7,546 million yen), an increase of 18,613 million yen compared with the previous consolidated fiscal year, mainly due
to payment for the redemption of corporate bonds.
As a result of these activities, cash and cash equivalents at the end of the consolidated fiscal year under review increased by
32,013 million yen from the end of the previous consolidated fiscal year, to 118,741 million yen (up 36.9% year on year).

4The trend of cash flow indicators on the consolidated base is as follows.
For the fiscal
year ended
December 31,
2013

For the fiscal
year ended
December 31,
2014

For the fiscal
year ended
December 31,
2015

For the fiscal
year ended
December 31,
2016

For the fiscal
year ended
December 31,
2017

Shareholders’ equity ratio

(%)

68.8

75.2

68.9

69.1

70.9

Shareholders’ equity ratio at
market value

(%)

64.9

53.8

70.9

99.6

95.1

Cash flow/interest bearing
liabilities ratio

(%)

1.5

0.9

1.3

1.5

1.1

66.0

50.8

97.2

72.6

128.3

Interest coverage ratio (times)(Notes) Each indicator is calculated based on consolidated financial figures with the following formula.
• Shareholders’ equity ratio: Shareholders’ equity / Total assets• Shareholders’ equity ratio at market value: Market capitalization / Total assets
Market capitalization is calculated by multiplying the closing share price at the end of the fiscal year with thenumber of outstanding shares (excluding treasury shares)• Cash flow / interest bearing liabilities ratio: Interest-bearing debt / Operating cash flow
Interest-bearing debt includes all liabilities requiring the payment of interest under the liabilities section of theconsolidated balance sheet such as loans.
Operating cash flow uses net cash provided by operating activities on the consolidated cash flow statements.
• Interest coverage ratio: Cash flow from operating activities / Payment of interest
Payment of interest equal the amount of interest paid on the consolidated cash flow statements.
(3) Basic Policies for Profit Distribution and Dividends for FY2017 and FY2018
CCBJH sets its basic policy regarding profit sharing onto active redistribution of the profits, while placing the highest priority
onto paying dividends in a stable manner, and has been paying dividends from surplus twice a year upon interim and year-end
dividend payout by considering business performance and internal reserves from a comprehensive perspective. CCBJH stipulates
in its Articles of Incorporation that interim dividends can be paid by the resolution made by the Board of Directors as of June 30
each year. Therefore, the function which determines the dividends from surplus will be the General Meeting for Shareholders forthe year-end dividends, and the Board of Directors for the interim dividends.
The dividends for the year ending in December 2017 shall be paid for the amount no less than the dividends per share paid forthe year ending in December 2016 for former Coca-Cola West Co., Ltd. and former Coca-Cola East Japan Co., Ltd.
(commemorative dividends not included), and the year-end dividend is assumed to be 22 yen per share. (The amount of annual
dividends is assumed to be 44 yen per share by adding the interim dividends of 22 yen per share, which has already been paid.)
Future dividends after IFRS transition (expected in Q4 FY 2018) shall be paid for the approximate amount of 30% or more fornet profit attributable to owners of the parent company additionally to the policy described above. As for the dividends for theyear ending in December 2018 (forecast), by taking the basic policy shown above and the forecast for business performance forthe year ending in December 2018 into consideration, the amount of interim dividends is assumed to be 25 yen per share,
increased by 3 yen, and the amount of year-end dividends is assumed to be 25 yen per share, increased by 3 yen, and the amountof annual dividends is assumed to be 50 yen per share, increased by 6 yen.
The Company periodically reviews its capital structure & dividend payout ratio to maximize shareholder returns while
maintaining flexibility to pursue expansion opportunities. The Company seeks to use retained earnings to fund investment forsustainable growth for our business and further enhancement of corporate value.

2.

Basic Concept Concerning the Selection of Accounting Standards
The Group plans to disclose consolidated financial statements based on the International Financial Reporting Standards (IFRS)
from the fiscal year ending December 2018, with a view to enhancing the international comparability of financial statements andcontributing to the improved convenience for shareholders and investors of the Company.

53. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheets(Millions of yen)
As of December 31, 2016

AssetsCurrent assets
Cash and deposits
Trade notes and accounts receivable
Marketable securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation

Machinery, equipment and vehicles, net
Sales equipment
Accumulated depreciation

Sales equipment, net
LandConstruction in progress
Other
Accumulated depreciation

Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Franchise intangible
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets

Retirement benefit assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets

6

As of December 31, 2017

63,849101,858※１ 29,649※１ 69,266

23,112
27,279
652
1,998
2,572
14,761(287)
163,587

17,00054,357
267
7,323
3,777
32,499(376)
285,974※２ 119,786※２ 166,298(88,623)
31,162※２ 132,477(109,788)
22,688145,559(105,560)
39,999※２ 62,128
5
12,452(10,622)
1,829
157,815(93,152)
73,145※２ 181,539(114,157)
67,382
213,367(101,566)
111,800※２ 151,375
591
16,296(10,399)
5,897
410,192

22,668－4,889
27,55776,55750,09814,437141,092※３ 20,144※３ 31,792

1,367
123
7,392
(519)
28,508
213,881
377,468

2,448
257
13,119(958)
46,659597,944883,918

(Millions of yen)
As of December 31, 2016

Liabilities
Current liabilities
Trade notes and accounts payable
Current portion of long-term borrowings
Accrued income taxes
Other accounts payable
Provision for sales and promotion expenses
Provision for bonuses
Provision for directors’ bonuses
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term loans payable
Deferred tax liabilities
Net defined benefit liability
Liabilities for directors' and corporate
auditors' retirement benefits
Provision for environmental measures

As of December 31, 201715,990※２ 17
5,717
25,042
308
－
－
8,662
55,739

Other
Total non-current liabilities

Total liabilities
EquityShareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income
Net unrealized gains(loss) on othermarketable securities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
Net assets
Total liabilities and equity

7

40,496※２ 1,817

8,356
55,410
427
2,521
134
17,193
126,357

50,00066,000※２ 183※２ 12,031

2,965
3,505

26,19820,358

191

30

－
3,709
60,556116,295

90
5,365
130,075
256,432

15,231109,072
137,404(4,593)
257,114

15,231
450,568
155,535(4,692)
616,642

4,092

6,886

77
(3)
(522)

590
12
2,926

3,643

10,416414
261,173
377,468426
627,485
883,918

(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statements of Income)(Millions of yen)

For the year ended
December 31, 2016

Net revenues
Cost of goods sold
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Share of profit of investees equity-method
Gain on sale of property plant and equipment
Gain on sales of valuable wastes
Rent income
Other
Total non-operating income
Non-operating expenses
Interest expense
Investment loss on equity method
Other
Total non-operating expenses
Recurring income
Extraordinary income
Gain on sale of property plant and equipment
Gain on sale of investment securities
Gain on step acquisitions
Total extraordinary income
Extraordinary loss
Impairment loss

Loss on disaster
Loss on impairment of investment securities
Loss on valuation of golf club membership

Loss on abandonment of inventories
Business integration-related expenses
Total extraordinary loss
Income before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Net profit
Net profit (loss) attributable to non-controlling interests

Net profit attributable to owners of the company

8

For the year ended
December 31, 2017

460,455
221,844
238,611※１,※２ 217,467
21,143872,623
422,373450,249※１,※２ 409,669
40,579

48
410
199
27
116
124
311
1,239

17
453
61
46
296
354
246
1,475

468
746
565
1,780
20,602

539
940
715
2,195
39,859※３ 921※３ 489

209
－
1,131

368
53
910

※４ 6,857※４ 598

1,081
156
－
930
－
9,025
12,707
7,039
364
7,404
5,303
58
5,245

－
－
28
－
903
1,530
39,24012,985
1,051
14,03625,203(40)
25,244

(Consolidated Statements of Comprehensive Income)(Millions of yen)

For the year ended
December 31, 2016
Net profit
Other comprehensive income
Net unrealized gains (loss) on marketable securities

Deferred gains or losses on hedges
Foreign currency translation adjustments
Remeasurements of defined benefits
Share of other comprehensive income of investees
equity-method

Total other comprehensive income
Comprehensive income
Comprehensive income attributable to owners of
the parent
Non-controlling interests

9

For the year ended
December 31, 2017
5,303

25,203(1,125)
－
(20)
592

2,794
537
15
3,416

272

8

※ (280)※ 6,772

5,022

31,976

4,964

32,01758(40)

(3) Consolidated Statements of Changes in Equity
For the year ended December 31, 2016
(Millions of yen)
Shareholders’ equity
Capital stock

Capital surplus

Retained earnings

Total shareholders’equityTreasury stock

15,231109,072

136,851(4,586)

256,569

Dividends of surplus

－

－

－

Net profit attributable toowners of the company－－(4,692)
5,245－(4,692)

Purchase of treasury shares

－

－

－

(6)

Disposal of treasury shares

－

－

0

0

(6)

Net changes of items otherthan shareholders’ equity

－

－

－

－

－

Total changes of items during
periodBalance as of December 31,
2016

－

－

552

545

15,231109,072

137,404(6)

Balance as of January 1, 2016
Changes of items during period

5,245

0

(4,593)

257,114

Accumulated other comprehensive incomeNet
unrealized
gains(loss)
on othermarketablesecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Total
Remeasurement accumulatedsotherof definedcomprehensiv
benefit planseincomeNon-controllinginterests

Total equity

5,217

(177)

17

(1,132)

3,924

384

260,878

Dividends of surplus

－

－

－

－

－

－

Net profit attributable toowners of the company

－

－

－

－

－

－

(4,692)

Purchase of treasury shares

－

－

－

－

－

－

Disposal of treasury shares

－

－

－

－

－

－

Net changes of items otherthan shareholders’ equity(1,125)

255

(20)

609

(280)

30

4,092

77

(3)

(522)

3,643

414

Balance as of January 1, 2016
Changes of items during period

Total changes of items during
periodBalance as of December 31,
2016(1,125)

255

(20)

10

609

(280)

30

5,245

(6)
0

(250)
295

261,173

For the year ended December 31, 2017
(Millions of yen)
Shareholders’ equity
Capital stock

Capital surplus

Retained earnings

Total shareholders’equityTreasury stock

15,231109,072

137,404(4,593)

257,114

Dividends of surplus

－

－

－

Net profit attributable toowners of the company－－(7,113)25,244－(7,113)Purchase of treasury shares

－

－

－

Disposal of treasury shares

－

5

－

(111)

(111)

Change in treasury shares ofparent arising fromtransactions with noncontrolling shareholders

－

(72)

－

－

(72)

Increase by share exchanges－

341,562－－

341,562

Net changes of items otherthan shareholders’ equity

－

－

－

－

－

Total changes of items during
periodBalance as of December 31,
2017－341,496

18,131

359,527

15,231

450,568

155,535(99)

Balance as of January 1, 2017
Changes of items during period

25,24411

17(4,692)

616,642

Accumulated other comprehensive incomeNet
unrealized
gains(loss)
on othermarketablesecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Total
Remeasurement accumulatedsotherof definedcomprehensiv
benefit planseincomeNon-controllinginterests

Total equity

4,092

77

(3)

(522)

3,643

414

261,173

Dividends of surplus

－

－

－

－

－

－

Net profit attributable toowners of the company

－

－

－

－

－

－

(7,113)Purchase of treasury shares

－

－

－

－

－

－

Disposal of treasury shares

－

－

－

－

－

－

Change in treasury shares ofparent arising fromtransactions with noncontrolling shareholders

－

－

－

－

－

－

(72)

Increase by share exchanges

－

－

－

－

－

－

341,562

Net changes of items otherthan shareholders’ equity

2,794

512

15

3,449

6,772

12

6,785

2,794

512

15

3,449

6,772

12

366,312

6,886

590

12

2,926

10,416426

627,485

Balance as of January 1, 2017
Changes of items during period

Total changes of items during
periodBalance as of December 31,
2017

11

25,244(111)
17

(4) Consolidated Statements of Cash Flows(Millions of yen)

For the year ended
December 31, 2016
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in provision for directors’ bonuses
Increase (decrease) in provision for directors’
retirement benefits
Increase (decrease) in net defined benefit liability
Decrease (increase) in net defined benefit asset
Interest and dividends income
Interest expense
Share of (profit) loss of entities of equity-method
investees
Loss (gain) on sales of short-term and long-term
investment securities
Loss (gain) on valuation of short-term and long-term
investment securities
Loss (gain) on sales of non-current assets
Loss on retirement of non-current assets
Gain on step acquisitions
Loss (gain) on step acquisitions
Decrease (increase) in inventories
Decrease (increase) in other assets
Increase (decrease) in notes and accounts payabletrade
Increase (decrease) in other liabilities
Other
Cash provided by operating activities
Interest and dividends received
Interest expenses paid
Income taxes paid
Income taxes refund
Net cash provided by operating activities
Cash flows from investing activities
Purchase of short-term and long-term investment
securities
Proceeds from sales and redemption of short-term andlong-term investment securities
Purchase of intangible assets
Proceeds from sales of non-current assets
Purchase of shares of subsidiaries and associates
Payments of long-term loans receivableCollection of long-term loans receivable
Payments into time deposits
Proceeds from withdrawal of time deposits
Other
Net cash used in investing activities

For the year ended
December 31, 201712,707
17,491
6,857
2,302
－

39,24037,352
598
3,989
124

27

(297)

1,003
(123)
(459)
468

(199)

(61)

(209)

(368)

(893)
875
－
437
711
(128)

(525)
585
(53)
(3,826)
8,611
282

160
(89)
37,553459(473)(3,918)767
34,388(881)
591
81,807470(564)(10,488)
1,225
72,450

(257)

(130)

876

608

(23,347)
2,304
(3)
(453)
959
(160)
167
(6)
(19,921)(43,104)
1,605
－
(79)
44
(155)
165
(44)
(41,090)156(3,542)

12

(215)
(134)
(470)
539

－

(3,274)

(Millions of yen)

For the year ended
December 31, 2016
Cash flows of financing activities
Proceeds from short-term loan
Repayments of short-term loans payable
Proceeds from long-term loan
Repayments of long-term loans payable
Redemption of bonds
Purchase of treasury shares
Proceeds from sales of treasury shares
Purchase of treasury shares of subsidiaries
Cash dividends paid
Dividends paid to non-controlling interests
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Other
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Increase (decrease) in cash and cash equivalents resulting
from change of scope of consolidation
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents from newly
consolidated subsidiary
Cash and cash equivalents at end of period

For the year ended
December 31, 2017－－－
(2,517)－(6)
0－(4,692)
(28)
－

8,000
(10,000)
28(2,070)(14,000)
(111)
21
(7)
(7,113)(29)(300)(7,546)(470)(26,159)

6,899

5,215

79,82886,727－※２ 26,798※１ 86,727※１ 118,741

(20)

13

(409)

15

(5) Notes to Consolidated Financial Statements(Notes Relating to Assumptions for the Going Concern)
Not applicable.
(Basis of Presentation of the Consolidated Financial Statements)
1. Matters on the scope of consolidation
Number of consolidated subsidiaries: 24
Key consolidated subsidiaries:
Coca-Cola East Japan Co., Ltd.
Coca-Cola West Company, Limited
Shikoku Coca-Cola Bottling Co., Ltd.
Q’ sai Co., Ltd.
From the first quarter of this consolidated accounting period, the consolidated subsidiary, Pacific Ace Nishinihon Co.,
Ltd., has been excluded from the scope of consolidation, in conjunction with the implementation of absorption-typemerger of Pacific Ace Nishinihon Co., Ltd. by the consolidated subsidiary, Nishinihon Beverage Co., Ltd., effective asof January 1, 2017
Accompanying Coca-Cola East Japan Co., Ltd. becoming a wholly owned subsidiary company through a shareexchange on April 1, 2017, that company and two subsidiaries were included in the scope of consolidation. Furthermore,as Coca-Cola East Japan Co., Ltd. owns the shares of Coca-Cola Business Sourcing Company, Limited, Coca-ColaBusiness Integrated Business Systems Co., Ltd., Coca-Cola Customer Marketing Co., Ltd., and FV Corporation Co.,
Ltd., and the share ownership ratio of the Group has increased, these four companies have been included in the scope of
consolidation from the second quarter of FY 2017.
2. Matters on the application of the equity method(1) Number of affiliates accounted for using the equity method: 2
Affiliates accounted for using the equity method
APEX Nishi-Nihon Corporation
Resources Co., Ltd.
As the four companies of Coca-Cola Business Sourcing Company, Limited, Coca-Cola Business Integrated Business
Systems Co., Ltd., Coca-Cola Customer Marketing Co., Ltd., and FV Corporation Co., Ltd. were included in the scopeof consolidation from the second quarter of FY 2017 accompanying Coca-Cola East Japan Co., Ltd. becoming awholly owned subsidiary company through a share exchange on April 1, 2017, they have been excluded from thescope of equity method application.
(2) Number of affiliates not accounted for using the equity method: 1
Affiliate not accounted for using the equity method
TEAMS Co., Ltd.
TEAMS Co., Ltd. became an affiliate not accounted for using the equity method as the Company acquired shares in
TEAMS Co., Ltd. on March 30, 2017.
(3) Reason for not applying the equity method
The affiliate not accounted for using the equity method is excluded from the scope of the application of the equity
method because its impact on the consolidated financial statements is considered to be minor in terms of factors such as
net income or loss and retained earnings that correspond to the propotion of the interest held by the Company, andimmaterial as a whole.
3. Matters on the fiscal year, etc. of consolidated subsidiaries
The end of the fiscal year of all consolidated subsidiaries is consistent with the consolidated closing date.
4. Matters on accounting standards(1) Evaluation criteria and methods for important assets
a. Marketable securities(a) Bonds held to maturity
Amortized method (fixed cost method) is adopted.
(b) Other marketable securitiesThose with market value
The market value method (valuation difference is treated entirely by the equity method and cost of sales iscalculated by the moving average method) based on the market price etc. at the end of the current consolidated
fiscal year is adopted.
Those without market value

14

Mainly, the cost method based on the moving average method is adopted.
b. Derivatives
The market value method (excluding those for which the appropriation treatment is applicable) is adopted.
c. Inventory assets(a) Merchandise, finished goods, work in progress and raw materials
Mainly, cost method (method of devaluing book value based on declining profitability with respect to thebalance sheet value) based on the gross average method is adopted.
(b) Supplies
Mainly, cost method (method of devaluing book value based on declining profitability with respect to thebalance sheet value) based on the moving average method is adopted.
(2) Method of depreciation of important depreciation assets
a. Tangible fixed assets (excluding lease asset)(a) Sales equipment
It is based on the fix cost method, and the main service life is 9 years.
(b) Other than sales equipment
Mainly using the fix cost method, the main service lives are as follows.
Buildings and structures
3 to 60 years
Machinery, equipment and vehicles 4 to 20 years
b. Intangible assets (excluding lease asset)
Using the fix cost method, the main service lives are as follows.
Software5 years (estimated internal usable life)
Franchise intangible
20 yearsc. Lease asset
The fix cost method is adopted, with the lease term as the service life and the residual value as zero.
(3) Criteria for recording significant allowancesa. Allowance for doubtful accounts
In order to prepare for losses on bad debts such as accounts receivable, loans receivable, etc., for general
receivables, based on the historical bad debt ratio; for specific claims such as doubtful receivables, the Company
individually considers the possibility of collection, and records the estimated amount of uncollectible amount.
b. Allowance for bonuses
In order to prepare for the payment of bonuses for employees, the Company records an estimated payment amountthat has been incurred for this consolidated fiscal year.
c. Allowance for officers’ bonuses
In order to prepare for the payment of bonuses for officers, the Company records an estimated payment amount asof the end of this consolidated fiscal year.
d. Allowance for environmental measures
In order to prepare for disposing polychlorinated biphenyl waste kept in storage, the Company records anestimated accrued amount at the end of this consolidated fiscal year.
e. Provision for sales and promotion expenses
Based on the point program for sales promotion which is adopted in some consolidated subsidiaries, the Company
records the amount that is expected to be used in the future as of the end of this consolidated fiscal year, in order toprepare for use of points granted to customers.
f. Liabilities for directors’ retirement benefits
In order to prepare for the payment of directors’ retirement benefits, some consolidated subsidiaries record
estimated necessary amounts as of this consolidated fiscal year based on the internal regulations.
(4) Method of accounting related to retirement benefit
a. Period attribution method for the estimated amount of retirement
As for the method of assigning the estimated amount of retirement benefit for the period until the end of thecurrent consolidated fiscal year, benefit calculation formula is used when calculating the retirement benefit
obligations.
b. Cost processing method based on actuarial difference and past service cost
The Company carries out cost processing based on actuarial gains and losses amortized on a fix cost basis over a
fixed number of years (10 years in principle) within the average remaining service period of employees at the time of
their occurrence in each consolidated fiscal year from the following consolidated fiscal year of occurrence.
The Company carries out cost reduction processing, from the time of occurrence, based on the prior service cost
(reduction of liability) amortized by the fix cost method over a certain number of years (1 year) within the average
15

remaining service period of employees at the time of occurrence.
(5) Significant hedge accounting method
a. Method of hedge accounting
For forward foreign exchange contracts and merchandise swap transactions, deferral hedge accounting is adopted.
Foreign currency-denominated accounts payable with forward foreign exchange contracts are accounted for based on
the appropriation method.
In addition, foreign exchange contracts and transactions related to merchandise swaps are carried out at Coca-ColaBusiness Sourcing Co., Ltd., a consolidated subsidiary.
b. Hedging instruments and Hedged items.
(a) Hedging instruments: Foreign exchange contract
Hedged items: Foreign currency-denominated accounts payable due to import of raw materials and forecast
transactions in foreign currency(b) Hedging instruments: Merchandise swap
Hedged items: Selling prices of materials / raw materials and prices of finished goods
c. Hedging policy
In order to hedge foreign exchange risk associated with foreign currency-denominated accounts payable, theCompany makes forward foreign exchange contracts. The Company also engages in merchandise swap
transactions to hedge merchandise market fluctuation risk on merchandise purchase transactions.
d. Method of assessing hedge effectiveness
Effectiveness is evaluated by checking the correspondence relationship between the hedged items’ market pricefluctuation and the hedging instruments’ market price fluctuation.
(6) Method of good will amortization and amortization period
Goodwill is amortized on a straight-line basis over the period estimated to be effective (within 20 years afterrecording).
(7) Cash and cash equivalents in the consolidated cash flow statement
Funds (cash and cash equivalents) in the consolidated statements of cash flows consist of cash on hand, deposits thatcan be withdrawn at any time, and short term investments that can be easily converted into cash with maturities of threemonths or less from the date of purchase that are subject to insignificant risk of price fluctuations.
(8) Other significant matters for preparing consolidated financial statements
Accounting treatment of consumption tax, etc.
It is based on the tax exclusion method.

(Changes in Accounting Policies, etc.)(Changes in accounting policies that are difficult to distinguish from changes in accounting estimates, andchanges in accounting estimates)(Change in depreciation method and change in service life)
Previously, the Company and some of its consolidated subsidiaries mainly used the declining balancemethod to calculate depreciation of property, plant and equipment (excluding sales equipment and leased assets),
but we have switched to the straight-line method from the current consolidated fiscal year.
The business integration with Coca-Cola East Japan Co., Ltd. carried out as of April 1, 2017 gives us astronger business platform, and by bringing together the know-how in the areas of sales and manufacturing thatboth companies have cultivated over the past years it will allow us to create an optimal production structure
covering a wide geographical area. Consequently, as we expect to be able to benefit from the long-term, stable
use of property, plant and equipment (excluding sales equipment and leased assets), using straight-line
depreciation to distribute the expense over its service life will appropriately reflect the pattern of consumption of
economic benefits for such property, plant and equipment, so we have therefore decided to change ourdepreciation method to the straight-line method.
The Company and some of its consolidated subsidiaries also used the opportunity provided by the change inour depreciation method to conduct a utilization study. Previously, we had set the key service life of
manufacturing machinery and equipment at 10 years, but as a result of our study we have revised it to 7-20
years – a predicted economic life that more accurately reflects the reality of the situation – and have madechanges extending into the future.
We also took the opportunity provided by the change in our depreciation method for property, plant andequipment to devaluate the residual value of property, plant and equipment after the end of its service life to anominal value of one yen, from the current consolidated fiscal year.

16Compared to the previous method, the aforementioned changes have resulted in an increase in operating
income, recurring income and income before income taxes and minority interests of 1,374 million yen, 1,352
million yen and 1,364 million yen, respectively, for the current consolidated fiscal year.
Please refer to “3. Consolidated Financial Statements and Notes (5) Notes to Consolidated Financial
Statements (Segment Information, etc.)” for the impact on segment information.
(Change in Presentation)(Consolidated income statement)
In the previous consolidated fiscal year, since the “Gain on sales of valuable wastes” included in “Other” of“Non-operating income” exceeded 10/100 of the non-operating income, it is independently listed. In order to reflect
this change in the presentation method, the consolidated financial statement of the previous consolidated fiscal year
has been reclassified.
As a result, the Company has reclassified the consolidated income statement of the previous consolidated fiscal
year and 428 million yen listed in “Other” of “Non-operating income” is separately presented as “Gain on sales ofvaluable wastes” 116 million yen, and “Other” 311 million yen.
(Additional Information)(Application of Implementation Guidance on Recoverability of Deferred Tax Assets)“Implementation Guidance on Recoverability of Deferred Tax Assets” (ASBJ Guidance No. 26 dated March
28, 2016) is applied from the current consolidated fiscal year.
(Relating to Consolidated Balance Sheet)*1 Processing method of bills matured at the end of fiscal year
Bills matured at the end of fiscal year are settled as of the clearing day. Since the last day of the previous
consolidated fiscal year and the last day of the current consolidated fiscal year are holidays of financial
institutions, bills matured at the end of fiscal year are included in the balance at the end of the fiscal year as
follows:
Previous consolidated fiscal year
(December 31, 2016)
Trade notes and accounts receivable

11 million yen

Current consolidated fiscal year
(December 31, 2017)）
16 million yen*2 Assets which are pledged as collateralPrevious consolidated fiscal year
(December 31, 2016)
Buildings and structures
Machinery, equipment and vehicles
Land
Total

Current consolidated fiscal year
(December 31, 2017)

133 million yen
0

127 million yen
0

201

201

335

329

The above property is pledged as collateral for the following borrowings.
Previous consolidated fiscal year
(December 31, 2016)
Current portion of long-term borrowings
Long-term borrowings
Total

Current consolidated fiscal year
(December 31, 2017)17 million yen
183

17 million yen
166

201

183

*3 The items for affiliated companies are as follows.
Previous consolidated fiscal year
(December 31, 2016)
Investment securities

769 million yen

17

Current consolidated fiscal year
(December 31, 2017)
326 million yen

4Current overdraft contracts

The Company has current overdraft contracts with nine banks to efficiently secure working capital. The balanceof unexecuted loans etc. concerning current overdraft contracts at the end of the previous consolidated fiscal year andthe current consolidated fiscal year are as follows.
Previous consolidated fiscal year
(December 31, 2016)
Maximum amount of current overdraft
Outstanding borrowings
Balance

Current consolidated fiscal year
(December 31, 2017)

35,400 million yen－

250,400 million yen－

35,400250,400(Relating to Consolidated Statements of Income)*1 Major items and amounts of sales and general administrative expenses are as follows.
Previous consolidated fiscal year
(from January 1, 2016
to December 31, 2016)

Current consolidated fiscal year
(from January 1, 2017
to December 31, 2017)

Sales commissions
Advertising expenses

42,825 million yen
33,96175,974million yen
61,533

Outsourcing fee
Salary wages

24,54725,21955,19650,178

Shipping cost
Property, plant and equipment depreciation

19,688
8,245

32,28422,064

Bonuses and transfer to accrued bonuses to
employees

11,083

18,792

2,735

3,161

308

427

55
－

132

25

11

Cost on Retirement benefit
Provision for sales and promotion expenses
depositAllowance for doubtful accounts deposit
Provision for directors' bonuses
Liabilities for directors’ and corporate auditors’
retirement benefits deposit

309*2 Research and development expense included in general administrative expenses
Previous consolidated fiscal year
(from January 1, 2016
to December 31, 2016)
Research and development expense

612 million yen

Current consolidated fiscal year
(from January 1, 2017
to December 31, 2017)
306 million yen*3 The breakdown of gain on sale of fixed assets is as follows.
Previous consolidated fiscal year
(from January 1, 2016
to December 31, 2016)

Current consolidated fiscal year
(from January 1, 2017
to December 31, 2017)

Buildings and structures

53 million yen

41 million yen

Land

868

447

18

*4 Impairment loss
The Company group is grouping the business assets into the soft drink business and the healthcare &skincare business, which are business units in management accounting that continually manage income andexpenditure. For rental assets and idle assets, signs of impairment are judged by regarding each individual
property as the smallest unit of grouping.
For the land of the target locations among idle assets whose land prices etc. have declined in the previous
consolidated fiscal year, and for the buildings and structures, land and software etc. of the target locations
among the rental assets whose profitability have declined and the idle assets whose land prices etc. havedeclined in the current consolidated fiscal year, the book values are reduced to the recoverable amount, andsuch decreases are recorded as impairment loss.
Also, in the previous and current consolidated fiscal year, goodwill generated at the time of acquisition ofshares of Q’ sai Co., Ltd., a consolidated subsidiay of the Company, was impaired as the expected revenue
became no longer viable, thus the Company has reduced its book value to the recoverable amount and hasrecorded the decrease as impairment loss.
The recoverable value of rental assets and idles assets is calculated based on real estate appraisal value
etc. Goodwill’s recoverable amount is measured based on the usage value calculated at discount rate of
5.7% for the previous consolidated fiscal year and the current consolidated fiscal year.
Previous consolidated fiscal year (from January 1, 2016 to December 31, 2016)
RegionUse

Number oflocations

Chugoku

Idle asset

1

Land

－

－

－

Goodwill

Type

Impairment loss
64 million yen
6,792

Current consolidated fiscal year (from January 1, 2017 to December 31, 2017)
RegionKinki

Use

Idle asset

Number ofType

locations

Impairment loss

Buildings and structures

17 million yen

2Land
Software

1
53

Other

18
5
8

Shikoku

Idle asset

2

Buildings and structures
Land〃

Rental asset

1

Land

132

KyushuIdle asset

6

Buildings and structures
Land

23
46

－

－

－

Goodwill

291

19

(Relating to Consolidated Statements of Comprehensive Income)* Adjusted amounts after reclassification and tax effects on other comprehensive income.
Previous consolidated fiscal year
(from January 1, 2016
to December 31, 2016)

Current consolidated fiscal year
(from January 1, 2017
to December 31, 2017)

Net unrealized gains (loss) on marketablesecurities:
Accrual amount for current period(1,729) million yen

Adjusted amounts after reclassification

4,881million yen

(58)

(305)

(1,788)

4,576

663

(1,781)(1,125)

2,794

－

1,017

－

(165)

Before tax effect adjustment
Tax effect amount

－
－

852
(315)

Deferred gains or losses on hedges－

537

Foreign currency translation adjustments:
Accrual amount for current period

(20)

15

(20)

15

Adjusted amount related to retirement benefit:
Accrual amount for current period

(44)

4,324

Adjusted amounts after reclassification

(917)

840

Before tax effect adjustment
Tax effect amount
Unrealized net gains (losses) on othermarketable securities
Deferred gains or losses on hedges:
Accrual amount for current period
Adjusted amounts after reclassification

Foreign currency translation adjustments

Before tax effect adjustment

872

5,165

Tax effect amount(280)(1,748)Adjusted amount related to retirement
benefit

592

3,416

Accrual amount for current period
Adjusted amounts after reclassification

14
258

2
5

Equity equivalent for equity method

272

8

(280)

6,772

Share of other comprehensive income of equity
method investees:

investees
Total of other comprehensive incomes20

(Relating to Consolidated Statements of Changes in Equity)
Previous consolidated fiscal year (from January 1, 2016 to December 31, 2016)
1. Matters concerning class and total number of outstanding shares and class and number of treasury shares
Number of shares at
Number of increased
Number of decreased
Number of shares at
beginning of current
shares for current
shares for current
end of current
consolidated fiscal
consolidated fiscal
consolidated fiscal
consolidated fiscal
year
year
year
year
(1000 shares)(1000 shares)(1000 shares)(1000 shares)
Outstanding shares
Common shares

111,125－－

111,125

Total

111,125－－

111,125

Common shares

1,986

2

0

1,989

Total

1,986

2

0

1,989

Treasury stock(Note)

1. The 2,000 share increase in the common shares of treasury stock is due to the purchase of fractional shares.
2. The 0 thousand share decrease in the common shares of treasury stock is due to adding fractional shares to holdings.
2. Matters concerning dividends(1) Dividend payout amounts
Resolution

Type of stock

The total amountof dividends(million yen)common shares

2,291

common shares

2,401

Per share
dividend
amount(Yen)

Reference date

Effective date21

December 31, 2015

March 24, 201622

June 30, 2016

September 1, 2016

March 23, 2016
Ordinary generalshareholders meeting
August 12, 2016
Board meeting(2) Among the dividends whose reference dates belong to the current consolidated fiscal year, the dividends whose
effective date come after the end of the current consolidated fiscal year.
Per share
The total amount
Source of
Resolution
Type of stock
dividend
Reference date
Effective dateof dividend
dividends(million yen)amount(Yen)
March 22, 2017
Ordinary generalshareholders meeting

commonshares2,619

Retained

24 December 31, 2016

earnings

March 23, 2017

Current consolidated fiscal year (from January 1, 2017 to December 31, 2017)
1. Matters concerning class and total number of outstanding shares and class and number of treasury shares
Number of shares at
Number of increased
Number of decreased
Number of shares at
beginning of current
shares for current
shares for current
end of current
consolidated fiscal
consolidated fiscal
consolidated fiscal
consolidated fiscal
year
year
year
year
(1000 shares)(1000 shares)(1000 shares)(1000 shares)
Outstanding shares
Common shares

111,125

95,142－

206,268

Total

111,125

95,142－

206,268

Common shares

1,989

32

6

2,015

Total

1,989

32

6

2,015

Treasury stock(Note)

1.

The 95,142 thousand share increase in the common shares is due to the issuance of new shares in connection with the2.

share exchange with Coca-Cola East Japan Co., Ltd. on April 1, 2017.
The 32 thousand share increase in the common shares of treasury stock is due to the purchase of fractional shares.

3.

The 6 thousand share decrease in the common shares of treasury stock is due to adding fractional shares to holdings.

21

2. Matters concerning dividends(1) Dividend payout amounts
Resolution

Type of stock

The total amountof dividends(million yen)March 23, 2017
Ordinary generalcommon shares

2,619

common shares

4,493

Per share
dividend
amount(Yen)

Reference date

Effective date24

December 31, 2016

March 24, 201722

June 30, 2017

September 1, 2017

shareholders meeting
August 1, 2017
Board meeting(2) Among the dividends whose reference dates belong to the current consolidated fiscal year, the dividends whose
effective date come after the end of the current consolidated fiscal year.
Per share
The total amount
Source ofType of stockof dividend
dividend
Resolution
dividends(million yen)amount(Yen)
March 27, 2018
Ordinary generalshareholders meeting

commonshares4,493

Retainedearnings

Reference date

22 December 31, 2017

Effective date

March 28, 2018

(Relating to Consolidated Statement of Cash Flows)* 1 Relationship between the fiscal year-end balance of cash and cash equivalents and the amounts of items listed on the
consolidated balance sheet
Previous consolidated fiscal year
(from January 1, 2016
to December 31, 2016)

Current consolidated fiscal year
(from January 1, 2017
to December 31, 2017)

Accounts of cash and deposits

63,849 million yen

101,858 million yen

Accounts of marketable securities

23,112

17,000Time deposit whose deposit period exceeds 3months

(121)

(116)

Bonds etc. with redemption period exceeding 3
months(112)－

Cash and cash equivalents

86,727

118,741*2

Major breakdown of assets and liabilities of the newly consolidated subsidiaries through share exchanges
The major breakdown of assets and liabilities at the time of consolidation of Coca-Cola East Japan Co., Ltd. and six
other companies through share exchanges, and the correspondence between share acquisition value and the amount ofsubsidiary funds (net) are as follows.
Current assets
Fixed assets

150,219 million yen
327,724

Goodwill
Current liabilities

58,170(115,768)

Non-current liabilities
Appraisal value of investment up to the acquisition of(77,895)

control based on equity method
Gain on step acquisition

(407)
(53)

Non-controlling shareholder interests(426)

Share acquisition value
Cash and cash equivalents of newly consolidated

341,562

subsidiaries
Value of the Company shares issued in share exchanges
Increase in cash and cash equivalents due to newconsolidation

26,798(341,562)
26,79822

*3

Description of significant non-cash transactions
Amount of increase in capital surplus due to share exchange
Previous consolidated fiscal year
(from January 1, 2016
to December 31, 2016)

Current consolidated fiscal year
(from January 1, 2017
to December 31, 2017)－million yen

341,562 million yen

Amount of increase in capital surplus due to share exchange(Segment Information, etc.)
a. Segment information
1.

Overview of Reporting Segment
The Company Group’s reporting segments are based on the availability of separate financial information of theCompany Group’s constituent units, and subject to periodic review performed by the Company’s board of directors inorder to decide the allocation of management resources and evaluate the business performance.
The Company Group has established an organization management system by finished goods and service. Based on
the kind and nature of finished goods, sales market, etc., “soft drink business” and “healthcare & skincare business” arethe two reporting segments.
Moreover, in soft drink business, as of January 1, 2017, our consolidated subsidiary company Nishinihon BeverageCo., Ltd. absorbed and merged with another consolidated subsidiary company, Pacific Ace Nishinihon Co., Ltd. As aresult, Pacific Ace Nishinihon Co., Ltd. is excluded from the scope of consolidation from the first quarter of the current
consolidated fiscal year.
Coca-Cola East Japan Co., Ltd. and two other subsidiaries have been included in the scope of consolidation from thesecond quarter of the current consolidated fiscal year due to Coca-Cola East Japan Co., Ltd. becoming a wholly owned
subsidiary of the Company through a share exchange on April 1, 2017. Coca-Cola Business Sourcing Co., Ltd., CocaCola Integrated Business Systems Co., Ltd., Coca-Cola Customer Marketing Co., Ltd. and FV Corporation, have also
been included in the scope of consolidation from the second quarter of the current consolidated fiscal year since theshareholding ratio of the Company Group has increased due to the fact that Coca-Cola East Japan Co., Ltd. holds sharesin the four companies.
The types of finished goods and services belonging to each reporting segment are as follows.
Soft drink business:
Manufacture and sales of soft drink such as Coca-Cola, Vending
machine related business, Real estate business, Insurance agency
business
Healthcare & skincare business:

Manufacture and sales of health food such as green juice made from“kale” and merchandise related to cosmetics etc., investment
business

2.

Method of calculating the amount in net revenues, profit or loss, assets, liabilities, and other items per reporting
segment
The method of accounting for reported business segments is the same as described in “Basis of Presentation of theConsolidated Financial Statements”.
In addition, the profit of the reporting segment is the same value as the operating income.

(Change in depreciation method and change in service life)
As discussed in “3. Consolidated Financial Statements and Notes (5) Notes to Consolidated Financial
Statements (Changes in Accounting Policies, etc.),” from the current consolidated fiscal year the
depreciation method for property, plant and equipment (excluding sales equipment and leased assets) waschanged to the straight-line method. The key service life of machinery and equipment has been revised to 720 years, and changes have been applied into the future. Furthermore, from the current consolidated fiscal
year the residual value of property, plant and equipment after the end of its service life has been devaluatedto a nominal value of one yen.
As a result of these changes, compared to the previous method, segment revenue for the the current
consolidated fiscal year has increased by 1,346 million yen in the soft drink business and 27 million yen in
the healthcare & skincare business.

23

３．

Information on the amounts of net revenues, profit/loss, Asset, Liability, and other items per report segment

Previous consolidated fiscal year (from January 1, 2016 to December 31, 2016)(Millions of yen)Soft drink business

Healthcare & skincare
Adjusted amount (Note)business

Total

Net revenues
Net revenues-outside
customers

428,394

32,061－

460,455

Net revenues andtransfer-inter-segment

－

－

－

－

Total

428,394

32,061－

460,455

Segment profit

18,3692,774－

21,143

Segment assets

343,939

37,318377,468

Segment liabilities

78,201

41,882(3,788)(3,788)116,295

17,061430－

17,491

Goodwill amortization

172

2,130

－

2,302

Impairment loss

64

6,792

－

6,857

769

－

－

769

25,402326－

25,728Other items
Depreciation cost

Investment amount inequity method investees
Increase in tangible fixed
assets and intangible fixed
assets24Current consolidated fiscal year (from January 1, 2017 to December 31, 2017)(Millions of yen)Soft drink business

Healthcare & skincare
Adjusted amount (Note)business

Total

Net revenues
Net revenues-outside

842,885

29,737－

872,623

－

－

－

－

Total

842,885

29,737－

872,623

Segment profit

37,422

3,156－

40,579Segment assets

852,831

38,228883,918

Segment liabilities

222,124

41,448(7,140)(7,140)256,432

Depreciation cost

36,948404－

37,352

Goodwill amortization

2,353

1,636

－

3,989

Impairment loss

217

381

－

598

Investment amount inequity method investees

326

－

－

326

42,101437－

42,539customers
Net revenues andtransfer-inter-segment

Other items

Increase in tangible fixed
assets and intangible fixed
assets(Note)

Adjusted amount of Segment Asset and Segment Liability is based on consolidation adjustment.

25

b. Related information
Previous consolidated fiscal year (from January 1, 2016 to December 31, 2016)
1.

Information on each finished goods and service
Descriptions are omitted because the classification of finished goods and services is the same as the classification ofreporting segment.

2.

Information by region(1) Net revenues
Since net revenues to outside customers in Japan exceed 90% of net revenues in the consolidated income
statement, the description is omitted.
(2) Tangible fixed assets
Since the amount of tangible fixed assets located in Japan exceeds 90% of the amount of tangible fixed assets inthe balance sheet, the description is omitted.

3.

Main customer-specific information
There is no relevant matter as there is no single outside customer to whom the net sales is more than 10% ofconsolidated net revenues.

Current consolidated fiscal year (from January 1, 2017 to December 31, 2017)
1.

Information by finished goods and service
Descriptions are omitted because the classification of finished goods and services is the same as the classification ofreporting segment.

2.

Information by region(1) Net revenues
Since net sales to outside customers in Japan exceed 90% of net revenues in the consolidated income statement,
the description is omitted.
(2) Tangible fixed assets
Since the amount of tangible fixed assets located in Japan exceeds 90% of the amount of tangible fixed assets on
the consolidated balance sheet, the description is omitted.

3.

Main customer-specific information
There is no relevant matter as there is no single outside customer to whom the net sales is more than 10% ofconsolidated net revenues.

26

c. Information on impairment loss of fixed assets by reporting segment
Previous consolidated fiscal year (from January 1, 2016 to December 31, 2016)
Information on impairment loss of fixed assets for each reporting segment is omitted because similar information isdisclosed in “Segment information”.
Current consolidated fiscal year (from January 1, 2017 to December 31, 2017)
Information on impairment loss of fixed assets for each reporting segment is omitted because similar information isdisclosed in “Segment information”.
d. Information on goodwill amortization and unamortized balance by reporting segment
Previous consolidated fiscal year (from January 1, 2016 to December 31, 2016)(Millions of yen)Soft drink business
Balance at the end of the

Healthcare & skincare business
172

periodTotal

22,49522,668The total balance at the end of the period is consistent with the goodwill on the consolidated balance sheet.
Information on goodwill amortization for each reporting segment is omitted because similar information is disclosed in“Segment information”.
Current consolidated fiscal year (from January 1, 2017 to December 31, 2017)(Millions of yen)Soft drink business
Balance at the end of theperiodHealthcare & skincare business

55,98820,568

Total
76,557

The total amount of balance at the end of the period is consistent with goodwill’s amount on the consolidated balance
sheet.
Information on goodwill’s amortization for each reporting segment is omitted because similar information is disclosed
in “Segment information”.
e. Information on gains on negative goodwill by segment information
Previous consolidated fiscal year (from January 1, 2016 to December 31, 2016)
Not applicable.
Current consolidated fiscal year (from January 1, 2017 to December 31, 2017)
Not applicable.

27

(Tax Effect Accounting)
1. Breakdown by major causes of deferred tax asset and deferred tax Liability
Previous consolidated fiscal
year(December 31, 2016)
Deferred tax asset
Depreciation AmountCurrent consolidated fiscal
year(December 31, 2017)

3,300 million yen

6,388 million yen

Land valuation difference
Net defined benefit liability

1,189
1,419

6,636
7,121

Deferred deficit
Impairment loss

1,197
1,049

600
1,077

180

127

Unrealized net gains (losses) on other marketablesecurities

3,925

7,329

Subtotal of deferred tax asset

Other

12,26329,281

Valuation reserve(4,580)(9,430)(1,501)(1,693)(1,483)(16,039)(1,922)(4,447)

Total of deferred tax asset
Deferred tax liability

7,682

Reserve for reduction entry
Land valuation difference

19,851(1,216)

Gains on establishment of retirement benefit
Unrealized net gains (losses) on other marketablesecurities
Franchise intangible(1,377)(15,346)

-

(375)

Other

(1,611)(6,708)

Total of deferred tax Liability
Net deferred tax asset(40,304)(20,453)974

2. Causes of difference between the effective statutory tax rate and the burden rate of corporation tax etc. after applying tax
effect accounting
Previous consolidated fiscal
year(December 31, 2016)

Current consolidated fiscal
year(December 31, 2017)

32.8％

30.8％

1.0

3.6

5.9

3.1

Per capita rate of resident tax
Goodwill impairment loss

1.4
17.5

Impact of change in tax rate
Valuation reserve

1.8
(3.5)

1.0
0.2
－

Effective statutory tax rate
（Adjustment）
Difference in tax rate between the Company and its
consolidated subsidiaries
Goodwill amortization

Other

1.4

Effective tax rate

58.3

(1.5)
(1.4)
35.8

(Change in presentation)
In the previous consolidated fiscal year, the "Difference in tax rate between the Company and its consolidated
subsidiaries" which was included in "Others", because of the increased importance.
It is separately stated from the consolidated fiscal year. In order to reflect the change in this presentation method, thereclassification of the notes in the previous consolidated fiscal year.
As a result, 2.4%, was shown in "Other" in the previous consolidated fiscal year, "Difference in tax rate between the
Company and its consolidated subsidiaries"as 1.0%, "Other"is reclassified as 1.4%.

28

(Financial Instruments)
1. Matters concerning the situation of financial instruments(1) Policy on financial instruments
Regarding fund management, the Company Group places emphasis on safety, ensuring liquidity and pursuing profitability.
Regarding fund procurement, the Company is planning to procure short-term borrowings for operating capital from banks,
and to procure necessary funds in the mid- and long-term at the best time and in the best means considering trends infinancial markets.
(2) Contents of financial instruments and their risks
Trade notes and accounts receivable, which are trade receivables, are exposed to customer’s credit risk. In addition,marketable securities and investment marketable securities are mainly stocks with business relationships and temporary
surplus funds managed bonds, and are exposed to market price fluctuation risk and credit risk.
Most trade notes and accounts payable, which are operating obligations, are due within 3 months.
Borrowings and corporate bonds are intended to raise funds related to capital expenditure. The longest redemption date isnine years after the closing date.
Foreign currency accounts payable due to import of raw materials, selling price of forecasted transactions in foreign
currency and materials / raw materials, and prices of finished goods have fluctuation risks such as in foreign exchange andmerchandise price.
(3) Risk management system related to financial instruments(i) Management of credit risk (risk related to nonperformance etc. of business partners)
In the Company Group, in accordance with internal regulations, Sales Division and Financial Division regularly
monitor the status of business partners, manage the due dates and balance for each business partner, in order to reduce
concerns over collection due to deterioration of the financial situation etc.
(ii) Management of market risk (fluctuation risk of interest rate etc.)
Regarding marketable securities and investment marketable securities, the Company periodically measures the market
value and the financial condition of the issuer. For bonds such as public and corporate bonds, since only those with highcredit ratings are subject to our investment, the credit risk is insignificant.
Regarding derivatives transactions, the Company follows the “Market Risk Management Regulations”, etc.
(iii) Management of liquidity risk on fundraising (the risk of being unable to make payment on due date)
The Company manages liquidity risk by periodically creating and updating the funds plan in the Finance Division andmaintaining liquidity on hand at a certain level. In addition, the Company has entered into current overdraft contract as ameans to prepare for liquidity risk.
(4) Supplementary explanation on matters concerning market value etc. of financial instruments
The market value of financial instruments includes the value based on the market price, as well as the value reasonably
calculated when there is no market price. Since the factor of fluctuation is included in the calculation of the above value,
the value may fluctuate by adopting different preconditions.

29

2. Matters concerning market price etc. of financial instruments
Amounts recorded on consolidated balance sheet, market prices, and the difference between them are as follows.
Previous consolidated fiscal year (December 31, 2016)
Amount recorded on
consolidated balance sheet(million yen)

Market priceDifference in amount(million yen)(million yen)

63,849－(219)

29,43029,430－(i) Bonds held to maturity

19,00519,0050(ii) Other marketable securities

22,20922,209－Asset total

134,493

134,4930(1) Trade notes and accounts payable

15,99015,990－(2) Accrued corporate taxes

5,717

5,717

－

(3) Other accounts payable

25,042

25,042－(4) Corporate bonds

50,00051,266

1,266

201

207

5

96,952

98,223

1,271(1) Cash and deposits

63,849(2) Trade notes and accounts receivable

29,649Allowance for doubtful accounts (Note) 2
Trade notes and accounts receivable (Net)(3) Marketable securities and investment
marketable securities (Note) 3(5) Long-term borrowings
Liability total

30

Current consolidated fiscal year (December 31, 2017)
Amount recorded on
consolidated balance sheet(million yen)

Market price(million yen)

Difference in amount(million yen)

101,858－(307)

68,95968,959－(i) Bonds held to maturity

17,00017,000－(ii) Other marketable securities

27,93627,936－

Asset total

215,753

215,753－(1) Trade notes and accounts payable

40,49640,496－(2) Accrued corporate taxes

8,356

8,356

－

(3) Other accounts payable

55,41055,410－(4) Corporate bonds

66,00067,006

1,006(5) Long-term borrowings

13,84813,732

184,112

185,002(116)(1) Cash and deposits

101,858(2) Trade notes and accounts receivable

69,266

Allowance for doubtful accounts (Note) 2
Trade notes and accounts receivable (Net)(3) Marketable securities and investment
marketable securities (Note) 3

Liability total

889(Note) 1. Matters concerning the calculation method of market price of financial instruments and Marketable securities
Asset(1) Cash and deposits, and (2) Trade notes and accounts receivable
Since these are settled in a short period of time, market price is almost equal to the book value, so it is based on the book value.
(3) Marketable securities and investment marketable securities
For these market prices, the stock price is based on the price at the stock exchange, and the bonds are based on the price at thestock exchange or the price presented by the partner financial institutions.
Regarding the notes concerning marketable securities for each holding purpose, please refer to “3. Consolidated Financial
Statements and Notes (5) Notes to Consolidated Financial Statements (Other Marketable Securities)”.
Liability(1) Trade notes and accounts payable, (2) Accrued corporate taxes, and (3) Other accounts payable
Since these are settled in a short period of time, market price is almost equal to the book value, so it is based on the book value.
(4) Corporate bondMarket price of corporate bond is based on market price. The corporate bond planned to be redeemed within one year which isincluded in consolidated balance sheet is included in this item.
(5) Long-term borrowings
Long-term borrowings with fixed interest are calculated based on the present value calculated by discounting the total of principal
by the interest rate assumed when similar new borrowings are made. On the other hand, market value of borrowings with variableinterest rates is similar to the book value because the market interest rate is reflected in the short term, thus the market price is basedon the book value. The long-term borrowings included in consolidated balance sheet, which is planned to be redeemed within one
year, are included in this item.
2. The Company deducts allowance for doubtful accounts which is recorded against trade notes and accounts receivable.

313. Financial instruments for which it is extremely difficult to estimate the market pricePrevious consolidated fiscal year
Current consolidated fiscal year
Classification(December 31, 2016)(December 31, 2017)
Unlisted shares

1,084 million yen

3,274 million yen

Union investment

188 million yen

255 million yen

These have no market price, and future cash flows, etc., cannot be estimated either.
Because it is deemed extremely difficult to estimate their market prices, they are not included in “(3) Marketable4.

securities and investment marketable securities”.
Scheduled redemption amount after the consolidated closing date of the marketable securities with monetary claims andmaturity
Previous consolidated fiscal year (December 31, 2016)
Over 1 year Over 2 years Over 3 years Over 4 years
Over 5 years
Within 1 year but less than but less than but less than but less than(million yen)
4 years(million yen)
2 years
3 years
5 years(million yen) (million yen) (million yen) (million yen)

(1) Cash and deposits(2) Trade notes and accounts
receivable(3) Marketable securities and63,849

－

－

－

－

－

29,649

－

－

－

－

－

19,005

－

－

－

－

－

107

－

－

－

－

－

112,611

－

－

－

－

－

investments marketablesecurities
Bonds held to maturity
Other marketable securities
with expiration date
Total

Current consolidated fiscal year (December 31, 2017)
Over 1 year Over 2 years Over 3 years Over 4 years
Over 5 years
Within 1 year but less than but less than but less than but less than(million yen)(million yen)
2 years
3 years
5 years
4 years(million yen) (million yen) (million yen) (million yen)
(1) Cash and deposits(2) Trade notes and accounts
receivable(3) Marketable securities and

101,858

－

－

－

－

－

69,266

－

－

－

－

－

17,000

－

－

－

－

－

－

－

－

－

－

－

188,124

－

－

－

－

－

investments marketablesecurities
Bonds held to maturity
Other marketable securities
with expiration date
Total

32

5. Scheduled repayment amount of corporate bond and long-term borrowings after consolidated closing datePrevious consolidated fiscal year (December 31, 2016)
Over 1 year
Over 2 years Over 3 years Over 4 years
Within 1 year but less thanbut less thanbut less thanbut less than(million yen)
2 years
3 years
4 years
5 years(million yen) (million yen) (million yen) (million yen)Over 5 years(million yen)

Corporate bond－－

20,000－－30,000Long-term borrowings

17

17

17

17

17

112

17

17

20,01717

1730,112Current consolidated fiscal year (December 31, 2017)
Over 1 year
Over 2 years
Within 1 year but less thanbut less than(million yen)
2 years
3 years(million yen) (million yen)Over 3 years
but less than
4 years(million yen)Over 4 years
but less than
5 years(million yen)

Total

Corporate bondLong-term borrowings
Total

Over 5 years(million yen)－

20,00016,000－30,000

－

1,817

1,538

1,292

1,089

1,017

7,094

1,817

21,53817,292

1,089

31,017

7,094(Other Marketable Securities)
１．Bonds held to maturity
Previous consolidated fiscal year
(December 31, 2016)
Type(1) Government bonds,
Market priceexceeds amountrecorded inconsolidatedbalance sheet

municipal bonds, etc.
(2) Corporate bond(3) Other
Subtotal(1) Government bonds,
Market price does municipal bonds, etc.
not exceed(2) Corporate bondamount recordedin consolidated(3) Otherbalance sheet
Subtotal
Total

Current consolidated fiscal year
(December 31, 2017)

Amountrecorded inconsolidatedbalance sheet(million yen)

Market value(million yen)

Differencein amount(million yen)Amountrecorded inconsolidatedbalance sheet(million yen)

Market value(million yen)

Differencein amount(million yen)

－

－

－

－

－

－

5

5

0

－

－

－

19,00019,000－17,00017,000－19,00519,0050

17,00017,000

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

19,00519,0050

17,00017,000－33

2. Other marketable securities
Previous consolidated fiscal year
(December 31, 2016)

Current consolidated fiscal year
(December 31, 2017)

Amountrecorded inconsolidatedbalance sheet(million yen)

Acquisition
cost(million yen)

Differencein amount(million yen)Amountrecorded inconsolidatedbalance sheet(million yen)

Acquisition
cost(million yen)

Differencein amount(million yen)

(1) Stocks

13,348

6,931

6,417

22,28011,471

10,808(2) Bonds

107

100

7

－

－

－

(3) Other

4

1

2

4

1

2

Subtotal

13,461

7,033

6,427

22,284

11,473

10,811Market price does (1) Stocks
not exceed(2) Bonds
amount recorded(3) Otherin consolidatedbalance sheet
Subtotal

4,652

5,270

5,553

5,980

－

－

(618)
－

－

－

(426)

96

104

98

104

4,748

5,375

(8)

5,651

6,085

18,20912,4085,800

27,936

17,558Type

Market priceexceeds amountrecorded inconsolidatedbalance sheet

Total(Note)

(626)

－

(6)

(433)

10,377For MMF etc., the acquisition costs are deemed to be the balance sheet value, thus not included in “Other marketablesecurities” in the table above. In addition, unlisted shares and union investment have no market price and future cash
flows, etc. cannot be estimated either. It is deemed extremely difficult to estimate the market price, so they are notincluded in “Other marketable securities” in the table above. Each amount recorded in consolidated balance sheet is asshown in the table below.
Previous consolidated fiscal year
Current consolidated fiscal year
Classification(December 31, 2016)(December 31, 2017)
MMF etc.

4,000 million yen－million yen

Unlisted shares

1,084 million yen

3,274 million yen

Union investment

188 million yen

255 million yen

3. Other marketable securities sold during the previous consolidated fiscal year and the current consolidated fiscal year
Previous consolidated fiscal year
(from January 1, 2016
to December 31, 2016)
Type

Proceeds fromTotal gain on sales
sales(million yen)(million yen)

Current consolidated fiscal year
(from January 1, 2017
to December 31, 2017)

Proceeds fromsales
Total gain on sales
Total loss on sales(million yen)(million yen)(million yen)

Total loss on sales(million yen)

(1) Stocks

861

207

0

490

359

0

(2) Bonds

－

－

－

109

9

－

(3) Others

－

－

－

－

－

－

861

207

0

599

368

0

Total

34

4. Marketable securities with impairment declared
For stocks of other marketable securities, 156 million yen impairment is declared in the previous consolidated fiscal year
and 0 million yen in the current consolidated fiscal year.
In the impairment process, if market price falls by 50% or more compared to the acquisition cost, the Company assumes
that the market price is not recoverable, and if the decline rate is 30% or more and less than 50% ,the Company considers therecoverability of market price and determines whether or not impairment is required.
(Retirement Benefit)
1. Outline of adopted retirement benefit program
The Company Group’s primary retirement benefit program has a corporate pension fund program as a defined benefit typeplan and a defined contribution pension plan as a defined contribution type program. In addition, extra retirement payment
may be paid upon retirement of employees.
2. Defined benefit program(1) Adjustment table of opening balances and closing balances of retirement benefit liability
Previous consolidated
Current consolidated
fiscal year
fiscal year
(from January 1, 2016
(from January 1, 2017
to December 31, 2016)
to December 31, 2017)
Opening balance of retirement benefit liability

47,210 million yen

Service cost
Interest cost
Amount of actuarial difference
Payment amount of retirement benefit

3,124
775

165
(2,411)783(5,768)
－

(61)

(38)

(264)
－

Cost incurred for past services
Increased amount due to new consolidation
Other
Closing balance of retirement benefit liability

46,940 million yen

1,806
495

46,94092,933

138,749(Note) Some consolidated subsidiaries adopt the simplified method in calculating retirement benefit liability.
(2) Adjustment table of the opening balance and the closing balance of pension
Previous consolidated
fiscal year
(from January 1, 2016
to December 31, 2016)
Opening balance of pension asset
Expected investment income
Amount of actuarial difference
Contribution from employer

43,835 million yen
678

43,558 million yen
3,252

(144)
1,525

5,107
1,498

(2,336)－

Payment amount of retirement benefit
Increase amount due to new consolidation
Closing balance of pension asset

43,55835

Current consolidated
fiscal year
(from January 1, 2017
to December 31, 2017)(5,473)70,705

118,649

(3) Adjustment table of retirement benefit liability, closing balance of pension asset, liability related to payment of
retirement benefit and retirement benefit asset recorded in consolidated balance sheet.
Previous consolidated
Current consolidated
fiscal year
fiscal year
(December 31, 2016)(December 31, 2017)Retirement benefit liability of funding program

46,008 million yen

128,174 million yen

Pension asset(43,558)(118,649)

Net of liability and asset recorded in consolidatedbalance sheet

3,382

20,100Liability related to payment of retirement benefit
Retirement benefit asset

3,505
123

20,358257

Net of liability and asset recorded in consolidatedbalance sheet

3,382

20,1002,450932Retirement benefit liability of unfunded program

9,525
10,575(Note) Some consolidated subsidiaries adopt the simplified method in calculating retirement benefit liability.
(4) Amount of cost on retirement benefit payment and its breakdown
Previous consolidated
fiscal year
(from January 1, 2016
to December 31, 2016

Current consolidated
fiscal year
(from January 1, 2017
to December 31, 2017)

Service cost (Note)
Interest cost

1,806 million yen
495

Expected investment income
Actuarial difference processing cost

(678)
1,005

(3,252)
1,017

2,907

3,585

(88)
366

Processing cost for past services
Other
Cost on retirement benefit related to defined benefit
plan

3,124 million yen
775

(176)
2,097

(Note) Costs on retirement benefit of consolidated subsidiaries which adopt simple method are included.
(5) Adjusted amount related to retirement benefit
Breakdown of items (before deducting tax effect) recorded in adjusted amount related to retirement benefit is asfollows.
Previous consolidated
fiscal year
(from January 1, 2016
to December 31, 2016
Cost for past services
Actuarial difference

176 million yen
696

Total

872

Current consolidated
fiscal year
(from January 1, 2017
to December 31, 2017)(176) million yen
5,341
5,165

(6) Adjusted cumulative total on retirement benefits
Breakdown of items (before deducting tax effect) recorded in adjusted cumulative total on retirement benefits is asfollows.
Previous consolidated
Current consolidated
fiscal year
fiscal year
(December 31, 2016)(December 31, 2017)
Unrecognized cost for past services
Unrecognized actuarial difference(176) million yen
761

Total

585

36

－million yen(4,580)(4,580)(7)Matters concerning pension asset①
Main breakdown of pension asset
The ratio of each classification to pension asset total is as follows.
Previous consolidated
fiscal year
(December 31, 2016)

Current consolidated
fiscal year
(December 31, 2017)

Alternative (Note)
General account

31.9％

14.3％

28.0

22.1

Bonds
Stocks

26.5
12.9

29.3
33.5

Other

0.7

0.8

100.0

100.0

Total
(Note) Alternative means investments in Funds of Funds etc.
② Method of setting long term expected investment income rate

In order to determine the long-term expected investment income rate of pension asset, we consider the current andanticipated allocation of pension asset and the long-term rate of return expected from various assets comprising pension
asset in the present and future.
(8) Matters concerning actuarial calculation basis
Major actuarial calculation basis (Weighted average is shown.)
Previous consolidated
fiscal year
(December 31, 2016)
Mainly 1.1％
Mainly 1.5％

Discount rateLong-term expected investment income rate

Current consolidated
fiscal year
(December 31, 2017)
0.5 ～ 1.1％
2.0 ～ 4.5％

3. Defined contribution plan
The amount contributed to the defined contribution programs of the Company and consolidated subsidiaries is 286 million
yen for the previous consolidated fiscal year, and 1,935 million yen for the current consolidated fiscal year.
(Business Combination Related)(Business combination through acquisition)
The Company agreed to conduct a business integration with Coca-Cola East Japan Co., Ltd. (hereinafter, “CCEJ”) through a
combination of a share exchange and an absorption-type company split (hereinafter, “the business integration”) at the Board of
Directors held on September 30, 2016, and the Company and CCEJ entered an integration agreement and on the same day astock exchange agreement for the exchange of stock with the Company as the wholly owning parent company and CCEJ as thewholly owned subsidiary company (hereinafter, “the stock exchange”). In addition, in order to transfer to a holding company
system after the business integration, the Company conducted an absorption-type company split to succeed the rights andobligations relating to all operations excluding the Group’s business management operations and asset management operations(hereinafter, “the company split”) to the New CCW Successor Preparatory Company that was established as a wholly owned
subsidiary of the Company.
The stock exchange was approved by the ordinary general meeting of shareholders of the Company and CCEJ, while thecompany split was approved by the ordinary general meeting of shareholders of the Company, and the stock exchange and thecompany split was conducted on April 1, 2017.
For details on the company split, please refer to “Notes (Business combination related) (Business divestiture to consolidated
subsidiary)”.
1. Summary of business combination(1) Name and description of business of acquired company
Name: Coca-Cola Bottlers Japan Inc.
Description of business: Manufacturing, processing, and sales of soft drinks(2) Reasons for business combination
In the Japanese soft drinks market, a difficult operating environment continues as the needs of customers (consumers)
and clients are diversifying and sales competition between soft drinks companies is becoming more intense.
37

While both companies have previously strengthened cooperation in fields such as marketing, manufacturing, andprocurement as members of the Coca-Cola system in Japan, discussions regarding the business integration were advanced
in order to capture new business opportunities and to enable sustainable growth even in face of this difficult operating
environment. Through the business integration, we will promptly respond to the increasingly competitive environment bybuilding strong management foundations and combining the know-how both companies have developed, including
customer-focused sales activities and improvements in manufacturing. Furthermore, the combined company can increasevalue for all stakeholders including customers (consumers), clients, business partners, shareholders, and employees as thethird largest Coca-Cola bottlerin the world in terms of sales.
(3) Date of business combination
April 1, 2017(4) Legal form of the business combination
Stock exchange with the Company as the wholly owning parent company and CCEJ as the wholly owned subsidiarycompany(5) Name of company after the combination
Coca-Cola Bottlers Japan Inc.
(6) Ratio of voting rights acquired
Ratio of voting rights owned immediately before the business combination: 0.02%
Ratio of voting rights acquired: 100.00%(7) Main basis leading to determination of the acquiring company
As a result of the acquisition of 100% of the voting rights of CCEJ through a share acquisition with shares delivered by
the Company as consideration.
2. Period of results of acquired company included in the quarterly consolidated statements of income related to the quarter
under review
April 1, 2017 to December 31, 2017
3． Acquisition cost of the acquired company and breakdown of those costs
Market value on the business combination date of the common shares of Coca-Cola
Bottlers Japan Inc. held immediately before the business combination
Market value of the Company’s common shares delivered on the date of businesscombination
Acquisition cost

50 million yen
341,562 million yen
341,612 million yen

4． Exchange ratios and calculation methods, and number of shares delivered by type of shares(1) Common share exchange ratio
0.75 of the Company’s common shares for 1 of CCEJ’S common shares(2) Calculation method for the share exchange ratio
The Company selected SMBC Nikko Securities Inc. and CCEJ selected JP Morgan Stanley Securities Co., Ltd. as theirrespective third-party calculation institutions and requested these institutions to calculate the stock exchange ratios for use
in the share exchange. In reference to the results of calculation by these third-party calculation institutions, incomprehensive consideration of factors including the financial position, the status of assets, and the future outlook basedon the results of due diligence, and as a result of careful negotiations and discussions on the share exchange ratio, the final
decision was reached that the share exchange ratio was reasonable, and the share exchange ratio was determined andagreed to at the Board of Directors of both companies held on September 30, 2016.
(3) Number of shares delivered
Common shares: 95,142,879 shares(4) Content and amount of major acquisition related expenses
Advisory expenses etc. 874 million yen

38

5． Difference between acquisition cost of the acquired company and total acquisition cost for each transaction leading toacquisition
Marginal gain on step acquisition: 53 million yen
6． Amount of goodwill that occurred, reason for occurrence, amortization method, and amortization period(1) Amount of goodwill that occurred
58,170 million yen(2) Reason for occurrence
Because the acquisition cost exceeds the net amount allocated to the assets acquired and liabilities assumed, that surplus
has been recorded as goodwill.
(3) Amortization method and amortization period
Evenly amortized over twenty years

7. Amounts of assets accepted and liabilities assumed on the day of the business combination and the breakdown of main items
Current assets
150,219 million yen
Fixed assets

327,724

Total assets

477,943

Current liabilities
Non-current liabilities(115,768)(77,895)

Total liabilities(193,663)

8. Approximate amounts and the calculation method of impact on the consolidated statements of income for the current
consolidated fiscal year, assuming that the business combination had been completed on the commencement date of the current
consolidated fiscal year
Net revenues
Operating income

118,940 million yen
1,525

Recurring income
Income before income taxes and minority interests

1,444
754

Net profit attributable to shareholders of parent

591(Method of calculating proforma amounts)
The difference between net revenues and income information calculated on the assumption that the business combination had
been completed on the commencement date of the current consolidated fiscal year and net revenues and income information in
the Consolidated Statements of Income of the Company is considered to be the proforma amounts of the impact.
Audit certification has not been provided to the information mentioned above.
(Business divestiture to consolidated subsidiary)
As described in “Notes (Business combination related)(Business combination through acquisition)”, the Company
conducted an absorption-type company split to succeed the rights and obligations relating to all operations excluding theGroup’s business management operations and asset management operations to New CCW Successor Preparatory Company(hereinafter, “New CCW”) that was established as a consolidated subsidiary of the Company.
1. Overview of transactions(1) Name and description of business of companies in the business combination
Surviving entity of the absorption-type company split
Name: New CCW Successor Preparatory Company
Description of business: Manufacturing and sales of beverages and foods
Splitting company of the absorption-type company split
Name: Coca-Cola Bottlers Japan Inc. (formerly Coca-Cola West Japan Co., Ltd.)
Description of business: Manufacturing and sales of beverages and foods

39

(2) Date of business combination
April 1, 2017(3) Legal form of the business combination
Absorption-type company split with the Company as splitting company of the absorption-type company split and New
CCW as the surviving entity of the absorption-type company split(4) Name of company after the combination
Coca-Cola West Japan Co., Ltd.
2. Overview of accounting treatment conducted
Handled as transactions under common control based on Accounting Standard for Business Combinations (ASBJ Guidance No.
21 dated September 13, 2013) and for Accounting Standard for Business Divestures (ASBJ Guidance No. 7 dated September
13, 2013).
(Information of Related Parties)
Transactions with related parties
1. Transactions between the company submitting the consolidated financial statements and related parties(1) Affiliated companies etc. of the company submitting the consolidated financial statements
Previous consolidated fiscal year (from January 1, 2016 to December 31, 2016)
Type

Name ofcompany orindividual

Affiliatedcompany

Coca-Cola
Business
Sourcing
Company,
LimitedLocation

Capital stockorContent ofinvestments business orin capital profession(million yen)

MinatoWard ofTokyo

Procurement of rawmaterials /resourcesandequipment

80

Percentage ofvoting rightownership(being owned)(%)

Content Transaction
Relationshipamount Accountingofwith related(million
items
transactio
partiesyen)nPurchase ofraw(Ownership)
materials,
Direct22.7
Purchase of
Indirect
4.7 sales
equipment

Purchaseof rawmaterials,
Purchaseof salesequipment

51,595
12,332Tradenotes andaccounts
payable,Otheraccounts
payableClosingbalance(million
yen)

3,289
977

(Note) 1. Transaction amount does not include consumption tax, etc., but consumption tax, etc. are included in the closingbalance.
2. Transaction conditions and policy for determining transaction terms etc.
Purchases of raw materials and sales equipment are determined in accordance with the general transaction terms
and conditions based on the basic purchase contract and other contracts.
Current consolidated fiscal year (from January 1, 2017 to December 31, 2017)
Not applicable.
(2) Companies, etc. having the same parent company as the company submitting the consolidated financial statements, andsubsidiaries, etc. of other associated companies of the company submitting the consolidated financial statements
Previous consolidated fiscal year (from January 1, 2016 to December 31, 2016) and current consolidated fiscal year
(from January 1, 2017 to December 31, 2017)
Not applicable.

402. Transactions between consolidated subsidiaries of the company submitting the consolidated financial statements andrelated parties(1) Affiliated companies etc. of the company submitting the consolidated financial statements
Previous consolidated fiscal year (from January 1, 2016 to December 31, 2016)
Type

Name ofcompany orindividual

Affiliatedcompany

Coca-Cola
Business
Sourcing
Company,
LimitedLocation

Capital stockorContent ofinvestments business orin capital profession(million yen)

MinatoWard ofTokyo

Procurement of rawmaterials /resourcesandequipment

80

Percentage ofvoting rightownership(being owned)(%)

Content Transaction
Relationshipamount Accountingofwith related(million
items
transactio
partiesyen)nPurchase ofraw(Ownership)
materials,
Direct22.7
Purchase of
Indirect
4.7 sales
equipment

Purchaseof rawmaterials,
Purchaseof salesequipmen
t

3,915
1,025

Closingbalance(million
yen)

Trade
notes andaccounts
payable,Otheraccounts
payable279
31(Note) 1. Transaction amount does not include consumption tax, etc., but consumption tax, etc. are included in the closingbalance.
2. Transaction conditions and policy for determining transaction terms etc.
Purchases of raw materials and sales equipment are determined in accordance with the general transaction terms
and conditions based on the basic purchase contract and other contracts.
Current consolidated fiscal year (from January 1, 2017 to December 31, 2017)
Not applicable.
(2) Companies, etc. having the same parent company as the company submitting the consolidated financial statements,and subsidiaries, etc. of other associated companies of the company submitting the consolidated financial statements
Previous consolidated fiscal year (from January 1, 2016 to December 31, 2016)
Not applicable
Current consolidated fiscal year (from January 1, 2017 to December 31, 2017)Type

Name ofcompany orindividual

Subsidiaries, etc. of
Coca-Cola
other(Japan) Co.,
associated Ltd.
companies

Location

Capital stockorContent ofinvestments business orin capital profession(million yen)

MinatoWard ofTokyo

Manufacturi
ng and saleof softdrinks3,600

Percentage ofvoting rightownership(being owned)(%)

Content Transaction
Relationshipamount Accountingofwith related(million
items
transactio
partiesyen)nReceipt ofReceipt ofpromotion
promotional al rebates(Ownership)
Purchase
rebates
Direct13.8
Purchase of ofconcentrates concentrat
es

96,868258,664

Accounts
receivabl
e-other,
accounts
payableClosingbalance(millionyen)

11,94015,725(Note) 1. Transaction amount does not include consumption tax, etc., but consumption tax, etc. are included in the closingbalance.
2. Transaction conditions and policy for determining transaction terms etc.
The Company has transactions with Coca-Cola (Japan) Company Ltd. in accordance with the agreement enteredinto among the the Company, The Coca-Cola Company and Coca-Cola (Japan) Company Ltd. for manufacturing andsales of Coca-Cola and other products and use of the trademarks etc.

41

(Per Share Information)
Previous consolidated fiscal year
(from January 1, 2016
to December 31, 2016)

Item

Current consolidated fiscal year
(from January 1, 2017
to December 31, 2017)

Net assets per share(Yen)

2,389.28

3,070.01

Net income per share

(Yen)

48.05

144.26

Amount of diluted net income per

(Yen)

share

Due to the absence of dilutive shares,

Same as left

it is not stated.

(Note) The basis for calculating net income per share is as follows.
Previous consolidated fiscal year
(from January 1, 2016
to December 31, 2016)
Net income attributable to parent(million yen)
company shareholders
Amount not attributable tocommon shareholders

Current consolidated fiscal year
(from January 1, 2017
to December 31, 2017)

5,245

25,244(million yen)－－(million yen)

5,245

25,244(1000 shares)

109,137

174,990

Net income attributable toshareholders of the parent
company related to common
stock
Average number of shares ofcommon stock during the period(Significant Subsequent Events)
Pursuant to the resolution of the Company’s board of directors dated October 27, 2017, an absorption-type merger was
conducted on January 1, 2018, in which Coca-Cola East Japan Co., Ltd., a subsidiary of the Company, became the surviving
company, and Coca-Cola West Co., Ltd. and Coca-Cola Business Sourcing Co., Ltd. became the non-surviving companies.
1. Objective of the merger
Since the launch of Coca-Cola Bottlers Japan Inc. as a new company established through a business integration on
April 1, 2017, the Company has been pushing forward the integration of organizations and businesses with a sense of
speed, while operating the businesses by function, based on one of the Company’s guiding principles to become “onecompany, one management”. In order to accelerate the ongoing integration process and drive its growth further, theCompany decided to restructure its group organizations as of January 1, 2018, to start anew as “one company, one
management” both in name and substance from the beginning of 2018. As part of the organizational restructuring, theCompany decided to conduct an absorption-type merger with the group companies where Coca-Cola East Japan Co., Ltd.
became the surviving company, and Coca-Cola West Co., Ltd. and Coca-Cola Business Sourcing Co., Ltd. became thenon-surviving companies.
2. Overview of the merger(1) Names and descriptions of businesses of the constituent enterprises
Surviving company
Name:
Coca-Cola East Japan Co., Ltd.
Description of business:
Manufacturing and sale of beverages and foodNon-surviving companies
Name:
Coca-Cola West Co., Ltd.
Description of business:
Manufacturing and sale of beverages and foodName:
Coca-Cola Business Sourcing Co., Ltd.
Description of business:
Purchase of raw materials and materials(2) Date of the business combination
January 1, 201842

(3) Legal form of the business combination
Absorption-type merger in which Coca-Cola East Japan Co., Ltd. became the surviving company, and Coca-Cola West
Co., Ltd. and Coca-Cola Business Sourcing Co., Ltd. became the non-surviving companies, both of which dissolved(4) Name of the company after the business integration
Coca-Cola Bottlers Japan Inc.
3. Overview of accounting treatment
The merger was accounted for as a transaction under common control based on the Accounting Standard for Business
Combinations” (ASBJ Statement No. 21, as announced on September 13, 2013) and the Guidance on AccountingStandard for Business Combinations and Accounting Standard for Business Divestitures (ASBJ Guidance No. 10, as
announced on September 13, 2013).

43

4. Others
Changes in Key Consolidated Management Indicators
For the fiscal
year ended
December 31,
2013

For the fiscal
year ended
December 31,
2014

For the fiscal
year ended
December 31,
2015

For the fiscal
year ended
December 31,
2016

For the fiscal
year ended
December 31,
2017(million yen)431,711424,406

440,476

460,455

872,623

(%)

11.7

3.8

4.5

89.5

(million yen)

15,927(1.7)

11,00814,262

21,14340,579

(%)

3.7

2.6

3.2

4.6

4.7

(million yen)

16,606

10,60913,723

20,60239,859

(%)

3.8

2.5

3.1

4.5

4.6

(million yen)

18,7308,409

15,22812,707

39,240

(%)

4.3

2.0

3.5

2.8

4.5

(million yen)

13,625

4,482

9,970

5,245

25,244

(%)

3.2

1.1

2.3

1.1

2.9

(million yen)

16,332

6,931

11,217

5,022

31,976

Earnings per share(%)

128.15

41.07

91.35

48.05

144.26

Diluted earnings per share

(yen)

－

－

－

－

－

ROE

(%)

5.6

1.8

3.9

2.0

5.7

ROA

(%)

4.7

3.0

3.8

5.5

6.3

Total assets(million yen)

374,418

337,260

378,105

377,468

883,918

Net assets(million yen)

257,936

254,150

260,878

261,173

627,485

(%)

68.8

75.2

68.9

69.1

70.9

(yen)

2,359.82

2,325.19

2,386.81

2,389.28

3,070.01(times)

17.4

40.4

26.9

71.7

28.5

Cash flows from operating activities(million yen)

40,082

28,62840,422

34,38872,450Cash flows from investing activities(million yen)

Cash flows of financing activities(million yen)

(16,493)(9,590)(24,994)(19,921)(41,090)

Cash and cash equivalents at end of
period(million yen)

41,83079,82886,727

118,741

Net revenues
Net revenues growth rate
Operating income
Operating income/Net revenues
Recurring income
Recurring income margin
Income before income taxes andminority interests
Income before income taxes andminority interests/Net revenues
Net profit attributable to owners of thecompany
Net profit attributable to owners of thecompany/Net revenues
Comprehensive income

Net assets (excl. minority interests) tototal assets
Net assets (excl. minority interests)
per share
Price earnings ratio(8,286)60,275

44(37,498)

22,416(7,546)(26,159)