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

(Translation)
March 4, 2019

Dear Shareholder,

INTERNET DISCLOSURE OF INFORMATION FOR THE NOTICE OF THE
ORDINARY GENERAL MEETING OF SHAREHOLDERS(ITEMS DEEMED TO BE PROVIDED IN ACCORDANCE WITH LAWS AND
REGULATIONS AND THE ARTICLES OF INCORPORATION)

In accordance with laws and regulations and the provisions of Article 16 of the Company’s
Articles of Incorporation, the following matters have been omitted from the attachment to
the Notice of the Ordinary General Meeting of Shareholders for the fiscal year ended
December 31, 2018 due to their posting on the Company’s website(https://www.ccbj-holdings.com/). Thank you for your understanding in this matter.

(1) “Main Businesses,” “Major Locations, etc.,” “Status of Employees,” and“Major financial institutions providing loans to the Company” within “Current
Status of the Coca-Cola Bottlers Japan Holdings Group” in the Business Report
1-2(2) “Accounting Auditor”, “The system to ensure business adequacy” and “Basic
Policies on the Control of the Joint-stock Company” under “Current status of
the Company” in the Business Report
3-8(3) Consolidated Statements of Changes in Equity and Notes to Consolidated
Financial Statements in Consolidated Financial Statements.
9-22(4) Non-consolidated Statement of Changes in Shareholders’ Equity and Notes to
Non-consolidated Financial Statements in Non-consolidated Financial
Statements.
23-26

1. Current Status of the Coca-Cola Bottlers Japan Holdings Group(1) Main Businesses (As of December 31, 2018)
Our Group operates the following businesses:
a. Beverage BusinessOur group manufactures and sells Coca-Cola, soft drinks and other beverage products.
The Company has contracts with The Coca-Cola Company and Coca-Cola (Japan)
Company, Limited that govern the production and sales of Coca-Cola and otherproducts and the use of trademarks.
b. Healthcare & Skincare Business
The Company manufactures and sells vegetable juice made from kale and other healthfood products as well as cosmetics and their related products.
Names of segments

Beverage Business

Healthcare & Skincare Business

Description
Manufacturing and sales of beverage products, the vending
machine-related business, the procurement of raw materials andmaterials, the development, maintenance, and operations of
information systems, the real estate business, and the insurance agency
business
Manufacturing and sales of health food, cosmetics and their related
products, and investment business(2) Major Locations, etc. (as of December 31, 2018)a. Location of the Company
Headquarters: 9-7-1 Akasaka, Minato-ku, Tokyo
Head Office: 7-9-66 Hakozaki, Higashi-ku, Fukuoka, Japanb. Locations of headquarters offices of major subsidiaries:
Names
Coca-Cola Bottlers Japan Inc.
FV Japan Co., Ltd.
Coca-Cola Bottlers Japan Vending Inc.
Coca-Cola Bottlers Japan Sales Support Inc.
Q’sai Co., Ltd.

Locations
Minato-ku, Tokyo
Minato-ku, Tokyo
Higashi-ku, Fukuoka-city
Higashi-ku, Fukuoka-city
Chuo-ku, Fukuoka-city

c. Major production bases(a) Beverage business
Zao Plant (Miyagi), Ibaraki Plant (Ibaraki), Iwatsuki Plant (Saitama), Saitama Plant(Saitama), Tama Plant (Tokyo), Ebina Plant (Kanagawa), Hakushu Plant (Yamanashi),
Tokai Plant (Aichi), Kyoto Plant (Kyoto), Akashi Plant (Hyogo), Daisen Plant (Tottori),
Komatsu Plant (Ehime), Kiyama Plant (Saga), Tosu Plant (Saga), Kumamoto Plant(Kumamoto), Ebino Plant (Miyazaki),(b) Healthcare/skincare businessFukuoka Kounominato Plant (Fukuoka)
d. Sales bases(a) Beverage business
A variety of locations in 38 prefectures within Southern Tohoku, Kanto, Koshinetsu,
Chubu, Kinki, Shikoku and Kyushu areas(b) Healthcare/skincare business
The products are mainly sold through TV shopping and other mail-order system.

1

(3) Status of Employees (as of December 31, 2018)

Notes:

Names of Segments

Number of Employees

Year-on-year change

Beverage business

16,615-46

Healthcare/skincare business

485

-51

Total

17,100-97

The number of Employees above shows the number of persons on active service.

(4) Major financial institutions providing loans to the Company (as of December 31, 2018)
Names of institutions
Amount of loans
MUFG Bank, Ltd.
21,168 million yen
Sumitomo Mitsui Banking Corporation
5,672 million yen
2,880
million yen
Sumitomo Mitsui Trust Bank, Limited
Mizuho Bank, Ltd.
2,880 million yen

22. Current status of the Company(1) Accounting Auditor
a. NameErnst & Young ShinNihon LLC
Notes:
1. KPMG AZSA LLC Limited, our accounting auditor, retired as the term of office expired at the closeof the FY2017 Ordinary General Meeting of Shareholders held on March 27, 2018.
2. On July 1, 2018, Ernst & Young ShinNihon LLC changed its Japanese corporate name from
ShinNihon Yugen Sekinin Kansa Hojin to EY ShinNihon Yugen Sekinin Kansa Hojin but left its
English name unchanged.

b. Amount of Remuneration
Categories

Amount paid

Remuneration for services stipulated in Article 2, Paragraph 1 of
the Certified Public Accountants Act

64 million yen

Remarks(Note)– million yen
Remuneration by the Company and/or its subsidiaries to the
Accounting Auditor

200 million yen

Notes:
1. The audit contract between the Company and the accounting auditor does not distinguish between remuneration
paid for the audit conducted in accordance with the Companies Act and remuneration paid for the audit
conducted in accordance with Financial Instruments and Exchange Act. Accordingly, the amount above is theaggregate amount.
2. The Audit and Supervisory Committee confirmed and reviewed the appropriateness and adequacy of the audit
plans, audit hours, implementation status and grounds for the estimate of the remuneration as submitted by theaccounting auditor before granting approval to the remuneration payable to the accounting auditor.

c. Contents of Non-Audit Services
Not applicable.
d. Policy on Decisions on Dismissal or Non-Reappointment of Accounting Auditor
In the case that it is reasonably judged that the accounting auditor falls under any ofthe dismissal events listed in the items of Article 340, Paragraph 1 of the Companies
Act, the Audit and Supervisory Committee will remove the accounting auditor with theconsents of all members. In this case, a Committee member selected by the Audit andSupervisory Committee will disclose the removal and its reason at the Meeting of
Shareholders convened for the first time after the removal.
Additionally, concerning dismissal or non-reappointment of the accounting auditor, theAudit and Supervisory Committee shall decide contents of a proposed resolution theysubmit to the General Meeting of Shareholders, in the event they judge it necessary to
do so in cases such as where the accounting auditor is recognized to have difficulty inproperly fulfilling its auditing duties.
(2) The system to ensure business adequacya. Overview of the system to ensure business adequacy
In order to establish the system to ensure that the jobs conducted by the Directors comply withthe laws and regulations and the Articles of Incorporation, and other systems to ensure
appropriateness of operation (to be referred to as “internal control” hereinafter), the Company
has made a resolution on “the Internal Control System Basic Policy” at the Board of Directors
Meeting. Please note that a part of the Policy has been reviewed at the Board of Directors
Meeting held on August 1, 2017.
The Basic Policy after being reviewed is as shown below.
(a) System to ensure that performance of duties by Directors and employees of the Group
conforms to laws and regulations and the Articles of Incorporation

3

① The “Code of Conduct” shall be established in order to ensure that all the Directors,
Executive Officers, and employees of the Group comply with laws and regulations and the
Articles of Incorporation to act in conformity with social norms. The Ethics & Compliance
Committee shall be convened periodically in order to reinforce the compliance system andto prevent non-compliance.
② An internal whistle-blowing system against non-compliance, namely, a reporting andconsultation contact separate from the reporting line to immediate managers, shall be set
up.
③ The oversight function of the Board of Directors shall be reinforced by adopting thecompany system where Audit and Supervisory Committee is established in order to ensure
auditing by the Audit and Supervisory Committee where more than a half of the constituent
members are External Directors.
④ The department in charge of internal auditing shall be established in order to audit whether
business activities are conducted appropriately and effectively in conformity with laws andregulations, the Articles of Incorporation, Company Rules and Regulations, etc.
⑤ The Company clearly identifies the firm stance against anti-social forces and organizations
that cause threats to the orders and safety of civil society and that the Company never ties
with such entities. The Company shall never accede to any illegal request and deal withany such request in cooperation with the police, lawyers, etc.
(b) System to retain and manage information related to Directors’ performance of theirduties① The Company shall record information regarding minutes of General Shareholders
meetings, minutes of Board of Directors meetings, documents and other materials related toimportant decision-makings and Directors’ performance of their duties in documents orelectronic media and retain it in accordance with the Rules of Documentation Handling andInformation Security Policy in a manner similar to that for statutory documents.
② The Company’s Directors may inspect such documents, etc. at any time.
(c) Regulations and other systems concerning loss risk management of the Group① In accordance with the Group policy on responding to material business risks and from theviewpoint of management of other risks, significant items shall be reported to the Risk
Management Committee, and the Committee shall determine policies to deal with risks asrequired.
② The Company establishes rules, guidelines, etc. and maintains an organization to execute
effective response to material risks, and ensure the matters to be passed down byimplementing training for the entire Group, etc.
③ The department in charge of risk management in the Company or its subsidiaries is tomonitor the condition of company-wide risks and to take appropriate measures on agroup-wide basis. The Company promptly designates who is in charge of the response to
new risks that arise.
(d) System to ensure efficiency of performance of duties by the Group Directors① The Company’s Board of Directors shall determine Group-wide management policy andgoals shared by the Directors, Executive Officers, employees and others of the Group, anddetermine the efficient method to achieve the goals including the allocation of authority
based on the group’s decision-making rules.
② In addition to Board of Directors Meetings, appropriate forums, such as the Management
Meeting, shall be organized to deliberate significant matters affecting the entire Group,
thereby ensuring that decisions are reached based on considerations of multi-dimensional
aspects.
(e) System to ensure appropriateness of operations in a corporate group, which consists of
the Company and its subsidiaries
The Company shall ensure management integration of the Group through establishment of acorporate philosophy, management policy, the Code of Business Conduct & Ethics and Chartof Authority common throughout the Group and supervise and manage the performance ofthe subsidiaries’ operations.

4(f) Matters concerning employees assisting the Audit and Supervisory Committee to executethe duties if the Audit and Supervisory Committee request the assignment of such
employees, matters concerning the independence of such employees from Directors(excluding Directors serving on the Audit and Supervisory Committee) and mattersrelated to ensuring the effectiveness of instructions given by the Audit and Supervisory
Committee to such employees
The Company shall assign employees assisting the Audit and Supervisory Committee. Suchemployees shall execute the duties under the instructions given by the Audit and Supervisory
Committee in assisting executions of duties by the Audit and Supervisory Committee andshall not receive instructions from Directors (excluding Directors serving on the Audit andSupervisory Committee).
(g) System for reporting by Directors and employees of the Group to the Audit andSupervisory Committee and systems to ensure that reporting parties do not receive
disadvantageous treatment as a result of such reports① Upon discovery of any incident that could cause the Group substantial damage, such asacts in violation of laws and regulations, the Directors (excluding Directors serving on
the Audit and Supervisory Committee), Executive Officers, employees and others of theCompany shall immediately report the matter to the Audit and Supervisory Committee.
② The Internal Audit Department shall regularly report internal audit results and the statusof other activities in the Group to the Audit and Supervisory Committee.
③ The department in charge of compliance shall regularly report the status ofwhistle-blowing in the Group to the Audit and Supervisory Committee.
④ The Company shall prohibit from treating unjustly of the reporter to the Audit andSupervisory Committee, and ensure that this matter would be informed to all the
Executive Officers and employees of the Group.
(h) Matters concerning procedures for advance payment or reimbursement of expenses
incurred in the course of performance of duties by Directors serving on the Audit andSupervisory Committee and policies related to processing expenses or liabilities arisingfrom performance of duties by Directors serving on the Audit and Supervisory
Committee
The Company establishes enough budget for Directors serving on the Audit and Supervisory
Committee each year to fulfill the performance of their duties.
(i) Other systems to ensure that the Audit and Supervisory Committee’s audit is conductedeffectively① The Representative Director and the Audit and Supervisory Committee member shallhold a meeting on a regular basis to exchange opinions in order to communicate witheach other.
② The Representative Director shall prepare an environment so that the Audit andSupervisory Committee member is able to cooperate with external experts, such as
lawyers and certified public accountants, in the course of its duties whenever it deems it
necessary.
③ The Audit and Supervisory Committee shall regularly provide opportunities for theexchange of opinions with the Internal Audit Department and accounting auditor.
b. Overview of the operational status of the system to ensure business adequacy(a) Initiative for ensuring compliance
The Company has developed its corporate philosophy and Code of Business Conduct& Ethics for the entire Group so that all officers and employees will comply with laws
and regulations and the Articles of Incorporation to act in conformity with social
norms, and notifications are being ensured by holding briefing sessions, etc.
Additionally, CCBJH Group Ethics & Compliance Committee is held 4 times a yearwith the President as the Chairperson to work upon reinforcement of the compliancestructure and prevention of occurrence of non-compliance cases.
Furthermore, Regulations for Handling Whistle-Blowing has been developed, and aninternal whistle-blowing system is being operated by establishing Ethics &5

Compliance Reporting Hotline internally and at an external law office to work uponearly detection and improvement of non-compliance cases.
(b) Initiative on loss risk management
The Company has developed CCBJH Group Rules of Risk Management, and is
working upon preventing occurrence of various risks that may arise for the Company
and is ensuring the acts for minimizing the damage in case any risk occurs in a prompt
and adequate manner.
Additionally, CCBJH Group Risk Management Committee has been held for 4 times
with the President as the Chairperson to hold discussions regarding matters concerning
risk management for the Company’s business, and is ensuring risk management
activities for the entire Group.
Furthermore, in order to suppress the expansion of damage caused by natural disasters,
etc., disaster drills and safety confirmation drills are being held assuming an outbreakof a large-scale disaster.
(c) Initiative on ensuring adequacy and efficiency of the jobs conducted
The Company has established the Audit and Supervisory Committee in order to further
enrich deliberation on matters with particular importance at the Board of Directors
Meeting, whereas determination on conduct of other businesses is entrusted to the
Directors.
Additionally, authority is delegated to Executive Officers and Heads of Functions /Departments so that decisions are made regarding business conduct based on theapproval authority standard in accordance with the Group operational structure toensure acceleration and streamlining of management decisions made by the
management members.
(d) Initiative on ensuring that audit by the Audit and Supervisory Committee be
conducted in an effective manner
The Audit and Supervisory Committee member is conducting audit for the status ofbusiness conduct by the Directors, Executive Officers, and employees in accordancewith relevant laws and regulations, the Articles of Incorporation, and the Regulationsof the Audit & Supervisory Committee prepared by the Audit and Supervisory
Committee by attending to important meetings such as management meetings, etc. forthe operating companies consisted of the Directors and Executive Officers, and byreferring to the audit results, etc. provided by the departments in charge of internal
audit.
The Audit and Supervisory Committee member is periodically exchanging opinions
regarding such audit results with the Representative Directors.
(3) Basic Policies on the Control of the Joint-stock Company
The contents of the basic policy at the end of this fiscal year are as follows.
a. Details of Basic Policy
The Company believes that the persons who control decisions on the Company’s
financial and business policies need to understand the source of the Company’s
corporate value and will make it possible to continually and persistently ensure andenhance the Company’s corporate value and, in turn, the common interests of its
shareholders. The Company believes that a decision on any proposed acquisition thatwould involve a change of corporate control of the Company should ultimately bemade based on the intent of its shareholders as a whole. Also, the Company would not
reject a large-scale acquisition of the shares in the Company if it would contribute to
the corporate value of the Company and, in turn, the common interests of its
shareholders.

6However, there are some forms of large-scale acquisition of shares that benefit neither
the corporate value of the target company nor the common interests of its shareholders:those with a purpose that would obviously harm the corporate value of the target
company and, in turn, the common interests of its shareholders; those with thepotential to substantially coerce shareholders into selling their shares; those that do notprovide sufficient time or information for the target company’s board of directors andshareholders to consider the terms of the large-scale acquisition of shares, or for thetarget company’s board of directors to present a business plan or an alternative
proposal; and those that require the target company to discuss or negotiate with theacquirer in order to procure more favorable terms for shareholders than those presented
by the acquirer.
The Company believes that the persons who control decisions on the Company’s
financial and business policies need to be persons who (A) fully understand (i)providing freshness and refreshment to people around the world and enrooting the“Coca-Cola” brand, which is now a part of our life style, in local communities; (ii)passionately making efforts to ensure quality and safety in order to provide “quality
and safe products for anyone, anytime and anywhere”; (iii) appreciating employees
who have a strong sense of responsibility to thoroughly pursue customer satisfaction,and treasuring each employee’s challenges and lifestyle; and (iv) contributing to local
communities and proactively dealing with environmental issues with a strong sense of
responsibility as a corporate citizen that continues to strive to assist in the realization of
an affluent society, (B) preserve relationships of mutual trust with customers, business
partners, shareholders and employees and perform to their expectations, and (C) makeit possible to continually and persistently ensure and enhance the Company’s corporate
value and, in turn, the common interests of its shareholders from a mid- to long-term
perspective.
Therefore, the Company believes that a person who would make a large-scaleacquisition of the shares in the Company in a manner that does not contribute to thecorporate value of the Company and, in turn, the common interests of its shareholders
would be inappropriate to become a person who would control decisions on the
Company’s financial and business policies.
The Company believes that it is necessary to ensure and enhance the corporate value of
the Company and, in turn, the common interests of its shareholders by taking thenecessary and reasonable countermeasures against a large-scale acquisition of theshares in the Company by such a person.
b. Initiatives to realize the basic policies(a) Summary of special initiatives that contribute to realizing the basic policies
The Group not only assumes a leading role in transforming Coca-Cola business inJapan by deploying various joint initiatives such as product development and test
marketing with The Coca-Cola Company and Coca-Cola (Japan) Company,
Limited (100% funded by The Coca-Cola Company) as a strategic partner, but also
strives to become a company trusted by the stakeholders of consumers, customers,
shareholders and employees.
While major growth of soft drink industry cannot be expected as the market
already matured, restructuring further escalates for survival with increased numberof business alliances among soft drink companies and the business environment
surrounding our company is projected to be more intense.
Under such circumstances, the Group made progress building a foundation thatenables future growth and raises profit generation capabilities in order to drive
transformations of the Group business structure with a long-term perspective and7

to deliver sustainable growth. This was achieved with the three pillars of “Growth”,“Efficiency” and “Structure” as basic strategies, and with each basic strategy being
put into solid action.
The Company also made a transition to a company with the Audit andSupervisory Committee after gaining approval at the FY2015 General Meeting of
the Shareholders on March 23, 2016 in order to further reinforce the governancesystem. The Company has introduced corporate executive officer system andimplemented a reform of the Board of Directors in March 1999 to separate
decision making, business management and business execution functions, theCompany stipulated in its Articles of Incorporation Article 26 that “In accordancewith Article 399-13, Paragraph 6 of the Companies Act, based on that resolution,
the Board of Directors may delegate all or a portion of decisions regarding theexecution of important duties (excluding the items listed in Paragraph 5 of thesame article) to the Directors.” associated with the shift to allow more fruitfuldeliberations of highly important matters in Board Meeting and facilitates speedy
decision making of other matters by the management below Representative
Director. In addition to setting up a system that allows Directors including
full-time Director serving on the Audit and Supervisory Committee to participate
important meetings such as Management Committees that is made up of Executive
Officers and to fully monitor business executions of Executive Officers and asystem was put in place to consult with lawyers and accounting auditor for advice
as needed in the event of any uncertainties in the business executions.
(b) Outline of measures to prevent inappropriate persons from controlling the financeand business policy decisions of the Company in light of the basic policy
Upon any substantial acquisition of the Company shares, the Company strives toproactively collect and timely disclose information in order to ensure and improvethe corporate value of the Company and the common interest of shareholders aswell as make appropriate measures as needed under the scope permitted by laws
and regulations and the Articles of Incorporation.
When Board Meeting determines it necessary to reapply anti-takeover measures inorder to ensure and improve the corporate value of the Company and the common
interest of shareholders, taking into considerations of the future trend of the society,
the Company consults with shareholders at the Meeting of Shareholders as
stipulated in the Articles of Incorporation for decision of the implementation.
c. Decisions of the Company’s Board of Directors regarding specific measures andreasons therefor
The measure described in the previous b. (a) was introduced as a specificmeasure to continuously and sustainable improve the corporate value of theCompany and the common interest of shareholders, and are consistent with theCompany’s basic policy.
In addition, the measure described in the previous b. (b) was introduced as a
specific measure to ensure and improve the corporate value of the Company andthe common interest of shareholders as needed under the scope permitted by laws
and regulations and the Articles of Incorporation focusing on the intention ofshareholders, and it is not intended to undermine the shareholders’ common
interests or preserve the positions of the Company officers.

8

Consolidated Statement of Changes in Shareholders’ Equity
For the fiscal year ended December 31, 2018

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

Capital stock
Balance as of January 1, 2018

Sharepremium

Retainedearnings

Other
Comprehensive income
accumulated

Treasuryshares

Noncontrollinginterests

Total

Total

15,232450,498

184,317(4,693)

9,258

654,611427

655,038

Total comprehensive income
Net profit for the year－－

10,117－－

10,11745

10,162Other comprehensive
income－－－－(6,965)(6,965)－(6,965)

Total comprehensive income
for the year－－

10,117－(6,965)

3,152

45

3,197

－

－

(9,173)－－(9,173)(21)(9,194)

－

(25)

－

(67,961)－(67,987)－(67,987)

－

1

－

4

－

4

－

4

－

67

－

－

－

67

－

67

－

－

(2,843)

－

2,843

－

－

－

－

－

－

－

(221)

(221)

－

(221)

－

(7)

－

－

－

(7)

7

－

－

36

(12,016)(67,958)

2,622(77,316)(14)(77,329)

15,232450,533

182,418(72,651)

4,915

580,448458

580,906

Transactions with owners, etc.
Dividends of surplus
Purchase of treasury stock
Disposal of treasury stock
Share-based paymenttransactions
Reclassification fromaccumulated othercomprehensive income toretained earnings
Reclassification fromaccumulated othercomprehensive income tonon-financial assets
Other changes
Total transactions with owners
Balance as of December 31,
2018

Note:

Amounts less than one million yen are rounded.

9Notes to Consolidated Financial Statements(Notes to significant matters as the basis for preparation of consolidated financial statements)
1. Accounting standards of consolidated financial statements
The consolidated financial statements of the Company Group's are prepared from thecurrent year ended December 31, 2018 in accordance with International Financial
Reporting Standards (IFRS) pursuant to Article 120, Paragraph 1 of the Rules of Corporate
Accounting.
For the consolidated financial statements, certain disclosure items required by IFRS havebeen omitted pursuant to the provision of the later part of that paragraph.
2. Matters on the scope of consolidation(1) Number of consolidated subsidiaries: 11
Nippon Supplement, Inc., which was a consolidated subsidiary of the Company, was
excluded from the scope of consolidation as a result of selling all its shares.
Q'SAI USA Incorporated, which was a consolidated subsidiary of the Company, was
excluded from the scope of consolidation from the current year ended December 31,
2018 as a result of liquidation.
(2) Names of major consolidated subsidiaries
The names of major consolidated subsidiaries are as described in “(6) Status of
Significant Subsidiaries 1. Current Status of the Coca-Cola Bottlers Japan HoldingsGroup, Business Report”.
3. Matters on the application of the equity method(1) Number of affiliates accounted for using the equity method: 2(2) Names of affiliates accounted for using the equity method
APEX Nishi-Nihon Corporation
Resources Co., Ltd.
4. Matters on accounting standards(1) Measurement of financial assets
a. Classification and measurement of financial assets
At initial recognition, financial assets are classified as either subsequently measured
at amortized cost or at fair value. Financial assets measured at fair value throughprofit or loss are initially recognized at fair value. Financial assets measured at fairvalue through other comprehensive income or at amortized cost, are initiallyrecognized at fair value plus transaction costs directly attributable to the acquisition.
The Group determines the classification under IFRS 9 based on facts andcircumstances, and designates equity instruments as equity instruments measured atfair value through other comprehensive income.
(a) Financial assets measured at amortized cost
Financial assets are classified as measured at amortized cost if both of thefollowing conditions are met: the objective of the Group's business model is tohold the assets in order to collect contractual cash flows; and the contractual
terms give rise on specified dates to cash flows that are solely payments ofprincipal and interest on the principal amount outstanding.
(b) Financial assets measured at fair value10

If any of two conditions above are not met, financial assets are classified asmeasured at fair value. For financial assets measured at fair value, the Groupmakes the determinations on an instrument-by-instrument basis whether torecognize it as measured at fair value through profit or loss, or to makeirrevocable designation as measured at fair value through other comprehensive
income, except for equity instruments held for trading purposes which must be
measured at fair value through profit or loss.
For derivatives, see "c. Derivatives and hedging activities."
Financial assets are subsequently measured as follows according to theirclassification.
(a) Financial assets measured at amortized cost
These are measured at amortized cost using the effective interest method andadjusted for impairment loss, if any. Amortizations using the effective interest
method and gains or losses on derecognition are recognized in profit or loss.
(b) Financial assets measured at fair value
These are measured at fair value at the reporting date. Changes in fair value arerecognized in profit or loss or in other comprehensive income depending on theclassification of financial assets. Dividends from equity instruments designated asmeasured at fair value through other comprehensive income are recognized in
profit or loss. When equity instruments designated as measured at fair value
through other comprehensive income are disposed of, cumulative changes in fairvalue recorded in accumulated other comprehensive income are reclassified toretained earnings.
b. Impairment
The Group calculates expected credit losses at the end of each period in order toassess collectability of financial assets measured at amortized cost. For financial
instruments whose credit risk has not increased significantly since initial recognition,
allowance for doubtful accounts is recognized at an amount of 12-month expectedcredit losses. For financial instruments whose credit risk has increased significantly
since initial recognition, allowance for doubtful accounts is recognized at an amountof lifetime expected credit losses. However, allowance for doubtful accounts for
trade receivables are always measured at lifetime expected credit losses.
Interest income of financial assets with significantly increased credit risk andobjective evidence of impairment, is calculated through multiplying the carrying
amount of the assets less allowance for doubtful accounts by effective interest rate.
The Group considers followings when determining whether objective evidence ofimpairment exists:
・significant financial difficulty of the issuer or the borrower;・a breach of contract, such as a default or delinquency in the payment ofinterest or principal;
・granting of concession for economic or legal reasons related to the borrower's
financial difficulty that the Group would not otherwise consider;・increased likelihood of bankruptcy or other financial reorganization of theborrower; or・the disappearance of an active market for that financial asset because offinancial difficulty.

11

The Group directly reduces the carrying amount of a financial asset when it has no
reasonable expectations of recovering the financial asset in its entirety or a portion
thereof. If the credit risk subsequently decreases and the decrease is clearly
attributable to the event occurring after the recognition of impairment (such as an
improvement in the credit rating of the borrower), the reversal of the impairment isrecognized in profit or loss.
c. Derivatives and hedging activities
Derivatives are initially recognized at fair value on the date of contract, andsubsequently remeasured at fair value on each reporting date. The method torecognize gains or losses arising from remeasurement depends on whether thederivative is designated as a hedging instrument and, the nature of the hedged item,
if designated. The Group designates certain derivatives as hedging instruments incash flow hedge (i.e., hedge of particular risk associated with recognized asset or
liability or a highly probable forecast transaction).
At the inception of the transaction, the Group documents the relationship between
the hedging instrument and the hedged item, as well as its risk management
objective and strategy for undertaking the hedge transaction. The Group also
documents its assessment, both at the hedge's inception and on an ongoing basis, ofwhether the derivative used in hedging transactions are effective in offsettingchanges in cash flows of the hedged item.
The effectiveness of a hedge is assessed on an ongoing basis, and a hedge isconsidered to be effective when all of the following requirements are met: there is an
economic relationship between the hedged item and the hedging instrument; theeffect of credit risk does not dominate the value changes resulting from that
economic relationship; and the hedge ratio of the hedging relationship is the same asthat resulting from the quantity of the hedged item actually hedged and the quantityof the hedging instrument.
The effective portion of changes in fair value of a derivative designated andqualifying as a hedging instrument in cash flow hedges is recognized in othercomprehensive income. Gains or losses related to ineffective portions are recognizedin profit or loss immediately.
Accumulated gains or losses recognized through other comprehensive income arereclassified into profit or loss in the period in which the cash flows from the hedged
item affect profit or loss. However, if a hedged forecast transaction subsequently
results in the recognition of non-financial assets (e.g. inventories, or property, plantand equipment), gains or losses previously recognized in other comprehensive
income are reclassified and directly included in the initial cost of the assets. Suchamounts are ultimately recognized as cost of sales in the case of inventories, and as
depreciation in the case of property, plant and equipment.
If the qualifying criteria for hedge accounting are no longer met due to the expiry or
sale of the hedging instruments, hedge accounting is discontinued prospectively. If
the hedged future cash flows are still expected to occur, accumulated gains or losses
recognized in other comprehensive income continue to be recognized asaccumulated other comprehensive income. If forecast transaction is no longer
expected to occur, gains or losses recognized in other comprehensive income are
immediately reclassified to profit or loss.
(2) Measurement of Inventories
Inventories are valued at the lower of cost or net realizable value. Trade discounts,

12rebates or other similar items, and interest incorporated into the nominal amount are
deducted from the cost. The production costs include the costs of direct materials andany direct labor and manufacturing overheads. Net realizable value represents theestimated selling price less the estimated costs necessary to make the sale and the costs
incurred in marketing, sale and distribution.
(3) Measurement and depreciation or amortization of property, plant and equipment andintangible assets
a. Property, plant and equipment (excluding lease)
Property, plant and equipment is measured initially at cost and subsequently carriedat the cost less of any accumulated depreciation and any accumulated impairment
losses.
Costs incurred to enlarge, upgrade or improve the items which increase productivity,
capacity or efficiency, or extend the useful lives of the assets are capitalized as anincrease in the cost of the related asset, while repairs and maintenance expenses arecharged to expense as incurred.
The depreciable amount is the cost of the asset less the respective estimated residual
values. The Group depreciates its property, plant and equipment primarily using thestraight-line method over the estimated useful lives, as follows:
Years of estimated useful lives
Buildings and Structures
Machinery, Equipment andVehiclesVending machines

2 – 602 – 20
4–9

The depreciation methods estimated useful lives and residual values are reviewed at
the end of each reporting period, and any necessary changes are applied
prospectively as a change in accounting estimate. The Group does not depreciate its
land and construction in progress.
b. Goodwill
Goodwill arising from a business combination is not amortized and is subsequently
measured at cost less any impairment losses. It is tested for impairment annually andif events or changes in circumstances indicate a potential impairment.
For the purpose of impairment testing, goodwill is allocated to each CGU or groupof CGUs, which is expected to benefit from the synergies of the combination. A
CGU is the smallest group of assets that generates independent cash inflows , whichis smaller than business segments. Each CGU or group of CGUs to which the
goodwill is allocated represents the lowest level within the entity at which the
goodwill is monitored for internal management purposes.
When the impairment test shows that the recoverable amount of the CGU is less thanits carrying amount, the impairment loss is recognized for the difference, which isallocated first to reduce the carrying amount of any goodwill allocated to the CGU orgroup of CGUs, and then to the other assets of the CGU or group of CGUs pro rata
on the basis of the carrying amount of each asset within the CGU or group of CGUs.
Any impairment loss on goodwill is recognized in profit or loss and is not reversed
in subsequent periods.

13

c. Intangible assets (excluding lease)
An intangible asset is an identifiable non-monetary asset without physical substancefrom which future economic benefits are expected to flow to the Group. Intangible
assets are initially recognized at cost or production cost. After initial recognition,
intangible assets are carried at cost less accumulated amortization and any
accumulated impairment losses. The Group assesses whether the useful life of theintangible asset is identifiable and, if identifiable, evaluates the useful life based on
the period over which the asset is expected to be used.
Intangible assets acquired separately are measured at cost at initial recognition.
Intangible assets acquired in a business combination are recognized separately fromgoodwill and are measured at fair value at the acquisition date when such assets meetthe definition of intangible asset and are identifiable, and their fair values can bemeasured reliably. Expenses incurred for the acquisition of software is carried as
intangible assets. Development costs for internally developed software are carried as
intangible assets when it is technically feasible and it is more likely than not that
future economic benefits will flow to the Group.
Major intangible assets with identifiable useful lives are software and theamortization is determined using the straight-line method over their estimated useful
lives (5-10 years).
The amortization methods, estimated useful lives and residual values are reviewed at
the end of each reporting period, and any necessary changes are applied
prospectively as a change in accounting estimate.
Contract related intangible assets
The Group's contract related intangible assets associated with the acquisition of
Coca-Cola East Japan Co., Ltd. are the contracts entered into with The Coca-Cola
Company ("TCCC") and related to the Group's exclusive rights to manufacture,
distribute and sell under Coca-Cola brand in certain areas.
The term of the contract is 10 years and it will be automatically renewed without
review for renewal or extension.
The Group accounts for contract related intangible assets attributable to the bottlingcontract as intangible assets with indefinite useful lives. The Group believes that it isunlikely that it will not renew or extend the contract considering prior relationships
with TCCC and the possible adverse effects on franchisors from non-renewal of thecontract. Accordingly, there are limitations in predicting the period over which theassets may generate net cash flows.
Contract related intangible assets are not amortized, but are tested for impairment
annually and if events or changes in circumstances indicate a potential impairment.
d. Leases
Leases are classified as finance leases when the terms of the lease agreement indicatethat substantially all the risks and rewards incidental to the ownership of the asset aretransferred. All other leases are classified as operating leases.
(a) Finance leases
For finance leases in which the Group acts as lessee, according to the nature of
the assets, the Group recognizes the cost of the leased assets in asset and,simultaneously, the same amount is recognized in liability. This amount is thelower of the fair value of the leased asset or the present value of the minimum
lease payments agreed on the starting date of the lease which includes any
purchase option that will be almost certainly exercised.

14

The assets under finance lease are depreciated over the respective lease terms.
(b) Operating leases
Costs of operating leases are recognized on a straight-line basis over therespective lease terms in of profit or loss.
(4) Criteria for recording significant provisions
Provisions are recognized when the Group has present legal or constructive obligation asa result of past events, it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation, and a reliable estimate can be made of
the amount of the obligation.
Provisions are measured at the present value of the amount required to settle or transfer
the obligation based on the best possible estimation, taking into account the information
available on the event and its consequences. Adjustments arising from discounting theprovision are recognized as finance costs when accrued.
(5) Employee benefits
a. Short-term employee benefits
Short-term employee benefits are expensed as the related service is provided. A
liability is recognized for the amount expected to be paid if the Group has a present
legal or constructive obligation to pay the amount as a result of past service provided
by the employee and the amount can be estimated reliably.
b. Defined contribution plans
Contributions to defined contribution plans are recognized as expenses for a periodof employees’ providing services.
c. Defined benefit plans
The Group’s net obligation related to defined benefit plans is calculated separately
for each plan by estimating the amount of future benefit that employees have earnedin the current and prior periods, discounting that amount and deducting the fair valueof any plan assets.
The calculation of defined benefit obligations is performed annually by a qualified
actuary using the projected unit credit method.
Remeasurements of defined benefit obligations, which comprise actuarial gains andlosses, the return on plan assets (excluding interest) and the effect of the asset ceiling,
are recognized immediately in other comprehensive income and directly reclassified
to retained earnings from accumulated other comprehensive income. The Group
determines the net interest expense (income) on defined benefit obligations for thecurrent reporting period by multiplying the discount rate used to measure the defined
benefit obligations (assets) at the beginning of the period by the defined benefit
liabilities (assets) and any plan assets.
Any changes in defined benefit obligations (assets) during the period as a result ofcontributions and benefit payments are taken into consideration when calculating thedefined benefit obligations (assets) at the beginning of the period. Net interest
expense and other expenses related to defined benefit plans are recognized in profit
or loss.
When the benefits of a plan are changed or when a plan is curtailed, the resulting
change in benefit that relates to past service or the gain or loss on curtailment isrecognized immediately in profit or loss. The Group recognizes gains and losses on
the settlement of a defined benefit plan when the settlement occurs.

15

d. Long-term employee benefits
A liability is recognized for the amount expected to be paid under long-term
employee benefits, if the Group has a present legal or constructive obligation to pay
the amount as a result of past service provided by the employee and the amount canbe estimated reliably. The Group's long-term employee benefits are calculated bydiscounting the estimated future benefit to its present value.
The discount rate is determined based on the market yield of AA-rated corporate
bonds at the reporting date, whose remaining period approximates the averageremaining service period of employees.
(6) Accounting of consumption tax, etc.
It is based on the before-tax method.
(7) Recognition of revenue
The Group recognizes revenue from contracts with customers by applying thefollowing five steps, except for interest and dividend revenue which is accounted forunder IFRS 15:
Step 1: Identify the contracts with customers
Step 2: Identify the performance obligation in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligation in the contract
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation
The Group sells carbonated beverages, coffee, blended tea, mineral water, other softdrinks and healthcare products. Revenue from these products is generally recognized
upon delivery, as the performance obligation is considered to be satisfied upondelivery when the customer obtains control over these products. Revenue is measured
at the consideration promised in contracts with customers less discounts, rebates andreturns.

16

(Notes regarding Consolidated Statement of Financial Position)
1. Assets pledged as collateral and secured liabilities(1) Assets pledged as collateral
Buildings and structures
Land
Total
(2) Secured liabilities
Current portion of long-term loans payable
Long-term loans payableTotal

184 million yen
202 million yen
385 million yen
18 million yen
148 million yen
166 million yen

2. Accumulated depreciation of property, plant and equipment

272,725 million yen(Note regarding Consolidated Statement of Income)In other expenses, loss on natural disaster of 8,874 million yen was due to the loss on
Beverage Business segment resulting from the flood damage to facilities, inventories and sales
equipment in certain manufacturing and sales bases, including Hongo Plant in Mihara City,
Hiroshima, caused by extraordinary rain in July 2018. The breakdown is as follows: loss on
fixed assets of 5,968 million yen, loss on inventories of 1,471 million yen and others at 1,435
million yen.
(Notes regarding Consolidated Statements of Changes in Shareholders’ Equity)
1. Matters related to the total number of issued and outstanding shares
Number of
Number of
Number of shares increased shares for
decreased shares
Type of sharesofthe current
for the current
January 1, 2018
consolidated fiscal consolidated fiscal
year
year
Common206,269––
stock
thousand shares
2. Matters concerning dividends of surplus(1) Dividends paid
Total amountResolution
Type of shares of dividends(million yen)March 27, 2018
Ordinary generalcommon stock
4,494
meeting ofshareholders
August 10, 2018
common stock
4,679
Board meeting

17

Dividend
per shareamount (Yen)

Number of sharesat the end ofcurrent
consolidated fiscalyear
206,269
thousand shares

Reference date

Effective date

22 December 31, 2017 March 28, 201825

June 30, 2018

September 3,2018

(2) Among the dividends whose reference dates belong to the current consolidated fiscal year, thedividends whose effective date come after the end of the current consolidated fiscal year.
Dividend
Total amount
per share
Type of
Source ofReference date Effective date
Resolutionof dividends
amountsharesdividends(million yen)
(Yen)
March 26, 2019
December 31,
March 27,
Retained
Ordinary generalcommon
25
4,587
2018
2019
earnings
meeting ofstock
shareholders(Note regarding revenue)
Regarding the contents of performance obligations under the contract with customers in major
business of the Group and the point of recognition of revenue related to performance obligation,please refer to 4. Matters concerning accounting standards (7) Recognition of revenue is stated.

18

(Notes regarding financial instruments)
1. Matters concerning the situation of financial instruments(1) Financial risk management
The Group is exposed to the following risks arising from financial instruments which are
discussed below.
・ Credit risk
・ Liquidity risk・ Market risk
The Group faces a variety of financial risks (credit risk, liquidity risk and market risk
(share price risk, interest rate risk, foreign exchange risk and price risk)) in its operations.
The Group manages its risks based on established policies to prevent and reduce thesefinancial risks. The Group’s risk management policies are established to identify andanalyze the risks faced by the Group, to set appropriate risk limits and controls and tomonitor risks and adherence to limits. Risk management policies and systems are regularly
reviewed to reflect market conditions and the business activities of the Group. The Group
offers training and develops manuals and procedures to maintain control environment inwhich all employees understand their roles and disciplines.
Based on the Group’s risk management policy, derivatives are used to hedge certain risk
exposures. The Group’s policy is to use derivatives for hedging foreign exchange risk andprice risk, but not for speculative transactions. The Company’s finance division identifies,
evaluates and hedges financial risks.
a. Credit risk
Credit risk is the risk that one party to a financial instrument will be unable to meetits obligations and the other party will incur financial losses. In the course of theGroup's business, trade and other receivables and other financial assets (including
deposits paid, marketable securities and other receivables) are exposed to the credit
risk of counterparties. The carrying amount of the financial assets presented in the
consolidated financial statements after impairment is the maximum exposure tocredit risk of the Group of financial assets that does not take into account theappraised value of collateral acquired. In addition, with respect to certain
counterparties, we have no significant exposure to credit risk and there are no undue
concentrations of credit risk that we have specifically managed.
In order to manage credit risk, the Group manages payment dates and balances bycustomer in accordance with internal customer management regulations, andmonitors the credit standing of major customer on a regular basis. In order tomitigate credit risk in derivative transactions, in principle, the Group only transacts
with financial institutions with high credit ratings.
In addition, the Group determines the allowance for doubtful accounts based on its
credit risk profile. For trade and lease receivables, the Group measures the allowancefor doubtful accounts at the same amount as lifetime expected credit losses. For
receivables other than trade receivables and lease receivables, the allowance for
doubtful accounts is generally measured at an amount equal to the 12-month
expected credit losses. However, when the credit risk increases significantly from theinitial recognition, the allowance for doubtful accounts is recognized at an amountequal to the lifetime expected credit losses. The Group determines whether or notcredit risk has significantly increased based on changes in the risk of default,
considering factors such as information of past due date and deterioration in the

19

financial condition of the obligor. All receivables other than trade receivables forwhich the allowance for doubtful accounts is measured at an amount equal to the
12-month expected credit losses are measured on a collective basis.
The amount of expected credit losses on trade receivables is calculated based on thesimplified approach and entails first classifying the receivables according to thecredit risk characteristics of the counterparty, and then multiplying each respective
receivable by a provision rate that is determined by adding projection of future
economic conditions to the historical rate of credit losses for the specific risk
classification.
The amount of expected credit losses on receivables other than trade receivables iscalculated based on the principle approach and entails two different methods
depending on risk assessment. For receivables for which credit risk has not been
considered to have increased significantly, the carrying amount is multiplied by theprovision rate that is determined by adding projection of future economic conditions
to the historical rate of credit losses of similar assets. For expected credit losses on
assets that are deemed to have significantly increased credit risk and credit-impaired
financial assets, the expected credit loss is measured as the difference between thepresent value of estimated future cash flow discounted at the initial effective interest
rate of the asset, and its carrying amount.
b. Liquidity risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting theobligations associated with its financial liabilities that are settled by delivering cash
or other financial assets. The Group’s approach to managing liquidity is to ensurethat it will have sufficient liquid assets to meet its obligations when due, under bothnormal and stressed conditions, without incurring material losses or risking damage
to the Group’s reputation. The finance headquarters of the Company mainly manages
the Group’s liquidity risk by maintaining an appropriate level of retained earnings
and credit facilities, and monitors the actual and forecasted cash flows.
c. Market risk
Market risk is the risk that changes in market prices – such as interest rates andequity prices – will affect the Group’s profit or the value of marketable securities it
possesses. The objective of market risk management is to manage and control market
risk exposure within acceptable parameters while optimizing the return.
(a) Interest rate risk
The majority of the Group’s loans and bonds are under fixed interest rates, andthe impact of interest rate fluctuation risk on the Group’s profit or loss is limited.
Therefore, the Group considers that the interest rate risk is immaterial and has not
performed a sensitivity analysis such as basis point value.
(b) Share price risk
The Group is exposed to share price risk as a result of its holdings of equity
securities. Equity securities are held for purposes other than trading, and aremainly classified into financial assets measured at fair value through othercomprehensive income.
(c) Foreign exchange risk
The Group is exposed to foreign exchange risks, particularly relating to U.S.
dollars, because Coca-Cola Bottlers Japan Inc., which is the Company's
consolidated subsidiary, purchases raw materials denominated in foreign20

currencies. Foreign exchange risks arise from forecast transactions, such as futurepurchases, or from assets and liabilities already recognized. The Group uses
forward exchange contracts to hedge foreign exchange risk. Hedge accounting isapplied to transactions that qualify for hedge accounting. Receivables andpayables denominated in foreign currencies are subject to the risk of foreignexchange rates fluctuations. However, the impact of this risk is limited as it isoffset by forward exchange contracts and other transactions.
(d) Price risk
Coca-Cola Bottlers Japan Inc., which is the Company's consolidated subsidiary,purchases raw materials that are subject to price fluctuations due to weather,natural disasters and other factors. Therefore, the Group is exposed to price riskof raw materials. The Group engages in commodity swap transactions to mitigate
risks of fluctuations in raw materials prices.
2. Matters concerning fair values etc. of financial instruments
The amount recorded on consolidated statement of financial position as of December 31, 2018,
fair values and the difference between these amounts are as follows.

Amount recorded on
consolidated statementof financial position(million yen)
Long-term loans payable and bonds

Fair values(million yen)

77,913Difference in amount(million yen)

78,704(Note) Long-term loans payable and bonds payable include the current portion of long-termloans payable and bonds payable. In addition, financial instruments whose fair values
approximate their carrying values are not included in the table above.
The principal valuation techniques used for fair value measurements of financial
instruments are as follows.
Loans payable
For loans payable with variable interest rates, fair values are deemed as their carrying
amounts, as the rates reflect the market interest rate within the short term. For loans payable
with fixed interest rates, the fair value is calculated using the present value of future cash
flows discounted using the current interest rate adjusted for the remaining maturity period
and credit risk.
Bonds payable
For bonds payable with quoted price, the fair value is estimated based on the quoted prices.
For bonds payable without quoted prices, the fair value is calculated using the present valueof future cash flows discounted using the current interest rate adjusted for the remaining
maturity period and credit risk.
(Per share information)
Equity attributable to owners of the parent per share
Basic earnings per share

21

3,163.63 yen
52.68 yen(792)

(Significant subsequent events)
The Company, at its Board of Directors meeting held on February 14, 2019, resolved to
implement a voluntary retirement program (solicitation of voluntary retirees) as set forth
below.
1. Reason for implementing the voluntary retirement program
Aiming for sustainable growth of our group, we wish to promote measures to encourage
the creation of an efficient new system aimed at creating greater-than-ever-value in termsof community-rooted and customer-oriented activities and to provide the opportunity ofchoice in recognition of the diverse values held among individual employees. As part thesegoals, we will carry out a voluntary retirement program (solicitation of voluntary retirees).
2. Outline of voluntary retirement program(1) Eligible employee: Full-time employees over 45 years old who are enrolled in ourgroup company and have served at least one year (Someorganizations and employees engaging in certain job
responsibilities are not eligible to apply)(2) Expected number of applicants: Approximately 700 people(3) Application period: From March 11, 2019 to March 28, 2019(4) Retirement date: April 30, 2019 (Exception applies depending on applicants’ job
assignment)(5) Special considerations: In addition to regular retirement allowance, special retirement
allowance and outplacement service will be offered
3. Outlook
The special retirement allowance and expenses for outplacement support will be includedin the consolidated financial result for the fiscal year ending December 31, 2019 as otherexpenses. The number of applicants and amount of special retirement expenses have not
yet to be determined at this moment.

22Non-consolidated Statement of Changes in Shareholders’ Equity
For the fiscal year ended December 31, 2018
Shareholders’ equity
Additional paid-in capital

Retained earnings

Capitalreserve

Other
additional
paid-in
capitalTotal
additional
paid-in
capitalLegal reserve

15,232

108,167

158,785

266,951

Profit

－
－

－
－

－
－

Reversal of provisions－－

Acquisition of treasury
stock

－

－

Disposal of treasury
stock

－

(Net) Changes in items
other than shareholders’equity during this term
Total changes during thisterm

Balance as of Jan. 1, 2018

Total
shareholders’equityTotal net
assets(4,693)405,242405,242－－(9,173)
4,395(9,173)
4,395

Other
retainedearnings(Note 1)

Total retained
earnings

3,317

124,435

127,752－－－－(9,173)
4,395(9,173)
4,395

－

－

－

－

－

－

－

－

－

－

－

－

－

(67,961)(67,961)(67,961)

－

1

1

－

－

－

4

4

4

－

－

－

－

－

－

－

－

－

－

－

－

1

1

－

(4,777)(4,777)(67,958)(72,735)(72,735)

15,232

108,167

158,785

266,952

3,317

119,657

122,974(72,651)

332,507332,507

Commonstock

Treasurystock

Changes during this term
Dividends of surplus

Balance as of Dec. 31,
2018

Note 1: Breakdown of other retained earnings(Millions of yen)
Other retained earnings
Reserve foradvanceddepreciation

Generalreserve

Retainedearnings to
be carriedforward

Total otherretainedearnings

790

110,388

13,257

124,435

－
－
(24)

－
－
－

(9,173)4,395
24(9,173)
4,395－

Acquisition of treasury
stock

－

－

－

－

Disposal of treasury stock

－

－

－

－

(Net) Changes in items
other than shareholders’equity during this term

－

－

－

－

Total changes during this
term

(24)

－

(4,754)(4,777)

Balance as of Dec. 31, 2018766

110,388

8,503

119,657

Balance as of Jan. 1, 2018
Changes during this term
Dividends of surplus
ProfitReversal of provisions

Note 2: Amounts less than one million yen are rounded.

23

Notes to Non-consolidated Financial Statements(Notes to matters concerning significant accounting policies)
1. Valuation standards and methods for securities(1) Securities held to maturity
Amortized cost method (straight-line method) is applied.
(2) Shares of subsidiaries and affiliated companies
Cost method based on the moving average method is applied.
(3) Other securities
Securities with available market values:
Market value method based on the market price, etc. at the fiscal year-end of the current
term is applied. (Valuation differences are to be reported as a component of shareholders’equity, and the costs of securities sold are to be calculated by the moving average method)
Securities without available market values:
Cost method mainly based on the moving average method is applied.
2. Depression method used for fixed assets(1) Tangible fixed assets
Useful lives of major items below are calculated as follows, based on the straight-line
method.
Buildings
2-50 years(2) Intangible fixed assets
Straight-line method is applied.
3. Basis for recording allowances(1) Allowance for bonuses
In order to prepare for the payment of bonuses for employees, the Company records anestimated payment amount that has been incurred for this fiscal year.
(2) Allowance for officers’ bonuses
In order to prepare for the payment of bonuses for officers, the Company records anestimated payment amount as of the end of this fiscal year.
(3) Provision for performance-linked compensation
In order to prepare for the payment of shares and cash for Executive Directors andExecutive Officers, the Company records an estimated payment amount as of the end of
this fiscal year.
4. Other significant matters for preparation of the non-consolidated financial statements
Accounting treatment for consumption tax, etc.
Before-tax method is applied

24

(Notes to the Non-consolidated Balance Sheet)
1. Amount of accumulated depreciation of tangible fixed assets
67,542 million yen
2. Monetary receivables from or payables to subsidiaries and affiliates (excluding the items
stated separately in the Balance Sheet)
Short-term monetary receivables
42 million yen
Short-term monetary payables
54,375 million yen(Notes to Non-consolidated Statement of Income)1. Transaction amount with affiliated company
Net revenue
10,375 million yen
Operating expenses
0 million yen
Others (non-operating transactions)
12 million yen
2. Loss on disaster
Loss on disaster was due to the loss resulting from the flood damage to facilities, sales
equipment and vehicles in certain manufacturing and sales bases, including Hongo Plant in
Mihara City, Hiroshima, caused by extraordinary rain in July 2018.
(Note to Non-consolidated Statement of Changes in Shareholders’ Equity)
Matters concerning class and total number of treasury shares
Increase in shares for Decrease in shares for
Shares as of
FY 2018
FY 2018
December 31st, 2018
20,77922,793
Common shares
2,016 thousand shares
1 thousand shares
thousand shares
thousand shares
1. The increase of 20,779 thousand shares in the common shares of treasury stock is due to the purchase ofshares based on a resolution of the Board of Directors and the purchase of shares constituting less than one
unit.
2. The decrease of 1 thousand shares in the common shares of treasury stock is due to additional purchase ofshares constituting less than one unit.
Type of shares

Shares as of January
1st, 2018(Notes on deferred tax accounting)Breakdown of deferred tax assets and deferred tax liabilities by main cause
Deferred tax assets
Depreciation
1,903 million yen
Carry forward deficit
409 million yen
Impairment loss
661 million yen
Stock revaluation of the subsidiary
8 million yen
Other
529 million yen
Sub-total of deferred tax assets
3,510 million yen
Allowance for evaluation losses(746) million yen
Total deferred tax assets
2,763 million yen
Deferred tax liabilities
Reserve for advanced depreciation(979) million yen
Valuation difference on land
(1,380) million yen
Other(110) million yen
Total deferred tax liabilities(2,469) million yen
Net deferred tax assets
294 million yen

25

(Notes on transactions with related parties)
Subsidiaries, etc.
Type

Subsidiary

Name of company

Coca-Cola
Bottlers JapanInc.

Address

Capital orinvestment
amount(millionyen)Line of business

100

Manufactureand sales ofbeverageand food
products

Minatoku,
Tokyo

RelationshipOwnership ofvoting rights Interlocking
Business(%)
directorate
relationship

Description oftransaction

Collectionof funds

Collectionof funds

CashdepositCashdeposit－Net
revenuesNet
revenues

5,289

Own
100.0

2

Transaction
Year-end
Accounting
amountbalanceitem(million yen)(million yen)

11,900－Money
entrusted－－

53,321－(Notes)1. The transaction amount does not include consumption tax, etc. Year-end balance includes consumption tax, etc.
2. Transaction terms and conditions and the policy for deciding on these terms and conditions
Terms and conditions for the transaction with Coca-Cola Bottlers Japan Inc.
Regarding the loan of funds, the interest rate on loans is determined taking market interest rates into account.
In addition, the Company has adopted a cash management system for the purpose of improving the group's
funds efficiency. Also, transaction amounts are stated in net value.
Regarding net revenues, it is accompanied by real estate leasing and is determined based on certain rational
standards.

(Notes to Impairment loss)
In the fiscal year under review, the Company recorded an impairment loss on the following asset
groups.
RegionUse

Number oflocationsType

Impairment loss
（million yen）

Kinki

Idle asset

1

Land

1

KyushuIdle asset

3

Buildings
Structures
Land

0
0
4

The Company has divided assets for business use into groups by business unit thatgenerates cash continuously based on management accounting system. As for rental
property and idle assets, each individual property is recognized as the smallest grouping
unit in order to detect and judge any sign of impairment.
For the current fiscal year, of the idle assets of which market value, etc. decreased, thebook values of certain pieces of land in the target locations are reduced to theirrecoverable amounts, and the amount of reduction is recognized as impairment loss.
The recoverable amounts of idle assets are calculated based on the valuation by realestate appraiser, etc.
(Notes to per share information)
Net assets per share
Profit per share

1,812.27 yen
22.89 yen26