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. | |
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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 |
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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.
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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.
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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 |
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(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 |
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(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 |
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(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.
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