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

Summary of Consolidated Financial Statements (Japanese Standards)
for the first quarter of the year ending December 31st, 2014 (1Q 2014YTD)
th

May 12 , 2014
Tokyo Stock Exchange

Listed Company Name

Coca-Cola East Japan Co., Ltd.

Stock Exchange

Security Code

2580

URL

http://www.ccej.co.jp

Representative

title

Name

Calin Dragan

Contact

title

Name

Asako Aoyama

Representative Director,
President
Senior Executive Officer
Finance Function

Scheduled date of submission of

TEL:
03(5575)3859

Schedule date of start ofth

May 15 , 2014

Quarterly Report

Nagoya Stock Exchange－

dividend payment

Preparation of supplementary documents for quarter results

No

Quarterly results briefing

No(Amounts of less than 1 MM yen are rounded down)st

1． Consolidated Financial Results for the first quarter of the year ending March 31 , 2014
st
st
(January 1 , 2014 – March31 , 2014)(1)
Consolidated Results of Operations (YTD)(Percentages show year-on-year changes)
Net Sales

Operating Income

MM yen%Ordinary Income

MM yen%Q1 2014 YTD
111,915 181.3△5,584－
Q1 2013 YTD
39,788 △2.7△340－
(Note) Comprehensive income: 1Q 2014 YTD △5,281 MM yen (－%)%

MM yen%△5,520－△5,075△341－△249
1Q 2013 YTD △18 MM yen (－%)－－

Net income per share(fully diluted)

Net income per share
Q1 2014 YTD
Q1 2013 YTD

MM yenNet Income

Yen

Yen

△41.93
△5.64

－
－

.

(2)

Consolidated Financial Position
Total Assets

Net Assets

MM yenEquity Ratio

Net Asset per share

MM Yen%Yen

Q1 2014 YTD
319,131
209,208
FY2013
314,490
216,191(Reference) Shareholders’ equity: 1Q 2014 : 209,200 MM yen
FY2013 :216,172 MM yen

65.6
68.7

1,728.22
1,785.92

2．Dividends
End of Q1Yen

FY2013
FY2014FY2014(forecast)－－

Dividend per share
End of Q2
End of Q3
Yen

Yen

Year-end

Annual

Yen

yen

18.00

－

14.00

32.00

16.00

－

16.00

32.00

(Note) Revisions to the dividend forecast disclosed most recently

0

No

st

st

3．The Consolidated Earnings forecasts for the fiscal year commencing January 1 and ending December 31 ,2014(Percentages show year-on-year changes)

Net sales
Full-Year

Operating Income

Ordinary Income

Net Income

MM yen%MM yen%MM yen%MM yen535,800

43.7

19,000150.6

19,500

152.2

9,600

(Note) Revisions to the Earnings forecasts disclosed most recently

Net Income
Per Share

%
△17.1

Yen

79.31

Yes

Notes:(1) Changes of important subsidiaries during consolidated 1Q FY2014 (Changes of specific subsidiaries
accompanied by changes in the consolidation scope)(2) Application of particular accounting treatments to the preparation of quarterly consolidated financial
statements

None

None

(3) Changes in accounting policies and changes or restatement of accounting estimates① Changes in accounting policies accompanied by revisions of accounting standards, etc.

None

② Changes in accounting policies other than ①Yes③ Changes in accounting estimatesYes④ Restatement

None(4) Number of Issued Shares (Common Shares)① Number of the issued shares at the end of theperiod (including treasury stock)② Number of the treasury stock at the end of theperiod③ Average number of the shares during theperiod (accumulated total)

Q1 2014

121,898,978 shares

FY 2013

121,898,978 shares

Q1 2014

848,972 shares

FY 2013856,494 shares

Q1 2014

121,050,895 shares Q1 2013YTD

44,141,948 shares*Statement regarding the status of the quarterly review
stThis summary of financial statements for the first quarter of the year ended December 31 , 2014 fall outside the quarterly
audit review required by the Financial Instruments and Exchange Act and the quarterly audit review of quarterly consolidated
financial statements required by the Financial Instruments and Exchange Act had not been completed as of the time when
this summary was disclosed.
*Explanation regarding the appropriate use of earnings forecasts and other special notes
Although the statements in this summary are prepared based on various information available to the Company and certain
assumptions considered reasonable by the Company, actual results may differ significantly due to various factors. For
details of assumptions for earnings forecasts and notes on the use of earnings forecasts, please see “Qualitative informationon the consolidated earnings forecasts,” page 5 of the attached material of the summary.

1

Contents of the Attached Materialsst

1. Qualitative information on results for the first quarter of the year ending December 31 , 2014 ････････

2(1) Qualitative information on the consolidated operating results ･････････････････････････････････････

2(2) Qualitative information on the consolidated financial positions ････････････････････････････････････

4(3) Qualitative information on the consolidated earnings forecast ･････････････････････････････････････

5

2. Matters relating to summary information (notes)･･････････････････････････････････････････････････

6(1) Changes of important subsidiaries during the consolidated Q1 2014 YTD(accumulated)･･････････････････

6(2) Application of particular accounting treatments to preparation of quarterly consolidated financial statements

6(3) Changes in accounting policies and changes or restatement of accounting estimates ･･･････････････････

6

3. Quarterly consolidated financial statements ･･･････････････････････････････････････････････････････

7(1) Quarterly consolidated balance sheets ････････････････････････････････････････････････････････

7(2) Quarterly consolidated profit and loss statements and comprehensive profit statements･････････････････

9

Quarterly consolidated profit and loss statement
Consolidated Q1 2014YTD (accumulated)････････････････････････････････････････････････････ 9
Quarterly consolidated comprehensive profit statements
Consolidated Q1 2014YTD (accumulated)･･････････････････････････････････････････････････ 10(3) Notes relating to Quarterly consolidated financial statements･･･････････････････････････････････････ 11(Notes relating to assumptions for the going concern)･･････････････････････････････････････････････ 11(Notes in the event of significant changes in amount of shareholders’ equity)･･･････････････････････････ 11(Segment information and others) ････････････････････････････････････････････････････････････ 11- 1 -1. Qualitative information on results for the first quarter of the year ending December 31, 2014
(1) Qualitative information on the consolidated operating results
Coca-Cola East Japan Co., Ltd. (CCEJ) today announced its consolidated financial results for the firstquarter ended March 31, 2014 (January 1, 2014 to March 31, 2014).
First Quarter 2014 Key Messages
・ Volume growth of 3% on a comparable base・ Revenue impacted one percentage point by divestiture of non-core assets such as Mikuni Wine
・ Operating income in line with full-year plan, but negatively impacted in Q1 by change in accounting
policies・ Supply chain synergies and 2014 installation of new production lines ahead of plan・ New full-year comparable OI margin target increased to 3.5% from 2.8% after change of accounting
policies・ On track with roll-out of pricing related to consumption tax
・ Strong marketing and innovation calendar in 2014
Integration Update
Coca-Cola East Japan (CCEJ), formed after the management integration of the four Kanto and Tokai region
Coca-Cola bottling companies on July 1, 2013, is now Japan’s largest Coca-Cola bottling company,
encompassing one contiguous geographic territory representing one of the most dynamic and competitive
consumer markets in Japan. The integration of CCEJ allows us to make business-building decisions from acommercial and supply chain perspective that leverage the scale of our expanded size and the related
efficiencies of having one optimized set of functional organizational structures rather than multiple individual
businesses running in separate geographies. In addition we have the opportunity to tap into the extensive
network of the Coca-Cola system worldwide and leverage subject matter expertise and best practices to build
CCEJ from a simple combination of four bottling companies into a world-class Japanese Coca-Cola bottler.
With over 250 integration projects and initiatives ongoing there are many visible signs of progress to highlight in
the first quarter, including the following:・ Commissioned two new production lines at our Hakushu and Iwatsuki plants as well as two new
integrated PET bottle blowing lines in Iwatsuki and Tokai
・ Completed the consolidation of our call centers from six down to two centers
・ Started transformational CokeOne+ Enterprise Resource Planning (ERP) system deployment
・ Continued roll-out of new integrated Commercial Route-to-Market (RTM) program・ Sale of wine distribution business, Mikuni Wine Co. Ltd., as we focus on core Coca-Cola nonalcoholic
ready-to-drink beverage business.
・ Introduced new performance management and incentive program・ Completed 2nd employee Voluntary Separation Plan (VSP)・ Established on-premise English-language training program with full-time instructors and participation bymost non-English speakers at headquarters location
First Quarter 2014 Operating Review
Our quarterly operating results during the year will likely exhibit seasonal variation, as the demand fornonalcoholic ready-to-drink beverages tends to be concentrated in the summer months. Sales and profits
consequently are expected to be lower in the first quarter than subsequent quarters.
During the first quarter ended March 31, 2014 (hereinafter referred to as “the quarter”), total BAPC (Bottler
Actual Physical Cases) sales volume grew 3% on a comparable basis. Volume growth by channel was led bynational and regional supermarkets (national SM +16%, regional SM +9%) as well as the drug & discounterchannel (+14%) based on planned promotional activities ahead of the April 1, 2014 consumption tax increase.
- 2 -Eating & Drinking (even) and vending (even) channel performance was impacted by the heavy snowfall in
February. The convenience store (-5%) channel continued to experience competitive pressure.
Sparkling beverage volume grew 4% in the quarter, supported by strong integrated marketing campaigns suchthe continuation of the popular Coca-Cola Polar Bear Winter Campaign, as well as the introduction of new
campaigns such as Coca-Cola Zero Limit with the music group Exile, and the initial rollout of the Coca-Cola
Company’s FIFA World Cup sponsorship. We also introduced new products in the quarter such as Schweppes
Cassis Grape. In the hydration category, unsweetened teas and sports drinks both grew 10%, and water
volume grew 9%, driven by continued momentum in supermarkets and drug & discounters as well as thebenefit of consumer purchases in advance of the April 1, 2014 consumption tax increase. In the coffee category,
we launched a new Georgia coffee campaign, “The World is Made Up of Someone’s Work” in addition to ourgroundbreaking Weekly Georgia smartphone magazine. Coffee volume in the important vending channel
showed encouraging progress with 3% growth, but was offset by continued weakness in the convenience store
channel, resulting in a coffee category volume decline of -2% in the quarter,
We have a strong marketing and innovation calendar planned for 2014, starting with the successful launch ofGeorgia flavors such as Katakuna and the renewal of Emerald Mountain Black in the first quarter, and theindustry-first double efficacy “FOSHU” (Food for Specific Health Use) tea Karada Sukoyakacha W, launched in
April. We are renewing our Taiyo no Matecha and Kochakaden teas as well as the Luana coffee brand, and in
May we will introduce new sparkling versions of our very successful Ilohas water brand. Toward the summer wewill be fully activating our sponsorship of the 2014 FIFA World Cup in Brazil for brand Coca-Cola as well as for
Aquarius sports drinks and our Brazilian-influenced Taiyo no Matecha tea. And there is more to come.
First Quarter 2014 Financial Review
Reported* Results for the Quarter Ended March 31, 2014
In Million JPY

2013

2014

% Change

CCCJ

CCEJ

Net Sales

39,788111,915+ 181.3%

Operating Income(Loss)(340)(5,584)--Net Income(Loss)(249)(5,075)--* Reported: Coca-Cola East Japan began operations as an integrated company starting in the third quarter of 2013. As a result, firstquarter 2014 reported consolidated financial results for CCEJ are compared against the consolidated results of legacy Coca-Cola Central
Japan (CCCJ) in first quarter 2013.

Comparable Results for the Quarter Ended March 31, 2014

In Million JPY, except volume

2013

2014

Pro-forma*

Comparable**% Change

Volume (BAPC, in thousand)

58,46260,431+ 3.4%Net Sales

112,408

111,915∆ 0.4%

Operating Income (Loss)(759)(5,584)--Net Income (Loss)(778)(4,230)--* Pro-forma: Presentation of results as if the four Kanto and Tokai area Coca-Cola bottlers were integrated as of January 1, 2013.
** Comparable: Presentation of results after excluding exceptional items such as charges, gains, etc. which are viewed by management as one-time items
impacting only the current period or the comparable period, but not both. These comparability adjustments should be viewed in addition to, and not as an alternative
for, the Company's reported results prepared in accordance with JGAAP.

- 3 -Reported net sales revenue in the quarter was JPY 111,915 million (up 181.3%, or JPY 72,126 million
compared to the prior year period), reflecting the benefit of the integration of the four Kanto and Tokai region
Coca-Cola bottlers on July 1, 2013. First quarter comparable net sales revenue was slightly negative, rounding
to even. This reflects the negative channel mix impact of the heavy snows in February, which disproportionately
impacted immediate consumption channels such as vending and eating & drinking, as well as growth insupermarkets and drug and discounters, which benefited from consumer stocking up in advance of the April 1,2014 consumption tax increase. Revenue in the quarter also reflects the impact of our divesting non-core
assets like Mikuni Wine as we continue to focus on optimizing and growing our core nonalcoholic ready-to-drink
business.
In the quarter, we reported an operating loss of JPY 5,584 million (vs. operating loss of JPY 340 million in theprior year period). This reflects first quarter operating income performance in line with our full-year 2014 growthplan, as well as a negative JPY 3,400 million net impact from a change in accounting policy and estimates
related to the depreciation method for fixed assets and a revision to the estimated useful lives of cold drink
sales equipment, effective January 1, 2014. As part of this change, the salvage value of existing tangible fixed
assets was adjusted to a residual value of one JPY per asset for asset-tracking purposes, with the difference
written off during the first quarter. This change will have a positive impact on our full-year forecast because of
the estimated depreciation expense decrease, however, the salvage value write-off for assets without
remaining useful lives had a negative impact on first quarter 2014 reported operating income as mentioned
above. As a result of the above changes in accounting policy and estimates, an upward revision of our 2014
full-year business plan was announced separately today. For details of this accounting policy change, refer to“(3) Qualitative information on the consolidated earnings forecast”.
In the quarter, we reported a net loss of JPY 5,075million (vs. net loss of JPY 249 million in the prior year
period). This reflects the operating performance in the quarter and the net impact of the above change inaccounting policy and estimates as well as extraordinary costs primarily related to our recently completed
employee voluntary separation program.

(2) Qualitative information on the consolidated financial positions
The financial positions at the end of this quarter are as follows:
Assets at the end of this quarter were JPY 319,131 million, an increase of JPY 4,641 million from the end of theprevious fiscal year. This is mainly due to an increase in current assets as a result of seasonal inventory buildup for subsequent quarters’ sales and from our focus on bringing more production and logistic volume in-house,
which leads to higher inventory levels of merchandise and finished goods as well as raw material and supplies.
In addition, fixed assets buildings and structures, etc. declined as a result of the change in depreciation method
and the salvage value of existing tangible fixed assets was adjusted to a residual value of one JPY per asset for
asset-tracking purposes, with the difference written off during the first quarter as part of the accounting policychange referenced earlier. Notes and accounts receivable-trade decreased as part of the quarterly seasonalityof our business.
Liabilities at the end of this quarter were JPY 109,923 million, an increase of JPY 11,624 million from the end of
previous fiscal year. This is mainly due to an increase in short-term borrowing for our working capital and anincrease of accounts payable-trade as a result of higher inventories related to seasonal inventory build-up andongoing in-housing of production and logistics.
Net assets at the end of this quarter were JPY 209,208 million, a decrease of JPY 6,982 million. This is
primarily due to the reported net operating loss and payment of dividends in the first quarter.
- 4 -(3) Qualitative information on the consolidated earnings forecast
The Company issued an upward revision of its forecast for operating income, ordinary income, net income and
EPS for the fiscal year ending December 2014 today.
The Company introduced new strategies regarding sales equipment and supply chain in its fiscal 2014 annual
business plan. As part of these new strategies, the Company revised its accounting policy and estimates
related to the depreciation method for fixed assets as well as the estimated useful lives of cold drink sales
equipment. From the beginning of this fiscal year, the Company changed the depreciation method of its tangible
fixed assets from the declining method to the straight-line method, which more accurately reflects the estimatedpattern of utilization of the assets. The Company also extended the estimated useful life of its significant fixed
asset base of sales equipment such as vending machines and coolers to nine years from a range of five to six
years, which more accurately reflects the true useful lives of this significant asset base. As part of this change,
the salvage value of existing tangible fixed assets was adjusted to a residual value of one JPY per asset for
asset-tracking purposes, with the difference written off during the first quarter. This change will have a positive
impact on our full-year forecast because of the estimated depreciation expense decrease, however, thesalvage value write-off for assets without remaining useful lives had a negative impact on first quarter 2014
reported operating income. This change in accounting policy and estimates is an example of how we continue
to align our business with global bottler best practices.
There was no impact on net sales revenue; thus no revision was made. Please refer to the “Revision of theEarnings Forecast as a Result of a Change in Accounting Policy, etc.” separately released today for additional
details of the upward revision to full-year 2014 earnings estimates.

- 5 -2. Matters relating to summary information (notes)(1) Important change in subsidiaries during the consolidated 1H FY2013 under review
There is no matter applicable.
(2) Application of accounting treatments specific to preparation of quarterly consolidated financial statements
There is no matter applicable.
(3) Changes in accounting policies, accounting estimate or restatement（Change in Accounting Policy and estimates ）Change in the depreciation method, the estimated useful lives, and salvage values of tangible fixed assets
From the beginning of this fiscal year, the Company changed the depreciation method of its tangible fixed
assets from the declining method to the straight-line method.
Aiming to establish appropriate usage of the cold drink equipment beyond each legacy bottler territory, theCompany introduced new strategies regarding sales equipment in its newly planned fiscal 2014 annual
business plan. By implementing this plan, the Company ensures that assets will be productive over their
entire lives and can maximize usage periods, which will contribute to generating stable and long-term
revenue. Also, for the production equipment, the Company introduced new strategies regarding supply
chain in the annual business plan. The Company plans to improve and optimize its production capacity
beyond the legacy bottler territories through integrating production subsidiaries and making large-scale
investments in new production equipment. This plan will also enable the Company to run the assets in an
efficient and stable manner over the long run. Considering the aforementioned benefits, the Company
changed the depreciation method of its tangible fixed assets from the declining method to the straight-line
method, which more accurately reflects the estimated pattern of utilization of the assets.
The Company also extended the estimated useful life of its cold drink sales equipment such as vending
machines and coolers to nine years from a range of five to six years, which more accurately reflects theestimated useful lives of this significant asset base.
As part of this change, the salvage value of existing tangible fixed assets was adjusted to a residual value of
one JPY per asset for asset-tracking purposes, with the difference written off during the first quarter. The
salvage value write-off for assets without remaining useful lives had a negative impact on the Company’s
first quarter 2014 reported operating income (-3,392), ordinary income (-3,323) and profit before tax (-3,313)
respectively.

- 6 -3. Quarterly Consolidated financial statements(1)Consolidated balance sheets(Million yen)
FY2013Q1 2014 YTD

AssetsCurrent assets
Cash and deposits

29,901

30,564

Notes and accounts receivable-trade35,93433,840

Short-term investment securities

1,505

1,503

Merchandise and finished goods

31,26132,872－372

Work in process
Raw materials and supplies

1,931

3,012

Other

20,162

23,003

Allowance for doubtful accounts

△ 51

△ 38

120,645

125,131

Buildings and structures, net

37,69136,508

Sale equipment, net

38,55839,290Land

46,75946,714Current assets
Noncurrent assets
Property, plant and equipment

Other, net

35,69036,558Property, plant and equipment

158,699

159,073

3,616

3,458

Other

31,78831,731

Allowance for doubtful accounts

△ 260

△ 262

Intangible assets
Investments and other assets

Investments and other assets
Noncurrent assets
Assets31,52831,468

193,844

194,000

314,490319,131

21,51029,756－

9,000

Liabilities
Current liabilities
Accounts payable-trade
Short-term loans payable
Income taxes payable

1,585

319

Provision for bonuses

1,264

1,088

Provision for directors' bonuses

131

－

Other

36,79735,713Current liabilities

61,28975,877

Noncurrent liabilities
Long-term loans payable－

Provision for retirement benefits

17,57917,265

Provision for directors' retirement benefits

367

48

Provision for environmental measures

359

360

Provision for early contact termination

3,173

3,102

Other

15,52913,267

Noncurrent liabilities

37,00934,04598,299109,923

Liabilities- 7 -(Million yen)
FY2013Q1 2014 YTD

Net assets
Shareholders' equity
Capital stock

6,499

6,499

Capital surplus

143,136

143,133

Retained earnings

67,03460,264

Treasury stock△ 1,164△ 1,157

Shareholders' equity

215,507

208,740

Valuation and translation adjustments
Valuation difference on available-for-sale securities

867

660

Deferred gains or losses on hedges

△ 201

△ 200

Valuation and translation adjustments

665

459

Subscription rights to shares
Net assets
Liabilities and net assets

- 8 -

19

7

216,191

209,208

314,490319,131(2) Consolidated profit and loss statement and comprehensive profit statement(Consolidated profit and loss statement)(Million yen)
Q1 2013 YTD

Q1 2014 YTD

Net sales

39,788111,915

Cost of sales

23,751

61,552Gross profit

16,03750,362

Selling, general and administrative expenses

16,37855,947

Operating income△ 340△ 5,584

Interest income

1039

Dividends income1

19

Equity in earnings of affiliates

10

23

Rent income

33

74

Gain on sales of valueable wastes

31

65

Others

19

46

106

268

Interest expenses

3

94

Rent expenses

13

34

Loss on sales and retirement of noncurrent assets

79

46

Others1028Non-operating expenses

107

205

△ 341

△ 5,520

Non-operating income

Non-operating income
Non-operating expenses

Ordinary income
Extraordinary income
Gain on sales of shares of subsidiaries－

69

Insurance income－

100

Others－16

Extraordinary income－

185

Loss on sales and retirement of noncurrent assets

1390

Impairment loss－

18

Restructuring cost

－

1,445

Others－3

Extraordinary loss

13

1,557

△ 354

△ 6,892

142

413

Extraordinary loss

Income before income taxes
Income taxes-current
Income taxes for prior periods

△ 31

－

Income taxes-deferred△ 216△ 2,229

Income taxes△ 105△ 1,816

Income before minority interests△ 249△ 5,075

Net income△ 249△ 5,075- 9 -(Consolidated comprehensive profit statement)(Million yen)
Q1 2013 YTD

Income before minority interests

Q1 2014 YTD△ 249△ 5,075

Valuation difference on available-for-sale securities

230

△ 206

Deferred gains or losses on hedges－

1

Other comprehensive income

230

△ 205

△ 18

△ 5,281△ 18△ 5,281－－

Other comprehensive income

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent company
Comprehensive income attributable to minority interests- 10 -

(3)Notes relating to Quarterly consolidated financial statements(Notes relating to assumptions for the going concern)
None(Notes in the event of significant changes in amount of shareholders’ equity)
None(Segment information, etc.)(Segment Information)
The Group has sole segment of beverage business, thus the description is omitted.

- 11 -