0000947871-17-000340.txt : 20170501 0000947871-17-000340.hdr.sgml : 20170501 20170501093604 ACCESSION NUMBER: 0000947871-17-000340 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 6 CONFORMED PERIOD OF REPORT: 20170501 FILED AS OF DATE: 20170501 DATE AS OF CHANGE: 20170501 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Coca-Cola Bottlers Japan Inc. CENTRAL INDEX KEY: 0001672908 STANDARD INDUSTRIAL CLASSIFICATION: BOTTLED & CANNED SOFT DRINKS CARBONATED WATERS [2086] IRS NUMBER: 000000000 STATE OF INCORPORATION: M0 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 333-216213 FILM NUMBER: 17798863 BUSINESS ADDRESS: STREET 1: 7-9-66 HAKOZAKI, HIGASHI-KU CITY: FUKUOKA STATE: M0 ZIP: 812-8650 BUSINESS PHONE: 81-92-641-8774 MAIL ADDRESS: STREET 1: 7-9-66 HAKOZAKI, HIGASHI-KU CITY: FUKUOKA STATE: M0 ZIP: 812-8650 FORMER COMPANY: FORMER CONFORMED NAME: Coca-Cola West Co., Ltd. DATE OF NAME CHANGE: 20160422 6-K 1 ss40724_6k.htm REPORT OF FOREIGN PRIVATE ISSUER

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934


For the month of May 2017

Commission File Number 333-216213

Coca-Cola Bottlers Japan Inc.
(Translation of registrant’s name into English)

Midtown Tower 11F 9-7-1 Akasaka, Minato-Ku
Tokyo 107-6241 Japan
(Address of principal executive office)


Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒       Form 40-F _____

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):               

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):               

 

 
 
 
Materials Contained in this Report:


1.
Summary of Consolidated Financial Statements of Coca-Cola Bottlers Japan Inc. for the First Quarter of the Year Ending December 31, 2017
2.
Summary of Consolidated Financial Statements of Coca-Cola East Japan Co., Ltd. for the First Quarter of the Year Ending December 31, 2017
3.
Press release titled “Matters Relating to Share Repurchase Performed in Conjunction with Disposition of Fractional Shares Arising from Exchange of Shares,” dated May 1, 2017

 
 
 

 
 
 

 

 
SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 
Coca-Cola Bottlers Japan Inc.
 
 
 
 
 
 
 
 
 
 
By: 
/s/ Tamio Yoshimatsu
 
 
Name:
Tamio Yoshimatsu
 
 
Title:
Representative Director & President
 
 

 


Date:  May 1, 2017
 
 
 
 
 
 
 
 
 
 
 
 

EX-99.1 2 ss40724_ex9901.htm CONSOLIDATED FINANCIAL SUMMARY
This document is a summary translation of the Japanese language original version. In the event of any discrepancy, errors and/or omissions, the Japanese language version shall prevail.
 
Consolidated Financial Summary for
the First Quarter Ended March 31, 2017 (Japanese Standard)
 
May 1, 2017
 
Listed company name: Coca-Cola Bottlers Japan Inc.
 
(formerly Coca-Cola West Company, Limited)
Listed stock exchanges: Tokyo and Fukuoka
Code number: 2579
URL: https://en.ccbji.co.jp
Delegate:  Title: Representative Director & President
Name: Tamio Yoshimatsu
Contact:           Title: Leader, Finance Controller Group
Name: Masakiyo Uike   Phone: +81-3-6896-1707
Expected date of quarterly report submission: May 12, 2017
Expected date of the dividend payments:
FY 2017 1Q supplementary information: Yes
 
FY 2017 1Q financial presentation: None
 

(Fractions of one million yen are rounded down)
1. Consolidated financial results for the 1st quarter 2017 (from January 1, 2017 to March 31, 2017)
(Percentages indicate changes over the same period in the prior fiscal year)
(1) Consolidated financial results
 
Net revenues
Operating income
Recurring income
Profit attributable
to owners of parent
 
million yen
%
million yen
%
million yen
%
million yen
%
1st quarter 2017
99,141
(1.4)
2,167
(1.9)
1,947
(5.9)
942
(1.2)
1st quarter 2016
100,545
10.3
2,209
2,069
953
Note: Comprehensive income
1Q 2017: 1,101 million yen <%>
1Q 2016: (333 million yen) <%>

 
Earnings per
share
Diluted earnings
per share
 
yen
yen
1st quarter 2017
1st quarter 2016
8.63
8.73

(2) Consolidated financial position
 
Total assets
Net assets
Net assets (excl. minority
 interests) to total assets
As of
million yen
million yen
%
1st quarter 2017
368,841
259,623
70.3
Full year 2016
377,468
261,173
69.1
Reference: Net assets (excl. minority interests)
1Q 2017: 259,223 million yen
End of 2016: 260,758 million yen

2. Dividends
 
Dividends per share
(Record date)
End of 1Q
End of 2Q
End of 3Q
Year-end
Annual
Year ended
 
yen
yen
yen
yen
yen
Full year 2016
Full year 2017
22.00
24.00
46.00
       
Full year 2017 (forecast)
 
 
Note:   1.
Revisions to the cash dividends forecasts most recently announced: None
                2.
End of 2Q FY 2016 dividend
FY 2016 ending dividend
: an ordinary dividend of 21.00 yen,a commemorative dividend of 1.00 yen
: an ordinary dividend of 23.00 yen, a commemorative dividend of 1.00 yen
                3.
We conducted the business integration with Coca-Cola East Japan Co., Ltd. through a share exchange and an absorption-type company split on April 1, 2017. Year-end dividend forecast for the fiscal year ending December 31, 2017 shall be announced separately upon determination.

3. Forecast of consolidated financial results 2017 (from January 1, 2017 to December 31, 2017)
(Percentages indicate changes over the same period in the prior fiscal year)
 
Net revenues
Operating income
Recurring income
Profit attributable
to owners of parent
Earnings
per share
 
million yen
%
million yen
%
million yen
%
million yen
%
Yen
Full year 2017
 
Note: 1.  
Revisions to the forecasts of consolidated financial results most recently announced: None
2.  
We conducted the business integration with Coca-Cola East Japan Co., Ltd. through a share exchange and an absorption-type company split on April 1, 2017. Full-year consolidated performance forecasts for the fiscal year ending December 31, 2017 shall be announced separately upon determination.

Notes
(1) Changes in significant subsidiaries during the current period
     (changes in specified subsidiaries resulting in change in scope of consolidation)
 
: None
(2) Application of special accounting for preparing the quarterly consolidated financial
statement
 
: None
(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements after error corrections
1) Changes in accounting policies due to revisions to accounting standards and other
   regulations
2) Changes other than those in 1) above
3) Changes in accounting estimates
4) Restatement of prior period financial statements after error corrections
 
 
 
: None
 
: Yes
: Yes
: None
(4) Number of outstanding shares (common shares)
1) Number of outstanding shares at the end of period (including treasury shares):
1Q 2017: 111,125,714 shares     FY 2016: 111,125,714 shares
2) Number of treasury shares at the end of period:
1Q 2017: 1,989,678 shares         FY 2016: 1,989,069 shares
3) Average number of outstanding shares at end of period (three months):
1Q 2017: 109,136,375 shares     1Q 2016: 109,138,597 shares
 
Note: the total number of outstanding shares increased by 95,142,879 to 206,268,593 as of April 1, 2017 in connection with the integration with Coca-Cola East Japan Co., Ltd.
 

* These Consolidated Financial Results are not subject to quarterly review procedures.

* Explanation regarding appropriate use of the forecast, other special instructions
Figures in the above forecast are based on information available to management at the time of announcement.
Due to number of inherent uncertainties in the forecast, actual results may differ materially from the forecast. Furthermore, please refer to [Attachment] “1. Qualitative Information on the Financial Summary for this Quarter (3) Information on the Future Outlook, Including Forecast of Consolidated Financial Results” on page 3 for matters relating to performance forecasts.
 
 

 
Table of contents
 
   
Page
     
Attachment
 
1.
  Qualitative Information on the Financial Summary for this Quarter
 
 
(1) Details of Consolidated Financial Results
2
 
(2) Details of Consolidated Financial Position
3
 
(3) Information on the Future Outlook, Including Forecast of Consolidated Financial Results
3
2.
  Quarterly Consolidated Financial Statements
 
 
(1) Quarterly Consolidated Balance Sheets
4
 
(2) Quarterly Consolidated Statements of Income and Comprehensive Income
6
 
Quarterly Consolidated Statements of Income
6
 
Quarterly Consolidated Statements of Comprehensive Income
7
 
(3) Notes to Quarterly Consolidated Financial Statements
8
 
(Notes Relating to Assumptions for the Going Concern)
8
 
(Notes for Case Where Shareholders’ Equity underwent Significant Changes in Value)
8
 
(Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statement)
8
 
(Changes in Accounting Policies, etc.)
8
 
(Additional Information)
8
 
(Segment Information)
9
 
 
 
 
 

 

1

1. Qualitative Information on the Financial Summary for this Quarter
(1) Details of Consolidated Financial Results
 During the first quarter of the fiscal year under review, the Japanese economy continued to show an overall trend of modest recovery with the job market and income situation continuing to improve and the various strategic measures by the government having a positive impact.
 In the soft drink industry, despite the fact that the market saw trends for soft drink companies to continue initiatives focusing on revenue, the stark situation continued as sales competition among beverage companies remained severe.
 Both health food and cosmetic industries also remained under tough conditions despite the continued trend of market growth, due to factors such as intense competition owing to new players from other industries entering the market, etc.
 In this operating environment, the Company will adopt the following management policies. In the soft drink business we will aim to increase sales generating profits by implementing appropriate price strategies in order further develop the sophistication of our RGM (Revenue Growth Management) initiatives and ensure fine-tuned sales activities corresponding to business conditions and the situations of our customers. In order to build a vending business model that gives us a competitive advantage, we will enhance initiatives for key issues that will lead to improvements in productivity and efficiency, and introduce IT solutions targeted at growing sales. We will also continue to make investments in order to improve job satisfaction for employees and corporate growth.
 In the healthcare & skincare business, we aim to win new customers by introducing highly competitive new products and carrying out effective advertising campaigns, and we will aim to promote continued and increased purchases by existing customers through further promotion of CRM (Customer Relationship Management). We will also undertake initiatives to develop new sales channels and new business in order to break into new fields.
 The Company plans to create new growth opportunities by continuing collaborative initiatives between the soft drink business and healthcare & skincare business.
 Additionally, the Company and Coca-Cola East Japan Co., Ltd. underwent the business integration by means of a share exchange and absorption-type company split effective as of April 1, 2017, with the new, merged company, Coca-Cola Bottlers Japan Inc., launching as of the same date. The integration will combine the experience and know-how that the Company and Coca-Cola East Japan Co., Ltd. have cultivated over the years, and through the creation of new value aims to further grow Coca-Cola’s business and contribute to the development of the soft drink industry in Japan.
 The business performance status for the first three-month period of this fiscal year is as follows.
Net Revenues
 Consolidated net revenues of the soft drink business in the first quarter of the fiscal year under review fell 735 million yen to 91,644 million yen (down 0.8%) year on year, owing to factors such as the impact of the fall in sales volumes. Consolidated net revenues of the healthcare & skincare business in the first quarter of the fiscal year under review fell 668 million yen to 7,497 million yen (down 8.2%) year on year, owing to factors such as the impact of the fall in sales volumes. As a result, the total consolidated net revenues for all segments in the first quarter of the fiscal year under review fell 1,403 million yen to 99,141 million yen (down 1.4%) year on year.
Operating Income
 Consolidated operating income of the soft drink business in the first quarter of the fiscal year under review fell 79 million yen to 1,320 million yen (down 5.7%) year on year, due to the impact of an increase in expenses brought about by the change in our depreciation method for fixed assets, despite our efforts to reduces costs, etc. in connection with the decrease in net revenues discussed above. Despite the aforementioned drop in net revenues, consolidated operating income in the healthcare & skincare business in the first quarter of the fiscal year under review increased by 37 million yen to 846 million yen (up 4.6%) year on year thanks to factors such as reductions in sales promotion costs. As a result, the total consolidated operating income for all segments for the first quarter of the fiscal year under review fell 42 million yen to 2,167 million yen (down 1.9%) year on year.
Recurring Income and Quarterly Profit Attributable to Owners of Parent
 Recurring income in the first quarter of the fiscal year under review decreased by 121 million yen to 1,947 million yen (down 5.9%) year on year, owing mainly to the fall in operating income. Quarterly profit attributable to owners of parent in the first quarter of the fiscal year under review fell 11 million yen to 942 million yen (down 1.2%) year on year.
 
 
2

 
(2) Details of Consolidated Financial Position
 Total assets at the end of the first quarter of the fiscal year under review decreased 8,627 million yen to 368,841 million yen (down 2.3%) compared to the end of the previous consolidated fiscal year, mainly due to a reduction in notes and accounts receivable – trade, as well as cash and deposits.
 Liabilities decreased 7,078 million yen to 109,217 million yen (down 6.1%) from the end of the previous consolidated fiscal year. This was chiefly due to a decrease in accrued income taxes and other accounts payable.
 Net assets decreased 1,549 million yen to 259,623 million yen (down 0.6%) compared to the end of the previous consolidated fiscal year as a result primarily of dividend payments.

(3) Information on the Future Outlook, Including Forecast of Consolidated Financial Results
 The Company conducted the business integration with Coca-Cola East Japan Co., Ltd. through a share exchange and an absorption-type company split on April 1, 2017 with the new company, Coca-Cola Bottlers Japan Inc., launching as of the same date.
 Full-year consolidated performance forecasts of Coca-Cola Bottlers Japan Inc. for the fiscal year ending December 31, 2017 are currently being developed and shall be announced promptly upon determination. 
 
 
 
 
3

2. Quarterly Consolidated Financial Statements and Main Notes
(1) Quarterly Consolidated Balance Sheets
         
(Millions of yen)
 
   
As of December 31, 2016
   
As of March 31, 2017
 
Assets
           
Current assets
           
Cash and deposits
   
63,849
     
64,563
 
Trade notes and accounts receivable
   
29,649
     
27,838
 
Marketable securities
   
23,112
     
19,005
 
Merchandise and finished goods
   
27,279
     
26,063
 
Work in process
   
652
     
703
 
Raw materials and supplies
   
1,998
     
3,741
 
Other
   
17,333
     
15,666
 
Allowance for doubtful accounts
   
(287
)
   
(243
)
Total current assets
   
163,587
     
157,337
 
Fixed assets
               
Property, plant and equipment
               
Buildings and structures, net
   
31,162
     
29,672
 
Machinery, equipment and vehicles, net
   
22,688
     
21,753
 
Sales equipment, net
   
39,999
     
40,825
 
Land
   
62,128
     
62,077
 
Construction in progress
   
5
     
7
 
Other, net
   
1,829
     
1,744
 
Total property, plant and equipment
   
157,815
     
156,080
 
Intangible assets
               
Goodwill
   
22,668
     
22,216
 
Other
   
4,889
     
4,456
 
Total intangible assets
   
27,557
     
26,672
 
Investments and other assets
               
Investment securities
   
20,144
     
20,169
 
Retirement benefit assets
   
123
     
126
 
Other
   
8,760
     
8,983
 
Allowance for doubtful accounts
   
(519
)
   
(529
)
Total investments and other assets
   
28,508
     
28,750
 
Total fixed assets
   
213,881
     
211,503
 
Total assets
   
377,468
     
368,841
 
 
 
 
 
 
4

 
         
(Millions of yen)
 
   
As of December 31, 2016
   
As of March 31, 2017
 
Liabilities
           
Current liabilities
           
Trade notes and accounts payable
   
15,990
     
18,705
 
Current portion of long-term borrowings
   
17
     
17
 
Accrued income taxes
   
5,717
     
843
 
Other accounts payable
   
25,042
     
20,344
 
Provision for sales and promotion expenses
   
308
     
328
 
Other
   
8,662
     
9,077
 
Total current liabilities
   
55,739
     
49,318
 
Non-current liabilities
               
Bonds payable
   
50,000
     
50,000
 
Long-term borrowings
   
183
     
179
 
Net defined benefit liability
   
3,505
     
3,443
 
Liabilities for directors’ and corporate
auditors’ retirement benefits
   
191
     
110
 
Other
   
6,675
     
6,165
 
Total non-current liabilities
   
60,556
     
59,898
 
Total liabilities
   
116,295
     
109,217
 
Equity
               
Shareholders’ equity
               
Capital stock
   
15,231
     
15,231
 
Capital surplus
   
109,072
     
109,072
 
Retained earnings
   
137,404
     
135,726
 
Treasury stock
   
(4,593
)
   
(4,595
)
Total shareholders’ equity
   
257,114
     
255,435
 
Accumulated other comprehensive income
               
Net unrealized gains(loss) on other marketable securities
   
4,092
     
4,091
 
Deferred gains or losses on hedges
   
77
     
52
 
Foreign currency translation adjustments
   
(3
)
   
18
 
Remeasurements of defined benefit plans
   
(522
)
   
(375
)
Total accumulated other comprehensive income
   
3,643
     
3,787
 
Non-controlling interests
   
414
     
400
 
Net assets
   
261,173
     
259,623
 
Total liabilities and equity
   
377,468
     
368,841
 
 
 
 
 
5

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
(Quarterly Consolidated Statements of Income)
(First three-month period of a fiscal year)
         
(Millions of yen)
 
   
Three months ended
March 31, 2016
   
Three months ended
March 31, 2017
 
Net revenues
   
100,545
     
99,141
 
Cost of goods sold
   
48,469
     
47,179
 
Gross profit
   
52,076
     
51,962
 
Selling, general and administrative expenses
   
49,866
     
49,794
 
Operating income
   
2,209
     
2,167
 
Non-operating income
               
Interest income
   
14
     
10
 
Dividends income
   
23
     
18
 
Share of profit of investees equity-method
   
14
     
40
 
Other
   
106
     
135
 
Total non-operating income
   
159
     
204
 
Non-operating expenses
               
Interest expense
   
118
     
113
 
Loss on disposal of property plant and equipment
   
93
     
134
 
Other
   
88
     
176
 
Total non-operating expenses
   
299
     
424
 
Recurring income
   
2,069
     
1,947
 
Extraordinary income
               
Gain on sale of property plant and equipment
 
     
42
 
Gain on sale of investment securities
 
     
16
 
Total extraordinary income
 
     
59
 
Extraordinary expenses
               
Business integration-related expenses
 
     
536
 
Total extraordinary losses
 
     
536
 
Income before income taxes and minority interests
   
2,069
     
1,470
 
Income taxes - current
   
655
     
663
 
Income taxes - deferred
   
439
     
(150
)
Total income taxes
   
1,094
     
513
 
Net profit
   
975
     
956
 
Net profit attributable to non-controlling interests
   
21
     
14
 
Net profit attributable to owners of the company
   
953
     
942
 
 
 
6

(Quarterly Consolidated Statements of Comprehensive Income)
(First three-month period of a fiscal year)
         
(Millions of yen)
 
   
Three months ended
March 31, 2016
   
Three months ended
March 31, 2017
 
Profit
   
975
     
956
 
Other comprehensive income
               
Net unrealized gains(loss) on marketable securities
   
(1,274
)
   
(0
)
Foreign currency translation adjustments
   
14
     
22
 
Remeasurements of defined benefit plans, net of tax
   
166
     
127
 
Share of other comprehensive income of investees equity-method
   
(214
)
   
(5
)
Total other comprehensive income
   
(1,308
)
   
144
 
Comprehensive income
   
(333
)
   
1,101
 
Comprehensive income attributable to:
               
Owners of the company
   
(354
)
   
1,086
 
Non-controlling interests
   
21
     
14
 
 
 
 
 
 
7

 
(3) Notes to Quarterly Consolidated Financial Statements
(Notes Relating to Assumptions for the Going Concern)
Not applicable.

(Notes for Case Where Shareholders’ Equity underwent Significant Changes in Value)
Not applicable.

(Application of Special Accounting for Preparing the Quarterly Consolidated Financial Statement)
Not applicable.

(Changes in Accounting Policies)
(Changes in accounting policies that are difficult to distinguish from changes in accounting estimates, and changes in accounting estimates)
(Change in depreciation method and change in service life)
 Previously, the Company and some of its consolidated subsidiaries mainly used the declining balance method to calculate depreciation of property, plant and equipment (excluding sales equipment and leased assets), but we have switched to the straight-line method from the first quarter of the fiscal year under review.
 The business integration with Coca-Cola East Japan Co., Ltd. carried out as of April 1, 2017 gives us a stronger business platform, and by bringing together the know-how in the areas of sales and manufacturing that both companies have cultivated over the past years it will allow us to create an optimal production structure covering a wide geographical area. Consequently, as we expect to be able to benefit from the long-term, stable use of property, plant and equipment (excluding sales equipment and leased assets), using straight-line depreciation to distribute the expense over its service life will appropriately reflect the pattern of consumption of economic benefits for such property, plant and equipment, so we have therefore decided to change our depreciation method to the straight-line method.
 The Company and some of its consolidated subsidiaries also used the opportunity provided by the change in our depreciation method to conduct a utilization study. Previously, we had set the key service life of manufacturing machinery and equipment at 10 years, but as a result of our study we have revised it to 7-20 years – a predicted economic life that more accurately reflects the reality of the situation – and have made changes extending into the future.
 We also took the opportunity provided by the change in our depreciation method for property, plant and equipment to devaluate the residual value of property, plant and equipment after the elapse of its service life to a nominal value of one yen, from the first quarter of the consolidated fiscal year under review.
 Compared to the previous method, the aforementioned changes have resulted in a reduction of operating income of 1,011 million yen and reduction in recurring income and income before income taxes and minority interests of 1,034 million yen for the first quarter of this consolidated fiscal year. 
Please refer to “2. Quarterly Consolidated Financial Statements and Main Notes (3) Notes to Quarterly Consolidated Financial Statements (Segment Information)” for the impact on segment information.

(Additional Information)
(Application of Implementation Guidance on Recoverability of Deferred Tax Assets)
 “Implementation Guidance on Recoverability of Deferred Tax Assets” (ASBJ Guidance No. 26 dated March 28, 2016) is applied from the first quarter of the consolidated fiscal year under review.
 
 
8

(Segment Information)
First three-month period of previous fiscal year (January 1, 2016 – March 31, 2016)
1. Information on net revenues and profits or losses by reported segment
   
(Millions of yen)
 
Soft drink business
Healthcare & skincare business
Total
Net revenues
     
Net revenues-outside customers
92,380
8,165
100,545
Net revenues and transfer-inter-segment
Total
92,380
8,165
100,545
Segment profit
1,400
809
2,209
(Note) Net revenues and Segment profit are equivalent to Net revenues and Operating income in Quarterly Consolidated Statements of Income, respectively.

First three-month period of this fiscal year under review (January 1, 2017 – March 31, 2017)
1. Information on net revenues and profits or losses by reported segment
   
(Millions of yen)
 
Soft drink business
Healthcare & skincare business
Total
Net revenues
     
Net revenues-outside customers
91,644
7,497
99,141
Net revenues and transfer-inter-segment
Total
91,644
7,497
99,141
Segment profit
1,320
846
2,167
(Note) Net revenues and Segment profit are equivalent to Net revenues and Operating income in Quarterly Consolidated Statements of Income, respectively.

2. Matters relating to changes in the Company’s reported segment
(Change in depreciation method and change in service life)
As discussed in “2. Quarterly Consolidated Financial Statements and Main Notes (3) Notes to Quarterly Consolidated Financial Statements (Changes in Accounting Policies, etc.),” from the first quarter of the consolidated fiscal year under review the depreciation method for property, plant and equipment (excluding sales equipment and leased assets) was changed to the straight-line method. The key service life of machinery and equipment has been revised to 7-20 years, and changes have been applied into the future. Furthermore, from the first quarter of the consolidated fiscal year under review the residual value of property, plant and equipment after the elapse of its service life has been devaluated to a nominal value of one yen.
As a result of these changes, compared to the previous method, segment revenue for the first quarter of this fiscal year has reduced by 976 million yen in the soft drink business and 34 million yen in the healthcare & skincare business.

 
 
 
9
EX-99.2 3 ss40724_ex9902.htm SUMMARY OF CONSOLIDATED FINANCIAL STATEMENTS
 
This document is a summary translation of the Japanese language original version. In the event of any discrepancy, errors and/or omissions, the Japanese language version shall prevail.
Summary of Consolidated Financial Statements (Japanese Standards)
for the First Quarter of the Year Ending December 31st, 2017 (Q1 2017)
May 1, 2017
Listed Company Name:
Coca-Cola Bottlers Japan Inc.
(For Coca-Cola East Japan Co., Ltd.)
Listed Stock Exchange:
Tokyo Stock Exchange
Fukuoka Stock Exchange
Security Code:
2579
(2580 for Coca-Cola East Japan)
URL:
https://en.ccbji.co.jp/
Representative:
Title
Representative Director, President
Name:
Tamio Yoshimatsu
Contact:
Title
Leader, Controller Group
Name:
Masakiyo Uike
TEL: 03 (6896) 1707
Scheduled date of submission of quarterly
security report:
May 15, 2017
Schedule date of start of 
dividend payment:
-
Preparation of supplementary documents for earnings results:
Yes
Earnings results presentation/conference:
No

(Amounts of less than one million yen are rounded down)
 
1
Consolidated Financial Results for the First Quarter Ending March 31, 2017 (January 1, 2017 – March 31, 2017)
(1)    Consolidated Operating Results (YTD)
(Percentages show year-on-year changes)
 
Net Sales
Operating Income
Ordinary Income
Net Income
Attributable to Owners of Parent
 
Million Yen
%
Million Yen
%
Million Yen
%
 Million Yen
%
Q1 2017
122,737
-1.4
1,381
1,354
585
Q1 2016
124,522
13.0
-442
-695
-838
(Remarks)
  1.
Comprehensive income:  Q1 2017:  Million Yen (%)    Q1 2016:     -2,080 Million Yen (%)
  2.
Change of presentation has been applied since the beginning of the first quarter. Q1 2016 ordinary income was revised reflecting the reclassification by this change.

 
Net Income per Share
Diluted Net Income per Share
 
Yen
Yen
Q1 2017
4.62
4.60
Q1 2016
-6.61

(2)
Consolidated Financial Position
 
Total Assets
Net Assets
Equity Ratio
 
Million Yen
Million Yen
%
Q1 2017
368,166
231,533
62.9
FY2016
369,348
233,635
63.1
(Reference) Shareholders’ equity:   Q1 2017: 231,533 Million Yen  FY2016:  232,961 Million Yen


2
Dividends
 
Dividend Per Share
End of Q1
End of Q2
End of Q3
Year-end
Annual
 
Yen
Yen
Yen
Yen
yen
FY2016
16.00
16.00
32.00
FY2017
       
FY2017 (Forecast)
 
(Remarks)
 
1.
Revisions to the Earnings forecasts disclosed most recently:    No
 
2.
FY2017 dividend forecast for CCEJ is omitted, as business integration between the company and Coca-Cola West Co., Ltd. through a combination of a share exchange and incorporation-type company split became effective on April 1, 2017.

Useful Information for Investors for Estimating Full-year Results
(Percentages show year-on-year changes)
 
Net Sales
Operating Income
Ordinary Income
Net Income Attributable to Owners of Parent
EPS
 
Million Yen
%
Million Yen
%
Million Yen
%
Million Yen
%
Yen
Full-Year
-
-
-
-
-
-
-
-
-
(Remarks)
  1.
Revisions to the Earnings forecasts disclosed most recently:    No
  2.
FY2017 forecast for CCEJ is omitted, as business integration between the company and Coca-Cola West Co., Ltd. through a combination of a share exchange and incorporation-type company split became effective on April 1, 2017.

Notes:
(1)  Changes of important subsidiaries during consolidated Q1 2016
(Changes of specific subsidiaries accompanied by changes in the consolidation scope)
None
   
(2)  Application of particular accounting treatments to the preparation of quarterly consolidated financial statements
None
   
(3)  Changes in accounting policies and changes or restatement of accounting estimates
(i) Changes in accounting policies accompanied by revisions of accounting standards, etc.
None
(ii) Changes in accounting policies other than (i)
None
(iii) Changes in accounting estimates
None
(iv) Restatement
None

(4)  Number of Issued Shares (Common Shares)
(i) Number of issued shares at the end of each fiscal year (including treasury stocks)
Q1 2017
127,875,749  shares
FY 2016
127,680,144  shares
(ii) Number of treasury stocks at the end of each fiscal year
Q1 2017
-  shares
FY 2016
839,207  shares
(iii) Average number of the shares during each fiscal year
Q1 2017
126,843,449  shares
Q1 2016
126,824,279  shares

*
This quarterly financial statements summary falls outside the quarterly audit review.
*
Explanation regarding the appropriate use of earnings forecasts and other special notes
The forward-looking statements such as plans, forecasts, strategies, etc. appearing in this summary shall not be deemed as commitments of the Company. The forward-looking statements have been prepared based on various information available to the Company and certain assumptions considered reasonable by the Company. The actual results may differ significantly due to various factors.






Contents of the Attached Materials

 
 
 
1. Qualitative Information on Results for the First Quarter of the Year Ending December 31, 2017
2
   
(1) Qualitative Information on the Consolidated Operating Results
2
(2) Qualitative Information on the Consolidated Financial Positions
3
   
2. Consolidated Financial Statements and Notes to Consolidated Financial Statements
4
   
(1) Consolidated Balance Sheet
4
(2) Consolidated Profit and Loss Statement and Comprehensive Profit and Loss Statement
6
(3) Notes to Consolidated Financial Statements
8
(Notes to assumption of going concern)
8
(Notes in the event of significant changes in amount of shareholders’ equity)
8
(Additional information)
8

 
 
 
 

1


1. Qualitative Information on Results for the First Quarter of the Year Ending December 31, 2017
(1) Qualitative Information on the Consolidated Operating Results

On April 1, 2017, Coca-Cola Bottlers Japan Inc. (“CCBJI”) was established as a result of the business integration between Coca-Cola East Japan Co., Ltd. (“CCEJ” or the “Company”) and Coca-Cola West Co., Ltd.  CCEJ as a standalone company was delisted from the Tokyo Stock Exchange on March 29, 2017.

CCEJ, as a subsidiary of CCBJI, announced the consolidated financial results for the first quarter 2017 (January 1, 2017 to March 31, 2017). In addition to this qualitative information section, please also see the supplemental material related to CCEJ’s first quarter performance posted on CCBJI investor relations website (https://en.ccbji.co.jp/ir/).

CCBJI expects to host a kick-off presentation to explain its mission, vision and values, strategy and business plan and will announce these plans and presentation date once they are decided. At that time, a live webcast and replay will be available on the CCBJI investor relations website (https://en.ccbji.co.jp/ir/).

First Quarter Results Highlight
Operating income reached 1.3 billion JPY, a significant improvement from an operating loss of 442 M in the first quarter 2016.
Volume performance was slightly negative (1%) year-on-year, driven by one fewer selling day in the quarter.  Strong performance of sparkling soft drinks was partially offset by weakness in coffee, water.
Revenue per case improvements across most channels was offset by channel mix pressure.

Operating Review

Total nonalcoholic ready-to-drink (NARTD) beverage industry volumes were generally flat versus prior year in the first quarter. First quarter total BAPC sales volume for CCEJ declined 1% year-on-year, impacted by one fewer selling day versus the prior year.

Volume performance in the first quarter showed mixed results across channels, with an improvement of selling price to customers observed across most channels. The Supermarket and Drug & Discounter channels were even year-on-year due to a decrease of water and larger-sized packages, partially offset by growth of sparkling and smaller-sized packages. Convenience Store volume declined 3%, as growth of non-sugar tea and sparkling beverages was offset by weakness in coffee and waters.  Vending channel volume declined 6% cycling strength in coffee and non-sugar tea in the prior year, however channel profitability has improved supported by growth of sparkling, water and the rollout of vending-exclusive products. Eating & Drinking channel volume grew 4%.

In terms of first quarter beverage category volume performance, sparkling beverage volume grew 7% with growth in all channels, led by growth in trademark Coca-Cola and Coca-Cola Plus, a newly launched FOSHU (Food for Specified Health Use) product. Non-sugar tea volume was slightly negative with growth of the renewed Sokenbicha brand offset by weakness in the supermarket and vending channels.  Coffee volume declined 9% due to weak performance in the Vending and Convenience Store channels. Water volume declined 11% due to a decrease of larger package-sized Morinomizu Dayori brand as well as a decrease of iLohas premium water mainly in the Convenience Store channel due to cycling of new product launches in the prior year.  Sports drinks volume was negative 8% and Juice volume was slightly positive.
 
 
2


Financial Review

Reported Results
Q1 2017 (January to March)
In Million JPY, except volume
2016
2017
% Change
Volume** (BAPC, in thousand)
68,349
67,423
-1.4%
Net Sales
124,522
122,737
-1.4%
Operating Income (Loss)
(442)
1,381
-
Net Income (Loss)  Attributable to Owners of Parent
(838)
585
-

Our quarterly operating results during the year tend to exhibit seasonal variation, as the demand for nonalcoholic ready-to-drink beverages is higher in the summer months. Sales and profits consequently are often lower in the first quarter than in subsequent quarters.

First quarter reported revenue was JPY 122,737 million, a 1% decrease compared to the prior year period, mainly attributable to volume decline, which was impacted by one fewer selling day in the quarter versus the prior year.

First quarter operating income grew significantly to JPY1,381 million (JPY442 million operating loss in the prior year period).  Lower advertisement & sales promotion expenses, sales commissions, etc. due to cycling of activities in the prior year period resulted in a decrease of selling, general and administrative expenses.

Net income attributable to owners of parent was JPY585 million (JPY838 million net loss in the prior year period), reflecting extraordinary expenses related to the integration planning for CCBJI, as well as growth in operating income.


(2) Qualitative Information on the Consolidated Financial Positions

The financial positions at the end of the first quarter are as follows:
Assets at the end of the quarter were JPY 368,166 million, a decrease of JPY 1,182 million from the end of the previous fiscal year. This is mainly attributable increase of merchandise and finished goods, raw material and supplies, etc. in current assets due to seasonal factors offset by a decrease of fixed asset, etc.

Liabilities at the end of this quarter were JPY 136,632 million, an increase of JPY 919 million from the end of previous fiscal year. This is mainly due to an increase of accounts payable-trade, short-term loans payable, etc.

Net assets at the end of this quarter were JPY 231,533 million, a decrease of JPY 2,101 million. This is due to retirement of treasury stock, decrease of retained earnings as a result of paying year-end dividends, etc.



3


2. Consolidated Financial Statements and Notes to Consolidated Financial Statements

 (1) Consolidated Balance Sheet
         
(MM yen)
 
   
FY2016
   
Q1 2017 YTD
 
             
Assets
           
Current assets
           
Cash and deposits
   
16,357
     
15,409
 
Notes and accounts receivable-trade
   
43,510
     
41,295
 
Merchandise and finished products
   
31,676
     
33,140
 
Work in process
 
     
187
 
Raw materials and supplies
   
3,531
     
5,912
 
Others
   
19,766
     
19,643
 
Allowance for doubtful accounts
   
(153
)
   
(126
)
Current assets
   
114,688
     
115,462
 
Noncurrent assets
               
Property, plant and equipment
               
Buildings and structures, net
   
45,406
     
44,646
 
Machinery, equipment and vehicles,net
   
43,358
     
42,463
 
Sale equipment, net
   
65,802
     
65,931
 
Land
   
63,132
     
63,043
 
Other, net
   
3,002
     
3,507
 
Property, plant and equipment
   
220,702
     
219,592
 
Intangible assets
   
9,119
     
9,291
 
Investments and other assets
               
Other
   
25,065
     
24,038
 
Allowance for doubtful accounts
   
(227
)
   
(219
)
Investments and other assets
   
24,838
     
23,819
 
Noncurrent assets
   
254,660
     
252,703
 
Assets
   
369,348
     
368,166
 
Liabilities
               
Current liabilities
               
Accounts payable-trade
   
21,607
     
28,542
 
Short-term loans payable
 
     
2,000
 
Current portion of bonds payable
   
14,000
     
14,000
 
Current portion of long-term loans payable
   
1,855
     
1,819
 
Income taxes payable
   
420
     
82
 
Provision for bonuses
   
2,761
     
1,947
 
Provision for directors’ bonuses
   
169
     
4
 
Provision for environmental measures
   
45
   
 
Provision for early termination
   
850
     
720
 
Asset retirement obligations
   
27
     
28
 
Other
   
39,401
     
34,014
 
Current liabilities
   
81,140
     
83,160
 
Noncurrent liabilities
               
Bonds payable
   
16,000
     
16,000
 
Long-term loans payable
   
13,664
     
12,841
 
Provision for environmental measures
   
254
     
254
 
Provision for early termination
   
581
     
492
 
Net defined benefit liability
   
22,399
     
22,067
 
Asset retirement obligations
   
816
     
813
 
Other
   
855
     
1,003
 
Noncurrent liabilities
   
54,572
     
53,472
 
Liabilities
   
135,713
     
136,632
 
 

4


         
(MM yen)
 
   
FY2016
   
Q1 2017 YTD
 
Net assets
           
Shareholders’ equity
           
Capital stock
   
6,499
     
6,499
 
Capital surplus
   
157,323
     
156,230
 
Retained earnings
   
75,114
     
73,670
 
Treasury stock
   
(1,158
)
 
 
Shareholders’ equity
   
237,779
     
236,401
 
Accumulated other comprehensive income
               
Valuation difference on available-for-sale securities
   
1,732
     
1,557
 
Deferred gains or losses on hedges
   
(89
)
   
(125
)
Remeasurements of defined benefit plans
   
(6,461
)
   
(6,299
)
Total accumulated other comprehensive income
   
(4,818
)
   
(4,867
)
Stock acquisition rights
   
673
   
 
Net assets
   
233,635
     
231,533
 
Liabilities and net assets
   
369,348
     
368,166
 

 
 
 

 

5


 (2) Consolidated Profit and Loss Statement and Comprehensive Profit and Loss Statement
(Consolidated Profit and Loss Statement)
         
(MM yen)
 
   
Q1 2016 YTD
   
Q1 2017 YTD
 
             
Net sales
   
124,522
     
122,737
 
Cost of sales
   
65,818
     
64,223
 
Gross profit
   
58,703
     
58,513
 
Selling, general and administrative expenses
   
59,145
     
57,131
 
Operating income
   
(442
)
   
1,381
 
Non-operating income
               
Interest income
   
18
     
9
 
Dividends income
   
1
     
1
 
Share of profit of entities accounted for using equity method
   
35
     
15
 
Rent income
   
104
     
105
 
Gain on sales of valuable wastes
   
95
     
122
 
Other
   
75
     
90
 
Non-operating income
   
330
     
345
 
Non-operating expenses
               
Interest expenses
   
47
     
27
 
Loss on sales and retirement of noncurrent assets
   
496
     
245
 
Other
   
39
     
99
 
Non-operating expenses
   
583
     
372
 
Ordinary lncome
   
(695
)
   
1,354
 
Extraordinary income
               
Gain on sales of investment securities
   
74
     
0
 
Others
 
     
2
 
Extraordinary income
   
74
     
3
 
Extraordinary loss
               
Lease contract cancellation penalty
   
334
   
 
Restructuring cost
   
119
   
 
Loss on retirement of treasury subscription rights to shares
 
     
154
 
Integration cost
 
     
536
 
Others
   
31
     
2
 
Extraordinary loss
   
485
     
693
 
Income before income taxes
   
(1,105
)
   
664
 
Income taxes-current
   
509
     
170
 
Income taxes-deferred
   
(776
)
   
(91
)
Income taxes
   
(267
)
   
78
 
Net income
   
(838
)
   
585
 
Net income attributable to owners of parent
   
(838
)
   
585
 
 
 
 

 
6


(Consolidated Comprehensive Profit and Loss Statement)
 
         
(MM yen)
 
   
Q1 2016 YTD
   
Q1 2017 YTD
 
             
Net income
   
(838
)
   
585
 
Other comprehensive income
               
 Valuation difference on available-for-sale securities
   
(370
)
   
(174
)
Remeasurements of defined benefit plans
   
(496
)
   
161
 
Share of other comprehensive income of associates accounted for using equity method
   
(322
)
   
(36
)
Other comprehensive income
   
(1,190
)
   
(48
)
Quarterly comprehensive income
   
(2,028
)
   
536
 
 Quarterly comprehensive income attributable to owners of parent
   
(2,028
)
   
536
 

 
 

7


(3) Notes to Consolidated Financial Statements

(Notes to assumption of going concern)
Not applicable

(Notes in the event of significant changes in amount of shareholders’ equity)
During the first quarter period, both treasury stock and capital surplus decreased JPY1,112 million. This is due to a retirement of all treasury stock of the company as of March 31, 2017 based on the resolution of board of directors meeting on March 13, 2017.

(Additional information)
(Implementation of Implementation Guidance on Recoverability of Deferred Tax Assets)
“Implementation Guidance on Recoverability of Deferred Tax Assets” (Implementation Guidance of Corporate Accounting Standard No.26, March 28, 2016) has been implemented from the beginning of this first quarter period.

 
 
 
 
 
 
 
 
 

 
 
8
EX-99.3 4 ss40724_ex9903.htm PRESS RELEASE

 
 
 
May 1, 2017
 
 
To whom it may concern
 
Name of Company
Coca-Cola Bottlers Japan, Inc.
 
Representative
President and
Representative Director
Tamio Yoshimatsu
 
(Code: 2579; First Section of the Tokyo Stock Exchange/Fukuoka Stock Exchange)
 
Direct Enquiries to
General Affairs
Executive Manager
Kenji Harada
   
Tel. (03)5764-1709

Matters Relating to Share Repurchase Performed in Conjunction with Disposition of Fractional Shares Arising from Exchange of Shares
(Repurchase of own shares in accordance with Article 234-4 and 234-5 of the Companies Act)

At a meeting of the board of directors convened today, Coca-Cola Bottlers Japan, Inc. passed the following resolution regarding the handling of fractional shares arising from the exchange of shares.

1.
Summary of Share Repurchase
Effective April 1, 2017, Coca-Cola Bottlers Japan, Inc. participated in an exchange of shares with Coca-Cola East Japan Co., Ltd. (“CCEJ”) that made CCEJ a wholly-owned subsidiary of Coca-Cola Bottlers Japan.
Coca-Cola Bottlers Japan determined that fractional shares allocated to CCEJ shareholders as part of this exchange of shares would be treated in accordance with Article 234-4 of the Companies Act, that, in accordance with Article 234-5 of the Companies Act, these fractional shares would be repurchased at a price of 3,320 yen per share, being the closing price on the Tokyo Stock Exchange for ordinary shares in Coca-Cola Bottlers Japan on May 1, 2017, and that the holders of the fractional shares in question would be paid in cash in accordance with the size of the fractional shares they held (rounded up to the nearest whole yen amount).

2.
Details of Repurchase
(1) Class of Shares to be Repurchased
Ordinary shares in Coca-Cola Bottlers Japan, Inc.
(2) Total Number of Shares to be Repurchased
2,960
(3) Total Amount of Consideration
 9,827,200 yen (Closing price on May 1×2,960 shares)
(4) Date of Resolution for Share Repurchase
 May 1, 2017

3.
Treasury Shares Held as of Date of Resolution for Share Repurchase (May 1, 2017)
(1) Total Number of Issued Shares
206,268,593
(2) Treasury Shares Held
1,999,402
 
* The number of Treasury Shares Held as of May 1, 2017 is described with the number of Treasury Shares Held incorporating 2,960 Total Number of Shares to be Repurchased mentioned in 2. (2).
 
 

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