December 15, 2020
To whom it may concern
Company Name

Coca-Cola Bottlers Japan Holdings Inc.

Representative

Calin Dragan, President and Represdntative Director(Code: 2579, First Section of the Tokyo Stock Exchange)

Contact

Raymond Shelton, Executive Officer,
Head of IR & Corporate Communications(Tel．03-6896-1707)

Notice of Selling of Shares of Q'sai Co., Ltd. and Gain on The Sale of Sharesas well as Revision of Earnings Forecast
Coca-Cola Bottlers Japan Holdings Inc. (“CCBJH” or “the Company”) announces that the Company’s Board of Directors
today resolved to sell all of the shares of the Company’s consolidated subsidiary, Q'sai Co., Ltd. (Head Office: Fukuoka City,Fukuoka Prefecture; "Q'sai") to Q-Partners Co., Ltd. (the "Acquiring Company"), a company formed for this purchase led byinvestment funds in which Advantage Partners Inc. provides services ("Advantage Partners"), euglena Co., Ltd., and, Tokyo
Century Corporation, and entered into a share transfer agreement with the Acquiring Company as of today.
As a result of executing the share transfer agreement, Q'sai is classified as discontinued operations from the fiscal year
ending December 31, 2020 and removed from the scope of consolidation of the Company after the share transfer. Accordingly,
we announce a revision of the full-year earnings forecast for the fiscal year ending December 31, 2020 which was announced
on October 5, 2020.
1. Reason for selling of the shares
The Company has been driving fundamental business transformation under the guiding principle of our mid-term strategic
business plan announced in August 2019 with a primary focus on integrating and transforming our core beverage business to
set a solid foundation for sustainable growth and improving the effiecinecy and effectiveness of our health and skincare
business, while evaluating future opportunities for synergies across the two business segments. We have been implementing
initiatives to transform our cost structure and corporate culture as well as increasing investments to drive growth, efficiency
in operations, people development and ultimately to improve shareholder value. We continue to identify opportunities toaccelerate the pace of ongoing transformation efforts and to identify new opportunities amid a rapidly evolving businessenvironment.
Our consolidated subsidiary, Q'sai, has established and grown its business in the health food industry in Japan by pioneering
the commercialization of kale juice “Aojiru” in 1982. Q’sai established a comprehensive in-house, end-to-end quality control
structure to deliver safe and reliable products to consumers from growing kale on company farms without the use of chemicalfertilizer and pestisides to manufacturing and selling kale aojiru to consumers. In 2009, Q’sai expanded into skincare as welland has grown the business by expanding its business domain from “Aojiru” kale juice and heath care products which support
consumers’ health from inside of the body to skin care products, which support consumers’ health from outside of the body.
CCBJH has completed various initiatives to drive sustainable growth and maximize the corporate value of Q'sai since theacquisition of Q’sai in 2010, including a comprehensive update to the Q’sai brand and launch of various products including
a ready-to-drink aojiru beverage under the Minute Maid brand in 2016 and added to the successful Cola-Rich skincare lineup
with the new “Skincaledo” brand in 2019. At this time, we have determined that the best way to support the next era of growthfor the health and skincare business is to sell Q’sai to a strong local partner like Q-Partners, which is led and established by
Advantage Partners, one of the leading investment firms in Japan, with the additional experience and expertise of euglena
Co., a respected player in the health food sector and extensive PMI (Post merger integration) exprience from Tokyo Century
1Corporation. We will strategically leverage the proceeds from this transaction to enhance our corporate value by driving
ongoing fundamental transformation and initiatives to ensure a sustainable growth trajectory of our core beverage businessas well as initiatives to increase shareholder value.
2. Overview of the subsidiary (Q'sai) to be sold
(1)

Name

Q'sai Co., Ltd.

(2)

Address

1-7-16, Kusagae, Chuo-ku, Fukuoka-shi, Fukuoka(3)

Job Title/Name ofRepresentative

Satoshi Kambe, President and Representative Director(4)

Description of Businesses

Manufacture and sale of healthcare products, skincare products, etc.

(5)Paid-in Capital

350 million yen(6)Date of Incorporation

September 8, 2006

(7)

Major shareholders andpercentage of shares owns

Coca-Cola Bottlers Japan Holdings Inc. owns 100% of the shares
Capital relationship

Relationship with the Company(8)Human relationshipand the subsidiary

One of the Company’s directors serves concurrently as
the chairman of the board of directors of Q’sai
The Company has a business relationship with Q’sai,

Business

including the purchase of products and raw materials, andrelationship(9)

The Company owns 100% of the subsidiary.

borrowing and lending of funds.

Consolidated operating results and consolidated financial position of the company for the past 3 years (JapaneseGAAP, million yen)

Fiscal year ending

December 31, 2017

December 31, 2018

December 31, 2019

Consolidated net assets

24,137

22,14022,397

Consolidated total assets

29,03327,04026,498

Consolidated net sales

29,73827,54024,968

Consolidated operating income

3,574

4,167

2,783

Consolidated ordinary income

3,457

4,141

2,694

2,046

3,100

1,300

5,186

5,705

4,339

Net income income attributable
to the owners of parent(Reference) EBITDA
3. Outline of the buyer
(1)

Name

Q-Partners Co., Ltd.

(2)

Address

17F, Toranomon Towers Office, 4-1-28, Toranomon, Minato-ku, Tokyo(3)Job Title/Name of Representative

Toshiya Tsukahara, Representative Director(4)

Business objectives(5)

Paid-in Capital

250,000 yen(6)

Date of Incorporation

October 21, 2020

(7)

Relationship with the Company
and aquiring company

Management consulting, acquisition, holding, managing and trading ofsecurities, etc.

Capital relationship

Not applicable.

Human relationsship

Not applicable.

Business relationship

Not applicable.

Applicability on

Not applicable.

related parties

24. Number of shares to be sold, selling price and status of shares held before and after the transaction
Shares owned by the Company prior to302,755 shares (Number of voting rights: 302,755)

the transaction(Voting rights the Company owns: 100%)(2)

Number of the shares to be sold302,755 shares (Number of voting rights: 302,755)(3)

Selling price

(1)

(4)

Selling price of Q’sai shall be determinded upon deducting
consolidated net debt from enterprise value of 42 billion yen

Shares owned by the Company after the0 shares (Number of Voting Rights: 0)transaction(Voting rights the Company owns: 0%)

5. Schedule(1)

Date of resolution of the Board of Directors

December 15, 2020 (Today)(2)

Date of contract

December 15, 2020 (Today)(3)

Date of execution of the share transfer

January 29, 2021 (Planned)

6. Future Outlook
In the event of the share transfer, the Company expects to generate approximately 12 billion yen gain (before tax) as profit
on the sale of shares in the first quarter of the fiscal year ending December 31, 2021. The forecast for the fiscal year ending
December 2021, including the results of this transaction will be announced at the time of the announcement of our full-year
results for the fiscal year ending December 2020, scheduled for mid-February 2021.
7. Revisions and reasons for the full-year forecast for the fiscal year ending December 2020
By executing the share transfer agreement, the Company’s Healthcare & Skincare Business shall be classified as
discontinued operations in the fiscal year ending December 31, 2020 and separately presented from continuing operations in
the Company’s consolidated financial statements. As a result, revenue, Business Income, operating income, and net income
for the fiscal year ended December 31, 2020 will be presented for the continuing operations of the beverage business.
Accordingly, the full-year earnings forecast for the fiscal year ending December 31, 2020 announced on October 5, 2020 has
been revised as follows. Net income attributable to owners of the parent and basic earnings per share are presented in amounts
that include the profits and losses of discontinued operations, and therefore there are no revisions to the forecasts.
Revisions to the forecast for the fiscal year ending December 2020 (January 1, 2020-December 31, 2020)
Net income (loss)
attributable to theowners of theparentBusiness

Operating

Incomeincome(Loss)(loss)

Million yen

Million yen

Million yenMillion yen

Million yen

819,700

0(9,700)(7,000)(7,000)(39.03 yen)794,500(3,600)(13,300)(9,400)(7,000)(39.03 yen)

Difference (B-A)-25,200-3,600-3,600-2,400-Difference (%)(Reference)
Full-year 2019 results

-3.1%

----

914,783

15,042(55,389)(57,895)(57,952)

Revenue

Previously announced

Net income(loss)

Earnings(Loss) per
share

forecast (A)Revised forecast
announed today (B)(322.22 yen)

*We have introduced “Business Income” as a measure of our underlying or recurring business performance. Business Income deducts costof goods and SG&A from revenue, and includes other income and expenses which we believe are recurring in nature.

End of document3